Cover Page
Cover Page - shares | 9 Months Ended | |
Mar. 31, 2021 | Apr. 21, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-37709 | |
Entity Registrant Name | AXOS FINANCIAL, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 33-0867444 | |
Entity Address, Address Line One | 9205 West Russell Road, STE 400 | |
Entity Address, City or Town | Las Vegas | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89148 | |
City Area Code | 858 | |
Local Phone Number | 649-2218 | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Trading Symbol | AX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 59,238,296 | |
Entity Central Index Key | 0001299709 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 1,148,052 | $ 1,756,477 |
Cash segregated for regulatory purposes | 294,903 | 194,042 |
Total cash, cash equivalents, and cash segregated | 1,442,955 | 1,950,519 |
Securities: | ||
Trading | 254 | 105 |
Available-for-sale | 218,962 | 187,627 |
Stock of regulatory agencies | 20,627 | 20,610 |
Loans held for sale, carried at fair value | 61,500 | 51,995 |
Loans held for sale, lower of cost or fair value | 13,371 | 44,565 |
Loans and leases—net of allowance for credit losses of $138.1 million as of March 31, 2021 and $75.8 million as of June 30, 2020 | 11,711,215 | 10,631,349 |
Mortgage servicing rights, carried at fair value | 16,631 | 10,675 |
Other real estate owned and repossessed vehicles | 6,804 | 6,408 |
Goodwill and other intangible assets—net | 118,133 | 125,389 |
Securities borrowed | 543,538 | 222,368 |
Customer, broker-dealer and clearing receivables | 351,063 | 220,266 |
Other assets | 322,821 | 380,024 |
TOTAL ASSETS | 14,827,874 | 13,851,900 |
Deposits: | ||
Non-interest bearing | 2,619,157 | 1,936,661 |
Interest bearing | 8,993,344 | 9,400,033 |
Total deposits | 11,612,501 | 11,336,694 |
Advances from the Federal Home Loan Bank | 172,500 | 242,500 |
Borrowings, subordinated notes and debentures | 365,753 | 235,789 |
Securities loaned | 649,837 | 255,945 |
Customer, broker-dealer and clearing payables | 483,677 | 347,614 |
Accounts payable and accrued liabilities and other liabilities | 197,956 | 202,512 |
Total liabilities | 13,482,224 | 12,621,054 |
STOCKHOLDERS’ EQUITY: | ||
Common stock—$0.01 par value; 150,000,000 shares authorized; 67,902,239 shares issued and 59,237,765 shares outstanding as of March 31, 2021; 67,323,053 shares issued and 59,612,635 shares outstanding as of June 30, 2020 | 679 | 673 |
Additional paid-in capital | 427,663 | 411,873 |
Accumulated other comprehensive income (loss)—net of tax | 2,293 | (937) |
Retained earnings | 1,133,473 | 1,009,299 |
Treasury stock, at cost; 8,664,474 shares as of March 31, 2021 and 7,710,418 shares as of June 30, 2020 | (218,458) | (195,125) |
Total stockholders’ equity | 1,345,650 | 1,230,846 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 14,827,874 | 13,851,900 |
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, 2020 and June 30, 2020 | $ 0 | $ 5,063 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
ASSETS | ||
Allowance for loan and lease losses | $ 138,107 | $ 75,807 |
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) | 67,902,239 | 67,323,053 |
Common stock, shares outstanding (in shares) | 59,237,765 | 59,612,635 |
Treasury stock, at cost (in shares) | 8,664,474 | 7,710,418 |
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) | 0 | 515,000 |
Preferred stock, shares outstanding (in shares) | 0 | 515,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
INTEREST AND DIVIDEND INCOME: | ||||
Loans and leases, including fees | $ 147,936 | $ 175,065 | $ 436,445 | $ 445,554 |
Securities borrowed and customer receivables | 4,453 | 3,818 | 14,196 | 13,025 |
Investments | 3,285 | 6,180 | 10,301 | 20,117 |
Total interest and dividend income | 155,674 | 185,063 | 460,942 | 478,696 |
INTEREST EXPENSE: | ||||
Deposits | 14,034 | 31,254 | 49,683 | 102,974 |
Advances from the Federal Home Loan Bank | 992 | 3,952 | 3,690 | 10,211 |
Securities loaned | 453 | 115 | 832 | 564 |
Other borrowings | 4,526 | 1,126 | 9,649 | 4,608 |
Total interest expense | 20,005 | 36,447 | 63,854 | 118,357 |
Net interest income | 135,669 | 148,616 | 397,088 | 360,339 |
Provision (benefit) for credit losses - loans | 2,700 | 28,500 | 22,500 | 35,700 |
Net interest income, after provision for credit losses | 132,969 | 120,116 | 374,588 | 324,639 |
NON-INTEREST INCOME: | ||||
Prepayment penalty fee income | 1,342 | 1,406 | 4,289 | 4,824 |
Gain on sale – other | 214 | 608 | 704 | 6,354 |
Mortgage banking income | 9,037 | 2,955 | 39,255 | 7,973 |
Broker-dealer fee income | 7,942 | 6,329 | 19,931 | 17,540 |
Banking and service fees | 5,352 | 20,244 | 24,281 | 37,594 |
Total non-interest income | 23,887 | 31,542 | 88,460 | 74,285 |
NON-INTEREST EXPENSE: | ||||
Salaries and related costs | 38,545 | 36,257 | 115,367 | 106,932 |
Data processing | 10,171 | 6,563 | 27,772 | 21,784 |
Depreciation and amortization | 5,865 | 6,197 | 17,913 | 17,461 |
Advertising and promotional | 4,261 | 3,887 | 10,600 | 11,720 |
Professional services | 5,712 | 3,231 | 17,340 | 7,932 |
Occupancy and equipment | 3,096 | 2,919 | 9,239 | 8,879 |
FDIC and regulatory fees | 3,107 | 2,013 | 8,400 | 3,143 |
Broker-dealer clearing charges | 3,278 | 2,180 | 7,986 | 6,048 |
General and administrative expense | 6,772 | 8,543 | 18,033 | 20,323 |
Total non-interest expense | 80,807 | 71,790 | 232,650 | 204,222 |
Income before taxes | 76,049 | 79,868 | 230,398 | 194,702 |
INCOME TAXES | 22,404 | 23,811 | 68,946 | 56,564 |
NET INCOME | 53,645 | 56,057 | 161,452 | 138,138 |
NET INCOME ATTRIBUTABLE TO COMMON STOCK | 53,645 | 55,980 | 161,262 | 137,906 |
COMPREHENSIVE INCOME | $ 54,687 | $ 53,578 | $ 164,682 | $ 135,396 |
Basic earnings per common share (in dollars per share) | $ 0.91 | $ 0.92 | $ 2.72 | $ 2.25 |
Diluted earnings per common share (in dollars per share) | $ 0.89 | $ 0.91 | $ 2.67 | $ 2.23 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 53,645 | $ 56,057 | $ 161,452 | $ 138,138 |
Net unrealized gain (loss) from available-for-sale securities, net of tax expense (benefit) of $460 and $(1,032) for the three and $1,400 and $(1,142) for the nine months ended March 31, 2021 and 2020, respectively. | 1,042 | (2,479) | 3,230 | (2,742) |
Other comprehensive income (loss) | 1,042 | (2,479) | 3,230 | (2,742) |
Comprehensive income | $ 54,687 | $ 53,578 | $ 164,682 | $ 135,396 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net unrealized gain (loss) from available-for-sale securities, tax expense (benefit) | $ 460 | $ (1,032) | $ 1,400 | $ (1,142) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Impact of ASC 326 Adoption | Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsImpact of ASC 326 Adoption | Accumulated Other Comprehensive Income (Loss), Net of Income Tax |
Preferred stock, beginning balance (in shares) at Jun. 30, 2019 | 515 | ||||||||
Stockholder's equity, beginning balance at Jun. 30, 2019 | $ 1,073,050 | $ 5,063 | $ 666 | $ (148,810) | $ 389,945 | $ 826,170 | $ 16 | ||
Common stock, issued and treasury, beginning balance (in shares) at Jun. 30, 2019 | 66,563,922 | 5,435,105 | |||||||
Common stock, outstanding, beginning balance (in shares) at Jun. 30, 2019 | 61,128,817 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 138,138 | 138,138 | |||||||
Other comprehensive income (loss) | (2,742) | (2,742) | |||||||
Cash dividends on preferred stock | (232) | (232) | |||||||
Purchase of treasury stock (in shares) | (1,815,783) | (1,815,783) | |||||||
Purchase of treasury stock | (35,838) | $ (35,838) | |||||||
Stock-based compensation expense and restricted stock unit vesting, issued (in shares) | 520,895 | ||||||||
Share-based compensation expense and restricted stock unit vesting, treasury (in shares) | (180,737) | ||||||||
Stock-based compensation expense and restricted stock unit vesting, outstanding (in shares) | 340,158 | ||||||||
Stock-based compensation expense and restricted stock unit vesting | 12,076 | $ 5 | $ (4,715) | 16,786 | |||||
Preferred stock, ending balance (in shares) at Mar. 31, 2020 | 515 | ||||||||
Stockholder's equity, ending balance at Mar. 31, 2020 | 1,184,452 | $ 5,063 | $ 671 | $ (189,363) | 406,731 | 964,076 | (2,726) | ||
Common stock, issued and treasury, ending balance (in shares) at Mar. 31, 2020 | 67,084,817 | 7,431,625 | |||||||
Common stock, outstanding, ending balance (in shares) at Mar. 31, 2020 | 59,653,192 | ||||||||
Preferred stock, beginning balance (in shares) at Dec. 31, 2019 | 515 | ||||||||
Stockholder's equity, beginning balance at Dec. 31, 2019 | 1,160,752 | $ 5,063 | $ 669 | $ (152,635) | 399,806 | 908,096 | (247) | ||
Common stock, issued and treasury, beginning balance (in shares) at Dec. 31, 2019 | 66,915,478 | 5,577,092 | |||||||
Common stock, outstanding, beginning balance (in shares) at Dec. 31, 2019 | 61,338,386 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 56,057 | 56,057 | |||||||
Other comprehensive income (loss) | (2,479) | (2,479) | |||||||
Cash dividends on preferred stock | (77) | (77) | |||||||
Purchase of treasury stock (in shares) | (1,815,783) | (1,815,783) | |||||||
Purchase of treasury stock | (35,838) | $ (35,838) | |||||||
Stock-based compensation expense and restricted stock unit vesting, issued (in shares) | 169,339 | ||||||||
Share-based compensation expense and restricted stock unit vesting, treasury (in shares) | (38,750) | ||||||||
Stock-based compensation expense and restricted stock unit vesting, outstanding (in shares) | 130,589 | ||||||||
Stock-based compensation expense and restricted stock unit vesting | 6,037 | $ 2 | $ (890) | 6,925 | |||||
Preferred stock, ending balance (in shares) at Mar. 31, 2020 | 515 | ||||||||
Stockholder's equity, ending balance at Mar. 31, 2020 | 1,184,452 | $ 5,063 | $ 671 | $ (189,363) | 406,731 | 964,076 | (2,726) | ||
Common stock, issued and treasury, ending balance (in shares) at Mar. 31, 2020 | 67,084,817 | 7,431,625 | |||||||
Common stock, outstanding, ending balance (in shares) at Mar. 31, 2020 | 59,653,192 | ||||||||
Preferred stock, beginning balance (in shares) at Jun. 30, 2020 | 515,000 | ||||||||
Stockholder's equity, beginning balance at Jun. 30, 2020 | $ 1,230,846 | $ (37,088) | $ 5,063 | $ 673 | $ (195,125) | 411,873 | 1,009,299 | $ (37,088) | (937) |
Common stock, issued and treasury, beginning balance (in shares) at Jun. 30, 2020 | 67,323,053 | 67,323,053 | 7,710,418 | ||||||
Common stock, outstanding, beginning balance (in shares) at Jun. 30, 2020 | 59,612,635 | 59,612,635 | |||||||
Preferred stock, ending balance (in shares) at Dec. 31, 2020 | 0 | ||||||||
Stockholder's equity, ending balance at Dec. 31, 2020 | $ 1,287,482 | $ 0 | $ 677 | $ (215,169) | 420,895 | 1,079,828 | 1,251 | ||
Common stock, issued and treasury, ending balance (in shares) at Dec. 31, 2020 | 67,668,664 | 8,595,842 | |||||||
Common stock, outstanding, ending balance (in shares) at Dec. 31, 2020 | 59,072,822 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Accounting Standards Update [Extensible List] | ASU 2016-13 | ||||||||
Preferred stock, beginning balance (in shares) at Jun. 30, 2020 | 515,000 | ||||||||
Stockholder's equity, beginning balance at Jun. 30, 2020 | $ 1,230,846 | $ (37,088) | $ 5,063 | $ 673 | $ (195,125) | 411,873 | 1,009,299 | $ (37,088) | (937) |
Common stock, issued and treasury, beginning balance (in shares) at Jun. 30, 2020 | 67,323,053 | 67,323,053 | 7,710,418 | ||||||
Common stock, outstanding, beginning balance (in shares) at Jun. 30, 2020 | 59,612,635 | 59,612,635 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | $ 161,452 | 161,452 | |||||||
Other comprehensive income (loss) | 3,230 | 3,230 | |||||||
Cash dividends on preferred stock | (103) | (103) | |||||||
Redeem preferred stock Series A (in shares) | (515,000) | ||||||||
Preferred stock - Series A redemption | $ (5,150) | $ (5,063) | (87) | ||||||
Purchase of treasury stock (in shares) | (753,597) | (753,597) | (753,597) | ||||||
Purchase of treasury stock | $ (16,757) | $ (16,757) | |||||||
Stock-based compensation expense and restricted stock unit vesting, issued (in shares) | 579,186 | ||||||||
Share-based compensation expense and restricted stock unit vesting, treasury (in shares) | (200,459) | ||||||||
Stock-based compensation expense and restricted stock unit vesting, outstanding (in shares) | 378,727 | ||||||||
Stock-based compensation expense and restricted stock unit vesting | 9,220 | $ 6 | $ (6,576) | 15,790 | |||||
Preferred stock, ending balance (in shares) at Mar. 31, 2021 | 0 | ||||||||
Stockholder's equity, ending balance at Mar. 31, 2021 | $ 1,345,650 | $ 0 | $ 679 | $ (218,458) | 427,663 | 1,133,473 | 2,293 | ||
Common stock, issued and treasury, ending balance (in shares) at Mar. 31, 2021 | 67,902,239 | 67,902,239 | 8,664,474 | ||||||
Common stock, outstanding, ending balance (in shares) at Mar. 31, 2021 | 59,237,765 | 59,237,765 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Accounting Standards Update [Extensible List] | ASU 2016-13 | ||||||||
Preferred stock, beginning balance (in shares) at Dec. 31, 2020 | 0 | ||||||||
Stockholder's equity, beginning balance at Dec. 31, 2020 | $ 1,287,482 | $ 0 | $ 677 | $ (215,169) | 420,895 | 1,079,828 | 1,251 | ||
Common stock, issued and treasury, beginning balance (in shares) at Dec. 31, 2020 | 67,668,664 | 8,595,842 | |||||||
Common stock, outstanding, beginning balance (in shares) at Dec. 31, 2020 | 59,072,822 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 53,645 | 53,645 | |||||||
Other comprehensive income (loss) | 1,042 | 1,042 | |||||||
Stock-based compensation expense and restricted stock unit vesting, issued (in shares) | 233,575 | ||||||||
Share-based compensation expense and restricted stock unit vesting, treasury (in shares) | (68,632) | ||||||||
Stock-based compensation expense and restricted stock unit vesting, outstanding (in shares) | 164,943 | ||||||||
Stock-based compensation expense and restricted stock unit vesting | 3,481 | $ 2 | $ (3,289) | 6,768 | |||||
Preferred stock, ending balance (in shares) at Mar. 31, 2021 | 0 | ||||||||
Stockholder's equity, ending balance at Mar. 31, 2021 | $ 1,345,650 | $ 0 | $ 679 | $ (218,458) | $ 427,663 | $ 1,133,473 | $ 2,293 | ||
Common stock, issued and treasury, ending balance (in shares) at Mar. 31, 2021 | 67,902,239 | 67,902,239 | 8,664,474 | ||||||
Common stock, outstanding, ending balance (in shares) at Mar. 31, 2021 | 59,237,765 | 59,237,765 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 161,452 | $ 138,138 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Accretion and amortization on securities, net | (124) | 392 |
Net accretion of discounts on loans and leases | (4,717) | (35,186) |
Amortization of borrowing costs | 1,431 | 156 |
Amortization of operating lease right of use asset | 7,965 | 7,889 |
Stock-based compensation expense | 15,796 | 16,791 |
Provision for Credit Losses | 22,500 | 35,700 |
Deferred income taxes | (10,388) | (12,872) |
Origination of loans held for sale | (1,349,683) | (1,286,230) |
Unrealized (gain) loss on loans held for sale | 781 | (574) |
Gain on sales of loans held for sale | (39,959) | (14,327) |
Proceeds from sale of loans held for sale | 1,378,323 | 1,296,148 |
Amortization and change in fair value of mortgage servicing rights | 5,266 | 3,869 |
(Gain) loss on sale of other real estate and foreclosed assets | (113) | (118) |
Depreciation and amortization | 17,913 | 17,461 |
Net changes in assets and liabilities which provide (use) cash: | ||
Securities borrowed | (321,170) | 90,890 |
Customer, broker-dealer and clearing receivables | (130,797) | 15,839 |
Other assets | 40,204 | 11,685 |
Securities loaned | 393,892 | (121,769) |
Customer, broker-dealer and clearing payables | 136,063 | 79,496 |
Accounts payable and other liabilities | (11,908) | (21,416) |
Net cash provided by operating activities | 312,727 | 221,962 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of investment securities | (66,617) | (244,530) |
Proceeds from repayment of securities | 57,518 | 276,782 |
Purchase of stock of regulatory agencies | (17) | (48,088) |
Proceeds from redemption of stock of regulatory agencies | 0 | 44,531 |
Origination of loans and leases held for investment | (3,936,776) | (5,363,107) |
Proceeds from sale of loans and leases held for investment | 18,011 | 24,667 |
Mortgage warehouse loans activity, net | (493,764) | (130,231) |
Proceeds from sales of other real estate owned and repossessed assets | 839 | 704 |
Purchases of loans and leases, net of discounts and premiums | (2,184) | 0 |
Principal repayments on loans and leases | 3,305,931 | 4,461,594 |
Purchases of furniture, equipment, software and intangibles | (8,986) | (9,956) |
Net cash used in investing activities | (1,126,045) | (987,634) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in deposits | 275,807 | 584,165 |
Proceeds from the Federal Home Loan Bank term advances | 0 | 60,000 |
Payments of the Federal Home Loan Bank term advances | (65,000) | (30,000) |
Net (repayment) proceeds of Federal Home Loan Bank other advances | (5,000) | 282,000 |
Net proceeds (repayments) of other borrowings | 7,281 | (92,800) |
Redemption of subordinated notes | (51,000) | 0 |
Tax payments related to settlement of restricted stock units | (6,576) | (4,715) |
Redemption of preferred stock, Series A | (5,150) | 0 |
Repurchase of treasury stock | (16,757) | (35,838) |
Cash dividends paid on preferred stock | (103) | (309) |
Payment of debt issuance costs | (2,748) | 0 |
Proceeds from issuance of subordinated notes | 175,000 | 0 |
Net cash provided by financing activities | 305,754 | 762,503 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (507,564) | (3,169) |
CASH AND CASH EQUIVALENTS—Beginning of year | 1,950,519 | 857,368 |
CASH AND CASH EQUIVALENTS—End of period | 1,442,955 | 854,199 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Interest paid on deposits and borrowed funds | 59,154 | 117,808 |
Income taxes paid | 72,236 | 42,020 |
Transfers to other real estate and repossessed vehicles | 1,223 | 853 |
Transfers from loans and leases held for investment to loans held for sale | 8,680 | 40,025 |
Transfers from loans held for sale to loans held for investment | 28,125 | 0 |
Loans and leases held for investment sold, cash not received | 0 | 18,662 |
Operating lease liabilities for obtaining right of use assets | 0 | 82,940 |
Impact of adoption of ASU No. 2016-13 on retained earnings | $ 37,088 | $ 0 |
Accounting Standards Update [Extensible List] | ASU 2016-13 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The condensed consolidated financial statements include the accounts of Axos Financial, Inc. (“Axos”) and its wholly owned subsidiaries, Axos Bank (the “Bank”) and Axos Nevada Holding, LLC (the “Axos Nevada Holding”) and collectively, the “Company”. Axos Nevada Holding wholly owns its subsidiary Axos Securities, LLC, which wholly owns subsidiaries Axos Clearing LLC (“Axos Clearing”), a clearing broker dealer, Axos Invest, Inc., a registered investment advisor, and Axos Invest LLC, an introducing broker dealer. All significant intercompany balances and transactions have been eliminated in consolidation. 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 nine months ended March 31, 2021 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, 2020 included in our Annual Report on Form 10-K. As a result of the change from adopting Accounting Standard Update (“ASU”) 2016-13, “Measurement of Credit Losses on Financial Instruments” and all subsequent amendments that modified ASU 2016-13 (collectively, “ASC 326”) on July 1, 2020, the Company updated categorization of the loan portfolio. For comparability purposes, certain reclassifications have been made to the presentation of loan categories as of June 30, 2020 and as of and for the nine months then ended March 31, 2020 to conform with current presentation adopted under ASC 326. The Company reclassified its loan categories to align with the classes adopted for the measurement of credit losses under ASC 326. The reclassification had no impact on the total loan balances or the allowance for credit losses - loans. Loans and Leases - Carrying Amount (Dollars in thousands) Single Family Real Estate Secured - Mortgage Single Family Real Estate Secured - Warehouse Single Family Real Estate Secured - Financing Multifamily Real Estate Secured - Mortgage and Financing Commercial Real Estate - Mortgage Commercial & Industrial Auto & RV - Secured Other Total Balance July 1, 2020 Pre-ASC 326 Adoption $4,244,563 $474,318 $682,477 $2,303,216 $371,176 $2,094,322 $291,452 $241,918 $10,703,442 Commercial Real Estate - Mortgage to Multifamily and Commercial Mortgage — — — 371,176 (371,176) — — — — Multifamily and Single Family Financing loans to Commercial Real Estate — — (679,054) (411,338) 1,090,392 — — — — Real estate secured Commercial & Industrial to Commercial Real Estate — — — — 1,207,528 (1,207,528) — — — Unsecured Consumer loans to Auto & Consumer — — — — — — 49,913 (49,913) — Single Family Warehouse and Mortgage combined 477,741 (474,318) (3,423) — — — — — — Other reclassifications — — — — — (1,474) — 1,474 — Balance July 1, 2020 Post ASC 326 Adoption $4,722,304 $— $— $2,263,054 $2,297,920 $885,320 $341,365 $193,479 $10,703,442 Loan Category Post- ASC 326 Single Family - Mortgage & Warehouse N/A N/A Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non RE Auto & Consumer Other Total Allowance for Credit Losses (Dollars in thousands) Single Family Real Estate Secured - Mortgage Single Family Real Estate Secured - Warehouse Single Family Real Estate Secured - Financing Multifamily Real Estate Secured - Mortgage and Financing Commercial Real Estate - Mortgage Commercial & Industrial Auto & RV - Secured Other Total Balance July 1, 2020 Pre-ASC 326 Adoption $24,041 $1,860 $5,094 $6,318 $1,456 $22,863 $5,738 $8,437 $75,807 Reclassification 1,860 (1,860) (5,094) (1,600) 19,596 (12,909) 3,723 (3,716) — Balance July 1, 2020 Post Reclassification $25,901 $— $— $4,718 $21,052 $9,954 $9,461 $4,721 $75,807 Loan Category Post-ASC 326 Adoption Single Family - Mortgage & Warehouse N/A N/A Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non RE Auto & Consumer Other Total Allowance for Credit Losses. The allowance for credit losses (“ACL”) is a valuation account that offsets the amortized cost basis of loans and net investment in leases. Under ASC 326, amortized cost is the basis on which the ACL is determined. Amortized cost is principal outstanding, net of any purchase premiums and discounts and net of any deferred loan fees and costs. Credit losses are charged off when the Company believes that collectability of at least some portion of outstanding principal is unlikely. These charge-offs are recorded as a reversal, thereby reducing, the allowance for credit losses. Recoveries on loans previously charged off are recorded as a provision to, thereby increasing, the allowance for credit losses. The allowance for credit losses is maintained at a level needed to absorb expected credit losses over the contractual life, considering the effects of prepayments, of the loan portfolio as of the reporting date. Determining the adequacy of the allowance is complex and requires judgment by Management about the effect of matters that are inherently uncertain. As such, a future assessment of current conditions may require material adjustments to the allowance. The Company’s process for determining expected life-time credit losses entails a loan-level, model-based approach and requires consideration of a broad range of relevant information relating to historical loss experience, current economic conditions as well as reasonable and supportable forecasts. A credit loss is estimated for all loans. Consequently, the Company stratifies the full loan population into segments sharing similar characteristics to perform the evaluation of the credit loss collectively. The Company defines a segment as the level at which the Company develops a systematic methodology to determine the allowance for credit losses. Additionally, the Company can further stratify loans of similar type, risk attributes and methods for monitoring credit risk. The Company categorizes the loan portfolio into six segments: Single Family - Mortgage & Warehouse, Multifamily and Commercial Mortgage, Commercial Real Estate, Commercial & Industrial - Non Real Estate, Auto & Consumer and Other – refer to Note 4 – “Loans & Allowance for Credit Losses” for further detail of the segments and classes within. The method for estimating expected life-time credit losses includes, among other things, the following main components: 1) The use of a probability of default (“PD”)/loss given default (“LGD”) model; 2) defining a number of economic scenarios across the benign to adverse spectrum; 3) an initial and reasonable forecast period of one year for all loan segments; and 4) a reversion period of 18 months using a linear transition to historical loss rates for each loan pool. After the reversion period, the historical loss rate is applied over the remaining contractual life of loan. Given the inherent limitations of a solely quantitative model, qualitative adjustments are included to arrive at the ending calculated loss amount in order to account for data points not captured from quantitative inputs alone. Qualitative criteria we consider includes, among other things, the following: • Regulatory and Legal - matters that may impact the timeliness and/or amounts of repayments; • Concentration - portfolio composition and loan concentration; • Collateral Dependency - changes in collateral values; • Lending/Underwriting Standards - current lending policies and the effects of any new policies; • Nature and Volume - loan production volume and mix; • Loan Trends - credit performance trends, including a borrower’s financial condition and credit rating. On a quarterly basis, Management convenes a Credit Review meeting in which current information and trends are collectively assessed to forecast future economic impact for purposes of assessing the adequacy of the ACL. The forecasted direction and magnitude of change with respect to future economic conditions is then assessed against the estimate in the model. Accrued Interest. Accrued interest receivable is excluded from amortized cost and is presented separately in “Other Assets” on the unaudited Condensed Consolidated Balance Sheets. Additionally, the Company does not estimate an allowance for credit losses on accrued interest receivable as the Company has a policy to charge off accrued interest deemed uncollectible in a timely manner. When a loan is placed on non-accrual status, which occurs when a borrower becomes delinquent by 90 days, interest previously accrued, but not collected, is reversed against current period interest income. Individually Assessed Loans. Credit loss is estimated for any individual loan on a collective basis, unless an individual loan’s credit characteristics has deteriorated below a range of the overall group, in which case the loan would then be individually assessed. Individually assessed loans are measured for credit loss based on present value of future expected cash flows, discounted at the loan’s effective interest rate or the fair value of the collateral, less estimated selling costs, if the loan is collateral-dependent. Available-for-Sale Debt Securities. Unrealized credit losses will be recognized through an allowance for credit losses instead of an adjustment to amortized cost basis, eliminating the other-than-temporary impairment concept. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not, that it will be required to sell the security before recovery of its amortized cost basis. If either criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through earnings. For available-for-sale debt securities that do not meet the above conditions, the Company evaluates at the individual security level whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, Management considers the extent to which fair value is less than amortized cost and unfavorable conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recognized for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. All other changes in fair value of the security that have not been recognized through an allowance for credit losses are recognized in other comprehensive income. Changes in the allowance for credit losses, if any, are recognized as a provision for (or reversal of) credit losses. Losses are charged against the allowance when management believes an available-for-sale investment security is uncollectible or when either of the criteria regarding intent or requirement to sell is met. Loan Commitments. Loans commitments not unconditionally cancellable are subject to an estimate of credit loss under a current expected credit loss model. The Company’s process for determining the estimate of credit loss on loan commitments is the same as it is on loans. Refer to detail of Allowance on Credit Losses above. New Accounting Standards Accounting Standards Adopted During Fiscal 2021 Financial Instruments. Credit Losses . On July 1, 2020, the Company adopted ASC 326. The update replaces incurred loss models based on the probable recognition threshold with a current expected credit loss model to estimate all credit losses over the contractual life for financial instruments carried at amortized cost and certain off-balance sheet credit exposures, such as loan commitments. The new model requires consideration of a broader range of relevant information, such as historical loss experience, current economic conditions and reasonable and supportable forecasts. The change will generally result in earlier, accelerated loss recognition. For available-for-sale debt securities, unrealized credit losses will be recognized through an allowance for credit losses rather than as adjustment to amortized cost basis, eliminating the other-than-temporary impairment concept. No credit loss adjustment on available-for-sale debt securities resulted upon adoption of ASC 326. The Company adopted this standard using the modified retrospective transition method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Prior period amounts are not retroactively adjusted. A prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Mar. 31, 2021 | |
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. ASC 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 following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis at March 31, 2021 and June 30, 2020. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: March 31, 2021 (Dollars in thousands) Quoted Prices in Significant Other Significant Total ASSETS: Securities—Trading: Municipal $ — $ 254 $ — $ 254 Securities—Available-for-Sale: Agency Debt 1 $ — $ 1,800 $ — $ 1,800 Agency RMBS 1 — 17,918 — 17,918 Non-Agency RMBS 2 — — 17,377 17,377 Municipal — 3,521 — 3,521 Asset-backed securities and structured notes — 178,346 — 178,346 Total—Securities—Available-for-Sale $ — $ 201,585 $ 17,377 $ 218,962 Loans Held for Sale $ — $ 61,500 $ — $ 61,500 Mortgage servicing rights $ — $ — $ 16,631 $ 16,631 Other assets—Derivative instruments $ — $ — $ 8,595 $ 8,595 LIABILITIES: Other liabilities—Derivative instruments $ — $ — $ 1,767 $ 1,767 June 30, 2020 (Dollars in thousands) Quoted Prices in Significant Other Significant Total ASSETS: Securities—Trading: Municipal $ — $ 105 $ — $ 105 Securities—Available-for-Sale: Agency Debt 1 $ — $ 1,799 $ — $ 1,799 Agency RMBS 1 — 16,826 — 16,826 Non-Agency RMBS 2 — — 18,332 18,332 Municipal — 10,400 — 10,400 Asset-backed securities and structured notes — 140,270 — 140,270 Total—Securities—Available-for-Sale $ — $ 169,295 $ 18,332 $ 187,627 Loans Held for Sale $ — $ 51,995 $ — $ 51,995 Mortgage servicing rights $ — $ — $ 10,675 $ 10,675 Other assets—Derivative instruments $ — $ — $ 9,131 $ 9,131 LIABILITIES: Other liabilities—Derivative instruments $ — $ — $ 1,715 $ 1,715 1 Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac. 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 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 March 31, 2021 (Dollars in thousands) Securities – Available-for-Sale: Non-Agency RMBS Mortgage Servicing Rights Derivative Instruments, net Total Opening balance $ 17,135 $ 14,314 $ 7,979 $ 39,428 Included in earnings—Mortgage banking income — (1,221) (1,151) (2,372) Included in other comprehensive income 913 — — 913 Purchases, originations, issues, sales and settlements: Purchases/originations — 3,538 — 3,538 Settlements (671) — — (671) Closing balance $ 17,377 $ 16,631 $ 6,828 $ 40,836 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ (1,221) $ (1,151) $ (2,372) For the Nine Months Ended March 31, 2021 (Dollars in thousands) Securities – Available-for-Sale: Non-Agency RMBS Mortgage Servicing Rights Derivative Instruments, net Total Opening Balance $ 18,332 $ 10,675 $ 7,416 $ 36,423 Included in earnings—Mortgage banking income — (5,266) (588) (5,854) Included in other comprehensive income 607 — — 607 Purchases, originations, issues, sales and settlements: Purchases/originations — 11,222 — 11,222 Settlements (1,562) — — (1,562) Closing balance $ 17,377 $ 16,631 $ 6,828 $ 40,836 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ (5,266) $ (588) $ (5,854) For the Three Months Ended March 31, 2020 (Dollars in thousands) Securities – Available-for-Sale: Non-Agency RMBS Mortgage Servicing Rights Derivative Instruments, net Total Opening balance $ 12,787 $ 11,262 $ 1,017 $ 25,066 Included in earnings—Mortgage banking income — (2,597) 1,631 (966) Included in other comprehensive income (548) — — (548) Purchases, originations, issues, sales and settlements: Purchases/originations — 1,297 — 1,297 Settlements (533) — — (533) Closing balance $ 11,706 $ 9,962 $ 2,648 $ 24,316 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ (2,597) $ 1,631 $ (966) For the Nine Months Ended March 31, 2020 (Dollars in thousands) Securities – Available-for-Sale: Non-Agency RMBS Mortgage Servicing Rights Derivative Instruments, net Total Opening Balance $ 13,025 $ 9,784 $ 1,246 $ 24,055 Total gains or losses for the period: Included in earnings—Mortgage banking income — (3,869) 1,402 (2,467) Included in other comprehensive income 292 — — 292 Purchases, originations, issues, sales and settlements: Purchases/originations — 4,047 — 4,047 Settlements (1,611) — — (1,611) Closing balance $ 11,706 $ 9,962 $ 2,648 $ 24,316 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ (3,869) $ 1,402 $ (2,467) The table below summarizes the quantitative information about level 3 fair value measurements as of the dates indicated: March 31, 2021 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Securities – Non-agency RMBS $ 17,377 Discounted Cash Flow Projected Constant Prepayment Rate, 1.5 to 44.5% (8.8%) 1.5 to 6.3% (1.6%) 40.0 to 100.0% (76.9%) 2.7 to 7.0% (4.2%) Mortgage Servicing Rights $ 16,631 Discounted Cash Flow Projected Constant Prepayment Rate, 7.7 to 72.2% (12.0%) 0.7 to 7.8 (6.4) 9.5 to 14.0% (9.7%) Derivative Instruments $ 6,828 Sales Comparison Approach Projected Sales Profit of Underlying Loans 0.2 to 0.4% (0.2%) June 30, 2020 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Securities – Non-agency RMBS $ 18,332 Discounted Cash Flow Projected Constant Prepayment Rate, 2.5 to 47.9% (26.1%) 0.5 to 4.5% (2.0%) 35.0 to 68.4% (50.1%) 2.9 to 9.4% (5.0%) Mortgage Servicing Rights $ 10,675 Discounted Cash Flow Projected Constant Prepayment Rate, 4.7 to 39.6% (11.4%) 1.6 to 7.7 (6.2) 9.5 to 14.0% (9.8%) Derivative Instruments $ 7,416 Sales Comparison Approach Projected Sales Profit of Underlying Loans (0.3) to 0.8% (0.2%) 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: March 31, 2021 (Dollars in thousands) Quoted Prices in Significant Other Significant Balance Other real estate owned and foreclosed assets: Single family real estate $ — $ — $ 6,538 $ 6,538 Autos and RVs — — 266 266 Total $ — $ — $ 6,804 $ 6,804 June 30, 2020 (Dollars in thousands) Quoted Prices in Significant Other Significant Balance Other real estate owned and foreclosed assets: Single family real estate $ — $ — $ 6,114 $ 6,114 Autos and RVs — — 294 294 Total $ — $ — $ 6,408 $ 6,408 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 $6,804 after charge-offs of $0 for the nine months ended March 31, 2021. 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 and in accordance with the Company’s policy on loans held for investment. None of these loans are 90 days or more past due nor on nonaccrual as of March 31, 2021 and June 30, 2020. As of March 31, 2021 and June 30, 2020, the aggregate fair value of loans held for sale, carried at fair value, contractual balance (including accrued interest), and unrealized gain was as follows: (Dollars in thousands) March 31, 2021 June 30, 2020 Aggregate fair value $ 61,500 $ 51,995 Contractual balance 59,985 49,700 Unrealized gain $ 1,515 $ 2,295 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 For the Nine Months Ended March 31, March 31, (Dollars in thousands) 2021 2020 2021 2020 Interest income $ 387 $ 216 $ 1,189 $ 812 Change in fair value (1,829) 2,228 (1,369) 1,976 Total $ (1,442) $ 2,444 $ (180) $ 2,788 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: March 31, 2021 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Input Range (Weighted Average) 1 Other real estate owned and foreclosed assets: Single family real estate $ 6,538 Sales comparison approach Adjustment for differences between the comparable sales (3.7) to 1.7% ((0.2)%) Autos and RVs $ 266 Sales comparison approach Adjustment for differences between the comparable sales 0.0 to 19.7% (0.0%) June 30, 2020 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Input Range (Weighted Average) 1 Other real estate owned and foreclosed assets: Single family real estate $ 6,114 Sales comparison approach Adjustment for differences between the comparable sales 18.7 to 18.7% (18.7%) Autos and RVs $ 294 Sales comparison approach Adjustment for differences between the comparable sales (24.6) to 44.2% (2.8%) 1 For 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 March 31, 2021 and June 30, 2020 were as follows: March 31, 2021 Fair Value (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 1,442,955 $ 1,442,955 $ — $ — $ 1,442,955 Securities — trading 254 — 254 — 254 Securities — available-for-sale 218,962 — 201,585 17,377 218,962 Loans held for sale, at fair value 61,500 — 61,500 — 61,500 Loans held for sale, at lower of cost or fair value 13,371 — — 13,416 13,416 Loans and leases held for investment—net 11,711,215 — — 12,138,239 12,138,239 Securities borrowed 543,538 — — 543,755 543,755 Customer, broker-dealer and clearing receivables 351,063 — — 351,063 351,063 Mortgage servicing rights 16,631 — — 16,631 16,631 Financial liabilities: Total deposits 11,612,501 — 11,314,340 — 11,314,340 Advances from the Federal Home Loan Bank 172,500 — 173,682 — 173,682 Borrowings, subordinated notes and debentures 365,753 — 360,454 — 360,454 Securities loaned 649,837 — — 652,111 652,111 Customer, broker-dealer and clearing payables 483,677 — — 483,677 483,677 June 30, 2020 Fair Value (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 1,950,519 $ 1,950,519 $ — $ — $ 1,950,519 Securities — trading 105 — 105 — 105 Securities — available-for-sale 187,627 — 169,295 18,332 187,627 Loans held for sale, at fair value 51,995 — 51,995 — 51,995 Loans held for sale, at lower of cost or fair value 44,565 — — 44,625 44,625 Loans and leases held for investment—net 10,631,349 — — 11,138,255 11,138,255 Securities borrowed 222,368 — — 222,613 222,613 Customer, broker-dealer and clearing receivables 220,266 — — 220,464 220,464 Mortgage servicing rights 10,675 — — 10,675 10,675 Financial liabilities: Total deposits 11,336,694 — 11,088,447 — 11,088,447 Advances from the Federal Home Loan Bank 242,500 — 254,114 — 254,114 Borrowings, subordinated notes and debentures 235,789 — 234,445 — 234,445 Securities loaned 255,945 — — 256,790 256,790 Customer, broker-dealer and clearing payables 347,614 — — 347,614 347,614 The methods and assumptions, not previously presented, used to estimate fair value are described as follows: Carrying amount is the estimated fair value for cash and cash equivalents, interest bearing deposits, accrued interest receivable and payable, demand deposits, short-term debt, and variable rate loans and leases or deposits that reprice frequently and fully. For fixed rate loans and leases, deposits, borrowings or subordinated debt and for variable rate loans and leases, deposits, borrowings or subordinated debt with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk. A discussion of the methods of valuing trading securities, available for sale securities and loans held for sale can be found in Note 4 – “Fair Value” of our Form 10-K for the year ended June 30, 2020. The carrying amount of stock of regulatory agencies approximates the estimated fair value of this investment. The fair value of off-balance sheet items is not considered material. |
SECURITIES
SECURITIES | 9 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The amortized cost, carrying amount and fair value for the trading and available-for-sale securities at March 31, 2021 and June 30, 2020 were: March 31, 2021 Trading Available-for-sale (Dollars in thousands) Fair Amortized Unrealized Unrealized Fair Mortgage-backed securities (RMBS): U.S. agencies 1 $ — $ 17,763 $ 362 $ (207) $ 17,918 Non-agency 2 — 16,618 1,409 (650) 17,377 Total mortgage-backed securities — 34,381 1,771 (857) 35,295 Non-RMBS: U.S. agencies 1 — 1,800 — — 1,800 Municipal 254 3,436 85 — 3,521 Asset-backed securities and structured notes — 175,147 3,199 — 178,346 Total Non-RMBS 254 180,383 3,284 — 183,667 Total debt securities $ 254 $ 214,764 $ 5,055 $ (857) $ 218,962 June 30, 2020 Trading Available-for-sale (Dollars in thousands) Fair Amortized Unrealized Unrealized Fair Mortgage-backed securities (RMBS): U.S. agencies 1 $ — $ 16,192 $ 634 $ — $ 16,826 Non-agency 2 — 18,180 1,024 (872) 18,332 Total mortgage-backed securities — 34,372 1,658 (872) 35,158 Non-RMBS: U.S. agencies 1 — 1,799 — — 1,799 Municipal 105 10,550 44 (194) 10,400 Asset-backed securities and structured notes — 141,338 1 (1,069) 140,270 Total Non-RMBS 105 153,687 45 (1,263) 152,469 Total debt securities $ 105 $ 188,059 $ 1,703 $ (2,135) $ 187,627 1 Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac. 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 $17,377 at March 31, 2021 consists of 15 different issues of super senior securities. The face amounts of debt securities available-for-sale that were pledged to secure borrowings at March 31, 2021 and June 30, 2020 were $3.3 million and $3.5 million, 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: March 31, 2021 Available-for-sale securities in loss position for Less Than More Than Total (Dollars in thousands) Fair Gross Fair Gross Fair Gross RMBS: U.S. agencies $ 7,929 $ (207) $ — $ — $ 7,929 $ (207) Non-agency — — 6,206 (650) 6,206 (650) Total RMBS securities 7,929 (207) 6,206 (650) 14,135 (857) Non-RMBS: U.S. agencies — — — — — — Total Non-RMBS — — — — — — Total debt securities $ 7,929 $ (207) $ 6,206 $ (650) $ 14,135 $ (857) June 30, 2020 Available-for-sale securities in loss position for Less Than More Than Total (Dollars in thousands) Fair Gross Fair Gross Fair Gross RMBS: U.S. agencies $ 85 $ — $ — $ — $ 85 $ — Non-agency — — 6,978 (872) 6,978 (872) Total RMBS securities 85 — 6,978 (872) 7,063 (872) Non-RMBS: Municipal debt — — 2,002 (194) 2,002 (194) Asset-backed securities and structured notes 139,883 (1,069) — — 139,883 (1,069) Total Non-RMBS 139,883 (1,069) 2,002 (194) 141,885 (1,263) Total debt securities $ 139,968 $ (1,069) $ 8,980 $ (1,066) $ 148,948 $ (2,135) On March 31, 2021, there were seven securities in a continuous loss position for a period of more than 12 months, and six securities in a continuous loss position for a period of less than 12 months. At June 30, 2020, there were ten securities in a continuous loss position for a period of more than 12 months, and four securities in a continuous loss position for a period of less than 12 months. At March 31, 2021, one non-agency RMBS with a total carrying amount of $3.1 million was determined to have cumulative credit losses of $0.8 million of which none was recognized in earnings during the three months ended March 31, 2021. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates at the individual security level whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses, if any, are recorded as a provision for (or reversal of) credit losses. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale investment security is confirmed or when either of the criteria regarding intent or requirement to sell is met. During the three months ended March 31, 2020, the company sold no available-for-sale securities. During the three months ended March 31, 2021, the company sold no available-for-sale securities. The Company had recorded unrealized gains and unrealized losses in accumulated other comprehensive loss as follows: (Dollars in thousands) March 31, June 30, Available-for-sale debt securities—net unrealized gains (losses) $ 4,198 $ (432) Available-for-sale debt securities—non-credit related losses (845) (845) Subtotal 3,353 (1,277) Tax benefit (expense) (1,060) 340 Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss) $ 2,293 $ (937) |
LOANS & ALLOWANCE FOR CREDIT LO
LOANS & ALLOWANCE FOR CREDIT LOSSES | 9 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
LOANS & ALLOWANCE FOR CREDIT LOSSES | LOANS & ALLOWANCE FOR CREDIT LOSSES The following table(s) sets forth the composition of the loan portfolio as of the dates indicated: (Dollars in thousands) March 31, 2021 June 30, 2020 Single Family - Mortgage & Warehouse $ 4,899,188 $ 4,722,304 Multifamily and Commercial Mortgage 2,424,185 2,263,054 Commercial Real Estate 3,042,896 2,297,920 Commercial & Industrial - Non-RE 1,030,879 885,320 Auto & Consumer 323,662 341,365 Other 135,705 193,479 Total gross loans and leases 11,856,515 10,703,442 Allowance for credit losses - loans (138,107) (75,807) Unaccreted premiums (discounts) and loan and lease fees (7,193) 3,714 Total net loans and leases $ 11,711,215 $ 10,631,349 The following tables summarize activity in the allowance for credit losses - loans by portfolio classes for the periods indicated. For the Three Months Ended March 31, 2021 (Dollars in thousands) Single Family-Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Balance at January 1, 2021 $ 32,727 $ 12,889 $ 56,715 $ 19,129 $ 7,413 $ 7,520 $ 136,393 Provision (benefit) for credit losses - loans (2,785) 704 (133) 4,506 317 91 2,700 Charge-offs (110) (177) (255) — (863) — (1,405) Recoveries 83 — — 18 318 — 419 Balance at March 31, 2021 $ 29,915 $ 13,416 $ 56,327 $ 23,653 $ 7,185 $ 7,611 $ 138,107 For the Three Months Ended March 31, 2020 (Dollars in thousands) Single Family-Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Balance at January 1, 2020 $ 21,662 $ 4,045 $ 12,691 $ 12,126 $ 7,168 $ 1,822 $ 59,514 Provision for credit losses - loans 706 592 5,344 214 3,869 17,775 28,500 Charge-offs — — — — (1,290) — (1,290) Recoveries 62 — — — 271 40 373 Balance at March 31, 2020 $ 22,430 $ 4,637 $ 18,035 $ 12,340 $ 10,018 $ 19,637 $ 87,097 For the Nine Months Ended March 31, 2021 (Dollars in thousands) Single Family-Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Balance at July 1, 2020 $ 25,901 $ 4,718 $ 21,052 $ 9,954 $ 9,461 $ 4,721 $ 75,807 Effect of Adoption of ASC 326 6,318 7,408 25,893 7,042 610 29 47,300 Provision (benefit) for credit losses - loans 47 1,467 9,637 9,472 (984) 2,861 22,500 Charge-offs (2,469) (177) (255) (2,833) (2,819) — (8,553) Recoveries 118 — — 18 917 — 1,053 Balance at March 31, 2021 $ 29,915 $ 13,416 $ 56,327 $ 23,653 $ 7,185 $ 7,611 $ 138,107 For the Nine Months Ended March 31, 2020 (Dollars in thousands) Single Family-Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Balance at July 1, 2019 $ 22,290 $ 3,807 $ 14,632 $ 9,544 $ 6,339 $ 473 $ 57,085 Provision for credit losses - loans 50 711 3,403 2,796 6,620 22,120 35,700 Charge-offs (151) — — — (3,420) (4,182) (7,753) Recoveries 241 119 — — 479 1,226 2,065 Balance at March 31, 2020 $ 22,430 $ 4,637 $ 18,035 $ 12,340 $ 10,018 $ 19,637 $ 87,097 Credit Quality Disclosures. Nonaccrual loans consisted of the following as of the dates indicated: As of March 31, 2021 (Dollars in thousands) With Allowance With No Allowance Total Single Family - Mortgage & Warehouse $ 51,628 $ 33,415 $ 85,043 Multifamily and Commercial Mortgage 25,275 5,469 30,744 Commercial Real Estate 16,414 — 16,414 Commercial & Industrial - Non-RE 2,942 18 2,960 Auto & Consumer 392 54 446 Total nonaccrual loans $ 96,651 $ 38,956 $ 135,607 Nonaccrual loans to total loans 1.14 % Approximately 0.61% of our nonaccrual loans at March 31, 2021 were considered TDRs, compared to 0.34% at June 30, 2020. 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 category to the performing loan category and any previously deferred interest income is recognized. Approximately 62.71% of the Bank’s nonaccrual loans are single family first mortgages. No interest income was recognized in the three and nine months ended March 31, 2021 and March 31, 2020 on nonaccrual loans. The following tables present the outstanding unpaid balance of loans that are performing and nonaccrual by portfolio class: March 31, 2021 (Dollars in thousands) Single Family-Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Performing $ 4,814,145 $ 2,393,441 $ 3,026,482 $ 1,027,919 $ 323,216 $ 135,705 $ 11,720,908 Nonaccrual 85,043 30,744 16,414 2,960 446 — 135,607 Total $ 4,899,188 $ 2,424,185 $ 3,042,896 $ 1,030,879 $ 323,662 $ 135,705 $ 11,856,515 June 30, 2020 (Dollars in thousands) Single Family-Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Performing $ 4,638,274 $ 2,259,629 $ 2,297,920 $ 885,107 $ 341,092 $ 193,479 $ 10,615,501 Nonaccrual 84,030 3,425 — 213 273 — 87,941 Total $ 4,722,304 $ 2,263,054 $ 2,297,920 $ 885,320 $ 341,365 $ 193,479 $ 10,703,442 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 March 31, 2021 or June 30, 2020. Under guidelines set forth in the CARES Act, the Company had provided certain borrowers the ability to delay payments and not consider them to be TDRs. Starting at September 30, 2020, the Company no longer allowed delayed payments. No loans existed as of March 31, 2021 that were in a forbearance status. Credit Quality Indicators The amortized cost basis by fiscal year of origination and credit quality indicator of the Company’s loan and leases as of March 31, 2021 was as follows: Loans Held for Investment Origination Year Revolving Loans Revolving Loans Converted to Loans HFI Total (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Single Family-Mortgage & Warehouse Pass $ 728,933 $ 863,897 $ 582,138 $ 545,832 $ 408,071 $ 662,523 $ 951,752 $ — $ 4,743,146 Special Mention 79 10,389 4,639 5,364 9,927 9,895 16,330 — 56,623 Substandard — 4,342 23,248 19,107 13,547 39,175 — — 99,419 Doubtful — — — — — — — — — Total 729,012 878,628 610,025 570,303 431,545 711,593 968,082 — 4,899,188 Multifamily and Commercial Mortgage Pass 417,032 594,368 442,501 332,436 208,758 366,914 — — 2,362,009 Special Mention — 26,225 1,400 1,333 992 630 — — 30,580 Substandard — 24,323 1,084 4,385 — 1,804 — — 31,596 Doubtful — — — — — — — — — Total 417,032 644,916 444,985 338,154 209,750 369,348 — — 2,424,185 Commercial Real Estate Pass 976,356 1,052,529 395,334 169,804 45,701 63,750 216,189 — 2,919,663 Special Mention — 24,842 12,473 — 11,221 — 2,533 — 51,069 Substandard — — 55,750 16,414 — — — — 72,164 Doubtful — — — — — — — — — Total 976,356 1,077,371 463,557 186,218 56,922 63,750 218,722 — 3,042,896 Commercial & Industrial - Non-RE Pass 50,084 110,720 18,262 30,901 11,629 — 710,995 90,898 1,023,489 Special Mention — — — — — — — — — Substandard 2,824 800 2,942 810 14 — — — 7,390 Doubtful — — — — — — — — — Total 52,908 111,520 21,204 31,711 11,643 — 710,995 90,898 1,030,879 Auto & Consumer Pass 84,551 90,098 81,340 38,098 19,361 9,056 — — 322,504 Special Mention — 46 127 13 — — — — 186 Substandard — 349 427 110 57 29 — — 972 Doubtful — — — — — — — — — Total 84,551 90,493 81,894 38,221 19,418 9,085 — — 323,662 Other Pass 15,546 109,157 — 1,752 681 1,282 — — 128,418 Special Mention — — — — — — — — — Substandard — 7,287 — — — — — — 7,287 Doubtful — — — — — — — — — Total 15,546 116,444 — 1,752 681 1,282 — — 135,705 Total Pass 2,272,502 2,820,769 1,519,575 1,118,823 694,201 1,103,525 1,878,936 90,898 11,499,229 Special Mention 79 61,502 18,639 6,710 22,140 10,525 18,863 — 138,458 Substandard 2,824 37,101 83,451 40,826 13,618 41,008 — — 218,828 Doubtful — — — — — — — — — Total $ 2,275,405 $ 2,919,372 $ 1,621,665 $ 1,166,359 $ 729,959 $ 1,155,058 $ 1,897,799 $ 90,898 $ 11,856,515 As a % of total gross loans and leases 19.19 % 24.62 % 13.68 % 9.84 % 6.16 % 9.74 % 16.01 % 0.77 % 100.0 % The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses - loans. 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 Company has taken proactive measures to manage loans that became delinquent during the recent economic downturn as a result of the COVID-19 pandemic. No forbearance or deferrals were provided to any borrowers during the three months ended March 31, 2021. The following tables provide the outstanding unpaid balance of loans and leases that are past due 30 days or more by portfolio class as of the dates indicated: March 31, 2021 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Single Family-Mortgage & Warehouse $ 19,348 $ 12,367 $ 83,621 $ 115,336 Multifamily and Commercial Mortgage 6,952 859 25,406 33,217 Commercial Real Estate — — 35,164 35,164 Commercial & Industrial - Non-RE — — 2,960 2,960 Auto & Consumer 1,098 176 331 1,605 Other — — — — Total $ 27,398 $ 13,402 $ 147,482 $ 188,282 As a % of total gross loans and leases 0.23 % 0.11 % 1.24 % 1.59 % June 30, 2020 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Single Family-Mortgage & Warehouse $ 17,931 $ 23,115 $ 66,813 $ 107,859 Multifamily and Commercial Mortgage 7,744 5,287 — 13,031 Commercial Real Estate — — — — Commercial & Industrial - Non-RE — — — — Auto & Consumer 973 166 326 1,465 Other — — — — Total $ 26,648 $ 28,568 $ 67,139 $ 122,355 As a % of total gross loans and leases 0.25 % 0.27 % 0.63 % 1.13 % Allowance for Credit Losses The allowance for credit losses is the sum of the allowance for credit losses - loans and the unfunded loan commitment liabilities. Unfunded loan commitment liabilities is included in “Accounts payable, accrued liabilities and other liabilities” in the unaudited Condensed Consolidated Balance Sheets. The following tables present a summary of the activity in the allowance for credit losses for the periods indicated: Three Months Ended March 31, 2021 (Dollars in thousands) Allowance for Credit Losses - Loans Unfunded Loan Commitment Liabilities Total Allowance for Credit Losses Balance at January 1, 2021 $ 136,393 $ 5,723 $ 142,116 Provision for Credit Losses 2,700 — 2,700 Charge-offs (1,405) — (1,405) Recoveries 419 — 419 Balance at March 31, 2021 $ 138,107 $ 5,723 $ 143,830 Three Months Ended March 31, 2020 (Dollars in thousands) Allowance for Credit Losses - Loans Unfunded Loan Commitment Liabilities Total Allowance for Credit Losses Balance at January 1, 2020 $ 59,514 $ 244 $ 59,758 Provision for Credit Losses 28,500 29 28,529 Charge-offs (1,290) — (1,290) Recoveries 373 — 373 Balance at March 31, 2020 $ 87,097 $ 273 $ 87,370 For the Nine Months Ended March 31, 2021 (Dollars in thousands) Allowance for Credit Losses - Loans Unfunded Loan Commitment Liabilities Total Allowance for Credit Losses Balance at July 1, 2020 $ 75,807 $ 323 $ 76,130 Effect of Adoption of ASC 326 47,300 5,700 53,000 Provision for Credit Losses 22,500 (300) 22,200 Charge-offs (8,553) — (8,553) Recoveries 1,053 — 1,053 Balance at March 31, 2021 $ 138,107 $ 5,723 $ 143,830 For the Nine Months Ended March 31, 2020 (Dollars in thousands) Allowance for Credit Losses - Loans Unfunded Loan Commitment Liabilities Total Allowance for Credit Losses Balance at July 1, 2019 $ 57,085 $ 227 $ 57,312 Provision for Credit Losses 35,700 46 35,746 Charge-offs (7,753) — (7,753) Recoveries 2,065 — 2,065 Balance at March 31, 2020 $ 87,097 $ 273 $ 87,370 |
SUBORDINATED NOTES
SUBORDINATED NOTES | 9 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
SUBORNIDATED NOTES | SUBORDINATED NOTES In September 2020, the Company completed the sale of $175.0 million aggregate principal amount of its 4.875% Fixed-to-Floating Rate Subordinated Notes due October 1, 2030 (the “Notes”). The Notes mature on October 1, 2030 and accrue interest at a fixed rate per annum equal to 4.875%, payable semi-annually in arrears on April 1 and October 1 of each year, commencing on April 1, 2021. From and including October 1, 2025, to, but excluding October 1, 2030 or the date of early redemption, the Notes will bear interest at a floating rate per annum equal to a benchmark rate (which is expected to be the Three-Month Term Secured Overnight Financing Rate) plus a spread of 476 basis points, payable quarterly in arrears on January 1, April 1, July 1 and October 1 of each year, commencing on January 2026. The Notes may be redeemed on or after October 1, 2025, which date may be extended at the Company’s discretion, at a redemption price equal to principal plus accrued and unpaid interest, subject to certain conditions. Fees and costs incurred in connection with the debt offering amortize to interest expense over the term of the Notes. On March 31, 2021, the Company completed the redemption of $51.0 million aggregate principal amount of its 6.25% Subordinated Notes due 2026 (the “Notes 2026”). The Notes 2026 were redeemed for cash by the Company at 100% of their principal amount, plus accrued and unpaid interest, in accordance with the terms of the indenture governing the Notes 2026. Remaining unamortized deferred financing costs associated with such notes were expensed and included under Interest Expense - Other Borrowings in the Condensed Consolidated Statements of Income. |
EQUITY AND STOCK-BASED COMPENSA
EQUITY AND STOCK-BASED COMPENSATION | 9 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [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 and extended the program by $100 million on August 2, 2019. 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. With the March 17, 2016 authorization, the Company repurchased a total of $100 million or 3,567,051 common shares at an average price of $28.03 per share. With the August 2, 2019 authorization, the Company has repurchased a total of $47.2 million or 2,399,853 common shares at an average price of $19.68 per share and there remains $52.8 million under the plan. During the nine months ended March 31, 2021, the Company repurchased a total of $16.8 million, or 753,597 common shares at an average price of $22.24 per share. The Company accounts for treasury stock using the cost method as a reduction of stockholders’ equity in the accompanying unaudited condensed consolidated financial statements. Preferred Stock. The Company redeemed for cash all 515 outstanding shares of Series A-6% Cumulative Nonparticipating Perpetual Preferred Stock on October 30, 2020, at the face value $10,000 liquidation price per share plus accrued dividends. Restricted Stock Units. During the nine months ended March 31, 2021 and 2020, the Company granted 614,406 and 710,032 restricted stock unit awards (“RSUs”) to employees and directors, respectively. RSUs granted generally vest over 3 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 nine months ended March 31, 2021 and 2020 include stock award expense of $15,795 and $16,786, with total income tax benefit of $4,726 and $4,880, 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 March 31, 2021, unrecognized compensation expense related to non-vested awards aggregated to $33,756 and is expected to be recognized in future periods as follows: (Dollars in thousands) Stock Award For the fiscal year remainder: 2021 $ 5,099 2022 15,346 2023 9,534 2024 3,345 2025 331 Thereafter 101 Total $ 33,756 The following table presents the status and changes in restricted stock units for the periods indicated: Restricted Weighted-Average Non-vested balance at June 30, 2019 1,546,848 $ 30.73 Granted 714,569 24.05 Vested (693,660) 28.52 Canceled (122,217) 29.10 Non-vested balance at June 30, 2020 1,445,540 $ 28.62 Granted 614,406 32.03 Vested (499,708) 27.68 Canceled (128,940) 26.31 Non-vested balance at March 31, 2021 1,431,298 $ 30.62 The total fair value of shares vested for the three and nine months ended March 31, 2021 was $8,366 and $16,612. The total fair value of shares vested for the three and nine months ended March 31, 2020 was $2,374 and $11,906. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Mar. 31, 2021 | |
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 and preferred stock redemption charge) 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 unvested stock-based compensation awards issued under the 2014 Stock Incentive Plan, have no stockholder rights, meaning they are not entitled to dividends and are considered nonparticipating. The Company does not include these nonparticipating RSUs in the basic EPS calculation but 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 Nine Months Ended March 31, March 31, (Dollars in thousands, except per share data) 2021 2020 2021 2020 Earnings Per Common Share Net income $ 53,645 $ 56,057 $ 161,452 $ 138,138 Preferred stock dividends — (77) (103) (232) Preferred stock redemption charge — — (87) — Net income attributable to common stockholders $ 53,645 $ 55,980 $ 161,262 $ 137,906 Average common shares outstanding 59,118,884 60,967,892 59,225,409 61,176,715 Total qualifying shares 59,118,884 60,967,892 59,225,409 61,176,715 Earnings per common share $ 0.91 $ 0.92 $ 2.72 $ 2.25 Diluted Earnings Per Common Share Dilutive net income attributable to common stockholders $ 53,645 $ 55,980 $ 161,262 $ 137,906 Average common shares issued and outstanding 59,118,884 60,967,892 59,225,409 61,176,715 Dilutive effect of average unvested RSUs 1,363,849 555,621 1,227,811 635,130 Total dilutive common shares outstanding 60,482,733 61,523,513 60,453,220 61,811,845 Diluted earnings per common share $ 0.89 $ 0.91 $ 2.67 $ 2.23 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES COVID-19 Impact. The Company is closely monitoring the rapid developments of and uncertainties caused by the COVID-19 pandemic. In response to the changes in economic and business conditions as a result of the COVID-19 pandemic, the Company continues to take the following actions to support customers, employees, partners and shareholders: • Actively communicating with borrowers and partners to assess individual needs; • Providing secure and efficient remote work options for our team members; • Adjusting provisions for credit losses; • Tightening underwriting standards; • Reallocating personnel to increase resources for customer service and portfolio management; and • Limiting business travel. Under the guidelines set forth in the CARES Act, the Company had provided certain borrowers the ability to delay or make interest-only payments. Starting on September 30, 2020, the Company no longer allows delayed or interest-only payments. Operating Leases. The Company leases office space under operating lease agreements scheduled to expire at various dates. The following table represents maturities of lease liabilities as of March 31, 2021 in the corresponding fiscal years: (Dollars in thousands) Remainder of 2021 $ 2,443 2022 9,548 2023 9,820 2024 9,422 2025 8,791 Thereafter 41,968 Total lease payments 81,992 Less: amount representing interest (9,949) Total Lease Liability $ 72,043 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 unaudited condensed 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 March 31, 2021, the Company had commitments to originate $72.7 million in fixed rate loans and leases and $614.4 million in variable rate loans, totaling an aggregate outstanding principal balance of $687.1 million. At March 31, 2021, the Company’s fixed rate commitments to originate had a weighted-average rate of 2.75%. At March 31, 2021, the Company also had commitments to sell $112.4 million in fixed rate loans and none in variable rate loans, totaling an aggregate outstanding principal balance of $112.4 million. 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. In the normal course of business, Axos Clearing’s customer activities involve the execution, settlement, and financing of various customer securities transactions. These activities may expose Axos Clearing to off-balance-sheet risk in the event the customer or other broker is unable to fulfill its contracted obligations and Axos Clearing has to purchase or sell the financial instrument underlying the contract at a loss. Axos Clearing’s clearing agreements with broker-dealers for which it provides clearing services requires them to indemnify Axos Clearing if customers fail to satisfy their contractual obligation. Acquisition . On April 20, 2021, the Company announced that it signed a definitive agreement to acquire certain assets and liabilities of E*TRADE Advisor Services, the registered investment advisor custody business Morgan Stanley acquired in its acquisition of E*TRADE Financial Corporation in 2020. The $55 million cash purchase price will be funded with existing capital at Axos Financial, Inc. The Company expects this transaction to close in the third calendar quarter of 2021. Following closing, this transaction will materially increase the Company’s non-interest income and non-interest expense for the Securities Business segment. 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. Subsequently, the plaintiff appealed, the Court overturned the dismissal and the Company is preparing a petition for a rehearing. 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. On December 7, 2018, the Court entered a final order granting the defendants’ motion and dismissing the Mandalevy Case with prejudice. Subsequently, the plaintiff filed a notice of appeal and the Court took the matter under advisement. On November 3, 2020, the Court issued a ruling affirming in part and reversing in part the District Court's Order dismissing the Class Action Second Amended Complaint. The defendants filed a petition for rehearing en banc on November 17, 2020, which petition was denied on December 16, 2020. The defendants filed a motion to dismiss the remanded complaint on February 19, 2021. 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. On October 16, 2018, defendants filed a motion to dismiss the second amended complaint. The Court dismissed the second amended complaint with prejudice on May 23, 2019. Subsequently, the plaintiff filed a notice of appeal and opening brief and the Company filed its answering brief. Oral argument was held September 2, 2020 and the Court took the matter under advisement. 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 | 9 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONSIn the ordinary course of business, the Company has granted related party loans collateralized by real property to certain executive officers, directors and their affiliates. There were three new related party loans for an approximate amount of $2.3 million funded under the provisions of the employee loan program and one refinance of an existing loan for approximately $1.4 million during the nine months ended March 31, 2021. There were three new related party loans in the amount of $4.0 million and one loan refinance of an existing loan of $1.2 million during the nine months ended March 31, 2020. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING There are no material inter-segment sales or transfers. The accounting policies used by each reportable segment are the same as those discussed in Note 1 - “Organizations and Summary of Significant Accounting Policies” in our Annual Report on Form 10-K for the year ended June 30, 2020. All costs, except certain corporate administration costs and income taxes, have been allocated to the reportable segments. Therefore, combined amounts agree to the unaudited condensed consolidated totals. In order to reconcile the two segments to the unaudited condensed consolidated totals, the Company includes parent-only activities and intercompany eliminations. The following tables present the operating results, goodwill, and assets of the segments: For the Three Months Ended March 31, 2021 (Dollars in thousands) Banking Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 135,092 $ 3,847 $ (3,270) $ 135,669 Provision for credit losses 2,700 — — 2,700 Non-interest income 16,201 8,369 (683) 23,887 Non-interest expense 64,040 13,282 3,485 80,807 Income before taxes $ 84,553 $ (1,066) $ (7,438) $ 76,049 For the Three Months Ended March 31, 2020 (Dollars in thousands) Banking Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 145,372 $ 3,954 $ (710) $ 148,616 Provision for credit losses 28,500 — — 28,500 Non-interest income 25,259 6,402 (119) 31,542 Non-interest expense 56,661 11,137 3,992 71,790 Income before taxes $ 85,470 $ (781) $ (4,821) $ 79,868 Nine Months Ended March 31, 2021 (Dollars in thousands) Banking Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 390,267 $ 13,002 $ (6,181) $ 397,088 Provision for credit losses 22,500 — — 22,500 Non-interest income 68,708 20,725 (973) 88,460 Non-interest expense 187,733 35,946 8,971 232,650 Income before taxes $ 248,742 $ (2,219) $ (16,125) $ 230,398 Nine Months Ended March 31, 2020 (Dollars in thousands) Banking Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 350,184 $ 13,137 $ (2,982) $ 360,339 Provision for credit losses 35,700 — — 35,700 Non-interest income 57,274 19,087 (2,076) 74,285 Non-interest expense 160,547 32,656 11,019 204,222 Income before taxes $ 211,211 $ (432) $ (16,077) $ 194,702 As of March 31, 2021 (Dollars in thousands) Banking Business Securities Business Corporate/Eliminations Axos Consolidated Goodwill $ 35,721 $ 35,501 $ — $ 71,222 Total Assets $ 13,423,454 $ 1,317,859 $ 86,561 $ 14,827,874 As of June 30, 2020 (Dollars in thousands) Banking Business Securities Business Corporate/Eliminations Axos Consolidated Goodwill $ 35,721 $ 35,501 $ — $ 71,222 Total Assets $ 13,018,814 $ 737,419 $ 95,667 $ 13,851,900 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Consolidation | The condensed consolidated financial statements include the accounts of Axos Financial, Inc. (“Axos”) and its wholly owned subsidiaries, Axos Bank (the “Bank”) and Axos Nevada Holding, LLC (the “Axos Nevada Holding”) and collectively, the “Company”. Axos Nevada Holding wholly owns its subsidiary Axos Securities, LLC, which wholly owns subsidiaries Axos Clearing LLC (“Axos Clearing”), a clearing broker dealer, Axos Invest, Inc., a registered investment advisor, and Axos Invest LLC, an introducing broker dealer. All significant intercompany balances and transactions have been eliminated in consolidation. |
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 nine months ended March 31, 2021 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”) |
Reclassification | As a result of the change from adopting Accounting Standard Update (“ASU”) 2016-13, “Measurement of Credit Losses on Financial Instruments” and all subsequent amendments that modified ASU 2016-13 (collectively, “ASC 326”) on July 1, 2020, the Company updated categorization of the loan portfolio. For comparability purposes, certain reclassifications have been made to the presentation of loan categories as of June 30, 2020 and as of and for the nine months then ended March 31, 2020 to conform with current presentation adopted under ASC 326. The Company reclassified its loan categories to align with the classes adopted for the measurement of credit losses under ASC 326. The reclassification had no impact on the total loan balances or the allowance for credit losses - loans. |
Allowance for Credit Losses | Allowance for Credit Losses. The allowance for credit losses (“ACL”) is a valuation account that offsets the amortized cost basis of loans and net investment in leases. Under ASC 326, amortized cost is the basis on which the ACL is determined. Amortized cost is principal outstanding, net of any purchase premiums and discounts and net of any deferred loan fees and costs. Credit losses are charged off when the Company believes that collectability of at least some portion of outstanding principal is unlikely. These charge-offs are recorded as a reversal, thereby reducing, the allowance for credit losses. Recoveries on loans previously charged off are recorded as a provision to, thereby increasing, the allowance for credit losses. The allowance for credit losses is maintained at a level needed to absorb expected credit losses over the contractual life, considering the effects of prepayments, of the loan portfolio as of the reporting date. Determining the adequacy of the allowance is complex and requires judgment by Management about the effect of matters that are inherently uncertain. As such, a future assessment of current conditions may require material adjustments to the allowance. The Company’s process for determining expected life-time credit losses entails a loan-level, model-based approach and requires consideration of a broad range of relevant information relating to historical loss experience, current economic conditions as well as reasonable and supportable forecasts. A credit loss is estimated for all loans. Consequently, the Company stratifies the full loan population into segments sharing similar characteristics to perform the evaluation of the credit loss collectively. The Company defines a segment as the level at which the Company develops a systematic methodology to determine the allowance for credit losses. Additionally, the Company can further stratify loans of similar type, risk attributes and methods for monitoring credit risk. The Company categorizes the loan portfolio into six segments: Single Family - Mortgage & Warehouse, Multifamily and Commercial Mortgage, Commercial Real Estate, Commercial & Industrial - Non Real Estate, Auto & Consumer and Other – refer to Note 4 – “Loans & Allowance for Credit Losses” for further detail of the segments and classes within. The method for estimating expected life-time credit losses includes, among other things, the following main components: 1) The use of a probability of default (“PD”)/loss given default (“LGD”) model; 2) defining a number of economic scenarios across the benign to adverse spectrum; 3) an initial and reasonable forecast period of one year for all loan segments; and 4) a reversion period of 18 months using a linear transition to historical loss rates for each loan pool. After the reversion period, the historical loss rate is applied over the remaining contractual life of loan. Given the inherent limitations of a solely quantitative model, qualitative adjustments are included to arrive at the ending calculated loss amount in order to account for data points not captured from quantitative inputs alone. Qualitative criteria we consider includes, among other things, the following: • Regulatory and Legal - matters that may impact the timeliness and/or amounts of repayments; • Concentration - portfolio composition and loan concentration; • Collateral Dependency - changes in collateral values; • Lending/Underwriting Standards - current lending policies and the effects of any new policies; • Nature and Volume - loan production volume and mix; • Loan Trends - credit performance trends, including a borrower’s financial condition and credit rating. On a quarterly basis, Management convenes a Credit Review meeting in which current information and trends are collectively assessed to forecast future economic impact for purposes of assessing the adequacy of the ACL. The forecasted direction and magnitude of change with respect to future economic conditions is then assessed against the estimate in the model. Accrued Interest. Accrued interest receivable is excluded from amortized cost and is presented separately in “Other Assets” on the unaudited Condensed Consolidated Balance Sheets. Additionally, the Company does not estimate an allowance for credit losses on accrued interest receivable as the Company has a policy to charge off accrued interest deemed uncollectible in a timely manner. When a loan is placed on non-accrual status, which occurs when a borrower becomes delinquent by 90 days, interest previously accrued, but not collected, is reversed against current period interest income. Individually Assessed Loans. Credit loss is estimated for any individual loan on a collective basis, unless an individual loan’s credit characteristics has deteriorated below a range of the overall group, in which case the loan would then be individually assessed. Individually assessed loans are measured for credit loss based on present value of future expected cash flows, discounted at the loan’s effective interest rate or the fair value of the collateral, less estimated selling costs, if the loan is collateral-dependent. Available-for-Sale Debt Securities. Unrealized credit losses will be recognized through an allowance for credit losses instead of an adjustment to amortized cost basis, eliminating the other-than-temporary impairment concept. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not, that it will be required to sell the security before recovery of its amortized cost basis. If either criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through earnings. For available-for-sale debt securities that do not meet the above conditions, the Company evaluates at the individual security level whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, Management considers the extent to which fair value is less than amortized cost and unfavorable conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recognized for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. All other changes in fair value of the security that have not been recognized through an allowance for credit losses are recognized in other comprehensive income. Changes in the allowance for credit losses, if any, are recognized as a provision for (or reversal of) credit losses. Losses are charged against the allowance when management believes an available-for-sale investment security is uncollectible or when either of the criteria regarding intent or requirement to sell is met. Loan Commitments. Loans commitments not unconditionally cancellable are subject to an estimate of credit loss under a current expected credit loss model. The Company’s process for determining the estimate of credit loss on loan commitments is the same as it is on loans. Refer to detail of Allowance on Credit Losses above. |
New Accounting Standards | New Accounting Standards Accounting Standards Adopted During Fiscal 2021 Financial Instruments. Credit Losses . On July 1, 2020, the Company adopted ASC 326. The update replaces incurred loss models based on the probable recognition threshold with a current expected credit loss model to estimate all credit losses over the contractual life for financial instruments carried at amortized cost and certain off-balance sheet credit exposures, such as loan commitments. The new model requires consideration of a broader range of relevant information, such as historical loss experience, current economic conditions and reasonable and supportable forecasts. The change will generally result in earlier, accelerated loss recognition. For available-for-sale debt securities, unrealized credit losses will be recognized through an allowance for credit losses rather than as adjustment to amortized cost basis, eliminating the other-than-temporary impairment concept. No credit loss adjustment on available-for-sale debt securities resulted upon adoption of ASC 326. The Company adopted this standard using the modified retrospective transition method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Prior period amounts are not retroactively adjusted. A prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date. |
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. ASC Topic 820, Fair Value Measurement |
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 and preferred stock redemption charge) 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 unvested stock-based compensation awards issued under the 2014 Stock Incentive Plan, have no stockholder rights, meaning they are not entitled to dividends and are considered nonparticipating. The Company does not include these nonparticipating RSUs in the basic EPS calculation but are included in the diluted EPS calculation using the treasury stock method. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Impact of Adoption of ASC 326 | Loans and Leases - Carrying Amount (Dollars in thousands) Single Family Real Estate Secured - Mortgage Single Family Real Estate Secured - Warehouse Single Family Real Estate Secured - Financing Multifamily Real Estate Secured - Mortgage and Financing Commercial Real Estate - Mortgage Commercial & Industrial Auto & RV - Secured Other Total Balance July 1, 2020 Pre-ASC 326 Adoption $4,244,563 $474,318 $682,477 $2,303,216 $371,176 $2,094,322 $291,452 $241,918 $10,703,442 Commercial Real Estate - Mortgage to Multifamily and Commercial Mortgage — — — 371,176 (371,176) — — — — Multifamily and Single Family Financing loans to Commercial Real Estate — — (679,054) (411,338) 1,090,392 — — — — Real estate secured Commercial & Industrial to Commercial Real Estate — — — — 1,207,528 (1,207,528) — — — Unsecured Consumer loans to Auto & Consumer — — — — — — 49,913 (49,913) — Single Family Warehouse and Mortgage combined 477,741 (474,318) (3,423) — — — — — — Other reclassifications — — — — — (1,474) — 1,474 — Balance July 1, 2020 Post ASC 326 Adoption $4,722,304 $— $— $2,263,054 $2,297,920 $885,320 $341,365 $193,479 $10,703,442 Loan Category Post- ASC 326 Single Family - Mortgage & Warehouse N/A N/A Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non RE Auto & Consumer Other Total Allowance for Credit Losses (Dollars in thousands) Single Family Real Estate Secured - Mortgage Single Family Real Estate Secured - Warehouse Single Family Real Estate Secured - Financing Multifamily Real Estate Secured - Mortgage and Financing Commercial Real Estate - Mortgage Commercial & Industrial Auto & RV - Secured Other Total Balance July 1, 2020 Pre-ASC 326 Adoption $24,041 $1,860 $5,094 $6,318 $1,456 $22,863 $5,738 $8,437 $75,807 Reclassification 1,860 (1,860) (5,094) (1,600) 19,596 (12,909) 3,723 (3,716) — Balance July 1, 2020 Post Reclassification $25,901 $— $— $4,718 $21,052 $9,954 $9,461 $4,721 $75,807 Loan Category Post-ASC 326 Adoption Single Family - Mortgage & Warehouse N/A N/A Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non RE Auto & Consumer Other Total |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and June 30, 2020. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: March 31, 2021 (Dollars in thousands) Quoted Prices in Significant Other Significant Total ASSETS: Securities—Trading: Municipal $ — $ 254 $ — $ 254 Securities—Available-for-Sale: Agency Debt 1 $ — $ 1,800 $ — $ 1,800 Agency RMBS 1 — 17,918 — 17,918 Non-Agency RMBS 2 — — 17,377 17,377 Municipal — 3,521 — 3,521 Asset-backed securities and structured notes — 178,346 — 178,346 Total—Securities—Available-for-Sale $ — $ 201,585 $ 17,377 $ 218,962 Loans Held for Sale $ — $ 61,500 $ — $ 61,500 Mortgage servicing rights $ — $ — $ 16,631 $ 16,631 Other assets—Derivative instruments $ — $ — $ 8,595 $ 8,595 LIABILITIES: Other liabilities—Derivative instruments $ — $ — $ 1,767 $ 1,767 June 30, 2020 (Dollars in thousands) Quoted Prices in Significant Other Significant Total ASSETS: Securities—Trading: Municipal $ — $ 105 $ — $ 105 Securities—Available-for-Sale: Agency Debt 1 $ — $ 1,799 $ — $ 1,799 Agency RMBS 1 — 16,826 — 16,826 Non-Agency RMBS 2 — — 18,332 18,332 Municipal — 10,400 — 10,400 Asset-backed securities and structured notes — 140,270 — 140,270 Total—Securities—Available-for-Sale $ — $ 169,295 $ 18,332 $ 187,627 Loans Held for Sale $ — $ 51,995 $ — $ 51,995 Mortgage servicing rights $ — $ — $ 10,675 $ 10,675 Other assets—Derivative instruments $ — $ — $ 9,131 $ 9,131 LIABILITIES: Other liabilities—Derivative instruments $ — $ — $ 1,715 $ 1,715 1 Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac. 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 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 March 31, 2021 (Dollars in thousands) Securities – Available-for-Sale: Non-Agency RMBS Mortgage Servicing Rights Derivative Instruments, net Total Opening balance $ 17,135 $ 14,314 $ 7,979 $ 39,428 Included in earnings—Mortgage banking income — (1,221) (1,151) (2,372) Included in other comprehensive income 913 — — 913 Purchases, originations, issues, sales and settlements: Purchases/originations — 3,538 — 3,538 Settlements (671) — — (671) Closing balance $ 17,377 $ 16,631 $ 6,828 $ 40,836 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ (1,221) $ (1,151) $ (2,372) For the Nine Months Ended March 31, 2021 (Dollars in thousands) Securities – Available-for-Sale: Non-Agency RMBS Mortgage Servicing Rights Derivative Instruments, net Total Opening Balance $ 18,332 $ 10,675 $ 7,416 $ 36,423 Included in earnings—Mortgage banking income — (5,266) (588) (5,854) Included in other comprehensive income 607 — — 607 Purchases, originations, issues, sales and settlements: Purchases/originations — 11,222 — 11,222 Settlements (1,562) — — (1,562) Closing balance $ 17,377 $ 16,631 $ 6,828 $ 40,836 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ (5,266) $ (588) $ (5,854) For the Three Months Ended March 31, 2020 (Dollars in thousands) Securities – Available-for-Sale: Non-Agency RMBS Mortgage Servicing Rights Derivative Instruments, net Total Opening balance $ 12,787 $ 11,262 $ 1,017 $ 25,066 Included in earnings—Mortgage banking income — (2,597) 1,631 (966) Included in other comprehensive income (548) — — (548) Purchases, originations, issues, sales and settlements: Purchases/originations — 1,297 — 1,297 Settlements (533) — — (533) Closing balance $ 11,706 $ 9,962 $ 2,648 $ 24,316 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ (2,597) $ 1,631 $ (966) For the Nine Months Ended March 31, 2020 (Dollars in thousands) Securities – Available-for-Sale: Non-Agency RMBS Mortgage Servicing Rights Derivative Instruments, net Total Opening Balance $ 13,025 $ 9,784 $ 1,246 $ 24,055 Total gains or losses for the period: Included in earnings—Mortgage banking income — (3,869) 1,402 (2,467) Included in other comprehensive income 292 — — 292 Purchases, originations, issues, sales and settlements: Purchases/originations — 4,047 — 4,047 Settlements (1,611) — — (1,611) Closing balance $ 11,706 $ 9,962 $ 2,648 $ 24,316 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ (3,869) $ 1,402 $ (2,467) |
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: March 31, 2021 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Securities – Non-agency RMBS $ 17,377 Discounted Cash Flow Projected Constant Prepayment Rate, 1.5 to 44.5% (8.8%) 1.5 to 6.3% (1.6%) 40.0 to 100.0% (76.9%) 2.7 to 7.0% (4.2%) Mortgage Servicing Rights $ 16,631 Discounted Cash Flow Projected Constant Prepayment Rate, 7.7 to 72.2% (12.0%) 0.7 to 7.8 (6.4) 9.5 to 14.0% (9.7%) Derivative Instruments $ 6,828 Sales Comparison Approach Projected Sales Profit of Underlying Loans 0.2 to 0.4% (0.2%) June 30, 2020 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Securities – Non-agency RMBS $ 18,332 Discounted Cash Flow Projected Constant Prepayment Rate, 2.5 to 47.9% (26.1%) 0.5 to 4.5% (2.0%) 35.0 to 68.4% (50.1%) 2.9 to 9.4% (5.0%) Mortgage Servicing Rights $ 10,675 Discounted Cash Flow Projected Constant Prepayment Rate, 4.7 to 39.6% (11.4%) 1.6 to 7.7 (6.2) 9.5 to 14.0% (9.8%) Derivative Instruments $ 7,416 Sales Comparison Approach Projected Sales Profit of Underlying Loans (0.3) to 0.8% (0.2%) 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: March 31, 2021 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Input Range (Weighted Average) 1 Other real estate owned and foreclosed assets: Single family real estate $ 6,538 Sales comparison approach Adjustment for differences between the comparable sales (3.7) to 1.7% ((0.2)%) Autos and RVs $ 266 Sales comparison approach Adjustment for differences between the comparable sales 0.0 to 19.7% (0.0%) June 30, 2020 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Input Range (Weighted Average) 1 Other real estate owned and foreclosed assets: Single family real estate $ 6,114 Sales comparison approach Adjustment for differences between the comparable sales 18.7 to 18.7% (18.7%) Autos and RVs $ 294 Sales comparison approach Adjustment for differences between the comparable sales (24.6) to 44.2% (2.8%) 1 For 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: March 31, 2021 (Dollars in thousands) Quoted Prices in Significant Other Significant Balance Other real estate owned and foreclosed assets: Single family real estate $ — $ — $ 6,538 $ 6,538 Autos and RVs — — 266 266 Total $ — $ — $ 6,804 $ 6,804 June 30, 2020 (Dollars in thousands) Quoted Prices in Significant Other Significant Balance Other real estate owned and foreclosed assets: Single family real estate $ — $ — $ 6,114 $ 6,114 Autos and RVs — — 294 294 Total $ — $ — $ 6,408 $ 6,408 |
Schedule of Aggregate Fair Value, Contractual Balance, and Gains of Loans Held For Sale | As of March 31, 2021 and June 30, 2020, the aggregate fair value of loans held for sale, carried at fair value, contractual balance (including accrued interest), and unrealized gain was as follows: (Dollars in thousands) March 31, 2021 June 30, 2020 Aggregate fair value $ 61,500 $ 51,995 Contractual balance 59,985 49,700 Unrealized gain $ 1,515 $ 2,295 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 For the Nine Months Ended March 31, March 31, (Dollars in thousands) 2021 2020 2021 2020 Interest income $ 387 $ 216 $ 1,189 $ 812 Change in fair value (1,829) 2,228 (1,369) 1,976 Total $ (1,442) $ 2,444 $ (180) $ 2,788 |
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 March 31, 2021 and June 30, 2020 were as follows: March 31, 2021 Fair Value (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 1,442,955 $ 1,442,955 $ — $ — $ 1,442,955 Securities — trading 254 — 254 — 254 Securities — available-for-sale 218,962 — 201,585 17,377 218,962 Loans held for sale, at fair value 61,500 — 61,500 — 61,500 Loans held for sale, at lower of cost or fair value 13,371 — — 13,416 13,416 Loans and leases held for investment—net 11,711,215 — — 12,138,239 12,138,239 Securities borrowed 543,538 — — 543,755 543,755 Customer, broker-dealer and clearing receivables 351,063 — — 351,063 351,063 Mortgage servicing rights 16,631 — — 16,631 16,631 Financial liabilities: Total deposits 11,612,501 — 11,314,340 — 11,314,340 Advances from the Federal Home Loan Bank 172,500 — 173,682 — 173,682 Borrowings, subordinated notes and debentures 365,753 — 360,454 — 360,454 Securities loaned 649,837 — — 652,111 652,111 Customer, broker-dealer and clearing payables 483,677 — — 483,677 483,677 June 30, 2020 Fair Value (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 1,950,519 $ 1,950,519 $ — $ — $ 1,950,519 Securities — trading 105 — 105 — 105 Securities — available-for-sale 187,627 — 169,295 18,332 187,627 Loans held for sale, at fair value 51,995 — 51,995 — 51,995 Loans held for sale, at lower of cost or fair value 44,565 — — 44,625 44,625 Loans and leases held for investment—net 10,631,349 — — 11,138,255 11,138,255 Securities borrowed 222,368 — — 222,613 222,613 Customer, broker-dealer and clearing receivables 220,266 — — 220,464 220,464 Mortgage servicing rights 10,675 — — 10,675 10,675 Financial liabilities: Total deposits 11,336,694 — 11,088,447 — 11,088,447 Advances from the Federal Home Loan Bank 242,500 — 254,114 — 254,114 Borrowings, subordinated notes and debentures 235,789 — 234,445 — 234,445 Securities loaned 255,945 — — 256,790 256,790 Customer, broker-dealer and clearing payables 347,614 — — 347,614 347,614 |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
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 trading and available-for-sale securities at March 31, 2021 and June 30, 2020 were: March 31, 2021 Trading Available-for-sale (Dollars in thousands) Fair Amortized Unrealized Unrealized Fair Mortgage-backed securities (RMBS): U.S. agencies 1 $ — $ 17,763 $ 362 $ (207) $ 17,918 Non-agency 2 — 16,618 1,409 (650) 17,377 Total mortgage-backed securities — 34,381 1,771 (857) 35,295 Non-RMBS: U.S. agencies 1 — 1,800 — — 1,800 Municipal 254 3,436 85 — 3,521 Asset-backed securities and structured notes — 175,147 3,199 — 178,346 Total Non-RMBS 254 180,383 3,284 — 183,667 Total debt securities $ 254 $ 214,764 $ 5,055 $ (857) $ 218,962 June 30, 2020 Trading Available-for-sale (Dollars in thousands) Fair Amortized Unrealized Unrealized Fair Mortgage-backed securities (RMBS): U.S. agencies 1 $ — $ 16,192 $ 634 $ — $ 16,826 Non-agency 2 — 18,180 1,024 (872) 18,332 Total mortgage-backed securities — 34,372 1,658 (872) 35,158 Non-RMBS: U.S. agencies 1 — 1,799 — — 1,799 Municipal 105 10,550 44 (194) 10,400 Asset-backed securities and structured notes — 141,338 1 (1,069) 140,270 Total Non-RMBS 105 153,687 45 (1,263) 152,469 Total debt securities $ 105 $ 188,059 $ 1,703 $ (2,135) $ 187,627 1 Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac. 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: March 31, 2021 Available-for-sale securities in loss position for Less Than More Than Total (Dollars in thousands) Fair Gross Fair Gross Fair Gross RMBS: U.S. agencies $ 7,929 $ (207) $ — $ — $ 7,929 $ (207) Non-agency — — 6,206 (650) 6,206 (650) Total RMBS securities 7,929 (207) 6,206 (650) 14,135 (857) Non-RMBS: U.S. agencies — — — — — — Total Non-RMBS — — — — — — Total debt securities $ 7,929 $ (207) $ 6,206 $ (650) $ 14,135 $ (857) June 30, 2020 Available-for-sale securities in loss position for Less Than More Than Total (Dollars in thousands) Fair Gross Fair Gross Fair Gross RMBS: U.S. agencies $ 85 $ — $ — $ — $ 85 $ — Non-agency — — 6,978 (872) 6,978 (872) Total RMBS securities 85 — 6,978 (872) 7,063 (872) Non-RMBS: Municipal debt — — 2,002 (194) 2,002 (194) Asset-backed securities and structured notes 139,883 (1,069) — — 139,883 (1,069) Total Non-RMBS 139,883 (1,069) 2,002 (194) 141,885 (1,263) Total debt securities $ 139,968 $ (1,069) $ 8,980 $ (1,066) $ 148,948 $ (2,135) |
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) March 31, June 30, Available-for-sale debt securities—net unrealized gains (losses) $ 4,198 $ (432) Available-for-sale debt securities—non-credit related losses (845) (845) Subtotal 3,353 (1,277) Tax benefit (expense) (1,060) 340 Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss) $ 2,293 $ (937) |
LOANS & ALLOWANCE FOR CREDIT _2
LOANS & ALLOWANCE FOR CREDIT LOSSES (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Composition of the Loan Portfolio | The following table(s) sets forth the composition of the loan portfolio as of the dates indicated: (Dollars in thousands) March 31, 2021 June 30, 2020 Single Family - Mortgage & Warehouse $ 4,899,188 $ 4,722,304 Multifamily and Commercial Mortgage 2,424,185 2,263,054 Commercial Real Estate 3,042,896 2,297,920 Commercial & Industrial - Non-RE 1,030,879 885,320 Auto & Consumer 323,662 341,365 Other 135,705 193,479 Total gross loans and leases 11,856,515 10,703,442 Allowance for credit losses - loans (138,107) (75,807) Unaccreted premiums (discounts) and loan and lease fees (7,193) 3,714 Total net loans and leases $ 11,711,215 $ 10,631,349 |
Schedule of Allowance for Credit Losses on Financing Receivables | The following tables summarize activity in the allowance for credit losses - loans by portfolio classes for the periods indicated. For the Three Months Ended March 31, 2021 (Dollars in thousands) Single Family-Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Balance at January 1, 2021 $ 32,727 $ 12,889 $ 56,715 $ 19,129 $ 7,413 $ 7,520 $ 136,393 Provision (benefit) for credit losses - loans (2,785) 704 (133) 4,506 317 91 2,700 Charge-offs (110) (177) (255) — (863) — (1,405) Recoveries 83 — — 18 318 — 419 Balance at March 31, 2021 $ 29,915 $ 13,416 $ 56,327 $ 23,653 $ 7,185 $ 7,611 $ 138,107 For the Three Months Ended March 31, 2020 (Dollars in thousands) Single Family-Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Balance at January 1, 2020 $ 21,662 $ 4,045 $ 12,691 $ 12,126 $ 7,168 $ 1,822 $ 59,514 Provision for credit losses - loans 706 592 5,344 214 3,869 17,775 28,500 Charge-offs — — — — (1,290) — (1,290) Recoveries 62 — — — 271 40 373 Balance at March 31, 2020 $ 22,430 $ 4,637 $ 18,035 $ 12,340 $ 10,018 $ 19,637 $ 87,097 For the Nine Months Ended March 31, 2021 (Dollars in thousands) Single Family-Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Balance at July 1, 2020 $ 25,901 $ 4,718 $ 21,052 $ 9,954 $ 9,461 $ 4,721 $ 75,807 Effect of Adoption of ASC 326 6,318 7,408 25,893 7,042 610 29 47,300 Provision (benefit) for credit losses - loans 47 1,467 9,637 9,472 (984) 2,861 22,500 Charge-offs (2,469) (177) (255) (2,833) (2,819) — (8,553) Recoveries 118 — — 18 917 — 1,053 Balance at March 31, 2021 $ 29,915 $ 13,416 $ 56,327 $ 23,653 $ 7,185 $ 7,611 $ 138,107 For the Nine Months Ended March 31, 2020 (Dollars in thousands) Single Family-Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Balance at July 1, 2019 $ 22,290 $ 3,807 $ 14,632 $ 9,544 $ 6,339 $ 473 $ 57,085 Provision for credit losses - loans 50 711 3,403 2,796 6,620 22,120 35,700 Charge-offs (151) — — — (3,420) (4,182) (7,753) Recoveries 241 119 — — 479 1,226 2,065 Balance at March 31, 2020 $ 22,430 $ 4,637 $ 18,035 $ 12,340 $ 10,018 $ 19,637 $ 87,097 The following tables present a summary of the activity in the allowance for credit losses for the periods indicated: Three Months Ended March 31, 2021 (Dollars in thousands) Allowance for Credit Losses - Loans Unfunded Loan Commitment Liabilities Total Allowance for Credit Losses Balance at January 1, 2021 $ 136,393 $ 5,723 $ 142,116 Provision for Credit Losses 2,700 — 2,700 Charge-offs (1,405) — (1,405) Recoveries 419 — 419 Balance at March 31, 2021 $ 138,107 $ 5,723 $ 143,830 Three Months Ended March 31, 2020 (Dollars in thousands) Allowance for Credit Losses - Loans Unfunded Loan Commitment Liabilities Total Allowance for Credit Losses Balance at January 1, 2020 $ 59,514 $ 244 $ 59,758 Provision for Credit Losses 28,500 29 28,529 Charge-offs (1,290) — (1,290) Recoveries 373 — 373 Balance at March 31, 2020 $ 87,097 $ 273 $ 87,370 For the Nine Months Ended March 31, 2021 (Dollars in thousands) Allowance for Credit Losses - Loans Unfunded Loan Commitment Liabilities Total Allowance for Credit Losses Balance at July 1, 2020 $ 75,807 $ 323 $ 76,130 Effect of Adoption of ASC 326 47,300 5,700 53,000 Provision for Credit Losses 22,500 (300) 22,200 Charge-offs (8,553) — (8,553) Recoveries 1,053 — 1,053 Balance at March 31, 2021 $ 138,107 $ 5,723 $ 143,830 For the Nine Months Ended March 31, 2020 (Dollars in thousands) Allowance for Credit Losses - Loans Unfunded Loan Commitment Liabilities Total Allowance for Credit Losses Balance at July 1, 2019 $ 57,085 $ 227 $ 57,312 Provision for Credit Losses 35,700 46 35,746 Charge-offs (7,753) — (7,753) Recoveries 2,065 — 2,065 Balance at March 31, 2020 $ 87,097 $ 273 $ 87,370 |
Schedule of Nonaccrual Loans | Nonaccrual loans consisted of the following as of the dates indicated: As of March 31, 2021 (Dollars in thousands) With Allowance With No Allowance Total Single Family - Mortgage & Warehouse $ 51,628 $ 33,415 $ 85,043 Multifamily and Commercial Mortgage 25,275 5,469 30,744 Commercial Real Estate 16,414 — 16,414 Commercial & Industrial - Non-RE 2,942 18 2,960 Auto & Consumer 392 54 446 Total nonaccrual loans $ 96,651 $ 38,956 $ 135,607 Nonaccrual loans to total loans 1.14 % |
Schedule of Outstanding Principal Balance on Loans Performing and Nonaccrual | The following tables present the outstanding unpaid balance of loans that are performing and nonaccrual by portfolio class: March 31, 2021 (Dollars in thousands) Single Family-Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Performing $ 4,814,145 $ 2,393,441 $ 3,026,482 $ 1,027,919 $ 323,216 $ 135,705 $ 11,720,908 Nonaccrual 85,043 30,744 16,414 2,960 446 — 135,607 Total $ 4,899,188 $ 2,424,185 $ 3,042,896 $ 1,030,879 $ 323,662 $ 135,705 $ 11,856,515 June 30, 2020 (Dollars in thousands) Single Family-Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Performing $ 4,638,274 $ 2,259,629 $ 2,297,920 $ 885,107 $ 341,092 $ 193,479 $ 10,615,501 Nonaccrual 84,030 3,425 — 213 273 — 87,941 Total $ 4,722,304 $ 2,263,054 $ 2,297,920 $ 885,320 $ 341,365 $ 193,479 $ 10,703,442 |
Schedule of Composition of Loan and Lease Portfolio by Credit Quality Indicators | The amortized cost basis by fiscal year of origination and credit quality indicator of the Company’s loan and leases as of March 31, 2021 was as follows: Loans Held for Investment Origination Year Revolving Loans Revolving Loans Converted to Loans HFI Total (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Single Family-Mortgage & Warehouse Pass $ 728,933 $ 863,897 $ 582,138 $ 545,832 $ 408,071 $ 662,523 $ 951,752 $ — $ 4,743,146 Special Mention 79 10,389 4,639 5,364 9,927 9,895 16,330 — 56,623 Substandard — 4,342 23,248 19,107 13,547 39,175 — — 99,419 Doubtful — — — — — — — — — Total 729,012 878,628 610,025 570,303 431,545 711,593 968,082 — 4,899,188 Multifamily and Commercial Mortgage Pass 417,032 594,368 442,501 332,436 208,758 366,914 — — 2,362,009 Special Mention — 26,225 1,400 1,333 992 630 — — 30,580 Substandard — 24,323 1,084 4,385 — 1,804 — — 31,596 Doubtful — — — — — — — — — Total 417,032 644,916 444,985 338,154 209,750 369,348 — — 2,424,185 Commercial Real Estate Pass 976,356 1,052,529 395,334 169,804 45,701 63,750 216,189 — 2,919,663 Special Mention — 24,842 12,473 — 11,221 — 2,533 — 51,069 Substandard — — 55,750 16,414 — — — — 72,164 Doubtful — — — — — — — — — Total 976,356 1,077,371 463,557 186,218 56,922 63,750 218,722 — 3,042,896 Commercial & Industrial - Non-RE Pass 50,084 110,720 18,262 30,901 11,629 — 710,995 90,898 1,023,489 Special Mention — — — — — — — — — Substandard 2,824 800 2,942 810 14 — — — 7,390 Doubtful — — — — — — — — — Total 52,908 111,520 21,204 31,711 11,643 — 710,995 90,898 1,030,879 Auto & Consumer Pass 84,551 90,098 81,340 38,098 19,361 9,056 — — 322,504 Special Mention — 46 127 13 — — — — 186 Substandard — 349 427 110 57 29 — — 972 Doubtful — — — — — — — — — Total 84,551 90,493 81,894 38,221 19,418 9,085 — — 323,662 Other Pass 15,546 109,157 — 1,752 681 1,282 — — 128,418 Special Mention — — — — — — — — — Substandard — 7,287 — — — — — — 7,287 Doubtful — — — — — — — — — Total 15,546 116,444 — 1,752 681 1,282 — — 135,705 Total Pass 2,272,502 2,820,769 1,519,575 1,118,823 694,201 1,103,525 1,878,936 90,898 11,499,229 Special Mention 79 61,502 18,639 6,710 22,140 10,525 18,863 — 138,458 Substandard 2,824 37,101 83,451 40,826 13,618 41,008 — — 218,828 Doubtful — — — — — — — — — Total $ 2,275,405 $ 2,919,372 $ 1,621,665 $ 1,166,359 $ 729,959 $ 1,155,058 $ 1,897,799 $ 90,898 $ 11,856,515 As a % of total gross loans and leases 19.19 % 24.62 % 13.68 % 9.84 % 6.16 % 9.74 % 16.01 % 0.77 % 100.0 % |
Schedule of Past Due Loan and Leases | The following tables provide the outstanding unpaid balance of loans and leases that are past due 30 days or more by portfolio class as of the dates indicated: March 31, 2021 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Single Family-Mortgage & Warehouse $ 19,348 $ 12,367 $ 83,621 $ 115,336 Multifamily and Commercial Mortgage 6,952 859 25,406 33,217 Commercial Real Estate — — 35,164 35,164 Commercial & Industrial - Non-RE — — 2,960 2,960 Auto & Consumer 1,098 176 331 1,605 Other — — — — Total $ 27,398 $ 13,402 $ 147,482 $ 188,282 As a % of total gross loans and leases 0.23 % 0.11 % 1.24 % 1.59 % June 30, 2020 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Single Family-Mortgage & Warehouse $ 17,931 $ 23,115 $ 66,813 $ 107,859 Multifamily and Commercial Mortgage 7,744 5,287 — 13,031 Commercial Real Estate — — — — Commercial & Industrial - Non-RE — — — — Auto & Consumer 973 166 326 1,465 Other — — — — Total $ 26,648 $ 28,568 $ 67,139 $ 122,355 As a % of total gross loans and leases 0.25 % 0.27 % 0.63 % 1.13 % |
EQUITY AND STOCK-BASED COMPEN_2
EQUITY AND STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Unrecognized Compensation Expense Related to Non-vested Awards To be Recognized in the Future | At March 31, 2021, unrecognized compensation expense related to non-vested awards aggregated to $33,756 and is expected to be recognized in future periods as follows: (Dollars in thousands) Stock Award For the fiscal year remainder: 2021 $ 5,099 2022 15,346 2023 9,534 2024 3,345 2025 331 Thereafter 101 Total $ 33,756 |
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 Weighted-Average Non-vested balance at June 30, 2019 1,546,848 $ 30.73 Granted 714,569 24.05 Vested (693,660) 28.52 Canceled (122,217) 29.10 Non-vested balance at June 30, 2020 1,445,540 $ 28.62 Granted 614,406 32.03 Vested (499,708) 27.68 Canceled (128,940) 26.31 Non-vested balance at March 31, 2021 1,431,298 $ 30.62 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
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 Nine Months Ended March 31, March 31, (Dollars in thousands, except per share data) 2021 2020 2021 2020 Earnings Per Common Share Net income $ 53,645 $ 56,057 $ 161,452 $ 138,138 Preferred stock dividends — (77) (103) (232) Preferred stock redemption charge — — (87) — Net income attributable to common stockholders $ 53,645 $ 55,980 $ 161,262 $ 137,906 Average common shares outstanding 59,118,884 60,967,892 59,225,409 61,176,715 Total qualifying shares 59,118,884 60,967,892 59,225,409 61,176,715 Earnings per common share $ 0.91 $ 0.92 $ 2.72 $ 2.25 Diluted Earnings Per Common Share Dilutive net income attributable to common stockholders $ 53,645 $ 55,980 $ 161,262 $ 137,906 Average common shares issued and outstanding 59,118,884 60,967,892 59,225,409 61,176,715 Dilutive effect of average unvested RSUs 1,363,849 555,621 1,227,811 635,130 Total dilutive common shares outstanding 60,482,733 61,523,513 60,453,220 61,811,845 Diluted earnings per common share $ 0.89 $ 0.91 $ 2.67 $ 2.23 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Maturities of Lease Liabilities | Operating Leases. The Company leases office space under operating lease agreements scheduled to expire at various dates. The following table represents maturities of lease liabilities as of March 31, 2021 in the corresponding fiscal years: (Dollars in thousands) Remainder of 2021 $ 2,443 2022 9,548 2023 9,820 2024 9,422 2025 8,791 Thereafter 41,968 Total lease payments 81,992 Less: amount representing interest (9,949) Total Lease Liability $ 72,043 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables present the operating results, goodwill, and assets of the segments: For the Three Months Ended March 31, 2021 (Dollars in thousands) Banking Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 135,092 $ 3,847 $ (3,270) $ 135,669 Provision for credit losses 2,700 — — 2,700 Non-interest income 16,201 8,369 (683) 23,887 Non-interest expense 64,040 13,282 3,485 80,807 Income before taxes $ 84,553 $ (1,066) $ (7,438) $ 76,049 For the Three Months Ended March 31, 2020 (Dollars in thousands) Banking Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 145,372 $ 3,954 $ (710) $ 148,616 Provision for credit losses 28,500 — — 28,500 Non-interest income 25,259 6,402 (119) 31,542 Non-interest expense 56,661 11,137 3,992 71,790 Income before taxes $ 85,470 $ (781) $ (4,821) $ 79,868 Nine Months Ended March 31, 2021 (Dollars in thousands) Banking Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 390,267 $ 13,002 $ (6,181) $ 397,088 Provision for credit losses 22,500 — — 22,500 Non-interest income 68,708 20,725 (973) 88,460 Non-interest expense 187,733 35,946 8,971 232,650 Income before taxes $ 248,742 $ (2,219) $ (16,125) $ 230,398 Nine Months Ended March 31, 2020 (Dollars in thousands) Banking Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 350,184 $ 13,137 $ (2,982) $ 360,339 Provision for credit losses 35,700 — — 35,700 Non-interest income 57,274 19,087 (2,076) 74,285 Non-interest expense 160,547 32,656 11,019 204,222 Income before taxes $ 211,211 $ (432) $ (16,077) $ 194,702 As of March 31, 2021 (Dollars in thousands) Banking Business Securities Business Corporate/Eliminations Axos Consolidated Goodwill $ 35,721 $ 35,501 $ — $ 71,222 Total Assets $ 13,423,454 $ 1,317,859 $ 86,561 $ 14,827,874 As of June 30, 2020 (Dollars in thousands) Banking Business Securities Business Corporate/Eliminations Axos Consolidated Goodwill $ 35,721 $ 35,501 $ — $ 71,222 Total Assets $ 13,018,814 $ 737,419 $ 95,667 $ 13,851,900 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SCHEDULE OF RECLASSIFICATION IMPACT OF ADOPTION OF ASC 326 (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Dec. 31, 2020 | Mar. 31, 2021 | Jul. 01, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | $ 11,856,515 | $ 10,703,442 | ||||||
Allowance for Credit Losses | $ 136,393 | $ 138,107 | $ 75,807 | 75,807 | $ 87,097 | $ 59,514 | $ 57,085 | |
Accounting Standards Update [Extensible List] | ASU 2016-13 | ASU 2016-13 | ASU 2016-13 | |||||
Balance July 1, 2020 Pre-ASC 326 Adoption | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 10,703,442 | |||||||
Allowance for Credit Losses | 75,807 | |||||||
Single Family - Mortgage & Warehouse | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | $ 4,899,188 | 4,722,304 | ||||||
Allowance for Credit Losses | $ 32,727 | 29,915 | 25,901 | 25,901 | 22,430 | 21,662 | 22,290 | |
Single Family - Mortgage & Warehouse | Single Family Real Estate Secured - Mortgage | Balance July 1, 2020 Pre-ASC 326 Adoption | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 4,244,563 | |||||||
Allowance for Credit Losses | 24,041 | |||||||
Single Family - Mortgage & Warehouse | Single Family Real Estate Secured - Warehouse | Balance July 1, 2020 Pre-ASC 326 Adoption | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 474,318 | |||||||
Allowance for Credit Losses | 1,860 | |||||||
Single Family - Mortgage & Warehouse | Single Family Real Estate Secured - Financing | Balance July 1, 2020 Pre-ASC 326 Adoption | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 682,477 | |||||||
Allowance for Credit Losses | 5,094 | |||||||
Multifamily Real Estate Secured - Mortgage and Financing | Balance July 1, 2020 Pre-ASC 326 Adoption | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 2,303,216 | |||||||
Allowance for Credit Losses | 6,318 | |||||||
Multifamily and Commercial Mortgage | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 2,424,185 | 2,263,054 | ||||||
Allowance for Credit Losses | 12,889 | 13,416 | 4,718 | 4,718 | 4,637 | 4,045 | 3,807 | |
Commercial Real Estate | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 3,042,896 | 2,297,920 | ||||||
Allowance for Credit Losses | 56,715 | 56,327 | 21,052 | 21,052 | 18,035 | 12,691 | 14,632 | |
Commercial Real Estate | Balance July 1, 2020 Pre-ASC 326 Adoption | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 371,176 | |||||||
Allowance for Credit Losses | 1,456 | |||||||
Commercial & Industrial - Non-RE | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 1,030,879 | 885,320 | ||||||
Allowance for Credit Losses | 19,129 | 23,653 | 9,954 | 9,954 | 12,340 | 12,126 | 9,544 | |
Commercial & Industrial - Non-RE | Balance July 1, 2020 Pre-ASC 326 Adoption | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 2,094,322 | |||||||
Allowance for Credit Losses | 22,863 | |||||||
Auto & Consumer | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 323,662 | 341,365 | ||||||
Allowance for Credit Losses | 7,413 | 7,185 | 9,461 | 9,461 | 10,018 | 7,168 | 6,339 | |
Auto & Consumer | Balance July 1, 2020 Pre-ASC 326 Adoption | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 291,452 | |||||||
Allowance for Credit Losses | 5,738 | |||||||
Other | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 135,705 | 193,479 | ||||||
Allowance for Credit Losses | $ 7,520 | $ 7,611 | 4,721 | 4,721 | $ 19,637 | $ 1,822 | $ 473 | |
Other | Balance July 1, 2020 Pre-ASC 326 Adoption | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 241,918 | |||||||
Allowance for Credit Losses | 8,437 | |||||||
Impact of ASC 326 Adoption | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for Credit Losses | 47,300 | |||||||
Impact of ASC 326 Adoption | Single Family - Mortgage & Warehouse | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for Credit Losses | 6,318 | |||||||
Impact of ASC 326 Adoption | Single Family - Mortgage & Warehouse | Single Family Real Estate Secured - Mortgage | Single Family Warehouse and Mortgage combined | ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 477,741 | |||||||
Impact of ASC 326 Adoption | Single Family - Mortgage & Warehouse | Single Family Real Estate Secured - Mortgage | Reclassification | ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for Credit Losses | 1,860 | |||||||
Impact of ASC 326 Adoption | Single Family - Mortgage & Warehouse | Single Family Real Estate Secured - Warehouse | Single Family Warehouse and Mortgage combined | ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | (474,318) | |||||||
Impact of ASC 326 Adoption | Single Family - Mortgage & Warehouse | Single Family Real Estate Secured - Warehouse | Reclassification | ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for Credit Losses | (1,860) | |||||||
Impact of ASC 326 Adoption | Single Family - Mortgage & Warehouse | Single Family Real Estate Secured - Financing | Multifamily and Single Family Financing loans to Commercial Real Estate | ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | (679,054) | |||||||
Impact of ASC 326 Adoption | Single Family - Mortgage & Warehouse | Single Family Real Estate Secured - Financing | Single Family Warehouse and Mortgage combined | ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | (3,423) | |||||||
Impact of ASC 326 Adoption | Single Family - Mortgage & Warehouse | Single Family Real Estate Secured - Financing | Reclassification | ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for Credit Losses | (5,094) | |||||||
Impact of ASC 326 Adoption | Multifamily Real Estate Secured - Mortgage and Financing | Commercial Real Estate - Mortgage to Multifamily and Commercial Mortgage | ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 371,176 | |||||||
Impact of ASC 326 Adoption | Multifamily Real Estate Secured - Mortgage and Financing | Multifamily and Single Family Financing loans to Commercial Real Estate | ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | (411,338) | |||||||
Impact of ASC 326 Adoption | Multifamily Real Estate Secured - Mortgage and Financing | Reclassification | ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for Credit Losses | (1,600) | |||||||
Impact of ASC 326 Adoption | Multifamily and Commercial Mortgage | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for Credit Losses | 7,408 | |||||||
Impact of ASC 326 Adoption | Commercial Real Estate | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for Credit Losses | 25,893 | |||||||
Impact of ASC 326 Adoption | Commercial Real Estate | Commercial Real Estate - Mortgage to Multifamily and Commercial Mortgage | ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | (371,176) | |||||||
Impact of ASC 326 Adoption | Commercial Real Estate | Multifamily and Single Family Financing loans to Commercial Real Estate | ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 1,090,392 | |||||||
Impact of ASC 326 Adoption | Commercial Real Estate | Real estate secured Commercial & Industrial to Commercial Real Estate | ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 1,207,528 | |||||||
Impact of ASC 326 Adoption | Commercial Real Estate | Reclassification | ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for Credit Losses | 19,596 | |||||||
Impact of ASC 326 Adoption | Commercial & Industrial - Non-RE | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for Credit Losses | 7,042 | |||||||
Impact of ASC 326 Adoption | Commercial & Industrial - Non-RE | Real estate secured Commercial & Industrial to Commercial Real Estate | ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | (1,207,528) | |||||||
Impact of ASC 326 Adoption | Commercial & Industrial - Non-RE | Other reclassifications | ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | (1,474) | |||||||
Impact of ASC 326 Adoption | Commercial & Industrial - Non-RE | Reclassification | ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for Credit Losses | (12,909) | |||||||
Impact of ASC 326 Adoption | Auto & Consumer | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for Credit Losses | 610 | |||||||
Impact of ASC 326 Adoption | Auto & Consumer | Unsecured Consumer loans to Auto & Consumer | ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 49,913 | |||||||
Impact of ASC 326 Adoption | Auto & Consumer | Reclassification | ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for Credit Losses | 3,723 | |||||||
Impact of ASC 326 Adoption | Other | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for Credit Losses | $ 29 | |||||||
Impact of ASC 326 Adoption | Other | Unsecured Consumer loans to Auto & Consumer | ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | (49,913) | |||||||
Impact of ASC 326 Adoption | Other | Other reclassifications | ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 1,474 | |||||||
Impact of ASC 326 Adoption | Other | Reclassification | ASU 2016-13 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for Credit Losses | (3,716) | |||||||
Post ASC 326 Adoption | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 10,703,442 | |||||||
Post ASC 326 Adoption | Single Family - Mortgage & Warehouse | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 4,722,304 | |||||||
Post ASC 326 Adoption | Multifamily and Commercial Mortgage | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 2,263,054 | |||||||
Post ASC 326 Adoption | Commercial Real Estate | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 2,297,920 | |||||||
Post ASC 326 Adoption | Commercial & Industrial - Non-RE | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 885,320 | |||||||
Post ASC 326 Adoption | Auto & Consumer | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | 341,365 | |||||||
Post ASC 326 Adoption | Other | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total gross loans and leases | $ 193,479 |
FAIR VALUE - ASSETS AND LIABILI
FAIR VALUE - ASSETS AND LIABILITIES MEASURED ON RECURRING BASIS (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
ASSETS: | ||
Trading | $ 254 | $ 105 |
Available-for-sale | 218,962 | 187,627 |
Loans held for sale, at fair value | 61,500 | 51,995 |
Municipal | ||
ASSETS: | ||
Trading | 254 | 105 |
Available-for-sale | 3,521 | 10,400 |
Agency RMBS | ||
ASSETS: | ||
Trading | 0 | 0 |
Available-for-sale | 17,918 | 16,826 |
Non-Agency RMBS | ||
ASSETS: | ||
Trading | 0 | 0 |
Available-for-sale | 17,377 | 18,332 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
ASSETS: | ||
Trading | 0 | 0 |
Available-for-sale | 0 | 0 |
Loans held for sale, at fair value | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
ASSETS: | ||
Trading | 254 | 105 |
Available-for-sale | 201,585 | 169,295 |
Loans held for sale, at fair value | 61,500 | 51,995 |
Mortgage servicing rights | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
ASSETS: | ||
Trading | 0 | 0 |
Available-for-sale | 17,377 | 18,332 |
Loans held for sale, at fair value | 0 | 0 |
Mortgage servicing rights | 16,631 | 10,675 |
Recurring | ||
ASSETS: | ||
Available-for-sale | 218,962 | 187,627 |
Loans held for sale, at fair value | 61,500 | 51,995 |
Mortgage servicing rights | 16,631 | 10,675 |
Other assets—Derivative instruments | 8,595 | 9,131 |
LIABILITIES: | ||
Other liabilities—Derivative instruments | 1,767 | 1,715 |
Recurring | Municipal | ||
ASSETS: | ||
Trading | 254 | 105 |
Available-for-sale | 3,521 | 10,400 |
Recurring | Agency Debt | ||
ASSETS: | ||
Available-for-sale | 1,800 | 1,799 |
Recurring | Agency RMBS | ||
ASSETS: | ||
Available-for-sale | 17,918 | 16,826 |
Recurring | Non-Agency RMBS | ||
ASSETS: | ||
Available-for-sale | 17,377 | 18,332 |
Recurring | Asset-backed securities and structured notes | ||
ASSETS: | ||
Available-for-sale | 178,346 | 140,270 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
ASSETS: | ||
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 |
LIABILITIES: | ||
Other liabilities—Derivative instruments | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal | ||
ASSETS: | ||
Trading | 0 | 0 |
Available-for-sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Agency Debt | ||
ASSETS: | ||
Available-for-sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Agency RMBS | ||
ASSETS: | ||
Available-for-sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-Agency RMBS | ||
ASSETS: | ||
Available-for-sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities and structured notes | ||
ASSETS: | ||
Available-for-sale | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
ASSETS: | ||
Available-for-sale | 201,585 | 169,295 |
Loans held for sale, at fair value | 61,500 | 51,995 |
Mortgage servicing rights | 0 | 0 |
Other assets—Derivative instruments | 0 | 0 |
LIABILITIES: | ||
Other liabilities—Derivative instruments | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Municipal | ||
ASSETS: | ||
Trading | 254 | 105 |
Available-for-sale | 3,521 | 10,400 |
Recurring | Significant Other Observable Inputs (Level 2) | Agency Debt | ||
ASSETS: | ||
Available-for-sale | 1,800 | 1,799 |
Recurring | Significant Other Observable Inputs (Level 2) | Agency RMBS | ||
ASSETS: | ||
Available-for-sale | 17,918 | 16,826 |
Recurring | Significant Other Observable Inputs (Level 2) | Non-Agency RMBS | ||
ASSETS: | ||
Available-for-sale | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Asset-backed securities and structured notes | ||
ASSETS: | ||
Available-for-sale | 178,346 | 140,270 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
ASSETS: | ||
Available-for-sale | 17,377 | 18,332 |
Loans held for sale, at fair value | 0 | 0 |
Mortgage servicing rights | 16,631 | 10,675 |
Other assets—Derivative instruments | 8,595 | 9,131 |
LIABILITIES: | ||
Other liabilities—Derivative instruments | 1,767 | 1,715 |
Recurring | Significant Unobservable Inputs (Level 3) | Municipal | ||
ASSETS: | ||
Trading | 0 | 0 |
Available-for-sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Agency Debt | ||
ASSETS: | ||
Available-for-sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Agency RMBS | ||
ASSETS: | ||
Available-for-sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Non-Agency RMBS | ||
ASSETS: | ||
Available-for-sale | 17,377 | 18,332 |
Recurring | Significant Unobservable Inputs (Level 3) | Asset-backed securities and structured notes | ||
ASSETS: | ||
Available-for-sale | $ 0 | $ 0 |
FAIR VALUE - LEVEL 3 ASSETS MEA
FAIR VALUE - LEVEL 3 ASSETS MEASURED ON RECURRING BASIS (Details) - Recurring - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | $ 39,428 | $ 25,066 | $ 36,423 | $ 24,055 |
Total gains or losses for the period - Included in other comprehensive income | 913 | (548) | 607 | 292 |
Purchases, originations, issues, sales and settlements: | ||||
Purchases/originations | 3,538 | 1,297 | 11,222 | 4,047 |
Settlements | (671) | (533) | (1,562) | (1,611) |
Closing balance | 40,836 | 24,316 | 40,836 | 24,316 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | (2,372) | (966) | (5,854) | (2,467) |
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 | (2,372) | (966) | (5,854) | (2,467) |
Non-Agency RMBS | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | 17,135 | 12,787 | 18,332 | 13,025 |
Total gains or losses for the period - Included in other comprehensive income | 913 | (548) | 607 | 292 |
Purchases, originations, issues, sales and settlements: | ||||
Purchases/originations | 0 | 0 | 0 | 0 |
Settlements | (671) | (533) | (1,562) | (1,611) |
Closing balance | 17,377 | 11,706 | 17,377 | 11,706 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | 0 | 0 | 0 | 0 |
Non-Agency RMBS | 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 | 0 | 0 | 0 | 0 |
Mortgage Servicing Rights | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | 14,314 | 11,262 | 10,675 | 9,784 |
Total gains or losses for the period - Included in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases, originations, issues, sales and settlements: | ||||
Purchases/originations | 3,538 | 1,297 | 11,222 | 4,047 |
Settlements | 0 | 0 | 0 | 0 |
Closing balance | 16,631 | 9,962 | 16,631 | 9,962 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | (1,221) | (2,597) | (5,266) | (3,869) |
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 | (1,221) | (2,597) | (5,266) | (3,869) |
Derivative Instruments, net | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | 7,979 | 1,017 | 7,416 | 1,246 |
Total gains or losses for the period - Included in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases, originations, issues, sales and settlements: | ||||
Purchases/originations | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Closing balance | 6,828 | 2,648 | 6,828 | 2,648 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | (1,151) | 1,631 | (588) | 1,402 |
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 | $ (1,151) | $ 1,631 | $ (588) | $ 1,402 |
FAIR VALUE - QUANTITATIVE INFOR
FAIR VALUE - QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASURMENTS (RECURRING) (Details) $ in Thousands | Mar. 31, 2021USD ($)Y | Jun. 30, 2020USD ($)Y |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale | $ 218,962 | $ 187,627 |
Non-Agency RMBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale | 17,377 | 18,332 |
Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale | 17,377 | 18,332 |
Mortgage servicing rights | 16,631 | 10,675 |
Recurring | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale | 218,962 | 187,627 |
Mortgage servicing rights | 16,631 | 10,675 |
Recurring | Non-Agency RMBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale | 17,377 | 18,332 |
Recurring | Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale | 17,377 | 18,332 |
Mortgage servicing rights | 16,631 | 10,675 |
Recurring | Level 3 | Non-Agency RMBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale | $ 17,377 | $ 18,332 |
Recurring | Level 3 | Non-Agency RMBS | Projected Constant Prepayment Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.015 | 0.025 |
Recurring | Level 3 | Non-Agency RMBS | Projected Constant Prepayment Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.445 | 0.479 |
Recurring | Level 3 | Non-Agency RMBS | Projected Constant Prepayment Rate | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.088 | 0.261 |
Recurring | Level 3 | Non-Agency RMBS | Projected Constant Default Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.015 | 0.005 |
Recurring | Level 3 | Non-Agency RMBS | Projected Constant Default Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.063 | 0.045 |
Recurring | Level 3 | Non-Agency RMBS | Projected Constant Default Rate | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.016 | 0.020 |
Recurring | Level 3 | Non-Agency RMBS | Projected Loss Severity | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.400 | 0.350 |
Recurring | Level 3 | Non-Agency RMBS | Projected Loss Severity | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 1 | 0.684 |
Recurring | Level 3 | Non-Agency RMBS | Projected Loss Severity | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.769 | 0.501 |
Recurring | Level 3 | Non-Agency RMBS | Discount Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.027 | 0.029 |
Recurring | Level 3 | Non-Agency RMBS | Discount Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.070 | 0.094 |
Recurring | Level 3 | Non-Agency RMBS | Discount Rate | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.042 | 0.050 |
Recurring | Level 3 | Mortgage Servicing Rights | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing rights | $ 16,631 | $ 10,675 |
Recurring | Level 3 | Mortgage Servicing Rights | Projected Constant Prepayment Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | 0.077 | 0.047 |
Recurring | Level 3 | Mortgage Servicing Rights | Projected Constant Prepayment Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | 0.722 | 0.396 |
Recurring | Level 3 | Mortgage Servicing Rights | Projected Constant Prepayment Rate | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | 0.120 | 0.114 |
Recurring | Level 3 | Mortgage Servicing Rights | Discount Rate | Minimum | ||
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 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | 0.140 | 0.140 |
Recurring | Level 3 | Mortgage Servicing Rights | Discount Rate | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | 0.097 | 0.098 |
Recurring | Level 3 | Mortgage Servicing Rights | Life (in years) | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | Y | 0.7 | 1.6 |
Recurring | Level 3 | Mortgage Servicing Rights | Life (in years) | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | Y | 7.8 | 7.7 |
Recurring | Level 3 | Mortgage Servicing Rights | Life (in years) | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | Y | 6.4 | 6.2 |
Recurring | Level 3 | Derivative Instruments, net | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative Instruments | $ 6,828 | $ 7,416 |
Recurring | Level 3 | Derivative Instruments, net | Projected Sales Profit of Underlying Loans | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative instruments, net, measurement input | 0.002 | (0.003) |
Recurring | Level 3 | Derivative Instruments, net | Projected Sales Profit of Underlying Loans | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative instruments, net, measurement input | 0.004 | 0.008 |
Recurring | Level 3 | Derivative Instruments, net | Projected Sales Profit of Underlying Loans | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative instruments, net, measurement input | 0.002 | 0.002 |
FAIR VALUE - ASSETS MEASURED FO
FAIR VALUE - ASSETS MEASURED FOR IMPAIRMENT ON NONRECURRING BASIS (Details) - Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | $ 6,804 | $ 6,408 |
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 | 6,538 | 6,114 |
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 | 266 | 294 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
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) | 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] | ||
Other real estate owned and foreclosed assets, 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] | ||
Other real estate owned and foreclosed assets, fair value | 6,804 | 6,408 |
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 | 6,538 | 6,114 |
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 | $ 266 | $ 294 |
FAIR VALUE - NARRATIVE (Details
FAIR VALUE - NARRATIVE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||||
Impaired loans, charge-offs | $ 1,405 | $ 1,290 | $ 8,553 | $ 7,753 | |
Nonrecurring | |||||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||||
Other real estate owned and foreclosed assets, fair value | 6,804 | 6,804 | $ 6,408 | ||
Other real estate owned | Nonrecurring | |||||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||||
Other real estate owned and foreclosed assets, fair value | $ 6,804 | 6,804 | |||
Impaired loans, charge-offs | $ 0 |
FAIR VALUE - LOANS HELD-FOR-SAL
FAIR VALUE - LOANS HELD-FOR-SALE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |||||
Aggregate fair value | $ 61,500 | $ 61,500 | $ 51,995 | ||
Contractual balance | 59,985 | 59,985 | 49,700 | ||
Unrealized gain | 1,515 | 1,515 | $ 2,295 | ||
Interest income | 387 | $ 216 | 1,189 | $ 812 | |
Change in fair value | (1,829) | 2,228 | (1,369) | 1,976 | |
Total | $ (1,442) | $ 2,444 | $ (180) | $ 2,788 |
FAIR VALUE - QUANTITATIVE INF_2
FAIR VALUE - QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASURMENTS (NONRECURRING) (Details) - Nonrecurring $ in Thousands | Mar. 31, 2021USD ($) | Jun. 30, 2020USD ($) |
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | $ 6,804 | $ 6,408 |
Single family real estate | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 6,538 | 6,114 |
Autos and RVs | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 266 | 294 |
Level 3 | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 6,804 | 6,408 |
Level 3 | Single family real estate | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | $ 6,538 | $ 6,114 |
Level 3 | Single family real estate | Adjustment for differences between the comparable sales | Minimum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned, measurement input | (0.037) | 0.187 |
Level 3 | Single family real estate | Adjustment for differences between the comparable sales | Maximum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned, measurement input | 0.017 | 0.187 |
Level 3 | Single family real estate | Adjustment for differences between the comparable sales | Weighted Average | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned, measurement input | (0.002) | 0.187 |
Level 3 | Autos and RVs | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | $ 266 | $ 294 |
Level 3 | Autos and RVs | Adjustment for differences between the comparable sales | Minimum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other repossessed assets, measurement Input | 0 | (0.246) |
Level 3 | Autos and RVs | Adjustment for differences between the comparable sales | Maximum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other repossessed assets, measurement Input | 0.197 | 0.442 |
Level 3 | Autos and RVs | Adjustment for differences between the comparable sales | Weighted Average | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other repossessed assets, measurement Input | 0 | 0.028 |
FAIR VALUE - FAIR VALUE BY BALA
FAIR VALUE - FAIR VALUE BY BALANCE SHEET GROUPING (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Financial assets: | ||
Trading | $ 254 | $ 105 |
Available-for-sale | 218,962 | 187,627 |
Loans held for sale, at fair value | 61,500 | 51,995 |
Loans held for sale, lower of cost or fair value | 13,371 | 44,565 |
Securities borrowed | 543,538 | 222,368 |
Financial liabilities: | ||
Securities loaned | 649,837 | 255,945 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 1,442,955 | 1,950,519 |
Trading | 254 | 105 |
Available-for-sale | 218,962 | 187,627 |
Loans held for sale, at fair value | 61,500 | 51,995 |
Loans held for sale, lower of cost or fair value | 13,371 | 44,565 |
Loans and leases held for investment—net | 11,711,215 | 10,631,349 |
Securities borrowed | 543,538 | 222,368 |
Customer, broker-dealer and clearing receivables | 351,063 | 220,266 |
Mortgage servicing rights | 16,631 | 10,675 |
Financial liabilities: | ||
Total deposits | 11,612,501 | 11,336,694 |
Advances from the Federal Home Loan Bank | 172,500 | 242,500 |
Borrowings, subordinated notes and debentures | 365,753 | 235,789 |
Securities loaned | 649,837 | 255,945 |
Customer, broker-dealer and clearing payables | 483,677 | 347,614 |
Total Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 1,442,955 | 1,950,519 |
Trading | 254 | 105 |
Available-for-sale | 218,962 | 187,627 |
Loans held for sale, at fair value | 61,500 | 51,995 |
Loans held for sale, lower of cost or fair value | 13,416 | 44,625 |
Loans and leases held for investment—net | 12,138,239 | 11,138,255 |
Securities borrowed | 543,755 | 222,613 |
Customer, broker-dealer and clearing receivables | 351,063 | 220,464 |
Mortgage servicing rights | 16,631 | 10,675 |
Financial liabilities: | ||
Total deposits | 11,314,340 | 11,088,447 |
Advances from the Federal Home Loan Bank | 173,682 | 254,114 |
Borrowings, subordinated notes and debentures | 360,454 | 234,445 |
Securities loaned | 652,111 | 256,790 |
Customer, broker-dealer and clearing payables | 483,677 | 347,614 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 1,442,955 | 1,950,519 |
Trading | 0 | 0 |
Available-for-sale | 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 |
Securities borrowed | 0 | 0 |
Customer, broker-dealer and clearing receivables | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Financial liabilities: | ||
Total deposits | 0 | 0 |
Advances from the Federal Home Loan Bank | 0 | 0 |
Borrowings, subordinated notes and debentures | 0 | 0 |
Securities loaned | 0 | 0 |
Customer, broker-dealer and clearing payables | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Trading | 254 | 105 |
Available-for-sale | 201,585 | 169,295 |
Loans held for sale, at fair value | 61,500 | 51,995 |
Loans held for sale, lower of cost or fair value | 0 | 0 |
Loans and leases held for investment—net | 0 | 0 |
Securities borrowed | 0 | 0 |
Customer, broker-dealer and clearing receivables | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Financial liabilities: | ||
Total deposits | 11,314,340 | 11,088,447 |
Advances from the Federal Home Loan Bank | 173,682 | 254,114 |
Borrowings, subordinated notes and debentures | 360,454 | 234,445 |
Securities loaned | 0 | 0 |
Customer, broker-dealer and clearing payables | 0 | 0 |
Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Trading | 0 | 0 |
Available-for-sale | 17,377 | 18,332 |
Loans held for sale, at fair value | 0 | 0 |
Loans held for sale, lower of cost or fair value | 13,416 | 44,625 |
Loans and leases held for investment—net | 12,138,239 | 11,138,255 |
Securities borrowed | 543,755 | 222,613 |
Customer, broker-dealer and clearing receivables | 351,063 | 220,464 |
Mortgage servicing rights | 16,631 | 10,675 |
Financial liabilities: | ||
Total deposits | 0 | 0 |
Advances from the Federal Home Loan Bank | 0 | 0 |
Borrowings, subordinated notes and debentures | 0 | 0 |
Securities loaned | 652,111 | 256,790 |
Customer, broker-dealer and clearing payables | $ 483,677 | $ 347,614 |
SECURITIES - AMORTIZED COST, CA
SECURITIES - AMORTIZED COST, CARRYING AMOUNT AND FAIR VALUE DISCLOSURES (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Securities Trading - Fair Value | $ 254 | $ 105 |
Amortized Cost | 214,764 | 188,059 |
Unrealized Gains | 5,055 | 1,703 |
Unrealized Losses | (857) | (2,135) |
Fair Value | 218,962 | 187,627 |
Total RMBS securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities Trading - Fair Value | 0 | 0 |
Amortized Cost | 34,381 | 34,372 |
Unrealized Gains | 1,771 | 1,658 |
Unrealized Losses | (857) | (872) |
Fair Value | 35,295 | 35,158 |
U.S. agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities Trading - Fair Value | 0 | 0 |
Amortized Cost | 17,763 | 16,192 |
Unrealized Gains | 362 | 634 |
Unrealized Losses | (207) | 0 |
Fair Value | 17,918 | 16,826 |
Non-agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities Trading - Fair Value | 0 | 0 |
Amortized Cost | 16,618 | 18,180 |
Unrealized Gains | 1,409 | 1,024 |
Unrealized Losses | (650) | (872) |
Fair Value | 17,377 | 18,332 |
Total Non-RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities Trading - Fair Value | 254 | 105 |
Amortized Cost | 180,383 | 153,687 |
Unrealized Gains | 3,284 | 45 |
Unrealized Losses | 0 | (1,263) |
Fair Value | 183,667 | 152,469 |
U.S. agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities Trading - Fair Value | 0 | 0 |
Amortized Cost | 1,800 | 1,799 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 1,800 | 1,799 |
Municipal debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities Trading - Fair Value | 254 | 105 |
Amortized Cost | 3,436 | 10,550 |
Unrealized Gains | 85 | 44 |
Unrealized Losses | 0 | (194) |
Fair Value | 3,521 | 10,400 |
Asset-backed securities and structured notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities Trading - Fair Value | 0 | 0 |
Amortized Cost | 175,147 | 141,338 |
Unrealized Gains | 3,199 | 1 |
Unrealized Losses | 0 | (1,069) |
Fair Value | $ 178,346 | $ 140,270 |
SECURITIES - NARRATIVE (Details
SECURITIES - NARRATIVE (Details) | 3 Months Ended | ||
Mar. 31, 2021USD ($)security | Mar. 31, 2020security | Jun. 30, 2020USD ($)security | |
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale | $ 218,962,000 | $ 187,627,000 | |
Number of available-for-sale securities in continuous loss position for a period of more than 12 months | security | 7 | 10 | |
Number of available-for-sale securities in continuous loss position for a period of less than 12 months | security | 6 | 4 | |
Number of available-for-sale securities sold | security | 0 | 0 | |
Asset Pledged as Collateral | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale securities pledged as collateral | $ 3,300,000 | $ 3,500,000 | |
Non-agency | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale | $ 17,377,000 | $ 18,332,000 | |
Number of non-agency RMBS | security | 1 | ||
Carrying amount of securities with cumulative credit losses | $ 3,100,000 | ||
Cumulative credit losses | 800,000 | ||
Credit losses recognized in earnings | $ 0 | ||
RMBS, Super Senior Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale, number of securities | security | 15 |
SECURITIES - SCHEDULE OF UNREAL
SECURITIES - SCHEDULE OF UNREALIZED LOSS ON INVESTMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Fair Value | ||
Less Than 12 Months | $ 7,929 | $ 139,968 |
More Than 12 Months | 6,206 | 8,980 |
Total | 14,135 | 148,948 |
Gross Unrealized Losses | ||
Less Than 12 Months | (207) | (1,069) |
More Than 12 Months | (650) | (1,066) |
Total | (857) | (2,135) |
Total RMBS securities | ||
Fair Value | ||
Less Than 12 Months | 7,929 | 85 |
More Than 12 Months | 6,206 | 6,978 |
Total | 14,135 | 7,063 |
Gross Unrealized Losses | ||
Less Than 12 Months | (207) | 0 |
More Than 12 Months | (650) | (872) |
Total | (857) | (872) |
U.S. agencies | ||
Fair Value | ||
Less Than 12 Months | 7,929 | 85 |
More Than 12 Months | 0 | 0 |
Total | 7,929 | 85 |
Gross Unrealized Losses | ||
Less Than 12 Months | (207) | 0 |
More Than 12 Months | 0 | 0 |
Total | (207) | 0 |
Non-agency | ||
Fair Value | ||
Less Than 12 Months | 0 | 0 |
More Than 12 Months | 6,206 | 6,978 |
Total | 6,206 | 6,978 |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
More Than 12 Months | (650) | (872) |
Total | (650) | (872) |
Total Non-RMBS | ||
Fair Value | ||
Less Than 12 Months | 0 | 139,883 |
More Than 12 Months | 0 | 2,002 |
Total | 0 | 141,885 |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | (1,069) |
More Than 12 Months | 0 | (194) |
Total | 0 | (1,263) |
U.S. agencies | ||
Fair Value | ||
Less Than 12 Months | 0 | |
More Than 12 Months | 0 | |
Total | 0 | |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | |
More Than 12 Months | 0 | |
Total | $ 0 | |
Municipal debt | ||
Fair Value | ||
Less Than 12 Months | 0 | |
More Than 12 Months | 2,002 | |
Total | 2,002 | |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | |
More Than 12 Months | (194) | |
Total | (194) | |
Asset-backed securities and structured notes | ||
Fair Value | ||
Less Than 12 Months | 139,883 | |
More Than 12 Months | 0 | |
Total | 139,883 | |
Gross Unrealized Losses | ||
Less Than 12 Months | (1,069) | |
More Than 12 Months | 0 | |
Total | $ (1,069) |
SECURITIES - UNREALIZED GAIN (L
SECURITIES - UNREALIZED GAIN (LOSS) ON INVESTMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale debt securities—net unrealized gains (losses) | $ 4,198 | $ (432) |
Available-for-sale debt securities—non-credit related losses | (845) | (845) |
Subtotal | 3,353 | (1,277) |
Tax benefit (expense) | (1,060) | 340 |
Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss) | $ 2,293 | $ (937) |
LOANS & ALLOWANCE FOR CREDIT _3
LOANS & ALLOWANCE FOR CREDIT LOSSES - LOAN PORTFOLIO COMPOSITION (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Jul. 01, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | $ 11,856,515 | $ 10,703,442 | |||||
Allowance for credit losses - loans | (138,107) | $ (136,393) | $ (75,807) | (75,807) | $ (87,097) | $ (59,514) | $ (57,085) |
Unaccreted premiums (discounts) and loan and lease fees | (7,193) | 3,714 | |||||
Total net loans and leases | 11,711,215 | 10,631,349 | |||||
Single Family - Mortgage & Warehouse | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | 4,899,188 | 4,722,304 | |||||
Allowance for credit losses - loans | (29,915) | (32,727) | (25,901) | (25,901) | (22,430) | (21,662) | (22,290) |
Multifamily and Commercial Mortgage | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | 2,424,185 | 2,263,054 | |||||
Allowance for credit losses - loans | (13,416) | (12,889) | (4,718) | (4,718) | (4,637) | (4,045) | (3,807) |
Commercial Real Estate | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | 3,042,896 | 2,297,920 | |||||
Allowance for credit losses - loans | (56,327) | (56,715) | (21,052) | (21,052) | (18,035) | (12,691) | (14,632) |
Commercial & Industrial - Non-RE | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | 1,030,879 | 885,320 | |||||
Allowance for credit losses - loans | (23,653) | (19,129) | (9,954) | (9,954) | (12,340) | (12,126) | (9,544) |
Auto & Consumer | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | 323,662 | 341,365 | |||||
Allowance for credit losses - loans | (7,185) | (7,413) | (9,461) | (9,461) | (10,018) | (7,168) | (6,339) |
Other | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | 135,705 | 193,479 | |||||
Allowance for credit losses - loans | $ (7,611) | $ (7,520) | $ (4,721) | $ (4,721) | $ (19,637) | $ (1,822) | $ (473) |
LOANS & ALLOWANCE FOR CREDIT _4
LOANS & ALLOWANCE FOR CREDIT LOSSES - ALLOWANCE FOR LOAN LOSS BY PORTFOLIO CLASS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Allowance for Credit Losses - Loans | ||||||
Balance, beginning of period | $ 136,393 | $ 75,807 | $ 59,514 | $ 75,807 | $ 75,807 | $ 57,085 |
Provision (benefit) for credit losses - loans | 2,700 | 28,500 | 22,500 | 35,700 | ||
Charge-offs | (1,405) | (1,290) | (8,553) | (7,753) | ||
Recoveries | 419 | 373 | 1,053 | 2,065 | ||
Balance, end of period | 138,107 | 87,097 | $ 136,393 | $ 138,107 | 87,097 | |
Accounting Standards Update [Extensible List] | ASU 2016-13 | ASU 2016-13 | ASU 2016-13 | |||
Single Family - Mortgage & Warehouse | ||||||
Allowance for Credit Losses - Loans | ||||||
Balance, beginning of period | 32,727 | $ 25,901 | 21,662 | $ 25,901 | $ 25,901 | 22,290 |
Provision (benefit) for credit losses - loans | (2,785) | 706 | 47 | 50 | ||
Charge-offs | (110) | 0 | (2,469) | (151) | ||
Recoveries | 83 | 62 | 118 | 241 | ||
Balance, end of period | 29,915 | 22,430 | 32,727 | 29,915 | 22,430 | |
Multifamily and Commercial Mortgage | ||||||
Allowance for Credit Losses - Loans | ||||||
Balance, beginning of period | 12,889 | 4,718 | 4,045 | 4,718 | 4,718 | 3,807 |
Provision (benefit) for credit losses - loans | 704 | 592 | 1,467 | 711 | ||
Charge-offs | (177) | 0 | (177) | 0 | ||
Recoveries | 0 | 0 | 0 | 119 | ||
Balance, end of period | 13,416 | 4,637 | 12,889 | 13,416 | 4,637 | |
Commercial Real Estate | ||||||
Allowance for Credit Losses - Loans | ||||||
Balance, beginning of period | 56,715 | 21,052 | 12,691 | 21,052 | 21,052 | 14,632 |
Provision (benefit) for credit losses - loans | (133) | 5,344 | 9,637 | 3,403 | ||
Charge-offs | (255) | 0 | (255) | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Balance, end of period | 56,327 | 18,035 | 56,715 | 56,327 | 18,035 | |
Commercial & Industrial - Non-RE | ||||||
Allowance for Credit Losses - Loans | ||||||
Balance, beginning of period | 19,129 | 9,954 | 12,126 | 9,954 | 9,954 | 9,544 |
Provision (benefit) for credit losses - loans | 4,506 | 214 | 9,472 | 2,796 | ||
Charge-offs | 0 | 0 | (2,833) | 0 | ||
Recoveries | 18 | 0 | 18 | 0 | ||
Balance, end of period | 23,653 | 12,340 | 19,129 | 23,653 | 12,340 | |
Auto & Consumer | ||||||
Allowance for Credit Losses - Loans | ||||||
Balance, beginning of period | 7,413 | 9,461 | 7,168 | 9,461 | 9,461 | 6,339 |
Provision (benefit) for credit losses - loans | 317 | 3,869 | (984) | 6,620 | ||
Charge-offs | (863) | (1,290) | (2,819) | (3,420) | ||
Recoveries | 318 | 271 | 917 | 479 | ||
Balance, end of period | 7,185 | 10,018 | 7,413 | 7,185 | 10,018 | |
Other | ||||||
Allowance for Credit Losses - Loans | ||||||
Balance, beginning of period | 7,520 | 4,721 | 1,822 | 4,721 | 4,721 | 473 |
Provision (benefit) for credit losses - loans | 91 | 17,775 | 2,861 | 22,120 | ||
Charge-offs | 0 | 0 | 0 | (4,182) | ||
Recoveries | 0 | 40 | 0 | 1,226 | ||
Balance, end of period | $ 7,611 | $ 19,637 | 7,520 | 7,611 | $ 19,637 | |
Effect of Adoption of ASC 326 | ||||||
Allowance for Credit Losses - Loans | ||||||
Balance, beginning of period | 47,300 | 47,300 | 47,300 | |||
Effect of Adoption of ASC 326 | Single Family - Mortgage & Warehouse | ||||||
Allowance for Credit Losses - Loans | ||||||
Balance, beginning of period | 6,318 | 6,318 | 6,318 | |||
Effect of Adoption of ASC 326 | Multifamily and Commercial Mortgage | ||||||
Allowance for Credit Losses - Loans | ||||||
Balance, beginning of period | 7,408 | 7,408 | 7,408 | |||
Effect of Adoption of ASC 326 | Commercial Real Estate | ||||||
Allowance for Credit Losses - Loans | ||||||
Balance, beginning of period | 25,893 | 25,893 | 25,893 | |||
Effect of Adoption of ASC 326 | Commercial & Industrial - Non-RE | ||||||
Allowance for Credit Losses - Loans | ||||||
Balance, beginning of period | 7,042 | 7,042 | 7,042 | |||
Effect of Adoption of ASC 326 | Auto & Consumer | ||||||
Allowance for Credit Losses - Loans | ||||||
Balance, beginning of period | 610 | 610 | 610 | |||
Effect of Adoption of ASC 326 | Other | ||||||
Allowance for Credit Losses - Loans | ||||||
Balance, beginning of period | $ 29 | $ 29 | $ 29 |
LOANS & ALLOWANCE FOR CREDIT _5
LOANS & ALLOWANCE FOR CREDIT LOSSES - NONACCRUAL LOANS (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Financing Receivable, Nonaccrual [Line Items] | |
With Allowance | $ 96,651 |
With No Allowance | 38,956 |
Total | $ 135,607 |
Nonaccrual loans to total loans (as a percent) | 1.14% |
Single Family - Mortgage & Warehouse | |
Financing Receivable, Nonaccrual [Line Items] | |
With Allowance | $ 51,628 |
With No Allowance | 33,415 |
Total | 85,043 |
Multifamily and Commercial Mortgage | |
Financing Receivable, Nonaccrual [Line Items] | |
With Allowance | 25,275 |
With No Allowance | 5,469 |
Total | 30,744 |
Commercial Real Estate | |
Financing Receivable, Nonaccrual [Line Items] | |
With Allowance | 16,414 |
With No Allowance | 0 |
Total | 16,414 |
Commercial & Industrial - Non-RE | |
Financing Receivable, Nonaccrual [Line Items] | |
With Allowance | 2,942 |
With No Allowance | 18 |
Total | 2,960 |
Auto & Consumer | |
Financing Receivable, Nonaccrual [Line Items] | |
With Allowance | 392 |
With No Allowance | 54 |
Total | $ 446 |
LOANS & ALLOWANCE FOR CREDIT _6
LOANS & ALLOWANCE FOR CREDIT LOSSES - NONACCRUAL LOANS NARRATIVE (Details) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021USD ($)loan | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($)loan | Mar. 31, 2020USD ($) | Jun. 30, 2020loan | |
Financing Receivable, Impaired [Line Items] | |||||
Interest income recognized on accrual loans | $ 0 | $ 0 | $ 0 | $ 0 | |
Deferral of payment obligation | $ 0 | ||||
Nonaccrual | |||||
Financing Receivable, Impaired [Line Items] | |||||
Ratio of nonaccrual loans and leases considered TDRs | 0.61% | 0.61% | 0.34% | ||
Period over which borrowers can make timely payments after TDR considered non-performing (in months) | 6 months | ||||
Nonaccrual | Single Family - Mortgage & Warehouse | |||||
Financing Receivable, Impaired [Line Items] | |||||
Ratio of nonaccrual loans and leases that are single family mortgage | 62.71% | 62.71% | |||
Performing | |||||
Financing Receivable, Impaired [Line Items] | |||||
Number or TDRs classified as performing | loan | 0 | 0 | 0 |
LOANS & ALLOWANCE FOR CREDIT _7
LOANS & ALLOWANCE FOR CREDIT LOSSES - UNPAID PRINCIPAL BALANCE FOR PERFORMING AND NONACCRUAL (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 11,856,515 | $ 10,703,442 |
Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 4,899,188 | 4,722,304 |
Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,424,185 | 2,263,054 |
Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 3,042,896 | 2,297,920 |
Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,030,879 | 885,320 |
Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 323,662 | 341,365 |
Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 135,705 | 193,479 |
Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 11,720,908 | 10,615,501 |
Performing | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 4,814,145 | 4,638,274 |
Performing | Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,393,441 | 2,259,629 |
Performing | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 3,026,482 | 2,297,920 |
Performing | Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,027,919 | 885,107 |
Performing | Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 323,216 | 341,092 |
Performing | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 135,705 | 193,479 |
Nonaccrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 135,607 | 87,941 |
Nonaccrual | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 85,043 | 84,030 |
Nonaccrual | Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 30,744 | 3,425 |
Nonaccrual | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 16,414 | 0 |
Nonaccrual | Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,960 | 213 |
Nonaccrual | Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 446 | 273 |
Nonaccrual | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 0 | $ 0 |
LOANS & ALLOWANCE FOR CREDIT _8
LOANS & ALLOWANCE FOR CREDIT LOSSES - LOANS BY AMORTIZED COST BASIS BY YEAR OF ORIGINATION AND CREDIT QUALITY INDICATOR (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | $ 2,275,405 | |
2020 | 2,919,372 | |
2019 | 1,621,665 | |
2018 | 1,166,359 | |
2017 | 729,959 | |
Prior | 1,155,058 | |
Revolving Loans | 1,897,799 | |
Revolving Loans Converted to Loans HFI | 90,898 | |
Total | $ 11,856,515 | $ 10,703,442 |
As a % of total gross loans and leases | ||
2021 | 19.19% | |
2020 | 24.62% | |
2019 | 13.68% | |
2018 | 9.84% | |
2017 | 6.16% | |
Prior | 9.74% | |
Revolving Loans | 16.01% | |
Revolving Loans Converted to Loans HFI | 0.77% | |
Total | 100.00% | |
Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | $ 729,012 | |
2020 | 878,628 | |
2019 | 610,025 | |
2018 | 570,303 | |
2017 | 431,545 | |
Prior | 711,593 | |
Revolving Loans | 968,082 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 4,899,188 | 4,722,304 |
Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 417,032 | |
2020 | 644,916 | |
2019 | 444,985 | |
2018 | 338,154 | |
2017 | 209,750 | |
Prior | 369,348 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 2,424,185 | 2,263,054 |
Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 976,356 | |
2020 | 1,077,371 | |
2019 | 463,557 | |
2018 | 186,218 | |
2017 | 56,922 | |
Prior | 63,750 | |
Revolving Loans | 218,722 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 3,042,896 | 2,297,920 |
Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 52,908 | |
2020 | 111,520 | |
2019 | 21,204 | |
2018 | 31,711 | |
2017 | 11,643 | |
Prior | 0 | |
Revolving Loans | 710,995 | |
Revolving Loans Converted to Loans HFI | 90,898 | |
Total | 1,030,879 | 885,320 |
Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 84,551 | |
2020 | 90,493 | |
2019 | 81,894 | |
2018 | 38,221 | |
2017 | 19,418 | |
Prior | 9,085 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 323,662 | 341,365 |
Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 15,546 | |
2020 | 116,444 | |
2019 | 0 | |
2018 | 1,752 | |
2017 | 681 | |
Prior | 1,282 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 135,705 | $ 193,479 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 2,272,502 | |
2020 | 2,820,769 | |
2019 | 1,519,575 | |
2018 | 1,118,823 | |
2017 | 694,201 | |
Prior | 1,103,525 | |
Revolving Loans | 1,878,936 | |
Revolving Loans Converted to Loans HFI | 90,898 | |
Total | 11,499,229 | |
Pass | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 728,933 | |
2020 | 863,897 | |
2019 | 582,138 | |
2018 | 545,832 | |
2017 | 408,071 | |
Prior | 662,523 | |
Revolving Loans | 951,752 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 4,743,146 | |
Pass | Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 417,032 | |
2020 | 594,368 | |
2019 | 442,501 | |
2018 | 332,436 | |
2017 | 208,758 | |
Prior | 366,914 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 2,362,009 | |
Pass | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 976,356 | |
2020 | 1,052,529 | |
2019 | 395,334 | |
2018 | 169,804 | |
2017 | 45,701 | |
Prior | 63,750 | |
Revolving Loans | 216,189 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 2,919,663 | |
Pass | Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 50,084 | |
2020 | 110,720 | |
2019 | 18,262 | |
2018 | 30,901 | |
2017 | 11,629 | |
Prior | 0 | |
Revolving Loans | 710,995 | |
Revolving Loans Converted to Loans HFI | 90,898 | |
Total | 1,023,489 | |
Pass | Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 84,551 | |
2020 | 90,098 | |
2019 | 81,340 | |
2018 | 38,098 | |
2017 | 19,361 | |
Prior | 9,056 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 322,504 | |
Pass | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 15,546 | |
2020 | 109,157 | |
2019 | 0 | |
2018 | 1,752 | |
2017 | 681 | |
Prior | 1,282 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 128,418 | |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 79 | |
2020 | 61,502 | |
2019 | 18,639 | |
2018 | 6,710 | |
2017 | 22,140 | |
Prior | 10,525 | |
Revolving Loans | 18,863 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 138,458 | |
Special Mention | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 79 | |
2020 | 10,389 | |
2019 | 4,639 | |
2018 | 5,364 | |
2017 | 9,927 | |
Prior | 9,895 | |
Revolving Loans | 16,330 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 56,623 | |
Special Mention | Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 26,225 | |
2019 | 1,400 | |
2018 | 1,333 | |
2017 | 992 | |
Prior | 630 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 30,580 | |
Special Mention | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 24,842 | |
2019 | 12,473 | |
2018 | 0 | |
2017 | 11,221 | |
Prior | 0 | |
Revolving Loans | 2,533 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 51,069 | |
Special Mention | Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 0 | |
Special Mention | Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 46 | |
2019 | 127 | |
2018 | 13 | |
2017 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 186 | |
Special Mention | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 0 | |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 2,824 | |
2020 | 37,101 | |
2019 | 83,451 | |
2018 | 40,826 | |
2017 | 13,618 | |
Prior | 41,008 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 218,828 | |
Substandard | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 4,342 | |
2019 | 23,248 | |
2018 | 19,107 | |
2017 | 13,547 | |
Prior | 39,175 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 99,419 | |
Substandard | Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 24,323 | |
2019 | 1,084 | |
2018 | 4,385 | |
2017 | 0 | |
Prior | 1,804 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 31,596 | |
Substandard | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 55,750 | |
2018 | 16,414 | |
2017 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 72,164 | |
Substandard | Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 2,824 | |
2020 | 800 | |
2019 | 2,942 | |
2018 | 810 | |
2017 | 14 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 7,390 | |
Substandard | Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 349 | |
2019 | 427 | |
2018 | 110 | |
2017 | 57 | |
Prior | 29 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 972 | |
Substandard | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 7,287 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 7,287 | |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 0 | |
Doubtful | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 0 | |
Doubtful | Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 0 | |
Doubtful | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 0 | |
Doubtful | Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 0 | |
Doubtful | Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | 0 | |
Doubtful | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Loans HFI | 0 | |
Total | $ 0 |
LOANS & ALLOWANCE FOR CREDIT _9
LOANS & ALLOWANCE FOR CREDIT LOSSES - PAST DUE LOANS (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 188,282 | $ 122,355 |
As a % of total gross loans and leases | 1.59% | 1.13% |
Single Family - Mortgage & Warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 115,336 | $ 107,859 |
Multifamily and Commercial Mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 33,217 | 13,031 |
Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 35,164 | 0 |
Commercial & Industrial - Non-RE | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,960 | 0 |
Auto & Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,605 | 1,465 |
Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 27,398 | $ 26,648 |
As a % of total gross loans and leases | 0.23% | 0.25% |
30-59 Days Past Due | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 19,348 | $ 17,931 |
30-59 Days Past Due | Multifamily and Commercial Mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 6,952 | 7,744 |
30-59 Days Past Due | Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
30-59 Days Past Due | Commercial & Industrial - Non-RE | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
30-59 Days Past Due | Auto & Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,098 | 973 |
30-59 Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 13,402 | $ 28,568 |
As a % of total gross loans and leases | 0.11% | 0.27% |
60-89 Days Past Due | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 12,367 | $ 23,115 |
60-89 Days Past Due | Multifamily and Commercial Mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 859 | 5,287 |
60-89 Days Past Due | Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
60-89 Days Past Due | Commercial & Industrial - Non-RE | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
60-89 Days Past Due | Auto & Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 176 | 166 |
60-89 Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
90 Plus Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 147,482 | $ 67,139 |
As a % of total gross loans and leases | 1.24% | 0.63% |
90 Plus Days Past Due | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 83,621 | $ 66,813 |
90 Plus Days Past Due | Multifamily and Commercial Mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 25,406 | 0 |
90 Plus Days Past Due | Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 35,164 | 0 |
90 Plus Days Past Due | Commercial & Industrial - Non-RE | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,960 | 0 |
90 Plus Days Past Due | Auto & Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 331 | 326 |
90 Plus Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 0 | $ 0 |
LOANS & ALLOWANCE FOR CREDIT_10
LOANS & ALLOWANCE FOR CREDIT LOSSES - ALLOWANCE FOR LOAN LOSS AND RESERVE FOR UNFUNDED LOAN COMMITMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Allowance for Credit Losses - Loans | ||||||
Balance, beginning of period | $ 136,393 | $ 75,807 | $ 59,514 | $ 75,807 | $ 75,807 | $ 57,085 |
Provision for Credit Losses | 2,700 | 28,500 | 22,500 | 35,700 | ||
Charge-offs | (1,405) | (1,290) | (8,553) | (7,753) | ||
Recoveries | 419 | 373 | 1,053 | 2,065 | ||
Balance, end of period | 138,107 | 87,097 | 136,393 | 138,107 | 87,097 | |
Unfunded Loan Commitment Liabilities | ||||||
Balance, beginning period | 5,723 | 323 | 244 | 323 | 323 | 227 |
Provision for Credit Losses | 0 | 29 | (300) | 46 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Balance, end period | 5,723 | 273 | 5,723 | 5,723 | 273 | |
Total Allowance for Credit Losses | ||||||
Balance, beginning period | 142,116 | $ 76,130 | 59,758 | 76,130 | 76,130 | 57,312 |
Provision for Credit Losses | 2,700 | 28,529 | 22,200 | 35,746 | ||
Charge-offs | (1,405) | (1,290) | (8,553) | (7,753) | ||
Recoveries | 419 | 373 | 1,053 | 2,065 | ||
Balance, end period | $ 143,830 | $ 87,370 | $ 142,116 | $ 143,830 | $ 87,370 | |
Accounting Standards Update [Extensible List] | ASU 2016-13 | ASU 2016-13 | ASU 2016-13 | |||
Effect of Adoption of ASC 326 | ||||||
Allowance for Credit Losses - Loans | ||||||
Balance, beginning of period | $ 47,300 | $ 47,300 | $ 47,300 | |||
Unfunded Loan Commitment Liabilities | ||||||
Balance, beginning period | 5,700 | 5,700 | 5,700 | |||
Total Allowance for Credit Losses | ||||||
Balance, beginning period | $ 53,000 | $ 53,000 | $ 53,000 |
SUBORNIDATED NOTES - NARRATIVE
SUBORNIDATED NOTES - NARRATIVE (Details) - Subordinated Notes - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 |
Debt Instrument [Line Items] | ||
Subordinated notes issued | $ 175,000,000 | |
Effective interest rate per annum (as a percentage) | 4.875% | |
Subordinated Notes due 2026 | ||
Debt Instrument [Line Items] | ||
Redemption of note | $ 51,000,000 | |
Interest rate (as a percentage) | 6.25% | |
Percentage of principal amount redeemed | 100.00% | |
Secured Overnight Financing Rate | ||
Debt Instrument [Line Items] | ||
Basis points spread | 4.76% |
EQUITY AND STOCK-BASED COMPEN_3
EQUITY AND STOCK-BASED COMPENSATION - NARRATIVE (Details) - USD ($) | Oct. 30, 2020 | Aug. 02, 2019 | Mar. 17, 2016 | Mar. 31, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 |
Stock Award Compensation Expense | |||||||||
Stock repurchase program, maximum amount authorized | $ 100,000,000 | $ 100,000,000 | |||||||
Stock repurchase amount | $ 47,200,000 | $ 100,000,000 | $ 35,838,000 | $ 16,757,000 | $ 35,838,000 | ||||
Stock repurchased during period (in shares) | 2,399,853 | 3,567,051 | 753,597 | ||||||
Repurchased stock, average price per share (in dollars per share) | $ 19.68 | $ 28.03 | $ 22.24 | ||||||
Remaining amount under board authorization | $ 52,800,000 | $ 52,800,000 | |||||||
Preferred stock, par or stated value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
RSUs | |||||||||
Stock Award Compensation Expense | |||||||||
Restricted stock grants (in shares) | 714,569 | 614,406 | |||||||
Vesting period for restricted stock grants | 3 years | 3 years | |||||||
Stock award expense | $ 15,795,000 | $ 16,786,000 | |||||||
Income tax benefit from stock award expense | 4,726,000 | 4,880,000 | |||||||
Unrecognized compensation expense related to non-vested awards | $ 33,756,000 | 33,756,000 | |||||||
Total fair value of shares vested in the period | $ 8,366,000 | $ 2,374,000 | $ 16,612,000 | $ 11,906,000 | |||||
RSUs | Employees and Directors | |||||||||
Stock Award Compensation Expense | |||||||||
Restricted stock grants (in shares) | 614,406 | 710,032 | |||||||
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% | ||||||||
Series A Preferred Stock | |||||||||
Stock Award Compensation Expense | |||||||||
Redeemed stock (in shares) | 515 | ||||||||
Preferred stock, percentage | 6.00% | ||||||||
Preferred stock, par or stated value (in dollars per share) | $ 10,000 | $ 10,000 | $ 10,000 | $ 10,000 |
EQUITY AND STOCK-BASED COMPEN_4
EQUITY AND STOCK-BASED COMPENSATION - UNRECOGNIZED COMPENSATION EXPENSE RELATED TO NON-VESTED AWARDS (Details) - RSUs $ in Thousands | Mar. 31, 2021USD ($) |
Stock Award Compensation Expense | |
2021 | $ 5,099 |
2022 | 15,346 |
2023 | 9,534 |
2024 | 3,345 |
2025 | 331 |
Thereafter | 101 |
Total | $ 33,756 |
EQUITY AND STOCK-BASED COMPEN_5
EQUITY AND STOCK-BASED COMPENSATION - CHANGES IN RESTRICTED STOCK UNIT GRANTS (Details) - RSUs - $ / shares | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Restricted Stock Units | |||
Non-vested balance, beginning (in shares) | 1,445,540 | 1,445,540 | 1,546,848 |
Granted (in shares) | 714,569 | 614,406 | |
Vested (in shares) | (693,660) | (499,708) | |
Canceled (in shares) | (122,217) | (128,940) | |
Non-vested balance, ending (in shares) | 1,431,298 | ||
Weighted-Average Grant-Date Fair Value | |||
Non-vested balance, beginning (in dollars per share) | $ 28.62 | $ 28.62 | $ 30.73 |
Granted (in dollars per share) | 24.05 | 32.03 | |
Vested (in dollars per share) | 28.52 | 27.68 | |
Canceled (in dollars per share) | $ 29.10 | 26.31 | |
Non-vested balance, ending (in dollars per share) | $ 30.62 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Common Share | ||||
Net income | $ 53,645 | $ 56,057 | $ 161,452 | $ 138,138 |
Preferred stock dividends | 0 | (77) | (103) | (232) |
Preferred stock redemption charge | 0 | 0 | (87) | 0 |
Net income attributable to common stockholders | $ 53,645 | $ 55,980 | $ 161,262 | $ 137,906 |
Average common shares outstanding (in shares) | 59,118,884 | 60,967,892 | 59,225,409 | 61,176,715 |
Total qualifying shares (in shares) | 59,118,884 | 60,967,892 | 59,225,409 | 61,176,715 |
Basic earnings per common share (in dollars per share) | $ 0.91 | $ 0.92 | $ 2.72 | $ 2.25 |
Diluted Earnings Per Common Share | ||||
Dilutive net income attributable to common stockholders | $ 53,645 | $ 55,980 | $ 161,262 | $ 137,906 |
Average common shares issued and outstanding (in shares) | 59,118,884 | 60,967,892 | 59,225,409 | 61,176,715 |
Total dilutive common shares outstanding (in shares) | 60,482,733 | 61,523,513 | 60,453,220 | 61,811,845 |
Diluted earnings per common share (in dollars per share) | $ 0.89 | $ 0.91 | $ 2.67 | $ 2.23 |
RSUs | ||||
Diluted Earnings Per Common Share | ||||
Dilutive effect of average unvested RSUs (in shares) | 1,363,849 | 555,621 | 1,227,811 | 635,130 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - SCHEDULE OF MATURITIES OF LEASE LIABILITIES (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2021 | $ 2,443 |
2022 | 9,548 |
2023 | 9,820 |
2024 | 9,422 |
2025 | 8,791 |
Thereafter | 41,968 |
Total lease payments | 81,992 |
Less: amount representing interest | (9,949) |
Total Lease Liability | $ 72,043 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - NARRATIVE (Details) | 1 Months Ended | 3 Months Ended | ||
Dec. 31, 2015claim | Sep. 30, 2021USD ($) | Mar. 31, 2021USD ($)claim | Aug. 10, 2017claim | |
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 | |||
E*TRADE Advisory Services | Forecast | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Purchase price | $ 55,000,000 | |||
Loan Origination Commitments | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet, loan origination commitment | $ 687,100,000 | |||
Loan Origination Commitments | Sales commitment | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet, commitment | 112,400,000 | |||
Loan Origination Commitments | Fixed Interest Rate | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet, loan origination commitment | $ 72,700,000 | |||
Weighted average fixed interest rate on commitments to extend credit | 2.75% | |||
Loan Origination Commitments | Fixed Interest Rate | Sales commitment | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet, commitment | $ 112,400,000 | |||
Loan Origination Commitments | Variable Interest Rate | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet, loan origination commitment | 614,400,000 | |||
Loan Origination Commitments | Variable Interest Rate | Sales commitment | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet, commitment | $ 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Millions | 9 Months Ended | |
Mar. 31, 2021USD ($)loan | Mar. 31, 2020USD ($)loan | |
Related Party Transactions [Abstract] | ||
Number of new related party loans granted | loan | 3 | 3 |
Related party loan amount granted | $ | $ 2.3 | $ 4 |
Number of related party loans refinanced | loan | 1 | 1 |
Related party loan amount refinanced | $ | $ 1.4 | $ 1.2 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | Jun. 30, 2020USD ($) | |
Segment Reporting [Abstract] | |||||
Number of operating segments | segment | 2 | ||||
Segment Reporting Information [Line Items] | |||||
Net interest income | $ 135,669 | $ 148,616 | $ 397,088 | $ 360,339 | |
Provision (benefit) for credit losses - loans | 2,700 | 28,500 | 22,500 | 35,700 | |
Non-interest income | 23,887 | 31,542 | 88,460 | 74,285 | |
Non-interest expense | 80,807 | 71,790 | 232,650 | 204,222 | |
Income before taxes | 76,049 | 79,868 | 230,398 | 194,702 | |
Goodwill | 71,222 | 71,222 | $ 71,222 | ||
Total Assets | 14,827,874 | 14,827,874 | 13,851,900 | ||
Operating segments | Banking Business | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 135,092 | 145,372 | 390,267 | 350,184 | |
Provision (benefit) for credit losses - loans | 2,700 | 28,500 | 22,500 | 35,700 | |
Non-interest income | 16,201 | 25,259 | 68,708 | 57,274 | |
Non-interest expense | 64,040 | 56,661 | 187,733 | 160,547 | |
Income before taxes | 84,553 | 85,470 | 248,742 | 211,211 | |
Goodwill | 35,721 | 35,721 | 35,721 | ||
Total Assets | 13,423,454 | 13,423,454 | 13,018,814 | ||
Operating segments | Securities Business | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 3,847 | 3,954 | 13,002 | 13,137 | |
Provision (benefit) for credit losses - loans | 0 | 0 | 0 | 0 | |
Non-interest income | 8,369 | 6,402 | 20,725 | 19,087 | |
Non-interest expense | 13,282 | 11,137 | 35,946 | 32,656 | |
Income before taxes | (1,066) | (781) | (2,219) | (432) | |
Goodwill | 35,501 | 35,501 | 35,501 | ||
Total Assets | 1,317,859 | 1,317,859 | 737,419 | ||
Corporate/Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | (3,270) | (710) | (6,181) | (2,982) | |
Provision (benefit) for credit losses - loans | 0 | 0 | 0 | 0 | |
Non-interest income | (683) | (119) | (973) | (2,076) | |
Non-interest expense | 3,485 | 3,992 | 8,971 | 11,019 | |
Income before taxes | (7,438) | $ (4,821) | (16,125) | $ (16,077) | |
Goodwill | 0 | 0 | 0 | ||
Total Assets | $ 86,561 | $ 86,561 | $ 95,667 |