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Loans and Leases
 6 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
Loans and Leases Loans and Leases
The Company classifies loans that we have the intent and ability to hold for the foreseeable future or until maturity as loans held for investment. We report loans held for investment loans at their amortized cost, which includes the outstanding principal balance adjusted for any unamortized premiums, discounts, deferred fees and unamortized fair value adjustments for acquired loans:

June 30, 2024December 31, 2023
(dollars in millions)AmountPercent of
Loans
Held for
Investment		AmountPercent of
Loans
Held for
Investment
Loans and Leases Held for Investment:
Multi-family$36,011 48.3 %$37,265 44.0 %
Commercial real estate9,961 13.3 %10,470 12.4 %
One-to-four family first mortgage5,790 7.8 %6,061 7.2 %
Acquisition, development, and construction3,217 4.3 %2,912 3.4 %
Commercial and industrial(1)
15,088 20.2 %22,065 26.1 %
Lease financing, net of unearned income of $218 and $258, respectively
2,731 3.7 %3,189 3.8 %
Other1,754 2.4 %2,657 3.1 %
Total loans and leases held for investment (2)
$74,552 100.0 %$84,619 100.0 %
Allowance for credit losses on loans and leases(1,268)(992)
Total loans and leases held for investment, net73,284 83,627 
Loans held for sale, at fair value7,845 1,182 
Total loans and leases, net$81,129 $84,809 
(1)Includes specialty finance loans and leases of $4.8 billion and $5.2 billion at June 30, 2024 and December 31, 2023, respectively.
(2)Excludes accrued interest receivable of $376 million and $423 million at June 30, 2024 and December 31, 2023, respectively, which is included in other assets in the Consolidated Statements of Condition.
Loans Held for Sale

Loans held for sale at June 30, 2024 totaled $7.8 billion, up from $1.2 billion at December 31, 2023. During the second quarter, we transferred all warehouse loans from the commercial and industrial portfolio within loans held for investment to loans held for sale. This balance was $6.4 billion at June 30, 2024.

We classify loans as held for sale when we originate or purchase loans that we intend to sell and when we change our intent about holding for investment. Loans held for sale are carried at fair value. We estimate the fair value of mortgage loans based on quoted market prices for securities backed by similar types of loans, where available, or by discounting estimated cash flows using observable inputs inclusive of interest rates, prepayment speeds and loss assumptions for similar collateral. Subsequent to June 30, 2024, approximately $6 billion of the warehouse loans were sold at their carrying amounts. Refer to Note 19 - Subsequent Events.
Asset Quality

All asset quality information excludes loans with government guarantees that are insured by U.S. government agencies. As of June 30, 2024, these loans totaled $486 million.
A loan generally is classified as a non-accrual loan when it is 90 days or more past due or when it is deemed to be impaired because the Company no longer expects to collect all amounts due according to the contractual terms of the loan agreement. When a loan is placed on non-accrual status, management ceases recording interest income, and previously accrued interest is reversed against interest income. A loan is only returned to accrual status when the loan is current and management has reasonable assurance that the loan will be fully collectible. Interest received on non-accrual loans is recorded as a reduction in the carrying amount. At June 30, 2024 and December 31, 2023 we had no loans that were 90 days or more past due and still accruing.
The following table presents information regarding the quality of the Company’s loans held for investment at June 30, 2024:

(in millions)Loans 30-89 Days Past Due
Non-Accrual Loans
Total Past Due Loans
Remaining
Total Loans Receivable
Multi-family$893 $794 $1,687 $34,324 $36,011 
Commercial real estate125 753 878 9,083 9,961 
One-to-four family first mortgage22 106 128 5,662 5,790 
Acquisition, development, and construction54 18 72 3,145 3,217 
Commercial and industrial(1)
100 247 347 17,472 17,819 
Other10 24 34 1,720 1,754 
Total$1,204 $1,942 $3,146 $71,406 $74,552 
(1)Includes lease financing receivables.
The following table presents information regarding the quality of the Company’s loans held for investment at December 31, 2023:

(in millions)Loans 30-89 Days Past Due
Non-Accrual Loans
Total Past Due Loans
Remaining
Total Loans Receivable
Multi-family$121 $138 $259 $37,006 $37,265 
Commercial real estate28 128 156 10,314 10,470 
One-to-four family first mortgage40 95 135 5,926 6,061 
Acquisition, development, and construction2 2 4 2,908 2,912 
Commercial and industrial(1)
37 43 80 25,174 25,254 
Other22 22 44 2,613 2,657 
Total$250 $428 $678 $83,941 $84,619 
(1)Includes lease financing receivables.
The following table presents, by credit quality indicator, loan class, and year of origination, the amortized cost basis of the Company’s loans and leases as of June 30, 2024:

Term Loans
Revolving
Loans		Revolving
Loans Converted to Term Loans
Amortized Cost Basis by Closing Year
(in millions)
2024
2023
2022
2021
2020Prior To
2020		Total
Multi-family:
Pass$22 $765 $7,116 $7,311 $6,330 $5,859 $54 $— $27,457 
Special Mention— — 460 123 437 641 — — 1,661 
Substandard— 73 349 507 887 4,283 — — 6,099 
Non-accrual
— — 71 50 112 561 — — 794 
Total Multi-family
22 838 7,996 7,991 7,766 11,344 54 — 36,011 
Current-period gross write-offs
— — (13)(19)(6)(49)— — (87)
Commercial Real Estate:
Pass$231 $832 $1,800 $1,168 $688 $2,819 $189 $1 $7,728 
Special Mention— — 68 5 76 43 16 — 208 
Substandard— — 222 50 127 873 — — 1,272 
Non-accrual
— 44 83 1 33 592 — — 753 
Total Commercial Real Estate231 876 2,173 1,224 924 4,327 205 1 9,961 
Current-period gross write-offs
— — (42)— (19)(240)— — (301)
One-to-Four Family
Pass$173 $512 $2,493 $865 $206 $813 $82 $1 $5,145 
Special Mention— — — — — 2 — — 2 
Substandard— — — — — 537 — — 537 
Non-accrual— 2 15 17 9 60 3 — 106 
Total One-to-Four Family173 514 2,508 882 215 1,412 85 1 5,790 
Current-period gross write-offs
— — — (1)— — — — (1)
Acquisition, Development and Construction
Pass$85 $488 $309 $279 $1 $13 $1,786 $— $2,961 
Special Mention— 9 45 13 3 — 67 — 137 
Substandard— 1 4 15 — — 81 — 101 
Non-accrual— — 1 1 — 16 — — 18 
Total Acquisition, Development and Construction85 498 359 308 4 29 1,934 — 3,217 
Current-period gross write-offs
— — — — — — — — — 
Commercial and Industrial
Pass$576 $4,187 $3,488 $1,469 $899 $2,338 $4,167 $3 $17,127 
Special Mention18222724122726— 156 
Substandard5315511552751— 289 
Non-accrual0111854151319— 247 
Total Commercial and Industrial$599 $4,251 $3,755 $1,612 $931 $2,405 $4,263 $3 $17,819 
Current-period gross write-offs
(3)(8)(12)(4)(10)(9)— — (46)
Other Loans
Pass$17 $43 $20 $9 $5 $88 $1,406 $142 $1,730 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Non-accrual— — — — — 6 18 — 24 
Total Other Loans17 43 20 9 5 94 1,424 142 1,754 
Current-period gross write-offs
(1)(2)(3)(1)(1)(2)— — (10)
The following table presents, by credit quality indicator, loan class, and year of origination, the amortized cost basis of the Company’s loans and leases as of December 31, 2023:

Term Loans
Revolving
Loans		Revolving
Loans Converted to Term Loans
Amortized Cost Basis by Closing Year
(in millions)
2023
2022
2021
2020
2019
Prior To
2019
Total
Multi-family:
Pass$840 $7,945 $7,967 $7,310 $3,525 $6,537 $46 $— $34,170 
Special Mention—953337736227——768
Substandard—211762374511,304——2,189
Non-accrual
—56—2899——138
Total Multi-family
8408,0668,1827,9244,0408,16746—37,265
Current-period gross write-offs
—(112)———(7)——(119)
Commercial Real Estate:
Pass$880 $2,110 $1,182 $939 $1,011 $2,439 $172 $1 $8,734 
Special Mention—12212—11610611—367
Substandard44494772239790——1,241
Non-accrual
——1—4123——128
Total Commercial Real Estate9242,2811,2421,0111,3703,458183110,470
Current-period gross write-offs
—————(56)——(56)
One-to-Four Family
Pass$526 $2,627 $920 $210 $239 $721 $78 $7 $5,328 
Special Mention—————————
Substandard—522069542——638
Non-accrual
1111781837—395
Total One-to-Four Family5272,6439392383261,30078106,061
Current-period gross write-offs
————(1)(2)——(3)
Acquisition, Development and Construction
Pass$406 $322 $298 $4 $4 $6 $1,685 $100 $2,825 
Special Mention——2430——3—57
Substandard—67——15——28
Non-accrual
—11—————2
Total Acquisition, Development and Construction406329330344211,6881002,912
Current-period gross write-offs
—————————
Commercial and Industrial
Pass$9,418 $3,547 $1,633 $984 $719 $791 $7,535 $56 $24,683 
Special Mention1182178620101—335
Substandard7244316383332—193
Non-accrual
2142111211—43
Total Commercial and Industrial9,4283,7671,6951,0197648467,6795625,254
Current-period gross write-offs
(2)(7)(1)(7)—(14)——(31)
Other Loans
Pass$171 $346 $244 $133 $133 $117 $1,223 $268 $2,635 
Non-accrual
—2111241122
Total Other Loans1713482451341341191,2272792,657
Current-period gross write-offs
—(3)(4)(1)(2)(4)——(14)
The classifications in the preceding tables are the most currently available and generally have been updated 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 the Company 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. One-to-four family loans are classified based on the duration of the delinquency.

When management determines that foreclosure is probable for loans that are individually evaluated, the expected credit losses are based on the fair value of the collateral adjusted for selling costs. When the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, the collateral-dependent practical expedient has been elected and expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. For commercial real estate loans, collateral properties include office buildings, warehouse/distribution buildings, shopping centers, apartment buildings, residential and commercial tract development. The primary source of repayment on these loans is expected to come from the sale, permanent financing or lease of the real property collateral. Commercial real estate loans are impacted by fluctuations in collateral values, as well as the ability of the borrower to obtain permanent financing.

The following table summarizes the recorded investment of the Company’s collateral-dependent loans held for investment by collateral type as of June 30, 2024:

Collateral Type
(in millions)Real PropertyOther
Multi-family$896 $— 
Commercial real estate769 — 
One-to-four family first mortgage106 — 
Acquisition, development, and construction19 — 
Commercial and industrial— 240 
Total collateral-dependent loans held for investment$1,790 $240 
At June 30, 2024 and December 31, 2023, the Company had $59 million and $81 million of residential mortgage loans in the process of foreclosure, respectively.

Modifications to Borrowers Experiencing Financial Difficulty

When borrowers are experiencing financial difficulty, the Company may make certain loan modifications as part of loss mitigation strategies to maximize expected payment. Modifications in the form of principal forgiveness, an interest rate reduction, or an other-than-insignificant payment delay or a term extension that have occurred in the current reporting period to a borrower experiencing financial difficulty are disclosed along with the financial impact of the modifications.
The following table summarizes the amortized cost basis of loans modified during the reporting period to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of modification:

Amortized Cost
(dollars in millions)Interest Rate ReductionTerm ExtensionCombination - Interest Rate Reduction & Term ExtensionTotalPercent of Total Loan class
Three Months Ended June 30, 2024
One-to-four family first mortgage— 4 1 5 0.09 %
Total$— $4 $1 $5 
Three Months Ended June 30, 2023
Commercial real estate8 — — 8 0.08 %
One-to-four family first mortgage— 2 2 4 0.07 %
Commercial and industrial
— 7 — 7 0.03 %
Total$8 $9 $2 $19 
Six Months Ended June 30, 2024
Multi-family$2 $— $— $2 0.01 %
Commercial real estate8 4 — 12 0.12 %
One-to-four family first mortgage— 5 2 7 0.12 %
Commercial and industrial
— 7 1 8 0.04 %
Total$10 $16 $3 $29 
Six Months Ended June 30, 2023
Commercial real estate52 — — 52 0.49 %
One-to-four family first mortgage— 3 3 6 0.10 %
Commercial and industrial
— 7 — 7 0.03 %
Total$52 $10 $3 $65 

The following table describes the financial effect of the modification made to borrowers experiencing financial difficulty:

Interest Rate ReductionTerm Extension
Weighted-average contractual interest rate
FromToWeighted-average Term (in years)
Three months ended June 30, 2024
One-to-four family first mortgage4.76 %3.65 %10.56
Commercial and industrial8.51 6.00 1.0
Three Months Ended June 30, 2023
Commercial real estate8.00 %4.0 %
One-to-four family first mortgage6.05 4.8 13.6
Commercial and industrial— — 0.76
Six months ended June 30, 2024
Multi-family
8.08 %6.0 %
Commercial real estate8.13 7.0 
One-to-four family first mortgage4.69 3.7 12.2
Commercial and industrial7.44 6.3 0.4
Other Consumer10.72 4.3 1.8
Six months ended June 30, 2023
Commercial real estate10.09 %4.0 %
One-to-four family first mortgage5.47 4.4 13.0
Commercial and industrial— — 0.76
As of June 30, 2024, there were $1 million one-to-four family first mortgages that were modified for borrowers experiencing financial difficulty that received term extension and subsequently defaulted during the first six months of 2024 and $2 million one-to-four family first mortgages that were combination modifications and subsequently defaulted during the first six months of 2024.

As of June 30, 2023, there were $3 million one-to-four family first mortgages that were modified for borrowers
experiencing financial difficulty that received term extension and subsequently defaulted during the first six months of 2023 and $3 million one-to-four family first mortgages that were combination modifications and subsequently defaulted during the first six months of 2023.

The performance of loans made to borrowers experiencing financial difficulty in which modifications were made is closely monitored to understand the effectiveness of modification efforts.

The following table provides a summary of loan balances at June 30, 2024, which were modified during the prior twelve months, by class of financing receivable and delinquency status:

June 30, 2024
(dollars in millions)Current30 - 89 Past Due90+ Past DueTotal
Multi-family
$26 $97 $— 123 
Commercial real estate21 3 78 102 
One-to-four family first mortgage$8 $— $9 $17 
Commercial and industrial32813
Other Consumer——11
Total$58 $102 $96 $256 

The following table provides a summary of loan balances at June 30, 2023, which were modified on or after January 1, 2023, the date the Company adopted accounting guidance which removed the separate recognition and measurement of troubled debt restructurings, through June 30, 2023, by class of financing receivable and delinquency status:

June 30, 2023
(dollars in millions)Current30 - 89 Past Due90+ Past DueTotal
One-to-four family first mortgage$— $— $6 $6 
Total$— $— $6 $6