Note 16. Subsequent Events

During the third quarter of 2026, the Company completed a strategic review of its balance sheet and identified a pool of loans to be sold with an unpaid principal balance of $753.7 million.  As previously announced, in October 2026 the Company entered into an agreement to sell this pool of non-relationship multifamily loans to a single third-party purchaser, subject to adjustment as provided for under the transaction agreements. 

On October 29, 2026, the Company completed the sale of $690.2 million in unpaid principal balance of loans from the pool for a price of $621.7 million and concurrently recognized transaction costs associated with the sale, as previously disclosed, amounting to an estimated $7 to $8 million. The remaining $61.4 million in unpaid principal balance of loans transferred to loans held-for-sale were excluded from the sale as provided for under the transaction agreements and remain in loans held-for-sale at the lower of cost or fair value at $55.3 million.  No additional losses, other than those previously recognized or disclosed, resulted from completion of the sale.