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LOANS

12 Months Ended

Dec. 31, 2025

LOANS

LOANS

NOTE 5 — LOANS

Loans, net of deferred fees and costs, consist of the following (in thousands):


		At			At
		December 31,			December 31,
		2025			2024
Real estate
Commercial		$	5,201,489		$	4,317,361
Construction			261,804			206,960
Multi-family			397,010			376,737
One-to four-family			86,449			90,880
Total real estate loans			5,946,752			4,991,938
Commercial and industrial			871,652			1,046,146
Consumer			10,349			12,961
Total loans			6,828,753			6,051,045
Deferred fees, net of origination costs			(18,520)			(16,969)
Loans, net of deferred fees and costs			6,810,233			6,034,076
Allowance for credit losses			(97,081)			(63,273)
Net loans		$	6,713,152		$	5,970,803

At December 31, 2025, there were $3.7 billion of loans pledged to support wholesale funding, of which $446.5 million were encumbered. At December 31, 2024, there were $3.3 billion of loans pledged to support wholesale funding, of which $348.8 million were encumbered.

The following tables present the activity in the ACL by segment. The portfolio segments represent the categories that the Company uses to determine its ACL (in thousands):


											Multi-			One-to four-
Year ended December 31, 2025		CRE			C&I			Construction			family			family			Consumer			Total
Allowance for credit losses:
Beginning balance		$	42,070		$	10,991		$	1,962		$	7,290		$	577		$	383		$	63,273
Provision/(credit) for credit losses			18,748			(1,236)			549			19,156			(37)			281			37,461
Loans charged-off			—			—			—			(3,827)			—			(262)			(4,089)
Recoveries			—			425			—			—			—			11			436
Total ending allowance balance		$	60,818		$	10,180		$	2,511		$	22,619		$	540		$	413		$	97,081


											Multi-			One-to four-
Year ended December 31, 2024		CRE			C&I			Construction			family			family			Consumer			Total
Allowance for credit losses:
Beginning balance		$	35,635		$	11,207		$	1,765		$	8,215		$	663		$	480		$	57,965
Provision/(credit) for credit losses			6,434			(336)			197			(925)			(86)			147			5,431
Loans charged-off			—			—			—			—			—			(247)			(247)
Recoveries			1			120			—			—			—			3			124
Total ending allowance balance		$	42,070		$	10,991		$	1,962		$	7,290		$	577		$	383		$	63,273

Net charge-offs (recoveries) for the years ended December 31, 2025 and 2024 were $3.7 million and $123,000, respectively.

The following table presents the activity in the ACL for unfunded loan commitments (in thousands):


		Year ended December 31,
		2025			2024
Balance at the beginning of period		$	2,008		$	1,182
Provision/(credit) for credit losses			132			826
Total ending allowance balance		$	2,140		$	2,008

The following tables present the recorded investment in non-accrual loans, loans past due over 90 days and still accruing by class of loans (in thousands):


								Loans Past Due
					Non-accrual			90 Days and
		Total			Without an			Greater and
At December 31, 2025		Non-accrual			ACL			Still Accruing
Commercial real estate		$	32,809		$	3,365		$	—
Commercial & industrial			8,989			6,989			—
Multi-family			42,599			7,861			—
One-to-four family			2,450			2,450			—
Consumer			—			—			37
Total		$	86,847		$	20,665		$	37


								Loans Past Due
					Non-accrual			90 Days and
		Total			Without an			Greater and
At December 31, 2024		Non-accrual			ACL			Still Accruing
Commercial real estate		$	25,087		$	25,087		$	—
Commercial & industrial			6,989			6,989			—
One-to-four family			452			452			—
Consumer			—			—			72
Total		$	32,528		$	32,528		$	72

Interest income on nonaccrual loans recognized on a cash basis for the years ended December 31, 2025 and 2024 was immaterial.

The following tables present the aging of the recorded investment in past due loans by class of loans (in thousands):


								Non-accrual or			Total Past
		30-59			60-89			90 Days and			Due or			Current
At December 31, 2025		Days			Days			Greater			Non-accrual			Loans			Total
Commercial real estate		$	—		$	—		$	32,809		$	32,809		$	5,168,680		$	5,201,489
Commercial & industrial			—			200			8,989			9,189			862,463			871,652
Construction			—			—			—			—			261,804			261,804
Multi-family			1,755			—			42,599			44,354			352,656			397,010
One-to four-family			1,246			—			2,450			3,696			82,753			86,449
Consumer			81			—			37			118			10,231			10,349
Total		$	3,082		$	200		$	86,884		$	90,166		$	6,738,587		$	6,828,753


								Non-accrual or			Total Past
		30-59			60-89			90 Days and			Due or			Current
At December 31, 2024		Days			Days			Greater			Non-accrual			Loans			Total
Commercial real estate		$	7,115		$	—		$	25,087		$	32,202		$	4,285,159		$	4,317,361
Commercial & industrial			—			—			6,989			6,989			1,039,157			1,046,146
Construction			—			—			—			—			206,960			206,960
Multi-family			—			—			—			—			376,737			376,737
One-to four-family			2,049			—			452			2,501			88,379			90,880
Consumer			124			22			72			218			12,743			12,961
Total		$	9,288		$	22		$	32,600		$	41,910		$	6,009,135		$	6,051,045

Credit Quality Indicators

The Company aggregates loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Except for one-to four-family loans and consumer loans, the Company analyzes loans individually by classifying the loans as to credit risk at least annually. For one-to four-family loans and consumer loans, the Company evaluates credit quality based on the aging status of the loan, which was previously presented. An analysis is performed on a quarterly basis for loans classified as special mention, substandard, or doubtful. The Company uses the following definitions for risk ratings. Loans not meeting these definitions are considered to be pass rated loans.

Special Mention - Loans classified as special mention have a potential weakness that deserves management’s attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.

Substandard - Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

The following table presents loan balances by credit quality indicator and year of origination at December 31, 2025 (in thousands):


																	2020
		2025			2024			2023			2022			2021			& Prior			Revolving			Total
CRE
Pass		$	2,514,770		$	1,030,181		$	675,773		$	524,079		$	192,304		$	135,336		$	50,491		$	5,122,934
Special Mention			19,525			21,500			—			—			1,246			—			—			42,271
Substandard			3,475			—			—			24,000			8,809			—			—			36,284
Total		$	2,537,770		$	1,051,681		$	675,773		$	548,079		$	202,359		$	135,336		$	50,491		$	5,201,489

Construction
Pass		$	129,806		$	49,898		$	51,484		$	—		$	—		$	—		$	30,616		$	261,804
Total		$	129,806		$	49,898		$	51,484		$	—		$	—		$	—		$	30,616		$	261,804

Multi-family
Pass		$	169,606		$	32,869		$	30,296		$	36,451		$	60,650		$	8,930		$	2,671		$	341,473
Special Mention			12,938			—			—			—			—			—			—			12,938
Substandard			40,070			2,529			—			—			—			—			—			42,599
Total		$	222,614		$	35,398		$	30,296		$	36,451		$	60,650		$	8,930		$	2,671		$	397,010

One-to four-family
Current		$	—		$	—		$	45,000		$	3,192		$	211		$	35,596		$	—		$	83,999
Substandard			—			—			—			—			—			2,450			—			2,450
Total		$	—		$	—		$	45,000		$	3,192		$	211		$	38,046		$	—		$	86,449

C&I
Pass		$	130,514		$	138,733		$	46,470		$	80,377		$	16,377		$	2,372		$	399,005		$	813,848
Substandard			14,008			—			7,643			20,968			—			—			15,185			57,804
Total		$	144,522		$	138,733		$	54,113		$	101,345		$	16,377		$	2,372		$	414,190		$	871,652

Consumer
Current		$	—		$	—		$	—		$	—		$	—		$	10,231		$	—		$	10,231
Past due			—			—			—			—			—			118			—			118
Total		$	—		$	—		$	—		$	—		$	—		$	10,349		$	—		$	10,349

Total
Pass/Current		$	2,944,696		$	1,251,680		$	849,023		$	644,099		$	269,543		$	192,465		$	482,783		$	6,634,289
Special Mention			32,463			21,500			—			—			1,246			—			—			55,209
Substandard/Past due			57,553			2,529			7,643			44,968			8,809			2,568			15,185			139,255
Total		$	3,034,712		$	1,275,709		$	856,666		$	689,067		$	279,598		$	195,033		$	497,968		$	6,828,753

Charge-offs
Multi-family		$	—		$	—		$	—		$	—		$	3,827		$	—		$	—		$	3,827
Consumer			—			—			—			—			—			262			—			262
Total		$	—		$	—		$	—		$	—		$	3,827		$	262		$	—		$	4,089

The following table presents loan balances by credit quality indicator and year of origination at December 31, 2024 (in thousands):


																	2019
		2024			2023			2022			2021			2020			& Prior			Revolving			Total
CRE
Pass		$	1,613,785		$	1,114,212		$	927,851		$	241,340		$	125,676		$	149,727		$	26,569		$	4,199,160
Special Mention			73,859			—			5,000			14,255			—			—			—			93,114
Substandard			1,087			—			24,000			—			—			—			—			25,087
Total		$	1,688,731		$	1,114,212		$	956,851		$	255,595		$	125,676		$	149,727		$	26,569		$	4,317,361

Construction
Pass		$	104,503		$	65,231		$	8,693		$	—		$	—		$	—		$	28,533		$	206,960
Total		$	104,503		$	65,231		$	8,693		$	—		$	—		$	—		$	28,533		$	206,960

Multi-family
Pass		$	110,440		$	38,143		$	74,120		$	63,086		$	23,005		$	13,480		$	3,224		$	325,498
Substandard			—			—			30,300			20,939			—			—			—			51,239
Total		$	110,440		$	38,143		$	104,420		$	84,025		$	23,005		$	13,480		$	3,224		$	376,737

One-to four-family
Current		$	—		$	45,000		$	3,469		$	—		$	9,531		$	30,379		$	—		$	88,379
Past Due			—			—			—			—			—			2,501			—			2,501
Total		$	—		$	45,000		$	3,469		$	—		$	9,531		$	32,880		$	—		$	90,880

C&I
Pass		$	238,850		$	96,201		$	119,601		$	62,865		$	14,987		$	1,929		$	452,477		$	986,910
Special Mention			—			1,497			10,246			—			—			—			1,000			12,743
Substandard			—			7,643			20,968			4,697			—			—			13,185			46,493
Total		$	238,850		$	105,341		$	150,815		$	67,562		$	14,987		$	1,929		$	466,662		$	1,046,146

Consumer
Current		$	—		$	—		$	—		$	—		$	—		$	12,743		$	—		$	12,743
Past due			—			—			—			—			—			218			—			218
Total		$	—		$	—		$	—		$	—		$	—		$	12,961		$	—		$	12,961

Total
Pass/Current		$	2,067,578		$	1,358,787		$	1,133,734		$	367,291		$	173,199		$	208,258		$	510,803		$	5,819,650
Special Mention			73,859			1,497			15,246			14,255			—			—			1,000			105,857
Substandard/Past due			1,087			7,643			75,268			25,636			—			2,719			13,185			125,538
Total		$	2,142,524		$	1,367,927		$	1,224,248		$	407,182		$	173,199		$	210,977		$	524,988		$	6,051,045

Charge-offs
Consumer		$	—		$	—		$	—		$	—		$	—		$	247		$	—		$	247

A loan is considered collateral dependent when the borrower is experiencing financial difficulties and repayment is expected to be substantially provided by the operation or sale of the collateral. The following table presents collateral dependent substandard loans by portfolio segment as of December 31, 2025 and December 31, 2024 (in thousands):



		December 31,			December 31,
		2025			2024
Collateral dependent loans:
Commercial real estate		$	36,284		$	24,000
Multi-family			42,599			51,239
One-to four-family			2,450			—
Total		$	81,333		$	75,239

The following tables show the amortized cost basis of modified loans to borrowers experiencing financial difficulty (in thousands):


					Combination
					Term
					Extension and									Modifications
					Interest Rate			Interest Rate						as a % of
		Extension			Reduction			Reduction			Total			Loan Class
Year ended December 31, 2025
Commercial & industrial		$	9,810		$	—		$	—		$	9,810		1.1%
Multi-family			34,738			—			—			34,738		8.7%
Total		$	44,548		$	—		$	—		$	44,548


					Combination
					Term
					Extension and									Modifications
					Interest Rate			Interest Rate						as a % of
		Extension			Reduction			Reduction			Total			Loan Class
Year ended December 31, 2024
Commercial & industrial		$	—		$	11,686		$	—		$	11,686		1.1%
Multi-family			—			48,224			3,015			51,239		13.6%
Total		$	—		$	59,910		$	3,015		$	62,925


		Types of Modifications
				Weighted
				Average
				Interest
		Term		Rate
		Extension		Reduction
Year ended December 31, 2025
Commercial & industrial		144 months		—
Multi-family		6-12 months		—

Year ended December 31, 2024
Commercial & industrial		11-12 months		2.9%
Multi-family		6-12 months		4.1%

There were $34.7 million of CRE multi-family loans and $7.0 million of C&I loans that had a payment default during the year ended December 31, 2025 that were modified in the prior 12 months before default to borrowers experiencing financial difficulty. At December 31, 2025 there were no additional commitments to lend to borrowers experiencing financial difficulty whose loans have been modified.

There were $7.0 million of C&I loans, that had a payment default during the year ended December 31, 2024 that were modified in the prior 12 months before default to borrowers experiencing financial difficulty. At December 31, 2024, there were no additional commitments to lend to borrowers experiencing financial difficulty whose loans have been modified.