LOANS HELD FOR INVESTMENT, NET (Tables)

9 Months Ended

Sep. 30, 2021

LOANS HELD FOR INVESTMENT, NET

Loan Categories

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

(In thousands)	September 30, 2021		December 31, 2020
One-to-four family residential and cooperative/condominium apartment	$	683,665	$	184,989
Multifamily residential and residential mixed-use		3,468,262		2,758,743
Commercial real estate ("CRE")		3,814,437		1,878,167
Acquisition, development, and construction ("ADC")		285,379		156,296
Total real estate loans		8,251,743		4,978,195
Commercial and industrial ("C&I")		1,012,415		641,533
Other loans		20,713		2,316
Total		9,284,871		5,622,044
Allowance for credit losses		(81,255)		(41,461)
Loans held for investment, net	$	9,203,616	$	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 September 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	$	5,522	$	10,285	$	41,201	$	5,158	$	62,166	$	30,095	$	499	$	92,760
Provision (credit) for credit losses		583		(1,998)		(8,649)		(139)		(10,203)		1,943		946		(7,314)
Charge-offs		(1)		(58)		(2,952)		—		(3,011)		(497)		(768)		(4,276)
Recoveries		—		78		3		—		81		4		—		85
Ending balance	$	6,104	$	8,307	$	29,603	$	5,019	$	49,033	$	31,545	$	677	$	81,255

	At or for the Three Months Ended September 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	$	671	$	16,666	$	9,859	$	1,777	$	28,973	$	13,502	$	17	$	42,492
Provision (credit) for credit losses		134		3,468		2,162		274		6,038		(107)		—		5,931
Charge-offs		(6)		(13)		—		—		(19)		—		(1)		(20)
Recoveries		—		89		—		—		89		—		—		89
Ending balance	$	799	$	20,210	$	12,021	$	2,051	$	35,081	$	13,395	$	16	$	48,492

	At or for the Nine Months Ended September 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 losses		2,212		(3,361)		(4,068)		2,528		(2,689)		2,215		1,286		812
Charge-offs		(20)		(467)		(3,365)		—		(3,852)		(4,959)		(773)		(9,584)
Recoveries		—		81		4		—		85		113		3		201
Ending balance	$	6,104	$	8,307	$	29,603	$	5,019	$	49,033	$	31,545	$	677	$	81,255

	At or for the Nine Months Ended September 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		540		10,010		8,127		807		19,484		518		1		20,003
Charge-offs		(10)		(45)		(6)		—		(61)		—		(1)		(62)
Recoveries		—		103		—		—		103		7		—		110
Ending balance	$	799	$	20,210	$	12,021	$	2,051	$	35,081	$	13,395	$	16	$	48,492

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

		September 30, 2021
		Non-accrual with		Non-accrual with
(In thousands)		No Allowance	Allowance			Reserve
One-to-four family residential and cooperative/condominium apartment	$	-	$	4,938	$	781
Multifamily residential and residential mixed-use		859		-		-
CRE		1,240		2,882		812
C&I		-		23,727		11,191
Other		-		374		371
Total	$	2,099	$	31,921	$	13,155

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 periods indicated:

	Three Months Ended				Nine Months Ended
	September 30, 2020				September 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	$	—	$	—	$	10	$	4
Multifamily residential and residential mixed-use		1,295		—		416		7
Commercial real estate and commercial mixed-use		1,525		—		2,688		54
Total with no related allowance recorded		2,820		—		3,114		65
With an allowance recorded:
C&I		10,232		—		7,500		153
Total	$	13,052	$	—	$	10,614	$	218

(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 as of the dates indicated:

	September 30, 2021
					Loans 90
					Days or
	30 to 59		60 to 89		More Past Due
	Days		Days		and Still				Total				Total
(In thousands)	Past Due		Past Due		Accruing Interest		Non-accrual		Past Due		Current		Loans
Real estate:
One-to-four family residential, including condominium and cooperative apartment	$	3,135	$	1,245	$	5,021	$	4,938	$	14,339	$	669,326	$	683,665
Multifamily residential and residential mixed-use		10,251		2,738		—		859		13,848		3,454,414		3,468,262
CRE		8,360		1,069		1,004		4,122		14,555		3,799,882		3,814,437
ADC		17,700		—		—		—		17,700		267,679		285,379
Total real estate		39,446		5,052		6,025		9,919		60,442		8,191,301		8,251,743
C&I		10,962		2,455		257		23,727		37,401		975,014		1,012,415
Other		730		2		—		374		1,106		19,607		20,713
Total	$	51,138	$	7,509	$	6,282	$	34,020	$	98,949	$	9,185,922	$	9,284,871

	December 31, 2020
					Loans 90
					Days or
	30 to 59		60 to 89		More Past Due
	Days		Days		and Still				Total				Total
(In thousands)	Past Due		Past Due		Accruing Interest		Non-accrual		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

Schedule of loans by class modified as trouble debt restructurings

	Modifications During the Nine Months Ended September 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
Commercial real estate ("CRE")	1		10,000		10,000
Commercial and industrial ("C&I")	1		456		488
Total	3	$	10,506	$	10,538

Loans Approved for Deferral

	September 30, 2021
	Number
	of Loans	Balance(1)		% of Portfolio
(Dollars in thousands)
One-to-four family residential and cooperative/condominium apartment	10	$	9,255	1.4	%
CRE	1		3,487	0.1
C&I	6		13,861	1.4
Total	17	$	26,603	0.3

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

Credit Risk Profile of the Real Estate Loans

	September 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	$	104,830	$	93,315	$	86,214	$	79,981	$	84,075	$	143,807	$	52,483	$	11,162	$	655,867
Special mention		—		—		337		756		345		2,168		846		1,089		5,541
Substandard		—		1,461		2,048		862		2,206		14,691		—		966		22,234
Doubtful		—		—		—		23		—		—		—		—		23
Total one-to-four family residential, and condominium/cooperative apartment		104,830		94,776		88,599		81,622		86,626		160,666		53,329		13,217		683,665
Multifamily residential and residential mixed-use:
Pass		426,164		347,900		493,077		193,738		373,965		1,329,688		5,111		825		3,170,468
Special mention		—		12,550		14,551		—		11,842		22,378		—		—		61,321
Substandard		—		—		35,886		27,265		51,680		118,179		3,463		—		236,473
Doubtful		—		—		—		—		—		—		—		—		—
Total multifamily residential and residential mixed-use		426,164		360,450		543,514		221,003		437,487		1,470,245		8,574		825		3,468,262
CRE:
Pass		636,234		872,347		578,758		331,636		337,930		863,215		39,323		5,164		3,664,607
Special mention		5,354		2,384		—		4,191		11,109		15,416		—		—		38,454
Substandard		2,335		1,752		7,110		39,892		19,733		40,448		—		—		111,270
Doubtful		—		—		106		—		—		—		—		—		106
Total CRE		643,923		876,483		585,974		375,719		368,772		919,079		39,323		5,164		3,814,437
ADC:
Pass		101,947		69,546		62,414		24,587		8,120		807		2,686		600		270,707
Special mention		—		—		—		1,078		—		—		—		—		1,078
Substandard		—		—		—		13,500		—		94		—		—		13,594
Doubtful		—		—		—		—		—		—		—		—		—
Total ADC		101,947		69,546		62,414		39,165		8,120		901		2,686		600		285,379
C&I:
Pass		52,667		199,677		58,835		54,190		38,065		25,948		479,111		10,359		918,852
Special mention		—		1,690		265		2,260		611		61		1,685		1,368		7,940
Substandard		—		5,949		4,842		6,175		2,982		1,057		34,996		6,764		62,765
Doubtful		—		—		10,087		752		11,989		30		—		—		22,858
Total C&I		52,667		207,316		74,029		63,377		53,647		27,096		515,792		18,491		1,012,415
Total:
Pass		1,321,842		1,582,785		1,279,298		684,132		842,155		2,363,465		578,714		28,110		8,680,501
Special mention		5,354		16,624		15,153		8,285		23,907		40,023		2,531		2,457		114,334
Substandard		2,335		9,162		49,886		87,694		76,601		174,469		38,459		7,730		446,336
Doubtful		—		—		10,193		775		11,989		30		—		—		22,987
Total Loans	$	1,329,531	$	1,608,571	$	1,354,530	$	780,886	$	954,652	$	2,577,987	$	619,704	$	38,297	$	9,264,158

	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)	September 30, 2021		December 31, 2020
Performing	$	20,339	$	2,315
Non-accrual		374		1
Total	$	20,713	$	2,316