v3.25.4
Fair Value Measurement
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
The following tables present assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2025 and December 31, 2024, and that were included in the Consolidated Statements of Condition at those dates:

December 31, 2025
Quoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)(1)
Total Fair Value
Assets:
Mortgage-related debt securities available-for-sale:
GSE CMOs$— $11,824 $— $11,824 
GSE certificates— 999 — 999 
Private label CMOs— 136 23 159 
Total mortgage-related debt securities$— $12,959 $23 $12,982 
Other debt securities available-for-sale:
GSE debentures$— $1,296 $— $1,296 
U. S. Treasury obligations1,017 — — 1,017 
Asset-backed securities— 213 — 213 
Corporate bonds— 144 — 144 
Municipal bonds, foreign notes, and capital trust
— 49 — 49 
Total other debt securities$1,017 $1,702 $— $2,719 
Total debt securities available-for-sale
$1,017 $14,661 $23 $15,701 
Equity securities:
Mutual funds and common stock$51 $14 $— $65 
Total equity securities$51 $14 $— $65 
Total securities$1,068 $14,675 $23 $15,766 
Loans held for sale
Residential first mortgage loans$— $193 $— $193 
Commercial real estate(2)
— 48 — 48 
Derivative assets
Interest rate swaps
— 19 — 19 
Rate lock commitments (fallout adjustments)
— — 4 4 
Interest rate caps
— 3 — 3 
Total assets at fair value$1,068 $14,938 $27 $16,033 
Derivative liabilities
Interest rate swaps
$— $21 $— $21 
Rate lock commitments
— — 1 1 
Mortgage-backed securities forwards— 1 — 1 
Total liabilities at fair value$— $22 $1 $23 
(1)The change in the fair value due to significant unobservable inputs was immaterial.
(2)Includes ADC loans.
December 31, 2024
Quoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Total Fair Value
Assets:
Mortgage-related debt securities available-for-sale:
GSE CMOs$— $7,304 $— $7,304 
GSE certificates— 1,106 — 1,106 
Private label CMOs— 130 33 163 
Total mortgage-related debt securities$— $8,540 $33 $8,573 
Other debt securities available-for-sale:
GSE debentures$— $1,203 $— $1,203 
Corporate bonds—308—308 
Asset-backed securities—236—236 
Municipal bonds, foreign notes, and capital trust
—82—82 
Total other debt securities$— $1,829 $— $1,829 
Total debt securities available-for-sale
$— $10,369 $33 $10,402 
Equity securities:
Mutual funds and common stock$— $14 $— $14 
Total equity securities$— $14 $— $14 
Loans held for sale
One-to-four family first mortgage$— $382 $— $382 
Commercial real estate(1)
—182 —182 
Derivative assets
Interest rate swaps— 15 — 15 
Mortgage-backed securities forwards— 7 — 7 
Rate lock commitments (fallout adjustments)
— — 3 3 
Mortgage servicing rights— — 26 26 
Total assets at fair value$— $10,969 $62 $11,031 
Derivative liabilities
Interest rate swaps and swaptions$— $30 $— $30 
Rate lock commitments— — 3 3 
Mortgage-backed securities forwards— 2 — 2 
Total liabilities at fair value$— $32 $3 $35 
(1)Includes ADC loans.

Fair Value Measurements Using Significant Unobservable Inputs

The following tables include a roll forward of the Consolidated Statements of Condition amounts (including the change in fair value) for financial instruments classified by us within Level 3 of the valuation hierarchy:

Balance at Beginning of Year
Total Gains / (Losses) Recorded in Earnings (1)
Purchases / OriginationsSalesTransfers In (Out)Balance at End of Year
Year Ended December 31, 2024
Assets
Mortgage servicing rights (1)
$1,111 $(75)$184 $(1,194)$— $26 
Private Label collateralized mortgage obligations32 1 — — — 33 
Rate lock commitments (net) (1)(2)
9 5 57 — (71)— 
Totals$1,152 $(69)$241 $(1,194)$(71)$59 
(1)We utilized swaptions, futures, forward agency and loan sales and interest rate swaps to manage the risk associated with mortgage servicing rights and rate lock commitments. Gains and losses for individual lines do not reflect the effect of our risk management activities related to such Level 3 instruments.
(2)Rate lock commitments are reported on a fallout-adjusted basis. Transfers out of Level 3 represent the settlement value of the commitments that are transferred to loans held for sale, which are classified as Level 2 assets.
Assets Measured at Fair Value on a Non-Recurring Basis

The following tables present assets that were measured at fair value on a non-recurring basis as of December 31, 2025 and December 31, 2024:

Fair Value Measurements as of December 31, 2025 Using
Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)Total Fair Value
Loans held for investment(1)
$— $— $2,784 $2,784 
Loans held for sale— 24 — 24 
Other assets(2)
— — 31 31 
Total$— $24 $2,815 $2,839 
(1)Represents the fair value of impaired loans, based primarily on the value of the collateral less costs to sell.
(2)Primarily comprised of equity securities without readily determinable fair values.

Fair Value Measurements as of December 31, 2024 Using
Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)Total Fair Value
Loans held for investment(1)
$— $— $2,469 $2,469 
Loans held for sale— 335 — 335 
Other assets(2)
— — 52 52 
Total$— $335 $2,521 $2,856 
(1)Represents the fair value of impaired loans, based primarily on the value of the collateral less costs to sell.
(2)Represents the fair value of repossessed assets, based on the appraised value of the collateral subsequent to its initial classification as repossessed assets and equity securities without readily determinable fair values. These equity securities are classified as Level 3 due to the infrequency of the observable prices and/or the restrictions on the shares.
The fair values of collateral-dependent loans are determined using various valuation techniques, including appraisal values less costs to sell or other observable market data

Other Fair Value Disclosures
For the disclosure of fair value information about our on- and off-balance sheet financial instruments, when available, quoted market prices are used as the measure of fair value. In cases where quoted market prices are not available, fair values are based on present-value estimates or other valuation techniques. Such fair values are significantly affected by the assumptions used, the timing of future cash flows, and the discount rate.
Because assumptions are inherently subjective in nature, estimated fair values cannot be substantiated by comparison to independent market quotes. Furthermore, in many cases, the estimated fair values provided would not necessarily be realized in an immediate sale or settlement of such instruments.
The following tables summarize the carrying values, estimated fair values, and fair value measurement levels of financial instruments that were not carried at fair value on the Bank’s Consolidated Statements of Condition:

December 31, 2025
Fair Value Measurement Using
Carrying ValueEstimated Fair ValueQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents$5,894 $5,894 $5,894 $— $— 
FHLB and FRB stock (1)
973 973 — 973 — 
Loans and leases held for investment, net(2)
59,702 56,605 — — 56,605 
Financial Liabilities:
Deposits$66,000 $65,991 $45,157 
(3)
$20,834 
(4)
$— 
Borrowed funds12,184 11,972 — 11,972 — 
(1)Carrying value and estimated fair value are at cost.
(2)Carrying value and estimated fair value include impaired loans held for investment.
(3)Includes interest-bearing checking and money market accounts, savings accounts, and non-interest-bearing accounts.
(4)Includes CDs.

December 31, 2024
Fair Value Measurement Using
Carrying ValueEstimated Fair ValueQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents$15,430 $15,430 $15,430 $— $— 
FHLB and FRB stock (1)
1,146 1,146 — 1,146 — 
Loans and leases held for investment, net(2)
67,071 61,831 — — 61,831 
Financial Liabilities:
Deposits$75,870 $75,894 $48,546 
(3)
$27,348 
(4)
$— 
Borrowed funds14,426 14,217 — 14,217 — 
(1)Carrying value and estimated fair value are at cost.
(2)Carrying value and estimated fair value include impaired loans held for investment.
(3)Includes interest-bearing checking and money market accounts, savings accounts, and non-interest-bearing accounts.
(4)Includes CDs.

The methods and significant assumptions used to estimate fair values for our financial instruments are described below:

Cash and Cash Equivalents
Cash and cash equivalents include cash and due from banks and federal funds sold. The estimated fair values of cash and cash equivalents are assumed to equal their carrying values, as these financial instruments are either due on demand or have short-term maturities.

Federal Home Loan Bank Stock
Ownership in equity securities of the FHLB is generally restricted and there is no established liquid market for their resale; therefore the estimated fair value of the FHLB securities is assumed to equal their carrying value.

Loans and leases
We disclose the fair value of loans measured at amortized cost using an exit price notion. We determine the fair value on substantially all of our loans for disclosure purposes, on an individual loan basis. The discount rates reflect current market rates for loans with similar terms to borrowers having similar credit quality on an exit price basis.
Deposits

The fair values of deposit liabilities with no stated maturity (i.e., interest-bearing checking and money market accounts, savings accounts, and non-interest-bearing accounts) are equal to the carrying amounts payable on demand. The fair values of CDs represent contractual cash flows, discounted using interest rates currently offered on deposits with similar characteristics and remaining maturities. These estimated fair values do not include the intangible value of core deposit relationships, which comprise a portion of our deposit base.

Borrowed Funds
The estimated fair value of borrowed funds is based either on bid quotations received from securities dealers or the discounted value of contractual cash flows with interest rates currently in effect for borrowed funds with similar maturities and structures.

Fair Value Option
We elected the fair value option for certain items as discussed throughout the Notes to the Consolidated Financial Statements to more closely align the accounting method with the underlying economic exposure.
The following table reflects the change in fair value included in earnings of financial instruments for which the fair value option has been elected:
Year Ended December 31,
202520242023
Assets
Loans held for sale
Net gain on loan sales$26 $47 $43 

The following table reflects the difference between the aggregate fair value and aggregate remaining contractual principal balance outstanding for assets and liabilities for which the fair value option has been elected:

December 31,
20252024
Unpaid Principal BalanceFair ValueFair Value Over / (Under) UPBUnpaid Principal BalanceFair ValueFair Value Over / (Under) UPB
Assets:
Non-accrual loans:
Loans held for sale
$6 $7 $1 $4 $4 $— 
Total non-accrual loans$6 $7 $1 $4 $4 $— 
Accrual loans:
Loans held for sale
$230 $234 $4 $553 $560 $7 
Loans held for investment— — — 67 66 (1)
Total accrual loans
$230 $234 $4 $620 $626 $6 
Total loans:
Loans held for sale
$236 $241 $5 $557 $564 $7 
Loans held for investment— — — 67 66 (1)
Total loans$236 $241 $5 $624 $630 $6