LOANS AND LEASES

3 Months Ended

Mar. 31, 2026

3. LOANS AND LEASES

Loans outstanding, excluding those held for sale, by general ledger classification, as of March 31, 2026 and December 31, 2025, consisted of the following:


			% of					% of
	March 31,		Totals			December 31,		Total
(Dollars in thousands)	2026		Loans			2025		Loans
Residential mortgage	$	662,949		10.3	%	$	647,766		10.4	%
Multifamily mortgage		1,824,882		28.4			1,862,592		29.8
Commercial mortgage		887,712		13.8			774,428		12.4
Commercial loans (including equipment financing)		2,788,346		43.3			2,721,447		43.5
Commercial construction		695		0.0			495		0.0
Home equity lines of credit		58,194		0.9			59,306		0.9
Consumer loans, including fixed rate home equity loans		210,731		3.3			187,360		3.0
Other loans		860		0.0			342		0.0
Total loans	$	6,434,369		100.0	%	$	6,253,736		100.0	%

In determining an appropriate amount for the allowance, the Bank segments and aggregated the loan portfolio based on common characteristics. The following pool segments identified as of March 31, 2026 and December 31, 2025 are based on the CECL methodology:


			% of					% of
	March 31,		Totals			December 31,		Total
(Dollars in thousands)	2026		Loans			2025		Loans
Primary residential mortgage	$	652,450		10.1	%	$	632,890		10.1	%
Junior lien loan on residence		60,704		0.9			61,420		1.0
Multifamily property		1,824,882		28.4			1,862,592		29.8
Owner-occupied commercial real estate		294,248		4.6			289,801		4.6
Investment commercial real estate		1,217,060		18.9			1,101,082		17.6
Commercial and industrial		1,875,403		29.2			1,823,557		29.2
Lease financing		273,380		4.3			266,038		4.3
Construction		20,533		0.3			24,959		0.4
Consumer and other		213,732		3.3			189,633		3.0
Total loans		6,432,392		100.0	%		6,251,972		100.0	%
Net deferred costs		1,977					1,764
Total loans including net deferred costs	$	6,434,369				$	6,253,736

The following tables present the recorded investment in nonaccrual and loans past due 90 days or over still on accrual by class of loans as of March 31, 2026 and December 31, 2025:


			March 31, 2026
	Nonaccrual				Loans Past Due
	With No				90 Days or Over
	Allowance				And Still
(In thousands)	for Credit Loss		Nonaccrual		Accruing Interest
Primary residential mortgage	$	2,800	$	3,145	$	—
Junior lien loan on residence		104		104		—
Multifamily property		14,550		31,146		—
Investment commercial real estate		9,596		11,526		—
Commercial and industrial		9,009		13,377		—
Lease financing		23		23		—
Total	$	36,082	$	59,321	$	—


			December 31, 2025
	Nonaccrual				Loans Past Due
	With No				90 Days or Over
	Allowance				And Still
(In thousands)	for Credit Loss		Nonaccrual		Accruing Interest
Primary residential mortgage	$	2,573	$	2,573	$	—
Junior lien loan on residence		106		106		—
Multifamily property		14,671		31,343		—
Investment commercial real estate		9,628		11,557		—
Commercial and industrial		8,973		22,641		—
Lease financing		23		23		—
Total	$	35,974	$	68,243	$	—

The following tables present the aging of the recorded investment in past due loans as of March 31, 2026 and December 31, 2025 by class of loans, excluding nonaccrual loans:


	March 31, 2026
	30-59		60-89		90 Days or
	Days		Days		Greater		Total
(In thousands)	Past Due		Past Due		Past Due		Past Due
Primary residential mortgage	$	981	$	776	$	—	$	1,757
Multifamily property		4,769		38,485		—		43,254
Commercial and industrial		556		1,486		—		2,042
Total	$	6,306	$	40,747	$	—	$	47,053


	December 31, 2025
	30-59		60-89		90 Days or
	Days		Days		Greater		Total
(In thousands)	Past Due		Past Due		Past Due		Past Due
Primary residential mortgage	$	7,121	$	799	$	—	$	7,920
Junior lien on residence		—		64		—		64
Multifamily property		4,642		9,576		—		14,218
Commercial and industrial		4,228		125		—		4,353
Total	$	15,991	$	10,564	$	—	$	26,555

Credit Quality Indicators:

The Company places all commercial loans into various credit risk rating categories based on an assessment of the expected ability of the borrowers to properly service their debt. The assessment considers numerous factors including, but not limited to, current financial information on the borrower, historical payment experience, strength of any guarantor, nature of and value of any collateral, acceptability of the loan structure and documentation, relevant public information and current economic trends. This credit risk rating analysis is performed when the loan is initially underwritten and then annually based on set criteria in the loan policy.

In addition, the Bank has engaged an independent loan review firm to validate risk ratings and to ensure compliance with our policies and procedures. This review of the following types of loans is performed quarterly:

•

A large sample of relationships or new lending to existing relationships greater than $1,000,000 booked since the prior review;

•

All criticized and classified rated borrowers with relationship exposure of more than $500,000;

•

A large sample of Pass-rated (including Pass Watch) borrowers with total relationships in excess of $1,000,000 and a small sample of Pass related relationships less than $1,000,000;

•

All leveraged loans of $1,000,000 or greater;

•

At least two borrowing relationships managed by each commercial banker;

•

Any new Federal Reserve Board Regulation O loan commitments over $1,000,000; and

•

Any other credits requested by Bank senior management or a member of the Board of Directors and any borrower for which the reviewer determines a review is warranted based upon knowledge of the portfolio, local events, industry stresses, etc.

The review excludes borrowers with commitments of less than $500,000.

The Company uses the following regulatory definitions for criticized and classified risk ratings:

Special Mention: These loans have a potential weakness that deserves Management’s close attention. If left uncorrected, the potential weaknesses may result in deterioration of the repayment prospects for the loans or of the institution’s credit position at some future date.

Substandard: These loans 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 institution will sustain some loss if the deficiencies are not corrected.

Doubtful: These loans have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable, based on currently existing facts, conditions and values.

Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be pass-rated loans.

With the adoption of CECL, loans that are in the process of or expected to be in foreclosure are deemed to be collateral dependent with respect to measuring potential loss and allowance adequacy and are individually evaluated by Management. Loans that do not share common risk characteristics are also evaluated on an individual basis. All other loans are evaluated using a non-linear discounted cash flow methodology for measuring potential loss and allowance adequacy.

The following is a summary of the credit risk profile of loans by internally assigned grade as of March 31, 2026 and December 31, 2025 based on originations for the periods indicated; the years represent the year of origination for non-revolving loans:


	Grade as of March 31, 2026 for Loans Originated During
											2021				Revolving-
(In thousands)	2026		2025		2024		2023		2022		and Prior		Revolving		Term		Total
Primary residential mortgage:
Pass	$	31,696	$	85,092	$	69,106	$	81,885	$	99,819	$	273,475	$	—	$	7,573	$	648,646
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		1,327		1,063		1,414		—		—		3,804
Doubtful		—		—		—		—		—		—		—		—		—
Total primary residential mortgages		31,696		85,092		69,106		83,212		100,882		274,889		—		7,573		652,450
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Junior lien loan on residence:
Pass		—		—		—		444		929		638		52,643		5,947		60,601
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		102		1		103
Doubtful		—		—		—		—		—		—		—		—		—
Total junior lien loan on residence		—		—		—		444		929		638		52,745		5,948		60,704
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Multifamily property:
Pass		38,110		227,916		23,537		50,832		410,848		955,089		—		45,005		1,751,337
Special mention		—		—		—		—		3,374		34,045		—		—		37,419
Substandard		—		—		—		—		—		36,126		—		—		36,126
Doubtful		—		—		—		—		—		—		—		—		—
Total multifamily property		38,110		227,916		23,537		50,832		414,222		1,025,260		—		45,005		1,824,882
Current period gross charge-offs		—		—		—		—		—		3,538		—		—		3,538

Owner-occupied commercial real estate:
Pass		16,867		61,125		31,712		3,334		20,864		136,552		11,858		9,834		292,146
Special mention		—		—		—		678		—		—		118		—		796
Substandard		—		—		—		—		—		1,306		—		—		1,306
Doubtful		—		—		—		—		—		—		—		—		—
Total owner-occupied commercial real estate		16,867		61,125		31,712		4,012		20,864		137,858		11,976		9,834		294,248
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Investment commercial real estate:
Pass		132,221		284,466		40,050		98,528		121,027		444,330		27,634		32,217		1,180,473
Special mention		—		—		—		—		21,834		3,227		—		—		25,061
Substandard		—		—		—		—		9,596		1,930		—		—		11,526
Doubtful		—		—		—		—		—		—		—		—		—
Total investment commercial real estate		132,221		284,466		40,050		98,528		152,457		449,487		27,634		32,217		1,217,060
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Commercial and industrial:
Pass		139,104		444,690		255,182		59,844		87,407		80,099		721,565		37,158		1,825,049
Special mention		—		—		147		863		—		6,457		3,000		2,192		12,659
Substandard		—		1,486		10,146		1,249		—		832		8,535		15,447		37,695
Doubtful		—		—		—		—		—		—		—		—		—
Total commercial and industrial		139,104		446,176		265,475		61,956		87,407		87,388		733,100		54,797		1,875,403
Current period gross charge-offs		—		—		—		7,810		—		—		—		—		7,810

Lease financing:
Pass		22,855		100,835		36,730		30,147		28,061		54,729		—		—		273,357
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		23		—		—		23
Doubtful		—		—		—		—		—		—		—		—		—
Total lease financing		22,855		100,835		36,730		30,147		28,061		54,752		—		—		273,380
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Construction:
Pass		—		5,500		—		—		—		—		15,033		—		20,533
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total commercial construction loans		—		5,500		—		—		—		—		15,033		—		20,533
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Consumer and other loans:
Pass		43,902		116,088		—		—		—		2,429		48,734		2,579		213,732
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total consumer and other loans		43,902		116,088		—		—		—		2,429		48,734		2,579		213,732
Current period gross charge-offs		—		—		—		—		—		—		—		12		12

Total:


	Grade as of March 31, 2026 for Loans Originated During
											2021				Revolving-
(In thousands)	2026		2025		2024		2023		2022		and Prior		Revolving		Term		Total
Pass		424,755		1,325,712		456,317		325,014		768,955		1,947,341		877,467		140,313		6,265,874
Special mention		—		—		147		1,541		25,208		43,729		3,118		2,192		75,935
Substandard		—		1,486		10,146		2,576		10,659		41,631		8,637		15,448		90,583
Doubtful		—		—		—		—		—		—		—		—		—
Total Loans	$	424,755	$	1,327,198	$	466,610	$	329,131	$	804,822	$	2,032,701	$	889,222	$	157,953	$	6,432,392
Total Current Period Gross Charge-offs	$	—	$	—	$	—	$	7,810	$	—	$	3,538	$	—	$	12	$	11,360


	Grade as of December 31, 2025 for Loans Originated During
											2020				Revolving-
(In thousands)	2025		2024		2023		2022		2021		and Prior		Revolving		Term		Total
Primary residential mortgage:
Pass	$	85,591	$	71,744	$	84,353	$	100,859	$	65,826	$	213,686	$	—	$	7,595	$	629,654
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		1,341		725		—		1,170		—		—		3,236
Doubtful		—		—		—		—		—		—		—		—		—
Total primary residential mortgages		85,591		71,744		85,694		101,584		65,826		214,856		—		7,595		632,890
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Junior lien loan on residence:
Pass		—		—		456		966		53		640		53,187		6,013		61,315
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		104		1		105
Doubtful		—		—		—		—		—		—		—		—		—
Total junior lien loan on residence		—		—		456		966		53		640		53,291		6,014		61,420
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Multifamily property:
Pass		228,337		23,563		50,982		404,551		582,573		457,032		525		44,575		1,792,138
Special mention		—		—		—		—		9,577		4,510		—		—		14,087
Substandard		—		—		—		11,888		14,337		30,142		—		—		56,367
Doubtful		—		—		—		—		—		—		—		—		—
Total multifamily property		228,337		23,563		50,982		416,439		606,487		491,684		525		44,575		1,862,592
Current period gross charge-offs		—		—		—		6,724		—		6,267		—		—		12,991

Owner-occupied commercial real estate:
Pass		66,950		31,903		4,051		21,019		42,915		95,725		15,980		9,947		288,490
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		1,311		—		—		1,311
Doubtful		—		—		—		—		—		—		—		—		—
Total owner-occupied commercial real estate		66,950		31,903		4,051		21,019		42,915		97,036		15,980		9,947		289,801
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Investment commercial real estate:
Pass		282,992		40,256		99,050		127,401		70,298		386,318		21,975		35,928		1,064,218
Special mention		—		—		—		22,030		—		3,277		—		—		25,307
Substandard		—		—		—		9,628		—		1,929		—		—		11,557
Doubtful		—		—		—		—		—		—		—		—		—
Total investment commercial real estate		282,992		40,256		99,050		159,059		70,298		391,524		21,975		35,928		1,101,082
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Commercial and industrial:
Pass		474,578		299,802		71,416		95,215		92,549		11,815		694,850		25,386		1,765,611
Special mention		—		—		935		—		6,870		647		3,000		181		11,633
Substandard		—		10,234		1,249		—		120		2,377		19,634		12,699		46,313
Doubtful		—		—		—		—		—		—		—		—		—
Total commercial and industrial		474,578		310,036		73,600		95,215		99,539		14,839		717,484		38,266		1,823,557
Current period gross charge-offs		—		232		2,517		11,087		—		44		—		—		13,880

Lease financing:
Pass		103,440		38,742		31,353		29,541		38,229		23,992		718		—		266,015
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		23		—		—		23
Doubtful		—		—		—		—		—		—		—		—		—
Total lease financing		103,440		38,742		31,353		29,541		38,229		24,015		718		—		266,038
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Construction:
Pass		5,500		—		—		—		—		—		19,459		—		24,959
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total commercial construction loans		5,500		—		—		—		—		—		19,459		—		24,959
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Consumer and other loans:
Pass		140,823		—		—		—		149		2,623		43,417		2,621		189,633
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total consumer and other loans		140,823		—		—		—		149		2,623		43,417		2,621		189,633
Current period gross charge-offs		—		—		—		—		—		4		—		33		37

Total:
Pass		1,388,211		506,010		341,661		779,552		892,592		1,191,831		850,111		132,065		6,082,033
Special mention		—		—		935		22,030		16,447		8,434		3,000		181		51,027
Substandard		—		10,234		2,590		22,241		14,457		36,952		19,738		12,700		118,912
Doubtful		—		—		—		—		—		—		—		—		—
Total Loans	$	1,388,211	$	516,244	$	345,186	$	823,823	$	923,496	$	1,237,217	$	872,849	$	144,946	$	6,251,972
Total Current Period Gross Charge-offs	$	—	$	232	$	2,517	$	17,811	$	—	$	6,315	$	—	$	33	$	26,908

At March 31, 2026, $59.3 million of substandard loans were individually evaluated, compared to $68.2 million at December 31, 2025. The decrease in individually evaluated substandard loans was driven by the liquidation of one commercial loan with a balance

of $9.6 million during the three months ended March 31, 2026. The increase in special mention loans was primarily due to one multifamily relationship with an outstanding balance of $36.2 million at March 31, 2026.

Loan Modifications:

The Company will provide loan modifications, at its discretion, to assist borrowers that may be experiencing financial difficulty. Examples of changes provided in a loan modification may include payment deferrals that are more than insignificant, an extension of the note term, or a reduction in the interest rate on a note. In certain instances, the Company may grant more than one type of modification. All accruing modified loans were paying in accordance with their modified terms as of March 31, 2026. The Company has not committed to lend additional amounts as of March 31, 2026 to customers with outstanding loans that are classified as modified loans.

There were loan modifications made during the first three months of 2026, which included one multifamily loan, one primary residential mortgage, and two commercial and industrial loans of $1.2 million, $82,000 and $2.3 million, respectively.

The following tables provide information related to the modifications completed during the three months ended March 31, 2026 by pool segment and type of concession granted:


	Significant Payment Delay
	Three Months Ended
	March 31, 2026
			% of Total
	Amortized		Class of
	Cost Basis		Financing
(Dollars in thousands)	at Period End		Receivable
Primary residential mortgage	$	82		0.01	%
Total	$	82		0.01	%


	Combination Int Rate Reduction
	and Significant Payment Delay
	Three Months Ended
	March 31, 2026
			% of Total
	Amortized		Class of
	Cost Basis		Financing
(Dollars in thousands)	at Period End		Receivable
Multifamily property	$	1,209		0.07	%
Total	$	1,209		0.07	%


	Combination Significant Payment
	Delay & Term Extension
	Three Months Ended
	March 31, 2026
			% of Total
	Amortized		Class of
	Cost Basis		Financing
(Dollars in thousands)	at Period End		Receivable
Commercial and industrial	$	2,338		0.12	%
Total	$	2,338		0.12	%

The following table provides information related to the modifications during the three months ended March 31, 2025 by pool segment and type of concession granted:


	Significant Payment Delay
	Three Months Ended
	March 31, 2025
			% of Total
	Amortized		Class of
	Cost Basis		Financing
(Dollars in thousands)	at Period End		Receivable
Primary residential mortgage	$	295		0.05	%
Multifamily property		8,303		0.47	%
Commercial and industrial		10,689		0.66	%
Total	$	19,287		1.18	%


	Significant Payment Delay
	and Term Extension
	Three Months Ended
	March 31, 2025
			% of Total
	Amortized		Class of
	Cost Basis		Financing
(Dollars in thousands)	at Period End		Receivable
Commercial and industrial	$	416		0.03	%
Total	$	416		0.03	%


	Interest Rate Reduction and
	Significant Payment Delay
	Three Months Ended
	March 31, 2025
			% of Total
	Amortized		Class of
	Cost Basis		Financing
(Dollars in thousands)	at Period End		Receivable
Multifamily property	$	9,307		0.52	%
Total	$	9,307		0.52	%

The following table depicts the payment status of the loans that were modified to a borrower experiencing financial difficulties as of March 31, 2026:


	Payment Status at March 31, 2026
			30-89 Days		90+ Days
(Dollars in thousands)	Current		Past Due		Past Due
Primary residential mortgage	$	83	$	311	$	92
Multifamily property		43,101		47,481		—
Commercial and industrial		13,974		416		—
Total	$	57,158	$	48,208	$	92

The following table depicts the payment status of the loans that were modified to a borrower experiencing financial difficulties as of March 31, 2025:


	Payment Status at March 31, 2025
			30-89 Days		90+ Days
(Dollars in thousands)	Current		Past Due		Past Due
Primary residential mortgage	$	637	$	295	$	—
Multifamily property	$	9,307	$	8,303
Investment commercial real estate		17,804		—		—
Commercial and industrial		22,851		4,993		2,976
Total	$	50,599	$	13,591	$	2,976

The following table presents loans by class modified that failed to comply with the modified terms in the twelve months following modification and resulted in a payment default at March 31, 2026:


	Amortized Cost Basis of Modified Loans
	That Subsequently Defaulted
	Three Months Ended March 31, 2026
							Interest Rate
			Interest Rate				Reduction &
			Reduction &				Pay Delay
	Significant		Significant		Term		and Term
(Dollars in thousands)	Pay Delay		Pay Delay		Extension		Extension
Primary residential mortgage	$	404	$	—	$	—	$	—
Multifamily property		40,582		18,771		—		2,882
Commercial and industrial		—		—		3,936		—
Total	$	40,986	$	18,771	$	3,936	$	2,882

The following table presents loans by class modified that failed to comply with the modified terms in the twelve months following modification and resulted in a payment default at March 31, 2025:


	Amortized Cost Basis of Modified Loans
	That Subsequently Defaulted
	Three Months Ended
	March 31, 2025
	Significant		Interest
(Dollars in thousands)	Pay Delay		Rate Reduction
Primary residential mortgage	$	932	$	—
Multifamily property		8,303		—
Investment commercial real estate		—		17,804
Commercial and industrial		—		5,203
Total	$	9,235	$	23,007