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Securities Held-To-Maturity
 3 Months Ended
Mar. 31, 2026
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss, Maturity [Abstract]  
Securities Held-to-Maturity Securities Held-to-Maturity
Agency Private Label Certificates (“APL certificates”). In connection with our Private Label securitizations, we retain the most subordinate class of the APL certificates in satisfaction of credit risk retention requirements. At March 31, 2026, we held APL certificates with an initial face value of $192.8 million, which were purchased at a discount for $119.0 million. These certificates are collateralized by 5-year to 10-year fixed rate first mortgage loans on multifamily properties, bear interest at an initial weighted average variable rate of 3.94% and have an estimated weighted average remaining maturity of 5.1 years. The weighted average effective interest rate was 8.84% at both March 31, 2026 and December 31, 2025, including the accretion of a portion of the discount deemed collectible. Approximately $63.6 million is estimated to mature in one to five years and $129.2 million is estimated to mature in five to ten years.
Agency B Piece Bonds. At March 31, 2026, we held 49%, or $106.2 million initial face value, of seven Freddie Mac SBL program B Piece bonds, which were previously purchased at a discount for $74.7 million, and sold the remaining 51% to a third party. These securities are collateralized by a pool of multifamily mortgage loans, had an initial weighted average variable rate of 3.74% and have an estimated weighted average remaining maturity of 11.9 years. The weighted average effective interest rate was 2.32% and 2.00% at March 31, 2026 and December 31, 2025, respectively, including the accretion of a portion of the discount deemed collectible. Approximately $32.7 million is estimated to mature after ten years.
A summary of our securities held-to-maturity is as follows ($ in thousands):
Face ValueNet Carrying
Value		Unrealized
Gain (Loss)		Estimated
Fair Value 		Allowance for
Credit Losses
March 31, 2026
APL certificates$192,791 $142,427 $(15,817)$126,610 $1,473 
B Piece bonds32,670 13,042 9,585 22,627 13,652 
Total$225,461 $155,469 $(6,232)$149,237 $15,125 
December 31, 2025
APL certificates$192,791 $140,682 $(15,143)$125,539 $1,664 
B Piece bonds36,730 15,405 9,203 24,608 15,349 
Total$229,521 $156,087 $(5,940)$150,147 $17,013 
A summary of the changes in the allowance for credit losses for our securities held-to-maturity is as follows ($ in thousands):
Three Months Ended March 31, 2026
APL CertificatesB Piece BondsTotal
Beginning balance$1,664 $15,349 $17,013 
Provision for credit loss expense/(reversal)(191)2,400 2,209 
Charge-offs— (4,097)(4,097)
Ending balance$1,473 $13,652 $15,125 
Three Months Ended March 31, 2025
Beginning balance$1,658 $9,188 $10,846 
Provision for credit loss expense/(reversal)1 (80)(79)
Ending balance$1,659 $9,108 $10,767 
The allowance for credit losses on our held-to-maturity securities consists of (1) a general reserve estimated on a collective basis by major security type and was based on a reasonable and supportable forecast period and a historical loss reversion for similar securities, and (2) a specific reserve for underlying loans that are probable of loss. At March 31, 2026, securities held-to-maturity with a carrying value of $12.2 million (before specific allowances of $10.5 million) were on non-accrual status. We continue to accrue interest on all other securities that remain current.
We recorded interest income (including the amortization of discount) related to these investments of $3.7 million, for both the three months ended March 31, 2026 and 2025.