LOANS AND ALLOWANCE FOR CREDIT LOSSES

6 Months Ended

Jun. 30, 2026

LOANS AND ALLOWANCE FOR CREDIT LOSSES

LOANS AND ALLOWANCE FOR CREDIT LOSSES

NOTE 5 — LOANS AND ALLOWANCE FOR CREDIT LOSSES

Loans, net of deferred costs and fees, consist of the following (in thousands):


		At			At
		June 30,			December 31,
		2026			2025
Real estate
Commercial		$	5,764,905		$	5,201,489
Construction			244,244			261,804
Multi-family			414,331			397,010
One-to four-family			84,332			86,449
Total real estate loans			6,507,812			5,946,752
Commercial and industrial			831,436			871,652
Consumer			9,283			10,349
Total loans			7,348,531			6,828,753
Deferred fees, net of origination costs			(19,628)			(18,520)
Loans, net of deferred fees and costs			7,328,903			6,810,233
Allowance for credit losses			(62,012)			(97,081)
Net loans		$	7,266,891		$	6,713,152

At June 30, 2026, $3.5 billion of loans were pledged to support wholesale funding, of which $535.4 million were encumbered. At December 31, 2025, $3.7 billion of loans were pledged to support wholesale funding, of which $446.5 million were encumbered.

The following tables present the activity in the ACL for funded loans by segment. The portfolio segments represent the categories that the Company uses to determine its ACL (in thousands):


											Multi-			One-to four-
Three months ended June 30, 2026		CRE			C&I			Construction			family			family			Consumer			Total
Allowance for credit losses:
Beginning balance		$	45,462		$	12,586		$	1,410		$	21,796		$	626		$	191		$	82,071
Provision/(credit) for credit losses			916			12,987			246			59			(18)			(25)			14,165
Loans charged-off			(538)			(14,397)			—			(19,903)			—			—			(34,838)
Recoveries			603			—			—			—			—			11			614
Total ending allowance balance		$	46,443		$	11,176		$	1,656		$	1,952		$	608		$	177		$	62,012


											Multi-			One-to four-
Three months ended June 30, 2025		CRE			C&I			Construction			family			family			Consumer			Total
Allowance for credit losses:
Beginning balance		$	44,647		$	12,433		$	2,518		$	7,259		$	602		$	344		$	67,803
Provision/(credit) for credit losses			5,808			166			(178)			412			(24)			70			6,254
Loans charged-off			—			—			—			—			—			(112)			(112)
Recoveries			—			125			—			—			—			1			126
Total ending allowance balance		$	50,455		$	12,724		$	2,340		$	7,671		$	578		$	303		$	74,071


											Multi-			One-to four-
Six months ended June 30, 2026		CRE			C&I			Construction			family			family			Consumer			Total
Allowance for credit losses:
Beginning balance		$	60,818		$	10,181		$	2,510		$	22,619		$	540		$	413		$	97,081
Provision/(credit) for credit losses			(6,467)			19,697			(854)			(764)			68			(83)			11,597
Loans charged-off			(8,511)			(18,727)			—			(19,903)			—			(153)			(47,294)
Recoveries			603			25			—			—			—			—			628
Total ending allowance balance		$	46,443		$	11,176		$	1,656		$	1,952		$	608		$	177		$	62,012


											Multi-			One-to four-
Six months ended June 30, 2025		CRE			C&I			Construction			family			family			Consumer			Total
Allowance for credit losses:
Beginning balance		$	42,070		$	10,991		$	1,962		$	7,290		$	577		$	383		$	63,273
Provision/(credit) for credit losses			8,385			1,428			378			381			1			150			10,723
Loans charged-off			—			—			—			—			—			(231)			(231)
Recoveries			—			305			—			—			—			1			306
Total ending allowance balance		$	50,455		$	12,724		$	2,340		$	7,671		$	578		$	303		$	74,071

Net charge-offs for the three and six months ended June 30, 2026 were $34.2 million and $46.7 million, respectively. Net recoveries for the three and six months ended June 30, 2025 were $14,000 and $76,000, respectively.

The following tables present the activity in the ACL for unfunded loan commitments (in thousands):

Three months ended June 30,

Six months ended June 30,

 

2026

2025

2026

2025

Balance at the beginning of period		$	2,409		$	2,046			$	2,140		$	2,008
Provision/(credit) for credit losses			(840)			124				(571)			162
Total ending allowance balance		$	1,569		$	2,170			$	1,569		$	2,170

The following tables present the recorded investment in non-accrual loans and loans past due 90 days and greater and still accruing, by class of loans (in thousands):


								Loans Past Due
					Non-accrual			90 Days and
		Total			Without an			Greater and
At June 30, 2026		Non-accrual			ACL			Still Accruing
Commercial real estate		$	30,213		$	6,713		$	—
Commercial & industrial			11,262			11,262			—
Multi-family			23,094			23,094			—
One-to-four family			2,401			2,401			—
Consumer			—			—			—
Total		$	66,970		$	43,470		$	—


								Loans Past Due
					Non-accrual			90 Days and
		Total			Without an			Greater and
At December 31, 2025		Non-accrual			ACL			Still Accruing
Commercial real estate		$	32,809		$	3,365		$	—
Commercial & industrial			8,989			6,989			—
Multi-family			42,599			7,861			—
One-to-four family			2,450			2,450			—
Consumer			—			—			37
Total		$	86,847		$	20,665		$	37

Interest income on non-accrual loans recognized on a cash basis for the three and six months ended June 30, 2026 and 2025 was immaterial.

The following tables present the aging of the recorded investment in past due loans by class of loans (in thousands):


								Non-accrual or			Total Past
		30-59			60-89			90 Days and			Due or			Current
At June 30, 2026		Days			Days			Greater			Non-accrual			Loans			Total
Commercial real estate		$	10,707		$	—		$	30,213		$	40,920		$	5,723,985		$	5,764,905
Commercial & industrial			—			600			11,262			11,862			819,574			831,436
Construction			—			—			—			—			244,244			244,244
Multi-family			8,846			—			23,094			31,940			382,391			414,331
One-to four-family			444			—			2,401			2,845			81,487			84,332
Consumer			—			—			—			—			9,283			9,283
Total		$	19,997		$	600		$	66,970		$	87,567		$	7,260,964		$	7,348,531


								Non-accrual or			Total Past
		30-59			60-89			90 Days and			Due or			Current
At December 31, 2025		Days			Days			Greater			Non-accrual			Loans			Total
Commercial real estate		$	—		$	—		$	32,809		$	32,809		$	5,168,680		$	5,201,489
Commercial & industrial			—			200			8,989			9,189			862,463			871,652
Construction			—			—			—			—			261,804			261,804
Multi-family			1,755			—			42,599			44,354			352,656			397,010
One-to four-family			1,246			—			2,450			3,696			82,753			86,449
Consumer			81			—			37			118			10,231			10,349
Total		$	3,082		$	200		$	86,884		$	90,166		$	6,738,587		$	6,828,753

Credit Quality Indicators

The Company aggregates loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Except for one-to four-family loans and consumer loans, the Company analyzes loans individually by classifying the loans as to credit risk ratings at least annually. For one-to four-family loans and consumer loans, the Company evaluates credit quality based on the aging status of the loan. An analysis is performed on a quarterly basis for loans classified as special mention, substandard or doubtful. The Company uses the following definitions for risk ratings. Loans not meeting these definitions are considered to be pass-rated loans.

Special Mention - Loans classified as special mention have a potential weakness that deserves management’s attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.

Substandard - Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values highly questionable and improbable.

The following table presents loan balances by credit quality indicator and year of origination at June 30, 2026 and charge-offs for the six months ended June 30, 2026 (in thousands):


																	2021
		2026			2025			2024			2023			2022			& Prior			Revolving			Total
CRE
Pass		$	1,544,314		$	2,000,568		$	872,414		$	412,279		$	481,732		$	280,116		$	53,736		$	5,645,159
Special Mention			35,335			22,926			27,811			—			—			—			—			86,072
Substandard			23,500			3,461			—			—			4,631			2,082			—			33,674
Total		$	1,603,149		$	2,026,955		$	900,225		$	412,279		$	486,363		$	282,198		$	53,736		$	5,764,905

Construction
Pass		$	66,396		$	57,315		$	98,938		$	—		$	—		$	—		$	21,595		$	244,244
Total		$	66,396		$	57,315		$	98,938		$	—		$	—		$	—		$	21,595		$	244,244

Multi-family
Pass		$	127,573		$	81,693		$	25,972		$	30,107		$	34,427		$	55,957		$	11,116		$	366,845
Special Mention			—			15,402			—			—			—			8,990			—			24,392
Substandard			—			19,166			2,529			—			—			1,399			—			23,094
Total		$	127,573		$	116,261		$	28,501		$	30,107		$	34,427		$	66,346		$	11,116		$	414,331

One-to four-family
Current		$	—		$	—		$	—		$	45,000		$	3,105		$	33,826		$	—		$	81,931
Past Due			—			—			—			—			—			2,401			—			2,401
Total		$	—		$	—		$	—		$	45,000		$	3,105		$	36,227		$	—		$	84,332

C&I
Pass		$	73,138		$	41,650		$	62,544		$	7,307		$	46,272		$	7,599		$	536,856		$	775,366
Special Mention			1,434			7,967			600			—			—			—			—			10,001
Substandard			—			—			—			3,840			27,773			—			14,456			46,069
Total		$	74,572		$	49,617		$	63,144		$	11,147		$	74,045		$	7,599		$	551,312		$	831,436

Consumer
Current		$	—		$	—		$	—		$	—		$	—		$	9,283		$	—		$	9,283
Total		$	—		$	—		$	—		$	—		$	—		$	9,283		$	—		$	9,283

Total
Pass/Current		$	1,811,421		$	2,181,226		$	1,059,868		$	494,693		$	565,536		$	386,781		$	623,303		$	7,122,828
Special Mention			36,769			46,295			28,411			—			—			8,990			—			120,465
Substandard/Past due			23,500			22,627			2,529			3,840			32,404			5,882			14,456			105,238
Total		$	1,871,690		$	2,250,148		$	1,090,808		$	498,533		$	597,940		$	401,653		$	637,759		$	7,348,531

Charge-offs
CRE		$	—		$	—		$	—		$	—		$	—		$	8,511		$	—		$	8,511
C&I			—			—			200			—			14,198			4,329			—			18,727
Multi-family			—			—			—			—			5,790			14,113			—			19,903
Consumer			—			—			—			—			—			153			—			153
Total		$	—		$	—		$	200		$	—		$	19,988		$	27,106		$	—		$	47,294

The following table presents loan balances by credit quality indicator and year of origination at December 31, 2025 and charge-offs for the year ended December 31, 2025 (in thousands):


																	2020
		2025			2024			2023			2022			2021			& Prior			Revolving			Total
CRE
Pass		$	2,514,770		$	1,030,181		$	675,773		$	524,079		$	192,304		$	135,336		$	50,491		$	5,122,934
Special Mention			19,525			21,500			—			—			1,246			—			—			42,271
Substandard			3,475			—			—			24,000			8,809			—			—			36,284
Total		$	2,537,770		$	1,051,681		$	675,773		$	548,079		$	202,359		$	135,336		$	50,491		$	5,201,489

Construction
Pass		$	129,806		$	49,898		$	51,484		$	—		$	—		$	—		$	30,616		$	261,804
Total		$	129,806		$	49,898		$	51,484		$	—		$	—		$	—		$	30,616		$	261,804

Multi-family
Pass		$	169,606		$	32,869		$	30,296		$	36,451		$	60,650		$	8,930		$	2,671		$	341,473
Special Mention			12,938			—			—			—			—			—			—			12,938
Substandard			40,070			2,529			—			—			—			—			—			42,599
Total		$	222,614		$	35,398		$	30,296		$	36,451		$	60,650		$	8,930		$	2,671		$	397,010

One-to four-family
Current		$	—		$	—		$	45,000		$	3,192		$	211		$	35,596		$	—		$	83,999
Substandard			—			—			—			—			—			2,450			—			2,450
Total		$	—		$	—		$	45,000		$	3,192		$	211		$	38,046		$	—		$	86,449

C&I
Pass		$	130,514		$	138,733		$	46,470		$	80,377		$	16,377		$	2,372		$	399,005		$	813,848
Substandard			14,008			—			7,643			20,968			—			—			15,185			57,804
Total		$	144,522		$	138,733		$	54,113		$	101,345		$	16,377		$	2,372		$	414,190		$	871,652

Consumer
Current		$	—		$	—		$	—		$	—		$	—		$	10,231		$	—		$	10,231
Past due			—			—			—			—			—			118			—			118
Total		$	—		$	—		$	—		$	—		$	—		$	10,349		$	—		$	10,349

Total
Pass/Current		$	2,944,696		$	1,251,680		$	849,023		$	644,099		$	269,543		$	192,465		$	482,783		$	6,634,289
Special Mention			32,463			21,500			—			—			1,246			—			—			55,209
Substandard/Past due			57,553			2,529			7,643			44,968			8,809			2,568			15,185			139,255
Total		$	3,034,712		$	1,275,709		$	856,666		$	689,067		$	279,598		$	195,033		$	497,968		$	6,828,753

Charge-offs
Multi-family		$	—		$	—		$	—		$	—		$	3,827		$	—		$	—		$	3,827
Consumer			—			—			—			—			—			262			—			262
Total		$	—		$	—		$	—		$	—		$	3,827		$	262		$	—		$	4,089

A loan is considered collateral dependent when the borrower is experiencing financial difficulties and repayment is expected to be substantially provided by the operation or sale of the collateral. The following table presents collateral dependent loans by portfolio segment as of June 30, 2026 and December 31, 2025. These loans are classified as substandard as of June 30, 2026 and December 31, 2025:



		June 30,			December 31,
		2026			2025
Collateral dependent loans:
Commercial real estate		$	33,674		$	36,284
Multi-family			23,094			42,599
One-to four-family			2,401			2,450
Total		$	59,169		$	81,333

The following tables show the amortized cost basis of modified loans to borrowers experiencing financial difficulty during the periods indicated (in thousands):


					Combination				Combination
					Term				Term Extension					Modifications
					Extension and				Payment Deferral and					as a % of
Three months ended June 30, 2026		Extension			Interest Rate				Debt Forgiveness		Total			Loan Class
Commercial real estate		$	—		$	23,500		$	—		$	23,500		0.4%
Multi-family		$	—		$	—		$	13,880		$	13,880		3.3%
Total		$	—		$	23,500		$	13,880		$	37,380


					Combination				Combination
					Term				Term Extension					Modifications
					Extension and				Payment Deferral and					as a % of
Six months ended June 30, 2026		Extension			Interest Rate				Debt Forgiveness		Total			Loan Class
Commercial real estate		$	—		$	23,500		$	—		$	23,500		0.4%
Multi-family		$	—		$	—		$	13,880		$	13,880		3.3%
Total		$	—		$	23,500		$	13,880		$	37,380


					Combination				Combination
					Term				Term Extension					Modifications
					Extension and				Payment Deferral and					as a % of
Three months ended June 30, 2025		Extension			Interest Rate				Debt Forgiveness		Total			Loan Class
Commercial real estate		$	—		$	—		$	—		$	—		0.0%
Total		$	—		$	—		$	—		$	—


					Combination				Combination
					Term				Term Extension					Modifications
					Extension and				Payment Deferral and					as a % of
Six months ended June 30, 2025		Extension			Interest Rate				Debt Forgiveness		Total			Loan Class
Multi-family		$	51,239		$	—		$	—		$	51,239		12.4%
Total		$	51,239		$	—		$	—		$	51,239

The following tables describe the types of modifications made to borrowers experiencing financial difficulty (dollars in thousands):


		Types of Modifications
										Weighted
				Combination			Combination			Average
				Term			Term Extension			Interest
		Term		Extension and			Payment Deferral			Rate
		Extension		Interest Rate			and Debt Forgiveness			Reduction
Three months ended June 30, 2026
Commercial real estate		—			96 months			—		2.8%
Multi-family		—			—			130 months 3 months $19,903		0.0%


		Types of Modifications
										Weighted
				Combination			Combination			Average
				Term			Term Extension			Interest
		Term		Extension and			Payment Deferral			Rate
		Extension		Interest Rate			and Debt Forgiveness			Reduction
Six months ended June 30, 2026
Commercial real estate		—			96 months			—		2.8%
Multi-family		—			—			130 months 3 months $19,903		0.0%


		Types of Modifications
										Weighted
				Combination			Combination			Average
				Term			Term Extension			Interest
		Term		Extension and			Payment Deferral			Rate
		Extension		Interest Rate			and Debt Forgiveness			Reduction
Three months ended June 30, 2025
Multi-family		—			—			—		0.0%


		Types of Modifications
										Weighted
				Combination			Combination			Average
				Term			Term Extension			Interest
		Term		Extension and			Payment Deferral			Rate
		Extension		Interest Rate			and Debt Forgiveness			Reduction
Six months ended June 30, 2025
Multi-family		6-12 months			—			—		0.0%

There were $23.5 million of CRE loans and $13.9 million of multi-family loans that had a payment default during the three and six months ended June 30, 2026 that were modified in the prior 12 months before default to borrowers experiencing financial difficulty. At June 30, 2026 there were no additional commitments to lend to borrowers experiencing financial difficulty whose loans have been modified. There were $7.0 million of loans that had a payment default during the three and six months ended June 30, 2025 that were modified in the prior 12 months before default to borrowers experiencing financial difficulty. At June 30, 2025, there were no additional commitments to lend to borrowers experiencing financial difficulty whose loans have been modified.