MORTGAGE BANKING OPERATIONS

9 Months Ended

Sep. 30, 2025

LHFS consisted of the following:


(in thousands)	September 30, 2025	December 31, 2024

Single family	$21,397	$543
CRE, multifamily and SBA	33,588	—
Total	$54,985	$543

Loans sold consisted of the following for the periods indicated:


	Quarter Ended September 30,		Nine Months Ended September 30,
(in thousands)	2025	2024	2025	2024

Single family	$35,925	$342	$39,234	$4,029
CRE, multifamily and SBA	7,100	—	7,100	—
Total	$43,025	$342	$46,334	$4,029

For loan and lease receivables sold for the quarters and nine months ended September 30, 2025 and 2024, there were no

loans sold as part of securitizations.

Gain on loan origination and sale activities, including the effects of derivative risk management instruments, consisted of

the following:


	Quarter Ended September 30,		Nine Months Ended September 30,
(in thousands)	2025	2024	2025	2024

Single family (1)	$213	$—	$213	$42
CRE, multifamily and SBA (1)	446	—	446	—
Total	$659	$—	$659	$42

(1)Gain on loan origination and sale activities is included in other noninterest income in the consolidated income statements.

The Company’s portfolio of loans serviced for others is primarily comprised of loans held in U.S. government and agency

MBS issued by Fannie Mae and Freddie Mac. The unpaid principal balance of loans serviced for others is as follows:


(in thousands)	September 30, 2025	December 31, 2024

Single family	$4,453,004	$196,895
CRE, multifamily and SBA	1,886,746	11,092
Total	$6,339,750	$207,987

The following is a summary of changes in the Company’s liability for estimated single-family mortgage repurchase losses:


	Quarter Ended September 30,	Nine Months Ended September 30,
(in thousands)	2025	2025

Balance, beginning of period	$—	$—
Reserve liability acquired (1)	734	734
Additions, net of adjustments (2)	4	4
Balance, end of period	$738	$738

(1)Represents the reserve liability acquired from the Merger on September 2, 2025.

(2)Includes additions for new loan sales and changes in estimated probable future repurchase losses on previously sold loans.

The Company has agreements with certain investors to advance scheduled principal and interest amounts on delinquent

loans. Advances are also made to fund the foreclosure and collection costs of delinquent loans prior to the recovery of

reimbursable amounts from investors or borrowers. Advances of $1.1 million were recorded in interest receivable and other

assets as of September 30, 2025. There were no advances as of December 31, 2024.

When the Company has the unilateral right to repurchase Ginnie Mae pool loans it has previously sold (generally loans that

are more than 90 days past due), the Company records the balance of the loans within assets as interest receivable and other

assets and within liabilities as interest payable and other liabilities. At September 30, 2025, there were no delinquent or

defaulted mortgage loans currently in Ginnie Mae pools that the Company has recognized on its consolidated balance

sheets and there were no such delinquent or defaulted mortgage loans as of December 31, 2024.

Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the

following:


	Quarter Ended September 30,		Nine Months Ended September 30,
(in thousands)	2025	2024	2025	2024

Servicing income, net:
Servicing fees and other	$1,873	$202	$2,218	$786
Changes in fair value of single family MSRs - other (1)	(618)	—	(618)	—
Amortization of multifamily and SBA MSRs	(585)	—	(585)	—
Total	670	202	1,015	786
Risk management, single family MSRs:
Changes in fair value of MSRs due to assumptions (2)	(167)	—	(167)	—
Net gain from economic hedging (3)	177	—	177	—
Total	10	—	10	—
Loan servicing income	$680	$202	$1,025	$786

(1)Represents changes due to collection/realization of expected cash flows and curtailments.

(2)Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage

interest rates.

(3)Comprised of net gains on derivatives used as economic hedges of single family MSRs, and net gains on U.S. Treasury notes trading securities used

for hedging purposes.

Single Family MSRs

Balances and activity for single family MSRs are reported beginning on the Merger date of September 2, 2025, therefore

there were no balances or activity for the quarters and nine months ended September 30, 2024 and as of December 31,

2024.

The changes in single family MSRs measured at fair value are as follows:


	Quarter Ended September 30,	Nine Months Ended September 30,
(in thousands)	2025	2025

Beginning balance	$—	$—
Additions:
MSRs acquired (1)	60,166	60,166
Originations	155	155
Net additions	60,321	60,321
Changes in fair value:
Changes in fair value assumptions (2)	(167)	(167)
Other (3)	(618)	(618)
Ending balance	$59,536	$59,536

(1)Represents MSRs acquired from the Merger on September 2, 2025.

(2)Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage

interest rates

(3)Represents changes due to collection/realization of expected cash flows and curtailments.

Key economic assumptions used in measuring the initial fair value of capitalized single family MSRs were as follows:


	Quarter Ended September 30,	Nine Months Ended September 30,
(rates per annum) (1)	2025	2025

Constant prepayment rate (CPR) (2)	16.47%	16.47%
Discount rate	8.73%	8.73%

(1)Based on a weighted average.

(2)Represents an expected lifetime average CPR used in the model.

For single family MSRs, we use a discounted cash flow valuation technique which utilizes CPRs and discount rates as

significant unobservable inputs as noted in the table below:


	September 30, 2025
(rates per annum)	Range of Inputs	Average (1)

CPRs (2)	5.05% - 11.95%	6.89%
Discount Rates	8.66% - 16.23%	8.99%

(1) Weighted averages of all the inputs within the range.

(2) Represents the expected lifetime average CPR used in the model.

To compute hypothetical sensitivities of the value of our single family MSRs to immediate adverse changes in key

assumptions, we computed the impact of changes to CPRs and in discount rates as outlined below:


(dollars in thousands)	September 30, 2025

Fair value of single family MSRs	$59,536
Expected weighted-average life (in years)	8.19
CPR
Impact on fair value of 25 basis points adverse change in interest rates	$(980)
Impact on fair value of 50 basis points adverse change in interest rates	$(1,989)
Discount rate
Impact on fair value of 100 basis points increase	$(2,585)
Impact on fair value of 200 basis points increase	$(5,050)

Multifamily and SBA MSRs

Balances and activity for multifamily and SBA MSRs are reported beginning on the Merger date of September 2, 2025,

therefore there were no balances or activity for the quarters and nine months ended September 30, 2024 and as of

December 31, 2024.

The changes in multifamily and SBA MSRs measured at the lower of amortized cost or fair value were as follows:


	Quarter Ended September 30,	Nine Months Ended September 30,
(in thousands)	2025	2025

Beginning balance	$—	$—
MSRs acquired (1)	29,538	29,538
Originations	106	106
Amortization	(585)	(585)
Ending balance	$29,059	$29,059

(1)Represents MSRs acquired from the Merger on September 2, 2025.

The fair value of multifamily and SBA MSRs was $29.2 million at September 30, 2025.

Key economic assumptions used in measuring the initial fair value of capitalized multifamily MSRs were as follows:


	Quarter Ended September 30,	Nine Months Ended September 30,
(rates per annum) (1)	2025	2025

Discount rate	13.00%	13.00%

(1)Based on a weighted average.

For multifamily MSRs, we use a discounted cash flow valuation technique which utilizes CPRs and discount rates as

significant unobservable inputs as noted in the table below. Multifamily DUS loans typically contain yield maintenance

features that significantly reduce loan prepayments, resulting in a CPR of zero for valuation purposes.


	September 30, 2025
	Range of Inputs	Average (1)

Discount Rates	13.00% - 15.00%	13.00%

(1) Weighted averages of all the inputs within the range.