DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 3 Months Ended | |
Sep. 30, 2018 | Oct. 19, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AXOS FINANCIAL, INC. | |
Entity Central Index Key | 1,299,709 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 62,831,830 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
ASSETS | ||
Cash and due from banks | $ 533,869 | $ 622,750 |
Federal funds sold | 100 | 100 |
Total cash and cash equivalents | 533,969 | 622,850 |
Securities: | ||
Available-for-sale | 202,727 | 180,305 |
Stock of the Federal Home Loan Bank, at cost | 69,660 | 17,250 |
Loans held for sale, carried at fair value | 30,916 | 35,077 |
Loans held for sale, lower of cost or fair value | 6,078 | 2,686 |
Loans and leases—net of allowance for loan and lease losses of $50,120 as of September 30, 2018 and $49,151 as of June 30, 2018 | 8,654,500 | 8,432,289 |
Accrued interest receivable | 35,951 | 26,729 |
Furniture, equipment and software—net | 22,283 | 21,454 |
Mortgage servicing rights, carried at fair value | 11,216 | 10,752 |
Cash surrender value of life insurance | 6,404 | 6,358 |
Other real estate owned and repossessed vehicles | 9,497 | 9,591 |
Deferred income tax | 17,925 | 17,957 |
Goodwill and other intangible assets—net | 67,139 | 67,788 |
Other assets | 123,255 | 88,418 |
TOTAL ASSETS | 9,791,520 | 9,539,504 |
Deposits: | ||
Non-interest bearing | 861,362 | 1,015,355 |
Interest bearing | 5,216,226 | 6,969,995 |
Total deposits | 6,077,588 | 7,985,350 |
Advances from the Federal Home Loan Bank | 2,580,000 | 457,000 |
Subordinated notes and debentures and other | 54,588 | 54,552 |
Accrued interest payable | 2,353 | 1,753 |
Accounts payable and accrued liabilities and other liabilities | 76,744 | 80,336 |
Total liabilities | 8,791,273 | 8,578,991 |
COMMITMENTS AND CONTINGENCIES (Note 11) | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock—$0.01 par value; 150,000,000 shares authorized; 66,043,642 shares issued and 62,831,731 shares outstanding as of September 30, 2018; 65,796,060 shares issued and 62,688,064 shares outstanding as of June 30, 2018 | 660 | 658 |
Additional paid-in capital | 373,364 | 366,515 |
Accumulated other comprehensive income (loss)—net of tax | (407) | (613) |
Retained earnings | 708,112 | 671,348 |
Treasury stock, at cost; 3,211,911 shares as of September 30, 2018 and 3,107,996 shares as of June 30, 2018 | (86,545) | (82,458) |
Total stockholders’ equity | 1,000,247 | 960,513 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 9,791,520 | 9,539,504 |
Series A Preferred Stock | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock—$0.01 par value; 1,000,000 shares authorized; Series A-$10,000 stated value and liquidation preference per share; 515 shares issued and outstanding as of September 30, 2018 and June 30, 2018 | $ 5,063 | $ 5,063 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
ASSETS | ||
Allowance for loan and lease losses | $ 50,120 | $ 49,151 |
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, par or stated value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, issued (in shares) | 66,043,642 | 65,796,060 |
Common stock, shares outstanding (in shares) | 62,831,731 | 62,688,064 |
Treasury stock, at cost (in shares) | 3,211,911 | 3,107,996 |
Series A Preferred Stock | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, par or stated value (in dollars per share) | $ 10,000 | $ 10,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 10,000 | $ 10,000 |
Preferred stock, shares issued (in shares) | 515 | 515 |
Preferred stock, shares outstanding (in shares) | 515 | 515 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
INTEREST AND DIVIDEND INCOME: | ||
Loans and leases, including fees | $ 116,593 | $ 97,575 |
Investments | 6,204 | 5,936 |
Total interest and dividend income | 122,797 | 103,511 |
INTEREST EXPENSE: | ||
Deposits | 28,681 | 17,318 |
Advances from the Federal Home Loan Bank | 6,908 | 4,552 |
Other borrowings | 929 | 1,091 |
Total interest expense | 36,518 | 22,961 |
Net interest income | 86,279 | 80,550 |
Provision for loan and lease losses | 600 | 1,000 |
Net interest income, after provision for loan and lease losses | 85,679 | 79,550 |
NON-INTEREST INCOME: | ||
Realized gain (loss) on sale of securities | (133) | 282 |
Other-than-temporary loss on securities: | ||
Total impairment (losses) gains | 0 | (194) |
Loss (gain) recognized in other comprehensive income | 0 | 45 |
Net impairment loss recognized in earnings | 0 | (149) |
Fair value gain (loss) on trading securities | 0 | 0 |
Total unrealized (loss) gain on securities | 0 | (149) |
Prepayment penalty fee income | 904 | 1,069 |
Gain on sale – other | 3,133 | 446 |
Mortgage banking income | 1,815 | 4,708 |
Banking and service fees | 10,824 | 6,984 |
Total non-interest income | 16,543 | 13,340 |
NON-INTEREST EXPENSE: | ||
Salaries and related costs | 30,662 | 22,133 |
Data processing and internet | 4,735 | 4,065 |
Advertising and promotional | 4,425 | 2,966 |
Depreciation and amortization | 3,016 | 1,748 |
Occupancy and equipment | 1,602 | 1,481 |
Professional services | 1,858 | 1,624 |
FDIC and regulatory fees | 2,926 | 1,091 |
Real estate owned and repossessed vehicles | (55) | 69 |
General and administrative expense | 3,753 | 2,843 |
Total non-interest expense | 52,922 | 38,020 |
INCOME BEFORE INCOME TAXES | 49,300 | 54,870 |
INCOME TAXES | 12,459 | 22,487 |
NET INCOME | 36,841 | 32,383 |
NET INCOME ATTRIBUTABLE TO COMMON STOCK | 36,764 | 32,306 |
COMPREHENSIVE INCOME | $ 37,047 | $ 31,423 |
Basic earnings per common share (revised for September 2017) (in dollars per share) | $ 0.59 | $ 0.51 |
Diluted earnings per common share (revised for September 2017) (in dollars per share) | $ 0.58 | $ 0.50 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME | $ 36,841 | $ 32,383 |
Net unrealized gain (loss) from available-for-sale securities, net of tax expense (benefit) of $48 and $(720) for the three months ended September 30, 2018 and 2017, respectively. | 112 | (986) |
Other-than-temporary impairment on securities recognized in other comprehensive income, net of tax expense (benefit) of $0 and $19 for the three months ended September 30, 2018 and 2017, respectively. | 0 | 26 |
Reclassification of net (gain) loss from available-for-sale securities included in income, net of tax expense (benefit) of $(39) and $0 for the three months ended September 30, 2018 and 2017, respectively. | 94 | 0 |
Other comprehensive income (loss) | 206 | (960) |
Comprehensive income | $ 37,047 | $ 31,423 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net unrealized gain (loss) from available-for-sale securities, tax expense (benefit) | $ 48 | $ (720) |
Other-than-temporary impairment on held-to-maturity securities recognized in other comprehensive income, tax expense (benefit) | 0 | 19 |
Reclassification of net (gain) loss from available-for-sale securities included in income, tax expense (benefit) | $ (39) | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 3 months ended Sep. 30, 2018 - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Treasury | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net of Income Tax |
Preferred stock, beginning balance (in shares) at Jun. 30, 2018 | 515 | ||||||
Common stock, issued, beginning balance (in shares) at Jun. 30, 2018 | 65,796,060 | 65,796,060 | |||||
Common stock, treasury and outstanding, beginning balance (in shares) at Jun. 30, 2018 | 62,688,064 | 62,688,064 | 3,107,996 | ||||
Stockholder's equity, beginning balance at Jun. 30, 2018 | $ 960,513 | $ 5,063 | $ 658 | $ (82,458) | $ 366,515 | $ 671,348 | $ (613) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 36,841 | 36,841 | |||||
Other comprehensive income (loss) | 206 | 206 | |||||
Cash dividends on preferred stock | (77) | (77) | |||||
Stock-based compensation expense | 6,851 | 6,851 | |||||
Restricted stock unit vesting and tax benefits, issued (in shares) | 247,582 | ||||||
Restricted stock unit vesting and tax benefits, treasury (in shares) | (103,915) | ||||||
Restricted stock unit vesting and tax benefits, outstanding (in shares) | 143,667 | ||||||
Restricted stock unit vesting and tax benefits | $ (4,087) | $ 2 | $ (4,087) | (2) | |||
Preferred stock, ending balance (in shares) at Sep. 30, 2018 | 515 | ||||||
Common stock, issued, ending balance (in shares) at Sep. 30, 2018 | 66,043,642 | 66,043,642 | |||||
Common stock, treasury and outstanding, ending balance (in shares) at Sep. 30, 2018 | 62,831,731 | 62,831,731 | 3,211,911 | ||||
Stockholder's equity, ending balance at Sep. 30, 2018 | $ 1,000,247 | $ 5,063 | $ 660 | $ (86,545) | $ 373,364 | $ 708,112 | $ (407) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 36,841 | $ 32,383 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Accretion of discounts on securities | (82) | (398) |
Net accretion of discounts on loans and leases | (273) | 622 |
Amortization of borrowing costs | 52 | 52 |
Stock-based compensation expense | 6,851 | 3,659 |
Net (gain) loss on sale of investment securities | 133 | (282) |
Impairment charge on securities | 0 | 149 |
Provision for loan and lease losses | 600 | 1,000 |
Deferred income taxes | (430) | 8,473 |
Origination of loans held for sale | (302,967) | (330,269) |
Unrealized (gain) loss on loans held for sale | 119 | (40) |
Gain on sales of loans held for sale | (4,948) | (5,154) |
Proceeds from sale of loans held for sale (revised for September 2017) | 307,062 | 332,466 |
Change in fair value of mortgage servicing rights | 289 | 281 |
(Gain) loss on sale of other real estate and foreclosed assets | (103) | 5 |
Depreciation and amortization | 3,016 | 1,748 |
Net changes in assets and liabilities which provide (use) cash: | ||
Accrued interest receivable | (9,223) | (4,493) |
Other assets (revised for September 2017) | 9,225 | 1,834 |
Accrued interest payable | 600 | 41 |
Accounts payable and other liabilities | (3,233) | 10,827 |
Net cash provided by (used in) operating activities (revised for September 2017) | 43,529 | 52,904 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of investment securities | (39,936) | (31,244) |
Proceeds from sales of available-for-sale and trading securities | 1,927 | 8,700 |
Proceeds from repayment of securities | 15,830 | 74,589 |
Purchase of stock of the Federal Home Loan Bank | (69,561) | 0 |
Proceeds from redemption of stock of the Federal Home Loan Bank | 17,151 | 0 |
Origination of loans and leases held for investment | (1,350,179) | (943,052) |
Proceeds from sale of loans held for investment (revised for September 2017) | 10,714 | 199 |
Origination of mortgage warehouse loans, net | 0 | (17,460) |
Proceeds from sales of other real estate owned and repossessed assets | 355 | 34 |
Principal repayments on loans and leases | 1,073,409 | 819,892 |
Purchases of furniture, equipment and software | (3,194) | (2,840) |
Net cash used in investing activities (revised for September 2017) | (343,484) | (91,182) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase (decrease) in deposits | (1,907,762) | 279,293 |
Repayment of the Federal Home Loan Bank term advances | (20,000) | (5,000) |
Net (repayment) proceeds of Federal Home Loan Bank other advances | 2,143,000 | (235,000) |
Repayments of other borrowings and securities sold under agreements to repurchase | 0 | (10,000) |
Tax payments related to settlement of restricted stock units | (4,087) | (2,558) |
Cash dividends paid on preferred stock | (77) | (77) |
Net cash provided by financing activities | 211,074 | 26,658 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (88,881) | (11,620) |
CASH AND CASH EQUIVALENTS—Beginning of year | 622,850 | 643,541 |
CASH AND CASH EQUIVALENTS—End of period | 533,969 | 631,921 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Interest paid on deposits and borrowed funds | 35,917 | 22,921 |
Income taxes paid | 7,980 | 734 |
Transfers to other real estate and repossessed vehicles | 166 | 65 |
Transfers from loans held for investment to loans held for sale | 54,074 | 0 |
Loans held for investment sold, cash not received | $ 50,985 | $ 0 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The condensed consolidated financial statements include the accounts of Axos Financial, Inc. (“Axos”), formerly known as BofI Holding, Inc., and its wholly owned subsidiary, Axos Bank, formerly known as BofI Federal Bank (the “Bank” and collectively, the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications were made to previously reported amounts in the unaudited condensed consolidated financial statements and notes thereto to make them consistent with the current period presentation. The accompanying interim condensed consolidated financial statements, presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), are unaudited and reflect all adjustments which, in the opinion of management, are necessary for a fair statement of financial condition and results of operations for the interim periods. All adjustments are of a normal and recurring nature. Results for the three months ended September 30, 2018 are not necessarily indicative of results that may be expected for any other interim period or for the year as a whole. Certain information and note disclosures normally included in the audited annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) with respect to interim financial reporting. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended June 30, 2018 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Securities . Debt securities are classified as held-to-maturity and carried at amortized cost when management has both the positive intent and ability to hold them to maturity. Debt securities are classified as available-for-sale when they might be sold before maturity. Trading securities refer to certain types of assets that banks hold for resale at a profit or when the Company elects to account for certain securities at fair value. Increases or decreases in the fair value of trading securities are recognized in earnings as they occur. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. Gains and losses on securities sales are based on a comparison of sales proceeds and the amortized cost of the security sold using the specific identification method. Purchases and sales are recognized on the trade date. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are amortized or accreted using the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. The Company’s portfolios of held-to-maturity and available-for-sale securities are reviewed quarterly for other-than-temporary impairment. In performing this review, management considers (1) the length of time and extent that fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) the impact of changes in market interest rates on the market value of the security and (4) how to record an impairment by assessing whether the Company intends to sell or it is more likely than not that it will be required to sell a security in an unrealized loss position before the Company recovers the security’s amortized cost. If either of these criteria for (4) is met, the entire difference between amortized cost and fair value is recognized in earnings. Alternatively, if either of the criteria for (4) is not met, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Loans and Leases . Loans and leases that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, deferred purchase premiums and discounts, deferred origination fees and costs, and an allowance for loan and lease losses. Interest income is accrued on the unpaid principal balance. Premiums and discounts on loans purchased as well as origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method. The Company provides equipment financing to its customers through a variety of lease arrangements. The most common arrangement is a direct financing (capital) lease. For direct financing leases, lease receivables are recorded on the balance sheet but the leased property is not, although the Company generally retains legal title to the leased property until the end of each lease. Direct financing leases are stated at the net amount of minimum lease payments receivable, plus any unguaranteed residual value, less the amount of unearned income and net acquisition discount at the reporting date. Direct lease origination costs are amortized over the weighted average life of the lease portfolio. Leases acquired in an acquisition are initially measured and recorded at their fair value on the acquisition date. Purchase discounts or premiums on acquired leases are recognized as an adjustment to interest income over the contractual life of the leases using the effective interest method or taken into income when the related leases are paid off. Direct financing leases are subject to the allowance for loan and lease losses. Recognition of interest income on all portfolio segments is generally discontinued at the time the loan or lease is 90 days delinquent unless the loan or lease is well secured and in process of collection. Past due status is based on the contractual terms of the loan or lease. In all cases, loans or leases are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for loans or leases placed on nonaccrual, is reversed against interest income. Interest received on such loans or leases is accounted for on the cash-basis or cost recovery method, until qualifying for return to accrual. Loans and leases are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loans Held for Sale. U.S government agency (“agency”) loans originated and intended for sale in the secondary market are carried at fair value. Net unrealized gains and losses are recognized through mortgage banking income in the income statement. The Bank sells its mortgage loans with either servicing released or servicing retained depending upon market pricing. Gains and losses on loan sales are recorded as mortgage banking income or other gains on sale, based on the difference between sales proceeds and carrying value. Non-agency loans held for sale are carried at the lower of cost or fair value. Loans that were originated with the intent and ability to hold for the foreseeable future (loans held for investment) but which have been subsequently designated as being held for sale for risk management or liquidity needs are carried at the lower of cost or fair value calculated using pools of loans with similar characteristics. There may be times when loans have been classified as held for sale and cannot be sold. Loans transferred to a long-term-investment classification from held-for-sale are transferred at the lower of cost or market value on the transfer date. Any difference between the carrying amount of the loan and its outstanding principal balance is recognized as an adjustment to yield by the interest method. A loan cannot be classified as a long-term investment unless the Bank has both the ability and the intent to hold the loan for the foreseeable future or until maturity. Allowance for Loan and Lease Losses. The allowance for loan and lease losses is maintained at a level estimated to provide for probable incurred losses in the loan and lease portfolio. Management determines the adequacy of the allowance based on reviews of individual loans and leases and pools of loans, recent loss experience, current economic conditions, the risk characteristics of the various categories of loans and leases and other pertinent factors. This evaluation is inherently subjective and requires estimates that are susceptible to significant revision as more information becomes available. The allowance is increased by the provision for loan and lease losses, which is charged against current period operating results and recoveries of loans and leases previously charged-off. The allowance is decreased by the amount of charge-offs of loans and leases deemed uncollectible. Allocations of the allowance may be made for specific loans and leases but the entire allowance is available for any loan or lease that, in management’s judgment, should be charged off. See Note 6 of these financial statement footnotes and the financial statement footnotes for the year ended June 30, 2018 included in our Annual Report on Form 10-K for further information. Brand Partnership Products. Through its strategic partnerships division, the Bank has agreements with third-party service providers (“Program Managers”) possessing demonstrated expertise in managing programs involving marketing and processing financial products such as credit, debit, and prepaid cards, and small business and consumer loans. These relationships include the Company’s relationships with H&R Block, Inc., Netspend and BFS Capital, among others. As delineated by the related contracts, a Program Manager provides program management services in its areas of expertise subject to the Bank’s continuing control and active supervision of the subject program. Underwriting standards and credit decisioning remain with the Bank in all cases. Each of these relationships is designed to allow the Bank to leverage the Program Manager’s knowledge and experience to distribute program-related financial products to a broad and increasing base of customers. With respect to credit products, the Bank generally originates the resulting receivable for sale, but may, in its discretion, retain such receivable. The Bank performs extensive due diligence with respect to each Program Manager and program, and maintains a regimen of comprehensive risk management and strict compliance oversight with respect to all programs. Through our agreement with H&R Block, Inc. (“H&R Block”) and its wholly-owned subsidiaries that allow the Bank to provide H&R Block-branded financial products and services. The products and services that represent the primary focus and the majority of transactional volume that the Bank processes are described in detail below. The first product is Emerald Prepaid Mastercard ® services (“EPC”). The Bank entered into agreements to offer this product in August 2015. Under the agreements, the Bank is responsible for the primary oversight and control of the prepaid card programs of a wholly-owned subsidiary of H&R Block. The Bank holds the prepaid card customer deposits for those cards issued under the prepaid programs in non-interest bearing accounts and earns a fixed fee paid by H&R Block’s subsidiary for each automated clearing house (“ACH”) transaction processed through the prepaid card customer accounts. A portion of H&R Block’s customers use the Emerald Card as an option to receive federal and state income tax refunds. The prepaid customer deposits are included in non-interest bearing deposit liabilities on the balance sheet of the Company and the ACH fee income is included in the income statement under the line banking and service fees. The second product is Refund Transfer (“RT”). The Bank entered into agreements to offer this product in August 2015. The Bank is responsible for the primary oversight and control of the refund transfer program of a wholly-owned subsidiary of H&R Block. The Bank opens a temporary bank account for each H&R Block customer who is receiving an income tax refund and elects to defer payment of his or her tax preparation fees. After the Internal Revenue Service and any state income tax authorities transfer the refund into the customer’s account, the net funds are transferred to the customer and the temporary deposit account is closed. The Bank earns a fixed fee paid by H&R Block for each of the H&R Block customers electing a Refund Transfer. The fees are earned primarily in the quarters ending March 31st and are included in the income statement under the line banking and service fees. The third product is Emerald Advance. The Bank entered into agreements to offer this product in August 2015. Under the agreements the Bank is responsible for the underwriting guidelines and credit policies for unsecured consumer lines of credit offered to H&R Block customers. The Bank offers and funds unsecured lines of credit to consumers primarily through the H&R Block tax preparation offices and earns interest income and fee income. The Bank retains 10% of the Emerald Advance and sells the remainder to H&R Block. The lines of credit are included in loans and leases on the balance sheet of the Company and the interest income and fee income are included in the income statement under the line loans and leases interest and dividend income. The fourth product is an interest-free Refund Advance loan. The Bank exclusively originated and funded all of H&R Block’s interest-free Refund Advance loans to tax preparation clients for the 2018 tax season. The Bank performed the credit underwriting, loan origination, and funding associated with the interest-free Refund Advance loans in the current tax season and received fees from H&R Block for operating the program. No fee is charged to the tax preparation client. Repayment of the Refund Advance loan is deducted from the client’s tax refund proceeds; if an insufficient refund to repay the Refund Advance loan is received, there is no recourse to the client, no negative credit reporting occurs in respect of the client and no collection efforts are made against the client. This agreement is an expansion of the services the Bank provided to H&R Block in the 2017 tax season when the Bank participated through purchases of the loans with other providers in the Refund Advance loan program. During the 2017 tax season, the Bank purchased the Refund Advance loans from a third-party bank at a discount and recorded the accretion of the loan discount as interest income, reported on the income statement under the interest and dividend income line item. During the 2018 tax season, the Bank recorded the fees received from H&R Block as interest income on loans, reported on the income statement under the interest and dividend income line item. In July 2018, the Bank has renewed its agreement with H&R Block to be the exclusive provider of interest-free Refund Advance loans to customers during the 2019 tax season. The H&R Block-branded financial services products introduce seasonality into the Company’s quarterly reports on Form 10-Q in the unaudited condensed consolidated income statements through the banking and service fees category of non-interest income and the other general and administrative category of non-interest expense, with the peak income and expense in these categories typically occurring during our third fiscal quarter ending March 31. Revenue Recognition . On July 1, 2018, the Company adopted ASU 2014-09, “ Revenue from Contracts with Customers (Topic 606) ”, and all subsequent amendments using a modified retrospective approach. The implementation of the new standard did not have a material impact on the measurement, timing, or recognition of revenue. Accordingly, no cumulative effect adjustment to opening retained earnings was deemed necessary. Results for reporting periods beginning after July 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain non-interest income streams such as gain or loss associated with mortgage servicing rights, financial guarantees, derivatives, and income from bank owned life insurance are also not within the scope of the new guidance. Topic 606 is applicable to non-interest income such as deposit related fees, interchange fees, merchant related income. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Non-interest income considered to be within the scope of Topic 606 is discussed below. Deposit Service Fees. Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Fees, Exchange, and Other Service Charges. Fees, exchange, and other service charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Bankruptcy Trustee and Fiduciary Service Fees. Bankruptcy Trustee and Fiduciary Service income is primarily comprised of fees earned from the Monthly Basis Point Fee and Bank Account Service Charge. The products and services provided to the Trustee also indirectly provide additional deposits to the other banks. One of the uses of the increased deposits by the other banks is to fund the fees paid. The performance obligation is satisfied when the deposits are increased (or decreased) at the end of each month. The expected value method will be used to calculate and record the estimated revenue at the beginning of each month with a subsequent reconciliation to actual at the end of each month. The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the periods indicated. Three Months Ended September 30, (Dollars in thousands, except per share data) 2018 2017 Non-interest income Deposit service fees $ 208 $ 242 Card fees 1,754 857 Bankruptcy trustee and fiduciary service fees 2,203 — Non-interest income (in-scope of Topic 606) 4,165 1,099 Non-interest income (out-of-scope of Topic 606) 12,378 12,241 Total non-interest income $ 16,543 $ 13,340 Contract Balances. A contract asset or receivable is recognized if the Company performs a service or transfers a good in advance of receiving consideration. A contract liability is recognized if the Company receives consideration (or has the unconditional right to receive consideration) in advance of performance. As of September 30, 2018 , the Company’s contract liabilities were not considered material. Contract Acquisition Costs. The Company uses the practical expedient to expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in less than one year. In adopting the guidance in Topic 606, the Company did not capitalize any contract acquisition costs. Other Real Estate Owned. The gains or losses on sales of other real estate owned (“OREO”) are recorded in non-interest expense under Real estate owned and repossessed vehicles. The Company’s performance obligation for sale of OREO is the transfer of title and ownership rights of the OREO to the buyer, which occurs at the settlement date when the sale proceeds are received and income is recognized. Revisions of Previously Issued Financial Statements for Correction of Immaterial Errors . During the fourth quarter of 2018, the Company identified an immaterial error related to an incorrect calculation of basic and diluted earnings per common share related to unvested nonparticipating restricted stock units. The corrected calculation results in increased basic and diluted earnings per common share in certain periods. In order to correct this immaterial error, the Company revised the basic and diluted earnings per common share for the interim quarters of the fiscal year ended June 30, 2018. The revisions are reflected in the table below. Three Months Ended September 30, 2017 (Dollars in thousands, except per share data) Previously Reported Adjustment Revised Earnings Per Common Share Net income attributable to common stockholders $ 32,306 $ — $ 32,306 Average common shares issued and outstanding 63,626,512 — 63,626,512 Average unvested RSUs 1,418,563 (1,324,470 ) 94,093 Total qualifying shares 65,045,075 (1,324,470 ) 63,720,605 Earnings per common share $ 0.50 $ 0.01 $ 0.51 Diluted Earnings Per Common Share Dilutive net income attributable to common stockholders $ 32,306 $ — $ 32,306 Average common shares issued and outstanding 65,045,075 (1,324,470 ) 63,720,605 Dilutive effect of average unvested RSUs — 471,967 471,967 Total dilutive common shares issued and outstanding 65,045,075 (852,503 ) 64,192,572 Diluted earnings per common share $ 0.50 $ — $ 0.50 During the fourth quarter of 2018, the Company identified an immaterial error related to the classification of proceeds from the sale of loans that were transferred from loans held-for-investment in the condensed consolidated statements of cash flows for the three months ended September 30, 2017 and revised its previously issued financial statements for the three months ended September 30, 2017 to correctly present these activities. There was no change to net change in cash and cash equivalents. The revisions to cash flows from operating and investing activities are reflected in the table below. Three Months Ended (Dollars in thousands) Previously Reported Adjustment Revised Cash Flows From Operating Activities: Proceeds from sale of loans held for sale $ 332,385 $ 81 $ 332,466 Other assets $ 2,114 $ (280 ) $ 1,834 Net cash provided by in operating activities $ 53,103 $ (199 ) $ 52,904 Cash Flows From Investing Activities: Proceeds from sale of loans held for investment $ — $ 199 $ 199 Net cash used in investing activities $ (91,381 ) $ 199 $ (91,182 ) The Company assessed the materiality of the errors on prior periods’ financial statements in accordance with SEC Staff Accounting Bulletin (“SAB”) No. 99, Materiality, codified in Accounting Standards Codification (“ASC”) 250, Presentation of Financial Statements and concluded that these misstatements were not material to any prior annual or interim periods. Accordingly, in accordance with ASC 250 (SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements), Consolidated Statements of Income, Consolidated Statements of Cash Flows and Earnings Per Common Share footnote have been revised to correctly present these amounts. The above revisions had no effect on net income or retained earnings. Periods not presented herein will be revised, as applicable, as they are included in future filings. New Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (the “revenue recognition standard”). Public entities are required to adopt the revenue recognition standard for reporting periods beginning after December 15, 2017. The core principle of Topic 606 is that an entity should recognize revenue to depict the transfer of 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. The standard affects all entities that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other guidance. Therefore, the ASU excludes revenue associated with financial instruments including loans, leases, securities, and derivatives as these topics are accounted for following other guidance. Other areas that are within the scope of the revenue recognition standard include service charges on deposit accounts, and gains and losses on other real estate owned. The Company identified and reviewed the revenue streams within the scope of ASU 2014-09, including but not limited to service charges on deposit accounts, prepaid card fees and mortgage banking income. On July 1, 2018, the Company adopted the modified retrospective approach and determined that the new guidance did not require significant changes to the Company’s consolidated financial statements, or the manner in which income from those revenue streams is recognized. In February 2016, the FASB issued ASU 2016-02, Leases , as amended in July 2018 by ASU 2018-10 Codification Improvements to Topic 842, Leases and ASU 2018-11 Leases (Topic 842): Targeted Improvements. The new standard establishes a right-of-use model that requires a lessee to record a right of use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months . Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASUs 2016-02, 2018-10 and 2018-11 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is anticipated for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company continues to evaluate the impact of ASUs 2016-02, 2018-10 and 2018-11, and has formed a working group to guide implementation efforts including determining whether other contracts exist that are deemed to be in scope. As such, no conclusions have yet been reached regarding the potential impact on adoption of ASUs 2016-02, 2018-10 and 2018-11 on the Company’s consolidated financial statements and regulatory capital and risk-weighted assets; however, the Company does not expect the amendments to have a material impact on its results of operations. In June 2016, the FASB issued ASU 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which (i) significantly changes the impairment model for most financial assets that are measured at amortized cost and certain other instruments from an incurred loss model to an expected loss model; and (ii) provides for recording credit losses on available-for-sale debt securities through an allowance account. ASU 2016-13 also requires certain incremental disclosures. ASU 2016-13 should be applied on a modified-retrospective transition approach that would require a cumulative-effect adjustment to the opening retained earnings in the statement of financial condition as of the date of adoption. A prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date. The guidance will be effective for the Company’s financial statements that include periods beginning July 1, 2020. Early adoption is permitted beginning July 1, 2019. The Company has formed a working group, which is currently developing an implementation plan to include assessment of processes, portfolio segmentation, model development, system requirements and the identification of data and resource needs, among other things including evaluating third-party vendor solutions. The Company expects ASU 2016-13 to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , which changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is deemed to be a business. Determining whether a transferred set constitutes a business is important because the accounting for a business combination differs from that of an asset acquisition. The definition of a business also affects the accounting for dispositions. Under the new standard, when substantially all of the fair value of assets acquired is concentrated in a single asset, or a group of similar assets, the assets acquired would not represent a business and business combination accounting would not be required. The new standard may result in more transactions being accounted for as asset acquisitions rather than business combinations. The Company adopted this standard on July 1, 2018. The new guidance did not have a significant impact on the Company’s consolidated financial statements at the time of adoption. In March 2017, the FASB issued guidance within ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities . The amendments in ASU 2017-08 to Subtopic 310-20, Receivables-Nonrefundable Fees and Other Costs, shorten the amortization period for certain purchased callable debt securities held at a premium to the earliest call date, which more closely align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities. Under current GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments in this ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718), Scope of Modification Accounting . The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The amendments in this update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for (1) public business entities for reporting periods for which financial statements have not yet been issued and (2) all other entities for reporting periods for which financial statements have not yet been made available for issuance. The Company adopted this standard on July 1, 2018. The new guidance did not have a significant impact on the Company’s consolidated financial statements at the time of adoption. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The ASU expands and refines hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedge items in the financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. The effective date of the new standard for public companies is for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition with a cumulative effect adjustment recorded to opening retained earnings as of the initial adoption date. The Company does not anticipate that this guidance will have a material impact on its consolidated financial statements. In June 2018, the FASB issued guidance within ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting . The amendments in ASU 2018-07 to Topic 718, Compensation-Stock Compensation, are intended to align the accounting for share-based payment awards issued to employees and nonemployees. Changes to the accounting for nonemployee awards include: 1) equity classified share-based payment awards issued to nonemployees will now be measured on the grant date, instead of the previous requirement to remeasure the awards through the performance completion date; 2) for performance conditions, compensation cost associated with the award will be recognized when achievement |
ACQUISITIONS (Notes)
ACQUISITIONS (Notes) | 3 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS The Company completed one acquisition during the fiscal year ended June 30, 2018 and announced two planned acquisitions during the three months ended September 30, 2018. The pro forma results of operations and the results of operations for acquisition since the acquisition date have not been separately disclosed because the effects were not material to the consolidated financial statements. The purchase transaction is detailed below. Bankruptcy trustee and fiduciary services business of Epiq Systems, Inc . On April 4, 2018, the Company completed the acquisition of the bankruptcy trustee and fiduciary services business of Epiq Systems, Inc. (“Epiq”). The assets acquired by the Company include comprehensive software solutions, trustee customer relationships, trade name, accounts receivable and fixed assets. The business provides specialized software and consulting services to Chapter 7 bankruptcy and non-Chapter 7 trustees and fiduciaries in all fifty states. This business is expected to generate fee income from bank partners and bankruptcy cases, as well as opportunities to source low cost deposits. No deposits were acquired as part of the transaction. The Company has included the financial results of the acquired bankruptcy trustee and fiduciary services business in its consolidated financial statements subsequent to the acquisition date. The Epiq transaction has been accounted for under the acquisition method of accounting. The assets, both tangible and intangible, were recorded at their estimated fair values as of the transaction date. The Company made significant estimates and exercised judgment in estimating fair values and accounting for such acquired assets and liabilities. During the three months ended September 30, 2018 the Company settled the working capital with Epiq and recorded a $2 adjustment to goodwill. See Note 7 to the consolidated financial statements for further information on goodwill and other intangible assets. Nationwide Bank . On August 3, 2018, the Bank entered into a purchase and assumption agreement (the “Agreement”) with Nationwide Bank (“Nationwide”) to acquire substantially all of the Nationwide deposits at the time of closing, estimated at approximately $3 billion in deposits, including $1 billion in checking, savings and money market accounts and $2 billion in time deposit accounts. Under the Agreement, the Bank will receive cash for the deposit balances transferred less a premium commensurate with the fair market value of the deposits purchased. On September 12, 2018 the bank received regulatory approval from the Office of the Comptroller of the Currency to proceed with the definitive purchase and assumption transaction. The closing of the transaction is targeted for November 2018. COR Clearing . On October 1, 2018 the Company announced that its subsidiary, Axos Clearing, LLC, had signed a definitive agreement to acquire by merger the parent company of COR Clearing LLC (“COR Clearing”). Headquartered in Omaha, Nebraska, COR Clearing is a leading, full-service correspondent clearing firm for independent broker-dealers. Established as a part of Mutual of Omaha Insurance Company and spun off as Legent Clearing in 2002, COR Clearing provides clearing, settlement, custody, securities and margin lending, and technology solutions to more than sixty introducing broker-dealers and 90,000 |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Accounting Standards Codification Topic 820, Fair Value Measurement , also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices in active markets for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 1 assets and liabilities include debt and equity securities that are actively traded in an exchange or over-the-counter market and are highly liquid, such as, among other assets and securities, certain U.S. treasury and other U.S. government debt. Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets include securities with quoted prices that are traded less frequently than exchange-traded instruments and whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models such as discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. When available, the Company generally uses quoted market prices to determine fair value, in which case the items are classified in Level 1. In some cases where a market price is available, the Company will make use of acceptable practical expedients (such as matrix pricing) to calculate fair value, in which case the items are classified in Level 2. The Company considers relevant and observable market prices in its valuations where possible. The frequency of transactions, the size of the bid-ask spread and the nature of the participants are some of the factors the Company uses to help determine whether a market is active and orderly or inactive and not orderly. Price quotes based upon transactions that are not orderly are not considered to be determinative of fair value and should be given little, if any, weight in measuring fair value. If quoted market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sourced market parameters, such as interest rates, credit spreads, housing value forecasts, etc. Items valued using such internally generated valuation techniques are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable. The following section describes the valuation methodologies used by the Company to measure various financial instruments at fair value, including an indication of the level in the fair value hierarchy in which each instrument is generally classified: Securities—trading, available-for-sale, and held-to-maturity . Trading securities are recorded at fair value. Available-for-sale (“AFS”) securities are recorded at fair value and consist of residential mortgage-backed securities (“RMBS”) issued by U.S. agencies, RMBS issued by non-agencies, municipal securities as well as other Non-RMBS securities. Fair value for U.S. agency securities is generally based on quoted market prices of similar securities used to form a dealer quote or a pricing matrix. There continues to be significant illiquidity in the market for RMBS issued by non-agencies, impacting the availability and reliability of transparent pricing. As orderly quoted market prices are not available, the Level 3 fair values for these securities are determined by the Company utilizing industry-standard tools to calculate the net present value of the expected cash flows available to the securities from the underlying mortgage assets. The Company computes Level 3 fair values for each non-agency RMBS in the same manner (as described below) whether available-for-sale or held-to-maturity. To determine the performance of the underlying mortgage loan pools, the Company estimates prepayments, defaults, and loss severities based on a number of macroeconomic factors, including housing price changes, unemployment rates, interest rates and borrower attributes such as credit score and loan documentation at the time of origination. For each security, the Company inputs a projection of monthly default rates, loss severity rates and voluntary prepayment rates for the underlying mortgages for the remaining life of each security to determine the expected cash flows. The projections of default rates are derived by the Company from the historic default rate observed in the pool of loans collateralizing the security, increased by and decreased by the forecasted increase or decrease in the national unemployment rate. The projections of loss severity rates are derived by the Company from the historic loss severity rate observed in the pool of loans, increased by (and decreased by) the forecasted decrease or increase in the national home price appreciation (“HPA”) index. The largest factors influencing the Company’s modeling of the monthly default rate are unemployment and HPA, as a strong correlation exists. The national unemployment rate announced prior to the end of the period covered by this report (reported for August 2018) was 3.9% , down from the high of 10.0% in October 2009. Going forward, the Company is projecting lower monthly default rates. The range of loss severity rates applied to each default used in the Company’s projections at September 30, 2018 are from 40.0% up to 68.0% based upon individual bond historical performance. The default rates and the severities are projected for every non-agency RMBS security held by the Company and will vary monthly based upon the actual performance of the security and the macroeconomic factors discussed above. To determine the discount rates used to compute the present value of the expected cash flows for these non-agency RMBS securities, the Company separates the securities by the borrower characteristics in the underlying pool. Specifically, “Alt-A” securities generally have borrowers with a lower FICO and less documentation of income. “Pay-option ARMs” are Alt-A securities with borrowers that tend to pay the least amount of principal (or increase their loan balance through negative amortization). The Company calculates separate discount rates for Alt-A and Pay-option ARM non-agency RMBS securities using market-participant assumptions for risk, capital and return on equity. The range of annual default rates used in the Company’s projections at September 30, 2018 are from 1.5% up to 12.8% with Alt-A and Pay-option ARMs securities tending toward the lower end of the range. The Company applies its discount rates to the projected monthly cash flows which already reflect the full impact of all forecasted losses using the assumptions described above. When calculating present value of the expected cash flows at September 30, 2018 , the Company computed its discount rates as a spread between 263 and 641 basis points over the interpolated swap curve with Alt-A and Pay-option ARM securities tending toward the lower end of the range. The Bank’s estimate of fair value for non-agency securities using Level 3 pricing is highly subjective and is based on the Bank’s estimate of voluntary prepayments, default rates, severities and discount margins, which are forecasted monthly over the remaining life of the security. Changes in one or more of these assumptions can cause a significant change in the estimated fair value. For further details see the table later in this note that summarizes quantitative information about Level 3 fair value measurements. Loans Held for Sale. Loans held for sale at fair value are primarily single-family and multifamily residential loans. The fair value of residential loans held for sale is determined by pricing for comparable assets or by existing forward sales commitment prices with investors. Impaired Loans and Leases. Impaired loans and leases are loans and leases which are inadequately protected by the current net worth and paying capacity of the borrowers or the collateral pledged. The accrual of interest income has been discontinued for impaired loans and leases. The impaired loans are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. The Company assesses loans individually and identifies impairment when the loan is classified as impaired, has been restructured, or management has serious doubts about the future collectibility of principal and interest, even though the loans may currently be performing. The fair value of an impaired loan is determined based on an observable market price or current appraised value of the underlying collateral. The fair value of impaired loans with specific write-offs or allocations of the allowance for loan losses are generally based on recent real estate appraisals or internal valuation analyses consistent with the methodology used in real estate appraisals and include other third-party valuations and analysis of cash flows. These appraisals and analyses are updated at least on an annual basis. The Company primarily obtains real estate appraisals and in the rare cases where an appraisal cannot be obtained, the Company performs an internal valuation analysis. These appraisals and analyses may utilize a single valuation approach or a combination of approaches including comparable sales and income approaches. The sales comparison approach uses at least three recent similar property sales to help determine the fair value of the property being appraised. The income approach is calculated by taking the net operating income generated by the collateral property of the rent collected and dividing it by an assumed capitalization rate. Adjustments are routinely made in the process by the appraisers to account for differences between the comparable sales and income data available. When measuring the fair value of the impaired loan based upon the projected sale of the underlying collateral, the Company subtracts the costs expected to be incurred for the transfer of the underlying collateral, which includes items such as sales commissions, delinquent taxes and insurance premiums. These adjustments to the estimated fair value of nonaccrual loans may result in increases or decreases to the provision for loan and lease losses recorded in current earnings. Such adjustments are typically significant and result in a Level 3 classification for the inputs for determining fair value. Other Real Estate Owned and Repossessed Vehicles . Non-recurring adjustments to certain commercial and residential real estate properties classified as other real estate owned (“OREO”) are measured at the lower of carrying amount or fair value, less estimated costs to sell. Fair values are generally based on third-party appraisals of the property, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. Mortgage Servicing Rights. The Company initially records all mortgage servicing rights (“MSRs”) at fair value and accounts for MSRs at fair value during the life of the MSR, with changes in fair value recorded mortgage banking income in the income statement. Fair value adjustments encompass market-driven valuation changes as well as modeled amortization involving the run-off of value that occurs due to the passage of time as individual loans are paid by borrowers. Market expectations about loan duration, and correspondingly the expected term of future servicing cash flows, may vary from time to time due to changes in expected prepayment activity, especially when interest rates rise or fall. Market expectations of increased loan prepayment speeds may negatively impact the fair value of the single family MSRs. Fair value is also dependent on the discount rate used in calculating present value, which is imputed from observable market activity and market participants and results in Level 3 classification. Management reviews and adjusts the discount rate on an ongoing basis. An increase in the discount rate would reduce the estimated fair value of the MSRs asset. Mortgage Banking Derivatives. Fair value for mortgage banking derivatives are either based upon prices in active secondary markets for identical securities or based on quoted market prices of similar assets used to form a dealer quote or a pricing matrix. If no such quoted price exists, the fair value of a commitment is determined by quoted prices for a similar commitment or commitments, adjusted for the specific attributes of each commitment. These fair values are then adjusted for items such as fallout and estimated costs to originate the loan. The Company’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 Company’s valuation methodologies are appropriate and consistent with or, in some cases, more conservative than 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 relevant reporting date. The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis at September 30, 2018 and June 30, 2018 . Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: September 30, 2018 (Dollars in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total ASSETS: Securities—Available-for-Sale: Agency RMBS $ — $ 10,685 $ — $ 10,685 Non-Agency RMBS — — 14,970 14,970 Municipal — 13,011 — 13,011 Asset-backed securities and structured notes — 164,061 — 164,061 Total—Securities—Available-for-Sale $ — $ 187,757 $ 14,970 $ 202,727 Loans Held for Sale $ — $ 30,916 $ — $ 30,916 Mortgage servicing rights $ — $ — $ 11,216 $ 11,216 Other assets—Derivative instruments $ — $ — $ 992 $ 992 LIABILITIES: Other liabilities—Derivative instruments $ — $ — $ — $ — June 30, 2018 (Dollars in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total ASSETS: Securities—Available-for-Sale: Agency RMBS $ — $ 12,926 $ — $ 12,926 Non-Agency RMBS — — 17,443 17,443 Municipal — 20,212 — 20,212 Asset-backed securities and structured notes — 129,724 — 129,724 Total—Securities—Available-for-Sale $ — $ 162,862 $ 17,443 $ 180,305 Loans Held for Sale $ — $ 35,077 $ — $ 35,077 Mortgage servicing rights $ — $ — $ 10,752 $ 10,752 Other assets—Derivative instruments $ — $ — $ 1,321 $ 1,321 LIABILITIES: Other liabilities—Derivative instruments $ — $ — $ 368 $ 368 The following tables present additional information about assets measured at fair value on a recurring basis and for which the Company has utilized Level 3 inputs to determine fair value: For the Three Months Ended September 30, 2018 (Dollars in thousands) Securities – Available-for-Sale: Non-Agency RMBS Mortgage Servicing Rights Derivative Instruments, net Total Opening Balance $ 17,443 $ 10,752 $ 953 $ 29,148 Total gains or losses for the period: Included in earnings—Sale of securities (133 ) — — (133 ) Included in earnings—Mortgage banking income — (289 ) 39 (250 ) Included in other comprehensive income 442 — — 442 Purchases, issues, sales and settlements: Purchases — 753 — 753 Sales (2,058 ) — — (2,058 ) Settlements (724 ) — — (724 ) Closing balance $ 14,970 $ 11,216 $ 992 $ 27,178 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ (133 ) $ (289 ) $ 39 $ (383 ) For the Three Months Ended September 30, 2017 (Dollars in thousands) Securities – Trading: Collateralized Debt Obligations Securities – Available-for-Sale: Non-Agency RMBS Mortgage Servicing Rights Derivative Instruments, net Total Opening Balance $ 8,327 $ 71,503 $ 7,200 $ 1,026 $ 88,056 Total gains or losses for the period: Included in earnings—Sale of securities 282 — — — 282 Included in earnings—Mortgage banking income — — 281 162 443 Included in other comprehensive income — (1,763 ) — — (1,763 ) Purchases, issues, sales and settlements: Purchases — — 563 — 563 Sales (8,609 ) — — — (8,609 ) Settlements — (2,972 ) — — (2,972 ) Other-than-temporary impairment — (149 ) — — (149 ) Closing balance $ — $ 66,619 $ 8,044 $ 1,188 $ 75,851 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ — $ 281 $ 162 $ 443 The table below summarizes the quantitative information about level 3 fair value measurements as of the dates indicated: September 30, 2018 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Securities – Non-agency RMBS $ 14,970 Discounted Cash Flow Projected Constant Prepayment Rate, 8.8 to 40.3% (12.9%) 1.5 to 12.8% (3.7%) Mortgage Servicing Rights $ 11,216 Discounted Cash Flow Projected Constant Prepayment Rate, 6.2 to 27.8% (9.3%) 2.3 to 9.6 (6.8) Derivative Instruments $ 992 Sales Comparison Approach Projected Sales Profit of Underlying Loans 0.3 to 0.4% (0.3%) June 30, 2018 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Securities – Non-agency RMBS $ 17,443 Discounted Cash Flow Projected Constant Prepayment Rate, 2.5 to 25.8% (14.1%) 1.5 to 10.6% (5.1%) Mortgage Servicing Rights $ 10,752 Discounted Cash Flow Projected Constant Prepayment Rate, 6.0 to 26.6% (9.1%) 2.4 to 9.5 (6.9) Derivative Instruments $ 953 Sales Comparison Approach Projected Sales Profit of Underlying Loans 0.1 to 0.4% (0.3%) The significant unobservable inputs used in the fair value measurement of the Company’s residential mortgage-backed securities are projected prepayment rates, probability of default, and projected loss severity in the event of default. Significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for the projected loss severity and a directionally opposite change in the assumption used for projected prepayment rates. The table below summarizes assets measured for impairment on a non-recurring basis: September 30, 2018 (Dollars in thousands) Quoted Prices in Significant Other Significant Balance Impaired Loans and Leases: Single family real estate secured: Mortgage $ — $ — $ 28,257 $ 28,257 Home equity — — 16 16 Auto and RV secured — — 114 114 Commercial & Industrial — — 1,590 1,590 Other — — 159 159 Total $ — $ — $ 30,136 $ 30,136 Other real estate owned and foreclosed assets: Single family real estate $ — $ — $ 9,397 $ 9,397 Autos and RVs — — 100 100 Total $ — $ — $ 9,497 $ 9,497 June 30, 2018 (Dollars in thousands) Quoted Prices in Significant Other Significant Balance Impaired Loans and Leases: Single family real estate secured: Mortgage $ — $ — $ 28,446 $ 28,446 Home equity — — 16 16 Multifamily real estate secured — — 232 232 Auto and RV secured — — 60 60 Commercial & Industrial — — 2,361 2,361 Other — — 111 111 Total $ — $ — $ 31,226 $ 31,226 Other real estate owned and foreclosed assets: Single family real estate $ — $ — $ 9,385 $ 9,385 Autos and RVs — — 206 206 Total $ — $ — $ 9,591 $ 9,591 Impaired loans and leases measured for impairment on a non-recurring basis using the fair value of the collateral for collateral-dependent loans and leases have a carrying amount of $30,136 , after charge-offs of $654 for the three months ended September 30, 2018 , life to date charge-offs of $2,273 , life to date interest payments applied to principal of $774 for total life to date principal balance adjustments of $3,047 . Impaired loans had a related allowance of $228 at September 30, 2018 . Other real estate owned and foreclosed assets, which are measured at the lower of carrying value or fair value less costs to sell, had a net carrying amount of $9,497 after charge-offs of $4 for the three months ended September 30, 2018 . The Company has elected the fair value option for Agency loans held for sale. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loan. None of these loans are 90 days or more past due nor on nonaccrual as of September 30, 2018 and June 30, 2018 . As of September 30, 2018 and June 30, 2018 , the aggregate fair value of loans held for sale, carried at fair value, contractual balance (including accrued interest), and gain was as follows: (Dollars in thousands) September 30, 2018 June 30, 2018 Aggregate fair value $ 30,916 $ 35,077 Contractual balance 30,372 34,415 Gain $ 544 $ 662 The total amount of gains and losses from changes in fair value included in earnings for the period indicated below for loans held for sale were: For the Three Months Ended September 30, (Dollars in thousands) 2018 2017 Interest income $ 314 $ 147 Change in fair value (81 ) (201 ) Total $ 233 $ (54 ) The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at the periods indicated: September 30, 2018 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Input Range (Weighted Average) 1 Impaired loans and leases: Single family real estate secured: Mortgage $ 28,257 Sales comparison approach Adjustment for differences between the comparable sales -30.9 to 66.7% (5.8%) Home equity $ 16 Sales comparison approach Adjustment for differences between the comparable sales 0.0 to 14.9% (7.4%) Auto and RV secured $ 114 Sales comparison approach Adjustment for differences between the comparable sales -20.0 to 21.9% (7.8%) Commercial and Industrial $ 1,590 Sales comparison approach Adjustment for differences between the comparable sales -33.8 to 0.0% (-16.9%) Other $ 159 Discounted cash flow Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate 0.0 to 0.0% (0.0%) Other real estate owned and foreclosed assets: Single family real estate $ 9,397 Sales comparison approach Adjustment for differences between the comparable sales -14.1 to 27.3% (0.5%) Autos and RVs $ 100 Sales comparison approach Adjustment for differences between the comparable sales -33.9 to 60.5% (5.5%) 1 For impaired loans, other real estate owned and foreclosed assets the ranges shown may vary positively or negatively based on the comparable sales reported in the current appraisal. In certain instances, the range can be significant due to small sample sizes and in some cases the property being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted. June 30, 2018 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Input Range (Weighted Average) 1 Impaired loans and leases: Single family real estate secured: Mortgage $ 28,446 Sales comparison approach Adjustment for differences between the comparable sales -48.8 to 66.7% (2.3%) Home equity $ 16 Sales comparison approach Adjustment for differences between the comparable sales 0.0 to 14.9% (7.4%) Multifamily real estate secured $ 232 Sales comparison approach and income approach Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, capitalization rate -15.5 to 46.4% (15.4%) Auto and RV secured $ 60 Sales comparison approach Adjustment for differences between the comparable sales -2.0 to 71.5% (24.0%) Commercial and Industrial $ 2,361 Sales comparison approach Adjustment for differences between the comparable sales -33.8 to 0.0% (-16.9%) Other $ 111 Discounted cash flow Projected Constant Prepayment Rate, 0.0 to 0.0% (0.0%) 0.0 to 10.0% (5.0%) 100.0 to 100.0% (100.0%) -1.0 to 2.5% (0.8%) Other real estate owned and foreclosed assets: Single family real estate $ 9,385 Sales comparison approach Adjustment for differences between the comparable sales -14.1 to 27.3% (0.5%) Autos and RVs $ 206 Sales comparison approach Adjustment for differences between the comparable sales -33.9 to 60.5% (7.9%) 1 For impaired loans, other real estate owned and foreclosed assets the ranges shown may vary positively or negatively based on the comparable sales reported in the current appraisal. In certain instances, the range can be significant due to small sample sizes and in some cases the property being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted. Fair value of Financial Instruments The carrying amounts and estimated fair values of financial instruments at September 30, 2018 and June 30, 2018 were as follows: September 30, 2018 Fair Value (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 533,969 $ 533,969 $ — $ — $ 533,969 Securities available-for-sale 202,727 — 187,757 14,970 202,727 Loans held for sale, at fair value 30,916 — 30,916 — 30,916 Loans held for sale, at lower of cost or fair value 6,078 — — 7,631 7,631 Loans and leases held for investment—net 8,654,500 — — 8,706,788 8,706,788 Accrued interest receivable 35,951 — — 35,951 35,951 Mortgage servicing rights 11,216 — — 11,216 11,216 Financial liabilities: Total deposits 6,077,588 — 5,731,313 — 5,731,313 Advances from the Federal Home Loan Bank 2,580,000 — 2,575,696 — 2,575,696 Subordinated notes and debentures 54,588 — 51,308 — 51,308 Accrued interest payable 2,353 — 2,353 — 2,353 June 30, 2018 Fair Value (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 622,850 $ 622,850 $ — $ — $ 622,850 Securities available-for-sale 180,305 — 162,862 17,443 180,305 Loans held for sale, at fair value 35,077 — 35,077 — 35,077 Loans held for sale, at lower of cost or fair value 2,686 — — 2,734 2,734 Loans and leases held for investment—net 8,432,289 — — 8,466,494 8,466,494 Accrued interest receivable 26,729 — — 26,729 26,729 Mortgage servicing rights 10,752 — — 10,752 10,752 Financial liabilities: Total deposits 7,985,350 — 7,584,928 — 7,584,928 Advances from the Federal Home Loan Bank 457,000 — 453,326 — 453,326 Subordinated notes and debentures 54,552 — 51,693 — 51,693 Accrued interest payable 1,753 — 1,753 — 1,753 |
SECURITIES
SECURITIES | 3 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The amortized cost, carrying amount and fair value for the available-for-sale securities at September 30, 2018 and June 30, 2018 were: September 30, 2018 Available-for-sale (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mortgage-backed securities (RMBS): U.S. agencies 1 $ 10,959 $ 79 $ (353 ) $ 10,685 Non-agency 2 16,603 85 (1,718 ) 14,970 Total mortgage-backed securities 27,562 164 (2,071 ) 25,655 Non-RMBS: Municipal 13,865 1 (855 ) 13,011 Asset-backed securities and structured notes 161,700 2,450 (89 ) 164,061 Total Non-RMBS 175,565 2,451 (944 ) 177,072 Total debt securities $ 203,127 $ 2,615 $ (3,015 ) $ 202,727 June 30, 2018 Available-for-sale (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mortgage-backed securities (RMBS): U.S. agencies 1 $ 13,102 $ 152 $ (328 ) $ 12,926 Non-agency 2 19,384 116 (2,057 ) 17,443 Total mortgage-backed securities 32,486 268 (2,385 ) 30,369 Non-RMBS: Municipal 20,953 2 (743 ) 20,212 Asset-backed securities and structured notes 127,558 2,267 (101 ) 129,724 Total Non-RMBS 148,511 2,269 (844 ) 149,936 Total debt securities $ 180,997 $ 2,537 $ (3,229 ) $ 180,305 1 U.S. government-backed or government sponsored enterprises including Fannie Mae, Freddie Mac and Ginnie Mae. 2 Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option ARM mortgages. The Company’s non-agency RMBS available-for-sale portfolio with a total fair value of $14,970 at September 30, 2018 consists of fourteen different issues of super senior securities. Debt securities with evidence of credit quality deterioration since issuance and for which it is probable at purchase that the Company will be unable to collect all of the par value of the security are accounted for under ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC Topic 310-30”). Under ASC Topic 310-30, the excess of cash flows expected at acquisition over the purchase price is referred to as the accretable yield and is recognized in interest income over the remaining life of the security. The face amounts of debt securities available-for-sale that were pledged to secure borrowings at September 30, 2018 and June 30, 2018 were $2,080 and $2,540 respectively. The securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows: September 30, 2018 Available-for-sale securities in loss position for Less Than 12 Months More Than 12 Months Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses RMBS: U.S. agencies $ 2,182 $ (5 ) $ 5,124 $ (348 ) $ 7,306 $ (353 ) Non-agency 35 (1 ) 13,595 (1,716 ) 13,630 (1,717 ) Total RMBS securities 2,217 (6 ) 18,719 (2,064 ) 20,936 (2,070 ) Non-RMBS: Municipal debt 1,725 (24 ) 11,230 (831 ) 12,955 (855 ) Asset-backed securities and structured notes 8,389 (30 ) 5,255 (60 ) 13,644 (90 ) Total Non-RMBS 10,114 (54 ) 16,485 (891 ) 26,599 (945 ) Total debt securities $ 12,331 $ (60 ) $ 35,204 $ (2,955 ) $ 47,535 $ (3,015 ) June 30, 2018 Available-for-sale securities in loss position for Less Than 12 Months More Than 12 Months Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses RMBS: U.S. agencies $ 12 $ (1 ) $ 6,825 $ (327 ) $ 6,837 $ (328 ) Non-agency 36 (1 ) 15,867 (2,056 ) 15,903 (2,057 ) Total RMBS securities 48 (2 ) 22,692 (2,383 ) 22,740 (2,385 ) Non-RMBS: Municipal debt 1,740 (17 ) 12,326 (726 ) 14,066 (743 ) Asset-backed securities and structured notes 9,489 (30 ) 6,163 (71 ) 15,652 (101 ) Total Non-RMBS 11,229 (47 ) 18,489 (797 ) 29,718 (844 ) Total debt securities $ 11,277 $ (49 ) $ 41,181 $ (3,180 ) $ 52,458 $ (3,229 ) There were twenty-two securities that were in a continuous loss position at September 30, 2018 for a period of more than 12 months .There were thirteen securities that were in a continuous loss position at September 30, 2018 for a period of less than 12 months . There were twenty-six securities that were in a continuous loss position at June 30, 2018 for a period of more than 12 months .There were eleven securities that were in a continuous loss position at June 30, 2018 for a period of less than 12 months . The following table summarizes amounts of anticipated credit loss recognized in the income statement through other-than-temporary impairment charges, which reduced non-interest income: For the Three Months Ended September 30, (Dollars in thousands) 2018 2017 Beginning balance $ — $ (15,528 ) Additions for the amounts related to the credit loss for which an other-than-temporary impairment was not previously recognized — — Increases to the amount related to the credit loss for which other-than-temporary impairment was previously recognized — (149 ) Credit losses realized for securities sold — — Ending balance $ — $ (15,677 ) At September 30, 2018 , no non-agency RMBS were determined to have cumulative credit losses and therefore no losses were recognized in earnings during the three months ended September 30, 2018 . The Company measures its non-agency RMBS in an unrealized loss position at the end of the reporting period for other-than-temporary impairment by comparing the present value of the cash flows currently expected to be collected from the security with its amortized cost basis. If the calculated present value is lower than the amortized cost, the difference is the credit component of an other-than-temporary impairment of its debt securities. The excess of present value over the fair value of the security, if any, is the noncredit component of the other-than-temporary impairment. If the Company does not intend to sell the security and will not be required to sell the security before recovery of its amortized cost basis, the credit component of other-than-temporary impairment is recorded as a loss in earnings and the noncredit component of other-than-temporary impairment is recorded in comprehensive income, net of the related income tax benefit. If the Company does not intend to hold the security, or will be required to sell the security prior to a recovery of the amortized cost basis of the security, the credit component and noncredit component of the other-than-temporary impairment is recorded as a loss in earnings. To determine the cash flow expected to be collected and to calculate the present value for purposes of testing for other-than-temporary impairment, the Company utilizes the same industry-standard tool and the same cash flows as those calculated for Level 3 fair values as discussed in Note 4 – Fair Value. The discount rates used to compute the present value of the expected cash flows for purposes of testing for the credit component of the other-than-temporary impairment are either the implicit rate calculated in each of the Company’s securities at acquisition or the last accounting yield. The Company calculates the implicit rate at acquisition based on the contractual terms of the security, considering scheduled payments (and minimum payments in the case of pay-option ARMs) without prepayment assumptions. Once the discount rate (or discount margin in the case of floating rate securities) is calculated as described above, the discount is used in the industry-standard model to calculate the present value of the cash flows. Total proceeds of $8,700 and net realized gains of $282 were realized from the sale of trading securities during the three months ended September 30, 2017. During the three months ended September 30, 2018, the company sold one available-for-sale securities with a carrying value of $2,059 resulting in a $133 loss. The gross gains and losses realized through earnings upon the sale of available-for-sale securities were as follows: For the Three Months Ended September 30, (Dollars in thousands) 2018 2017 Proceeds $ 1,926 $ — Gross realized gains — — Gross realized losses (133 ) — Net realized gain (loss) on securities $ (133 ) $ — The Company had recorded unrealized gains and unrealized losses in accumulated other comprehensive loss as follows: (Dollars in thousands) September 30, June 30, Available-for-sale debt securities—net unrealized gains (losses) $ (400 ) $ (692 ) Available-for-sale debt securities—non-credit related losses — — Held-to-maturity debt securities—non-credit related losses — — Subtotal (400 ) (692 ) Tax (expense) benefit (7 ) 79 Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss) $ (407 ) $ (613 ) The expected maturity distribution of the Company’s mortgage-backed securities and the contractual maturity distribution of the Company’s Non-RMBS securities classified as available-for-sale and held-to-maturity were: September 30, 2018 Available for sale (Dollars in thousands) Amortized Cost Fair Value RMBS—U.S. agencies 1 : Due within one year $ 1,253 $ 1,216 Due one to five years 3,679 3,576 Due five to ten years 2,770 2,706 Due after ten years 3,257 3,187 Total RMBS—U.S. agencies 1 10,959 10,685 RMBS—Non-agency: Due within one year 2,603 2,388 Due one to five years 7,700 6,981 Due five to ten years 4,822 4,292 Due after ten years 1,478 1,309 Total RMBS—Non-agency 16,603 14,970 Non-RMBS: Due within one year 67,214 68,093 Due one to five years 95,513 96,992 Due five to ten years 8,312 7,798 Due after ten years 4,526 4,189 Total Non-RMBS 175,565 177,072 Total $ 203,127 $ 202,727 1 |
LOANS, LEASES & ALLOWANCE FOR L
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES | 3 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES | LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES The following table sets forth the composition of the loan and lease portfolio as of the dates indicated: (Dollars in thousands) September 30, 2018 June 30, 2018 Single family real estate secured: Mortgage $ 4,265,909 $ 4,198,941 Home equity 2,436 2,306 Warehouse and other 1 374,317 412,085 Multifamily real estate secured 1,836,784 1,800,919 Commercial real estate secured 243,040 220,379 Auto and RV secured 236,978 213,522 Factoring 96,929 169,885 Commercial & Industrial 1,640,017 1,481,051 Other 21,048 18,598 Total gross loans and leases 8,717,458 8,517,686 Allowance for loan and lease losses (50,120 ) (49,151 ) Unaccreted discounts and loan and lease fees (12,838 ) (36,246 ) Total net loans and leases $ 8,654,500 $ 8,432,289 1 The balance of single family warehouse loans was $156,610 at September 30, 2018 and $175,508 at June 30, 2018 . The remainder of the balance was attributable to commercial specialty and lender finance loans secured by single family real estate. Allowance for Loan and Lease Losses. We are committed to maintaining the allowance for loan and lease losses (sometimes referred to as the “allowance”) at a level that is considered to be commensurate with estimated probable incurred credit losses in the portfolio. Although the adequacy of the allowance is reviewed quarterly, management performs an ongoing assessment of the risks inherent in the portfolio. While the Company believes that the allowance for loan and lease losses is adequate at September 30, 2018 , future additions to the allowance will be subject to continuing evaluation of estimated and known, as well as inherent risks in the loan and lease portfolio. Allowance for Loan and Lease Loss Disclosures. The assessment of the adequacy of the Company’s allowance for loan and lease losses is based upon a number of quantitative and qualitative factors, including levels and trends of past due and nonaccrual loans and leases, change in volume and mix of loans and leases, collateral values and charge-off history. The Company provides general loan loss reserves for its automobile (“auto”) and recreational vehicle (“RV”) loans based upon the borrower credit score and the Company’s loss experience to date. The allowance for loan loss for the auto and RV loan portfolio at September 30, 2018 was determined by classifying each outstanding loan according to semi-annually refreshed FICO score and providing loss rates. The Company had $236,864 of auto and RV loan balances subject to general reserves as follows: FICO greater than or equal to 770: $113,887 ; 715 – 769: $83,798 ; 700 – 714: $21,287 ; 660 – 699: $16,581 and less than 660: $1,311 . The Company provides general loan loss reserves for mortgage loans based upon the size and class of the mortgage loan and the loan-to-value ratio (“LTV”) at date of origination. The Company divides the LTV analysis into two classes, separating the purchased loans from the loans underwritten directly by the Company. Based on historical performance, the Company concluded that originated loans require lower estimated loss rates than purchased loans. The allowance for each class is determined by dividing the outstanding unpaid balance for each loan by the loan-to-value and applying a loss rate. The LTV groupings for each significant mortgage class are as follows: The Company had $4,237,654 of single family mortgage portfolio loan balances subject to general reserves as follows: LTV less than or equal to 60%: $2,469,446 ; 61% – 70%: $1,383,247 ; 71% – 80%: $384,770 ; and greater than 80%: $191 . The Company had $1,836,784 of multifamily mortgage portfolio loan balances subject to general reserves as follows: LTV less than or equal to 55%: $932,712 ; 56% – 65%: $599,113 ; 66% – 75%: $294,302 ; 76% – 80%: $9,457 and greater than 80%: $1,200 . The Company had $243,040 of commercial real estate loan balances subject to general reserves as follows: LTV less than or equal to 50%: $120,484 ; 51% – 60%: $57,531 ; 61% – 70%: $57,128 ; and 71% – 80%: $7,897 . The Company’s commercial secured portfolio consists of business loans well-collateralized by residential real estate. The Company’s other portfolio consists of receivables factoring for businesses and consumers. The Company allocates its allowance for loan loss for these asset types based on qualitative factors which consider the value of the collateral and the financial position of the issuer of the receivables. Seasonal fluctuations in the Other loan classification and its associated allowance for loan and lease losses primarily relate to tax season H&R Block-related loan products. These products are generally short term in nature, in that they are intended to be repaid within a few weeks or months of origination; if they are not repaid timely, they are generally charged off in their entirety at 120 days delinquent, consistent with regulatory guidance for unsecured consumer loan products. The Company provides general loan loss reserves for its H&R Block-related loans based upon prior years’ loss experience with consideration for current year loan performance. While they do incur higher proportional default and charge-off rates than the remainder of the Company’s loan and lease portfolio, these asset quality attributes are within expectations of the design of the products. During the three months ended September 30, 2018 , the Company experiences a higher level of recoveries for its H&R Block related loans. The following tables summarize activity in the allowance for loan and lease losses by portfolio classes for the periods indicated: For the Three Months Ended September 30, 2018 Single Family Real Estate Secured (Dollars in thousands) Mortgage Home Equity Warehouse & Other Multifamily Real Estate Secured Commercial Real Estate Secured Auto and RV Secured Factoring Commercial & Industrial Other Total Balance at July 1, 2018 $ 20,368 $ 14 $ 2,080 $ 5,010 $ 849 $ 3,178 $ 445 $ 16,238 $ 969 $ 49,151 Provision for loan and lease losses 933 (3 ) (151 ) (193 ) 6 622 (123 ) 131 (622 ) 600 Charge-offs (1 ) — — — — (233 ) — (600 ) (391 ) (1,225 ) Recoveries 395 3 — 109 — 48 — — 1,039 1,594 Balance at September 30, 2018 $ 21,695 $ 14 $ 1,929 $ 4,926 $ 855 $ 3,615 $ 322 $ 15,769 $ 995 $ 50,120 For the Three Months Ended September 30, 2017 Single Family Real Estate Secured (Dollars in thousands) Mortgage Home Equity Warehouse & Other Multifamily Real Estate Secured Commercial Real Estate Secured Auto and RV Secured Factoring Commercial & Industrial Other Total Balance at July 1, 2017 $ 19,972 $ 19 $ 2,298 $ 4,638 $ 1,008 $ 2,379 $ 401 $ 9,881 $ 236 $ 40,832 Provision for loan and lease losses (76 ) (2 ) 834 200 (94 ) 625 61 (267 ) (281 ) 1,000 Charge-offs (85 ) — — — — (148 ) — — (1 ) (234 ) Recoveries 4 3 — — — 102 — — 392 501 Balance at September 30, 2017 $ 19,815 $ 20 $ 3,132 $ 4,838 $ 914 $ 2,958 $ 462 $ 9,614 $ 346 $ 42,099 The following tables present our loans and leases evaluated individually for impairment by portfolio class: September 30, 2018 (Dollars in thousands) Unpaid Principal Balance Principal Balance Adjustment 1 Recorded Investment Accrued Interest / Origination Fees Total Related Allocation of General Allowance Related Allocation of Specific Allowance With no related allowance recorded: Single family real estate secured: Mortgage: In-house originated $ 1,583 $ 953 $ 630 $ 94 $ 724 $ — $ — Purchased 2,387 1,151 1,236 — 1,236 — — Auto and RV secured: In-house originated 354 275 79 2 81 — — Commercial and Industrial: In-house originated 2,190 600 1,590 — 1,590 — — With an allowance recorded: Single family real estate secured: Mortgage: In-house originated 25,058 117 24,941 179 25,120 203 — Purchased 1,399 (49 ) 1,448 83 1,531 14 — Home equity: In-house originated 16 — 16 — 16 1 — Auto and RV secured: In-house originated 35 — 35 — 35 4 — Other 159 — 159 — 159 6 — Total $ 33,181 $ 3,047 $ 30,134 $ 358 $ 30,492 $ 228 $ — As a % of total gross loans and leases 0.38 % 0.03 % 0.35 % — % 0.35 % — % — % June 30, 2018 (Dollars in thousands) Unpaid Principal Balance Principal Balance Adjustment 1 Recorded Investment Accrued Interest / Origination Fees Total Related Allocation of General Allowance Related Allocation of Specific Allowance With no related allowance recorded: Single family real estate secured: Mortgage: In-house originated $ 1,584 $ 951 $ 633 $ 78 $ 711 $ — $ — Purchased 3,598 1,739 1,859 — 1,859 — — Multifamily real estate secured: Purchased 480 248 232 — 232 — — Auto and RV secured: In-house originated 369 309 60 2 62 — — With an allowance recorded: Single family real estate secured: Mortgage: In-house originated 24,607 47 24,560 — 24,560 247 — Purchased 1,394 — 1,394 21 1,415 14 — Home equity: In-house originated 16 — 16 — 16 1 — Commercial & Industrial 172 — 172 — 172 9 — Other 111 — 111 — 111 7 — Total $ 32,331 $ 3,294 $ 29,037 $ 101 $ 29,138 $ 278 $ — As a % of total gross loans and leases 0.38 % 0.04 % 0.34 % — % 0.34 % — % — % 1 Impaired loans with an allowance recorded do not have any charge-offs. Principal balance adjustments on impaired loans with an allowance recorded represent interest payments that have been applied to the book balance as a result of the loans’ non-accrual status. The following tables present the balance in the allowance for loan and lease losses and the recorded investment in loans and leases by portfolio segment and based on impairment evaluation method: September 30, 2018 Single Family Real Estate Secured (Dollars in thousands) Mortgage Home Warehouse and other Multifamily real estate secured Commercial real estate secured Auto and RV secured Factoring Commercial & Industrial Other Total Allowance for loan and lease losses: Ending allowance balance attributable to loans and leases: Individually evaluated for impairment – general allowance $ 217 $ 1 $ — $ — $ — $ 4 $ — $ — $ 6 $ 228 Individually evaluated for impairment – specific allowance — — — — — — — — — — Collectively evaluated for impairment 21,478 13 1,929 4,926 855 3,611 322 15,769 989 49,892 Total ending allowance balance $ 21,695 $ 14 $ 1,929 $ 4,926 $ 855 $ 3,615 $ 322 $ 15,769 $ 995 $ 50,120 Loans and leases: Loans and leases individually evaluated for impairment 1 $ 28,255 $ 16 $ — $ — $ — $ 114 $ — $ 1,590 $ 159 $ 30,134 Loans and leases collectively evaluated for impairment 4,237,654 2,420 374,317 1,836,784 243,040 236,864 96,929 1,638,427 20,889 8,687,324 Principal loan and lease balance 4,265,909 2,436 374,317 1,836,784 243,040 236,978 96,929 1,640,017 21,048 8,717,458 Unaccreted discounts and loan and lease fees 8,765 48 (521 ) 5,341 822 2,185 (24,166 ) (4,392 ) (920 ) (12,838 ) Total recorded investment in loans and leases $ 4,274,674 $ 2,484 $ 373,796 $ 1,842,125 $ 243,862 $ 239,163 $ 72,763 $ 1,635,625 $ 20,128 $ 8,704,620 1 Loans and leases evaluated for impairment include Troubled Debt Restructurings (“TDRs”) that have been performing for more than six months . June 30, 2018 Single Family Real Estate Secured (Dollars in thousands) Mortgage Home Warehouse and other Multifamily real estate secured Commercial real estate Auto and RV secured Factoring Commercial & Industrial Other Total Allowance for loan and lease losses: Ending allowance balance attributable to loans and leases: Individually evaluated for impairment – general allowance $ 261 $ 1 $ — $ — $ — $ — $ — $ 9 $ 7 $ 278 Individually evaluated for impairment – specific allowance — — — — — — — — — — Collectively evaluated for impairment 20,107 13 2,080 5,010 849 3,178 445 16,229 962 48,873 Total ending allowance balance $ 20,368 $ 14 $ 2,080 $ 5,010 $ 849 $ 3,178 $ 445 $ 16,238 $ 969 $ 49,151 Loans and leases: Loans and leases individually evaluated for impairment 1 $ 28,446 $ 16 $ — $ 232 $ — $ 60 $ — $ 172 $ 111 $ 29,037 Loans and leases collectively evaluated for impairment 4,170,495 2,290 412,085 1,800,687 220,379 213,462 169,885 1,480,879 18,487 8,488,649 Principal loan and lease balance 4,198,941 2,306 412,085 1,800,919 220,379 213,522 169,885 1,481,051 18,598 8,517,686 Unaccreted discounts and loan and lease fees 9,187 48 (706 ) 5,063 836 2,065 (48,039 ) (3,884 ) (816 ) (36,246 ) Total recorded investment in loans and leases $ 4,208,128 $ 2,354 $ 411,379 $ 1,805,982 $ 221,215 $ 215,587 $ 121,846 $ 1,477,167 $ 17,782 $ 8,481,440 1 Loans and leases evaluated for impairment include TDRs that have been performing for more than six months . Credit Quality Disclosures. Nonaccrual loans and leases consisted of the following as of the dates indicated: (Dollars in thousands) September 30, June 30, Single Family Real Estate Secured: Mortgage: In-house originated $ 25,572 $ 25,193 Purchased 2,685 3,253 Home Equity: In-house originated 16 16 Multifamily Real Estate Secured: Purchased — 232 Total nonaccrual loans secured by real estate 28,273 28,694 Auto and RV Secured 114 60 Commercial & Industrial 1,590 2,361 Other 159 111 Total nonaccrual loans and leases $ 30,136 $ 31,226 Nonaccrual loans and leases to total loans and leases 0.35 % 0.37 % Approximately 2.45% of our nonaccrual loans and leases at September 30, 2018 were considered TDRs, compared to 3.30% at June 30, 2018 . Borrowers that make timely payments after TDRs are considered non-performing for at least six months . Generally, after six months of timely payments, those TDRs are reclassified from the nonaccrual loan and lease category to the performing loan and lease category and any previously deferred interest income is recognized. Approximately 93.76% of the Bank’s nonaccrual loans and leases are single family first mortgages already written down to 43.04% in aggregate, of the original appraisal value of the underlying properties. The following tables present the outstanding unpaid balance of loans and leases that are performing and nonaccrual by portfolio class: September 30, 2018 Single Family Real Estate Secured (Dollars in thousands) Mortgage Home Warehouse & other Multifamily real estate secured Commercial real estate secured Auto and RV secured Factoring Commercial & Industrial Other Total Performing $ 4,237,652 $ 2,420 $ 374,317 $ 1,836,784 $ 243,040 $ 236,864 $ 96,929 $ 1,638,427 $ 20,889 $ 8,687,322 Nonaccrual 28,257 16 — — — 114 — 1,590 159 30,136 Total $ 4,265,909 $ 2,436 $ 374,317 $ 1,836,784 $ 243,040 $ 236,978 $ 96,929 $ 1,640,017 $ 21,048 $ 8,717,458 June 30, 2018 Single Family Real Estate Secured (Dollars in thousands) Mortgage Home Warehouse & other Multifamily real estate secured Commercial real estate secured Auto and RV secured Factoring Commercial & Industrial Other Total Performing $ 4,170,495 $ 2,290 $ 412,085 $ 1,800,687 $ 220,379 $ 213,462 $ 169,885 $ 1,478,690 $ 18,487 $ 8,486,460 Nonaccrual 28,446 16 — 232 — 60 — 2,361 111 31,226 Total $ 4,198,941 $ 2,306 $ 412,085 $ 1,800,919 $ 220,379 $ 213,522 $ 169,885 $ 1,481,051 $ 18,598 $ 8,517,686 From time to time the Company modifies loan terms temporarily for borrowers who are experiencing financial stress. These loans are performing and accruing and will generally return to the original loan terms after the modification term expires. The Company had no TDRs classified as performing loans at September 30, 2018 or June 30, 2018 . The Company’s loan modifications primarily included single family, multifamily and commercial loans of which included one or a combination of the following: a reduction of the stated interest rate or delinquent property taxes that were paid by the Bank and either repaid by the borrower over a one year period or capitalized and amortized over the remaining life of the loan. The Company’s loan modifications also included RV loans in which borrowers were able to make interest-only payments for a period of six months to one year which then reverted back to fully amortizing. Credit Quality Indicators The Company categorizes loans and leases into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans and leases individually by classifying the loans and leases based on credit risk. The Company uses the following definitions for risk ratings. Pass. Loans and leases classified as pass are well protected by the current net worth and paying capacity of the obligor or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner. Special Mention . Loans and leases classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease or of the institution’s credit position at some future date. Substandard . Loans and leases classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans and leases so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful . Loans and leases classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The Company reviews and grades loans and leases following a continuous review process, featuring coverage of all loan and lease types and business lines at least quarterly. Continuous reviewing provides more effective risk monitoring because it immediately tests for potential impacts caused by changes in personnel, policy, products or underwriting standards. The following table presents the composition of the Company’s loan and lease portfolio by credit quality indicators: September 30, 2018 (Dollars in thousands) Pass Special Substandard Doubtful Total Single family real estate secured: Mortgage In-house originated $ 4,181,652 $ 20,376 $ 27,600 $ — $ 4,229,628 Purchased 32,964 572 2,745 — 36,281 Home equity In-house originated 2,420 — 16 — 2,436 Warehouse and other In-house originated 374,317 — — — 374,317 Multifamily real estate secured In-house originated 1,773,029 1,442 — — 1,774,471 Purchased 61,348 — 965 — 62,313 Commercial real estate secured In-house originated 234,954 — — — 234,954 Purchased 8,086 — — — 8,086 Auto and RV secured In-house originated 236,728 43 207 — 236,978 Factoring 96,929 — — — 96,929 Commercial & Industrial 1,545,273 92,902 1,842 — 1,640,017 Other 20,699 189 160 — 21,048 Total $ 8,568,399 $ 115,524 $ 33,535 $ — $ 8,717,458 As a % of total gross loans and leases 98.3 % 1.3 % 0.4 % — % 100.0 % June 30, 2018 (Dollars in thousands) Pass Special Substandard Doubtful Total Single family real estate secured: Mortgage In-house originated $ 4,113,537 $ 19,403 $ 26,264 $ — $ 4,159,204 Purchased 36,024 461 3,252 — 39,737 Home equity In-house originated 2,290 — 16 — 2,306 Warehouse and other In-house originated 412,085 — — — 412,085 Multifamily real estate secured In-house originated 1,731,068 3,983 — — 1,735,051 Purchased 64,663 — 1,205 — 65,868 Commercial real estate secured In-house originated 212,235 — — — 212,235 Purchased 6,226 1,918 — — 8,144 Auto and RV secured In-house originated 213,455 — 67 — 213,522 Factoring 169,885 — — — 169,885 Commercial & Industrial 1,471,433 5,460 1,969 2,189 1,481,051 Other 18,369 118 111 — 18,598 Total $ 8,451,270 $ 31,343 $ 32,884 $ 2,189 $ 8,517,686 As a % of total gross loans and leases 99.2 % 0.4 % 0.4 % — % 100.0 % The increase in Special Mention Commercial & Industrial loans between June 30, 2018 and September 30, 2018 relates to two construction loan borrowers whose time horizon to complete has increased beyond the initial project plan, however both borrowers are current with all financial obligations. The loans are structured as senior, first position with loan to cost ratios less than 60%. The Company considers the performance of the loan and lease portfolio and its impact on the allowance for loan and lease losses. The Company also evaluates credit quality based on the aging status of its loans and leases. During the year, the Company holds certain short-term loans that do not have a fixed maturity date that are treated as delinquent if not paid in full 90 days after the origination date. The following table provides the outstanding unpaid balance of loans and leases that are past due 30 days or more by portfolio class as of the period indicated: September 30, 2018 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Single family real estate secured: Mortgage In-house originated $ 12,054 $ 9,240 $ 18,372 $ 39,666 Purchased 835 641 915 2,391 Home equity In-house originated — — 16 16 Multifamily real estate secured In-house originated 1,136 — — 1,136 Auto and RV secured 400 49 50 499 Commercial & Industrial 252 — 1,590 1,842 Other 204 189 159 552 Total $ 14,881 $ 10,119 $ 21,102 $ 46,102 As a % of total gross loans and leases 0.17 % 0.12 % 0.24 % 0.53 % June 30, 2018 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Single family real estate secured: Mortgage In-house originated $ 7,830 $ 3,240 $ 22,009 $ 33,079 Purchased 354 105 1,183 1,642 Home equity In-house originated — — 16 16 Multifamily real estate secured In-house originated 410 — — 410 Auto and RV secured In-house originated 284 22 9 315 Commercial & Industrial 300 — 2,362 2,662 Other 79 111 111 301 Total $ 9,257 $ 3,478 $ 25,690 $ 38,425 As a % of total gross loans and leases 0.11 % 0.04 % 0.30 % 0.45 % |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS (Notes) | 3 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The Company’s goodwill of $35.7 million as of September 30, 2018 and June 30, 2018 results from its acquisition of the bankruptcy trustee and fiduciary services business of Epiq. The Company’s acquired intangible assets are summarized as follows as of the dates indicated: September 30, 2018 June 30, 2018 (Dollars in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Covenant not to compete $ 930 $ 116 $ 814 $ 930 $ 58 $ 872 Customer relationships 9,820 485 9,335 9,820 243 9,577 Developed technologies 21,680 652 21,028 21,680 326 21,354 Trade name 290 48 242 290 24 266 Total intangible assets $ 32,720 $ 1,301 $ 31,419 $ 32,720 $ 651 $ 32,069 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES As a result of legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”) that was enacted on December 22, 2017 , the Company revised its estimated annual effective rate to reflect a change in the federal statutory rate from 35.0% to 21.0% . The Tax Act makes broad and complex changes to the U.S. tax code that will affect our fiscal year ending June 30, 2019 , including reducing the U.S. federal corporate statutory tax rate to 21.0% . The accounting for the effects of the rate change on deferred tax balances is complete and no |
EQUITY AND STOCK-BASED COMPENSA
EQUITY AND STOCK-BASED COMPENSATION | 3 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
EQUITY AND STOCK-BASED COMPENSATION | EQUITY AND STOCK-BASED COMPENSATION Common Stock Repurchases. On March 17, 2016, the Board of Directors of the Company (the “Board”), authorized a program to repurchase up to $100 million of common stock. The new share repurchase authorization replaces the previous share repurchase plan approved on July 5, 2005. The Company may repurchase shares on the open market or through privately negotiated transactions at times and prices considered appropriate, at the discretion of the Company, and subject to its assessment of alternative uses of capital, stock trading price, general market conditions and regulatory factors. The repurchase program does not obligate the Company to acquire any specific number of shares. The share repurchase program will continue in effect until terminated by the Board. As of September 30, 2018 , the Company has $64.8 million remaining under the current Board authorized stock repurchase program. The Company accounts for treasury stock using the cost method as a reduction of shareholders’ equity in the accompanying unaudited condensed consolidated financial statements. Restricted Stock Units. During the three months ended September 30, 2018 and 2017 , the Company granted 733,995 and 506,716 restricted stock unit awards (“RSUs”) to employees and directors, respectively. RSUs granted during these quarters generally vest over three years, one-third on each anniversary date, except for any RSUs granted to the Company’s CEO, which vest one-fourth on each fiscal year end. The Company’s income before income taxes and net income for the three months ended September 30, 2018 and 2017 include stock award expense of $6,851 and $3,659 , with total income tax benefit of $1,731 and $1,499 , respectively. The Company recognizes compensation expense based upon the grant-date fair value divided by the vesting and the service period between each vesting date. At September 30, 2018 , unrecognized compensation expense related to non-vested awards aggregated to $43,615 and is expected to be recognized in future periods as follows: (Dollars in thousands) Stock Award Compensation Expense For the fiscal year remainder: 2019 $ 15,017 2020 14,925 2021 8,536 2022 2,589 2023 1,382 Thereafter 1,166 Total $ 43,615 The following table presents the status and changes in restricted stock units for the periods indicated: Restricted Stock Units Weighted-Average Grant-Date Fair Value Non-vested balance at June 30, 2017 1,240,322 $ 22.52 Granted 747,022 26.53 Vested (629,755 ) 22.55 Canceled (123,858 ) 23.38 Non-vested balance at June 30, 2018 1,233,731 $ 24.84 Granted 733,995 37.09 Vested (247,582 ) 23.32 Canceled (25,188 ) 28.05 Non-vested balance at September 30, 2018 1,694,956 $ 30.32 The total fair value of shares vested for the three months ended September 30, 2018 was $9,768 . The total fair value of shares vested for the three months ended September 30, 2017 was $5,646 |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Earnings per common share (“EPS”) are presented under two formats: basic EPS and diluted EPS. Basic EPS is computed by dividing the net income attributable to common stock (net income after deducting dividends on preferred stock) by the sum of the weighted-average number of common shares outstanding during the year and the unvested average of participating RSUs. Diluted EPS is computed by dividing the sum of net income attributable to common stock and dividends on diluted preferred stock by the sum of the weighted-average number of common shares outstanding during the year and the impact of dilutive potential common shares, such as nonparticipating RSUs, stock options and convertible preferred stock. The Company accounts for unvested stock-based compensation awards containing non-forfeitable rights to dividends or dividend equivalents (collectively, “dividends”) as participating securities and includes the awards in the EPS calculation using the two-class method. The Company had granted restricted stock units under the 2004 Stock Incentive Plan to certain directors and employees, which entitle the recipients to receive non-forfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities. Under the two class method, all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities, based on their respective rights to receive dividends. Under the 2014 Stock Incentive Plan, RSUs have no stockholder rights, meaning they are not entitled to dividends and are considered nonparticipating. These nonparticipating RSUs are not included in the basic EPS calculation and are included in the diluted EPS calculation using the treasury stock method. The following table presents the calculation of basic and diluted EPS: Three Months Ended September 30, (Dollars in thousands, except per share data) 2018 2017 Earnings Per Common Share Net income $ 36,841 $ 32,383 Preferred stock dividends (77 ) (77 ) Net income attributable to common shareholders $ 36,764 $ 32,306 Average common shares outstanding 62,795,598 63,626,512 Average unvested RSUs (as revised for 2017) — 94,093 Total qualifying shares (as revised for 2017) 62,795,598 63,720,605 Earnings per common share (as revised for 2017) $ 0.59 $ 0.51 Diluted Earnings Per Common Share Dilutive net income attributable to common shareholders $ 36,764 $ 32,306 Average common shares issued and outstanding (as revised for 2017) 62,795,598 63,720,605 Dilutive effect of average unvested RSUs (as revised for 2017) 561,438 471,967 Total dilutive common shares outstanding (as revised for 2017) 63,357,036 64,192,572 Diluted earnings per common share (as revised for 2017) $ 0.58 $ 0.50 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Credit-Related Financial Instruments . The Company is a party to credit-related financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are commitments to extend credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance-sheet instruments. At September 30, 2018 , the Company had commitments to originate $49,695 in fixed rate loans and leases and $623,583 in variable rate loans, totaling an aggregate outstanding principal balance of $673,278 . Our fixed rate loan and lease commitments to originate had rates ranging from 3.63% to 8.86% . At September 30, 2018 , the Company also had commitments to sell $64,869 in fixed rate loans and $838 in variable rate loans, totaling an aggregate outstanding principal balance of $65,707 . Commitments to extend credit are agreements to lend to a customer so long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer. Litigation. On October 15, 2015, the Company, its Chief Executive Officer and its Chief Financial Officer were named defendants in a putative class action lawsuit styled Golden v. BofI Holding, Inc., et al, and brought in United States District Court for the Southern District of California (the “Golden Case”). On November 3, 2015, the Company, its Chief Executive Officer and its Chief Financial Officer were named defendants in a second putative class action lawsuit styled Hazan v. BofI Holding, Inc., et al, and also brought in the United States District Court for the Southern District of California (the “Hazan Case”). On February 1, 2016, the Golden Case and the Hazan Case were consolidated as In re BofI Holding, Inc. Securities Litigation, Case #: 3:15-cv-02324-GPC-KSC (the “Class Action”), and the Houston Municipal Employees Pension System was appointed lead plaintiff. The plaintiffs allege that the Company and other named defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by failing to disclose wrongful conduct that was alleged in a complaint filed in connection with a wrongful termination of employment lawsuit filed on October 13, 2015 (the “Employment Matter”) and that as a result the Company’s statements regarding its internal controls, as well as portions of its financial statements, were false and misleading. On March 21, 2018, the Court entered a final order dismissing the Class Action with prejudice. On March 28, 2018, the plaintiff filed a notice of appeal. On April 3, 2017, the Company, its Chief Executive Officer and its Chief Financial Officer were named defendants in a putative class action lawsuit styled Mandalevy v. BofI Holding, Inc., et al, and brought in United States District Court for the Southern District of California (the “Mandalevy Case”). The Mandalevy Case seeks monetary damages and other relief on behalf of a putative class that has not been certified by the Court. The complaint in the Mandalevy Case (the “Mandalevy Complaint”) alleges a class period that differs from that alleged in the First Class Action, and that the Company and other named defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by failing to disclose wrongful conduct that was alleged in a March 2017 media article. The Mandalevy Case has not been consolidated into the First Class Action. The Company and the other named defendants dispute the allegations of wrongdoing advanced by the plaintiffs in the Class Action, the Mandalevy Case, and in the Employment Matter, as well as those plaintiffs’ statement of the underlying factual circumstances, and are vigorously defending each case. In addition to the First Class Action and the Mandalevy Case, two separate shareholder derivative actions were filed in December, 2015, purportedly on behalf of the Company. The first derivative action, Calcaterra v. Garrabrants, et al , was filed in the United States District Court for the Southern District of California on December 3, 2015. The second derivative action, Dow v. Micheletti, et al , was filed in the San Diego County Superior Court on December 16, 2015. A third derivative action, DeYoung v. Garrabrants, et al , was filed in the United States District Court for the Southern District of California on January 22, 2016, a fourth derivative action, Yong v. Garrabrants, et al , was filed in the United States District Court for the Southern District of California on January 29, 2016, a fifth derivative action, Laborers Pension Trust Fund of Northern Nevada v. Allrich et al , was filed in the United States District Court for the Southern District of California on February 2, 2016, and a sixth derivative action, Garner v. Garrabrants, et al , was filed in the San Diego County Superior Court on August 10, 2017. Each of these six derivative actions names the Company as a nominal defendant, and certain of its officers and directors as defendants. Each complaint sets forth allegations of breaches of fiduciary duties, gross mismanagement, abuse of control, and unjust enrichment against the defendant officers and directors. The plaintiffs in these derivative actions seek damages in unspecified amounts on the Company’s behalf from the officer and director defendants, certain corporate governance actions, and an award of their costs and attorney’s fees. The United States District Court for the Southern District of California ordered the four above-referenced derivative actions pending before it to be consolidated and appointed lead counsel in the consolidated action. On June 7, 2018, the Court entered an order granting defendant’s motion for judgment on the pleadings, but giving the plaintiffs limited leave to amend by June 28, 2018. The plaintiffs failed to file an amended complaint, and instead plaintiffs filed on June 28, 2018 a motion to stay the case pending resolution of the securities class action and Employment Matter. On August 10, 2018, defendants filed an opposition to plaintiffs’ motion. On September 11, 2018, the plaintiffs filed a second amended complaint. On October 16, 2018, defendants filed a motion to dismiss the second amended complaint. The two derivative actions pending before the San Diego County Superior Court have been consolidated and have been stayed by agreement of the parties. In view of the inherent difficulty of predicting the outcome of each legal action, particularly since claimants seek substantial or indeterminate damages, it is not possible to reasonably predict or estimate the eventual loss or range of loss, if any, related to each legal action. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS In the ordinary course of business, the Company has granted related party loans collateralized by real property to principal officers, directors and their affiliates that are considered to be insiders by regulation. There were no new related party loans granted under the provisions of the employee loan program and no refinances of existing loans during the three months ended September 30, 2018 , and no new loans and no refinances of existing loans during the three months ended September 30, 2017 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Consolidation | The condensed consolidated financial statements include the accounts of Axos Financial, Inc. (“Axos”), formerly known as BofI Holding, Inc., and its wholly owned subsidiary, Axos Bank, formerly known as BofI Federal Bank (the “Bank” and collectively, the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. |
Reclassifications | Certain reclassifications were made to previously reported amounts in the unaudited condensed consolidated financial statements and notes thereto to make them consistent with the current period presentation. |
Basis of Presentation | The accompanying interim condensed consolidated financial statements, presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), are unaudited and reflect all adjustments which, in the opinion of management, are necessary for a fair statement of financial condition and results of operations for the interim periods. All adjustments are of a normal and recurring nature. Results for the three months ended September 30, 2018 are not necessarily indicative of results that may be expected for any other interim period or for the year as a whole. Certain information and note disclosures normally included in the audited annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) with respect to interim financial reporting. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended June 30, 2018 |
Securities | Securities . Debt securities are classified as held-to-maturity and carried at amortized cost when management has both the positive intent and ability to hold them to maturity. Debt securities are classified as available-for-sale when they might be sold before maturity. Trading securities refer to certain types of assets that banks hold for resale at a profit or when the Company elects to account for certain securities at fair value. Increases or decreases in the fair value of trading securities are recognized in earnings as they occur. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. |
Loans and Leases | Loans and Leases . Loans and leases that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, deferred purchase premiums and discounts, deferred origination fees and costs, and an allowance for loan and lease losses. Interest income is accrued on the unpaid principal balance. Premiums and discounts on loans purchased as well as origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method. The Company provides equipment financing to its customers through a variety of lease arrangements. The most common arrangement is a direct financing (capital) lease. For direct financing leases, lease receivables are recorded on the balance sheet but the leased property is not, although the Company generally retains legal title to the leased property until the end of each lease. Direct financing leases are stated at the net amount of minimum lease payments receivable, plus any unguaranteed residual value, less the amount of unearned income and net acquisition discount at the reporting date. Direct lease origination costs are amortized over the weighted average life of the lease portfolio. Leases acquired in an acquisition are initially measured and recorded at their fair value on the acquisition date. Purchase discounts or premiums on acquired leases are recognized as an adjustment to interest income over the contractual life of the leases using the effective interest method or taken into income when the related leases are paid off. Direct financing leases are subject to the allowance for loan and lease losses. Recognition of interest income on all portfolio segments is generally discontinued at the time the loan or lease is 90 days delinquent unless the loan or lease is well secured and in process of collection. Past due status is based on the contractual terms of the loan or lease. In all cases, loans or leases are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. |
Loans Held for Sale | Loans Held for Sale. U.S government agency (“agency”) loans originated and intended for sale in the secondary market are carried at fair value. Net unrealized gains and losses are recognized through mortgage banking income in the income statement. The Bank sells its mortgage loans with either servicing released or servicing retained depending upon market pricing. Gains and losses on loan sales are recorded as mortgage banking income or other gains on sale, based on the difference between sales proceeds and carrying value. Non-agency loans held for sale are carried at the lower of cost or fair value. Loans that were originated with the intent and ability to hold for the foreseeable future (loans held for investment) but which have been subsequently designated as being held for sale for risk management or liquidity needs are carried at the lower of cost or fair value calculated using pools of loans with similar characteristics. |
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses. The allowance for loan and lease losses is maintained at a level estimated to provide for probable incurred losses in the loan and lease portfolio. Management determines the adequacy of the allowance based on reviews of individual loans and leases and pools of loans, recent loss experience, current economic conditions, the risk characteristics of the various categories of loans and leases and other pertinent factors. This evaluation is inherently subjective and requires estimates that are susceptible to significant revision as more information becomes available. The allowance is increased by the provision for loan and lease losses, which is charged against current period operating results and recoveries of loans and leases previously charged-off. The allowance is decreased by the amount of charge-offs of loans and leases deemed uncollectible. Allocations of the allowance may be made for specific loans and leases but the entire allowance is available for any loan or lease that, in management’s judgment, should be charged off. |
Revenue Recognition | Contract Balances. A contract asset or receivable is recognized if the Company performs a service or transfers a good in advance of receiving consideration. A contract liability is recognized if the Company receives consideration (or has the unconditional right to receive consideration) in advance of performance. As of September 30, 2018 , the Company’s contract liabilities were not considered material. Contract Acquisition Costs. The Company uses the practical expedient to expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in less than one year. In adopting the guidance in Topic 606, the Company did not capitalize any contract acquisition costs. Other Real Estate Owned. . On July 1, 2018, the Company adopted ASU 2014-09, “ Revenue from Contracts with Customers (Topic 606) ”, and all subsequent amendments using a modified retrospective approach. The implementation of the new standard did not have a material impact on the measurement, timing, or recognition of revenue. Accordingly, no cumulative effect adjustment to opening retained earnings was deemed necessary. Results for reporting periods beginning after July 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain non-interest income streams such as gain or loss associated with mortgage servicing rights, financial guarantees, derivatives, and income from bank owned life insurance are also not within the scope of the new guidance. Topic 606 is applicable to non-interest income such as deposit related fees, interchange fees, merchant related income. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Non-interest income considered to be within the scope of Topic 606 is discussed below. Deposit Service Fees. Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Fees, Exchange, and Other Service Charges. Fees, exchange, and other service charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Bankruptcy Trustee and Fiduciary Service Fees. Bankruptcy Trustee and Fiduciary Service income is primarily comprised of fees earned from the Monthly Basis Point Fee and Bank Account Service Charge. The products and services provided to the Trustee also indirectly provide additional deposits to the other banks. One of the uses of the increased deposits by the other banks is to fund the fees paid. The performance obligation is satisfied when the deposits are increased (or decreased) at the end of each month. The expected value method will be used to calculate and record the estimated revenue at the beginning of each month with a subsequent reconciliation to actual at the end of each month. |
New Accounting Pronouncements | New Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (the “revenue recognition standard”). Public entities are required to adopt the revenue recognition standard for reporting periods beginning after December 15, 2017. The core principle of Topic 606 is that an entity should recognize revenue to depict the transfer of 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. The standard affects all entities that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other guidance. Therefore, the ASU excludes revenue associated with financial instruments including loans, leases, securities, and derivatives as these topics are accounted for following other guidance. Other areas that are within the scope of the revenue recognition standard include service charges on deposit accounts, and gains and losses on other real estate owned. The Company identified and reviewed the revenue streams within the scope of ASU 2014-09, including but not limited to service charges on deposit accounts, prepaid card fees and mortgage banking income. On July 1, 2018, the Company adopted the modified retrospective approach and determined that the new guidance did not require significant changes to the Company’s consolidated financial statements, or the manner in which income from those revenue streams is recognized. In February 2016, the FASB issued ASU 2016-02, Leases , as amended in July 2018 by ASU 2018-10 Codification Improvements to Topic 842, Leases and ASU 2018-11 Leases (Topic 842): Targeted Improvements. The new standard establishes a right-of-use model that requires a lessee to record a right of use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months . Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASUs 2016-02, 2018-10 and 2018-11 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is anticipated for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company continues to evaluate the impact of ASUs 2016-02, 2018-10 and 2018-11, and has formed a working group to guide implementation efforts including determining whether other contracts exist that are deemed to be in scope. As such, no conclusions have yet been reached regarding the potential impact on adoption of ASUs 2016-02, 2018-10 and 2018-11 on the Company’s consolidated financial statements and regulatory capital and risk-weighted assets; however, the Company does not expect the amendments to have a material impact on its results of operations. In June 2016, the FASB issued ASU 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which (i) significantly changes the impairment model for most financial assets that are measured at amortized cost and certain other instruments from an incurred loss model to an expected loss model; and (ii) provides for recording credit losses on available-for-sale debt securities through an allowance account. ASU 2016-13 also requires certain incremental disclosures. ASU 2016-13 should be applied on a modified-retrospective transition approach that would require a cumulative-effect adjustment to the opening retained earnings in the statement of financial condition as of the date of adoption. A prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date. The guidance will be effective for the Company’s financial statements that include periods beginning July 1, 2020. Early adoption is permitted beginning July 1, 2019. The Company has formed a working group, which is currently developing an implementation plan to include assessment of processes, portfolio segmentation, model development, system requirements and the identification of data and resource needs, among other things including evaluating third-party vendor solutions. The Company expects ASU 2016-13 to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , which changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is deemed to be a business. Determining whether a transferred set constitutes a business is important because the accounting for a business combination differs from that of an asset acquisition. The definition of a business also affects the accounting for dispositions. Under the new standard, when substantially all of the fair value of assets acquired is concentrated in a single asset, or a group of similar assets, the assets acquired would not represent a business and business combination accounting would not be required. The new standard may result in more transactions being accounted for as asset acquisitions rather than business combinations. The Company adopted this standard on July 1, 2018. The new guidance did not have a significant impact on the Company’s consolidated financial statements at the time of adoption. In March 2017, the FASB issued guidance within ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities . The amendments in ASU 2017-08 to Subtopic 310-20, Receivables-Nonrefundable Fees and Other Costs, shorten the amortization period for certain purchased callable debt securities held at a premium to the earliest call date, which more closely align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities. Under current GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments in this ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718), Scope of Modification Accounting . The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The amendments in this update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for (1) public business entities for reporting periods for which financial statements have not yet been issued and (2) all other entities for reporting periods for which financial statements have not yet been made available for issuance. The Company adopted this standard on July 1, 2018. The new guidance did not have a significant impact on the Company’s consolidated financial statements at the time of adoption. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The ASU expands and refines hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedge items in the financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. The effective date of the new standard for public companies is for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition with a cumulative effect adjustment recorded to opening retained earnings as of the initial adoption date. The Company does not anticipate that this guidance will have a material impact on its consolidated financial statements. In June 2018, the FASB issued guidance within ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting . The amendments in ASU 2018-07 to Topic 718, Compensation-Stock Compensation, are intended to align the accounting for share-based payment awards issued to employees and nonemployees. Changes to the accounting for nonemployee awards include: 1) equity classified share-based payment awards issued to nonemployees will now be measured on the grant date, instead of the previous requirement to remeasure the awards through the performance completion date; 2) for performance conditions, compensation cost associated with the award will be recognized when achievement of the performance condition is probable, rather than upon achievement of the performance condition; and 3) the current requirement to reassess the classification (equity or liability) for nonemployee awards upon vesting will be eliminated, except for awards in the form of convertible instruments. The new guidance also clarifies that any share-based payment awards issued to customers should be evaluated under ASC 606, Revenue from Contracts with Customers . |
Fair Value Measurement | Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Accounting Standards Codification Topic 820, Fair Value Measurement , also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices in active markets for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 1 assets and liabilities include debt and equity securities that are actively traded in an exchange or over-the-counter market and are highly liquid, such as, among other assets and securities, certain U.S. treasury and other U.S. government debt. Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets include securities with quoted prices that are traded less frequently than exchange-traded instruments and whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models such as discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. When available, the Company generally uses quoted market prices to determine fair value, in which case the items are classified in Level 1. In some cases where a market price is available, the Company will make use of acceptable practical expedients (such as matrix pricing) to calculate fair value, in which case the items are classified in Level 2. The Company considers relevant and observable market prices in its valuations where possible. The frequency of transactions, the size of the bid-ask spread and the nature of the participants are some of the factors the Company uses to help determine whether a market is active and orderly or inactive and not orderly. Price quotes based upon transactions that are not orderly are not considered to be determinative of fair value and should be given little, if any, weight in measuring fair value. |
Fair Value of Financial Instruments | The following section describes the valuation methodologies used by the Company to measure various financial instruments at fair value, including an indication of the level in the fair value hierarchy in which each instrument is generally classified: Securities—trading, available-for-sale, and held-to-maturity . Trading securities are recorded at fair value. Available-for-sale (“AFS”) securities are recorded at fair value and consist of residential mortgage-backed securities (“RMBS”) issued by U.S. agencies, RMBS issued by non-agencies, municipal securities as well as other Non-RMBS securities. Fair value for U.S. agency securities is generally based on quoted market prices of similar securities used to form a dealer quote or a pricing matrix. There continues to be significant illiquidity in the market for RMBS issued by non-agencies, impacting the availability and reliability of transparent pricing. As orderly quoted market prices are not available, the Level 3 fair values for these securities are determined by the Company utilizing industry-standard tools to calculate the net present value of the expected cash flows available to the securities from the underlying mortgage assets. The Company computes Level 3 fair values for each non-agency RMBS in the same manner (as described below) whether available-for-sale or held-to-maturity. To determine the performance of the underlying mortgage loan pools, the Company estimates prepayments, defaults, and loss severities based on a number of macroeconomic factors, including housing price changes, unemployment rates, interest rates and borrower attributes such as credit score and loan documentation at the time of origination. For each security, the Company inputs a projection of monthly default rates, loss severity rates and voluntary prepayment rates for the underlying mortgages for the remaining life of each security to determine the expected cash flows. The projections of default rates are derived by the Company from the historic default rate observed in the pool of loans collateralizing the security, increased by and decreased by the forecasted increase or decrease in the national unemployment rate. The projections of loss severity rates are derived by the Company from the historic loss severity rate observed in the pool of loans, increased by (and decreased by) the forecasted decrease or increase in the national home price appreciation (“HPA”) index. The largest factors influencing the Company’s modeling of the monthly default rate are unemployment and HPA, as a strong correlation exists. The national unemployment rate announced prior to the end of the period covered by this report (reported for August 2018) was 3.9% , down from the high of 10.0% in October 2009. Going forward, the Company is projecting lower monthly default rates. The range of loss severity rates applied to each default used in the Company’s projections at September 30, 2018 are from 40.0% up to 68.0% based upon individual bond historical performance. The default rates and the severities are projected for every non-agency RMBS security held by the Company and will vary monthly based upon the actual performance of the security and the macroeconomic factors discussed above. To determine the discount rates used to compute the present value of the expected cash flows for these non-agency RMBS securities, the Company separates the securities by the borrower characteristics in the underlying pool. Specifically, “Alt-A” securities generally have borrowers with a lower FICO and less documentation of income. “Pay-option ARMs” are Alt-A securities with borrowers that tend to pay the least amount of principal (or increase their loan balance through negative amortization). The Company calculates separate discount rates for Alt-A and Pay-option ARM non-agency RMBS securities using market-participant assumptions for risk, capital and return on equity. The range of annual default rates used in the Company’s projections at September 30, 2018 are from 1.5% up to 12.8% with Alt-A and Pay-option ARMs securities tending toward the lower end of the range. The Company applies its discount rates to the projected monthly cash flows which already reflect the full impact of all forecasted losses using the assumptions described above. When calculating present value of the expected cash flows at September 30, 2018 , the Company computed its discount rates as a spread between 263 and 641 basis points over the interpolated swap curve with Alt-A and Pay-option ARM securities tending toward the lower end of the range. The Bank’s estimate of fair value for non-agency securities using Level 3 pricing is highly subjective and is based on the Bank’s estimate of voluntary prepayments, default rates, severities and discount margins, which are forecasted monthly over the remaining life of the security. Changes in one or more of these assumptions can cause a significant change in the estimated fair value. For further details see the table later in this note that summarizes quantitative information about Level 3 fair value measurements. Loans Held for Sale. Loans held for sale at fair value are primarily single-family and multifamily residential loans. The fair value of residential loans held for sale is determined by pricing for comparable assets or by existing forward sales commitment prices with investors. Impaired Loans and Leases. Impaired loans and leases are loans and leases which are inadequately protected by the current net worth and paying capacity of the borrowers or the collateral pledged. The accrual of interest income has been discontinued for impaired loans and leases. The impaired loans are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. The Company assesses loans individually and identifies impairment when the loan is classified as impaired, has been restructured, or management has serious doubts about the future collectibility of principal and interest, even though the loans may currently be performing. The fair value of an impaired loan is determined based on an observable market price or current appraised value of the underlying collateral. The fair value of impaired loans with specific write-offs or allocations of the allowance for loan losses are generally based on recent real estate appraisals or internal valuation analyses consistent with the methodology used in real estate appraisals and include other third-party valuations and analysis of cash flows. These appraisals and analyses are updated at least on an annual basis. The Company primarily obtains real estate appraisals and in the rare cases where an appraisal cannot be obtained, the Company performs an internal valuation analysis. These appraisals and analyses may utilize a single valuation approach or a combination of approaches including comparable sales and income approaches. The sales comparison approach uses at least three recent similar property sales to help determine the fair value of the property being appraised. The income approach is calculated by taking the net operating income generated by the collateral property of the rent collected and dividing it by an assumed capitalization rate. Adjustments are routinely made in the process by the appraisers to account for differences between the comparable sales and income data available. When measuring the fair value of the impaired loan based upon the projected sale of the underlying collateral, the Company subtracts the costs expected to be incurred for the transfer of the underlying collateral, which includes items such as sales commissions, delinquent taxes and insurance premiums. These adjustments to the estimated fair value of nonaccrual loans may result in increases or decreases to the provision for loan and lease losses recorded in current earnings. Such adjustments are typically significant and result in a Level 3 classification for the inputs for determining fair value. Other Real Estate Owned and Repossessed Vehicles . Non-recurring adjustments to certain commercial and residential real estate properties classified as other real estate owned (“OREO”) are measured at the lower of carrying amount or fair value, less estimated costs to sell. Fair values are generally based on third-party appraisals of the property, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. Mortgage Servicing Rights. The Company initially records all mortgage servicing rights (“MSRs”) at fair value and accounts for MSRs at fair value during the life of the MSR, with changes in fair value recorded mortgage banking income in the income statement. Fair value adjustments encompass market-driven valuation changes as well as modeled amortization involving the run-off of value that occurs due to the passage of time as individual loans are paid by borrowers. Market expectations about loan duration, and correspondingly the expected term of future servicing cash flows, may vary from time to time due to changes in expected prepayment activity, especially when interest rates rise or fall. Market expectations of increased loan prepayment speeds may negatively impact the fair value of the single family MSRs. Fair value is also dependent on the discount rate used in calculating present value, which is imputed from observable market activity and market participants and results in Level 3 classification. Management reviews and adjusts the discount rate on an ongoing basis. An increase in the discount rate would reduce the estimated fair value of the MSRs asset. Mortgage Banking Derivatives. Fair value for mortgage banking derivatives are either based upon prices in active secondary markets for identical securities or based on quoted market prices of similar assets used to form a dealer quote or a pricing matrix. If no such quoted price exists, the fair value of a commitment is determined by quoted prices for a similar commitment or commitments, adjusted for the specific attributes of each commitment. These fair values are then adjusted for items such as fallout and estimated costs to originate the loan. The Company’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 Company’s valuation methodologies are appropriate and consistent with or, in some cases, more conservative than 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 relevant reporting date. |
Credit Quality Indicators | Credit Quality Indicators The Company categorizes loans and leases into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans and leases individually by classifying the loans and leases based on credit risk. The Company uses the following definitions for risk ratings. Pass. Loans and leases classified as pass are well protected by the current net worth and paying capacity of the obligor or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner. Special Mention . Loans and leases classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease or of the institution’s credit position at some future date. Substandard . Loans and leases classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans and leases so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful . Loans and leases classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. |
Earnings Per Common Share | Earnings per common share (“EPS”) are presented under two formats: basic EPS and diluted EPS. Basic EPS is computed by dividing the net income attributable to common stock (net income after deducting dividends on preferred stock) by the sum of the weighted-average number of common shares outstanding during the year and the unvested average of participating RSUs. Diluted EPS is computed by dividing the sum of net income attributable to common stock and dividends on diluted preferred stock by the sum of the weighted-average number of common shares outstanding during the year and the impact of dilutive potential common shares, such as nonparticipating RSUs, stock options and convertible preferred stock.The Company accounts for unvested stock-based compensation awards containing non-forfeitable rights to dividends or dividend equivalents (collectively, “dividends”) as participating securities and includes the awards in the EPS calculation using the two-class method. The Company had granted restricted stock units under the 2004 Stock Incentive Plan to certain directors and employees, which entitle the recipients to receive non-forfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities. Under the two class method, all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities, based on their respective rights to receive dividends. Under the 2014 Stock Incentive Plan, RSUs have no stockholder rights, meaning they are not entitled to dividends and are considered nonparticipating. These nonparticipating RSUs are not included in the basic EPS calculation and are included in the diluted EPS calculation using the treasury stock method. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Non-interest Income, Segregated by Revenue Streams | The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the periods indicated. Three Months Ended September 30, (Dollars in thousands, except per share data) 2018 2017 Non-interest income Deposit service fees $ 208 $ 242 Card fees 1,754 857 Bankruptcy trustee and fiduciary service fees 2,203 — Non-interest income (in-scope of Topic 606) 4,165 1,099 Non-interest income (out-of-scope of Topic 606) 12,378 12,241 Total non-interest income $ 16,543 $ 13,340 |
Schedule of Revisions of Previously Issued Financial Statements | Revisions of Previously Issued Financial Statements for Correction of Immaterial Errors . During the fourth quarter of 2018, the Company identified an immaterial error related to an incorrect calculation of basic and diluted earnings per common share related to unvested nonparticipating restricted stock units. The corrected calculation results in increased basic and diluted earnings per common share in certain periods. In order to correct this immaterial error, the Company revised the basic and diluted earnings per common share for the interim quarters of the fiscal year ended June 30, 2018. The revisions are reflected in the table below. Three Months Ended September 30, 2017 (Dollars in thousands, except per share data) Previously Reported Adjustment Revised Earnings Per Common Share Net income attributable to common stockholders $ 32,306 $ — $ 32,306 Average common shares issued and outstanding 63,626,512 — 63,626,512 Average unvested RSUs 1,418,563 (1,324,470 ) 94,093 Total qualifying shares 65,045,075 (1,324,470 ) 63,720,605 Earnings per common share $ 0.50 $ 0.01 $ 0.51 Diluted Earnings Per Common Share Dilutive net income attributable to common stockholders $ 32,306 $ — $ 32,306 Average common shares issued and outstanding 65,045,075 (1,324,470 ) 63,720,605 Dilutive effect of average unvested RSUs — 471,967 471,967 Total dilutive common shares issued and outstanding 65,045,075 (852,503 ) 64,192,572 Diluted earnings per common share $ 0.50 $ — $ 0.50 During the fourth quarter of 2018, the Company identified an immaterial error related to the classification of proceeds from the sale of loans that were transferred from loans held-for-investment in the condensed consolidated statements of cash flows for the three months ended September 30, 2017 and revised its previously issued financial statements for the three months ended September 30, 2017 to correctly present these activities. There was no change to net change in cash and cash equivalents. The revisions to cash flows from operating and investing activities are reflected in the table below. Three Months Ended (Dollars in thousands) Previously Reported Adjustment Revised Cash Flows From Operating Activities: Proceeds from sale of loans held for sale $ 332,385 $ 81 $ 332,466 Other assets $ 2,114 $ (280 ) $ 1,834 Net cash provided by in operating activities $ 53,103 $ (199 ) $ 52,904 Cash Flows From Investing Activities: Proceeds from sale of loans held for investment $ — $ 199 $ 199 Net cash used in investing activities $ (91,381 ) $ 199 $ (91,182 ) |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis at September 30, 2018 and June 30, 2018 . Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: September 30, 2018 (Dollars in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total ASSETS: Securities—Available-for-Sale: Agency RMBS $ — $ 10,685 $ — $ 10,685 Non-Agency RMBS — — 14,970 14,970 Municipal — 13,011 — 13,011 Asset-backed securities and structured notes — 164,061 — 164,061 Total—Securities—Available-for-Sale $ — $ 187,757 $ 14,970 $ 202,727 Loans Held for Sale $ — $ 30,916 $ — $ 30,916 Mortgage servicing rights $ — $ — $ 11,216 $ 11,216 Other assets—Derivative instruments $ — $ — $ 992 $ 992 LIABILITIES: Other liabilities—Derivative instruments $ — $ — $ — $ — June 30, 2018 (Dollars in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total ASSETS: Securities—Available-for-Sale: Agency RMBS $ — $ 12,926 $ — $ 12,926 Non-Agency RMBS — — 17,443 17,443 Municipal — 20,212 — 20,212 Asset-backed securities and structured notes — 129,724 — 129,724 Total—Securities—Available-for-Sale $ — $ 162,862 $ 17,443 $ 180,305 Loans Held for Sale $ — $ 35,077 $ — $ 35,077 Mortgage servicing rights $ — $ — $ 10,752 $ 10,752 Other assets—Derivative instruments $ — $ — $ 1,321 $ 1,321 LIABILITIES: Other liabilities—Derivative instruments $ — $ — $ 368 $ 368 |
Schedule of Additional Information About Assets Measured at Fair Value on a Recurring Basis and for which the Company has Utilized Level 3 Inputs to Determine Fair Value | The following tables present additional information about assets measured at fair value on a recurring basis and for which the Company has utilized Level 3 inputs to determine fair value: For the Three Months Ended September 30, 2018 (Dollars in thousands) Securities – Available-for-Sale: Non-Agency RMBS Mortgage Servicing Rights Derivative Instruments, net Total Opening Balance $ 17,443 $ 10,752 $ 953 $ 29,148 Total gains or losses for the period: Included in earnings—Sale of securities (133 ) — — (133 ) Included in earnings—Mortgage banking income — (289 ) 39 (250 ) Included in other comprehensive income 442 — — 442 Purchases, issues, sales and settlements: Purchases — 753 — 753 Sales (2,058 ) — — (2,058 ) Settlements (724 ) — — (724 ) Closing balance $ 14,970 $ 11,216 $ 992 $ 27,178 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ (133 ) $ (289 ) $ 39 $ (383 ) For the Three Months Ended September 30, 2017 (Dollars in thousands) Securities – Trading: Collateralized Debt Obligations Securities – Available-for-Sale: Non-Agency RMBS Mortgage Servicing Rights Derivative Instruments, net Total Opening Balance $ 8,327 $ 71,503 $ 7,200 $ 1,026 $ 88,056 Total gains or losses for the period: Included in earnings—Sale of securities 282 — — — 282 Included in earnings—Mortgage banking income — — 281 162 443 Included in other comprehensive income — (1,763 ) — — (1,763 ) Purchases, issues, sales and settlements: Purchases — — 563 — 563 Sales (8,609 ) — — — (8,609 ) Settlements — (2,972 ) — — (2,972 ) Other-than-temporary impairment — (149 ) — — (149 ) Closing balance $ — $ 66,619 $ 8,044 $ 1,188 $ 75,851 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ — $ 281 $ 162 $ 443 |
Schedule of Quantitative Information About Level 3 Fair Value Measurements | The table below summarizes the quantitative information about level 3 fair value measurements as of the dates indicated: September 30, 2018 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Securities – Non-agency RMBS $ 14,970 Discounted Cash Flow Projected Constant Prepayment Rate, 8.8 to 40.3% (12.9%) 1.5 to 12.8% (3.7%) Mortgage Servicing Rights $ 11,216 Discounted Cash Flow Projected Constant Prepayment Rate, 6.2 to 27.8% (9.3%) 2.3 to 9.6 (6.8) Derivative Instruments $ 992 Sales Comparison Approach Projected Sales Profit of Underlying Loans 0.3 to 0.4% (0.3%) June 30, 2018 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Securities – Non-agency RMBS $ 17,443 Discounted Cash Flow Projected Constant Prepayment Rate, 2.5 to 25.8% (14.1%) 1.5 to 10.6% (5.1%) Mortgage Servicing Rights $ 10,752 Discounted Cash Flow Projected Constant Prepayment Rate, 6.0 to 26.6% (9.1%) 2.4 to 9.5 (6.9) Derivative Instruments $ 953 Sales Comparison Approach Projected Sales Profit of Underlying Loans 0.1 to 0.4% (0.3%) September 30, 2018 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Input Range (Weighted Average) 1 Impaired loans and leases: Single family real estate secured: Mortgage $ 28,257 Sales comparison approach Adjustment for differences between the comparable sales -30.9 to 66.7% (5.8%) Home equity $ 16 Sales comparison approach Adjustment for differences between the comparable sales 0.0 to 14.9% (7.4%) Auto and RV secured $ 114 Sales comparison approach Adjustment for differences between the comparable sales -20.0 to 21.9% (7.8%) Commercial and Industrial $ 1,590 Sales comparison approach Adjustment for differences between the comparable sales -33.8 to 0.0% (-16.9%) Other $ 159 Discounted cash flow Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate 0.0 to 0.0% (0.0%) Other real estate owned and foreclosed assets: Single family real estate $ 9,397 Sales comparison approach Adjustment for differences between the comparable sales -14.1 to 27.3% (0.5%) Autos and RVs $ 100 Sales comparison approach Adjustment for differences between the comparable sales -33.9 to 60.5% (5.5%) 1 For impaired loans, other real estate owned and foreclosed assets the ranges shown may vary positively or negatively based on the comparable sales reported in the current appraisal. In certain instances, the range can be significant due to small sample sizes and in some cases the property being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted. June 30, 2018 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Input Range (Weighted Average) 1 Impaired loans and leases: Single family real estate secured: Mortgage $ 28,446 Sales comparison approach Adjustment for differences between the comparable sales -48.8 to 66.7% (2.3%) Home equity $ 16 Sales comparison approach Adjustment for differences between the comparable sales 0.0 to 14.9% (7.4%) Multifamily real estate secured $ 232 Sales comparison approach and income approach Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, capitalization rate -15.5 to 46.4% (15.4%) Auto and RV secured $ 60 Sales comparison approach Adjustment for differences between the comparable sales -2.0 to 71.5% (24.0%) Commercial and Industrial $ 2,361 Sales comparison approach Adjustment for differences between the comparable sales -33.8 to 0.0% (-16.9%) Other $ 111 Discounted cash flow Projected Constant Prepayment Rate, 0.0 to 0.0% (0.0%) 0.0 to 10.0% (5.0%) 100.0 to 100.0% (100.0%) -1.0 to 2.5% (0.8%) Other real estate owned and foreclosed assets: Single family real estate $ 9,385 Sales comparison approach Adjustment for differences between the comparable sales -14.1 to 27.3% (0.5%) Autos and RVs $ 206 Sales comparison approach Adjustment for differences between the comparable sales -33.9 to 60.5% (7.9%) 1 For impaired loans, other real estate owned and foreclosed assets the ranges shown may vary positively or negatively based on the comparable sales reported in the current appraisal. In certain instances, the range can be significant due to small sample sizes and in some cases the property being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted. |
Schedule of Fair Value Assets Measured on Nonrecurring Basis | The table below summarizes assets measured for impairment on a non-recurring basis: September 30, 2018 (Dollars in thousands) Quoted Prices in Significant Other Significant Balance Impaired Loans and Leases: Single family real estate secured: Mortgage $ — $ — $ 28,257 $ 28,257 Home equity — — 16 16 Auto and RV secured — — 114 114 Commercial & Industrial — — 1,590 1,590 Other — — 159 159 Total $ — $ — $ 30,136 $ 30,136 Other real estate owned and foreclosed assets: Single family real estate $ — $ — $ 9,397 $ 9,397 Autos and RVs — — 100 100 Total $ — $ — $ 9,497 $ 9,497 June 30, 2018 (Dollars in thousands) Quoted Prices in Significant Other Significant Balance Impaired Loans and Leases: Single family real estate secured: Mortgage $ — $ — $ 28,446 $ 28,446 Home equity — — 16 16 Multifamily real estate secured — — 232 232 Auto and RV secured — — 60 60 Commercial & Industrial — — 2,361 2,361 Other — — 111 111 Total $ — $ — $ 31,226 $ 31,226 Other real estate owned and foreclosed assets: Single family real estate $ — $ — $ 9,385 $ 9,385 Autos and RVs — — 206 206 Total $ — $ — $ 9,591 $ 9,591 |
Schedule of Aggregate Fair Value, Contractual Balance, and Gains of Loans Held For Sale | As of September 30, 2018 and June 30, 2018 , the aggregate fair value of loans held for sale, carried at fair value, contractual balance (including accrued interest), and gain was as follows: (Dollars in thousands) September 30, 2018 June 30, 2018 Aggregate fair value $ 30,916 $ 35,077 Contractual balance 30,372 34,415 Gain $ 544 $ 662 The total amount of gains and losses from changes in fair value included in earnings for the period indicated below for loans held for sale were: For the Three Months Ended September 30, (Dollars in thousands) 2018 2017 Interest income $ 314 $ 147 Change in fair value (81 ) (201 ) Total $ 233 $ (54 ) |
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments at Period-end | The carrying amounts and estimated fair values of financial instruments at September 30, 2018 and June 30, 2018 were as follows: September 30, 2018 Fair Value (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 533,969 $ 533,969 $ — $ — $ 533,969 Securities available-for-sale 202,727 — 187,757 14,970 202,727 Loans held for sale, at fair value 30,916 — 30,916 — 30,916 Loans held for sale, at lower of cost or fair value 6,078 — — 7,631 7,631 Loans and leases held for investment—net 8,654,500 — — 8,706,788 8,706,788 Accrued interest receivable 35,951 — — 35,951 35,951 Mortgage servicing rights 11,216 — — 11,216 11,216 Financial liabilities: Total deposits 6,077,588 — 5,731,313 — 5,731,313 Advances from the Federal Home Loan Bank 2,580,000 — 2,575,696 — 2,575,696 Subordinated notes and debentures 54,588 — 51,308 — 51,308 Accrued interest payable 2,353 — 2,353 — 2,353 June 30, 2018 Fair Value (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 622,850 $ 622,850 $ — $ — $ 622,850 Securities available-for-sale 180,305 — 162,862 17,443 180,305 Loans held for sale, at fair value 35,077 — 35,077 — 35,077 Loans held for sale, at lower of cost or fair value 2,686 — — 2,734 2,734 Loans and leases held for investment—net 8,432,289 — — 8,466,494 8,466,494 Accrued interest receivable 26,729 — — 26,729 26,729 Mortgage servicing rights 10,752 — — 10,752 10,752 Financial liabilities: Total deposits 7,985,350 — 7,584,928 — 7,584,928 Advances from the Federal Home Loan Bank 457,000 — 453,326 — 453,326 Subordinated notes and debentures 54,552 — 51,693 — 51,693 Accrued interest payable 1,753 — 1,753 — 1,753 |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost, Carrying Amount and Fair Value of Available-for-sale Securities | The amortized cost, carrying amount and fair value for the available-for-sale securities at September 30, 2018 and June 30, 2018 were: September 30, 2018 Available-for-sale (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mortgage-backed securities (RMBS): U.S. agencies 1 $ 10,959 $ 79 $ (353 ) $ 10,685 Non-agency 2 16,603 85 (1,718 ) 14,970 Total mortgage-backed securities 27,562 164 (2,071 ) 25,655 Non-RMBS: Municipal 13,865 1 (855 ) 13,011 Asset-backed securities and structured notes 161,700 2,450 (89 ) 164,061 Total Non-RMBS 175,565 2,451 (944 ) 177,072 Total debt securities $ 203,127 $ 2,615 $ (3,015 ) $ 202,727 June 30, 2018 Available-for-sale (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mortgage-backed securities (RMBS): U.S. agencies 1 $ 13,102 $ 152 $ (328 ) $ 12,926 Non-agency 2 19,384 116 (2,057 ) 17,443 Total mortgage-backed securities 32,486 268 (2,385 ) 30,369 Non-RMBS: Municipal 20,953 2 (743 ) 20,212 Asset-backed securities and structured notes 127,558 2,267 (101 ) 129,724 Total Non-RMBS 148,511 2,269 (844 ) 149,936 Total debt securities $ 180,997 $ 2,537 $ (3,229 ) $ 180,305 1 U.S. government-backed or government sponsored enterprises including Fannie Mae, Freddie Mac and Ginnie Mae. 2 Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option ARM mortgages. |
Schedule of Available-for-sale Securities in Unrealized Loss Position | The securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows: September 30, 2018 Available-for-sale securities in loss position for Less Than 12 Months More Than 12 Months Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses RMBS: U.S. agencies $ 2,182 $ (5 ) $ 5,124 $ (348 ) $ 7,306 $ (353 ) Non-agency 35 (1 ) 13,595 (1,716 ) 13,630 (1,717 ) Total RMBS securities 2,217 (6 ) 18,719 (2,064 ) 20,936 (2,070 ) Non-RMBS: Municipal debt 1,725 (24 ) 11,230 (831 ) 12,955 (855 ) Asset-backed securities and structured notes 8,389 (30 ) 5,255 (60 ) 13,644 (90 ) Total Non-RMBS 10,114 (54 ) 16,485 (891 ) 26,599 (945 ) Total debt securities $ 12,331 $ (60 ) $ 35,204 $ (2,955 ) $ 47,535 $ (3,015 ) June 30, 2018 Available-for-sale securities in loss position for Less Than 12 Months More Than 12 Months Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses RMBS: U.S. agencies $ 12 $ (1 ) $ 6,825 $ (327 ) $ 6,837 $ (328 ) Non-agency 36 (1 ) 15,867 (2,056 ) 15,903 (2,057 ) Total RMBS securities 48 (2 ) 22,692 (2,383 ) 22,740 (2,385 ) Non-RMBS: Municipal debt 1,740 (17 ) 12,326 (726 ) 14,066 (743 ) Asset-backed securities and structured notes 9,489 (30 ) 6,163 (71 ) 15,652 (101 ) Total Non-RMBS 11,229 (47 ) 18,489 (797 ) 29,718 (844 ) Total debt securities $ 11,277 $ (49 ) $ 41,181 $ (3,180 ) $ 52,458 $ (3,229 ) |
Schedule of Credit Losses Recognized on Available-for-sale Securities | The following table summarizes amounts of anticipated credit loss recognized in the income statement through other-than-temporary impairment charges, which reduced non-interest income: For the Three Months Ended September 30, (Dollars in thousands) 2018 2017 Beginning balance $ — $ (15,528 ) Additions for the amounts related to the credit loss for which an other-than-temporary impairment was not previously recognized — — Increases to the amount related to the credit loss for which other-than-temporary impairment was previously recognized — (149 ) Credit losses realized for securities sold — — Ending balance $ — $ (15,677 ) |
Schedule of Realized Gains and Losses on Available-for-sale Securities | The gross gains and losses realized through earnings upon the sale of available-for-sale securities were as follows: For the Three Months Ended September 30, (Dollars in thousands) 2018 2017 Proceeds $ 1,926 $ — Gross realized gains — — Gross realized losses (133 ) — Net realized gain (loss) on securities $ (133 ) $ — |
Schedule of Unrealized Gain (Loss) on Investments on Available-for-sale Securities | The Company had recorded unrealized gains and unrealized losses in accumulated other comprehensive loss as follows: (Dollars in thousands) September 30, June 30, Available-for-sale debt securities—net unrealized gains (losses) $ (400 ) $ (692 ) Available-for-sale debt securities—non-credit related losses — — Held-to-maturity debt securities—non-credit related losses — — Subtotal (400 ) (692 ) Tax (expense) benefit (7 ) 79 Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss) $ (407 ) $ (613 ) |
Schedule of Contractual Maturities of Available-for-sale Securities | The expected maturity distribution of the Company’s mortgage-backed securities and the contractual maturity distribution of the Company’s Non-RMBS securities classified as available-for-sale and held-to-maturity were: September 30, 2018 Available for sale (Dollars in thousands) Amortized Cost Fair Value RMBS—U.S. agencies 1 : Due within one year $ 1,253 $ 1,216 Due one to five years 3,679 3,576 Due five to ten years 2,770 2,706 Due after ten years 3,257 3,187 Total RMBS—U.S. agencies 1 10,959 10,685 RMBS—Non-agency: Due within one year 2,603 2,388 Due one to five years 7,700 6,981 Due five to ten years 4,822 4,292 Due after ten years 1,478 1,309 Total RMBS—Non-agency 16,603 14,970 Non-RMBS: Due within one year 67,214 68,093 Due one to five years 95,513 96,992 Due five to ten years 8,312 7,798 Due after ten years 4,526 4,189 Total Non-RMBS 175,565 177,072 Total $ 203,127 $ 202,727 1 |
LOANS, LEASES & ALLOWANCE FOR_2
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Composition of the Loan and Lease Portfolio | The following table sets forth the composition of the loan and lease portfolio as of the dates indicated: (Dollars in thousands) September 30, 2018 June 30, 2018 Single family real estate secured: Mortgage $ 4,265,909 $ 4,198,941 Home equity 2,436 2,306 Warehouse and other 1 374,317 412,085 Multifamily real estate secured 1,836,784 1,800,919 Commercial real estate secured 243,040 220,379 Auto and RV secured 236,978 213,522 Factoring 96,929 169,885 Commercial & Industrial 1,640,017 1,481,051 Other 21,048 18,598 Total gross loans and leases 8,717,458 8,517,686 Allowance for loan and lease losses (50,120 ) (49,151 ) Unaccreted discounts and loan and lease fees (12,838 ) (36,246 ) Total net loans and leases $ 8,654,500 $ 8,432,289 1 The balance of single family warehouse loans was $156,610 at September 30, 2018 and $175,508 at June 30, 2018 . The remainder of the balance was attributable to commercial specialty and lender finance loans secured by single family real estate. |
Schedule of Activity in the Allowance for Loan and Lease Losses by Portfolio Class | The following tables summarize activity in the allowance for loan and lease losses by portfolio classes for the periods indicated: For the Three Months Ended September 30, 2018 Single Family Real Estate Secured (Dollars in thousands) Mortgage Home Equity Warehouse & Other Multifamily Real Estate Secured Commercial Real Estate Secured Auto and RV Secured Factoring Commercial & Industrial Other Total Balance at July 1, 2018 $ 20,368 $ 14 $ 2,080 $ 5,010 $ 849 $ 3,178 $ 445 $ 16,238 $ 969 $ 49,151 Provision for loan and lease losses 933 (3 ) (151 ) (193 ) 6 622 (123 ) 131 (622 ) 600 Charge-offs (1 ) — — — — (233 ) — (600 ) (391 ) (1,225 ) Recoveries 395 3 — 109 — 48 — — 1,039 1,594 Balance at September 30, 2018 $ 21,695 $ 14 $ 1,929 $ 4,926 $ 855 $ 3,615 $ 322 $ 15,769 $ 995 $ 50,120 For the Three Months Ended September 30, 2017 Single Family Real Estate Secured (Dollars in thousands) Mortgage Home Equity Warehouse & Other Multifamily Real Estate Secured Commercial Real Estate Secured Auto and RV Secured Factoring Commercial & Industrial Other Total Balance at July 1, 2017 $ 19,972 $ 19 $ 2,298 $ 4,638 $ 1,008 $ 2,379 $ 401 $ 9,881 $ 236 $ 40,832 Provision for loan and lease losses (76 ) (2 ) 834 200 (94 ) 625 61 (267 ) (281 ) 1,000 Charge-offs (85 ) — — — — (148 ) — — (1 ) (234 ) Recoveries 4 3 — — — 102 — — 392 501 Balance at September 30, 2017 $ 19,815 $ 20 $ 3,132 $ 4,838 $ 914 $ 2,958 $ 462 $ 9,614 $ 346 $ 42,099 |
Schedule of Loans and Leases Evaluated for Impairment by Portfolio Class | The following tables present our loans and leases evaluated individually for impairment by portfolio class: September 30, 2018 (Dollars in thousands) Unpaid Principal Balance Principal Balance Adjustment 1 Recorded Investment Accrued Interest / Origination Fees Total Related Allocation of General Allowance Related Allocation of Specific Allowance With no related allowance recorded: Single family real estate secured: Mortgage: In-house originated $ 1,583 $ 953 $ 630 $ 94 $ 724 $ — $ — Purchased 2,387 1,151 1,236 — 1,236 — — Auto and RV secured: In-house originated 354 275 79 2 81 — — Commercial and Industrial: In-house originated 2,190 600 1,590 — 1,590 — — With an allowance recorded: Single family real estate secured: Mortgage: In-house originated 25,058 117 24,941 179 25,120 203 — Purchased 1,399 (49 ) 1,448 83 1,531 14 — Home equity: In-house originated 16 — 16 — 16 1 — Auto and RV secured: In-house originated 35 — 35 — 35 4 — Other 159 — 159 — 159 6 — Total $ 33,181 $ 3,047 $ 30,134 $ 358 $ 30,492 $ 228 $ — As a % of total gross loans and leases 0.38 % 0.03 % 0.35 % — % 0.35 % — % — % June 30, 2018 (Dollars in thousands) Unpaid Principal Balance Principal Balance Adjustment 1 Recorded Investment Accrued Interest / Origination Fees Total Related Allocation of General Allowance Related Allocation of Specific Allowance With no related allowance recorded: Single family real estate secured: Mortgage: In-house originated $ 1,584 $ 951 $ 633 $ 78 $ 711 $ — $ — Purchased 3,598 1,739 1,859 — 1,859 — — Multifamily real estate secured: Purchased 480 248 232 — 232 — — Auto and RV secured: In-house originated 369 309 60 2 62 — — With an allowance recorded: Single family real estate secured: Mortgage: In-house originated 24,607 47 24,560 — 24,560 247 — Purchased 1,394 — 1,394 21 1,415 14 — Home equity: In-house originated 16 — 16 — 16 1 — Commercial & Industrial 172 — 172 — 172 9 — Other 111 — 111 — 111 7 — Total $ 32,331 $ 3,294 $ 29,037 $ 101 $ 29,138 $ 278 $ — As a % of total gross loans and leases 0.38 % 0.04 % 0.34 % — % 0.34 % — % — % 1 |
Schedule of Balance in the Allowance for Loan and Lease Losses and Recorded Investments by Portfolio Segment | The following tables present the balance in the allowance for loan and lease losses and the recorded investment in loans and leases by portfolio segment and based on impairment evaluation method: September 30, 2018 Single Family Real Estate Secured (Dollars in thousands) Mortgage Home Warehouse and other Multifamily real estate secured Commercial real estate secured Auto and RV secured Factoring Commercial & Industrial Other Total Allowance for loan and lease losses: Ending allowance balance attributable to loans and leases: Individually evaluated for impairment – general allowance $ 217 $ 1 $ — $ — $ — $ 4 $ — $ — $ 6 $ 228 Individually evaluated for impairment – specific allowance — — — — — — — — — — Collectively evaluated for impairment 21,478 13 1,929 4,926 855 3,611 322 15,769 989 49,892 Total ending allowance balance $ 21,695 $ 14 $ 1,929 $ 4,926 $ 855 $ 3,615 $ 322 $ 15,769 $ 995 $ 50,120 Loans and leases: Loans and leases individually evaluated for impairment 1 $ 28,255 $ 16 $ — $ — $ — $ 114 $ — $ 1,590 $ 159 $ 30,134 Loans and leases collectively evaluated for impairment 4,237,654 2,420 374,317 1,836,784 243,040 236,864 96,929 1,638,427 20,889 8,687,324 Principal loan and lease balance 4,265,909 2,436 374,317 1,836,784 243,040 236,978 96,929 1,640,017 21,048 8,717,458 Unaccreted discounts and loan and lease fees 8,765 48 (521 ) 5,341 822 2,185 (24,166 ) (4,392 ) (920 ) (12,838 ) Total recorded investment in loans and leases $ 4,274,674 $ 2,484 $ 373,796 $ 1,842,125 $ 243,862 $ 239,163 $ 72,763 $ 1,635,625 $ 20,128 $ 8,704,620 1 Loans and leases evaluated for impairment include Troubled Debt Restructurings (“TDRs”) that have been performing for more than six months . June 30, 2018 Single Family Real Estate Secured (Dollars in thousands) Mortgage Home Warehouse and other Multifamily real estate secured Commercial real estate Auto and RV secured Factoring Commercial & Industrial Other Total Allowance for loan and lease losses: Ending allowance balance attributable to loans and leases: Individually evaluated for impairment – general allowance $ 261 $ 1 $ — $ — $ — $ — $ — $ 9 $ 7 $ 278 Individually evaluated for impairment – specific allowance — — — — — — — — — — Collectively evaluated for impairment 20,107 13 2,080 5,010 849 3,178 445 16,229 962 48,873 Total ending allowance balance $ 20,368 $ 14 $ 2,080 $ 5,010 $ 849 $ 3,178 $ 445 $ 16,238 $ 969 $ 49,151 Loans and leases: Loans and leases individually evaluated for impairment 1 $ 28,446 $ 16 $ — $ 232 $ — $ 60 $ — $ 172 $ 111 $ 29,037 Loans and leases collectively evaluated for impairment 4,170,495 2,290 412,085 1,800,687 220,379 213,462 169,885 1,480,879 18,487 8,488,649 Principal loan and lease balance 4,198,941 2,306 412,085 1,800,919 220,379 213,522 169,885 1,481,051 18,598 8,517,686 Unaccreted discounts and loan and lease fees 9,187 48 (706 ) 5,063 836 2,065 (48,039 ) (3,884 ) (816 ) (36,246 ) Total recorded investment in loans and leases $ 4,208,128 $ 2,354 $ 411,379 $ 1,805,982 $ 221,215 $ 215,587 $ 121,846 $ 1,477,167 $ 17,782 $ 8,481,440 1 Loans and leases evaluated for impairment include TDRs that have been performing for more than six months |
Schedule of Nonaccrual Loans and Leases | Nonaccrual loans and leases consisted of the following as of the dates indicated: (Dollars in thousands) September 30, June 30, Single Family Real Estate Secured: Mortgage: In-house originated $ 25,572 $ 25,193 Purchased 2,685 3,253 Home Equity: In-house originated 16 16 Multifamily Real Estate Secured: Purchased — 232 Total nonaccrual loans secured by real estate 28,273 28,694 Auto and RV Secured 114 60 Commercial & Industrial 1,590 2,361 Other 159 111 Total nonaccrual loans and leases $ 30,136 $ 31,226 Nonaccrual loans and leases to total loans and leases 0.35 % 0.37 % |
Schedule of Outstanding Principal Balance on Loans and Leases Performing and Nonaccrual | The following tables present the outstanding unpaid balance of loans and leases that are performing and nonaccrual by portfolio class: September 30, 2018 Single Family Real Estate Secured (Dollars in thousands) Mortgage Home Warehouse & other Multifamily real estate secured Commercial real estate secured Auto and RV secured Factoring Commercial & Industrial Other Total Performing $ 4,237,652 $ 2,420 $ 374,317 $ 1,836,784 $ 243,040 $ 236,864 $ 96,929 $ 1,638,427 $ 20,889 $ 8,687,322 Nonaccrual 28,257 16 — — — 114 — 1,590 159 30,136 Total $ 4,265,909 $ 2,436 $ 374,317 $ 1,836,784 $ 243,040 $ 236,978 $ 96,929 $ 1,640,017 $ 21,048 $ 8,717,458 June 30, 2018 Single Family Real Estate Secured (Dollars in thousands) Mortgage Home Warehouse & other Multifamily real estate secured Commercial real estate secured Auto and RV secured Factoring Commercial & Industrial Other Total Performing $ 4,170,495 $ 2,290 $ 412,085 $ 1,800,687 $ 220,379 $ 213,462 $ 169,885 $ 1,478,690 $ 18,487 $ 8,486,460 Nonaccrual 28,446 16 — 232 — 60 — 2,361 111 31,226 Total $ 4,198,941 $ 2,306 $ 412,085 $ 1,800,919 $ 220,379 $ 213,522 $ 169,885 $ 1,481,051 $ 18,598 $ 8,517,686 |
Schedule of Composition of Loan and Lease Portfolio by Credit Quality Indicators | The following table presents the composition of the Company’s loan and lease portfolio by credit quality indicators: September 30, 2018 (Dollars in thousands) Pass Special Substandard Doubtful Total Single family real estate secured: Mortgage In-house originated $ 4,181,652 $ 20,376 $ 27,600 $ — $ 4,229,628 Purchased 32,964 572 2,745 — 36,281 Home equity In-house originated 2,420 — 16 — 2,436 Warehouse and other In-house originated 374,317 — — — 374,317 Multifamily real estate secured In-house originated 1,773,029 1,442 — — 1,774,471 Purchased 61,348 — 965 — 62,313 Commercial real estate secured In-house originated 234,954 — — — 234,954 Purchased 8,086 — — — 8,086 Auto and RV secured In-house originated 236,728 43 207 — 236,978 Factoring 96,929 — — — 96,929 Commercial & Industrial 1,545,273 92,902 1,842 — 1,640,017 Other 20,699 189 160 — 21,048 Total $ 8,568,399 $ 115,524 $ 33,535 $ — $ 8,717,458 As a % of total gross loans and leases 98.3 % 1.3 % 0.4 % — % 100.0 % June 30, 2018 (Dollars in thousands) Pass Special Substandard Doubtful Total Single family real estate secured: Mortgage In-house originated $ 4,113,537 $ 19,403 $ 26,264 $ — $ 4,159,204 Purchased 36,024 461 3,252 — 39,737 Home equity In-house originated 2,290 — 16 — 2,306 Warehouse and other In-house originated 412,085 — — — 412,085 Multifamily real estate secured In-house originated 1,731,068 3,983 — — 1,735,051 Purchased 64,663 — 1,205 — 65,868 Commercial real estate secured In-house originated 212,235 — — — 212,235 Purchased 6,226 1,918 — — 8,144 Auto and RV secured In-house originated 213,455 — 67 — 213,522 Factoring 169,885 — — — 169,885 Commercial & Industrial 1,471,433 5,460 1,969 2,189 1,481,051 Other 18,369 118 111 — 18,598 Total $ 8,451,270 $ 31,343 $ 32,884 $ 2,189 $ 8,517,686 As a % of total gross loans and leases 99.2 % 0.4 % 0.4 % — % 100.0 % |
Schedule of Past Due Loan and Leases | The following table provides the outstanding unpaid balance of loans and leases that are past due 30 days or more by portfolio class as of the period indicated: September 30, 2018 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Single family real estate secured: Mortgage In-house originated $ 12,054 $ 9,240 $ 18,372 $ 39,666 Purchased 835 641 915 2,391 Home equity In-house originated — — 16 16 Multifamily real estate secured In-house originated 1,136 — — 1,136 Auto and RV secured 400 49 50 499 Commercial & Industrial 252 — 1,590 1,842 Other 204 189 159 552 Total $ 14,881 $ 10,119 $ 21,102 $ 46,102 As a % of total gross loans and leases 0.17 % 0.12 % 0.24 % 0.53 % June 30, 2018 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Single family real estate secured: Mortgage In-house originated $ 7,830 $ 3,240 $ 22,009 $ 33,079 Purchased 354 105 1,183 1,642 Home equity In-house originated — — 16 16 Multifamily real estate secured In-house originated 410 — — 410 Auto and RV secured In-house originated 284 22 9 315 Commercial & Industrial 300 — 2,362 2,662 Other 79 111 111 301 Total $ 9,257 $ 3,478 $ 25,690 $ 38,425 As a % of total gross loans and leases 0.11 % 0.04 % 0.30 % 0.45 % |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Company's Acquired Intangible Assets | The Company’s acquired intangible assets are summarized as follows as of the dates indicated: September 30, 2018 June 30, 2018 (Dollars in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Covenant not to compete $ 930 $ 116 $ 814 $ 930 $ 58 $ 872 Customer relationships 9,820 485 9,335 9,820 243 9,577 Developed technologies 21,680 652 21,028 21,680 326 21,354 Trade name 290 48 242 290 24 266 Total intangible assets $ 32,720 $ 1,301 $ 31,419 $ 32,720 $ 651 $ 32,069 |
EQUITY AND STOCK-BASED COMPEN_2
EQUITY AND STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Unrecognized Compensation Expense Related to Non-vested Awards To be Recognized in the Future | At September 30, 2018 , unrecognized compensation expense related to non-vested awards aggregated to $43,615 and is expected to be recognized in future periods as follows: (Dollars in thousands) Stock Award Compensation Expense For the fiscal year remainder: 2019 $ 15,017 2020 14,925 2021 8,536 2022 2,589 2023 1,382 Thereafter 1,166 Total $ 43,615 |
Schedule of Status and Changes in Restricted Stock Grants | The following table presents the status and changes in restricted stock units for the periods indicated: Restricted Stock Units Weighted-Average Grant-Date Fair Value Non-vested balance at June 30, 2017 1,240,322 $ 22.52 Granted 747,022 26.53 Vested (629,755 ) 22.55 Canceled (123,858 ) 23.38 Non-vested balance at June 30, 2018 1,233,731 $ 24.84 Granted 733,995 37.09 Vested (247,582 ) 23.32 Canceled (25,188 ) 28.05 Non-vested balance at September 30, 2018 1,694,956 $ 30.32 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted EPS | The following table presents the calculation of basic and diluted EPS: Three Months Ended September 30, (Dollars in thousands, except per share data) 2018 2017 Earnings Per Common Share Net income $ 36,841 $ 32,383 Preferred stock dividends (77 ) (77 ) Net income attributable to common shareholders $ 36,764 $ 32,306 Average common shares outstanding 62,795,598 63,626,512 Average unvested RSUs (as revised for 2017) — 94,093 Total qualifying shares (as revised for 2017) 62,795,598 63,720,605 Earnings per common share (as revised for 2017) $ 0.59 $ 0.51 Diluted Earnings Per Common Share Dilutive net income attributable to common shareholders $ 36,764 $ 32,306 Average common shares issued and outstanding (as revised for 2017) 62,795,598 63,720,605 Dilutive effect of average unvested RSUs (as revised for 2017) 561,438 471,967 Total dilutive common shares outstanding (as revised for 2017) 63,357,036 64,192,572 Diluted earnings per common share (as revised for 2017) $ 0.58 $ 0.50 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - NARRATIVE (Details) | 3 Months Ended |
Sep. 30, 2018 | |
H&R Block Bank Deposits | Emerald Advance | |
Business Acquisition [Line Items] | |
Interest income and fees retainer percentage | 10.00% |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - NON-INTEREST INCOME SEGREGATED BY REVENUE STREAMS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Non-interest income (in-scope of Topic 606) | $ 4,165 | $ 1,099 |
Non-interest income (out-of-scope of Topic 606) | 12,378 | 12,241 |
Total non-interest income | 16,543 | 13,340 |
Deposit service fees | ||
Disaggregation of Revenue [Line Items] | ||
Non-interest income (in-scope of Topic 606) | 208 | 242 |
Card fees | ||
Disaggregation of Revenue [Line Items] | ||
Non-interest income (in-scope of Topic 606) | 1,754 | 857 |
Bankruptcy trustee and fiduciary service fees | ||
Disaggregation of Revenue [Line Items] | ||
Non-interest income (in-scope of Topic 606) | $ 2,203 | $ 0 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - REVISIONS OF CALCULATIONS OF BASIC AND DILUTED EARNIGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Common Share | ||
Net income attributable to common shareholders | $ 36,764 | $ 32,306 |
Average common shares issued and outstanding (in shares) | 62,795,598 | 63,626,512 |
Average unvested RSUs (in shares) | 0 | 94,093 |
Total qualifying shares (in shares) | 62,795,598 | 63,720,605 |
Basic earnings per common share (in dollars per share) | $ 0.59 | $ 0.51 |
Diluted Earnings Per Common Share | ||
Dilutive net income attributable to common shareholders | $ 36,764 | $ 32,306 |
Average common shares issued and outstanding (in shares) | 62,795,598 | 63,720,605 |
Total dilutive common shares outstanding (in shares) | 63,357,036 | 64,192,572 |
Diluted earnings per common share (in dollars per share) | $ 0.58 | $ 0.50 |
RSUs | ||
Diluted Earnings Per Common Share | ||
Dilutive effect of average unvested RSUs (in shares) | 561,438 | 471,967 |
Previously Reported | ||
Earnings Per Common Share | ||
Net income attributable to common shareholders | $ 32,306 | |
Average common shares issued and outstanding (in shares) | 63,626,512 | |
Average unvested RSUs (in shares) | 1,418,563 | |
Total qualifying shares (in shares) | 65,045,075 | |
Basic earnings per common share (in dollars per share) | $ 0.50 | |
Diluted Earnings Per Common Share | ||
Dilutive net income attributable to common shareholders | $ 32,306 | |
Average common shares issued and outstanding (in shares) | 65,045,075 | |
Total dilutive common shares outstanding (in shares) | 65,045,075 | |
Diluted earnings per common share (in dollars per share) | $ 0.50 | |
Previously Reported | RSUs | ||
Diluted Earnings Per Common Share | ||
Dilutive effect of average unvested RSUs (in shares) | 0 | |
Adjustment | ||
Earnings Per Common Share | ||
Net income attributable to common shareholders | $ 0 | |
Average common shares issued and outstanding (in shares) | 0 | |
Average unvested RSUs (in shares) | (1,324,470) | |
Total qualifying shares (in shares) | (1,324,470) | |
Basic earnings per common share (in dollars per share) | $ 0.01 | |
Diluted Earnings Per Common Share | ||
Dilutive net income attributable to common shareholders | $ 0 | |
Average common shares issued and outstanding (in shares) | (1,324,470) | |
Total dilutive common shares outstanding (in shares) | (852,503) | |
Diluted earnings per common share (in dollars per share) | $ 0 | |
Adjustment | RSUs | ||
Diluted Earnings Per Common Share | ||
Dilutive effect of average unvested RSUs (in shares) | 471,967 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - REVISIONS OF CLASSIFICATIONS OF PROCEEDS OF LOANS HELD FOR SALE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows From Operating Activities: | ||
Proceeds from sale of loans held for sale | $ 307,062 | $ 332,466 |
Other assets | 9,225 | 1,834 |
Net cash provided by in operating activities | 43,529 | 52,904 |
Cash Flows From Investing Activities: | ||
Proceeds from sale of loans held for investment | 199 | |
Net cash used in investing activities | $ (343,484) | (91,182) |
Previously Reported | ||
Cash Flows From Operating Activities: | ||
Proceeds from sale of loans held for sale | 332,385 | |
Other assets | 2,114 | |
Net cash provided by in operating activities | 53,103 | |
Cash Flows From Investing Activities: | ||
Proceeds from sale of loans held for investment | 0 | |
Net cash used in investing activities | (91,381) | |
Adjustment | Immaterial Error Correction | ||
Cash Flows From Operating Activities: | ||
Proceeds from sale of loans held for sale | 81 | |
Other assets | (280) | |
Net cash provided by in operating activities | (199) | |
Cash Flows From Investing Activities: | ||
Proceeds from sale of loans held for investment | 199 | |
Net cash used in investing activities | $ 199 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) customer in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2018USD ($)acquisition | Jun. 30, 2018acquisition | Nov. 30, 2018USD ($) | Oct. 01, 2018customerbroker-dealer | Apr. 04, 2018USD ($)state | |
Business Acquisition [Line Items] | |||||
Number of completed acquisitions | acquisition | 1 | ||||
Number of planned acquisitions | acquisition | 2 | ||||
Nationwide | Scenario, Forecast | |||||
Business Acquisition [Line Items] | |||||
Deposit accounts acquired | $ 3,000,000,000 | ||||
Checking, savings and money market accounts acquired | 1,000,000,000 | ||||
Time deposit accounts acquired | $ 2,000,000,000 | ||||
COR Clearing | Subsequent Event | Scenario, Forecast | Subsidiary | Axos Clearing, LLC | |||||
Business Acquisition [Line Items] | |||||
Number of introducing broker-dealers | broker-dealer | 60 | ||||
Number of customers | customer | 90 | ||||
EPIC | |||||
Business Acquisition [Line Items] | |||||
Number of states in which the entity operates | state | 50 | ||||
Deposit accounts acquired | $ 0 | ||||
Adjustment to goodwill | $ 2,000 |
FAIR VALUE - NARRATIVE (Details
FAIR VALUE - NARRATIVE (Details) $ in Thousands | 3 Months Ended | |||
Sep. 30, 2018USD ($) | Aug. 31, 2018 | Jun. 30, 2018USD ($) | Oct. 31, 2009 | |
Nonrecurring | ||||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||||
Impaired loans, carrying amount | $ 30,136 | $ 31,226 | ||
Related allowance on impaired loans | 228 | |||
Other real estate owned and foreclosed assets, fair value | 9,497 | 9,591 | ||
Nonrecurring | Level 3 | ||||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||||
Impaired loans, carrying amount | 30,136 | 31,226 | ||
Other real estate owned and foreclosed assets, fair value | $ 9,497 | $ 9,591 | ||
Non-agency | Level 3 | ||||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||||
Unemployment rate | 3.90% | 10.00% | ||
Non-agency | Discounted Cash Flow | Minimum | Projected Loss Severity | Level 3 | ||||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||||
Available-for-sale securities, measurement input | 0.400 | |||
Non-agency | Discounted Cash Flow | Minimum | Projected Constant Default Rate | Level 3 | ||||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||||
Available-for-sale securities, measurement input | 0.015 | |||
Non-agency | Discounted Cash Flow | Minimum | Discount Rate | ||||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||||
Available-for-sale securities, measurement input | 2.63 | |||
Non-agency | Discounted Cash Flow | Maximum | Projected Loss Severity | Level 3 | ||||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||||
Available-for-sale securities, measurement input | 0.680 | |||
Non-agency | Discounted Cash Flow | Maximum | Projected Constant Default Rate | Level 3 | ||||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||||
Available-for-sale securities, measurement input | 0.128 | |||
Non-agency | Discounted Cash Flow | Maximum | Discount Rate | ||||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||||
Available-for-sale securities, measurement input | 6.41 | |||
Nonperforming | Nonrecurring | ||||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||||
Impaired loans, charge-offs | $ 654 | |||
Impaired loans, life to date charge-offs | 2,273 | |||
Impaired loans, life to date payments applied to principal | 774 | |||
Impaired loans, life to date principal balance adjustments for allowance write-downs | 3,047 | |||
Other real estate owned | Nonrecurring | ||||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||||
Impaired loans, charge-offs | $ 4 |
FAIR VALUE - ASSETS AND LIABILI
FAIR VALUE - ASSETS AND LIABILITIES MEASURED ON RECURRING BASIS (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
ASSETS: | ||
Loans held for sale, at fair value | $ 30,916 | $ 35,077 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
ASSETS: | ||
Loans held for sale, at fair value | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
ASSETS: | ||
Loans held for sale, at fair value | 30,916 | 35,077 |
Mortgage servicing rights | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
ASSETS: | ||
Loans held for sale, at fair value | 0 | 0 |
Mortgage servicing rights | 11,216 | 10,752 |
Recurring | ||
ASSETS: | ||
Securities available-for-sale | 202,727 | 180,305 |
Loans held for sale, at fair value | 30,916 | 35,077 |
Mortgage servicing rights | 11,216 | 10,752 |
Other assets—Derivative instruments | 992 | 1,321 |
Financial liabilities: | ||
Other liabilities—Derivative instruments | 0 | 368 |
Recurring | Agency RMBS | ||
ASSETS: | ||
Securities available-for-sale | 10,685 | 12,926 |
Recurring | Non-Agency RMBS | ||
ASSETS: | ||
Securities available-for-sale | 14,970 | 17,443 |
Recurring | Municipal | ||
ASSETS: | ||
Securities available-for-sale | 13,011 | 20,212 |
Recurring | Asset-backed securities and structured notes | ||
ASSETS: | ||
Securities available-for-sale | 164,061 | 129,724 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
ASSETS: | ||
Securities available-for-sale | 0 | 0 |
Loans held for sale, at fair value | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Other assets—Derivative instruments | 0 | 0 |
Financial liabilities: | ||
Other liabilities—Derivative instruments | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Agency RMBS | ||
ASSETS: | ||
Securities available-for-sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-Agency RMBS | ||
ASSETS: | ||
Securities available-for-sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal | ||
ASSETS: | ||
Securities available-for-sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities and structured notes | ||
ASSETS: | ||
Securities available-for-sale | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
ASSETS: | ||
Securities available-for-sale | 187,757 | 162,862 |
Loans held for sale, at fair value | 30,916 | 35,077 |
Mortgage servicing rights | 0 | 0 |
Other assets—Derivative instruments | 0 | 0 |
Financial liabilities: | ||
Other liabilities—Derivative instruments | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Agency RMBS | ||
ASSETS: | ||
Securities available-for-sale | 10,685 | 12,926 |
Recurring | Significant Other Observable Inputs (Level 2) | Non-Agency RMBS | ||
ASSETS: | ||
Securities available-for-sale | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Municipal | ||
ASSETS: | ||
Securities available-for-sale | 13,011 | 20,212 |
Recurring | Significant Other Observable Inputs (Level 2) | Asset-backed securities and structured notes | ||
ASSETS: | ||
Securities available-for-sale | 164,061 | 129,724 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
ASSETS: | ||
Securities available-for-sale | 14,970 | 17,443 |
Loans held for sale, at fair value | 0 | 0 |
Mortgage servicing rights | 11,216 | 10,752 |
Other assets—Derivative instruments | 992 | 1,321 |
Financial liabilities: | ||
Other liabilities—Derivative instruments | 0 | 368 |
Recurring | Significant Unobservable Inputs (Level 3) | Agency RMBS | ||
ASSETS: | ||
Securities available-for-sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Non-Agency RMBS | ||
ASSETS: | ||
Securities available-for-sale | 14,970 | 17,443 |
Recurring | Significant Unobservable Inputs (Level 3) | Municipal | ||
ASSETS: | ||
Securities available-for-sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Asset-backed securities and structured notes | ||
ASSETS: | ||
Securities available-for-sale | $ 0 | $ 0 |
FAIR VALUE - LEVEL 3 ASSETS MEA
FAIR VALUE - LEVEL 3 ASSETS MEASURED ON RECURRING BASIS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Purchases, issues, sales and settlements: | ||
Other-than-temporary impairment | $ 0 | $ (149) |
Recurring | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | 29,148 | 88,056 |
Total gains or losses for the period - Included in other comprehensive income | 442 | (1,763) |
Purchases, issues, sales and settlements: | ||
Purchases | 753 | 563 |
Sales | (2,058) | (8,609) |
Settlements | (724) | (2,972) |
Other-than-temporary impairment | (149) | |
Closing balance | 27,178 | 75,851 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | (383) | 443 |
Recurring | Level 3 | Included in earnings—Sale of securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Total gains or losses for the period - Included in earnings | (133) | 282 |
Recurring | Level 3 | Included in earnings—Mortgage banking income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Total gains or losses for the period - Included in earnings | (250) | 443 |
Recurring | Level 3 | Securities – Trading: Collateralized Debt Obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | 8,327 | |
Total gains or losses for the period - Included in other comprehensive income | 0 | |
Purchases, issues, sales and settlements: | ||
Purchases | 0 | |
Sales | (8,609) | |
Settlements | 0 | |
Other-than-temporary impairment | 0 | |
Closing balance | 0 | |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | 0 | |
Recurring | Level 3 | Securities – Trading: Collateralized Debt Obligations | Included in earnings—Sale of securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Total gains or losses for the period - Included in earnings | 282 | |
Recurring | Level 3 | Non-Agency RMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | 17,443 | 71,503 |
Total gains or losses for the period - Included in other comprehensive income | 442 | (1,763) |
Purchases, issues, sales and settlements: | ||
Purchases | 0 | 0 |
Sales | (2,058) | 0 |
Settlements | (724) | (2,972) |
Other-than-temporary impairment | (149) | |
Closing balance | 14,970 | 66,619 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | (133) | 0 |
Recurring | Level 3 | Non-Agency RMBS | Included in earnings—Sale of securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Total gains or losses for the period - Included in earnings | (133) | 0 |
Recurring | Level 3 | Mortgage Servicing Rights | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | 10,752 | 7,200 |
Purchases, issues, sales and settlements: | ||
Purchases | 753 | 563 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Other-than-temporary impairment | 0 | |
Closing balance | 11,216 | 8,044 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | (289) | 281 |
Recurring | Level 3 | Mortgage Servicing Rights | Included in earnings—Mortgage banking income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Total gains or losses for the period - Included in earnings | (289) | 281 |
Recurring | Level 3 | Derivative Instruments, net | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | 953 | 1,026 |
Purchases, issues, sales and settlements: | ||
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Other-than-temporary impairment | 0 | |
Closing balance | 992 | 1,188 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | 39 | 162 |
Recurring | Level 3 | Derivative Instruments, net | Included in earnings—Mortgage banking income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Total gains or losses for the period - Included in earnings | $ 39 | $ 162 |
FAIR VALUE - QUANTITATIVE INFOR
FAIR VALUE - QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASURMENTS (RECURRING) (Details) $ in Thousands | Sep. 30, 2018USD ($)Y | Jun. 30, 2018USD ($)Y |
Non-Agency RMBS | Discount Rate | Minimum | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 2.63 | |
Non-Agency RMBS | Discount Rate | Maximum | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 6.41 | |
Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing rights | $ 11,216 | $ 10,752 |
Level 3 | Non-Agency RMBS | Projected Constant Default Rate | Minimum | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.015 | |
Level 3 | Non-Agency RMBS | Projected Constant Default Rate | Maximum | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.128 | |
Level 3 | Non-Agency RMBS | Projected Loss Severity | Minimum | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.400 | |
Level 3 | Non-Agency RMBS | Projected Loss Severity | Maximum | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.680 | |
Recurring | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale | $ 202,727 | 180,305 |
Mortgage servicing rights | 11,216 | 10,752 |
Recurring | Non-Agency RMBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale | 14,970 | 17,443 |
Recurring | Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale | 14,970 | 17,443 |
Mortgage servicing rights | 11,216 | 10,752 |
Recurring | Level 3 | Non-Agency RMBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale | 14,970 | 17,443 |
Recurring | Level 3 | Non-Agency RMBS | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale | $ 14,970 | $ 17,443 |
Recurring | Level 3 | Non-Agency RMBS | Projected Constant Prepayment Rate | Minimum | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.088 | 0.025 |
Recurring | Level 3 | Non-Agency RMBS | Projected Constant Prepayment Rate | Maximum | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.403 | 0.258 |
Recurring | Level 3 | Non-Agency RMBS | Projected Constant Prepayment Rate | Weighted Average | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.129 | 0.141 |
Recurring | Level 3 | Non-Agency RMBS | Projected Constant Default Rate | Minimum | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.015 | 0.015 |
Recurring | Level 3 | Non-Agency RMBS | Projected Constant Default Rate | Maximum | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.128 | 0.106 |
Recurring | Level 3 | Non-Agency RMBS | Projected Constant Default Rate | Weighted Average | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.037 | 0.051 |
Recurring | Level 3 | Non-Agency RMBS | Projected Loss Severity | Minimum | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.400 | 0.400 |
Recurring | Level 3 | Non-Agency RMBS | Projected Loss Severity | Maximum | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.680 | 0.680 |
Recurring | Level 3 | Non-Agency RMBS | Projected Loss Severity | Weighted Average | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.596 | 0.589 |
Recurring | Level 3 | Non-Agency RMBS | Discount Rate | Minimum | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.026 | 0.027 |
Recurring | Level 3 | Non-Agency RMBS | Discount Rate | Maximum | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.064 | 0.071 |
Recurring | Level 3 | Non-Agency RMBS | Discount Rate | Weighted Average | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.042 | 0.042 |
Recurring | Level 3 | Mortgage Servicing Rights | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing rights | $ 11,216 | $ 10,752 |
Recurring | Level 3 | Mortgage Servicing Rights | Projected Constant Prepayment Rate | Minimum | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | 0.062 | 0.060 |
Recurring | Level 3 | Mortgage Servicing Rights | Projected Constant Prepayment Rate | Maximum | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | 0.278 | 0.266 |
Recurring | Level 3 | Mortgage Servicing Rights | Projected Constant Prepayment Rate | Weighted Average | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | 0.093 | 0.091 |
Recurring | Level 3 | Mortgage Servicing Rights | Discount Rate | Minimum | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | 0.095 | 0.095 |
Recurring | Level 3 | Mortgage Servicing Rights | Discount Rate | Maximum | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | 0.130 | 0.130 |
Recurring | Level 3 | Mortgage Servicing Rights | Discount Rate | Weighted Average | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | 0.098 | 0.099 |
Recurring | Level 3 | Mortgage Servicing Rights | Life (in years) | Minimum | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | Y | 2.3 | 2.4 |
Recurring | Level 3 | Mortgage Servicing Rights | Life (in years) | Maximum | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | Y | 9.6 | 9.5 |
Recurring | Level 3 | Mortgage Servicing Rights | Life (in years) | Weighted Average | Discounted Cash Flow | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | Y | 6.8 | 6.9 |
Recurring | Level 3 | Derivative Instruments, net | Sales Comparison Approach | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative Instruments | $ 992 | $ 953 |
Recurring | Level 3 | Derivative Instruments, net | Projected Sales Profit of Underlying Loans | Minimum | Sales Comparison Approach | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative instruments, net, measurement input | 0.003 | 0.001 |
Recurring | Level 3 | Derivative Instruments, net | Projected Sales Profit of Underlying Loans | Maximum | Sales Comparison Approach | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative instruments, net, measurement input | 0.004 | 0.004 |
Recurring | Level 3 | Derivative Instruments, net | Projected Sales Profit of Underlying Loans | Weighted Average | Sales Comparison Approach | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative instruments, net, measurement input | 0.003 | 0.003 |
FAIR VALUE - ASSETS MEASURED FO
FAIR VALUE - ASSETS MEASURED FOR IMPAIRMENT ON NONRECURRING BASIS (Details) - Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | $ 30,136 | $ 31,226 |
Other real estate owned and foreclosed assets, fair value | 9,497 | 9,591 |
Mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 28,257 | 28,446 |
Home equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 16 | 16 |
Multifamily real estate secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 232 | |
Auto and RV secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 114 | 60 |
Commercial & Industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 1,590 | 2,361 |
Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 159 | 111 |
Single family real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 9,397 | 9,385 |
Autos and RVs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 100 | 206 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | 0 |
Other real estate owned and foreclosed assets, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Home equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Multifamily real estate secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Auto and RV secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial & Industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Single family real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Autos and RVs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | 0 |
Other real estate owned and foreclosed assets, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Home equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Multifamily real estate secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | |
Significant Other Observable Inputs (Level 2) | Auto and RV secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Commercial & Industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Single family real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Autos and RVs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 30,136 | 31,226 |
Other real estate owned and foreclosed assets, fair value | 9,497 | 9,591 |
Significant Unobservable Inputs (Level 3) | Mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 28,257 | 28,446 |
Significant Unobservable Inputs (Level 3) | Home equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 16 | 16 |
Significant Unobservable Inputs (Level 3) | Multifamily real estate secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 232 | |
Significant Unobservable Inputs (Level 3) | Auto and RV secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 114 | 60 |
Significant Unobservable Inputs (Level 3) | Commercial & Industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 1,590 | 2,361 |
Significant Unobservable Inputs (Level 3) | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 159 | 111 |
Significant Unobservable Inputs (Level 3) | Single family real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 9,397 | 9,385 |
Significant Unobservable Inputs (Level 3) | Autos and RVs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | $ 100 | $ 206 |
FAIR VALUE - LOANS HELD-FOR-SAL
FAIR VALUE - LOANS HELD-FOR-SALE (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |||
Aggregate fair value | $ 30,916 | $ 35,077 | |
Contractual balance | 30,372 | 34,415 | |
Gain | 544 | $ 662 | |
Interest income | 314 | $ 147 | |
Change in fair value | (81) | (201) | |
Total | $ 233 | $ (54) |
FAIR VALUE - QUANTITATIVE INF_2
FAIR VALUE - QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASURMENTS (NONRECURRING) (Details) - Nonrecurring $ in Thousands | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) |
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, fair value | $ 30,136 | $ 31,226 |
Other real estate owned and foreclosed assets, fair value | 9,497 | 9,591 |
Mortgage | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, fair value | 28,257 | 28,446 |
Home equity | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, fair value | 16 | 16 |
Multifamily real estate secured | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, fair value | 232 | |
Auto and RV secured | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, fair value | 114 | 60 |
Commercial & Industrial | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, fair value | 1,590 | 2,361 |
Other | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, fair value | 159 | 111 |
Single family real estate | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 9,397 | 9,385 |
Autos and RVs | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 100 | 206 |
Level 3 | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, fair value | 30,136 | 31,226 |
Other real estate owned and foreclosed assets, fair value | 9,497 | 9,591 |
Level 3 | Mortgage | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, fair value | 28,257 | 28,446 |
Level 3 | Mortgage | Sales Comparison Approach | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, fair value | $ 28,257 | $ 28,446 |
Level 3 | Mortgage | Sales Comparison Approach | Adjustment for differences between the comparable sales | Minimum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | (0.309) | (0.488) |
Level 3 | Mortgage | Sales Comparison Approach | Adjustment for differences between the comparable sales | Maximum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | 0.667 | 0.667 |
Level 3 | Mortgage | Sales Comparison Approach | Adjustment for differences between the comparable sales | Weighted Average | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | 0.058 | 0.023 |
Level 3 | Home equity | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, fair value | $ 16 | $ 16 |
Level 3 | Home equity | Sales Comparison Approach | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, fair value | $ 16 | $ 16 |
Level 3 | Home equity | Sales Comparison Approach | Adjustment for differences between the comparable sales | Minimum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | 0 | 0 |
Level 3 | Home equity | Sales Comparison Approach | Adjustment for differences between the comparable sales | Maximum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | 0.149 | 0.149 |
Level 3 | Home equity | Sales Comparison Approach | Adjustment for differences between the comparable sales | Weighted Average | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | 0.074 | 0.074 |
Level 3 | Multifamily real estate secured | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, fair value | $ 232 | |
Level 3 | Multifamily real estate secured | Sales comparison approach and income approach | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, fair value | $ 232 | |
Level 3 | Multifamily real estate secured | Sales comparison approach and income approach | Adjustment for differences between the comparable sales | Minimum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | (0.155) | |
Level 3 | Multifamily real estate secured | Sales comparison approach and income approach | Adjustment for differences between the comparable sales | Maximum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | 0.464 | |
Level 3 | Multifamily real estate secured | Sales comparison approach and income approach | Adjustment for differences between the comparable sales | Weighted Average | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | 0.154 | |
Level 3 | Auto and RV secured | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, fair value | $ 114 | $ 60 |
Level 3 | Auto and RV secured | Sales Comparison Approach | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, fair value | $ 114 | $ 60 |
Level 3 | Auto and RV secured | Sales Comparison Approach | Adjustment for differences between the comparable sales | Minimum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | (0.200) | (0.020) |
Level 3 | Auto and RV secured | Sales Comparison Approach | Adjustment for differences between the comparable sales | Maximum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | 0.219 | 0.715 |
Level 3 | Auto and RV secured | Sales Comparison Approach | Adjustment for differences between the comparable sales | Weighted Average | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | 0.078 | 0.240 |
Level 3 | Commercial & Industrial | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, fair value | $ 1,590 | $ 2,361 |
Level 3 | Commercial & Industrial | Sales Comparison Approach | Adjustment for differences between the comparable sales | Minimum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | (0.338) | (0.338) |
Level 3 | Commercial & Industrial | Sales Comparison Approach | Adjustment for differences between the comparable sales | Maximum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | 0 | 0 |
Level 3 | Commercial & Industrial | Sales Comparison Approach | Adjustment for differences between the comparable sales | Weighted Average | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | (0.169) | (0.169) |
Level 3 | Commercial & Industrial | Discounted Cash Flow | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, fair value | $ 1,590 | $ 2,361 |
Level 3 | Other | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, fair value | 159 | 111 |
Level 3 | Other | Discounted Cash Flow | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, fair value | $ 159 | $ 111 |
Level 3 | Other | Discounted Cash Flow | Projected Constant Prepayment Rate | Minimum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | 0 | 0 |
Level 3 | Other | Discounted Cash Flow | Projected Constant Prepayment Rate | Maximum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | 0 | 0 |
Level 3 | Other | Discounted Cash Flow | Projected Constant Prepayment Rate | Weighted Average | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | 0 | 0 |
Level 3 | Other | Discounted Cash Flow | Projected Constant Default Rate | Minimum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | 0 | 0 |
Level 3 | Other | Discounted Cash Flow | Projected Constant Default Rate | Maximum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | 0.100 | 0.100 |
Level 3 | Other | Discounted Cash Flow | Projected Constant Default Rate | Weighted Average | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | 0.050 | 0.050 |
Level 3 | Other | Discounted Cash Flow | Projected Loss Severity | Minimum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | 1 | 1 |
Level 3 | Other | Discounted Cash Flow | Projected Loss Severity | Maximum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | 1 | 1 |
Level 3 | Other | Discounted Cash Flow | Projected Loss Severity | Weighted Average | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | 1 | 1 |
Level 3 | Other | Discounted Cash Flow | Discount Rate | Minimum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | (0.003) | (0.010) |
Level 3 | Other | Discounted Cash Flow | Discount Rate | Maximum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | 0.008 | 0.025 |
Level 3 | Other | Discounted Cash Flow | Discount Rate | Weighted Average | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Impaired loans, measurement input | 0.003 | 0.008 |
Level 3 | Single family real estate | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | $ 9,397 | $ 9,385 |
Level 3 | Single family real estate | Sales Comparison Approach | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | $ 9,397 | $ 9,385 |
Level 3 | Single family real estate | Sales Comparison Approach | Adjustment for differences between the comparable sales | Minimum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned, measurement input | (0.141) | (0.141) |
Level 3 | Single family real estate | Sales Comparison Approach | Adjustment for differences between the comparable sales | Maximum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned, measurement input | 0.273 | 0.273 |
Level 3 | Single family real estate | Sales Comparison Approach | Adjustment for differences between the comparable sales | Weighted Average | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned, measurement input | 0.005 | 0.005 |
Level 3 | Autos and RVs | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | $ 100 | $ 206 |
Level 3 | Autos and RVs | Sales Comparison Approach | Adjustment for differences between the comparable sales | Minimum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other repossessed assets, measurement Input | (0.339) | (0.339) |
Level 3 | Autos and RVs | Sales Comparison Approach | Adjustment for differences between the comparable sales | Maximum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other repossessed assets, measurement Input | 0.605 | 0.605 |
Level 3 | Autos and RVs | Sales Comparison Approach | Adjustment for differences between the comparable sales | Weighted Average | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other repossessed assets, measurement Input | 0.055 | 0.079 |
FAIR VALUE - FAIR VALUE BY BALA
FAIR VALUE - FAIR VALUE BY BALANCE SHEET GROUPING (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Financial assets: | ||
Fair Value | $ 202,727 | $ 180,305 |
Loans held for sale, at fair value | 30,916 | 35,077 |
Loans held for sale, lower of cost or fair value | 6,078 | 2,686 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 533,969 | 622,850 |
Fair Value | 202,727 | 180,305 |
Loans held for sale, at fair value | 30,916 | 35,077 |
Loans held for sale, lower of cost or fair value | 6,078 | 2,686 |
Loans and leases held for investment—net | 8,654,500 | 8,432,289 |
Accrued interest receivable | 35,951 | 26,729 |
Mortgage servicing rights | 11,216 | 10,752 |
Financial liabilities: | ||
Total deposits | 6,077,588 | 7,985,350 |
Advances from the Federal Home Loan Bank | 2,580,000 | 457,000 |
Subordinated notes and debentures | 54,588 | 54,552 |
Accrued interest payable | 2,353 | 1,753 |
Total Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 533,969 | 622,850 |
Fair Value | 202,727 | 180,305 |
Loans held for sale, at fair value | 30,916 | 35,077 |
Loans held for sale, lower of cost or fair value | 7,631 | 2,734 |
Loans and leases held for investment—net | 8,706,788 | 8,466,494 |
Accrued interest receivable | 35,951 | 26,729 |
Mortgage servicing rights | 11,216 | 10,752 |
Financial liabilities: | ||
Total deposits | 5,731,313 | 7,584,928 |
Advances from the Federal Home Loan Bank | 2,575,696 | 453,326 |
Subordinated notes and debentures | 51,308 | 51,693 |
Accrued interest payable | 2,353 | 1,753 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 533,969 | 622,850 |
Fair Value | 0 | 0 |
Loans held for sale, at fair value | 0 | 0 |
Loans held for sale, lower of cost or fair value | 0 | 0 |
Loans and leases held for investment—net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Financial liabilities: | ||
Total deposits | 0 | 0 |
Advances from the Federal Home Loan Bank | 0 | 0 |
Subordinated notes and debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Fair Value | 187,757 | 162,862 |
Loans held for sale, at fair value | 30,916 | 35,077 |
Loans held for sale, lower of cost or fair value | 0 | 0 |
Loans and leases held for investment—net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Financial liabilities: | ||
Total deposits | 5,731,313 | 7,584,928 |
Advances from the Federal Home Loan Bank | 2,575,696 | 453,326 |
Subordinated notes and debentures | 51,308 | 51,693 |
Accrued interest payable | 2,353 | 1,753 |
Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Fair Value | 14,970 | 17,443 |
Loans held for sale, at fair value | 0 | 0 |
Loans held for sale, lower of cost or fair value | 7,631 | 2,734 |
Loans and leases held for investment—net | 8,706,788 | 8,466,494 |
Accrued interest receivable | 35,951 | 26,729 |
Mortgage servicing rights | 11,216 | 10,752 |
Financial liabilities: | ||
Total deposits | 0 | 0 |
Advances from the Federal Home Loan Bank | 0 | 0 |
Subordinated notes and debentures | 0 | 0 |
Accrued interest payable | $ 0 | $ 0 |
SECURITIES - AMORTIZED COST, CA
SECURITIES - AMORTIZED COST, CARRYING AMOUNT AND FAIR VALUE DISCLOSURES (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | ||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | $ 203,127 | $ 180,997 | ||
Unrealized Gains | 2,615 | 2,537 | ||
Unrealized Losses | (3,015) | (3,229) | ||
Fair Value | 202,727 | 180,305 | ||
Total RMBS securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | 27,562 | 32,486 | ||
Unrealized Gains | 164 | 268 | ||
Unrealized Losses | (2,071) | (2,385) | ||
Fair Value | 25,655 | 30,369 | ||
U.S. agencies | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | 10,959 | [1] | 13,102 | |
Unrealized Gains | [1] | 79 | 152 | |
Unrealized Losses | [1] | (353) | (328) | |
Fair Value | 10,685 | [1],[2] | 12,926 | |
Non-agency | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | 16,603 | [3] | 19,384 | |
Unrealized Gains | [3] | 85 | 116 | |
Unrealized Losses | [3] | (1,718) | (2,057) | |
Fair Value | 14,970 | [3] | 17,443 | |
Total Non-RMBS | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | 175,565 | 148,511 | ||
Unrealized Gains | 2,451 | 2,269 | ||
Unrealized Losses | (944) | (844) | ||
Fair Value | 177,072 | 149,936 | ||
Municipal debt | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | 13,865 | 20,953 | ||
Unrealized Gains | 1 | 2 | ||
Unrealized Losses | (855) | (743) | ||
Fair Value | 13,011 | 20,212 | ||
Asset-backed securities and structured notes | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | 161,700 | 127,558 | ||
Unrealized Gains | 2,450 | 2,267 | ||
Unrealized Losses | (89) | (101) | ||
Fair Value | $ 164,061 | $ 129,724 | ||
[1] | U.S. government-backed or government sponsored enterprises including Fannie Mae, Freddie Mac and Ginnie Mae. | |||
[2] | Residential mortgage-backed security (RMBS) distributions include impact of expected prepayments and other timing factors. | |||
[3] | Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option ARM mortgages. |
SECURITIES - NARRATIVE (Details
SECURITIES - NARRATIVE (Details) | 3 Months Ended | |||
Sep. 30, 2018USD ($)security | Sep. 30, 2017USD ($) | Jun. 30, 2018USD ($)security | ||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale | $ 202,727,000 | $ 180,305,000 | ||
Number of available-for-sale securities in continuous loss position for a period of more than 12 months | security | 22 | 26 | ||
Number of available-for-sale securities in continuous loss position for a period of less than 12 months | security | 13 | 11 | ||
Credit losses on debt securities previously recognized in earnings | $ 0 | $ 149,000 | ||
Proceeds from sale of trading securities | 8,700,000 | |||
Realized gain on sale of trading securities | 282,000 | |||
Number of available-for-sale securities sold | security | 1 | |||
Carrying value of available-for-sale securities sold | $ 2,059,000 | |||
Loss on sale of available-for-sale securities | 133,000 | $ 0 | ||
Asset Pledged as Collateral | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities pledged as collateral | 2,080,000 | $ 2,540,000 | ||
Non-agency | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale | 14,970,000 | [1] | $ 17,443,000 | |
Carrying amount of securities with cumulative credit losses | 0 | |||
Credit losses on debt securities previously recognized in earnings | $ 0 | |||
RMBS, Super Senior Securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale, number of securities | security | 14 | |||
[1] | Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option ARM mortgages. |
SECURITIES - SCHEDULE OF UNREAL
SECURITIES - SCHEDULE OF UNREALIZED LOSS ON INVESTMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities in loss position for less than 12 Months, Fair Value | $ 12,331 | $ 11,277 |
Available-for-sale securities in loss position for less than 12 Months, Gross Unrealized Losses | (60) | (49) |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | 35,204 | 41,181 |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | (2,955) | (3,180) |
Available-for-sale securities, Fair Value | 47,535 | 52,458 |
Available-for-sale securities, Gross Unrealized Losses | (3,015) | (3,229) |
Total RMBS securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities in loss position for less than 12 Months, Fair Value | 2,217 | 48 |
Available-for-sale securities in loss position for less than 12 Months, Gross Unrealized Losses | (6) | (2) |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | 18,719 | 22,692 |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | (2,064) | (2,383) |
Available-for-sale securities, Fair Value | 20,936 | 22,740 |
Available-for-sale securities, Gross Unrealized Losses | (2,070) | (2,385) |
U.S. agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities in loss position for less than 12 Months, Fair Value | 2,182 | 12 |
Available-for-sale securities in loss position for less than 12 Months, Gross Unrealized Losses | (5) | (1) |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | 5,124 | 6,825 |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | (348) | (327) |
Available-for-sale securities, Fair Value | 7,306 | 6,837 |
Available-for-sale securities, Gross Unrealized Losses | (353) | (328) |
Non-agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities in loss position for less than 12 Months, Fair Value | 35 | 36 |
Available-for-sale securities in loss position for less than 12 Months, Gross Unrealized Losses | (1) | (1) |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | 13,595 | 15,867 |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | (1,716) | (2,056) |
Available-for-sale securities, Fair Value | 13,630 | 15,903 |
Available-for-sale securities, Gross Unrealized Losses | (1,717) | (2,057) |
Total Non-RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities in loss position for less than 12 Months, Fair Value | 10,114 | 11,229 |
Available-for-sale securities in loss position for less than 12 Months, Gross Unrealized Losses | (54) | (47) |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | 16,485 | 18,489 |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | (891) | (797) |
Available-for-sale securities, Fair Value | 26,599 | 29,718 |
Available-for-sale securities, Gross Unrealized Losses | (945) | (844) |
Municipal debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities in loss position for less than 12 Months, Fair Value | 1,725 | 1,740 |
Available-for-sale securities in loss position for less than 12 Months, Gross Unrealized Losses | (24) | (17) |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | 11,230 | 12,326 |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | (831) | (726) |
Available-for-sale securities, Fair Value | 12,955 | 14,066 |
Available-for-sale securities, Gross Unrealized Losses | (855) | (743) |
Asset-backed securities and structured notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities in loss position for less than 12 Months, Fair Value | 8,389 | 9,489 |
Available-for-sale securities in loss position for less than 12 Months, Gross Unrealized Losses | (30) | (30) |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | 5,255 | 6,163 |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | (60) | (71) |
Available-for-sale securities, Fair Value | 13,644 | 15,652 |
Available-for-sale securities, Gross Unrealized Losses | $ (90) | $ (101) |
SECURITIES - OTHER THAN TEMPORA
SECURITIES - OTHER THAN TEMPORARY IMPAIRMENT, CREDIT LOSSES RECOGNIZED IN EARNINGS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Beginning balance | $ 0 | $ (15,528) |
Additions for the amounts related to the credit loss for which an other-than-temporary impairment was not previously recognized | 0 | 0 |
Increases to the amount related to the credit loss for which other-than-temporary impairment was previously recognized | 0 | (149) |
Credit losses realized for securities sold | 0 | 0 |
Ending balance | $ 0 | $ (15,677) |
SECURITIES - REALIZED GAIN (LOS
SECURITIES - REALIZED GAIN (LOSS) ON SALE OF SECURITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds | $ 1,926 | $ 0 |
Gross realized gains | 0 | 0 |
Gross realized losses | (133) | 0 |
Net realized gain (loss) on securities | $ (133) | $ 0 |
SECURITIES - UNREALIZED GAIN (L
SECURITIES - UNREALIZED GAIN (LOSS) ON INVESTMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale debt securities—net unrealized gains (losses) | $ (400) | $ (692) |
Available-for-sale debt securities—non-credit related losses | 0 | 0 |
Held-to-maturity debt securities—non-credit related losses | 0 | 0 |
Subtotal | (400) | (692) |
Tax (expense) benefit | (7) | 79 |
Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss) | $ (407) | $ (613) |
SECURITIES - INVESTMENTS CLASSI
SECURITIES - INVESTMENTS CLASSIFIED BY CONTRACTUAL MATURITY DATE (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | ||
Available-for-sale, Amortized Cost: | ||||
Available-for-sale, Amortized Cost | $ 203,127 | |||
Available-for-sale, Fair Value: | ||||
Available-for-sale, Fair Value | 202,727 | $ 180,305 | ||
U.S. agencies | ||||
Available-for-sale, Amortized Cost: | ||||
Due within one year | [1] | 1,253 | ||
Due one to five years | [1] | 3,679 | ||
Due five to ten years | [1] | 2,770 | ||
Due after ten years | [1] | 3,257 | ||
Available-for-sale, Amortized Cost | [1] | 10,959 | ||
Available-for-sale, Fair Value: | ||||
Due within one year | [1] | 1,216 | ||
Due one to five years | [1] | 3,576 | ||
Due five to ten years | [1] | 2,706 | ||
Due after ten years | [1] | 3,187 | ||
Available-for-sale, Fair Value | 10,685 | [1],[2] | 12,926 | |
Non-agency | ||||
Available-for-sale, Amortized Cost: | ||||
Due within one year | 2,603 | |||
Due one to five years | 7,700 | |||
Due five to ten years | 4,822 | |||
Due after ten years | 1,478 | |||
Available-for-sale, Amortized Cost | 16,603 | |||
Available-for-sale, Fair Value: | ||||
Due within one year | 2,388 | |||
Due one to five years | 6,981 | |||
Due five to ten years | 4,292 | |||
Due after ten years | 1,309 | |||
Available-for-sale, Fair Value | 14,970 | [3] | 17,443 | |
Total Non-RMBS | ||||
Available-for-sale, Amortized Cost: | ||||
Due within one year | 67,214 | |||
Due one to five years | 95,513 | |||
Due five to ten years | 8,312 | |||
Due after ten years | 4,526 | |||
Available-for-sale, Amortized Cost | 175,565 | |||
Available-for-sale, Fair Value: | ||||
Due within one year | 68,093 | |||
Due one to five years | 96,992 | |||
Due five to ten years | 7,798 | |||
Due after ten years | 4,189 | |||
Available-for-sale, Fair Value | $ 177,072 | $ 149,936 | ||
[1] | Residential mortgage-backed security (RMBS) distributions include impact of expected prepayments and other timing factors. | |||
[2] | U.S. government-backed or government sponsored enterprises including Fannie Mae, Freddie Mac and Ginnie Mae. | |||
[3] | Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option ARM mortgages. |
LOANS, LEASES & ALLOWANCE FOR_3
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - LOAN PORTFOLIO COMPOSITION (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total gross loans and leases | $ 8,717,458 | $ 8,517,686 | |||
Allowance for loan and lease losses | (50,120) | (49,151) | $ (42,099) | $ (40,832) | |
Unaccreted discounts and loan and lease fees | (12,838) | (36,246) | |||
Total net loans and leases | 8,654,500 | 8,432,289 | |||
Mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total gross loans and leases | 4,265,909 | 4,198,941 | |||
Allowance for loan and lease losses | (21,695) | (20,368) | (19,815) | (19,972) | |
Unaccreted discounts and loan and lease fees | 8,765 | 9,187 | |||
Home equity | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total gross loans and leases | 2,436 | 2,306 | |||
Allowance for loan and lease losses | (14) | (14) | (20) | (19) | |
Unaccreted discounts and loan and lease fees | 48 | 48 | |||
Warehouse & Other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total gross loans and leases | 374,317 | 412,085 | |||
Allowance for loan and lease losses | (1,929) | (2,080) | (3,132) | (2,298) | |
Unaccreted discounts and loan and lease fees | (521) | (706) | |||
Multifamily real estate secured | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total gross loans and leases | 1,836,784 | 1,800,919 | |||
Allowance for loan and lease losses | (4,926) | (5,010) | (4,838) | (4,638) | |
Unaccreted discounts and loan and lease fees | 5,341 | 5,063 | |||
Commercial real estate secured | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total gross loans and leases | 243,040 | 220,379 | |||
Allowance for loan and lease losses | (855) | (849) | (914) | (1,008) | |
Unaccreted discounts and loan and lease fees | 822 | 836 | |||
Auto and RV secured | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total gross loans and leases | 236,978 | 213,522 | |||
Allowance for loan and lease losses | (3,615) | (3,178) | (2,958) | (2,379) | |
Unaccreted discounts and loan and lease fees | 2,185 | 2,065 | |||
Factoring | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total gross loans and leases | 96,929 | 169,885 | |||
Allowance for loan and lease losses | (322) | (445) | (462) | (401) | |
Unaccreted discounts and loan and lease fees | (24,166) | (48,039) | |||
Commercial & Industrial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total gross loans and leases | 1,640,017 | 1,481,051 | |||
Allowance for loan and lease losses | (15,769) | (16,238) | (9,614) | (9,881) | |
Unaccreted discounts and loan and lease fees | (4,392) | (3,884) | |||
Other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total gross loans and leases | 21,048 | 18,598 | |||
Allowance for loan and lease losses | (995) | (969) | $ (346) | $ (236) | |
Unaccreted discounts and loan and lease fees | (920) | (816) | |||
Single family warehouse loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total gross loans and leases | 156,610 | 175,508 | |||
Residential Portfolio Segment | Mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total gross loans and leases | 4,265,909 | 4,198,941 | |||
Residential Portfolio Segment | Home equity | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total gross loans and leases | 2,436 | 2,306 | |||
Residential Portfolio Segment | Warehouse & Other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total gross loans and leases | [1] | 374,317 | 412,085 | ||
Residential Portfolio Segment | Multifamily real estate secured | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total gross loans and leases | 1,836,784 | 1,800,919 | |||
Commercial Real Estate Portfolio Segment | Commercial real estate secured | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total gross loans and leases | 243,040 | 220,379 | |||
Consumer Portfolio Segment | Auto and RV secured | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total gross loans and leases | 236,978 | 213,522 | |||
Commercial Portfolio Segment | Commercial & Industrial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total gross loans and leases | 1,640,017 | 1,481,051 | |||
Unallocated Financing Receivables | Factoring | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total gross loans and leases | 96,929 | 169,885 | |||
Unallocated Financing Receivables | Other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total gross loans and leases | $ 21,048 | $ 18,598 | |||
[1] | The balance of single family warehouse loans was $156,610 at September 30, 2018 and $175,508 at June 30, 2018 . The remainder of the balance was attributable to commercial specialty and lender finance loans secured by single family real estate. |
LOANS, LEASES & ALLOWANCE FOR_4
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - ALLOWANCE FOR CREDIT LOSS NARRATIVE (Details) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018USD ($)class | Jun. 30, 2018USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | $ 8,687,324 | $ 8,488,649 |
Number of classes loans are divided for LTV analysis | class | 2 | |
H&R Block-related loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Charge-off period for delinquent loans | 120 days | |
Auto and RV secured | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | $ 236,864 | |
Auto and RV secured | FICO greater than or equal to 770 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 113,887 | |
Auto and RV secured | FICO 715 - 769 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 83,798 | |
Auto and RV secured | FICO 700 - 714 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 21,287 | |
Auto and RV secured | FICO 660 - 699 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 16,581 | |
Auto and RV secured | FICO less than 660 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 1,311 | |
Mortgage | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 4,237,654 | 4,170,495 |
Mortgage | LTV less than or equal to 60% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 2,469,446 | |
Mortgage | LTV 61% - 70% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 1,383,247 | |
Mortgage | LTV 71% - 80% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 384,770 | |
Mortgage | LTV greater than 80% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 191 | |
Multifamily real estate secured | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 1,836,784 | $ 1,800,687 |
Multifamily real estate secured | LTV greater than 80% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 1,200 | |
Multifamily real estate secured | LTV less than or equal to 55% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 932,712 | |
Multifamily real estate secured | LTV 56% - 65% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 599,113 | |
Multifamily real estate secured | LTV 66% - 75% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 294,302 | |
Multifamily real estate secured | LTV 76% - 80% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 9,457 | |
Commercial Real Estate and Land Loan | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 243,040 | |
Commercial Real Estate and Land Loan | LTV 61% - 70% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 57,128 | |
Commercial Real Estate and Land Loan | LTV 71% - 80% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 7,897 | |
Commercial Real Estate and Land Loan | LTV less than or equal to 50% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 120,484 | |
Commercial Real Estate and Land Loan | LTV 51% - 60% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | $ 57,531 |
LOANS, LEASES & ALLOWANCE FOR_5
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - ALLOWANCE FOR LOAN LOSS BY PORTFOLIO CLASS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of period | $ 49,151 | $ 40,832 |
Provision for loan and lease losses | 600 | 1,000 |
Charge-offs | (1,225) | (234) |
Recoveries | 1,594 | 501 |
Balance, end of period | 50,120 | 42,099 |
Mortgage | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of period | 20,368 | 19,972 |
Provision for loan and lease losses | 933 | (76) |
Charge-offs | (1) | (85) |
Recoveries | 395 | 4 |
Balance, end of period | 21,695 | 19,815 |
Home equity | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of period | 14 | 19 |
Provision for loan and lease losses | (3) | (2) |
Charge-offs | 0 | 0 |
Recoveries | 3 | 3 |
Balance, end of period | 14 | 20 |
Warehouse & Other | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of period | 2,080 | 2,298 |
Provision for loan and lease losses | (151) | 834 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance, end of period | 1,929 | 3,132 |
Multifamily real estate secured | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of period | 5,010 | 4,638 |
Provision for loan and lease losses | (193) | 200 |
Charge-offs | 0 | 0 |
Recoveries | 109 | 0 |
Balance, end of period | 4,926 | 4,838 |
Commercial real estate secured | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of period | 849 | 1,008 |
Provision for loan and lease losses | 6 | (94) |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance, end of period | 855 | 914 |
Auto and RV secured | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of period | 3,178 | 2,379 |
Provision for loan and lease losses | 622 | 625 |
Charge-offs | (233) | (148) |
Recoveries | 48 | 102 |
Balance, end of period | 3,615 | 2,958 |
Factoring | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of period | 445 | 401 |
Provision for loan and lease losses | (123) | 61 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance, end of period | 322 | 462 |
Commercial & Industrial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of period | 16,238 | 9,881 |
Provision for loan and lease losses | 131 | (267) |
Charge-offs | (600) | 0 |
Recoveries | 0 | 0 |
Balance, end of period | 15,769 | 9,614 |
Other | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of period | 969 | 236 |
Provision for loan and lease losses | (622) | (281) |
Charge-offs | (391) | (1) |
Recoveries | 1,039 | 392 |
Balance, end of period | $ 995 | $ 346 |
LOANS, LEASES & ALLOWANCE FOR_6
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - LOANS INDIVIDUALLY EVALUATED FOR IMPAIRMENT (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | |
With an allowance recorded: | |||
Unpaid Principal Balance | $ 33,181 | $ 32,331 | |
Principal Balance Adjustment | [1] | 3,047 | 3,294 |
Recorded Investment | 30,134 | 29,037 | |
Accrued Interest / Origination Fees | 358 | 101 | |
Total | 30,492 | 29,138 | |
Related Allocation of General Allowance | 228 | 278 | |
Related Allocation of Specific Allowance | $ 0 | $ 0 | |
As a % of total gross loans and leases | |||
Unpaid Principal Balance | 0.38% | 0.38% | |
Principal Balance Adjustment | [1] | 0.03% | 0.04% |
Recorded Investment | 0.35% | 0.34% | |
Accrued Interest / Origination Fees | 0.00% | 0.00% | |
Total | 0.35% | 0.34% | |
Related Allocation of General Allowance | 0.00% | 0.00% | |
Related Allocation of Specific Allowance | 0.00% | 0.00% | |
Mortgage | In-house originated | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | $ 1,583 | $ 1,584 | |
Principal Balance Adjustment | 953 | 951 | |
Recorded Investment | 630 | 633 | |
Accrued Interest / Origination Fees | 94 | 78 | |
Total | 724 | 711 | |
With an allowance recorded: | |||
Unpaid Principal Balance | 25,058 | 24,607 | |
Principal Balance Adjustment | [1] | 117 | 47 |
Recorded Investment | 24,941 | 24,560 | |
Accrued Interest / Origination Fees | 179 | 0 | |
Total | 25,120 | 24,560 | |
Related Allocation of General Allowance | 203 | 247 | |
Related Allocation of Specific Allowance | 0 | 0 | |
Mortgage | Purchased | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | 2,387 | 3,598 | |
Principal Balance Adjustment | 1,151 | 1,739 | |
Recorded Investment | 1,236 | 1,859 | |
Accrued Interest / Origination Fees | 0 | 0 | |
Total | 1,236 | 1,859 | |
With an allowance recorded: | |||
Unpaid Principal Balance | 1,399 | 1,394 | |
Principal Balance Adjustment | [1] | (49) | 0 |
Recorded Investment | 1,448 | 1,394 | |
Accrued Interest / Origination Fees | 83 | 21 | |
Total | 1,531 | 1,415 | |
Related Allocation of General Allowance | 14 | 14 | |
Related Allocation of Specific Allowance | 0 | 0 | |
Multifamily real estate secured | Purchased | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | 480 | ||
Principal Balance Adjustment | 248 | ||
Recorded Investment | 232 | ||
Accrued Interest / Origination Fees | 0 | ||
Total | 232 | ||
Auto and RV secured | In-house originated | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | 354 | 369 | |
Principal Balance Adjustment | 275 | 309 | |
Recorded Investment | 79 | 60 | |
Accrued Interest / Origination Fees | 2 | 2 | |
Total | 81 | 62 | |
With an allowance recorded: | |||
Unpaid Principal Balance | 35 | ||
Principal Balance Adjustment | [1] | 0 | |
Recorded Investment | 35 | ||
Accrued Interest / Origination Fees | 0 | ||
Total | 35 | ||
Related Allocation of General Allowance | 4 | ||
Related Allocation of Specific Allowance | 0 | ||
Home equity | In-house originated | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 16 | 16 | |
Principal Balance Adjustment | [1] | 0 | 0 |
Recorded Investment | 16 | 16 | |
Accrued Interest / Origination Fees | 0 | 0 | |
Total | 16 | 16 | |
Related Allocation of General Allowance | 1 | 1 | |
Related Allocation of Specific Allowance | 0 | 0 | |
Commercial & Industrial | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 172 | ||
Principal Balance Adjustment | [1] | 0 | |
Recorded Investment | 172 | ||
Accrued Interest / Origination Fees | 0 | ||
Total | 172 | ||
Related Allocation of General Allowance | 9 | ||
Related Allocation of Specific Allowance | 0 | ||
Commercial & Industrial | In-house originated | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | 2,190 | ||
Principal Balance Adjustment | 600 | ||
Recorded Investment | 1,590 | ||
Accrued Interest / Origination Fees | 0 | ||
Total | 1,590 | ||
Other | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 159 | 111 | |
Principal Balance Adjustment | [1] | 0 | 0 |
Recorded Investment | 159 | 111 | |
Accrued Interest / Origination Fees | 0 | 0 | |
Total | 159 | 111 | |
Related Allocation of General Allowance | 6 | 7 | |
Related Allocation of Specific Allowance | $ 0 | $ 0 | |
[1] | Impaired loans with an allowance recorded do not have any charge-offs. Principal balance adjustments on impaired loans with an allowance recorded represent interest payments that have been applied to the book balance as a result of the loans’ non-accrual status. |
LOANS, LEASES & ALLOWANCE FOR_7
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - ALLOWANCE FOR LOAN LOSS BY PORTFOLIO SEGMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Jun. 30, 2018 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment – general allowance | $ 228 | $ 278 | |
Individually evaluated for impairment – specific allowance | 0 | 0 | |
Collectively evaluated for impairment | 49,892 | 48,873 | |
Total ending allowance balance | 50,120 | 49,151 | |
Loans and leases individually evaluated for impairment | [1] | 30,134 | 29,037 |
Loans and leases collectively evaluated for impairment | 8,687,324 | 8,488,649 | |
Principal loan and lease balance | 8,717,458 | 8,517,686 | |
Unaccreted discounts and loan and lease fees | (12,838) | (36,246) | |
Total recorded investment in loans and leases | $ 8,704,620 | $ 8,481,440 | |
Threshold period for TDRs to be considered performing | 6 months | 6 months | |
Mortgage | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment – general allowance | $ 217 | $ 261 | |
Individually evaluated for impairment – specific allowance | 0 | 0 | |
Collectively evaluated for impairment | 21,478 | 20,107 | |
Total ending allowance balance | 21,695 | 20,368 | |
Loans and leases individually evaluated for impairment | [1] | 28,255 | 28,446 |
Loans and leases collectively evaluated for impairment | 4,237,654 | 4,170,495 | |
Principal loan and lease balance | 4,265,909 | 4,198,941 | |
Unaccreted discounts and loan and lease fees | 8,765 | 9,187 | |
Total recorded investment in loans and leases | 4,274,674 | 4,208,128 | |
Home equity | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment – general allowance | 1 | 1 | |
Individually evaluated for impairment – specific allowance | 0 | 0 | |
Collectively evaluated for impairment | 13 | 13 | |
Total ending allowance balance | 14 | 14 | |
Loans and leases individually evaluated for impairment | [1] | 16 | 16 |
Loans and leases collectively evaluated for impairment | 2,420 | 2,290 | |
Principal loan and lease balance | 2,436 | 2,306 | |
Unaccreted discounts and loan and lease fees | 48 | 48 | |
Total recorded investment in loans and leases | 2,484 | 2,354 | |
Warehouse & Other | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment – general allowance | 0 | 0 | |
Individually evaluated for impairment – specific allowance | 0 | 0 | |
Collectively evaluated for impairment | 1,929 | 2,080 | |
Total ending allowance balance | 1,929 | 2,080 | |
Loans and leases individually evaluated for impairment | [1] | 0 | 0 |
Loans and leases collectively evaluated for impairment | 374,317 | 412,085 | |
Principal loan and lease balance | 374,317 | 412,085 | |
Unaccreted discounts and loan and lease fees | (521) | (706) | |
Total recorded investment in loans and leases | 373,796 | 411,379 | |
Multifamily real estate secured | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment – general allowance | 0 | 0 | |
Individually evaluated for impairment – specific allowance | 0 | 0 | |
Collectively evaluated for impairment | 4,926 | 5,010 | |
Total ending allowance balance | 4,926 | 5,010 | |
Loans and leases individually evaluated for impairment | [1] | 0 | 232 |
Loans and leases collectively evaluated for impairment | 1,836,784 | 1,800,687 | |
Principal loan and lease balance | 1,836,784 | 1,800,919 | |
Unaccreted discounts and loan and lease fees | 5,341 | 5,063 | |
Total recorded investment in loans and leases | 1,842,125 | 1,805,982 | |
Commercial real estate secured | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment – general allowance | 0 | 0 | |
Individually evaluated for impairment – specific allowance | 0 | 0 | |
Collectively evaluated for impairment | 855 | 849 | |
Total ending allowance balance | 855 | 849 | |
Loans and leases individually evaluated for impairment | [1] | 0 | 0 |
Loans and leases collectively evaluated for impairment | 243,040 | 220,379 | |
Principal loan and lease balance | 243,040 | 220,379 | |
Unaccreted discounts and loan and lease fees | 822 | 836 | |
Total recorded investment in loans and leases | 243,862 | 221,215 | |
Auto and RV secured | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment – general allowance | 4 | 0 | |
Individually evaluated for impairment – specific allowance | 0 | 0 | |
Collectively evaluated for impairment | 3,611 | 3,178 | |
Total ending allowance balance | 3,615 | 3,178 | |
Loans and leases individually evaluated for impairment | [1] | 114 | 60 |
Loans and leases collectively evaluated for impairment | 236,864 | 213,462 | |
Principal loan and lease balance | 236,978 | 213,522 | |
Unaccreted discounts and loan and lease fees | 2,185 | 2,065 | |
Total recorded investment in loans and leases | 239,163 | 215,587 | |
Factoring | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment – general allowance | 0 | 0 | |
Individually evaluated for impairment – specific allowance | 0 | 0 | |
Collectively evaluated for impairment | 322 | 445 | |
Total ending allowance balance | 322 | 445 | |
Loans and leases individually evaluated for impairment | [1] | 0 | 0 |
Loans and leases collectively evaluated for impairment | 96,929 | 169,885 | |
Principal loan and lease balance | 96,929 | 169,885 | |
Unaccreted discounts and loan and lease fees | (24,166) | (48,039) | |
Total recorded investment in loans and leases | 72,763 | 121,846 | |
Commercial & Industrial | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment – general allowance | 0 | 9 | |
Individually evaluated for impairment – specific allowance | 0 | 0 | |
Collectively evaluated for impairment | 15,769 | 16,229 | |
Total ending allowance balance | 15,769 | 16,238 | |
Loans and leases individually evaluated for impairment | [1] | 1,590 | 172 |
Loans and leases collectively evaluated for impairment | 1,638,427 | 1,480,879 | |
Principal loan and lease balance | 1,640,017 | 1,481,051 | |
Unaccreted discounts and loan and lease fees | (4,392) | (3,884) | |
Total recorded investment in loans and leases | 1,635,625 | 1,477,167 | |
Other | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment – general allowance | 6 | 7 | |
Individually evaluated for impairment – specific allowance | 0 | 0 | |
Collectively evaluated for impairment | 989 | 962 | |
Total ending allowance balance | 995 | 969 | |
Loans and leases individually evaluated for impairment | [1] | 159 | 111 |
Loans and leases collectively evaluated for impairment | 20,889 | 18,487 | |
Principal loan and lease balance | 21,048 | 18,598 | |
Unaccreted discounts and loan and lease fees | (920) | (816) | |
Total recorded investment in loans and leases | $ 20,128 | $ 17,782 | |
[1] | Loans and leases evaluated for impairment include Troubled Debt Restructurings (“TDRs”) that have been performing for more than six months |
LOANS, LEASES & ALLOWANCE FOR_8
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - NONACCRUAL LOANS (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans and leases | $ 30,136 | $ 31,226 |
Total nonaccrual loans secured by real estate | $ 28,273 | $ 28,694 |
Nonaccrual loans and leases to total loans and leases | 0.35% | 0.37% |
Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans and leases | $ 25,572 | $ 25,193 |
Mortgage | Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans and leases | 2,685 | 3,253 |
Home equity | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans and leases | 16 | 16 |
Multifamily real estate secured | Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans and leases | 0 | 232 |
Auto and RV secured | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans and leases | 114 | 60 |
Commercial & Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans and leases | 1,590 | 2,361 |
Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans and leases | $ 159 | $ 111 |
LOANS, LEASES & ALLOWANCE FOR_9
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - NONACCRUAL LOANS NARRATIVE (Details) | 3 Months Ended | |
Sep. 30, 2018loanborrower | Jun. 30, 2018loan | |
Financing Receivable, Impaired [Line Items] | ||
Ratio of nonaccrual loans and leases considered TDRs | 2.45% | 3.30% |
Period over which borrowers can make timely payments after TDR considered non-performing | 6 years | |
Number or TDRs classified as performing | loan | 0 | 0 |
Period of delinquent property taxes paid by the borrower | 1 year | |
Auto and RV secured | Minimum | ||
Financing Receivable, Impaired [Line Items] | ||
Period for interest-only payment made by the borrowers that reverted loan to fully amortizing | 6 months | |
Auto and RV secured | Maximum | ||
Financing Receivable, Impaired [Line Items] | ||
Period for interest-only payment made by the borrowers that reverted loan to fully amortizing | 1 year | |
Commercial & Industrial | Special Mention | LTV less than or equal to 60% | ||
Financing Receivable, Impaired [Line Items] | ||
Number of construction loan borrowers | borrower | 2 | |
Nonaccrual | Mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Ratio of nonaccrual loans and leases that are single family mortgage | 93.76% | |
Percentage of aggregate single family first mortgage loans and leases written down | 43.04% |
LOANS, LEASES & ALLOWANCE FO_10
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - UNPAID PRINCIPAL BALANCE FOR PERFORMING AND NONACCRUAL (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | $ 8,717,458 | $ 8,517,686 |
Mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 4,265,909 | 4,198,941 |
Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 2,436 | 2,306 |
Warehouse & Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 374,317 | 412,085 |
Multifamily real estate secured | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,836,784 | 1,800,919 |
Commercial real estate secured | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 243,040 | 220,379 |
Auto and RV secured | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 236,978 | 213,522 |
Factoring | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 96,929 | 169,885 |
Commercial & Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,640,017 | 1,481,051 |
Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 21,048 | 18,598 |
Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 8,687,322 | 8,486,460 |
Performing | Mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 4,237,652 | 4,170,495 |
Performing | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 2,420 | 2,290 |
Performing | Warehouse & Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 374,317 | 412,085 |
Performing | Multifamily real estate secured | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,836,784 | 1,800,687 |
Performing | Commercial real estate secured | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 243,040 | 220,379 |
Performing | Auto and RV secured | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 236,864 | 213,462 |
Performing | Factoring | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 96,929 | 169,885 |
Performing | Commercial & Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,638,427 | 1,478,690 |
Performing | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 20,889 | 18,487 |
Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 30,136 | 31,226 |
Nonaccrual | Mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 28,257 | 28,446 |
Nonaccrual | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 16 | 16 |
Nonaccrual | Warehouse & Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Nonaccrual | Multifamily real estate secured | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 232 |
Nonaccrual | Commercial real estate secured | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Nonaccrual | Auto and RV secured | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 114 | 60 |
Nonaccrual | Factoring | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Nonaccrual | Commercial & Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,590 | 2,361 |
Nonaccrual | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | $ 159 | $ 111 |
LOANS, LEASES & ALLOWANCE FO_11
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - LOANS BY CREDIT QUALITY INDICATOR (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | $ 8,717,458 | $ 8,517,686 |
As a % of total gross loans and leases | 100.00% | 100.00% |
Mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | $ 4,265,909 | $ 4,198,941 |
Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 4,229,628 | 4,159,204 |
Mortgage | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 36,281 | 39,737 |
Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 2,436 | 2,306 |
Home equity | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 2,436 | 2,306 |
Warehouse & Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 374,317 | 412,085 |
Warehouse & Other | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 374,317 | 412,085 |
Multifamily real estate secured | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,836,784 | 1,800,919 |
Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,774,471 | 1,735,051 |
Multifamily real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 62,313 | 65,868 |
Commercial real estate secured | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 243,040 | 220,379 |
Commercial real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 234,954 | 212,235 |
Commercial real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 8,086 | 8,144 |
Auto and RV secured | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 236,978 | 213,522 |
Auto and RV secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 236,978 | 213,522 |
Factoring | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 96,929 | 169,885 |
Commercial & Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,640,017 | 1,481,051 |
Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 21,048 | 18,598 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | $ 8,568,399 | $ 8,451,270 |
As a % of total gross loans and leases | 98.30% | 99.20% |
Pass | Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | $ 4,181,652 | $ 4,113,537 |
Pass | Mortgage | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 32,964 | 36,024 |
Pass | Home equity | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 2,420 | 2,290 |
Pass | Warehouse & Other | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 374,317 | 412,085 |
Pass | Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,773,029 | 1,731,068 |
Pass | Multifamily real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 61,348 | 64,663 |
Pass | Commercial real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 234,954 | 212,235 |
Pass | Commercial real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 8,086 | 6,226 |
Pass | Auto and RV secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 236,728 | 213,455 |
Pass | Factoring | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 96,929 | 169,885 |
Pass | Commercial & Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,545,273 | 1,471,433 |
Pass | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 20,699 | 18,369 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | $ 115,524 | $ 31,343 |
As a % of total gross loans and leases | 1.30% | 0.40% |
Special Mention | Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | $ 20,376 | $ 19,403 |
Special Mention | Mortgage | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 572 | 461 |
Special Mention | Home equity | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Special Mention | Warehouse & Other | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Special Mention | Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,442 | 3,983 |
Special Mention | Multifamily real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Special Mention | Commercial real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Special Mention | Commercial real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 1,918 |
Special Mention | Auto and RV secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 43 | 0 |
Special Mention | Factoring | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Special Mention | Commercial & Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 92,902 | 5,460 |
Special Mention | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 189 | 118 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | $ 33,535 | $ 32,884 |
As a % of total gross loans and leases | 0.40% | 0.40% |
Substandard | Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | $ 27,600 | $ 26,264 |
Substandard | Mortgage | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 2,745 | 3,252 |
Substandard | Home equity | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 16 | 16 |
Substandard | Warehouse & Other | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Substandard | Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Substandard | Multifamily real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 965 | 1,205 |
Substandard | Commercial real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Substandard | Commercial real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Substandard | Auto and RV secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 207 | 67 |
Substandard | Factoring | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Substandard | Commercial & Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,842 | 1,969 |
Substandard | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 160 | 111 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | $ 0 | $ 2,189 |
As a % of total gross loans and leases | 0.00% | 0.00% |
Doubtful | Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | $ 0 | $ 0 |
Doubtful | Mortgage | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Doubtful | Home equity | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Doubtful | Warehouse & Other | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Doubtful | Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Doubtful | Multifamily real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Doubtful | Commercial real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Doubtful | Commercial real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Doubtful | Auto and RV secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Doubtful | Factoring | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Doubtful | Commercial & Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 2,189 |
Doubtful | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | $ 0 | $ 0 |
LOANS, LEASES & ALLOWANCE FO_12
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - PAST DUE LOANS (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 46,102 | $ 38,425 |
As a % of total gross loans and leases | 0.53% | 0.45% |
Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 39,666 | $ 33,079 |
Mortgage | Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 2,391 | 1,642 |
Home equity | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 16 | 16 |
Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 1,136 | 410 |
Auto and RV secured | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 499 | |
Auto and RV secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 315 | |
Commercial & Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 1,842 | 2,662 |
Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 552 | 301 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 14,881 | $ 9,257 |
As a % of total gross loans and leases | 0.17% | 0.11% |
30-59 Days Past Due | Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 12,054 | $ 7,830 |
30-59 Days Past Due | Mortgage | Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 835 | 354 |
30-59 Days Past Due | Home equity | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
30-59 Days Past Due | Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 1,136 | 410 |
30-59 Days Past Due | Auto and RV secured | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 400 | |
30-59 Days Past Due | Auto and RV secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 284 | |
30-59 Days Past Due | Commercial & Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 252 | 300 |
30-59 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 204 | 79 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 10,119 | $ 3,478 |
As a % of total gross loans and leases | 0.12% | 0.04% |
60-89 Days Past Due | Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 9,240 | $ 3,240 |
60-89 Days Past Due | Mortgage | Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 641 | 105 |
60-89 Days Past Due | Home equity | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
60-89 Days Past Due | Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
60-89 Days Past Due | Auto and RV secured | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 49 | |
60-89 Days Past Due | Auto and RV secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 22 | |
60-89 Days Past Due | Commercial & Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
60-89 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 189 | 111 |
90 Plus Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 21,102 | $ 25,690 |
As a % of total gross loans and leases | 0.24% | 0.30% |
90 Plus Days Past Due | Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 18,372 | $ 22,009 |
90 Plus Days Past Due | Mortgage | Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 915 | 1,183 |
90 Plus Days Past Due | Home equity | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 16 | 16 |
90 Plus Days Past Due | Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
90 Plus Days Past Due | Auto and RV secured | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 50 | |
90 Plus Days Past Due | Auto and RV secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 9 | |
90 Plus Days Past Due | Commercial & Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 1,590 | 2,362 |
90 Plus Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 159 | $ 111 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jun. 30, 2018 |
EPIC | ||
Business Acquisition [Line Items] | ||
Goodwill | $ 35.7 | $ 35.7 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - SUMMARY OF ACQUIRED INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 32,720 | $ 32,720 |
Accumulated Amortization | 1,301 | 651 |
Net Carrying Amount | 31,419 | 32,069 |
Covenant not to compete | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 930 | 930 |
Accumulated Amortization | 116 | 58 |
Net Carrying Amount | 814 | 872 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 9,820 | 9,820 |
Accumulated Amortization | 485 | 243 |
Net Carrying Amount | 9,335 | 9,577 |
Developed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 21,680 | 21,680 |
Accumulated Amortization | 652 | 326 |
Net Carrying Amount | 21,028 | 21,354 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 290 | 290 |
Accumulated Amortization | 48 | 24 |
Net Carrying Amount | $ 242 | $ 266 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended |
Sep. 30, 2018USD ($) | |
Income Tax Disclosure [Abstract] | |
Provisional amount recorded for effects of the change rate on deferred tax balance | $ 0 |
EQUITY AND STOCK-BASED COMPEN_3
EQUITY AND STOCK-BASED COMPENSATION - NARRATIVE (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Mar. 17, 2016 | |
RSUs | ||||
Stock Award Compensation Expense | ||||
Restricted stock grants (in shares) | 733,995 | 747,022 | ||
Vesting period for restricted stock grants | 3 years | 3 years | ||
Stock award expense | $ 6,851,000 | $ 3,659,000 | ||
Income tax benefit from stock award expense | 1,731,000 | 1,499,000 | ||
Unrecognized compensation expense related to non-vested awards | 43,615,000 | |||
Total fair value of shares vested in the period | $ 9,768,000 | $ 5,646,000 | ||
RSUs | Employees and Directors | ||||
Stock Award Compensation Expense | ||||
Restricted stock grants (in shares) | 733,995 | 506,716 | ||
RSUs | Employees and Directors | Anniversary 1 | ||||
Stock Award Compensation Expense | ||||
Vesting percentage for restricted stock grants | 33.33% | |||
RSUs | Employees and Directors | Anniversary 2 | ||||
Stock Award Compensation Expense | ||||
Vesting percentage for restricted stock grants | 33.33% | |||
RSUs | Employees and Directors | Anniversary 3 | ||||
Stock Award Compensation Expense | ||||
Vesting percentage for restricted stock grants | 33.33% | |||
RSUs | CEO | Anniversary 1 | ||||
Stock Award Compensation Expense | ||||
Vesting percentage for restricted stock grants | 25.00% | |||
RSUs | CEO | Anniversary 2 | ||||
Stock Award Compensation Expense | ||||
Vesting percentage for restricted stock grants | 25.00% | |||
RSUs | CEO | Anniversary 3 | ||||
Stock Award Compensation Expense | ||||
Vesting percentage for restricted stock grants | 25.00% | |||
RSUs | CEO | Anniversary 4 | ||||
Stock Award Compensation Expense | ||||
Vesting percentage for restricted stock grants | 25.00% | |||
Common Stock | ||||
Stock Award Compensation Expense | ||||
Stock repurchase program, maximum amount authorized | $ 100,000,000 | |||
Remaining amount under current board authorization | $ 64,800,000 |
EQUITY AND STOCK-BASED COMPEN_4
EQUITY AND STOCK-BASED COMPENSATION - UNRECOGNIZED COMPENSATION EXPENSE RELATED TO NON-VESTED AWARDS (Details) - RSUs $ in Thousands | Sep. 30, 2018USD ($) |
Stock Award Compensation Expense | |
For the fiscal year remainder of 2019 | $ 15,017 |
2,020 | 14,925 |
2,021 | 8,536 |
2,022 | 2,589 |
2,023 | 1,382 |
Thereafter | 1,166 |
Total | $ 43,615 |
EQUITY AND STOCK-BASED COMPEN_5
EQUITY AND STOCK-BASED COMPENSATION - CHANGES IN RESTRICTED STOCK UNIT GRANTS (Details) - RSUs - $ / shares | 3 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Jun. 30, 2018 | |
Restricted Stock Units | ||
Non-vested balance, beginning (in shares) | 1,233,731 | 1,240,322 |
Granted (in shares) | 733,995 | 747,022 |
Vested (in shares) | (247,582) | (629,755) |
Canceled (in shares) | (25,188) | (123,858) |
Non-vested balance, ending (in shares) | 1,694,956 | 1,233,731 |
Weighted-Average Grant-Date Fair Value | ||
Non-vested balance, beginning, Weighted Average Grant Date Fair Value (in dollars per share) | $ 24.84 | $ 22.52 |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | 37.09 | 26.53 |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | 23.32 | 22.55 |
Canceled, Weighted Average Grant Date Fair Value (in dollars per share) | 28.05 | 23.38 |
Non-vested balance, ending, Weighted Average Grant Date Fair Value (in dollars per share) | $ 30.32 | $ 24.84 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Common Share | ||
Net income | $ 36,841 | $ 32,383 |
Preferred stock dividends | (77) | (77) |
Net income attributable to common shareholders | $ 36,764 | $ 32,306 |
Average common shares outstanding (in shares) | 62,795,598 | 63,626,512 |
Average unvested RSUs (as revised for 2017) (in shares) | 0 | 94,093 |
Total qualifying shares (in shares) | 62,795,598 | 63,720,605 |
Basic earnings per common share (revised for September 2017) (in dollars per share) | $ 0.59 | $ 0.51 |
Diluted Earnings Per Common Share | ||
Dilutive net income attributable to common shareholders | $ 36,764 | $ 32,306 |
Average common shares issued and outstanding (as revised for 2017) (in shares) | 62,795,598 | 63,720,605 |
Total dilutive common shares outstanding (in shares) | 63,357,036 | 64,192,572 |
Diluted earnings per common share (revised for September 2017) (in dollars per share) | $ 0.58 | $ 0.50 |
RSUs | ||
Diluted Earnings Per Common Share | ||
Dilutive effect of average unvested RSUs (as revised for 2017) (in shares) | 561,438 | 471,967 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Dec. 31, 2015claim | Sep. 30, 2018USD ($) | Jun. 30, 2018claim | Jun. 09, 2016claim | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Loss contingency, new derivative actions filed | claim | 2 | |||
Loss contingency, number of pending derivative actions | claim | 6 | |||
Loss contingency, number of pending derivative actions to be consolidated | claim | 4 | |||
Loan Origination Commitments | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet, loan origination commitment | $ 673,278 | |||
Loan Origination Commitments | Sales commitment | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet, commitment | 65,707 | |||
Loan Origination Commitments | Fixed Interest Rate | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet, loan origination commitment | $ 49,695 | |||
Fixed interest rate minimum on commitments to extend credit | 3.63% | |||
Fixed interest rate maximum on commitments to extend credit | 8.86% | |||
Loan Origination Commitments | Fixed Interest Rate | Sales commitment | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet, commitment | $ 64,869 | |||
Loan Origination Commitments | Variable Interest Rate | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet, loan origination commitment | 623,583 | |||
Loan Origination Commitments | Variable Interest Rate | Sales commitment | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet, commitment | $ 838 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - loan | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Related Party Transactions [Abstract] | ||
Number of new related party loans granted | 0 | 0 |
Number of related party loans refinanced | 0 | 0 |