LOANS HELD FOR INVESTMENT, NET (Tables)

9 Months Ended

Sep. 30, 2023

LOANS HELD FOR INVESTMENT, NET

Schedule of loan categories

(In thousands)	September 30, 2023		December 31, 2022
Business loans (1)	$	2,271,768	$	2,211,857
One-to-four family residential and cooperative/condominium apartment		892,869		773,321
Multifamily residential and residential mixed-use		4,102,024		4,026,826
Non-owner-occupied commercial real estate		3,374,281		3,317,485
Acquisition, development, and construction ("ADC")		203,402		229,663
Other loans		6,267		7,679
Total		10,850,611		10,566,831
Allowance for credit losses		(72,563)		(83,507)
Loans held for investment, net	$	10,778,048	$	10,483,324

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

Schedule of activity in allowance for loan losses

	At or for the Three Months Ended September 30, 2023
			One-to-Four
			Family		Multifamily
			Residential and		Residential
			Cooperative/		and		Non-Owner-Occupied
	Business		Condominium		Residential		Commercial				Other
(In thousands)	Loans		Apartment		Mixed-Use		Real Estate		ADC		Loans		Total
Allowance for credit losses:
Beginning balance	$	39,700	$	6,419	$	8,190	$	18,440	$	2,558	$	339	$	75,646
(Credit) provision for credit losses		1,822		787		(621)		(10)		(220)		23		1,781
Charge-offs		(5,147)		—		(2)		—		—		(26)		(5,175)
Recoveries		305		—		—		—		—		6		311
Ending balance	$	36,680	$	7,206	$	7,567	$	18,430	$	2,338	$	342	$	72,563

	At or for the Three Months Ended September 30, 2022
			One-to-Four
			Family		Multifamily
			Residential and		Residential
			Cooperative/		and		Non-Owner-Occupied
	Business		Condominium		Residential		Commercial				Other
(In thousands)	Loans		Apartment		Mixed-Use		Real Estate		ADC		Loans		Total
Allowance for credit losses:
Beginning balance	$	45,128	$	4,514	$	7,003	$	18,707	$	3,788	$	286	$	79,426
(Credit) provision for credit losses		3,246		544		1,051		1,800		(169)		(32)		6,440
Charge-offs		(5,462)		—		—		—		—		(49)		(5,511)
Recoveries		1,580		—		—		—		—		—		1,580
Ending balance	$	44,492	$	5,058	$	8,054	$	20,507	$	3,619	$	205	$	81,935

	At or for the Nine Months Ended September 30, 2023
	Real Estate Loans
			One-to-Four
			Family		Multifamily
			Residential and		Residential
			Cooperative/		and		Non-Owner-Occupied
	Business		Condominium		Residential		Commercial				Other
(In thousands)	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		(328)		1,251		(791)		(1,723)		615		116		(860)
Charge-offs		(10,921)		(14)		(2)		—		—		(60)		(10,997)
Recoveries		900		—		—		—		—		13		913
Ending balance	$	36,680	$	7,206	$	7,567	$	18,430	$	2,338	$	342	$	72,563

	At or for the Nine Months Ended September 30, 2022
			One-to-Four
			Family		Multifamily
			Residential and		Residential
			Cooperative/		and		Non-Owner-Occupied
	Business		Condominium		Residential		Commercial				Other
(In thousands)	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		(10,799)		(874)		236		18,322		(1,238)		(495)		5,152
Charge-offs		(8,742)		—		—		—		—		(52)		(8,794)
Recoveries		1,667		—		2		54		—		1		1,724
Ending balance	$	44,492	$	5,058	$	8,054	$	20,507	$	3,619	$	205	$	81,935

Schedule of financing receivable, nonaccrual

	September 30, 2023
	Non-accrual with			Non-accrual with
(In thousands)	No Allowance		Allowance			Reserve
Business loans	$	3,809	$	15,746	$	14,065
One-to-four family residential and cooperative/condominium apartment		—		2,874		140
Multifamily residential and residential mixed-use		—		—		—
Non-owner-occupied commercial real estate		—		15		15
Acquisition, development, and construction		—		657		305
Other loans		—		219		219
Total	$	3,809	$	19,511	$	14,744

	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

Schedule of 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, 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	$	16,693	$	1,151	$	—	$	19,555	$	37,399	$	2,234,369	$	2,271,768
One-to-four family residential, including condominium and cooperative apartment		439		2,644		—		2,874		5,957		886,912		892,869
Multifamily residential and residential mixed-use		2,976		818		—		—		3,794		4,098,230		4,102,024
Non-owner-occupied commercial real estate		2,851		6,787		—		15		9,653		3,364,628		3,374,281
Acquisition, development, and construction		—		650		—		657		1,307		202,095		203,402
Other		2		—		—		219		221		6,046		6,267
Total	$	22,961	$	12,050	$	—	$	23,320	$	58,331	$	10,792,280	$	10,850,611

	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

	September 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	$	3,771	$	—	$	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	$	4,428	$	305	$	8,997	$	1,297

Schedule of amortized cost basis of loans modified to borrowers

	For the Three Months Ended September 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	$	—	$	9,290	$	—	$	29	$	9,319	0.4	%
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		—		24,705		—		—		24,705	0.7
Acquisition, development, and construction		—		—		—		—		—	0.0
Other		—		—		—		—		—	0.0
Total	$	—	$	33,995	$	—	$	29	$	34,024	0.3	%
	For the Nine Months Ended September 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	$	126	$	9,290	$	471	$	301	$	10,188	0.4	%
One-to-four family residential, including condominium and cooperative apartment		—		2,854		—		—		2,854	0.3
Multifamily residential and residential mixed-use		—		—		—		—		—	0.0
Non-owner-occupied commercial real estate		—		24,705		—		—		24,705	0.7
Acquisition, development, and construction		—		—		—		—		—	0.0
Other		—		—		—		—		—	0.0
Total	$	126	$	36,849	$	471	$	301	$	37,747	0.3	%

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 September 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	4.50	%	$	—	$	1,417
One-to-four family residential, including condominium and cooperative apartment	—			—		—
Multifamily residential and residential mixed-use	—			—		—
Non-owner-occupied commercial real estate	—			—		988
Acquisition, development, and construction	—			—		—
Other loans	—			—		—
Total	4.50	%	$	—	$	2,405

	For the Nine Months Ended September 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	4.27	%	$	20	$	1,314
One-to-four family residential, including condominium and cooperative apartment	—			—		72
Multifamily residential and residential mixed-use	—			—		—
Non-owner-occupied commercial real estate	—			—		988
Acquisition, development, and construction	—			—		—
Other loans	—			—		—
Total	4.27	%	$	20	$	2,374

Schedule of performance of loans that have been modified

	September 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	$	9,290	$	—	$	—	$	—	$	898	$	10,188
One-to-four family residential, including condominium and cooperative apartment		2,854		—		—		—		—		2,854
Multifamily residential and residential mixed-use		—		—		—		—		—		—
Non-owner-occupied commercial real estate		24,705		—		—		—		—		24,705
Acquisition, development, and construction		—		—		—		—		—		—
Other loans		—		—		—		—		—		—
Total	$	36,849	$	—	$	—	$	—	$	898	$	37,747

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

Schedule of Credit risk profile of the real estate loans

	September 30, 2023
(In thousands)	2023		2022		2021		2020		2019		2018 and Prior		Revolving		Revolving-Term		Total
Business loans
Pass	$	197,831	$	428,588	$	199,606	$	167,826	$	159,084	$	316,910	$	640,980	$	39,015	$	2,149,840
Special mention		506		3,184		1,279		923		4,850		13,541		22,962		9,125		56,370
Substandard		1		1,950		2,446		6,845		2,737		30,088		8,290		8,286		60,643
Doubtful		—		—		—		—		4,166		749		—		—		4,915
Total business loans		198,338		433,722		203,331		175,594		170,837		361,288		672,232		56,426		2,271,768
YTD Gross Charge-Offs		—		—		77		38		4,166		2,229		1,021		3,390		10,921
One-to-four family residential, and condominium/cooperative apartment:
Pass		161,750		217,184		103,310		69,919		63,299		215,385		33,259		12,825		876,931
Special mention		—		—		—		—		—		756		159		710		1,625
Substandard		—		—		—		1,010		1,218		11,299		—		786		14,313
Doubtful		—		—		—		—		—		—		—		—		—
Total one-to-four family residential, and condominium/cooperative apartment		161,750		217,184		103,310		70,929		64,517		227,440		33,418		14,321		892,869
YTD Gross Charge-Offs		—		—		—		—		—		—		—		14		14
Multifamily residential and residential mixed-use:
Pass		244,041		1,367,753		589,048		285,272		389,601		1,086,015		12,715		4,340		3,978,785
Special mention		—		—		4,223		22,096		3,905		30,476		—		—		60,700
Substandard		—		—		—		10,656		5,109		46,774		—		—		62,539
Doubtful		—		—		—		—		—		—		—		—		—
Total multifamily residential and residential mixed-use		244,041		1,367,753		593,271		318,024		398,615		1,163,265		12,715		4,340		4,102,024
YTD Gross Charge-Offs		—		—		—		—		—		2		—		—		2
Non-owner-occupied commercial real estate
Pass		196,881		728,514		667,899		478,381		358,916		782,593		11,237		7,987		3,232,408
Special mention		—		—		—		78,099		4,585		14,757		—		—		97,441
Substandard		—		—		15		25,740		6,285		12,392		—		—		44,432
Doubtful		—		—		—		—		—		—		—		—		—
Total non-owner-occupied commercial real estate		196,881		728,514		667,914		582,220		369,786		809,742		11,237		7,987		3,374,281
YTD Gross Charge-Offs		—		—		—		—		—		—		—		—		—
Acquisition, development, and construction
Pass		7,668		51,454		81,045		7,647		15,644		495		23,597		238		187,788
Special mention		—		—		14,957		—		—		—		—		—		14,957
Substandard		—		—		657		—		—		—		—		—		657
Doubtful		—		—		—		—		—		—		—		—		—
Total acquisition, development, and construction		7,668		51,454		96,659		7,647		15,644		495		23,597		238		203,402
YTD Gross Charge-Offs		—		—		—		—		—		—		—		—		—
Total:
Pass		808,171		2,793,493		1,640,908		1,009,045		986,544		2,401,398		721,788		64,405		10,425,752
Special mention		506		3,184		20,459		101,118		13,340		59,530		23,121		9,835		231,093
Substandard		1		1,950		3,118		44,251		15,349		100,553		8,290		9,072		182,584
Doubtful		—		—		—		—		4,166		749		—		—		4,915
Total Loans	$	808,678	$	2,798,627	$	1,664,485	$	1,154,414	$	1,019,399	$	2,562,230	$	753,199	$	83,312	$	10,844,344
YTD Gross Charge-Offs	$	—	$	—	$	77	$	38	$	4,166	$	2,231	$	1,021	$	3,404	$	10,937

	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)	September 30, 2023		December 31, 2022
Performing	$	6,048	$	7,580
Non-accrual		219		99
Total	$	6,267	$	7,679