ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 2025

ALLOWANCE FOR CREDIT LOSSES

Schedule of allowance for credit losses

The following is a rollforward of the allowance for credit losses related to loans held for investment for the following periods:


					Provision
		Beginning			(Reversal) for									Ending
(dollars in thousands)		Balance			Credit Losses			Charge-offs			Recoveries			Balance
Three Months Ended September 30, 2025:
Real estate loans:
Residential properties		$	6,780		$	35,165		$	—		$	—		$	41,945
Commercial properties			6,390			3,526			—			—			9,916
Land and construction			93			(7)			—			—			86
Commercial and industrial loans			24,284			26,202			(670)			137			49,953
Consumer loans			13			—			—			—			13
Total		$	37,560		$	64,886		$	(670)		$	137		$	101,913

Nine Months Ended September 30, 2025:
Real estate loans:
Residential properties		$	7,216		$	34,723		$	—		$	6		$	41,945
Commercial properties			6,683			3,233			—			—			9,916
Land and construction			61			25			—			—			86
Commercial and industrial loans			18,333			32,486			(1,565)			699			49,953
Consumer loans			9			4			—			—			13
Total		$	32,302		$	70,471		$	(1,565)		$	705		$	101,913

Three Months Ended September 30, 2024:
Real estate loans:
Residential properties		$	9,013			(2,010)			—			—		$	7,003
Commercial properties			6,086			493			—			—			6,579
Land and construction			77			(17)			—			—			60
Commercial and industrial loans			14,104			1,809			(341)			80			15,652
Consumer loans			15			14			(23)			—			6
Total		$	29,295		$	289		$	(364)		$	80		$	29,300

Nine Months Ended September 30, 2024:
Real estate loans:
Residential properties		$	9,921		$	(2,918)		$	—		$	—		$	7,003
Commercial properties			4,148			2,431			—			—			6,579
Land and construction			332			(272)			—			—			60
Commercial and industrial loans			14,796			1,676			(1,203)			383			15,652
Consumer loans			8			20			(23)			1			6
Total		$	29,205		$	937		$	(1,226)		$	384		$	29,300

Schedule of the amortized cost basis of collateral dependent loans and the related ACL allocated to these loans

A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the operation or sale of the collateral. Collateral dependent loans are evaluated individually to determine expected credit losses and any ACL allocation is determined based upon the amount by which amortized costs exceed the estimated fair value of the collateral, adjusted for estimated selling costs (if applicable). The following table presents the amortized cost basis of collateral dependent loans and the related ACL allocated to these loans as of the dates indicated:


								Equipment/							ACL
(dollars in thousands)		Real Estate			Cash			Receivables			Total				Allocation
September 30, 2025:
Loans secured by real estate:
Residential properties
Multifamily		$	1,429		$	—		$	—		$	1,429		$	—
Single-family			17,672			—			—			17,672			—
Commercial real estate loans			5,427			—			—			5,427			1,343
Commercial loans			175			—			27,013			27,188			16,992
Total		$	24,703		$	—		$	27,013		$	51,716		$	18,335

December 31, 2024:
Loans secured by real estate:
Residential properties
Multifamily		$	2,802		$	—		$	—		$	2,802		$	—
Single-family			15,856			—			—			15,856			—
Commercial real estate loans			4,497			—			—			4,497			—
Commercial loans			—			—			3,935			3,935			697
Total		$	23,155		$	—		$	3,935		$	27,090		$	697

Summary of risk categories of loans based on year of origination

The following tables present risk categories of loans held for investment based on year of origination, and includes gross charge-offs in accordance with ASU 2022-02 as of the dates presented:


																				Revolving
(dollars in thousands)		2025			2024			2023			2022			2021			Prior			Loans			Total
September 30, 2025:
Loans secured by real estate:
Residential
Multifamily
Pass		$	88,776		$	87,369		$	532		$	1,582,936		$	745,546		$	451,787		$	—		$	2,956,946
Special mention			—			—			—			93,105			26,680			61,758			—			181,543
Substandard			—			—			—			22,865			14,563			101,894			—			139,322
Doubtful			—			—			—			—			—			—			—			—
Total		$	88,776		$	87,369		$	532		$	1,698,906		$	786,789		$	615,439		$	—		$	3,277,811
Gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Single-family
Pass		$	16,980		$	5,393		$	9,378		$	236,425		$	242,505		$	260,777		$	34,627		$	806,085
Special mention			—			—			—			—			—			—			525			525
Substandard			—			—			—			1,555			—			18,309			104			19,968
Doubtful			—			—			—			—			—			—			—			—
Total		$	16,980		$	5,393		$	9,378		$	237,980		$	242,505		$	279,086		$	35,256		$	826,578
Gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Commercial real estate
Pass		$	—		$	2,767		$	2,367		$	202,686		$	91,098		$	399,399		$	—		$	698,317
Special mention			—			—			—			7,632			—			16,593			—			24,225
Substandard			—			—			—			5,209			2,996			14,923			—			23,128
Doubtful			—			—			—			—			—			—			—			—
Total		$	—		$	2,767		$	2,367		$	215,527		$	94,094		$	430,915		$	—		$	745,670
Gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Land and construction
Pass		$	—		$	121		$	—		$	28,235		$	4,338		$	4,863		$	—		$	37,557
Special mention			—			—			—			—			—			142			—			142
Substandard			—			—			—			—			—			—			—			—
Doubtful			—			—			—			—			—			—			—			—
Total		$	—		$	121		$	—		$	28,235		$	4,338		$	5,005		$	—		$	37,699
Gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Commercial
Pass		$	25,065		$	59,169		$	90,564		$	831,893		$	147,500		$	94,605		$	1,044,624		$	2,293,420
Special mention			—			595			4,482			9,336			32,596			623			7,961			55,593
Substandard			438			2,319			11,733			20			20,141			2,270			3,233			40,154
Doubtful			1,098			—			16,326			—			—			—			6,505			23,929
Total		$	26,601		$	62,083		$	123,105		$	841,249		$	200,237		$	97,498		$	1,062,323		$	2,413,096
Gross charge-offs		$	—		$	32		$	469		$	627		$	319		$	30		$	88		$	1,565

Consumer
Pass		$	10		$	—		$	708		$	—		$	98		$	42		$	703		$	1,561
Special mention			—			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—			—
Doubtful			—			—			—			—			—			—			—			—
Total		$	10		$	—		$	708		$	—		$	98		$	42		$	703		$	1,561
Gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Total loans
Pass		$	130,831		$	154,819		$	103,549		$	2,882,175		$	1,231,085		$	1,211,473		$	1,079,954		$	6,793,886
Special mention			—			595			4,482			110,073			59,276			79,116			8,486			262,028
Substandard			438			2,319			11,733			29,649			37,700			137,396			3,337			222,572
Doubtful			1,098			—			16,326			—			—			—			6,505			23,929
Total		$	132,367		$	157,733		$	136,090		$	3,021,897		$	1,328,061		$	1,427,985		$	1,098,282		$	7,302,415
Gross charge-offs		$	—		$	32		$	469		$	627		$	319		$	30		$	88		$	1,565


																				Revolving
(dollars in thousands)		2024			2023			2022			2021			2020			Prior			Loans			Total
December 31, 2024:
Loans secured by real estate:
Residential
Multifamily
Pass		$	101,311		$	539		$	1,701,974		$	749,864		$	369,887		$	241,935		$	—		$	3,165,510
Special mention			—			—			—			47,090			18,572			8,623			—			74,285
Substandard			—			—			13,231			—			18,234			76,185			—			107,650
Doubtful			—			—			—			—			—			—			—			—
Total		$	101,311		$	539		$	1,715,205		$	796,954		$	406,693		$	326,743		$	—		$	3,347,445
Gross charge-offs		$	—			—			—			—			—			657			—		$	657

Single-family
Pass		$	5,410		$	9,441		$	247,252		$	255,096		$	90,422		$	203,116		$	44,580		$	855,317
Special mention			—			—			—			—			—			—			510			510
Substandard			—			—			—			—			—			21,104			25			21,129
Doubtful			—			—			—			—			—			—			—			—
Total		$	5,410		$	9,441		$	247,252		$	255,096		$	90,422		$	224,220		$	45,115		$	876,956
Gross charge-offs		$	—			—			—			—			—			—			—		$	—

Commercial real estate
Pass		$	3,784		$	2,398		$	217,827		$	115,582		$	136,414		$	378,101		$	—		$	854,106
Special mention			—			—			1,637			1,299			7,966			4,795			—			15,697
Substandard			—			12,900			—			—			845			20,133			—			33,878
Doubtful			—			—			—			—			—			—			—			—
Total		$	3,784		$	15,298		$	219,464		$	116,881		$	145,225		$	403,029		$	—		$	903,681
Gross charge-offs		$	—			—			—			—			—			964			—		$	964

Land and construction
Pass		$	125		$	24,970		$	32,877		$	4,444		$	1,035		$	5,683		$	—		$	69,134
Special mention			—			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—			—
Doubtful			—			—			—			—			—			—			—			—
Total		$	125		$	24,970		$	32,877		$	4,444		$	1,035		$	5,683		$	—		$	69,134
Gross charge-offs		$	—			—			—			—			—			—			—		$	—

Commercial
Pass		$	66,699		$	151,580		$	972,111		$	234,062		$	88,657		$	27,220		$	1,147,464		$	2,687,793
Special mention			690			3,400			9,430			24,087			—			605			7,602			45,814
Substandard			2,593			31			28			422			12			2,218			4,103			9,407
Doubtful			—			—			—			—			—			—			—			—
Total		$	69,982		$	155,011		$	981,569		$	258,571		$	88,669		$	30,043		$	1,159,169		$	2,743,014
Gross charge-offs		$	572			622			1,310			795			3,437			4,530			5,504		$	16,770

Consumer
Pass		$	89		$	5		$	—		$	107		$	—		$	49		$	913		$	1,163
Special mention			—			—			—			—			—			—			—			—
Substandard			—			—			—			—			—			—			—			—
Doubtful			—			—			—			—			—			—			—			—
Total		$	89		$	5		$	—		$	107		$	—		$	49		$	913		$	1,163
Gross charge-offs		$	—			—			—			—			—			—			23		$	23

Total loans
Pass		$	177,418		$	188,933		$	3,172,041		$	1,359,155		$	686,415		$	856,104		$	1,192,957		$	7,633,023
Special mention			690			3,400			11,067			72,476			26,538			14,023			8,112			136,306
Substandard			2,593			12,931			13,259			422			19,091			119,640			4,128			172,064
Doubtful			—			—			—			—			—			—			—			—
Total		$	180,701		$	205,264		$	3,196,367		$	1,432,053		$	732,044		$	989,767		$	1,205,197		$	7,941,393
Gross charge-offs		$	572			622			1,310			795			3,437			6,151			5,527		$	18,414