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MORTGAGE BANKING OPERATIONS (Tables)

3 Months Ended

Mar. 31, 2026

Mortgage Banking [Abstract]

Mortgage Loans on Real Estate, by Loan

LHFS consisted of the following:

(in thousands)			March 31, 2026						December 31, 2025
Single family			$	4,692					$	5,967
Total			$	4,692					$	5,967

Loans sold consisted of the following for the periods indicated:

			Quarter Ended March 31,
(in thousands)			2026						2025
Single family			$	32,230					$	1,637
Multifamily and other			29,228						—
Total			$	61,458					$	1,637

For the quarter ended March 31, 2026 and 2025, there were no loans sold as part of securitizations.

Net Gain on Loan Origination and Sale Activity

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

			Quarter Ended March 31,
(in thousands)			2026						2025
Single family (1)			$	827					$	7
Multifamily and other (1)			316						—
Total			$	1,143					$	7

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

Company's Portfolio of Loans Serviced for Others

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)			March 31, 2026						December 31, 2025
Single family			$	4,288,185					$	4,370,577
CRE, multifamily and SBA			1,892,012						1,866,799
Total			$	6,180,197					$	6,237,376

Mortgage Repurchase Losses

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

			Quarter Ended March 31,
(in thousands)			2026						2025
Balance, beginning of period			$	708					$	—
Additions, net of adjustments (1)			(32)						—
Realized (losses) recoveries, net (2)			(2)						—
Balance, end of period			$	674					$	—

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

(2)Includes principal losses and accrued interest on repurchased loans, “make-whole” settlements, settlements with claimants and certain related expenses.

Revenue from Mortgage Servicing, Including the Effects of Derivative Risk Management Instruments

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

			Quarter Ended March 31,
(in thousands)			2026						2025
Servicing income, net:
Servicing fees and other			$	5,191					$	177
Changes in fair value of single family MSRs - other (1)			(1,442)						—
Amortization of multifamily and SBA MSRs			(1,638)						—
Total			2,111						177
Risk management, single family MSRs:
Changes in fair value of MSRs due to assumptions (2)			702						—
Net gain from economic hedging (3)			(886)						—
Total			(184)						—
Loan servicing income			$	1,927					$	177

(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.

Changes in Single Family MSRs Measured at Fair Value

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

			Quarter Ended March 31,
(in thousands)			2026						2025
Beginning balance			$	58,095					$	—
Additions:
Originations			275						—
Changes in fair value:
Changes in fair value assumptions (1)			702						—
Other (2)			(1,442)						—
Ending balance			$	57,630					$	—

(1)Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates.

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

Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets

To compute hypothetical sensitivities of the fair 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)			March 31, 2026
Fair value of single family MSRs			$	57,630
Expected weighted-average life (in years)			8.15
CPR shock
Impact on fair value of 10% increase in CPR			$	(1,521)
Impact on fair value of 20% increase in CPR			$	(2,999)
Discount rate shock
Impact on fair value of 100 basis points increase			$	(2,479)
Impact on fair value of 200 basis points increase			$	(4,848)

Changes in Multifamily MSRs Measured at the Lower of Amortized Cost or Fair Value

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

			Quarter Ended March 31,
(in thousands)			2026						2025
Beginning balance			$	27,737					$	—
Originations			271						—
Amortization			(1,638)						—
Ending balance			$	26,370					$	—

Summary of Measurement Inputs Used in Measuring Initial Fair Value of Capitalized MSRs

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

			Quarter Ended March 31,
(rates per annum) (1)			2026						2025
Constant prepayment rate (CPR) (2)			12.13		%				n/a
Discount rate (3)			8.81		%				n/a

(1)Based on a weighted average.

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

(3)Based on market observations.

For the fair value of single family MSRs as of March 31, 2026 and December 31, 2025, we use a discounted cash flow valuation technique which utilizes CPRs and discount rates as significant unobservable inputs as noted in the table below:

			March 31, 2026												December 31, 2025
(rates per annum)			Range of Inputs						Average (1)						Range of Inputs						Average (1)
CPRs (2)			5.05% - 12.50%						6.66		%				5.07% - 12.14%						6.96		%
Discount Rates (3)			8.77% - 16.56%						9.11		%				8.65% - 16.05%						8.97		%

(1) Weighted average rates for sales during the period for sales of loans with similar characteristics.

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

(3) Based on market observations.

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

			Quarter Ended March 31,
(rates per annum) (1)			2026						2025
Discount rate			13.00		%				n/a

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

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.

			March 31, 2026												December 31, 2025
			Range of Inputs						Average (1)						Range of Inputs						Average (1)
Discount rates			13.00% - 15.00%						13.07		%				13.00% - 15.00%						13.07		%

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

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