Cover Page
Cover Page - shares | 3 Months Ended | |
Sep. 30, 2023 | Oct. 16, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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, Suite 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, $0.01 par value | |
Trading Symbol | AX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 57,732,167 | |
Entity Central Index Key | 0001299709 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
ASSETS | ||
Cash and cash equivalents | $ 2,161,762 | $ 2,233,027 |
Cash segregated for regulatory purposes | 252,007 | 149,059 |
Total cash, cash equivalents and cash segregated | 2,413,769 | 2,382,086 |
Securities: | ||
Trading | 640 | 758 |
Securities—available-for-sale | 236,726 | 232,350 |
Stock of regulatory agencies | 21,533 | 21,510 |
Loans held for sale, carried at fair value | 8,014 | 23,203 |
Loans held for sale, lower of cost or fair value | 0 | 776 |
Loans—net of allowance for credit losses of $170,870 as of September 30, 2023 and $166,680 as of June 30, 2023 | 16,955,041 | 16,456,728 |
Servicing rights, carried at fair value | 29,338 | 25,443 |
Securities borrowed | 96,424 | 134,339 |
Customer, broker-dealer and clearing receivables | 285,423 | 374,074 |
Goodwill and other intangible assets—net | 149,572 | 152,149 |
Other assets | 628,726 | 545,053 |
TOTAL ASSETS | 20,825,206 | 20,348,469 |
Deposits: | ||
Non-interest bearing | 2,875,432 | 2,898,150 |
Interest bearing | 14,690,309 | 14,224,958 |
Total deposits | 17,565,741 | 17,123,108 |
Advances from the Federal Home Loan Bank | 90,000 | 90,000 |
Borrowings, subordinated notes and debentures | 447,733 | 361,779 |
Securities loaned | 116,446 | 159,832 |
Customer, broker-dealer and clearing payables | 341,915 | 445,477 |
Accounts payable and other liabilities | 287,163 | 251,114 |
Total liabilities | 18,848,998 | 18,431,310 |
COMMITMENTS AND CONTINGENCIES (Note 8) | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock—$0.01 par value; 150,000,000 shares authorized; 69,826,263 shares issued and 58,503,976 shares outstanding as of September 30, 2023; 69,465,446 shares issued and 58,943,035 shares outstanding as of June 30, 2023 | 698 | 695 |
Additional paid-in capital | 486,676 | 479,878 |
Accumulated other comprehensive income (loss)—net of tax | (6,388) | (6,610) |
Retained earnings | 1,818,254 | 1,735,609 |
Treasury stock, at cost; 11,322,287 shares as of September 30, 2023 and 10,522,411 shares as of June 30, 2023 | (323,032) | (292,413) |
Total stockholders’ equity | 1,976,208 | 1,917,159 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 20,825,206 | $ 20,348,469 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
ASSETS | ||
Allowance for loan and lease losses | $ 170,870 | $ 166,680 |
STOCKHOLDERS’ EQUITY: | ||
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) | 69,826,263 | 69,465,446 |
Common stock, shares outstanding (in shares) | 58,503,976 | 58,943,035 |
Treasury stock, at cost (in shares) | 11,322,287 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
INTEREST AND DIVIDEND INCOME: | ||
Loans, including fees | $ 326,974 | $ 208,338 |
Securities borrowed and customer receivables | 4,995 | 4,384 |
Investments and other | 31,983 | 11,064 |
Total interest and dividend income | 363,952 | 223,786 |
INTEREST EXPENSE: | ||
Deposits | 146,110 | 32,505 |
Advances from the Federal Home Loan Bank | 529 | 5,163 |
Securities loaned | 449 | 943 |
Other borrowings | 5,709 | 4,700 |
Total interest expense | 152,797 | 43,311 |
Net interest income | 211,155 | 180,475 |
Total provision for credit losses | 7,000 | 8,750 |
Net interest income, after provision for credit losses | 204,155 | 171,725 |
NON-INTEREST INCOME: | ||
Broker-dealer fee income | 12,477 | 9,178 |
Advisory fee income | 8,219 | 6,959 |
Banking and service fees | 8,350 | 6,514 |
Mortgage banking and servicing rights income | 3,878 | 3,365 |
Prepayment penalty fee income | 1,583 | 1,192 |
Total non-interest income | 34,507 | 27,208 |
NON-INTEREST EXPENSE: | ||
Salaries and related costs | 55,811 | 46,996 |
Data and operational processing | 16,084 | 14,022 |
Depreciation and amortization | 5,878 | 6,094 |
Advertising and promotional | 10,375 | 6,370 |
Professional services | 9,811 | 8,087 |
Occupancy and equipment | 3,846 | 4,054 |
FDIC and regulatory fees | 4,449 | 3,735 |
Broker-dealer clearing charges | 4,012 | 2,829 |
General and administrative expense | 10,240 | 23,900 |
Total non-interest expense | 120,506 | 116,087 |
INCOME BEFORE INCOME TAXES | 118,156 | 82,846 |
INCOME TAXES | 35,511 | 24,439 |
NET INCOME | 82,645 | 58,407 |
COMPREHENSIVE INCOME | $ 82,867 | $ 55,570 |
Basic earnings per common share (in dollars per share) | $ 1.40 | $ 0.98 |
Diluted earnings per common share (in dollars per share) | $ 1.38 | $ 0.97 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME | $ 82,645 | $ 58,407 |
Net unrealized gain (loss) from available-for-sale securities, net of income tax expense (benefit) of $112 and $(1,215) for the three months ended September 30, 2023 and 2022, respectively. | 222 | (2,837) |
Other comprehensive income (loss) | 222 | (2,837) |
Comprehensive income | $ 82,867 | $ 55,570 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net unrealized gain (loss) from available-for-sale securities, tax expense (benefit) | $ 112 | $ (1,215) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss), Net of Income Tax | Retained Earnings |
Common stock, issued and treasury, beginning balance (in shares) at Jun. 30, 2022 | 68,859,722 | |||||
Common stock, treasury, beginning balance (in shares) at Jun. 30, 2022 | (9,081,773) | |||||
Common stock, outstanding, beginning balance (in shares) at Jun. 30, 2022 | 59,777,949 | |||||
Stockholder's equity, beginning balance at Jun. 30, 2022 | $ 1,642,973 | $ 689 | $ (237,011) | $ 453,784 | $ (2,933) | $ 1,428,444 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 58,407 | 58,407 | ||||
Other comprehensive income (loss) | (2,837) | (2,837) | ||||
Stock-based compensation activity, issued (in shares) | 291,430 | |||||
Stock-based compensation activity, treasury stock (in shares) | (70,706) | |||||
Stock-based compensation activity, outstanding (in shares) | 220,724 | |||||
Stock-based compensation activity | 2,429 | $ 3 | $ (2,891) | 5,317 | ||
Common stock, issued and treasury, ending balance (in shares) at Sep. 30, 2022 | 69,151,152 | |||||
Common stock, treasury, ending balance (in shares) at Sep. 30, 2022 | (9,152,479) | |||||
Common stock, outstanding, ending balance (in shares) at Sep. 30, 2022 | 59,998,673 | |||||
Stockholder's equity, ending balance at Sep. 30, 2022 | $ 1,700,972 | $ 692 | $ (239,902) | 459,101 | (5,770) | 1,486,851 |
Common stock, issued and treasury, beginning balance (in shares) at Jun. 30, 2023 | 69,465,446 | 69,465,446 | ||||
Common stock, treasury, beginning balance (in shares) at Jun. 30, 2023 | (10,522,411) | |||||
Common stock, outstanding, beginning balance (in shares) at Jun. 30, 2023 | 58,943,035 | 58,943,035 | ||||
Stockholder's equity, beginning balance at Jun. 30, 2023 | $ 1,917,159 | $ 695 | $ (292,413) | 479,878 | (6,610) | 1,735,609 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 82,645 | 82,645 | ||||
Other comprehensive income (loss) | 222 | 222 | ||||
Purchase of treasury stock (in shares) | (648,208) | (648,208) | ||||
Purchase of treasury stock | (24,536) | $ (24,536) | ||||
Stock-based compensation activity, issued (in shares) | 360,817 | |||||
Stock-based compensation activity, treasury stock (in shares) | (151,668) | |||||
Stock-based compensation activity, outstanding (in shares) | 209,149 | |||||
Stock-based compensation activity | $ 718 | $ 3 | $ (6,083) | 6,798 | ||
Common stock, issued and treasury, ending balance (in shares) at Sep. 30, 2023 | 69,826,263 | 69,826,263 | ||||
Common stock, treasury, ending balance (in shares) at Sep. 30, 2023 | (11,322,287) | (11,322,287) | ||||
Common stock, outstanding, ending balance (in shares) at Sep. 30, 2023 | 58,503,976 | 58,503,976 | ||||
Stockholder's equity, ending balance at Sep. 30, 2023 | $ 1,976,208 | $ 698 | $ (323,032) | $ 486,676 | $ (6,388) | $ 1,818,254 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 82,645 | $ 58,407 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 5,878 | 6,094 |
Other accretion and amortization | (3,101) | 707 |
Stock-based compensation expense | 6,802 | 5,320 |
Trading activity | 118 | 1,683 |
Provision (benefit) for credit losses - loans | 7,000 | 8,750 |
Deferred income taxes | 3,526 | (3,807) |
Origination of loans held for sale | (50,607) | (70,073) |
Unrealized and realized gains on loans held for sale | (1,796) | (2,433) |
Proceeds from sale of loans held for sale | 65,138 | 67,610 |
Changes in servicing rights | (3,448) | (953) |
Net change in assets and liabilities which provide (use) cash: | ||
Securities borrowed | 37,915 | 251,358 |
Customer, broker-dealer and clearing receivables | 88,651 | 61,015 |
Other Assets | (86,123) | (6,347) |
Securities loaned | (43,386) | (267,511) |
Customer, broker-dealer and clearing payables | (103,562) | (65,484) |
Accounts payable and other liabilities | 28,220 | 26,485 |
Net cash provided by operating activities | 33,870 | 70,821 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of available-for-sale investment securities | (4,796) | 0 |
Proceeds from sale and repayment of available-for-sale investment securities | 718 | 1,029 |
Purchase of stock of regulatory agencies | 0 | (54,964) |
Proceeds from redemption of stock of regulatory agencies | 0 | 54,964 |
Origination of loans held for investment | (2,560,043) | (2,486,224) |
Proceeds from sale of loans originally classified as held for investment | 0 | 13,965 |
Mortgage warehouse loan activity, net | (45,289) | 103,812 |
Proceeds from sale of other real estate owned and repossessed assets | 918 | 719 |
Acquisition of business activity, net of cash acquired | 0 | (5,009) |
Purchase of loans and leases, net of discounts and premiums | (51,892) | (51) |
Principal repayments on loans | 2,160,911 | 1,229,390 |
Purchases of furniture, equipment, software and intangibles | (6,492) | (7,921) |
Net cash used in investing activities | (505,965) | (1,150,290) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in deposits | 442,633 | 1,230,209 |
Repayments of the Federal Home Loan Bank term advances | 0 | (5,000) |
Net (repayment) proceeds of other borrowings | 85,700 | (19,500) |
Tax payments related to settlement of restricted stock units | (6,083) | (2,891) |
Purchase of treasury stock | (18,472) | 0 |
Net cash provided by financing activities | 503,778 | 1,202,818 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 31,683 | 123,349 |
CASH AND CASH EQUIVALENTS—Beginning of year | 2,382,086 | 1,574,699 |
CASH AND CASH EQUIVALENTS—End of period | 2,413,769 | 1,698,048 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Interest paid on interest-bearing liabilities | 152,359 | 42,429 |
Income taxes paid | 52,664 | 37,277 |
Transfers to other real estate and repossessed vehicles from loans held for investment | 1,847 | 5,522 |
Transfers from loans held for sale to loans and leases held for investment | $ 2,783 | $ 682 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Sep. 30, 2023 | |
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 (“Axos Nevada Holding” and collectively, the “Company”). Axos, the Bank and Axos Nevada Holding comprise substantially all of the Company’s assets and liabilities and revenues and expenses. Axos Bank and its wholly owned subsidiaries constitute the Banking Business segment and Axos Nevada Holding and its wholly owns the subsidiaries constitute the Securities Business segment. All significant intercompany balances and transactions have been eliminated in consolidation. The Notes to the Consolidated Financial Statements are an integral part of the Company’s financial statements. 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. Certain amounts reported in prior periods have been reclassified to conform with the current presentation. Results for the three months ended September 30, 2023 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 not repeated herein 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, 2023 included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023 (“2023 Form 10-K”) filed with the SEC. Significant Accounting Policies For further information regarding the Company’s significant accounting policies see Note 1 — “Organizations and Summary of Significant Accounting Policies” in the 2023 Form 10-K. During the three months ended September 30, 2023 there were no significant updates to the Company’s significant accounting policies, other than as described below and for the adoption of the accounting standards noted herein. New Accounting Standards The Financial Accounting Standards Board (“FASB”) issued three Accounting Standards Updates (“ASUs”) (2020-04, 2021-04 and 2022-06) all of which provide guidance to alleviate the burden in accounting for reference rate reform by allowing certain expedients and exceptions in applying generally accepted accounting principles to contracts, hedging relationships, and other transactions impacted by reference rate reform. The provisions apply only to those transactions that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. Adoption of the provisions are optional and are effective from March 12, 2020 through December 31, 2024. The Company adopted these ASUs on July 1, 2023, and there was no impact on its financial condition or results of operations upon adoption. In March 2022, the FASB issued ASU 2022-02 which eliminates the accounting guidance for troubled debt restructurings by creditors that have adopted the current expected credit losses (“CECL”) model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The Company adopted this ASU on a prospective basis on July 1, 2023, and there was no impact on its financial condition or results of operations upon adoption. See Note 5 — “Loans & Allowance for Credit Losses” for the new disclosures as a result of the adoption of this accounting guidance. |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONSOn August 23, 2023, the Company agreed to acquire approximately $52 million of marine floor financing loans at par value along with other assets for an additional $2 million, primarily consisting of servicing rights as well as certain employees. The transaction was accounted for as an asset acquisition and such assets are included in the Company’s unaudited Condensed Consolidated Balance Sheets as of September 30, 2023. |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE The following tables sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis at September 30, 2023 and June 30, 2023. Assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement: September 30, 2023 (Dollars in thousands) Significant Other Significant Total ASSETS: Securities—Trading $ 640 $ — $ 640 Securities—Available-for-sale: Agency MBS 1 27,624 — 27,624 Non-Agency MBS 2 — 206,076 206,076 Municipal 3,026 — 3,026 Total—Securities—Available-for-sale $ 30,650 $ 206,076 $ 236,726 Loans held for sale $ 8,014 $ — $ 8,014 Servicing rights $ — $ 29,338 $ 29,338 Other assets—Derivative instruments $ 1,295 $ — $ 1,295 LIABILITIES: Accrued expense and other liabilities—Derivative instruments $ 934 $ — $ 934 June 30, 2023 (Dollars in thousands) Significant Other Significant Total ASSETS: Securities—Trading $ 758 $ — $ 758 Securities—Available-for-sale: Agency MBS 1 23,947 — 23,947 Non-Agency MBS 2 — 205,005 205,005 Municipal 3,398 — 3,398 Total—Securities—Available-for-sale $ 27,345 $ 205,005 $ 232,350 Loans held for sale $ 23,203 $ — $ 23,203 Servicing rights $ — $ 25,443 $ 25,443 Other assets—Derivative instruments $ 919 $ — $ 919 LIABILITIES: Accrued expense and other liabilities—Derivative instruments $ 691 $ — $ 691 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 first-lien mortgage loans on commercial properties or by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option adjustable rate mortgages (“ARMs”). The following tables present additional information about assets measured at fair value on a recurring basis and for which the Company has utilized Level 3 inputs to determine fair value: For the Three Months Ended September 30, 2023 (Dollars in thousands) Securities – Available-for-Sale: Non-Agency RMBS Servicing Rights 1 Total Opening Balance $ 205,005 $ 25,443 $ 230,448 Total gains or losses for the period: Included in earnings—Mortgage banking and servicing rights income — 1,858 1,858 Included in other comprehensive income 1,316 — 1,316 Purchases, retentions, issues, sales and settlements: Purchases/Retentions — 2,037 2,037 Settlements (245) — (245) Closing balance $ 206,076 $ 29,338 $ 235,414 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ 1,858 $ 1,858 1 Earnings from servicing rights were attributable to: time and payoffs, representing a decrease in servicing rights value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period of $0.2 million for the three months ended September 30, 2023 and an increase in servicing rights value resulting from market-driven changes in interest rates of $2.1 million for the three months ended September 30, 2023. Additions to servicing rights were related to purchases and servicing rights retained upon sale of loans held for sale. For the Three Months Ended September 30, 2022 (Dollars in thousands) Securities – Available-for-Sale: Non-Agency RMBS Servicing Rights 1 Derivative Instruments, net Total Opening Balance $ 186,814 $ 25,213 $ 464 $ 212,491 Total gains or losses for the period: Included in earnings—Mortgage banking and servicing rights income — 953 71 1,024 Included in other comprehensive income (2,473) — — (2,473) Purchases, retentions, issues, sales and settlements: Purchases/Retentions — 207 — 207 Settlements (329) — — (329) Closing balance $ 184,012 $ 26,373 $ 535 $ 210,920 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ 953 $ 71 $ 1,024 1 Earnings from servicing rights were attributable to: time and payoffs, representing a decrease in servicing rights value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period of $0.4 million for the three months ended September 30, 2022 and an increase in servicing rights value resulting from market-driven changes in interest rates of $1.4 million for the three months ended September 30, 2022. Additions to servicing rights were retained upon sale of loans held for sale. The table below summarizes the quantitative information about Level 3 fair value measurements as of the dates indicated: September 30, 2023 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Securities – Non-agency MBS $ 206,076 Discounted Cash Flow Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate over SOFR Swaps 0.0 to 58.1% (34.9%) 0.0 to 7.6% (2.4%) 0.0 to 68.7% (28.5%) 2.6 to 6.5% (2.6%) Servicing Rights $ 29,338 Discounted Cash Flow Projected Constant Prepayment Rate, 4.8 to 39.9% (13.0%) 1.7 to 15.8 (7.4) 9.5 to 11.5% (9.8%) June 30, 2023 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Securities – Non-agency MBS $ 205,005 Discounted Cash Flow Projected Constant Prepayment Rate, 0.0 to 59.7% (32.0%) 0.0 to 7.5% (2.4%) 0.0 to 68.7% (28.5%) 2.6 to 7.5% (2.7%) Servicing Rights $ 25,443 Discounted Cash Flow Projected Constant Prepayment Rate, 6.1 to 40.1% (12.6%) 1.8 to 10.9 (7.7) 9.5 to 11.5% (9.6%) For mortgage-backed securities, 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. For servicing rights, significant increases in projected prepayment rates or discount rates in isolation would result in a significantly lower fair value measurement, while a significant increase in expected life in isolation would result in a significantly higher fair value measurement. Generally, a change in the projected prepayment rates is accompanied by a directionally opposite change in expected life. The aggregate fair value of loans held for sale, carried at fair value, contractual balance (including accrued interest), and unrealized gain were: (Dollars in thousands) September 30, 2023 June 30, 2023 Aggregate fair value $ 8,014 $ 23,203 Contractual balance 7,878 22,844 Unrealized gain $ 136 $ 359 The total interest income and amount of gains and losses from changes in fair value included in earnings for loans held for sale were: For the Three Months Ended September 30, (Dollars in thousands) 2023 2022 Interest income $ 189 $ 50 Change in fair value (129) 91 Total $ 60 $ 141 The table below summarizes assets measured for impairment on a non-recurring basis: September 30, 2023 (Dollars in thousands) Quoted Prices in Significant Other Significant Balance Other real estate owned and repossessed vehicles: Single family real estate $ — $ — $ 5,574 $ 5,574 Multifamily real estate — — 1,392 1,392 Autos $ — $ — $ 1,813 $ 1,813 Total $ — $ — $ 8,779 $ 8,779 June 30, 2023 (Dollars in thousands) Quoted Prices in Significant Other Significant Balance Other real estate owned and repossessed vehicles: Single family real estate $ — $ — $ 5,574 $ 5,574 Multifamily real estate — — 1,392 1,392 Autos — — 1,133 1,133 Total $ — $ — $ 8,099 $ 8,099 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 $8.8 million at September 30, 2023, after write-downs of $0.4 million, and a net carrying amount of $8.1 million at June 30, 2023, after write-downs of $1.7 million. The following table presents quantitative information about Level 3 fair value measurements for other real estate owned and repossessed vehicles measured at fair value on a non-recurring basis at the periods indicated: September 30, 2023 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) 1 Other real estate owned and repossessed vehicles 2 : Single family real estate $ 5,574 Sales comparison approach Differences between the comparable sales 62.1 to 93.6% (62.1%) Multifamily real estate $ 1,392 Sales comparison approach and income approach Differences between the comparable sales and differences in net operating income expectations, capitalization rate 49.8% to 54.5% (49.8%) June 30, 2023 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) 1 Other real estate owned and repossessed vehicles 2 : Single family real estate $ 5,574 Sales comparison approach Differences between the comparable sales 62.1 to 93.6% (62.1%) Multifamily real estate $ 1,392 Sales comparison approach and income approach Differences between the comparable sales and differences in net operating income expectations, capitalization rate 49.8 to 54.5%% (49.8%) 1 For other real estate owned and repossessed vehicles 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 asset being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted. 2 Repossessed vehicles are valued using third-party pricing information of comparable vehicle sales without adjustment. Fair Value of Financial Instruments Carrying amounts and estimated fair values of financial instruments at September 30, 2023 and June 30, 2023 were: September 30, 2023 Fair Value (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 2,413,769 $ 2,413,769 $ — $ — $ 2,413,769 Securities—trading 640 — 640 — 640 Securities—available-for-sale 236,726 — 30,650 206,076 236,726 Stock of regulatory agencies 21,533 — 21,533 — 21,533 Loans held for sale, at fair value 8,014 — 8,014 — 8,014 Loans held for investment—net 16,955,041 — — 16,935,835 16,935,835 Securities borrowed 96,424 — — 102,084 102,084 Customer, broker-dealer and clearing receivables 285,423 — — 294,499 294,499 Servicing rights 29,338 — — 29,338 29,338 Other assets - derivative instruments 1,295 — 1,295 — 1,295 Financial liabilities: Total deposits 17,565,741 — 17,481,019 — 17,481,019 Advances from the Federal Home Loan Bank 90,000 — 82,234 — 82,234 Borrowings, subordinated notes and debentures 447,733 — 414,462 — 414,462 Securities loaned 116,446 — — 116,097 116,097 Customer, broker-dealer and clearing payables 341,915 — — 341,915 341,915 Accrued expense and other liabilities - derivative instruments 934 — 934 — 934 June 30, 2023 Fair Value (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 2,382,086 $ 2,382,086 $ — $ — $ 2,382,086 Securities—trading 758 — 758 — 758 Securities—available-for-sale 232,350 — 27,345 205,005 232,350 Stock of regulatory agencies 21,510 — 21,510 — 21,510 Loans held for sale, at fair value 23,203 — 23,203 — 23,203 Loans held for sale, at lower of cost or fair value 776 — — 780 780 Loans held for investment—net 16,456,728 — — 16,417,183 16,417,183 Securities borrowed 134,339 — — 143,461 143,461 Customer, broker-dealer and clearing receivables 374,074 — — 386,082 386,082 Servicing rights 25,443 — — 25,443 25,443 Other assets - derivative instruments 919 — 919 — 919 Financial liabilities: Total deposits 17,123,108 — 17,064,084 — 17,064,084 Advances from the Federal Home Loan Bank 90,000 — 83,192 — 83,192 Borrowings, subordinated notes and debentures 361,779 — 327,564 — 327,564 Securities loaned 159,832 — — 159,416 159,416 Customer, broker-dealer and clearing payables 445,477 — — 445,447 445,447 Accrued expense and other liabilities - derivative instruments 691 — 691 — 691 Carrying amount is the estimated fair value for cash and cash equivalents, stock of regulatory agencies, interest bearing deposits, accrued interest receivable and payable, demand deposits, short-term debt, and variable rate loans or deposits that reprice frequently and fully. For fixed rate loans, deposits, borrowings or subordinated debt and for variable rate loans, 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, loans held for sale and derivatives can be found in Note 3 — “Fair Value” of the 2023 Form 10-K. The fair value of off-balance sheet items is not material. |
SECURITIES
SECURITIES | 3 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The amortized cost, carrying amount and fair value for the securities available-for-sale for the following periods were: September 30, 2023 Trading Available-for-sale (Dollars in thousands) Fair Amortized Unrealized Unrealized Fair Mortgage-backed securities (MBS): U.S. agencies 1 $ — $ 31,277 $ 1 $ (3,654) $ 27,624 Non-agency 2 — 210,027 723 (4,674) 206,076 Total mortgage-backed securities — 241,304 724 (8,328) 233,700 Non-MBS: Municipal 640 3,689 — (663) 3,026 Total Non-MBS 640 3,689 — (663) 3,026 Total debt securities $ 640 $ 244,993 $ 724 $ (8,991) $ 236,726 June 30, 2023 Trading Available-for-sale (Dollars in thousands) Fair Amortized Unrealized Unrealized Fair Mortgage-backed securities (MBS): U.S. agencies 1 $ — $ 27,024 $ — $ (3,077) $ 23,947 Non-agency 2 — 210,271 711 (5,977) 205,005 Total mortgage-backed securities — 237,295 711 (9,054) 228,952 Non-MBS: Municipal 758 3,656 — (258) 3,398 Total Non-MBS 758 3,656 — (258) 3,398 Total debt securities $ 758 $ 240,951 $ 711 $ (9,312) $ 232,350 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 first-lien mortgage loans on commercial properties or by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option ARM mortgages. No credit losses were recognized on available-for-sale securities in the three months ended September 30, 2023 and September 30, 2022. Based on the underlying government guarantees and other credit protection supporting our securities, no allowance for credit losses for available-for-sale debt securities was recorded at September 30, 2023 and June 30, 2023. The Company has no allowance for the available-for-sale debt securities in an unrealized loss position based on an analysis of: (1) the credit characteristics of the securities, including the forecasted cash flows, credit ratings, credit enhancement, and external government backing, as applicable, and (2) whether the Company is intending to sell or is required to sell any securities before recovering the amortized cost basis of the securities. The unrealized losses on available-for-sale securities are primarily driven by the increase in interest rates since the securities were purchased. The face amounts of available-for-sale debt securities pledged to secure borrowings at both September 30, 2023 and June 30, 2023 were $0.9 million. During the three months ended September 30, 2023 and 2022, the Company sold no available-for-sale securities. Securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were: September 30, 2023 Available-for-sale securities in loss position for Less Than More Than Total (Dollars in thousands) Fair Gross Fair Gross Fair Gross MBS: U.S. agencies $ 7,321 $ (174) $ 20,134 $ (3,480) $ 27,455 $ (3,654) Non-agency 72,567 (53) 131,874 (4,621) 204,441 (4,674) Total MBS 79,888 (227) 152,008 (8,101) 231,896 (8,328) Non-MBS: Municipal — — 3,026 (663) 3,026 (663) Total Non-MBS — — 3,026 (663) 3,026 (663) Total debt securities $ 79,888 $ (227) $ 155,034 $ (8,764) $ 234,922 $ (8,991) June 30, 2023 Available-for-sale securities in loss position for Less Than More Than Total (Dollars in thousands) Fair Gross Fair Gross Fair Gross MBS: U.S. agencies $ 3,182 $ (16) $ 20,642 $ (3,061) $ 23,824 $ (3,077) Non-agency 107,982 (1,808) 95,385 (4,169) 203,367 (5,977) Total MBS 111,164 (1,824) 116,027 (7,230) 227,191 (9,054) Non-MBS: Municipal — — 3,398 (258) 3,398 (258) Total Non-MBS — — 3,398 (258) 3,398 (258) Total debt securities $ 111,164 $ (1,824) $ 119,425 $ (7,488) $ 230,589 $ (9,312) The components of the Company’s accumulated other comprehensive income (loss) are as follows: (Dollars in thousands) September 30, June 30, Available-for-sale debt securities—net unrealized gains (losses) $ (8,266) $ (8,601) Available-for-sale debt securities—non-credit related (845) (845) Subtotal (9,111) (9,446) Tax benefit (expense) 2,723 2,836 Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss) $ (6,388) $ (6,610) The following table sets forth the expected maturity distribution of our mortgage-backed securities, which is based on assumed prepayment rates, and the contractual maturity distribution of our non-MBS securities: At September 30, 2023 (Dollars in thousands) Total Amount Due Within One Year Due after One but within Five Years Due after Five but within Ten Years Due After Ten Years MBS: Agency 1 $ 31,277 $ 6,444 $ 14,821 $ 7,460 $ 2,552 Non-Agency 2 $ 210,027 $ 127,741 $ 79,585 $ 1,640 $ 1,061 Total MBS $ 241,304 $ 134,185 $ 94,406 $ 9,100 $ 3,613 Non-MBS: Municipal $ 3,689 $ — $ — $ — $ 3,689 Total Non-MBS $ 3,689 $ — $ — $ — $ 3,689 Available-for-sale—Amortized Cost $ 244,993 $ 134,185 $ 94,406 $ 9,100 $ 7,302 Available-for-sale—Fair value $ 236,726 $ 130,977 $ 91,040 $ 8,203 $ 6,506 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, Alt-A or pay-option ARM mortgages and commercial mortgages. |
LOANS & ALLOWANCE FOR CREDIT LO
LOANS & ALLOWANCE FOR CREDIT LOSSES | 3 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
LOANS & ALLOWANCE FOR CREDIT LOSSES | LOANS & ALLOWANCE FOR CREDIT LOSSES 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. For further detail of the segments of the Company’s loan portfolio, refer to Note 1 — “Organizations and Summary of Significant Accounting Policies” within the 2023 Form 10-K. The following table sets forth the composition of the loan portfolio as of the dates indicated: (Dollars in thousands) September 30, 2023 June 30, 2023 Single Family - Mortgage & Warehouse $ 4,313,906 $ 4,173,833 Multifamily and Commercial Mortgage 2,961,981 3,082,225 Commercial Real Estate 6,168,626 6,199,818 Commercial & Industrial - Non-RE 3,208,969 2,639,650 Auto & Consumer 506,011 546,264 Other 2,438 10,236 Total gross loans and leases 17,161,931 16,652,026 Allowance for credit losses - loans (170,870) (166,680) Unaccreted premiums (discounts) and loan fees (36,020) (28,618) Total net loans and leases $ 16,955,041 $ 16,456,728 Accrued interest receivable on loans held for investments totaled $90.8 million and $77.9 million as of September 30, 2023 and June 30, 2023, respectively. At September 30, 2023 and June 30, 2023, the Company has pledged certain loans totaling $5,172.6 million and $5,128.4 million, respectively, to the Federal Home Loan Bank (“FHLB”) and $3,642.6 million and $3,689.5 million, respectively, to the Federal Reserve Bank of San Francisco (“FRBSF”). The following table presents the components of the provision for credit losses: For the Three Months Ended September 30, (Dollars in thousands) 2023 2022 Provision for credit losses - loans $ 5,750 $ 8,750 Provision for credit losses - unfunded lending commitments 1,250 — Total provision for credit losses $ 7,000 $ 8,750 The following tables summarize activity in the allowance for credit losses - loans by portfolio segment for the periods indicated. For the Three Months Ended September 30, 2023 (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, 2023 $ 17,503 $ 16,848 $ 72,755 $ 46,347 $ 13,212 $ 15 $ 166,680 Provision (benefit) for credit losses - loans (10) (974) (1,400) 8,245 (105) (6) 5,750 Charge-offs (80) — — — (2,281) — (2,361) Recoveries 13 — — — 788 — 801 Balance at September 30, 2023 $ 17,426 $ 15,874 $ 71,355 $ 54,592 $ 11,614 $ 9 $ 170,870 For the Three Months Ended September 30, 2022 (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, 2022 $ 19,670 $ 14,655 $ 69,339 $ 30,808 $ 14,114 $ 31 $ 148,617 Provision (benefit) for credit losses - loans (1,642) (6) 4,437 3,557 2,405 (1) 8,750 Charge-offs (4) — — — (2,362) — (2,366) Recoveries 15 — — 18 438 — 471 Balance at September 30, 2022 $ 18,039 $ 14,649 $ 73,776 $ 34,383 $ 14,595 $ 30 $ 155,472 For the three months ended September 30, 2023, the allowance for credit losses for loans increased primarily due to net loan growth, mainly in the Commercial & Industrial - Non-RE portfolio, and a shift in weighting towards the more adverse forecast scenarios reflecting uncertainty in the economic environment. L oan products within each portfolio contain varying collateral types which impact the estimate of the loss given default utilized in the calculation of the allowance. For further discussion of the model method of estimating expected lifetime credit losses to Note 1 — “Organizations and Summary of Significant Accounting Policies” within the 2023 Form 10-K. The following tables present a summary of the activity in the allowance for credit losses for off-balance sheet lending commitments for the periods indicated: Three Months Ended September 30, (Dollars in thousands) 2023 2022 BALANCE—beginning June 30 $ 10,473 $ 10,973 Provision for credit losses - unfunded lending commitments 1,250 — BALANCE—end September 30 $ 11,723 $ 10,973 The increase in the allowance for off-balance sheet lending commitments at September 30, 2023 compared to June 30, 2023, was primarily driven by an increase in the amount of Commercial & Industrial - Non-RE unfunded commitments. The following table presents loan-to-value (“LTV”) for the Company’s real estate loans outstanding as of September 30, 2023: Total Real Estate Loans Single Family - Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Weighted-Average LTV 48.9 % 57.3 % 53.6 % 40.7 % Median LTV 54.0 % 56.9 % 50.0 % 41.6 % The Company’s effective weighted-average LTV was 48.7% for real estate loans originated during the three months ended September 30, 2023. Credit Quality Disclosures. The following tables provide the composition of loans that are performing and nonaccrual by portfolio segment as of the dates indicated: September 30, 2023 (Dollars in thousands) Single Family-Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Performing $ 4,277,324 $ 2,923,154 $ 6,142,524 $ 3,205,980 $ 503,625 $ 2,398 $ 17,055,005 Nonaccrual $ 36,582 $ 38,827 $ 26,102 $ 2,989 $ 2,386 $ 40 $ 106,926 Total $ 4,313,906 $ 2,961,981 $ 6,168,626 $ 3,208,969 $ 506,011 $ 2,438 $ 17,161,931 Non accrual loans to total loans 0.62 % June 30, 2023 (Dollars in thousands) Single Family-Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Performing $ 4,143,119 $ 3,047,122 $ 6,184,966 $ 2,636,661 $ 544,807 $ 8,191 $ 16,564,866 Nonaccrual 30,714 35,103 14,852 2,989 1,457 2,045 87,160 Total $ 4,173,833 $ 3,082,225 $ 6,199,818 $ 2,639,650 $ 546,264 $ 10,236 $ 16,652,026 Non accrual loans to total loans 0.52 % There were no nonaccrual loans without an allowance for credit losses as of September 30, 2023 and June 30, 2023. There was no interest income recognized on nonaccrual loans in the three months ended September 30, 2023 and 2022. Credit Quality Indicators. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends. The Company analyzes loans individually by classifying the loans based on credit risk. The Company uses the following definitions for risk ratings. Pass. Loans classified as pass are well protected by the current net worth and paying capacity of the obligor or by the fair value of any underlying collateral, less cost to acquire and sell in a timely manner. Special Mention . Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard . Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful . Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The Company reviews and grades loans following a continuous review process, featuring coverage of all loan types and business lines at least quarterly. Continuous reviewing provides more effective risk monitoring because it immediately tests for potential impacts caused by changes in personnel, policy, products or underwriting standards. The following tables presents the composition of loans by portfolio segment, fiscal year of origination and credit quality indicator, and the amount of gross charge-offs for the three months ended September 30, 2023 : September 30, 2023 Loans Held for Investment Origination Year Revolving Loans Total (Dollars in thousands) 2024 2023 2022 2021 2020 Prior Single Family-Mortgage & Warehouse Pass $ 209,544 $ 673,266 $ 1,306,937 $ 514,928 $ 313,863 $ 848,948 $ 295,078 $ 4,162,564 Special Mention — 19,368 18,998 6,468 11,028 36,745 — 92,607 Substandard — — 8,965 4,590 14,345 30,835 — 58,735 Doubtful — — — — — — — — Total 209,544 692,634 1,334,900 525,986 339,236 916,528 295,078 4,313,906 Gross charge-offs — — — — — 80 — 80 Multifamily and Commercial Mortgage Pass 9,328 478,469 974,390 479,725 299,551 597,311 — 2,838,774 Special Mention — 10,719 — 2,000 1,358 — — 14,077 Substandard — — 13,618 17,707 35,019 42,786 — 109,130 Doubtful — — — — — — — — Total 9,328 489,188 988,008 499,432 335,928 640,097 — 2,961,981 Gross charge-offs — — — — — — — — Commercial Real Estate Pass 501,339 1,867,923 2,113,338 563,541 20,737 62,928 840,449 5,970,255 Special Mention — — 45,130 — 7,871 15,887 — 68,888 Substandard — — 45,242 38,902 15,000 30,339 — 129,483 Doubtful — — — — — — — — Total 501,339 1,867,923 2,203,710 602,443 43,608 109,154 840,449 6,168,626 Gross charge-offs — — — — — — — — Commercial & Industrial - Non-RE Pass 248,136 416,819 287,067 28,675 9,041 5,866 2,129,452 3,125,056 Special Mention — 6,806 35,430 — 10,986 — 12,046 65,268 Substandard — — 14,624 1,032 — 2,989 — 18,645 Doubtful — — — — — — — — Total 248,136 423,625 337,121 29,707 20,027 8,855 2,141,498 3,208,969 Gross charge-offs — — — — — — — — Auto & Consumer Pass 10,130 148,607 234,996 62,579 21,381 24,704 — 502,397 Special Mention — 338 576 69 26 58 — 1,067 Substandard — 579 1,191 385 153 239 — 2,547 Doubtful — — — — — — — — Total 10,130 149,524 236,763 63,033 21,560 25,001 — 506,011 Gross charge-offs — 711 1,093 378 73 26 — 2,281 Other Pass 905 — — 1,190 — 303 — 2,398 Special Mention — — — — — — — — Substandard — — — 40 — — — 40 Doubtful — — — — — — — — Total 905 — — 1,230 — 303 — 2,438 Gross charge-offs — — — — — — — — Total Pass 979,382 3,585,084 4,916,728 1,650,638 664,573 1,540,060 3,264,979 16,601,444 Special Mention — 37,231 100,134 8,537 31,269 52,690 12,046 241,907 Substandard — 579 83,640 62,656 64,517 107,188 — 318,580 Doubtful — — — — — — — — Total $ 979,382 $ 3,622,894 $ 5,100,502 $ 1,721,831 $ 760,359 $ 1,699,938 $ 3,277,025 $ 17,161,931 As a % of total gross loans 5.71% 21.11% 29.72% 10.03% 4.43% 9.91% 19.09% 100.0% Total gross charge-offs $ — $ 711 $ 1,093 $ 378 $ 73 $ 106 $ — $ 2,361 June 30, 2023 Loans Held for Investment Origination Year Revolving Loans Total (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Single Family-Mortgage & Warehouse Pass $ 730,498 $ 1,346,804 $ 522,873 $ 324,458 $ 255,547 $ 639,401 $ 243,175 $ 4,062,756 Special Mention — 7,280 7,026 8,303 12,942 18,244 6,614 60,409 Substandard — 5,188 4,686 14,384 2,024 24,386 — 50,668 Doubtful — — — — — — — — Total 730,498 1,359,272 534,585 347,145 270,513 682,031 249,789 4,173,833 Multifamily and Commercial Mortgage Pass 558,787 975,186 498,744 314,383 224,592 404,222 — 2,975,914 Special Mention — 9,691 4,636 1,360 7,705 — — 23,392 Substandard — 3,145 5,686 38,857 6,181 29,050 — 82,919 Doubtful — — — — — — — — Total 558,787 988,022 509,066 354,600 238,478 433,272 — 3,082,225 Commercial Real Estate Pass 1,867,476 2,323,095 631,500 87,059 117,928 — 960,024 5,987,082 Special Mention 29,000 43,427 — 8,457 800 15,062 96,746 Substandard — 29,200 37,951 18,500 15,487 14,852 — 115,990 Doubtful — — — — — — — — Total 1,896,476 2,395,722 669,451 114,016 134,215 29,914 960,024 6,199,818 Commercial & Industrial - Non-RE Pass 488,120 358,214 29,777 14,794 2,098 — 1,707,619 2,600,622 Special Mention — 8,221 — 11,413 — — 600 20,234 Substandard — 17,762 1,032 — — — — 18,794 Doubtful — — — — — — — — Total 488,120 384,197 30,809 26,207 2,098 — 1,708,219 2,639,650 Auto & Consumer Pass 161,831 256,154 70,223 24,906 19,897 9,929 — 542,940 Special Mention 423 632 453 60 14 6 — 1,588 Substandard 350 785 233 133 162 73 — 1,736 Doubtful — — — — — — — — Total 162,604 257,571 70,909 25,099 20,073 10,008 — 546,264 Other Pass 5,721 — 1,306 — — 1,164 — 8,191 Special Mention — — — — — — — — Substandard — 2,000 45 — — — — 2,045 Doubtful — — — — — — — — Total 5,721 2,000 1,351 — — 1,164 — 10,236 Total Pass 3,812,433 5,259,453 1,754,423 765,600 620,062 1,054,716 2,910,818 16,177,505 Special Mention 29,423 69,251 12,115 29,593 21,461 33,312 7,214 202,369 Substandard 350 58,080 49,633 71,874 23,854 68,361 — 272,152 Doubtful — — — — — — — — Total $ 3,842,206 $ 5,386,784 $ 1,816,171 $ 867,067 $ 665,377 $ 1,156,389 $ 2,918,032 $ 16,652,026 As a % of total gross loans 23.07% 32.35% 10.91% 5.21% 4.00% 6.94% 17.52% 100.0% The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses and evaluates credit quality based on the aging status of its loans. Certain short-term loans do not have a fixed maturity date and are treated as delinquent if not paid in full 90 days after the origination date. The following tables provide the aging of loans by portfolio segment as of the dates indicated: September 30, 2023 (Dollars in thousands) Current 30-59 Days 60-89 Days 90+ Days Total Single Family-Mortgage & Warehouse $ 4,227,936 $ 26,362 $ 11,118 $ 48,490 $ 4,313,906 Multifamily and Commercial Mortgage 2,921,752 6,307 — 33,922 2,961,981 Commercial Real Estate 6,126,237 800 — 41,589 6,168,626 Commercial & Industrial - Non-RE 3,208,969 — — — 3,208,969 Auto & Consumer 498,370 4,815 1,289 1,537 506,011 Other 2,227 211 — — 2,438 Total $ 16,985,491 $ 38,495 $ 12,407 $ 125,538 $ 17,161,931 As a % of total gross loans 98.98 % 0.22 % 0.07 % 0.73 % 100.00 % June 30, 2023 (Dollars in thousands) Current 30-59 Days 60-89 Days 90+ Days Total Single Family-Mortgage & Warehouse $ 4,102,150 $ 20,832 $ 7,971 $ 42,880 $ 4,173,833 Multifamily and Commercial Mortgage 3,048,217 2,705 1,124 30,179 3,082,225 Commercial Real Estate 6,173,716 11,250 — 14,852 6,199,818 Commercial & Industrial - Non-RE 2,639,650 — — — 2,639,650 Auto & Consumer 537,181 6,529 1,707 847 546,264 Other 8,024 68 1 2,143 10,236 Total $ 16,508,938 $ 41,384 $ 10,803 $ 90,901 $ 16,652,026 As a % of total gross loans 99.14 % 0.25 % 0.06 % 0.55 % 100.00 % Loans reaching 90+ days past due are generally placed on non-accrual. As of September 30, 2023 and June 30, 2023, there were loans of $29.8 million and $14.1 million, respectively, over 90 days past due and still accruing interest as the Company expects to collect the principal and interest amounts due. Single family mortgage loans in process of foreclosure were $18.0 million and $17.7 million as of September 30, 2023 and June 30, 2023, respectively. Loan Modifications to Borrowers Experiencing Financial Difficulty. The Company may grant certain modifications of loans to borrowers experiencing financial difficulty, which effective July 1, 2023, are reported as financial difficulty modifications (“FDMs”). The Company’s modification programs provide various modifications to borrowers experiencing financial difficulty which may include interest rate reductions, term extensions, payment delays and/or principal forgiveness. There were no FDMs during the three months ended September 30, 2023. Prior to adoption of ASU 2022-02, the Company accounted for certain modifications as troubled debt restructurings (“TDRs”). Approximately 1.77% of our nonaccrual loans were considered TDRs at June 30, 2023. Borrowers that made timely payments after TDRs were considered non-performing for at least six months. Generally, after six months of timely payments, those TDRs were reclassified from the nonaccrual loan category to the performing loan category and any previously deferred interest income was recognized. The Company had no TDRs classified as performing loans at June 30, 2023. |
STOCKHOLDERS_ EQUITY AND STOCK-
STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION | 3 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION | STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION The Company has an equity incentive plan, the Amended and Restated 2014 Stock Incentive Plan (the “2014 Plan”), which provides for the granting of non-qualified and incentive stock options, restricted stock and restricted stock units, stock appreciation rights and other awards to employees, directors and consultants. The 2014 Plan is designed to encourage selected employees and directors to improve operations and increase profits, and to accept or continue employment or association with the Company through participation in the growth in the value of the Company’s common stock. The Company also has an employment agreement with its Chief Executive Officer that authorizes an award of restricted stock units (the “RSU award”). For additional information regarding the Company’s stock-based compensation plans, see Note 16 — “Stock-based Compensation” in the 2023 Form 10-K. At September 30, 2023, 915,865 shares of common stock remained available for issuance pursuant to grant awards under the 2014 Plan and unrecognized compensation expense related to non-vested awards aggregated to $53.1 million and is expected to be recognized in future periods as follows: (Dollars in thousands) Stock Award For the fiscal year remainder: Remainder of fiscal year 2024 $ 21,320 2025 19,416 2026 10,256 2027 1,879 2028 237 Total $ 53,108 The following table presents the status and changes in RSUs for the periods indicated: RSUs Weighted-Average Non-vested balance at June 30, 2023 1,407,882 $ 41.53 Granted 631,577 42.60 Vested (360,817) 37.62 Forfeited (12,781) 39.57 Non-vested balance at September 30, 2023 1,665,861 $ 42.80 The total fair value of shares vested for the three months ended September 30, 2023 was $14.8 million. The total fair value of shares vested for the three months ended September 30, 2022 was $12.0 million. The weighted-average remaining time period until vesting for restricted stock units as of September 30, 2023 was 1.5 years. Common Stock Repurchases . During the three months ended September 30, 2023, the Company repurchased a total of $24.5 million, or 648,208 common shares at an average price of $37.85 per share. $6.0 million of such repurchases, or 159,297 common shares, were traded prior to September 30, 2023 but settled in October 2023. The Company repurchased an additional 963,640 shares for approximately $35 million from October 1, 2023 through October 20, 2023. The Company did not repurchase common stock during the three months ended September 30, 2022. For additional information regarding the Company’s share repurchase program see Note 15 — “Stockholders’ Equity” in the 2023 Form 10-K. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The following table presents the calculation of basic and diluted earnings per common share (“EPS”): Three Months Ended September 30, (Dollars in thousands, except per share data) 2023 2022 Earnings Per Common Share Net income $ 82,645 $ 58,407 Average common shares issued and outstanding 58,949,038 59,854,584 Earnings per common share $ 1.40 $ 0.98 Diluted Earnings Per Common Share Net income $ 82,645 $ 58,407 Average common shares issued and outstanding 58,949,038 59,854,584 Dilutive effect of average unvested RSUs 859,284 631,810 Average dilutive common shares outstanding 59,808,322 60,486,394 Diluted earnings per common share $ 1.38 $ 0.97 For further information regarding the Company’s EPS calculation see Note 17 — “Earnings per Common Share” in the 2023 Form 10-K. For the three months ended September 30, 2023 and 2022, the number of weighted average antidilutive common stock equivalents that were not included in the computation of diluted EPS, because they would have been antidilutive, was 5,348 and 251,841 respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES 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 September 30, 2023: (Dollars in thousands) As of September 30, Within one year $ 11,635 After one year and within two years 11,833 After two years and within three years 11,409 After three years and within four years 11,504 After four years within five years 9,869 After five years 17,841 Total lease payments 74,091 Less: amount representing interest (6,847) Total lease liability $ 67,244 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 September 30, 2023, the Company had unfunded commitments to originate $99.0 million million in fixed rate loans and $3,119.3 million million in variable rate loans, totaling an aggregate outstanding principal balance of $3,218.3 million million. For September 30, 2023, the Company’s fixed rate commitments to originate had a weighted-average rate of 8.44%. At September 30, 2023, the Company also had fixed rate commitments to sell loans with an aggregate outstanding principal balance of $13.2 million. At September 30, 2023, 36.0% of the commitments to originate loans are matched with commitments to sell related to conforming single family loans classified as held for sale, respectively. 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 LLC.’s (“Axos Clearing”) 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. Litigation . A consolidated derivative action, In re BofI Holding, Inc., Case No. 15cv2722 GPC (KSC), is pending before the United States District Court for the Southern District of California (the “Derivative Action”). The complaint in the Derivative Action sets forth allegations made in a related employment action, Erhart v. BofI Holding Inc., No. 15cv2287 BAS (NLS) (S.D. Cal.) (the “Employment Action”) brought by a former employee of the Company. The Derivative Action plaintiff seeks damages on behalf of the Company should an adverse judgment be entered in the Employment Action, and also seeks damages on behalf of the Company in connection with a now settled securities class action that was also based upon allegations made in the Employment Action and settled within available insurance coverage without attribution of wrongdoing to the Company, its management, or its directors. The Derivative Action has been stayed pending resolution of the Employment Action. On October 26, 2022, a jury verdict was reached in the case of MUFG Union Bank, N.A. v. Axos Bank, et al, awarding damages to Union Bank. Judgment on such verdict was initially entered on June 5, 2023, and a corrected judgment was entered on June 20, 2023. The Company filed a Notice of Appeal on July 6, 2023, and the plaintiff filed a Notice of Cross-Appeal on July 20, 2023. The Company recorded a $16 million accrued expense in “Accounts payable and other liabilities” on the condensed consolidated balance sheet and in “General and administrative expense” on the condensed consolidated statement of income as of and for the year ended June 30, 2023, respectively. Given the uncertainty of the appellate process and other factors that are unknown or currently unquantifiable, the Company maintained its accrual at September 30, 2023. In view of the inherent difficulty of predicting the outcome of each legal action it is not possible to reasonably predict or estimate the eventual loss or range of loss, if any, related to each legal action. |
SEGMENT REPORTING AND REVENUE I
SEGMENT REPORTING AND REVENUE INFORMATION | 3 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING AND REVENUE INFORMATION | SEGMENT REPORTING AND REVENUE INFORMATION Segment Reporting. The operating segments reported below are the segments of the Company for which separate financial information is available and for which segment results are evaluated regularly by the Chief Executive Officer in deciding how to allocate resources and in assessing performance. The operating segments and segment results of the Company are determined based upon the management reporting system, which assigns balance sheet and income statement items to each of the business segments and by which segment results are evaluated by the Chief Executive Officer in deciding how to allocate resources and in assessing performance. The Company evaluates performance and allocates resources based on pre-tax profit or loss from operations. Certain corporate administration costs have not been allocated to the reportable segments. The Company operates through two operating segments: Banking Business and Securities Business. Inter-segment transactions are eliminated in consolidation and primarily include non-interest income earned by the Securities Business segment and non-interest expense incurred by the Banking Business segment for cash sorting fees related to deposits sourced from Securities Business segment customers, as well as interest expense paid by the Banking Business segment to each of the wholly-owned subsidiaries of the Company and to the Company itself for their operating cash held on deposit with the Business Banking segment. For more information on the Company’s operating segments, see Note 23 — “Segment Reporting” in the Company’s 2023 Form 10-K. In order to reconcile the two segments to the 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 September 30, 2023 (Dollars in thousands) Banking Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 209,219 $ 5,542 $ (3,606) $ 211,155 Provision for credit losses 7,000 — — 7,000 Non-interest income 12,557 34,555 (12,605) 34,507 Non-interest expense 100,786 27,523 (7,803) 120,506 Income before taxes $ 113,990 $ 12,574 $ (8,408) $ 118,156 For the Three Months Ended September 30, 2022 (Dollars in thousands) Banking Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 179,730 $ 4,275 $ (3,530) $ 180,475 Provision for credit losses 8,750 — — 8,750 Non-interest income 10,712 29,165 (12,669) 27,208 Non-interest expense 100,796 24,515 (9,224) 116,087 Income before taxes $ 80,896 $ 8,925 $ (6,975) $ 82,846 As of September 30, 2023 (Dollars in thousands) Banking Securities Business Corporate/Eliminations Axos Consolidated Goodwill $ 35,721 $ 61,952 $ — $ 97,673 Total Assets $ 19,929,316 $ 858,141 $ 37,749 $ 20,825,206 As of June 30, 2023 (Dollars in thousands) Banking Securities Business Corporate/Eliminations Axos Consolidated Goodwill $ 35,721 $ 61,952 $ — $ 97,673 Total Assets $ 19,396,167 $ 899,496 $ 52,806 $ 20,348,469 Revenue Information. The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Accounting Standards Codification (“ASC”) 606 for the periods indicated. For further information of the Company’s recognition of revenue and ASC 606 see Note 1 — “Organizations and Summary of Significant Accounting Policies” in the 2023 Form 10-K. For the Three Months Ended September 30, (Dollars in thousands) 2023 2022 Advisory fee income $ 8,219 $ 6,959 Broker-dealer clearing fees 5,535 5,233 Deposit service fees 680 1,106 Card fees 682 789 Bankruptcy trustee and fiduciary service fees 1,394 773 Non-interest income (in-scope ASC 606) 16,510 14,860 Non-interest income (out-of-scope ASC 606) 17,997 12,348 Total non-interest income $ 34,507 $ 27,208 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Sep. 30, 2023 | |
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 (“Axos Nevada Holding” and collectively, the “Company”). Axos, the Bank and Axos Nevada Holding comprise substantially all of the Company’s assets and liabilities and revenues and expenses. Axos Bank and its wholly owned subsidiaries constitute the Banking Business segment and Axos Nevada Holding and its wholly owns the subsidiaries constitute the Securities Business segment. All significant intercompany balances and transactions have been eliminated in consolidation. The Notes to the Consolidated Financial Statements are an integral part of the Company’s financial statements. |
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. Certain amounts reported in prior periods have been reclassified to conform with the current presentation. Results for the three months ended September 30, 2023 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 not repeated herein 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, 2023 included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023 (“2023 Form 10-K”) filed with the SEC. |
Significant Accounting Policies | Significant Accounting Policies For further information regarding the Company’s significant accounting policies see Note 1 — “Organizations and Summary of Significant Accounting Policies” in the 2023 Form 10-K. During the three months ended September 30, 2023 there were no significant updates to the Company’s significant accounting policies, other than as described below and for the adoption of the accounting standards noted herein. New Accounting Standards The Financial Accounting Standards Board (“FASB”) issued three Accounting Standards Updates (“ASUs”) (2020-04, 2021-04 and 2022-06) all of which provide guidance to alleviate the burden in accounting for reference rate reform by allowing certain expedients and exceptions in applying generally accepted accounting principles to contracts, hedging relationships, and other transactions impacted by reference rate reform. The provisions apply only to those transactions that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. Adoption of the provisions are optional and are effective from March 12, 2020 through December 31, 2024. The Company adopted these ASUs on July 1, 2023, and there was no impact on its financial condition or results of operations upon adoption. In March 2022, the FASB issued ASU 2022-02 which eliminates the accounting guidance for troubled debt restructurings by creditors that have adopted the current expected credit losses (“CECL”) model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The Company adopted this ASU on a prospective basis on July 1, 2023, and there was no impact on its financial condition or results of operations upon adoption. See Note 5 — “Loans & Allowance for Credit Losses” for the new disclosures as a result of the adoption of this accounting guidance. |
Credit Quality Indicators | Credit Quality Indicators. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends. The Company analyzes loans individually by classifying the loans based on credit risk. The Company uses the following definitions for risk ratings. Pass. Loans classified as pass are well protected by the current net worth and paying capacity of the obligor or by the fair value of any underlying collateral, less cost to acquire and sell in a timely manner. Special Mention . Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard . Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful . Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The Company reviews and grades loans following a continuous review process, featuring coverage of all loan types and business lines at least quarterly. Continuous reviewing provides more effective risk monitoring because it immediately tests for potential impacts caused by changes in personnel, policy, products or underwriting standards. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis at September 30, 2023 and June 30, 2023. Assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement: September 30, 2023 (Dollars in thousands) Significant Other Significant Total ASSETS: Securities—Trading $ 640 $ — $ 640 Securities—Available-for-sale: Agency MBS 1 27,624 — 27,624 Non-Agency MBS 2 — 206,076 206,076 Municipal 3,026 — 3,026 Total—Securities—Available-for-sale $ 30,650 $ 206,076 $ 236,726 Loans held for sale $ 8,014 $ — $ 8,014 Servicing rights $ — $ 29,338 $ 29,338 Other assets—Derivative instruments $ 1,295 $ — $ 1,295 LIABILITIES: Accrued expense and other liabilities—Derivative instruments $ 934 $ — $ 934 June 30, 2023 (Dollars in thousands) Significant Other Significant Total ASSETS: Securities—Trading $ 758 $ — $ 758 Securities—Available-for-sale: Agency MBS 1 23,947 — 23,947 Non-Agency MBS 2 — 205,005 205,005 Municipal 3,398 — 3,398 Total—Securities—Available-for-sale $ 27,345 $ 205,005 $ 232,350 Loans held for sale $ 23,203 $ — $ 23,203 Servicing rights $ — $ 25,443 $ 25,443 Other assets—Derivative instruments $ 919 $ — $ 919 LIABILITIES: Accrued expense and other liabilities—Derivative instruments $ 691 $ — $ 691 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 first-lien mortgage loans on commercial properties or by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option adjustable rate mortgages (“ARMs”). |
Schedule of Additional Information About Assets Measured at Fair Value on a Recurring Basis and for which the Company has Utilized Level 3 Inputs to Determine Fair Value | The following tables present additional information about assets measured at fair value on a recurring basis and for which the Company has utilized Level 3 inputs to determine fair value: For the Three Months Ended September 30, 2023 (Dollars in thousands) Securities – Available-for-Sale: Non-Agency RMBS Servicing Rights 1 Total Opening Balance $ 205,005 $ 25,443 $ 230,448 Total gains or losses for the period: Included in earnings—Mortgage banking and servicing rights income — 1,858 1,858 Included in other comprehensive income 1,316 — 1,316 Purchases, retentions, issues, sales and settlements: Purchases/Retentions — 2,037 2,037 Settlements (245) — (245) Closing balance $ 206,076 $ 29,338 $ 235,414 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ 1,858 $ 1,858 1 Earnings from servicing rights were attributable to: time and payoffs, representing a decrease in servicing rights value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period of $0.2 million for the three months ended September 30, 2023 and an increase in servicing rights value resulting from market-driven changes in interest rates of $2.1 million for the three months ended September 30, 2023. Additions to servicing rights were related to purchases and servicing rights retained upon sale of loans held for sale. For the Three Months Ended September 30, 2022 (Dollars in thousands) Securities – Available-for-Sale: Non-Agency RMBS Servicing Rights 1 Derivative Instruments, net Total Opening Balance $ 186,814 $ 25,213 $ 464 $ 212,491 Total gains or losses for the period: Included in earnings—Mortgage banking and servicing rights income — 953 71 1,024 Included in other comprehensive income (2,473) — — (2,473) Purchases, retentions, issues, sales and settlements: Purchases/Retentions — 207 — 207 Settlements (329) — — (329) Closing balance $ 184,012 $ 26,373 $ 535 $ 210,920 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ 953 $ 71 $ 1,024 1 Earnings from servicing rights were attributable to: time and payoffs, representing a decrease in servicing rights value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period of $0.4 million for the three months ended September 30, 2022 and an increase in servicing rights value resulting from market-driven changes in interest rates of $1.4 million for the three months ended September 30, 2022. Additions to servicing rights were retained upon sale of loans held for sale. |
Schedule of Quantitative Information About Level 3 Fair Value Measurements | The table below summarizes the quantitative information about Level 3 fair value measurements as of the dates indicated: September 30, 2023 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Securities – Non-agency MBS $ 206,076 Discounted Cash Flow Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate over SOFR Swaps 0.0 to 58.1% (34.9%) 0.0 to 7.6% (2.4%) 0.0 to 68.7% (28.5%) 2.6 to 6.5% (2.6%) Servicing Rights $ 29,338 Discounted Cash Flow Projected Constant Prepayment Rate, 4.8 to 39.9% (13.0%) 1.7 to 15.8 (7.4) 9.5 to 11.5% (9.8%) June 30, 2023 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Securities – Non-agency MBS $ 205,005 Discounted Cash Flow Projected Constant Prepayment Rate, 0.0 to 59.7% (32.0%) 0.0 to 7.5% (2.4%) 0.0 to 68.7% (28.5%) 2.6 to 7.5% (2.7%) Servicing Rights $ 25,443 Discounted Cash Flow Projected Constant Prepayment Rate, 6.1 to 40.1% (12.6%) 1.8 to 10.9 (7.7) 9.5 to 11.5% (9.6%) The following table presents quantitative information about Level 3 fair value measurements for other real estate owned and repossessed vehicles measured at fair value on a non-recurring basis at the periods indicated: September 30, 2023 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) 1 Other real estate owned and repossessed vehicles 2 : Single family real estate $ 5,574 Sales comparison approach Differences between the comparable sales 62.1 to 93.6% (62.1%) Multifamily real estate $ 1,392 Sales comparison approach and income approach Differences between the comparable sales and differences in net operating income expectations, capitalization rate 49.8% to 54.5% (49.8%) June 30, 2023 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) 1 Other real estate owned and repossessed vehicles 2 : Single family real estate $ 5,574 Sales comparison approach Differences between the comparable sales 62.1 to 93.6% (62.1%) Multifamily real estate $ 1,392 Sales comparison approach and income approach Differences between the comparable sales and differences in net operating income expectations, capitalization rate 49.8 to 54.5%% (49.8%) 1 For other real estate owned and repossessed vehicles 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 asset being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted. 2 Repossessed vehicles are valued using third-party pricing information of comparable vehicle sales without adjustment. |
Schedule of Aggregate Fair Value, Contractual Balance, and Gains of Loans Held For Sale | The aggregate fair value of loans held for sale, carried at fair value, contractual balance (including accrued interest), and unrealized gain were: (Dollars in thousands) September 30, 2023 June 30, 2023 Aggregate fair value $ 8,014 $ 23,203 Contractual balance 7,878 22,844 Unrealized gain $ 136 $ 359 The total interest income and amount of gains and losses from changes in fair value included in earnings for loans held for sale were: For the Three Months Ended September 30, (Dollars in thousands) 2023 2022 Interest income $ 189 $ 50 Change in fair value (129) 91 Total $ 60 $ 141 |
Schedule of Fair Value Assets Measured on Nonrecurring Basis | The table below summarizes assets measured for impairment on a non-recurring basis: September 30, 2023 (Dollars in thousands) Quoted Prices in Significant Other Significant Balance Other real estate owned and repossessed vehicles: Single family real estate $ — $ — $ 5,574 $ 5,574 Multifamily real estate — — 1,392 1,392 Autos $ — $ — $ 1,813 $ 1,813 Total $ — $ — $ 8,779 $ 8,779 June 30, 2023 (Dollars in thousands) Quoted Prices in Significant Other Significant Balance Other real estate owned and repossessed vehicles: Single family real estate $ — $ — $ 5,574 $ 5,574 Multifamily real estate — — 1,392 1,392 Autos — — 1,133 1,133 Total $ — $ — $ 8,099 $ 8,099 |
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments at Period-end | Carrying amounts and estimated fair values of financial instruments at September 30, 2023 and June 30, 2023 were: September 30, 2023 Fair Value (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 2,413,769 $ 2,413,769 $ — $ — $ 2,413,769 Securities—trading 640 — 640 — 640 Securities—available-for-sale 236,726 — 30,650 206,076 236,726 Stock of regulatory agencies 21,533 — 21,533 — 21,533 Loans held for sale, at fair value 8,014 — 8,014 — 8,014 Loans held for investment—net 16,955,041 — — 16,935,835 16,935,835 Securities borrowed 96,424 — — 102,084 102,084 Customer, broker-dealer and clearing receivables 285,423 — — 294,499 294,499 Servicing rights 29,338 — — 29,338 29,338 Other assets - derivative instruments 1,295 — 1,295 — 1,295 Financial liabilities: Total deposits 17,565,741 — 17,481,019 — 17,481,019 Advances from the Federal Home Loan Bank 90,000 — 82,234 — 82,234 Borrowings, subordinated notes and debentures 447,733 — 414,462 — 414,462 Securities loaned 116,446 — — 116,097 116,097 Customer, broker-dealer and clearing payables 341,915 — — 341,915 341,915 Accrued expense and other liabilities - derivative instruments 934 — 934 — 934 June 30, 2023 Fair Value (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 2,382,086 $ 2,382,086 $ — $ — $ 2,382,086 Securities—trading 758 — 758 — 758 Securities—available-for-sale 232,350 — 27,345 205,005 232,350 Stock of regulatory agencies 21,510 — 21,510 — 21,510 Loans held for sale, at fair value 23,203 — 23,203 — 23,203 Loans held for sale, at lower of cost or fair value 776 — — 780 780 Loans held for investment—net 16,456,728 — — 16,417,183 16,417,183 Securities borrowed 134,339 — — 143,461 143,461 Customer, broker-dealer and clearing receivables 374,074 — — 386,082 386,082 Servicing rights 25,443 — — 25,443 25,443 Other assets - derivative instruments 919 — 919 — 919 Financial liabilities: Total deposits 17,123,108 — 17,064,084 — 17,064,084 Advances from the Federal Home Loan Bank 90,000 — 83,192 — 83,192 Borrowings, subordinated notes and debentures 361,779 — 327,564 — 327,564 Securities loaned 159,832 — — 159,416 159,416 Customer, broker-dealer and clearing payables 445,477 — — 445,447 445,447 Accrued expense and other liabilities - derivative instruments 691 — 691 — 691 |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
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 securities available-for-sale for the following periods were: September 30, 2023 Trading Available-for-sale (Dollars in thousands) Fair Amortized Unrealized Unrealized Fair Mortgage-backed securities (MBS): U.S. agencies 1 $ — $ 31,277 $ 1 $ (3,654) $ 27,624 Non-agency 2 — 210,027 723 (4,674) 206,076 Total mortgage-backed securities — 241,304 724 (8,328) 233,700 Non-MBS: Municipal 640 3,689 — (663) 3,026 Total Non-MBS 640 3,689 — (663) 3,026 Total debt securities $ 640 $ 244,993 $ 724 $ (8,991) $ 236,726 June 30, 2023 Trading Available-for-sale (Dollars in thousands) Fair Amortized Unrealized Unrealized Fair Mortgage-backed securities (MBS): U.S. agencies 1 $ — $ 27,024 $ — $ (3,077) $ 23,947 Non-agency 2 — 210,271 711 (5,977) 205,005 Total mortgage-backed securities — 237,295 711 (9,054) 228,952 Non-MBS: Municipal 758 3,656 — (258) 3,398 Total Non-MBS 758 3,656 — (258) 3,398 Total debt securities $ 758 $ 240,951 $ 711 $ (9,312) $ 232,350 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 first-lien mortgage loans on commercial properties or by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option ARM mortgages. The following table sets forth the expected maturity distribution of our mortgage-backed securities, which is based on assumed prepayment rates, and the contractual maturity distribution of our non-MBS securities: At September 30, 2023 (Dollars in thousands) Total Amount Due Within One Year Due after One but within Five Years Due after Five but within Ten Years Due After Ten Years MBS: Agency 1 $ 31,277 $ 6,444 $ 14,821 $ 7,460 $ 2,552 Non-Agency 2 $ 210,027 $ 127,741 $ 79,585 $ 1,640 $ 1,061 Total MBS $ 241,304 $ 134,185 $ 94,406 $ 9,100 $ 3,613 Non-MBS: Municipal $ 3,689 $ — $ — $ — $ 3,689 Total Non-MBS $ 3,689 $ — $ — $ — $ 3,689 Available-for-sale—Amortized Cost $ 244,993 $ 134,185 $ 94,406 $ 9,100 $ 7,302 Available-for-sale—Fair value $ 236,726 $ 130,977 $ 91,040 $ 8,203 $ 6,506 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, Alt-A or pay-option ARM mortgages and commercial mortgages. |
Schedule of Securities in a Continuous Unrealized Loss Position | Securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were: September 30, 2023 Available-for-sale securities in loss position for Less Than More Than Total (Dollars in thousands) Fair Gross Fair Gross Fair Gross MBS: U.S. agencies $ 7,321 $ (174) $ 20,134 $ (3,480) $ 27,455 $ (3,654) Non-agency 72,567 (53) 131,874 (4,621) 204,441 (4,674) Total MBS 79,888 (227) 152,008 (8,101) 231,896 (8,328) Non-MBS: Municipal — — 3,026 (663) 3,026 (663) Total Non-MBS — — 3,026 (663) 3,026 (663) Total debt securities $ 79,888 $ (227) $ 155,034 $ (8,764) $ 234,922 $ (8,991) June 30, 2023 Available-for-sale securities in loss position for Less Than More Than Total (Dollars in thousands) Fair Gross Fair Gross Fair Gross MBS: U.S. agencies $ 3,182 $ (16) $ 20,642 $ (3,061) $ 23,824 $ (3,077) Non-agency 107,982 (1,808) 95,385 (4,169) 203,367 (5,977) Total MBS 111,164 (1,824) 116,027 (7,230) 227,191 (9,054) Non-MBS: Municipal — — 3,398 (258) 3,398 (258) Total Non-MBS — — 3,398 (258) 3,398 (258) Total debt securities $ 111,164 $ (1,824) $ 119,425 $ (7,488) $ 230,589 $ (9,312) |
Schedule of Components of Other Comprehensive Income (Loss) | The components of the Company’s accumulated other comprehensive income (loss) are as follows: (Dollars in thousands) September 30, June 30, Available-for-sale debt securities—net unrealized gains (losses) $ (8,266) $ (8,601) Available-for-sale debt securities—non-credit related (845) (845) Subtotal (9,111) (9,446) Tax benefit (expense) 2,723 2,836 Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss) $ (6,388) $ (6,610) |
LOANS & ALLOWANCE FOR CREDIT _2
LOANS & ALLOWANCE FOR CREDIT LOSSES (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Composition of the Loan Portfolio | The following table sets forth the composition of the loan portfolio as of the dates indicated: (Dollars in thousands) September 30, 2023 June 30, 2023 Single Family - Mortgage & Warehouse $ 4,313,906 $ 4,173,833 Multifamily and Commercial Mortgage 2,961,981 3,082,225 Commercial Real Estate 6,168,626 6,199,818 Commercial & Industrial - Non-RE 3,208,969 2,639,650 Auto & Consumer 506,011 546,264 Other 2,438 10,236 Total gross loans and leases 17,161,931 16,652,026 Allowance for credit losses - loans (170,870) (166,680) Unaccreted premiums (discounts) and loan fees (36,020) (28,618) Total net loans and leases $ 16,955,041 $ 16,456,728 |
Schedule of Allowance for Credit Losses on Financing Receivables | The following table presents the components of the provision for credit losses: For the Three Months Ended September 30, (Dollars in thousands) 2023 2022 Provision for credit losses - loans $ 5,750 $ 8,750 Provision for credit losses - unfunded lending commitments 1,250 — Total provision for credit losses $ 7,000 $ 8,750 The following tables summarize activity in the allowance for credit losses - loans by portfolio segment for the periods indicated. For the Three Months Ended September 30, 2023 (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, 2023 $ 17,503 $ 16,848 $ 72,755 $ 46,347 $ 13,212 $ 15 $ 166,680 Provision (benefit) for credit losses - loans (10) (974) (1,400) 8,245 (105) (6) 5,750 Charge-offs (80) — — — (2,281) — (2,361) Recoveries 13 — — — 788 — 801 Balance at September 30, 2023 $ 17,426 $ 15,874 $ 71,355 $ 54,592 $ 11,614 $ 9 $ 170,870 For the Three Months Ended September 30, 2022 (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, 2022 $ 19,670 $ 14,655 $ 69,339 $ 30,808 $ 14,114 $ 31 $ 148,617 Provision (benefit) for credit losses - loans (1,642) (6) 4,437 3,557 2,405 (1) 8,750 Charge-offs (4) — — — (2,362) — (2,366) Recoveries 15 — — 18 438 — 471 Balance at September 30, 2022 $ 18,039 $ 14,649 $ 73,776 $ 34,383 $ 14,595 $ 30 $ 155,472 The following tables present a summary of the activity in the allowance for credit losses for off-balance sheet lending commitments for the periods indicated: Three Months Ended September 30, (Dollars in thousands) 2023 2022 BALANCE—beginning June 30 $ 10,473 $ 10,973 Provision for credit losses - unfunded lending commitments 1,250 — BALANCE—end September 30 $ 11,723 $ 10,973 |
Schedule of Real Estate Loans, Loan-to-Value Ratio | The following table presents loan-to-value (“LTV”) for the Company’s real estate loans outstanding as of September 30, 2023: Total Real Estate Loans Single Family - Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Weighted-Average LTV 48.9 % 57.3 % 53.6 % 40.7 % Median LTV 54.0 % 56.9 % 50.0 % 41.6 % |
Schedule of Outstanding Principal Balance on Loans Performing and Nonaccrual | September 30, 2023 (Dollars in thousands) Single Family-Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Performing $ 4,277,324 $ 2,923,154 $ 6,142,524 $ 3,205,980 $ 503,625 $ 2,398 $ 17,055,005 Nonaccrual $ 36,582 $ 38,827 $ 26,102 $ 2,989 $ 2,386 $ 40 $ 106,926 Total $ 4,313,906 $ 2,961,981 $ 6,168,626 $ 3,208,969 $ 506,011 $ 2,438 $ 17,161,931 Non accrual loans to total loans 0.62 % June 30, 2023 (Dollars in thousands) Single Family-Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Performing $ 4,143,119 $ 3,047,122 $ 6,184,966 $ 2,636,661 $ 544,807 $ 8,191 $ 16,564,866 Nonaccrual 30,714 35,103 14,852 2,989 1,457 2,045 87,160 Total $ 4,173,833 $ 3,082,225 $ 6,199,818 $ 2,639,650 $ 546,264 $ 10,236 $ 16,652,026 Non accrual loans to total loans 0.52 % |
Schedule of Composition of Loan and Lease Portfolio by Credit Quality Indicators | The following tables presents the composition of loans by portfolio segment, fiscal year of origination and credit quality indicator, and the amount of gross charge-offs for the three months ended September 30, 2023 : September 30, 2023 Loans Held for Investment Origination Year Revolving Loans Total (Dollars in thousands) 2024 2023 2022 2021 2020 Prior Single Family-Mortgage & Warehouse Pass $ 209,544 $ 673,266 $ 1,306,937 $ 514,928 $ 313,863 $ 848,948 $ 295,078 $ 4,162,564 Special Mention — 19,368 18,998 6,468 11,028 36,745 — 92,607 Substandard — — 8,965 4,590 14,345 30,835 — 58,735 Doubtful — — — — — — — — Total 209,544 692,634 1,334,900 525,986 339,236 916,528 295,078 4,313,906 Gross charge-offs — — — — — 80 — 80 Multifamily and Commercial Mortgage Pass 9,328 478,469 974,390 479,725 299,551 597,311 — 2,838,774 Special Mention — 10,719 — 2,000 1,358 — — 14,077 Substandard — — 13,618 17,707 35,019 42,786 — 109,130 Doubtful — — — — — — — — Total 9,328 489,188 988,008 499,432 335,928 640,097 — 2,961,981 Gross charge-offs — — — — — — — — Commercial Real Estate Pass 501,339 1,867,923 2,113,338 563,541 20,737 62,928 840,449 5,970,255 Special Mention — — 45,130 — 7,871 15,887 — 68,888 Substandard — — 45,242 38,902 15,000 30,339 — 129,483 Doubtful — — — — — — — — Total 501,339 1,867,923 2,203,710 602,443 43,608 109,154 840,449 6,168,626 Gross charge-offs — — — — — — — — Commercial & Industrial - Non-RE Pass 248,136 416,819 287,067 28,675 9,041 5,866 2,129,452 3,125,056 Special Mention — 6,806 35,430 — 10,986 — 12,046 65,268 Substandard — — 14,624 1,032 — 2,989 — 18,645 Doubtful — — — — — — — — Total 248,136 423,625 337,121 29,707 20,027 8,855 2,141,498 3,208,969 Gross charge-offs — — — — — — — — Auto & Consumer Pass 10,130 148,607 234,996 62,579 21,381 24,704 — 502,397 Special Mention — 338 576 69 26 58 — 1,067 Substandard — 579 1,191 385 153 239 — 2,547 Doubtful — — — — — — — — Total 10,130 149,524 236,763 63,033 21,560 25,001 — 506,011 Gross charge-offs — 711 1,093 378 73 26 — 2,281 Other Pass 905 — — 1,190 — 303 — 2,398 Special Mention — — — — — — — — Substandard — — — 40 — — — 40 Doubtful — — — — — — — — Total 905 — — 1,230 — 303 — 2,438 Gross charge-offs — — — — — — — — Total Pass 979,382 3,585,084 4,916,728 1,650,638 664,573 1,540,060 3,264,979 16,601,444 Special Mention — 37,231 100,134 8,537 31,269 52,690 12,046 241,907 Substandard — 579 83,640 62,656 64,517 107,188 — 318,580 Doubtful — — — — — — — — Total $ 979,382 $ 3,622,894 $ 5,100,502 $ 1,721,831 $ 760,359 $ 1,699,938 $ 3,277,025 $ 17,161,931 As a % of total gross loans 5.71% 21.11% 29.72% 10.03% 4.43% 9.91% 19.09% 100.0% Total gross charge-offs $ — $ 711 $ 1,093 $ 378 $ 73 $ 106 $ — $ 2,361 June 30, 2023 Loans Held for Investment Origination Year Revolving Loans Total (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Single Family-Mortgage & Warehouse Pass $ 730,498 $ 1,346,804 $ 522,873 $ 324,458 $ 255,547 $ 639,401 $ 243,175 $ 4,062,756 Special Mention — 7,280 7,026 8,303 12,942 18,244 6,614 60,409 Substandard — 5,188 4,686 14,384 2,024 24,386 — 50,668 Doubtful — — — — — — — — Total 730,498 1,359,272 534,585 347,145 270,513 682,031 249,789 4,173,833 Multifamily and Commercial Mortgage Pass 558,787 975,186 498,744 314,383 224,592 404,222 — 2,975,914 Special Mention — 9,691 4,636 1,360 7,705 — — 23,392 Substandard — 3,145 5,686 38,857 6,181 29,050 — 82,919 Doubtful — — — — — — — — Total 558,787 988,022 509,066 354,600 238,478 433,272 — 3,082,225 Commercial Real Estate Pass 1,867,476 2,323,095 631,500 87,059 117,928 — 960,024 5,987,082 Special Mention 29,000 43,427 — 8,457 800 15,062 96,746 Substandard — 29,200 37,951 18,500 15,487 14,852 — 115,990 Doubtful — — — — — — — — Total 1,896,476 2,395,722 669,451 114,016 134,215 29,914 960,024 6,199,818 Commercial & Industrial - Non-RE Pass 488,120 358,214 29,777 14,794 2,098 — 1,707,619 2,600,622 Special Mention — 8,221 — 11,413 — — 600 20,234 Substandard — 17,762 1,032 — — — — 18,794 Doubtful — — — — — — — — Total 488,120 384,197 30,809 26,207 2,098 — 1,708,219 2,639,650 Auto & Consumer Pass 161,831 256,154 70,223 24,906 19,897 9,929 — 542,940 Special Mention 423 632 453 60 14 6 — 1,588 Substandard 350 785 233 133 162 73 — 1,736 Doubtful — — — — — — — — Total 162,604 257,571 70,909 25,099 20,073 10,008 — 546,264 Other Pass 5,721 — 1,306 — — 1,164 — 8,191 Special Mention — — — — — — — — Substandard — 2,000 45 — — — — 2,045 Doubtful — — — — — — — — Total 5,721 2,000 1,351 — — 1,164 — 10,236 Total Pass 3,812,433 5,259,453 1,754,423 765,600 620,062 1,054,716 2,910,818 16,177,505 Special Mention 29,423 69,251 12,115 29,593 21,461 33,312 7,214 202,369 Substandard 350 58,080 49,633 71,874 23,854 68,361 — 272,152 Doubtful — — — — — — — — Total $ 3,842,206 $ 5,386,784 $ 1,816,171 $ 867,067 $ 665,377 $ 1,156,389 $ 2,918,032 $ 16,652,026 As a % of total gross loans 23.07% 32.35% 10.91% 5.21% 4.00% 6.94% 17.52% 100.0% |
Schedule of Past Due Loan and Leases | The following tables provide the aging of loans by portfolio segment as of the dates indicated: September 30, 2023 (Dollars in thousands) Current 30-59 Days 60-89 Days 90+ Days Total Single Family-Mortgage & Warehouse $ 4,227,936 $ 26,362 $ 11,118 $ 48,490 $ 4,313,906 Multifamily and Commercial Mortgage 2,921,752 6,307 — 33,922 2,961,981 Commercial Real Estate 6,126,237 800 — 41,589 6,168,626 Commercial & Industrial - Non-RE 3,208,969 — — — 3,208,969 Auto & Consumer 498,370 4,815 1,289 1,537 506,011 Other 2,227 211 — — 2,438 Total $ 16,985,491 $ 38,495 $ 12,407 $ 125,538 $ 17,161,931 As a % of total gross loans 98.98 % 0.22 % 0.07 % 0.73 % 100.00 % June 30, 2023 (Dollars in thousands) Current 30-59 Days 60-89 Days 90+ Days Total Single Family-Mortgage & Warehouse $ 4,102,150 $ 20,832 $ 7,971 $ 42,880 $ 4,173,833 Multifamily and Commercial Mortgage 3,048,217 2,705 1,124 30,179 3,082,225 Commercial Real Estate 6,173,716 11,250 — 14,852 6,199,818 Commercial & Industrial - Non-RE 2,639,650 — — — 2,639,650 Auto & Consumer 537,181 6,529 1,707 847 546,264 Other 8,024 68 1 2,143 10,236 Total $ 16,508,938 $ 41,384 $ 10,803 $ 90,901 $ 16,652,026 As a % of total gross loans 99.14 % 0.25 % 0.06 % 0.55 % 100.00 % |
STOCKHOLDERS_ EQUITY AND STOC_2
STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Unrecognized Compensation Expense Related to Non-vested Awards To be Recognized in the Future | At September 30, 2023, 915,865 shares of common stock remained available for issuance pursuant to grant awards under the 2014 Plan and unrecognized compensation expense related to non-vested awards aggregated to $53.1 million and is expected to be recognized in future periods as follows: (Dollars in thousands) Stock Award For the fiscal year remainder: Remainder of fiscal year 2024 $ 21,320 2025 19,416 2026 10,256 2027 1,879 2028 237 Total $ 53,108 |
Schedule of Status and Changes in Restricted Stock Grants | The following table presents the status and changes in RSUs for the periods indicated: RSUs Weighted-Average Non-vested balance at June 30, 2023 1,407,882 $ 41.53 Granted 631,577 42.60 Vested (360,817) 37.62 Forfeited (12,781) 39.57 Non-vested balance at September 30, 2023 1,665,861 $ 42.80 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted EPS | The following table presents the calculation of basic and diluted earnings per common share (“EPS”): Three Months Ended September 30, (Dollars in thousands, except per share data) 2023 2022 Earnings Per Common Share Net income $ 82,645 $ 58,407 Average common shares issued and outstanding 58,949,038 59,854,584 Earnings per common share $ 1.40 $ 0.98 Diluted Earnings Per Common Share Net income $ 82,645 $ 58,407 Average common shares issued and outstanding 58,949,038 59,854,584 Dilutive effect of average unvested RSUs 859,284 631,810 Average dilutive common shares outstanding 59,808,322 60,486,394 Diluted earnings per common share $ 1.38 $ 0.97 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Maturities of Lease Liabilities | The following table represents maturities of lease liabilities as of September 30, 2023: (Dollars in thousands) As of September 30, Within one year $ 11,635 After one year and within two years 11,833 After two years and within three years 11,409 After three years and within four years 11,504 After four years within five years 9,869 After five years 17,841 Total lease payments 74,091 Less: amount representing interest (6,847) Total lease liability $ 67,244 |
SEGMENT REPORTING AND REVENUE_2
SEGMENT REPORTING AND REVENUE INFORMATION (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 (Dollars in thousands) Banking Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 209,219 $ 5,542 $ (3,606) $ 211,155 Provision for credit losses 7,000 — — 7,000 Non-interest income 12,557 34,555 (12,605) 34,507 Non-interest expense 100,786 27,523 (7,803) 120,506 Income before taxes $ 113,990 $ 12,574 $ (8,408) $ 118,156 For the Three Months Ended September 30, 2022 (Dollars in thousands) Banking Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 179,730 $ 4,275 $ (3,530) $ 180,475 Provision for credit losses 8,750 — — 8,750 Non-interest income 10,712 29,165 (12,669) 27,208 Non-interest expense 100,796 24,515 (9,224) 116,087 Income before taxes $ 80,896 $ 8,925 $ (6,975) $ 82,846 As of September 30, 2023 (Dollars in thousands) Banking Securities Business Corporate/Eliminations Axos Consolidated Goodwill $ 35,721 $ 61,952 $ — $ 97,673 Total Assets $ 19,929,316 $ 858,141 $ 37,749 $ 20,825,206 As of June 30, 2023 (Dollars in thousands) Banking Securities Business Corporate/Eliminations Axos Consolidated Goodwill $ 35,721 $ 61,952 $ — $ 97,673 Total Assets $ 19,396,167 $ 899,496 $ 52,806 $ 20,348,469 |
Schedule of Other Nonoperating Income (Expense) | The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Accounting Standards Codification (“ASC”) 606 for the periods indicated. For further information of the Company’s recognition of revenue and ASC 606 see Note 1 — “Organizations and Summary of Significant Accounting Policies” in the 2023 Form 10-K. For the Three Months Ended September 30, (Dollars in thousands) 2023 2022 Advisory fee income $ 8,219 $ 6,959 Broker-dealer clearing fees 5,535 5,233 Deposit service fees 680 1,106 Card fees 682 789 Bankruptcy trustee and fiduciary service fees 1,394 773 Non-interest income (in-scope ASC 606) 16,510 14,860 Non-interest income (out-of-scope ASC 606) 17,997 12,348 Total non-interest income $ 34,507 $ 27,208 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) $ in Millions | Aug. 23, 2023 USD ($) |
Marine Floor Financing Loans | |
Business Acquisition [Line Items] | |
Consideration transferred | $ 52 |
Intangible and Other Assets | |
Business Acquisition [Line Items] | |
Consideration transferred | $ 2 |
FAIR VALUE - ASSETS AND LIABILI
FAIR VALUE - ASSETS AND LIABILITIES MEASURED ON RECURRING BASIS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
ASSETS: | ||
Trading | $ 640 | $ 758 |
Fair Value | 236,726 | 232,350 |
Loans held for sale | 8,014 | 23,203 |
Agency MBS | ||
ASSETS: | ||
Trading | 0 | 0 |
Fair Value | 27,624 | 23,947 |
Non-Agency MBS | ||
ASSETS: | ||
Trading | 0 | 0 |
Fair Value | 206,076 | 205,005 |
Municipal | ||
ASSETS: | ||
Trading | 640 | 758 |
Fair Value | 3,026 | 3,398 |
Significant Other Observable Inputs (Level 2) | ||
ASSETS: | ||
Trading | 640 | 758 |
Fair Value | 30,650 | 27,345 |
Loans held for sale | 8,014 | 23,203 |
Servicing rights | 0 | 0 |
Other assets—Derivative instruments | 1,295 | 919 |
LIABILITIES: | ||
Accrued expense and other liabilities—Derivative instruments | 934 | 691 |
Significant Unobservable Inputs (Level 3) | ||
ASSETS: | ||
Trading | 0 | 0 |
Fair Value | 206,076 | 205,005 |
Loans held for sale | 0 | 0 |
Servicing rights | 29,338 | 25,443 |
Other assets—Derivative instruments | 0 | 0 |
LIABILITIES: | ||
Accrued expense and other liabilities—Derivative instruments | 0 | 0 |
Recurring | ||
ASSETS: | ||
Trading | 640 | 758 |
Fair Value | 236,726 | 232,350 |
Loans held for sale | 8,014 | 23,203 |
Servicing rights | 29,338 | 25,443 |
Other assets—Derivative instruments | 1,295 | 919 |
LIABILITIES: | ||
Accrued expense and other liabilities—Derivative instruments | 934 | 691 |
Recurring | Agency MBS | ||
ASSETS: | ||
Fair Value | 27,624 | 23,947 |
Recurring | Non-Agency MBS | ||
ASSETS: | ||
Fair Value | 206,076 | 205,005 |
Recurring | Municipal | ||
ASSETS: | ||
Fair Value | 3,026 | 3,398 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
ASSETS: | ||
Trading | 640 | 758 |
Fair Value | 30,650 | 27,345 |
Loans held for sale | 8,014 | 23,203 |
Servicing rights | 0 | 0 |
Other assets—Derivative instruments | 1,295 | 919 |
LIABILITIES: | ||
Accrued expense and other liabilities—Derivative instruments | 934 | 691 |
Recurring | Significant Other Observable Inputs (Level 2) | Agency MBS | ||
ASSETS: | ||
Fair Value | 27,624 | 23,947 |
Recurring | Significant Other Observable Inputs (Level 2) | Non-Agency MBS | ||
ASSETS: | ||
Fair Value | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Municipal | ||
ASSETS: | ||
Fair Value | 3,026 | 3,398 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
ASSETS: | ||
Trading | 0 | 0 |
Fair Value | 206,076 | 205,005 |
Loans held for sale | 0 | 0 |
Servicing rights | 29,338 | 25,443 |
Other assets—Derivative instruments | 0 | 0 |
LIABILITIES: | ||
Accrued expense and other liabilities—Derivative instruments | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Agency MBS | ||
ASSETS: | ||
Fair Value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Non-Agency MBS | ||
ASSETS: | ||
Fair Value | 206,076 | 205,005 |
Recurring | Significant Unobservable Inputs (Level 3) | Municipal | ||
ASSETS: | ||
Fair Value | $ 0 | $ 0 |
FAIR VALUE - LEVEL 3 ASSETS MEA
FAIR VALUE - LEVEL 3 ASSETS MEASURED ON RECURRING BASIS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Included in earnings—Mortgage banking income [Extensible Enumeration] | Mortgage banking and servicing rights income | Mortgage banking and servicing rights income |
Included in other comprehensive income [Extensible Enumeration] | Other comprehensive income (loss) | Other comprehensive income (loss) |
Recurring | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | $ 230,448 | $ 212,491 |
Included in earnings—Mortgage banking and servicing rights income | 1,858 | 1,024 |
Included in other comprehensive income | 1,316 | (2,473) |
Purchases, retentions, issues, sales and settlements: | ||
Purchases/Retentions | 2,037 | 207 |
Settlements | (245) | (329) |
Closing balance | 235,414 | 210,920 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | 1,858 | 1,024 |
Principal payments and loans that were paid down or paid off | 200 | 400 |
Market-driven changes in interest rates | 2,100 | 1,400 |
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | 205,005 | 186,814 |
Included in earnings—Mortgage banking and servicing rights income | 0 | 0 |
Included in other comprehensive income | 1,316 | (2,473) |
Purchases, retentions, issues, sales and settlements: | ||
Purchases/Retentions | 0 | 0 |
Settlements | (245) | (329) |
Closing balance | 206,076 | 184,012 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | 0 | 0 |
Recurring | Level 3 | Servicing Rights | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | 25,443 | 25,213 |
Included in earnings—Mortgage banking and servicing rights income | 1,858 | 953 |
Included in other comprehensive income | 0 | 0 |
Purchases, retentions, issues, sales and settlements: | ||
Purchases/Retentions | 2,037 | 207 |
Settlements | 0 | 0 |
Closing balance | 29,338 | 26,373 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | $ 1,858 | 953 |
Recurring | Level 3 | Derivative Instruments, net | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | 464 | |
Included in earnings—Mortgage banking and servicing rights income | 71 | |
Included in other comprehensive income | 0 | |
Purchases, retentions, issues, sales and settlements: | ||
Purchases/Retentions | 0 | |
Settlements | 0 | |
Closing balance | 535 | |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | $ 71 |
FAIR VALUE - QUANTITATIVE INFOR
FAIR VALUE - QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASURMENTS (RECURRING) (Details) $ in Thousands | Sep. 30, 2023 USD ($) year | Jun. 30, 2023 USD ($) year |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities – Non-agency MBS | $ 236,726 | $ 232,350 |
Securities – Available-for-Sale: Non-Agency RMBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities – Non-agency MBS | 206,076 | 205,005 |
Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities – Non-agency MBS | 206,076 | 205,005 |
Servicing rights | 29,338 | 25,443 |
Recurring | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities – Non-agency MBS | 236,726 | 232,350 |
Servicing rights | 29,338 | 25,443 |
Recurring | Securities – Available-for-Sale: Non-Agency RMBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities – Non-agency MBS | 206,076 | 205,005 |
Recurring | Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities – Non-agency MBS | 206,076 | 205,005 |
Servicing rights | 29,338 | 25,443 |
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities – Non-agency MBS | $ 206,076 | $ 205,005 |
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | Projected Constant Prepayment Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0 | 0 |
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | Projected Constant Prepayment Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.581 | 0.597 |
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | Projected Constant Prepayment Rate | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.349 | 0.320 |
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | Projected Constant Default Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0 | 0 |
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | Projected Constant Default Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.076 | 0.075 |
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | Projected Constant Default Rate | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.024 | 0.024 |
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | Projected Loss Severity | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0 | 0 |
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | Projected Loss Severity | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.687 | 0.687 |
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | Projected Loss Severity | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.285 | 0.285 |
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | Discount Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.026 | 0.026 |
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | Discount Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.065 | 0.075 |
Recurring | Level 3 | Securities – Available-for-Sale: Non-Agency RMBS | Discount Rate | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale, measurement input | 0.026 | 0.027 |
Recurring | Level 3 | Servicing Rights | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Servicing rights | $ 29,338 | $ 25,443 |
Recurring | Level 3 | Servicing Rights | Projected Constant Prepayment Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | 0.048 | 0.061 |
Recurring | Level 3 | Servicing Rights | Projected Constant Prepayment Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | 0.399 | 0.401 |
Recurring | Level 3 | Servicing Rights | Projected Constant Prepayment Rate | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | 0.130 | 0.126 |
Recurring | Level 3 | Servicing Rights | Discount Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | 0.095 | 0.095 |
Recurring | Level 3 | Servicing Rights | Discount Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | 0.115 | 0.115 |
Recurring | Level 3 | Servicing Rights | Discount Rate | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | 0.098 | 0.096 |
Recurring | Level 3 | Servicing Rights | Life (in years) | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | year | 1.7 | 1.8 |
Recurring | Level 3 | Servicing Rights | Life (in years) | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | year | 15.8 | 10.9 |
Recurring | Level 3 | Servicing Rights | Life (in years) | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing right, measurement input | year | 7.4 | 7.7 |
FAIR VALUE - LOANS HELD-FOR-SAL
FAIR VALUE - LOANS HELD-FOR-SALE (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |||
Aggregate fair value | $ 8,014 | $ 23,203 | |
Contractual balance | 7,878 | 22,844 | |
Unrealized gain | 136 | $ 359 | |
Interest income | 189 | $ 50 | |
Change in fair value | (129) | 91 | |
Total | $ 60 | $ 141 |
FAIR VALUE - ASSETS MEASURED FO
FAIR VALUE - ASSETS MEASURED FOR IMPAIRMENT ON NONRECURRING BASIS (Details) - Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | $ 8,779 | $ 8,099 |
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 | 5,574 | 5,574 |
Multifamily real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 1,392 | 1,392 |
Autos | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 1,813 | 1,133 |
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) | Multifamily 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 | ||
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) | Multifamily 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 | ||
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 | 8,779 | 8,099 |
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 | 5,574 | 5,574 |
Significant Unobservable Inputs (Level 3) | Multifamily real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 1,392 | 1,392 |
Significant Unobservable Inputs (Level 3) | Autos | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | $ 1,813 | $ 1,133 |
FAIR VALUE - NARRATIVE (Details
FAIR VALUE - NARRATIVE (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Jun. 30, 2023 | |
Nonrecurring | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | $ 8,779 | $ 8,099 |
Other Real Estate Owned | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned, valuation allowance | $ 400 | $ 1,700 |
FAIR VALUE - QUANTITATIVE INF_2
FAIR VALUE - QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASURMENTS (NONRECURRING) (Details) - Nonrecurring $ in Thousands | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) |
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | $ 8,779 | $ 8,099 |
Single family real estate | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 5,574 | 5,574 |
Multifamily real estate | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 1,392 | 1,392 |
Level 3 | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 8,779 | 8,099 |
Level 3 | Single family real estate | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | $ 5,574 | $ 5,574 |
Level 3 | Single family real estate | Differences between the comparable sales | Minimum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned, measurement input | 0.621 | 0.621 |
Level 3 | Single family real estate | Differences between the comparable sales | Maximum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned, measurement input | 0.936 | 0.936 |
Level 3 | Single family real estate | Differences between the comparable sales | Weighted Average | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned, measurement input | 0.621 | 0.621 |
Level 3 | Multifamily real estate | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | $ 1,392 | $ 1,392 |
Level 3 | Multifamily real estate | Differences between the comparable sales | Minimum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned, measurement input | 0.498 | 0.498 |
Level 3 | Multifamily real estate | Differences between the comparable sales | Maximum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned, measurement input | 0.545 | 0.545 |
Level 3 | Multifamily real estate | Differences between the comparable sales | Weighted Average | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Other real estate owned, measurement input | 0.498 | 0.498 |
FAIR VALUE - ESTIMATED FAIR VAL
FAIR VALUE - ESTIMATED FAIR VALUES OF FINANCIAL INSTRUMENTS AT PERIOD-END (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Financial assets: | ||
Securities—trading | $ 640 | $ 758 |
Securities—available-for-sale | 236,726 | 232,350 |
Stock of regulatory agencies | 21,533 | 21,510 |
Loans held for sale, at fair value | 8,014 | 23,203 |
Loans held for sale, lower of cost or fair value | 0 | 776 |
Securities borrowed | 96,424 | 134,339 |
Financial liabilities: | ||
Securities loaned | 116,446 | 159,832 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 2,413,769 | 2,382,086 |
Securities—trading | 640 | 758 |
Securities—available-for-sale | 236,726 | 232,350 |
Stock of regulatory agencies | 21,533 | 21,510 |
Loans held for sale, at fair value | 8,014 | 23,203 |
Loans held for sale, lower of cost or fair value | 776 | |
Loans held for investment—net | 16,955,041 | 16,456,728 |
Securities borrowed | 96,424 | 134,339 |
Customer, broker-dealer and clearing receivables | 285,423 | 374,074 |
Servicing rights | 29,338 | 25,443 |
Other assets—Derivative instruments | 1,295 | 919 |
Financial liabilities: | ||
Total deposits | 17,565,741 | 17,123,108 |
Advances from the Federal Home Loan Bank | 90,000 | 90,000 |
Borrowings, subordinated notes and debentures | 447,733 | 361,779 |
Securities loaned | 116,446 | 159,832 |
Customer, broker-dealer and clearing payables | 341,915 | 445,477 |
Accrued expense and other liabilities—Derivative instruments | 934 | 691 |
Total Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 2,413,769 | 2,382,086 |
Securities—trading | 640 | 758 |
Securities—available-for-sale | 236,726 | 232,350 |
Stock of regulatory agencies | 21,533 | 21,510 |
Loans held for sale, at fair value | 8,014 | 23,203 |
Loans held for sale, lower of cost or fair value | 780 | |
Loans held for investment—net | 16,935,835 | 16,417,183 |
Securities borrowed | 102,084 | 143,461 |
Customer, broker-dealer and clearing receivables | 294,499 | 386,082 |
Servicing rights | 29,338 | 25,443 |
Other assets—Derivative instruments | 1,295 | 919 |
Financial liabilities: | ||
Total deposits | 17,481,019 | 17,064,084 |
Advances from the Federal Home Loan Bank | 82,234 | 83,192 |
Borrowings, subordinated notes and debentures | 414,462 | 327,564 |
Securities loaned | 116,097 | 159,416 |
Customer, broker-dealer and clearing payables | 341,915 | 445,447 |
Accrued expense and other liabilities—Derivative instruments | 934 | 691 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 2,413,769 | 2,382,086 |
Securities—trading | 0 | 0 |
Securities—available-for-sale | 0 | 0 |
Stock of regulatory agencies | 0 | 0 |
Loans held for sale, at fair value | 0 | 0 |
Loans held for sale, lower of cost or fair value | 0 | |
Loans held for investment—net | 0 | 0 |
Securities borrowed | 0 | 0 |
Customer, broker-dealer and clearing receivables | 0 | 0 |
Servicing rights | 0 | 0 |
Other assets—Derivative instruments | 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 |
Accrued expense and other liabilities—Derivative instruments | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities—trading | 640 | 758 |
Securities—available-for-sale | 30,650 | 27,345 |
Stock of regulatory agencies | 21,533 | 21,510 |
Loans held for sale, at fair value | 8,014 | 23,203 |
Loans held for sale, lower of cost or fair value | 0 | |
Loans held for investment—net | 0 | 0 |
Securities borrowed | 0 | 0 |
Customer, broker-dealer and clearing receivables | 0 | 0 |
Servicing rights | 0 | 0 |
Other assets—Derivative instruments | 1,295 | 919 |
Financial liabilities: | ||
Total deposits | 17,481,019 | 17,064,084 |
Advances from the Federal Home Loan Bank | 82,234 | 83,192 |
Borrowings, subordinated notes and debentures | 414,462 | 327,564 |
Securities loaned | 0 | 0 |
Customer, broker-dealer and clearing payables | 0 | 0 |
Accrued expense and other liabilities—Derivative instruments | 934 | 691 |
Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities—trading | 0 | 0 |
Securities—available-for-sale | 206,076 | 205,005 |
Stock of regulatory agencies | 0 | 0 |
Loans held for sale, at fair value | 0 | 0 |
Loans held for sale, lower of cost or fair value | 780 | |
Loans held for investment—net | 16,935,835 | 16,417,183 |
Securities borrowed | 102,084 | 143,461 |
Customer, broker-dealer and clearing receivables | 294,499 | 386,082 |
Servicing rights | 29,338 | 25,443 |
Other assets—Derivative instruments | 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 | 116,097 | 159,416 |
Customer, broker-dealer and clearing payables | 341,915 | 445,447 |
Accrued expense and other liabilities—Derivative instruments | $ 0 | $ 0 |
SECURITIES - AMORTIZED COST, CA
SECURITIES - AMORTIZED COST, CARRYING AMOUNT AND FAIR VALUE DISCLOSURES (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Trading - Fair Value | $ 640 | $ 758 |
Amortized Cost | 244,993 | 240,951 |
Unrealized Gains | 724 | 711 |
Unrealized Losses | (8,991) | (9,312) |
Fair Value | 236,726 | 232,350 |
U.S. agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Trading - Fair Value | 0 | 0 |
Amortized Cost | 31,277 | 27,024 |
Unrealized Gains | 1 | 0 |
Unrealized Losses | (3,654) | (3,077) |
Fair Value | 27,624 | 23,947 |
Non-agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Trading - Fair Value | 0 | 0 |
Amortized Cost | 210,027 | 210,271 |
Unrealized Gains | 723 | 711 |
Unrealized Losses | (4,674) | (5,977) |
Fair Value | 206,076 | 205,005 |
Total mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Trading - Fair Value | 0 | 0 |
Amortized Cost | 241,304 | 237,295 |
Unrealized Gains | 724 | 711 |
Unrealized Losses | (8,328) | (9,054) |
Fair Value | 233,700 | 228,952 |
Municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Trading - Fair Value | 640 | 758 |
Amortized Cost | 3,689 | 3,656 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (663) | (258) |
Fair Value | 3,026 | 3,398 |
Total Non-MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Trading - Fair Value | 640 | 758 |
Amortized Cost | 3,689 | 3,656 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (663) | (258) |
Fair Value | $ 3,026 | $ 3,398 |
SECURITIES - NARRATIVE (Details
SECURITIES - NARRATIVE (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | |
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale securities, credit losses | $ 0 | $ 0 | |
Proceeds from sale and repayment of available-for-sale investment securities | 0 | $ 0 | |
Asset Pledged as Collateral | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale securities pledged as collateral | $ 900,000 | $ 900,000 |
SECURITIES - SCHEDULE OF UNREAL
SECURITIES - SCHEDULE OF UNREALIZED LOSS ON INVESTMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Fair Value | ||
Less Than 12 Months | $ 79,888 | $ 111,164 |
More Than 12 Months | 155,034 | 119,425 |
Total | 234,922 | 230,589 |
Gross Unrealized Losses | ||
Less Than 12 Months | (227) | (1,824) |
More Than 12 Months | (8,764) | (7,488) |
Total | (8,991) | (9,312) |
U.S. agencies | ||
Fair Value | ||
Less Than 12 Months | 7,321 | 3,182 |
More Than 12 Months | 20,134 | 20,642 |
Total | 27,455 | 23,824 |
Gross Unrealized Losses | ||
Less Than 12 Months | (174) | (16) |
More Than 12 Months | (3,480) | (3,061) |
Total | (3,654) | (3,077) |
Non-agency | ||
Fair Value | ||
Less Than 12 Months | 72,567 | 107,982 |
More Than 12 Months | 131,874 | 95,385 |
Total | 204,441 | 203,367 |
Gross Unrealized Losses | ||
Less Than 12 Months | (53) | (1,808) |
More Than 12 Months | (4,621) | (4,169) |
Total | (4,674) | (5,977) |
Total MBS | ||
Fair Value | ||
Less Than 12 Months | 79,888 | 111,164 |
More Than 12 Months | 152,008 | 116,027 |
Total | 231,896 | 227,191 |
Gross Unrealized Losses | ||
Less Than 12 Months | (227) | (1,824) |
More Than 12 Months | (8,101) | (7,230) |
Total | (8,328) | (9,054) |
Municipal | ||
Fair Value | ||
Less Than 12 Months | 0 | 0 |
More Than 12 Months | 3,026 | 3,398 |
Total | 3,026 | 3,398 |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
More Than 12 Months | (663) | (258) |
Total | (663) | (258) |
Total Non-MBS | ||
Fair Value | ||
Less Than 12 Months | 0 | 0 |
More Than 12 Months | 3,026 | 3,398 |
Total | 3,026 | 3,398 |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
More Than 12 Months | (663) | (258) |
Total | $ (663) | $ (258) |
SECURITIES - UNREALIZED GAIN (L
SECURITIES - UNREALIZED GAIN (LOSS) ON INVESTMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale debt securities—net unrealized gains (losses) | $ (8,266) | $ (8,601) |
Available-for-sale debt securities—non-credit related | (845) | (845) |
Subtotal | (9,111) | (9,446) |
Tax benefit (expense) | 2,723 | 2,836 |
Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss) | $ (6,388) | $ (6,610) |
SECURITIES - INVESTMENTS CLASSI
SECURITIES - INVESTMENTS CLASSIFIED BY CONTRACTUAL MATURITY DATE (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Available-for-Sale, Fair Value | ||
Amortized Cost | $ 244,993 | $ 240,951 |
Available-for-Sale Amortized Cost | ||
Total Amount | 244,993 | |
Due Within One Year | 134,185 | |
Due after One but within Five Years | 94,406 | |
Due after Five but within Ten Years | 9,100 | |
Due After Ten Years | 7,302 | |
Fair Value | ||
Available-for-Sale, Fair Value | ||
Amortized Cost | 236,726 | |
Due Within One Year | 130,977 | |
Due after One but within Five Years | 91,040 | |
Due after Five but within Ten Years | 8,203 | |
Due After Ten Years | 6,506 | |
U.S. agencies | ||
Available-for-Sale, Fair Value | ||
Amortized Cost | 31,277 | 27,024 |
Due Within One Year | 6,444 | |
Due after One but within Five Years | 14,821 | |
Due after Five but within Ten Years | 7,460 | |
Due After Ten Years | 2,552 | |
Non-agency | ||
Available-for-Sale, Fair Value | ||
Amortized Cost | 210,027 | 210,271 |
Due Within One Year | 127,741 | |
Due after One but within Five Years | 79,585 | |
Due after Five but within Ten Years | 1,640 | |
Due After Ten Years | 1,061 | |
Total mortgage-backed securities | ||
Available-for-Sale, Fair Value | ||
Amortized Cost | 241,304 | 237,295 |
Due Within One Year | 134,185 | |
Due after One but within Five Years | 94,406 | |
Due after Five but within Ten Years | 9,100 | |
Due After Ten Years | 3,613 | |
Municipal | ||
Available-for-Sale, Fair Value | ||
Amortized Cost | 3,689 | 3,656 |
Due Within One Year | 0 | |
Due after One but within Five Years | 0 | |
Due after Five but within Ten Years | 0 | |
Due After Ten Years | 3,689 | |
Total Non-MBS | ||
Available-for-Sale, Fair Value | ||
Amortized Cost | 3,689 | $ 3,656 |
Due Within One Year | 0 | |
Due after One but within Five Years | 0 | |
Due after Five but within Ten Years | 0 | |
Due After Ten Years | $ 3,689 |
LOANS & ALLOWANCE FOR CREDIT _3
LOANS & ALLOWANCE FOR CREDIT LOSSES - NARRATIVE (Details) | 3 Months Ended | ||
Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) loan | |
Financing Receivable, Impaired [Line Items] | |||
Number of loan portfolio segments | segment | 6 | ||
Accrued interest receivable on loans held for investments | $ 90,800,000 | $ 77,900,000 | |
Advances, collateral pledged | 5,172,600,000 | 5,128,400,000 | |
FRBSF and FRB, loans pledged | 3,642,600,000 | 3,689,500,000 | |
Nonaccrual loans | 0 | 0 | |
Interest income recognized on nonaccrual loans | 0 | $ 0 | |
Loans past due ninety days or more and still accruing | 29,800,000 | 14,100,000 | |
Mortgage loans in process of foreclosure, amount | $ 18,000,000 | $ 17,700,000 | |
Nonaccrual | |||
Financing Receivable, Impaired [Line Items] | |||
Ratio of nonaccrual loans and leases considered TDRs | 1.77% | ||
Period over which borrowers can make timely payments after TDR considered non-performing (in months) | 6 months | ||
Performing | |||
Financing Receivable, Impaired [Line Items] | |||
Number or TDRs classified as performing | loan | 0 |
LOANS & ALLOWANCE FOR CREDIT _4
LOANS & ALLOWANCE FOR CREDIT LOSSES - LOAN PORTFOLIO COMPOSITION (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 17,161,931 | $ 16,652,026 | ||
Allowance for credit losses - loans | (170,870) | (166,680) | $ (155,472) | $ (148,617) |
Unaccreted premiums (discounts) and loan fees | (36,020) | (28,618) | ||
Total net loans and leases | 16,955,041 | 16,456,728 | ||
Single Family - Mortgage & Warehouse | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 4,313,906 | 4,173,833 | ||
Allowance for credit losses - loans | (17,426) | (17,503) | (18,039) | (19,670) |
Multifamily and Commercial Mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 2,961,981 | 3,082,225 | ||
Allowance for credit losses - loans | (15,874) | (16,848) | (14,649) | (14,655) |
Commercial Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 6,168,626 | 6,199,818 | ||
Allowance for credit losses - loans | (71,355) | (72,755) | (73,776) | (69,339) |
Commercial & Industrial - Non-RE | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 3,208,969 | 2,639,650 | ||
Allowance for credit losses - loans | (54,592) | (46,347) | (34,383) | (30,808) |
Auto & Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 506,011 | 546,264 | ||
Allowance for credit losses - loans | (11,614) | (13,212) | (14,595) | (14,114) |
Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 2,438 | 10,236 | ||
Allowance for credit losses - loans | $ (9) | $ (15) | $ (30) | $ (31) |
LOANS & ALLOWANCE FOR CREDIT _5
LOANS & ALLOWANCE FOR CREDIT LOSSES - COMPONENTS OF THE PROVISION FOR CREDIT LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total provision for credit losses | $ 7,000 | $ 8,750 |
Provision for credit losses - loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total provision for credit losses | 5,750 | 8,750 |
Provision for credit losses - unfunded lending commitments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total provision for credit losses | $ 1,250 | $ 0 |
LOANS & ALLOWANCE FOR CREDIT _6
LOANS & ALLOWANCE FOR CREDIT LOSSES - ALLOWANCE FOR LOAN LOSS BY PORTFOLIO CLASS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 166,680 | $ 148,617 |
Provision (benefit) for credit losses - loans | 7,000 | 8,750 |
Charge-offs | (2,361) | (2,366) |
Recoveries | 801 | 471 |
Balance, end of period | 170,870 | 155,472 |
Provision (benefit) for credit losses - loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Provision (benefit) for credit losses - loans | 5,750 | 8,750 |
Single Family - Mortgage & Warehouse | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | 17,503 | 19,670 |
Provision (benefit) for credit losses - loans | (1,642) | |
Charge-offs | (80) | (4) |
Recoveries | 13 | 15 |
Balance, end of period | 17,426 | 18,039 |
Single Family - Mortgage & Warehouse | Provision (benefit) for credit losses - loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Provision (benefit) for credit losses - loans | (10) | |
Multifamily and Commercial Mortgage | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | 16,848 | 14,655 |
Provision (benefit) for credit losses - loans | (6) | |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance, end of period | 15,874 | 14,649 |
Multifamily and Commercial Mortgage | Provision (benefit) for credit losses - loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Provision (benefit) for credit losses - loans | (974) | |
Commercial Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | 72,755 | 69,339 |
Provision (benefit) for credit losses - loans | 4,437 | |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance, end of period | 71,355 | 73,776 |
Commercial Real Estate | Provision (benefit) for credit losses - loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Provision (benefit) for credit losses - loans | (1,400) | |
Commercial & Industrial - Non-RE | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | 46,347 | 30,808 |
Provision (benefit) for credit losses - loans | 3,557 | |
Charge-offs | 0 | 0 |
Recoveries | 0 | 18 |
Balance, end of period | 54,592 | 34,383 |
Commercial & Industrial - Non-RE | Provision (benefit) for credit losses - loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Provision (benefit) for credit losses - loans | 8,245 | |
Auto & Consumer | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | 13,212 | 14,114 |
Provision (benefit) for credit losses - loans | 2,405 | |
Charge-offs | (2,281) | (2,362) |
Recoveries | 788 | 438 |
Balance, end of period | 11,614 | 14,595 |
Auto & Consumer | Provision (benefit) for credit losses - loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Provision (benefit) for credit losses - loans | (105) | |
Other | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | 15 | 31 |
Provision (benefit) for credit losses - loans | (1) | |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance, end of period | 9 | $ 30 |
Other | Provision (benefit) for credit losses - loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Provision (benefit) for credit losses - loans | $ (6) |
LOANS & ALLOWANCE FOR CREDIT _7
LOANS & ALLOWANCE FOR CREDIT LOSSES - ALLOWANCE FOR LOAN LOSS AND RESERVE FOR UNFUNDED LOAN COMMITMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||
Balance, beginning of period | $ 10,473 | $ 10,973 |
Provision for credit losses - unfunded lending commitments | 1,250 | 0 |
Balance, end of period | $ 11,723 | $ 10,973 |
LOANS & ALLOWANCE FOR CREDIT _8
LOANS & ALLOWANCE FOR CREDIT LOSSES - REAL ESTATE LOANS, LTV RATIO (Details) | 3 Months Ended |
Sep. 30, 2023 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Weighted-Average LTV | 48.90% |
Median LTV | 54% |
Effective weighted-average LTV | 48.70% |
Single Family - Mortgage & Warehouse | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Weighted-Average LTV | 57.30% |
Median LTV | 56.90% |
Multifamily and Commercial Mortgage | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Weighted-Average LTV | 53.60% |
Median LTV | 50% |
Commercial Real Estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Weighted-Average LTV | 40.70% |
Median LTV | 41.60% |
LOANS & ALLOWANCE FOR CREDIT _9
LOANS & ALLOWANCE FOR CREDIT LOSSES - UNPAID PRINCIPAL BALANCE FOR PERFORMING AND NONACCRUAL (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 17,161,931 | $ 16,652,026 |
Non accrual loans to total loans | 0.62% | 0.52% |
Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 4,313,906 | $ 4,173,833 |
Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,961,981 | 3,082,225 |
Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 6,168,626 | 6,199,818 |
Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 3,208,969 | 2,639,650 |
Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 506,011 | 546,264 |
Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,438 | 10,236 |
Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 17,055,005 | 16,564,866 |
Performing | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 4,277,324 | 4,143,119 |
Performing | Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,923,154 | 3,047,122 |
Performing | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 6,142,524 | 6,184,966 |
Performing | Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 3,205,980 | 2,636,661 |
Performing | Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 503,625 | 544,807 |
Performing | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,398 | 8,191 |
Nonaccrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 106,926 | 87,160 |
Nonaccrual | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 36,582 | 30,714 |
Nonaccrual | Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 38,827 | 35,103 |
Nonaccrual | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 26,102 | 14,852 |
Nonaccrual | Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,989 | 2,989 |
Nonaccrual | Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,386 | 1,457 |
Nonaccrual | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 40 | $ 2,045 |
LOANS & ALLOWANCE FOR CREDIT_10
LOANS & ALLOWANCE FOR CREDIT LOSSES - LOANS BY AMORTIZED COST BASIS BY YEAR OF ORIGINATION AND CREDIT QUALITY INDICATOR (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Jun. 30, 2023 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | $ 979,382 | $ 3,842,206 |
2023 | 3,622,894 | 5,386,784 |
2022 | 5,100,502 | 1,816,171 |
2021 | 1,721,831 | 867,067 |
2020 | 760,359 | 665,377 |
Prior | 1,699,938 | 1,156,389 |
Revolving Loans | 3,277,025 | 2,918,032 |
Total | 17,161,931 | $ 16,652,026 |
Gross charge-offs | ||
2024 | 0 | |
2023 | 711 | |
2022 | 1,093 | |
2021 | 378 | |
2020 | 73 | |
Prior | 106 | |
Revolving Loans | 0 | |
Total | $ 2,361 | |
As a % of total gross loans | ||
2024 | 5.71% | 23.07% |
2023 | 21.11% | 32.35% |
2022 | 29.72% | 10.91% |
2021 | 10.03% | 5.21% |
2020 | 4.43% | 4% |
Prior | 9.91% | 6.94% |
Revolving Loans | 19.09% | 17.52% |
Total | 100% | 100% |
Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | $ 209,544 | $ 730,498 |
2023 | 692,634 | 1,359,272 |
2022 | 1,334,900 | 534,585 |
2021 | 525,986 | 347,145 |
2020 | 339,236 | 270,513 |
Prior | 916,528 | 682,031 |
Revolving Loans | 295,078 | 249,789 |
Total | 4,313,906 | 4,173,833 |
Gross charge-offs | ||
2024 | 0 | |
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
Prior | 80 | |
Revolving Loans | 0 | |
Total | 80 | |
Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 9,328 | 558,787 |
2023 | 489,188 | 988,022 |
2022 | 988,008 | 509,066 |
2021 | 499,432 | 354,600 |
2020 | 335,928 | 238,478 |
Prior | 640,097 | 433,272 |
Revolving Loans | 0 | 0 |
Total | 2,961,981 | 3,082,225 |
Gross charge-offs | ||
2024 | 0 | |
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total | 0 | |
Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 501,339 | 1,896,476 |
2023 | 1,867,923 | 2,395,722 |
2022 | 2,203,710 | 669,451 |
2021 | 602,443 | 114,016 |
2020 | 43,608 | 134,215 |
Prior | 109,154 | 29,914 |
Revolving Loans | 840,449 | 960,024 |
Total | 6,168,626 | 6,199,818 |
Gross charge-offs | ||
2024 | 0 | |
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total | 0 | |
Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 248,136 | 488,120 |
2023 | 423,625 | 384,197 |
2022 | 337,121 | 30,809 |
2021 | 29,707 | 26,207 |
2020 | 20,027 | 2,098 |
Prior | 8,855 | 0 |
Revolving Loans | 2,141,498 | 1,708,219 |
Total | 3,208,969 | 2,639,650 |
Gross charge-offs | ||
2024 | 0 | |
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total | 0 | |
Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 10,130 | 162,604 |
2023 | 149,524 | 257,571 |
2022 | 236,763 | 70,909 |
2021 | 63,033 | 25,099 |
2020 | 21,560 | 20,073 |
Prior | 25,001 | 10,008 |
Revolving Loans | 0 | 0 |
Total | 506,011 | 546,264 |
Gross charge-offs | ||
2024 | 0 | |
2023 | 711 | |
2022 | 1,093 | |
2021 | 378 | |
2020 | 73 | |
Prior | 26 | |
Revolving Loans | 0 | |
Total | 2,281 | |
Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 905 | 5,721 |
2023 | 0 | 2,000 |
2022 | 0 | 1,351 |
2021 | 1,230 | 0 |
2020 | 0 | 0 |
Prior | 303 | 1,164 |
Revolving Loans | 0 | 0 |
Total | 2,438 | 10,236 |
Gross charge-offs | ||
2024 | 0 | |
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total | 0 | |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 979,382 | 3,812,433 |
2023 | 3,585,084 | 5,259,453 |
2022 | 4,916,728 | 1,754,423 |
2021 | 1,650,638 | 765,600 |
2020 | 664,573 | 620,062 |
Prior | 1,540,060 | 1,054,716 |
Revolving Loans | 3,264,979 | 2,910,818 |
Total | 16,601,444 | 16,177,505 |
Pass | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 209,544 | 730,498 |
2023 | 673,266 | 1,346,804 |
2022 | 1,306,937 | 522,873 |
2021 | 514,928 | 324,458 |
2020 | 313,863 | 255,547 |
Prior | 848,948 | 639,401 |
Revolving Loans | 295,078 | 243,175 |
Total | 4,162,564 | 4,062,756 |
Pass | Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 9,328 | 558,787 |
2023 | 478,469 | 975,186 |
2022 | 974,390 | 498,744 |
2021 | 479,725 | 314,383 |
2020 | 299,551 | 224,592 |
Prior | 597,311 | 404,222 |
Revolving Loans | 0 | 0 |
Total | 2,838,774 | 2,975,914 |
Pass | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 501,339 | 1,867,476 |
2023 | 1,867,923 | 2,323,095 |
2022 | 2,113,338 | 631,500 |
2021 | 563,541 | 87,059 |
2020 | 20,737 | 117,928 |
Prior | 62,928 | 0 |
Revolving Loans | 840,449 | 960,024 |
Total | 5,970,255 | 5,987,082 |
Pass | Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 248,136 | 488,120 |
2023 | 416,819 | 358,214 |
2022 | 287,067 | 29,777 |
2021 | 28,675 | 14,794 |
2020 | 9,041 | 2,098 |
Prior | 5,866 | 0 |
Revolving Loans | 2,129,452 | 1,707,619 |
Total | 3,125,056 | 2,600,622 |
Pass | Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 10,130 | 161,831 |
2023 | 148,607 | 256,154 |
2022 | 234,996 | 70,223 |
2021 | 62,579 | 24,906 |
2020 | 21,381 | 19,897 |
Prior | 24,704 | 9,929 |
Revolving Loans | 0 | 0 |
Total | 502,397 | 542,940 |
Pass | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 905 | 5,721 |
2023 | 0 | 0 |
2022 | 0 | 1,306 |
2021 | 1,190 | 0 |
2020 | 0 | 0 |
Prior | 303 | 1,164 |
Revolving Loans | 0 | 0 |
Total | 2,398 | 8,191 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 0 | 29,423 |
2023 | 37,231 | 69,251 |
2022 | 100,134 | 12,115 |
2021 | 8,537 | 29,593 |
2020 | 31,269 | 21,461 |
Prior | 52,690 | 33,312 |
Revolving Loans | 12,046 | 7,214 |
Total | 241,907 | 202,369 |
Special Mention | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 0 | 0 |
2023 | 19,368 | 7,280 |
2022 | 18,998 | 7,026 |
2021 | 6,468 | 8,303 |
2020 | 11,028 | 12,942 |
Prior | 36,745 | 18,244 |
Revolving Loans | 0 | 6,614 |
Total | 92,607 | 60,409 |
Special Mention | Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 0 | 0 |
2023 | 10,719 | 9,691 |
2022 | 0 | 4,636 |
2021 | 2,000 | 1,360 |
2020 | 1,358 | 7,705 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 14,077 | 23,392 |
Special Mention | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 0 | 29,000 |
2023 | 0 | 43,427 |
2022 | 45,130 | 0 |
2021 | 0 | 8,457 |
2020 | 7,871 | 800 |
Prior | 15,887 | 15,062 |
Revolving Loans | 0 | |
Total | 68,888 | 96,746 |
Special Mention | Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 0 | 0 |
2023 | 6,806 | 8,221 |
2022 | 35,430 | 0 |
2021 | 0 | 11,413 |
2020 | 10,986 | 0 |
Prior | 0 | 0 |
Revolving Loans | 12,046 | 600 |
Total | 65,268 | 20,234 |
Special Mention | Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 0 | 423 |
2023 | 338 | 632 |
2022 | 576 | 453 |
2021 | 69 | 60 |
2020 | 26 | 14 |
Prior | 58 | 6 |
Revolving Loans | 0 | 0 |
Total | 1,067 | 1,588 |
Special Mention | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 0 | 0 |
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 0 | 350 |
2023 | 579 | 58,080 |
2022 | 83,640 | 49,633 |
2021 | 62,656 | 71,874 |
2020 | 64,517 | 23,854 |
Prior | 107,188 | 68,361 |
Revolving Loans | 0 | 0 |
Total | 318,580 | 272,152 |
Substandard | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 0 | 0 |
2023 | 0 | 5,188 |
2022 | 8,965 | 4,686 |
2021 | 4,590 | 14,384 |
2020 | 14,345 | 2,024 |
Prior | 30,835 | 24,386 |
Revolving Loans | 0 | 0 |
Total | 58,735 | 50,668 |
Substandard | Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 0 | 0 |
2023 | 0 | 3,145 |
2022 | 13,618 | 5,686 |
2021 | 17,707 | 38,857 |
2020 | 35,019 | 6,181 |
Prior | 42,786 | 29,050 |
Revolving Loans | 0 | 0 |
Total | 109,130 | 82,919 |
Substandard | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 0 | 0 |
2023 | 0 | 29,200 |
2022 | 45,242 | 37,951 |
2021 | 38,902 | 18,500 |
2020 | 15,000 | 15,487 |
Prior | 30,339 | 14,852 |
Revolving Loans | 0 | 0 |
Total | 129,483 | 115,990 |
Substandard | Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 0 | 0 |
2023 | 0 | 17,762 |
2022 | 14,624 | 1,032 |
2021 | 1,032 | 0 |
2020 | 0 | 0 |
Prior | 2,989 | 0 |
Revolving Loans | 0 | 0 |
Total | 18,645 | 18,794 |
Substandard | Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 0 | 350 |
2023 | 579 | 785 |
2022 | 1,191 | 233 |
2021 | 385 | 133 |
2020 | 153 | 162 |
Prior | 239 | 73 |
Revolving Loans | 0 | 0 |
Total | 2,547 | 1,736 |
Substandard | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 0 | 0 |
2023 | 0 | 2,000 |
2022 | 0 | 45 |
2021 | 40 | 0 |
2020 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 40 | 2,045 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 0 | 0 |
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Doubtful | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 0 | 0 |
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Doubtful | Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 0 | 0 |
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Doubtful | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 0 | 0 |
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Doubtful | Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 0 | 0 |
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Doubtful | Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 0 | 0 |
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Doubtful | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 0 | 0 |
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | $ 0 | $ 0 |
LOANS & ALLOWANCE FOR CREDIT_11
LOANS & ALLOWANCE FOR CREDIT LOSSES - PAST DUE LOANS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 17,161,931 | $ 16,652,026 |
Single Family - Mortgage & Warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 4,313,906 | 4,173,833 |
Multifamily and Commercial Mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,961,981 | 3,082,225 |
Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 6,168,626 | 6,199,818 |
Commercial & Industrial - Non-RE | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3,208,969 | 2,639,650 |
Auto & Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 506,011 | 546,264 |
Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,438 | 10,236 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 16,985,491 | $ 16,508,938 |
As a % of total gross loans | 98.98% | 99.14% |
Current | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 4,227,936 | $ 4,102,150 |
Current | Multifamily and Commercial Mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,921,752 | 3,048,217 |
Current | Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 6,126,237 | 6,173,716 |
Current | Commercial & Industrial - Non-RE | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3,208,969 | 2,639,650 |
Current | Auto & Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 498,370 | 537,181 |
Current | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,227 | 8,024 |
30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 38,495 | $ 41,384 |
As a % of total gross loans | 0.22% | 0.25% |
30-59 Days | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 26,362 | $ 20,832 |
30-59 Days | Multifamily and Commercial Mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 6,307 | 2,705 |
30-59 Days | Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 800 | 11,250 |
30-59 Days | Commercial & Industrial - Non-RE | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
30-59 Days | Auto & Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 4,815 | 6,529 |
30-59 Days | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 211 | 68 |
60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 12,407 | $ 10,803 |
As a % of total gross loans | 0.07% | 0.06% |
60-89 Days | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 11,118 | $ 7,971 |
60-89 Days | Multifamily and Commercial Mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 1,124 |
60-89 Days | Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
60-89 Days | Commercial & Industrial - Non-RE | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
60-89 Days | Auto & Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,289 | 1,707 |
60-89 Days | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 1 |
90+ Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 125,538 | $ 90,901 |
As a % of total gross loans | 0.73% | 0.55% |
90+ Days | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 48,490 | $ 42,880 |
90+ Days | Multifamily and Commercial Mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 33,922 | 30,179 |
90+ Days | Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 41,589 | 14,852 |
90+ Days | Commercial & Industrial - Non-RE | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
90+ Days | Auto & Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,537 | 847 |
90+ Days | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 0 | 2,143 |
Total | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 16,652,026 | |
As a % of total gross loans | 100% | 100% |
STOCKHOLDERS_ EQUITY AND STOC_3
STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION - NARRATIVE (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |
Oct. 20, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Stock Award Compensation Expense | |||
Stock repurchase amount | $ 24,536 | ||
RSUs | |||
Stock Award Compensation Expense | |||
Total fair value of shares vested | $ 14,800 | $ 12,000 | |
Weighted-average remaining time period | 1 year 6 months | ||
Common Stock | |||
Stock Award Compensation Expense | |||
Stock repurchase amount | $ 24,500 | $ 6,000 | |
Purchase of treasury stock (in shares) | 648,208 | 159,297 | |
Repurchased stock, average price per share (in dollars per share) | $ 37.85 | ||
Common Stock | Subsequent Event | |||
Stock Award Compensation Expense | |||
Stock repurchase amount | $ 35,000 | ||
Purchase of treasury stock (in shares) | 963,640 |
STOCKHOLDERS_ EQUITY AND STOC_4
STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION - UNRECOGNIZED COMPENSATION EXPENSE RELATED TO NON-VESTED AWARDS (Details) - RSUs $ in Thousands | Sep. 30, 2023 USD ($) shares |
Stock Award Compensation Expense | |
Remainder of fiscal year 2024 | $ 21,320 |
2025 | 19,416 |
2026 | 10,256 |
2027 | 1,879 |
2028 | 237 |
Total | $ 53,108 |
A2014 Stock Incentive Plan | |
Stock Award Compensation Expense | |
Share-based compensation arrangement by share-based payment award, number of shares available for grant | shares | 915,865 |
Unrecognized compensation expense | $ 53,100 |
STOCKHOLDERS_ EQUITY AND STOC_5
STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION - CHANGES IN RESTRICTED STOCK UNIT GRANTS (Details) - RSUs | 3 Months Ended |
Sep. 30, 2023 $ / shares shares | |
RSUs | |
Non-vested balance, beginning (in shares) | shares | 1,407,882 |
Granted (in shares) | shares | 631,577 |
Vested (in shares) | shares | (360,817) |
Forfeited (in shares) | shares | (12,781) |
Non-vested balance, ending (in shares) | shares | 1,665,861 |
Weighted-Average Grant-Date Fair Value | |
Non-vested balance, beginning (in dollars per share) | $ / shares | $ 41.53 |
Granted (in dollars per share) | $ / shares | 42.60 |
Vested (in dollars per share) | $ / shares | 37.62 |
Forfeited (in dollars per share) | $ / shares | 39.57 |
Non-vested balance, ending (in dollars per share) | $ / shares | $ 42.80 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Common Share | ||
Net income | $ 58,407 | |
Average common shares outstanding (in shares) | 58,949,038 | 59,854,584 |
Basic earnings per common share (in dollars per share) | $ 1.40 | $ 0.98 |
Diluted Earnings Per Common Share | ||
Net income | $ 82,645 | $ 58,407 |
Average common shares issued and outstanding (in shares) | 58,949,038 | 59,854,584 |
Total dilutive common shares outstanding (in shares) | 59,808,322 | 60,486,394 |
Diluted earnings per common share (in dollars per share) | $ 1.38 | $ 0.97 |
Weighted average antidilutive common stock equivalents (in shares) | 5,348 | 251,841 |
RSUs | ||
Diluted Earnings Per Common Share | ||
Dilutive effect of average unvested RSUs (in shares) | 859,284 | 631,810 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - SCHEDULE OF MATURITIES OF LEASE LIABILITIES (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Within one year | $ 11,635 |
After one year and within two years | 11,833 |
After two years and within three years | 11,409 |
After three years and within four years | 11,504 |
After four years within five years | 9,869 |
After five years | 17,841 |
Total lease payments | 74,091 |
Less: amount representing interest | (6,847) |
Total lease liability | $ 67,244 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - NARRATIVE (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Sep. 30, 2023 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risk, ratio of commitments to originate loans to commitments to sell | 3,600% | |
MUFG Union Bank v. Axos Bank | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Accrued litigation expense | $ 16 | |
General and administrative expense | $ 16 | |
Loan Origination Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet, loan origination commitment | $ 3,218.3 | |
Loan Origination Commitments | Fixed Interest Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet, loan origination commitment | $ 99 | |
Weighted average fixed interest rate on commitments to extend credit | 8.44% | |
Loan Origination Commitments | Fixed Interest Rate | Sales commitment | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet, commitment | $ 13.2 | |
Loan Origination Commitments | Variable Interest Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet, loan origination commitment | $ 3,119.3 |
SEGMENT REPORTING AND REVENUE_3
SEGMENT REPORTING AND REVENUE INFORMATION - SEGMENT REPORTING INFORMATION, BY SEGMENT (Details) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | |
Segment Reporting [Abstract] | |||
Number of operating segments | segment | 2 | ||
Segment Reporting Information [Line Items] | |||
Net interest income | $ 211,155 | $ 180,475 | |
Provision for credit losses | 7,000 | 8,750 | |
Non-interest income | 34,507 | 27,208 | |
Non-interest expense | 120,506 | 116,087 | |
INCOME BEFORE INCOME TAXES | 118,156 | 82,846 | |
Goodwill | 97,673 | $ 97,673 | |
Total Assets | 20,825,206 | 20,348,469 | |
Operating segments | Banking Business | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 209,219 | 179,730 | |
Provision for credit losses | 7,000 | 8,750 | |
Non-interest income | 12,557 | 10,712 | |
Non-interest expense | 100,786 | 100,796 | |
INCOME BEFORE INCOME TAXES | 113,990 | 80,896 | |
Goodwill | 35,721 | 35,721 | |
Total Assets | 19,929,316 | 19,396,167 | |
Operating segments | Securities Business | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 5,542 | 4,275 | |
Provision for credit losses | 0 | 0 | |
Non-interest income | 34,555 | 29,165 | |
Non-interest expense | 27,523 | 24,515 | |
INCOME BEFORE INCOME TAXES | 12,574 | 8,925 | |
Goodwill | 61,952 | 61,952 | |
Total Assets | 858,141 | 899,496 | |
Corporate/Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net interest income | (3,606) | (3,530) | |
Provision for credit losses | 0 | 0 | |
Non-interest income | (12,605) | (12,669) | |
Non-interest expense | (7,803) | (9,224) | |
INCOME BEFORE INCOME TAXES | (8,408) | $ (6,975) | |
Goodwill | 0 | 0 | |
Total Assets | $ 37,749 | $ 52,806 |
SEGMENT REPORTING AND REVENUE_4
SEGMENT REPORTING AND REVENUE INFORMATION - NON-INTEREST INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting [Abstract] | ||
Advisory fee income | $ 8,219 | $ 6,959 |
Broker-dealer clearing fees | 5,535 | 5,233 |
Deposit service fees | 680 | 1,106 |
Card fees | 682 | 789 |
Bankruptcy trustee and fiduciary service fees | 1,394 | 773 |
Non-interest income (in-scope ASC 606) | 16,510 | 14,860 |
Non-interest income (out-of-scope ASC 606) | 17,997 | 12,348 |
Total non-interest income | $ 34,507 | $ 27,208 |