LOANS HELD FOR INVESTMENT, NET (Tables)

6 Months Ended

Jun. 30, 2023

LOANS HELD FOR INVESTMENT, NET

Loan Categories

(In thousands)	June 30, 2023		December 31, 2022
Business loans (1)	$	2,250,108	$	2,211,857
One-to-four family residential and cooperative/condominium apartment		855,980		773,321
Multifamily residential and residential mixed-use		4,132,358		4,026,826
Non-owner-occupied commercial real estate		3,406,232		3,317,485
Acquisition, development, and construction ("ADC")		225,580		229,663
Other loans		6,157		7,679
Total		10,876,415		10,566,831
Allowance for credit losses		(75,646)		(83,507)
Loans held for investment, net	$	10,800,769	$	10,483,324

⁽¹⁾ Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.

Activity in Allowance for Loan Losses

	At or for the Three Months Ended June 30, 2023
			One-to-Four
			Family		Multifamily
			Residential and		Residential
			Cooperative/		and		Non-Owner-Occupied
			Condominium		Residential		Commercial				Other
(In thousands)	Business Loans		Apartment		Mixed-Use		Real Estate		ADC		Loans		Total
Allowance for credit losses:
Beginning balance	$	43,879	$	6,012	$	7,613	$	18,076	$	2,515	$	240	$	78,335
(Credit) provision for credit losses		(542)		421		577		364		43		127		990
Charge-offs		(3,745)		(14)		—		—		—		(33)		(3,792)
Recoveries		108		—		—		—		—		5		113
Ending balance	$	39,700	$	6,419	$	8,190	$	18,440	$	2,558	$	339	$	75,646

	At or for the Three Months Ended June 30, 2022
			One-to-Four
			Family		Multifamily
			Residential and		Residential
			Cooperative/		and		Non-Owner-Occupied
			Condominium		Residential		Commercial				Other
(In thousands)	Business Loans		Apartment		Mixed-Use		Real Estate		ADC		Loans		Total
Allowance for credit losses:
Beginning balance	$	43,728	$	4,528	$	7,061	$	19,180	$	4,758	$	360	$	79,615
(Credit) provision for credit losses		2,009		(14)		(58)		(527)		(970)		(74)		366
Charge-offs		(645)		—		—		—		—		—		(645)
Recoveries		36		—		—		54		—		—		90
Ending balance	$	45,128	$	4,514	$	7,003	$	18,707	$	3,788	$	286	$	79,426

	At or for the Six Months Ended June 30, 2023
			One-to-Four
			Family		Multifamily
			Residential and		Residential
			Cooperative/		and		Non-Owner-Occupied
			Condominium		Residential		Commercial				Other
(In thousands)	Business Loans		Apartment		Mixed-Use		Real Estate		ADC		Loans		Total
Allowance for credit losses:
Beginning balance	$	47,029	$	5,969	$	8,360	$	20,153	$	1,723	$	273	$	83,507
Provision (recovery) for credit losses		(2,150)		464		(170)		(1,713)		835		93		(2,641)
Charge-offs		(5,774)		(14)		—		—		—		(34)		(5,822)
Recoveries		595		—		—		—		—		7		602
Ending balance	$	39,700	$	6,419	$	8,190	$	18,440	$	2,558	$	339	$	75,646

	At or for the Six Months Ended June 30, 2022
			One-to-Four
			Family		Multifamily
			Residential and		Residential
			Cooperative/		and		Non-Owner-Occupied
			Condominium		Residential		Commercial				Other
(In thousands)	Business Loans		Apartment		Mixed-Use		Real Estate		ADC		Loans		Total
Allowance for credit losses:
Beginning balance	$	62,366	$	5,932	$	7,816	$	2,131	$	4,857	$	751	$	83,853
(Recovery) provision for credit losses		(14,045)		(1,418)		(815)		16,522		(1,069)		(463)		(1,288)
Charge-offs		(3,280)		—		—		—		—		(3)		(3,283)
Recoveries		87		—		2		54		—		1		144
Ending balance	$	45,128	$	4,514	$	7,003	$	18,707	$	3,788	$	286	$	79,426

Financing Receivable, Nonaccrual

		June 30, 2023
		Non-accrual with		Non-accrual with
(In thousands)		No Allowance	Allowance			Reserve
Business loans	$	5,636	$	17,834	$	16,131
One-to-four family residential and cooperative/condominium apartment		—		3,305		149
Multifamily residential and residential mixed-use		—		—		—
Non-owner-occupied commercial real estate		—		15		15
Acquisition, development, and construction		—		657		305
Other loans		—		220		220
Total	$	5,636	$	22,031	$	16,820

		December 31, 2022
		Non-accrual with		Non-accrual with
(In thousands)		No Allowance	Allowance			Reserve
Business loans	$	5,403	$	22,384	$	20,812
One-to-four family residential and cooperative/condominium apartment		—		3,203		181
Multifamily residential and residential mixed-use		—		—		—
Non-owner-occupied commercial real estate		15		2,476		1,297
Acquisition, development, and construction		657		—		—
Other loans		—		99		99
Total	$	6,075	$	28,162	$	22,389

Past Due Financing Receivables

The following tables summarize the past due status of the Company’s investment in loans as of the dates indicated:

	June 30, 2023
					Loans 90
					Days or				Total
	30 to 59		60 to 89		More Past Due				Past Due
	Days		Days		and Still				and				Total
(In thousands)	Past Due		Past Due		Accruing Interest		Non-accrual		Non-accrual		Current		Loans
Business loans	$	4,616	$	6,963	$	—	$	23,470	$	35,049	$	2,215,059	$	2,250,108
One-to-four family residential, including condominium and cooperative apartment		1,409		1,178		—		3,305		5,892		850,088		855,980
Multifamily residential and residential mixed-use		6,465		—		—		—		6,465		4,125,893		4,132,358
Non-owner-occupied commercial real estate		3,834		—		—		15		3,849		3,402,383		3,406,232
Acquisition, development, and construction		—		—		—		657		657		224,923		225,580
Other		65		1		—		220		286		5,871		6,157
Total	$	16,389	$	8,142	$	—	$	27,667	$	52,198	$	10,824,217	$	10,876,415

	December 31, 2022
					Loans 90
					Days or				Total
	30 to 59		60 to 89		More Past Due				Past Due
	Days		Days		and Still				and				Total
(In thousands)	Past Due		Past Due		Accruing Interest		Non-accrual		Non-accrual		Current		Loans
Business loans	$	5,861	$	741	$	—	$	27,787	$	34,389	$	2,177,468	$	2,211,857
One-to-four family residential, including condominium and cooperative apartment		686		—		—		3,203		3,889		769,432		773,321
Multifamily residential and residential mixed-use		4,817		—		—		—		4,817		4,022,009		4,026,826
Non-owner-occupied commercial real estate		11,889		—		—		2,491		14,380		3,303,105		3,317,485
Acquisition, development, and construction		—		—		—		657		657		229,006		229,663
Other		264		1		—		99		364		7,315		7,679
Total	$	23,517	$	742	$	—	$	34,237	$	58,496	$	10,508,335	$	10,566,831

Schedule of collateral dependent loans

	June 30, 2023				December 31, 2022
	Real Estate		Associated Allowance		Real Estate		Associated Allowance
(In thousands)	Collateral Dependent		for Credit Losses		Collateral Dependent		for Credit Losses
Business loans	$	5,597	$	—	$	5,849	$	—
One-to-four family residential, including condominium and cooperative apartment		—		—		—		—
Multifamily residential and residential mixed-use		—		—		—		—
Non-owner-occupied commercial real estate		—		—		2,491		1,297
Acquisition, development, and construction		657		305		657		—
Other		—		—		—		—
Total	$	6,254	$	305	$	8,997	$	1,297

Schedule of amortized cost basis of loans modified to borrowers

	For the Three Months Ended June 30, 2023
			Significant		Term Extension		Significant Payment Delay				% of Total Class
	Term		Payment		and Significant		and Interest				of Financing
(Dollars in thousands)	Extension		Delay		Payment Delay		Rate Reduction		Total		Receivable
Business loans	$	132	$	—	$	472	$	276	$	880	0.0
One-to-four family residential, including condominium and cooperative apartment		—		—		—		—		—	0.0
Multifamily residential and residential mixed-use		—		—		—		—		—	0.0
Non-owner-occupied commercial real estate		—		—		—		—		—	0.0
Acquisition, development, and construction		—		—		—		—		—	0.0
Other		—		—		—		—		—	0.0
Total	$	132	$	—	$	472	$	276	$	880	0.0	%
	For the Six Months Ended June 30, 2023
			Significant		Term Extension		Significant Payment Delay				% of Total Class
	Term		Payment		and Significant		and Interest				of Financing
(Dollars in thousands)	Extension		Delay		Payment Delay		Rate Reduction		Total		Receivable
Business loans	$	132	$	—	$	472	$	276	$	880	0.0	%
One-to-four family residential, including condominium and cooperative apartment		—		2,852		—		—		2,852	0.3
Multifamily residential and residential mixed-use		—		—		—		—		—	0.0
Non-owner-occupied commercial real estate		—		—		—		—		—	0.0
Acquisition, development, and construction		—		—		—		—		—	0.0
Other		—		—		—		—		—	0.0
Total	$	132	$	2,852	$	472	$	276	$	3,732	0.0	%

Schedule of financial effect of loans modified to borrowers

The following tables describes the financial effect of the modifications made to borrowers experiencing financial difficulty:

	For the Three Months Ended June 30, 2023
					Weighted Average
	Weighted Average		Weighted Average		Payment Delay
	Interest Rate		Months of		or Principal
(Dollars in thousands)	Reductions		Term Extensions		Forgiveness
Business loans	4.25	%	$	16	$	11
One-to-four family residential, including condominium and cooperative apartment	—			—		—
Multifamily residential and residential mixed-use	—			—		—
Non-owner-occupied commercial real estate	—			—		—
Acquisition, development, and construction	—			—		—
Other loans	—			—		—
Total	4.25	%	$	16	$	11

	For the Six Months Ended June 30, 2023
					Weighted Average
	Weighted Average		Weighted Average		Payment Delay
	Interest Rate		Months of		or Principal
(Dollars in thousands)	Reductions		Term Extensions		Forgiveness
Business loans	4.25	%	$	21	$	17
One-to-four family residential, including condominium and cooperative apartment	—			—		72
Multifamily residential and residential mixed-use	—			—		—
Non-owner-occupied commercial real estate	—			—		—
Acquisition, development, and construction	—			—		—
Other loans	—			—		—
Total	4.25	%	$	21	$	89

Schedule of performance of loans that have been modified

	June 30, 2023
			30-59		60-89		90+
(Dollars in thousands)	Current		Days Past Due		Days Past Due		Days Past Due		Non-Accrual		Total
Business loans	$	—	$	—	$	—	$	—	$	880	$	880
One-to-four family residential, including condominium and cooperative apartment		2,852		—		—		—		—		2,852
Multifamily residential and residential mixed-use		—		—		—		—		—		—
Non-owner-occupied commercial real estate		—		—		—		—		—		—
Acquisition, development, and construction		—		—		—		—		—		—
Other loans		—		—		—		—		—		—
Total	$	2,852	$	—	$	—	$	—	$	880	$	3,732

Schedule of loans by class modified as trouble debt restructurings

	Modifications During the Year Ended December 31, 2022
			Pre-		Post-
			Modification		Modification
	Number		Outstanding		Outstanding
	of		Recorded		Recorded
(Dollars in thousands)	Loans		Investment		Investment
Business loans	7	$	21,934	$	21,938
One-to-four family residential, including condominium and cooperative apartment	2		762		762
Multifamily residential and residential mixed-use	—		—		—
Non-owner-occupied commercial real estate	1		991		991
Acquisition, development, and construction	1		13,500		13,500
Other	1		276		276
Total	12	$	37,463	$	37,467

Credit Risk Profile of the Real Estate Loans

	June 30, 2023
(In thousands)	2023		2022		2021		2020		2019		2018 and Prior		Revolving		Revolving-Term		Total
Business loans
Pass	$	149,897	$	443,880	$	216,423	$	175,305	$	160,702	$	325,188	$	626,364	$	42,465	$	2,140,224
Special mention		528		3,284		1,316		1,430		1,317		13,447		10,849		8,946		41,117
Substandard		52		898		396		8,339		3,593		30,410		8,637		7,303		59,628
Doubtful		—		—		—		—		8,332		807		—		—		9,139
Total business loans		150,477		448,062		218,135		185,074		173,944		369,852		645,850		58,714		2,250,108
YTD Gross Charge-Offs		—		—		—		38		—		1,991		434		3,311		5,774
One-to-four family residential, and condominium/cooperative apartment:
Pass		112,062		221,019		104,481		71,297		64,080		219,848		33,626		13,387		839,800
Special mention		—		—		—		—		—		761		159		715		1,635
Substandard		—		—		—		1,015		1,219		11,518		—		793		14,545
Doubtful		—		—		—		—		—		—		—		—		—
Total one-to-four family residential, and condominium/cooperative apartment		112,062		221,019		104,481		72,312		65,299		232,127		33,785		14,895		855,980
YTD Gross Charge-Offs		—		—		—		—		—		—		—		14		14
Multifamily residential and residential mixed-use:
Pass		209,997		1,372,631		593,917		292,798		395,000		1,128,010		12,229		4,465		4,009,047
Special mention		—		—		4,246		18,194		14,088		30,723		—		—		67,251
Substandard		—		—		—		10,711		—		45,349		—		—		56,060
Doubtful		—		—		—		—		—		—		—		—		—
Total multifamily residential and residential mixed-use		209,997		1,372,631		598,163		321,703		409,088		1,204,082		12,229		4,465		4,132,358
YTD Gross Charge-Offs		—		—		—		—		—		—		—		—		—
Non-owner-occupied commercial real estate
Pass		193,516		730,726		665,019		480,519		361,052		824,040		11,632		8,040		3,274,544
Special mention		—		—		—		78,319		4,608		9,676		—		—		92,603
Substandard		—		—		15		25,756		6,343		6,971		—		—		39,085
Doubtful		—		—		—		—		—		—		—		—		—
Total non-owner-occupied commercial real estate		193,516		730,726		665,034		584,594		372,003		840,687		11,632		8,040		3,406,232
YTD Gross Charge-Offs		—		—		—		—		—		—		—		—		—
Acquisition, development, and construction
Pass		—		46,952		134,396		7,647		15,718		552		19,408		250		224,923
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		657		—		—		—		—		—		657
Doubtful		—		—		—		—		—		—		—		—		—
Total acquisition, development, and construction		—		46,952		135,053		7,647		15,718		552		19,408		250		225,580
YTD Gross Charge-Offs		—		—		—		—		—		—		—		—		—
Total:
Pass		665,472		2,815,208		1,714,236		1,027,566		996,552		2,497,638		703,259		68,607		10,488,538
Special mention		528		3,284		5,562		97,943		20,013		54,607		11,008		9,661		202,606
Substandard		52		898		1,068		45,821		11,155		94,248		8,637		8,096		169,975
Doubtful		—		—		—		—		8,332		807		—		—		9,139
Total Loans	$	666,052	$	2,819,390	$	1,720,866	$	1,171,330	$	1,036,052	$	2,647,300	$	722,904	$	86,364	$	10,870,258
YTD Gross Charge-Offs	$	—	$	—	$	—	$	38	$	—	$	1,991	$	434	$	3,325	$	5,788

	December 31, 2022
(In thousands)	2022		2021		2020		2019		2018		2017 and Prior		Revolving		Revolving-Term		Total
Business loans
Pass	$	449,699	$	228,143	$	187,522	$	173,527	$	130,576	$	240,131	$	650,960	$	43,552	$	2,104,110
Special mention		6,634		-		894		1,529		15,893		4,213		9,062		478		38,703
Substandard		5,242		1,380		8,843		4,706		2,101		14,938		11,290		9,412		57,912
Doubtful		—		—		—		8,332		752		2,048		—		—		11,132
Total business loans		461,575		229,523		197,259		188,094		149,322		261,330		671,312		53,442		2,211,857
YTD Gross Charge-Offs		—		477		4,720		2,088		—		2,414		1,460		242		11,401
One-to-four family residential, and condominium/cooperative apartment:
Pass		225,031		108,185		72,732		65,515		66,038		164,338		41,172		12,563		755,574
Special mention		—		—		—		—		735		1,175		579		726		3,215
Substandard		—		—		1,026		1,227		407		10,779		—		1,093		14,532
Doubtful		—		—		—		—		—		—		—		—		—
Total one-to-four family residential, and condominium/cooperative apartment		225,031		108,185		73,758		66,742		67,180		176,292		41,751		14,382		773,321
YTD Gross Charge-Offs		—		—		—		—		—		—		—		—		—
Multifamily residential and residential mixed-use:
Pass		1,386,549		582,393		316,424		395,933		127,074		1,107,281		12,584		—		3,928,238
Special mention		—		—		—		11,183		—		14,168		—		—		25,351
Substandard		—		—		12,294		7,001		20,311		33,631		—		—		73,237
Doubtful		—		—		—		—		—		—		—		—		—
Total multifamily residential and residential mixed-use		1,386,549		582,393		328,718		414,117		147,385		1,155,080		12,584		—		4,026,826
YTD Gross Charge-Offs		—		—		—		—		—		—		—		—		—
Non-owner-occupied commercial real estate
Pass		747,272		662,608		608,133		373,835		198,317		661,311		11,963		3,453		3,266,892
Special mention		—		—		19,655		4,652		—		12,108		—		—		36,415
Substandard		—		15		1,070		6,209		—		6,884		—		—		14,178
Doubtful		—		—		—		—		—		—		—		—		—
Total non-owner-occupied commercial real estate		747,272		662,623		628,858		384,696		198,317		680,303		11,963		3,453		3,317,485
YTD Gross Charge-Offs		—		—		—		—		—		—		—		—		—
Acquisition, development, and construction
Pass		36,877		152,543		11,242		15,943		—		2,087		10,033		281		229,006
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		657		—		—		—		—		—		—		657
Doubtful		—		—		—		—		—		—		—		—		—
Total acquisition, development, and construction		36,877		153,200		11,242		15,943		—		2,087		10,033		281		229,663
YTD Gross Charge-Offs		—		—		—		—		—		—		—		—		—
Total:
Pass		2,845,428		1,733,872		1,196,053		1,024,753		522,005		2,175,148		726,712		59,849		10,283,820
Special mention		6,634		—		20,549		17,364		16,628		31,664		9,641		1,204		103,684
Substandard		5,242		2,052		23,233		19,143		22,819		66,232		11,290		10,505		160,516
Doubtful		—		—		—		8,332		752		2,048		—		—		11,132
Total Loans	$	2,857,304	$	1,735,924	$	1,239,835	$	1,069,592	$	562,204	$	2,275,092	$	747,643	$	71,558	$	10,559,152
YTD Gross Charge-Offs	$	—	$	477	$	4,720	$	2,088	$	—	$	2,414	$	1,460	$	242	$	11,401

(In thousands)	June 30, 2023		December 31, 2022
Performing	$	5,937	$	7,580
Non-accrual		220		99
Total	$	6,157	$	7,679