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Loans and Leases
 3 Months Ended
Mar. 31, 2025
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 at their amortized cost, which includes the outstanding principal balance adjusted for any unamortized premiums, discounts, deferred fees or fair value adjustments for acquired loans:

March 31, 2025December 31, 2024

AmountPercent of
Loans
Held for
Investment		AmountPercent of
Loans
Held for
Investment
Loans and Leases Held for Investment:
Multi-family$33,437 50.2 %$34,093 49.9 %
Commercial real estate(1)
11,510 17.3 %11,836 17.4 %
One-to-four family first mortgage5,187 7.8 %5,201 7.6 %
Commercial and industrial
12,685 19.1 %13,260 19.4 %
Lease financing, net of unearned income of $162 and $258, respectively
2,057 3.0 %2,116 3.1 %
Other1,716 2.6 %1,766 2.6 %
Total loans and leases held for investment (2)
$66,592 100.0 %$68,272 100.0 %
Allowance for credit losses on loans and leases(1,168)(1,201)
Total loans and leases held for investment, net$65,424 $67,071 
Loans held for sale, at fair value531 899 
Total loans and leases, net$65,955 $67,970 
(1)Includes Acquisition, Development, and Construction loans.
(2)Excludes accrued interest receivable of $264 million and $277 million at March 31, 2025 and December 31, 2024, respectively, which is included in Other assets in the Condensed Consolidated Statements of Condition.

Loans with Government Guarantees

Substantially all loans with government guarantees are insured or guaranteed by the Federal Housing Administration or the U.S. Department of Veterans Affairs. Nonperforming repurchased loans in this portfolio earn interest at a rate based upon the 10-year U.S. Treasury note rate from the time the underlying loan becomes 60 days delinquent until the loan is conveyed to HUD (if foreclosure timelines are met), which is not paid by the Federal Housing Administration until claimed. Certain loans within our portfolio may be subject to indemnifications and insurance limits which expose us to limited credit risk. The Bank also has a unilateral option to repurchase loans sold and serviced for the Government National Mortgage Association if the loan is due, but unpaid, for three consecutive months (typically referred to as 90 days past due) and can recover losses through a claims process from the guarantor. These loans are recorded in loans held for investment and the liability to repurchase the loans is recorded in Other liabilities on the Condensed Consolidated Statements of Condition. As of March 31, 2025 and December 31, 2024, loans with government guarantees totaled $373 million and $360 million.

Loans Held for Sale

We classify loans as held for sale when we originate or purchase loans that we intend to sell or when we change our intent about holding for investment. Mortgage loans held for sale for which we have elected the fair value option are carried at fair value. Loans originally classified as held for investment for which we had changed our intent and are now classified as held for sale are carried at the lower of amortized cost or market. 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.

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 (principal and interest) according to the contractual terms of the loan agreement. When a loan is placed on non-accrual status, we cease recording interest income, and any previously accrued and uncollected interest is reversed against interest income. Interest received on non-accrual loans is recorded as a reduction to the the principal outstanding. A loan is only returned to accrual status when the loan is current (typically a minimum of six months of payment performance) and we have reasonable assurance that the loan will be fully collectible. When we have reasonable assurance that the loan will be fully collectible, then interest payments may be recognized in interest income on a cash basis. As of March 31, 2025 and December 31, 2024 there was no interest income recognized on
non-accrual loans classified as held for sale. At March 31, 2025 and December 31, 2024 we had no loans that were 90 days or more past due and still accruing interest.
The following table is a summary of non-accrual loans held for sale:


March 31, 2025December 31, 2024
Non-accrual loans held for sale:
Multi-family
$— $51 
Commercial real estate(1)
— 215 
One-to-four family first mortgage3 57 
Commercial and industrial
18 — 
Total non-accrual loans held for sale
$21 $323 
(1)Includes Acquisition, Development, and Construction loans.
Asset Quality

Asset quality information excludes loans with repurchased government guarantees that are insured by U.S. government agencies.

The following table presents information regarding the delinquency status of the Company’s loans held for investment at March 31, 2025:

Loans 30-89 Days Past Due
Non-Accrual Loans
Remaining
Total Loans Receivable
Multi-family$806 $2,361 $30,270 $33,437 
Commercial real estate(1)
85 589 10,836 11,510 
One-to-four family first mortgage28 77 5,082 5,187 
Commercial and industrial(2)
92 231 14,419 14,742 
Other9 22 1,685 1,716 
Total$1,020 $3,280 $62,292 $66,592 
(1)Includes Acquisition, Development, and Construction loans.
(2)Includes lease financing receivables.
The following table presents information regarding the delinquency status of the Company’s loans held for investment at December 31, 2024:


Loans 30-89 Days Past Due
Non-Accrual Loans
Remaining
Total Loans Receivable
Multi-family$749 $1,755 $31,589 $34,093 
Commercial real estate(1)
70 564 11,202 11,836 
One-to-four family first mortgage25 70 5,106 5,201 
Commercial and industrial(2)
110 202 15,064 15,376 
Other11 24 1,731 1,766 
Total$965 $2,615 $64,692 $68,272 
(1)Includes Acquisition, Development, and Construction loans.
(2)Includes lease financing receivables.
The following table presents the credit rating by vintage for our loans held for investment as of March 31, 2025:

Term Loans
Revolving
Loans		Revolving
Loans Converted to Term Loans
Amortized Cost Basis by Closing Year

2025
2024
2023
2022
2021
Prior To
2021
Total
Multi-family:
Pass$— $16 $734 $6,553 $5,824 $9,495 $6 $115 $22,743 
Special Mention— — 26 610 626 745 — — 2,007 
Substandard— 2 138 472 972 4,722 4 16 6,326 
Non-accrual
— — — 262 339 1,760 — — 2,361 
Total Multi-family
— 18 898 7,897 7,761 16,722 10 131 33,437 
Year to date gross charge-offs
— — — (8)(15)(57)— — (80)
Commercial Real Estate:(1)
Pass$128 $514 $1,227 $1,843 $1,080 $2,853 $1,313 $151 $9,109 
Special Mention— — 75 133 49 96 76 58 487 
Substandard— 6 48 136 85 743 96 211 1,325 
Non-accrual
— — 40 38 28 479 2 2 589 
Total Commercial Real Estate(1)
128 520 1,390 2,150 1,242 4,171 1,487 422 11,510 
Year to date gross charge-offs
— — — (1)— (1)— — (2)
One-to-Four Family
Pass$86 $340 $453 $2,313 $814 $810 $81 $3 $4,900 
Substandard— 1 3 11 2 193 — — 210 
Non-accrual— 2 6 19 12 36 2 — 77 
Total One-to-Four Family86 343 462 2,343 828 1,039 83 3 5,187 
Year to date gross charge-offs
— — — (1)— — — — (1)
Commercial and Industrial(2)
Pass$448 $1,281 $2,537 $2,096 $739 $1,238 $5,138 $329 $13,806 
Special Mention2 21 35 24 9 4 167 10 272 
Substandard1 17 45 53 50 56 202 9 433 
Non-accrual— 2 26 157 9 23 9 5 231 
Total Commercial and Industrial451 1,321 2,643 2,330 807 1,321 5,516 353 14,742 
Year to date gross charge-offs
(8)— (10)(12)(3)(1)— — (34)
Other Loans
Pass$25 $36 $32 $23 $5 $41 $1,402 $127 $1,691 
Special Mention— — 2 — — — — — 2 
Substandard— — 1 — — — — — 1 
Non-accrual— — — — — 4 14 4 22 
Total Other Loans25 36 35 23 5 45 1,416 131 1,716 
Year to date gross charge-offs
(2)— (1)(2)— (2)— — (7)
(1)Includes Acquisition, Development, and Construction 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, 2024:

Term Loans
Revolving
Loans		Revolving
Loans Converted to Term Loans
Amortized Cost Basis by Closing 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-family
198377,9297,7767,6499,85033—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 Estate(1)
5441,4382,0961,3218483,3761,84037311,836
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-accrual
3516098152—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 Acquisition, Development, and Construction loans.
(2)Includes lease financing receivables.

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 March 31, 2025:


Real Property
Multi-family$2,470 
Commercial real estate(1)
580 
One-to-four family first mortgage73 
Commercial and industrial4 
Total collateral-dependent loans held for investment$3,127 
(1)Includes Acquisition, Development, and Construction loans.

At March 31, 2025 and December 31, 2024, the Company had $53 million and $41 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.

During the three months ended March 31, 2025 and 2024 there were an immaterial and $26 million of loans modified to borrowers experiencing financial difficulty.

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 March 31, 2025
Commercial real estate(1)
— %— %1.08
One-to-four family first mortgage9.24 %4.24 %1.3
Other
10.74 %— %— 
Three Months Ended March 31, 2024
Multi-family8.13 %6.95 %N/A
Commercial real estate(1)
8.08 %6.00 %N/A
One-to-four family first mortgage4.66 %3.76 %15.3
Commercial and industrial6.78 %6.50 %0.3
Other
11.01 %4.76 %1.8
(1)Includes Acquisition, Development, and Construction loans.

The following table presents the amortized cost basis of the modifications for borrowers experiencing financial difficulty that subsequently defaulted in the first three months of 2025 and were within twelve months of the modification date:


Term ExtensionPrincipal ForgivenessCombination - Interest Rate Reduction and Term/Payment Extension/Delay
Total
Commercial real estate(1)
$4 $— $— $4 
One-to-four family first mortgage
3137
Total$7 $1 $3 $11 
(1)Includes Acquisition, Development, and Construction loans.
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 March 31, 2025, which were modified during the prior twelve months, by class of financing receivable and delinquency status:

March 31, 2025

Current30 - 89 Past Due90+ Past DueTotal
Commercial real estate(1)
$— $— $4 $4 
One-to-four family first mortgage6 — 6 12 
Commercial and industrial——11
Total$6 $— $11 $17 
(1)Includes Acquisition, Development, and Construction loans.

The following table provides a summary of loan balances at March 31, 2024, which were modified during the prior twelve months, by class of financing receivable and delinquency status:

March 31, 2024

Current30 - 89 Past Due90+ Past DueTotal
Multi-family
$8 $— $— $8 
Commercial real estate(1)
2 — — 2 
One-to-four family first mortgage2 — 8 10 
Commercial and industrial122—14
Other
1——1
Total$25 $2 $8 $35 
(1)Includes Acquisition, Development, and Construction loans.