Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2019 | May 03, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | PROVIDENT FINANCIAL HOLDINGS INC | |
Entity Central Index Key | 0001010470 | |
Trading Symbol | prov | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 7,497,357 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Assets | ||
Cash and cash equivalents | $ 61,458 | $ 43,301 |
Investment securities - held to maturity, at cost | 102,510 | 87,813 |
Investment securities - available for sale, at fair value | 6,294 | 7,496 |
Loans held for investment, net of allowance for loan losses of $7,080 and $7,385, respectively; includes $5,239 and $5,234 at fair value, respectively | 883,554 | 902,685 |
Loans held for sale, at fair value | 30,500 | 96,298 |
Accrued interest receivable | 3,386 | 3,212 |
Real estate owned, net | 906 | |
Federal Home Loan Bank ("FHLB") - San Francisco stock | 8,199 | 8,199 |
Premises and equipment, net | 8,395 | 8,696 |
Prepaid expenses and other assets | 15,099 | 16,943 |
Total assets | 1,119,395 | 1,175,549 |
Liabilities: | ||
Non interest-bearing deposits | 90,875 | 86,174 |
Interest-bearing deposits | 786,009 | 821,424 |
Total deposits | 876,884 | 907,598 |
Borrowings | 101,121 | 126,163 |
Accounts payable, accrued interest and other liabilities | 20,181 | 21,331 |
Total liabilities | 998,186 | 1,055,092 |
Commitments and Contingencies (Notes 7 and 11) | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value (2,000,000 shares authorized; none issued and outstanding) | ||
Common stock, $.01 par value (40,000,000 shares authorized; 18,064,365 and 18,033,115 shares issued; 7,497,357 and 7,421,426 shares outstanding, respectively) | 181 | 181 |
Additional paid-in capital | 96,114 | 94,957 |
Retained earnings | 191,103 | 190,616 |
Treasury stock at cost (10,567,008 and 10,611,689 shares, respectively) | (166,352) | (165,507) |
Accumulated other comprehensive income, net of tax | 163 | 210 |
Total stockholders' equity | 121,209 | 120,457 |
Total liabilities and stockholders' equity | $ 1,119,395 | $ 1,175,549 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Condition (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses on Loans held for investment (in dollars) | $ 7,080 | $ 7,385 |
Loans held for investment fair value (in dollars) | $ 5,239 | $ 5,234 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock shares authorized | 2,000,000 | 2,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized | 40,000,000 | 40,000,000 |
Common stock shares issued | 18,064,365 | 18,033,115 |
Common stock shares outstanding | 7,497,357 | 7,421,426 |
Treasury stock shares | 10,567,008 | 10,611,689 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | ||||||
Interest income: | |||||||||
Loans receivable, net | $ 10,011 | $ 9,933 | $ 30,516 | $ 29,825 | |||||
Investment securities | 592 | 382 | 1,381 | 958 | |||||
FHLB - San Francisco stock | 144 | 144 | 565 | 428 | |||||
Interest-earning deposits | 386 | 233 | 1,111 | 591 | |||||
Total interest income | 11,133 | 10,692 | 33,573 | 31,802 | |||||
Interest expense: | |||||||||
Checking and money market deposits | 102 | 96 | 327 | 311 | |||||
Savings deposits | 139 | 147 | 437 | 445 | |||||
Time deposits | 600 | 613 | 1,851 | 1,877 | |||||
Borrowings | 680 | 712 | 2,158 | 2,176 | |||||
Total interest expense | 1,521 | 1,568 | 4,773 | 4,809 | |||||
Net interest income | 9,612 | 9,124 | 28,800 | 26,993 | |||||
Provision (recovery) for loan losses | 4 | (505) | (450) | (347) | |||||
Net interest income, after provision (recovery) for loan losses | 9,608 | 9,629 | 29,250 | 27,340 | |||||
Non-interest income: | |||||||||
Gain on sale of loans, net | [2] | 1,719 | [1] | 3,597 | [3],[4] | 7,114 | [3] | 12,761 | [5] |
Gain (loss) on sale and operations of real estate owned acquired in the settlement of loans, net | 2 | (19) | (4) | (81) | |||||
Other | 225 | 238 | 575 | 701 | |||||
Total non-interest income | 3,052 | 5,210 | 11,196 | 17,303 | |||||
Non-interest expense: | |||||||||
Salaries and employee benefits | [6] | 9,292 | 8,808 | 24,753 | 26,710 | ||||
Premises and occupancy | 1,286 | 1,255 | 3,905 | 3,829 | |||||
Equipment | 417 | 442 | 1,333 | 1,179 | |||||
Professional expenses | 513 | 400 | 1,371 | 1,441 | |||||
Sales and marketing expenses | 246 | 213 | 668 | 717 | |||||
Deposit insurance premiums and regulatory assessments | 124 | 189 | 461 | 591 | |||||
Other | [7] | 1,122 | 1,132 | 3,088 | 6,919 | ||||
Total non-interest expense | 13,000 | 12,439 | 35,579 | 41,386 | |||||
Income (loss) before income taxes | (340) | 2,400 | 4,867 | 3,257 | |||||
Provision (benefit) for income taxes | [8] | (189) | 667 | 1,237 | 2,526 | [9] | |||
Net income (loss) | $ (151) | $ 1,733 | $ 3,630 | $ 731 | |||||
Basic earnings (loss) per share (in dollars per share) | $ (0.02) | $ 0.23 | $ 0.49 | $ 0.10 | |||||
Diluted earnings (loss) per share (in dollars per share) | (0.02) | 0.23 | 0.48 | 0.09 | |||||
Cash dividends per share (in dollars per share) | $ 0.14 | $ 0.14 | $ 0.42 | $ 0.42 | |||||
Loan servicing and other fees | |||||||||
Non-interest income: | |||||||||
Total non-interest income | [2] | $ 262 | [10] | $ 493 | [11] | $ 863 | [12] | $ 1,173 | [13] |
Deposit account fees | |||||||||
Non-interest income: | |||||||||
Total non-interest income | 471 | 529 | 1,485 | 1,623 | |||||
Card and processing fees | |||||||||
Non-interest income: | |||||||||
Total non-interest income | $ 373 | $ 372 | $ 1,163 | $ 1,126 | |||||
[1] | Includes an inter-company charge of $17 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis. | ||||||||
[2] | Not in scope of ASC 606. | ||||||||
[3] | Includes an inter-company charge of $37 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis. | ||||||||
[4] | Includes an inter-company charge of $44 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis. | ||||||||
[5] | Includes an inter-company charge of $182 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis. | ||||||||
[6] | Includes $1.5 million of costs associated with staff reductions in mortgage banking operations during the quarter and nine months ended March 31, 2019. | ||||||||
[7] | Includes $3.4 million of litigation settlement expense for the nine months ended March 31, 2018. | ||||||||
[8] | Includes a net tax charge of $1.9 million resulting from the revaluation of net deferred tax assets consistent with the Tax Cuts and Jobs Act for the nine months ended March 31, 2018. | ||||||||
[9] | Includes a net tax charge of $1.9 million resulting from the revaluation of net deferred tax assets consistent with the Tax Cuts and Jobs Act for the nine months ended December 31, 2017. | ||||||||
[10] | Includes an inter-company charge of $2 credited to PBM by the Bank during the period to compensate PBM for originating loans held for investment. | ||||||||
[11] | Includes an inter-company charge of $222 credited to PBM by the Bank during the period to compensate PBM for originating loans held for investment. | ||||||||
[12] | Includes an inter-company charge of $428 credited to PBM by the Bank during the period to compensate PBM for originating loans held for investment. | ||||||||
[13] | Includes an inter-company charge of $561 credited to PBM by the Bank during the period to compensate PBM for originating loans held for investment. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Operations (Unaudited) (Parentheticals) $ in Millions | 9 Months Ended |
Mar. 31, 2018USD ($) | |
Income Statement [Abstract] | |
Staff reductions in mortgage banking operations | $ 1.5 |
Litigation settlement expense | 3.4 |
Revaluation of net deferred tax assets | $ 1.9 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (151) | $ 1,733 | $ 3,630 | $ 731 |
Change in unrealized holding loss on securities available for sale | (9) | (35) | (67) | (113) |
Reclassification adjustment for net income (loss) on securities available for sale included in net income (loss) | (2) | 43 | ||
Other comprehensive loss, before income taxes | (9) | (37) | (67) | (70) |
Income tax benefit | (3) | (13) | (20) | (27) |
Other comprehensive loss | (6) | (24) | (47) | (43) |
Total comprehensive income (loss) | $ (157) | $ 1,709 | $ 3,583 | $ 688 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss), Net of Tax | Total | |
Balance at Jun. 30, 2017 | $ 180 | $ 93,209 | $ 192,754 | $ (158,142) | $ 229 | $ 128,230 | |
Balance (in shares) at Jun. 30, 2017 | 7,714,052 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 731 | 731 | |||||
Other comprehensive loss | (43) | (43) | |||||
Purchase of treasury stock | [1] | (6,627) | (6,627) | ||||
Purchase of treasury stock (in shares) | [1] | (347,498) | |||||
Exercise of stock options | 677 | 677 | |||||
Exercise of stock options (in shares) | 83,750 | ||||||
Distribution of restricted stock (in shares) | 10,500 | ||||||
Amortization of restricted stock | 458 | 458 | |||||
Forfeiture of restricted stock | 17 | (17) | |||||
Stock options expense | 358 | 358 | |||||
Cash dividends | [2] | (3,184) | (3,184) | ||||
Balance at Mar. 31, 2018 | $ 180 | 94,719 | 190,301 | (164,786) | 186 | 120,600 | |
Balance (in shares) at Mar. 31, 2018 | 7,460,804 | ||||||
Balance at Dec. 31, 2017 | $ 180 | 94,011 | 189,610 | (163,311) | 210 | 120,700 | |
Balance (in shares) at Dec. 31, 2017 | 7,474,776 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 1,733 | 1,733 | |||||
Other comprehensive loss | (24) | (24) | |||||
Purchase of treasury stock | [1] | (1,475) | (1,475) | ||||
Purchase of treasury stock (in shares) | [1] | (80,972) | |||||
Exercise of stock options | 416 | 416 | |||||
Exercise of stock options (in shares) | 56,500 | ||||||
Distribution of restricted stock (in shares) | 10,500 | ||||||
Amortization of restricted stock | 167 | 167 | |||||
Stock options expense | 125 | 125 | |||||
Cash dividends | [3] | (1,042) | (1,042) | ||||
Balance at Mar. 31, 2018 | $ 180 | 94,719 | 190,301 | (164,786) | 186 | 120,600 | |
Balance (in shares) at Mar. 31, 2018 | 7,460,804 | ||||||
Balance at Jun. 30, 2018 | $ 181 | 94,957 | 190,616 | (165,507) | 210 | $ 120,457 | |
Balance (in shares) at Jun. 30, 2018 | 7,421,426 | 7,421,426 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 3,630 | $ 3,630 | |||||
Other comprehensive loss | (47) | (47) | |||||
Purchase of treasury stock | [4] | (845) | (845) | ||||
Purchase of treasury stock (in shares) | [4] | (44,819) | |||||
Exercise of stock options | 390 | 390 | |||||
Exercise of stock options (in shares) | 31,250 | ||||||
Distribution of restricted stock (in shares) | 89,500 | ||||||
Amortization of restricted stock | 426 | 426 | |||||
Stock options expense | 341 | 341 | |||||
Cash dividends | [5] | (3,143) | (3,143) | ||||
Balance at Mar. 31, 2019 | $ 181 | 96,114 | 191,103 | (166,352) | 163 | $ 121,209 | |
Balance (in shares) at Mar. 31, 2019 | 7,497,357 | 7,497,357 | |||||
Balance at Dec. 31, 2018 | $ 181 | 95,913 | 192,306 | (165,892) | 169 | $ 122,677 | |
Balance (in shares) at Dec. 31, 2018 | 7,506,855 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (151) | (151) | |||||
Other comprehensive loss | (6) | (6) | |||||
Purchase of treasury stock | (460) | (460) | |||||
Purchase of treasury stock (in shares) | (23,748) | ||||||
Exercise of stock options | 164 | 164 | |||||
Exercise of stock options (in shares) | 11,250 | ||||||
Distribution of restricted stock (in shares) | 3,000 | ||||||
Amortization of restricted stock | 29 | 29 | |||||
Stock options expense | 8 | 8 | |||||
Cash dividends | [6] | (1,052) | (1,052) | ||||
Balance at Mar. 31, 2019 | $ 181 | $ 96,114 | $ 191,103 | $ (166,352) | $ 163 | $ 121,209 | |
Balance (in shares) at Mar. 31, 2019 | 7,497,357 | 7,497,357 | |||||
[1] | Includes the repurchase of 3,291 shares of distributed restricted stock in settlement of employee withholding tax obligations. | ||||||
[2] | Cash dividends of $0.42 per share were paid in the nine months ended March 31, 2018. | ||||||
[3] | Cash dividends of $0.14 per share were paid in the quarter ended March 31, 2018. | ||||||
[4] | Includes the repurchase of 21,071 shares of distributed restricted stock in settlement of employee withholding tax obligations. | ||||||
[5] | Cash dividends of $0.42 per share were paid in the nine months ended March 31, 2019. | ||||||
[6] | Cash dividends of $0.14 per share were paid in the quarter ended March 31, 2019. |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Number of shares repurchase of distributed restricted stock in settlement of employee withholding tax obligations | 3,291 | 21,071 | 3,291 | |
Cash dividends per share | $ 0.14 | $ 0.14 | $ 0.42 | $ 0.42 |
Condensed Consolidated Statem_8
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | ||||
Cash flows from operating activities: | |||||
Net income | $ 3,630 | $ 731 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||
Depreciation and amortization | 2,045 | 2,229 | |||
Recovery from the allowance for loan losses | (450) | (347) | |||
Recovery of losses on real estate owned | (552) | ||||
Gain on sale of loans, net | [2] | (7,114) | [1] | (12,761) | [3] |
(Gain) loss on sale of real estate owned, net | (9) | 564 | |||
Stock-based compensation | 767 | 816 | |||
Provision (benefit) for deferred income taxes | 553 | (28) | |||
(Decrease) increase in accounts payable, accrued interest and other liabilities | (320) | 3,294 | |||
Decrease (increase) in prepaid expenses and other assets | 446 | (482) | |||
Loans originated for sale | (453,444) | (944,349) | |||
Proceeds from sale of loans | 526,090 | 983,504 | |||
Net cash provided by operating activities | 72,194 | 32,619 | |||
Cash flows from investing activities: | |||||
Decrease in loans held for investment, net | 19,230 | 8,956 | |||
Maturity of investment securities held to maturity | 800 | 200 | |||
Principal payments from investment securities held to maturity | 24,093 | 17,882 | |||
Principal payments from investment securities available for sale | 1,140 | 1,252 | |||
Purchase of investment securities held to maturity | (40,282) | (54,147) | |||
Proceeds from sale of real estate owned | 915 | 2,223 | |||
Purchase of premises and equipment | (151) | (2,713) | |||
Net cash provided by (used for) investing activities | 5,745 | (26,347) | |||
Cash flows from financing activities: | |||||
Decrease in deposits, net | (30,714) | (4,022) | |||
Repayments of short-term borrowings, net | (15,000) | (15,000) | |||
Repayments of long-term borrowings | (10,042) | (10,050) | |||
Proceeds from long-term borrowings | 10,000 | ||||
Exercise of stock options | 390 | 677 | |||
Withholding taxes on stock based compensation | (428) | (318) | |||
Cash dividends | (3,143) | (3,184) | |||
Treasury stock purchases | (845) | (6,627) | |||
Net cash used for financing activities | (59,782) | (28,524) | |||
Net increase (decrease) in cash and cash equivalents | 18,157 | (22,252) | |||
Cash and cash equivalents at beginning of period | 43,301 | 72,826 | |||
Cash and cash equivalents at end of period | 61,458 | 50,574 | |||
Supplemental information: | |||||
Cash paid for interest | 4,796 | 4,816 | |||
Cash paid for income taxes | 1,555 | 2,400 | |||
Transfer of loans held for sale to held for investment | $ 1,360 | 1,122 | |||
Real estate acquired in the settlement of loans | $ 1,659 | ||||
[1] | Includes an inter-company charge of $37 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis. | ||||
[2] | Not in scope of ASC 606. | ||||
[3] | Includes an inter-company charge of $182 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1: Basis of Presentation The unaudited interim condensed consolidated financial statements included herein reflect all adjustments which are, in the opinion of management, necessary to present a fair statement of the results of operations for the interim periods presented. All such adjustments are of a normal, recurring nature. The condensed consolidated statement of financial condition at June 30, 2018 is derived from the audited consolidated financial statements of Provident Financial Holdings, Inc. and its wholly-owned subsidiary, Provident Savings Bank, F.S.B. (the “Bank”) (collectively, the “Corporation”). Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) with respect to interim financial reporting. It is recommended that these unaudited interim condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended June 30, 2018. The results of operations for the quarter and nine months ended March 31, 2019 are not necessarily indicative of results that may be expected for the entire fiscal year ending June 30, 2019. |
Accounting Standard Updates ("A
Accounting Standard Updates ("ASU") | 9 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Standard Updates ("ASU") | Note 2: Accounting Standard Updates (“ASU”) There have been no accounting standard updates or changes in the status of their adoption that are significant to the Corporation as previously disclosed in Note 1 of the Corporation's Annual Report on Form 10-K for the year ended June 30, 2018, other than: ASU 2014-09: In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, "Revenue from Contracts with Customers," which created FASB Accounting Standards Codification (ASC) Topic 606 ("ASC 606"). ASC 606 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASC 606 was effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2017. The Corporation adopted ASC 606 on July 1, 2018 using the modified retrospective approach. Therefore, the comparative information has not been adjusted and continues to be reported under superseded ASC 605. There was no cumulative effect adjustment as of July 1, 2018, and there were no material changes to the timing or amount of revenue recognized for the nine months ended March 31, 2019; however, additional disclosures were incorporated in the footnotes upon adoption. The majority of the Company's revenue is comprised of interest income from financial assets, which is explicitly excluded from the scope of ASC 606. The Corporation elected to apply the practical expedient pursuant to ASC 606 and therefore does not disclose information about remaining performance obligations that have an original expected term of one year or less and allows the Corporation to expense costs related to obtaining a contract as incurred when the original amortization period would have been one year or less. See Note 12 for additional discussion. ASU 2018-11 In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." This ASU introduces a lessee model that brings most leases on the balance sheet and aligns many of the underlying principles of the new lessor model with those in the new revenue recognition standard, ASC 606, Revenue From Contracts With Customers. The new leases standard represents a wholesale change to lease accounting and will most likely result in significant implementation challenges during the transition period and beyond. This ASU will be effective for annual periods beginning after December 15, 2018 (i.e., calendar periods beginning on January 1, 2019), and interim periods therein, early adoption is permitted. In July 2018, the FASB issued ASU 2018-11, Leases, Targeted Improvements, which allows entities the option of initially applying the new leases standard at the adoption date (such as January 1, 2019, for calendar year- end public business entities) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In January 2019, the FASB issued ASU 2019-01, Codification Improvements. The amendments in this update include the following items: (i) determining the fair value of the underlying asset by lessors that are not manufacturers or dealers; (ii) requiring cash received from lessors from sales-type and direct financing leases to be presented in the cash flow statement within investing activities; and (iii) clarifying interim disclosure requirements. The effective date and transition requirements for the first and second items of this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019 and early adoption is permitted. The effective date and transition requirements for the third item of this ASU are the same as ASU 2016-02. The Corporation plans to adopt these ASUs on July 1, 2019. Management is currently assessing the impact of these ASUs on the Corporation's financial position and results of operations but does not believe that adoption of these ASUs will have a material impact on its consolidated financial statements. ASU 2018-13 In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which modifies disclosure requirements on fair value measurements to improve their effectiveness. The guidance permits entities to consider materiality when evaluating fair value measurement disclosures and, among other modifications, requires certain new disclosures related to Level 3 fair value measurements. The guidance will be effective beginning January 1, 2020, with early adoption permitted. The guidance only affects disclosures in the notes to the consolidated financial statements and will not affect the Corporation’s financial position or results of operations. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Note 3: Earnings (Loss) Per Share Basic earnings (loss) per share ("EPS") excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the earnings of the entity. As of March 31, 2019 and 2018, there were outstanding options to purchase 497,750 shares and 529,000 shares of the Corporation's common stock, respectively. Of those shares, as of March 31, 2019 and 2018, there were 497,750 shares and 26,000 shares, respectively, which were excluded from the diluted EPS computation as their effect was anti-dilutive. As of March 31, 2019 and 2018, there were outstanding restricted stock awards of 9,000 shares and 98,500 shares, respectively. The outstanding restricted stock had no dilutive effect for the quarter ended March 31, 2019 but they were dilutive for the comparable quarter last year. The following table provides the basic and diluted EPS computations for the quarters and nine months ended March 31, 2019 and 2018, respectively. For the Quarters Ended For the Nine Months Ended (In Thousands, Except Earnings Per Share) 2019 2018 2019 2018 Numerator: Net income (loss) – numerator for basic earnings per share and diluted earnings per share - available to common stockholders $ (151 ) $ 1,733 $ 3,630 $ 731 Denominator: Denominator for basic earnings per share: Weighted-average shares 7,507 7,457 7,481 7,573 Effect of dilutive shares: Stock options — 97 60 111 Restricted stock — 62 14 53 Denominator for diluted earnings per share: Adjusted weighted-average shares and assumed conversions 7,507 7,616 7,555 7,737 Basic earnings (loss) per share $ (0.02 ) $ 0.23 $ 0.49 $ 0.10 Diluted earnings (loss) per share $ (0.02 ) $ 0.23 $ 0.48 $ 0.09 |
Operating Segment Reports
Operating Segment Reports | 9 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Operating Segment Reports | Note 4: Operating Segment Reports The Corporation operates in two business segments: community banking through the Bank and mortgage banking through Provident Bank Mortgage ("PBM"), a division of the Bank. The Corporation expects to discontinue the operations of PBM by June 30, 2019. The Corporation estimates that it will incur costs of approximately $3.6 million to $4.0 million to complete the exit during the remainder of fiscal 2019, which amounts include costs for severance, retention, personnel, premises, occupancy, depreciation, and costs related to termination of data processing and other contractual arrangements. As of March 31, 2019, the total costs incurred for both the quarter and nine months ended March 31 2019 were approximately $1.6 million, comprised of 1.5 million in salaries and employee benefits expenses, $81,000 in premises and occupancy expenses and $13,000 in equipment expenses. There were no costs incurred related to the exit prior to the quarter ended March 31, 2019. The following tables set forth condensed consolidated statements of operations and total assets for the Corporation’s operating segments for the quarters and nine months ended March 31, 2019 and 2018, respectively. For the Quarter Ended March 31, 2019 (In Thousands) Provident Provident Consolidated Net interest income $ 9,431 $ 181 $ 9,612 Provision (recovery) for loan losses 74 (70 ) 4 Net interest income, after provision (recovery) for loan losses 9,357 251 9,608 Non-interest income: Loan servicing and other fees (1) 103 159 262 Gain (loss) on sale of loans, net (2) (1 ) 1,720 1,719 Deposit account fees 471 — 471 Gain on sale and operations of real estate owned acquired in the settlement of loans, net 2 — 2 Card and processing fees 373 — 373 Other 223 2 225 Total non-interest income 1,171 1,881 3,052 Non-interest expense: Salaries and employee benefits 5,002 4,290 9,292 Premises and occupancy 847 439 1,286 Operating and administrative expenses 1,314 1,108 2,422 Total non-interest expense 7,163 5,837 13,000 Income (loss) before income taxes 3,365 (3,705 ) (340 ) Provision (benefit) for income taxes 907 (1,096 ) (189 ) Net income (loss) $ 2,458 $ (2,609 ) $ (151 ) Total assets, end of period $ 1,088,716 $ 30,679 $ 1,119,395 (1) Includes an inter-company charge of $2 credited to PBM by the Bank during the period to compensate PBM for originating loans held for investment. (2) Includes an inter-company charge of $17 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis. For the Quarter Ended March 31, 2018 (In Thousands) Provident Provident Consolidated Net interest income $ 8,750 $ 374 $ 9,124 Recovery from the allowance for loan losses (505 ) — (505 ) Net interest income, after recovery from the allowance for loan losses 9,255 374 9,629 Non-interest income: Loan servicing and other fees (1) 313 180 493 Gain (loss) on sale of loans, net (2) (1 ) 3,598 3,597 Deposit account fees 529 — 529 Loss on sale and operations of real estate owned acquired in the settlement of loans, net (19 ) — (19 ) Card and processing fees 372 — 372 Other 238 — 238 Total non-interest income 1,432 3,778 5,210 Non-interest expense: Salaries and employee benefits 4,763 4,045 8,808 Premises and occupancy 842 413 1,255 Operating and administrative expenses 1,050 1,326 2,376 Total non-interest expense 6,655 5,784 12,439 Income (loss) before income taxes 4,032 (1,632 ) 2,400 Provision (benefit) for income taxes 1,252 (585 ) 667 Net income (loss) $ 2,780 $ (1,047 ) $ 1,733 Total assets, end of period $ 1,086,437 $ 90,165 $ 1,176,602 (1) Includes an inter-company charge of $222 credited to PBM by the Bank during the period to compensate PBM for originating loans held for investment. (2) Includes an inter-company charge of $44 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis. For the Nine Months Ended March 31, 2019 (In Thousands) Provident Provident Consolidated Net interest income $ 27,956 $ 844 $ 28,800 Provision (recovery) for loan losses (475 ) 25 (450 ) Net interest income, after provision (recovery) for loan losses 28,431 819 29,250 Non-interest income: Loan servicing and other fees (1) 87 776 863 Gain on sale of loans, net (2) 33 7,081 7,114 Deposit account fees 1,485 — 1,485 Loss on sale and operations of real estate owned acquired in the settlement of loans, net (4 ) — (4 ) Card and processing fees 1,163 — 1,163 Other 573 2 575 Total non-interest income 3,337 7,859 11,196 Non-interest expense: Salaries and employee benefits 14,138 10,615 24,753 Premises and occupancy 2,652 1,253 3,905 Operating and administrative expenses 3,307 3,614 6,921 Total non-interest expense 20,097 15,482 35,579 Income (loss) before income taxes 11,671 (6,804 ) 4,867 Provision (benefit) for income taxes 3,249 (2,012 ) 1,237 Net income (loss) $ 8,422 $ (4,792 ) $ 3,630 Total assets, end of period $ 1,088,716 $ 30,679 $ 1,119,395 (1) Includes an inter-company charge of $428 credited to PBM by the Bank during the period to compensate PBM for originating loans held for investment. (2) Includes an inter-company charge of $37 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis. For the Nine Months Ended March 31, 2018 (In Thousands) Provident Provident Consolidated Net interest income $ 25,517 $ 1,476 $ 26,993 Recovery from the allowance for loan losses (347 ) — (347 ) Net interest income, after recovery from the allowance for loan losses 25,864 1,476 27,340 Non-interest income: Loan servicing and other fees (1) 468 705 1,173 Gain on sale of loans, net (2) 21 12,740 12,761 Deposit account fees 1,623 — 1,623 Loss on sale and operations of real estate owned acquired in the settlement of loans, net (81 ) — (81 ) Card and processing fees 1,126 — 1,126 Other 701 — 701 Total non-interest income 3,858 13,445 17,303 Non-interest expense: Salaries and employee benefits 13,714 12,996 26,710 Premises and occupancy 2,491 1,338 3,829 Operating and administrative expenses (3) 4,490 6,357 10,847 Total non-interest expense 20,695 20,691 41,386 Income (loss) before income taxes 9,027 (5,770 ) 3,257 Provision (benefit) for income taxes (4) 4,595 (2,069 ) 2,526 Net income (loss) $ 4,432 $ (3,701 ) $ 731 Total assets, end of period $ 1,086,437 $ 90,165 $ 1,176,602 (1) Includes an inter-company charge of $561 credited to PBM by the Bank during the period to compensate PBM for originating loans held for investment. (2) Includes an inter-company charge of $182 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis. (3) Includes $3.4 million of litigation settlement expense for the first nine months of fiscal 2018, of which $2.1 million was allocated to PBM. (4) Includes a net tax charge of $1.9 million resulting from the revaluation of net deferred tax assets consistent with the Tax Cuts and Jobs Act for the nine months ended December 31, 2017. |
Investment Securities
Investment Securities | 9 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Note 5: Investment Securities The amortized cost and estimated fair value of investment securities as of March 31, 2019 and June 30, 2018 were as follows: March 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Estimated Fair Value Carrying Value (In Thousands) Held to maturity: U.S. government sponsored enterprise MBS (1) $ 99,193 $ 728 $ (163 ) $ 99,758 $ 99,193 U.S. SBA securities (2) 2,917 — (19 ) 2,898 2,917 Certificate of deposits 400 — — 400 400 Total investment securities - held to maturity $ 102,510 $ 728 $ (182 ) $ 103,056 $ 102,510 Available for sale: U.S. government agency MBS $ 3,677 $ 119 $ — $ 3,796 $ 3,796 U.S. government sponsored enterprise MBS 2,107 91 — 2,198 2,198 Private issue CMO (3) 296 4 — 300 300 Total investment securities - available for sale $ 6,080 $ 214 $ — $ 6,294 $ 6,294 Total investment securities $ 108,590 $ 942 $ (182 ) $ 109,350 $ 108,804 (1) Mortgage-Backed Securities ("MBS"). (2) Small Business Administration ("SBA"). (3) Collateralized Mortgage Obligations ("CMO"). June 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Estimated Fair Value Carrying Value (In Thousands) Held to maturity: U.S. government sponsored enterprise MBS $ 84,227 $ 203 $ (762 ) $ 83,668 $ 84,227 U.S. SBA securities 2,986 — (15 ) 2,971 2,986 Certificate of deposits 600 — — 600 600 Total investment securities - held to maturity $ 87,813 $ 203 $ (777 ) $ 87,239 $ 87,813 Available for sale: U.S. government agency MBS $ 4,234 $ 150 $ — $ 4,384 $ 4,384 U.S. government sponsored enterprise MBS 2,640 122 — 2,762 2,762 Private issue CMO 346 4 — 350 350 Total investment securities - available for sale $ 7,220 $ 276 $ — $ 7,496 $ 7,496 Total investment securities $ 95,033 $ 479 $ (777 ) $ 94,735 $ 95,309 In the third quarters of fiscal 2019 and 2018, the Corporation received MBS principal payments of $8.6 million and $7.4 million, respectively, and there were no sales of investment securities during these periods. The Corporation purchased U.S. government sponsored enterprise MBS totaling $26.2 million and $12.4 million, to be held to maturity, respectively. For the first nine months of fiscal 2019 and 2018, the Corporation received MBS principal payments of $25.2 million and $19.1 million, respectively, and there were no sales of investment securities during these periods. In the first nine months of fiscal 2019 and 2018, the Corporation purchased U.S. government sponsored enterprise MBS totaling $39.7 million and $50.9 million, to be held to maturity, respectively. In addition, the Corporation also purchased $3.0 million in U.S. SBA loan pool securities to be held to maturity in the third quarter and first nine months of fiscal 2018. The Corporation held investments with an unrealized loss position of $182,000 at March 31, 2019 and $777,000 at June 30, 2018. As of March 31, 2019 Unrealized Holding Losses Unrealized Holding Losses Unrealized Holding Losses (In Thousands) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses Held to maturity: U.S. government sponsored enterprise MBS $ — $ — $ 26,758 $ 163 $ 26,758 $ 163 U.S. SBA securities 2,892 19 — — 2,892 19 Total investment securities $ 2,892 $ 19 $ 26,758 $ 163 $ 29,650 $ 182 As of June 30, 2018 Unrealized Holding Losses Unrealized Holding Losses Unrealized Holding Losses (In Thousands) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses Held to maturity: U.S. government sponsored enterprise MBS $ 47,045 $ 762 $ — $ — $ 47,045 $ 762 U.S. SBA securities 2,964 15 — — 2,964 15 Total investment securities $ 50,009 $ 777 $ — $ — $ 50,009 $ 777 The Corporation evaluates individual investment securities quarterly for other-than-temporary declines in market value. At March 31, 2019, $163,000 of the $182,000 unrealized holding losses were 12 months or more; while at June 30, 2018, all of the unrealized holding losses were less than 12 months. The Corporation does not believe that there were any other-than-temporary impairments on the investment securities at March 31, 2019 and 2018; therefore, no impairment losses were recorded for the quarters and nine months ended March 31, 2019 and 2018. Contractual maturities of investment securities as of March 31, 2019 and June 30, 2018 were as follows: March 31, 2019 June 30, 2018 (In Thousands) Amortized Estimated Amortized Estimated Held to maturity: Due in one year or less $ 200 $ 200 $ 600 $ 600 Due after one through five years 35,345 35,259 24,961 24,569 Due after five through ten years 38,691 39,126 22,847 22,477 Due after ten years 28,274 28,471 39,405 39,593 Total investment securities - held to maturity $ 102,510 $ 103,056 $ 87,813 $ 87,239 Available for sale: Due in one year or less $ — $ — $ — $ — Due after one through five years — — — — Due after five through ten years — — — — Due after ten years 6,080 6,294 7,220 7,496 Total investment securities - available for sale $ 6,080 $ 6,294 $ 7,220 $ 7,496 Total investment securities $ 108,590 $ 109,350 $ 95,033 $ 94,735 |
Loans Held for Investment
Loans Held for Investment | 9 Months Ended |
Mar. 31, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans Held for Investment | Note 6: Loans Held for Investment Loans held for investment, net of fair value adjustments, consisted of the following: (In Thousands) March 31, June 30, Mortgage loans: Single-family $ 314,824 $ 314,808 Multi-family 449,812 476,008 Commercial real estate 115,355 109,726 Construction (1) 4,139 3,174 Other 167 167 Commercial business loans (2) 483 500 Consumer loans (3) 133 109 Total loans held for investment, gross 884,913 904,492 Advance payments of escrows 225 18 Deferred loan costs, net 5,496 5,560 Allowance for loan losses (7,080 ) (7,385 ) Total loans held for investment, net $ 883,554 $ 902,685 (1) Net of $6.1 million and $4.3 million of undisbursed loan funds as of March 31, 2019 and June 30, 2018, respectively (2) Net of $950 and $495 of undisbursed lines of credit as of March 31, 2019 and June 30, 2018, respectively. (3) Net of $481 and $503 of undisbursed lines of credit as of March 31, 2019 and June 30, 2018, respectively. The following table sets forth information at March 31, 2019 regarding the dollar amount of loans held for investment that are contractually repricing during the periods indicated, segregated between adjustable rate loans and fixed rate loans. Fixed-rate loans comprised 2% of loans held for investment at both March 31, 2019 and June 30, 2018. Adjustable rate loans having no stated repricing dates that reprice when the index they are tied to reprices (e.g. prime rate index) and checking account overdrafts are reported as repricing within one year. The table does not include any estimate of prepayments which may cause the Corporation's actual repricing experience to differ materially from that shown. Adjustable Rate (In Thousands) Within One Year After Years After Years After Years Fixed Rate Total Mortgage loans: Single-family $ 100,302 $ 37,514 $ 102,300 $ 62,493 $ 12,215 $ 314,824 Multi-family 125,503 162,437 145,968 15,710 194 449,812 Commercial real estate 44,247 33,136 36,442 1,055 475 115,355 Construction 3,581 — — — 558 4,139 Other — — — — 167 167 Commercial business loans 75 — — — 408 483 Consumer loans 133 — — — — 133 Total loans held for investment, gross $ 273,841 $ 233,087 $ 284,710 $ 79,258 $ 14,017 $ 884,913 The Corporation has developed an internal loan grading system to evaluate and quantify the Bank's loans held for investment portfolio with respect to quality and risk. Management continually evaluates the credit quality of the Corporation's loan portfolio and conducts a quarterly review of the adequacy of the allowance for loan losses using quantitative and qualitative methods. The Corporation has adopted an internal risk rating policy in which each loan is rated for credit quality with a rating of pass, special mention, substandard, doubtful or loss. The two primary components that are used during the loan review process to determine the proper allowance levels are individually evaluated allowances and collectively evaluated allowances. Quantitative loan loss factors are developed by determining the historical loss experience, expected future cash flows, discount rates and collateral fair values, among others. Qualitative loan loss factors are developed by assessing general economic indicators such as gross domestic product, retail sales, unemployment rates, employment growth, California home sales and median California home prices. The Corporation assigns individual factors for the quantitative and qualitative methods for each loan category and each internal risk rating. The Corporation categorizes all of the loans held for investment into risk categories based on relevant information about the ability of the borrower to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. A description of the general characteristics of the risk grades is as follows: ▪ Pass - These loans range from minimal credit risk to average, but still acceptable, credit risk. The likelihood of loss is considered remote. ▪ Special Mention - A special mention loan has potential weaknesses that may be temporary or, if left uncorrected, may result in a loss. While concerns exist, the bank is currently protected and loss is considered unlikely and not imminent. ▪ Substandard - A substandard loan is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. ▪ Doubtful - A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable. ▪ Loss - A loss loan is considered uncollectible and of such little value that continuance as an asset of the institution is not warranted. The following tables summarize gross loans held for investment, net of fair value adjustments, by loan types and risk category at the dates indicated: March 31, 2019 (In Thousands) Single- family Multi- family Commercial Real Estate Construction Other Mortgage Commercial Business Consumer Total Pass $ 304,403 $ 445,927 $ 115,355 $ 3,394 $ 167 $ 430 $ 133 $ 869,809 Special Mention 3,347 3,885 — — — — — 7,232 Substandard 7,074 — — 745 — 53 — 7,872 Total loans held for investment, gross $ 314,824 $ 449,812 $ 115,355 $ 4,139 $ 167 $ 483 $ 133 $ 884,913 June 30, 2018 (In Thousands) Single- family Multi- family Commercial Real Estate Construction Other Mortgage Commercial Business Consumer Total Pass $ 304,619 $ 472,061 $ 108,786 $ 3,174 $ 167 $ 430 $ 109 $ 889,346 Special Mention 2,548 3,947 940 — — — — 7,435 Substandard 7,641 — — — — 70 — 7,711 Total loans held for investment, gross $ 314,808 $ 476,008 $ 109,726 $ 3,174 $ 167 $ 500 $ 109 $ 904,492 The allowance for loan losses is maintained at a level sufficient to provide for estimated losses based on evaluating known and inherent risks in the loans held for investment and upon management's continuing analysis of the factors underlying the quality of the loans held for investment. These factors include changes in the size and composition of the loans held for investment, actual loan loss experience, current economic conditions, detailed analysis of individual loans for which full collectability may not be assured, and determination of the realizable value of the collateral securing the loans. The provision (recovery) for (from) the allowance for loan losses is charged (credited) against operations on a quarterly basis, as necessary, to maintain the allowance at appropriate levels. Although management believes it uses the best information available to make such determinations, there can be no assurance that regulators, in reviewing the Corporation's loans held for investment, will not request a significant increase in its allowance for loan losses. Future adjustments to the allowance for loan losses may be necessary and results of operations could be significantly and adversely affected as a result of economic, operating, regulatory, and other conditions beyond the Corporation's control. Non-performing loans are charged-off to their fair market values in the period the loans, or portion thereof, are deemed uncollectible, generally after the loan becomes 150 days delinquent for real estate secured first trust deed loans and 120 days delinquent for commercial business or real estate secured second trust deed loans. For loans that were modified from their original terms, were re-underwritten and identified in the Corporation's asset quality reports as troubled debt restructurings ("restructured loans"), the charge-off occurs when the loan becomes 90 days delinquent; and where borrowers file bankruptcy, the charge-off occurs when the loan becomes 60 days delinquent. The amount of the charge-off is determined by comparing the loan balance to the estimated fair value of the underlying collateral, less disposition costs, with the loan balance in excess of the estimated fair value charged-off against the allowance for loan losses. The allowance for loan losses for non-performing loans is determined by applying Accounting Standards Codification ("ASC") 310, "Receivables." For restructured loans that are less than 90 days delinquent, the allowance for loan losses are segregated into (a) individually evaluated allowances for those loans with applicable discounted cash flow calculations still in their restructuring period, classified lower than pass, and containing an embedded loss component or (b) collectively evaluated allowances based on the aggregated pooling method. For non-performing loans less than 60 days delinquent where the borrower has filed bankruptcy, the collectively evaluated allowances are assigned based on the aggregated pooling method. For non-performing commercial real estate loans, an individually evaluated allowance is derived based on the loan's discounted cash flow fair value (for restructured loans) or collateral fair value less estimated selling costs and if the fair value is higher than the loan balance, no allowance is required. The following table summarizes the Corporation's allowance for loan losses at March 31, 2019 and June 30, 2018: (In Thousands) March 31, 2019 June 30, 2018 Collectively evaluated for impairment: Mortgage loans: Single-family $ 2,514 $ 2,632 Multi-family 3,300 3,492 Commercial real estate 1,042 1,030 Construction 63 47 Other 3 3 Commercial business loans 18 18 Consumer loans 8 6 Total collectively evaluated allowance 6,948 7,228 Individually evaluated for impairment: Mortgage loans: Single-family 123 151 Commercial business loans 9 6 Total individually evaluated allowance 132 157 Total loan loss allowance $ 7,080 $ 7,385 The following table is provided to disclose additional details for the periods indicated on the Corporation's allowance for loan losses: For the Quarters Ended For the Nine Months Ended (Dollars in Thousands) 2019 2018 2019 2018 Allowance at beginning of period $ 7,061 $ 8,075 $ 7,385 $ 8,039 Provision (recovery) for loan losses 4 (505 ) (450 ) (347 ) Recoveries: Mortgage loans: Single-family 22 71 177 203 Consumer loans 1 — 2 — Total recoveries 23 71 179 203 Charge-offs: Mortgage loans: Single-family (6 ) (110 ) (31 ) (364 ) Consumer loans (2 ) — (3 ) — Total charge-offs (8 ) (110 ) (34 ) (364 ) Net (charge-offs) recoveries 15 (39 ) 145 (161 ) Balance at end of period $ 7,080 $ 7,531 $ 7,080 $ 7,531 Allowance for loan losses as a percentage of gross loans held for investment at the end of the period 0.79 % 0.84 % 0.79 % 0.84 % Net charge-offs (recoveries) as a percentage of average loans receivable, net, during the period (annualized) (0.01 )% 0.02 % (0.02 )% 0.02 % The following tables denote the past due status of the Corporation's gross loans held for investment, net of fair value adjustments, at the dates indicated. March 31, 2019 (In Thousands) Current 30-89 Days Past Due Non-Accrual (1) Total Loans Held for Investment, Gross Mortgage loans: Single-family $ 308,554 $ 696 $ 5,574 $ 314,824 Multi-family 449,812 — — 449,812 Commercial real estate 115,355 — — 115,355 Construction 3,394 — 745 4,139 Other 167 — — 167 Commercial business loans 430 — 53 483 Consumer loans 130 3 — 133 Total loans held for investment, gross $ 877,842 $ 699 $ 6,372 $ 884,913 (1) June 30, 2018 (In Thousands) Current 30-89 Days Past Due Non-Accrual (1) Total Loans Held for Investment, Gross Mortgage loans: Single-family $ 307,863 $ 804 $ 6,141 $ 314,808 Multi-family 476,008 — — 476,008 Commercial real estate 109,726 — — 109,726 Construction 3,174 — — 3,174 Other 167 — — 167 Commercial business loans 430 — 70 500 Consumer loans 108 1 — 109 Total loans held for investment, gross $ 897,476 $ 805 $ 6,211 $ 904,492 (1) The following tables summarize the Corporation's allowance for loan losses and recorded investment in gross loans, by portfolio type, at the dates and for the periods indicated. Quarter Ended March 31, 2019 (In Thousands) Single- family Multi- family Commercial Real Estate Construction Other Commercial Business Consumer Total Allowance for loan losses: Allowance at beginning of period $ 2,679 $ 3,280 $ 1,019 $ 48 $ 3 $ 26 $ 6 $ 7,061 Provision (recovery) for loan losses (58 ) 20 23 15 — 1 3 4 Recoveries 22 — — — — — 1 23 Charge-offs (6 ) — — — — — (2 (8 ) Allowance for loan losses, end of period $ 2,637 $ 3,300 $ 1,042 $ 63 $ 3 $ 27 $ 8 $ 7,080 Allowance for loan losses: Individually evaluated for impairment $ 123 $ — $ — $ — $ — $ 9 $ — $ 132 Collectively evaluated for impairment 2,514 3,300 1,042 63 3 18 8 6,948 Allowance for loan losses, end of period $ 2,637 $ 3,300 $ 1,042 $ 63 $ 3 $ 27 $ 8 $ 7,080 Loans held for investment: Individually evaluated for impairment $ 6,004 $ — $ — $ 745 $ — $ 53 $ — $ 6,802 Collectively evaluated for impairment 308,820 449,812 115,355 3,394 167 430 133 878,111 Total loans held for investment, gross $ 314,824 $ 449,812 $ 115,355 $ 4,139 $ 167 $ 483 $ 133 $ 884,913 Allowance for loan losses as a percentage of gross loans held for investment 0.84 % 0.73 % 0.90 % 1.52 % 1.80 % 5.59 % 6.02 % 0.79 % Quarter Ended March 31, 2018 (In Thousands) Single- family Multi- family Commercial Real Estate Construction Commercial Business Consumer Total Allowance for loan losses: Allowance at beginning of period $ 3,303 $ 3,295 $ 933 $ 504 $ 32 $ 8 $ 8,075 Provision (recovery) for loan losses (143 ) 17 33 (410 ) (1 ) (1 ) (505 ) Recoveries 71 — — — — — 71 Charge-offs (110 ) — — — — — (110 ) Allowance for loan losses, end of period $ 3,121 $ 3,312 $ 966 $ 94 $ 31 $ 7 $ 7,531 Allowance for loan losses: Individually evaluated for impairment $ 161 $ — $ — $ — $ 15 $ — $ 176 Collectively evaluated for impairment 2,960 3,312 966 94 16 7 7,355 Allowance for loan losses, end of period $ 3,121 $ 3,312 $ 966 $ 94 $ 31 $ 7 $ 7,531 Loans held for investment: Individually evaluated for impairment $ 7,929 $ — $ — $ — $ 73 $ — $ 8,002 Collectively evaluated for impairment 308,983 466,266 106,937 5,324 377 130 888,017 Total loans held for investment, gross $ 316,912 $ 466,266 $ 106,937 $ 5,324 $ 450 $ 130 $ 896,019 Allowance for loan losses as a percentage of gross loans held for investment 0.98 % 0.71 % 0.90 % 1.77 % 6.89 % 5.38 % 0.84 % Nine Months Ended March 31, 2019 (In Thousands) Single- family Multi- family Commercial Real Estate Construction Other Commercial Business Consumer Total Allowance for loan losses: Allowance at beginning of period $ 2,783 $ 3,492 $ 1,030 $ 47 $ 3 $ 24 $ 6 $ 7,385 Provision (recovery) for loan losses (292 ) (192 ) 12 16 — 3 3 (450 ) Recoveries 177 — — — — — 2 179 Charge-offs (31 ) — — — — — (3 ) (34 ) Allowance for loan losses, end of period $ 2,637 $ 3,300 $ 1,042 $ 63 $ 3 $ 27 $ 8 $ 7,080 Allowance for loan losses: Individually evaluated for impairment $ 123 $ — $ — $ — $ — $ 9 $ — $ 132 Collectively evaluated for impairment 2,514 3,300 1,042 63 3 18 8 6,948 Allowance for loan losses, end of period $ 2,637 $ 3,300 $ 1,042 $ 63 $ 3 $ 27 $ 8 $ 7,080 Loans held for investment: Individually evaluated for impairment $ 6,004 $ — $ — $ 745 $ — $ 53 $ — $ 6,802 Collectively evaluated for impairment 308,820 449,812 115,355 3,394 167 430 133 878,111 Total loans held for investment, gross $ 314,824 $ 449,812 $ 115,355 $ 4,139 $ 167 $ 483 $ 133 $ 884,913 Allowance for loan losses as a percentage of gross loans held for investment 0.84 % 0.73 % 0.90 % 1.52 % 1.80 % 5.59 % 6.02 % 0.79 % Nine Months Ended March 31, 2018 (In Thousands) Single- family Multi- family Commercial Real Estate Construction Commercial Business Consumer Total Allowance for loan losses: Allowance at beginning of period $ 3,601 $ 3,420 $ 879 $ 96 $ 36 $ 7 $ 8,039 Provision (recovery) for loan losses (319 ) (108 ) 87 (2 ) (5 ) — (347 ) Recoveries 203 — — — — — 203 Charge-offs (364 ) — — — — — (364 ) Allowance for loan losses, end of period $ 3,121 $ 3,312 $ 966 $ 94 $ 31 $ 7 $ 7,531 Allowance for loan losses: Individually evaluated for impairment $ 161 $ — $ — $ — $ 15 $ — $ 176 Collectively evaluated for impairment 2,960 3,312 966 94 16 7 7,355 Allowance for loan losses, end of period $ 3,121 $ 3,312 $ 966 $ 94 $ 31 $ 7 $ 7,531 Loans held for investment: Individually evaluated for impairment $ 7,929 $ — $ — $ — $ 73 $ — $ 8,002 Collectively evaluated for impairment 308,983 466,266 106,937 5,324 377 130 888,017 Total loans held for investment, gross $ 316,912 $ 466,266 $ 106,937 $ 5,324 $ 450 $ 130 $ 896,019 Allowance for loan losses as a percentage of gross loans held for investment 0.98 % 0.71 % 0.90 % 1.77 % 6.89 5.38 % 0.84 % The following tables identify the Corporation's total recorded investment in non-performing loans by type at the dates and for the periods indicated. Generally, a loan is placed on non-accrual status when it becomes 90 days past due as to principal or interest or if the loan is deemed impaired, after considering economic and business conditions and collection efforts, where the borrower's financial condition is such that collection of the contractual principal or interest on the loan is doubtful. In addition, interest income is not recognized on any loan where management has determined that collection is not reasonably assured. A non-performing loan may be restored to accrual status when delinquent principal and interest payments are brought current, the borrower(s) has demonstrated sustained payment performance and future monthly principal and interest payments are expected to be collected on a timely basis. Loans with a related allowance reserve have been individually evaluated for impairment using either a discounted cash flow analysis or, for collateral dependent loans, current appraisals less costs to sell, to establish realizable value. This analysis may identify a specific impairment amount needed or may conclude that no reserve is needed. Loans that are not individually evaluated for impairment are included in pools of homogeneous loans for evaluation of related allowance reserves. At March 31, 2019 Unpaid Net Principal Related Recorded Recorded (In Thousands) Balance Charge-offs Investment Allowance (1) Investment Mortgage loans: Single-family: With a related allowance $ 1,813 $ — $ 1,813 $ (284 ) $ 1,529 Without a related allowance (2) 4,336 (539 ) 3,797 — 3,797 Total single-family 6,149 (539 ) 5,610 (284 ) 5,326 Construction: Without a related allowance (3) 745 — 745 — 745 Total construction 745 — 745 — 745 Commercial business loans: With a related allowance 53 — 53 (9 ) 44 Total commercial business loans 53 — 53 (9 ) 44 Total non-performing loans $ 6,947 $ (539 ) $ 6,408 $ (293 ) $ 6,115 (1) (2) (3) At June 30, 2018 Unpaid Net Principal Related Recorded Recorded (In Thousands) Balance Charge-offs Investment Allowance (1) Investment Mortgage loans: Single-family: With a related allowance $ 1,333 $ — $ 1,333 $ (185 ) $ 1,148 Without a related allowance (2) 5,569 (724 ) 4,845 — 4,845 Total single-family 6,902 (724 ) 6,178 (185 ) 5,993 Commercial business loans: With a related allowance 70 — 70 (6 ) 64 Total commercial business loans 70 — 70 (6 ) 64 Total non-performing loans $ 6,972 $ (724 ) $ 6,248 $ (191 ) $ 6,057 (1) (2) At both March 31, 2019 and June 30, 2018, there were no commitments to lend additional funds to those borrowers whose loans were classified as non-performing, except for one construction loan with undisbursed loan funds of $1.2 million at March 31, 2019. For the quarters ended March 31, 2019 and 2018, the Corporation's average recorded investment in non-performing loans was $6.4 million and $7.6 million, respectively. The Corporation records payments on non-performing loans utilizing the cash basis or cost recovery method of accounting during the periods when the loans are on non-performing status. For the quarter ended March 31, 2019, the Bank received $63,000 in interest payments from non-performing loans, of which $30,000 were recognized as interest income and the remaining $33,000 were applied to reduce the loan balances under the cost recovery method. In comparison for the quarter ended March 31, 2018, the Bank received $121,000 in interest payments from non-performing loans, of which $70,000 were recognized as interest income and the remaining $51,000 were applied to reduce the loan balances under the cost recovery method. For the nine months ended March 31, 2019 and 2018, the Corporation's average recorded investment in non-performing loans was $6.7 million and $8.1 million, respectively. For the nine months ended March 31, 2019, the Bank received $458,000 in interest payments from non-performing loans, of which $321,000 were recognized as interest income and the remaining $137,000 were applied to reduce the loan balances under the cost recovery method. In comparison for the nine months ended March 31, 2018, the Bank received $466,000 in interest payments from non-performing loans, of which $240,000 were recognized as interest income and the remaining $226,000 were applied to reduce the loan balances under the cost recovery method. The following tables present the average recorded investment in non-performing loans and the related interest income recognized for the quarters and nine months ended March 31, 2019 and 2018: Quarter Ended March 31, 2019 2018 Average Interest Average Interest Recorded Income Recorded Income (In Thousands) Investment Recognized Investment Recognized Without related allowances: Mortgage loans: Single-family $ 2,785 $ — $ 6,397 $ 49 Construction 745 — — — 3,530 — 6,397 49 With related allowances: Mortgage loans: Single-family 2,841 29 1,170 20 Commercial business loans 54 1 74 1 2,895 30 1,244 21 Total $ 6,425 $ 30 $ 7,641 $ 70 Nine Months Ended March 31, 2019 2018 Average Interest Average Interest Recorded Income Recorded Income (In Thousands) Investment Recognized Investment Recognized Without related allowances: Mortgage loans: Single-family $ 3,570 $ 229 $ 7,296 $ 184 Commercial real estate — — 22 13 Construction 579 — — — 4,149 229 7,318 197 With related allowances: Mortgage loans: Single-family 2,466 89 738 39 Commercial business loans 61 3 76 4 2,527 92 814 43 Total $ 6,676 $ 321 $ 8,132 $ 240 For the quarter ended March 31, 2019, no new loans were restructured from their original terms and classified as restructured loans, while one restructured loan from pass category was downgraded to special mention. For the nine months ended March 31, 2019, no new loans were restructured from their original terms and classified as restructured loans, while one restructured loan was upgraded to the pass category, one restructured loan from the pass category was downgraded to special mention and one restructured loan was paid off. For the quarters and nine months ended March 31, 2018, there were two loans totaling $2.2 million that were newly modified from their original terms and re-underwritten or identified in the Corporation's asset quality reports as restructured loans. During the quarters and nine months ended March 31, 2019 and 2018, no restructured loans were in default within a 12-month period subsequent to their original restructuring. Additionally, during the quarter ended March 31, 2019, there was no loan whose modification was extended beyond the initial maturity of the modification; while during the nine months ended March 31, 2019, there was one loan whose modification was extended beyond the initial maturity of the modification. During the quarter and nine months ended March 31, 2018, there were no loans whose modification was extended beyond the initial maturity of the modification. At both March 31, 2019 and June 30, 2018, there were no commitments to lend additional funds to those borrowers whose loans were restructured. As of March 31, 2019, the Corporation held 10 restructured loans with a net outstanding balance of $4.6 million: one loan was classified as special mention ($440,000), one loan was classified as substandard and remains on accrual status ($1.4 million) and eight loans were classified as substandard on non-accrual status ($2.7 million). As of June 30, 2018, the Corporation held 11 restructured loans with a net outstanding balance of $5.2 million: one loan was classified as special mention on accrual status ($389,000); one loan was classified as substandard on accrual status ($1.4 million); and nine loans were classified as substandard on non-accrual status ($3.4 million). Substandard assets have one or more defined weaknesses and are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. Assets that do not currently expose the Corporation to sufficient risk to warrant adverse classification but possess weaknesses are designated as special mention and are closely monitored by the Corporation. As of March 31, 2019 and June 30, 2018, $2.9 million or 63%, and $2.9 million or 56%, respectively, of the restructured loans were current with respect to their modified payment terms. The Corporation upgrades restructured single-family loans to the pass category if the borrower has demonstrated satisfactory contractual payments for at least six consecutive months; 12 months for those loans that were restructured more than once; and if the borrower has demonstrated satisfactory contractual payments beyond 12 consecutive months, the loan is no longer categorized as a restructured loan. In addition to the payment history described above, multi-family, commercial real estate, construction and commercial business loans must also demonstrate a combination of the following characteristics to be upgraded: satisfactory cash flow, satisfactory guarantor support, and additional collateral support, among others. To qualify for restructuring, a borrower must provide evidence of their creditworthiness such as, current financial statements, their most recent income tax returns, current paystubs, current W-2s, and most recent bank statements, among other documents, which are then verified by the Corporation. The Corporation re-underwrites the loan with the borrower's updated financial information, new credit report, current loan balance, new interest rate, remaining loan term, updated property value and modified payment schedule, among other considerations, to determine if the borrower qualifies. The following table summarizes at the dates indicated the restructured loan balances, net of allowance for loan losses, by loan type and non-accrual versus accrual status: At At (In Thousands) March 31, 2019 June 30, 2018 Restructured loans on non-accrual status: Mortgage loans: Single-family $ 2,669 $ 3,328 Commercial business loans 44 64 Total 2,713 3,392 Restructured loans on accrual status: Mortgage loans: Single-family 1,865 1,788 Total 1,865 1,788 Total restructured loans $ 4,578 $ 5,180 The following tables identify the Corporation's total recorded investment in restructured loans by type at the dates and for the periods indicated. At March 31, 2019 Unpaid Net Principal Related Recorded Recorded (In Thousands) Balance Charge-offs Investment Allowance (1) Investment Mortgage loans: Single-family: With a related allowance $ 2,207 $ — $ 2,207 $ (123 ) $ 2,084 Without a related allowance (2) 2,818 (368 ) 2,450 — 2,450 Total single-family 5,025 (368 ) 4,657 (123 ) 4,534 Commercial business loans: With a related allowance 53 — 53 (9 ) 44 Total commercial business loans 53 — 53 (9 ) 44 Total restructured loans $ 5,078 $ (368 ) $ 4,710 $ (132 ) $ 4,578 (1) (2) At June 30, 2018 Unpaid Net Principal Related Recorded Recorded (In Thousands) Balance Charge-offs Investment Allowance (1) Investment Mortgage loans: Single-family With a related allowance $ 2,228 $ — $ 2,228 $ (151 ) $ 2,077 Without a related allowance (2) 3,450 (411 ) 3,039 — 3,039 Total single-family 5,678 (411 ) 5,267 (151 ) 5,116 Commercial business loans: With a related allowance 70 — 70 (6 ) 64 Total commercial business loans 70 — 70 (6 ) 64 Total restructured loans $ 5,748 $ (411 ) $ 5,337 $ (157 ) $ 5,180 (1) (2) During the quarter ended March 31, 2019, no properties were acquired in the settlement of loans and no previously foreclosed upon properties were sold. This compares to the quarter ended March 31, 2018 when two properties were acquired in the settlement of loans, and one previously foreclosed upon property was sold. For the nine months ended March 31, 2019, no properties were acquired in the settlement of loans, while two previously foreclosed upon properties were sold. This compares to the nine months ended March 31, 2018 when three properties were acquired in the settlement of loans, and three previously foreclosed upon properties were sold. As of March 31, 2019, there was no outstanding real estate owned property. This compares to two real estate owned properties located in California with a total net fair value of $906,000 at June 30, 2018. A new appraisal was obtained on each of the properties at the time of foreclosure and fair value was derived by using the lower of the appraised value or the listing price of the property, net of selling costs. Any initial loss was recorded as a charge to the allowance for loan losses before being transferred to real estate owned. Subsequent to transfer to real estate owned, if there is further deterioration in real estate values, specific real estate owned loss reserves are established and charged to the statement of operations. In addition, the Corporation records costs to carry real estate owned as real estate operating expenses as incurred. |
Derivative and Other Financial
Derivative and Other Financial Instruments with Off-Balance Sheet Risks | 9 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Other Financial Instruments with Off-Balance Sheet Risks | Note 7: Derivative and Other Financial Instruments with Off-Balance Sheet Risks The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit in the form of originating loans or providing funds under existing lines of credit, loan sale commitments to third parties and option contracts. These instruments involve, to varying degrees, elements of credit and interest-rate risk in excess of the amount recognized in the accompanying Condensed Consolidated Statements of Financial Condition. The Corporation’s exposure to credit loss, in the event of non-performance by the counterparty to these financial instruments, is represented by the contractual amount of these instruments. The Corporation uses the same credit policies in entering into financial instruments with off-balance sheet risk as it does for on-balance sheet instruments. As of March 31, 2019 and June 30, 2018, the Corporation had commitments to extend credit (on loans to be held for investment and loans to be held for sale) of $16.6 million and $66.3 million, respectively. The following table provides information at the dates indicated regarding undisbursed funds on construction loans, undisbursed funds to borrowers on existing lines of credit with the Corporation as well as commitments to originate loans to be held for investment at the dates indicated below. Commitments March 31, 2019 June 30, 2018 (In Thousands) Undisbursed loan funds – Construction loans $ 6,109 $ 4,302 Undisbursed lines of credit – Commercial business loans 950 495 Undisbursed lines of credit – Consumer loans 481 503 Commitments to extend credit on loans to be held for investment 4,346 9,352 Total $ 11,886 $ 14,652 The following table provides information regarding the allowance for loan losses for the undisbursed funds and commitments to extend credit on loans to be held for investment for the quarters and nine months ended March 31, 2019 and 2018. For the Quarters Ended For the Nine Months Ended (In Thousands) 2019 2018 2019 2018 Balance, beginning of the period $ 150 $ 188 $ 157 $ 277 Provision (recovery) 1 (29 ) (6 ) (118 ) Balance, end of the period $ 151 $ 159 $ 151 $ 159 In accordance with ASC 815, “Derivatives and Hedging,” and interpretations of the Derivatives Implementation Group of the FASB, the fair value of the commitments to extend credit on loans to be held for sale, loan sale commitments, to be announced (“TBA”) MBS trades, put option contracts and call option contracts are recorded at fair value on the Condensed Consolidated Statements of Financial Condition. At March 31, 2019, $240,000 was included in other assets and $224,000 was included in other liabilities; at June 30, 2018, $849,000 was included in other assets and $464,000 was included in other liabilities. The Corporation does not apply hedge accounting to its derivative financial instruments; therefore, all changes in fair value are recorded in earnings. The net impact of derivative financial instruments recorded within the gain on sale of loans contained in the Condensed Consolidated Statements of Operations during the quarters and nine months ended March 31, 2019 and 2018 was as follows: For the Quarters Ended For the Nine Months Ended Derivative Financial Instruments 2019 2018 2019 2018 (In Thousands) Commitments to extend credit on loans to be held for sale $ (264 ) $ 266 $ (585 ) $ 173 Mandatory loan sale commitments and TBA 465 (281 ) 216 (1,072 ) Option contracts, net — — — (37 ) Total net gain (loss) $ 201 $ (15 ) $ (369 ) $ (936 ) The outstanding derivative financial instruments and other loan sale agreements at the dates indicated were as follows: March 31, 2019 June 30, 2018 Derivative Financial Instruments Amount Fair Amount Fair (In Thousands) Commitments to extend credit on loans to be held for sale (1) $ 12,211 $ 240 $ 56,906 $ 825 Best efforts loan sale commitments (10,212 ) — (29,502 ) — Mandatory loan sale commitments and TBA MBS trades (28,817 ) (224 ) (117,759 ) (440 ) Total $ (26,818 ) $ 16 $ (90,355 ) $ 385 (1) Net of 18.6% at March 31, 2019 and 24.7% at June 30, 2018 of commitments which management has estimated may not fund. Occasionally, the Corporation is required to repurchase loans sold to Freddie Mac, Fannie Mae or other institutional investors if it is determined that such loans do not meet the credit requirements of the investor, or if one of the parties involved in the loan misrepresented pertinent facts, committed fraud, or if such loans were 90-days past due within 120 days of the loan funding date. During the third quarter of fiscal 2019, the Corporation repurchased two loans totaling $446,000 pursuant to the recourse/repurchase covenants contained in the loan sale agreements. In comparison, the Corporation repurchased two loans totaling $602,000 from investors during the third quarter of fiscal 2018. During the first nine months of fiscal 2019, the Corporation repurchased five loans totaling $699,000, including two loans that were fully charged off ($25,000). In comparison, the Corporation repurchased two loans totaling $602,000 from investors during the first nine months of fiscal 2018. Additional repurchase requests may have been settled that did not result in the repurchase of the loan itself. The primary reasons for honoring the repurchase requests are borrower fraud, undisclosed liabilities on borrower applications, and documentation, verification and appraisal disputes. For the third quarters of fiscal 2019 and 2018, the Corporation did not record any provision for the recourse liability and did not settle any claims. For the first nine months of fiscal 2019 and 2018, the Corporation recorded a $33,000 recovery and a $22,000 recovery from the recourse liability, respectively, and did not settle any claims. As of March 31, 2019, the total recourse reserve for loans sold that are subject to repurchase decreased to $250,000, as compared to $283,000 at June 30, 2018 and $283,000 at March 31, 2018. Beginning in 2008, in connection with the downturn in the real estate market, the Corporation implemented tighter underwriting standards to reduce potential loan repurchase requests, including requiring higher credit scores, generally lower debt-to-income ratios, and verification of income and assets, among other criteria. Despite management’s diligent estimate of the recourse reserve, the Corporation is still subject to risks and uncertainties associated with potentially higher loan repurchase claims from investors, and there are no assurances that the current recourse reserve will be sufficient to cover all future recourse claims. The following table shows the summary of the recourse liability for the quarters and nine months ended March 31, 2019 and 2018: For the Quarters Ended For the Nine Months Ended Recourse Liability 2019 2018 2019 2018 (In Thousands) Balance, beginning of the period $ 250 $ 283 $ 283 $ 305 Recovery from recourse liability — — (33 ) (22 ) Net settlements in lieu of loan repurchases — — — — Balance, end of the period $ 250 $ 283 $ 250 $ 283 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 8: Fair Value of Financial Instruments The Corporation adopted ASC 820, “Fair Value Measurements and Disclosures,” and elected the fair value option pursuant to ASC 825, “Financial Instruments” on loans originated for sale by PBM. ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 825 permits entities to elect to measure many financial instruments and certain other assets and liabilities at fair value on an instrument-by-instrument basis (the “Fair Value Option”) at specified election dates. At each subsequent reporting date, an entity is required to report unrealized gains and losses on items in earnings for which the fair value option has been elected. The objective of the Fair Value Option is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. The following table describes the difference at the dates indicated between the aggregate fair value and the aggregate unpaid principal balance of loans held for investment at fair value and loans held for sale at fair value: (In Thousands) Aggregate Fair Value Aggregate Unpaid Principal Balance Net Unrealized Gain (Loss) As of March 31, 2019: Loans held for investment, at fair value $ 5,239 $ 5,417 $ (178 ) Loans held for sale, at fair value $ 30,500 $ 29,565 $ 935 As of June 30, 2018: Loans held for investment, at fair value $ 5,234 $ 5,546 $ (312 ) Loans held for sale, at fair value $ 96,298 $ 93,791 $ 2,507 ASC 820-10-65-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly,” provides additional guidance for estimating fair value in accordance with ASC 820, “Fair Value Measurements,” when the volume and level of activity for the asset or liability have significantly decreased. ASC 820 establishes a three-level valuation hierarchy that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of inputs are defined as follows: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Corporation has the ability to access at the measurement date. Level 2 - Observable inputs other than Level 1 such as: quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated to observable market data for substantially the full term of the asset or liability. Level 3 - Unobservable inputs for the asset or liability that use significant assumptions, including assumptions of risks. These unobservable assumptions reflect the Corporation’s estimate of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of pricing models, discounted cash flow models and similar techniques. ASC 820 requires the Corporation to maximize the use of observable inputs and minimize the use of unobservable inputs. If a financial instrument uses inputs that fall in different levels of the hierarchy, the instrument will be categorized based upon the lowest level of input that is significant to the fair value calculation. The Corporation’s financial assets and liabilities measured at fair value on a recurring basis consist of investment securities available for sale, loans held for investment at fair value, loans held for sale at fair value, interest-only strips and derivative financial instruments; while non-performing loans, mortgage servicing assets ("MSA") and real estate owned are measured at fair value on a nonrecurring basis. Investment securities - available for sale are primarily comprised of U.S. government agency MBS, U.S. government sponsored enterprise MBS and privately issued CMO. The Corporation utilizes quoted prices in active markets for similar securities for its fair value measurement of MBS (Level 2) and broker price indications for similar securities in non-active markets for its fair value measurement of the CMO (Level 3). Derivative financial instruments are comprised of commitments to extend credit on loans to be held for sale, mandatory loan sale commitments, TBA MBS trades and option contracts. The fair value of TBA MBS trades is determined using quoted secondary-market prices (Level 2). The fair values of other derivative financial instruments are determined by quoted prices for a similar commitment or commitments, adjusted for the specific attributes of each commitment (Level 3). Loans held for investment at fair value are primarily single-family loans which have been transferred from loans held for sale. The fair value is determined by the management estimates of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for the interest rate characteristics of each loan (Level 3). Loans held for sale at fair value are primarily single-family loans. The fair value is determined, when possible, using quoted secondary-market prices such as mandatory loan sale commitments. If no such quoted price exists, the fair value of a loan is determined by quoted prices for a similar loan or loans, adjusted for the specific attributes of each loan (Level 2). Non-performing loans are loans which are inadequately protected by the current net worth and paying capacity of the borrowers or of the collateral pledged. The non-performing loans are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. The fair value of a non-performing loan is determined based on an observable market price or current appraised value of the underlying collateral. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the borrower. For non-performing loans which are restructured loans, the fair value is derived from discounted cash flow analysis (Level 3), except those which are in the process of foreclosure or 90 days delinquent for which the fair value is derived from the appraised value of its collateral (Level 2). For other non-performing loans which are not restructured loans, other than non-performing commercial real estate loans, the fair value is derived from relative value analysis: historical experience and management estimates by loan type for which collectively evaluated allowances are assigned (Level 3); or the appraised value of its collateral for loans which are in the process of foreclosure or where borrowers file bankruptcy (Level 2). For non-performing commercial real estate loans, the fair value is derived from the appraised value of its collateral (Level 2). Non-performing loans are reviewed and evaluated on at least a quarterly basis for additional allowance and adjusted accordingly, based on the same factors identified above. This loss is not recorded directly as an adjustment to current earnings or other comprehensive income (loss), but rather as a component in determining the overall adequacy of the allowance for loan losses. These adjustments to the estimated fair value of non-performing loans may result in increases or decreases to the provision for loan losses recorded in current earnings. The Corporation uses the amortization method for its MSA, which amortizes the MSA in proportion to and over the period of estimated net servicing income and assesses the MSA for impairment based on fair value at each reporting date. The fair value of the MSA is derived using the present value method; which includes a third party’s prepayment projections of similar instruments, weighted-average coupon rates, estimated servicing costs and discount interest rates (Level 3). The rights to future income from serviced loans that exceed contractually specified servicing fees are recorded as interest-only strips. The fair value of interest-only strips is derived using the same assumptions that are used to value the related MSA (Level 3). The fair value of real estate owned is derived from the lower of the appraised value or the listing price, net of estimated selling costs (Level 2). The Corporation’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Corporation’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. The following fair value hierarchy tables present information at the dates indicated about the Corporation’s assets measured at fair value on a recurring basis: Fair Value Measurement at March 31, 2019 Using: (In Thousands) Level 1 Level 2 Level 3 Total Assets: Investment securities - available for sale: U.S. government agency MBS $ — $ 3,796 $ — $ 3,796 U.S. government sponsored enterprise MBS — 2,198 — 2,198 Private issue CMO — — 300 300 Investment securities - available for sale — 5,994 300 6,294 Loans held for investment, at fair value — — 5,239 5,239 Loans held for sale, at fair value — 30,500 — 30,500 Interest-only strips — — 18 18 Derivative assets: Commitments to extend credit on loans to be held for sale — — 240 240 Derivative assets — — 240 240 Total assets $ — $ 36,494 $ 5,797 $ 42,291 Liabilities: Derivative liabilities: Mandatory loan sale commitments $ — $ — $ 7 $ 7 TBA MBS trades — 217 — 217 Derivative liabilities — 217 7 224 Total liabilities $ — $ 217 $ 7 $ 224 Fair Value Measurement at June 30, 2018 Using: (In Thousands) Level 1 Level 2 Level 3 Total Assets: Investment securities - available for sale: U.S. government agency MBS $ — $ 4,384 $ — $ 4,384 U.S. government sponsored enterprise MBS — 2,762 — 2,762 Private issue CMO — — 350 350 Investment securities - available for sale — 7,146 350 7,496 Loans held for investment, at fair value — — 5,234 5,234 Loans held for sale, at fair value — 96,298 — 96,298 Interest-only strips — — 23 23 Derivative assets: Commitments to extend credit on loans to be held for sale — — 849 849 Derivative assets — — 849 849 Total assets $ — $ 103,444 $ 6,456 $ 109,900 Liabilities: Derivative liabilities: Commitments to extend credit on loans to be held for sale $ — $ — $ 24 $ 24 Mandatory loan sale commitments — — 32 32 TBA MBS trades — 408 — 408 Derivative liabilities — 408 56 464 Total liabilities $ — $ 408 $ 56 $ 464 The following tables summarize reconciliations of the beginning and ending balances during the periods shown of recurring fair value measurements recognized in the Condensed Consolidated Statements of Financial Condition using Level 3 inputs: For the Quarter Ended March 31, 2019 Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) (In Thousands) Private Issue CMO Loans Held (1) Interest- Only Loan Commitments (2) Mandatory (3) Total Beginning balance at December 31, 2018 $ 310 $ 4,995 $ 21 $ 504 $ (9 ) $ 5,821 Total gains or losses (realized/unrealized): Included in earnings — 87 — (264 ) (3 ) (180 ) Included in other comprehensive loss 1 — (3 ) — — (2 ) Purchases — — — — — — Issuances — — — — — — Settlements (11 ) (34 ) — — 5 (40 ) Transfers in and/or out of Level 3 — 191 — — — 191 Ending balance at March 31, 2019 $ 300 $ 5,239 $ 18 $ 240 $ (7 ) $ 5,790 (1) The valuation of loans held for investment at fair value includes the management estimates of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for the interest rate characteristics of each loan. (2) Consists of commitments to extend credit on loans to be held for sale. (3) Consists of mandatory loan sale commitments. For the Quarter Ended March 31, 2018 Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) (In Thousands) Private Issue CMO Loans Held (1) Interest- Only Strips Loan Commit- ments to Originate (2) Manda- tory Commit- ments (3) Total Beginning balance at December 31, 2017 $ 419 $ 5,157 $ 26 $ 716 $ (24 ) $ 6,294 Total gains or losses (realized/unrealized): Included in earnings — (118 ) — 266 (26 ) 122 Included in other comprehensive loss (2 ) — (2 ) — — (4 ) Purchases — — — — — — Issuances — — — — — — Settlements (22 ) (43 ) — — — (65 ) Transfers in and/or out of Level 3 — — — — — — Ending balance at March 31, 2018 $ 395 $ 4,996 $ 24 $ 982 $ (50 ) $ 6,347 (1) The valuation of loans held for investment at fair value includes the management estimates of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for the interest rate characteristics of each loan. (2) Consists of commitments to extend credit on loans to be held for sale. (3) Consists of mandatory loan sale commitments. For the Nine Months Ended March 31, 2019 Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) (In Thousands) Private Issue CMO Loans Held (1) Interest- Only Loan Commitments (2) Mandatory Commitments (3) Total Beginning balance at June 30, 2018 $ 350 $ 5,234 $ 23 $ 825 $ (32 ) $ 6,400 Total gains or losses (realized/unrealized): Included in earnings — 133 — (585 ) 18 (434 ) Included in other comprehensive loss — — (5 ) — — (5 ) Purchases — — — — — — Issuances — — — — — — Settlements (50 ) (789 ) — — 7 (832 ) Transfers in and/or out of Level 3 — 661 — — — 661 Ending balance at March 31, 2019 $ 300 $ 5,239 $ 18 $ 240 $ (7 ) $ 5,790 (1) The valuation of loans held for investment at fair value includes the management estimates of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for the interest rate characteristics of each loan. (2) Consists of commitments to extend credit on loans to be held for sale. (3) Consists of mandatory loan sale commitments. For the Nine Months Ended March 31, 2018 Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) (In Thousands) Private Issue CMO Loans Held (1) Interest- Only Strips Loan Commit- ments to Originate (2) Manda- tory Commit- ments (3) Option Contracts Total Beginning balance at June 30, 2017 $ 461 $ 6,445 $ 31 $ 809 $ 47 $ 37 $ 7,830 Total gains or losses (realized/unrealized): Included in earnings — (72 ) — 173 (99 ) (37 ) (35 ) Included in other comprehensive loss (1 ) — (7 ) — — — (8 ) Purchases — — — — — — — Issuances — — — — — — — Settlements (65 ) (1,899 ) — — 2 — (1,962 ) Transfers in and/or out of Level 3 — 522 — — — — 522 Ending balance at March 31, 2018 $ 395 $ 4,996 $ 24 $ 982 $ (50 ) $ — $ 6,347 (1) The valuation of loans held for investment at fair value includes the management estimates of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for the interest rate characteristics of each loan. (2) Consists of commitments to extend credit on loans to be held for sale. (3) Consists of mandatory loan sale commitments. The following fair value hierarchy tables present information about the Corporation’s assets measured at fair value at the dates indicated on a nonrecurring basis: Fair Value Measurement at March 31, 2019 Using: (In Thousands) Level 1 Level 2 Level 3 Total Non-performing loans $ — $ 4,541 $ 1,574 $ 6,115 Mortgage servicing assets — — 456 456 Real estate owned, net — — — — Total $ — $ 4,541 $ 2,030 $ 6,571 Fair Value Measurement at June 30, 2018 Using: (In Thousands) Level 1 Level 2 Level 3 Total Non-performing loans $ — $ 4,845 $ 1,212 $ 6,057 Mortgage servicing assets — — 135 135 Real estate owned, net — 906 — 906 Total $ — $ 5,751 $ 1,347 $ 7,098 The following table presents additional information about valuation techniques and inputs used for assets and liabilities, including derivative financial instruments, which are measured at fair value and categorized within Level 3 as of March 31, 2019: (Dollars In Thousands) Fair Value Valuation Techniques Unobservable Inputs Range (1) (Weighted Average) Impact to Valuation from an Increase in Inputs (2) Assets: Securities available - for sale: Private issue CMO $ 300 Market comparable pricing Comparability adjustment 1.2% – 1.3% (1.2%) Increase Loans held for investment, $ 5,239 Relative value Broker quotes 98.3% – 105.2% Increase Non-performing loans $ 703 Discounted cash flow Default rates 5.0% Decrease Non-performing loans $ 871 Relative value analysis Loss severity 20.0% - 30.0% (21.3%) Decrease Mortgage servicing assets $ 456 Discounted cash flow Prepayment speed (CPR) 9.7% - 60.0% (21.7%) Decrease Interest-only strips $ 18 Discounted cash flow Prepayment speed (CPR) 18.7% - 35.9% (34.3%) Decrease Commitments to extend credit on loans to be held for sale $ 240 Relative value analysis TBA-MBS broker quotes Fall-out ratio (3) 99.0% – 103.4% Increase Liabilities: Mandatory loan sale commitments $ 7 Relative value analysis TBA MBS broker quotes Roll-forward costs (4) 102.3% - 105.7% Increase (1) The range is based on the estimated fair values and management estimates. (2) Unless otherwise noted, this column represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs in isolation could result in significantly higher or lower fair value measurements. (3) The percentage of commitments to extend credit on loans to be held for sale which management has estimated may not fund. (4) An estimated cost to roll forward the mandatory loan sale commitments which management has estimated may not be delivered to the corresponding investors in a timely manner. The significant unobservable inputs used in the fair value measurement of the Corporation’s assets and liabilities include the following: prepayment speeds, discount rates, MBS – TBA quotes, estimated fallout ratios, broker quotes and roll-forward costs, among others. Significant increases or decreases in any of these inputs in isolation could result in significantly lower or higher fair value measurement. The various unobservable inputs used to determine valuations may have similar or diverging impacts on valuation. The carrying amount and fair value of the Corporation’s other financial instruments as of March 31, 2019 and June 30, 2018 was as follows: March 31, 2019 (In Thousands) Carrying Fair Level 1 Level 2 Level 3 Financial assets: Investment securities - held to maturity $ 102,510 $ 103,056 — $ 103,056 $ — Loans held for investment, not recorded at fair value $ 878,315 $ 857,399 — — $ 857,399 FHLB – San Francisco stock $ 8,199 $ 8,199 — $ 8,199 — Financial liabilities: Deposits $ 876,884 $ 847,875 — — $ 847,875 Borrowings $ 101,121 $ 101,274 — — $ 101,274 June 30, 2018 (In Thousands) Carrying Fair Level 1 Level 2 Level 3 Financial assets: Investment securities - held to maturity $ 87,813 $ 87,239 — $ 87,239 — Loans held for investment, not recorded at fair value $ 897,451 $ 873,112 — — $ 873,112 FHLB – San Francisco stock $ 8,199 $ 8,199 — $ 8,199 — Financial liabilities: Deposits $ 907,598 $ 877,641 — — $ 877,641 Borrowings $ 126,163 $ 123,778 — — $ 123,778 Investment securities - held to maturity: The investment securities - held to maturity consist of time deposits at CRA qualified minority financial institutions, U.S. SBA securities and U.S. government sponsored enterprise MBS. Due to the short-term nature of the time deposits, the principal balance approximated fair value (Level 2). For the MBS and the U.S. SBA securities, the Corporation utilizes quoted prices in active markets for similar securities for its fair value measurement (Level 2). Loans held for investment, not recorded at fair value: For loans that reprice frequently at market rates, the carrying amount approximates the fair value. For fixed-rate loans, the fair value is determined by either (i) discounting the estimated future cash flows of such loans over their estimated remaining contractual maturities using a current interest rate at which such loans would be made to borrowers, or (ii) quoted market prices. FHLB – San Francisco stock: The carrying amount reported for FHLB – San Francisco stock approximates fair value. When redeemed, the Corporation will receive an amount equal to the par value of the stock. Deposits: The fair value of time deposits is estimated using a discounted cash flow calculation. The discount rate is based upon rates currently offered for deposits of similar remaining maturities. The fair value of transaction accounts (checking, money market and savings accounts) is estimated using a discounted cash flow calculation and management estimates of current market conditions. Borrowings: The fair value of borrowings has been estimated using a discounted cash flow calculation. The discount rate on such borrowings is based upon rates currently offered for borrowings of similar remaining maturities. The Corporation has various processes and controls in place to ensure that fair value is reasonably estimated. The Corporation generally determines fair value of their Level 3 assets and liabilities by using internally developed models which primarily utilize discounted cash flow techniques and prices obtained from independent management services or brokers. The Corporation performs due diligence procedures over third-party pricing service providers in order to support their use in the valuation process. While the Corporation believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. During the quarter ended March 31, 2019, there were no significant changes to the Corporation’s valuation techniques that had, or are expected to have, a material impact on its consolidated financial position or results of operations. |
Incentive Plans
Incentive Plans | 9 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Incentive Plans | Note 9: Incentive Plans As of March 31, 2019, the Corporation had two active share-based compensation plans, which are described below. These plans are the 2013 Equity Incentive Plan (“2013 Plan”) and the 2010 Equity Incentive Plan (“2010 Plan”). Additionally, the Corporation had one inactive share-based compensation plan - the 2006 Equity Incentive Plan (“2006 Plan”) where no new awards can be granted but outstanding grants remain eligible for exercise. For the quarters ended March 31, 2019 and 2018, the compensation cost for these plans was $37,000 and $292,000, respectively. The income tax benefit (deficiencies) recognized in the Condensed Consolidated Statements of Operations per adoption of ASU 2016-09 for share-based compensation plans for the quarters ended March 31, 2019 and 2018 was $(10,000) and $186,000, respectively. For the first nine months ended March 31, 2019 and 2018, the compensation cost for these plans was $767,000 and $816,000, respectively. The income tax benefit recognized in the Condensed Consolidated Statements of Operations per adoption of ASU 2016-09 for share-based compensation plans for the nine months ended March 31, 2019 and 2018 was $114,000 and $206,000, respectively. Equity Incentive Plans. Equity Incentive Plans - Stock Options. The fair value of each option grant is estimated on the date of the grant using the Black-Scholes option valuation model with the following assumptions. The expected volatility is based on implied volatility from historical common stock closing prices for the prior 84 months. The expected dividend yield is based on the most recent quarterly dividend on an annualized basis. The expected term is based on the historical experience of all fully vested stock option grants and is reviewed annually. The risk-free interest rate is based on the U.S. Treasury note rate with a term similar to the underlying stock option on the particular grant date. During the third quarter of fiscal 2019, no options were granted or forfeited, and 11,250 options were exercised. This compares to the third quarter of fiscal 2018 when no options were granted or forfeited, and 56,500 options were exercised. During the first nine months of fiscal 2019, no options were granted or forfeited, and 31,250 options were exercised. This compares to the first nine months of fiscal 2018 when no options were granted, and 83,750 options were exercised and 2,500 options were forfeited. As of March 31, 2019 and 2018, there were 147,500 stock options available for future grants under the Plans at both dates. The following tables summarize the stock option activity in the Plans for the quarter and nine months ended March 31, 2019. For the Quarter Ended March 31, 2019 Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value ($000) Outstanding at December 31, 2018 509,000 $ 12.83 Granted — $ — Exercised (11,250 ) $ 14.59 Forfeited — $ — Outstanding at March 31, 2019 497,750 $ 12.79 4.53 $ 3,551 Vested and expected to vest at March 31, 2019 495,150 $ 12.75 4.52 $ 3,550 Exercisable at March 31, 2019 484,750 $ 12.60 4.45 $ 3,546 For the Nine Months Ended March 31, 2019 Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value ($000) Outstanding at June 30, 2018 529,000 $ 12.77 Granted — $ — Exercised (31,250 ) $ 12.49 Forfeited — $ — Outstanding at March 31, 2019 497,750 $ 12.79 4.53 $ 3,551 Vested and expected to vest at March 31, 2019 495,150 $ 12.75 4.52 $ 3,550 Exercisable at March 31, 2019 484,750 $ 12.60 4.45 $ 3,546 As of March 31, 2019 and 2018, there was $68,000 and $503,000 of unrecognized compensation expense, respectively, related to unvested share-based compensation arrangements under the Plans. The expense is expected to be recognized over a weighted-average period of 1.5 years and 1.0 years, respectively. The forfeiture rate during the first nine months of fiscal 2019 and 2018 was 20 percent for both periods, and was calculated by using the historical forfeiture experience of stock option grants and is reviewed annually. Equity Incentive Plans – Restricted Stock. There were no restricted stock awards and no forfeitures, while there were 3,000 shares of restricted stock vested in the third quarter of fiscal 2019. This compares to no restricted stock activity in the third quarter of fiscal 2018, other than the vesting of 10,500 shares. For the first nine months of fiscal 2019, there was no restricted stock activity, other than the vesting of 89,500 shares. This compares to no restricted stock activity, other than the vesting of 10,500 shares and the forfeiture of 2,000 shares for the first nine months of fiscal 2018. As of March 31, 2019 and 2018, there were 267,750 shares of restricted stock available for future awards under the Plans at both dates. The following tables summarize the unvested restricted stock activity for the quarter and nine months ended March 31, 2019. For the Quarter Ended Unvested Shares Shares Weighted- Award Date Fair Value Unvested at December 31, 2018 12,000 $ 18.31 Granted — $ — Vested (3,000 ) $ 18.90 Forfeited — $ — Unvested at March 31, 2019 9,000 $ 18.11 Expected to vest at March 31, 2019 7,200 $ 18.11 For the Nine Months Ended Unvested Shares Shares Weighted- Award Date Fair Value Unvested at June 30, 2018 98,500 $ 14.35 Granted — $ — Vested (89,500 ) $ 13.97 Forfeited — $ — Unvested at March 31, 2019 9,000 $ 18.11 Expected to vest at March 31, 2019 7,200 $ 18.11 As of March 31, 2019 and 2018, the unrecognized compensation expense was $131,000 and $687,000, respectively, related to unvested share-based compensation arrangements under the Plans, and reported as a reduction to stockholders’ equity. This expense is expected to be recognized over a weighted-average period of 1.5 years and 1.2 years, respectively. Similar to stock options, a forfeiture rate of 20 percent has been applied for the restricted stock compensation expense calculations in the first nine months of fiscal 2019 and 2018. |
Reclassification Adjustment of
Reclassification Adjustment of Accumulated Other Comprehensive Income ("AOCI") | 9 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Reclassification Adjustment of Accumulated Other Comprehensive Income ("AOCI") | Note 10: Reclassification Adjustment of Accumulated Other Comprehensive Income ("AOCI") The following tables provide the changes in AOCI by component for the quarters and nine months ended March 31, 2019 and 2018. For the Quarter Ended March 31, 2019 Unrealized gains and losses on (In Thousands) Investment securities Interest- Total Beginning balance at December 31, 2018 $ 154 $ 15 $ 169 Other comprehensive loss before reclassifications (4 ) (2 ) (6 ) Amount reclassified from accumulated other comprehensive income — — — Net other comprehensive loss (4 ) (2 ) (6 ) Ending balance at March 31, 2019 $ 150 $ 13 $ 163 For the Quarter Ended March 31, 2018 Unrealized gains and losses on (In Thousands) Investment securities Interest- Total Beginning balance at December 31, 2017 $ 195 $ 15 $ 210 Other comprehensive loss before reclassifications (20 ) (2 ) (22 ) Amount reclassified from accumulated other comprehensive income (2 ) — (2 ) Net other comprehensive loss (22 ) (2 ) (24 ) Ending balance at March 31, 2018 $ 173 $ 13 $ 186 For the Nine Months Ended March 31, 2019 Unrealized gains and losses on (In Thousands) Investment securities Interest- Total Beginning balance at June 30, 2018 $ 194 $ 16 $ 210 Other comprehensive loss before reclassifications (44 ) (3 ) (47 ) Amount reclassified from accumulated other comprehensive income — — — Net other comprehensive loss (44 ) (3 ) (47 ) Ending balance at March 31, 2019 $ 150 $ 13 $ 163 For the Nine Months Ended March 31, 2018 Unrealized gains and losses on (In Thousands) Investment securities Interest- Total Beginning balance at June 30, 2017 $ 211 $ 18 $ 229 Other comprehensive loss before reclassifications (78 ) (8 ) (86 ) Amount reclassified from accumulated other comprehensive income 40 3 43 Net other comprehensive loss (38 ) (5 ) (43 ) Ending balance at March 31, 2018 $ 173 $ 13 $ 186 |
Offsetting Derivative and Other
Offsetting Derivative and Other Financial Instruments | 9 Months Ended |
Mar. 31, 2019 | |
Offsetting [Abstract] | |
Offsetting Derivative and Other Financial Instruments | Note 11: Offsetting Derivative and Other Financial Instruments The Corporation’s derivative transactions are generally governed by International Swaps and Derivatives Association Master Agreements and similar arrangements, which include provisions governing the setoff of assets and liabilities between the parties. When the Corporation has more than one outstanding derivative transaction with a single counterparty, the setoff provisions contained within these agreements generally allow the non-defaulting party the right to reduce its liability to the defaulting party by amounts eligible for setoff, including the collateral received as well as eligible offsetting transactions with that counterparty, irrespective of the currency, place of payment, or booking office. The Corporation’s policy is to present its derivative assets and derivative liabilities on the Condensed Consolidated Statements of Financial Condition on a net basis. The derivative assets and liabilities are comprised of mandatory loan sale commitments, TBA MBS trades and option contracts. The following tables present the gross and net amounts of derivative assets and liabilities and other financial instruments as reported in the Corporation’s Condensed Consolidated Statement of Financial Condition, and the gross amount not offset in the Corporation’s Condensed Consolidated Statement of Financial Condition as of the dates indicated. As of March 31, 2019: Gross Net Amount Amount Offset in the of Assets in Gross Amount Not Offset in Condensed the Condensed the Condensed Consolidated Gross Consolidated Consolidated Statements of Financial Condition Amount of Statements Statements Cash Recognized of Financial of Financial Financial Collateral Net (In Thousands) Assets Condition Condition Instruments Received Amount Assets Derivatives $ — $ — $ — $ — $ — $ — Total $ — $ — $ — $ — $ — $ — Gross Net Amount Amount Offset in the of Liabilities in Gross Amount Not Offset in Condensed the Condensed the Condensed Consolidated Gross Consolidated Consolidated Statements of Financial Condition Amount of Statements Statements Cash Recognized of Financial of Financial Financial Collateral Net (In Thousands) Liabilities Condition Condition Instruments Received Amount Liabilities Derivatives $ 224 $ — $ 224 $ — $ — $ 224 Total $ 224 $ — $ 224 $ — $ — $ 224 As of June 30, 2018: Gross Net Amount Amount Offset in the of Assets in Gross Amount Not Offset in Condensed the Condensed the Condensed Consolidated Gross Consolidated Consolidated Statements of Financial Condition Amount of Statements Statements Cash Recognized of Financial of Financial Financial Collateral Net (In Thousands) Assets Condition Condition Instruments Received Amount Assets Derivatives $ — $ — $ — $ — $ — $ — Total $ — $ — $ — $ — $ — $ — Gross Net Amount Amount Offset in the of Liabilities in Gross Amount Not Offset in Condensed the Condensed the Condensed Consolidated Gross Consolidated Consolidated Statements of Financial Condition Amount of Statements Statements Cash Recognized of Financial of Financial Financial Collateral Net (In Thousands) Liabilities Condition Condition Instruments Received Amount Liabilities Derivatives $ 440 $ — $ 440 $ — $ — $ 440 Total $ 440 $ — $ 440 $ — $ — $ 440 |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 9 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue From Contracts With Customers | Note 12: Revenue From Contracts With Customers In accordance with ASC 606, revenues are recognized when goods or services are transferred to the customer in exchange for the consideration the Company expects to be entitled to receive. The largest portion of the Company's revenue is from interest income, which is not in the scope of ASC 606. All of the Company's revenue from contracts with customers in the scope of ASC 606 is recognized in non-interest income. If a contract is determined to be within the scope of ASC 606, the Company recognizes revenue as it satisfies a performance obligation. Payments from customers are generally collected at the time services are rendered, monthly, or quarterly. For contracts with customers within the scope of ASC 606, revenue is either earned at a point in time or revenue is earned over time. Examples of revenue earned at a point in time are automated teller machine ("ATM") transaction fees, wire transfer fees, overdraft fees and interchange fees. Revenue is primarily based on the number and type of transactions that are generally derived from transactional information accumulated by our systems and is recognized immediately as the transactions occur or upon providing the service to complete the customer's transaction. The Company is generally the principal in these contracts, with the exception of interchanges fees, in which case the Company is acting as the agent and records revenue net of expenses paid to the principal. Examples of revenue earned over time, which generally occur on a monthly basis, are deposit account maintenance fees, investment advisory fees, merchant revenue, trust and investment management fees and safe deposit box fees. Revenue is generally derived from transactional information accumulated by our systems or those of third-parties and is recognized as the related transactions occur or services are rendered to the customer. Disaggregation of Revenue: The following table includes the Company's non-interest income disaggregated by type of services for the quarters and nine months ended March 31, 2019 and 2018: For the Quarters Ended For the Nine Months Ended Type of Services 2019 2018 2019 2018 (In Thousands) Asset management fees $ 77 $ 87 $ 215 $ 294 Debit card and ATM fees 395 394 1,227 1,190 Deposit related fees 484 549 1,522 1,659 Loan related fees 12 (6 ) 25 (42 ) BOLI (1) 47 65 140 199 Loan servicing fees (1) 262 493 863 1,173 Net gain on sale of loans (1) 1,719 3,597 7,114 12,761 Other 56 31 90 69 Total non-interest income $ 3,052 $ 5,210 $ 11,196 $ 17,303 (1) Not in scope of ASC 606. For the quarters and nine months ended March 31, 2019 and 2018, substantially all of the Company's revenues within the scope of ASC 606 are for performance obligations satisfied at a specified date. Revenues recognized in scope of ASC 606: Asset management fees Debit card and ATM fees Deposit related fees Loan related fees Other |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13: Income Taxes On December 22, 2017, the U.S. Government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act amends the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. For businesses, the Tax Act reduces the corporate federal tax income rate from a maximum of 35 percent to a flat 21 percent. The federal corporate tax rate reduction was effective January 1, 2018. Since the Corporation has a fiscal year end of June 30 th Under generally accepted accounting principles, the Corporation uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. At June 30, 2017, the Corporation’s deferred tax assets and liabilities were determined based on the then-current enacted federal tax rate of 35 percent. As a result of the reduction in the federal corporate income tax rate under the Tax Act, the Corporation revalued its deferred tax assets and liabilities at December 31, 2017. Deferred tax assets and liabilities realized in fiscal year 2018 were re-measured using the aforementioned blended rate. All remaining deferred tax assets and liabilities were re-measured using the new statutory federal rate of 21 percent. These re-measurements collectively resulted in a discrete tax expense of $1.9 million that was recognized in the first nine months of fiscal 2018. The estimated combined federal and state statutory tax rates, before discrete items, for fiscal years 2019 and 2018 are as follows: Statutory Tax Rates FY2019 FY2018 Federal Tax Rate 21.00 % 28.06 % State Tax Rate 10.84 % 10.84 % Combined Statutory Tax Rate (1) 29.56 % 35.86 % (1) The combined statutory tax rate is net of the federal tax benefit for the state tax deduction. The Corporation’s effective tax rate may differ from the estimated statutory tax rates described above due to discrete items such as further adjustments to net deferred tax assets, excess tax benefits derived from stock option exercises and non-taxable earnings from bank owned life insurance, among other items. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14: Subsequent Event On April 30, 2019, the Corporation announced that the Corporation’s Board of Directors declared a quarterly cash dividend of $0.14 per share. Shareholders of the Corporation’s common stock at the close of business on May 21, 2019 will be entitled to receive the cash dividend. The cash dividend will be payable on June 11, 2019. On April 30, 2019, the Corporation announced that the Corporation’s Board of Directors authorized a one-year extension of the April 2018 stock repurchase plan. To date, a total of 23,748 shares of the Corporation’s common stock have been purchased under the plan, leaving 349,252 shares of the Corporation’s common stock authorized for purchase from time to time in the open market or in privately negotiated transactions prior to the expiration of the extension on April 26, 2020. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim condensed consolidated financial statements included herein reflect all adjustments which are, in the opinion of management, necessary to present a fair statement of the results of operations for the interim periods presented. All such adjustments are of a normal, recurring nature. The condensed consolidated statement of financial condition at June 30, 2018 is derived from the audited consolidated financial statements of Provident Financial Holdings, Inc. and its wholly-owned subsidiary, Provident Savings Bank, F.S.B. (the “Bank”) (collectively, the “Corporation”). Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) with respect to interim financial reporting. It is recommended that these unaudited interim condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended June 30, 2018. The results of operations for the quarter and nine months ended March 31, 2019 are not necessarily indicative of results that may be expected for the entire fiscal year ending June 30, 2019. |
Accounting Standard Updates ("ASU") | Accounting Standard Updates (“ASU”) There have been no accounting standard updates or changes in the status of their adoption that are significant to the Corporation as previously disclosed in Note 1 of the Corporation's Annual Report on Form 10-K for the year ended June 30, 2018, other than: ASU 2014-09: In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, "Revenue from Contracts with Customers," which created FASB Accounting Standards Codification (ASC) Topic 606 ("ASC 606"). ASC 606 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASC 606 was effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2017. The Corporation adopted ASC 606 on July 1, 2018 using the modified retrospective approach. Therefore, the comparative information has not been adjusted and continues to be reported under superseded ASC 605. There was no cumulative effect adjustment as of July 1, 2018, and there were no material changes to the timing or amount of revenue recognized for the nine months ended March 31, 2019; however, additional disclosures were incorporated in the footnotes upon adoption. The majority of the Company's revenue is comprised of interest income from financial assets, which is explicitly excluded from the scope of ASC 606. The Corporation elected to apply the practical expedient pursuant to ASC 606 and therefore does not disclose information about remaining performance obligations that have an original expected term of one year or less and allows the Corporation to expense costs related to obtaining a contract as incurred when the original amortization period would have been one year or less. See Note 12 for additional discussion. ASU 2018-11 In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." This ASU introduces a lessee model that brings most leases on the balance sheet and aligns many of the underlying principles of the new lessor model with those in the new revenue recognition standard, ASC 606, Revenue From Contracts With Customers. The new leases standard represents a wholesale change to lease accounting and will most likely result in significant implementation challenges during the transition period and beyond. This ASU will be effective for annual periods beginning after December 15, 2018 (i.e., calendar periods beginning on January 1, 2019), and interim periods therein, early adoption is permitted. In July 2018, the FASB issued ASU 2018-11, Leases, Targeted Improvements, which allows entities the option of initially applying the new leases standard at the adoption date (such as January 1, 2019, for calendar year- end public business entities) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In January 2019, the FASB issued ASU 2019-01, Codification Improvements. The amendments in this update include the following items: (i) determining the fair value of the underlying asset by lessors that are not manufacturers or dealers; (ii) requiring cash received from lessors from sales-type and direct financing leases to be presented in the cash flow statement within investing activities; and (iii) clarifying interim disclosure requirements. The effective date and transition requirements for the first and second items of this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019 and early adoption is permitted. The effective date and transition requirements for the third item of this ASU are the same as ASU 2016-02. The Corporation plans to adopt these ASUs on July 1, 2019. Management is currently assessing the impact of these ASUs on the Corporation's financial position and results of operations but does not believe that adoption of these ASUs will have a material impact on its consolidated financial statements. ASU 2018-13 In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which modifies disclosure requirements on fair value measurements to improve their effectiveness. The guidance permits entities to consider materiality when evaluating fair value measurement disclosures and, among other modifications, requires certain new disclosures related to Level 3 fair value measurements. The guidance will be effective beginning January 1, 2020, with early adoption permitted. The guidance only affects disclosures in the notes to the consolidated financial statements and will not affect the Corporation’s financial position or results of operations. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | For the Quarters Ended For the Nine Months Ended (In Thousands, Except Earnings Per Share) 2019 2018 2019 2018 Numerator: Net income (loss) – numerator for basic earnings per share and diluted earnings per share - available to common stockholders $ (151 ) $ 1,733 $ 3,630 $ 731 Denominator: Denominator for basic earnings per share: Weighted-average shares 7,507 7,457 7,481 7,573 Effect of dilutive shares: Stock options — 97 60 111 Restricted stock — 62 14 53 Denominator for diluted earnings per share: Adjusted weighted-average shares and assumed conversions 7,507 7,616 7,555 7,737 Basic earnings (loss) per share $ (0.02 ) $ 0.23 $ 0.49 $ 0.10 Diluted earnings (loss) per share $ (0.02 ) $ 0.23 $ 0.48 $ 0.09 |
Operating Segment Reports (Tabl
Operating Segment Reports (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of condensed consolidated statements of operations and total assets for operating segment | For the Quarter Ended March 31, 2019 (In Thousands) Provident Provident Consolidated Net interest income $ 9,431 $ 181 $ 9,612 Provision (recovery) for loan losses 74 (70 ) 4 Net interest income, after provision (recovery) for loan losses 9,357 251 9,608 Non-interest income: Loan servicing and other fees (1) 103 159 262 Gain (loss) on sale of loans, net (2) (1 ) 1,720 1,719 Deposit account fees 471 — 471 Gain on sale and operations of real estate owned acquired in the settlement of loans, net 2 — 2 Card and processing fees 373 — 373 Other 223 2 225 Total non-interest income 1,171 1,881 3,052 Non-interest expense: Salaries and employee benefits 5,002 4,290 9,292 Premises and occupancy 847 439 1,286 Operating and administrative expenses 1,314 1,108 2,422 Total non-interest expense 7,163 5,837 13,000 Income (loss) before income taxes 3,365 (3,705 ) (340 ) Provision (benefit) for income taxes 907 (1,096 ) (189 ) Net income (loss) $ 2,458 $ (2,609 ) $ (151 ) Total assets, end of period $ 1,088,716 $ 30,679 $ 1,119,395 (1) Includes an inter-company charge of $2 credited to PBM by the Bank during the period to compensate PBM for originating loans held for investment. (2) Includes an inter-company charge of $17 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis. For the Quarter Ended March 31, 2018 (In Thousands) Provident Provident Consolidated Net interest income $ 8,750 $ 374 $ 9,124 Recovery from the allowance for loan losses (505 ) — (505 ) Net interest income, after recovery from the allowance for loan losses 9,255 374 9,629 Non-interest income: Loan servicing and other fees (1) 313 180 493 Gain (loss) on sale of loans, net (2) (1 ) 3,598 3,597 Deposit account fees 529 — 529 Loss on sale and operations of real estate owned acquired in the settlement of loans, net (19 ) — (19 ) Card and processing fees 372 — 372 Other 238 — 238 Total non-interest income 1,432 3,778 5,210 Non-interest expense: Salaries and employee benefits 4,763 4,045 8,808 Premises and occupancy 842 413 1,255 Operating and administrative expenses 1,050 1,326 2,376 Total non-interest expense 6,655 5,784 12,439 Income (loss) before income taxes 4,032 (1,632 ) 2,400 Provision (benefit) for income taxes 1,252 (585 ) 667 Net income (loss) $ 2,780 $ (1,047 ) $ 1,733 Total assets, end of period $ 1,086,437 $ 90,165 $ 1,176,602 (1) Includes an inter-company charge of $222 credited to PBM by the Bank during the period to compensate PBM for originating loans held for investment. (2) Includes an inter-company charge of $44 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis. For the Nine Months Ended March 31, 2019 (In Thousands) Provident Provident Consolidated Net interest income $ 27,956 $ 844 $ 28,800 Provision (recovery) for loan losses (475 ) 25 (450 ) Net interest income, after provision (recovery) for loan losses 28,431 819 29,250 Non-interest income: Loan servicing and other fees (1) 87 776 863 Gain on sale of loans, net (2) 33 7,081 7,114 Deposit account fees 1,485 — 1,485 Loss on sale and operations of real estate owned acquired in the settlement of loans, net (4 ) — (4 ) Card and processing fees 1,163 — 1,163 Other 573 2 575 Total non-interest income 3,337 7,859 11,196 Non-interest expense: Salaries and employee benefits 14,138 10,615 24,753 Premises and occupancy 2,652 1,253 3,905 Operating and administrative expenses 3,307 3,614 6,921 Total non-interest expense 20,097 15,482 35,579 Income (loss) before income taxes 11,671 (6,804 ) 4,867 Provision (benefit) for income taxes 3,249 (2,012 ) 1,237 Net income (loss) $ 8,422 $ (4,792 ) $ 3,630 Total assets, end of period $ 1,088,716 $ 30,679 $ 1,119,395 (1) Includes an inter-company charge of $428 credited to PBM by the Bank during the period to compensate PBM for originating loans held for investment. (2) Includes an inter-company charge of $37 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis. For the Nine Months Ended March 31, 2018 (In Thousands) Provident Provident Consolidated Net interest income $ 25,517 $ 1,476 $ 26,993 Recovery from the allowance for loan losses (347 ) — (347 ) Net interest income, after recovery from the allowance for loan losses 25,864 1,476 27,340 Non-interest income: Loan servicing and other fees (1) 468 705 1,173 Gain on sale of loans, net (2) 21 12,740 12,761 Deposit account fees 1,623 — 1,623 Loss on sale and operations of real estate owned acquired in the settlement of loans, net (81 ) — (81 ) Card and processing fees 1,126 — 1,126 Other 701 — 701 Total non-interest income 3,858 13,445 17,303 Non-interest expense: Salaries and employee benefits 13,714 12,996 26,710 Premises and occupancy 2,491 1,338 3,829 Operating and administrative expenses (3) 4,490 6,357 10,847 Total non-interest expense 20,695 20,691 41,386 Income (loss) before income taxes 9,027 (5,770 ) 3,257 Provision (benefit) for income taxes (4) 4,595 (2,069 ) 2,526 Net income (loss) $ 4,432 $ (3,701 ) $ 731 Total assets, end of period $ 1,086,437 $ 90,165 $ 1,176,602 (1) Includes an inter-company charge of $561 credited to PBM by the Bank during the period to compensate PBM for originating loans held for investment. (2) Includes an inter-company charge of $182 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis. (3) Includes $3.4 million of litigation settlement expense for the first nine months of fiscal 2018, of which $2.1 million was allocated to PBM. (4) Includes a net tax charge of $1.9 million resulting from the revaluation of net deferred tax assets consistent with the Tax Cuts and Jobs Act for the nine months ended December 31, 2017. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of available-for-sale securities reconciliation | March 31, 2019 Amortized Cost Gross Gross Estimated Carrying Value (In Thousands) Held to maturity: U.S. government sponsored enterprise MBS (1) $ 99,193 $ 728 $ (163 ) $ 99,758 $ 99,193 U.S. SBA securities (2) 2,917 — (19 ) 2,898 2,917 Certificate of deposits 400 — — 400 400 Total investment securities - held to maturity $ 102,510 $ 728 $ (182 ) $ 103,056 $ 102,510 Available for sale: U.S. government agency MBS $ 3,677 $ 119 $ — $ 3,796 $ 3,796 U.S. government sponsored enterprise MBS 2,107 91 — 2,198 2,198 Private issue CMO (3) 296 4 — 300 300 Total investment securities - available for sale $ 6,080 $ 214 $ — $ 6,294 $ 6,294 Total investment securities $ 108,590 $ 942 $ (182 ) $ 109,350 $ 108,804 (1) Mortgage-Backed Securities (“MBS”). (2) Small Business Administration (“SBA”). (3) Collateralized Mortgage Obligations (“CMO”). June 30, 2018 Amortized Cost Gross Gross Estimated Carrying Value (In Thousands) Held to maturity: U.S. government sponsored enterprise MBS $ 84,227 $ 203 $ (762 ) $ 83,668 $ 84,227 U.S. SBA securities 2,986 — (15 ) 2,971 2,986 Certificate of deposits 600 — — 600 600 Total investment securities - held to maturity $ 87,813 $ 203 $ (777 ) $ 87,239 $ 87,813 Available for sale: U.S. government agency MBS $ 4,234 $ 150 $ — $ 4,384 $ 4,384 U.S. government sponsored enterprise MBS 2,640 122 — 2,762 2,762 Private issue CMO 346 4 — 350 350 Total investment securities - available for sale $ 7,220 $ 276 $ — $ 7,496 $ 7,496 Total investment securities $ 95,033 $ 479 $ (777 ) $ 94,735 $ 95,309 |
Schedule of investments with unrealized loss position | As of March 31, 2019 Unrealized Holding Unrealized Holding Unrealized Holding (In Thousands) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses Held to maturity: U.S. government sponsored enterprise MBS $ — $ — $ 26,758 $ 163 $ 26,758 $ 163 U.S. SBA securities 2,892 19 — — 2,892 19 Total investment securities $ 2,892 $ 19 $ 26,758 $ 163 $ 29,650 $ 182 As of June 30, 2018 Unrealized Holding Unrealized Holding Unrealized Holding (In Thousands) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses Held to maturity: U.S. government sponsored enterprise MBS $ 47,045 $ 762 $ — $ — $ 47,045 $ 762 U.S. SBA securities 2,964 15 — — 2,964 15 Total investment securities $ 50,009 $ 777 $ — $ — $ 50,009 $ 777 |
Schedule of investments classified by contractual maturity | March 31, 2019 June 30, 2018 (In Thousands) Amortized Estimated Amortized Estimated Held to maturity: Due in one year or less $ 200 $ 200 $ 600 $ 600 Due after one through five years 35,345 35,259 24,961 24,569 Due after five through ten years 38,691 39,126 22,847 22,477 Due after ten years 28,274 28,471 39,405 39,593 Total investment securities - held to maturity $ 102,510 $ 103,056 $ 87,813 $ 87,239 Available for sale: Due in one year or less $ — $ — $ — $ — Due after one through five years — — — — Due after five through ten years — — — — Due after ten years 6,080 6,294 7,220 7,496 Total investment securities - available for sale $ 6,080 $ 6,294 $ 7,220 $ 7,496 Total investment securities $ 108,590 $ 109,350 $ 95,033 $ 94,735 |
Loans Held for Investment (Tabl
Loans Held for Investment (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of loans held for investment | (In Thousands) March 31, June 30, Mortgage loans: Single-family $ 314,824 $ 314,808 Multi-family 449,812 476,008 Commercial real estate 115,355 109,726 Construction (1) 4,139 3,174 Other 167 167 Commercial business loans (2) 483 500 Consumer loans (3) 133 109 Total loans held for investment, gross 884,913 904,492 Advance payments of escrows 225 18 Deferred loan costs, net 5,496 5,560 Allowance for loan losses (7,080 ) (7,385 ) Total loans held for investment, net $ 883,554 $ 902,685 (1) Net of $6.1 million and $4.3 million of undisbursed loan funds as of March 31, 2019 and June 30, 2018, respectively (2) Net of $950 and $495 of undisbursed lines of credit as of March 31, 2019 and June 30, 2018, respectively. (3) Net of $481 and $503 of undisbursed lines of credit as of March 31, 2019 and June 30, 2018, respectively. |
Schedule of loans held for investment, contractual repricing | Adjustable Rate (In Thousands) Within One After After After Fixed Rate Total Mortgage loans: Single-family $ 100,302 $ 37,514 $ 102,300 $ 62,493 $ 12,215 $ 314,824 Multi-family 125,503 162,437 145,968 15,710 194 449,812 Commercial real estate 44,247 33,136 36,442 1,055 475 115,355 Construction 3,581 — — — 558 4,139 Other — — — — 167 167 Commercial business loans 75 — — — 408 483 Consumer loans 133 — — — — 133 Total loans held for investment, gross $ 273,841 $ 233,087 $ 284,710 $ 79,258 $ 14,017 $ 884,913 |
Schedule of gross loans held for investment by loan types and risk category | March 31, 2019 (In Thousands) Single- Multi- Commercial Construction Other Commercial Consumer Total Pass $ 304,403 $ 445,927 $ 115,355 $ 3,394 $ 167 $ 430 $ 133 $ 869,809 Special Mention 3,347 3,885 — — — — — 7,232 Substandard 7,074 — — 745 — 53 — 7,872 Total loans held for investment, gross $ 314,824 $ 449,812 $ 115,355 $ 4,139 $ 167 $ 483 $ 133 $ 884,913 June 30, 2018 (In Thousands) Single- Multi- Commercial Construction Other Commercial Consumer Total Pass $ 304,619 $ 472,061 $ 108,786 $ 3,174 $ 167 $ 430 $ 109 $ 889,346 Special Mention 2,548 3,947 940 — — — — 7,435 Substandard 7,641 — — — — 70 — 7,711 Total loans held for investment, gross $ 314,808 $ 476,008 $ 109,726 $ 3,174 $ 167 $ 500 $ 109 $ 904,492 |
Schedule of allowance for loan losses | (In Thousands) March 31, 2019 June 30, 2018 Collectively evaluated for impairment: Mortgage loans: Single-family $ 2,514 $ 2,632 Multi-family 3,300 3,492 Commercial real estate 1,042 1,030 Construction 63 47 Other 3 3 Commercial business loans 18 18 Consumer loans 8 6 Total collectively evaluated allowance 6,948 7,228 Individually evaluated for impairment: Mortgage loans: Single-family 123 151 Commercial business loans 9 6 Total individually evaluated allowance 132 157 Total loan loss allowance $ 7,080 $ 7,385 For the Quarters Ended For the Nine Months Ended (Dollars in Thousands) 2019 2018 2019 2018 Allowance at beginning of period $ 7,061 $ 8,075 $ 7,385 $ 8,039 Provision (recovery) for loan losses 4 (505 ) (450 ) (347 ) Recoveries: Mortgage loans: Single-family 22 71 177 203 Consumer loans 1 — 2 — Total recoveries 23 71 179 203 Charge-offs: Mortgage loans: Single-family (6 ) (110 ) (31 ) (364 ) Consumer loans (2 ) — (3 ) — Total charge-offs (8 ) (110 ) (34 ) (364 ) Net (charge-offs) recoveries 15 (39 ) 145 (161 ) Balance at end of period $ 7,080 $ 7,531 $ 7,080 $ 7,531 Allowance for loan losses as a percentage of gross loans held for investment at the end of the period 0.79 % 0.84 % 0.79 % 0.84 % Net charge-offs (recoveries) as a percentage of average loans receivable, net, during the period (annualized) (0.01 )% 0.02 % (0.02 )% 0.02 % |
Schedule of past due status of gross loans held for investment, net of fair value adjustments | March 31, 2019 (In Thousands) Current 30-89 Days Non-Accrual (1) Total Loans Held for Mortgage loans: Single-family $ 308,554 $ 696 $ 5,574 $ 314,824 Multi-family 449,812 — — 449,812 Commercial real estate 115,355 — — 115,355 Construction 3,394 — 745 4,139 Other 167 — — 167 Commercial business loans 430 — 53 483 Consumer loans 130 3 — 133 Total loans held for investment, gross $ 877,842 $ 699 $ 6,372 $ 884,913 (1) June 30, 2018 (In Thousands) Current 30-89 Days Non-Accrual (1) Total Loans Held for Mortgage loans: Single-family $ 307,863 $ 804 $ 6,141 $ 314,808 Multi-family 476,008 — — 476,008 Commercial real estate 109,726 — — 109,726 Construction 3,174 — — 3,174 Other 167 — — 167 Commercial business loans 430 — 70 500 Consumer loans 108 1 — 109 Total loans held for investment, gross $ 897,476 $ 805 $ 6,211 $ 904,492 (1) |
Schedule of allowance for loan losses and recorded investment | Quarter Ended March 31, 2019 (In Thousands) Single- Multi- Commercial Construction Other Commercial Consumer Total Allowance for loan losses: Allowance at beginning of period $ 2,679 $ 3,280 $ 1,019 $ 48 $ 3 $ 26 $ 6 $ 7,061 Provision (recovery) for loan losses (58 ) 20 23 15 — 1 3 4 Recoveries 22 — — — — — 1 23 Charge-offs (6 ) — — — — — (2 ) (8 ) Allowance for loan losses, end of period $ 2,637 $ 3,300 $ 1,042 $ 63 $ 3 $ 27 $ 8 $ 7,080 Allowance for loan losses: Individually evaluated for impairment $ 123 $ — $ — $ — $ — $ 9 $ — $ 132 Collectively evaluated for impairment 2,514 3,300 1,042 63 3 18 8 6,948 Allowance for loan losses, end of period $ 2,637 $ 3,300 $ 1,042 $ 63 $ 3 $ 27 $ 8 $ 7,080 Loans held for investment: Individually evaluated for impairment $ 6,004 $ — $ — $ 745 $ — $ 53 $ — $ 6,802 Collectively evaluated for impairment 308,820 449,812 115,355 3,394 167 430 133 878,111 Total loans held for investment, gross $ 314,824 $ 449,812 $ 115,355 $ 4,139 $ 167 $ 483 $ 133 $ 884,913 Allowance for loan losses as a percentage of gross loans held for investment 0.84 % 0.73 % 0.90 % 1.52 % 1.80 % 5.59 % 6.02 % 0.79 % Quarter Ended March 31, 2018 (In Thousands) Single- Multi- Commercial Construction Commercial Consumer Total Allowance for loan losses: Allowance at beginning of period $ 3,303 $ 3,295 $ 933 $ 504 $ 32 $ 8 $ 8,075 Provision (recovery) for loan losses (143 ) 17 33 (410 ) (1 ) (1 ) (505 ) Recoveries 71 — — — — — 71 Charge-offs (110 ) — — — — — (110 ) Allowance for loan losses, end of period $ 3,121 $ 3,312 $ 966 $ 94 $ 31 $ 7 $ 7,531 Allowance for loan losses: Individually evaluated for impairment $ 161 $ — $ — $ — $ 15 $ — $ 176 Collectively evaluated for impairment 2,960 3,312 966 94 16 7 7,355 Allowance for loan losses, end of period $ 3,121 $ 3,312 $ 966 $ 94 $ 31 $ 7 $ 7,531 Loans held for investment: Individually evaluated for impairment $ 7,929 $ — $ — $ — $ 73 $ — $ 8,002 Collectively evaluated for impairment 308,983 466,266 106,937 5,324 377 130 888,017 Total loans held for investment, gross $ 316,912 $ 466,266 $ 106,937 $ 5,324 $ 450 $ 130 $ 896,019 Allowance for loan losses as a percentage of gross loans held for investment 0.98 % 0.71 % 0.90 % 1.77 % 6.89 % 5.38 % 0.84 % Nine Months Ended March 31, 2019 (In Thousands) Single- Multi- Commercial Construction Other Commercial Consumer Total Allowance for loan losses: Allowance at beginning of period $ 2,783 $ 3,492 $ 1,030 $ 47 $ 3 $ 24 $ 6 $ 7,385 Provision (recovery) for loan losses (292 ) (192 ) 12 16 — 3 3 (450 ) Recoveries 177 — — — — — 2 179 Charge-offs (31 ) — — — — — (3 )(34) Allowance for loan losses, end of period $ 2,637 $ 3,300 $ 1,042 $ 63 $ 3 $ 27 $ 8 $ 7,080 Allowance for loan losses: Individually evaluated for impairment $ 123 $ — $ — $ — $ — $ 9 $ — $ 132 Collectively evaluated for impairment 2,514 3,300 1,042 63 3 18 8 6,948 Allowance for loan losses, end of period $ 2,637 $ 3,300 $ 1,042 $ 63 $ 3 $ 27 $ 8 $ 7,080 Loans held for investment: Individually evaluated for impairment $ 6,004 $ — $ — $ 745 $ — $ 53 $ — $ 6,802 Collectively evaluated for impairment 308,820 449,812 115,355 3,394 167 430 133 878,111 Total loans held for investment, gross $ 314,824 $ 449,812 $ 115,355 $ 4,139 $ 167 $ 483 $ 133 $ 884,913 Allowance for loan losses as a percentage of gross loans held for investment 0.84 % 0.73 % 0.90 % 1.52 % 1.80 % 5.59 % 6.02 % 0.79 % Nine Months Ended March 31, 2018 (In Thousands) Single- Multi- Commercial Construction Commercial Consumer Total Allowance for loan losses: Allowance at beginning of period $ 3,601 $ 3,420 $ 879 $ 96 $ 36 $ 7 $ 8,039 Provision (recovery) for loan losses (319 ) (108 ) 87 (2 ) (5 ) — (347 ) Recoveries 203 — — — — — 203 Charge-offs (364 ) — — — — — (364 ) Allowance for loan losses, end of period $ 3,121 $ 3,312 $ 966 $ 94 $ 31 $ 7 $ 7,531 Allowance for loan losses: Individually evaluated for impairment $ 161 $ — $ — $ — $ 15 $ — $ 176 Collectively evaluated for impairment 2,960 3,312 966 94 16 7 7,355 Allowance for loan losses, end of period $ 3,121 $ 3,312 $ 966 $ 94 $ 31 $ 7 $ 7,531 Loans held for investment: Individually evaluated for impairment $ 7,929 $ — $ — $ — $ 73 $ — $ 8,002 Collectively evaluated for impairment 308,983 466,266 106,937 5,324 377 130 888,017 Total loans held for investment, gross $ 316,912 $ 466,266 $ 106,937 $ 5,324 $ 450 $ 130 $ 896,019 Allowance for loan losses as a percentage of gross loans held for investment 0.98 % 0.71 % 0.90 % 1.77 % 6.89 5.38 % 0.84 % |
Schedule of recorded investment in non-performing loans | At March 31, 2019 Unpaid Net Principal Related Recorded Recorded (In Thousands) Balance Charge-offs Investment Allowance (1) Investment Mortgage loans: Single-family: With a related allowance $ 1,813 $ — $ 1,813 $ (284 ) $ 1,529 Without a related allowance (2) 4,336 (539 ) 3,797 — 3,797 Total single-family 6,149 (539 ) 5,610 (284 ) 5,326 Construction: Without a related allowance (3) 745 — 745 — 745 Total construction 745 — 745 — 745 Commercial business loans: With a related allowance 53 — 53 (9 ) 44 Total commercial business loans 53 — 53 (9 ) 44 Total non-performing loans $ 6,947 $ (539 ) $ 6,408 $ (293 ) $ 6,115 (1) Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan, and fair value credit adjustments. (2) There was no related allowance for loan losses because the loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance. (3) There was no related allowance for loan losses because the loans, net of undisbursed loan funds, have been charged-off to their fair value or the fair value of the collateral is higher than the net loan balance. At June 30, 2018 Unpaid Net Principal Related Recorded Recorded (In Thousands) Balance Charge-offs Investment Allowance (1) Investment Mortgage loans: Single-family: With a related allowance $ 1,333 $ — $ 1,333 $ (185 ) $ 1,148 Without a related allowance (2) 5,569 (724 ) 4,845 — 4,845 Total single-family 6,902 (724 ) 6,178 (185 ) 5,993 Commercial business loans: With a related allowance 70 — 70 (6 ) 64 Total commercial business loans 70 — 70 (6 ) 64 Total non-performing loans $ 6,972 $ (724 ) $ 6,248 $ (191 ) $ 6,057 (1) Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan, and fair value credit adjustments. (2) There was no related allowance for loan losses because the loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance. Quarter Ended March 31, 2019 2018 Average Interest Average Interest Recorded Income Recorded Income (In Thousands) Investment Recognized Investment Recognized Without related allowances: Mortgage loans: Single-family $ 2,785 $ — $ 6,397 $ 49 Construction 745 — — — 3,530 — 6,397 49 With related allowances: Mortgage loans: Single-family 2,841 29 1,170 20 Commercial business loans 54 1 74 1 2,895 30 1,244 21 Total $ 6,425 $ 30 $ 7,641 $ 70 Nine Months Ended March 31, 2019 2018 Average Interest Average Interest Recorded Income Recorded Income (In Thousands) Investment Recognized Investment Recognized Without related allowances: Mortgage loans: Single-family $ 3,570 $ 229 $ 7,296 $ 184 Commercial real estate — — 22 13 Construction 579 — — — 4,149 229 7,318 197 With related allowances: Mortgage loans: Single-family 2,466 89 738 39 Commercial business loans 61 3 76 4 2,527 92 814 43 Total $ 6,676 $ 321 $ 8,132 $ 240 |
Schedule of troubled debt restructurings by nonaccrual versus accrual status | At At (In Thousands) March 31, 2019 June 30, 2018 Restructured loans on non-accrual status: Mortgage loans: Single-family $ 2,669 $ 3,328 Commercial business loans 44 64 Total 2,713 3,392 Restructured loans on accrual status: Mortgage loans: Single-family 1,865 1,788 Total 1,865 1,788 Total restructured loans $ 4,578 $ 5,180 |
Schedule of recorded investment in restructured loans | At March 31, 2019 Unpaid Net Principal Related Recorded Recorded (In Thousands) Balance Charge-offs Investment Allowance (1) Investment Mortgage loans: Single-family: With a related allowance $ 2,207 $ — $ 2,207 $ (123 ) $ 2,084 Without a related allowance (2) 2,818 (368 ) 2,450 — 2,450 Total single-family 5,025 (368 ) 4,657 (123 ) 4,534 Commercial business loans: With a related allowance 53 — 53 (9 ) 44 Total commercial business loans 53 — 53 (9 ) 44 Total restructured loans $ 5,078 $ (368 ) $ 4,710 $ (132 ) $ 4,578 (1) Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan. (2) There was no related allowance for loan losses because the loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance. At June 30, 2018 Unpaid Net Principal Related Recorded Recorded (In Thousands) Balance Charge-offs Investment Allowance (1) Investment Mortgage loans: Single-family With a related allowance $ 2,228 $ — $ 2,228 $ (151 ) $ 2,077 Without a related allowance (2) 3,450 (411 ) 3,039 — 3,039 Total single-family 5,678 (411 ) 5,267 (151 ) 5,116 Commercial business loans: With a related allowance 70 — 70 (6 ) 64 Total commercial business loans 70 — 70 (6 ) 64 Total restructured loans $ 5,748 $ (411 ) $ 5,337 $ (157 ) $ 5,180 (1) Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan. (2) There was no related allowance for loan losses because the loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance. |
Derivative and Other Financia_2
Derivative and Other Financial Instruments with Off-Balance Sheet Risks (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of undisbursed funds commitments | Commitments March 31, 2019 June 30, 2018 (In Thousands) Undisbursed loan funds – Construction loans $ 6,109 $ 4,302 Undisbursed lines of credit – Commercial business loans 950 495 Undisbursed lines of credit – Consumer loans 481 503 Commitments to extend credit on loans to be held for investment 4,346 9,352 Total $ 11,886 $ 14,652 |
Schedule of allowance for loan losses of undisbursed funds and commitments on loans held for investment | For the Quarters Ended For the Nine Months Ended (In Thousands) 2019 2018 2019 2018 Balance, beginning of the period $ 150 $ 188 $ 157 $ 277 Provision (recovery) 1 (29 ) (6 ) (118 ) Balance, end of the period $ 151 $ 159 $ 151 $ 159 |
Schedule of impact of derivative financial instruments on gain on sale of loans | For the Quarters Ended For the Nine Months Ended Derivative Financial Instruments 2019 2018 2019 2018 (In Thousands) Commitments to extend credit on loans to be held for sale $ (264 ) $ 266 $ (585 ) $ 173 Mandatory loan sale commitments and TBA 465 (281 ) 216 (1,072 ) Option contracts, net — — — (37 ) Total net gain (loss) $ 201 $ (15 ) $ (369 ) $ (936 ) |
Schedule of outstanding derivative instruments | March 31, 2019 June 30, 2018 Derivative Financial Instruments Amount Fair Amount Fair (In Thousands) Commitments to extend credit on loans to be held for sale (1) $ 12,211 $ 240 $ 56,906 $ 825 Best efforts loan sale commitments (10,212 ) — (29,502 ) — Mandatory loan sale commitments and TBA MBS trades (28,817 ) (224 ) (117,759 ) (440 ) Total $ (26,818 ) $ 16 $ (90,355 ) $ 385 (1) Net of 18.6% at March 31, 2019 and 24.7% at June 30, 2018 of commitments which management has estimated may not fund. |
Schedule of summary of recourse liability | For the Quarters Ended For the Nine Months Ended Recourse Liability 2019 2018 2019 2018 (In Thousands) Balance, beginning of the period $ 250 $ 283 $ 283 $ 305 Recovery from recourse liability — — (33 ) (22 ) Net settlements in lieu of loan repurchases — — — — Balance, end of the period $ 250 $ 283 $ 250 $ 283 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of aggregate fair value and aggregate unpaid principal balance of loans held for sale | (In Thousands) Aggregate Fair Value Aggregate Unpaid Principal Balance Net Unrealized Gain (Loss) As of March 31, 2019: Loans held for investment, at fair value $ 5,239 $ 5,417 $ (178 ) Loans held for sale, at fair value $ 30,500 $ 29,565 $ 935 As of June 30, 2018: Loans held for investment, at fair value $ 5,234 $ 5,546 $ (312 ) Loans held for sale, at fair value $ 96,298 $ 93,791 $ 2,507 |
Schedule of fair value, assets and liabilities measured on recurring basis | Fair Value Measurement at March 31, 2019 Using: (In Thousands) Level 1 Level 2 Level 3 Total Assets: Investment securities - available for sale: U.S. government agency MBS $ — $ 3,796 $ — $ 3,796 U.S. government sponsored enterprise MBS — 2,198 — 2,198 Private issue CMO — — 300 300 Investment securities - available for sale — 5,994 300 6,294 Loans held for investment, at fair value — — 5,239 5,239 Loans held for sale, at fair value — 30,500 — 30,500 Interest-only strips — — 18 18 Derivative assets: Commitments to extend credit on loans to be held for sale — — 240 240 Derivative assets — — 240 240 Total assets $ — $ 36,494 $ 5,797 $ 42,291 Liabilities: Derivative liabilities: Mandatory loan sale commitments $ — $ — $ 7 $ 7 TBA MBS trades — 217 — 217 Derivative liabilities — 217 7 224 Total liabilities $ — $ 217 $ 7 $ 224 Fair Value Measurement at June 30, 2018 Using: (In Thousands) Level 1 Level 2 Level 3 Total Assets: Investment securities - available for sale: U.S. government agency MBS $ — $ 4,384 $ — $ 4,384 U.S. government sponsored enterprise MBS — 2,762 — 2,762 Private issue CMO — — 350 350 Investment securities - available for sale — 7,146 350 7,496 Loans held for investment, at fair value — — 5,234 5,234 Loans held for sale, at fair value — 96,298 — 96,298 Interest-only strips — — 23 23 Derivative assets: Commitments to extend credit on loans to be held for sale — — 849 849 Derivative assets — — 849 849 Total assets $ — $ 103,444 $ 6,456 $ 109,900 Liabilities: Derivative liabilities: Commitments to extend credit on loans to be held for sale $ — $ — $ 24 $ 24 Mandatory loan sale commitments — — 32 32 TBA MBS trades — 408 — 408 Derivative liabilities — 408 56 464 Total liabilities $ — $ 408 $ 56 $ 464 |
Schedule for reconciliation of recurring fair value measurements using level 3 inputs | For the Quarter Ended March 31, 2019 Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) (In Thousands) Private Issue CMO Loans Held (1) Interest- Only Loan Commitments (2) Mandatory (3) Total Beginning balance at December 31, 2018 $ 310 $ 4,995 $ 21 $ 504 $ (9 ) $ 5,821 Total gains or losses (realized/unrealized): Included in earnings — 87 — (264 ) (3 ) (180 ) Included in other comprehensive loss 1 — (3 ) — — (2 ) Purchases — — — — — — Issuances — — — — — — Settlements (11 ) (34 ) — — 5 (40 ) Transfers in and/or out of Level 3 — 191 — — — 191 Ending balance at March 31, 2019 $ 300 $ 5,239 $ 18 $ 240 $ (7 ) $ 5,790 (1) The valuation of loans held for investment at fair value includes the management estimates of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for the interest rate characteristics of each loan. (2) Consists of commitments to extend credit on loans to be held for sale. (3) Consists of mandatory loan sale commitments. For the Quarter Ended March 31, 2018 Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) (In Thousands) Private Issue CMO Loans Held (1) Interest- Only Strips Loan Commit- ments to Originate (2) Manda- tory Commit- ments (3) Total Beginning balance at December 31, 2017 $ 419 $ 5,157 $ 26 $ 716 $ (24 ) $ 6,294 Total gains or losses (realized/unrealized): Included in earnings — (118 ) — 266 (26 ) 122 Included in other comprehensive loss (2 ) — (2 ) — — (4 ) Purchases — — — — — — Issuances — — — — — — Settlements (22 ) (43 ) — — — (65 ) Transfers in and/or out of Level 3 — — — — — — Ending balance at March 31, 2018 $ 395 $ 4,996 $ 24 $ 982 $ (50 ) $ 6,347 (1) The valuation of loans held for investment at fair value includes the management estimates of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for the interest rate characteristics of each loan. (2) Consists of commitments to extend credit on loans to be held for sale. (3) Consists of mandatory loan sale commitments. For the Nine Months Ended March 31, 2019 Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) (In Thousands) Private Issue CMO Loans Held (1) Interest- Only Loan Commitments (2) Mandatory Commitments (3) Total Beginning balance at June 30, 2018 $ 350 $ 5,234 $ 23 $ 825 $ (32 ) $ 6,400 Total gains or losses (realized/unrealized): Included in earnings — 133 — (585 ) 18 (434 ) Included in other comprehensive loss — — (5 ) — — (5 ) Purchases — — — — — — Issuances — — — — — — Settlements (50 ) (789 ) — — 7 (832 ) Transfers in and/or out of Level 3 — 661 — — — 661 Ending balance at March 31, 2019 $ 300 $ 5,239 $ 18 $ 240 $ (7 ) $ 5,790 (1) The valuation of loans held for investment at fair value includes the management estimates of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for the interest rate characteristics of each loan. (2) Consists of commitments to extend credit on loans to be held for sale. (3) Consists of mandatory loan sale commitments. For the Nine Months Ended March 31, 2018 Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) (In Thousands) Private Issue CMO Loans Held (1) Interest- Only Strips Loan Commit- ments to Originate (2) Manda- tory Commit- ments (3) Option Contracts Total Beginning balance at June 30, 2017 $ 461 $ 6,445 $ 31 $ 809 $ 47 $ 37 $ 7,830 Total gains or losses (realized/unrealized): Included in earnings — (72 ) — 173 (99 ) (37 ) (35 ) Included in other comprehensive loss (1 ) — (7 ) — — — (8 ) Purchases — — — — — — — Issuances — — — — — — — Settlements (65 ) (1,899 ) — — 2 — (1,962 ) Transfers in and/or out of Level 3 — 522 — — — — 522 Ending balance at March 31, 2018 $ 395 $ 4,996 $ 24 $ 982 $ (50 ) $ — $ 6,347 (1) The valuation of loans held for investment at fair value includes the management estimates of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for the interest rate characteristics of each loan. (2) Consists of commitments to extend credit on loans to be held for sale. (3) Consists of mandatory loan sale commitments. |
Schedule of fair value assets measured on nonrecurring basis | Fair Value Measurement at March 31, 2019 Using: (In Thousands) Level 1 Level 2 Level 3 Total Non-performing loans $ — $ 4,541 $ 1,574 $ 6,115 Mortgage servicing assets — — 456 456 Real estate owned, net — — — — Total $ — $ 4,541 $ 2,030 $ 6,571 Fair Value Measurement at June 30, 2018 Using: (In Thousands) Level 1 Level 2 Level 3 Total Non-performing loans $ — $ 4,845 $ 1,212 $ 6,057 Mortgage servicing assets — — 135 135 Real estate owned, net — 906 — 906 Total $ — $ 5,751 $ 1,347 $ 7,098 |
Schedule of additional information about valuation techniques and inputs used for assets and liabilities | (Dollars In Thousands) Fair Value Valuation Techniques Unobservable Inputs Range (1) (Weighted Average) Impact to Valuation from an Increase in Inputs (2) Assets: Securities available - for sale: Private issue CMO $ 300 Market comparable pricing Comparability adjustment 1.2% – 1.3% (1.2%) Increase Loans held for investment, $ 5,239 Relative value Broker quotes 98.3% – 105.2% Increase Non-performing loans $ 703 Discounted cash flow Default rates 5.0% Decrease Non-performing loans $ 871 Relative value analysis Loss severity 20.0% - 30.0% (21.3%) Decrease Mortgage servicing assets $ 456 Discounted cash flow Prepayment speed (CPR) 9.7% - 60.0% (21.7%) Decrease Interest-only strips $ 18 Discounted cash flow Prepayment speed (CPR) 18.7% - 35.9% (34.3%) Decrease Commitments to extend credit on loans to be held for sale $ 240 Relative value analysis TBA-MBS broker quotes Fall-out ratio (3) 99.0% – 103.4% Increase Liabilities: Mandatory loan sale commitments $ 7 Relative value analysis TBA MBS broker quotes Roll-forward costs (4) 102.3% - 105.7% Increase (1) The range is based on the estimated fair values and management estimates. (2) Unless otherwise noted, this column represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs in isolation could result in significantly higher or lower fair value measurements. (3) The percentage of commitments to extend credit on loans to be held for sale which management has estimated may not fund. (4) An estimated cost to roll forward the mandatory loan sale commitments which management has estimated may not be delivered to the corresponding investors in a timely manner. |
Schedule of carrying amount and fair value of financial instruments | March 31, 2019 (In Thousands) Carrying Fair Level 1 Level 2 Level 3 Financial assets: Investment securities - held to maturity $ 102,510 $ 103,056 — $ 103,056 $ — Loans held for investment, not recorded at fair value $ 878,315 $ 857,399 — — $ 857,399 FHLB – San Francisco stock $ 8,199 $ 8,199 — $ 8,199 — Financial liabilities: Deposits $ 876,884 $ 847,875 — — $ 847,875 Borrowings $ 101,121 $ 101,274 — — $ 101,274 June 30, 2018 (In Thousands) Carrying Fair Level 1 Level 2 Level 3 Financial assets: Investment securities - held to maturity $ 87,813 $ 87,239 — $ 87,239 — Loans held for investment, not recorded at fair value $ 897,451 $ 873,112 — — $ 873,112 FHLB – San Francisco stock $ 8,199 $ 8,199 — $ 8,199 — Financial liabilities: Deposits $ 907,598 $ 877,641 — — $ 877,641 Borrowings $ 126,163 $ 123,778 — — $ 123,778 |
Incentive Plans (Tables)
Incentive Plans (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock option activity | For the Quarter Ended March 31, 2019 Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value ($000) Outstanding at December 31, 2018 509,000 $ 12.83 Granted — $ — Exercised (11,250 ) $ 14.59 Forfeited — $ — Outstanding at March 31, 2019 497,750 $ 12.79 4.53 $ 3,551 Vested and expected to vest at March 31, 2019 495,150 $ 12.75 4.52 $ 3,550 Exercisable at March 31, 2019 484,750 $ 12.60 4.45 $ 3,546 For the Nine Months Ended March 31, 2019 Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value ($000) Outstanding at June 30, 2018 529,000 $ 12.77 Granted — $ — Exercised (31,250 ) $ 12.49 Forfeited — $ — Outstanding at March 31, 2019 497,750 $ 12.79 4.53 $ 3,551 Vested and expected to vest at March 31, 2019 495,150 $ 12.75 4.52 $ 3,550 Exercisable at March 31, 2019 484,750 $ 12.60 4.45 $ 3,546 |
Schedule of unvested restricted stock activity | For the Quarter Ended Unvested Shares Shares Weighted- Award Date Fair Value Unvested at December 31, 2018 12,000 $ 18.31 Granted — $ — Vested (3,000 ) $ 18.90 Forfeited — $ — Unvested at March 31, 2019 9,000 $ 18.11 Expected to vest at March 31, 2019 7,200 $ 18.11 For the Nine Months Ended Unvested Shares Shares Weighted- Award Date Fair Value Unvested at June 30, 2018 98,500 $ 14.35 Granted — $ — Vested (89,500 ) $ 13.97 Forfeited — $ — Unvested at March 31, 2019 9,000 $ 18.11 Expected to vest at March 31, 2019 7,200 $ 18.11 |
Reclassification Adjustment o_2
Reclassification Adjustment of Accumulated Other Comprehensive Income ("AOCI") (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income | For the Quarter Ended March 31, 2019 Unrealized gains and losses on (In Thousands) Investment securities Interest- Total Beginning balance at December 31, 2018 $ 154 $ 15 $ 169 Other comprehensive loss before reclassifications (4 ) (2 ) (6 ) Amount reclassified from accumulated other comprehensive income — — — Net other comprehensive loss (4 ) (2 ) (6 ) Ending balance at March 31, 2019 $ 150 $ 13 $ 163 For the Quarter Ended March 31, 2018 Unrealized gains and losses on (In Thousands) Investment securities Interest- Total Beginning balance at December 31, 2017 $ 195 $ 15 $ 210 Other comprehensive loss before reclassifications (20 ) (2 ) (22 ) Amount reclassified from accumulated other comprehensive income (2 ) — (2 ) Net other comprehensive loss (22 ) (2 ) (24 ) Ending balance at March 31, 2018 $ 173 $ 13 $ 186 For the Nine Months Ended March 31, 2019 Unrealized gains and losses on (In Thousands) Investment securities Interest- Total Beginning balance at June 30, 2018 $ 194 $ 16 $ 210 Other comprehensive loss before reclassifications (44 ) (3 ) (47 ) Amount reclassified from accumulated other comprehensive income — — — Net other comprehensive loss (44 ) (3 ) (47 ) Ending balance at March 31, 2019 $ 150 $ 13 $ 163 For the Nine Months Ended March 31, 2018 Unrealized gains and losses on (In Thousands) Investment securities Interest- Total Beginning balance at June 30, 2017 $ 211 $ 18 $ 229 Other comprehensive loss before reclassifications (78 ) (8 ) (86 ) Amount reclassified from accumulated other comprehensive income 40 3 43 Net other comprehensive loss (38 ) (5 ) (43 ) Ending balance at March 31, 2018 $ 173 $ 13 $ 186 |
Offsetting Derivative and Oth_2
Offsetting Derivative and Other Financial Instruments (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Offsetting [Abstract] | |
Schedule of gross and net amounts of derivative assets | As of March 31, 2019: Gross Net Amount Amount Offset in the of Assets in Gross Amount Not Offset in Condensed the Condensed the Condensed Consolidated Gross Consolidated Consolidated Statements of Financial Condition Amount of Statements Statements Cash Recognized of Financial of Financial Financial Collateral Net (In Thousands) Assets Condition Condition Instruments Received Amount Assets Derivatives $ — $ — $ — $ — $ — $ — Total $ — $ — $ — $ — $ — $ — As of June 30, 2018: Gross Net Amount Amount Offset in the of Assets in Gross Amount Not Offset in Condensed the Condensed the Condensed Consolidated Gross Consolidated Consolidated Statements of Financial Condition Amount of Statements Statements Cash Recognized of Financial of Financial Financial Collateral Net (In Thousands) Assets Condition Condition Instruments Received Amount Assets Derivatives $ — $ — $ — $ — $ — $ — Total $ — $ — $ — $ — $ — $ — |
Schedule of gross and net amounts of derivative liabilities | As of March 31, 2019: Gross Net Amount Amount Offset in the of Liabilities in Gross Amount Not Offset in Condensed the Condensed the Condensed Consolidated Gross Consolidated Consolidated Statements of Financial Condition Amount of Statements Statements Cash Recognized of Financial of Financial Financial Collateral Net (In Thousands) Liabilities Condition Condition Instruments Received Amount Liabilities Derivatives $ 224 $ — $ 224 $ — $ — $ 224 Total $ 224 $ — $ 224 $ — $ — $ 224 As of June 30, 2018: Gross Net Amount Amount Offset in the of Liabilities in Gross Amount Not Offset in Condensed the Condensed the Condensed Consolidated Gross Consolidated Consolidated Statements of Financial Condition Amount of Statements Statements Cash Recognized of Financial of Financial Financial Collateral Net (In Thousands) Liabilities Condition Condition Instruments Received Amount Liabilities Derivatives $ 440 $ — $ 440 $ — $ — $ 440 Total $ 440 $ — $ 440 $ — $ — $ 440 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Schedule of non-interest income disaggregated by type of service | For the Quarters Ended For the Nine Months Ended Type of Services 2019 2018 2019 2018 (In Thousands) Asset management fees $ 77 $ 87 $ 215 $ 294 Debit card and ATM fees 395 394 1,227 1,190 Deposit related fees 484 549 1,522 1,659 Loan related fees 12 (6 ) 25 (42 ) BOLI (1) 47 65 140 199 Loan servicing fees (1) 262 493 863 1,173 Net gain on sale of loans (1) 1,719 3,597 7,114 12,761 Other 56 31 90 69 Total non-interest income $ 3,052 $ 5,210 $ 11,196 $ 17,303 (1) Not in scope of ASC 606. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of estimated combined federal and state statutory tax rates | Statutory Tax Rates FY2019 FY2018 Federal Tax Rate 21.00 % 28.06 % State Tax Rate 10.84 % 10.84 % Combined Statutory Tax Rate (1) 29.56 % 35.86 % (1) The combined statutory tax rate is net of the federal tax benefit for the state tax deduction. |
Earnings (Loss) Per Share - Sum
Earnings (Loss) Per Share - Summary of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||||
Net income (loss) - numerator for basic earnings per share and diluted earnings per share - available to common stockholders | $ (151) | $ 1,733 | $ 3,630 | $ 731 |
Denominator for basic earnings per share: | ||||
Weighted-average shares | 7,507 | 7,457 | 7,481 | 7,573 |
Denominator for diluted earnings per share: | ||||
Adjusted weighted-average shares and assumed conversions | 7,507 | 7,616 | 7,555 | 7,737 |
Basic earnings (loss) per share (in dollars per share) | $ (0.02) | $ 0.23 | $ 0.49 | $ 0.10 |
Diluted earnings (loss) per share (in dollars per share) | $ (0.02) | $ 0.23 | $ 0.48 | $ 0.09 |
Stock options | ||||
Denominator for basic earnings per share: | ||||
Weighted-average shares | 0 | 97 | 60 | 111 |
Restricted stock | ||||
Denominator for basic earnings per share: | ||||
Weighted-average shares | 0 | 62 | 14 | 53 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Detail Textuals) - shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options, outstanding | 497,750 | 529,000 | 497,750 | 529,000 |
Antidilutive securities excluded from computation of earnings per share | 497,750 | 26,000 | 497,750 | 26,000 |
Restricted stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Restricted stock awards outstanding | 9,000 | 98,500 | 9,000 | 98,500 |
Operating Segment Reports (Deta
Operating Segment Reports (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | ||||||
Net interest income | $ 9,612 | $ 9,124 | $ 28,800 | $ 26,993 | ||||||
Provision (recovery) for loan losses | 4 | (505) | (450) | (347) | ||||||
Net interest income, after provision (recovery) for loan losses | 9,608 | 9,629 | 29,250 | 27,340 | ||||||
Non-interest income: | ||||||||||
Gain (loss) on sale of loans, net | [2] | 1,719 | [1] | 3,597 | [3],[4] | 7,114 | [3] | 12,761 | [5] | |
Gain (loss) on sale and operations of real estate owned acquired in the settlement of loans, net | 2 | (19) | (4) | (81) | ||||||
Other | 225 | 238 | 575 | 701 | ||||||
Total non-interest income | 3,052 | 5,210 | 11,196 | 17,303 | ||||||
Non-interest expense: | ||||||||||
Salaries and employee benefits | [6] | 9,292 | 8,808 | 24,753 | 26,710 | |||||
Premises and occupancy | 1,286 | 1,255 | 3,905 | 3,829 | ||||||
Operating and administrative expenses | 2,422 | 2,376 | 6,921 | 10,847 | [7] | |||||
Total non-interest expense | 13,000 | 12,439 | 35,579 | 41,386 | ||||||
Income (loss) before income taxes | (340) | 2,400 | 4,867 | 3,257 | ||||||
Provision (benefit) for income taxes | [8] | (189) | 667 | 1,237 | 2,526 | [9] | ||||
Net income (loss) | (151) | 1,733 | 3,630 | 731 | ||||||
Total assets, end of period | 1,119,395 | 1,176,602 | 1,119,395 | 1,176,602 | $ 1,175,549 | |||||
Loan servicing and other fees | ||||||||||
Non-interest income: | ||||||||||
Total non-interest income | [2] | 262 | [10] | 493 | [11] | 863 | [12] | 1,173 | [13] | |
Provident Bank | ||||||||||
Net interest income | 9,431 | 8,750 | 27,956 | 25,517 | ||||||
Provision (recovery) for loan losses | 74 | (505) | (475) | (347) | ||||||
Net interest income, after provision (recovery) for loan losses | 9,357 | 9,255 | 28,431 | 25,864 | ||||||
Non-interest income: | ||||||||||
Gain (loss) on sale of loans, net | (1) | [1] | (1) | [4] | 33 | [3] | 21 | [5] | ||
Gain (loss) on sale and operations of real estate owned acquired in the settlement of loans, net | 2 | (19) | (4) | (81) | ||||||
Other | 223 | 238 | 573 | 701 | ||||||
Total non-interest income | 1,171 | 1,432 | 3,337 | 3,858 | ||||||
Non-interest expense: | ||||||||||
Salaries and employee benefits | 5,002 | 4,763 | 14,138 | 13,714 | ||||||
Premises and occupancy | 847 | 842 | 2,652 | 2,491 | ||||||
Operating and administrative expenses | 1,314 | 1,050 | 3,307 | 4,490 | [7] | |||||
Total non-interest expense | 7,163 | 6,655 | 20,097 | 20,695 | ||||||
Income (loss) before income taxes | 3,365 | 4,032 | 11,671 | 9,027 | ||||||
Provision (benefit) for income taxes | 907 | 1,252 | 3,249 | 4,595 | [9] | |||||
Net income (loss) | 2,458 | 2,780 | 8,422 | 4,432 | ||||||
Total assets, end of period | 1,088,716 | 1,086,437 | 1,088,716 | 1,086,437 | ||||||
Provident Bank | Loan servicing and other fees | ||||||||||
Non-interest income: | ||||||||||
Total non-interest income | 103 | [10] | 313 | [11] | 87 | [12] | 468 | [13] | ||
Provident Bank | Deposit account fees | ||||||||||
Non-interest income: | ||||||||||
Total non-interest income | 471 | 529 | 1,485 | 1,623 | ||||||
Provident Bank | Card and processing fees | ||||||||||
Non-interest income: | ||||||||||
Total non-interest income | 373 | 372 | 1,163 | 1,126 | ||||||
Provident Bank Mortgage | ||||||||||
Net interest income | 181 | 374 | 844 | 1,476 | ||||||
Provision (recovery) for loan losses | (70) | 0 | 25 | 0 | ||||||
Net interest income, after provision (recovery) for loan losses | 251 | 374 | 819 | 1,476 | ||||||
Non-interest income: | ||||||||||
Gain (loss) on sale of loans, net | 1,720 | [1] | 3,598 | [4] | 7,081 | [3] | 12,740 | [5] | ||
Gain (loss) on sale and operations of real estate owned acquired in the settlement of loans, net | 0 | 0 | 0 | 0 | ||||||
Other | 2 | 0 | 2 | 0 | ||||||
Total non-interest income | 1,881 | 3,778 | 7,859 | 13,445 | ||||||
Non-interest expense: | ||||||||||
Salaries and employee benefits | 4,290 | 4,045 | 10,615 | 12,996 | ||||||
Premises and occupancy | 439 | 413 | 1,253 | 1,338 | ||||||
Operating and administrative expenses | 1,108 | 1,326 | 3,614 | 6,357 | [7] | |||||
Total non-interest expense | 5,837 | 5,784 | 15,482 | 20,691 | ||||||
Income (loss) before income taxes | (3,705) | (1,632) | (6,804) | (5,770) | ||||||
Provision (benefit) for income taxes | (1,096) | (585) | (2,012) | (2,069) | [9] | |||||
Net income (loss) | (2,609) | (1,047) | (4,792) | (3,701) | ||||||
Total assets, end of period | 30,679 | 90,165 | 30,679 | 90,165 | ||||||
Provident Bank Mortgage | Loan servicing and other fees | ||||||||||
Non-interest income: | ||||||||||
Total non-interest income | 159 | [10] | 180 | [11] | 776 | [12] | 776 | [13] | ||
Provident Bank Mortgage | Deposit account fees | ||||||||||
Non-interest income: | ||||||||||
Total non-interest income | 0 | 0 | 0 | 0 | ||||||
Provident Bank Mortgage | Card and processing fees | ||||||||||
Non-interest income: | ||||||||||
Total non-interest income | $ 0 | $ 0 | $ 0 | $ 0 | ||||||
[1] | Includes an inter-company charge of $17 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis. | |||||||||
[2] | Not in scope of ASC 606. | |||||||||
[3] | Includes an inter-company charge of $37 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis. | |||||||||
[4] | Includes an inter-company charge of $44 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis. | |||||||||
[5] | Includes an inter-company charge of $182 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis. | |||||||||
[6] | Includes $1.5 million of costs associated with staff reductions in mortgage banking operations during the quarter and nine months ended March 31, 2019. | |||||||||
[7] | Includes $3.4 million of litigation settlement expense for the first nine months of fiscal 2018, of which $2.1 million was allocated to PBM. | |||||||||
[8] | Includes a net tax charge of $1.9 million resulting from the revaluation of net deferred tax assets consistent with the Tax Cuts and Jobs Act for the nine months ended March 31, 2018. | |||||||||
[9] | Includes a net tax charge of $1.9 million resulting from the revaluation of net deferred tax assets consistent with the Tax Cuts and Jobs Act for the nine months ended December 31, 2017. | |||||||||
[10] | Includes an inter-company charge of $2 credited to PBM by the Bank during the period to compensate PBM for originating loans held for investment. | |||||||||
[11] | Includes an inter-company charge of $222 credited to PBM by the Bank during the period to compensate PBM for originating loans held for investment. | |||||||||
[12] | Includes an inter-company charge of $428 credited to PBM by the Bank during the period to compensate PBM for originating loans held for investment. | |||||||||
[13] | Includes an inter-company charge of $561 credited to PBM by the Bank during the period to compensate PBM for originating loans held for investment. |
Operating Segment Reports (De_2
Operating Segment Reports (Detail Textuals) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2019USD ($)Segment | Mar. 31, 2018USD ($)Segment | ||
Segment Reporting Information [Line Items] | |||||
Litigation settlement expense | $ 3,400,000 | ||||
Revaluation of net deferred tax assets | 1,900,000 | ||||
Salaries and employee benefits expenses | [1] | $ 9,292,000 | $ 8,808,000 | $ 24,753,000 | 26,710,000 |
Premises and occupancy expenses | 1,286,000 | 1,255,000 | 3,905,000 | 3,829,000 | |
Equipment expenses | 417,000 | 442,000 | $ 1,333,000 | $ 1,179,000 | |
Provident Bank Mortgage | |||||
Segment Reporting Information [Line Items] | |||||
Number of operating segments | Segment | 2 | 2 | |||
Payments for origination of mortgage loans held-for-sale | 2,000 | 222,000 | $ 428,000 | $ 561,000 | |
Servicing fees on loans sold | 17,000 | 44,000 | 37,000 | 182,000 | |
Litigation settlement expense | 2,100,000 | ||||
Exit cost | 1,600,000 | ||||
Salaries and employee benefits expenses | 4,290,000 | 4,045,000 | 10,615,000 | 12,996,000 | |
Premises and occupancy expenses | $ 439,000 | $ 413,000 | 1,253,000 | $ 1,338,000 | |
Equipment expenses | 13,000 | ||||
Provident Bank Mortgage | Minimum | |||||
Segment Reporting Information [Line Items] | |||||
Exit cost | 3,600,000 | ||||
Provident Bank Mortgage | Maximum | |||||
Segment Reporting Information [Line Items] | |||||
Exit cost | $ 4,000,000 | ||||
[1] | Includes $1.5 million of costs associated with staff reductions in mortgage banking operations during the quarter and nine months ended March 31, 2019. |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | $ 102,510 | $ 87,813 | |
Gross Unrealized Gains | 728 | 203 | |
Gross Unrealized (Losses) | (182) | (777) | |
Estimated Fair Value | 103,056 | 87,239 | |
Carrying Value | 102,510 | 87,813 | |
U.S. government sponsored enterprise MBS | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | 99,193 | [1] | 84,227 |
Gross Unrealized Gains | 728 | [1] | 203 |
Gross Unrealized (Losses) | (163) | [1] | (762) |
Estimated Fair Value | 99,758 | [1] | 83,668 |
Carrying Value | 99,193 | [1] | 84,227 |
U.S. SBA securities | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | 2,917 | [2] | 2,986 |
Gross Unrealized Gains | 0 | [2] | 0 |
Gross Unrealized (Losses) | (19) | [2] | (15) |
Estimated Fair Value | 2,898 | [2] | 2,971 |
Carrying Value | 2,917 | [2] | 2,986 |
Certificate of deposits | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | 400 | 600 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized (Losses) | 0 | 0 | |
Estimated Fair Value | 400 | 600 | |
Carrying Value | $ 400 | $ 600 | |
[1] | Mortgage-Backed Securities ("MBS"). | ||
[2] | Small Business Administration ("SBA"). |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 6,080 | $ 7,220 | |
Gross Unrealized Gains | 214 | 276 | |
Gross Unrealized (Losses) | 0 | 0 | |
Estimated Fair Value | 6,294 | 7,496 | |
Carrying value | 6,294 | 7,496 | |
U.S. government agency MBS | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 3,677 | 4,234 | |
Gross Unrealized Gains | 119 | 150 | |
Gross Unrealized (Losses) | 0 | 0 | |
Estimated Fair Value | 3,796 | 4,384 | |
Carrying value | 3,796 | 4,384 | |
U.S. government sponsored enterprise MBS | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 2,107 | 2,640 | |
Gross Unrealized Gains | 91 | 122 | |
Gross Unrealized (Losses) | 0 | 0 | |
Estimated Fair Value | 2,198 | 2,762 | |
Carrying value | 2,198 | 2,762 | |
Private issue CMO | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 296 | [1] | 346 |
Gross Unrealized Gains | 4 | [1] | 4 |
Gross Unrealized (Losses) | 0 | [1] | 0 |
Estimated Fair Value | 300 | [1] | 350 |
Carrying value | $ 300 | [1] | $ 350 |
[1] | Collateralized Mortgage Obligations ("CMO"). |
Investment Securities (Detail_2
Investment Securities (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized Cost | $ 108,590 | $ 95,033 |
Gross Unrealized Gains | 942 | 479 |
Gross Unrealized (Losses) | (182) | (777) |
Estimated Fair Value | 109,350 | 94,735 |
Carrying Value | $ 108,804 | $ 95,309 |
Investment Securities (Detail_3
Investment Securities (Details 3) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Unrealized Holding Losses Less Than 12 Months, Fair Value | $ 2,892 | $ 50,009 |
Unrealized Holding Losses Less Than 12 Months, Unrealized Losses | 19 | 777 |
Unrealized Holding Losses 12 Months or More, Fair Value | 26,758 | 0 |
Unrealized Holding Losses 12 Months or More, Unrealized Losses | 163 | 0 |
Unrealized Holding Losses Total, Fair Value | 29,650 | 50,009 |
Unrealized Holding Losses Total, Unrealized Losses | 182 | 777 |
U.S. government sponsored enterprise MBS | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Unrealized Holding Losses Less Than 12 Months, Fair Value | 0 | 47,045 |
Unrealized Holding Losses Less Than 12 Months, Unrealized Losses | 0 | 762 |
Unrealized Holding Losses 12 Months or More, Fair Value | 26,758 | 0 |
Unrealized Holding Losses 12 Months or More, Unrealized Losses | 163 | 0 |
Unrealized Holding Losses Total, Fair Value | 26,758 | 47,045 |
Unrealized Holding Losses Total, Unrealized Losses | 163 | 762 |
U.S. SBA securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Unrealized Holding Losses Less Than 12 Months, Fair Value | 2,892 | 2,964 |
Unrealized Holding Losses Less Than 12 Months, Unrealized Losses | 19 | 15 |
Unrealized Holding Losses 12 Months or More, Fair Value | 0 | 0 |
Unrealized Holding Losses 12 Months or More, Unrealized Losses | 0 | 0 |
Unrealized Holding Losses Total, Fair Value | 2,892 | 2,964 |
Unrealized Holding Losses Total, Unrealized Losses | $ 19 | $ 15 |
Investment Securities (Detail_4
Investment Securities (Details 4) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Held to maturity, Amortized Cost | ||
Due in one year or less | $ 200 | $ 600 |
Due after one through five years | 35,345 | 24,961 |
Due after five through ten years | 38,691 | 22,847 |
Due after ten years | 28,274 | 39,405 |
Total investment securities - held to maturity, Amortized Cost | 102,510 | 87,813 |
Held to maturity, Estimated Fair Value | ||
Due in one year or less | 200 | 600 |
Due after one through five years | 35,259 | 24,569 |
Due after five through ten years | 39,126 | 22,477 |
Due after ten years | 28,471 | 39,593 |
Total investment securities - held to maturity, Estimated Fair Value | $ 103,056 | $ 87,239 |
Investment Securities (Detail_5
Investment Securities (Details 5) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Available for sale, Amortized Cost | ||
Due in one year or less | $ 0 | $ 0 |
Due after one through five years | 0 | 0 |
Due after five through ten years | 0 | 0 |
Due after ten years | 6,080 | 7,220 |
Total investment securities - available for sale, Amortized Cost | 6,080 | 7,220 |
Available for sale, Estimated Fair Value | ||
Due in one year or less | 0 | 0 |
Due after one through five years | 0 | 0 |
Due after five through ten years | 0 | 0 |
Due after ten years | 6,294 | 7,496 |
Total investment securities - available for sale, Estimated Fair Value | $ 6,294 | $ 7,496 |
Investment Securities (Detail T
Investment Securities (Detail Textuals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Principal payments from investment securities available for sale | $ 8,600 | $ 7,400 | $ 25,200 | $ 19,100 | |
Investments with an unrealized loss position | 182 | 182 | $ 777 | ||
Unrealized holding losses, 12 months or more | 163 | 163 | 0 | ||
U.S. government sponsored enterprise MBS | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Payments to acquire Mortgage Backed Securities (MBS) categorized as Held-to-maturity | 26,200 | $ 12,400 | 39,700 | 50,900 | |
Investments with an unrealized loss position | 163 | 163 | 762 | ||
Unrealized holding losses, 12 months or more | 163 | 163 | 0 | ||
U.S. SBA securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Payments to acquire Mortgage Backed Securities (MBS) categorized as Held-to-maturity | $ 3,000 | ||||
Investments with an unrealized loss position | 19 | 19 | 15 | ||
Unrealized holding losses, 12 months or more | $ 0 | $ 0 | $ 0 |
Loans Held for Investment (Deta
Loans Held for Investment (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total loans held for investment, gross | $ 884,913 | $ 904,492 | $ 896,019 | ||||
Advance payments of escrows | 225 | 18 | |||||
Deferred loan costs, net | 5,496 | 5,560 | |||||
Allowance for loan losses | (7,080) | $ (7,061) | (7,385) | $ (7,531) | $ (8,075) | $ (8,039) | |
Total loans held for investment, net | 883,554 | 902,685 | |||||
Mortgage loans, Single-family | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total loans held for investment, gross | 314,824 | 314,808 | |||||
Mortgage loans, Multi-family | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total loans held for investment, gross | 449,812 | 476,008 | |||||
Mortgage loans, Commercial real estate | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total loans held for investment, gross | 115,355 | 109,726 | |||||
Mortgage loans, Construction | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total loans held for investment, gross | [1] | 4,139 | 3,174 | ||||
Mortgage loans other | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total loans held for investment, gross | 167 | 167 | |||||
Commercial business loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total loans held for investment, gross | [2] | 483 | 500 | ||||
Consumer loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total loans held for investment, gross | [3] | $ 133 | $ 109 | ||||
[1] | Net of $6.1 million and $4.3 million of undisbursed loan funds as of March 31, 2019 and June 30, 2018, respectively | ||||||
[2] | Net of $950 and $495 of undisbursed lines of credit as of March 31, 2019 and June 30, 2018, respectively. | ||||||
[3] | Net of $481 and $503 of undisbursed lines of credit as of March 31, 2019 and June 30, 2018, respectively. |
Loans Held for Investment (Pare
Loans Held for Investment (Parentheticals) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Mortgage loans, Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Undisbursed loan funds | $ 6,100 | $ 4,300 |
Commercial business loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Undisbursed loan funds | 950 | 495 |
Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Undisbursed loan funds | $ 481 | $ 503 |
Loans Held for Investment (De_2
Loans Held for Investment (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Fixed Rate | $ 14,017 | $ 14,017 | ||
Total loans held for investment, gross | 884,913 | 904,492 | $ 896,019 | |
Within One Year | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 273,841 | |||
After One Year Through 3 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 233,087 | |||
After 3 Years Through 5 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 284,710 | |||
After 5 Years Through 10 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 79,258 | |||
Mortgage loans, Single-family | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Fixed Rate | 12,215 | 12,215 | ||
Total loans held for investment, gross | 314,824 | 314,808 | ||
Mortgage loans, Single-family | Within One Year | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 100,302 | |||
Mortgage loans, Single-family | After One Year Through 3 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 37,514 | |||
Mortgage loans, Single-family | After 3 Years Through 5 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 102,300 | |||
Mortgage loans, Single-family | After 5 Years Through 10 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 62,493 | |||
Mortgage loans, Multi-family | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Fixed Rate | 194 | 194 | ||
Total loans held for investment, gross | 449,812 | 476,008 | ||
Mortgage loans, Multi-family | Within One Year | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 125,503 | |||
Mortgage loans, Multi-family | After One Year Through 3 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 162,437 | |||
Mortgage loans, Multi-family | After 3 Years Through 5 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 145,968 | |||
Mortgage loans, Multi-family | After 5 Years Through 10 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 15,710 | |||
Mortgage loans, Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Fixed Rate | 475 | 475 | ||
Total loans held for investment, gross | 115,355 | 109,726 | ||
Mortgage loans, Commercial real estate | Within One Year | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 44,247 | |||
Mortgage loans, Commercial real estate | After One Year Through 3 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 33,136 | |||
Mortgage loans, Commercial real estate | After 3 Years Through 5 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 36,442 | |||
Mortgage loans, Commercial real estate | After 5 Years Through 10 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 1,055 | |||
Mortgage loans, Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Fixed Rate | 558 | 558 | ||
Total loans held for investment, gross | [1] | 4,139 | 3,174 | |
Mortgage loans, Construction | Within One Year | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 3,581 | |||
Mortgage loans, Construction | After One Year Through 3 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 0 | |||
Mortgage loans, Construction | After 3 Years Through 5 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 0 | |||
Mortgage loans, Construction | After 5 Years Through 10 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 0 | |||
Mortgage loans other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Fixed Rate | 167 | 167 | ||
Total loans held for investment, gross | 167 | 167 | ||
Mortgage loans other | Within One Year | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 0 | |||
Mortgage loans other | After One Year Through 3 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 0 | |||
Mortgage loans other | After 3 Years Through 5 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 0 | |||
Mortgage loans other | After 5 Years Through 10 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 0 | |||
Commercial business loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Fixed Rate | 408 | 408 | ||
Total loans held for investment, gross | [2] | 483 | 500 | |
Commercial business loans | Within One Year | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 75 | |||
Commercial business loans | After One Year Through 3 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 0 | |||
Commercial business loans | After 3 Years Through 5 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 0 | |||
Commercial business loans | After 5 Years Through 10 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 0 | |||
Consumer loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Fixed Rate | 0 | 0 | ||
Total loans held for investment, gross | [3] | 133 | $ 109 | |
Consumer loans | Within One Year | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 133 | |||
Consumer loans | After One Year Through 3 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 0 | |||
Consumer loans | After 3 Years Through 5 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | 0 | |||
Consumer loans | After 5 Years Through 10 Years | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, Adjustable Rate | $ 0 | |||
[1] | Net of $6.1 million and $4.3 million of undisbursed loan funds as of March 31, 2019 and June 30, 2018, respectively | |||
[2] | Net of $950 and $495 of undisbursed lines of credit as of March 31, 2019 and June 30, 2018, respectively. | |||
[3] | Net of $481 and $503 of undisbursed lines of credit as of March 31, 2019 and June 30, 2018, respectively. |
Loans Held for Investment (De_3
Loans Held for Investment (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Total loans held for investment, gross | $ 884,913 | $ 904,492 | $ 896,019 | |
Pass | ||||
Total loans held for investment, gross | 869,809 | 889,346 | ||
Special Mention | ||||
Total loans held for investment, gross | 7,232 | 7,435 | ||
Substandard | ||||
Total loans held for investment, gross | 7,872 | 7,711 | ||
Single-family | ||||
Total loans held for investment, gross | 314,824 | 314,808 | ||
Single-family | Pass | ||||
Total loans held for investment, gross | 304,403 | 304,619 | ||
Single-family | Special Mention | ||||
Total loans held for investment, gross | 3,347 | 2,548 | ||
Single-family | Substandard | ||||
Total loans held for investment, gross | 7,074 | 7,641 | ||
Multi-family | ||||
Total loans held for investment, gross | 449,812 | 476,008 | ||
Multi-family | Pass | ||||
Total loans held for investment, gross | 445,927 | 472,061 | ||
Multi-family | Special Mention | ||||
Total loans held for investment, gross | 3,885 | 3,947 | ||
Multi-family | Substandard | ||||
Total loans held for investment, gross | 0 | 0 | ||
Commercial Real Estate | ||||
Total loans held for investment, gross | 115,355 | 109,726 | ||
Commercial Real Estate | Pass | ||||
Total loans held for investment, gross | 115,355 | 108,786 | ||
Commercial Real Estate | Special Mention | ||||
Total loans held for investment, gross | 0 | 940 | ||
Commercial Real Estate | Substandard | ||||
Total loans held for investment, gross | 0 | 0 | ||
Construction | ||||
Total loans held for investment, gross | [1] | 4,139 | 3,174 | |
Construction | Pass | ||||
Total loans held for investment, gross | 3,394 | 3,174 | ||
Construction | Special Mention | ||||
Total loans held for investment, gross | 0 | 0 | ||
Construction | Substandard | ||||
Total loans held for investment, gross | 745 | 0 | ||
Other Mortgage | ||||
Total loans held for investment, gross | 167 | 167 | ||
Other Mortgage | Pass | ||||
Total loans held for investment, gross | 167 | 167 | ||
Other Mortgage | Special Mention | ||||
Total loans held for investment, gross | 0 | 0 | ||
Other Mortgage | Substandard | ||||
Total loans held for investment, gross | 0 | 0 | ||
Commercial Business | ||||
Total loans held for investment, gross | [2] | 483 | 500 | |
Commercial Business | Pass | ||||
Total loans held for investment, gross | 430 | 430 | ||
Commercial Business | Special Mention | ||||
Total loans held for investment, gross | 0 | 0 | ||
Commercial Business | Substandard | ||||
Total loans held for investment, gross | 53 | 70 | ||
Consumer | ||||
Total loans held for investment, gross | [3] | 133 | 109 | |
Consumer | Pass | ||||
Total loans held for investment, gross | 133 | 109 | ||
Consumer | Special Mention | ||||
Total loans held for investment, gross | 0 | 0 | ||
Consumer | Substandard | ||||
Total loans held for investment, gross | $ 0 | $ 0 | ||
[1] | Net of $6.1 million and $4.3 million of undisbursed loan funds as of March 31, 2019 and June 30, 2018, respectively | |||
[2] | Net of $950 and $495 of undisbursed lines of credit as of March 31, 2019 and June 30, 2018, respectively. | |||
[3] | Net of $481 and $503 of undisbursed lines of credit as of March 31, 2019 and June 30, 2018, respectively. |
Loans Held for Investment (De_4
Loans Held for Investment (Details 3) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total collectively evaluated allowance | $ 6,948 | $ 7,228 | $ 7,355 | |||
Total individually evaluated allowance | 132 | 157 | 176 | |||
Total loan loss allowance | 7,080 | $ 7,061 | 7,385 | 7,531 | $ 8,075 | $ 8,039 |
Mortgage loans, Single-family | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total collectively evaluated allowance | 2,514 | 2,632 | 2,960 | |||
Total individually evaluated allowance | 123 | 151 | 161 | |||
Total loan loss allowance | 2,637 | 2,679 | 2,783 | 3,121 | 3,303 | 3,601 |
Mortgage loans, Multi-family | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total collectively evaluated allowance | 3,300 | 3,492 | 3,312 | |||
Total individually evaluated allowance | 0 | 0 | ||||
Total loan loss allowance | 3,300 | 3,280 | 3,492 | 3,312 | 3,295 | 3,420 |
Mortgage loans, Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total collectively evaluated allowance | 1,042 | 1,030 | 966 | |||
Total individually evaluated allowance | 0 | 0 | ||||
Total loan loss allowance | 1,042 | 1,019 | 1,030 | 966 | 933 | 879 |
Mortgage loans, Construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total collectively evaluated allowance | 63 | 47 | 94 | |||
Total individually evaluated allowance | 0 | 0 | ||||
Total loan loss allowance | 63 | 48 | 47 | 94 | 504 | 96 |
Mortgage loans other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total collectively evaluated allowance | 3 | 3 | ||||
Total individually evaluated allowance | 0 | |||||
Total loan loss allowance | 3 | 3 | 3 | |||
Commercial business loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total collectively evaluated allowance | 18 | 18 | 16 | |||
Total individually evaluated allowance | 9 | 6 | 15 | |||
Total loan loss allowance | 27 | 26 | 24 | 31 | 32 | 36 |
Consumer loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total collectively evaluated allowance | 8 | 6 | 7 | |||
Total individually evaluated allowance | 0 | 0 | ||||
Total loan loss allowance | $ 8 | $ 6 | $ 6 | $ 7 | $ 8 | $ 7 |
Loans Held for Investment (De_5
Loans Held for Investment (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of the period | $ 7,061 | $ 8,075 | $ 7,385 | $ 8,039 |
Provision (recovery) for loan losses | 4 | (505) | (450) | (347) |
Total recoveries | 23 | 71 | 179 | 203 |
Total charge-offs | (8) | (110) | (34) | (364) |
Net (charge-offs) recoveries | 15 | (39) | 145 | (161) |
Balance, end of the period | $ 7,080 | $ 7,531 | $ 7,080 | $ 7,531 |
Allowance for loan losses as a percentage of gross loans held for investment at the end of the period | 0.79% | 0.84% | 0.79% | 0.84% |
Net charge-offs (recoveries) as a percentage of average loans receivable, net, during the period (annualized) | (0.01%) | 0.02% | (0.02%) | 0.02% |
Mortgage loans, Single-family | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of the period | $ 2,679 | $ 3,303 | $ 2,783 | $ 3,601 |
Provision (recovery) for loan losses | (58) | (143) | (292) | (319) |
Total recoveries | 22 | 71 | 177 | 203 |
Total charge-offs | (6) | (110) | (31) | (364) |
Balance, end of the period | $ 2,637 | $ 3,121 | $ 2,637 | $ 3,121 |
Allowance for loan losses as a percentage of gross loans held for investment at the end of the period | 0.84% | 0.98% | 0.84% | 0.98% |
Mortgage loans, Multi-family | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of the period | $ 3,280 | $ 3,295 | $ 3,492 | $ 3,420 |
Provision (recovery) for loan losses | 20 | 17 | (192) | (108) |
Total recoveries | 0 | 0 | 0 | 0 |
Total charge-offs | 0 | 0 | 0 | 0 |
Balance, end of the period | $ 3,300 | $ 3,312 | $ 3,300 | $ 3,312 |
Allowance for loan losses as a percentage of gross loans held for investment at the end of the period | 0.73% | 0.71% | 0.73% | 0.71% |
Mortgage loans, Commercial real estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of the period | $ 1,019 | $ 933 | $ 1,030 | $ 879 |
Provision (recovery) for loan losses | 23 | 33 | 12 | 87 |
Total recoveries | 0 | 0 | 0 | 0 |
Total charge-offs | 0 | 0 | 0 | 0 |
Balance, end of the period | $ 1,042 | $ 966 | $ 1,042 | $ 966 |
Allowance for loan losses as a percentage of gross loans held for investment at the end of the period | 0.90% | 0.90% | 0.90% | 0.90% |
Mortgage loans, Construction | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of the period | $ 48 | $ 504 | $ 47 | $ 96 |
Provision (recovery) for loan losses | 15 | (410) | 16 | (2) |
Total recoveries | 0 | 0 | 0 | 0 |
Total charge-offs | 0 | 0 | 0 | 0 |
Balance, end of the period | $ 63 | $ 94 | $ 63 | $ 94 |
Allowance for loan losses as a percentage of gross loans held for investment at the end of the period | 1.52% | 1.77% | 1.52% | 1.77% |
Mortgage loans other | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of the period | $ 3 | $ 3 | ||
Provision (recovery) for loan losses | 0 | 0 | ||
Total recoveries | 0 | 0 | ||
Total charge-offs | 0 | 0 | ||
Balance, end of the period | $ 3 | $ 3 | ||
Allowance for loan losses as a percentage of gross loans held for investment at the end of the period | 1.80% | 1.80% | ||
Commercial business loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of the period | $ 26 | $ 32 | $ 24 | $ 36 |
Provision (recovery) for loan losses | 1 | (1) | 3 | (5) |
Total recoveries | 0 | 0 | 0 | 0 |
Total charge-offs | 0 | 0 | 0 | 0 |
Balance, end of the period | $ 27 | $ 31 | $ 27 | $ 31 |
Allowance for loan losses as a percentage of gross loans held for investment at the end of the period | 5.59% | 6.89% | 5.59% | 6.89% |
Consumer loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of the period | $ 6 | $ 8 | $ 6 | $ 7 |
Provision (recovery) for loan losses | 3 | (1) | 3 | 0 |
Total recoveries | 1 | 0 | 2 | 0 |
Total charge-offs | (2) | 0 | (3) | 0 |
Balance, end of the period | $ 8 | $ 7 | $ 8 | $ 7 |
Allowance for loan losses as a percentage of gross loans held for investment at the end of the period | 6.02% | 5.38% | 6.02% | 5.38% |
Loans Held for Investment (De_6
Loans Held for Investment (Details 5) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | $ 877,842 | $ 897,476 | |
30-89 Days Past Due | 699 | 805 | |
Non-Accrual | [1] | 6,372 | 6,211 |
Total Loans Held for Investment, Gross | 884,913 | 904,492 | |
Mortgage loans, Single-family | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 308,554 | 307,863 | |
30-89 Days Past Due | 696 | 804 | |
Non-Accrual | [1] | 5,574 | 6,141 |
Total Loans Held for Investment, Gross | 314,824 | 314,808 | |
Mortgage loans, Multi-family | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 449,812 | 476,008 | |
30-89 Days Past Due | 0 | 0 | |
Non-Accrual | [1] | 0 | 0 |
Total Loans Held for Investment, Gross | 449,812 | 476,008 | |
Mortgage loans, Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 115,355 | 109,726 | |
30-89 Days Past Due | 0 | 0 | |
Non-Accrual | [1] | 0 | 0 |
Total Loans Held for Investment, Gross | 115,355 | 109,726 | |
Mortgage loans, Construction | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 3,394 | 3,174 | |
30-89 Days Past Due | 0 | 0 | |
Non-Accrual | [1] | 745 | 0 |
Total Loans Held for Investment, Gross | 4,139 | 3,174 | |
Mortgage loans other | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 167 | 167 | |
30-89 Days Past Due | 0 | 0 | |
Non-Accrual | [1] | 0 | 0 |
Total Loans Held for Investment, Gross | 167 | 167 | |
Commercial business loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 430 | 430 | |
30-89 Days Past Due | 0 | 0 | |
Non-Accrual | [1] | 53 | 70 |
Total Loans Held for Investment, Gross | 483 | 500 | |
Consumer loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 130 | 108 | |
30-89 Days Past Due | 3 | 1 | |
Non-Accrual | [1] | 0 | 0 |
Total Loans Held for Investment, Gross | $ 133 | $ 109 | |
[1] | All loans 90 days or greater past due are placed on non-accrual status. |
Loans Held for Investment (De_7
Loans Held for Investment (Details 6) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Balance, beginning of the period | $ 7,061 | $ 8,075 | $ 7,385 | $ 8,039 | |
Provision (recovery) for loan losses | 4 | (505) | (450) | (347) | |
Recoveries | 23 | 71 | 179 | 203 | |
Charge-offs | (8) | (110) | (34) | (364) | |
Balance, end of the period | 7,080 | 7,531 | 7,080 | 7,531 | |
Allowance for loan losses: | |||||
Individually evaluated for impairment | 132 | 176 | 132 | 176 | $ 157 |
Collectively evaluated for impairment | 6,948 | 7,355 | 6,948 | 7,355 | 7,228 |
Loans held for investment: | |||||
Individually evaluated for impairment | 6,802 | 8,002 | 6,802 | 8,002 | |
Collectively evaluated for impairment | 878,111 | 888,017 | 878,111 | 888,017 | |
Total loans held for investment, gross | $ 884,913 | $ 896,019 | $ 884,913 | $ 896,019 | 904,492 |
Allowance for loan losses as a percentage of gross loans held for investment at the end of the period | 0.79% | 0.84% | 0.79% | 0.84% | |
Mortgage loans, Single-family | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Balance, beginning of the period | $ 2,679 | $ 3,303 | $ 2,783 | $ 3,601 | |
Provision (recovery) for loan losses | (58) | (143) | (292) | (319) | |
Recoveries | 22 | 71 | 177 | 203 | |
Charge-offs | (6) | (110) | (31) | (364) | |
Balance, end of the period | 2,637 | 3,121 | 2,637 | 3,121 | |
Allowance for loan losses: | |||||
Individually evaluated for impairment | 123 | 161 | 123 | 161 | 151 |
Collectively evaluated for impairment | 2,514 | 2,960 | 2,514 | 2,960 | 2,632 |
Loans held for investment: | |||||
Individually evaluated for impairment | 6,004 | 7,929 | 6,004 | 7,929 | |
Collectively evaluated for impairment | 308,820 | 308,983 | 308,820 | 308,983 | |
Total loans held for investment, gross | $ 314,824 | $ 316,912 | $ 314,824 | $ 316,912 | |
Allowance for loan losses as a percentage of gross loans held for investment at the end of the period | 0.84% | 0.98% | 0.84% | 0.98% | |
Mortgage loans, Multi-family | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Balance, beginning of the period | $ 3,280 | $ 3,295 | $ 3,492 | $ 3,420 | |
Provision (recovery) for loan losses | 20 | 17 | (192) | (108) | |
Recoveries | 0 | 0 | 0 | 0 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Balance, end of the period | 3,300 | 3,312 | 3,300 | 3,312 | |
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Collectively evaluated for impairment | 3,300 | 3,312 | 3,300 | 3,312 | 3,492 |
Loans held for investment: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Collectively evaluated for impairment | 449,812 | 466,266 | 449,812 | 466,266 | |
Total loans held for investment, gross | $ 449,812 | $ 466,266 | $ 449,812 | $ 466,266 | |
Allowance for loan losses as a percentage of gross loans held for investment at the end of the period | 0.73% | 0.71% | 0.73% | 0.71% | |
Mortgage loans, Commercial real estate | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Balance, beginning of the period | $ 1,019 | $ 933 | $ 1,030 | $ 879 | |
Provision (recovery) for loan losses | 23 | 33 | 12 | 87 | |
Recoveries | 0 | 0 | 0 | 0 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Balance, end of the period | 1,042 | 966 | 1,042 | 966 | |
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Collectively evaluated for impairment | 1,042 | 966 | 1,042 | 966 | 1,030 |
Loans held for investment: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Collectively evaluated for impairment | 115,355 | 106,937 | 115,355 | 106,937 | |
Total loans held for investment, gross | $ 115,355 | $ 106,937 | $ 115,355 | $ 106,937 | |
Allowance for loan losses as a percentage of gross loans held for investment at the end of the period | 0.90% | 0.90% | 0.90% | 0.90% | |
Mortgage loans, Construction | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Balance, beginning of the period | $ 48 | $ 504 | $ 47 | $ 96 | |
Provision (recovery) for loan losses | 15 | (410) | 16 | (2) | |
Recoveries | 0 | 0 | 0 | 0 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Balance, end of the period | 63 | 94 | 63 | 94 | |
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Collectively evaluated for impairment | 63 | 94 | 63 | 94 | 47 |
Loans held for investment: | |||||
Individually evaluated for impairment | 745 | 0 | 745 | 0 | |
Collectively evaluated for impairment | 3,394 | 5,324 | 3,394 | 5,324 | |
Total loans held for investment, gross | $ 4,139 | $ 5,324 | $ 4,139 | $ 5,324 | |
Allowance for loan losses as a percentage of gross loans held for investment at the end of the period | 1.52% | 1.77% | 1.52% | 1.77% | |
Mortgage loans other | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Balance, beginning of the period | $ 3 | $ 3 | |||
Provision (recovery) for loan losses | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Charge-offs | 0 | 0 | |||
Balance, end of the period | 3 | 3 | |||
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 3 | 3 | 3 | ||
Loans held for investment: | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 167 | 167 | |||
Total loans held for investment, gross | $ 167 | $ 167 | |||
Allowance for loan losses as a percentage of gross loans held for investment at the end of the period | 1.80% | 1.80% | |||
Commercial business loans | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Balance, beginning of the period | $ 26 | $ 32 | $ 24 | $ 36 | |
Provision (recovery) for loan losses | 1 | (1) | 3 | (5) | |
Recoveries | 0 | 0 | 0 | 0 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Balance, end of the period | 27 | 31 | 27 | 31 | |
Allowance for loan losses: | |||||
Individually evaluated for impairment | 9 | 15 | 9 | 15 | 6 |
Collectively evaluated for impairment | 18 | 16 | 18 | 16 | 18 |
Loans held for investment: | |||||
Individually evaluated for impairment | 53 | 73 | 53 | 73 | |
Collectively evaluated for impairment | 430 | 377 | 430 | 377 | |
Total loans held for investment, gross | $ 483 | $ 450 | $ 483 | $ 450 | |
Allowance for loan losses as a percentage of gross loans held for investment at the end of the period | 5.59% | 6.89% | 5.59% | 6.89% | |
Consumer loans | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Balance, beginning of the period | $ 6 | $ 8 | $ 6 | $ 7 | |
Provision (recovery) for loan losses | 3 | (1) | 3 | 0 | |
Recoveries | 1 | 0 | 2 | 0 | |
Charge-offs | (2) | 0 | (3) | 0 | |
Balance, end of the period | 8 | 7 | 8 | 7 | |
Allowance for loan losses: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Collectively evaluated for impairment | 8 | 7 | 8 | 7 | $ 6 |
Loans held for investment: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Collectively evaluated for impairment | 133 | 130 | 133 | 130 | |
Total loans held for investment, gross | $ 133 | $ 130 | $ 133 | $ 130 | |
Allowance for loan losses as a percentage of gross loans held for investment at the end of the period | 6.02% | 5.38% | 6.02% | 5.38% |
Loans Held for Investment (De_8
Loans Held for Investment (Details 7) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Unpaid Principal Balance | $ 6,947 | $ 6,972 | |
Related Charge-Offs | (539) | (724) | |
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Recorded Investment | 6,408 | 6,248 | |
Related Allowance | [1] | (293) | (191) |
Recorded Investment, Net of Allowance | 6,115 | 6,057 | |
Mortgage loans, Single-family | |||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
With a related allowance Unpaid Principal Balance | 1,813 | 1,333 | |
Without a related allowance, Unpaid Principal Balance | [2] | 4,336 | 5,569 |
Unpaid Principal Balance | 6,149 | 6,902 | |
With Related Allowance, Related Charge-Offs | 0 | 0 | |
With No Related Allowance, Related Charge-Offs | [2] | (539) | (724) |
Related Charge-Offs | (539) | (724) | |
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
With Related Allowance, Recorded Investment | 1,813 | 1,333 | |
With No Related Allowance, Recorded Investment | [2] | 3,797 | 4,845 |
Recorded Investment | 5,610 | 6,178 | |
Related Allowance | [1] | (284) | (185) |
Recorded Investment, with Related Allowance, Net | 1,529 | 1,148 | |
Recorded Investment, with No Related Allowance, Net | [2] | 3,797 | 4,845 |
Recorded Investment, Net of Allowance | 5,326 | 5,993 | |
Mortgage loans, Construction | |||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Without a related allowance, Unpaid Principal Balance | [3] | 745 | |
Unpaid Principal Balance | 745 | ||
With No Related Allowance, Related Charge-Offs | [3] | 0 | |
Related Charge-Offs | 0 | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
With No Related Allowance, Recorded Investment | [3] | 745 | |
Recorded Investment | 745 | ||
Related Allowance | [1] | 0 | |
Recorded Investment, with No Related Allowance, Net | [3] | 745 | |
Recorded Investment, Net of Allowance | 745 | ||
Commercial business loans | |||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
With a related allowance Unpaid Principal Balance | 53 | 70 | |
Unpaid Principal Balance | 53 | 70 | |
With Related Allowance, Related Charge-Offs | 0 | 0 | |
Related Charge-Offs | 0 | 0 | |
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
With Related Allowance, Recorded Investment | 53 | 70 | |
Recorded Investment | 53 | 70 | |
Related Allowance | [1] | (9) | (6) |
Recorded Investment, with Related Allowance, Net | 44 | 64 | |
Recorded Investment, Net of Allowance | $ 44 | $ 64 | |
[1] | Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan, and fair value credit adjustments. | ||
[2] | There was no related allowance for loan losses because the loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance. | ||
[3] | There was no related allowance for loan losses because the loans, net of undisbursed loan funds, have been charged-off to their fair value or the fair value of the collateral is higher than the net loan balance. |
Loans Held for Investment (De_9
Loans Held for Investment (Details 8) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||||
Without related allowances, Average Recorded Investment | $ 3,530 | $ 6,397 | $ 4,149 | $ 7,318 |
With related allowances, Average Recorded Investment | 2,895 | 1,244 | 2,527 | 814 |
Average Recorded Investment | 6,425 | 7,641 | 6,676 | 8,132 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||||
Without related allowances, Interest Income Recognized | 0 | 49 | 229 | 197 |
With related allowances, Interest Income Recognized | 30 | 21 | 92 | 43 |
Interest Income Recognized | 30 | 70 | 321 | 240 |
Mortgage loans, Single-family | ||||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||||
Without related allowances, Average Recorded Investment | 2,785 | 6,397 | 3,570 | 7,296 |
With related allowances, Average Recorded Investment | 2,841 | 1,170 | 2,466 | 738 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||||
Without related allowances, Interest Income Recognized | 0 | 49 | 229 | 184 |
With related allowances, Interest Income Recognized | 29 | 20 | 89 | 39 |
Mortgage loans, Construction | ||||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||||
Without related allowances, Average Recorded Investment | 745 | 0 | 579 | 0 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||||
Without related allowances, Interest Income Recognized | 0 | 0 | 0 | 0 |
Commercial business loans | ||||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||||
With related allowances, Average Recorded Investment | 54 | 74 | 61 | 76 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||||
With related allowances, Interest Income Recognized | $ 1 | $ 1 | 3 | 4 |
Commercial Real Estate | ||||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||||
Without related allowances, Average Recorded Investment | 0 | 22 | ||
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||||
Without related allowances, Interest Income Recognized | $ 0 | $ 13 |
Loans Held for Investment (D_10
Loans Held for Investment (Details 9) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 |
Financing Receivable, Modifications [Line Items] | |||
Restructured loans on non-accrual status | $ 2,713 | $ 3,392 | |
Restructured loans on accrual status | 1,865 | 1,788 | |
Restructured loans | 4,578 | 5,180 | $ 2,200 |
Mortgage loans, Single-family | |||
Financing Receivable, Modifications [Line Items] | |||
Restructured loans on non-accrual status | 2,669 | 3,328 | |
Restructured loans on accrual status | 1,865 | 1,788 | |
Commercial business loans | |||
Financing Receivable, Modifications [Line Items] | |||
Restructured loans on non-accrual status | $ 44 | $ 64 |
Loans Held for Investment (D_11
Loans Held for Investment (Details 10) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 | |
Financing Receivable, Impaired [Line Items] | |||
Restructured Loans, Unpaid Principal Balance | $ 5,078 | $ 5,748 | |
Restructured Loans, Related Charge-offs | (368) | (411) | |
Restructured Loans, Recorded Investment | 4,710 | 5,337 | |
Restructured Loans, Allowance for Loan Losses | [1] | (132) | (157) |
Restructured loans, Net Investment | 4,578 | 5,180 | |
Mortgage loans, Single-family | |||
Financing Receivable, Impaired [Line Items] | |||
Restructured Loans, With Related Allowance, Unpaid Principal Balance | 2,207 | 2,228 | |
Restructured Loans, Without a Related Allowance, Unpaid Principal Balance | [2] | 2,818 | 3,450 |
Restructured Loans, Unpaid Principal Balance | 5,025 | 5,678 | |
Restructured Loans, With Related Allowance, Related Charge-offs | 0 | 0 | |
Restructured Loans, Without a Related Allowance, Related Charge-offs | [2] | (368) | (411) |
Restructured Loans, Related Charge-offs | (368) | (411) | |
Restructured Loans, With a Related Allowance, Recorded Investment | 2,207 | 2,228 | |
Restructured Loans, Without a Related Allowance, Recorded Investment | [2] | 2,450 | 3,039 |
Restructured Loans, Recorded Investment | 4,657 | 5,267 | |
Restructured Loans, Allowance for Loan Losses | [1] | (123) | (151) |
Restructured loans, With a related allowance, Net Investment | 2,084 | 2,077 | |
Restructured Loans, Without a Related Allowance, Net Investment | [2] | 2,450 | 3,039 |
Restructured loans, Net Investment | 4,534 | 5,116 | |
Commercial business loans | |||
Financing Receivable, Impaired [Line Items] | |||
Restructured Loans, With Related Allowance, Unpaid Principal Balance | 53 | 70 | |
Restructured Loans, Unpaid Principal Balance | 53 | 70 | |
Restructured Loans, With Related Allowance, Related Charge-offs | 0 | 0 | |
Restructured Loans, Related Charge-offs | 0 | 0 | |
Restructured Loans, With a Related Allowance, Recorded Investment | 53 | 70 | |
Restructured Loans, Recorded Investment | 53 | 70 | |
Restructured Loans, Allowance for Loan Losses | [1] | (9) | (6) |
Restructured loans, With a related allowance, Net Investment | 44 | 64 | |
Restructured loans, Net Investment | $ 44 | $ 64 | |
[1] | Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan. | ||
[2] | There was no related allowance for loan losses because the loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance. |
Loans Held for Investment (D_12
Loans Held for Investment (Detail Textuals) | 9 Months Ended | |
Mar. 31, 2019 | Jun. 30, 2018 | |
Fixed-rate loans as a percentage of total loans held for investment | 2.00% | 2.00% |
First Trust Deed Loans | ||
Loans deemed uncollectible, period of delinquency | 150 days | |
Commercial Business or Second Trust Deed Loans | ||
Loans deemed uncollectible, period of delinquency | 120 days | |
Troubled Debt Restructurings | ||
Loans deemed uncollectible, period of delinquency | 90 days | |
Bankruptcy | ||
Loans deemed uncollectible, period of delinquency | 60 days | |
Maximum | ||
Segregated restructured loans, period of delinquency | 90 days | |
Maximum | Bankruptcy | ||
Allowance for loan losses, pooling method, period of delinquency | 60 days |
Loans Held for Investment (D_13
Loans Held for Investment (Detail Textuals 1) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($)Loan | Mar. 31, 2018USD ($) | Mar. 31, 2019USD ($)Loan | Mar. 31, 2018USD ($)Loan | Jun. 30, 2018USD ($)Loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Average investment in non-performing loans | $ 6,425,000 | $ 7,641,000 | $ 6,676,000 | $ 8,132,000 | |
Interest income, non-performing loans, cash basis | 63,000 | 121,000 | 458,000 | 466,000 | |
Reduction in loan balances under cost recovery method | $ 33,000 | ||||
Interest lost on non-performing Loans | 51,000 | 137,000 | $ 226,000 | ||
Number of modified loans | Loan | 10 | 2 | 11 | ||
Restructured loans | $ 4,578,000 | 2,200,000 | 4,578,000 | $ 2,200,000 | $ 5,180,000 |
Restructured loans on accrual status | 1,865,000 | 1,865,000 | 1,788,000 | ||
Restructured loans on non-accrual status | 2,713,000 | 2,713,000 | 3,392,000 | ||
Interest income | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Interest income, non-performing loans, cash basis | 30,000 | $ 70,000 | 321,000 | $ 240,000 | |
Mortgage loans, Single-family | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Restructured loans on accrual status | 1,865,000 | 1,865,000 | 1,788,000 | ||
Restructured loans on non-accrual status | 2,669,000 | 2,669,000 | $ 3,328,000 | ||
Construction | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Commitments to lend additional funds | $ 1,200,000 | $ 1,200,000 | |||
Pass | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of modified loans | Loan | 1 | ||||
Special Mention | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of modified loans | Loan | 1 | 1 | |||
Restructured loans on accrual status | $ 440,000 | $ 440,000 | $ (389,000) | ||
Special Mention | Restructured loans on accrual status | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of modified loans | Loan | 1 | ||||
Substandard | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of modified loans | Loan | 1 | 1 | |||
Restructured loans on accrual status | $ 1,400,000 | $ 1,400,000 | $ (1,400,000) | ||
Substandard | Restructured loans on accrual status | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of modified loans | Loan | 8 | 9 | |||
Restructured loans on non-accrual status | $ 2,700,000 | 2,700,000 | $ 3,400,000 | ||
Current | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Restructured loans | $ 2,900,000 | $ 2,900,000 | $ 2,900,000 | ||
Percent of total restructured loans on current status | 63.00% | 63.00% | 56.00% |
Loans Held for Investment (D_14
Loans Held for Investment (Detail Textuals 2) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019Property | Mar. 31, 2018Property | Mar. 31, 2019Property | Mar. 31, 2018Property | Jun. 30, 2018USD ($)Property | |
Number of properties acquired in settlement of loans | 0 | 2 | 3 | ||
Number of previously foreclosed properties sold | 0 | 1 | 2 | 3 | |
Southern California | |||||
Number of real estate owned properties | 2 | ||||
Real estate owned fair value | $ | $ 906 |
Derivative and Other Financia_3
Derivative and Other Financial Instruments with Off-Balance Sheet Risks (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Derivative [Line Items] | ||
Total | $ 11,886 | $ 14,652 |
Undisbursed loan funds - Construction loans | ||
Derivative [Line Items] | ||
Total | 6,109 | 4,302 |
Undisbursed lines of credit - Commercial business loans | ||
Derivative [Line Items] | ||
Total | 950 | 495 |
Undisbursed lines of credit - Consumer loans | ||
Derivative [Line Items] | ||
Total | 481 | 503 |
Commitments to extend credit on loans to be held for investment | ||
Derivative [Line Items] | ||
Total | $ 4,346 | $ 9,352 |
Derivative and Other Financia_4
Derivative and Other Financial Instruments with Off-Balance Sheet Risks (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of the period | $ 7,061 | $ 8,075 | $ 7,385 | $ 8,039 |
Provision (recovery) | (4) | 505 | 450 | 347 |
Balance, end of the period | 7,080 | 7,531 | 7,080 | 7,531 |
Commitments to extend credit and undisbursed funds | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of the period | 150 | 188 | 157 | 277 |
Provision (recovery) | 1 | (29) | (6) | (118) |
Balance, end of the period | $ 151 | $ 159 | $ 151 | $ 159 |
Derivative and Other Financia_5
Derivative and Other Financial Instruments with Off-Balance Sheet Risks (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative [Line Items] | ||||
Total net gain (loss) | $ 201 | $ (15) | $ (369) | $ (936) |
Commitments to extend credit on loans to be held for sale | ||||
Derivative [Line Items] | ||||
Total net gain (loss) | (264) | 266 | (585) | 173 |
Mandatory loan sale commitments and TBA MBS trades | ||||
Derivative [Line Items] | ||||
Total net gain (loss) | 465 | (281) | 216 | (1,072) |
Option contracts, net | ||||
Derivative [Line Items] | ||||
Total net gain (loss) | $ 0 | $ 0 | $ 0 | $ (37) |
Derivative and Other Financia_6
Derivative and Other Financial Instruments with Off-Balance Sheet Risks (Details 3) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 | |
Amount | |||
Derivative [Line Items] | |||
Derivative financial instruments | $ (26,818) | $ (90,355) | |
Fair Value | |||
Derivative [Line Items] | |||
Derivative financial instruments | 16 | 385 | |
Commitments to extend credit on loans to be held for sale | Amount | |||
Derivative [Line Items] | |||
Derivative financial instruments | [1] | 12,211 | 56,906 |
Commitments to extend credit on loans to be held for sale | Fair Value | |||
Derivative [Line Items] | |||
Derivative financial instruments | [1] | 240 | 825 |
Best efforts loan sale commitments | Amount | |||
Derivative [Line Items] | |||
Derivative financial instruments | (10,212) | (29,502) | |
Best efforts loan sale commitments | Fair Value | |||
Derivative [Line Items] | |||
Derivative financial instruments | 0 | 0 | |
Mandatory loan sale commitments and TBA MBS trades | Amount | |||
Derivative [Line Items] | |||
Derivative financial instruments | (28,817) | (117,759) | |
Mandatory loan sale commitments and TBA MBS trades | Fair Value | |||
Derivative [Line Items] | |||
Derivative financial instruments | $ (224) | $ (440) | |
[1] | Net of 18.6% at March 31, 2019 and 24.7% at June 30, 2018 of commitments which management has estimated may not fund. |
Derivative and Other Financia_7
Derivative and Other Financial Instruments with Off-Balance Sheet Risks (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Summary Of Recourse Liability [Roll Forward] | ||||
Balance, beginning of the period | $ 250 | $ 283 | $ 283 | $ 305 |
Recovery from recourse liability | 0 | 0 | (33) | (22) |
Net settlements in lieu of loan repurchases | 0 | 0 | 0 | 0 |
Balance, end of the period | $ 250 | $ 283 | $ 250 | $ 283 |
Derivative and Other Financia_8
Derivative and Other Financial Instruments with Off-Balance Sheet Risks (Detail Textuals) | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2019USD ($)Loan | Mar. 31, 2018USD ($)Loan | Mar. 31, 2019USD ($)Loan | Mar. 31, 2018USD ($)Loan | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) | |
Derivative [Line Items] | ||||||||
Derivative assets net amount | $ 0 | $ 0 | $ 0 | |||||
Derivative liabilities net amount | 224,000 | 224,000 | $ 464,000 | |||||
Amount of loan repurchased | $ 446,000 | $ 602,000 | $ 699,000 | $ 602,000 | ||||
Commitments estimated may not fund (percent) | 18.60% | 18.60% | 24.70% | |||||
Number of loans repurchased | Loan | 2 | 2 | 5 | 2 | ||||
Number of fully charged off loans repurchased | Loan | 2 | |||||||
Amount of fully charged off loans repurchased | $ (25,000) | |||||||
Recovery from recourse liability | $ 0 | $ 0 | 33,000 | $ 22,000 | ||||
Total recourse reserve for loans sold | 250,000 | $ 283,000 | 250,000 | $ 283,000 | $ 250,000 | $ 283,000 | $ 283,000 | $ 305,000 |
Other Assets | ||||||||
Derivative [Line Items] | ||||||||
Derivative assets net amount | 240,000 | 240,000 | 849,000 | |||||
Other Liabilities | ||||||||
Derivative [Line Items] | ||||||||
Derivative liabilities net amount | 224,000 | 224,000 | 464,000 | |||||
Loans held for investment and loans held for sale | ||||||||
Derivative [Line Items] | ||||||||
Commitments to extend credit | $ 16,600,000 | $ 16,600,000 | $ 66,300,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Fair Value Disclosures [Abstract] | ||
Loans held for investment, Aggregate Fair Value | $ 5,239 | $ 5,234 |
Loans held for investment, Aggregate Unpaid Principal Balance | 5,417 | 5,546 |
Loans held for investment, Net Unrealized (Loss) Gain | (178) | (312) |
Loans held for sale, Aggregate Fair Value | 30,500 | 96,298 |
Loans held for sale, Aggregate Unpaid Principal Balance | 29,565 | 93,791 |
Loans held for sale, Net Unrealized (loss) gain | $ 935 | $ 2,507 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | $ 5,239 | $ 5,234 |
Loans held for sale, at fair value | 30,500 | 96,298 |
Derivative assets | 0 | 0 |
Derivative liabilities | 224 | 464 |
Total liabilities | 224 | 464 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 6,294 | 7,496 |
Loans held for investment, at fair value | 5,239 | 5,234 |
Loans held for sale, at fair value | 30,500 | 96,298 |
Interest-only strips | 18 | 23 |
Derivative assets | 240 | 849 |
Total assets | 42,291 | 109,900 |
Derivative liabilities | 224 | 464 |
Total liabilities | 224 | 464 |
Recurring | Commitments to extend credit on loans to be held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 240 | 849 |
Derivative liabilities | 24 | |
Recurring | Mandatory loan sale commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 7 | 32 |
Recurring | TBA MBS trades | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 217 | 408 |
Recurring | U.S. government agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 3,796 | 4,384 |
Recurring | U.S. government sponsored enterprise MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 2,198 | 2,762 |
Recurring | Private issue CMO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 300 | 350 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 0 | 0 |
Loans held for investment, at fair value | 0 | 0 |
Loans held for sale, at fair value | 0 | 0 |
Interest-only strips | 0 | 0 |
Derivative assets | 0 | 0 |
Total assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring | Level 1 | Commitments to extend credit on loans to be held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | |
Recurring | Level 1 | Mandatory loan sale commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | TBA MBS trades | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | U.S. government agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 0 | 0 |
Recurring | Level 1 | U.S. government sponsored enterprise MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 0 | 0 |
Recurring | Level 1 | Private issue CMO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 5,994 | 7,146 |
Loans held for investment, at fair value | 0 | 0 |
Loans held for sale, at fair value | 30,500 | 96,298 |
Interest-only strips | 0 | 0 |
Derivative assets | 0 | 0 |
Total assets | 36,494 | 103,444 |
Derivative liabilities | 217 | 408 |
Total liabilities | 217 | 408 |
Recurring | Level 2 | Commitments to extend credit on loans to be held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | |
Recurring | Level 2 | Mandatory loan sale commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 2 | TBA MBS trades | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 217 | 408 |
Recurring | Level 2 | U.S. government agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 3,796 | 4,384 |
Recurring | Level 2 | U.S. government sponsored enterprise MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 2,198 | 2,762 |
Recurring | Level 2 | Private issue CMO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 0 | 0 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 300 | 350 |
Loans held for investment, at fair value | 5,239 | 5,234 |
Loans held for sale, at fair value | 0 | 0 |
Interest-only strips | 18 | 23 |
Derivative assets | 240 | 849 |
Total assets | 5,797 | 6,456 |
Derivative liabilities | 7 | 56 |
Total liabilities | 7 | 56 |
Recurring | Level 3 | Commitments to extend credit on loans to be held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 240 | 849 |
Derivative liabilities | 24 | |
Recurring | Level 3 | Mandatory loan sale commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 7 | 32 |
Recurring | Level 3 | TBA MBS trades | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | U.S. government agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 0 | 0 |
Recurring | Level 3 | U.S. government sponsored enterprise MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 0 | 0 |
Recurring | Level 3 | Private issue CMO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | $ 300 | $ 350 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance | $ 5,821 | $ 6,294 | $ 6,400 | $ 7,830 | |
Total gains or losses (realized/unrealized) Included in earnings | (180) | 122 | (434) | (35) | |
Total gains or losses (realized/unrealized) Included in other comprehensive loss | (2) | (4) | (5) | (8) | |
Purchases | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (40) | (65) | (832) | (1,962) | |
Transfers in and/or out of Level 3 | 191 | 0 | 661 | 522 | |
Ending balance | 5,790 | 6,347 | 5,790 | 6,347 | |
Private issue CMO | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance | 310 | 419 | 350 | 461 | |
Total gains or losses (realized/unrealized) Included in earnings | 0 | 0 | 0 | 0 | |
Total gains or losses (realized/unrealized) Included in other comprehensive loss | 1 | (2) | 0 | (1) | |
Purchases | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (11) | (22) | (50) | (65) | |
Transfers in and/or out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 300 | 395 | 300 | 395 | |
Loans held-for investment, at-fair value | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance | [1] | 4,995 | 5,157 | 5,234 | 6,445 |
Total gains or losses (realized/unrealized) Included in earnings | [1] | 87 | (118) | 133 | (72) |
Total gains or losses (realized/unrealized) Included in other comprehensive loss | [1] | 0 | 0 | 0 | 0 |
Purchases | [1] | 0 | 0 | 0 | 0 |
Issuances | [1] | 0 | 0 | 0 | 0 |
Settlements | [1] | (34) | (43) | (789) | (1,899) |
Transfers in and/or out of Level 3 | [1] | 191 | 0 | 661 | 522 |
Ending balance | [1] | 5,239 | 4,996 | 5,239 | 4,996 |
Interest-Only Strips | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance | 21 | 26 | 23 | 31 | |
Total gains or losses (realized/unrealized) Included in earnings | 0 | 0 | 0 | 0 | |
Total gains or losses (realized/unrealized) Included in other comprehensive loss | (3) | (2) | (5) | (7) | |
Purchases | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfers in and/or out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 18 | 24 | 18 | 24 | |
Loan Commitments to Originate | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance | [2] | 504 | 716 | 825 | 809 |
Total gains or losses (realized/unrealized) Included in earnings | [2] | (264) | 266 | (585) | 173 |
Total gains or losses (realized/unrealized) Included in other comprehensive loss | [2] | 0 | 0 | 0 | 0 |
Purchases | [2] | 0 | 0 | 0 | 0 |
Issuances | [2] | 0 | 0 | 0 | 0 |
Settlements | [2] | 0 | 0 | 0 | 0 |
Transfers in and/or out of Level 3 | [2] | 0 | 0 | 0 | 0 |
Ending balance | [2] | 240 | 982 | 240 | 982 |
Mandatory Commitments | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance | [3] | (9) | (24) | (32) | 47 |
Total gains or losses (realized/unrealized) Included in earnings | [3] | (3) | (26) | 18 | (99) |
Total gains or losses (realized/unrealized) Included in other comprehensive loss | [3] | 0 | 0 | 0 | 0 |
Purchases | [3] | 0 | 0 | 0 | 0 |
Issuances | [3] | 0 | 0 | 0 | 0 |
Settlements | [3] | 5 | 0 | 7 | 2 |
Transfers in and/or out of Level 3 | [3] | 0 | 0 | 0 | 0 |
Ending balance | [3] | $ (7) | (50) | $ (7) | (50) |
Option contracts | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance | 37 | ||||
Total gains or losses (realized/unrealized) Included in earnings | (37) | ||||
Total gains or losses (realized/unrealized) Included in other comprehensive loss | 0 | ||||
Purchases | 0 | ||||
Issuances | 0 | ||||
Settlements | 0 | ||||
Transfers in and/or out of Level 3 | 0 | ||||
Ending balance | $ 0 | $ 0 | |||
[1] | The valuation of loans held for investment at fair value includes the management estimates of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for the interest rate characteristics of each loan. | ||||
[2] | Consists of commitments to extend credit on loans to be held for sale. | ||||
[3] | Consists of mandatory loan sale commitments. |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments (Details 3) - Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-performing loans | $ 6,115 | $ 6,057 |
Mortgage servicing assets | 456 | 135 |
Real estate owned, net | 0 | 906 |
Total | 6,571 | 7,098 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-performing loans | 0 | 0 |
Mortgage servicing assets | 0 | 0 |
Real estate owned, net | 0 | 0 |
Total | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-performing loans | 4,541 | 4,845 |
Mortgage servicing assets | 0 | 0 |
Real estate owned, net | 0 | 906 |
Total | 4,541 | 5,751 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-performing loans | 1,574 | 1,212 |
Mortgage servicing assets | 456 | 135 |
Real estate owned, net | 0 | 0 |
Total | $ 2,030 | $ 1,347 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments (Details 4) - Level 3 $ in Thousands | 9 Months Ended | |
Mar. 31, 2019USD ($) | ||
Mandatory loan sale commitments | Relative value analysis | Broker quotes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impact to valuation from an increase in inputs on Liability | Increase | [1] |
Mandatory loan sale commitments | Relative value analysis | Roll-forward costs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability Fair Value Measurement Input | 0.015% | [2],[3] |
Impact to valuation from an increase in inputs on Liability | Increase | [1] |
Mandatory loan sale commitments | Minimum | Relative value analysis | Broker quotes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability Fair Value Measurement Input | 102.30% | [2],[3] |
Mandatory loan sale commitments | Maximum | Relative value analysis | Broker quotes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability Fair Value Measurement Input | 105.70% | [2],[3] |
Mandatory loan sale commitments | Weighted Average | Relative value analysis | Broker quotes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability Fair Value Measurement Input | 103.90% | [2],[3] |
Commitments to extend credit on loans to be held for investment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 240 | |
Private issue CMO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 300 | |
Private issue CMO | Market comparable pricing | Comparability adjustment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impact to valuation from an increase in inputs on assets | Increase | [1] |
Private issue CMO | Minimum | Market comparable pricing | Comparability adjustment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 1.20% | [3] |
Private issue CMO | Maximum | Market comparable pricing | Comparability adjustment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 1.30% | [3] |
Private issue CMO | Weighted Average | Market comparable pricing | Comparability adjustment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 1.20% | [3] |
Loans held-for investment, at-fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 5,239 | |
Loans held-for investment, at-fair value | Relative value analysis | Broker quotes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impact to valuation from an increase in inputs on assets | Increase | [1] |
Loans held-for investment, at-fair value | Relative value analysis | Credit risk factors | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impact to valuation from an increase in inputs on assets | Decrease | [1] |
Loans held-for investment, at-fair value | Minimum | Relative value analysis | Broker quotes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 98.30% | [3] |
Loans held-for investment, at-fair value | Minimum | Relative value analysis | Credit risk factors | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 1.20% | [3] |
Loans held-for investment, at-fair value | Maximum | Relative value analysis | Broker quotes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 105.20% | [3] |
Loans held-for investment, at-fair value | Maximum | Relative value analysis | Credit risk factors | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 100.00% | [3] |
Loans held-for investment, at-fair value | Weighted Average | Relative value analysis | Broker quotes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 101.10% | [3] |
Loans held-for investment, at-fair value | Weighted Average | Relative value analysis | Credit risk factors | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 4.30% | [3] |
Non-performing loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 703 | |
Non-performing loans | Discounted cash flow | Default rates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impact to valuation from an increase in inputs on assets | Decrease | [1] |
Assets Fair Value Measurement Input | 5.00% | [3] |
Mortgage servicing assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 456 | |
Mortgage servicing assets | Discounted cash flow | Prepayment speed (CPR) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impact to valuation from an increase in inputs on assets | Decrease | [1] |
Mortgage servicing assets | Discounted cash flow | Discount rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impact to valuation from an increase in inputs on assets | Decrease | [1] |
Mortgage servicing assets | Minimum | Discounted cash flow | Prepayment speed (CPR) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 9.70% | [3] |
Mortgage servicing assets | Minimum | Discounted cash flow | Discount rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 9.00% | [3] |
Mortgage servicing assets | Maximum | Discounted cash flow | Prepayment speed (CPR) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 60.00% | [3] |
Mortgage servicing assets | Maximum | Discounted cash flow | Discount rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 10.50% | [3] |
Mortgage servicing assets | Weighted Average | Discounted cash flow | Prepayment speed (CPR) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 21.70% | [3] |
Mortgage servicing assets | Weighted Average | Discounted cash flow | Discount rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 9.20% | [3] |
Interest-only strips | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 18 | |
Interest-only strips | Discounted cash flow | Prepayment speed (CPR) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impact to valuation from an increase in inputs on assets | Decrease | [1] |
Interest-only strips | Discounted cash flow | Discount rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impact to valuation from an increase in inputs on assets | Decrease | [1] |
Assets Fair Value Measurement Input | 9.00% | [3] |
Interest-only strips | Minimum | Discounted cash flow | Prepayment speed (CPR) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 18.70% | [3] |
Interest-only strips | Maximum | Discounted cash flow | Prepayment speed (CPR) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 35.90% | [3] |
Interest-only strips | Weighted Average | Discounted cash flow | Prepayment speed (CPR) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 34.30% | [3] |
Mandatory loan sale commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | $ 7 | |
Non-performing loans one | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 871 | |
Non-performing loans one | Relative value analysis | Loss severity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impact to valuation from an increase in inputs on assets | Decrease | [1] |
Non-performing loans one | Minimum | Relative value analysis | Loss severity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 20.00% | [3] |
Non-performing loans one | Maximum | Relative value analysis | Loss severity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 30.00% | [3] |
Non-performing loans one | Weighted Average | Relative value analysis | Loss severity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 21.30% | [3] |
Commitments to extend credit and undisbursed funds | Relative value analysis | Broker quotes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impact to valuation from an increase in inputs on assets | Increase | [1] |
Commitments to extend credit and undisbursed funds | Relative value analysis | Fall-out ratio | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impact to valuation from an increase in inputs on assets | Decrease | [1] |
Commitments to extend credit and undisbursed funds | Minimum | Relative value analysis | Broker quotes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 99.00% | [3] |
Commitments to extend credit and undisbursed funds | Minimum | Relative value analysis | Fall-out ratio | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 18.50% | [3],[4] |
Commitments to extend credit and undisbursed funds | Maximum | Relative value analysis | Broker quotes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 103.40% | [3] |
Commitments to extend credit and undisbursed funds | Maximum | Relative value analysis | Fall-out ratio | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 19.10% | [3],[4] |
Commitments to extend credit and undisbursed funds | Weighted Average | Relative value analysis | Broker quotes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 101.60% | [3] |
Commitments to extend credit and undisbursed funds | Weighted Average | Relative value analysis | Fall-out ratio | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Measurement Input | 18.60% | [3],[4] |
[1] | Unless otherwise noted, this column represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs in isolation could result in significantly higher or lower fair value measurements. | |
[2] | An estimated cost to roll forward the mandatory loan sale commitments which management has estimated may not be delivered to the corresponding investors in a timely manner. | |
[3] | The range is based on the estimated fair values and management estimates. | |
[4] | The percentage of commitments to extend credit on loans to be held for sale which management has estimated may not fund. |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments (Details 5) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities - held to maturity | $ 102,510 | $ 87,813 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities - held to maturity | 0 | 0 |
Loans held for investment, not recorded at fair value | 0 | 0 |
FHLB - San Francisco stock | 0 | 0 |
Deposits | 0 | 0 |
Borrowings | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities - held to maturity | 103,056 | 87,239 |
Loans held for investment, not recorded at fair value | 0 | 0 |
FHLB - San Francisco stock | 8,199 | 8,199 |
Deposits | 0 | 0 |
Borrowings | 0 | 0 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities - held to maturity | 0 | 0 |
Loans held for investment, not recorded at fair value | 857,399 | 873,112 |
FHLB - San Francisco stock | 0 | 0 |
Deposits | 847,875 | 877,641 |
Borrowings | 101,274 | 123,778 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities - held to maturity | 102,510 | 87,813 |
Loans held for investment, not recorded at fair value | 878,315 | 897,451 |
FHLB - San Francisco stock | 8,199 | 8,199 |
Deposits | 876,884 | 907,598 |
Borrowings | 101,121 | 126,163 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities - held to maturity | 103,056 | 87,239 |
Loans held for investment, not recorded at fair value | 857,399 | 873,112 |
FHLB - San Francisco stock | 8,199 | 8,199 |
Deposits | 847,875 | 877,641 |
Borrowings | $ 101,274 | $ 123,778 |
Incentive Plan - Summary of sto
Incentive Plan - Summary of stock option activity (Details) - Equity Incentive Plans $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | Mar. 31, 2019USD ($)$ / sharesshares | |
Shares: | ||
Outstanding, Beginning of Period | shares | 509,000 | 529,000 |
Granted | shares | 0 | 0 |
Exercised | shares | (11,250) | (31,250) |
Forfeited | shares | 0 | 0 |
Outstanding, End of Period | shares | 497,750 | 497,750 |
Vested and expected to vest at March 31, 2019 | shares | 495,150 | 495,150 |
Exercisable at March 31, 2019 | shares | 484,750 | 484,750 |
Weighted-Average Exercise Price (in dollars per share): | ||
Outstanding, Beginning of Period | $ / shares | $ 12.83 | $ 12.77 |
Granted | $ / shares | 0 | 0 |
Exercised | $ / shares | 14.59 | 12.49 |
Forfeited | $ / shares | 0 | 0 |
Outstanding, End of Period | $ / shares | 12.79 | 12.79 |
Vested and expected to vest at March 31, 2019 | $ / shares | 12.75 | 12.75 |
Exercisable at March 31, 2019 | $ / shares | $ 12.6 | $ 12.6 |
Weighted- Average Remaining Contractual Term (Years): | ||
Outstanding at year end | 4 years 6 months 11 days | 4 years 6 months 11 days |
Vested and expected to vest at March 31, 2019 | 4 years 6 months 7 days | 4 years 6 months 7 days |
Exercisable at March 31, 2019 | 4 years 5 months 12 days | 4 years 5 months 12 days |
Aggregate Intrinsic Value ($000): | ||
Outstanding at year end | $ | $ 3,551 | $ 3,551 |
Vested and expected to vest at March 31, 2019 | $ | 3,550 | 3,550 |
Exercisable at March 31, 2019 | $ | $ 3,546 | $ 3,546 |
Incentive Plan - Summary of Unv
Incentive Plan - Summary of Unvested restricted stock activity (Details 1) - Restricted Stock - Equity Incentive Plans - $ / shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Shares | ||||
Unvested, Beginning of Period | 12,000 | 98,500 | ||
Granted | 0 | 0 | 0 | 0 |
Vested | (3,000) | (10,500) | (89,500) | (10,500) |
Forfeited | 0 | 0 | 0 | (2,000) |
Unvested, End of Period | 9,000 | 9,000 | ||
Expected to vest at March 31, 2019 | 7,200 | 7,200 | ||
Weighted-Average Award Date Fair Value | ||||
Unvested, Beginning of Period | $ 18.31 | $ 14.35 | ||
Granted | 0 | 0 | ||
Vested | 18.9 | 13.97 | ||
Forfeited | 0 | 0 | ||
Unvested, End of Period | 18.11 | 18.11 | ||
Expected to vest at December 31, 2018 | $ 18.11 | $ 18.11 |
Incentive Plans (Detail Textual
Incentive Plans (Detail Textuals) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation cost | $ 37,000 | $ 292,000 | $ 767,000 | $ 816,000 | |
Income tax (deficit) benefit recognized from non-qualified equity compensation | $ (10,000) | $ 186,000 | $ 114,000 | $ 206,000 | |
Treasury stock, Shares used to fund Equity Incentive Plans for restricted stock | 10,567,008 | 10,567,008 | 10,611,689 | ||
Equity Incentive Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options, Exercised | 11,250 | 31,250 | |||
Stock options, Granted | 0 | 0 | |||
Stock options, Forfeitured | 0 | 0 | |||
Stock Option | Equity Incentive Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum term for stock awards | 10 years | ||||
Term used to calculate expected volatility | 84 months | ||||
Stock options, Exercised | 11,250 | 56,500 | 31,250 | 83,750 | |
Stock options, Granted | 0 | 0 | 0 | 0 | |
Stock options, Forfeitured | 0 | 0 | 0 | 2,500 | |
Number of shares available for grant | 147,500 | 147,500 | 147,500 | 147,500 | |
Unrecognized share-based compensation expense, stock options | $ 68,000 | $ 503,000 | $ 68,000 | $ 503,000 | |
Share-based compensation cost not yet recognized, weighted average period for recognition (less than) | 1 year 6 months | 1 year | |||
Forfeiture rate for equity incentive plans | 20.00% | 20.00% | |||
Stock Option | 2013 Equity Incentive Plan ("2013 Plan") | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized for Equity Incentive Plan | 300,000 | 300,000 | |||
Annual limitation on awards granted to an individual under Equity Incentive Plan | 60,000 | ||||
Stock Option | 2010 Equity Incentive Plan ("2010 Plan") | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized for Equity Incentive Plan | 586,250 | 586,250 | |||
Annual limitation on awards granted to an individual under Equity Incentive Plan | 117,250 | ||||
Stock Option | 2006 Equity Incentive Plan ("2006 Plan") | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized for Equity Incentive Plan | 185,000 | 185,000 | |||
Annual limitation on awards granted to an individual under Equity Incentive Plan | 27,750 | ||||
Restricted Stock | Equity Incentive Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for grant | 267,750 | 267,750 | 267,750 | 267,750 | |
Share-based compensation cost not yet recognized, weighted average period for recognition (less than) | 1 year 6 months | 1 year 2 months 12 days | |||
Forfeiture rate for equity incentive plans | 20.00% | 20.00% | |||
Restricted stock, grants in period | 0 | 0 | 0 | 0 | |
Restricted stock, Forfeited | 0 | 0 | 0 | 2,000 | |
Restricted stock, Vesting and distribution | 3,000 | 10,500 | 89,500 | 10,500 | |
Unrecognized share-based compensation expense, restricted stock | $ 131,000 | $ 687,000 | $ 131,000 | $ 687,000 | |
Restricted Stock | 2013 Equity Incentive Plan ("2013 Plan") | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized for Equity Incentive Plan | 300,000 | 300,000 | |||
Annual limitation on awards granted to an individual under Equity Incentive Plan | 45,000 | ||||
Treasury stock, Shares used to fund Equity Incentive Plans for restricted stock | 300,000 | 300,000 | |||
Restricted Stock | 2010 Equity Incentive Plan ("2010 Plan") | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized for Equity Incentive Plan | 288,750 | 288,750 | |||
Annual limitation on awards granted to an individual under Equity Incentive Plan | 43,312 | ||||
Treasury stock, Shares used to fund Equity Incentive Plans for restricted stock | 288,750 | 288,750 | |||
Restricted Stock | 2006 Equity Incentive Plan ("2006 Plan") | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized for Equity Incentive Plan | 365,000 | 365,000 | |||
Annual limitation on awards granted to an individual under Equity Incentive Plan | 73,000 | ||||
Treasury stock, Shares used to fund Equity Incentive Plans for restricted stock | 185,000 | 185,000 |
Reclassification Adjustment o_3
Reclassification Adjustment of Accumulated Other Comprehensive Income ("AOCI") (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | $ 169 | $ 210 | $ 210 | $ 229 |
Other comprehensive loss before reclassifications | (6) | (22) | (47) | (86) |
Amount reclassified from accumulated other comprehensive income | 0 | (2) | 0 | 43 |
Net other comprehensive loss | (6) | (24) | (47) | (43) |
Ending balance | 163 | 186 | 163 | 186 |
Investment securities available for sale | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | 154 | 195 | 194 | 211 |
Other comprehensive loss before reclassifications | (4) | (20) | (44) | (78) |
Amount reclassified from accumulated other comprehensive income | 0 | (2) | 0 | 40 |
Net other comprehensive loss | (4) | (22) | (44) | (38) |
Ending balance | 150 | 173 | 150 | 173 |
Interest-only strips | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | 15 | 15 | 16 | 18 |
Other comprehensive loss before reclassifications | (2) | (2) | (3) | (8) |
Amount reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 3 |
Net other comprehensive loss | (2) | (2) | (3) | (5) |
Ending balance | $ 13 | $ 13 | $ 13 | $ 13 |
Offsetting Derivative and Oth_3
Offsetting Derivative and Other Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Offsetting [Abstract] | ||
Derivative Asset, Gross Amount of Recognized Assets | $ 0 | $ 0 |
Derivative Asset, Gross Amount Offset in the Condensed Consolidated Statements of Financial Condition | 0 | 0 |
Derivative Asset, Net Amount of Assets in the Condensed Consolidated Statements of Financial Condition | 0 | 0 |
Derivative Asset, Gross Amount Not Offset in the Condensed Consolidated, Financial Instruments | 0 | 0 |
Derivative Asset, Gross Amount Not Offset in the Condensed Consolidated, Cash Collateral Received | 0 | 0 |
Derivative assets, Net Amount | 0 | 0 |
Derivative Liabilities, Gross Amount of Recognized Liabilities | 224 | 440 |
Derivative Liabilities, Gross Amount Offset in the Condensed Consolidated Statements of Financial Condition | 0 | 0 |
Derivative Liabilities, Net Amount of Liabilities in the Condensed Consolidated Statements of Financial Condition | 224 | 440 |
Derivative Liabilities, Gross Amount Not Offset in the Condensed Consolidated Statements of Financial Condition, Financial Instruments | 0 | 0 |
Derivative Liabilities, Gross Amount Not Offset in the Condensed Consolidated Statements of Financial Condition, Cash Collateral Received | 0 | 0 |
Derivative liabilities, Net Amount | $ 224 | $ 464 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | ||||||
Net gain on sale of loans | [2] | $ 1,719 | [1] | $ 3,597 | [3],[4] | $ 7,114 | [3] | $ 12,761 | [5] |
Total non-interest income | 3,052 | 5,210 | 11,196 | 17,303 | |||||
Asset management fees | |||||||||
Total non-interest income | 77 | 87 | 215 | 294 | |||||
Debit card and ATM fees | |||||||||
Total non-interest income | 395 | 394 | 1,227 | 1,190 | |||||
Deposit related fees | |||||||||
Total non-interest income | 484 | 549 | 1,522 | 1,659 | |||||
Loan related fees | |||||||||
Total non-interest income | 12 | (6) | 25 | (42) | |||||
BOLI | |||||||||
Total non-interest income | [2] | 47 | 65 | 140 | 199 | ||||
Loan servicing fees | |||||||||
Total non-interest income | [2] | 262 | [6] | 493 | [7] | 863 | [8] | 1,173 | [9] |
Other | |||||||||
Total non-interest income | $ 56 | $ 31 | $ 90 | $ 69 | |||||
[1] | Includes an inter-company charge of $17 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis. | ||||||||
[2] | Not in scope of ASC 606. | ||||||||
[3] | Includes an inter-company charge of $37 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis. | ||||||||
[4] | Includes an inter-company charge of $44 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis. | ||||||||
[5] | Includes an inter-company charge of $182 credited to PBM by the Bank during the period to compensate PBM for servicing fees on loans sold on a servicing retained basis. | ||||||||
[6] | Includes an inter-company charge of $2 credited to PBM by the Bank during the period to compensate PBM for originating loans held for investment. | ||||||||
[7] | Includes an inter-company charge of $222 credited to PBM by the Bank during the period to compensate PBM for originating loans held for investment. | ||||||||
[8] | Includes an inter-company charge of $428 credited to PBM by the Bank during the period to compensate PBM for originating loans held for investment. | ||||||||
[9] | Includes an inter-company charge of $561 credited to PBM by the Bank during the period to compensate PBM for originating loans held for investment. |
Income Taxes (Details)
Income Taxes (Details) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Schedule Of Income Tax [Line Items] | |||
Federal Tax Rate | 28.06% | ||
State Tax Rate | 10.84% | ||
Combined Statutory Tax Rate | [1] | 35.86% | |
Forecast | |||
Schedule Of Income Tax [Line Items] | |||
Federal Tax Rate | 21.00% | ||
State Tax Rate | 10.84% | ||
Combined Statutory Tax Rate | [1] | 29.56% | |
[1] | The combined statutory tax rate is net of the federal tax benefit for the state tax deduction. |
Income Taxes (Detail Textuals)
Income Taxes (Detail Textuals) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | |
Income Tax Examination [Line Items] | |||
Percentage of corporate federal tax income rate | 28.06% | ||
Discrete tax expense | $ 1.9 | ||
Latest tax year | |||
Income Tax Examination [Line Items] | |||
Percentage of corporate federal tax income rate | 21.00% | ||
Earliest tax year | |||
Income Tax Examination [Line Items] | |||
Percentage of corporate federal tax income rate | 35.00% |
Subsequent Events (Detail Textu
Subsequent Events (Detail Textuals) - Subsequent event | 1 Months Ended |
Apr. 30, 2019$ / sharesshares | |
Subsequent Event [Line Items] | |
Dividends declared date | Apr. 30, 2019 |
Quarterly cash dividend declared, common stock | $ / shares | $ 0.14 |
Dividend, date of record | May 21, 2019 |
Dividends payable, date | Jun. 11, 2019 |
Extension of stock repurchase plan | 1 year |
Purchase of common stock shares | 23,748 |
Number of shares authorized under stock repurchase plan | 349,252 |