LOANS HELD FOR INVESTMENT, NET (Tables)

6 Months Ended

Jun. 30, 2021

LOANS HELD FOR INVESTMENT, NET

Loan Categories

The following table presents the loan categories for the period ended as indicated:

(In thousands)	June 30, 2021		December 31, 2020
One-to-four family residential and cooperative/condominium apartment	$	704,489	$	184,989
Multifamily residential and residential mixed-use		3,503,205		2,758,743
Commercial real estate ("CRE")		3,681,331		1,878,167
Acquisition, development, and construction ("ADC")		290,462		156,296
Total real estate loans		8,179,487		4,978,195
Commercial and industrial ("C&I")		1,343,869		641,533
Other loans		23,275		2,316
Total		9,546,631		5,622,044
Allowance for credit losses		(92,760)		(41,461)
Loans held for investment, net	$	9,453,871	$	5,580,583

Activity in Allowance for Loan Losses

The following tables present data regarding the allowance for credit losses activity for the periods indicated:

	At or for the Three Months Ended June 30, 2021
	Real Estate Loans
	One-to-Four
	Family		Multifamily
	Residential and		Residential
	Cooperative/		and
	Condominium		Residential						Total Real				Other
(In thousands)	Apartment		Mixed-Use		CRE		ADC		Estate		C&I		Loans		Total
Allowance for credit losses:
Beginning balance	$	5,133	$	10,421	$	44,837	$	3,899	$	64,290	$	33,378	$	532	$	98,200
Provision (credit) for credit losses		394		34		(3,232)		1,259		(1,545)		(2,947)		(31)		(4,523)
Charge-offs		(5)		(173)		(405)		—		(583)		(445)		(5)		(1,033)
Recoveries		—		3		1		—		4		109		3		116
Ending balance	$	5,522	$	10,285	$	41,201	$	5,158	$	62,166	$	30,095	$	499	$	92,760

	At or for the Three Months Ended June 30, 2020
	Real Estate Loans
	One-to-Four
	Family		Multifamily
	Residential and		Residential
	Cooperative/		and
	Condominium		Residential						Total Real				Other
(In thousands)	Apartment		Mixed-Use		CRE		ADC		Estate		C&I		Loans		Total
Allowance for credit losses:
Beginning balance	$	645	$	14,283	$	6,336	$	1,671	$	22,935	$	13,513	$	15	$	36,463
Provision (credit) for credit losses		30		2,415		3,523		106		6,074		(16)		2		6,060
Charge-offs		(4)		(32)		—		—		(36)		—		—		(36)
Recoveries		—		—		—		—		—		5		—		5
Ending balance	$	671	$	16,666	$	9,859	$	1,777	$	28,973	$	13,502	$	17	$	42,492

	At or for the Six Months Ended June 30, 2021
	Real Estate Loans
	One-to-Four
	Family		Multifamily
	Residential and		Residential
	Cooperative/		and
	Condominium		Residential						Total Real				Other
	Apartment		Mixed-Use		CRE		ADC		Estate		C&I		Loans		Total
Allowance for credit losses:
Beginning balance, prior to the adoption of CECL	$	644	$	17,016	$	9,059	$	1,993	$	28,712	$	12,737	$	12	$	41,461
Impact of adopting CECL		1,048		(8,254)		4,849		381		(1,976)		(1,935)		(8)		(3,919)
Adjusted beginning balance as of January 1, 2021		1,692		8,762		13,908		2,374		26,736		10,802		4		37,542
PCD Day 1		2,220		3,292		23,124		117		28,753		23,374		157		52,284
Provision (credit) for credit loss expense		1,629		(1,363)		4,581		2,667		7,514		272		340		8,126
Charge-offs		(19)		(409)		(413)		—		(841)		(4,462)		(5)		(5,308)
Recoveries		—		3		1		—		4		109		3		116
Ending balance	$	5,522	$	10,285	$	41,201	$	5,158	$	62,166	$	30,095	$	499	$	92,760

	At or for the Six Months Ended June 30, 2020
	Real Estate Loans
	One-to-Four
	Family		Multifamily
	Residential and		Residential
	Cooperative/		and
	Condominium		Residential						Total Real				Other
	Apartment		Mixed-Use		CRE		ADC		Estate		C&I		Loans		Total
Allowance for credit losses:
Beginning balance	$	269	$	10,142	$	3,900	$	1,244	$	15,555	$	12,870	$	16	$	28,441
Provision for credit losses		406		6,542		5,965		533		13,446		625		1		14,072
Charge-offs		(4)		(32)		(6)		—		(42)		—		—		(42)
Recoveries		—		14		—		—		14		7		—		21
Ending balance	$	671	$	16,666	$	9,859	$	1,777	$	28,973	$	13,502	$	17	$	42,492

The following table presents the amortized cost basis of loans on non-accrual status as of the period indicated:

		June 30, 2021
		Non-accrual with		Non-accrual with
(In thousands)		No Allowance	Allowance			Reserve
One-to-four family residential and cooperative/condominium apartment	$	-	$	4,933	$	665
Multifamily residential and residential mixed-use		-		-		-
CRE		35		9,117		2,663
ADC		-		-		-
C&I		-		14,109		7,096
Other		-		92		58
Total	$	35	$	28,251	$	10,482

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method, prior to the adoption of ASC 326, as of the dates indicated:

	December 31, 2020
	Real Estate Loans
	One-to-Four
	Family		Multifamily
	Residential and		Residential
	Cooperative/		and
	Condominium		Residential						Total Real				Other
(In thousands)	Apartment		Mixed-Use		CRE		ADC		Estate		C&I		Loans		Total
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	6,474	$	—	$	6,474
Collectively evaluated for impairment		644		17,016		9,059		1,993		28,712		6,263		12		34,987
Total ending allowance balance	$	644	$	17,016	$	9,059	$	1,993	$	28,712	$	12,737	$	12	$	41,461
Loans:
Individually evaluated for impairment	$	—	$	1,863	$	2,704	$	—	$	4,567	$	12,502	$	—	$	17,069
Collectively evaluated for impairment		184,989		2,756,880		1,875,463		156,296		4,973,628		629,031		2,316		5,604,975
Total ending loans balance	$	184,989	$	2,758,743	$	1,878,167	$	156,296	$	4,978,195	$	641,533	$	2,316	$	5,622,044

Impaired Real Estate Loans

The following tables summarize impaired loans with no related allowance recorded and with related allowance recorded as of the periods indicated (by collateral type within the real estate loan segment):

	December 31, 2020
	Unpaid
	Principal		Recorded		Related
(In thousands)	Balance		Investment(1)		Allowance
With no related allowance recorded:
Multifamily residential and residential mixed-use	$	1,863	$	1,863	$	—
CRE		2,704		2,704		—
Total with no related allowance recorded		4,567		4,567		—
With an allowance recorded:
C&I		12,502		12,502		6,474
Total with an allowance recorded		12,502		12,502		6,474
Total	$	17,069	$	17,069	$	6,474

(1) The recorded investment excludes net deferred costs due to immateriality.

The following table presents information for impaired loans for the period indicated:

	Three Months Ended				Six Months Ended
	June 30, 2020				June 30, 2020
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment(1)		Recognized(2)		Investment(1)		Recognized(2)
With no related allowance recorded:
One-to-four family residential, including condominium and cooperative apartment	$	2,948	$	—	$	11	$	—
Multifamily residential and residential mixed-use		1,355		—		608		9
Commercial real estate and commercial mixed-use		1,529		—		6,789		91
Total with no related allowance recorded		5,832		—		7,408		100
With an allowance recorded:
C&I		10,129		—		116		—
Total	$	15,961	$	—	$	7,524	$	100

(1) The recorded investment excludes net deferred costs due to immateriality.

(2) Cash basis interest and interest income recognized on accrual basis approximate each other.

Past Due Financing Receivables

The following tables summarize the past due status of the Company’s investment in loans (net deferred costs are excluded from delinquency loan balances) as of the dates indicated:

	June 30, 2021
					Loans 90
					Days or
	30 to 59		60 to 89		More Past Due
	Days		Days		and Still		Non-		Total				Total
(In thousands)	Past Due		Past Due		Accruing Interest		accrual (1)		Past Due		Current		Loans
Real estate:
One-to-four family residential, including condominium and cooperative apartment	$	3,852	$	4,124	$	5,066	$	4,933	$	17,975	$	686,514	$	704,489
Multifamily residential and residential mixed-use		110,712		3,267		157		—		114,136		3,389,069		3,503,205
CRE		32,638		2,928		—		9,152		44,718		3,636,613		3,681,331
ADC		—		—		—		—		—		290,462		290,462
Total real estate		147,202		10,319		5,223		14,085		176,829		8,002,658		8,179,487
C&I		506		472		1,487		14,109		16,574		1,327,295		1,343,869
Other		8		—		—		92		100		23,175		23,275
Total	$	147,716	$	10,791	$	6,710	$	28,286	$	193,503	$	9,353,128	$	9,546,631

(1) Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of June 30, 2021.

	December 31, 2020
					Loans 90
					Days or
	30 to 59		60 to 89		More Past Due
	Days		Days		and Still		Non-		Total				Total
(In thousands)	Past Due		Past Due		Accruing Interest		accrual (1)		Past Due		Current		Loans
Real estate:
One-to-four family residential, including condominium and cooperative apartment	$	—	$	—	$	44	$	858	$	902	$	184,087	$	184,989
Multifamily residential and residential mixed-use		—		—		437		1,863		2,300		2,756,443		2,758,743
CRE		15,351		—		—		2,704		18,055		1,860,112		1,878,167
ADC		—		—		—		—		—		156,296		156,296
Total real estate		15,351		—		481		5,425		21,257		4,956,938		4,978,195
C&I		—		917		2,848		12,502		16,267		625,266		641,533
Other		8		1		—		1		10		2,306		2,316
Total	$	15,359	$	918	$	3,329	$	17,928	$	37,534	$	5,584,510	$	5,622,044

(1) Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of December 31, 2020.

Schedule of loans by class modified as trouble debt restructurings

	Modifications During the Six Months Ended June 30, 2021
			Pre-		Post-
			Modification		Modification
			Outstanding		Outstanding
	Number of		Recorded		Recorded
(Dollars in thousands)	Loans		Investment		Investment
One-to-four family residential and cooperative/condominium apartment	1	$	50	$	50
Multifamily residential and residential mixed-use	-		-		-
Commercial real estate ("CRE")	-		-		-
Acquisition, development, and construction ("ADC")	-		-		-
Commercial and industrial ("C&I")	1		456		456
Other loans	-		-		-
Total	2	$	506	$	506

Loans Approved for Deferral

	June 30, 2021
	Number
	of Loans	Balance(1)		% of Portfolio
(Dollars in thousands)
One-to-four family residential and cooperative/condominium apartment	13	$	12,658	1.8	%
Multifamily residential and residential mixed-use	—		—	—
CRE	3		18,343	0.5
ADC	—		—	—
C&I	9		13,460	1.0
Total	25	$	44,461	0.5

(1) Amount excludes net deferred costs due to immateriality.

Credit Risk Profile of the Real Estate Loans

	June 30, 2021
(In thousands)	2021		2020		2019		2018		2017		2016 and Prior		Revolving		Revolving-Term		Total
One-to-four family residential, and condominium/cooperative apartment:
Pass	$	86,022	$	100,125	$	90,239	$	91,137	$	89,074	$	160,866	$	55,128	$	11,691	$	684,282
Special mention		—		—		379		915		355		5,299		847		1,098		8,893
Substandard		—		—		1,083		589		742		7,887		—		1,013		11,314
Doubtful		—		—		—		—		—		—		—		—		—
Total one-to-four family residential, and condominium/cooperative apartment		86,022		100,125		91,701		92,641		90,171		174,052		55,975		13,802		704,489
Multifamily residential and residential mixed-use:
Pass		234,199		362,014		516,988		226,705		407,607		1,529,746		5,339		—		3,282,598
Special mention		—		—		—		—		18,329		14,244		—		—		32,573
Substandard		—		—		35,421		27,250		29,323		92,612		3,428		—		188,034
Doubtful		—		—		—		—		—		—		—		—		—
Total multifamily residential and residential mixed-use		234,199		362,014		552,409		253,955		455,259		1,636,602		8,767		—		3,503,205
CRE:
Pass		410,562		865,541		590,972		351,435		365,870		912,770		39,993		4,986		3,542,129
Special mention		—		4,229		1,673		4,851		11,190		11,444		—		—		33,387
Substandard		—		1,046		5,502		42,437		23,532		33,298		—		—		105,815
Doubtful		—		—		—		—		—		—		—		—		—
Total CRE		410,562		870,816		598,147		398,723		400,592		957,512		39,993		4,986		3,681,331
ADC:
Pass		61,748		60,895		81,000		43,906		8,807		1,279		17,538		613		275,786
Special mention		—		—		—		1,078		—		—		—		—		1,078
Substandard		—		—		—		13,500		—		98		—		—		13,598
Doubtful		—		—		—		—		—		—		—		—		—
Total ADC		61,748		60,895		81,000		58,484		8,807		1,377		17,538		613		290,462
C&I:
Pass		41,557		549,694		63,141		60,724		40,088		29,378		466,245		7,067		1,257,894
Special mention		—		3,515		291		2,241		643		116		6,127		2,637		15,570
Substandard		—		4,557		14,419		6,698		3,185		1,171		22,780		4,585		57,395
Doubtful		—		—		197		752		11,929		132		—		—		13,010
Total C&I		41,557		557,766		78,048		70,415		55,845		30,797		495,152		14,289		1,343,869
Total:
Pass		834,088		1,938,269		1,342,340		773,907		911,446		2,634,039		584,243		24,357		9,042,689
Special mention		—		7,744		2,343		9,085		30,517		31,103		6,974		3,735		91,501
Substandard		—		5,603		56,425		90,474		56,782		135,066		26,208		5,598		376,156
Doubtful		—		—		197		752		11,929		132		—		—		13,010
Total Loans	$	834,088	$	1,951,616	$	1,401,305	$	874,218	$	1,010,674	$	2,800,340	$	617,425	$	33,690	$	9,523,356

	December 31, 2020
			Special
(In thousands)	Pass		Mention		Substandard		Doubtful		Total
Real Estate:
One-to-four family residential and condominium/cooperative apartment	$	183,293	$	—	$	1,696	$	—	$	184,989
Multifamily residential and residential mixed-use		2,523,258		56,400		179,085		—		2,758,743
CRE		1,831,712		13,861		32,594		—		1,878,167
ADC		142,796		13,500		—		—		156,296
Total real estate		4,681,059		83,761		213,375		—		4,978,195
C&I		613,691		2,131		13,315		12,396		641,533
Total Real Estate and C&I	$	5,294,750	$	85,892	$	226,690	$	12,396	$	5,619,728

(In thousands)	June 30, 2021		December 31, 2020
Performing	$	23,183	$	2,315
Non-accrual		92		1
Total	$	23,275	$	2,316