v3.25.4
Loans and Leases
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Loans and Leases Loans and Leases
The composition of our loan portfolio for the periods indicated was as follows:

December 31,
Loans and leases held for investment:20252024
Multi-family$28,983 $34,093 
Commercial real estate(1)
9,314 11,836
One-to-four family first mortgage5,630 5,201
Commercial and industrial(2)
15,217 15,376
Other1,588 1,766
Total loans and leases held for investment (3)(4)
$60,732 $68,272 
Allowance for credit losses on loans and leases(1,030)(1,201)
Total loans and leases held for investment, net$59,702 $67,071 
Loans held for sale265 899
Total loans and leases, net$59,967 $67,970 
(1)Includes ADC loans.
(2)Includes lease financing receivables (net of unearned income of $129 million and $169 million) of $1.7 billion and $2.1 billion at December 31, 2025 and December 31, 2024, respectively.
(3)Excludes accrued interest receivable of $242 million and $277 million at December 31, 2025 and December 31, 2024, respectively, which is included in Other assets in the Consolidated Statements of Condition.
(4)We pledged loans of $31.5 billion and $44.6 billion between the FHLB and FRB-NY to serve as collateral for our wholesale borrowings at December 31, 2025 and December 31, 2024, respectively.

HFI loans are reported at amortized cost which includes the outstanding principal balance adjusted for any unamortized premiums, discounts, deferred fees and costs, hedge accounting adjustments and fair value adjustments for acquired loans. The unamortized premiums, discounts, deferred fees and costs and hedge accounting adjustments totaled $430 million and $583 million as of December 31, 2025 and 2024, respectively.

Loans with Government Guarantees

Substantially all LGG are insured or guaranteed by the FHA or the U.S. Department of Veterans Affairs. As of December 31, 2025 and December 31, 2024, loans with government guarantees totaled $331 million and $360 million, respectively. These loans are recorded in one-to-four family first mortgages.

Asset Quality

During the years ended December 31, 2025, 2024 and 2023, there was no interest income recognized on non-accrual loans classified as held for investment. As of December 31, 2025 and December 31, 2024 we had no loans that were 90 days or more past due and still accruing.
The following table presents information regarding the delinquency status of our loans held for investment as of December 31, 2025:

Current
Loans 30-89 Days Past Due
Non-Accrual Loans
Total Loans Receivable
Multi-family$26,134 $588 $2,261 $28,983 
Commercial real estate(1)
8,670 155 489 9,314 
One-to-four family first mortgage5,488 78 64 5,630 
Commercial and industrial (2)
14,961 126 130 15,217 
Other1,518 39 31 1,588 
Total$56,771 $986 $2,975 $60,732 
(1)Includes ADC loans.
(2)Includes lease financing receivables.

The following table presents information regarding the delinquency status of our loans held for investment as of December 31, 2024:

CurrentLoans 30-89 Days Past Due Non-Accrual Loans Total Loans Receivable
Multi-family$31,589 $749 $1,755 $34,093 
Commercial real estate(1)
11,202 70 564 11,836 
One-to-four family first mortgage5,106 25 70 5,201 
Commercial and industrial (2)
15,064 110 202 15,376 
Other1,731 11 24 1,766 
Total$64,692 $965 $2,615 $68,272 
(1)Includes ADC loans.
(2)Includes lease financing receivables.
The following table presents the credit rating by vintage for our loans held for investment as of December 31, 2025:

Term LoansRevolving
Loans		Revolving
Loans Converted to Term Loans
Amortized Cost Basis by Origination Year
2025
2024
2023
2022
2021
Prior To
2021
Total
Multi-family
Pass$45 $15 $592 $5,782 $5,238 $7,887 $4 $69 $19,632 
Special Mention— — — 754 751 546 — 14 2,065 
Substandard— — 134 819 1,132 2,938 2 — 5,025 
Non-accrual— — 12 293 359 1,597 — — 2,261 
Total Multi-family45 15 738 7,648 7,480 12,968 6 83 28,983 
Year to date gross charge-offs— — — (59)(71)(155)— — (285)
Commercial Real Estate(1)
Pass$478 $373 $1,053 $1,297 $955 $2,104 $924 $95 $7,279 
Special Mention10 10 50 88 5 154 25 10 352 
Substandard1 21 147 143 86 513 124 159 1,194 
Non-accrual— — 12 74 4 365 33 1 489 
Total Commercial Real Estate489 404 1,262 1,602 1,050 3,136 1,106 265 9,314 
Year to date gross charge-offs— — (5)(1)(7)(28)— — (41)
One-to-Four Family
Pass$938 $285 $415 $2,178 $778 $682 $78 $4 $5,358 
Substandard— 1 4 12 2 189 — — 208 
Non-accrual1 3 7 18 12 21 2 — 64 
Total One-to-Four Family939 289 426 2,208 792 892 80 4 5,630 
Year to date gross charge-offs— — — (2)— (2)— — (4)
Commercial and Industrial(2)
Pass$3,638 $793 $1,876 $1,513 $493 $739 $5,236 $231 $14,519 
Special Mention— 42 7 21 1 28 127 — 226 
Substandard— 8 50 35 31 16 201 1 342 
Non-accrual1 18 23 21 5 29 24 9 130 
Total Commercial and Industrial3,639 861 1,956 1,590 530 812 5,588 241 15,217 
Year to date gross charge-offs(25)(1)(32)(21)(5)(3)— — (87)
Other Loans
Pass$44 $27 $21 $7 $2 $30 $1,336 $89 $1,556 
Substandard— — — — — — 1 — 1 
Non-accrual— — — — — 1 30 — 31 
Total Other Loans44 27 21 7 2 31 1,367 89 1,588 
Year to date gross charge-offs(10)(2)(7)(7)— (6)— — (32)
(1)Includes ADC loans.
(2)Includes lease financing receivables.
The following table presents the credit rating by vintage for out loans held for investment as of December 31, 2024:

Term LoansRevolving
Loans		Revolving
Loans Converted to Term Loans
Amortized Cost Basis by Origination Year
2024
2023
2022
2021
2020
Prior To
2020
Total
Multi-family
Pass$17 $700 $6,599 $6,070 $5,203 $3,997 $27 $— $22,613 
Special Mention—146886946467951—2,838
Substandard21235298681,5263,8345—6,887
Non-accrual——1131442741,224——1,755
Total Multi-family198377,9297,7767,6499,85033—34,093
Year to date gross charge-offs——(28)(34)(42)(204)——(308)
Commercial Real Estate(1)
Pass$542 $1,298 $1,753 $1,106 $576 $2,068 $1,597 $367 $9,307 
Special Mention—7213069106138120—635
Substandard23117911016272311761,330
Non-accrual—37343644476—564
Total Commercial Real Estate5441,4382,0961,3218483,3761,84037311,836
Year to date gross charge-offs—(8)(81)(1)(27)(349)——(466)
One-to-Four Family
Pass$250 $521 $2,431 $859 $178 $609 $80 $2 $4,930 
Substandard128216172——201
Non-accrual—416107285—70
Total One-to-Four Family2515272,4558712018098525,201
Year to date gross charge-offs——(1)——(7)——(8)
Commercial and Industrial(2)
Pass$1,267 $2,609 $2,014 $651 $450 $759 $5,554 $1,164 $14,468 
Special Mention17291842111196206
Substandard135072727132658500
Non-accrual3516098152—202
Total Commercial and Industrial1,3002,6932,2647364677985,9401,17815,376
Year to date gross charge-offs(3)(20)(40)(20)(19)(34)——(136)
Other Loans
Pass$100 $29 $12 $4 $2 $32 $1,441 $121 $1,741 
Special Mention——————1—1
Non-accrual—————519—24
Total Other Loans100291242371,4611211,766
Year to date gross charge-offs(2)(4)(4)(1)(1)(8)——(20)
(1)Includes ADC loans.
(2)Includes lease financing receivables.

The classifications in the preceding tables reflect the most recent credit evaluations as of the respective dates, which are generally performed within the last twelve months. In addition, they follow regulatory guidelines and can generally be described as follows: pass loans are of satisfactory quality; special mention loans have potential weaknesses that deserve management’s close attention; substandard loans are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged (these loans have a well-defined weakness and there is a possibility that we will sustain some loss); and non-accrual loans, which based on existing circumstances, have weaknesses that make collection or liquidation in full highly questionable and improbable.
Collateral Dependent Loans

The following table summarizes the recorded investment of our collateral-dependent loans held for investment by collateral type:

December 31,
20252024
Collateral Type
Real PropertyReal Property
Multi-family$2,320 $1,817 
Commercial real estate(1)
426 554 
One-to-four family first mortgage59 48 
Commercial and industrial4 — 
Total collateral-dependent loans held for investment$2,809 $2,419 
(1)Includes ADC loans.

Collateral dependent loans generally include multi-family and CRE loans secured by apartment buildings, office buildings, retail and industrial buildings. The primary source of repayment on these loans is expected to come from the sale of the real estate property collateral. Multi-family and CRE loans are impacted by fluctuations in the values of the real estate property.

As of December 31, 2025 and December 31, 2024, we had $19 million and $41 million, respectively, of residential mortgage loans in the process of foreclosure.

Included in loans held for investment as of December 31, 2025 and December 31, 2024 were an immaterial amount and $1 million of loans, respectively, to officers, directors, and their related interests and parties. There were no loans to principal shareholders.

Modifications to Borrowers Experiencing Financial Difficulty

When borrowers are experiencing financial difficulty, we may make certain loan modifications as part of loss mitigation strategies to maximize expected payment. Modifications provided to borrowers who are experiencing financial difficulties are in the form of term extension, an interest rate reduction, and in limited circumstances, principal forgiveness.

During the years ended December 31, 2025, 2024 and 2023, loans totaling $55 million, $34 million and $262 million, respectively, were modified to borrowers experiencing financial difficulty.
The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty:

Interest Rate ReductionTerm ExtensionPrincipal Forgiveness
Weighted-Average Contractual Interest Rate
FromTo
Weighted-Average Term (in years)
Reduced Amortized Cost Basis
Year Ended December 31, 2025
Commercial real estate
— %— %0.4
One-to-four family first mortgage7.02 %6.09 %9.3
Commercial and industrial7.50 %7.25 %2.8
Other Consumer10.30 %5.97 %13.0
Year Ended December 31, 2024
Multi-family8.08 %6.00 %
Commercial real estate
8.13 %6.95 %0.3
One-to-four family first mortgage4.73 %3.80 %11.3$1 
Commercial and industrial7.73 %6.10 %0.7
Other Consumer10.69 %3.71 %2.1
Year Ended December 31, 2023
Multi-family7.45 %6.02 %
Commercial real estate
8.83 %4.56 %
One-to-four family first mortgage6.08 %4.79 %
Commercial and industrial8.44 %8.08 %0.6
Other Consumer9.09 %4.82 %

The following table presents the amortized cost basis of the modifications for borrowers experiencing financial difficulty that subsequently defaulted and were within twelve months of the modification date:

Year Ended December 31, 2025Term ExtensionPrincipal ForgivenessCombination - Interest Rate Reduction and Term/Payment Extension/Delay
One-to-four family first mortgage$13 $— $7 
Commercial and industrial5—2
Total$18 $— $9 
Year Ended December 31, 2024
Commercial real estate$4 $— $— 
One-to-four family first mortgage2 1 1 
Commercial real estate
1 — — 
Total$7 $1 $1 
Year Ended December 31, 2023
One-to-four family first mortgage$4 $— $4 
Total$4 $— $4 

We closely monitor the performance of loans in which modifications were made to borrowers experiencing financial difficulty to understand the effectiveness of modification efforts. For purposes of this disclosure a payment default is defined as 30 days or more past due.
The following tables provide a summary of loan balances which were modified during the prior twelve months, by class of financing receivable and delinquency status:

December 31, 2025Current30 - 89 Past Due90+ Past DueTotal
Commercial real estate
$6 $— $— $6 
One-to-four family first mortgage1—4142
Commercial and industrial—7—7
Total$7 $7 $41 $55 
December 31, 2024
Multi-family$2 $— $— $2 
Commercial real estate
8 — 4 12
One-to-four family first mortgage8 — 8 16
Commercial and industrial— — 4 4
Total$18 $— $16 $34 
December 31, 2023
Commercial real estate
$1 $— $— $1 
One-to-four family first mortgage3 — 8 11 
Commercial and industrial39113
Other Consumer11—2
Total$8 $10 $9 $27