Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Aug. 17, 2018 | Dec. 31, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | BofI Holding, Inc. | ||
Entity Central Index Key | 1,299,709 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 62,776,754 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,523,473,172 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
ASSETS | ||
Cash and due from banks | $ 622,750 | $ 628,172 |
Federal funds sold | 100 | 15,369 |
Total cash and cash equivalents | 622,850 | 643,541 |
Securities: | ||
Trading | 0 | 8,327 |
Available for sale | 180,305 | 264,470 |
Stock of the Federal Home Loan Bank, at cost | 17,250 | 63,207 |
Loans held for sale, carried at fair value | 35,077 | 18,738 |
Loans held for sale, carried at lower of cost or fair value | 2,686 | 6,669 |
Loans and leases—net of allowance for loan and lease losses of $49,151 as of June 2018 and $40,832 as of June 2017 | 8,432,289 | 7,374,493 |
Accrued interest receivable | 26,729 | 20,781 |
Furniture, equipment and software—net | 21,454 | 16,659 |
Deferred income tax | 17,957 | 34,341 |
Cash surrender value of life insurance | 6,358 | 6,174 |
Mortgage servicing rights, carried at fair value | 10,752 | 7,200 |
Other real estate owned and repossessed vehicles | 9,591 | 1,413 |
Goodwill and other intangible assets—net | 67,788 | 0 |
Other assets | 88,418 | 35,667 |
TOTAL ASSETS | 9,539,504 | 8,501,680 |
Deposits: | ||
Non-interest bearing | 1,015,355 | 848,544 |
Interest bearing | 6,969,995 | 6,050,963 |
Total deposits | 7,985,350 | 6,899,507 |
Securities sold under agreements to repurchase | 0 | 20,000 |
Advances from the Federal Home Loan Bank | 457,000 | 640,000 |
Subordinated notes and debentures and other | 54,552 | 54,463 |
Accrued interest payable | 1,753 | 1,284 |
Accounts payable and accrued liabilities and other liabilities | 80,336 | 52,179 |
Total liabilities | 8,578,991 | 7,667,433 |
COMMITMENTS AND CONTINGENCIES (Note 15) | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock—$0.01 par value; 150,000,000 shares authorized, 65,796,060 shares issued and 62,688,064 shares outstanding as of June 2018, 65,115,932 shares issued and 63,536,244 shares outstanding as of June 2017 | 658 | 651 |
Additional paid-in capital | 366,515 | 346,117 |
Accumulated other comprehensive income (loss)—net of tax | (613) | 487 |
Retained earnings | 671,348 | 519,246 |
Treasury stock, at cost; 3,107,996 shares as of June 2018 and 1,579,688 shares as of June 2017 | (82,458) | (37,317) |
Total stockholders’ equity | 960,513 | 834,247 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 9,539,504 | 8,501,680 |
Series A Preferred Stock | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock—$0.01 par value; 1,000,000 shares authorized; Series A—$10,000 stated value and liquidation preference per share; 515 shares issued and outstanding as of June 2018 and June 2017 | $ 5,063 | $ 5,063 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | |
Assets: | |||
Loans - Net Allowance for Loan Losses | $ 49,151 | $ 40,832 | |
Stockholders' Equity: | |||
Preferred stock, par or stated value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 | |
Common stock, shares, issued (in shares) | 65,796,060 | 65,115,932 | |
Common stock, shares outstanding (in shares) | [1] | 62,688,064 | 63,536,244 |
Treasury stock, shares (in shares) | 3,107,996 | 1,579,688 | |
Series A Preferred Stock | |||
Stockholders' Equity: | |||
Preferred stock, par or stated value (in dollars per share) | $ 10,000 | $ 10,000 | |
Preferred stock, liquidation preference value (in dollars per share) | $ 10,000 | $ 10,000 | |
Preferred stock, shares issued (in shares) | 515 | 515 | |
Preferred stock, shares outstanding (in shares) | 515 | 515 | |
[1] | Common stock amounts have been retroactively restated for the fiscal year ended June 30, 2015 presented to reflect the four -for-one forward split of the Company’s common stock effected in the form of a stock dividend that was distributed on November 17, 2015. The par value of common stock remains unchanged at $0.01 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
INTEREST AND DIVIDEND INCOME: | |||
Loans and leases, including fees | $ 446,991 | $ 358,849 | $ 291,058 |
Investments | 28,083 | 28,437 | 26,649 |
Total interest and dividend income | 475,074 | 387,286 | 317,707 |
INTEREST EXPENSE: | |||
Deposits | 79,851 | 56,494 | 42,667 |
Advances from the Federal Home Loan Bank | 22,848 | 12,403 | 11,175 |
Other borrowings | 3,881 | 5,162 | 2,854 |
Total interest expense | 106,580 | 74,059 | 56,696 |
Net interest income | 368,494 | 313,227 | 261,011 |
Provision for loan and lease losses | 25,800 | 11,061 | 9,700 |
Net interest income, after provision for loan and lease losses | 342,694 | 302,166 | 251,311 |
NON-INTEREST INCOME: | |||
Realized gain (loss) on sale of securities | (18) | 3,920 | 1,427 |
Other-than-temporary loss on securities: | |||
Total impairment losses | (6,271) | (10,937) | (3,472) |
Loss (gain) recognized in other comprehensive income | 6,115 | 8,973 | 2,907 |
Net impairment loss recognized in earnings | (156) | (1,964) | (565) |
Fair value gain (loss) on trading securities | 0 | 743 | (248) |
Total unrealized loss on securities | (156) | (1,221) | (813) |
Prepayment penalty fee income | 3,862 | 4,574 | 2,914 |
Gain on sale – other | 5,734 | 4,487 | 15,540 |
Mortgage banking income | 13,755 | 14,284 | 11,076 |
Banking and service fees | 47,764 | 42,088 | 36,196 |
Total non-interest income | 70,941 | 68,132 | 66,340 |
NON-INTEREST EXPENSE: | |||
Salaries and related costs | 100,975 | 81,821 | 66,667 |
Data processing and internet | 17,400 | 13,323 | 10,348 |
Advertising and promotional | 15,500 | 9,367 | 6,867 |
Depreciation and amortization | 8,574 | 6,094 | 4,795 |
Occupancy and equipment | 6,063 | 5,612 | 4,326 |
Professional services | 5,280 | 4,980 | 4,700 |
FDIC and regulatory fees | 4,860 | 4,330 | 4,632 |
Real estate owned and repossessed vehicles | 260 | 498 | (46) |
General and administrative expense | 15,024 | 11,580 | 10,467 |
Total non-interest expense | 173,936 | 137,605 | 112,756 |
INCOME BEFORE INCOME TAXES | 239,699 | 232,693 | 204,895 |
INCOME TAXES | 87,288 | 97,953 | 85,604 |
NET INCOME | 152,411 | 134,740 | 119,291 |
NET INCOME ATTRIBUTABLE TO COMMON STOCK | 152,102 | 134,431 | 118,982 |
COMPREHENSIVE INCOME | $ 151,311 | $ 142,531 | $ 121,386 |
Basic earnings per common share (as revised for 2017 and 2016) (in dollars per share) | $ 2.41 | $ 2.11 | $ 1.87 |
Diluted earnings per common share (as revised for 2017 and 2016) (in dollars per share) | $ 2.37 | $ 2.10 | $ 1.87 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME | $ 152,411 | $ 134,740 | $ 119,291 |
Net unrealized gain (loss) from available-for-sale securities, net of tax expense (benefit) of $(2,449), $3,363, and $(68) for the years ended June 30, 2018, 2017 and 2016, respectively. | (5,493) | 5,218 | (94) |
Other-than-temporary impairment on securities recognized in other comprehensive income, net of tax expense (benefit) of $1,918, $3,195 and $2,177 for the years ended June 30, 2018, 2017 and 2016, respectively. | 4,197 | 4,957 | 3,018 |
Reclassification of net (gain) loss from available-for-sale securities included in income, net of tax expense (benefit) of $(104), $1,536 and $598 for the years ended June 30, 2018, 2017 and 2016, respectively. | 196 | (2,384) | (829) |
Other comprehensive income (loss) | (1,100) | 7,791 | 2,095 |
Comprehensive income | $ 151,311 | $ 142,531 | $ 121,386 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (PARENTHETICAL) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net tax expense (benefit) for net unrealized gain (loss) from available-for-sale securities | $ (2,449) | $ 3,363 | $ (68) |
Net tax expense (benefit) for other-than-temporary impairment on securities recognized in other comprehensive income | 1,918 | 3,195 | 2,177 |
Net tax expense (benefit) for reclassification of net (gain) loss from available-for-sale securities included in income | $ (104) | $ 1,536 | $ 598 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Convertible Preferred Stock | Common Stock | Treasury | TreasuryRestricted stock | Additional Paid-in Capital | [2] | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net of Income Tax | |||
Convertible Preferred Stock, Beginning Balance (in shares) at Jun. 30, 2015 | 515 | |||||||||||
Common Stock, Beginning Balance, Issued (in shares) at Jun. 30, 2015 | 63,145,364 | [1] | 63,145,364 | [2] | ||||||||
Common stock, Beginning Balance (in shares) at Jun. 30, 2015 | 62,075,004 | [1],[2] | (1,070,360) | |||||||||
Stockholders' equity, Beginning Balance at Jun. 30, 2015 | $ 533,526 | $ 5,063 | $ 631 | [2] | $ (24,644) | $ 296,042 | $ 265,833 | $ (9,399) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 119,291 | 119,291 | ||||||||||
Other comprehensive income (loss) | 2,095 | 2,095 | ||||||||||
Cash dividends on preferred stock | $ (309) | (309) | ||||||||||
Issuance of common stock (in shares) | [2] | 723,808 | [1] | 723,808 | ||||||||
Issuance of common stock | $ 21,120 | $ 7 | [2] | 21,113 | ||||||||
Repurchase of treasury stock (in shares) | [1] | 0 | ||||||||||
Stock-based compensation expense (in shares) | [2] | 25,394 | 25,394 | |||||||||
Stock-based compensation expense | $ 11,326 | $ 1 | [2] | 11,325 | ||||||||
Restricted stock unit vesting and tax benefits, issued (in shares) | 561,922 | [1] | 536,528 | [2] | ||||||||
Restricted stock unit vesting and tax benefits, treasury (in shares) | (223,742) | |||||||||||
Restricted stock unit vesting and tax benefits, outstanding (in shares) | [2] | 312,786 | ||||||||||
Restricted stock unit vesting and tax benefits | $ (4,616) | $ 5 | [2] | $ (6,141) | 1,520 | |||||||
Stock option exercises and tax benefits (in shares) | 82,400 | [1],[3] | 82,400 | [2] | ||||||||
Stock option exercises and tax benefits outstanding (in shares) | [1],[2] | 82,400 | ||||||||||
Stock option exercises and tax benefits | $ 1,157 | $ 1 | [2] | 1,156 | ||||||||
Convertible Preferred Stock, Ending Balance (in shares) at Jun. 30, 2016 | 515 | |||||||||||
Common Stock, Ending Balance, Issued (in shares) at Jun. 30, 2016 | 64,513,494 | [1] | 64,513,494 | [2] | ||||||||
Common stock, Ending Balance (in shares) at Jun. 30, 2016 | 63,219,392 | [1],[2] | (1,294,102) | |||||||||
Stockholders' equity, Ending Balance at Jun. 30, 2016 | $ 683,590 | $ 5,063 | $ 645 | [2] | $ (30,785) | 331,156 | 384,815 | (7,304) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 134,740 | 134,740 | ||||||||||
Other comprehensive income (loss) | 7,791 | 7,791 | ||||||||||
Cash dividends on preferred stock | $ (309) | (309) | ||||||||||
Issuance of common stock (in shares) | 0 | |||||||||||
Repurchase of treasury stock (in shares) | 0 | |||||||||||
Stock-based compensation expense (in shares) | [2] | 31,674 | 31,674 | |||||||||
Stock-based compensation expense | $ 14,535 | 14,535 | ||||||||||
Restricted stock unit vesting and tax benefits, issued (in shares) | 602,438 | 570,764 | [2] | |||||||||
Restricted stock unit vesting and tax benefits, treasury (in shares) | (285,586) | |||||||||||
Restricted stock unit vesting and tax benefits, outstanding (in shares) | [2] | 285,178 | ||||||||||
Restricted stock unit vesting and tax benefits | $ (6,100) | $ 6 | [2] | $ (6,532) | 426 | |||||||
Stock option exercises and tax benefits (in shares) | [3] | 0 | ||||||||||
Stock option exercises and tax benefits outstanding (in shares) | 0 | |||||||||||
Convertible Preferred Stock, Ending Balance (in shares) at Jun. 30, 2017 | 515 | |||||||||||
Common Stock, Ending Balance, Issued (in shares) at Jun. 30, 2017 | 65,115,932 | 65,115,932 | [2] | |||||||||
Common stock, Ending Balance (in shares) at Jun. 30, 2017 | 63,536,244 | [2] | (1,579,688) | |||||||||
Stockholders' equity, Ending Balance at Jun. 30, 2017 | $ 834,247 | $ 5,063 | $ 651 | [2] | $ (37,317) | 346,117 | 519,246 | 487 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | |||||||||||
Net income | $ 152,411 | 152,411 | ||||||||||
Other comprehensive income (loss) | (1,100) | (1,100) | ||||||||||
Cash dividends on preferred stock | $ (309) | (309) | ||||||||||
Issuance of common stock (in shares) | 0 | |||||||||||
Repurchase of treasury stock (in shares) | (1,233,491) | (1,233,491) | [2] | (1,233,491) | ||||||||
Repurchase of treasury stock | $ (35,183) | $ (35,183) | ||||||||||
Stock-based compensation expense (in shares) | [2] | 50,373 | 50,373 | |||||||||
Stock-based compensation expense | $ 20,399 | $ 1 | [2] | 20,398 | ||||||||
Restricted stock unit vesting and tax benefits, issued (in shares) | 680,128 | 629,755 | [2] | |||||||||
Restricted stock unit vesting and tax benefits, treasury (in shares) | (294,817) | |||||||||||
Restricted stock unit vesting and tax benefits, outstanding (in shares) | [2] | 334,938 | ||||||||||
Restricted stock unit vesting and tax benefits | $ (9,952) | $ 6 | [2] | $ (9,958) | ||||||||
Stock option exercises and tax benefits (in shares) | [3] | 0 | ||||||||||
Stock option exercises and tax benefits outstanding (in shares) | 0 | |||||||||||
Convertible Preferred Stock, Ending Balance (in shares) at Jun. 30, 2018 | 515 | |||||||||||
Common Stock, Ending Balance, Issued (in shares) at Jun. 30, 2018 | 65,796,060 | 65,796,060 | [2] | |||||||||
Common stock, Ending Balance (in shares) at Jun. 30, 2018 | 62,688,064 | [2] | (3,107,996) | |||||||||
Stockholders' equity, Ending Balance at Jun. 30, 2018 | $ 960,513 | $ 5,063 | $ 658 | [2] | $ (82,458) | $ 366,515 | $ 671,348 | $ (613) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | |||||||||||
[1] | Common stock amounts have been retroactively restated for the period July 1, 2015 through November 16, 2015 to reflect the four -for-one forward split of the Company’s common stock effected in the form of a stock dividend that was distributed on November 17, 2015. The par value of common stock remains unchanged at $0.01 | |||||||||||
[2] | Common stock amounts have been retroactively restated for the fiscal year ended June 30, 2015 presented to reflect the four -for-one forward split of the Company’s common stock effected in the form of a stock dividend that was distributed on November 17, 2015. The par value of common stock remains unchanged at $0.01 | |||||||||||
[3] | Amounts have been retroactively restated for the fiscal year ended June 30, 2015 presented to reflect the four |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 152,411 | $ 134,740 | $ 119,291 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Accretion of discounts on securities | (624) | (2,766) | (5,276) |
Net accretion of discounts on loans and leases | (29,381) | (4,859) | 959 |
Amortization of borrowing costs | 208 | 208 | 72 |
Stock-based compensation expense | 20,399 | 14,535 | 11,326 |
Valuation of financial instruments carried at fair value | 0 | (743) | 248 |
Net gain on sale of investment securities | 18 | (3,920) | (1,427) |
Impairment charge on securities | 156 | 1,964 | 565 |
Provision for loan and lease losses | 25,800 | 11,061 | 9,700 |
Deferred income taxes | 17,034 | (2,220) | (6,647) |
Origination of loans held for sale | (1,564,165) | (1,375,443) | (1,363,025) |
Unrealized (gain) loss on loans held for sale | (253) | 222 | (97) |
Gain on sales of loans held for sale | (19,489) | (18,771) | (26,616) |
Proceeds from sale of loans held for sale (revised for 2017 and 2016) | 1,576,353 | 1,433,068 | 1,427,986 |
Change in fair value of mortgage servicing rights | 83 | (31) | 889 |
(Gain) loss on sale of other real estate and foreclosed assets | (258) | (42) | (145) |
Depreciation and amortization | 8,574 | 6,094 | 4,795 |
Net changes in assets and liabilities which provide (use) cash: | |||
Accrued interest receivable | (6,082) | 4,511 | (6,070) |
Other assets (revised for 2017 and 2016) | (40,988) | 807 | (9,539) |
Accrued interest payable | 469 | (383) | 401 |
Accounts payable and accrued liabilities | 27,650 | 466 | 9,513 |
Net cash provided by operating activities (revised for 2017 and 2016) | 167,915 | 198,498 | 166,903 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of investment securities | (100,503) | (249,909) | (161,395) |
Proceeds from sales of available-for-sale and trading securities | 52,714 | 161,048 | 14,969 |
Proceeds from repayment of securities | 139,338 | 307,456 | 80,009 |
Purchase of stock of the Federal Home Loan Bank | (33,966) | (66,294) | (136,952) |
Proceeds from redemption of stock of Federal Home Loan Bank | 79,923 | 60,210 | 146,099 |
Origination of loans held for investment | (5,895,902) | (4,068,990) | (3,582,766) |
Proceeds from sale of loans held for investment (revised for 2017 and 2016) | 20,719 | 31,918 | 49,882 |
Origination of mortgage warehouse loans, net | (26,899) | (113,711) | (51,145) |
Proceeds from sales of other real estate owned and repossessed assets | 1,832 | 367 | 1,478 |
Cash paid for acquisition | (70,002) | 0 | 0 |
Purchases of loans and leases, net of discounts and premiums | 0 | (269,886) | (140,493) |
Principal repayments on loans and leases | 4,818,558 | 3,427,818 | 2,253,017 |
Purchases of furniture, equipment and software | (11,817) | (8,758) | (10,239) |
Net cash used in investing activities | (1,026,005) | (788,731) | (1,537,536) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net increase in deposits | 1,085,843 | 855,456 | 1,592,134 |
Proceeds from the Federal Home Loan Bank term advances | 0 | 0 | 70,000 |
Repayment of the Federal Home Loan Bank term advances | (30,000) | (95,000) | (35,000) |
Net (repayment) proceeds of Federal Home Loan Bank other advances | (153,000) | 8,000 | (61,000) |
Repayments of other borrowings and securities sold under agreements to repurchase | (20,000) | (15,000) | 0 |
Tax payments related to settlement of restricted stock units | (9,952) | (6,532) | (6,141) |
Repurchase of treasury stock | (35,183) | 0 | 0 |
Proceeds from exercise of common stock options | 0 | 0 | 151 |
Proceeds from issuance of common stock | 0 | 0 | 21,120 |
Tax benefit from exercise of common stock options and vesting of restricted stock grants | 0 | 432 | 2,531 |
Cash dividends paid on preferred stock | (309) | (309) | (309) |
Proceeds from issuance of subordinated notes | 0 | 0 | 51,000 |
Net cash provided by (used in) financing activities | 837,399 | 747,047 | 1,634,486 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (20,691) | 156,814 | 263,853 |
CASH AND CASH EQUIVALENTS—Beginning of year | 643,541 | 486,727 | 222,874 |
CASH AND CASH EQUIVALENTS—End of year | 622,850 | 643,541 | 486,727 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Interest paid on deposits and borrowed funds | 106,112 | 74,442 | 56,296 |
Income taxes paid | 79,628 | 102,482 | 89,184 |
Transfers to other real estate and repossessed vehicles | 10,113 | 1,982 | 571 |
Transfers from loans and leases held for investment to loans held for sale | 31,207 | 2,935 | 79,706 |
Transfers from loans held for sale to loans and leases held for investment | 3,969 | 2,790 | 25,141 |
Loans held for investment sold, cash not received (revised for 2016) | 17,742 | 0 | 32,124 |
Securities transferred from held-to-maturity to available-for-sale portfolio | $ 0 | $ 194,153 | $ 0 |
ORGANIZATIONS AND SUMMARY OF SI
ORGANIZATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
ORGANIZATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ORGANIZATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation . The consolidated financial statements include the accounts of BofI Holding, Inc. and its wholly owned subsidiary, BofI Federal Bank (collectively, the “Company”). All significant intercompany balances have been eliminated in consolidation. Reclassifications were made to previously reported amounts in the consolidated statements of cash flows for Federal Home Loan Bank (“FHLB”) advances within net cash provided by financing activities to make them consistent with the current period presentation. The purpose of the reclassifications were to disclose the Company’s FHLB term advances separately from the FHLB other advances. BofI Holding, Inc. was incorporated in the State of Delaware on July 6, 1999 for the purpose of organizing and launching an Internet-based savings bank. BofI Federal Bank (the “Bank”), which opened for business over the Internet on July 4, 2000, is subject to regulation and examination by the Office of the Comptroller of the Currency (“OCC”), its primary regulator. The Federal Deposit Insurance Corporation (“FDIC”) insures the Bank’s deposit accounts up to the maximum allowable amount. On November 17, 2015, the Company completed a four -for-one forward stock split in the form of a stock dividend. References made to outstanding shares or per share amounts in the condensed consolidated financial statements and accompanying notes have been retroactively restated to reflect this four -for-one forward stock split. In November 2015, the number of authorized shares of common stock available for issuance was increased from 50,000,000 to 150,000,000 as approved by the Company’s Board of Directors and stockholders. Use of Estimates . In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan and lease losses, the assessment for other-than-temporary impairment on investment securities and the fair value of certain financial instruments. Business . The Bank provides consumer and business banking products through the online distribution channels and affinity partners. The Bank’s deposit products are demand accounts, savings accounts and time deposits marketed to consumers and businesses located in all fifty states. The Bank’s primary lending products are residential single family and multifamily mortgage loans. The Bank’s business is primarily concentrated in the State of California and is subject to the general economic conditions of that state. Cash and Cash Equivalents . The Bank’s cash, due from banks, money market mutual funds and federal funds sold, all of which have original maturities within 90 days , consist of cash and cash equivalents. Net cash flows are reported for customer deposit transactions. Restrictions on Cash . Federal Reserve Board regulations require depository institutions to maintain certain minimum reserve balances. Included in cash were balances required by the Federal Reserve Bank of San Francisco of $78,433 and $57,529 at June 30, 2018 and 2017 , respectively. Interest Rate Risk . The Bank’s assets and liabilities are generally monetary in nature and interest rate changes have an effect on the Bank’s performance. The Bank decreases the effect of interest rate changes on its performance by striving to match maturities and interest sensitivity between loans and deposits. A significant change in interest rates could have a material effect on the Bank’s results of operations. Concentration of Credit Risk . The Bank’s loan portfolio was collateralized by various forms of real estate with approximately 71.1% of the mortgage portfolio located in California at June 30, 2018 . The Bank’s loan portfolio contains concentrations of credit in multifamily, single family, commercial, and home equity loans. The Bank believes its underwriting standards combined with its low LTV requirements substantially mitigate the risk of loss which may result from these concentrations. Brand Partnership Products . Through its strategic partnerships division, the Bank has agreements with third-party service providers (“Program Managers”) possessing demonstrated expertise in managing programs involving marketing and processing financial products such as credit, debit, and prepaid cards, and small business and consumer loans. These relationships include the Company’s relationships with H&R Block, Inc., Netspend and BFS Capital, among others. As delineated by the related contracts, a Program Manager provides program management services in its areas of expertise subject to the Bank’s continuing control and active supervision of the subject program. Underwriting standards and credit decisioning remain with the Bank in all cases. Each of these relationships is designed to allow the Bank to leverage the Program Manager’s knowledge and experience to distribute program-related financial products to a broad and increasing base of customers. With respect to credit products, the Bank generally originates the resulting receivable for sale, but may, in its discretion, retain such receivable. The Bank performs extensive due diligence with respect to each Program Manager and program, and maintains a regimen of comprehensive risk management and strict compliance oversight with respect to all programs. Through our agreement with H&R Block, Inc. (“H&R Block”) and its wholly-owned subsidiaries the Bank provides H&R Block-branded financial products and services. The products and services that represent the primary focus and the majority of transactional volume that the Bank processes are described in detail below. The first product is Emerald Prepaid Mastercard ® services. The Bank entered into agreements to offer this product in August 2015. Under the agreements, the Bank is responsible for the primary oversight and control of the prepaid card programs of a wholly-owned subsidiary of H&R Block. The Bank holds the prepaid card customer deposits for those cards issued under the prepaid programs in non-interest bearing accounts and earns a fixed fee paid by H&R Block’s subsidiary for each automated clearing house (“ACH”) transaction processed through the prepaid card customer accounts. A portion of H&R Block’s customers use the Emerald Card as an option to receive federal and state income tax refunds. The prepaid customer deposits are included in non-interest bearing deposit liabilities on the balance sheet of the Company and the ACH fee income is included in the income statement under the line banking and service fees. The second product is Refund Transfer. The Bank entered into agreements to offer this product in August 2015. The Bank is responsible for the primary oversight and control of the refund transfer program of a wholly-owned subsidiary of H&R Block. The Bank opens a temporary bank account for each H&R Block customer who is receiving an income tax refund and elects to defer payment of his or her tax preparation fees. After the Internal Revenue Service and any state income tax authorities transfer the refund into the customer’s account, the net funds are transferred to the customer and the temporary deposit account is closed. The Bank earns a fixed fee paid by H&R Block for each of the H&R Block customers electing a Refund Transfer. The fees are earned primarily in the quarters ending March 31st and are included in the income statement under the line banking and service fees. The third product is Emerald Advance. The Bank entered into agreements to offer this product in August 2015. Under the agreements the Bank is responsible for the underwriting guidelines and credit policies for unsecured consumer lines of credit offered to H&R Block customers. The Bank offers and funds unsecured lines of credit to consumers primarily through the H&R Block tax preparation offices and earns interest income and fee income. The Bank retains 10% of the Emerald Advance and sells the remainder to H&R Block. The lines of credit are included in loans and leases on the balance sheet of the Company and the interest income and fee income are included in the income statement under the line loans and leases interest and dividend income. The fourth product is an interest-free Refund Advance loan. The Bank exclusively originated and funded all of H&R Block’s interest-free Refund Advance loans to tax preparation clients for the 2018 tax season. The Bank performed the credit underwriting, loan origination, and funding associated with the interest-free Refund Advance loans in the current tax season and received fees from H&R Block for operating the program. No fee is charged to the tax preparation client. Repayment of the Refund Advance loan is deducted from the client’s tax refund proceeds; if an insufficient refund to repay the Refund Advance loan is received, there is no recourse to the client, no negative credit reporting occurs in respect of the client and no collection efforts are made against the client. This agreement is an expansion of the services BofI provided to H&R Block in the 2017 tax season when the Bank participated through purchases of the loans with other providers in the Refund Advance loan program. During the 2017 tax season, the Bank purchased the Refund Advance loans from a third-party bank at a discount and recorded the accretion of the loan discount as interest income, reported on the income statement under the interest and dividend income line item. During the 2018 tax season, the Bank recorded the fees received from H&R Block as interest income on loans, reported on the income statement under the interest and dividend income line item. The H&R Block-branded financial services products introduce seasonality into the Company’s quarterly reports on Form 10-Q in the unaudited condensed consolidated income statements through the banking and service fees category of non-interest income and the other general and administrative category of non-interest expense, with the peak income and expense in these categories typically occurring during the Company’s third fiscal quarter ended March 31. Securities . Debt securities are classified as held-to-maturity and carried at amortized cost when management has both the positive intent and ability to hold them to maturity. Debt securities are classified as available-for-sale when they might be sold before maturity. Trading securities refer to certain types of assets that banks hold for resale at a profit or when the Company elects to account for certain securities at fair value. Increases or decreases in the fair value of trading securities are recognized in earnings as they occur. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. During the quarter ended September 30, 2016, the Company elected to reclassify all of its held-to-maturity securities to available-for-sale. See Note 4 – “Securities” for further information. Gains and losses on securities sales are based on a comparison of sales proceeds and the amortized cost of the security sold using the specific identification method. Purchases and sales are recognized on the trade date. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are amortized or accreted using the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. The Company’s portfolios of held-to-maturity and available-for-sale securities are reviewed quarterly for other-than-temporary impairment. In performing this review, management considers (1) the length of time and extent that fair value has been less than amortized cost, (2) the financial condition and near term prospects of the issuer, (3) the impact of changes in market interest rates on the market value of the security and (4) how to record an impairment by assessing whether the Company intends to sell it or is more likely than not that it will be required to sell a security in an unrealized loss position before the Company recovers the security’s amortized cost. If either of these criteria for (4) is met, the entire difference between amortized cost and fair value is recognized in earnings. Alternatively, if the criteria for (4) is not met, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Loans and Leases . Loans and leases that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, deferred purchase premiums and discounts, deferred loan and lease origination fees and costs, and an allowance for loan and lease losses. Interest income is accrued on the unpaid principal balance. Premiums and discounts on loans purchased as well as loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method. The Company provides equipment financing to its customers through a variety of lease arrangements. The most common arrangement is a direct financing (capital) lease. For direct financing leases, lease receivables are recorded on the balance sheet but the leased property is not, although the Company generally retains legal title to the leased property until the end of each lease. Direct financing leases are stated at the net amount of minimum lease payments receivable, plus any unguaranteed residual value, less the amount of unearned income and net acquisition discount at the reporting date. Direct lease origination costs are amortized over the weighted average life of the lease portfolio. Leases acquired in an acquisition are initially measured and recorded at their fair value on the acquisition date. Purchase discounts or premiums on acquired leases are recognized as an adjustment to interest income over the contractual life of the leases using the effective interest method or taken into income when the related leases are paid off. Direct financing leases are subject to our allowance for loans and leases. Recognition of interest income on all portfolio segments is generally discontinued at the time the loan or lease is 90 days delinquent unless the loan and lease is well secured and in process of collection. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for loans and leases placed on nonaccrual, is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost recovery method, until qualifying for return to accrual status. Loans and leases are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loans Held for Sale . U.S. government agency (“agency”) loans originated and intended for sale in the secondary market are carried at fair value. Net unrealized gains and losses are recognized through mortgage banking income in the income statement. The Bank sells its mortgage loans with either servicing released or servicing retained depending upon market pricing. Gains and losses on loan sales are recorded as mortgage banking income or other gains on sale, based on the difference between sales proceeds and carrying value. Non-agency loans held for sale are carried at the lower of cost or fair value. Loans that were originated with the intent and ability to hold for the foreseeable future (loans held in portfolio) but which have been subsequently designated as being held for sale for risk management or liquidity needs are carried at the lower of cost or fair value calculated using pools of loans with similar characteristics. There may be times when loans have been classified as held for sale and cannot be sold. Loans transferred to a long-term investment classification from held-for-sale are transferred at the lower of cost or market value on the transfer date. Any difference between the carrying amount of the loan and its outstanding principal balance is recognized as an adjustment to yield by the interest method. A loan cannot be classified as a long-term investment unless the Bank has both the ability and the intent to hold the loan for the foreseeable future or until maturity. Allowance for Loan and Lease Losses . The allowance for loan and lease losses is maintained at a level estimated to provide for probable incurred losses in the loan and lease portfolio. Management determines the adequacy of the allowance based on reviews of individual loans and leases and pools of loans, recent loss experience, current economic conditions, the risk characteristics of the various categories of loans and other pertinent factors. This evaluation is inherently subjective and requires estimates that are susceptible to significant revision as more information becomes available. The allowance is increased by the provision for loan and lease losses, which is charged against current period operating results, and recoveries of loans and leases previously charged-off. The allowance is decreased by the amount of charge-offs of loans and leases deemed uncollectible. Allocations of the allowance may be made for specific loans and leases but the entire allowance is available for any loan or lease that, in management’s judgment, should be charged off. The allowance for loan and lease losses includes general reserves and may include specific reserves. Specific reserves may be provided for impaired loans and leases considered Troubled Debt Restructurings (“TDRs”). All other impaired loans and leases are written down through charge-offs to the fair value of collateral, less estimated selling cost, and no specific or general reserve is provided. A loan or lease is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan or lease agreement. Loans and leases for which terms have been modified resulting in a concession and for which the borrower is experiencing financial difficulties are considered TDRs and classified as impaired. A loan or lease is measured for impairment generally two different ways. If the loan or lease is primarily dependent upon the borrower to make payments, then impairment is calculated by comparing the present value of the expected future payments discounted at the effective loan rate to the carrying value of the loan. If the loan or lease is collateral dependent, the net proceeds from the sale of the collateral is compared to the carrying value of the loan or lease. If the calculated amount is less than the carrying value of the loan or lease, the loan or lease has impairment. A general reserve is included in the allowance for loan and lease losses and is determined by adding the results of a quantitative and a qualitative analysis to all other loans and leases not measured for impairment at the reporting date. The quantitative analysis determines the Bank’s actual annual historic charge-off rates for the previous three fiscal years and applies the average historic rates to the outstanding loan and lease balances in each pool, the product of which is the general reserve amount. The qualitative analysis considers one or more of the following factors: changes in lending policies and procedures, changes in economic conditions, changes in the content of the portfolio, changes in lending management, changes in the volume of delinquency rates, changes to the scope of the loan and lease review system, changes in the underlying collateral of the loans and leases, changes in credit concentrations and any changes in the requirements to the credit loss calculations. A loss rate is estimated and applied to those loans and leases affected by the qualitative factors. The following portfolio segments have been identified: single family secured mortgage, home equity secured mortgage, single family warehouse and other, multi-family secured mortgage, commercial real estate and land secured mortgage, auto secured and recreational vehicles, factoring, commercial and industrial (“C&I”) and other. General loan and lease loss reserves are calculated by grouping each mortgage loan or lease by collateral type and by grouping the LTV ratios of each loan within the collateral type. An estimated allowance rate for each LTV group within each type of loan and lease is multiplied by the total principal amount in the group to calculate the required general reserve attributable to that group. Management uses an allowance rate that provides a larger loss allowance for loans with greater LTV ratios. General loan loss reserves for C&I loans are determined through a loan level grading system to base its projected loss rates. A matrix was created with a base loss rate with additional potential industry and volume risk adjustments, to calculate a loss rating for each deal. Given the lack of historical loss experience for this segment at the Company, an allowance loss range is based upon historical peer loss rates. General loan loss reserves for consumer loans are calculated by grouping each loan by credit score (e.g., FICO) at origination and applying an estimated allowance rate to each group. In addition to credit score grading, general loan loss reserves are increased for all consumer loans determined to be 90 days or more past due. Specific reserves or direct charge-offs are calculated when an internal asset review of a loan or lease identifies a significant adverse change in the financial position of the borrower or the value of the collateral. The specific reserve or direct charge-off is based on discounted cash flows, observable market prices or the estimated value of underlying collateral. Specific loan or lease charge-offs on impaired loans or leases are recorded as a write-off and a decrease to the allowance in the period the impairment is identified. A loan or lease is classified as a TDR when management determines that an existing borrower is in financial distress and the borrower’s loan or lease terms are modified to provide the borrower a financial concession (e.g., lower payment) that would not otherwise be provided by another lender based upon borrower’s current financial condition. TDRs are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan or lease, the loan or lease is reported, net, at the fair value of the collateral less cost to sell. For TDRs that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan and lease losses. If the present value of estimated cash flows under the modified terms of a TDR discounted at the original loan or lease effective rate is less than the book value of the loan or lease before the TDR, the excess is specifically allocated to the loan or lease in the allowance for loan and lease losses. Mortgage Servicing Rights . Mortgage servicing rights are recorded as separate assets on our consolidated balance sheets when the Company retains the right to service loans that we have sold. Mortgage Banking Derivatives . Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. The Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these derivatives are included in mortgage banking income. Furniture, Equipment and Software . Fixed asset purchases in excess of five hundred dollars are capitalized and recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which are three to seven years. Leasehold improvements are amortized over the lesser of the assets’ useful lives or the lease term. Income Taxes . Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. The Company records a valuation allowance when management believes it is more likely than not that deferred tax assets will not be realized. An income tax position will be recognized as a benefit only if it is more likely than not that it will be sustained upon IRS examination, based upon its technical merits. Once that status is met, the amount recorded will be the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. Goodwill and Other Intangible Assets . Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Other intangible assets represent purchased assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. Intangible assets that have finite lives, such as core deposit intangibles, are amortized over their estimated useful lives and subject to periodic impairment testing. Intangible assets (other than goodwill) are amortized to expense using accelerated or straight-line methods over their respective estimated useful lives. Goodwill is subject to impairment testing at the reporting unit level, which must be conducted at least annually. The Company performs impairment testing during the fourth quarter of each year or when events or changes in circumstances indicate the assets might be impaired. The Company performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing updated qualitative factors, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, it does not have to perform the two-step goodwill impairment test. Determining the fair value of a reporting unit under the first step of the goodwill impairment test and determining the fair value of individual assets and liabilities of a reporting unit under the second step of the goodwill impairment test are judgmental and often involve the use of significant estimates and assumptions. Similarly, estimates and assumptions are used in determining the fair value of other intangible assets. Estimates of fair value are primarily determined using discounted cash flows, market comparisons and recent transactions. These approaches use significant estimates and assumptions including projected future cash flows, discount rates reflecting the market rate of return, projected growth rates and determination and evaluation of appropriate market comparables. Future events could cause the Company to conclude that goodwill or other intangibles have become impaired, which would result in recording an impairment loss. Any resulting impairment loss could have a material adverse impact on the Company’s financial condition and results of operations. Earnings per Common Share . Earnings per common share (“EPS”) are presented under two formats: basic EPS and diluted EPS. Basic EPS is computed by dividing the net income attributable to common stock (net income after deducting dividends on preferred stock) by the sum of the weighted-average number of common shares outstanding during the year and the unvested average of restricted stock unit shares and participating restricted stock units (“RSU”. Diluted EPS is computed by dividing the sum of net income attributable to common stock and dividends on diluted preferred stock by the sum of the weighted-average number of common shares outstanding during the year and the impact of dilutive potential common shares, such as non-participating RSU’s, stock options and convertible preferred stock. The Company accounts for unvested stock-based compensation awards containing non-forfeitable rights to dividends or dividend equivalents (collectively, “dividends”) as participating securities and includes the awards in the EPS calculation using the two-class method. The Company has granted restricted stock units under the 2004 Plan to certain directors and employees, which entitle the recipients to receive non-forfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities. Under the two class method, all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities, based on their respective rights to receive dividends. Under the 2014 Plan, restricted stock units have no shareholder rights, meaning they are not entitled to dividends and are considered nonparticipating. These nonparticipating restricted stock units are not included in the basic earnings per common share calculation and are included in the diluted earnings per common share calculation using the treasury stock method. Stock-Based Compensation . Compensation cost is recognized for stock options and restricted stock unit awards issued to employees, based on the fair value of these awards at the date of grant. A Black–Scholes model is utilized to estimate fair value of the stock options, while market price of the Company’s common stock at the date of grant is used for restricted stock unit awards, except for the Chief Executive Officer’s restricted stock unit awards under an employment agreement effective July 1, 2017. For the Chief Executive Officer’s restricted stock unit awards under an employment agreement effective July 1, 2017, a Monte Carlo simulation is utilized to estimate the value of path-dependent options in order to determine the fair value of the restricted stock unit award. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with only a service condition that have a graded vesting schedule, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. For awards that contain a market condition and have a graded vesting schedule compensation cost is recognized using an accelerated attribution method over the requisite service period for the awards. Federal Home Loan Bank (“FHLB”) stock . The Bank is a member of the FHLB system. Members are required to own a certain amount of FHLB stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Cash Surrender Value of Life Insurance . The Bank has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other amounts due that are probable a |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS The Company completed one acquisition during the fiscal year ended June 30, 2018 . The pro forma results of operations and the results of operations for acquisition since the acquisition date have not been separately disclosed because the effects were not material to the consolidated financial statements. The purchase transaction is detailed below. Bankruptcy trustee and fiduciary services business of Epiq Systems, Inc . On April 4, 2018 , the Company completed the acquisition of the bankruptcy trustee and fiduciary services business of Epiq Systems, Inc. (“Epiq”). The assets acquired by the Company include comprehensive software solutions, trustee customer relationships, trade name, accounts receivable and fixed assets. The business provides specialized software and consulting services to Chapter 7 bankruptcy and non-Chapter 7 trustees and fiduciaries in all fifty states. This business is expected to generate fee income from bank partners and bankruptcy cases, as well as opportunities to source low cost deposits. No deposits were acquired as part of the transaction. Under the terms of the purchase agreement, the aggregate purchase price included the payment of $70.0 million in cash. The Company acquired assets with approximate fair values of $32.7 million of intangible assets, including customer relationships, developed technologies, a covenant not to compete and the trade name, and $1.6 million of accounts receivable and fixed assets, resulting in $35.7 million of goodwill. Transaction-related expenses were de minimis. The following table sets forth the approximate fair value of assets acquired from Epiq on the consolidated balance sheets as of April 4, 2018 : (Dollars in thousands) April 4, 2018 Fair value of consideration paid Cash $ 70,002 Total consideration paid 70,002 Fair value of assets acquired Intangible assets 32,720 Other assets 1,563 Total assets 34,283 Fair value of net assets acquired 34,283 Goodwill incident to acquisition $ 35,719 The Company has included the financial results of the acquired bankruptcy trustee and fiduciary services business in its consolidated financial statements subsequent to the acquisition date. The Epiq transaction has been accounted for under the acquisition method of accounting. The assets, both tangible and intangible, were recorded at their estimated fair values as of the transaction date. The Company made significant estimates and exercised judgment in estimating fair values and accounting for such acquired assets and liabilities. The Company’s accounting for the acquisition has not been finalized as the Company continues to evaluate the working capital adjustment, which is expected to have an immaterial effect, if any, on the value of goodwill recognized. The Company recognized goodwill of $35.7 million as of April 4, 2018 |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC Topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices in active markets for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets include securities with quoted prices that are traded less frequently than exchange-traded instruments and whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models such as discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. When available, the Company generally uses quoted market prices to determine fair value. In some cases where a market price is available, the Company will make use of acceptable practical expedients (such as matrix pricing) to calculate fair value, in which case the items are classified in Level 2. The Company considers relevant and observable market prices in its valuations where possible. The frequency of transactions, the size of the bid-ask spread and the nature of the participants are some of the factors the Company uses to help determine whether a market is active and orderly or inactive and not orderly. Price quotes based upon transactions that are not orderly are not considered to be determinative of fair value and are given little, if any, weight in measuring fair value. If quoted market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sourced market parameters, such as interest rates, credit spreads, housing value forecasts, etc. Items valued using such internally generated valuation techniques are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable. The following section describes the valuation methodologies used by the Company to measure various financial instruments at fair value, including an indication of the level in the fair-value hierarchy in which each instrument is generally classified: Securities—trading, available-for-sale, and held-to-maturity . Trading securities are recorded at fair value. Available-for-sale securities are recorded at fair value and consist of residential mortgage-backed securities (“RMBS”) issued by U.S. agencies, RMBS issued by non-agencies, municipal securities as well as other Non-RMBS securities. Fair value for U.S. agency securities and municipal securities are generally based on quoted market prices of similar securities used to form a dealer quote or a pricing matrix. There continues to be significant illiquidity in the market for RMBS issued by non-agencies, impacting the availability and reliability of transparent pricing. As orderly quoted market prices are not available, the Level 3 fair values for these securities are determined by the Company utilizing industry-standard tools to calculate the net present value of the expected cash flows available to the securities from the underlying mortgage assets. The Company computes Level 3 fair values for each non-agency RMBS in the same manner (as described below) whether available-for-sale or held-to-maturity. To determine the performance of the underlying mortgage loan pools, the Company estimates prepayments, defaults, and loss severities based on a number of macroeconomic factors, including housing price changes, unemployment rates, interest rates and borrower attributes such as credit score and loan documentation at the time of origination. The Company inputs for each security a projection of monthly default rates, loss severity rates and voluntary prepayment rates for the underlying mortgages for the remaining life of the security to determine the expected cash flows. The projections of default rates are derived by the Company from the historic default rate observed in the pool of loans collateralizing the security, increased by and decreased by the forecasted increase or decrease in the national unemployment rate. The projections of loss severity rates are derived by the Company from the historic loss severity rate observed in the pool of loans, increased by or decreased by the forecasted increase or decrease in the national home price appreciation (“HPA”) index. The largest factors influencing the Company’s modeling of the monthly default rate are unemployment and HPA, as a strong correlation exists. The most updated unemployment rate reported in May 2018 was 3.8% . Consensus estimates for unemployment are that the rate will continue to decline. Going forward, the Company is projecting lower monthly default rates. The Company projects that severities will continue to improve. To determine the discount rates used to compute the present value of the expected cash flows for these non-agency RMBS securities, the Company separates the securities by the borrower characteristics in the underlying pool. Specifically, “prime” securities generally have borrowers with higher FICO scores and better documentation of income. “Alt-A” securities generally have borrowers with a lower FICO and less documentation of income. “Pay-option ARMs” are Alt-A securities with borrowers that tend to pay the least amount of principal (or increase their loan balance through negative amortization). The Company calculates separate discount rates for prime, Alt-A and Pay-option ARM non-agency RMBS securities using market-participant assumptions for risk, capital and return on equity. The range of annual default rates used in the Company’s projections at June 30, 2018 are from 1.5% up to 10.6% with prime securities tending toward the lower end of the range and Alt-A and Pay-option ARMs tending toward the higher end of the range. The range of loss severity rates applied to each default used in the Company’s projections at June 30, 2018 are from 40.0% up to 68.0% based upon individual bond historical performance. The default rates and the severities are projected for every non-agency RMBS security held by the Company and will vary monthly based upon the actual performance of the security and the macroeconomic factors discussed above. The Company applies its discount rates to the projected monthly cash flows, which already reflect the full impact of all forecasted losses using the assumptions described above. When calculating present value of the expected cash flows at June 30, 2018 , the Company computed its discount rates as a spread between 265 and 713 basis points over the LIBOR Index using the LIBOR forward curve with prime securities tending toward the lower end of the range and Alt-A and Pay-option ARMs tending toward the higher end of the range. The Bank’s estimate of fair value for non-agency securities using Level 3 pricing is highly subjective and is based on the Bank’s estimate of voluntary prepayments, default rates, severities and discount margins, which are forecasted monthly over the remaining life of each security. Changes in one or more of these assumptions can cause a significant change in the estimated fair value. For further details see the table later in this note that summarizes quantitative information about level 3 fair value measurements. Loans Held for Sale . Loans held for sale at fair value are primarily single-family residential loans. The fair value of residential loans held for sale is determined by pricing for comparable assets or by existing forward sales commitment prices with investors. Impaired Loans and Leases . Impaired loans and leases are loans and leases which are inadequately protected by the current net worth and paying capacity of the borrowers or the collateral pledged. The accrual of interest income has been discontinued for impaired loans and leases. The impaired loans and leases are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. The Company assesses loans and leases individually and identifies impairment when the loan or lease is classified as impaired or has been restructured or management has serious doubts about the future collectibility of principal and interest, even though the loans and leases may currently be performing. The fair value of an impaired loan or lease is determined based on an observable market price or current appraised value of the underlying collateral. The fair value of impaired loans and leases with specific write-offs or allocations of the allowance for loan and lease losses are generally based on recent real estate appraisals or internal valuation analyses consistent with the methodology used in real estate appraisals and include other third-party valuations and analysis of cash flows. These appraisals and analyses are updated at least on an annual basis. The Company primarily obtains real estate appraisals and in the rare cases where an appraisal cannot be obtained, the Company performs an internal valuation analysis. These appraisals and analyses may utilize a single valuation approach or a combination of approaches including comparable sales and income approaches. The sales comparison approach uses at least three recent similar property sales to help determine the fair value of the property being appraised. The income approach is calculated by taking the net operating income generated by the collateral property of the rent collected and dividing it by an assumed capitalization rate. Adjustments are routinely made in the process by the appraisers to account for differences between the comparable sales and income data available. When measuring the fair value of the impaired loan or lease based upon the projected sale of the underlying collateral, the Company subtracts the costs expected to be incurred for the transfer of the underlying collateral, which includes items such as sales commissions, delinquent taxes and insurance premiums. These adjustments to the estimated fair value of nonaccrual loans and leases may result in increases or decreases to the provision for loan and lease losses recorded in current earnings. Such adjustments are typically significant and result in a Level 3 classification for the inputs for determining fair value. Other Real Estate Owned . Non-recurring adjustments to certain commercial and residential real estate properties classified as other real estate owned (“OREO”) are measured at the lower of carrying amount or fair value, less costs to sell. Fair values are generally based on third party appraisals of the property, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. Mortgage Servicing Rights . The Company initially records all mortgage servicing rights (“MSRs”) at fair value and accounts for MSRs at fair value during the life of the MSR, with changes in fair value recorded through mortgage banking income in the income statement. Fair value adjustments encompass market-driven valuation changes as well as modeled amortization involving the run-off of value that occurs due to the passage of time as individual loans are paid by borrowers. Market expectations about loan duration, and correspondingly the expected term of future servicing cash flows, may vary from time to time due to changes in expected prepayment activity, especially when interest rates rise or fall. Market expectations of increased loan prepayment speeds may negatively impact the fair value of the single family MSRs. Fair value is also dependent on the discount rate used in calculating present value, which is imputed from observable market activity and market participants and results in Level 3 classification. Management reviews and adjusts the discount rate on an ongoing basis. An increase in the discount rate would reduce the estimated fair value of the MSRs asset. Mortgage Banking Derivatives . Fair value for mortgage banking derivatives are either securities based upon prices in active markets for identical securities or based on quoted market prices of similar assets used to form a dealer quote or a pricing matrix, resulting in a Level 2 classification, or derivatives requiring unobservable inputs resulting in Level 3 classification. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with or, in some cases, more conservative than other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the relevant reporting date. The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: June 30, 2018 (Dollars in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total ASSETS: Securities—Trading: Collateralized Debt Obligations $ — $ — $ — $ — Securities—Available-for-Sale: Agency RMBS — 12,926 — 12,926 Non-Agency RMBS — — 17,443 17,443 Municipal — 20,212 — 20,212 Asset-backed securities and structured notes — 129,724 — 129,724 Total—Securities—Available-for-Sale $ — $ 162,862 $ 17,443 $ 180,305 Loans Held for Sale $ — $ 35,077 $ — $ 35,077 Mortgage servicing rights $ — $ — $ 10,752 $ 10,752 Other assets—Derivative instruments $ — $ — $ 1,321 $ 1,321 LIABILITIES: Other liabilities—Derivative instruments $ — $ — $ 368 $ 368 June 30, 2017 (Dollars in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total ASSETS: Securities—Trading: Collateralized Debt Obligations $ — $ — $ 8,327 $ 8,327 Securities—Available-for-Sale: Agency RMBS — 27,206 — 27,206 Non-Agency RMBS — — 71,503 71,503 Municipal — 27,163 — 27,163 Asset-backed securities and structured notes — 138,598 — 138,598 Total—Securities—Available-for-Sale $ — $ 192,967 $ 71,503 $ 264,470 Loans Held for Sale $ — $ 18,738 $ — $ 18,738 Mortgage servicing rights $ — $ — $ 7,200 $ 7,200 Other assets—Derivative Instruments $ — $ — $ 1,194 $ 1,194 LIABILITIES: Other liabilities—Derivative instruments $ — $ — $ 168 $ 168 The following table presents 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: Year Ended June 30, 2018 (Dollars in thousands) Securities- Securities- 1 Mortgage Servicing Rights Derivative Instruments, net Total Assets: Opening Balance $ 8,327 $ 71,503 $ 7,200 $ 1,026 $ 88,056 Transfers into Level 3 — — — — — Transfers out of Level 3 — — — — — Total gains or losses for the period: Included in earnings—Sale of securities 282 (300 ) — — (18 ) Included in earnings—Fair value gain(loss) on trading securities — — — — — Included in earnings—Mortgage banking income — — (83 ) (73 ) (156 ) Included in other comprehensive income — (1,629 ) — — (1,629 ) Purchases, issues, sales and settlements: Purchases — — 3,635 — 3,635 Issues — — — — — Sales (8,609 ) (44,270 ) — — (52,879 ) Settlements — (7,705 ) — — (7,705 ) Other-than-temporary impairment — (156 ) — — (156 ) Closing balance $ — $ 17,443 $ 10,752 $ 953 $ 29,148 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ (300 ) $ (83 ) $ (73 ) $ (456 ) 1 See Note 3 – “Securities” for further information on transfers. Year Ended June 30, 2017 (Dollars in thousands) Securities- Securities- Mortgage Servicing Rights Derivative Instruments, net Total Assets: Opening Balance $ 7,584 $ 9,364 $ 3,943 $ 1,318 $ 22,209 Transfers into Level 3 — 124,547 — — 124,547 Transfers out of Level 3 — — — — — Total gains or losses for the period: Included in earnings—Sale of securities — (1,509 ) — — (1,509 ) Included in earnings—Fair value gain(loss) on trading securities 743 — — — 743 Included in earnings—Mortgage banking income — — 697 (292 ) 405 Included in other comprehensive income — 13,933 — — 13,933 Purchases, issues, sales and settlements: Purchases — — 2,560 — 2,560 Issues — — — — — Sales — (59,896 ) — — (59,896 ) Settlements — (12,972 ) — — (12,972 ) Other-than-temporary impairment — (1,964 ) — — (1,964 ) Closing balance $ 8,327 $ 71,503 $ 7,200 $ 1,026 $ 88,056 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ 743 $ (1,509 ) $ 697 $ (292 ) $ (361 ) The table below summarizes the quantitative information about Level 3 fair value measurements as of the dates indicated: June 30, 2018 (Dollars in thousands) Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Securities – Non-agency MBS $ 17,443 Discounted Cash Flow Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate over LIBOR 2.5 to 25.8% (14.1%) 1.5 to 10.6% (5.1%) 40.0 to 68.0% (58.9%) 2.7 to 7.1% (4.2%) Mortgage Servicing Rights $ 10,752 Discounted Cash Flow Projected Constant Prepayment Rate, Life (in years), Discount Rate 6.0 to 26.6% (9.1%) 2.4 to 9.5 (6.9) 9.5 to 13.0% (9.9%) Derivative Instruments $ 953 Sales Comparison Approach Projected Sales Profit of Underlying Loans 0.1 to .4% (.3%) June 30, 2017 (Dollars in thousands) Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Securities – Trading $ 8,327 Discounted Cash Flow Total Projected Defaults, Discount Rate over Treasury 12.2 to 21.8% (16.8%) Securities – Non-agency MBS $ 71,503 Discounted Cash Flow Projected Constant Prepayment Rate, 2.5 to 23.4% (12.5%) Mortgage Servicing Rights $ 7,200 Discounted Cash Flow Projected Constant Prepayment Rate, 6.3 to 26.9% (9.5%) Derivative Instruments $ 1,026 Sales Comparison Approach Projected Sales Profit of Underlying Loans 0.3 to 0.6% (0.5%) The significant unobservable inputs used in the fair value measurement of the Company’s residential mortgage-backed securities are projected prepayment rates, probability of default, and projected loss severity in the event of default. Significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for the projected loss severity and a directionally opposite change in the assumption used for projected prepayment rates. The table below summarizes changes in unrealized gains and losses and interest income recorded in earnings for Level 3 trading assets and liabilities that are still held at the periods indicated: Year Ended June 30, (Dollars in thousands) 2018 2017 2016 Interest income on investments $ — $ 311 $ 245 Fair value adjustment — 743 (248 ) Total $ — $ 1,054 $ (3 ) The table below summarizes the fair value of assets measured for impairment on a non-recurring basis: June 30, 2018 (Dollars in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance Impaired loans and leases: Single family real estate secured: Mortgage $ — $ — $ 28,446 $ 28,446 Home equity — — 16 16 Multifamily real estate secured — — 232 232 Auto and RV secured — — 60 60 Commercial & Industrial — — 2,361 2,361 Other — — 111 111 Total $ — $ — $ 31,226 $ 31,226 Other real estate owned and foreclosed assets: Single family real estate $ — $ — $ 9,385 $ 9,385 Autos and RVs — — 206 206 Total $ — $ — $ 9,591 $ 9,591 June 30, 2017 (Dollars in thousands) Quoted Prices in Significant Other Significant Balance Impaired loans and leases: Single family real estate secured: Mortgage $ — $ — $ 23,377 $ 23,377 Home equity — — 16 16 Multifamily real estate secured — — 4,255 4,255 Auto and RV secured — — 157 157 Commercial & Industrial — — 314 314 Other — — 274 274 Total $ — $ — $ 28,393 $ 28,393 Other real estate owned and foreclosed assets: Single family real estate $ — $ — $ 1,353 $ 1,353 Autos and RVs — — 60 60 Total $ — $ — $ 1,413 $ 1,413 Impaired loans and leases measured for impairment on a non-recurring basis using the fair value of the collateral for collateral-dependent loans have a carrying amount of $31,226 at June 30, 2018 and life to date charge-offs of $3,294 . Impaired loans had a related allowance of $278 at June 30, 2018 . At June 30, 2017 , such impaired loans had a carrying amount of $28,393 and life to date charge-offs of $3,691 , and a related allowance of $1,058 . Other real estate owned and foreclosed assets, which are measured at the lower of carrying value or fair value less costs to sell, had a net carrying amount of $9,591 after charge-offs of $301 at June 30, 2018 . Our other real estate owned and foreclosed assets had a net carrying amount was $1,413 after charge-offs of $332 during the year ended June 30, 2017 . There were no held-to-maturity securities at June 30, 2018 or June 30, 2017 . The Company has elected the fair value option for Agency loans held for sale. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policy on loans held for investment. None of these loans are 90 days or more past due nor on non-accrual as of June 30, 2018 and June 30, 2017 . The aggregate fair value, contractual balance (including accrued interest), and gain was as follows: At June 30, (Dollars in thousands) 2018 2017 2016 Aggregate fair value $ 35,077 $ 18,738 $ 20,871 Contractual balance 34,415 18,311 20,226 Gain $ 662 $ 427 $ 645 The total amount of gains and losses from changes in fair value included in earnings for the period indicated below for loans held for sale were: At June 30, (Dollars in thousands) 2018 2017 2016 Interest income $ 903 $ 602 $ 826 Change in fair value 181 (514 ) (846 ) Total change in fair value $ 1,084 $ 88 $ (20 ) The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at the periods indicated: June 30, 2018 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) 1 Impaired loans and leases: Single family real estate secured: Mortgage $ 28,446 Sales comparison approach Adjustment for differences between the comparable sales -48.8 to 66.7% (2.3%) Home equity $ 16 Sales comparison approach Adjustment for differences between the comparable sales 0.0 to 14.9% (7.4%) Multifamily real estate secured $ 232 Sales comparison approach and income approach Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, capitalization rate -15.5 to 46.4% (15.4%) Auto and RV secured $ 60 Sales comparison approach Adjustment for differences between the comparable sales -2.0 to 71.5% (24.0%) Commercial & Industrial $ 2,361 Discounted cash flow Discount Rate -33.8 to 0.0% (-16.9%) Other $ 111 Discounted cash flow Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate 0.0 to 0.0% (0.0%) 0.0 to 10.0% (5.0%) 100.0 to 100.0% (100.0%) -1.0 to 2.5% (0.8%) Other real estate owned and foreclosed assets: Single family real estate $ 9,385 Sales comparison approach Adjustment for differences between the comparable sales -14.1 to 27.3% (0.5%) Autos and RVs $ 206 Sales comparison approach Adjustment for differences between the comparable sales -33.9 to 60.5% (7.9%) 1 For impaired loans and other real estate owned the ranges shown may vary positively or negatively based on the comparable sales reported in the current appraisal. In certain instances, the range can be significant due to small sample sizes and in some cases the property being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted. June 30, 2017 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) 1 Impaired loans and leases: Single family real estate secured: Mortgage $ 23,377 Sales comparison approach Adjustment for differences between the comparable sales -38.5 to 79.8% (6.4%) Home equity $ 16 Sales comparison approach Adjustment for differences between the comparable sales -6.1 to 26.1% (7.8%) Multifamily real estate secured $ 4,255 Sales comparison approach and income approach Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, capitalization rate -24.2 to 48.7% (2.4%) Auto and RV secured $ 157 Sales comparison approach Adjustment for differences between the comparable sales -17.2 to 42.4% (-5.5%) Commercial & Industrial $ 314 Discounted cash flow Discount Rate 34.8 to 34.8% (34.8%) Other $ 274 Discounted cash flow Projected Constant Prepayment Rate, 0.0 to 0.0% (0.0%) Other real estate owned and foreclosed assets: Single family real estate $ 1,353 Sales comparison approach Adjustment for differences between the comparable sales -10.5 to 12.5% (0.1%) Autos and RVs $ 60 Sales comparison approach Adjustment for differences between the comparable sales 17.0 to 20.5% (6.2%) 1 For impaired loans and other real estate owned the ranges shown may vary positively or negatively based on the comparable sales reported in the current appraisal. In certain instances, the range can be significant due to small sample sizes and in some cases the property being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted. FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amount and estimated fair values of financial instruments at year-end were as follows: June 30, 2018 (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 622,850 $ 622,850 $ — $ — $ 622,850 Securities available-for-sale 180,305 — 162,862 17,443 180,305 Loans held for sale, at fair value 35,077 — 35,077 — 35,077 Loans held for sale, at lower of cost or fair value 2,686 — — 2,734 2,734 Loans and leases held for investment—net 8,432,289 — — 8,466,494 8,466,494 Accrued interest receivable 26,729 — — 26,729 26,729 Mortgage servicing rights 10,752 — — 10,752 10,752 Financial liabilities: Total deposits 7,985,350 — 7,584,928 — 7,584,928 Advances from the Federal Home Loan Bank 457,000 — 453,326 — 453,326 Subordinated notes and debentures 54,552 — 51,693 — 51,693 Accrued interest payable 1,753 — 1,753 — 1,753 June 30, 2017 (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 643,541 $ 643,541 $ — $ — $ 643,541 Securities trading 8,327 — — 8,327 8,327 Securities available-for-sale 264,470 — 192,967 71,503 264,470 Loans held for sale, at fair value 18,738 — 18,738 — 18,738 Loans held for sale, at lower of cost or fair value 6,669 — — 7,328 7,328 Loans and leases held for investment—net 7,374,493 — — 7,521,281 7,521,281 Accrued interest receivable 20,781 — — 20,781 20,781 Mortgage servicing rights 7,200 — — 7,200 7,200 Financial liabilities: Total deposits 6,899,507 — 6,544,056 — 6,544,056 Securities sold under agreements to repurchase 20,000 — 20,152 — 20,152 Advances from the Federal Home Loan Bank 640,000 — 645,339 — 645,339 Subordinated notes and debentures 54,463 — 52,930 — 52,930 Accrued interest payable 1,284 — 1,284 — 1,284 |
SECURITIES
SECURITIES | 12 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The amortized cost, carrying amount and fair value for the major categories of securities trading, available-for-sale, and held-to-maturity for the following periods were: June 30, 2018 Available-for-sale (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mortgage-backed securities (RMBS): U.S agencies 1 $ 13,102 $ 152 $ (328 ) $ 12,926 Non-agency 2 19,384 116 (2,057 ) 17,443 Total mortgage-backed securities 32,486 268 (2,385 ) 30,369 Non-RMBS: Municipal 20,953 2 (743 ) 20,212 Asset-backed securities and structured notes 127,558 2,267 (101 ) 129,724 Total Non-RMBS 148,511 2,269 (844 ) 149,936 Total debt securities $ 180,997 $ 2,537 $ (3,229 ) $ 180,305 June 30, 2017 Trading Available-for-sale (Dollars in thousands) Fair Amortized Unrealized Unrealized Fair Mortgage-backed securities (RMBS): U.S. agencies 1 $ — $ 27,379 $ 286 $ (459 ) $ 27,206 Non-agency 2 — 65,401 7,406 (1,304 ) 71,503 Total mortgage-backed securities — 92,780 7,692 (1,763 ) 98,709 Non-RMBS: Municipal — 27,568 19 (424 ) 27,163 Asset-backed securities and structured notes 8,327 137,172 1,517 (91 ) 138,598 Total Non-RMBS 8,327 164,740 1,536 (515 ) 165,761 Total debt securities $ 8,327 $ 257,520 $ 9,228 $ (2,278 ) $ 264,470 1 U.S. government-backed or government sponsored enterprises including Fannie Mae, Freddie Mac and Ginnie Mae. 2 Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by prime, Alt-A or pay-option ARM mortgages. The Company’s non-agency RMBS available-for-sale portfolio with a total fair value of $17,443 at June 30, 2018 consists of fifteen different issues of super senior securities. During the current fiscal year ended June 30, 2018 , the Company sold its two mezzanine z-tranche securities for a gain of $153 . Debt securities with evidence of credit quality deterioration since issuance and for which it is probable at purchase that the Company will be unable to collect all of the par value of the security are accounted for under ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC Topic 310-30”). Under ASC Topic 310-30, the excess of cash flows expected at acquisition over the purchase price is referred to as the accretable yield and is recognized in interest income over the remaining life of the security. During the current fiscal year ended June 30, 2018 , the Company sold its one senior support security for a loss of $861 . The face amounts of debt securities available-for-sale that were pledged to secure borrowings at June 30, 2018 and 2017 were $2,540 and $6,183 respectively. The securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows: June 30, 2018 Available-for-sale securities in loss position for Less Than 12 Months More Than 12 Months Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses RMBS: U.S. agencies $ 12 $ (1 ) $ 6,825 $ (327 ) $ 6,837 $ (328 ) Non-agency 36 (1 ) 15,867 (2,056 ) 15,903 (2,057 ) Total RMBS securities 48 (2 ) 22,692 (2,383 ) 22,740 (2,385 ) Non-RMBS: Municipal debt 1,740 (17 ) 12,326 (726 ) 14,066 (743 ) Asset-backed securities and structured notes 9,489 (30 ) 6,163 (71 ) 15,652 (101 ) Total Non-RMBS 11,229 (47 ) 18,489 (797 ) 29,718 (844 ) Total debt securities $ 11,277 $ (49 ) $ 41,181 $ (3,180 ) $ 52,458 $ (3,229 ) June 30, 2017 Available-for-sale securities in loss position for Less Than 12 Months More Than 12 Months Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses RMBS: U.S. agencies $ 17,161 $ (374 ) $ 2,348 $ (85 ) $ 19,509 $ (459 ) Non-agency 2,487 (16 ) 25,097 (1,288 ) 27,584 (1,304 ) Total RMBS securities 19,648 (390 ) 27,445 (1,373 ) 47,093 (1,763 ) Non-RMBS: Municipal debt 13,431 (420 ) 1,757 (4 ) 15,188 (424 ) Asset-backed securities and structured notes 27,750 (91 ) — — 27,750 (91 ) Total Non-RMBS 41,181 (511 ) 1,757 (4 ) 42,938 (515 ) Total debt securities $ 60,829 $ (901 ) $ 29,202 $ (1,377 ) $ 90,031 $ (2,278 ) There were twenty-six securities that were in a continuous loss position at June 30, 2018 for a period of more than 12 months . There were eleven securities that were in a continuous loss position at June 30, 2018 for a period of less than 12 months . There were sixteen securities that were in a continuous loss position at June 30, 2017 for a period of more than 12 months . There were twenty-six securities that were in a continuous loss position at June 30, 2017 for a period of less than 12 months . The following table summarizes amounts of anticipated credit loss recognized in the income statement through other-than-temporary impairment charges, which reduced non-interest income: At June 30, (Dollars in thousands) 2018 2017 2016 Beginning balance $ (15,528 ) $ (20,865 ) $ (20,503 ) Additions for the amounts related to the credit loss for which an other-than-temporary impairment was not previously recognized (7 ) (342 ) (112 ) Increases to the amount related to the credit loss for which other-than-temporary impairment was previously recognized (149 ) (1,622 ) (453 ) Credit losses realized for securities sold 15,684 7,301 203 Ending balance $ — $ (15,528 ) (20,865 ) At June 30, 2018 , no non-agency RMBS were determined to have cumulative credit losses. Cumulative credit losses of $565 was recognized in earnings during fiscal 2016 , $1,964 was recognized in earnings during fiscal 2017 and $156 was recognized in earnings during fiscal 2018 . This year’s other-than-temporary impairment of $156 was related to two non-agency RMBS sold during the year. The Company measures its non-agency RMBS in an unrealized loss position at the end of the reporting period for other-than-temporary impairment by comparing the present value of the cash flows currently expected to be collected from the security with its amortized cost basis. If the calculated present value is lower than the amortized cost, the difference is the credit component of other-than-temporary impairment of its debt securities. The excess of present value over the fair value of the security, if any, is the noncredit component of the other-than-temporary impairment. If the Company does not intend to sell the security and will not be required to sell the security before recovery of its amortized cost basis, the credit component of other-than-temporary impairment is recorded as a loss in earnings and the noncredit component of other-than-temporary impairment is recorded in comprehensive income, net of the related income tax benefit. If the Company does not intend to hold the security, or will be required to sell the security prior to a recovery of the amortized cost basis of the security, the credit component and noncredit component of the other-than-temporary impairment is recorded as a loss in earnings. To determine the cash flows expected to be collected and to calculate the present value for purposes of testing for other-than-temporary impairment, the Company utilizes the same industry-standard tool and the same cash flows as those calculated for Level 3 fair values as discussed in Note 3 – Fair Value. The discount rates used to compute the present value of the expected cash flows for purposes of testing for the credit component of the other-than-temporary impairment are either the implicit rate calculated in each of the Company’s securities at acquisition or the last accounting yield. The Company calculates the implicit rate at acquisition based on the contractual terms of the security, considering scheduled payments (and minimum payments in the case of pay-option ARMs) without prepayment assumptions. Once the discount rate (or discount margin in the case of floating rate securities) is calculated as described above, the discount is used in the industry-standard model to calculate the present value of the cash flows. During the current fiscal year ended June 30, 2018, total proceeds of $8,700 and net realized gains of $282 were realized from the sale of two trading securities with a carrying value of $8,327 . During the current fiscal year ended June 30, 2018 , the company sold twenty-four available-for-sale securities with a carrying value of $44,271 resulting in a $300 loss. The gross gains and losses realized through earnings upon the sale of available-for-sale securities were as follows: At June 30, (Dollars in thousands) 2018 2017 2016 Proceeds $ 44,013 $ 161,048 $ 14,969 Gross realized gains $ 1,269 $ 7,386 $ 1,427 Gross realized loss (1,569 ) (3,466 ) — Net gain on securities $ (300 ) $ 3,920 $ 1,427 The Company records unrealized gains and unrealized losses in accumulated other comprehensive loss as follows: At June 30, (Dollars in thousands) 2018 2017 Available-for-sale debt securities—net unrealized gains $ (692 ) $ 6,949 Available-for-sale debt securities—non-credit related — (6,115 ) Subtotal (692 ) 834 Tax (provision) benefit 79 (347 ) Net unrealized gain (loss) on investment securities in accumulated other comprehensive loss $ (613 ) $ 487 The expected maturity distribution of the Company’s mortgage-backed securities and the contractual maturity distribution of the Company’s Non-RMBS securities classified as available-for-sale and held-to-maturity were: June 30, 2018 Available-for-sale (Dollars in thousands) Amortized Cost Fair Value RMBS—U.S. agencies 1 : Due within one year $ 1,371 $ 1,344 Due one to five years 4,004 3,933 Due five to ten years 3,008 2,973 Due after ten years 4,719 4,676 Total RMBS—U.S. agencies 1 13,102 12,926 RMBS—Non-agency: Due within one year 3,012 2,760 Due one to five years 8,902 8,116 Due five to ten years 5,583 4,966 Due after ten years 1,887 1,601 Total RMBS—Non-agency 19,384 17,443 Non-RMBS: Due within one year 75,701 76,925 Due one to five years 58,979 59,920 Due five to ten years — — Due after ten years 13,831 13,091 Total Non-RMBS 148,511 149,936 Total $ 180,997 $ 180,305 1 |
LOANS, LEASES & ALLOWANCE FOR L
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES | 12 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES | LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES For the Company’s single family, commercial and multifamily loans, the allowance methodology takes into consideration the risk that the original borrower information may have adversely changed in two ways. First, in calculating the quantitative factor for the Company’s general loan and lease loss allowance, the actual loss experience is tracked and stratified by original LTV and year of origination. As a result, the Company uses relatively higher loss rates across the LTV bands for loans originated and purchased in years 2005 through 2008 compared to the same LTV ranges for loans originated before 2005 or after 2008. Second, the Company uses a number of qualitative factors to reflect additional risk. One qualitative loss factor is real estate valuation risk which is applied to each LTV band primarily based upon the year the real estate loan was originated or purchased. Based upon price appreciation indices, multifamily property values in years 2005 through 2008 experienced significant declines. As a result, the Company applies a relatively higher qualitative loss factor rate across the LTV bands for loans originated and purchased in years 2005 through 2008 compared to the same LTV ranges for loans originated or purchased before 2005 or after 2008. Lastly, the Company separates its allowance for loan and lease losses into loans originated and purchased categories in order to reflect the additional risk associated with purchased loans. For the Company’s home equity loans, the allowance methodology takes into consideration the risk that the original borrower information may have adversely changed in two ways. First, in calculating the quantitative factor for the Company’s general loan loss allowance, the actual loss experience is tracked and stratified by original combined LTV (“CLTV”) of the first and second liens. As a result, the Company allocates higher loss rates in proportion to the greater the CLTV. Second, the Company uses a number of qualitative factors to reflect additional risk. The Company does not have any individual purchased home equity loans in its portfolio and given the limited time frame under which the Company originated home equity loans, 2006-2009, no additional risk allocation is used. For the Company’s single family – warehouse lines, the allowance methodology takes into consideration the structure of these loans, as they remain in the portfolio for a short period (usually less than a month) and have higher credit protection allocated compared to traditional single family originations. A matrix was created to reflect most current operating levels of capital and line usage, which calculates a loss rating to assign to each originator. For the Company’s factoring loans, the allowance methodology takes into consideration the credit quality of the insurance company or state securing the loan. The Company obtains credit ratings for these entities through agencies such as A.M. Best and allocates an allowance allocation based on these ratings. For the Company’s C&I leveraged loans, equipment finance leases and bridge loans, the allowance methodology incorporates a loan level grading system, which generally aligns with the credit rating. Industry loss rates are applied to determine the loss allowance for each of these loans based upon their internal grading. The credit rating incorporates multiple borrower attributes including, but not limited to, underlying collateral and pledged assets, income generated by the property or assets, borrower’s liquidity and access to liquid funds, strength of the borrower’s industry, stability of the borrower’s market, the size of the company, collateral diversity, facility exit strategies and borrower guarantees. For the Company’s automobile (“auto”) and recreational vehicle (“RV”) loan portfolio, the allowance methodology takes into consideration potential adverse changes to the borrower’s financial condition since time of origination. The general loan loss reserves for auto and RV are stratified based upon borrower FICO scores. First, to account for potential deterioration of borrower’s credit history since time of origination, due to downturn in the economy or other factors, the Company refreshes the FICO scores used to drive the allowance on a semi-annual basis. The Company believes that current borrower credit history is a better predictor of potential loss than that was used at time of origination. Second, the Company uses a number of qualitative factors to capture additional risk when finalizing its calculation of the allowance for loan and lease losses. Loan and lease segment risk characteristics . The Company considers its loan and lease classes to be the same as its loan and lease segments. The following are loan and lease segment risk characteristics of the Company’s loan and lease portfolio: Single family mortgage secured . The Company originates both fixed-rate and adjustable-rate loans secured by one-to-four family residences located in the U.S. The Company’s lending policies generally limit the maximum LTV ratio on one-to-four family loans to 80% of the lesser of the appraised value or the purchase price, plus pledged collateral. Terms of maturity typically range from 15 to 30 years. The Company attempts to mitigate residential lending risks by adhering to its underwriting policies in evaluating the collateral and the credit-worthiness of the borrower. Home equity . The Company also originates home equity lines of credit and second mortgage loans. Home equity lines of credit and second mortgage loans have a greater credit risk than one-to-four family residential mortgage loans because they are secured by mortgages subordinated to the existing first mortgage on the property, which may or may not be held by the Company. The Company attempts to mitigate residential lending risks by adhering to its underwriting policies in evaluating the collateral and the credit-worthiness of the borrower. Warehouse and other . Single family warehouse loans consist of short-term, secured advances to mortgage bankers on a revolving basis. These facilities enable the mortgage originators to close loans in their own names and temporarily finance inventories of closed mortgage loans until they can be sold to an approved investor. Commercial specialty and lender finance loans secured by single family real estate are originated to businesses secured by first liens on single family mortgage loans. These loans are generally collateralized by single family mortgage loans that are secured by first liens on single family real estate. The Company attempts to mitigate residential lending risks by adhering to its underwriting policies in evaluating the collateral and the credit-worthiness of the borrower. Multifamily . The Company originates loans secured by multifamily real estate (more than four units). These loans involve a greater degree of risk than one-to-four family residential mortgage loans as these loans are usually greater in amount, dependent on the cash flow capacity of the project, and may be more difficult to evaluate and monitor. Repayment of loans secured by multifamily properties frequently depends on the successful operation and management of the properties. Consequently, repayment of such loans may be affected by adverse conditions in the real estate market or economy. The Company attempts to mitigate these risks by thoroughly evaluating the global financial condition of the borrower, the management experience of the borrower, and the quality of the collateral property securing the loan. Commercial real estate . The Company originates loans across the U.S. secured by small commercial real estate properties. These are primarily cash flow loans that share characteristics of both real estate and commercial business loans. The primary source of repayment is frequently cash flow from the operation of the collateral property and secondarily through liquidation of the collateral. These loans are generally higher risk than other classifications of loans in that they typically involve higher loan amounts, are dependent on the management experience of the owners, and may be adversely affected by conditions in the real estate market or the economy. Owner-occupied commercial real estate loans are generally of lower credit risk than non-owner occupied commercial real estate loans as the borrowers’ businesses are likely dependent on the properties. Underwriting for these loans is primarily dependent on the repayment capacity derived from the operation of the occupying business rather than rents paid by third parties. The Company attempts to mitigate these risks by generally limiting the maximum LTV ratio to 65% - 80% , depending on property type, and scrutinizing the financial condition of the borrower, the quality of the collateral and the management of the property securing the loan. Auto and RV . Auto and RV loans primarily consist of direct and indirect auto loans and legacy RV loans. These auto and RV loans were originated across the U.S. The collateral for these auto and RV loans is comprised of a mix of new and used autos and RVs. Auto and RV loans generally have shorter terms to maturity than mortgage loans. Auto and RV loans generally involve a greater degree of risk than do residential mortgage loans, particularly in the case of auto and RV loans, which are secured by rapidly depreciating and mobile assets such as autos and RVs. In such cases, any repossessed collateral for a defaulted auto and RV loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. The Company attempts to mitigate these risks by adhering to its underwriting policies in evaluating the credit-worthiness of the borrower. Factoring . Factoring loans are originated through the wholesale and retail purchase of state lottery prize and structured settlement annuities. These annuities are high credit quality deferred payment receivables having a state lottery commission or primarily highly rated insurance company payor. Purchases of state lottery prize or structured settlement annuities are governed by specific state statutes requiring judicial approval of each transaction. No transaction is funded before an order approving such transaction has been entered by a court of competent jurisdiction. The Company’s commission-based sales force originates contracts for the retail purchase of such payments from leads generated by the Company’s dedicated research department through the use of proprietary research techniques. The Company attempts to mitigate these risks by adhering to its underwriting policies in evaluating the credit-worthiness of the state or insurer. Commercial and industrial . Commercial and industrial loans and leases are primarily made based on the operating cash flows of the borrower or conversion of working capital assets to cash and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers may be volatile and the value of the collateral securing these loans and leases may be difficult to measure. Most commercial and industrial loans and leases are secured by the assets being financed or other business assets such as accounts receivable or inventory and generally include personal guarantees based on a review of personal financial statements. Although commercial and industrial loans and leases are often collateralized by equipment, inventory, accounts receivable or other business assets, the liquidation of collateral in the event of a borrower default may be an insufficient source of repayment, because accounts receivable may be uncollectible and inventories and equipment may be obsolete or of limited use. Accordingly, the repayment of a commercial and industrial loan or lease primarily depends on the credit-worthiness of the borrower and guarantors, while the liquidation of collateral is a secondary and potentially insufficient source of repayment. The Company attempts to mitigate these risks by adhering to its underwriting policies in evaluating the management of the business and the credit-worthiness of borrowers and guarantors. Other . The Company originates other loans, which include unsecured consumer loans and other small balance business and consumer loans. Other consumer loans generally have shorter terms to maturity than mortgage loans. Other consumer loans generally involve a greater degree of risk than do residential mortgage loans, particularly in the case of consumer loans that are unsecured. In such cases, it is not possible to repossess collateral for a defaulted consumer loan and as such there may not exist an adequate source of repayment of the outstanding loan balance as a result of the absence of security. The Company attempts to mitigate these risks by adhering to its underwriting policies in evaluating the credit-worthiness of the borrower. The following table sets forth the composition of the loan and lease portfolio as of the dates indicated: At June 30, (Dollars in thousands) 2018 2017 Single family real estate secured: Mortgage $ 4,198,941 $ 3,901,754 Home equity 2,306 2,092 Warehouse and other 1 412,085 452,390 Multifamily real estate secured 1,800,919 1,619,404 Commercial real estate secured 220,379 162,715 Auto and RV secured 213,522 154,246 Factoring 169,885 160,674 Commercial & Industrial 1,481,051 992,232 Other 18,598 3,754 Total gross loans and leases 8,517,686 7,449,261 Allowance for loan and lease losses (49,151 ) (40,832 ) Unaccreted discounts and loan and lease fees (36,246 ) (33,936 ) Total net loans and leases $ 8,432,289 $ 7,374,493 1 The balance of single family warehouse loans was $175,508 at June 30, 2018 and $187,034 at June 30, 2017 . The remainder of the balance was attributable to commercial specialty and lender finance loans secured by single family real estate. The following table summarizes activity in the allowance for loan and lease losses for the periods indicated: At June 30, (Dollars in thousands) 2018 2017 2016 Balance—beginning of period $ 40,832 $ 35,826 $ 28,327 Provision for loan and lease loss 25,800 11,061 9,700 Charged off (15,979 ) (5,096 ) (808 ) Transfers to held for sale (2,307 ) (1,828 ) (2,727 ) Recoveries 805 869 1,334 Balance—end of period $ 49,151 $ 40,832 $ 35,826 The following table summarizes the composition of the impaired loans and leases: At June 30, (Dollars in thousands) 2018 2017 2016 Nonaccrual loans and leases—90+ days past due plus other nonaccrual loans and leases $ 30,197 $ 26,815 $ 28,790 Troubled debt restructured loans and leases—non-accrual 1,029 1,578 3,069 Troubled debt restructured loans and leases—performing — — 210 Total impaired loans and leases $ 31,226 $ 28,393 $ 32,069 At June 30, 2018 , the carrying value of impaired loans and leases is net of write offs of $2,184 . At June 30, 2018 , $31,226 of impaired loans and leases had no specific allowance allocations. The average carrying value of impaired loans and leases was $30,420 and $34,154 for the fiscal years ended June 30, 2018 and 2017 , respectively. The interest income recognized during the periods of impairment is insignificant for those loans and leases impaired at June 30, 2018 or 2017 . At June 30, 2018 and 2017 , there were no loans or leases still accruing past due 90 days or more, unless the Company received principal and interest from the servicer despite the borrower’s delinquency. The Company considers the servicer’s recovery of such advances in evaluating whether such loans should continue to accrue. A loan or lease is considered impaired when, based on current information and events, it is probable that we will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan or lease agreement. Factors that we consider in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans or leases that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan or lease’s effective interest rate or the fair value of the collateral if repayment of the loan or lease is expected from the sale of collateral. The Company has allocated $0 and $44 of the allowance to customers whose loans have been restructured and were determined to be TDRs as of June 30, 2018 and 2017 , respectively. The Company does not have any commitments to fund TDR loans at June 30, 2018 . At June 30, 2018 and 2017 , approximately 71.08% and 69.57% , respectively, of the Company’s real estate loans are collateralized by real property located in California and therefore exposed to economic conditions within this market region. In the ordinary course of business, the Company has granted related party loans collateralized by real property to principal officers, directors and their affiliates. There were no new related party loans granted during the fiscal year ended June 30, 2018 . During the fiscal year 2017 , the Company originated no new related party loans and did not execute any interest rate modifications of existing loans. Total principal payments on related party loans were $341 and $353 during the years ended June 30, 2018 and 2017 , respectively. At June 30, 2018 and 2017 , these loans amounted to $8,956 and $9,297 , respectively, and are included in loans held for investment. Interest earned on these loans was $81 and $95 during the years ended June 30, 2018 and 2017 , respectively. The Company’s loan and lease portfolio consists of approximately 12.96% fixed interest rate loans and 87.04% adjustable interest rate loans as of June 30, 2018 . The Company’s adjustable rate loans are generally based upon indices using U.S. Treasury rates, LIBOR and Eleventh District Cost of Funds. At June 30, 2018 and 2017 , purchased loans serviced by others were $64,536 or 0.76% and $84,363 or 1.13% respectively, of the loan portfolio. Allowance for Loan and Lease Losses . The Company is committed to maintaining the allowance for loan and lease losses at a level that is considered to be commensurate with estimated probable incurred credit losses in the portfolio. Although the adequacy of the allowance is reviewed quarterly, management performs an ongoing assessment of the risks inherent in the portfolio. While the Company believes that the allowance for loan and lease losses is adequate at June 30, 2018 , future additions to the allowance will be subject to continuing evaluation of estimated and known, as well as inherent, risks in the loan and lease portfolio. Allowance for Credit Loss Disclosures . The assessment of the adequacy of the Company’s allowance for loan and lease losses is based upon a number of quantitative and qualitative factors, including levels and trends of past due and nonaccrual loans, changes in the volume and mix of loans, collateral values and charge-off history. Based on historical performance, the Company divides the LTV analysis into two classes, separating purchased loans from the loans underwritten directly by the Company since mortgage loans originated by the Company experience lower estimated loss rates. The Company provides general loan loss reserves for its auto and RV loans based upon the borrower’s credit score at the time of origination and the Company’s loss experience to date. The Company obtains updated credit scores for its auto and RV borrowers approximately every six months . The updated credit score will result in a higher or lower general loan loss allowance depending on the change in borrowers’ FICO scores and the resulting shift in loan balances among the five FICO bands from which the Company measures and calculates its reserves. For the general loss reserve, the Company does not use individually updated credit scores or valuations for the real estate collateralizing its real estate loans. The allowance for loan and lease losses for the auto and RV loan portfolio at June 30, 2018 was determined by classifying each outstanding loan according to the original FICO score and providing loss rates. The Company had $213,462 of auto and RV loan balances subject to general reserves as follows: FICO score greater than or equal to 770: $105,612 ; 715 – 769: $73,013 ; 700 – 714: $18,524 ; 660 – 699: $14,992 and less than 660: $1,321 . The Company provides general loan loss reserves for mortgage loans based upon the size and class of the mortgage loan and the LTV at date of origination. The allowance for each class is determined by dividing the outstanding unpaid balance for each loan by the LTV and applying a loss rate. At June 30, 2018 , the LTV groupings for each significant mortgage class were as follows: The Company had $4,170,495 of single family mortgage portfolio loan balances subject to general reserves as follows: LTV less than or equal to 60%: $2,443,303 ; 61% – 70%: $1,387,807 ; 71% – 80%: $339,193 and greater than 80%: $192 . The Company had $1,800,687 of multifamily mortgage portfolio loan balances subject to general reserves as follows: LTV less than or equal to 55%: $957,441 ; 56% – 65%: $562,928 ; 66% – 75%: $269,619 ; 76% – 80%: $9,499 and greater than 80%: $1,200 . The Company originates and purchases mortgage loans with terms that may include repayments that are less than the repayments for fully amortizing loans, including interest only loans, option adjustable-rate mortgages, and other loan types that permit payments that may be smaller than interest accruals. The Companies lending guidelines for interest-only loans are adjusted for the increased credit risk associated with these loans by requiring borrowers with such loans to borrow at LTVs that are lower than standard amortizing ARM loans and by calculating debt to income ratios for qualifying borrowers based upon a fully amortizing payment, not the interest only payment. The Company’s Credit Committee monitors and performs reviews of interest only loans. Adverse trends reflected in the Company’s delinquency statistics, grading and classification of interest only loans would be reported to management and the Board of Directors. As of June 30, 2018 , the Company had $1,123.1 million of interest only loans and $2.3 million of option adjustable-rate mortgage loans. Through June 30, 2018 , the net amount of deferred interest on these loan types was not material to the financial position or operating results of the Company. The Company’s commercial real estate secured portfolio consists of loans well collateralized by commercial real estate. The Company had $220,379 of commercial real estate loan balances subject to general reserves as follows: LTV less than or equal to 50%: $104,070 ; 51% – 60%: $47,591 ; 61% – 70%: $56,649 ; 71% – 80%: $12,069 and greater than 80%: $0 . The Company’s commercial and industrial portfolio primarily consists of real estate-backed and asset-backed loans and leases to businesses and non-bank lenders. The Company’s other portfolios consist of receivables factoring for businesses and consumers and other small balance business and consumer loans. The Company allocates its allowance for loan and lease losses for these asset types based on qualitative factors which consider various attributes captured in the credit rating, the value of the collateral and the financial position of the issuer of the receivables. The following tables summarize activity in the allowance for loan and lease losses by portfolio classes for the periods indicated: June 30, 2018 Single Family (Dollars in thousands) Mortgage Home Warehouse & Other Multi- Commercial Auto and RV secured Factoring Commercial & Industrial Other Total Balance at July 1, 2017 $ 19,972 $ 19 $ 2,298 $ 4,638 $ 1,008 $ 2,379 $ 401 $ 9,881 $ 236 $ 40,832 Provision for loan and lease loss 632 (18 ) 69 372 (159 ) 1,390 44 6,357 17,113 25,800 Charge-offs (271 ) (1 ) (287 ) — — (803 ) — — (14,617 ) (15,979 ) Transfers to held for sale — — — — — — — — (2,307 ) (2,307 ) Recoveries 35 14 — — — 212 — — 544 805 Balance at June 30, 2018 $ 20,368 $ 14 $ 2,080 $ 5,010 $ 849 $ 3,178 $ 445 $ 16,238 $ 969 $ 49,151 June 30, 2017 Single Family (Dollars in thousands) Mortgage Home Warehouse & Other Multi- Commercial Auto and RV secured Factoring Commercial & Industrial Other Total Balance at July 1, 2016 $ 18,666 $ 23 $ 2,685 $ 3,938 $ 882 $ 1,615 $ 245 $ 7,630 $ 142 $ 35,826 Provision for loan and lease loss 2,308 (6 ) (387 ) 323 110 990 156 2,251 5,316 11,061 Charge-offs (1,115 ) (23 ) — — (23 ) (433 ) — — (3,502 ) (5,096 ) Transfers to held for sale — — — — — — — — (1,828 ) (1,828 ) Recoveries 113 25 — 377 39 207 — — 108 869 Balance at June 30, 2017 $ 19,972 $ 19 $ 2,298 $ 4,638 $ 1,008 $ 2,379 $ 401 $ 9,881 $ 236 $ 40,832 June 30, 2016 Single Family (Dollars in thousands) Mortgage Home Warehouse & Other Multi- Commercial Auto and RV secured Factoring Commercial & Industrial Consumer & Other Total Balance at July 1, 2015 $ 13,664 $ 122 $ 1,879 $ 4,363 $ 1,103 $ 953 $ 292 $ 5,882 $ 69 $ 28,327 Provision for loan and lease loss 5,040 (134 ) 806 (311 ) (1,056 ) 854 (47 ) 1,748 2,800 9,700 Charge-offs (205 ) (3 ) — (114 ) (147 ) (339 ) — — — (808 ) Transfers to held for sale — — — — — — — — (2,727 ) (2,727 ) Recoveries 167 38 — — 982 147 — — — 1,334 Balance at June 30, 2016 $ 18,666 $ 23 $ 2,685 $ 3,938 $ 882 $ 1,615 $ 245 $ 7,630 $ 142 $ 35,826 The following tables present our loans and leases evaluated individually for impairment by portfolio class for the periods indicated: June 30, 2018 (Dollars in thousands) Unpaid Principal Balance Adjustment 1 Recorded Accrued Interest/Origination Fees Total Related Related With no related allowance recorded: Single family real estate secured: Mortgage In-house originated $ 1,584 $ 951 $ 633 $ 78 $ 711 $ — $ — Purchased 3,598 1,739 1,859 — 1,859 — — Multifamily real estate secured Purchased 480 248 232 — 232 — — Auto and RV secured In-house originated 369 309 60 2 62 — — With an allowance recorded: Single family real estate secured: Mortgage In-house originated 24,607 47 24,560 — 24,560 247 — Purchased 1,394 — 1,394 21 1,415 14 — Home equity In-house originated 16 — 16 — 16 1 — Commercial & Industrial 172 — 172 — 172 9 — Other 111 — 111 — 111 7 — Total $ 32,331 $ 3,294 $ 29,037 $ 101 $ 29,138 $ 278 $ — As a % of total gross loans and leases 0.38 % 0.04 % 0.34 % — % 0.34 % — % — % June 30, 2017 (Dollars in thousands) Unpaid Principal Balance Adjustment 1 Recorded Accrued Interest/Origination Fees Total Related Related With no related allowance recorded: Single family real estate secured: Mortgage In-house originated $ 4,240 $ 1,032 $ 3,208 $ 205 $ 3,413 $ — $ — Purchased 4,563 1,903 2,660 — 2,660 — — Multifamily real estate secured Purchased 492 215 277 — 277 — — Auto and RV secured In-house originated 418 295 123 3 126 — — With an allowance recorded: Single family real estate secured: Mortgage In-house originated 16,124 12 16,112 — 16,112 643 — Purchased 1,429 32 1,397 17 1,414 37 — Home equity In-house originated 18 2 16 — 16 1 — Multifamily real estate secured In-house originated 4,170 192 3,978 186 4,164 19 — Auto and RV secured In-house originated 42 8 34 2 36 1 — Commercial & Industrial 314 — 314 — 314 314 — Other 274 — 274 — 274 43 — Total $ 32,084 $ 3,691 $ 28,393 $ 413 $ 28,806 $ 1,058 $ — As a % of total gross loans and leases 0.43 % 0.05 % 0.38 % 0.01 % 0.39 % 0.01 % — % 1 Impaired loans with an allowance recorded do not have any charge-offs. Principal balance adjustments on impaired loans with an allowance recorded represent interest payments that have been applied to the book balance as a result of the loans’ non-accrual status. The following tables present the balance in the allowance for loan and lease losses and the recorded investment in loans and leases by portfolio segment and based on impairment evaluation method: June 30, 2018 Single Family (Dollars in thousands) Mortgage Home Warehouse & Other Multi- Commercial Auto and RV secured Factoring Commercial & Industrial Other Total Allowance for loan and lease losses: Ending allowance balance attributable to loans and leases: Individually evaluated for impairment– general allowance $ 261 $ 1 $ — $ — $ — $ — $ — $ 9 $ 7 $ 278 Individually evaluated for impairment– specific allowance — — — — — — — — — — Collectively evaluated for impairment 20,107 13 2,080 5,010 849 3,178 445 16,229 962 48,873 Total ending allowance balance $ 20,368 $ 14 $ 2,080 $ 5,010 $ 849 $ 3,178 $ 445 $ 16,238 $ 969 $ 49,151 Loans and leases: Loans and leases individually evaluated for impairment 1 $ 28,446 $ 16 $ — $ 232 $ — $ 60 $ — $ 172 $ 111 $ 29,037 Loans and leases collectively evaluated for impairment 4,170,495 2,290 412,085 1,800,687 220,379 213,462 169,885 1,480,879 18,487 8,488,649 Principal loan and lease balance 4,198,941 2,306 412,085 1,800,919 220,379 213,522 169,885 1,481,051 18,598 8,517,686 Unaccreted discounts and loan and lease fees 9,187 48 (706 ) 5,063 836 2,065 (48,039 ) (3,884 ) (816 ) (36,246 ) Total recorded investment in loans and leases $ 4,208,128 $ 2,354 $ 411,379 $ 1,805,982 $ 221,215 $ 215,587 $ 121,846 $ 1,477,167 $ 17,782 $ 8,481,440 1 Loans and leases evaluated for impairment include TDRs that have been performing for more than six months. June 30, 2017 Single Family (Dollars in thousands) Mortgage Home Warehouse & Other Multi- Commercial Auto and RV secured Factoring Commercial & Industrial Other Total Allowance for loan and lease losses: Ending allowance balance attributable to loans and leases: Individually evaluated for impairment – general allowance $ 680 $ 1 $ — $ 19 $ — $ 1 $ — $ 314 $ 43 $ 1,058 Individually evaluated for impairment – specific allowance $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 19,292 18 2,298 4,619 1,008 2,378 401 9,567 193 39,774 Total ending allowance balance $ 19,972 $ 19 $ 2,298 $ 4,638 $ 1,008 $ 2,379 $ 401 $ 9,881 $ 236 $ 40,832 Loans and leases: Loans and leases individually evaluated for impairment 1 $ 23,377 $ 16 $ — $ 4,255 $ — $ 157 $ — $ 314 $ 274 $ 28,393 Loans and leases collectively evaluated for impairment 3,878,377 2,076 452,390 1,615,149 162,715 154,089 160,674 991,918 3,480 7,420,868 Principal loan and lease balance 3,901,754 2,092 452,390 1,619,404 162,715 154,246 160,674 992,232 3,754 7,449,261 Unaccreted discounts and loan and lease fees 10,486 34 (1,702 ) 4,586 744 2,054 (49,350 ) (640 ) (148 ) (33,936 ) Total recorded investment in loans and leases $ 3,912,240 $ 2,126 $ 450,688 $ 1,623,990 $ 163,459 $ 156,300 $ 111,324 $ 991,592 $ 3,606 $ 7,415,325 1 Loans and leases evaluated for impairment include TDRs that have been performing for more than six months. Credit Quality Disclosure . Nonaccrual loans and leases consisted of the following as of the dates indicated: At June 30, (Dollars in thousands) 2018 2017 Nonaccrual loans and leases: Single Family Real Estate Secured: Mortgage In-house originated $ 25,193 $ 19,320 Purchased 3,253 4,057 Home Equity In-house originated 16 16 Multifamily Real Estate Secured In-house originated — 3,978 Purchased 232 277 Total nonaccrual loans secured by real estate 28,694 27,648 Auto and RV Secured 60 157 Commercial and Industrial 2,361 314 Other 111 274 Total nonaccrual loans and leases $ 31,226 $ 28,393 Nonaccrual loans and leases to total loans and leases 0.37 % 0.38 % Approximately 3.30% of our nonaccrual loans and leases at June 30, 2018 were considered TDRs, compared to 5.56% at June 30, 2017 . Borrowers who make timely payments after TDRs are considered non-performing for at least six months. Generally, after six months of timely payments, those TDRs are reclassified from the nonaccrual loan and lease category to performing and any previously deferred interest income is recognized. Approximately 91.10% of the Bank’s nonaccrual loans and leases are single family first mortgages already written down to 41.28% in aggregate, of the original appraisal value of the underlying properties. The following tables provide the outstanding unpaid balance of loans and leases that are performing and nonaccrual by portfolio class as of the dates indicated: June 30, 2018 Single Family (Dollars in thousands) Mortgage Home Warehouse & Other Multi- Commercial Auto and RV secured Factoring Commercial & Industrial Other Total Performing $ 4,170,495 $ 2,290 $ 412,085 $ 1,800,687 $ 220,379 $ 213,462 $ 169,885 $ 1,478,690 $ 18,487 $ 8,486,460 Nonaccrual 28,446 16 — 232 — 60 — 2,361 111 31,226 Total $ 4,198,941 $ 2,306 $ 412,085 $ 1,8 |
FURNITURE, EQUIPMENT AND SOFTWA
FURNITURE, EQUIPMENT AND SOFTWARE | 12 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
FURNITURE, EQUIPMENT AND SOFTWARE | FURNITURE, EQUIPMENT AND SOFTWARE A summary of the cost and accumulated depreciation and amortization for leasehold improvements, furniture, equipment and software is as follows: At June 30, (Dollars in thousands) 2018 2017 Leasehold improvements $ 1,953 $ 1,983 Furniture and fixtures 5,418 5,083 Computer hardware and equipment 13,863 14,254 Software 27,605 17,228 Total 48,839 38,548 Less accumulated depreciation and amortization (27,385 ) (21,889 ) Furniture, equipment and software—net $ 21,454 $ 16,659 Depreciation and amortization expense in respect of leasehold improvements, furniture, equipment and software for the years ended June 30, 2018 , 2017 and 2016 was $7,923 , $6,094 and $4,795 |
GOODWILL AND OTHER IINTANGIBLE
GOODWILL AND OTHER IINTANGIBLE ASSETS | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The Company recorded goodwill on April 4, 2018 incident to its acquisition of the bankruptcy trustee and fiduciary services business of Epiq. At the time of acquisition a fair value study was conducted to determine the goodwill created as part of the transaction. Management has evaluated and continues to monitor all key factors impacting the carrying value of the Company’s recorded goodwill and long-lived assets. Adverse changes in the Company’s actual or expected operating results, market capitalization, business climate, economic factors or other negative events that may be outside the control of management could result in material non-cash impairment charges in the future. The following table summarizes the activity in the Company’s goodwill balance as of the dates indicated: (Dollars in thousands) Total Balance at July 1, 2017 $ — Goodwill incident to acquisition 35,719 Balance at June 30, 2018 $ 35,719 The Company’s acquired intangible assets are summarized as follows as of the dates indicated: June 30, 2018 June 30, 2017 (Dollars in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Covenant not to compete $ 930 $ 58 $ 872 $ — $ — $ — Customer relationships 9,820 243 9,577 — — — Developed technologies 21,680 326 21,354 — — — Trade name 290 24 266 — — — Total intangible assets $ 32,720 $ 651 $ 32,069 $ — $ — $ — The weighted-average useful lives of intangible assets at the time of acquisition were as follows: Weighted-Average Covenant not to compete 4 Customer relationships 12 Developed technologies 5 Trade name 3 The amortization expense for intangible assets that are subject to amortization was $651 for the year ended June 30, 2018 . Each intangible asset subject to amortization is amortized using the straight-line method over the estimated useful life of the asset. Estimated future amortization expense related to finite-lived intangible assets at June 30, 2018 is as follows: (Dollars in thousands) Amortization Expense For the fiscal year ending June 30, 2019 $ 5,270 2020 6,158 2021 5,808 2022 4,698 2023 4,525 Thereafter 5,610 Total $ 32,069 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Jun. 30, 2018 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS Deposit accounts are summarized as follows: At June 30, 2018 2017 (Dollars in thousands) Amount Rate 1 Amount Rate 1 Non-interest bearing $ 1,015,355 — % $ 848,544 — % Interest bearing: Demand 2,519,845 1.60 % 2,593,491 0.89 % Savings 2,482,430 1.31 % 2,651,176 0.81 % 5,002,275 1.46 % 5,244,667 0.85 % Time deposits: $250 and under 2 1,837,274 2.34 % 774,627 2.54 % Greater than $250 130,446 2.05 % 31,669 0.39 % Total time deposits 1,967,720 2.32 % 806,296 2.46 % Total interest bearing 2 6,969,995 1.70 % 6,050,963 1.06 % Total deposits $ 7,985,350 1.48 % $ 6,899,507 0.93 % 1 Based on weighted-average stated interest rates at end of period . 2 The total interest-bearing includes brokered deposits of $2,055.9 million and $1,104.3 million as of June 30, 2018 and June 30, 2017 , respectively, of which $1,692.8 million and $611.0 million , respectively, are time deposits classified as $250 and under. The scheduled maturities of time deposits are as follows: At June 30, (Dollars in thousands) 2018 Within 12 months $ 1,259,119 13 to 24 months 97,226 25 to 36 months 11,118 37 to 48 months 35,981 49 to 60 months 84,538 Thereafter 479,738 Total $ 1,967,720 At June 30, 2018 and 2017 , the Company had deposits from principal officers, directors and their affiliates in the amount of $4,964 and $1,220 |
ADVANCES FROM THE FEDERAL HOME
ADVANCES FROM THE FEDERAL HOME LOAN BANK | 12 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift [Abstract] | |
ADVANCES FROM THE FEDERAL HOME LOAN BANK | ADVANCES FROM THE FEDERAL HOME LOAN BANK At June 30, 2018 and 2017 , the Company’s fixed-rate FHLB advances had interest rates that ranged from 1.36% to 3.32% with a weighted average of 2.14% and ranged from 1.00% to 4.32% with a weighted average of 1.79% , respectively. Fixed-rate advances from FHLB are scheduled to mature as follows: At June 30, 2018 2017 (Dollars in thousands) Amount Weighted- Average Rate Amount Weighted- Average Rate Within one year 1 $ 229,500 2.02 % $ 265,000 1.28 % After one but within two years 55,000 1.79 % 147,500 1.98 % After two but within three years 65,000 2.30 % 55,000 1.79 % After three but within four years 50,000 2.47 % 65,000 2.30 % After four but within five years 27,500 2.08 % 50,000 2.47 % After five years 30,000 2.82 % 57,500 2.47 % Total $ 457,000 2.14 % $ 640,000 1.79 % 1. Within one year category includes $147,500 of term advances. The Company’s advances from the FHLB were collateralized by certain real estate loans with an aggregate unpaid balance of $4,687,166 and $3,989,070 at June 30, 2018 and 2017 , respectively, by the Company’s investment in capital stock of the FHLB of San Francisco and by its investment in mortgage-backed securities. Generally, each advance carries a prepayment penalty and is payable in full at its maturity date. The maximum amounts advanced at any month-end during the period from the FHLB were $2,240,000 , $1,317,000 , and $1,129,000 during the years ended June 30, 2018 , 2017 , and 2016 , respectively. At June 30, 2018 , the Company had $1,616,243 available immediately being fully collateralized for advances from the FHLB for terms up to ten |
SUBORDINATED NOTES AND DEBENTUR
SUBORDINATED NOTES AND DEBENTURES | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
SUBORDINATED NOTES AND DEBENTURES | SUBORDINATED NOTES AND DEBENTURES Subordinated Notes . In March 2016, the Company completed the sale of $51,000 aggregate principal amount of its 6.25% Subordinated Notes due February 28, 2026 (the “Notes”). The Company received $51,000 in gross proceeds as a part of this transaction, before the 3.15% underwriting discount and other offering expenses. The Notes mature on February 28, 2026 and accrue interest at a rate of 6.25% per annum, with interest payable quarterly. The Notes may be redeemed on or after March 31, 2021 , which date may be extended at the Company’s discretion, at a redemption price equal to principal plus accrued and unpaid interest, subject to certain conditions. Junior Subordinated Debentures . On December 13, 2004 , the Company entered into an agreement to form an unconsolidated trust which issued $5,000 of trust preferred securities in a transaction that closed on December 16, 2004 . The net proceeds from the offering were used to purchase $5,155 of junior subordinated debentures (“Debentures”) of the Company with a stated maturity date of February 23, 2035 . The Debentures are the sole assets of the trust. The trust preferred securities are mandatorily redeemable upon maturity, or upon earlier redemption as provided in the indenture. The Company has the right to redeem the Debentures in whole (but not in part) on or after specific dates, at a redemption price specified in the indenture plus any accrued but unpaid interest through the redemption date. Interest accrues at the rate of three-month LIBOR plus 2.4% for a rate of 4.73% as of June 30, 2018 , with interest paid quarterly starting February 16, 2005 . The Bank has the ability to borrow short-term from the Federal Reserve Bank Discount Window. At June 30, 2018 and 2017 there were no amounts outstanding and the available borrowings from this source were $917,017 and $1,251,526 , respectively. The 2018 available borrowings would be collateralized by residential real estate loans, certain C&I loans, and mortgage-backed securities totaling $1,230,054 and $1,543,751 , respectively. The Bank has additional unencumbered collateral that could be pledged to the Federal Reserve Bank Discount Window to increase borrowing liquidity. The Bank has federal funds lines of credit with two major banks totaling $35,000 . At June 30, 2018 and 2017 the Bank had no |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision for income taxes is as follows: At June 30, (Dollars in thousands) 2018 2017 2016 Current: Federal $ 50,170 $ 74,053 $ 67,773 State 20,084 26,120 24,478 70,254 100,173 92,251 Deferred: Federal 15,509 (1,886 ) (5,363 ) State 1,525 (334 ) (1,284 ) 17,034 (2,220 ) (6,647 ) Total $ 87,288 $ 97,953 $ 85,604 The differences between the statutory federal income tax rate and the effective tax rates are summarized as follows: At June 30, 2018 2017 2016 Statutory federal tax rate 28.10 % 35.00 % 35.00 % Increase (decrease) resulting from: State taxes—net of federal tax benefit 7.85 % 7.23 % 7.31 % Tax reform deferred tax remeasurement 3.83 % — % — % Cash surrender value (0.02 )% (0.03 )% (0.03 )% Tax credits (2.38 )% (0.19 )% (0.18 )% Non-taxable income (0.19 )% (0.28 )% (0.36 )% Excess benefit RSU vesting (1.00 )% — % — % Other 0.23 % 0.37 % 0.04 % Effective tax rate 36.42 % 42.10 % 41.78 % The components of the net deferred tax asset are as follows: At June 30, (Dollars in thousands) 2018 2017 Deferred tax assets: Allowance for loan and lease losses and charge-offs $ 15,829 $ 18,845 State taxes 2,164 6,893 Stock-based compensation expense 3,432 2,703 Unrealized net (gains) losses on securities 225 (385 ) Deferred bonus / vacation 761 959 Securities impaired — 8,395 Deferred loan fees 1,372 2,377 Total deferred tax assets 23,783 39,787 Deferred tax liabilities: FHLB stock dividend (833 ) (1,181 ) Other assets—prepaids (1,513 ) (1,363 ) Depreciation and amortization (3,480 ) (2,902 ) Total deferred tax liabilities (5,826 ) (5,446 ) Net deferred tax asset $ 17,957 $ 34,341 The Company establishes a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of June 30, 2018 and 2017 , the Company believes that it will have sufficient earnings to realize its deferred tax asset and has not provided an allowance. The following is a reconciliation of the beginning and ending amount of unrecognized tax positions for the periods presented: (Dollars in thousands) 2018 2017 2016 Balance—beginning of period $ 865 $ 880 $ 779 Additions—current year tax positions 142 180 181 Additions—prior year tax positions 149 17 — Reductions—prior year tax positions (21 ) (212 ) (80 ) Total liability for unrecognized tax positions—end of period $ 1,135 $ 865 $ 880 The Company is subject to federal income tax and income tax of state taxing authorities. The Company’s federal income tax returns for the years ended June 30, 2015 , 2016 , and 2017 and its state taxing authorities income tax returns for the years ended June 30, 2014 , 2015 , 2016 and 2017 are open to audit under the statutes of limitations by the Internal Revenue Service and state taxing authorities. As a result of legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”) that was enacted on December 22, 2017, during the quarter ended December 31, 2017, the Company revised its estimated annual effective rate to reflect a change in the federal statutory rate from 35.0% to 21.0%. The Tax Act makes broad and complex changes to the U.S. tax code that affect the Company’s fiscal year ended June 30, 2018, including reducing the U.S. federal corporate statutory tax rate to 21.0% beginning January 1, 2018, which results in a blended federal corporate statutory tax rate of 28.1% for the Company’s fiscal year ended June 30, 2018 that is based on the applicable tax rates before and after the Tax Act and the number of days in the fiscal year. During the quarter ended December 31, 2017, the Company revalued the deferred tax balance to reflect the new corporate tax rate, which resulted in a decrease in net deferred tax assets of $9,189 . As a result, income tax expense reported for the fiscal year ended June 30, 2018 was adjusted to reflect the effects of the change in the tax law and the application of the newly enacted rates to existing deferred balances. The SEC has issued Staff Accounting Bulletin (“SAB”) No. 118, which permits the recording of provision amounts related to the impact of the Tax Act during a measurement period, which is not to exceed one year from the enactment date of the Tax Act. The Company has no t recorded provision amounts for the other provisions of the Tax Act, as the Company continues to analyze the impacts of the Act. The Company is still analyzing the existing officer’s compensation plans to determine if they qualify for the grandfather rules with respect to DTAs on the books (for plans in existence as of November 2, 2017). Additionally, the Company received tax credits for the year ended June 30, 2018. These tax credits reduced the effective tax rate by approximately 2.38% . Lastly, the Company adopted ASU 2016-09 effective July 1, 2017. As a result of the adoption, the Company recorded $2.4 million of income tax benefits for the fiscal year ended June 30, 2018 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION On October 22, 2015, the stockholders of the Company approved and in November 2015 the Company’s Board of Directors adopted an amendment to the Company’s certificate of incorporation (the “Amendment”) to increase the number of authorized shares of common stock available for issuance from 50,000,000 to 150,000,000 shares. The purpose for the Amendment was to accommodate a forward stock split through a stock dividend whereby each share of common stock would effectively be split into four shares of common stock (the “Stock Split”). On October 26, 2015, the Board of Directors approved the Stock Split. The Company issued a dividend of three shares of common stock for every one share issued and outstanding as of November 6, 2015. The stock dividend was paid on November 17, 2015, and BOFI common stock began trading on a split-adjusted basis on November 18, 2015. Common stock share, per-share, option and restricted stock unit amounts for the fiscal year ended June 30, 2015 and prior periods presented have been retroactively restated to reflect the effects of the Stock Split. The Company has two equity incentive plans, the 2014 Stock Incentive Plan (“2014 Plan”) and the 2004 Stock Incentive Plan (“2004 Plan” and collectively, the “Plans”), which provide 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 Plans are 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 common stock. The Plans require that option exercise prices be not less than fair market value per share of common stock on the option grant date for incentive and non-qualified options. The options issued under the Plans generally vest in between three and five years. Option expiration dates are established by the Plans’ administrator but may not be later than ten years after the date of the grant. 2004 Stock Incentive Plan . In October 2004 , the Company’s Board of Directors and the stockholders approved the 2004 Plan. In November 2007 , the 2004 Plan was amended and approved by the Company’s stockholders. The maximum number of shares of common stock available for issuance under the 2004 Plan is 14.8% of the Company’s outstanding common stock measured from time to time. In addition, the number of shares of the Company’s common stock reserved for issuance will also automatically increase by an additional 1.5% on the first day of each of four fiscal years starting July 1, 2007 . With the stockholders approving the 2014 Plan in October 2014, no further awards will be made under the 2004 Plan and the 2004 Plan will remain in effect only so long as awards made thereunder remain outstanding. 2014 Stock Incentive Plan . In September and October 2014, the Company’s Board of Directors and stockholders approved the 2014 Plan, respectively. The maximum number of shares of common stock available for issuance under the 2014 Plan is 3,680,000 . Stock Options . A summary of stock option activity under the Plans during the periods indicated is presented below: Number of Shares 1 Weighted-Average Exercise Price Per Share 1 Outstanding—June 30, 2015 82,400 $ 1.84 Granted — — Exercised (82,400 ) 1.84 Canceled — — Outstanding—June 30, 2016 — $ — Granted — — Exercised — — Canceled — — Outstanding—June 30, 2017 — $ — Granted — $ — Exercised — $ — Canceled — $ — Outstanding—June 30, 2018 — $ — Options exercisable—June 30, 2016 — $ — Options exercisable—June 30, 2017 — $ — Options exercisable—June 30, 2018 — $ — 1 Amounts have been retroactively restated for the fiscal year ended June 30, 2015 presented to reflect the four -for-one forward split of the Company’s common stock effected in the form of a stock dividend that was distributed on November 17, 2015. The aggregate intrinsic value of options exercised or converted during the years ended June 30, 2018, 2017 and 2016 was $0 , $0 , and $2,656 , respectively. Restricted Stock Units . During the fiscal year ended June 30, 2016 , the Company’s Board of Directors granted 615,834 restricted stock units to employees and directors. The chief executive officer received 288,000 restricted stock units, which vest ratably on each of the four fiscal year ends after the issue date. All other restricted stock unit awards granted during the year ended June 30, 2016 , vest over three years, one-third on each anniversary of the grant date and 596,871 shares were vested and issued and 94,325 shares were canceled as of June 30, 2016 . During the fiscal year ended June 30, 2017 , the Company’s Board of Directors granted 555,611 restricted stock units to employees and directors. The chief executive officer received 288,000 restricted stock units, which vest ratably on each of the four fiscal year ends after the issue date. All other restricted stock unit awards granted during the year ended June 30, 2017 , vest over three years, one-third on each anniversary of the grant date and 570,764 shares were vested and issued and 92,251 shares were canceled as of June 30, 2017 . During the fiscal year ended June 30, 2018 , the Company’s Board of Directors granted 587,022 restricted stock units to employees and directors. The chief executive officer received 160,000 restricted stock units, which vest ratably on each of the four fiscal year ends after the issue date. All other restricted stock unit awards granted during the year ended June 30, 2018 , vest over three years, one-third on each anniversary of the grant date and 629,755 shares were vested and issued and 123,858 shares were canceled as of June 30, 2018 . Effective July 1, 2017 the Company entered into an employment agreement with its Chief Executive Officer (the “Agreement”) that authorizes an award of restricted stock units (the “RSU award”) to the Chief Executive Officer. The RSU award is an equity-based award and carries a service condition and a market condition that incorporates a measurement of the Company’s total stock return to shareholders in comparison to the total stock return of the ABA Nasdaq Community Bank Index. The accounting grant date of the RSU award is July 1, 2017 and expensing of the RSU award began on this date at the fair value measurement amount as determined by the Company’s valuation process. The Company utilized a Monte Carlo simulation to estimate the value of path-dependent options and determined the fair value of the RSU award as of July 1, 2017 to be $20.5 million , which will vest in five tranches over a total period of nine years. Unrecognized compensation expense to be expensed over the remaining eight years related to the non-vested RSU award is $17.2 million at June 30, 2018 and is included in the table below. The actual RSU award in future years is determined by the actual performance of Company’s total stock return in comparison to the total stock return of the ABA Nasdaq Community Bank Index. The Company’s income before income taxes and net income for the years ended June 30, 2018 , 2017 and 2016 included stock compensation expense of $20,399 , $14,535 and $11,326 , respectively. The income tax benefit was $7,429 , $6,119 and $4,509 , respectively. The Company recognizes compensation expense based upon the grant-date fair value divided by the service period between each vesting date. At June 30, 2018 , expense related to stock option grants has been fully recognized. At June 30, 2018 unrecognized compensation expense related to non-vested awards aggregated to $40,588 and is expected to be recognized in future periods as follows: (Dollars in thousands) Stock Award Compensation Expense For the fiscal year ending June 30: 2019 $ 18,592 2020 11,871 2021 5,351 2022 2,226 2023 1,382 Thereafter 1,166 Total $ 40,588 The following table presents the status and changes in restricted stock units for the periods indicated: Restricted Stock Units 1 Weighted-Average Grant-Date Fair Value 1 Non-vested balance at June 30, 2015 1,135,088 $ 17.01 Granted 615,834 26.60 Vested (536,528 ) 16.14 Canceled (154,668 ) 18.70 Non-vested balance at June 30, 2016 1,059,726 $ 22.53 Granted 843,611 21.13 Vested (570,764 ) 20.86 Canceled (92,251 ) 20.26 Non-vested balance at June 30, 2017 1,240,322 $ 22.52 Granted 747,022 26.53 Vested (629,755 ) 22.55 Canceled (123,858 ) 23.38 Non-vested balance at June 30, 2018 1,233,731 $ 24.84 1 Amounts have been retroactively restated for the period June 30, 2015 through November 17, 2015 to reflect the four -for-one forward split of the Company’s common stock effected in the form of a stock dividend that was distributed on November 17, 2015. The total fair value of shares vested during the years ended June 30, 2018 , 2017 and 2016 was $20,866 , $12,941 and $13,256 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Common Stock . Changes in common stock issued and outstanding were as follows: At June 30, 2018 2017 2016 Issued Outstanding Issued Outstanding Issued 1 Outstanding 1 Beginning of year: 65,115,932 63,536,244 64,513,494 63,219,392 63,145,364 62,075,004 Common stock issued through option exercise or exchange — — — — 82,400 82,400 Common stock issued through public offering — — — — 723,808 723,808 Repurchase of treasury stock — (1,233,491 ) — — — — Common stock issued through grants of restricted stock units 680,128 385,311 602,438 316,852 561,922 338,180 End of year: 65,796,060 62,688,064 65,115,932 63,536,244 64,513,494 63,219,392 1 Common stock amounts have been retroactively restated for the period July 1, 2015 through November 16, 2015 to reflect the four -for-one forward split of the Company’s common stock effected in the form of a stock dividend that was distributed on November 17, 2015. The par value of common stock remains unchanged at $0.01 per share after the aforementioned forward stock split. On February 23, 2015, we entered into an ATM Equity Distribution Agreement with FBR Capital Markets & Co., Sterne, Agee & Leach, Inc. and Raymond James & Associates, Inc. (the “2015 Distribution Agents”) pursuant to which we may issue and sell through the 2015 Distribution Agents from time to time shares of our common stock in at the market offerings with an aggregate offering price of up to $50,000 (the “2015 ATM Offering”). The sales of shares of our common stock under the Equity Distribution Agreement are to be made in “at the market” offerings as defined in Rule 415 of the Securities Act of 1933, as amended, including sales made directly on the NASDAQ Global Select Market (the principal existing trading market for our common stock), or sales made through a market maker or any other trading market for our common stock, or (with our prior consent) in privately negotiated transactions at negotiated prices. The aggregate compensation payable to the 2015 Distribution Agents under the Distribution Agreement will not exceed 2.5% of the gross sales price of the shares sold under the agreement. We also agreed to reimburse the 2015 Distribution Agents for up to $75 in their expenses through September 30, 2015 and up to $25 thereafter and provided the 2015 Distribution Agents with customary indemnification rights. In February 2015, we commenced sales of common stock through the 2015 ATM Offering. The details of the shares of common stock sold through the 2015 ATM Offering through December 31, 2015 are as follows (dollars in thousands, except per share data): Distribution Agent Month Weighted Average Per Share Price 1 Number of 1 Net Proceeds Compensation to Distribution Agent FBR Capital Markets & Co. February 2015 $ 22.68 40,000 $ 884 $ 23 FBR Capital Markets & Co. March 2015 $ 23.38 518,528 $ 11,818 $ 303 FBR Capital Markets & Co. April 2015 $ 23.10 265,088 $ 5,971 $ 153 FBR Capital Markets & Co. May 2015 $ 23.69 122,800 $ 2,837 $ 73 FBR Capital Markets & Co. June 2015 $ 24.69 251,592 $ 6,057 $ 155 FBR Capital Markets & Co. July 2015 $ 27.37 280,000 $ 7,471 $ 192 FBR Capital Markets & Co. August 2015 $ 32.81 40,000 $ 1,279 $ 33 FBR Capital Markets & Co. September 2015 $ 30.99 240,000 $ 7,252 $ 186 FBR Capital Markets & Co. October 2015 $ 32.43 163,808 $ 5,181 $ 132 1 Amounts have been retroactively restated to reflect the four -for-one forward split of the Company’s common stock effected in the form of a stock dividend that was distributed on November 17, 2015. As of December 31, 2015, the total gross sales were $50,000 , which completed this offering. Common Stock Repurchases. On March 17, 2016, the Board of Directors of the Company, authorized a program to repurchase up to $100 million of common stock. The new share repurchase authorization replaces the previous share repurchase plan approved on July 5, 2005. The Company may repurchase shares on the open market or through privately negotiated transactions at times and prices considered appropriate, at the discretion of the Company, and subject to its assessment of alternative uses of capital, stock trading price, general market conditions and regulatory factors. The repurchase program does not obligate the Company to acquire any specific number of shares. The share repurchase program will continue in effect until terminated by the Board of Directors of the Company. As of June 30, 2018 , the Company has repurchased a total of $35.2 million , or 1,233,491 common shares at an average price of $28.49 per share with $64.8 million remaining under the current board authorized stock repurchase program. The Company accounts for treasury stock using the cost method as a reduction of shareholders’ equity in the accompanying unaudited condensed consolidated financial statements. Preferred Stock . On October 28, 2003, the Company commenced a private placement of Series A-6% Cumulative Nonparticipating Perpetual Preferred Stock (the “Series A preferred stock”). The rights, preferences and privileges of the Series A preferred stock were established in a certificate filed by the Company with the State of Delaware on October 27, 2003, and generally include the holder’s right to a six percent ( 6% ) per annum cumulative dividend payable quarterly and the Company’s right to redeem some or all of the remaining 515 shares at $10,000 face value outstanding shares. The holder’s right to convert to the Company’s common stock expired on January 1, 2009. During the fiscal year ended June 30, 2004 , the Company issued $6,750 of Series A preferred stock, convertible through January 1, 2009 , representing 675 shares at $10,000 face value, less issuance costs of $113 . Before the expiration of the conversion right, holders of the Series A converted 160 shares of Series A preferred to common stock. The Company has declared dividends to holders of its Series A preferred stock totaling $309 for each of the years ended June 30, 2018 , 2017 , and 2016 |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The following table presents the calculation of basic and diluted EPS: At June 30, (Dollars in thousands, except per share data) 2018 2017 2016 Earnings Per Common Share Net income $ 152,411 $ 134,740 $ 119,291 Preferred stock dividends (309 ) (309 ) (309 ) Net income attributable to common shareholders $ 152,102 $ 134,431 $ 118,982 Average common shares issued and outstanding 63,058,854 63,358,886 62,909,411 Average unvested RSUs (as revised for 2017 and 2016) 77,378 297,656 687,848 Total qualifying shares (as revised for 2017 and 2016) 63,136,232 63,656,542 63,597,259 Earnings per common share (as revised for 2017 and 2016) $ 2.41 $ 2.11 $ 1.87 Diluted Earnings Per Common Share Dilutive net income attributable to common shareholders $ 152,102 $ 134,431 $ 118,982 Average common shares issued and outstanding (as revised for 2017 and 2016) 63,136,232 63,656,542 63,597,259 Dilutive effect of stock options — — 5,845 Dilutive effect of average unvested RSUs (as revised for 2017 and 2016) 1,010,988 258,558 69,176 Total dilutive common shares outstanding (as revised for 2017 and 2016) 64,147,220 63,915,100 63,672,280 Diluted earnings per common share (as revised for 2017 and 2016) $ 2.37 $ 2.10 $ 1.87 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2018 | |
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 Company pays property taxes, insurance and maintenance expenses related to its leases. Rent expense for the years ended June 30, 2018 , 2017 , and 2016 was $5,429 , $5,108 , and $3,901 , respectively. Pursuant to the terms of these non-cancelable lease agreements in effect at June 30, 2018 , future minimum lease payments are as follows: (Dollars in thousands) Future minimum lease payments 2019 $ 4,573 2020 6,652 2021 6,266 2022 7,415 2023 7,667 Thereafter 54,551 Total $ 87,124 Litigation. On October 15, 2015, the Company, its Chief Executive Officer and its Chief Financial Officer were named defendants in a putative class action lawsuit styled Golden v. BofI Holding, Inc., et al, and brought in United States District Court for the Southern District of California (the “Golden Case”). On November 3, 2015, the Company, its Chief Executive Officer and its Chief Financial Officer were named defendants in a second putative class action lawsuit styled Hazan v. BofI Holding, Inc., et al, and also brought in the United States District Court for the Southern District of California (the “Hazan Case”). On February 1, 2016, the Golden Case and the Hazan Case were consolidated as In re BofI Holding, Inc. Securities Litigation, Case #: 3:15-cv-02324-GPC-KSC (the “Class Action”), and the Houston Municipal Employees Pension System was appointed lead plaintiff. The plaintiffs allege that the Company and other named defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by failing to disclose wrongful conduct that was alleged in a complaint filed in connection with a wrongful termination of employment lawsuit filed on October 13, 2015 (the “Employment Matter”) and that as a result the Company’s statements regarding its internal controls, as well as portions of its financial statements, were false and misleading. On March 21, 2018, the Court entered a final order dismissing the Class Action with prejudice. On March 28, 2018, the plaintiff filed a notice of appeal. On April 3, 2017, the Company, its Chief Executive Officer and its Chief Financial Officer were named defendants in a putative class action lawsuit styled Mandalevy v. BofI Holding, Inc., et al, and brought in United States District Court for the Southern District of California (the “Mandalevy Case”). The Mandalevy Case seeks monetary damages and other relief on behalf of a putative class that has not been certified by the Court. The complaint in the Mandalevy Case (the “Mandalevy Complaint”) alleges a class period that differs from that alleged in the First Class Action, and that the Company and other named defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by failing to disclose wrongful conduct that was alleged in a March 2017 media article. The Mandalevy Case has not been consolidated into the First Class Action. The Company and the other named defendants dispute the allegations of wrongdoing advanced by the plaintiffs in the Class Action, the Mandalevy Case, and in the Employment Matter, as well as those plaintiffs’ statement of the underlying factual circumstances, and are vigorously defending each case. In addition to the First Class Action and the Mandalevy Case, two separate shareholder derivative actions were filed in December, 2015, purportedly on behalf of the Company. The first derivative action, Calcaterra v. Garrabrants, et al , was filed in the United States District Court for the Southern District of California on December 3, 2015. The second derivative action, Dow v. Micheletti, et al , was filed in the San Diego County Superior Court on December 16, 2015. A third derivative action, DeYoung v. Garrabrants, et al , was filed in the United States District Court for the Southern District of California on January 22, 2016, a fourth derivative action, Yong v. Garrabrants, et al , was filed in the United States District Court for the Southern District of California on January 29, 2016, a fifth derivative action, Laborers Pension Trust Fund of Northern Nevada v. Allrich et al , was filed in the United States District Court for the Southern District of California on February 2, 2016, and a sixth derivative action, Garner v. Garrabrants, et al , was filed in the San Diego County Superior Court on August 10, 2017. Each of these six derivative actions names the Company as a nominal defendant, and certain of its officers and directors as defendants. Each complaint sets forth allegations of breaches of fiduciary duties, gross mismanagement, abuse of control, and unjust enrichment against the defendant officers and directors. The plaintiffs in these derivative actions seek damages in unspecified amounts on the Company’s behalf from the officer and director defendants, certain corporate governance actions, and an award of their costs and attorney’s fees. The United States District Court for the Southern District of California ordered the four above-referenced derivative actions pending before it to be consolidated and appointed lead counsel in the consolidated action. On June 7, 2018, the Court entered an order granting defendant’s motion for judgment on the pleadings, but giving the plaintiffs limited leave to amend by June 28, 2018. The plaintiffs failed to file an amended complaint, and instead plaintiffs filed on June 28, 2018 a motion to stay the case pending resolution of the securities class action and Employment Matter. On August 10, 2018, defendants filed an opposition to plaintiffs’ motion. The two derivative actions pending before the San Diego County Superior Court have been consolidated and have been stayed by agreement of the parties. |
OFF-BALANCE-SHEET ACTIVITIES
OFF-BALANCE-SHEET ACTIVITIES | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
OFF-BALANCE-SHEET ACTIVITIES | OFF-BALANCE-SHEET ACTIVITIES Credit-Related Financial Instruments . The Company is a party to credit-related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are commitments to extend credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance-sheet instruments. At June 30, 2018 , the Company had fixed and variable rate commitments to originate or purchase loans and leases with an aggregate outstanding principal balance of $86,453 and $720,582 for total commitments to originate of $785,980 . For June 30, 2018 , the Company’s fixed rate commitments to originate had a weighted-average rate of 4.68% . For June 30, 2017 , the Company had fixed and variable rate commitments to originate or purchase loans and leases with an aggregate outstanding principal balance of $78,113 and $417,028 for total commitments to originate of $495,141 . For June 30, 2017 , the Company’s fixed rate commitments to originate had a weighted average rate of 3.81% . At June 30, 2018 , the Company also had fixed and variable rate commitments to sell loans with an aggregate outstanding principal balance of $86,453 and $1,131 for total commitments to sell of $87,584 . For June 30, 2017 , the Company had fixed and variable rate commitments to sell of $59,786 and $6,259 for total commitments to sell of $66,045 . At June 30, 2018 and 2017 , 61.9% and 75.4% of the commitments to originate loans are matched with commitments to sell related to conforming single family loans classified as held for sale, respectively. |
MINIMUM REGULATORY CAPITAL REQU
MINIMUM REGULATORY CAPITAL REQUIREMENTS | 12 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift [Abstract] | |
MINIMUM REGULATORY CAPITAL REQUIREMENTS | MINIMUM REGULATORY CAPITAL REQUIREMENTS The Company and Bank are subject to regulatory capital adequacy requirements promulgated by federal bank regulatory agencies. Failure by the Company or Bank to meet minimum capital requirements could result in certain mandatory and discretionary actions by regulators that could have a material adverse effect on the consolidated financial statements. The Federal Reserve establishes capital requirements for the Company and the OCC has similar requirements for the Bank. The following tables present regulatory capital information for the Company and Bank. Information presented for June 30, 2018 , reflects the Basel III capital requirements that became effective January 1, 2015 for both the Company and Bank. Under these capital requirements and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company and Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and Bank’s capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors. Quantitative measures established by regulation require the Company and Bank to maintain certain minimum capital amounts and ratios. Federal bank regulators require the Company and Bank maintain minimum ratios of core capital to adjusted average assets of 4.0% , common equity tier 1 capital to risk-weighted assets of 4.5% , tier 1 capital to risk-weighted assets of 6.0% and total risk-based capital to risk-weighted assets of 8.0% . At June 30, 2018 , the Company and Bank met all the capital adequacy requirements to which they were subject. At June 30, 2018 , the Company and Bank were “well capitalized” under the regulatory framework for prompt corrective action. To be “well capitalized,” the Company and Bank must maintain minimum leverage, common equity tier 1 risk-based, tier 1 risk-based and total risk-based capital ratios of at least 5.0% , 6.5% , 8.0% and 10.0% , respectively. Management believes that no conditions or events have occurred since June 30, 2018 that would materially adversely change the Company’s and Bank’s capital classifications. From time to time, we may need to raise additional capital to support the Company’s and Bank’s further growth and to maintain their “well capitalized” status. The Bank’s capital amounts, capital ratios and capital requirements under Basel III were as follows: BofI Holding, Inc. BofI Federal Bank “Well Minimum Capital (Dollars in thousands) June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Regulatory Capital: Tier 1 $ 893,338 $ 833,759 $ 837,985 $ 804,317 Common equity tier 1 $ 888,275 $ 828,696 $ 837,985 $ 804,317 Total capital (to risk-weighted assets) $ 993,650 $ 925,720 $ 887,297 $ 845,278 Assets: Average adjusted $ 9,450,894 $ 8,380,909 $ 9,509,891 $ 8,374,509 Total risk-weighted $ 6,694,963 $ 5,651,522 $ 6,686,634 $ 5,645,112 Regulatory Capital Ratios: Tier 1 leverage (core) capital to adjusted average assets 9.45 % 9.95 % 8.88 % 9.60 % 5.00 % 4.00 % Common equity tier 1 capital (to risk-weighted assets) 13.27 % 14.66 % 12.53 % 14.25 % 6.50 % 4.50 % Tier 1 capital (to risk-weighted assets) 13.34 % 14.75 % 12.53 % 14.25 % 8.00 % 6.00 % Total capital (to risk-weighted assets) 14.84 % 16.38 % 13.27 % 14.97 % 10.00 % 8.00 % Beginning January 1, 2016, Basel III implements a requirement for all banking organizations to maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer will be exclusively composed of common equity tier 1 capital, and it applies to each of the three risk-based capital ratios but not the leverage ratio. At June 30, 2018 , the Company and Bank are in compliance with the capital conservation buffer requirement. The three risk-based capital ratios will increase by 0.625% each year through 2019, at which point, the common equity tier 1 risk based, tier 1 risk-based and total risk-based capital ratios will be 7.0% , 8.5% and 10.5% , respectively. In connection with the approval of the acquisition of the H&R Block Bank deposits on September 1, 2015, the Bank executed a letter agreement with the OCC (the “letter agreement”) to maintain its Tier 1 leverage capital ratio at a minimum of 8.50% for the quarters ended in June, September and December and a minimum of 8.00% for the quarter ended in March, subject to certain adjustments. At June 30, 2018 |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Jun. 30, 2018 | |
Compensation Related Costs [Abstract] | |
EMPLOYEE BENEFIT PLAN | EMPLOYEE BENEFIT PLAN The Company has a 401(k) plan whereby substantially all of its employees may participate in the plan. Employees may contribute up to 100% of their compensation subject to certain limits based on federal tax laws. The Company has implemented an employer matching program whereby employer contributions are made to the 401(k) plan in an amount equal to 50% of the first 8% of an employee’s designated deferral of their eligible compensation. For the fiscal years ended June 30, 2018 , 2017 , and 2016 , expense attributable to the plan amounted to $1,501 , $1,288 , and $801 |
PARENT-ONLY CONDENSED FINANCIAL
PARENT-ONLY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Jun. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT-ONLY CONDENSED FINANCIAL INFORMATION | PARENT-ONLY CONDENSED FINANCIAL INFORMATION The following BofI Holding, Inc. (Parent company only) financial information should be read in conjunction with the consolidated financial statements of the Company and the other notes to the consolidated financial statements: BofI Holding, Inc. (Parent Company Only) CONDENSED BALANCE SHEETS At June 30, (Dollars in thousands) 2018 2017 ASSETS Cash and cash equivalents $ 108,085 $ 81,356 Loans 20 29 Investment securities — 13 Other assets 10,238 5,250 Investment in subsidiary 905,159 804,803 Total assets $ 1,023,502 $ 891,451 LIABILITIES AND STOCKHOLDERS’ EQUITY Subordinated notes and debentures $ 54,521 $ 54,313 Accrued interest payable 389 339 Accounts payable and accrued liabilities 8,079 2,552 Total liabilities 62,989 57,204 Stockholders’ equity 960,513 834,247 Total liabilities and stockholders’ equity $ 1,023,502 $ 891,451 BofI Holding, Inc. (Parent Company Only) STATEMENTS OF INCOME Year Ended June 30, (Dollars in thousands) 2018 2017 2016 Interest income $ 479 $ 621 $ 136 Interest expense 3,648 3,613 1,275 Net interest (expense) income (3,169 ) (2,992 ) (1,139 ) Provision for loan losses — — — Net interest (expense) income, after provision for loan losses (3,169 ) (2,992 ) (1,139 ) Non-interest income (loss) 153 — 339 Non-interest expense and tax benefit 11,825 8,561 7,345 Income (loss) before dividends from subsidiary and equity in undistributed income of subsidiary (14,841 ) (11,553 ) (8,145 ) Dividends from subsidiary 69,800 6,400 2,900 Equity in undistributed earnings of subsidiary 97,452 139,893 124,536 Net income $ 152,411 $ 134,740 $ 119,291 Comprehensive income $ 151,311 $ 142,531 $ 121,386 BofI Holding, Inc. (Parent Company Only) STATEMENT OF CASH FLOWS Year Ended June 30, (Dollars in thousands) 2018 2017 2016 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 152,411 $ 134,740 $ 119,291 Adjustments to reconcile net income to net cash used in operating activities: Accretion of discounts on securities (2 ) — (50 ) Amortization of borrowing costs 208 208 72 Impairment charge on securities — (1 ) — Accretion of discounts on loans — — (6 ) Net gain on investment securities (153 ) — — Gain on sales of loans held for sale — — (339 ) Stock-based compensation expense 20,399 14,535 11,326 Tax effect from exercise of common stock options and vesting of restricted stock grants — — — Equity in undistributed earnings of subsidiary (97,452 ) (139,893 ) (124,533 ) Decrease (increase) in other assets (4,938 ) 469 (1,361 ) Increase (decrease) in other liabilities 5,528 316 (1,637 ) Net cash provided by (used in) operating activities 76,001 10,374 2,763 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of available-for-sale securities 162 — 531 Proceeds from principal repayments on loans 9 8 8 Investment in subsidiary (4,000 ) — (17,000 ) Net cash used in investing activities (3,829 ) 8 (16,461 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from exercise of common stock options — — 151 Proceeds from issuance of common stock — — 21,120 Tax effect from exercise of common stock options and vesting of restricted stock units 7 432 2,531 Tax payments related to the settlement of restricted stock units (9,958 ) (6,532 ) (6,141 ) Repurchase of treasury stock (35,183 ) — — Proceeds from issuance of subordinated notes — — 51,000 Cash dividends on preferred stock (309 ) (309 ) (309 ) Net cash provided by (used in) financing activities (45,443 ) (6,409 ) 68,352 NET CHANGE IN CASH AND CASH EQUIVALENTS 26,729 3,973 54,654 CASH AND CASH EQUIVALENTS—Beginning of year 81,356 77,383 22,729 CASH AND CASH EQUIVALENTS—End of year $ 108,085 $ 81,356 $ 77,383 |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Jun. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) Quarters Ended in Fiscal Year 2018 (Dollars in thousands, except per share data) June 30, March 31, December 31, September 30, Interest and dividend income $ 118,898 $ 144,880 $ 107,785 $ 103,511 Interest expense 31,850 28,197 23,572 22,961 Net interest income 87,048 116,683 84,213 80,550 Provision for loan losses 3,900 16,900 4,000 1,000 Net interest income after provision for loan losses 83,148 99,783 80,213 79,550 Non-interest income 16,977 23,525 17,099 13,340 Non-interest expense 49,673 45,434 40,809 38,020 Income before income taxes 50,452 77,874 56,503 54,870 Income tax expense 13,335 26,621 24,845 22,487 Net income $ 37,117 $ 51,253 $ 31,658 $ 32,383 Net income attributable to common stock $ 37,040 $ 51,176 $ 31,580 $ 32,306 Basic earnings per common share (revised) $ 0.59 $ 0.82 $ 0.50 $ 0.51 Diluted earnings per common share (revised) $ 0.58 $ 0.80 $ 0.49 $ 0.50 Quarters Ended in Fiscal Year 2017 (Dollars in thousands, except per share data) June 30, March 31, December 31, September 30, Interest and dividend income $ 98,543 $ 106,962 $ 94,301 $ 87,480 Interest expense 20,016 18,403 17,940 17,700 Net interest income 78,527 88,559 76,361 69,780 Provision for loan losses 200 4,862 4,100 1,900 Net interest income after provision for loan losses 78,327 83,697 72,261 67,880 Non-interest income 13,533 23,168 16,700 14,732 Non-interest expense 35,979 35,448 33,300 32,878 Income before income taxes 55,881 71,417 55,661 49,734 Income tax expense 23,332 30,423 23,361 20,837 Net income $ 32,549 $ 40,994 $ 32,300 $ 28,897 Net income attributable to common stock $ 32,472 $ 40,917 $ 32,222 $ 28,820 Basic earnings per common share (revised) $ 0.51 $ 0.64 $ 0.51 $ 0.45 Diluted earnings per common share (revised) $ 0.51 $ 0.64 $ 0.50 $ 0.45 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT On August 3, 2018, the Company announced that the Bank entered into a purchase and assumption agreement (“Agreement”) with Nationwide Bank to acquire substantially all of the Nationwide deposits at the time of closing, estimated at approximately $3 billion in deposits, including $1 billion in checking, savings and money market accounts and $2 billion |
ORGANIZATIONS AND SUMMARY OF 30
ORGANIZATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation. The consolidated financial statements include the accounts of BofI Holding, Inc. and its wholly owned subsidiary, BofI Federal Bank (collectively, the “Company”). All significant intercompany balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates. In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan and lease losses, the assessment for other-than-temporary impairment on investment securities and the fair value of certain financial instruments. |
Cash and Cash Equivalents | Cash and Cash Equivalents . The Bank’s cash, due from banks, money market mutual funds and federal funds sold, all of which have original maturities within 90 days |
Restrictions on Cash | Restrictions on Cash. Federal Reserve Board regulations require depository institutions to maintain certain minimum reserve balances. |
Interest Rate Risk | Interest Rate Risk. The Bank’s assets and liabilities are generally monetary in nature and interest rate changes have an effect on the Bank’s performance. The Bank decreases the effect of interest rate changes on its performance by striving to match maturities and interest sensitivity between loans and deposits. A significant change in interest rates could have a material effect on the Bank’s results of operations. |
Concentration of Credit Risk | Concentration of Credit Risk . The Bank’s loan portfolio was collateralized by various forms of real estate with approximately 71.1% of the mortgage portfolio located in California at June 30, 2018 . The Company categorizes loans and leases into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans and leases individually by classifying the loans and leases as to credit risk. The Company uses the following definitions for risk ratings. Pass . Loans and leases classified as pass are well protected by the current net worth and paying capacity of the obligor or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner. Special Mention . Loans and leases classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease or of the institution’s credit position at some future date. Substandard . Loans and leases classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans and leases so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful . Loans and leases classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. |
Brand Partnership Products | Brand Partnership Products . Through its strategic partnerships division, the Bank has agreements with third-party service providers (“Program Managers”) possessing demonstrated expertise in managing programs involving marketing and processing financial products such as credit, debit, and prepaid cards, and small business and consumer loans. These relationships include the Company’s relationships with H&R Block, Inc., Netspend and BFS Capital, among others. As delineated by the related contracts, a Program Manager provides program management services in its areas of expertise subject to the Bank’s continuing control and active supervision of the subject program. Underwriting standards and credit decisioning remain with the Bank in all cases. Each of these relationships is designed to allow the Bank to leverage the Program Manager’s knowledge and experience to distribute program-related financial products to a broad and increasing base of customers. With respect to credit products, the Bank generally originates the resulting receivable for sale, but may, in its discretion, retain such receivable. The Bank performs extensive due diligence with respect to each Program Manager and program, and maintains a regimen of comprehensive risk management and strict compliance oversight with respect to all programs. Through our agreement with H&R Block, Inc. (“H&R Block”) and its wholly-owned subsidiaries the Bank provides H&R Block-branded financial products and services. The products and services that represent the primary focus and the majority of transactional volume that the Bank processes are described in detail below. The first product is Emerald Prepaid Mastercard ® services. The Bank entered into agreements to offer this product in August 2015. Under the agreements, the Bank is responsible for the primary oversight and control of the prepaid card programs of a wholly-owned subsidiary of H&R Block. The Bank holds the prepaid card customer deposits for those cards issued under the prepaid programs in non-interest bearing accounts and earns a fixed fee paid by H&R Block’s subsidiary for each automated clearing house (“ACH”) transaction processed through the prepaid card customer accounts. A portion of H&R Block’s customers use the Emerald Card as an option to receive federal and state income tax refunds. The prepaid customer deposits are included in non-interest bearing deposit liabilities on the balance sheet of the Company and the ACH fee income is included in the income statement under the line banking and service fees. The second product is Refund Transfer. The Bank entered into agreements to offer this product in August 2015. The Bank is responsible for the primary oversight and control of the refund transfer program of a wholly-owned subsidiary of H&R Block. The Bank opens a temporary bank account for each H&R Block customer who is receiving an income tax refund and elects to defer payment of his or her tax preparation fees. After the Internal Revenue Service and any state income tax authorities transfer the refund into the customer’s account, the net funds are transferred to the customer and the temporary deposit account is closed. The Bank earns a fixed fee paid by H&R Block for each of the H&R Block customers electing a Refund Transfer. The fees are earned primarily in the quarters ending March 31st and are included in the income statement under the line banking and service fees. The third product is Emerald Advance. The Bank entered into agreements to offer this product in August 2015. Under the agreements the Bank is responsible for the underwriting guidelines and credit policies for unsecured consumer lines of credit offered to H&R Block customers. The Bank offers and funds unsecured lines of credit to consumers primarily through the H&R Block tax preparation offices and earns interest income and fee income. The Bank retains 10% of the Emerald Advance and sells the remainder to H&R Block. The lines of credit are included in loans and leases on the balance sheet of the Company and the interest income and fee income are included in the income statement under the line loans and leases interest and dividend income. The fourth product is an interest-free Refund Advance loan. The Bank exclusively originated and funded all of H&R Block’s interest-free Refund Advance loans to tax preparation clients for the 2018 tax season. The Bank performed the credit underwriting, loan origination, and funding associated with the interest-free Refund Advance loans in the current tax season and received fees from H&R Block for operating the program. No fee is charged to the tax preparation client. Repayment of the Refund Advance loan is deducted from the client’s tax refund proceeds; if an insufficient refund to repay the Refund Advance loan is received, there is no recourse to the client, no negative credit reporting occurs in respect of the client and no collection efforts are made against the client. This agreement is an expansion of the services BofI provided to H&R Block in the 2017 tax season when the Bank participated through purchases of the loans with other providers in the Refund Advance loan program. During the 2017 tax season, the Bank purchased the Refund Advance loans from a third-party bank at a discount and recorded the accretion of the loan discount as interest income, reported on the income statement under the interest and dividend income line item. During the 2018 tax season, the Bank recorded the fees received from H&R Block as interest income on loans, reported on the income statement under the interest and dividend income line item. |
Securities | Securities . Debt securities are classified as held-to-maturity and carried at amortized cost when management has both the positive intent and ability to hold them to maturity. Debt securities are classified as available-for-sale when they might be sold before maturity. Trading securities refer to certain types of assets that banks hold for resale at a profit or when the Company elects to account for certain securities at fair value. Increases or decreases in the fair value of trading securities are recognized in earnings as they occur. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. During the quarter ended September 30, 2016, the Company elected to reclassify all of its held-to-maturity securities to available-for-sale. See Note 4 – “Securities” for further information. |
Loans and Leases | Loans and Leases . Loans and leases that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, deferred purchase premiums and discounts, deferred loan and lease origination fees and costs, and an allowance for loan and lease losses. Interest income is accrued on the unpaid principal balance. Premiums and discounts on loans purchased as well as loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method. The Company provides equipment financing to its customers through a variety of lease arrangements. The most common arrangement is a direct financing (capital) lease. For direct financing leases, lease receivables are recorded on the balance sheet but the leased property is not, although the Company generally retains legal title to the leased property until the end of each lease. Direct financing leases are stated at the net amount of minimum lease payments receivable, plus any unguaranteed residual value, less the amount of unearned income and net acquisition discount at the reporting date. Direct lease origination costs are amortized over the weighted average life of the lease portfolio. Leases acquired in an acquisition are initially measured and recorded at their fair value on the acquisition date. Purchase discounts or premiums on acquired leases are recognized as an adjustment to interest income over the contractual life of the leases using the effective interest method or taken into income when the related leases are paid off. Direct financing leases are subject to our allowance for loans and leases. Recognition of interest income on all portfolio segments is generally discontinued at the time the loan or lease is 90 days delinquent unless the loan and lease is well secured and in process of collection. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. |
Loans Held for Sale | Loans Held for Sale . U.S. government agency (“agency”) loans originated and intended for sale in the secondary market are carried at fair value. Net unrealized gains and losses are recognized through mortgage banking income in the income statement. The Bank sells its mortgage loans with either servicing released or servicing retained depending upon market pricing. Gains and losses on loan sales are recorded as mortgage banking income or other gains on sale, based on the difference between sales proceeds and carrying value. Non-agency loans held for sale are carried at the lower of cost or fair value. Loans that were originated with the intent and ability to hold for the foreseeable future (loans held in portfolio) but which have been subsequently designated as being held for sale for risk management or liquidity needs are carried at the lower of cost or fair value calculated using pools of loans with similar characteristics. There may be times when loans have been classified as held for sale and cannot be sold. Loans transferred to a long-term investment classification from held-for-sale are transferred at the lower of cost or market value on the transfer date. Any difference between the carrying amount of the loan and its outstanding principal balance is recognized as an adjustment to yield by the interest method. A loan cannot be classified as a long-term investment unless the Bank has both the ability and the intent to hold the loan for the foreseeable future or until maturity. |
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses . The allowance for loan and lease losses is maintained at a level estimated to provide for probable incurred losses in the loan and lease portfolio. Management determines the adequacy of the allowance based on reviews of individual loans and leases and pools of loans, recent loss experience, current economic conditions, the risk characteristics of the various categories of loans and other pertinent factors. This evaluation is inherently subjective and requires estimates that are susceptible to significant revision as more information becomes available. The allowance is increased by the provision for loan and lease losses, which is charged against current period operating results, and recoveries of loans and leases previously charged-off. The allowance is decreased by the amount of charge-offs of loans and leases deemed uncollectible. Allocations of the allowance may be made for specific loans and leases but the entire allowance is available for any loan or lease that, in management’s judgment, should be charged off. The allowance for loan and lease losses includes general reserves and may include specific reserves. Specific reserves may be provided for impaired loans and leases considered Troubled Debt Restructurings (“TDRs”). All other impaired loans and leases are written down through charge-offs to the fair value of collateral, less estimated selling cost, and no specific or general reserve is provided. A loan or lease is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan or lease agreement. Loans and leases for which terms have been modified resulting in a concession and for which the borrower is experiencing financial difficulties are considered TDRs and classified as impaired. A loan or lease is measured for impairment generally two different ways. If the loan or lease is primarily dependent upon the borrower to make payments, then impairment is calculated by comparing the present value of the expected future payments discounted at the effective loan rate to the carrying value of the loan. If the loan or lease is collateral dependent, the net proceeds from the sale of the collateral is compared to the carrying value of the loan or lease. If the calculated amount is less than the carrying value of the loan or lease, the loan or lease has impairment. A general reserve is included in the allowance for loan and lease losses and is determined by adding the results of a quantitative and a qualitative analysis to all other loans and leases not measured for impairment at the reporting date. The quantitative analysis determines the Bank’s actual annual historic charge-off rates for the previous three fiscal years and applies the average historic rates to the outstanding loan and lease balances in each pool, the product of which is the general reserve amount. The qualitative analysis considers one or more of the following factors: changes in lending policies and procedures, changes in economic conditions, changes in the content of the portfolio, changes in lending management, changes in the volume of delinquency rates, changes to the scope of the loan and lease review system, changes in the underlying collateral of the loans and leases, changes in credit concentrations and any changes in the requirements to the credit loss calculations. A loss rate is estimated and applied to those loans and leases affected by the qualitative factors. The following portfolio segments have been identified: single family secured mortgage, home equity secured mortgage, single family warehouse and other, multi-family secured mortgage, commercial real estate and land secured mortgage, auto secured and recreational vehicles, factoring, commercial and industrial (“C&I”) and other. General loan and lease loss reserves are calculated by grouping each mortgage loan or lease by collateral type and by grouping the LTV ratios of each loan within the collateral type. An estimated allowance rate for each LTV group within each type of loan and lease is multiplied by the total principal amount in the group to calculate the required general reserve attributable to that group. Management uses an allowance rate that provides a larger loss allowance for loans with greater LTV ratios. General loan loss reserves for C&I loans are determined through a loan level grading system to base its projected loss rates. A matrix was created with a base loss rate with additional potential industry and volume risk adjustments, to calculate a loss rating for each deal. Given the lack of historical loss experience for this segment at the Company, an allowance loss range is based upon historical peer loss rates. General loan loss reserves for consumer loans are calculated by grouping each loan by credit score (e.g., FICO) at origination and applying an estimated allowance rate to each group. In addition to credit score grading, general loan loss reserves are increased for all consumer loans determined to be 90 days or more past due. Specific reserves or direct charge-offs are calculated when an internal asset review of a loan or lease identifies a significant adverse change in the financial position of the borrower or the value of the collateral. The specific reserve or direct charge-off is based on discounted cash flows, observable market prices or the estimated value of underlying collateral. Specific loan or lease charge-offs on impaired loans or leases are recorded as a write-off and a decrease to the allowance in the period the impairment is identified. A loan or lease is classified as a TDR when management determines that an existing borrower is in financial distress and the borrower’s loan or lease terms are modified to provide the borrower a financial concession (e.g., lower payment) that would not otherwise be provided by another lender based upon borrower’s current financial condition. TDRs are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan or lease, the loan or lease is reported, net, at the fair value of the collateral less cost to sell. For TDRs that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan and lease losses. For the Company’s home equity loans, the allowance methodology takes into consideration the risk that the original borrower information may have adversely changed in two ways. First, in calculating the quantitative factor for the Company’s general loan loss allowance, the actual loss experience is tracked and stratified by original combined LTV (“CLTV”) of the first and second liens. As a result, the Company allocates higher loss rates in proportion to the greater the CLTV. Second, the Company uses a number of qualitative factors to reflect additional risk. The Company does not have any individual purchased home equity loans in its portfolio and given the limited time frame under which the Company originated home equity loans, 2006-2009, no additional risk allocation is used. For the Company’s single family – warehouse lines, the allowance methodology takes into consideration the structure of these loans, as they remain in the portfolio for a short period (usually less than a month) and have higher credit protection allocated compared to traditional single family originations. A matrix was created to reflect most current operating levels of capital and line usage, which calculates a loss rating to assign to each originator. For the Company’s factoring loans, the allowance methodology takes into consideration the credit quality of the insurance company or state securing the loan. The Company obtains credit ratings for these entities through agencies such as A.M. Best and allocates an allowance allocation based on these ratings. For the Company’s C&I leveraged loans, equipment finance leases and bridge loans, the allowance methodology incorporates a loan level grading system, which generally aligns with the credit rating. Industry loss rates are applied to determine the loss allowance for each of these loans based upon their internal grading. The credit rating incorporates multiple borrower attributes including, but not limited to, underlying collateral and pledged assets, income generated by the property or assets, borrower’s liquidity and access to liquid funds, strength of the borrower’s industry, stability of the borrower’s market, the size of the company, collateral diversity, facility exit strategies and borrower guarantees. |
Mortgage Servicing Rights | Mortgage Servicing Rights . |
Mortgage Banking Derivatives | Mortgage Banking Derivatives . |
Furniture, Equipment and Software | Furniture, Equipment and Software. Fixed asset purchases in excess of five hundred dollars are capitalized and recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which are three to seven years. Leasehold improvements are amortized over the lesser of the assets’ useful lives or the lease term. |
Income Taxes | Income Taxes. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. The Company records a valuation allowance when management believes it is more likely than not that deferred tax assets will not be realized. An income tax position will be recognized as a benefit only if it is more likely than not that it will be sustained upon IRS examination, based upon its technical merits. Once that status is met, the amount recorded will be the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets . Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Other intangible assets represent purchased assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. Intangible assets that have finite lives, such as core deposit intangibles, are amortized over their estimated useful lives and subject to periodic impairment testing. Intangible assets (other than goodwill) are amortized to expense using accelerated or straight-line methods over their respective estimated useful lives. Goodwill is subject to impairment testing at the reporting unit level, which must be conducted at least annually. The Company performs impairment testing during the fourth quarter of each year or when events or changes in circumstances indicate the assets might be impaired. |
Earnings per Common Share | Earnings per Common Share . Earnings per common share (“EPS”) are presented under two formats: basic EPS and diluted EPS. Basic EPS is computed by dividing the net income attributable to common stock (net income after deducting dividends on preferred stock) by the sum of the weighted-average number of common shares outstanding during the year and the unvested average of restricted stock unit shares and participating restricted stock units (“RSU”. Diluted EPS is computed by dividing the sum of net income attributable to common stock and dividends on diluted preferred stock by the sum of the weighted-average number of common shares outstanding during the year and the impact of dilutive potential common shares, such as non-participating RSU’s, stock options and convertible preferred stock. |
Stock-Based Compensation | Stock-Based Compensation. Compensation cost is recognized for stock options and restricted stock unit awards issued to employees, based on the fair value of these awards at the date of grant. A Black–Scholes model is utilized to estimate fair value of the stock options, while market price of the Company’s common stock at the date of grant is used for restricted stock unit awards, except for the Chief Executive Officer’s restricted stock unit awards under an employment agreement effective July 1, 2017. For the Chief Executive Officer’s restricted stock unit awards under an employment agreement effective July 1, 2017, a Monte Carlo simulation is utilized to estimate the value of path-dependent options in order to determine the fair value of the restricted stock unit award. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with only a service condition that have a graded vesting schedule, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. For awards that contain a market condition and have a graded vesting schedule compensation cost is recognized using an accelerated attribution method over the requisite service period for the awards. |
Federal Home Loan Bank (FHLB) stock | Federal Home Loan Bank (“FHLB”) stock. The Bank is a member of the FHLB system. Members are required to own a certain amount of FHLB stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. |
Cash Surrender Value of Life Insurance | Cash Surrender Value of Life Insurance. The Bank has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other amounts due that are probable at settlement. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments. Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Comprehensive Income | Comprehensive Income. Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available-for-sale, which are also recognized as separate components of equity. |
Loss Contingencies | Loss Contingencies. Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are now such matters that will have a material effect on the financial statements. |
Dividend Restriction | Dividend Restriction. Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the holding company. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments. Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 3. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.The following section describes the valuation methodologies used by the Company to measure various financial instruments at fair value, including an indication of the level in the fair-value hierarchy in which each instrument is generally classified: Securities—trading, available-for-sale, and held-to-maturity . Trading securities are recorded at fair value. Available-for-sale securities are recorded at fair value and consist of residential mortgage-backed securities (“RMBS”) issued by U.S. agencies, RMBS issued by non-agencies, municipal securities as well as other Non-RMBS securities. Fair value for U.S. agency securities and municipal securities are generally based on quoted market prices of similar securities used to form a dealer quote or a pricing matrix. There continues to be significant illiquidity in the market for RMBS issued by non-agencies, impacting the availability and reliability of transparent pricing. As orderly quoted market prices are not available, the Level 3 fair values for these securities are determined by the Company utilizing industry-standard tools to calculate the net present value of the expected cash flows available to the securities from the underlying mortgage assets. The Company computes Level 3 fair values for each non-agency RMBS in the same manner (as described below) whether available-for-sale or held-to-maturity. To determine the performance of the underlying mortgage loan pools, the Company estimates prepayments, defaults, and loss severities based on a number of macroeconomic factors, including housing price changes, unemployment rates, interest rates and borrower attributes such as credit score and loan documentation at the time of origination. The Company inputs for each security a projection of monthly default rates, loss severity rates and voluntary prepayment rates for the underlying mortgages for the remaining life of the security to determine the expected cash flows. The projections of default rates are derived by the Company from the historic default rate observed in the pool of loans collateralizing the security, increased by and decreased by the forecasted increase or decrease in the national unemployment rate. The projections of loss severity rates are derived by the Company from the historic loss severity rate observed in the pool of loans, increased by or decreased by the forecasted increase or decrease in the national home price appreciation (“HPA”) index. The largest factors influencing the Company’s modeling of the monthly default rate are unemployment and HPA, as a strong correlation exists. The most updated unemployment rate reported in May 2018 was 3.8% . Consensus estimates for unemployment are that the rate will continue to decline. Going forward, the Company is projecting lower monthly default rates. The Company projects that severities will continue to improve. To determine the discount rates used to compute the present value of the expected cash flows for these non-agency RMBS securities, the Company separates the securities by the borrower characteristics in the underlying pool. Specifically, “prime” securities generally have borrowers with higher FICO scores and better documentation of income. “Alt-A” securities generally have borrowers with a lower FICO and less documentation of income. “Pay-option ARMs” are Alt-A securities with borrowers that tend to pay the least amount of principal (or increase their loan balance through negative amortization). The Company calculates separate discount rates for prime, Alt-A and Pay-option ARM non-agency RMBS securities using market-participant assumptions for risk, capital and return on equity. The range of annual default rates used in the Company’s projections at June 30, 2018 are from 1.5% up to 10.6% with prime securities tending toward the lower end of the range and Alt-A and Pay-option ARMs tending toward the higher end of the range. The range of loss severity rates applied to each default used in the Company’s projections at June 30, 2018 are from 40.0% up to 68.0% based upon individual bond historical performance. The default rates and the severities are projected for every non-agency RMBS security held by the Company and will vary monthly based upon the actual performance of the security and the macroeconomic factors discussed above. The Company applies its discount rates to the projected monthly cash flows, which already reflect the full impact of all forecasted losses using the assumptions described above. When calculating present value of the expected cash flows at June 30, 2018 , the Company computed its discount rates as a spread between 265 and 713 basis points over the LIBOR Index using the LIBOR forward curve with prime securities tending toward the lower end of the range and Alt-A and Pay-option ARMs tending toward the higher end of the range. The Bank’s estimate of fair value for non-agency securities using Level 3 pricing is highly subjective and is based on the Bank’s estimate of voluntary prepayments, default rates, severities and discount margins, which are forecasted monthly over the remaining life of each security. Changes in one or more of these assumptions can cause a significant change in the estimated fair value. For further details see the table later in this note that summarizes quantitative information about level 3 fair value measurements. Loans Held for Sale . Loans held for sale at fair value are primarily single-family residential loans. The fair value of residential loans held for sale is determined by pricing for comparable assets or by existing forward sales commitment prices with investors. Impaired Loans and Leases . Impaired loans and leases are loans and leases which are inadequately protected by the current net worth and paying capacity of the borrowers or the collateral pledged. The accrual of interest income has been discontinued for impaired loans and leases. The impaired loans and leases are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. The Company assesses loans and leases individually and identifies impairment when the loan or lease is classified as impaired or has been restructured or management has serious doubts about the future collectibility of principal and interest, even though the loans and leases may currently be performing. The fair value of an impaired loan or lease is determined based on an observable market price or current appraised value of the underlying collateral. The fair value of impaired loans and leases with specific write-offs or allocations of the allowance for loan and lease losses are generally based on recent real estate appraisals or internal valuation analyses consistent with the methodology used in real estate appraisals and include other third-party valuations and analysis of cash flows. These appraisals and analyses are updated at least on an annual basis. The Company primarily obtains real estate appraisals and in the rare cases where an appraisal cannot be obtained, the Company performs an internal valuation analysis. These appraisals and analyses may utilize a single valuation approach or a combination of approaches including comparable sales and income approaches. The sales comparison approach uses at least three recent similar property sales to help determine the fair value of the property being appraised. The income approach is calculated by taking the net operating income generated by the collateral property of the rent collected and dividing it by an assumed capitalization rate. Adjustments are routinely made in the process by the appraisers to account for differences between the comparable sales and income data available. When measuring the fair value of the impaired loan or lease based upon the projected sale of the underlying collateral, the Company subtracts the costs expected to be incurred for the transfer of the underlying collateral, which includes items such as sales commissions, delinquent taxes and insurance premiums. These adjustments to the estimated fair value of nonaccrual loans and leases may result in increases or decreases to the provision for loan and lease losses recorded in current earnings. Such adjustments are typically significant and result in a Level 3 classification for the inputs for determining fair value. Other Real Estate Owned . Non-recurring adjustments to certain commercial and residential real estate properties classified as other real estate owned (“OREO”) are measured at the lower of carrying amount or fair value, less costs to sell. Fair values are generally based on third party appraisals of the property, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. Mortgage Servicing Rights . The Company initially records all mortgage servicing rights (“MSRs”) at fair value and accounts for MSRs at fair value during the life of the MSR, with changes in fair value recorded through mortgage banking income in the income statement. Fair value adjustments encompass market-driven valuation changes as well as modeled amortization involving the run-off of value that occurs due to the passage of time as individual loans are paid by borrowers. Market expectations about loan duration, and correspondingly the expected term of future servicing cash flows, may vary from time to time due to changes in expected prepayment activity, especially when interest rates rise or fall. Market expectations of increased loan prepayment speeds may negatively impact the fair value of the single family MSRs. Fair value is also dependent on the discount rate used in calculating present value, which is imputed from observable market activity and market participants and results in Level 3 classification. Management reviews and adjusts the discount rate on an ongoing basis. An increase in the discount rate would reduce the estimated fair value of the MSRs asset. Mortgage Banking Derivatives . Fair value for mortgage banking derivatives are either securities based upon prices in active markets for identical securities or based on quoted market prices of similar assets used to form a dealer quote or a pricing matrix, resulting in a Level 2 classification, or derivatives requiring unobservable inputs resulting in Level 3 classification. |
Operating Segments | Operating Segments . While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the financial service operations are considered by management to be one |
New Accounting Pronouncements | New Accounting Pronouncements . In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (the “revenue recognition standard”). Public entities are required to adopt the revenue recognition standard for reporting periods beginning after December 15, 2017. The core principle of Topic 606 is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard affects all entities that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other guidance. Therefore, the ASU excludes revenue associated with financial instruments including loans, leases, securities, and derivatives as these topics are accounted for following other guidance. Other areas that are within the scope of the revenue recognition standard include service charges on deposit accounts, and gains and losses on other real estate owned. The Company identified and reviewed the revenue streams within the scope of ASU 2014-09, including but not limited to service charges on deposit accounts, prepaid card fees and mortgage banking income. The Company anticipates adopting the modified retrospective approach and determined that the new guidance will not require significant changes to the manner in which income from those revenue streams is currently recognized. As such, the Company concluded that the new guidance will not have a significant impact on the Company’s consolidated financial statements at the time of adoption. In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . Under the amended guidance, debt issuance costs related to a recognized debt liability are required to be presented as deductions from the carrying amounts of the corresponding debt liabilities, consistent with the presentation of debt discounts and premiums. The amended guidance was adopted for the quarter ended September 30, 2016 and applied retrospectively in accordance with the amended guidance, wherein the balance sheet of each individual period presented has been adjusted to reflect the period-specific effects of applying the amended guidance. The adoption of this guidance did not materially impact our consolidated financial position or consolidated results of operations. The company will adopt this standard on July 1, 2018. In February 2016, the FASB issued ASU 2016-02, Leases , as amended in July 2018 by ASU 2018-10 Codification Improvements to Topic 842, Leases and ASU 2018-11 Leases (Topic 842): Targeted Improvements. The new standard establishes a right-of-use model that requires a lessee to record a right of use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months . Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASUs 2016-02, 2018-10 and 2018-11 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is anticipated for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company continues to evaluate the impact of ASUs 2016-02, 2018-10 and 2018-11, including determining whether other contracts exist that are deemed to be in scope. As such, no conclusions have yet been reached regarding the potential impact on adoption of ASUs 2016-02, 2018-10 and 2018-11 on the Company’s consolidated financial statements and regulatory capital and risk-weighted assets; however, the Company does not expect the amendments to have a material impact on its results of operations. In March 2016, the FASB issued ASU 2016-09 Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which simplifies several areas of accounting for share-based payment transactions, including tax provision, classification in the cash-flow statement, forfeitures, and statutory tax withholding requirements. Under ASU 2016-09, all excess tax benefits and tax deficiencies related to share-based payment awards should be recognized as income tax expense or benefit in the income statement during the period in which they occur. Previously, such amounts were recorded in the pool of excess tax benefits included in additional paid-in capital, if such pool was available. Because excess tax benefits are no longer recognized in additional paid-in capital, the assumed proceeds from applying the treasury stock method when computing earnings per common share should exclude the amount of excess tax benefits that would have previously been recognized in additional paid-in capital. Additionally, excess tax benefits should be classified along with other income tax cash flows as an operating activity rather than a financing activity, as was previously the case. ASU 2016-09 also provides that an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The Company has elected to account for forfeitures when they occur. ASU 2016-09 changes the threshold to qualify for equity classification (rather than as a liability) to permit withholding up to the maximum statutory tax rates in the applicable jurisdictions. The adoption at July 1, 2017 of ASU 2016-09 did not have a significant impact on our financial position and results of operations. In June 2016, the FASB issued ASU 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which (i) significantly changes the impairment model for most financial assets that are measured at amortized cost and certain other instruments from an incurred loss model to an expected loss model; and (ii) provides for recording credit losses on available-for-sale debt securities through an allowance account. ASU 2016-13 also requires certain incremental disclosures. ASU 2016-13 should be applied on a modified-retrospective transition approach that would require a cumulative-effect adjustment to the opening retained earnings in the statement of financial condition as of the date of adoption. A prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date. The guidance will be effective for the Company’s financial statements that include periods beginning July 1, 2020. Early adoption is permitted beginning July 1, 2019. The Company has formed a working group, which is currently developing an implementation plan to include assessment of processes, portfolio segmentation, model development, system requirements and the identification of data and resource needs, among other things including evaluating third-party vendor solutions. The Company expects ASU 2016-13 to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , which changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is deemed to be a business. Determining whether a transferred set constitutes a business is important because the accounting for a business combination differs from that of an asset acquisition. The definition of a business also affects the accounting for dispositions. Under the new standard, when substantially all of the fair value of assets acquired is concentrated in a single asset, or a group of similar assets, the assets acquired would not represent a business and business combination accounting would not be required. The new standard may result in more transactions being accounted for as asset acquisitions rather than business combinations. The standard is effective for interim and annual periods beginning after December 15, 2017 and shall be applied prospectively. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In February 2017, the FASB issued guidance within ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets . The amendments in ASU 2017-05 to Subtopic 610-20, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets, clarify the scope of Subtopic 610-20 and add guidance for partial sales of nonfinancial assets, including partial sales of real estate. Under current GAAP, there are several different accounting models to evaluate whether the transfer of certain assets qualify for sale treatment. The new standard reduces the number of potential accounting models that might apply and clarifies which model does apply in various circumstances. The adoption of this guidance did not have a significant impact on the Company’s consolidated financial statements. In March 2017, the FASB issued guidance within ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities . The amendments in ASU 2017-08 to Subtopic 310-20, Receivables-Nonrefundable Fees and Other Costs, shorten the amortization period for certain purchased callable debt securities held at a premium to the earliest call date, which more closely align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities. Under current GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments in this ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718), Scope of Modification Accounting . The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The amendments in this update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for (1) public business entities for reporting periods for which financial statements have not yet been issued and (2) all other entities for reporting periods for which financial statements have not yet been made available for issuance. The Company does not anticipate that this guidance will have a material impact on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The ASU expands and refines hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedge items in the financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. The effective date of the new standard for public companies is for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition with a cumulative effect adjustment recorded to opening retained earnings as of the initial adoption date. The Company does not anticipate that this guidance will have a material impact on its consolidated financial statements. In June 2018, the FASB issued guidance within ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting . The amendments in ASU 2018-07 to Topic 718, Compensation-Stock Compensation, are intended to align the accounting for share-based payment awards issued to employees and nonemployees. Changes to the accounting for nonemployee awards include: 1) equity classified share-based payment awards issued to nonemployees will now be measured on the grant date, instead of the previous requirement to remeasure the awards through the performance completion date; 2) for performance conditions, compensation cost associated with the award will be recognized when achievement of the performance condition is probable, rather than upon achievement of the performance condition; and 3) the current requirement to reassess the classification (equity or liability) for nonemployee awards upon vesting will be eliminated, except for awards in the form of convertible instruments. The new guidance also clarifies that any share-based payment awards issued to customers should be evaluated under ASC 606, Revenue from Contracts with Customers . |
Fair Value Measurement | Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC Topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices in active markets for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets include securities with quoted prices that are traded less frequently than exchange-traded instruments and whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models such as discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. When available, the Company generally uses quoted market prices to determine fair value. In some cases where a market price is available, the Company will make use of acceptable practical expedients (such as matrix pricing) to calculate fair value, in which case the items are classified in Level 2. The Company considers relevant and observable market prices in its valuations where possible. The frequency of transactions, the size of the bid-ask spread and the nature of the participants are some of the factors the Company uses to help determine whether a market is active and orderly or inactive and not orderly. Price quotes based upon transactions that are not orderly are not considered to be determinative of fair value and are given little, if any, weight in measuring fair value. |
Loans and Leases Segment Risk Characteristics | Loan and lease segment risk characteristics . The Company considers its loan and lease classes to be the same as its loan and lease segments. The following are loan and lease segment risk characteristics of the Company’s loan and lease portfolio: Single family mortgage secured . The Company originates both fixed-rate and adjustable-rate loans secured by one-to-four family residences located in the U.S. The Company’s lending policies generally limit the maximum LTV ratio on one-to-four family loans to 80% of the lesser of the appraised value or the purchase price, plus pledged collateral. Terms of maturity typically range from 15 to 30 years. The Company attempts to mitigate residential lending risks by adhering to its underwriting policies in evaluating the collateral and the credit-worthiness of the borrower. Home equity . The Company also originates home equity lines of credit and second mortgage loans. Home equity lines of credit and second mortgage loans have a greater credit risk than one-to-four family residential mortgage loans because they are secured by mortgages subordinated to the existing first mortgage on the property, which may or may not be held by the Company. The Company attempts to mitigate residential lending risks by adhering to its underwriting policies in evaluating the collateral and the credit-worthiness of the borrower. Warehouse and other . Single family warehouse loans consist of short-term, secured advances to mortgage bankers on a revolving basis. These facilities enable the mortgage originators to close loans in their own names and temporarily finance inventories of closed mortgage loans until they can be sold to an approved investor. Commercial specialty and lender finance loans secured by single family real estate are originated to businesses secured by first liens on single family mortgage loans. These loans are generally collateralized by single family mortgage loans that are secured by first liens on single family real estate. The Company attempts to mitigate residential lending risks by adhering to its underwriting policies in evaluating the collateral and the credit-worthiness of the borrower. Multifamily . The Company originates loans secured by multifamily real estate (more than four units). These loans involve a greater degree of risk than one-to-four family residential mortgage loans as these loans are usually greater in amount, dependent on the cash flow capacity of the project, and may be more difficult to evaluate and monitor. Repayment of loans secured by multifamily properties frequently depends on the successful operation and management of the properties. Consequently, repayment of such loans may be affected by adverse conditions in the real estate market or economy. The Company attempts to mitigate these risks by thoroughly evaluating the global financial condition of the borrower, the management experience of the borrower, and the quality of the collateral property securing the loan. Commercial real estate . The Company originates loans across the U.S. secured by small commercial real estate properties. These are primarily cash flow loans that share characteristics of both real estate and commercial business loans. The primary source of repayment is frequently cash flow from the operation of the collateral property and secondarily through liquidation of the collateral. These loans are generally higher risk than other classifications of loans in that they typically involve higher loan amounts, are dependent on the management experience of the owners, and may be adversely affected by conditions in the real estate market or the economy. Owner-occupied commercial real estate loans are generally of lower credit risk than non-owner occupied commercial real estate loans as the borrowers’ businesses are likely dependent on the properties. Underwriting for these loans is primarily dependent on the repayment capacity derived from the operation of the occupying business rather than rents paid by third parties. The Company attempts to mitigate these risks by generally limiting the maximum LTV ratio to 65% - 80% , depending on property type, and scrutinizing the financial condition of the borrower, the quality of the collateral and the management of the property securing the loan. Auto and RV . Auto and RV loans primarily consist of direct and indirect auto loans and legacy RV loans. These auto and RV loans were originated across the U.S. The collateral for these auto and RV loans is comprised of a mix of new and used autos and RVs. Auto and RV loans generally have shorter terms to maturity than mortgage loans. Auto and RV loans generally involve a greater degree of risk than do residential mortgage loans, particularly in the case of auto and RV loans, which are secured by rapidly depreciating and mobile assets such as autos and RVs. In such cases, any repossessed collateral for a defaulted auto and RV loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. The Company attempts to mitigate these risks by adhering to its underwriting policies in evaluating the credit-worthiness of the borrower. Factoring . Factoring loans are originated through the wholesale and retail purchase of state lottery prize and structured settlement annuities. These annuities are high credit quality deferred payment receivables having a state lottery commission or primarily highly rated insurance company payor. Purchases of state lottery prize or structured settlement annuities are governed by specific state statutes requiring judicial approval of each transaction. No transaction is funded before an order approving such transaction has been entered by a court of competent jurisdiction. The Company’s commission-based sales force originates contracts for the retail purchase of such payments from leads generated by the Company’s dedicated research department through the use of proprietary research techniques. The Company attempts to mitigate these risks by adhering to its underwriting policies in evaluating the credit-worthiness of the state or insurer. Commercial and industrial . Commercial and industrial loans and leases are primarily made based on the operating cash flows of the borrower or conversion of working capital assets to cash and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers may be volatile and the value of the collateral securing these loans and leases may be difficult to measure. Most commercial and industrial loans and leases are secured by the assets being financed or other business assets such as accounts receivable or inventory and generally include personal guarantees based on a review of personal financial statements. Although commercial and industrial loans and leases are often collateralized by equipment, inventory, accounts receivable or other business assets, the liquidation of collateral in the event of a borrower default may be an insufficient source of repayment, because accounts receivable may be uncollectible and inventories and equipment may be obsolete or of limited use. Accordingly, the repayment of a commercial and industrial loan or lease primarily depends on the credit-worthiness of the borrower and guarantors, while the liquidation of collateral is a secondary and potentially insufficient source of repayment. The Company attempts to mitigate these risks by adhering to its underwriting policies in evaluating the management of the business and the credit-worthiness of borrowers and guarantors. Other . The Company originates other loans, which include unsecured consumer loans and other small balance business and consumer loans. Other consumer loans generally have shorter terms to maturity than mortgage loans. Other consumer loans generally involve a greater degree of risk than do residential mortgage loans, particularly in the case of consumer loans that are unsecured. In such cases, it is not possible to repossess collateral for a defaulted consumer loan and as such there may not exist an adequate source |
ORGANIZATIONS AND SUMMARY OF 31
ORGANIZATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Revisions of Previously Issued Financial Statements For Correction of Immaterial Errors | Revisions of Previously Issued Financial Statements for Correction of Immaterial Errors . During the fourth quarter of 2018, the Company identified an immaterial error related to an incorrect calculation of basic and diluted earnings per common share related to unvested non-participating restricted stock units. The corrected calculation results in increased basic and diluted earnings per common share in certain periods. In order to correct this immaterial error, the Company revised the basic and diluted earnings per common share for fiscal years ended June 30, 2016 and 2017 and for the interim quarters for the fiscal years ended June 30, 2017 and 2018. The revisions are reflected in the tables below. At June 30, 2017 At June 30, 2016 (Dollars in thousands, except per share data) Previously Reported Adjustment Revised Previously Reported Adjustment Revised Earnings Per Common Share Net income attributable to common shareholders $ 134,431 $ — $ 134,431 $ 118,982 $ — $ 118,982 Average common shares issued and outstanding 63,358,886 — 63,358,886 62,909,411 — 62,909,411 Average unvested RSUs 1,491,228 (1,193,572 ) 297,656 1,355,796 (667,948 ) 687,848 Total qualifying shares 64,850,114 (1,193,572 ) 63,656,542 64,265,207 (667,948 ) 63,597,259 Earnings per common share $ 2.07 $ 0.04 $ 2.11 $ 1.85 $ 0.02 $ 1.87 Diluted Earnings Per Common Share Dilutive net income attributable to common shareholders $ 134,431 $ — $ 134,431 $ 118,982 $ — $ 118,982 Average common shares issued and outstanding 64,850,114 (1,193,572 ) 63,656,542 64,265,207 (667,948 ) 63,597,259 Dilutive effect of stock options — — — 5,845 — 5,845 Dilutive effect of average unvested RSUs — 258,558 258,558 — 69,176 69,176 Total dilutive common shares issued and outstanding 64,850,114 (935,014 ) 63,915,100 64,271,052 (598,772 ) 63,672,280 Diluted earnings per common share $ 2.07 $ 0.03 $ 2.10 $ 1.85 $ 0.02 $ 1.87 Quarters Ended in Fiscal Year 2018 Unaudited June 30, March 31, December 31, September 30, Basic earnings per common share Previously reported $ 0.58 $ 0.80 $ 0.49 $ 0.50 Adjustment 0.01 0.02 0.01 0.01 Revised $ 0.59 $ 0.82 $ 0.50 $ 0.51 Diluted earnings per common share Previously reported $ 0.58 $ 0.80 $ 0.49 $ 0.50 Adjustment — — — — Revised $ 0.58 $ 0.80 $ 0.49 $ 0.50 Quarters Ended in Fiscal Year 2017 Unaudited June 30, March 31, December 31, September 30, Basic earnings per common share Previously reported $ 0.50 $ 0.63 $ 0.50 $ 0.45 Adjustment 0.01 0.01 0.01 — Revised $ 0.51 $ 0.64 $ 0.51 $ 0.45 Diluted earnings per common share Previously reported $ 0.50 $ 0.63 $ 0.50 $ 0.45 Adjustment 0.01 0.01 — — Revised $ 0.51 $ 0.64 $ 0.50 $ 0.45 During the fourth quarter of 2018, the Company identified an immaterial error related to the classification of proceeds from the sale of loans that were transferred from loans held-for-investment in the consolidated statement of cash flows for the years ended June 30, 2017 and 2016. The Company revised its previously issued financial statements for the years ended June 30, 2017 and 2016 to correctly present these activities in the cash flow. For the year ended June 30, 2016, the Company revised its supplemental disclosure of cash flow information to add loans held for investment, sold cash not received of $32,124 . There was no change to net change in cash and cash equivalents. The revisions to cash flows from operating and investing activities are reflected in the tables below. Year Ended June 30, 2017 Year Ended June 30, 2016 (Dollars in thousands) Previously Reported Adjustment Revised Previously Reported Adjustment Revised Cash Flows From Operating Activities: Proceeds from sale of loans held for sale $ 1,420,031 $ 13,037 $ 1,433,068 $ 1,523,113 $ (95,127 ) $ 1,427,986 Other assets $ 45,762 $ (44,955 ) $ 807 $ (54,784 ) $ 45,245 $ (9,539 ) Net cash provided by in operating activities 1 $ 223,884 $ (25,386 ) $ 198,498 $ 210,644 $ (43,741 ) $ 166,903 Cash Flows From Investing Activities: Proceeds from sale of loans held for investment $ — $ 31,918 $ 31,918 $ — $ 49,882 $ 49,882 Net cash used in investing activities $ (820,649 ) $ 31,918 $ (788,731 ) $ (1,587,418 ) $ 49,882 $ (1,537,536 ) 1. Adjustment includes a non-error amount of $6,532 and $6,141 for the years ended June 30, 2017 and 2016, respectively, related to the retrospective application of ASU 2016-09. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of Fair Value of Assets Acquired Epic on the Consolidated Balance Sheets | The following table sets forth the approximate fair value of assets acquired from Epiq on the consolidated balance sheets as of April 4, 2018 : (Dollars in thousands) April 4, 2018 Fair value of consideration paid Cash $ 70,002 Total consideration paid 70,002 Fair value of assets acquired Intangible assets 32,720 Other assets 1,563 Total assets 34,283 Fair value of net assets acquired 34,283 Goodwill incident to acquisition $ 35,719 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: June 30, 2018 (Dollars in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total ASSETS: Securities—Trading: Collateralized Debt Obligations $ — $ — $ — $ — Securities—Available-for-Sale: Agency RMBS — 12,926 — 12,926 Non-Agency RMBS — — 17,443 17,443 Municipal — 20,212 — 20,212 Asset-backed securities and structured notes — 129,724 — 129,724 Total—Securities—Available-for-Sale $ — $ 162,862 $ 17,443 $ 180,305 Loans Held for Sale $ — $ 35,077 $ — $ 35,077 Mortgage servicing rights $ — $ — $ 10,752 $ 10,752 Other assets—Derivative instruments $ — $ — $ 1,321 $ 1,321 LIABILITIES: Other liabilities—Derivative instruments $ — $ — $ 368 $ 368 June 30, 2017 (Dollars in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total ASSETS: Securities—Trading: Collateralized Debt Obligations $ — $ — $ 8,327 $ 8,327 Securities—Available-for-Sale: Agency RMBS — 27,206 — 27,206 Non-Agency RMBS — — 71,503 71,503 Municipal — 27,163 — 27,163 Asset-backed securities and structured notes — 138,598 — 138,598 Total—Securities—Available-for-Sale $ — $ 192,967 $ 71,503 $ 264,470 Loans Held for Sale $ — $ 18,738 $ — $ 18,738 Mortgage servicing rights $ — $ — $ 7,200 $ 7,200 Other assets—Derivative Instruments $ — $ — $ 1,194 $ 1,194 LIABILITIES: Other liabilities—Derivative instruments $ — $ — $ 168 $ 168 |
Schedule of Level 3, Fair Value, Assets Measured on Recurring Basis | The following table presents 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: Year Ended June 30, 2018 (Dollars in thousands) Securities- Securities- 1 Mortgage Servicing Rights Derivative Instruments, net Total Assets: Opening Balance $ 8,327 $ 71,503 $ 7,200 $ 1,026 $ 88,056 Transfers into Level 3 — — — — — Transfers out of Level 3 — — — — — Total gains or losses for the period: Included in earnings—Sale of securities 282 (300 ) — — (18 ) Included in earnings—Fair value gain(loss) on trading securities — — — — — Included in earnings—Mortgage banking income — — (83 ) (73 ) (156 ) Included in other comprehensive income — (1,629 ) — — (1,629 ) Purchases, issues, sales and settlements: Purchases — — 3,635 — 3,635 Issues — — — — — Sales (8,609 ) (44,270 ) — — (52,879 ) Settlements — (7,705 ) — — (7,705 ) Other-than-temporary impairment — (156 ) — — (156 ) Closing balance $ — $ 17,443 $ 10,752 $ 953 $ 29,148 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ (300 ) $ (83 ) $ (73 ) $ (456 ) 1 See Note 3 – “Securities” for further information on transfers. Year Ended June 30, 2017 (Dollars in thousands) Securities- Securities- Mortgage Servicing Rights Derivative Instruments, net Total Assets: Opening Balance $ 7,584 $ 9,364 $ 3,943 $ 1,318 $ 22,209 Transfers into Level 3 — 124,547 — — 124,547 Transfers out of Level 3 — — — — — Total gains or losses for the period: Included in earnings—Sale of securities — (1,509 ) — — (1,509 ) Included in earnings—Fair value gain(loss) on trading securities 743 — — — 743 Included in earnings—Mortgage banking income — — 697 (292 ) 405 Included in other comprehensive income — 13,933 — — 13,933 Purchases, issues, sales and settlements: Purchases — — 2,560 — 2,560 Issues — — — — — Sales — (59,896 ) — — (59,896 ) Settlements — (12,972 ) — — (12,972 ) Other-than-temporary impairment — (1,964 ) — — (1,964 ) Closing balance $ 8,327 $ 71,503 $ 7,200 $ 1,026 $ 88,056 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ 743 $ (1,509 ) $ 697 $ (292 ) $ (361 ) |
Schedule of Level 3, Change in Unrealized Gain (Loss) and Interest income Included in Earnings | The table below summarizes changes in unrealized gains and losses and interest income recorded in earnings for Level 3 trading assets and liabilities that are still held at the periods indicated: Year Ended June 30, (Dollars in thousands) 2018 2017 2016 Interest income on investments $ — $ 311 $ 245 Fair value adjustment — 743 (248 ) Total $ — $ 1,054 $ (3 ) |
Schedule of Fair Value Assets Measured on Nonrecurring Basis | The table below summarizes the fair value of assets measured for impairment on a non-recurring basis: June 30, 2018 (Dollars in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance Impaired loans and leases: Single family real estate secured: Mortgage $ — $ — $ 28,446 $ 28,446 Home equity — — 16 16 Multifamily real estate secured — — 232 232 Auto and RV secured — — 60 60 Commercial & Industrial — — 2,361 2,361 Other — — 111 111 Total $ — $ — $ 31,226 $ 31,226 Other real estate owned and foreclosed assets: Single family real estate $ — $ — $ 9,385 $ 9,385 Autos and RVs — — 206 206 Total $ — $ — $ 9,591 $ 9,591 June 30, 2017 (Dollars in thousands) Quoted Prices in Significant Other Significant Balance Impaired loans and leases: Single family real estate secured: Mortgage $ — $ — $ 23,377 $ 23,377 Home equity — — 16 16 Multifamily real estate secured — — 4,255 4,255 Auto and RV secured — — 157 157 Commercial & Industrial — — 314 314 Other — — 274 274 Total $ — $ — $ 28,393 $ 28,393 Other real estate owned and foreclosed assets: Single family real estate $ — $ — $ 1,353 $ 1,353 Autos and RVs — — 60 60 Total $ — $ — $ 1,413 $ 1,413 |
Schedule of Fair Value, Loans Held For Sale | The aggregate fair value, contractual balance (including accrued interest), and gain was as follows: At June 30, (Dollars in thousands) 2018 2017 2016 Aggregate fair value $ 35,077 $ 18,738 $ 20,871 Contractual balance 34,415 18,311 20,226 Gain $ 662 $ 427 $ 645 The total amount of gains and losses from changes in fair value included in earnings for the period indicated below for loans held for sale were: At June 30, (Dollars in thousands) 2018 2017 2016 Interest income $ 903 $ 602 $ 826 Change in fair value 181 (514 ) (846 ) Total change in fair value $ 1,084 $ 88 $ (20 ) |
Schedule of Fair Value, by Balance Sheet Grouping | The carrying amount and estimated fair values of financial instruments at year-end were as follows: June 30, 2018 (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 622,850 $ 622,850 $ — $ — $ 622,850 Securities available-for-sale 180,305 — 162,862 17,443 180,305 Loans held for sale, at fair value 35,077 — 35,077 — 35,077 Loans held for sale, at lower of cost or fair value 2,686 — — 2,734 2,734 Loans and leases held for investment—net 8,432,289 — — 8,466,494 8,466,494 Accrued interest receivable 26,729 — — 26,729 26,729 Mortgage servicing rights 10,752 — — 10,752 10,752 Financial liabilities: Total deposits 7,985,350 — 7,584,928 — 7,584,928 Advances from the Federal Home Loan Bank 457,000 — 453,326 — 453,326 Subordinated notes and debentures 54,552 — 51,693 — 51,693 Accrued interest payable 1,753 — 1,753 — 1,753 June 30, 2017 (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 643,541 $ 643,541 $ — $ — $ 643,541 Securities trading 8,327 — — 8,327 8,327 Securities available-for-sale 264,470 — 192,967 71,503 264,470 Loans held for sale, at fair value 18,738 — 18,738 — 18,738 Loans held for sale, at lower of cost or fair value 6,669 — — 7,328 7,328 Loans and leases held for investment—net 7,374,493 — — 7,521,281 7,521,281 Accrued interest receivable 20,781 — — 20,781 20,781 Mortgage servicing rights 7,200 — — 7,200 7,200 Financial liabilities: Total deposits 6,899,507 — 6,544,056 — 6,544,056 Securities sold under agreements to repurchase 20,000 — 20,152 — 20,152 Advances from the Federal Home Loan Bank 640,000 — 645,339 — 645,339 Subordinated notes and debentures 54,463 — 52,930 — 52,930 Accrued interest payable 1,284 — 1,284 — 1,284 |
Fair Value, Measurements, Recurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of Fair Value Inputs, Assets, Quantitative Information | The table below summarizes the quantitative information about Level 3 fair value measurements as of the dates indicated: June 30, 2018 (Dollars in thousands) Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Securities – Non-agency MBS $ 17,443 Discounted Cash Flow Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate over LIBOR 2.5 to 25.8% (14.1%) 1.5 to 10.6% (5.1%) 40.0 to 68.0% (58.9%) 2.7 to 7.1% (4.2%) Mortgage Servicing Rights $ 10,752 Discounted Cash Flow Projected Constant Prepayment Rate, Life (in years), Discount Rate 6.0 to 26.6% (9.1%) 2.4 to 9.5 (6.9) 9.5 to 13.0% (9.9%) Derivative Instruments $ 953 Sales Comparison Approach Projected Sales Profit of Underlying Loans 0.1 to .4% (.3%) June 30, 2017 (Dollars in thousands) Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Securities – Trading $ 8,327 Discounted Cash Flow Total Projected Defaults, Discount Rate over Treasury 12.2 to 21.8% (16.8%) Securities – Non-agency MBS $ 71,503 Discounted Cash Flow Projected Constant Prepayment Rate, 2.5 to 23.4% (12.5%) Mortgage Servicing Rights $ 7,200 Discounted Cash Flow Projected Constant Prepayment Rate, 6.3 to 26.9% (9.5%) Derivative Instruments $ 1,026 Sales Comparison Approach Projected Sales Profit of Underlying Loans 0.3 to 0.6% (0.5%) |
Fair Value, Measurements, Nonrecurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of Fair Value Inputs, Assets, Quantitative Information | The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at the periods indicated: June 30, 2018 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) 1 Impaired loans and leases: Single family real estate secured: Mortgage $ 28,446 Sales comparison approach Adjustment for differences between the comparable sales -48.8 to 66.7% (2.3%) Home equity $ 16 Sales comparison approach Adjustment for differences between the comparable sales 0.0 to 14.9% (7.4%) Multifamily real estate secured $ 232 Sales comparison approach and income approach Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, capitalization rate -15.5 to 46.4% (15.4%) Auto and RV secured $ 60 Sales comparison approach Adjustment for differences between the comparable sales -2.0 to 71.5% (24.0%) Commercial & Industrial $ 2,361 Discounted cash flow Discount Rate -33.8 to 0.0% (-16.9%) Other $ 111 Discounted cash flow Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate 0.0 to 0.0% (0.0%) 0.0 to 10.0% (5.0%) 100.0 to 100.0% (100.0%) -1.0 to 2.5% (0.8%) Other real estate owned and foreclosed assets: Single family real estate $ 9,385 Sales comparison approach Adjustment for differences between the comparable sales -14.1 to 27.3% (0.5%) Autos and RVs $ 206 Sales comparison approach Adjustment for differences between the comparable sales -33.9 to 60.5% (7.9%) 1 For impaired loans and other real estate owned the ranges shown may vary positively or negatively based on the comparable sales reported in the current appraisal. In certain instances, the range can be significant due to small sample sizes and in some cases the property being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted. June 30, 2017 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) 1 Impaired loans and leases: Single family real estate secured: Mortgage $ 23,377 Sales comparison approach Adjustment for differences between the comparable sales -38.5 to 79.8% (6.4%) Home equity $ 16 Sales comparison approach Adjustment for differences between the comparable sales -6.1 to 26.1% (7.8%) Multifamily real estate secured $ 4,255 Sales comparison approach and income approach Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, capitalization rate -24.2 to 48.7% (2.4%) Auto and RV secured $ 157 Sales comparison approach Adjustment for differences between the comparable sales -17.2 to 42.4% (-5.5%) Commercial & Industrial $ 314 Discounted cash flow Discount Rate 34.8 to 34.8% (34.8%) Other $ 274 Discounted cash flow Projected Constant Prepayment Rate, 0.0 to 0.0% (0.0%) Other real estate owned and foreclosed assets: Single family real estate $ 1,353 Sales comparison approach Adjustment for differences between the comparable sales -10.5 to 12.5% (0.1%) Autos and RVs $ 60 Sales comparison approach Adjustment for differences between the comparable sales 17.0 to 20.5% (6.2%) 1 |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Carrying Amortized and Fair Value of Major Categories of Securities | The amortized cost, carrying amount and fair value for the major categories of securities trading, available-for-sale, and held-to-maturity for the following periods were: June 30, 2018 Available-for-sale (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mortgage-backed securities (RMBS): U.S agencies 1 $ 13,102 $ 152 $ (328 ) $ 12,926 Non-agency 2 19,384 116 (2,057 ) 17,443 Total mortgage-backed securities 32,486 268 (2,385 ) 30,369 Non-RMBS: Municipal 20,953 2 (743 ) 20,212 Asset-backed securities and structured notes 127,558 2,267 (101 ) 129,724 Total Non-RMBS 148,511 2,269 (844 ) 149,936 Total debt securities $ 180,997 $ 2,537 $ (3,229 ) $ 180,305 June 30, 2017 Trading Available-for-sale (Dollars in thousands) Fair Amortized Unrealized Unrealized Fair Mortgage-backed securities (RMBS): U.S. agencies 1 $ — $ 27,379 $ 286 $ (459 ) $ 27,206 Non-agency 2 — 65,401 7,406 (1,304 ) 71,503 Total mortgage-backed securities — 92,780 7,692 (1,763 ) 98,709 Non-RMBS: Municipal — 27,568 19 (424 ) 27,163 Asset-backed securities and structured notes 8,327 137,172 1,517 (91 ) 138,598 Total Non-RMBS 8,327 164,740 1,536 (515 ) 165,761 Total debt securities $ 8,327 $ 257,520 $ 9,228 $ (2,278 ) $ 264,470 1 U.S. government-backed or government sponsored enterprises including Fannie Mae, Freddie Mac and Ginnie Mae. 2 |
Schedule of Securities in Unrealized Loss Position | The securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows: June 30, 2018 Available-for-sale securities in loss position for Less Than 12 Months More Than 12 Months Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses RMBS: U.S. agencies $ 12 $ (1 ) $ 6,825 $ (327 ) $ 6,837 $ (328 ) Non-agency 36 (1 ) 15,867 (2,056 ) 15,903 (2,057 ) Total RMBS securities 48 (2 ) 22,692 (2,383 ) 22,740 (2,385 ) Non-RMBS: Municipal debt 1,740 (17 ) 12,326 (726 ) 14,066 (743 ) Asset-backed securities and structured notes 9,489 (30 ) 6,163 (71 ) 15,652 (101 ) Total Non-RMBS 11,229 (47 ) 18,489 (797 ) 29,718 (844 ) Total debt securities $ 11,277 $ (49 ) $ 41,181 $ (3,180 ) $ 52,458 $ (3,229 ) June 30, 2017 Available-for-sale securities in loss position for Less Than 12 Months More Than 12 Months Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses RMBS: U.S. agencies $ 17,161 $ (374 ) $ 2,348 $ (85 ) $ 19,509 $ (459 ) Non-agency 2,487 (16 ) 25,097 (1,288 ) 27,584 (1,304 ) Total RMBS securities 19,648 (390 ) 27,445 (1,373 ) 47,093 (1,763 ) Non-RMBS: Municipal debt 13,431 (420 ) 1,757 (4 ) 15,188 (424 ) Asset-backed securities and structured notes 27,750 (91 ) — — 27,750 (91 ) Total Non-RMBS 41,181 (511 ) 1,757 (4 ) 42,938 (515 ) Total debt securities $ 60,829 $ (901 ) $ 29,202 $ (1,377 ) $ 90,031 $ (2,278 ) |
Schedule of Anticipated Credit Losses Recognized in Income Statement Through Other Than Temporary Impairment | The following table summarizes amounts of anticipated credit loss recognized in the income statement through other-than-temporary impairment charges, which reduced non-interest income: At June 30, (Dollars in thousands) 2018 2017 2016 Beginning balance $ (15,528 ) $ (20,865 ) $ (20,503 ) Additions for the amounts related to the credit loss for which an other-than-temporary impairment was not previously recognized (7 ) (342 ) (112 ) Increases to the amount related to the credit loss for which other-than-temporary impairment was previously recognized (149 ) (1,622 ) (453 ) Credit losses realized for securities sold 15,684 7,301 203 Ending balance $ — $ (15,528 ) (20,865 ) |
Schedule of Realized Gain (Loss) on Sale of Available-for-Sale Securities | The gross gains and losses realized through earnings upon the sale of available-for-sale securities were as follows: At June 30, (Dollars in thousands) 2018 2017 2016 Proceeds $ 44,013 $ 161,048 $ 14,969 Gross realized gains $ 1,269 $ 7,386 $ 1,427 Gross realized loss (1,569 ) (3,466 ) — Net gain on securities $ (300 ) $ 3,920 $ 1,427 |
Schedule of Unrealized Gain (Loss) on Securities in Accumulated Other Comprehensive Loss | The Company records unrealized gains and unrealized losses in accumulated other comprehensive loss as follows: At June 30, (Dollars in thousands) 2018 2017 Available-for-sale debt securities—net unrealized gains $ (692 ) $ 6,949 Available-for-sale debt securities—non-credit related — (6,115 ) Subtotal (692 ) 834 Tax (provision) benefit 79 (347 ) Net unrealized gain (loss) on investment securities in accumulated other comprehensive loss $ (613 ) $ 487 |
Schedule of Securities Classified by Contractual Maturity Date | The expected maturity distribution of the Company’s mortgage-backed securities and the contractual maturity distribution of the Company’s Non-RMBS securities classified as available-for-sale and held-to-maturity were: June 30, 2018 Available-for-sale (Dollars in thousands) Amortized Cost Fair Value RMBS—U.S. agencies 1 : Due within one year $ 1,371 $ 1,344 Due one to five years 4,004 3,933 Due five to ten years 3,008 2,973 Due after ten years 4,719 4,676 Total RMBS—U.S. agencies 1 13,102 12,926 RMBS—Non-agency: Due within one year 3,012 2,760 Due one to five years 8,902 8,116 Due five to ten years 5,583 4,966 Due after ten years 1,887 1,601 Total RMBS—Non-agency 19,384 17,443 Non-RMBS: Due within one year 75,701 76,925 Due one to five years 58,979 59,920 Due five to ten years — — Due after ten years 13,831 13,091 Total Non-RMBS 148,511 149,936 Total $ 180,997 $ 180,305 1 |
LOANS, LEASES & ALLOWANCE FOR35
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Loans by Class | The following table sets forth the composition of the loan and lease portfolio as of the dates indicated: At June 30, (Dollars in thousands) 2018 2017 Single family real estate secured: Mortgage $ 4,198,941 $ 3,901,754 Home equity 2,306 2,092 Warehouse and other 1 412,085 452,390 Multifamily real estate secured 1,800,919 1,619,404 Commercial real estate secured 220,379 162,715 Auto and RV secured 213,522 154,246 Factoring 169,885 160,674 Commercial & Industrial 1,481,051 992,232 Other 18,598 3,754 Total gross loans and leases 8,517,686 7,449,261 Allowance for loan and lease losses (49,151 ) (40,832 ) Unaccreted discounts and loan and lease fees (36,246 ) (33,936 ) Total net loans and leases $ 8,432,289 $ 7,374,493 1 The balance of single family warehouse loans was $175,508 at June 30, 2018 and $187,034 at June 30, 2017 |
Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent | The following table summarizes activity in the allowance for loan and lease losses for the periods indicated: At June 30, (Dollars in thousands) 2018 2017 2016 Balance—beginning of period $ 40,832 $ 35,826 $ 28,327 Provision for loan and lease loss 25,800 11,061 9,700 Charged off (15,979 ) (5,096 ) (808 ) Transfers to held for sale (2,307 ) (1,828 ) (2,727 ) Recoveries 805 869 1,334 Balance—end of period $ 49,151 $ 40,832 $ 35,826 June 30, 2018 Single Family (Dollars in thousands) Mortgage Home Warehouse & Other Multi- Commercial Auto and RV secured Factoring Commercial & Industrial Other Total Balance at July 1, 2017 $ 19,972 $ 19 $ 2,298 $ 4,638 $ 1,008 $ 2,379 $ 401 $ 9,881 $ 236 $ 40,832 Provision for loan and lease loss 632 (18 ) 69 372 (159 ) 1,390 44 6,357 17,113 25,800 Charge-offs (271 ) (1 ) (287 ) — — (803 ) — — (14,617 ) (15,979 ) Transfers to held for sale — — — — — — — — (2,307 ) (2,307 ) Recoveries 35 14 — — — 212 — — 544 805 Balance at June 30, 2018 $ 20,368 $ 14 $ 2,080 $ 5,010 $ 849 $ 3,178 $ 445 $ 16,238 $ 969 $ 49,151 June 30, 2017 Single Family (Dollars in thousands) Mortgage Home Warehouse & Other Multi- Commercial Auto and RV secured Factoring Commercial & Industrial Other Total Balance at July 1, 2016 $ 18,666 $ 23 $ 2,685 $ 3,938 $ 882 $ 1,615 $ 245 $ 7,630 $ 142 $ 35,826 Provision for loan and lease loss 2,308 (6 ) (387 ) 323 110 990 156 2,251 5,316 11,061 Charge-offs (1,115 ) (23 ) — — (23 ) (433 ) — — (3,502 ) (5,096 ) Transfers to held for sale — — — — — — — — (1,828 ) (1,828 ) Recoveries 113 25 — 377 39 207 — — 108 869 Balance at June 30, 2017 $ 19,972 $ 19 $ 2,298 $ 4,638 $ 1,008 $ 2,379 $ 401 $ 9,881 $ 236 $ 40,832 June 30, 2016 Single Family (Dollars in thousands) Mortgage Home Warehouse & Other Multi- Commercial Auto and RV secured Factoring Commercial & Industrial Consumer & Other Total Balance at July 1, 2015 $ 13,664 $ 122 $ 1,879 $ 4,363 $ 1,103 $ 953 $ 292 $ 5,882 $ 69 $ 28,327 Provision for loan and lease loss 5,040 (134 ) 806 (311 ) (1,056 ) 854 (47 ) 1,748 2,800 9,700 Charge-offs (205 ) (3 ) — (114 ) (147 ) (339 ) — — — (808 ) Transfers to held for sale — — — — — — — — (2,727 ) (2,727 ) Recoveries 167 38 — — 982 147 — — — 1,334 Balance at June 30, 2016 $ 18,666 $ 23 $ 2,685 $ 3,938 $ 882 $ 1,615 $ 245 $ 7,630 $ 142 $ 35,826 |
Schedule of Impaired Financing Receivables | The following table summarizes the composition of the impaired loans and leases: At June 30, (Dollars in thousands) 2018 2017 2016 Nonaccrual loans and leases—90+ days past due plus other nonaccrual loans and leases $ 30,197 $ 26,815 $ 28,790 Troubled debt restructured loans and leases—non-accrual 1,029 1,578 3,069 Troubled debt restructured loans and leases—performing — — 210 Total impaired loans and leases $ 31,226 $ 28,393 $ 32,069 June 30, 2018 (Dollars in thousands) Unpaid Principal Balance Adjustment 1 Recorded Accrued Interest/Origination Fees Total Related Related With no related allowance recorded: Single family real estate secured: Mortgage In-house originated $ 1,584 $ 951 $ 633 $ 78 $ 711 $ — $ — Purchased 3,598 1,739 1,859 — 1,859 — — Multifamily real estate secured Purchased 480 248 232 — 232 — — Auto and RV secured In-house originated 369 309 60 2 62 — — With an allowance recorded: Single family real estate secured: Mortgage In-house originated 24,607 47 24,560 — 24,560 247 — Purchased 1,394 — 1,394 21 1,415 14 — Home equity In-house originated 16 — 16 — 16 1 — Commercial & Industrial 172 — 172 — 172 9 — Other 111 — 111 — 111 7 — Total $ 32,331 $ 3,294 $ 29,037 $ 101 $ 29,138 $ 278 $ — As a % of total gross loans and leases 0.38 % 0.04 % 0.34 % — % 0.34 % — % — % June 30, 2017 (Dollars in thousands) Unpaid Principal Balance Adjustment 1 Recorded Accrued Interest/Origination Fees Total Related Related With no related allowance recorded: Single family real estate secured: Mortgage In-house originated $ 4,240 $ 1,032 $ 3,208 $ 205 $ 3,413 $ — $ — Purchased 4,563 1,903 2,660 — 2,660 — — Multifamily real estate secured Purchased 492 215 277 — 277 — — Auto and RV secured In-house originated 418 295 123 3 126 — — With an allowance recorded: Single family real estate secured: Mortgage In-house originated 16,124 12 16,112 — 16,112 643 — Purchased 1,429 32 1,397 17 1,414 37 — Home equity In-house originated 18 2 16 — 16 1 — Multifamily real estate secured In-house originated 4,170 192 3,978 186 4,164 19 — Auto and RV secured In-house originated 42 8 34 2 36 1 — Commercial & Industrial 314 — 314 — 314 314 — Other 274 — 274 — 274 43 — Total $ 32,084 $ 3,691 $ 28,393 $ 413 $ 28,806 $ 1,058 $ — As a % of total gross loans and leases 0.43 % 0.05 % 0.38 % 0.01 % 0.39 % 0.01 % — % 1 Impaired loans with an allowance recorded do not have any charge-offs. Principal balance adjustments on impaired loans with an allowance recorded represent interest payments that have been applied to the book balance as a result of the loans’ non-accrual status. |
Schedule of Allowance for Credit Losses on Financing Receivables | The following tables present the balance in the allowance for loan and lease losses and the recorded investment in loans and leases by portfolio segment and based on impairment evaluation method: June 30, 2018 Single Family (Dollars in thousands) Mortgage Home Warehouse & Other Multi- Commercial Auto and RV secured Factoring Commercial & Industrial Other Total Allowance for loan and lease losses: Ending allowance balance attributable to loans and leases: Individually evaluated for impairment– general allowance $ 261 $ 1 $ — $ — $ — $ — $ — $ 9 $ 7 $ 278 Individually evaluated for impairment– specific allowance — — — — — — — — — — Collectively evaluated for impairment 20,107 13 2,080 5,010 849 3,178 445 16,229 962 48,873 Total ending allowance balance $ 20,368 $ 14 $ 2,080 $ 5,010 $ 849 $ 3,178 $ 445 $ 16,238 $ 969 $ 49,151 Loans and leases: Loans and leases individually evaluated for impairment 1 $ 28,446 $ 16 $ — $ 232 $ — $ 60 $ — $ 172 $ 111 $ 29,037 Loans and leases collectively evaluated for impairment 4,170,495 2,290 412,085 1,800,687 220,379 213,462 169,885 1,480,879 18,487 8,488,649 Principal loan and lease balance 4,198,941 2,306 412,085 1,800,919 220,379 213,522 169,885 1,481,051 18,598 8,517,686 Unaccreted discounts and loan and lease fees 9,187 48 (706 ) 5,063 836 2,065 (48,039 ) (3,884 ) (816 ) (36,246 ) Total recorded investment in loans and leases $ 4,208,128 $ 2,354 $ 411,379 $ 1,805,982 $ 221,215 $ 215,587 $ 121,846 $ 1,477,167 $ 17,782 $ 8,481,440 1 Loans and leases evaluated for impairment include TDRs that have been performing for more than six months. June 30, 2017 Single Family (Dollars in thousands) Mortgage Home Warehouse & Other Multi- Commercial Auto and RV secured Factoring Commercial & Industrial Other Total Allowance for loan and lease losses: Ending allowance balance attributable to loans and leases: Individually evaluated for impairment – general allowance $ 680 $ 1 $ — $ 19 $ — $ 1 $ — $ 314 $ 43 $ 1,058 Individually evaluated for impairment – specific allowance $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 19,292 18 2,298 4,619 1,008 2,378 401 9,567 193 39,774 Total ending allowance balance $ 19,972 $ 19 $ 2,298 $ 4,638 $ 1,008 $ 2,379 $ 401 $ 9,881 $ 236 $ 40,832 Loans and leases: Loans and leases individually evaluated for impairment 1 $ 23,377 $ 16 $ — $ 4,255 $ — $ 157 $ — $ 314 $ 274 $ 28,393 Loans and leases collectively evaluated for impairment 3,878,377 2,076 452,390 1,615,149 162,715 154,089 160,674 991,918 3,480 7,420,868 Principal loan and lease balance 3,901,754 2,092 452,390 1,619,404 162,715 154,246 160,674 992,232 3,754 7,449,261 Unaccreted discounts and loan and lease fees 10,486 34 (1,702 ) 4,586 744 2,054 (49,350 ) (640 ) (148 ) (33,936 ) Total recorded investment in loans and leases $ 3,912,240 $ 2,126 $ 450,688 $ 1,623,990 $ 163,459 $ 156,300 $ 111,324 $ 991,592 $ 3,606 $ 7,415,325 1 Loans and leases evaluated for impairment include TDRs that have been performing for more than six |
Schedule of Financing Receivables, Nonaccrual Status | Nonaccrual loans and leases consisted of the following as of the dates indicated: At June 30, (Dollars in thousands) 2018 2017 Nonaccrual loans and leases: Single Family Real Estate Secured: Mortgage In-house originated $ 25,193 $ 19,320 Purchased 3,253 4,057 Home Equity In-house originated 16 16 Multifamily Real Estate Secured In-house originated — 3,978 Purchased 232 277 Total nonaccrual loans secured by real estate 28,694 27,648 Auto and RV Secured 60 157 Commercial and Industrial 2,361 314 Other 111 274 Total nonaccrual loans and leases $ 31,226 $ 28,393 Nonaccrual loans and leases to total loans and leases 0.37 % 0.38 % |
Schedule of Loans Performing and Nonaccrual | The following tables provide the outstanding unpaid balance of loans and leases that are performing and nonaccrual by portfolio class as of the dates indicated: June 30, 2018 Single Family (Dollars in thousands) Mortgage Home Warehouse & Other Multi- Commercial Auto and RV secured Factoring Commercial & Industrial Other Total Performing $ 4,170,495 $ 2,290 $ 412,085 $ 1,800,687 $ 220,379 $ 213,462 $ 169,885 $ 1,478,690 $ 18,487 $ 8,486,460 Nonaccrual 28,446 16 — 232 — 60 — 2,361 111 31,226 Total $ 4,198,941 $ 2,306 $ 412,085 $ 1,800,919 $ 220,379 $ 213,522 $ 169,885 $ 1,481,051 $ 18,598 $ 8,517,686 June 30, 2017 Single Family (Dollars in thousands) Mortgage Home Warehouse & Other Multi- Commercial Auto and RV secured Factoring Commercial & Industrial Other Total Performing $ 3,878,377 $ 2,076 $ 452,390 $ 1,615,149 $ 162,715 $ 154,089 $ 160,674 $ 991,918 $ 3,480 $ 7,420,868 Nonaccrual 23,377 16 — 4,255 — 157 — 314 274 28,393 Total $ 3,901,754 $ 2,092 $ 452,390 $ 1,619,404 $ 162,715 $ 154,246 $ 160,674 $ 992,232 $ 3,754 $ 7,449,261 The Company divides loan balances when determining general loan loss reserves between purchases and originations as follows: June 30, 2018 Single Family Real Estate Secured: Mortgage Multifamily Real Estate Secured Commercial Real Estate Secured (Dollars in thousands) Origination Purchase Total Origination Purchase Total Origination Purchase Total Performing $ 4,134,011 $ 36,484 $ 4,170,495 $ 1,735,051 $ 65,636 $ 1,800,687 $ 212,235 $ 8,144 $ 220,379 Nonaccrual 25,193 3,253 28,446 — 232 232 — — — Total $ 4,159,204 $ 39,737 $ 4,198,941 $ 1,735,051 $ 65,868 $ 1,800,919 $ 212,235 $ 8,144 $ 220,379 June 30, 2017 Single Family Real Estate Secured: Mortgage Multifamily Real Estate Secured Commercial Real Estate Secured (Dollars in thousands) Origination Purchase Total Origination Purchase Total Origination Purchase Total Performing $ 3,827,649 $ 50,728 $ 3,878,377 $ 1,528,912 $ 86,237 $ 1,615,149 $ 150,880 $ 11,835 $ 162,715 Nonaccrual 19,320 4,057 23,377 3,978 277 4,255 — — — Total $ 3,846,969 $ 54,785 $ 3,901,754 $ 1,532,890 $ 86,514 $ 1,619,404 $ 150,880 $ 11,835 $ 162,715 |
Schedule of Troubled Debt Restructurings on Financing Receivables | The following tables present the loans modified as TDRs during the periods indicated: Year Ended June 30, (Dollars in thousands) 2018 2017 2016 Other — 259 — Total loans modified as TDRs $ — $ 259 $ — June 30, 2018 Single Family (Dollars in thousands) Mortgage Home Warehouse & Other Multi- Commercial Auto and RV secured Factoring Commercial & Industrial Other Total Performing loans temporarily modified as TDR $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Nonaccrual loans and leases 28,446 16 — 232 — 60 — 2,361 111 31,226 Total impaired loans and leases $ 28,446 $ 16 $ — $ 232 $ — $ 60 $ — $ 2,361 $ 111 $ 31,226 Year Ended June 30, 2018 Single Family (Dollars in thousands) Mortgage Home Warehouse & Other Multi- Commercial Auto and RV secured Factoring Commercial & Industrial Other Total Interest income recognized on performing TDRs $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Average balances of performing TDRs $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Average balances of impaired loans and leases $ 27,108 $ 16 $ — $ 2,385 $ — $ 129 $ — $ 535 $ 247 $ 30,420 June 30, 2017 Single Family (Dollars in thousands) Mortgage Home Warehouse & Other Multi- Commercial Auto and RV secured Factoring Commercial & Industrial Other Total Performing loans temporarily modified as TDR $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Nonaccrual loans and leases 23,377 16 — 4,255 — 157 — 314 274 28,393 Total impaired loans and leases $ 23,377 $ 16 $ — $ 4,255 $ — $ 157 $ — $ 314 $ 274 $ 28,393 Year Ended June 30, 2017 Single Family (Dollars in thousands) Mortgage Home Warehouse & Other Multi- Commercial Auto and RV secured Factoring Commercial & Industrial Other Total Interest income recognized on performing TDRs $ 7 $ — $ — $ — $ — $ — $ — $ — $ — $ 7 Average balances of performing TDRs $ 125 $ — $ — $ — $ — $ — $ — $ — $ — $ 125 Average balances of impaired loans and leases $ 28,823 $ 34 $ — $ 4,409 $ 144 $ 231 $ — $ 63 $ 450 $ 34,154 June 30, 2016 Single Family (Dollars in thousands) Mortgage Home Warehouse & Other Multi- Commercial Auto and RV secured Factoring Commercial & Industrial Other Total Performing loans temporarily modified as TDR $ 210 $ — $ — $ — $ — $ — $ — $ — $ — $ 210 Nonaccrual loans 28,400 33 — 2,218 254 278 — — 676 31,859 Total impaired loans $ 28,610 $ 33 $ — $ 2,218 $ 254 $ 278 $ — $ — $ 676 $ 32,069 Year Ended June 30, 2016 Single Family (Dollars in thousands) Mortgage Home Warehouse & Other Multi- Commercial Auto and RV secured Factoring Commercial & Industrial Other Total Interest income recognized on performing TDRs $ 9 $ — $ — $ — $ — $ — $ — $ — $ — $ 9 Average balances of performing TDRs $ 214 $ — $ — $ — $ — $ — $ — $ — $ — $ 214 Average balances of impaired loans $ 22,969 $ 18 $ — $ 4,495 $ 969 $ 327 $ — $ — $ 135 $ 28,913 Year Ended June 30, 2018 (Dollars in thousands) Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled Debt Restructurings: Single family real estate secured: Mortgage In-house originated — $ — $ — Total — $ — $ — Year Ended June 30, 2017 (Dollars in thousands) Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled Debt Restructurings: Other 7 259 259 Total 7 $ 259 $ 259 Year Ended June 30, 2016 (Dollars in thousands) Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled Debt Restructurings: Single family real estate secured: Mortgage In-house originated — $ — $ — Total — $ — $ — |
Schedule of Financing Receivable Credit Quality Indicators | The following tables present the composition of our loan and lease portfolio by credit quality indicator as of the dates indicated: June 30, 2018 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total Single family real estate secured: Mortgage In-house originated $ 4,113,537 $ 19,403 $ 26,264 $ — $ 4,159,204 Purchased 36,024 461 3,252 — 39,737 Home equity In-house originated 2,290 — 16 — 2,306 Warehouse and other In-house originated 412,085 — — — 412,085 Multifamily real estate secured In-house originated 1,731,068 3,983 — — 1,735,051 Purchased 64,663 — 1,205 — 65,868 Commercial real estate secured In-house originated 212,235 — — — 212,235 Purchased 6,226 1,918 — — 8,144 Auto and RV secured In-house originated 213,455 — 67 — 213,522 Factoring 169,885 — — — 169,885 Commercial & Industrial 1,471,433 5,460 1,969 2,189 1,481,051 Other 18,369 118 111 — 18,598 Total $ 8,451,270 $ 31,343 $ 32,884 $ 2,189 $ 8,517,686 As of % of gross loans and leases 99.2 % 0.4 % 0.4 % — % 100.0 % June 30, 2017 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total Single family real estate secured: Mortgage In-house originated $ 3,808,886 $ 18,763 $ 19,320 $ — $ 3,846,969 Purchased 49,893 538 4,354 — 54,785 Home equity In-house originated 2,076 — 16 — 2,092 Warehouse and other In-house originated 452,390 — — — 452,390 Multifamily real estate secured In-house originated 1,526,931 1,981 3,978 — 1,532,890 Purchased 84,775 452 1,287 — 86,514 Commercial real estate secured In-house originated 150,880 — — — 150,880 Purchased 9,868 1,967 — — 11,835 Auto and RV secured In-house originated 153,994 77 175 — 154,246 Factoring 160,674 — — — 160,674 Commercial & Industrial 991,918 — 314 — 992,232 Other 3,480 — 274 — 3,754 Total $ 7,395,765 $ 23,778 $ 29,718 $ — $ 7,449,261 As of % of gross loans and leases 99.3 % 0.3 % 0.4 % — % 100.0 % |
Schedule of Past Due Financing Receivables | The following tables provide the outstanding unpaid balance of loans and leases that are past due 30 days or more by portfolio class as of the dates indicated: June 30, 2018 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Single family real estate secured: Mortgage In-house originated $ 7,830 $ 3,240 $ 22,009 $ 33,079 Purchased 354 105 1,183 1,642 Home equity In-house originated — — 16 16 Multifamily real estate secured In-house originated 410 — — 410 Auto and RV secured In-house originated 284 22 9 315 Commercial & Industrial 300 — 2,362 2,662 Other 79 111 111 301 Total $ 9,257 $ 3,478 $ 25,690 $ 38,425 As a % of gross loans and leases 0.11 % 0.04 % 0.30 % 0.45 % June 30, 2017 (Dollars in thousands) 30-59 Days Past 60-89 Days Past 90+ Days Past Due Total Single family real estate secured: Mortgage In-house originated $ 4,892 $ 2,325 $ 19,297 $ 26,514 Purchased 244 101 1,751 2,096 Home equity In-house originated — — 16 16 Multifamily real estate secured In-house originated — — 3,978 3,978 Auto and RV secured In-house originated 149 77 3 229 Commercial & Industrial — — 314 314 Other — — 274 274 Total $ 5,285 $ 2,503 $ 25,633 $ 33,421 As a % of gross loans and leases 0.07 % 0.03 % 0.35 % 0.45 % |
FURNITURE, EQUIPMENT AND SOFT36
FURNITURE, EQUIPMENT AND SOFTWARE (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | A summary of the cost and accumulated depreciation and amortization for leasehold improvements, furniture, equipment and software is as follows: At June 30, (Dollars in thousands) 2018 2017 Leasehold improvements $ 1,953 $ 1,983 Furniture and fixtures 5,418 5,083 Computer hardware and equipment 13,863 14,254 Software 27,605 17,228 Total 48,839 38,548 Less accumulated depreciation and amortization (27,385 ) (21,889 ) Furniture, equipment and software—net $ 21,454 $ 16,659 |
GOODWILL AND OTHER IINTANGIBL37
GOODWILL AND OTHER IINTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Activity in the Company's Goodwill Balance | The following table summarizes the activity in the Company’s goodwill balance as of the dates indicated: (Dollars in thousands) Total Balance at July 1, 2017 $ — Goodwill incident to acquisition 35,719 Balance at June 30, 2018 $ 35,719 |
Schedule of Company's Acquired Intangible Assets | The Company’s acquired intangible assets are summarized as follows as of the dates indicated: June 30, 2018 June 30, 2017 (Dollars in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Covenant not to compete $ 930 $ 58 $ 872 $ — $ — $ — Customer relationships 9,820 243 9,577 — — — Developed technologies 21,680 326 21,354 — — — Trade name 290 24 266 — — — Total intangible assets $ 32,720 $ 651 $ 32,069 $ — $ — $ — |
Schedule of Weighted Average Useful Life of Acquired Intangible Assets | The weighted-average useful lives of intangible assets at the time of acquisition were as follows: Weighted-Average Covenant not to compete 4 Customer relationships 12 Developed technologies 5 Trade name 3 |
Schedule of Estimated Future Amortization Expense of Acquired Intangible Assets | Estimated future amortization expense related to finite-lived intangible assets at June 30, 2018 is as follows: (Dollars in thousands) Amortization Expense For the fiscal year ending June 30, 2019 $ 5,270 2020 6,158 2021 5,808 2022 4,698 2023 4,525 Thereafter 5,610 Total $ 32,069 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Deposits [Abstract] | |
Schedule of Deposits | Deposit accounts are summarized as follows: At June 30, 2018 2017 (Dollars in thousands) Amount Rate 1 Amount Rate 1 Non-interest bearing $ 1,015,355 — % $ 848,544 — % Interest bearing: Demand 2,519,845 1.60 % 2,593,491 0.89 % Savings 2,482,430 1.31 % 2,651,176 0.81 % 5,002,275 1.46 % 5,244,667 0.85 % Time deposits: $250 and under 2 1,837,274 2.34 % 774,627 2.54 % Greater than $250 130,446 2.05 % 31,669 0.39 % Total time deposits 1,967,720 2.32 % 806,296 2.46 % Total interest bearing 2 6,969,995 1.70 % 6,050,963 1.06 % Total deposits $ 7,985,350 1.48 % $ 6,899,507 0.93 % 1 Based on weighted-average stated interest rates at end of period . 2 The total interest-bearing includes brokered deposits of $2,055.9 million and $1,104.3 million as of June 30, 2018 and June 30, 2017 , respectively, of which $1,692.8 million and $611.0 million |
Schedule of Maturities For Total Time Deposits | The scheduled maturities of time deposits are as follows: At June 30, (Dollars in thousands) 2018 Within 12 months $ 1,259,119 13 to 24 months 97,226 25 to 36 months 11,118 37 to 48 months 35,981 49 to 60 months 84,538 Thereafter 479,738 Total $ 1,967,720 |
ADVANCES FROM THE FEDERAL HOM39
ADVANCES FROM THE FEDERAL HOME LOAN BANK (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of Federal Home Loan Bank, Advances, by Maturity | Fixed-rate advances from FHLB are scheduled to mature as follows: At June 30, 2018 2017 (Dollars in thousands) Amount Weighted- Average Rate Amount Weighted- Average Rate Within one year 1 $ 229,500 2.02 % $ 265,000 1.28 % After one but within two years 55,000 1.79 % 147,500 1.98 % After two but within three years 65,000 2.30 % 55,000 1.79 % After three but within four years 50,000 2.47 % 65,000 2.30 % After four but within five years 27,500 2.08 % 50,000 2.47 % After five years 30,000 2.82 % 57,500 2.47 % Total $ 457,000 2.14 % $ 640,000 1.79 % 1. Within one year category includes $147,500 of term advances. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Provision for Income Taxes | The provision for income taxes is as follows: At June 30, (Dollars in thousands) 2018 2017 2016 Current: Federal $ 50,170 $ 74,053 $ 67,773 State 20,084 26,120 24,478 70,254 100,173 92,251 Deferred: Federal 15,509 (1,886 ) (5,363 ) State 1,525 (334 ) (1,284 ) 17,034 (2,220 ) (6,647 ) Total $ 87,288 $ 97,953 $ 85,604 |
Schedule of Effective Income Tax Rate Reconciliation | The differences between the statutory federal income tax rate and the effective tax rates are summarized as follows: At June 30, 2018 2017 2016 Statutory federal tax rate 28.10 % 35.00 % 35.00 % Increase (decrease) resulting from: State taxes—net of federal tax benefit 7.85 % 7.23 % 7.31 % Tax reform deferred tax remeasurement 3.83 % — % — % Cash surrender value (0.02 )% (0.03 )% (0.03 )% Tax credits (2.38 )% (0.19 )% (0.18 )% Non-taxable income (0.19 )% (0.28 )% (0.36 )% Excess benefit RSU vesting (1.00 )% — % — % Other 0.23 % 0.37 % 0.04 % Effective tax rate 36.42 % 42.10 % 41.78 % |
Schedule of Net Deferred Tax Asset | The components of the net deferred tax asset are as follows: At June 30, (Dollars in thousands) 2018 2017 Deferred tax assets: Allowance for loan and lease losses and charge-offs $ 15,829 $ 18,845 State taxes 2,164 6,893 Stock-based compensation expense 3,432 2,703 Unrealized net (gains) losses on securities 225 (385 ) Deferred bonus / vacation 761 959 Securities impaired — 8,395 Deferred loan fees 1,372 2,377 Total deferred tax assets 23,783 39,787 Deferred tax liabilities: FHLB stock dividend (833 ) (1,181 ) Other assets—prepaids (1,513 ) (1,363 ) Depreciation and amortization (3,480 ) (2,902 ) Total deferred tax liabilities (5,826 ) (5,446 ) Net deferred tax asset $ 17,957 $ 34,341 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following is a reconciliation of the beginning and ending amount of unrecognized tax positions for the periods presented: (Dollars in thousands) 2018 2017 2016 Balance—beginning of period $ 865 $ 880 $ 779 Additions—current year tax positions 142 180 181 Additions—prior year tax positions 149 17 — Reductions—prior year tax positions (21 ) (212 ) (80 ) Total liability for unrecognized tax positions—end of period $ 1,135 $ 865 $ 880 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of stock option activity under the Plans during the periods indicated is presented below: Number of Shares 1 Weighted-Average Exercise Price Per Share 1 Outstanding—June 30, 2015 82,400 $ 1.84 Granted — — Exercised (82,400 ) 1.84 Canceled — — Outstanding—June 30, 2016 — $ — Granted — — Exercised — — Canceled — — Outstanding—June 30, 2017 — $ — Granted — $ — Exercised — $ — Canceled — $ — Outstanding—June 30, 2018 — $ — Options exercisable—June 30, 2016 — $ — Options exercisable—June 30, 2017 — $ — Options exercisable—June 30, 2018 — $ — 1 Amounts have been retroactively restated for the fiscal year ended June 30, 2015 presented to reflect the four |
Schedule of Unrecognized Compensation Cost, Nonvested Awards | At June 30, 2018 unrecognized compensation expense related to non-vested awards aggregated to $40,588 and is expected to be recognized in future periods as follows: (Dollars in thousands) Stock Award Compensation Expense For the fiscal year ending June 30: 2019 $ 18,592 2020 11,871 2021 5,351 2022 2,226 2023 1,382 Thereafter 1,166 Total $ 40,588 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table presents the status and changes in restricted stock units for the periods indicated: Restricted Stock Units 1 Weighted-Average Grant-Date Fair Value 1 Non-vested balance at June 30, 2015 1,135,088 $ 17.01 Granted 615,834 26.60 Vested (536,528 ) 16.14 Canceled (154,668 ) 18.70 Non-vested balance at June 30, 2016 1,059,726 $ 22.53 Granted 843,611 21.13 Vested (570,764 ) 20.86 Canceled (92,251 ) 20.26 Non-vested balance at June 30, 2017 1,240,322 $ 22.52 Granted 747,022 26.53 Vested (629,755 ) 22.55 Canceled (123,858 ) 23.38 Non-vested balance at June 30, 2018 1,233,731 $ 24.84 1 Amounts have been retroactively restated for the period June 30, 2015 through November 17, 2015 to reflect the four |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Common Stock Issued and Outstanding | Changes in common stock issued and outstanding were as follows: At June 30, 2018 2017 2016 Issued Outstanding Issued Outstanding Issued 1 Outstanding 1 Beginning of year: 65,115,932 63,536,244 64,513,494 63,219,392 63,145,364 62,075,004 Common stock issued through option exercise or exchange — — — — 82,400 82,400 Common stock issued through public offering — — — — 723,808 723,808 Repurchase of treasury stock — (1,233,491 ) — — — — Common stock issued through grants of restricted stock units 680,128 385,311 602,438 316,852 561,922 338,180 End of year: 65,796,060 62,688,064 65,115,932 63,536,244 64,513,494 63,219,392 1 Common stock amounts have been retroactively restated for the period July 1, 2015 through November 16, 2015 to reflect the four -for-one forward split of the Company’s common stock effected in the form of a stock dividend that was distributed on November 17, 2015. The par value of common stock remains unchanged at $0.01 |
Schedule of Common Stock Sold Through ATM Offering | The details of the shares of common stock sold through the 2015 ATM Offering through December 31, 2015 are as follows (dollars in thousands, except per share data): Distribution Agent Month Weighted Average Per Share Price 1 Number of 1 Net Proceeds Compensation to Distribution Agent FBR Capital Markets & Co. February 2015 $ 22.68 40,000 $ 884 $ 23 FBR Capital Markets & Co. March 2015 $ 23.38 518,528 $ 11,818 $ 303 FBR Capital Markets & Co. April 2015 $ 23.10 265,088 $ 5,971 $ 153 FBR Capital Markets & Co. May 2015 $ 23.69 122,800 $ 2,837 $ 73 FBR Capital Markets & Co. June 2015 $ 24.69 251,592 $ 6,057 $ 155 FBR Capital Markets & Co. July 2015 $ 27.37 280,000 $ 7,471 $ 192 FBR Capital Markets & Co. August 2015 $ 32.81 40,000 $ 1,279 $ 33 FBR Capital Markets & Co. September 2015 $ 30.99 240,000 $ 7,252 $ 186 FBR Capital Markets & Co. October 2015 $ 32.43 163,808 $ 5,181 $ 132 1 Amounts have been retroactively restated to reflect the four |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted EPS | The following table presents the calculation of basic and diluted EPS: At June 30, (Dollars in thousands, except per share data) 2018 2017 2016 Earnings Per Common Share Net income $ 152,411 $ 134,740 $ 119,291 Preferred stock dividends (309 ) (309 ) (309 ) Net income attributable to common shareholders $ 152,102 $ 134,431 $ 118,982 Average common shares issued and outstanding 63,058,854 63,358,886 62,909,411 Average unvested RSUs (as revised for 2017 and 2016) 77,378 297,656 687,848 Total qualifying shares (as revised for 2017 and 2016) 63,136,232 63,656,542 63,597,259 Earnings per common share (as revised for 2017 and 2016) $ 2.41 $ 2.11 $ 1.87 Diluted Earnings Per Common Share Dilutive net income attributable to common shareholders $ 152,102 $ 134,431 $ 118,982 Average common shares issued and outstanding (as revised for 2017 and 2016) 63,136,232 63,656,542 63,597,259 Dilutive effect of stock options — — 5,845 Dilutive effect of average unvested RSUs (as revised for 2017 and 2016) 1,010,988 258,558 69,176 Total dilutive common shares outstanding (as revised for 2017 and 2016) 64,147,220 63,915,100 63,672,280 Diluted earnings per common share (as revised for 2017 and 2016) $ 2.37 $ 2.10 $ 1.87 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contractual Obligation, Fiscal Year Maturity Schedule | Pursuant to the terms of these non-cancelable lease agreements in effect at June 30, 2018 , future minimum lease payments are as follows: (Dollars in thousands) Future minimum lease payments 2019 $ 4,573 2020 6,652 2021 6,266 2022 7,415 2023 7,667 Thereafter 54,551 Total $ 87,124 |
MINIMUM REGULATORY CAPITAL RE45
MINIMUM REGULATORY CAPITAL REQUIREMENTS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The Bank’s capital amounts, capital ratios and capital requirements under Basel III were as follows: BofI Holding, Inc. BofI Federal Bank “Well Minimum Capital (Dollars in thousands) June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Regulatory Capital: Tier 1 $ 893,338 $ 833,759 $ 837,985 $ 804,317 Common equity tier 1 $ 888,275 $ 828,696 $ 837,985 $ 804,317 Total capital (to risk-weighted assets) $ 993,650 $ 925,720 $ 887,297 $ 845,278 Assets: Average adjusted $ 9,450,894 $ 8,380,909 $ 9,509,891 $ 8,374,509 Total risk-weighted $ 6,694,963 $ 5,651,522 $ 6,686,634 $ 5,645,112 Regulatory Capital Ratios: Tier 1 leverage (core) capital to adjusted average assets 9.45 % 9.95 % 8.88 % 9.60 % 5.00 % 4.00 % Common equity tier 1 capital (to risk-weighted assets) 13.27 % 14.66 % 12.53 % 14.25 % 6.50 % 4.50 % Tier 1 capital (to risk-weighted assets) 13.34 % 14.75 % 12.53 % 14.25 % 8.00 % 6.00 % Total capital (to risk-weighted assets) 14.84 % 16.38 % 13.27 % 14.97 % 10.00 % 8.00 % |
PARENT-ONLY CONDENSED FINANCI46
PARENT-ONLY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheets | The following BofI Holding, Inc. (Parent company only) financial information should be read in conjunction with the consolidated financial statements of the Company and the other notes to the consolidated financial statements: BofI Holding, Inc. (Parent Company Only) CONDENSED BALANCE SHEETS At June 30, (Dollars in thousands) 2018 2017 ASSETS Cash and cash equivalents $ 108,085 $ 81,356 Loans 20 29 Investment securities — 13 Other assets 10,238 5,250 Investment in subsidiary 905,159 804,803 Total assets $ 1,023,502 $ 891,451 LIABILITIES AND STOCKHOLDERS’ EQUITY Subordinated notes and debentures $ 54,521 $ 54,313 Accrued interest payable 389 339 Accounts payable and accrued liabilities 8,079 2,552 Total liabilities 62,989 57,204 Stockholders’ equity 960,513 834,247 Total liabilities and stockholders’ equity $ 1,023,502 $ 891,451 |
Statements of Income | BofI Holding, Inc. (Parent Company Only) STATEMENTS OF INCOME Year Ended June 30, (Dollars in thousands) 2018 2017 2016 Interest income $ 479 $ 621 $ 136 Interest expense 3,648 3,613 1,275 Net interest (expense) income (3,169 ) (2,992 ) (1,139 ) Provision for loan losses — — — Net interest (expense) income, after provision for loan losses (3,169 ) (2,992 ) (1,139 ) Non-interest income (loss) 153 — 339 Non-interest expense and tax benefit 11,825 8,561 7,345 Income (loss) before dividends from subsidiary and equity in undistributed income of subsidiary (14,841 ) (11,553 ) (8,145 ) Dividends from subsidiary 69,800 6,400 2,900 Equity in undistributed earnings of subsidiary 97,452 139,893 124,536 Net income $ 152,411 $ 134,740 $ 119,291 Comprehensive income $ 151,311 $ 142,531 $ 121,386 |
Statements of Cash Flows | BofI Holding, Inc. (Parent Company Only) STATEMENT OF CASH FLOWS Year Ended June 30, (Dollars in thousands) 2018 2017 2016 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 152,411 $ 134,740 $ 119,291 Adjustments to reconcile net income to net cash used in operating activities: Accretion of discounts on securities (2 ) — (50 ) Amortization of borrowing costs 208 208 72 Impairment charge on securities — (1 ) — Accretion of discounts on loans — — (6 ) Net gain on investment securities (153 ) — — Gain on sales of loans held for sale — — (339 ) Stock-based compensation expense 20,399 14,535 11,326 Tax effect from exercise of common stock options and vesting of restricted stock grants — — — Equity in undistributed earnings of subsidiary (97,452 ) (139,893 ) (124,533 ) Decrease (increase) in other assets (4,938 ) 469 (1,361 ) Increase (decrease) in other liabilities 5,528 316 (1,637 ) Net cash provided by (used in) operating activities 76,001 10,374 2,763 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of available-for-sale securities 162 — 531 Proceeds from principal repayments on loans 9 8 8 Investment in subsidiary (4,000 ) — (17,000 ) Net cash used in investing activities (3,829 ) 8 (16,461 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from exercise of common stock options — — 151 Proceeds from issuance of common stock — — 21,120 Tax effect from exercise of common stock options and vesting of restricted stock units 7 432 2,531 Tax payments related to the settlement of restricted stock units (9,958 ) (6,532 ) (6,141 ) Repurchase of treasury stock (35,183 ) — — Proceeds from issuance of subordinated notes — — 51,000 Cash dividends on preferred stock (309 ) (309 ) (309 ) Net cash provided by (used in) financing activities (45,443 ) (6,409 ) 68,352 NET CHANGE IN CASH AND CASH EQUIVALENTS 26,729 3,973 54,654 CASH AND CASH EQUIVALENTS—Beginning of year 81,356 77,383 22,729 CASH AND CASH EQUIVALENTS—End of year $ 108,085 $ 81,356 $ 77,383 |
QUARTERLY FINANCIAL INFORMATI47
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Quarters Ended in Fiscal Year 2018 (Dollars in thousands, except per share data) June 30, March 31, December 31, September 30, Interest and dividend income $ 118,898 $ 144,880 $ 107,785 $ 103,511 Interest expense 31,850 28,197 23,572 22,961 Net interest income 87,048 116,683 84,213 80,550 Provision for loan losses 3,900 16,900 4,000 1,000 Net interest income after provision for loan losses 83,148 99,783 80,213 79,550 Non-interest income 16,977 23,525 17,099 13,340 Non-interest expense 49,673 45,434 40,809 38,020 Income before income taxes 50,452 77,874 56,503 54,870 Income tax expense 13,335 26,621 24,845 22,487 Net income $ 37,117 $ 51,253 $ 31,658 $ 32,383 Net income attributable to common stock $ 37,040 $ 51,176 $ 31,580 $ 32,306 Basic earnings per common share (revised) $ 0.59 $ 0.82 $ 0.50 $ 0.51 Diluted earnings per common share (revised) $ 0.58 $ 0.80 $ 0.49 $ 0.50 Quarters Ended in Fiscal Year 2017 (Dollars in thousands, except per share data) June 30, March 31, December 31, September 30, Interest and dividend income $ 98,543 $ 106,962 $ 94,301 $ 87,480 Interest expense 20,016 18,403 17,940 17,700 Net interest income 78,527 88,559 76,361 69,780 Provision for loan losses 200 4,862 4,100 1,900 Net interest income after provision for loan losses 78,327 83,697 72,261 67,880 Non-interest income 13,533 23,168 16,700 14,732 Non-interest expense 35,979 35,448 33,300 32,878 Income before income taxes 55,881 71,417 55,661 49,734 Income tax expense 23,332 30,423 23,361 20,837 Net income $ 32,549 $ 40,994 $ 32,300 $ 28,897 Net income attributable to common stock $ 32,472 $ 40,917 $ 32,222 $ 28,820 Basic earnings per common share (revised) $ 0.51 $ 0.64 $ 0.51 $ 0.45 Diluted earnings per common share (revised) $ 0.51 $ 0.64 $ 0.50 $ 0.45 |
ORGANIZATIONS AND SUMMARY OF 48
ORGANIZATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - NARRATIVE (Details) | Nov. 17, 2015 | Jun. 30, 2018USD ($)segmentstateshares | Jun. 30, 2017USD ($)shares | Nov. 30, 2015shares | Oct. 31, 2015shares |
Concentration Risk [Line Items] | |||||
Common stock split, conversion ratio | 4 | ||||
Common stock, shares authorized (in shares) | shares | 150,000,000 | 150,000,000 | 150,000,000 | 50,000,000 | |
Number of states in which the bank operates | state | 50 | ||||
Restricted cash, minimum reserve balances | $ | $ 78,433,000 | $ 57,529,000 | |||
Concentration risk, geographic area | California | ||||
Fixed assets, estimated useful lives | $ | $ 500 | ||||
Number of reportable units | segment | 1 | ||||
Number of operating units | segment | 1 | ||||
H and R Block Bank Deposits | Other | Emerald Advance | |||||
Concentration Risk [Line Items] | |||||
Loans and leases interest and dividend retainer fee (as percent) | 10.00% | ||||
Minimum | |||||
Concentration Risk [Line Items] | |||||
Fixed assets, cost capitalization threshold | 3 years | ||||
Maximum | |||||
Concentration Risk [Line Items] | |||||
Fixed assets, cost capitalization threshold | 7 years | ||||
Geographic concentration risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, item measured | mortgage portfolio | ||||
Mortgage loans | Geographic concentration risk | CALIFORNIA | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 71.08% | 69.57% |
ORGANIZATIONS AND SUMMARY OF 49
ORGANIZATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - REVISIONS OF CALCULATIONS OF BASIC AND DILUTED EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Common Share | |||||||||||
Net income attributable to common shareholders | $ 37,040 | $ 51,176 | $ 31,580 | $ 32,306 | $ 32,472 | $ 40,917 | $ 32,222 | $ 28,820 | $ 152,102 | $ 134,431 | $ 118,982 |
Average common shares issued and outstanding (in shares) | 63,058,854 | 63,358,886 | 62,909,411 | ||||||||
Average unvested RSUs (in shares) | 77,378 | 297,656 | 687,848 | ||||||||
Total qualifying shares (as revised for 2017 and 2016) (in shares) | 63,136,232 | 63,656,542 | 63,597,259 | ||||||||
Earnings per common share (in dollars per share) | $ 0.59 | $ 0.82 | $ 0.50 | $ 0.51 | $ 0.51 | $ 0.64 | $ 0.51 | $ 0.45 | $ 2.41 | $ 2.11 | $ 1.87 |
Diluted Earnings Per Common Share | |||||||||||
Dilutive net income attributable to common shareholders | $ 152,102 | $ 134,431 | $ 118,982 | ||||||||
Average common shares issued and outstanding (in shares) | 63,136,232 | 63,656,542 | 63,597,259 | ||||||||
Total dilutive common shares issued and outstanding (as revised for 2017 and 2016) (in shares) | 64,147,220 | 63,915,100 | 63,672,280 | ||||||||
Diluted earnings per common share (in dollars per share) | 0.58 | 0.80 | 0.49 | 0.50 | 0.51 | 0.64 | 0.50 | 0.45 | $ 2.37 | $ 2.10 | $ 1.87 |
Stock options | |||||||||||
Diluted Earnings Per Common Share | |||||||||||
Dilutive effect of stock options and average unvested RSUs (in shares) | 0 | 0 | 5,845 | ||||||||
Restricted Stock Units (RSUs) | |||||||||||
Diluted Earnings Per Common Share | |||||||||||
Dilutive effect of stock options and average unvested RSUs (in shares) | 1,010,988 | 258,558 | 69,176 | ||||||||
Previously Reported | |||||||||||
Earnings Per Common Share | |||||||||||
Net income attributable to common shareholders | $ 134,431 | $ 118,982 | |||||||||
Average common shares issued and outstanding (in shares) | 63,358,886 | 62,909,411 | |||||||||
Average unvested RSUs (in shares) | 1,491,228 | 1,355,796 | |||||||||
Total qualifying shares (as revised for 2017 and 2016) (in shares) | 64,850,114 | 64,265,207 | |||||||||
Earnings per common share (in dollars per share) | 0.58 | 0.80 | 0.49 | 0.50 | 0.50 | 0.63 | 0.50 | 0.45 | $ 2.07 | $ 1.85 | |
Diluted Earnings Per Common Share | |||||||||||
Dilutive net income attributable to common shareholders | $ 134,431 | $ 118,982 | |||||||||
Average common shares issued and outstanding (in shares) | 64,850,114 | 64,265,207 | |||||||||
Total dilutive common shares issued and outstanding (as revised for 2017 and 2016) (in shares) | 64,850,114 | 64,271,052 | |||||||||
Diluted earnings per common share (in dollars per share) | 0.58 | 0.80 | 0.49 | 0.50 | 0.50 | 0.63 | 0.50 | 0.45 | $ 2.07 | $ 1.85 | |
Previously Reported | Stock options | |||||||||||
Diluted Earnings Per Common Share | |||||||||||
Dilutive effect of stock options and average unvested RSUs (in shares) | 0 | 5,845 | |||||||||
Previously Reported | Restricted Stock Units (RSUs) | |||||||||||
Diluted Earnings Per Common Share | |||||||||||
Dilutive effect of stock options and average unvested RSUs (in shares) | 0 | 0 | |||||||||
Adjustment | |||||||||||
Earnings Per Common Share | |||||||||||
Net income attributable to common shareholders | $ 0 | $ 0 | |||||||||
Average common shares issued and outstanding (in shares) | 0 | 0 | |||||||||
Average unvested RSUs (in shares) | (1,193,572) | (667,948) | |||||||||
Total qualifying shares (as revised for 2017 and 2016) (in shares) | (1,193,572) | (667,948) | |||||||||
Earnings per common share (in dollars per share) | 0.01 | 0.02 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0 | $ 0.04 | $ 0.02 | |
Diluted Earnings Per Common Share | |||||||||||
Dilutive net income attributable to common shareholders | $ 0 | $ 0 | |||||||||
Average common shares issued and outstanding (in shares) | (1,193,572) | (667,948) | |||||||||
Total dilutive common shares issued and outstanding (as revised for 2017 and 2016) (in shares) | (935,014) | (598,772) | |||||||||
Diluted earnings per common share (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0.01 | $ 0.01 | $ 0 | $ 0 | $ 0.03 | $ 0.02 | |
Adjustment | Stock options | |||||||||||
Diluted Earnings Per Common Share | |||||||||||
Dilutive effect of stock options and average unvested RSUs (in shares) | 0 | 0 | |||||||||
Adjustment | Restricted Stock Units (RSUs) | |||||||||||
Diluted Earnings Per Common Share | |||||||||||
Dilutive effect of stock options and average unvested RSUs (in shares) | 258,558 | 69,176 |
ORGANIZATIONS AND SUMMARY OF 50
ORGANIZATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - REVISIONS OF CLASSIFICATION OF PROCEEDS FROM SALE OF LOANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Loans held for investment sold, cash not received | $ 17,742 | $ 0 | $ 32,124 | ||
Proceeds from sale of loans held for sale | 1,576,353 | 1,433,068 | 1,427,986 | ||
Decrease (increase) in other assets | (40,988) | 807 | (9,539) | ||
Net cash provided by operating activities | 167,915 | 198,498 | 166,903 | ||
Proceeds from sale of loans held for investment | 20,719 | 31,918 | 49,882 | ||
Net cash used in investing activities | $ (1,026,005) | (788,731) | (1,537,536) | ||
Previously Reported | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Proceeds from sale of loans held for sale | 1,420,031 | 1,523,113 | |||
Decrease (increase) in other assets | 45,762 | (54,784) | |||
Net cash provided by operating activities | 223,884 | 210,644 | [1] | ||
Proceeds from sale of loans held for investment | 0 | 0 | |||
Net cash used in investing activities | (820,649) | (1,587,418) | |||
Adjustment | Accounting Standards Update 2016-09 | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Net cash provided by operating activities | 6,532 | 6,141 | |||
Adjustment | Immaterial Error Correction | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Proceeds from sale of loans held for sale | 13,037 | (95,127) | |||
Decrease (increase) in other assets | (44,955) | 45,245 | |||
Net cash provided by operating activities | (25,386) | [1] | (43,741) | ||
Proceeds from sale of loans held for investment | 31,918 | 49,882 | |||
Net cash used in investing activities | $ 31,918 | $ 49,882 | |||
[1] | Adjustment includes a non-error amount of $6,532 and $6,141 |
ACQUISITIONS - NARRATIVE (Detai
ACQUISITIONS - NARRATIVE (Details) | Apr. 04, 2018USD ($)state | Jun. 30, 2018USD ($)acquisitionstate | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) |
Business Acquisition [Line Items] | ||||
Number of states in which the entity operates | state | 50 | |||
Cash paid for acquisition | $ 70,002,000 | $ 0 | $ 0 | |
EPIC Systems, Inc. | ||||
Business Acquisition [Line Items] | ||||
Number of acquisitions | acquisition | 1 | |||
Number of states in which the entity operates | state | 50 | |||
Deposits acquired | $ 0 | |||
Cash paid for acquisition | 70,002,000 | |||
Intangible assets | 32,720,000 | |||
Other assets | 1,563,000 | |||
Goodwill | $ 35,719,000 | $ 35,719,000 | $ 0 |
ACQUISITIONS - FAIR VALUE OF AS
ACQUISITIONS - FAIR VALUE OF ASSETS ACQUIRED (Details) - USD ($) $ in Thousands | Apr. 04, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Business Acquisition [Line Items] | ||||
Cash | $ 70,002 | $ 0 | $ 0 | |
EPIC Systems, Inc. | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 70,002 | |||
Total consideration paid | 70,002 | |||
Intangible assets | 32,720 | |||
Other assets | 1,563 | |||
Total assets | 34,283 | |||
Fair value of net assets acquired | 34,283 | |||
Goodwill incident to acquisition | $ 35,719 | $ 35,719 | $ 0 |
FAIR VALUE - NARRATIVE (Details
FAIR VALUE - NARRATIVE (Details) | 12 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | May 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Held-to-maturity securities, carrying amount | $ 0 | $ 0 | |
Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans and leases, fair value | 31,226,000 | 28,393,000 | |
Other real estate owned and foreclosed assets, fair value | 9,591,000 | 1,413,000 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans and leases, fair value | 31,226,000 | 28,393,000 | |
Other real estate owned and foreclosed assets, fair value | $ 9,591,000 | 1,413,000 | |
Non-Agency RMBS | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unemployment rate | 3.80% | ||
Description of variable rate basis | LIBOR | ||
Impaired loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans, write-off | $ 3,294,000 | 3,691,000 | |
Impaired loans, additional provision for loan losses | 278,000 | 1,058,000 | |
Impaired loans | Carrying (Reported) Amount, Fair Value Disclosure | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans and leases, fair value | 31,226,000 | 28,393,000 | |
Other real estate owned | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other real estate owned, valuation allowance | 301,000 | 332,000 | |
Other real estate owned | Carrying (Reported) Amount, Fair Value Disclosure | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other real estate owned and foreclosed assets, fair value | $ 9,591,000 | $ 1,413,000 | |
Discounted cash flows | Projected Constant Default Rate | Minimum | Non-Agency RMBS | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities, measurement input | 0.015 | ||
Discounted cash flows | Projected Constant Default Rate | Maximum | Non-Agency RMBS | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities, measurement input | 0.106 | ||
Discounted cash flows | Projected Loss Severity | Minimum | Non-Agency RMBS | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities, measurement input | 0.400 | ||
Discounted cash flows | Projected Loss Severity | Maximum | Non-Agency RMBS | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities, measurement input | 0.680 | ||
Discounted cash flows | Discount Rate | Minimum | Non-Agency RMBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities, measurement input | 2.65 | ||
Discounted cash flows | Discount Rate | Maximum | Non-Agency RMBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities, measurement input | 7.13 |
FAIR VALUE - ASSETS AND LIABILI
FAIR VALUE - ASSETS AND LIABILITIES MEASURED ON RECURRING BASIS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading | $ 0 | $ 8,327 | |
Securities available-for-sale | 180,305 | 264,470 | |
Loans Held for Sale | 35,077 | 18,738 | $ 20,871 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading | 0 | ||
Securities available-for-sale | 0 | 0 | |
Loans Held for Sale | 0 | 0 | |
Mortgage servicing rights | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading | 0 | ||
Securities available-for-sale | 162,862 | 192,967 | |
Loans Held for Sale | 35,077 | 18,738 | |
Mortgage servicing rights | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading | 8,327 | ||
Securities available-for-sale | 17,443 | 71,503 | |
Loans Held for Sale | 0 | 0 | |
Mortgage servicing rights | 10,752 | 7,200 | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available-for-sale | 180,305 | 264,470 | |
Loans Held for Sale | 35,077 | 18,738 | |
Mortgage servicing rights | 10,752 | 7,200 | |
Other assets—Derivative instruments | 1,321 | 1,194 | |
Other liabilities—Derivative instruments | 368 | 168 | |
Fair Value, Measurements, Recurring | Collateralized Debt Obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading | 0 | 8,327 | |
Fair Value, Measurements, Recurring | Agency RMBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available-for-sale | 12,926 | 27,206 | |
Fair Value, Measurements, Recurring | Non-Agency RMBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available-for-sale | 17,443 | 71,503 | |
Fair Value, Measurements, Recurring | Municipal | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available-for-sale | 20,212 | 27,163 | |
Fair Value, Measurements, Recurring | Asset-backed securities and structured notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available-for-sale | 129,724 | 138,598 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available-for-sale | 0 | 0 | |
Loans Held for Sale | 0 | 0 | |
Mortgage servicing rights | 0 | 0 | |
Other assets—Derivative instruments | 0 | 0 | |
Other liabilities—Derivative instruments | 0 | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized Debt Obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading | 0 | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Agency RMBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-Agency RMBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities and structured notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available-for-sale | 162,862 | 192,967 | |
Loans Held for Sale | 35,077 | 18,738 | |
Mortgage servicing rights | 0 | 0 | |
Other assets—Derivative instruments | 0 | 0 | |
Other liabilities—Derivative instruments | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Collateralized Debt Obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Agency RMBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available-for-sale | 12,926 | 27,206 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Non-Agency RMBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Municipal | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available-for-sale | 20,212 | 27,163 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Asset-backed securities and structured notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available-for-sale | 129,724 | 138,598 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available-for-sale | 17,443 | 71,503 | |
Loans Held for Sale | 0 | 0 | |
Mortgage servicing rights | 10,752 | 7,200 | |
Other assets—Derivative instruments | 1,321 | 1,194 | |
Other liabilities—Derivative instruments | 368 | 168 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Collateralized Debt Obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading | 0 | 8,327 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Agency RMBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Non-Agency RMBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available-for-sale | 17,443 | 71,503 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Municipal | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Asset-backed securities and structured notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available-for-sale | $ 0 | $ 0 |
FAIR VALUE - LEVEL 3 ASSETS MEA
FAIR VALUE - LEVEL 3 ASSETS MEASURED ON RECURRING BASIS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements [Abstract] | |||||
Other-than-temporary impairment | $ (156) | $ (1,964) | $ (565) | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Opening Balance | 88,056 | 22,209 | |||
Transfers into Level 3 | 0 | 124,547 | |||
Transfers out of Level 3 | 0 | 0 | |||
Total gains or losses for the period - Included in other comprehensive income | (1,629) | 13,933 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements [Abstract] | |||||
Purchases | 3,635 | 2,560 | |||
Issues | 0 | 0 | |||
Sales | (52,879) | (59,896) | |||
Settlements | (7,705) | (12,972) | |||
Other-than-temporary impairment | (156) | (1,964) | |||
Closing balance | 29,148 | 88,056 | 22,209 | ||
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | (456) | (361) | |||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Included in earnings—Sale of securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Total gains or losses for the period - Included in earnings | (18) | (1,509) | |||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Included in earnings—Fair value gain(loss) on trading securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Total gains or losses for the period - Included in earnings | 0 | 743 | |||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Included in earnings—Mortgage banking income | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Total gains or losses for the period - Included in earnings | (156) | 405 | |||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Securities - Trading: Collateralized Debt Obligations | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Opening Balance | 8,327 | 7,584 | |||
Transfers into Level 3 | 0 | 0 | |||
Transfers out of Level 3 | 0 | 0 | |||
Total gains or losses for the period - Included in other comprehensive income | 0 | 0 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements [Abstract] | |||||
Purchases | 0 | 0 | |||
Issues | 0 | 0 | |||
Sales | (8,609) | 0 | |||
Settlements | 0 | 0 | |||
Other-than-temporary impairment | 0 | 0 | |||
Closing balance | 0 | 8,327 | 7,584 | ||
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | 0 | 743 | |||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Securities - Trading: Collateralized Debt Obligations | Included in earnings—Sale of securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Total gains or losses for the period - Included in earnings | 282 | ||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Securities - Trading: Collateralized Debt Obligations | Included in earnings—Fair value gain(loss) on trading securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Total gains or losses for the period - Included in earnings | 0 | 743 | |||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Non-agency | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Opening Balance | 71,503 | [1] | 9,364 | ||
Transfers into Level 3 | 0 | [1] | 124,547 | ||
Transfers out of Level 3 | 0 | [1] | 0 | ||
Total gains or losses for the period - Included in other comprehensive income | (1,629) | [1] | 13,933 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements [Abstract] | |||||
Purchases | 0 | [1] | 0 | ||
Issues | 0 | [1] | 0 | ||
Sales | (44,270) | [1] | (59,896) | ||
Settlements | (7,705) | [1] | (12,972) | ||
Other-than-temporary impairment | (156) | [1] | (1,964) | ||
Closing balance | 17,443 | [1] | 71,503 | [1] | 9,364 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | (300) | [1] | (1,509) | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Non-agency | Included in earnings—Sale of securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Total gains or losses for the period - Included in earnings | (300) | [1] | (1,509) | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Mortgage Servicing Rights | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Opening Balance | 7,200 | 3,943 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements [Abstract] | |||||
Purchases | 3,635 | 2,560 | |||
Issues | 0 | 0 | |||
Sales | 0 | 0 | |||
Settlements | 0 | 0 | |||
Other-than-temporary impairment | 0 | 0 | |||
Closing balance | 10,752 | 7,200 | 3,943 | ||
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | (83) | 697 | |||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Mortgage Servicing Rights | Included in earnings—Mortgage banking income | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Total gains or losses for the period - Included in earnings | (83) | 697 | |||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Derivative Instruments, net | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Opening Balance | 1,026 | 1,318 | |||
Transfers into Level 3 | 0 | 0 | |||
Transfers out of Level 3 | 0 | 0 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements [Abstract] | |||||
Purchases | 0 | 0 | |||
Issues | 0 | 0 | |||
Sales | 0 | 0 | |||
Settlements | 0 | 0 | |||
Other-than-temporary impairment | 0 | 0 | |||
Closing balance | 953 | 1,026 | $ 1,318 | ||
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | (73) | (292) | |||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Derivative Instruments, net | Included in earnings—Mortgage banking income | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Total gains or losses for the period - Included in earnings | $ (73) | $ (292) | |||
[1] | See Note 3 – “Securities” for further information on transfers. |
FAIR VALUE - QUANTITATIVE INFOR
FAIR VALUE - QUANTITATIVE INFORMATION FOR LEVEL 3 FAIR VALUE MEASURMENTS (RECURRING) (Details) $ in Thousands | Jun. 30, 2018USD ($)Y | Jun. 30, 2017USD ($)Y |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale | $ 180,305 | $ 264,470 |
Non-Agency RMBS | Discounted cash flows | Discount Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 2.65 | |
Non-Agency RMBS | Discounted cash flows | Discount Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 7.13 | |
Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale | $ 17,443 | 71,503 |
Mortgage servicing rights | $ 10,752 | 7,200 |
Level 3 | Non-Agency RMBS | Discounted cash flows | Projected Constant Default Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.015 | |
Level 3 | Non-Agency RMBS | Discounted cash flows | Projected Constant Default Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.106 | |
Level 3 | Non-Agency RMBS | Discounted cash flows | Projected Loss Severity | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.400 | |
Level 3 | Non-Agency RMBS | Discounted cash flows | Projected Loss Severity | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.680 | |
Fair Value, Measurements, Recurring | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale | $ 180,305 | 264,470 |
Mortgage servicing rights | 10,752 | 7,200 |
Fair Value, Measurements, Recurring | Non-Agency RMBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale | 17,443 | 71,503 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale | 17,443 | 71,503 |
Mortgage servicing rights | 10,752 | 7,200 |
Fair Value, Measurements, Recurring | Level 3 | Discounted cash flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities trading | $ 8,327 | |
Fair Value, Measurements, Recurring | Level 3 | Discounted cash flows | Projected Constant Default Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities trading, measurement input | 0.122 | |
Fair Value, Measurements, Recurring | Level 3 | Discounted cash flows | Projected Constant Default Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities trading, measurement input | 0.218 | |
Fair Value, Measurements, Recurring | Level 3 | Discounted cash flows | Projected Constant Default Rate | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities trading, measurement input | 0.168 | |
Fair Value, Measurements, Recurring | Level 3 | Discounted cash flows | Discount Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities trading, measurement input | 0.045 | |
Fair Value, Measurements, Recurring | Level 3 | Discounted cash flows | Discount Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities trading, measurement input | 0.045 | |
Fair Value, Measurements, Recurring | Level 3 | Discounted cash flows | Discount Rate | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities trading, measurement input | 0.045 | |
Fair Value, Measurements, Recurring | Level 3 | Non-Agency RMBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale | 17,443 | $ 71,503 |
Fair Value, Measurements, Recurring | Level 3 | Non-Agency RMBS | Discounted cash flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Securities available-for-sale | $ 17,443 | $ 71,503 |
Fair Value, Measurements, Recurring | Level 3 | Non-Agency RMBS | Discounted cash flows | Projected Constant Prepayment Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.025 | 0.025 |
Fair Value, Measurements, Recurring | Level 3 | Non-Agency RMBS | Discounted cash flows | Projected Constant Prepayment Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.258 | 0.234 |
Fair Value, Measurements, Recurring | Level 3 | Non-Agency RMBS | Discounted cash flows | Projected Constant Prepayment Rate | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.141 | 0.125 |
Fair Value, Measurements, Recurring | Level 3 | Non-Agency RMBS | Discounted cash flows | Projected Constant Default Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.015 | 0.015 |
Fair Value, Measurements, Recurring | Level 3 | Non-Agency RMBS | Discounted cash flows | Projected Constant Default Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.106 | 0.189 |
Fair Value, Measurements, Recurring | Level 3 | Non-Agency RMBS | Discounted cash flows | Projected Constant Default Rate | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.051 | 0.053 |
Fair Value, Measurements, Recurring | Level 3 | Non-Agency RMBS | Discounted cash flows | Projected Loss Severity | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.400 | 0.400 |
Fair Value, Measurements, Recurring | Level 3 | Non-Agency RMBS | Discounted cash flows | Projected Loss Severity | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.680 | 0.688 |
Fair Value, Measurements, Recurring | Level 3 | Non-Agency RMBS | Discounted cash flows | Projected Loss Severity | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.589 | 0.579 |
Fair Value, Measurements, Recurring | Level 3 | Non-Agency RMBS | Discounted cash flows | Discount Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.027 | 0.026 |
Fair Value, Measurements, Recurring | Level 3 | Non-Agency RMBS | Discounted cash flows | Discount Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.071 | 0.058 |
Fair Value, Measurements, Recurring | Level 3 | Non-Agency RMBS | Discounted cash flows | Discount Rate | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.042 | 0.033 |
Fair Value, Measurements, Recurring | Level 3 | Mortgage Servicing Rights | Discounted cash flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage servicing rights | $ 10,752 | $ 7,200 |
Fair Value, Measurements, Recurring | Level 3 | Mortgage Servicing Rights | Discounted cash flows | Projected Constant Prepayment Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Servicing asset, measurement input | 0.060 | 0.063 |
Fair Value, Measurements, Recurring | Level 3 | Mortgage Servicing Rights | Discounted cash flows | Projected Constant Prepayment Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Servicing asset, measurement input | 0.266 | 0.269 |
Fair Value, Measurements, Recurring | Level 3 | Mortgage Servicing Rights | Discounted cash flows | Projected Constant Prepayment Rate | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Servicing asset, measurement input | 0.091 | 0.095 |
Fair Value, Measurements, Recurring | Level 3 | Mortgage Servicing Rights | Discounted cash flows | Discount Rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Servicing asset, measurement input | 0.095 | 0.095 |
Fair Value, Measurements, Recurring | Level 3 | Mortgage Servicing Rights | Discounted cash flows | Discount Rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Servicing asset, measurement input | 0.130 | 0.130 |
Fair Value, Measurements, Recurring | Level 3 | Mortgage Servicing Rights | Discounted cash flows | Discount Rate | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Servicing asset, measurement input | 0.099 | 0.097 |
Fair Value, Measurements, Recurring | Level 3 | Mortgage Servicing Rights | Discounted cash flows | Life (in years) | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Servicing asset, measurement input | Y | 2.4 | 2.5 |
Fair Value, Measurements, Recurring | Level 3 | Mortgage Servicing Rights | Discounted cash flows | Life (in years) | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Servicing asset, measurement input | Y | 9.5 | 7.8 |
Fair Value, Measurements, Recurring | Level 3 | Mortgage Servicing Rights | Discounted cash flows | Life (in years) | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Servicing asset, measurement input | Y | 6.9 | 6.6 |
Fair Value, Measurements, Recurring | Level 3 | Derivative Instruments, net | Sales comparison approach | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative Assets | $ 953 | $ 1,026 |
Fair Value, Measurements, Recurring | Level 3 | Derivative Instruments, net | Sales comparison approach | Projected Sales Profit of Underlying Loans | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative asset, net, measurement input | 0.001 | 0.003 |
Fair Value, Measurements, Recurring | Level 3 | Derivative Instruments, net | Sales comparison approach | Projected Sales Profit of Underlying Loans | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative asset, net, measurement input | 0.004 | 0.006 |
Fair Value, Measurements, Recurring | Level 3 | Derivative Instruments, net | Sales comparison approach | Projected Sales Profit of Underlying Loans | Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative asset, net, measurement input | 0.003 | 0.005 |
FAIR VALUE - LEVEL 3 UNREALIZED
FAIR VALUE - LEVEL 3 UNREALIZED GAIN (LOSS) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair value adjustment | $ 0 | $ 743 | $ (248) |
Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Interest income on investments | 0 | 311 | 245 |
Fair value adjustment | 0 | 743 | (248) |
Total | $ 0 | $ 1,054 | $ (3) |
FAIR VALUE - ASSETS MEASURED NO
FAIR VALUE - ASSETS MEASURED NONRECURRING BASIS (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | $ 31,226 | $ 28,393 |
Other real estate owned and foreclosed assets, fair value | 9,591 | 1,413 |
Mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 28,446 | 23,377 |
Home equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 16 | 16 |
Multifamily real estate secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 232 | 4,255 |
Auto and RV secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 60 | 157 |
Commercial & Industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 2,361 | 314 |
Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 111 | 274 |
Single family real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 9,385 | 1,353 |
Autos and RVs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 206 | 60 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 0 | 0 |
Other real estate owned and foreclosed assets, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Home equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Multifamily real estate secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Auto and RV secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial & Industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Single family real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Autos and RVs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 0 | 0 |
Other real estate owned and foreclosed assets, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Home equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Multifamily real estate secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Auto and RV secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Commercial & Industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Single family real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Autos and RVs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 31,226 | 28,393 |
Other real estate owned and foreclosed assets, fair value | 9,591 | 1,413 |
Significant Unobservable Inputs (Level 3) | Mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 28,446 | 23,377 |
Significant Unobservable Inputs (Level 3) | Home equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 16 | 16 |
Significant Unobservable Inputs (Level 3) | Multifamily real estate secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 232 | 4,255 |
Significant Unobservable Inputs (Level 3) | Auto and RV secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 60 | 157 |
Significant Unobservable Inputs (Level 3) | Commercial & Industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 2,361 | 314 |
Significant Unobservable Inputs (Level 3) | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases, fair value | 111 | 274 |
Significant Unobservable Inputs (Level 3) | Single family real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 9,385 | 1,353 |
Significant Unobservable Inputs (Level 3) | Autos and RVs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | $ 206 | $ 60 |
FAIR VALUE - LOANS HELD-FOR-SAL
FAIR VALUE - LOANS HELD-FOR-SALE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |||
Aggregate fair value | $ 35,077 | $ 18,738 | $ 20,871 |
Contractual balance | 34,415 | 18,311 | 20,226 |
Gain | 662 | 427 | 645 |
Interest income | 903 | 602 | 826 |
Change in fair value | 181 | (514) | (846) |
Total change in fair value | $ 1,084 | $ 88 | $ (20) |
FAIR VALUE - QUANTITATIVE INF60
FAIR VALUE - QUANTITATIVE INFORMATION FOR LEVEL 3 FAIR VALUE MEASURMENTS (NONRECURRING) (Details) - Fair Value, Measurements, Nonrecurring $ in Thousands | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans and leases, fair value | $ 31,226 | $ 28,393 | |
Other real estate owned and foreclosed assets, fair value | 9,591 | 1,413 | |
Mortgage | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans and leases, fair value | 28,446 | 23,377 | |
Home equity | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans and leases, fair value | 16 | 16 | |
Multifamily real estate secured | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans and leases, fair value | 232 | 4,255 | |
Auto and RV secured | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans and leases, fair value | 60 | 157 | |
Commercial & Industrial | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans and leases, fair value | 2,361 | 314 | |
Other | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans and leases, fair value | 111 | 274 | |
Single family real estate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other real estate owned and foreclosed assets, fair value | 9,385 | 1,353 | |
Autos and RVs | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other real estate owned and foreclosed assets, fair value | 206 | 60 | |
Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans and leases, fair value | 31,226 | 28,393 | |
Other real estate owned and foreclosed assets, fair value | 9,591 | 1,413 | |
Level 3 | Mortgage | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans and leases, fair value | $ 28,446 | $ 23,377 | |
Level 3 | Mortgage | Sales comparison approach | Adjustment for differences between the comparable sales | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | (0.488) | (0.385) |
Level 3 | Mortgage | Sales comparison approach | Adjustment for differences between the comparable sales | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | 0.667 | 0.798 |
Level 3 | Mortgage | Sales comparison approach | Adjustment for differences between the comparable sales | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | 0.023 | 0.064 |
Level 3 | Home equity | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans and leases, fair value | $ 16 | $ 16 | |
Level 3 | Home equity | Sales comparison approach | Adjustment for differences between the comparable sales | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | 0 | (0.061) |
Level 3 | Home equity | Sales comparison approach | Adjustment for differences between the comparable sales | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | 0.149 | 0.261 |
Level 3 | Home equity | Sales comparison approach | Adjustment for differences between the comparable sales | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | 0.074 | 0.078 |
Level 3 | Multifamily real estate secured | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans and leases, fair value | $ 232 | $ 4,255 | |
Level 3 | Multifamily real estate secured | Sales comparison approach and income approach | Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, capitalization rate | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | (0.155) | (0.242) |
Level 3 | Multifamily real estate secured | Sales comparison approach and income approach | Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, capitalization rate | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | 0.464 | 0.487 |
Level 3 | Multifamily real estate secured | Sales comparison approach and income approach | Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, capitalization rate | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | 0.154 | 0.024 |
Level 3 | Auto and RV secured | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans and leases, fair value | $ 60 | $ 157 | |
Level 3 | Auto and RV secured | Sales comparison approach | Adjustment for differences between the comparable sales | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | (0.020) | (0.172) |
Level 3 | Auto and RV secured | Sales comparison approach | Adjustment for differences between the comparable sales | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | 0.715 | 0.424 |
Level 3 | Auto and RV secured | Sales comparison approach | Adjustment for differences between the comparable sales | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | 0.240 | (0.055) |
Level 3 | Commercial & Industrial | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans and leases, fair value | $ 2,361 | $ 314 | |
Level 3 | Commercial & Industrial | Discounted cash flows | Discount Rate | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | (0.338) | 0.348 |
Level 3 | Commercial & Industrial | Discounted cash flows | Discount Rate | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | 0 | 0.348 |
Level 3 | Commercial & Industrial | Discounted cash flows | Discount Rate | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | (0.169) | 0.348 |
Level 3 | Other | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans and leases, fair value | $ 111 | $ 274 | |
Level 3 | Other | Discounted cash flows | Discount Rate | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | (0.010) | 0.045 |
Level 3 | Other | Discounted cash flows | Discount Rate | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | 0.025 | 0.052 |
Level 3 | Other | Discounted cash flows | Discount Rate | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | 0.008 | 0.049 |
Level 3 | Other | Discounted cash flows | Projected Constant Prepayment Rate | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | 0 | 0 |
Level 3 | Other | Discounted cash flows | Projected Constant Prepayment Rate | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | 0 | 0 |
Level 3 | Other | Discounted cash flows | Projected Constant Prepayment Rate | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | 0 | 0 |
Level 3 | Other | Discounted cash flows | Projected Constant Default Rate | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | 0 | 0 |
Level 3 | Other | Discounted cash flows | Projected Constant Default Rate | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | 0.100 | 0.100 |
Level 3 | Other | Discounted cash flows | Projected Constant Default Rate | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | 0.050 | 0.050 |
Level 3 | Other | Discounted cash flows | Projected Loss Severity | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | 1 | 1 |
Level 3 | Other | Discounted cash flows | Projected Loss Severity | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | 1 | 1 |
Level 3 | Other | Discounted cash flows | Projected Loss Severity | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | [1] | 1 | 1 |
Level 3 | Single family real estate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other real estate owned and foreclosed assets, fair value | $ 9,385 | $ 1,353 | |
Level 3 | Single family real estate | Sales comparison approach | Adjustment for differences between the comparable sales | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other real estate owned, measurement input | [1] | (0.141) | (0.105) |
Level 3 | Single family real estate | Sales comparison approach | Adjustment for differences between the comparable sales | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other real estate owned, measurement input | [1] | 0.273 | 0.125 |
Level 3 | Single family real estate | Sales comparison approach | Adjustment for differences between the comparable sales | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other real estate owned, measurement input | [1] | 0.005 | 0.001 |
Level 3 | Autos and RVs | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other real estate owned and foreclosed assets, fair value | $ 206 | $ 60 | |
Level 3 | Autos and RVs | Sales comparison approach | Adjustment for differences between the comparable sales | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other repossessed assets, measurement input | [1] | (0.339) | 0.170 |
Level 3 | Autos and RVs | Sales comparison approach | Adjustment for differences between the comparable sales | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other repossessed assets, measurement input | [1] | 0.605 | 0.205 |
Level 3 | Autos and RVs | Sales comparison approach | Adjustment for differences between the comparable sales | Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other repossessed assets, measurement input | [1] | 0.079 | 0.062 |
[1] | For impaired loans and other real estate owned the ranges shown may vary positively or negatively based on the comparable sales reported in the current appraisal. In certain instances, the range can be significant due to small sample sizes and in some cases the property being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted. |
FAIR VALUE - FAIR VALUE BY BALA
FAIR VALUE - FAIR VALUE BY BALANCE SHEET GROUPING (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Financial assets: | |||
Securities trading | $ 0 | $ 8,327 | |
Securities available-for-sale | 180,305 | 264,470 | |
Loans held for sale, at fair value | 35,077 | 18,738 | $ 20,871 |
Loans held for sale, at lower of cost or fair value | 2,686 | 6,669 | |
Carrying (Reported) Amount, Fair Value Disclosure | |||
Financial assets: | |||
Cash and cash equivalents | 622,850 | 643,541 | |
Securities trading | 8,327 | ||
Securities available-for-sale | 180,305 | 264,470 | |
Loans held for sale, at fair value | 35,077 | 18,738 | |
Loans held for sale, at lower of cost or fair value | 2,686 | 6,669 | |
Loans and leases held for investment—net | 8,432,289 | 7,374,493 | |
Accrued interest receivable | 26,729 | 20,781 | |
Mortgage servicing rights | 10,752 | 7,200 | |
Financial liabilities: | |||
Total deposits | 7,985,350 | 6,899,507 | |
Securities sold under agreements to repurchase | 20,000 | ||
Advances from the Federal Home Loan Bank | 457,000 | 640,000 | |
Subordinated notes and debentures | 54,552 | 54,463 | |
Accrued interest payable | 1,753 | 1,284 | |
Fair Value | |||
Financial assets: | |||
Cash and cash equivalents | 622,850 | 643,541 | |
Securities trading | 8,327 | ||
Securities available-for-sale | 180,305 | 264,470 | |
Loans held for sale, at fair value | 35,077 | 18,738 | |
Loans held for sale, at lower of cost or fair value | 2,734 | 7,328 | |
Loans and leases held for investment—net | 8,466,494 | 7,521,281 | |
Accrued interest receivable | 26,729 | 20,781 | |
Mortgage servicing rights | 10,752 | 7,200 | |
Financial liabilities: | |||
Total deposits | 7,584,928 | 6,544,056 | |
Securities sold under agreements to repurchase | 20,152 | ||
Advances from the Federal Home Loan Bank | 453,326 | 645,339 | |
Subordinated notes and debentures | 51,693 | 52,930 | |
Accrued interest payable | 1,753 | 1,284 | |
Level 1 | |||
Financial assets: | |||
Cash and cash equivalents | 622,850 | 643,541 | |
Securities trading | 0 | ||
Securities available-for-sale | 0 | 0 | |
Loans held for sale, at fair value | 0 | 0 | |
Loans held for sale, at lower of cost or fair value | 0 | 0 | |
Loans and leases held for investment—net | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Mortgage servicing rights | 0 | 0 | |
Financial liabilities: | |||
Total deposits | 0 | 0 | |
Securities sold under agreements to repurchase | 0 | ||
Advances from the Federal Home Loan Bank | 0 | 0 | |
Subordinated notes and debentures | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Level 2 | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | |
Securities trading | 0 | ||
Securities available-for-sale | 162,862 | 192,967 | |
Loans held for sale, at fair value | 35,077 | 18,738 | |
Loans held for sale, at lower of cost or fair value | 0 | 0 | |
Loans and leases held for investment—net | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Mortgage servicing rights | 0 | 0 | |
Financial liabilities: | |||
Total deposits | 7,584,928 | 6,544,056 | |
Securities sold under agreements to repurchase | 20,152 | ||
Advances from the Federal Home Loan Bank | 453,326 | 645,339 | |
Subordinated notes and debentures | 51,693 | 52,930 | |
Accrued interest payable | 1,753 | 1,284 | |
Level 3 | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | |
Securities trading | 8,327 | ||
Securities available-for-sale | 17,443 | 71,503 | |
Loans held for sale, at fair value | 0 | 0 | |
Loans held for sale, at lower of cost or fair value | 2,734 | 7,328 | |
Loans and leases held for investment—net | 8,466,494 | 7,521,281 | |
Accrued interest receivable | 26,729 | 20,781 | |
Mortgage servicing rights | 10,752 | 7,200 | |
Financial liabilities: | |||
Total deposits | 0 | 0 | |
Securities sold under agreements to repurchase | 0 | ||
Advances from the Federal Home Loan Bank | 0 | 0 | |
Subordinated notes and debentures | 0 | 0 | |
Accrued interest payable | $ 0 | $ 0 |
SECURITIES - CARRYING AMOUNT AN
SECURITIES - CARRYING AMOUNT AND FAIR VALUE OF SECURITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Securities trading | $ 0 | $ 8,327 | ||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale, Amortized Cost | 180,997 | 257,520 | ||
Available-for-sale, Unrealized Gains | 2,537 | 9,228 | ||
Available-for-sale, Unrealized Losses | (3,229) | (2,278) | ||
Available for sale | 180,305 | 264,470 | ||
Mortgage-backed securities (RMBS) | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Securities trading | 0 | |||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale, Amortized Cost | 32,486 | 92,780 | ||
Available-for-sale, Unrealized Gains | 268 | 7,692 | ||
Available-for-sale, Unrealized Losses | (2,385) | (1,763) | ||
Available for sale | 30,369 | 98,709 | ||
U.S Agencies | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Securities trading | [1] | 0 | ||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale, Amortized Cost | [1] | 13,102 | 27,379 | |
Available-for-sale, Unrealized Gains | [1] | 152 | 286 | |
Available-for-sale, Unrealized Losses | [1] | (328) | (459) | |
Available for sale | [1] | 12,926 | [2] | 27,206 |
Non-agency | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Securities trading | [3] | 0 | ||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale, Amortized Cost | [3] | 19,384 | 65,401 | |
Available-for-sale, Unrealized Gains | [3] | 116 | 7,406 | |
Available-for-sale, Unrealized Losses | [3] | (2,057) | (1,304) | |
Available for sale | [3] | 17,443 | 71,503 | |
Non-RMBS | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Securities trading | 8,327 | |||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale, Amortized Cost | 148,511 | 164,740 | ||
Available-for-sale, Unrealized Gains | 2,269 | 1,536 | ||
Available-for-sale, Unrealized Losses | (844) | (515) | ||
Available for sale | 149,936 | 165,761 | ||
Municipal | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Securities trading | 0 | |||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale, Amortized Cost | 20,953 | 27,568 | ||
Available-for-sale, Unrealized Gains | 2 | 19 | ||
Available-for-sale, Unrealized Losses | (743) | (424) | ||
Available for sale | 20,212 | 27,163 | ||
Asset-backed securities and structured notes | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Securities trading | 8,327 | |||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale, Amortized Cost | 127,558 | 137,172 | ||
Available-for-sale, Unrealized Gains | 2,267 | 1,517 | ||
Available-for-sale, Unrealized Losses | (101) | (91) | ||
Available for sale | $ 129,724 | $ 138,598 | ||
[1] | U.S. government-backed or government sponsored enterprises including Fannie Mae, Freddie Mac and Ginnie Mae. | |||
[2] | Residential mortgage-backed security (RMBS) distributions include impact of expected prepayments and other timing factors. | |||
[3] | Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by prime, Alt-A or pay-option ARM mortgages. |
SECURITIES - NARRATIVE (Details
SECURITIES - NARRATIVE (Details) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2018USD ($)security | Jun. 30, 2017USD ($)security | Jun. 30, 2016USD ($) | ||
Marketable Securities [Line Items] | ||||
Securities available-for-sale | $ 180,305 | $ 264,470 | ||
Gain on sale of available-for-sale securities | 1,269 | 7,386 | $ 1,427 | |
Loss on sale of senior support securities | 861 | |||
Debt securities available-for-sale and held-to-maturity pledged to secure borrowings | $ 2,540 | $ 6,183 | ||
Securities in a continuous loss position for a period of more than 12 months | security | 26 | 16 | ||
Securities in a continuous loss position for a period of less than 12 months | security | 11 | 26 | ||
Proceeds from sale of trading securities | $ 8,700 | |||
Gain on sale of trading securities | $ 282 | |||
Number of trading securities sold | security | 2 | |||
Securities trading | $ 0 | $ 8,327 | ||
Number of available-for-sale securities sold | security | 24 | |||
Carrying value of available-for-sale securities sold | $ 44,271 | |||
Loss on sale of available-for-sale securities | 300 | (3,920) | (1,427) | |
Non-Agency RMBS | ||||
Marketable Securities [Line Items] | ||||
Securities available-for-sale | [1] | $ 17,443 | 71,503 | |
Number of securities with cumulative credit losses | security | 0 | |||
Other than temporary impairment recognized in earnings | $ 156 | 1,964 | $ 565 | |
Number of securities with other than temporary impairment | security | 2 | |||
Securities trading | [1] | $ 0 | ||
RMBS, Super Senior Securities | ||||
Marketable Securities [Line Items] | ||||
Available-for-sale, number of securities | security | 15 | |||
RMBS, Mezzanine Z-Tranche Securities | ||||
Marketable Securities [Line Items] | ||||
Available-for-sale, number of securities | security | 2 | |||
Gain on sale of available-for-sale securities | $ 153 | |||
RMBS, Senior-Support Securities | ||||
Marketable Securities [Line Items] | ||||
Number of senior support securities sold | security | 1 | |||
[1] | Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by prime, Alt-A or pay-option ARM mortgages. |
SECURITIES - SCHEDULE OF UNREAL
SECURITIES - SCHEDULE OF UNREALIZED LOSS ON INVESTMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available-for-sale securities in loss position for less than 12 months, Fair Value | $ 11,277 | $ 60,829 |
Available-for-sale securities in loss position for less than 12 months, Gross Unrealized Losses | (49) | (901) |
Available-for-sale securities in loss position for more than 12 months, Fair Value | 41,181 | 29,202 |
Available-for-sale securities in loss position for more than 12 months, Gross Unrealized Losses | (3,180) | (1,377) |
Available-for-sale securities in loss position, Total, Fair Value | 52,458 | 90,031 |
Available-for-sale securities in loss position, Total, Gross Unrealized Losses | (3,229) | (2,278) |
Mortgage-backed securities (RMBS) | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available-for-sale securities in loss position for less than 12 months, Fair Value | 48 | 19,648 |
Available-for-sale securities in loss position for less than 12 months, Gross Unrealized Losses | (2) | (390) |
Available-for-sale securities in loss position for more than 12 months, Fair Value | 22,692 | 27,445 |
Available-for-sale securities in loss position for more than 12 months, Gross Unrealized Losses | (2,383) | (1,373) |
Available-for-sale securities in loss position, Total, Fair Value | 22,740 | 47,093 |
Available-for-sale securities in loss position, Total, Gross Unrealized Losses | (2,385) | (1,763) |
U.S Agencies | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available-for-sale securities in loss position for less than 12 months, Fair Value | 12 | 17,161 |
Available-for-sale securities in loss position for less than 12 months, Gross Unrealized Losses | (1) | (374) |
Available-for-sale securities in loss position for more than 12 months, Fair Value | 6,825 | 2,348 |
Available-for-sale securities in loss position for more than 12 months, Gross Unrealized Losses | (327) | (85) |
Available-for-sale securities in loss position, Total, Fair Value | 6,837 | 19,509 |
Available-for-sale securities in loss position, Total, Gross Unrealized Losses | (328) | (459) |
Non-Agency RMBS | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available-for-sale securities in loss position for less than 12 months, Fair Value | 36 | 2,487 |
Available-for-sale securities in loss position for less than 12 months, Gross Unrealized Losses | (1) | (16) |
Available-for-sale securities in loss position for more than 12 months, Fair Value | 15,867 | 25,097 |
Available-for-sale securities in loss position for more than 12 months, Gross Unrealized Losses | (2,056) | (1,288) |
Available-for-sale securities in loss position, Total, Fair Value | 15,903 | 27,584 |
Available-for-sale securities in loss position, Total, Gross Unrealized Losses | (2,057) | (1,304) |
Non-RMBS | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available-for-sale securities in loss position for less than 12 months, Fair Value | 11,229 | 41,181 |
Available-for-sale securities in loss position for less than 12 months, Gross Unrealized Losses | (47) | (511) |
Available-for-sale securities in loss position for more than 12 months, Fair Value | 18,489 | 1,757 |
Available-for-sale securities in loss position for more than 12 months, Gross Unrealized Losses | (797) | (4) |
Available-for-sale securities in loss position, Total, Fair Value | 29,718 | 42,938 |
Available-for-sale securities in loss position, Total, Gross Unrealized Losses | (844) | (515) |
Municipal | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available-for-sale securities in loss position for less than 12 months, Fair Value | 1,740 | 13,431 |
Available-for-sale securities in loss position for less than 12 months, Gross Unrealized Losses | (17) | (420) |
Available-for-sale securities in loss position for more than 12 months, Fair Value | 12,326 | 1,757 |
Available-for-sale securities in loss position for more than 12 months, Gross Unrealized Losses | (726) | (4) |
Available-for-sale securities in loss position, Total, Fair Value | 14,066 | 15,188 |
Available-for-sale securities in loss position, Total, Gross Unrealized Losses | (743) | (424) |
Asset-backed securities and structured notes | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available-for-sale securities in loss position for less than 12 months, Fair Value | 9,489 | 27,750 |
Available-for-sale securities in loss position for less than 12 months, Gross Unrealized Losses | (30) | (91) |
Available-for-sale securities in loss position for more than 12 months, Fair Value | 6,163 | 0 |
Available-for-sale securities in loss position for more than 12 months, Gross Unrealized Losses | (71) | 0 |
Available-for-sale securities in loss position, Total, Fair Value | 15,652 | 27,750 |
Available-for-sale securities in loss position, Total, Gross Unrealized Losses | $ (101) | $ (91) |
SECURITIES - OTHER THAN TEMPORA
SECURITIES - OTHER THAN TEMPORARY IMPAIRMENT, CREDIT LOSSES RECOGNIZED IN EARNINGS (Details) - Non-Agency RMBS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Beginning balance | $ (15,528) | $ (20,865) | $ (20,503) |
Additions for the amounts related to the credit loss for which an other-than-temporary impairment was not previously recognized | (7) | (342) | (112) |
Increases to the amount related to the credit loss for which other-than-temporary impairment was previously recognized | (149) | (1,622) | (453) |
Credit losses realized for securities sold | 15,684 | 7,301 | 203 |
Ending balance | $ 0 | $ (15,528) | $ (20,865) |
SECURITIES - REALIZED GAIN (LOS
SECURITIES - REALIZED GAIN (LOSS) ON INVESTMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds | $ 44,013 | $ 161,048 | $ 14,969 |
Gross realized gains | 1,269 | 7,386 | 1,427 |
Gross realized loss | (1,569) | (3,466) | 0 |
Net (loss) gain on securities | $ (300) | $ 3,920 | $ 1,427 |
SECURITIES - UNREALIZED GAIN (L
SECURITIES - UNREALIZED GAIN (LOSS) ON INVESTMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale debt securities—net unrealized gains | $ (692) | $ 6,949 |
Available-for-sale debt securities—non-credit related | 0 | (6,115) |
Subtotal | (692) | 834 |
Tax (provision) benefit | 79 | (347) |
Net unrealized gain (loss) on investment securities in accumulated other comprehensive loss | $ (613) | $ 487 |
SECURITIES - INVESTMENTS CLASSI
SECURITIES - INVESTMENTS CLASSIFIED BY CONTRACTUAL MATURITY DATE (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | ||
Available-for-Sale Amortized Cost | ||||
Total | $ 180,997 | |||
Available-for-Sale, Fair Value | ||||
Total | 180,305 | $ 264,470 | ||
Agency RMBS | ||||
Available-for-Sale Amortized Cost | ||||
Due within one year | [1] | 1,371 | ||
Due one to five years | [1] | 4,004 | ||
Due five to ten years | [1] | 3,008 | ||
Due after ten years | [1] | 4,719 | ||
Total | [1] | 13,102 | ||
Available-for-Sale, Fair Value | ||||
Due within one year | [1] | 1,344 | ||
Due one to five years | [1] | 3,933 | ||
Due five to ten years | [1] | 2,973 | ||
Due after ten years | [1] | 4,676 | ||
Total | [2] | 12,926 | [1] | 27,206 |
Non-Agency RMBS | ||||
Available-for-Sale Amortized Cost | ||||
Due within one year | 3,012 | |||
Due one to five years | 8,902 | |||
Due five to ten years | 5,583 | |||
Due after ten years | 1,887 | |||
Total | 19,384 | |||
Available-for-Sale, Fair Value | ||||
Due within one year | 2,760 | |||
Due one to five years | 8,116 | |||
Due five to ten years | 4,966 | |||
Due after ten years | 1,601 | |||
Total | [3] | 17,443 | 71,503 | |
Non-RMBS | ||||
Available-for-Sale Amortized Cost | ||||
Due within one year | 75,701 | |||
Due one to five years | 58,979 | |||
Due five to ten years | 0 | |||
Due after ten years | 13,831 | |||
Total | 148,511 | |||
Available-for-Sale, Fair Value | ||||
Due within one year | 76,925 | |||
Due one to five years | 59,920 | |||
Due five to ten years | 0 | |||
Due after ten years | 13,091 | |||
Total | $ 149,936 | $ 165,761 | ||
[1] | Residential mortgage-backed security (RMBS) distributions include impact of expected prepayments and other timing factors. | |||
[2] | U.S. government-backed or government sponsored enterprises including Fannie Mae, Freddie Mac and Ginnie Mae. | |||
[3] | Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by prime, Alt-A or pay-option ARM mortgages. |
LOANS, LEASES & ALLOWANCE FOR69
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - COMPOSITION OF LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal loan and lease balance | $ 8,517,686 | $ 7,449,261 | ||
Allowance for loan and lease losses | (49,151) | (40,832) | $ (35,826) | $ (28,327) |
Unaccreted discounts and loan and lease fees | (36,246) | (33,936) | ||
Total net loans and leases | 8,432,289 | 7,374,493 | ||
Mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal loan and lease balance | 4,198,941 | 3,901,754 | ||
Allowance for loan and lease losses | (20,368) | (19,972) | (18,666) | (13,664) |
Unaccreted discounts and loan and lease fees | 9,187 | 10,486 | ||
Home equity | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal loan and lease balance | 2,306 | 2,092 | ||
Allowance for loan and lease losses | (14) | (19) | (23) | (122) |
Unaccreted discounts and loan and lease fees | 48 | 34 | ||
Warehouse & Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal loan and lease balance | 412,085 | 452,390 | ||
Allowance for loan and lease losses | (2,080) | (2,298) | (2,685) | (1,879) |
Unaccreted discounts and loan and lease fees | (706) | (1,702) | ||
Multifamily real estate secured | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal loan and lease balance | 1,800,919 | 1,619,404 | ||
Allowance for loan and lease losses | (5,010) | (4,638) | (3,938) | (4,363) |
Unaccreted discounts and loan and lease fees | 5,063 | 4,586 | ||
Commercial real estate secured | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal loan and lease balance | 220,379 | 162,715 | ||
Allowance for loan and lease losses | (849) | (1,008) | (882) | (1,103) |
Unaccreted discounts and loan and lease fees | 836 | 744 | ||
Auto and RV secured | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal loan and lease balance | 213,522 | 154,246 | ||
Allowance for loan and lease losses | (3,178) | (2,379) | (1,615) | (953) |
Unaccreted discounts and loan and lease fees | 2,065 | 2,054 | ||
Factoring | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal loan and lease balance | 169,885 | 160,674 | ||
Allowance for loan and lease losses | (445) | (401) | (245) | (292) |
Unaccreted discounts and loan and lease fees | (48,039) | (49,350) | ||
Commercial & Industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal loan and lease balance | 1,481,051 | 992,232 | ||
Allowance for loan and lease losses | (16,238) | (9,881) | (7,630) | (5,882) |
Unaccreted discounts and loan and lease fees | (3,884) | (640) | ||
Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal loan and lease balance | 18,598 | 3,754 | ||
Allowance for loan and lease losses | (969) | (236) | $ (142) | $ (69) |
Unaccreted discounts and loan and lease fees | (816) | (148) | ||
Single family warehouse loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal loan and lease balance | 175,508 | 187,034 | ||
Residential Portfolio Segment | Mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal loan and lease balance | 4,198,941 | 3,901,754 | ||
Residential Portfolio Segment | Home equity | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal loan and lease balance | 2,306 | 2,092 | ||
Residential Portfolio Segment | Warehouse & Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal loan and lease balance | 412,085 | 452,390 | ||
Residential Portfolio Segment | Multifamily real estate secured | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal loan and lease balance | 1,800,919 | 1,619,404 | ||
Commercial Real Estate Portfolio Segment | Commercial real estate secured | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal loan and lease balance | 220,379 | 162,715 | ||
Consumer Portfolio Segment | Auto and RV secured | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal loan and lease balance | 213,522 | 154,246 | ||
Unallocated Financing Receivables | Factoring | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal loan and lease balance | 169,885 | 160,674 | ||
Unallocated Financing Receivables | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal loan and lease balance | 18,598 | 3,754 | ||
Commercial Portfolio Segment | Commercial & Industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal loan and lease balance | $ 1,481,051 | $ 992,232 |
LOANS, LEASES & ALLOWANCE FOR70
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - ACTIVITY FOR ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance, beginning of period | $ 40,832 | $ 35,826 | $ 40,832 | $ 35,826 | $ 28,327 | ||||||
Provision for loan and lease loss | $ 3,900 | $ 16,900 | $ 4,000 | $ 1,000 | $ 200 | $ 4,862 | $ 4,100 | $ 1,900 | 25,800 | 11,061 | 9,700 |
Charged off | (15,979) | (5,096) | (808) | ||||||||
Transfers to held for sale | (2,307) | (1,828) | (2,727) | ||||||||
Recoveries | 805 | 869 | 1,334 | ||||||||
Balance, end of period | $ 49,151 | $ 40,832 | $ 49,151 | $ 40,832 | $ 35,826 |
LOANS, LEASES & ALLOWANCE FOR71
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - IMPAIRED LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Receivables [Abstract] | |||
Nonaccrual loans and leases—90 days past due plus other nonaccrual loans and leases | $ 30,197 | $ 26,815 | $ 28,790 |
Troubled debt restructured loans and leases—non-accrual | 1,029 | 1,578 | 3,069 |
Troubled debt restructured loans and leases—performing | 0 | 0 | 210 |
Total impaired loans and leases | $ 31,226 | $ 28,393 | $ 32,069 |
LOANS, LEASES & ALLOWANCE FOR72
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - LOANS NARRATIVE (Details) | 12 Months Ended | |
Jun. 30, 2018USD ($)loan | Jun. 30, 2017USD ($)loan | |
Financing Receivable, Impaired [Line Items] | ||
Write offs on impaired loans | $ 2,184,000 | |
Impaired loans with no specific allowance | 31,226,000 | |
Average carrying value of impaired loans | 30,420,000 | $ 34,154,000 |
Loans past due ninety days or more and still accruing | 0 | 0 |
Allowance allocated to restructured loans | $ 0 | $ 44,000 |
Number of new related party loans | loan | 0 | 0 |
Principal payments received on related party loans | $ 341,000 | $ 353,000 |
Ending balance of related party loans | 8,956,000 | 9,297,000 |
Interest earned on related party loans | 81,000 | 95,000 |
Purchased loans serviced by others, amount | $ 64,536,000 | $ 84,363,000 |
Purchased loans serviced by others, percent of portfolio | 0.76% | 1.13% |
Fixed Interest Rate | ||
Financing Receivable, Impaired [Line Items] | ||
Percent of loans by interest rate type | 12.96% | |
Adjustable Interest Rate | ||
Financing Receivable, Impaired [Line Items] | ||
Percent of loans by interest rate type | 87.04% | |
Real estate loans | Geographic concentration risk | CALIFORNIA | ||
Financing Receivable, Impaired [Line Items] | ||
Concentration risk percentage | 71.08% | 69.57% |
Single Family Mortgage Secured | ||
Financing Receivable, Impaired [Line Items] | ||
LTV ratio | 80.00% | |
Single Family Mortgage Secured | Minimum | ||
Financing Receivable, Impaired [Line Items] | ||
Loan term | 15 years | |
Single Family Mortgage Secured | Maximum | ||
Financing Receivable, Impaired [Line Items] | ||
Loan term | 30 years | |
Commercial Real Estate | Minimum | ||
Financing Receivable, Impaired [Line Items] | ||
LTV ratio | 65.00% | |
Commercial Real Estate | Maximum | ||
Financing Receivable, Impaired [Line Items] | ||
LTV ratio | 80.00% |
LOANS, LEASES & ALLOWANCE FOR73
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - ALLOWANCE FOR CREDIT LOSS NARRATIVE (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | $ 8,488,649 | $ 7,420,868 |
Auto and RV secured | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 213,462 | 154,089 |
Mortgage | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 4,170,495 | 3,878,377 |
Multifamily real estate secured | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 1,800,687 | 1,615,149 |
Interest only loans | 1,123,100 | |
Option adjustable-rate mortgage loans | 2,300 | |
Commercial real estate secured | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 220,379 | $ 162,715 |
LTV less than or equal to 60% | Mortgage | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 2,443,303 | |
LTV 61% - 70% | Mortgage | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 1,387,807 | |
LTV 61% - 70% | Commercial real estate secured | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 56,649 | |
LTV 71% - 80% | Mortgage | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 339,193 | |
LTV 71% - 80% | Commercial real estate secured | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 12,069 | |
LTV greater than 80% | Mortgage | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 192 | |
LTV greater than 80% | Multifamily real estate secured | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 1,200 | |
LTV greater than 80% | Commercial real estate secured | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 0 | |
LTV less than or equal to 55% | Multifamily real estate secured | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 957,441 | |
LTV 56% - 65% | Multifamily real estate secured | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 562,928 | |
LTV 66% - 75% | Multifamily real estate secured | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 269,619 | |
LTV 76% - 80% | Multifamily real estate secured | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 9,499 | |
LTV less than or equal to 50% | Commercial real estate secured | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 104,070 | |
LTV 51% - 60% | Commercial real estate secured | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 47,591 | |
FICO greater than or equal to 770 | Auto and RV secured | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 105,612 | |
FICO 715 - 769 | Auto and RV secured | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 73,013 | |
FICO 700 - 714 | Auto and RV secured | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 18,524 | |
FICO 660 - 699 | Auto and RV secured | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | 14,992 | |
FICO less than 660 | Auto and RV secured | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans collectively evaluated for impairment | $ 1,321 |
LOANS, LEASES & ALLOWANCE FOR74
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - ALLOWANCE FOR LOAN LOSS BY CLASS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance, beginning of period | $ 40,832 | $ 35,826 | $ 40,832 | $ 35,826 | $ 28,327 | ||||||
Provision for loan and lease loss | $ 3,900 | $ 16,900 | $ 4,000 | 1,000 | $ 200 | $ 4,862 | $ 4,100 | 1,900 | 25,800 | 11,061 | 9,700 |
Charge-offs | (15,979) | (5,096) | (808) | ||||||||
Transfers to held for sale | (2,307) | (1,828) | (2,727) | ||||||||
Recoveries | 805 | 869 | 1,334 | ||||||||
Balance, end of period | 49,151 | 40,832 | 49,151 | 40,832 | 35,826 | ||||||
Mortgage | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance, beginning of period | 19,972 | 18,666 | 19,972 | 18,666 | 13,664 | ||||||
Provision for loan and lease loss | 632 | 2,308 | 5,040 | ||||||||
Charge-offs | (271) | (1,115) | (205) | ||||||||
Transfers to held for sale | 0 | 0 | 0 | ||||||||
Recoveries | 35 | 113 | 167 | ||||||||
Balance, end of period | 20,368 | 19,972 | 20,368 | 19,972 | 18,666 | ||||||
Home equity | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance, beginning of period | 19 | 23 | 19 | 23 | 122 | ||||||
Provision for loan and lease loss | (18) | (6) | (134) | ||||||||
Charge-offs | (1) | (23) | (3) | ||||||||
Transfers to held for sale | 0 | 0 | 0 | ||||||||
Recoveries | 14 | 25 | 38 | ||||||||
Balance, end of period | 14 | 19 | 14 | 19 | 23 | ||||||
Warehouse & Other | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance, beginning of period | 2,298 | 2,685 | 2,298 | 2,685 | 1,879 | ||||||
Provision for loan and lease loss | 69 | (387) | 806 | ||||||||
Charge-offs | (287) | 0 | 0 | ||||||||
Transfers to held for sale | 0 | 0 | 0 | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Balance, end of period | 2,080 | 2,298 | 2,080 | 2,298 | 2,685 | ||||||
Multifamily real estate secured | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance, beginning of period | 4,638 | 3,938 | 4,638 | 3,938 | 4,363 | ||||||
Provision for loan and lease loss | 372 | 323 | (311) | ||||||||
Charge-offs | 0 | 0 | (114) | ||||||||
Transfers to held for sale | 0 | 0 | 0 | ||||||||
Recoveries | 0 | 377 | 0 | ||||||||
Balance, end of period | 5,010 | 4,638 | 5,010 | 4,638 | 3,938 | ||||||
Commercial real estate secured | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance, beginning of period | 1,008 | 882 | 1,008 | 882 | 1,103 | ||||||
Provision for loan and lease loss | (159) | 110 | (1,056) | ||||||||
Charge-offs | 0 | (23) | (147) | ||||||||
Transfers to held for sale | 0 | 0 | 0 | ||||||||
Recoveries | 0 | 39 | 982 | ||||||||
Balance, end of period | 849 | 1,008 | 849 | 1,008 | 882 | ||||||
Auto and RV secured | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance, beginning of period | 2,379 | 1,615 | 2,379 | 1,615 | 953 | ||||||
Provision for loan and lease loss | 1,390 | 990 | 854 | ||||||||
Charge-offs | (803) | (433) | (339) | ||||||||
Transfers to held for sale | 0 | 0 | 0 | ||||||||
Recoveries | 212 | 207 | 147 | ||||||||
Balance, end of period | 3,178 | 2,379 | 3,178 | 2,379 | 1,615 | ||||||
Factoring | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance, beginning of period | 401 | 245 | 401 | 245 | 292 | ||||||
Provision for loan and lease loss | 44 | 156 | (47) | ||||||||
Charge-offs | 0 | 0 | 0 | ||||||||
Transfers to held for sale | 0 | 0 | 0 | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Balance, end of period | 445 | 401 | 445 | 401 | 245 | ||||||
Commercial & Industrial | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance, beginning of period | 9,881 | 7,630 | 9,881 | 7,630 | 5,882 | ||||||
Provision for loan and lease loss | 6,357 | 2,251 | 1,748 | ||||||||
Charge-offs | 0 | 0 | 0 | ||||||||
Transfers to held for sale | 0 | 0 | 0 | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Balance, end of period | 16,238 | 9,881 | 16,238 | 9,881 | 7,630 | ||||||
Other | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance, beginning of period | $ 236 | $ 142 | 236 | 142 | 69 | ||||||
Provision for loan and lease loss | 17,113 | 5,316 | 2,800 | ||||||||
Charge-offs | (14,617) | (3,502) | 0 | ||||||||
Transfers to held for sale | (2,307) | (1,828) | (2,727) | ||||||||
Recoveries | 544 | 108 | 0 | ||||||||
Balance, end of period | $ 969 | $ 236 | $ 969 | $ 236 | $ 142 |
LOANS, LEASES & ALLOWANCE FOR75
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - LOANS INDIVIDUALLY EVALUATED FOR IMPAIRMENT (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | |
With an allowance recorded: | |||
Unpaid Principal Balance | $ 32,331 | $ 32,084 | |
Principal Balance Adjustment | [1] | 3,294 | 3,691 |
Recorded Investment | 29,037 | 28,393 | |
Accrued Interest/Origination Fees | 101 | 413 | |
Total | 29,138 | 28,806 | |
Related Allocation of General Allowance | 278 | 1,058 | |
Related Allocation of Specific Allowance | $ 0 | $ 0 | |
As a % of total gross loans and leases | |||
Unpaid Principal Balance | 0.38% | 0.43% | |
Principal Balance Adjustment | 0.04% | 0.05% | |
Recorded Investment | 0.34% | 0.38% | |
Accrued Interest/Origination Fees | 0.00% | 0.01% | |
Total | 0.34% | 0.39% | |
Related Allocation of General Allowance | 0.00% | 0.01% | |
Related Allocation of Specific Allowance | 0.00% | 0.00% | |
Mortgage | In-house originated | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | $ 1,584 | $ 4,240 | |
Principal Balance Adjustment | [1] | 951 | 1,032 |
Recorded Investment | 633 | 3,208 | |
Accrued Interest/Origination Fees | 78 | 205 | |
Total | 711 | 3,413 | |
With an allowance recorded: | |||
Unpaid Principal Balance | 24,607 | 16,124 | |
Principal Balance Adjustment | [1] | 47 | 12 |
Recorded Investment | 24,560 | 16,112 | |
Accrued Interest/Origination Fees | 0 | 0 | |
Total | 24,560 | 16,112 | |
Related Allocation of General Allowance | 247 | 643 | |
Related Allocation of Specific Allowance | 0 | 0 | |
Mortgage | Purchased | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | 3,598 | 4,563 | |
Principal Balance Adjustment | [1] | 1,739 | 1,903 |
Recorded Investment | 1,859 | 2,660 | |
Accrued Interest/Origination Fees | 0 | 0 | |
Total | 1,859 | 2,660 | |
With an allowance recorded: | |||
Unpaid Principal Balance | 1,394 | 1,429 | |
Principal Balance Adjustment | [1] | 0 | 32 |
Recorded Investment | 1,394 | 1,397 | |
Accrued Interest/Origination Fees | 21 | 17 | |
Total | 1,415 | 1,414 | |
Related Allocation of General Allowance | 14 | 37 | |
Related Allocation of Specific Allowance | 0 | 0 | |
Multifamily real estate secured | In-house originated | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 4,170 | ||
Principal Balance Adjustment | [1] | 192 | |
Recorded Investment | 3,978 | ||
Accrued Interest/Origination Fees | 186 | ||
Total | 4,164 | ||
Related Allocation of General Allowance | 19 | ||
Related Allocation of Specific Allowance | 0 | ||
Multifamily real estate secured | Purchased | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | 480 | 492 | |
Principal Balance Adjustment | [1] | 248 | 215 |
Recorded Investment | 232 | 277 | |
Accrued Interest/Origination Fees | 0 | 0 | |
Total | 232 | 277 | |
Auto and RV secured | In-house originated | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | 369 | 418 | |
Principal Balance Adjustment | [1] | 309 | 295 |
Recorded Investment | 60 | 123 | |
Accrued Interest/Origination Fees | 2 | 3 | |
Total | 62 | 126 | |
With an allowance recorded: | |||
Unpaid Principal Balance | 42 | ||
Principal Balance Adjustment | [1] | 8 | |
Recorded Investment | 34 | ||
Accrued Interest/Origination Fees | 2 | ||
Total | 36 | ||
Related Allocation of General Allowance | 1 | ||
Related Allocation of Specific Allowance | 0 | ||
Home equity | In-house originated | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 16 | 18 | |
Principal Balance Adjustment | [1] | 0 | 2 |
Recorded Investment | 16 | 16 | |
Accrued Interest/Origination Fees | 0 | 0 | |
Total | 16 | 16 | |
Related Allocation of General Allowance | 1 | 1 | |
Related Allocation of Specific Allowance | 0 | 0 | |
Commercial & Industrial | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 172 | 314 | |
Principal Balance Adjustment | [1] | 0 | 0 |
Recorded Investment | 172 | 314 | |
Accrued Interest/Origination Fees | 0 | 0 | |
Total | 172 | 314 | |
Related Allocation of General Allowance | 9 | 314 | |
Related Allocation of Specific Allowance | 0 | 0 | |
Other | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 111 | 274 | |
Principal Balance Adjustment | [1] | 0 | 0 |
Recorded Investment | 111 | 274 | |
Accrued Interest/Origination Fees | 0 | 0 | |
Total | 111 | 274 | |
Related Allocation of General Allowance | 7 | 43 | |
Related Allocation of Specific Allowance | $ 0 | $ 0 | |
[1] | Impaired loans with an allowance recorded do not have any charge-offs. Principal balance adjustments on impaired loans with an allowance recorded represent interest payments that have been applied to the book balance as a result of the loans’ non-accrual status. |
LOANS, LEASES & ALLOWANCE FOR76
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - ALLOWANCE FOR LOAN LOSS BY PORTFOLIO CLASS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment– general allowance | $ 278 | $ 1,058 | |
Individually evaluated for impairment– specific allowance | 0 | 0 | |
Collectively evaluated for impairment | 48,873 | 39,774 | |
Total ending allowance balance | 49,151 | 40,832 | |
Loans and leases individually evaluated for impairment | [1] | 29,037 | 28,393 |
Loans and leases collectively evaluated for impairment | 8,488,649 | 7,420,868 | |
Principal loan and lease balance | 8,517,686 | 7,449,261 | |
Unaccreted discounts and loan and lease fees | (36,246) | (33,936) | |
Total recorded investment in loans and leases | 8,481,440 | 7,415,325 | |
Mortgage | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment– general allowance | 261 | 680 | |
Individually evaluated for impairment– specific allowance | 0 | 0 | |
Collectively evaluated for impairment | 20,107 | 19,292 | |
Total ending allowance balance | 20,368 | 19,972 | |
Loans and leases individually evaluated for impairment | [1] | 28,446 | 23,377 |
Loans and leases collectively evaluated for impairment | 4,170,495 | 3,878,377 | |
Principal loan and lease balance | 4,198,941 | 3,901,754 | |
Unaccreted discounts and loan and lease fees | 9,187 | 10,486 | |
Total recorded investment in loans and leases | 4,208,128 | 3,912,240 | |
Home equity | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment– general allowance | 1 | 1 | |
Individually evaluated for impairment– specific allowance | 0 | 0 | |
Collectively evaluated for impairment | 13 | 18 | |
Total ending allowance balance | 14 | 19 | |
Loans and leases individually evaluated for impairment | [1] | 16 | 16 |
Loans and leases collectively evaluated for impairment | 2,290 | 2,076 | |
Principal loan and lease balance | 2,306 | 2,092 | |
Unaccreted discounts and loan and lease fees | 48 | 34 | |
Total recorded investment in loans and leases | 2,354 | 2,126 | |
Warehouse & Other | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment– general allowance | 0 | 0 | |
Individually evaluated for impairment– specific allowance | 0 | 0 | |
Collectively evaluated for impairment | 2,080 | 2,298 | |
Total ending allowance balance | 2,080 | 2,298 | |
Loans and leases individually evaluated for impairment | [1] | 0 | 0 |
Loans and leases collectively evaluated for impairment | 412,085 | 452,390 | |
Principal loan and lease balance | 412,085 | 452,390 | |
Unaccreted discounts and loan and lease fees | (706) | (1,702) | |
Total recorded investment in loans and leases | 411,379 | 450,688 | |
Multifamily real estate secured | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment– general allowance | 0 | 19 | |
Individually evaluated for impairment– specific allowance | 0 | 0 | |
Collectively evaluated for impairment | 5,010 | 4,619 | |
Total ending allowance balance | 5,010 | 4,638 | |
Loans and leases individually evaluated for impairment | [1] | 232 | 4,255 |
Loans and leases collectively evaluated for impairment | 1,800,687 | 1,615,149 | |
Principal loan and lease balance | 1,800,919 | 1,619,404 | |
Unaccreted discounts and loan and lease fees | 5,063 | 4,586 | |
Total recorded investment in loans and leases | 1,805,982 | 1,623,990 | |
Commercial real estate secured | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment– general allowance | 0 | 0 | |
Individually evaluated for impairment– specific allowance | 0 | 0 | |
Collectively evaluated for impairment | 849 | 1,008 | |
Total ending allowance balance | 849 | 1,008 | |
Loans and leases individually evaluated for impairment | [1] | 0 | 0 |
Loans and leases collectively evaluated for impairment | 220,379 | 162,715 | |
Principal loan and lease balance | 220,379 | 162,715 | |
Unaccreted discounts and loan and lease fees | 836 | 744 | |
Total recorded investment in loans and leases | 221,215 | 163,459 | |
Auto and RV secured | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment– general allowance | 0 | 1 | |
Individually evaluated for impairment– specific allowance | 0 | 0 | |
Collectively evaluated for impairment | 3,178 | 2,378 | |
Total ending allowance balance | 3,178 | 2,379 | |
Loans and leases individually evaluated for impairment | [1] | 60 | 157 |
Loans and leases collectively evaluated for impairment | 213,462 | 154,089 | |
Principal loan and lease balance | 213,522 | 154,246 | |
Unaccreted discounts and loan and lease fees | 2,065 | 2,054 | |
Total recorded investment in loans and leases | 215,587 | 156,300 | |
Factoring | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment– general allowance | 0 | 0 | |
Individually evaluated for impairment– specific allowance | 0 | 0 | |
Collectively evaluated for impairment | 445 | 401 | |
Total ending allowance balance | 445 | 401 | |
Loans and leases individually evaluated for impairment | [1] | 0 | 0 |
Loans and leases collectively evaluated for impairment | 169,885 | 160,674 | |
Principal loan and lease balance | 169,885 | 160,674 | |
Unaccreted discounts and loan and lease fees | (48,039) | (49,350) | |
Total recorded investment in loans and leases | 121,846 | 111,324 | |
Commercial & Industrial | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment– general allowance | 9 | 314 | |
Individually evaluated for impairment– specific allowance | 0 | 0 | |
Collectively evaluated for impairment | 16,229 | 9,567 | |
Total ending allowance balance | 16,238 | 9,881 | |
Loans and leases individually evaluated for impairment | [1] | 172 | 314 |
Loans and leases collectively evaluated for impairment | 1,480,879 | 991,918 | |
Principal loan and lease balance | 1,481,051 | 992,232 | |
Unaccreted discounts and loan and lease fees | (3,884) | (640) | |
Total recorded investment in loans and leases | 1,477,167 | 991,592 | |
Other | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Individually evaluated for impairment– general allowance | 7 | 43 | |
Individually evaluated for impairment– specific allowance | 0 | 0 | |
Collectively evaluated for impairment | 962 | 193 | |
Total ending allowance balance | 969 | 236 | |
Loans and leases individually evaluated for impairment | [1] | 111 | 274 |
Loans and leases collectively evaluated for impairment | 18,487 | 3,480 | |
Principal loan and lease balance | 18,598 | 3,754 | |
Unaccreted discounts and loan and lease fees | (816) | (148) | |
Total recorded investment in loans and leases | $ 17,782 | $ 3,606 | |
[1] | Loans and leases evaluated for impairment include TDRs that have been performing for more than six |
LOANS, LEASES & ALLOWANCE FOR77
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - NONACCRUAL LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases | $ 31,226 | $ 28,393 |
Total nonaccrual loans secured by real estate | $ 28,694 | $ 27,648 |
Nonaccrual loans and leases to total loans (as percent) | 0.37% | 0.38% |
Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases | $ 25,193 | $ 19,320 |
Mortgage | Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases | 3,253 | 4,057 |
Home equity | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases | 16 | 16 |
Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases | 0 | 3,978 |
Multifamily real estate secured | Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases | 232 | 277 |
Auto and RV secured | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases | 60 | 157 |
Commercial & Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases | 2,361 | 314 |
Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases | $ 111 | $ 274 |
LOANS, LEASES & ALLOWANCE FOR78
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - NONACCRUAL LOANS NARRATIVE (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018USD ($)loan | Jun. 30, 2017USD ($)loan | Jun. 30, 2016USD ($) | |
Financing Receivable, Impaired [Line Items] | |||
Ratio of nonaccrual loans considered TDRs | 3.30% | 5.56% | |
Term which borrowers make timely payments after TDRs are considered nonaccrual | 6 months | ||
Interest recognized on performing loans temporarily modified as TDRs | $ 0 | $ 7 | $ 9 |
Average balances of performing TDR's | 0 | 125 | 214 |
Average balances of impaired loans and leases | $ 30,420 | $ 34,154 | 28,913 |
Period of delinquent property taxes repaid by borrower | 1 year | ||
Number of loans modified as TDR within previous twelve months for which there was a payment in default | loan | 0 | 0 | |
Mortgage | |||
Financing Receivable, Impaired [Line Items] | |||
Average balances of performing TDR's | $ 0 | $ 125 | 214 |
Average balances of impaired loans and leases | 27,108 | 28,823 | 22,969 |
Auto and RV secured | |||
Financing Receivable, Impaired [Line Items] | |||
Average balances of performing TDR's | 0 | 0 | 0 |
Average balances of impaired loans and leases | $ 129 | $ 231 | $ 327 |
Auto and RV secured | Minimum | |||
Financing Receivable, Impaired [Line Items] | |||
Period of interest-only payments made by borrowers that reverted loan back to fully amortizing | 6 months | ||
Auto and RV secured | Maximum | |||
Financing Receivable, Impaired [Line Items] | |||
Period of interest-only payments made by borrowers that reverted loan back to fully amortizing | 1 year | ||
Nonaccrual | Mortgage | |||
Financing Receivable, Impaired [Line Items] | |||
Ratio of nonaccrual loans that are single family mortgage | 91.10% | ||
Value after write-downs of original appraised value, percent | 41.28% |
LOANS, LEASES & ALLOWANCE FOR79
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - UNPAID PRINCIPAL BALANCE FOR PERFORMING AND NONACCRUAL (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | $ 8,517,686 | $ 7,449,261 |
Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 8,486,460 | 7,420,868 |
Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 31,226 | 28,393 |
Mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 4,198,941 | 3,901,754 |
Mortgage | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 4,170,495 | 3,878,377 |
Mortgage | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 28,446 | 23,377 |
Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 2,306 | 2,092 |
Home equity | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 2,290 | 2,076 |
Home equity | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 16 | 16 |
Warehouse & Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 412,085 | 452,390 |
Warehouse & Other | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 412,085 | 452,390 |
Warehouse & Other | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 0 |
Multifamily real estate secured | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 1,800,919 | 1,619,404 |
Multifamily real estate secured | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 1,800,687 | 1,615,149 |
Multifamily real estate secured | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 232 | 4,255 |
Commercial real estate secured | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 220,379 | 162,715 |
Commercial real estate secured | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 220,379 | 162,715 |
Commercial real estate secured | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 0 |
Auto and RV secured | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 213,522 | 154,246 |
Auto and RV secured | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 213,462 | 154,089 |
Auto and RV secured | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 60 | 157 |
Factoring | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 169,885 | 160,674 |
Factoring | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 169,885 | 160,674 |
Factoring | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 0 |
Commercial & Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 1,481,051 | 992,232 |
Commercial & Industrial | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 1,478,690 | 991,918 |
Commercial & Industrial | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 2,361 | 314 |
Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 18,598 | 3,754 |
Other | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 18,487 | 3,480 |
Other | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | $ 111 | $ 274 |
LOANS, LEASES & ALLOWANCE FOR80
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - PERFORMING AND NONACCRUAL BY CLASS AND SOURCE (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | $ 8,517,686 | $ 7,449,261 |
Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 8,486,460 | 7,420,868 |
Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 31,226 | 28,393 |
Mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 4,198,941 | 3,901,754 |
Mortgage | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 4,170,495 | 3,878,377 |
Mortgage | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 28,446 | 23,377 |
Mortgage | Origination | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 4,159,204 | 3,846,969 |
Mortgage | Origination | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 4,134,011 | 3,827,649 |
Mortgage | Origination | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 25,193 | 19,320 |
Mortgage | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 39,737 | 54,785 |
Mortgage | Purchased | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 36,484 | 50,728 |
Mortgage | Purchased | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 3,253 | 4,057 |
Multifamily real estate secured | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 1,800,919 | 1,619,404 |
Multifamily real estate secured | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 1,800,687 | 1,615,149 |
Multifamily real estate secured | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 232 | 4,255 |
Multifamily real estate secured | Origination | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 1,735,051 | 1,532,890 |
Multifamily real estate secured | Origination | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 1,735,051 | 1,528,912 |
Multifamily real estate secured | Origination | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 3,978 |
Multifamily real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 65,868 | 86,514 |
Multifamily real estate secured | Purchased | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 65,636 | 86,237 |
Multifamily real estate secured | Purchased | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 232 | 277 |
Commercial real estate secured | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 220,379 | 162,715 |
Commercial real estate secured | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 220,379 | 162,715 |
Commercial real estate secured | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 0 |
Commercial real estate secured | Origination | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 212,235 | 150,880 |
Commercial real estate secured | Origination | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 212,235 | 150,880 |
Commercial real estate secured | Origination | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 0 |
Commercial real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 8,144 | 11,835 |
Commercial real estate secured | Purchased | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 8,144 | 11,835 |
Commercial real estate secured | Purchased | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | $ 0 | $ 0 |
LOANS, LEASES & ALLOWANCE FOR81
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - TROUBLED DEBT RESTRUCTURINGS BY CLASS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Financing Receivable, Modifications [Line Items] | |||
Performing loans temporarily modified as TDR | $ 0 | $ 0 | $ 210 |
Nonaccrual loans and leases | 31,226 | 28,393 | 31,859 |
Total impaired loans and leases | 31,226 | 28,393 | 32,069 |
Interest income recognized on performing TDRs | 0 | 7 | 9 |
Average balances of performing TDR's | 0 | 125 | 214 |
Average balances of impaired loans and leases | 30,420 | 34,154 | 28,913 |
Mortgage | |||
Financing Receivable, Modifications [Line Items] | |||
Performing loans temporarily modified as TDR | 0 | 0 | 210 |
Nonaccrual loans and leases | 28,446 | 23,377 | 28,400 |
Total impaired loans and leases | 28,446 | 23,377 | 28,610 |
Interest income recognized on performing TDRs | 0 | 7 | 9 |
Average balances of performing TDR's | 0 | 125 | 214 |
Average balances of impaired loans and leases | 27,108 | 28,823 | 22,969 |
Home equity | |||
Financing Receivable, Modifications [Line Items] | |||
Performing loans temporarily modified as TDR | 0 | 0 | 0 |
Nonaccrual loans and leases | 16 | 16 | 33 |
Total impaired loans and leases | 16 | 16 | 33 |
Interest income recognized on performing TDRs | 0 | 0 | 0 |
Average balances of performing TDR's | 0 | 0 | 0 |
Average balances of impaired loans and leases | 16 | 34 | 18 |
Warehouse & Other | |||
Financing Receivable, Modifications [Line Items] | |||
Performing loans temporarily modified as TDR | 0 | 0 | 0 |
Nonaccrual loans and leases | 0 | 0 | 0 |
Total impaired loans and leases | 0 | 0 | 0 |
Interest income recognized on performing TDRs | 0 | 0 | 0 |
Average balances of performing TDR's | 0 | 0 | 0 |
Average balances of impaired loans and leases | 0 | 0 | 0 |
Multifamily real estate secured | |||
Financing Receivable, Modifications [Line Items] | |||
Performing loans temporarily modified as TDR | 0 | 0 | 0 |
Nonaccrual loans and leases | 232 | 4,255 | 2,218 |
Total impaired loans and leases | 232 | 4,255 | 2,218 |
Interest income recognized on performing TDRs | 0 | 0 | 0 |
Average balances of performing TDR's | 0 | 0 | 0 |
Average balances of impaired loans and leases | 2,385 | 4,409 | 4,495 |
Commercial real estate secured | |||
Financing Receivable, Modifications [Line Items] | |||
Performing loans temporarily modified as TDR | 0 | 0 | 0 |
Nonaccrual loans and leases | 0 | 0 | 254 |
Total impaired loans and leases | 0 | 0 | 254 |
Interest income recognized on performing TDRs | 0 | 0 | 0 |
Average balances of performing TDR's | 0 | 0 | 0 |
Average balances of impaired loans and leases | 0 | 144 | 969 |
Auto and RV secured | |||
Financing Receivable, Modifications [Line Items] | |||
Performing loans temporarily modified as TDR | 0 | 0 | 0 |
Nonaccrual loans and leases | 60 | 157 | 278 |
Total impaired loans and leases | 60 | 157 | 278 |
Interest income recognized on performing TDRs | 0 | 0 | 0 |
Average balances of performing TDR's | 0 | 0 | 0 |
Average balances of impaired loans and leases | 129 | 231 | 327 |
Factoring | |||
Financing Receivable, Modifications [Line Items] | |||
Performing loans temporarily modified as TDR | 0 | 0 | 0 |
Nonaccrual loans and leases | 0 | 0 | 0 |
Total impaired loans and leases | 0 | 0 | 0 |
Interest income recognized on performing TDRs | 0 | 0 | 0 |
Average balances of performing TDR's | 0 | 0 | 0 |
Average balances of impaired loans and leases | 0 | 0 | 0 |
Commercial & Industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Performing loans temporarily modified as TDR | 0 | 0 | 0 |
Nonaccrual loans and leases | 2,361 | 314 | 0 |
Total impaired loans and leases | 2,361 | 314 | 0 |
Interest income recognized on performing TDRs | 0 | 0 | 0 |
Average balances of performing TDR's | 0 | 0 | 0 |
Average balances of impaired loans and leases | 535 | 63 | 0 |
Other | |||
Financing Receivable, Modifications [Line Items] | |||
Performing loans temporarily modified as TDR | 0 | 0 | 0 |
Nonaccrual loans and leases | 111 | 274 | 676 |
Total impaired loans and leases | 111 | 274 | 676 |
Interest income recognized on performing TDRs | 0 | 0 | 0 |
Average balances of performing TDR's | 0 | 0 | 0 |
Average balances of impaired loans and leases | $ 247 | $ 450 | $ 135 |
LOANS, LEASES & ALLOWANCE FOR82
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - LOANS MODIFIED AS TDR BY CLASS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Financing Receivable, Modifications [Line Items] | |||
Total loans modified as TDRs | $ 0 | $ 259 | $ 0 |
Other | |||
Financing Receivable, Modifications [Line Items] | |||
Total loans modified as TDRs | $ 0 | $ 259 | $ 0 |
LOANS, LEASES & ALLOWANCE FOR83
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - LOANS BY CLASS MODIFIED AS TDR WITH PRE AND POST BALANCES (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018USD ($)loan | Jun. 30, 2017USD ($)loan | Jun. 30, 2016USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 0 | 7,000 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 259 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 259 | $ 0 |
Mortgage | In-house originated | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 0 | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Other | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 7,000 | ||
Pre-Modification Outstanding Recorded Investment | $ 259 | ||
Post-Modification Outstanding Recorded Investment | $ 259 |
LOANS, LEASES & ALLOWANCE FOR84
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - LOANS BY CREDIT QUALITY INDICATOR (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | $ 8,517,686 | $ 7,449,261 |
As of % of gross loans and leases | 100.00% | 100.00% |
Mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | $ 4,198,941 | $ 3,901,754 |
Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 4,159,204 | 3,846,969 |
Mortgage | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 39,737 | 54,785 |
Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 2,306 | 2,092 |
Home equity | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 2,306 | 2,092 |
Warehouse & Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 412,085 | 452,390 |
Warehouse & Other | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 412,085 | 452,390 |
Multifamily real estate secured | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 1,800,919 | 1,619,404 |
Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 1,735,051 | 1,532,890 |
Multifamily real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 65,868 | 86,514 |
Commercial real estate secured | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 220,379 | 162,715 |
Commercial real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 212,235 | 150,880 |
Commercial real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 8,144 | 11,835 |
Auto and RV secured | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 213,522 | 154,246 |
Auto and RV secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 213,522 | 154,246 |
Factoring | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 169,885 | 160,674 |
Commercial & Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 1,481,051 | 992,232 |
Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 18,598 | 3,754 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | $ 8,451,270 | $ 7,395,765 |
As of % of gross loans and leases | 99.20% | 99.30% |
Pass | Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | $ 4,113,537 | $ 3,808,886 |
Pass | Mortgage | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 36,024 | 49,893 |
Pass | Home equity | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 2,290 | 2,076 |
Pass | Warehouse & Other | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 412,085 | 452,390 |
Pass | Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 1,731,068 | 1,526,931 |
Pass | Multifamily real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 64,663 | 84,775 |
Pass | Commercial real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 212,235 | 150,880 |
Pass | Commercial real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 6,226 | 9,868 |
Pass | Auto and RV secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 213,455 | 153,994 |
Pass | Factoring | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 169,885 | 160,674 |
Pass | Commercial & Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 1,471,433 | 991,918 |
Pass | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 18,369 | 3,480 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | $ 31,343 | $ 23,778 |
As of % of gross loans and leases | 0.40% | 0.30% |
Special Mention | Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | $ 19,403 | $ 18,763 |
Special Mention | Mortgage | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 461 | 538 |
Special Mention | Home equity | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 0 |
Special Mention | Warehouse & Other | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 0 |
Special Mention | Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 3,983 | 1,981 |
Special Mention | Multifamily real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 452 |
Special Mention | Commercial real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 0 |
Special Mention | Commercial real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 1,918 | 1,967 |
Special Mention | Auto and RV secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 77 |
Special Mention | Factoring | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 0 |
Special Mention | Commercial & Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 5,460 | 0 |
Special Mention | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 118 | 0 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | $ 32,884 | $ 29,718 |
As of % of gross loans and leases | 0.40% | 0.40% |
Substandard | Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | $ 26,264 | $ 19,320 |
Substandard | Mortgage | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 3,252 | 4,354 |
Substandard | Home equity | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 16 | 16 |
Substandard | Warehouse & Other | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 0 |
Substandard | Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 3,978 |
Substandard | Multifamily real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 1,205 | 1,287 |
Substandard | Commercial real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 0 |
Substandard | Commercial real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 0 |
Substandard | Auto and RV secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 67 | 175 |
Substandard | Factoring | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 0 |
Substandard | Commercial & Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 1,969 | 314 |
Substandard | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 111 | 274 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | $ 2,189 | $ 0 |
As of % of gross loans and leases | 0.00% | 0.00% |
Doubtful | Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | $ 0 | $ 0 |
Doubtful | Mortgage | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 0 |
Doubtful | Home equity | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 0 |
Doubtful | Warehouse & Other | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 0 |
Doubtful | Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 0 |
Doubtful | Multifamily real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 0 |
Doubtful | Commercial real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 0 |
Doubtful | Commercial real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 0 |
Doubtful | Auto and RV secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 0 |
Doubtful | Factoring | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 0 | 0 |
Doubtful | Commercial & Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | 2,189 | 0 |
Doubtful | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans and leases | $ 0 | $ 0 |
LOANS, LEASES & ALLOWANCE FOR85
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - PAST DUE LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | $ 38,425 | $ 33,421 |
As a % of gross loans and leases | 0.45% | 0.45% |
Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | $ 33,079 | $ 26,514 |
Mortgage | Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | 1,642 | 2,096 |
Home equity | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | 16 | 16 |
Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | 410 | 3,978 |
Auto and RV secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | 315 | 229 |
Commercial & Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | 2,662 | 314 |
Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | 301 | 274 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | $ 9,257 | $ 5,285 |
As a % of gross loans and leases | 0.11% | 0.07% |
30-59 Days Past Due | Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | $ 7,830 | $ 4,892 |
30-59 Days Past Due | Mortgage | Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | 354 | 244 |
30-59 Days Past Due | Home equity | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | 0 | 0 |
30-59 Days Past Due | Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | 410 | 0 |
30-59 Days Past Due | Auto and RV secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | 284 | 149 |
30-59 Days Past Due | Commercial & Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | 300 | 0 |
30-59 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | 79 | 0 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | $ 3,478 | $ 2,503 |
As a % of gross loans and leases | 0.04% | 0.03% |
60-89 Days Past Due | Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | $ 3,240 | $ 2,325 |
60-89 Days Past Due | Mortgage | Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | 105 | 101 |
60-89 Days Past Due | Home equity | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | 0 | 0 |
60-89 Days Past Due | Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | 0 | 0 |
60-89 Days Past Due | Auto and RV secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | 22 | 77 |
60-89 Days Past Due | Commercial & Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | 0 | 0 |
60-89 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | 111 | 0 |
90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | $ 25,690 | $ 25,633 |
As a % of gross loans and leases | 0.30% | 0.35% |
90 Days Past Due | Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | $ 22,009 | $ 19,297 |
90 Days Past Due | Mortgage | Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | 1,183 | 1,751 |
90 Days Past Due | Home equity | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | 16 | 16 |
90 Days Past Due | Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | 0 | 3,978 |
90 Days Past Due | Auto and RV secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | 9 | 3 |
90 Days Past Due | Commercial & Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | 2,362 | 314 |
90 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due gross loans and leases | $ 111 | $ 274 |
FURNITURE, EQUIPMENT AND SOFT86
FURNITURE, EQUIPMENT AND SOFTWARE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Furniture, equipment and software, gross | $ 48,839 | $ 38,548 | |
Less accumulated depreciation and amortization | (27,385) | (21,889) | |
Furniture, equipment and software—net | 21,454 | 16,659 | |
Depreciation an amortization expense | 7,923 | 6,094 | $ 4,795 |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Furniture, equipment and software, gross | 1,953 | 1,983 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Furniture, equipment and software, gross | 5,418 | 5,083 | |
Computer hardware and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Furniture, equipment and software, gross | 13,863 | 14,254 | |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Furniture, equipment and software, gross | $ 27,605 | $ 17,228 |
GOODWILL AND OTHER IINTANGIBL87
GOODWILL AND OTHER IINTANGIBLE ASSETS - ACTIVITY IN GOODWILL BALANCE (Details) - EPIC Systems, Inc. $ in Thousands | 12 Months Ended |
Jun. 30, 2018USD ($) | |
Goodwill [Roll Forward] | |
Balance at July 1, 2017 | $ 0 |
Goodwill incident to acquisition | 35,719 |
Balance at June 30, 2018 | $ 35,719 |
GOODWILL AND OTHER IINTANGIBL88
GOODWILL AND OTHER IINTANGIBLE ASSETS - SUMMARY OF ACQUIRED INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 0 | |
Accumulated Amortization | 0 | |
Net Carrying Amount | 0 | |
Covenant not to compete | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 0 | |
Accumulated Amortization | 0 | |
Net Carrying Amount | 0 | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 0 | |
Accumulated Amortization | 0 | |
Net Carrying Amount | 0 | |
Developed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 0 | |
Accumulated Amortization | 0 | |
Net Carrying Amount | 0 | |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 0 | |
Accumulated Amortization | 0 | |
Net Carrying Amount | $ 0 | |
EPIC Systems, Inc. | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 32,720 | |
Accumulated Amortization | 651 | |
Net Carrying Amount | 32,069 | |
EPIC Systems, Inc. | Covenant not to compete | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 930 | |
Accumulated Amortization | 58 | |
Net Carrying Amount | 872 | |
EPIC Systems, Inc. | Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 9,820 | |
Accumulated Amortization | 243 | |
Net Carrying Amount | 9,577 | |
EPIC Systems, Inc. | Developed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 21,680 | |
Accumulated Amortization | 326 | |
Net Carrying Amount | 21,354 | |
EPIC Systems, Inc. | Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 290 | |
Accumulated Amortization | 24 | |
Net Carrying Amount | $ 266 |
GOODWILL AND OTHER IINTANGIBL89
GOODWILL AND OTHER IINTANGIBLE ASSETS - WEIGHTED AVERAGE USEFUL LIFE OF ACQUIRED INTANGIBLE ASSETS (Details) - EPIC Systems, Inc. | 12 Months Ended |
Jun. 30, 2018 | |
Covenant not to compete | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Useful Lives (Years) | 4 years |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Useful Lives (Years) | 12 years |
Developed technologies | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Useful Lives (Years) | 5 years |
Trade name | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-Average Useful Lives (Years) | 3 years |
GOODWILL AND OTHER IINTANGIBL90
GOODWILL AND OTHER IINTANGIBLE ASSETS - ESTIMATED FUTURE AMORTIZATION EXPENSE OF ACQUIRED INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
For the fiscal year ending June 30, | ||
Net Carrying Amount | $ 0 | |
EPIC Systems, Inc. | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of expense of intangible assets | $ 651 | |
For the fiscal year ending June 30, | ||
2,019 | 5,270 | |
2,020 | 6,158 | |
2,021 | 5,808 | |
2,022 | 4,698 | |
2,023 | 4,525 | |
Thereafter | 5,610 | |
Net Carrying Amount | $ 32,069 |
DEPOSITS - SUMMARY OF DEPOSIT A
DEPOSITS - SUMMARY OF DEPOSIT ACCOUNTS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | |
Non-interest bearing | |||
Non-interest bearing, Amount | $ 1,015,355 | $ 848,544 | |
Interest bearing: | |||
Demand, Amount | $ 2,519,845 | $ 2,593,491 | |
Demand, Rate | [1] | 1.60% | 0.89% |
Savings, Amount | $ 2,482,430 | $ 2,651,176 | |
Savings, Rate | [1] | 1.31% | 0.81% |
Total demand and savings, Amount | $ 5,002,275 | $ 5,244,667 | |
Total demand and savings, Rate | [1] | 1.46% | 0.85% |
Time deposits: | |||
$250 and under, Amount | $ 1,837,274 | $ 774,627 | |
$250 and under, Rate | [1],[2] | 2.34% | 2.54% |
Greater than $250, Amount | $ 130,446 | $ 31,669 | |
Greater than $250, Rate | [1] | 2.05% | 0.39% |
Total time deposits, Amount | $ 1,967,720 | $ 806,296 | |
Total time deposits, Rate | [1] | 2.32% | 2.46% |
Total interest bearing, Amount | $ 6,969,995 | $ 6,050,963 | |
Total interest bearing, Rate | [1] | 1.70% | 1.06% |
Total deposits | $ 7,985,350 | $ 6,899,507 | |
Total deposits, Rate | [1] | 1.48% | 0.93% |
Time deposits acquired through broker relationships | $ 2,055,900 | $ 1,104,300 | |
Time deposits acquired through broker relationships, $250,000 and under | $ 1,692,800 | $ 611,000 | |
[1] | Based on weighted-average stated interest rates at end of period. | ||
[2] | The total interest-bearing includes brokered deposits of $2,055.9 million and $1,104.3 million as of June 30, 2018 and June 30, 2017 , respectively, of which $1,692.8 million and $611.0 million |
DEPOSITS - SCHEDULED MATURITIES
DEPOSITS - SCHEDULED MATURITIES OF TIME DEPOSITS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Deposits [Abstract] | ||
Within 12 months | $ 1,259,119 | |
13 to 24 months | 97,226 | |
25 to 36 months | 11,118 | |
37 to 48 months | 35,981 | |
49 to 60 months | 84,538 | |
Thereafter | 479,738 | |
Total time deposits, Amount | 1,967,720 | $ 806,296 |
Deposits from principal officers, directors and their affiliates | $ 4,964 | $ 1,220 |
ADVANCES FROM THE FEDERAL HOM93
ADVANCES FROM THE FEDERAL HOME LOAN BANK - NARRATIVE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Federal Home Loan Bank, Advances [Line Items] | |||
Weighted average rate percentage | 2.14% | 1.79% | |
Advances, collateral pledged | $ 4,687,166 | $ 3,989,070 | |
Advances, maximum amount | 2,240,000 | $ 1,317,000 | $ 1,129,000 |
Advances, amount available immediately | $ 1,616,243 | ||
Advances, amount available with additional collateral, term | 10 years | ||
Minimum | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Interest rate percentage | 1.36% | 1.00% | |
Maximum | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Interest rate percentage | 3.32% | 4.32% |
ADVANCES FROM THE FEDERAL HOM94
ADVANCES FROM THE FEDERAL HOME LOAN BANK - SCHEDULED MATURITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | |
Amount | |||
Within one year | [1] | $ 229,500 | $ 265,000 |
After one but within two years | 55,000 | 147,500 | |
After two but within three years | 65,000 | 55,000 | |
After three but within four years | 50,000 | 65,000 | |
After four but within five years | 27,500 | 50,000 | |
After five years | 30,000 | 57,500 | |
Total | $ 457,000 | $ 640,000 | |
Weighted-Average Rate | |||
Within one year | 2.02% | 1.28% | |
After one but within two years | 1.79% | 1.98% | |
After two but within three years | 2.30% | 1.79% | |
After three but within four years | 2.47% | 2.30% | |
After four but within five years | 2.08% | 2.47% | |
After five years | 2.82% | 2.47% | |
Total | 2.14% | 1.79% | |
Term advances | $ 147,500 | ||
[1] | Within one year category includes $147,500 |
SUBORDINATED NOTES AND DEBENT95
SUBORDINATED NOTES AND DEBENTURES (Details) | Dec. 13, 2004USD ($) | Mar. 31, 2016USD ($) | Jun. 30, 2018USD ($)bank | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) |
Debt Instrument [Line Items] | |||||
Proceeds from issuance of subordinated notes | $ 0 | $ 0 | $ 51,000,000 | ||
Residential real estate and commercial and industrial loans pledged as collateral | 1,230,054,000 | ||||
Mortgage-backed securities pledged as collateral | $ 1,543,751,000 | ||||
Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Federal funds lines of credit, number of banks | bank | 2 | ||||
Maximum borrowing capacity | $ 35,000,000 | ||||
Credit line amount outstanding | 0 | 0 | |||
Federal Reserve Bank Advances | |||||
Debt Instrument [Line Items] | |||||
Short-term borrowings outstanding | 0 | 0 | |||
Maximum borrowing capacity | $ 917,017,000 | $ 1,251,526,000 | |||
Subordinated Notes | |||||
Debt Instrument [Line Items] | |||||
Debt issued principal amount | $ 51,000,000 | ||||
Effective rate (as percent) | 6.25% | ||||
Proceeds from issuance of subordinated notes | $ 51,000,000 | ||||
Debt issuance costs and discount (as percent) | 3.15% | ||||
Junior Subordinated Debentures | |||||
Debt Instrument [Line Items] | |||||
Effective rate (as percent) | 4.73% | ||||
Trust preferred securities | $ 5,000,000 | ||||
Subordinated notes and debentures | $ 5,155,000 | ||||
Basis spread on variable rate (as percent) | 2.40% | ||||
Junior Subordinated Debentures | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Description of variable rate basis | three-month LIBOR |
INCOME TAXES - COMPONENTS OF IN
INCOME TAXES - COMPONENTS OF INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Current: | |||||||||||
Federal | $ 50,170 | $ 74,053 | $ 67,773 | ||||||||
State | 20,084 | 26,120 | 24,478 | ||||||||
Current income taxes | 70,254 | 100,173 | 92,251 | ||||||||
Deferred: | |||||||||||
Federal | 15,509 | (1,886) | (5,363) | ||||||||
State | 1,525 | (334) | (1,284) | ||||||||
Deferred income taxes | 17,034 | (2,220) | (6,647) | ||||||||
Total | $ 13,335 | $ 26,621 | $ 24,845 | $ 22,487 | $ 23,332 | $ 30,423 | $ 23,361 | $ 20,837 | $ 87,288 | $ 97,953 | $ 85,604 |
INCOME TAXES - EFFECTIVE INCOME
INCOME TAXES - EFFECTIVE INCOME TAX RATE RECONCILIATION (Details) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Statutory federal tax rate | 28.10% | 28.10% | 35.00% | 35.00% |
Increase (decrease) resulting from: | ||||
State taxes—net of federal tax benefit | 7.85% | 7.23% | 7.31% | |
Tax reform deferred tax remeasurement | 3.83% | 0.00% | 0.00% | |
Cash surrender value | (0.02%) | (0.03%) | (0.03%) | |
Tax credits | (2.38%) | (0.19%) | (0.18%) | |
Non-taxable income | (0.19%) | (0.28%) | (0.36%) | |
Excess benefit RSU vesting | (1.00%) | 0.00% | 0.00% | |
Other | 0.23% | 0.37% | 0.04% | |
Effective tax rate | 36.42% | 42.10% | 41.78% |
INCOME TAXES - NET DEFERRED TAX
INCOME TAXES - NET DEFERRED TAX ASSET (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Deferred tax assets: | ||
Allowance for loan and lease losses and charge-offs | $ 15,829 | $ 18,845 |
State taxes | 2,164 | 6,893 |
Stock-based compensation expense | 3,432 | 2,703 |
Unrealized net (gains) losses on securities | 225 | (385) |
Deferred bonus / vacation | 761 | 959 |
Securities impaired | 0 | 8,395 |
Deferred loan fees | 1,372 | 2,377 |
Total deferred tax assets | 23,783 | 39,787 |
Deferred tax liabilities: | ||
FHLB stock dividend | (833) | (1,181) |
Other assets—prepaids | (1,513) | (1,363) |
Depreciation and amortization | (3,480) | (2,902) |
Total deferred tax liabilities | (5,826) | (5,446) |
Net deferred tax asset | $ 17,957 | $ 34,341 |
INCOME TAXES - UNRECOGNIZED TAX
INCOME TAXES - UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance—beginning of period | $ 865 | $ 880 | $ 779 |
Additions—current year tax positions | 142 | 180 | 181 |
Additions—prior year tax positions | 149 | 17 | 0 |
Reductions—prior year tax positions | (21) | (212) | (80) |
Total liability for unrecognized tax positions—end of period | $ 1,135 | $ 865 | $ 880 |
INCOME TAXES - NARRATIVE (Detai
INCOME TAXES - NARRATIVE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||||
Statutory federal tax rate | 28.10% | 28.10% | 35.00% | 35.00% | |
Provisional adjustment to deferred tax assets as result of Tax Act | $ 9,189,000 | ||||
Provisional amounts recorded for other provisions as result of Tax Act, excluding effects of deferred tax assets | $ 0 | ||||
Reduction in effective tax rate for tax credits received | 2.38% | 0.19% | 0.18% | ||
Income tax benefits related to excess tax benefits from stock compensation | $ 2,400,000 |
STOCK-BASED COMPENSATION - NARR
STOCK-BASED COMPENSATION - NARRATIVE (Details) $ in Thousands | Jul. 01, 2017USD ($) | Nov. 17, 2015 | Jul. 01, 2007 | Jun. 30, 2018USD ($)stock_incentive_planshares | Jun. 30, 2017USD ($)shares | Jun. 30, 2016USD ($)shares | Nov. 30, 2015shares | Nov. 06, 2015shares | Oct. 31, 2015shares | Nov. 30, 2007 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 | 150,000,000 | 50,000,000 | ||||||||
Common stock split, conversion ratio | 4 | |||||||||||
Common stock, dividend issued, shares, stock split (in shares) | 3 | |||||||||||
Aggregate intrinsic value of options exercised or converted during the period | $ | $ 0 | $ 0 | $ 2,656 | |||||||||
Stock-based compensation expense | $ | $ 20,399 | $ 14,535 | $ 11,326 | |||||||||
Restricted Stock Units (RSUs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of restricted stock granted (in shares) | 747,022 | 843,611 | [1] | 615,834 | [1] | |||||||
Number of restricted stock cancelled (in shares) | 123,858 | 92,251 | [1] | 154,668 | [1] | |||||||
Unrecognized compensation expense related to non-vested awards | $ | $ 40,588 | |||||||||||
Stock-based compensation expense | $ | 20,399 | $ 14,535 | $ 11,326 | |||||||||
Tax benefit from stock-based compensation expense | $ | 7,429 | 6,119 | 4,509 | |||||||||
Total fair value of shares vested in the period | $ | $ 20,866 | $ 12,941 | $ 13,256 | |||||||||
Restricted Stock Units (RSUs) | Chief Executive Officer | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period for options granted | 4 years | 4 years | 4 years | |||||||||
Number of restricted stock granted (in shares) | 160,000 | 288,000 | 288,000 | |||||||||
Estimated fair value of non-vested awards | $ | $ 20,500 | |||||||||||
Number of vesting tranches during requisite service period | 5 | |||||||||||
Requisite service period of equity-based award agreement based on service and market conditions | 9 years | |||||||||||
Period for recognition of unrecognized compensation expense related to non-vested awards | 8 years | |||||||||||
Unrecognized compensation expense related to non-vested awards | $ | $ 17,200 | |||||||||||
Restricted Stock Units (RSUs) | Chief Executive Officer | Year One | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Restricted shares grants, annual vesting percentage | 25.00% | 25.00% | 25.00% | |||||||||
Restricted Stock Units (RSUs) | Chief Executive Officer | Year two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Restricted shares grants, annual vesting percentage | 25.00% | 25.00% | 25.00% | |||||||||
Restricted Stock Units (RSUs) | Chief Executive Officer | Year Three | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Restricted shares grants, annual vesting percentage | 25.00% | 25.00% | 25.00% | |||||||||
Restricted Stock Units (RSUs) | Chief Executive Officer | Year Four | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Restricted shares grants, annual vesting percentage | 25.00% | 25.00% | 25.00% | |||||||||
Restricted Stock Units (RSUs) | Employees and Directors | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period for options granted | 3 years | 3 years | 3 years | |||||||||
Number of restricted stock granted (in shares) | 587,022 | 555,611 | 615,834 | |||||||||
Number of restricted stocks vested (in shares) | 629,755 | 570,764 | 596,871 | |||||||||
Number of restricted stock cancelled (in shares) | 123,858 | 92,251 | 94,325 | |||||||||
Restricted Stock Units (RSUs) | Employees and Directors | Year One | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Restricted shares grants, annual vesting percentage | 33.30% | 33.30% | 33.30% | |||||||||
Restricted Stock Units (RSUs) | Employees and Directors | Year two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Restricted shares grants, annual vesting percentage | 33.30% | 33.30% | 33.30% | |||||||||
Restricted Stock Units (RSUs) | Employees and Directors | Year Three | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Restricted shares grants, annual vesting percentage | 33.30% | 33.30% | 33.30% | |||||||||
Plans | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of stock incentive plans | stock_incentive_plan | 2 | |||||||||||
Contractual term for options granted under the 1999 Plan | 10 years | |||||||||||
Plans | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period for options granted | 3 years | |||||||||||
Plans | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period for options granted | 5 years | |||||||||||
2004 Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Annual percentage increase to shares available for grant | 1.50% | |||||||||||
Number of fiscal years stock increases | 4 years | |||||||||||
Number of shares available for issuance (in shares) | 0 | |||||||||||
2004 Plan | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percentage of outstanding shares always available for grants under the 1999 Plan | 14.80% | |||||||||||
2014 Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares available for issuance (in shares) | 3,680,000 | |||||||||||
[1] | Amounts have been retroactively restated for the fiscal year ended June 30, 2015 presented to reflect the four |
STOCK-BASED COMPENSATION - STOC
STOCK-BASED COMPENSATION - STOCK OPTION ACTIVITY (Details) | Nov. 17, 2015 | Jun. 30, 2018$ / sharesshares | Jun. 30, 2017$ / sharesshares | Jun. 30, 2016$ / sharesshares | ||
Number of Shares | ||||||
Outstanding, beginning (in shares) | shares | [1] | 0 | 0 | 82,400 | ||
Granted (in shares) | shares | [1] | 0 | 0 | 0 | ||
Exercised (in shares) | shares | [1] | 0 | 0 | (82,400) | [2] | |
Canceled (in shares) | shares | [1] | 0 | 0 | 0 | ||
Outstanding, ending (in shares) | shares | [1] | 0 | 0 | 0 | ||
Weighted-Average Exercise Price Per Share | ||||||
Outstanding, beginning (in dollars per share) | $ / shares | [1] | $ 0 | $ 0 | $ 1.84 | ||
Granted (in dollars per share) | $ / shares | [1] | 0 | 0 | |||
Exercised (in dollars per share) | $ / shares | [1] | 0 | 1.84 | |||
Canceled (in dollars per share) | $ / shares | [1] | 0 | 0 | |||
Outstanding, ending (in dollars per share) | $ / shares | [1] | $ 0 | $ 0 | $ 0 | ||
Options exercisable (in shares) | shares | [1] | 0 | 0 | 0 | ||
Options exercisable (in dollars per share) | $ / shares | [1] | $ 0 | $ 0 | $ 0 | ||
Common stock split, conversion ratio | 4 | |||||
[1] | Amounts have been retroactively restated for the fiscal year ended June 30, 2015 presented to reflect the four | |||||
[2] | Common stock amounts have been retroactively restated for the period July 1, 2015 through November 16, 2015 to reflect the four -for-one forward split of the Company’s common stock effected in the form of a stock dividend that was distributed on November 17, 2015. The par value of common stock remains unchanged at $0.01 |
STOCK-BASED COMPENSATION - UNRE
STOCK-BASED COMPENSATION - UNRECOGNIZED COMPENSATION EXPENSE (Details) - Restricted Stock Units (RSUs) $ in Thousands | Jun. 30, 2018USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
2,019 | $ 18,592 |
2,020 | 11,871 |
2,021 | 5,351 |
2,022 | 2,226 |
2,023 | 1,382 |
Thereafter | 1,166 |
Total | $ 40,588 |
STOCK-BASED COMPENSATION - STAT
STOCK-BASED COMPENSATION - STATUS OF CHANGE IN RESTRICTED STOCK GRANTS (Details) | Nov. 17, 2015 | Jun. 30, 2018$ / sharesshares | Jun. 30, 2017$ / sharesshares | Jun. 30, 2016$ / sharesshares | |||
Weighted-Average Grant-Date Fair Value | |||||||
Common stock split, conversion ratio | 4 | ||||||
Restricted Stock Units (RSUs) | |||||||
Number of Units | |||||||
Non-vested, beginning balance (in shares) | shares | [1] | 1,240,322 | 1,059,726 | 1,135,088 | |||
Granted (in shares) | shares | 747,022 | 843,611 | [1] | 615,834 | [1] | ||
Vested (in shares) | shares | (629,755) | (570,764) | [1] | (536,528) | [1] | ||
Canceled (in shares) | shares | (123,858) | (92,251) | [1] | (154,668) | [1] | ||
Non-vested, ending balance (in shares) | shares | 1,233,731 | 1,240,322 | [1] | 1,059,726 | [1] | ||
Weighted-Average Grant-Date Fair Value | |||||||
Non-vested, beginning balance (in dollars per share) | $ / shares | [1] | $ 22.52 | $ 22.53 | $ 17.01 | |||
Granted (in dollars per share) | $ / shares | 26.53 | 21.13 | [1] | 26.60 | [1] | ||
Vested (in dollars per share) | $ / shares | 22.55 | 20.86 | [1] | 16.14 | [1] | ||
Canceled (in dollars per share) | $ / shares | 23.38 | 20.26 | [1] | 18.70 | [1] | ||
Non-vested, ending balance (in dollars per share) | $ / shares | $ 24.84 | $ 22.52 | [1] | $ 22.53 | [1] | ||
[1] | Amounts have been retroactively restated for the fiscal year ended June 30, 2015 presented to reflect the four |
STOCKHOLDERS' EQUITY - CHANGES
STOCKHOLDERS' EQUITY - CHANGES IN COMMON STOCK (Details) | Nov. 17, 2015$ / shares | Jun. 30, 2018$ / sharesshares | Jun. 30, 2017$ / sharesshares | Jun. 30, 2016shares | [1] | ||
Common Stock, Number of Shares [Roll Forward] | |||||||
Common Stock, Beginning Balance, Issued (in shares) | 65,115,932 | 64,513,494 | [1] | 63,145,364 | |||
Common stock, Beginning Balance (in shares) | [2] | 63,536,244 | 63,219,392 | [1] | 62,075,004 | ||
Common stock issued through option exercise or exchange, issued (in shares) | [3] | 0 | 0 | 82,400 | |||
Common stock issued through option exercise or exchange, outstanding (in shares) | 0 | 0 | 82,400 | [2] | |||
Common stock issued through public offering, issued and outstanding (in shares) | 0 | 0 | 723,808 | [2] | |||
Repurchase of treasury stock, issued (in shares) | 0 | 0 | 0 | ||||
Repurchase of treasury stock, outstanding (in shares) | (1,233,491) | 0 | 0 | ||||
Common stock issued through grants of restricted stock units, issued (in shares) | 680,128 | 602,438 | 561,922 | ||||
Common stock issued through grants of restricted stock units, outstanding (in shares) | 385,311 | 316,852 | 338,180 | ||||
Common Stock, Ending Balance, Issued (in shares) | 65,796,060 | 65,115,932 | 64,513,494 | ||||
Common stock, Ending Balance (in shares) | [2] | 62,688,064 | 63,536,244 | 63,219,392 | |||
Common stock split, conversion ratio | 4 | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||
[1] | Common stock amounts have been retroactively restated for the period July 1, 2015 through November 16, 2015 to reflect the four -for-one forward split of the Company’s common stock effected in the form of a stock dividend that was distributed on November 17, 2015. The par value of common stock remains unchanged at $0.01 | ||||||
[2] | Common stock amounts have been retroactively restated for the fiscal year ended June 30, 2015 presented to reflect the four -for-one forward split of the Company’s common stock effected in the form of a stock dividend that was distributed on November 17, 2015. The par value of common stock remains unchanged at $0.01 | ||||||
[3] | Amounts have been retroactively restated for the fiscal year ended June 30, 2015 presented to reflect the four |
STOCKHOLDERS' EQUITY - NARRATIV
STOCKHOLDERS' EQUITY - NARRATIVE (Details) - USD ($) | Feb. 23, 2015 | Oct. 28, 2003 | Oct. 31, 2015 | Sep. 30, 2015 | Aug. 31, 2015 | Jul. 31, 2015 | Jun. 30, 2015 | May 31, 2015 | Apr. 30, 2015 | Mar. 31, 2015 | Feb. 28, 2015 | Dec. 31, 2015 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2004 | Jan. 01, 2009 | Mar. 17, 2016 | |
Class of Stock [Line Items] | |||||||||||||||||||
Proceeds from issuance of common stock | $ 0 | $ 0 | $ 21,120,000 | ||||||||||||||||
Share repurchased amount | $ 35,183,000 | ||||||||||||||||||
Purchase of treasury stock, outstanding (in shares) | 1,233,491 | 0 | 0 | [1] | |||||||||||||||
Preferred stock, par or stated value (in dollars per share) | $ 0.01 | $ 0.01 | |||||||||||||||||
Cash dividends on preferred stock (in dollars per share) | $ 309,000 | $ 309,000 | $ 309,000 | ||||||||||||||||
Common Stock | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Stock repurchased program, authorized amount | $ 100,000,000 | ||||||||||||||||||
Share repurchased amount | $ 35,200,000 | ||||||||||||||||||
Purchase of treasury stock, outstanding (in shares) | 1,233,491 | ||||||||||||||||||
Average price of shares repurchased (in dollars per share) | $ 28.49 | ||||||||||||||||||
Remaining authorized repurchase amount | $ 64,800,000 | ||||||||||||||||||
Series A Preferred Stock | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Preferred Stock, dividend rate percent | 6.00% | ||||||||||||||||||
Preferred Stock, remaining number of shares to be redeemed (in shares) | 515 | ||||||||||||||||||
Preferred stock, par or stated value (in dollars per share) | $ 10,000 | $ 10,000 | $ 10,000 | $ 10,000 | |||||||||||||||
Value of new issues of stock | $ 6,750,000 | ||||||||||||||||||
Stock issued during period, shares, new issues (in shares) | 675 | ||||||||||||||||||
Payments of stock issuance costs | $ 113,000 | ||||||||||||||||||
Options surrendered in exchange (in shares) | 160 | ||||||||||||||||||
Cash dividends on preferred stock (in dollars per share) | $ 309,000 | $ 309,000 | $ 309,000 | ||||||||||||||||
ATM Offering | Common Stock | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Aggregate offering price | $ 50,000,000 | ||||||||||||||||||
Aggregate compensation payable to distribution agents as a percentage of gross sales price | 2.50% | ||||||||||||||||||
Maximum amount of expense reimbursable to distribution agents | $ 75,000 | ||||||||||||||||||
Maximum amount to reimbursable expenses of distribution agents, thereafter | $ 25,000 | ||||||||||||||||||
Proceeds from issuance of common stock | $ 5,181,000 | $ 7,252,000 | $ 1,279,000 | $ 7,471,000 | $ 6,057,000 | $ 2,837,000 | $ 5,971,000 | $ 11,818,000 | $ 884,000 | $ 50,000,000 | |||||||||
[1] | Common stock amounts have been retroactively restated for the period July 1, 2015 through November 16, 2015 to reflect the four -for-one forward split of the Company’s common stock effected in the form of a stock dividend that was distributed on November 17, 2015. The par value of common stock remains unchanged at $0.01 |
STOCKHOLDERS' EQUITY - ATM OFFE
STOCKHOLDERS' EQUITY - ATM OFFERING (Details) | Nov. 17, 2015 | Oct. 31, 2015USD ($)$ / sharesshares | Sep. 30, 2015USD ($)$ / sharesshares | Aug. 31, 2015USD ($)$ / sharesshares | Jul. 31, 2015USD ($)$ / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares | May 31, 2015USD ($)$ / sharesshares | Apr. 30, 2015USD ($)$ / sharesshares | Mar. 31, 2015USD ($)$ / sharesshares | Feb. 28, 2015USD ($)$ / sharesshares | Dec. 31, 2015USD ($) | Jun. 30, 2018USD ($)shares | Jun. 30, 2017USD ($)shares | Jun. 30, 2016USD ($)shares | |||
Class of Stock [Line Items] | |||||||||||||||||
Number of shares sold (in shares) | shares | 63,145,364 | [1] | 65,796,060 | 65,115,932 | 64,513,494 | [1] | |||||||||||
Net Proceeds | $ 0 | $ 0 | $ 21,120,000 | ||||||||||||||
Common stock split, conversion ratio | 4 | ||||||||||||||||
ATM Offering | Common Stock | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Weighted Average Per Share Price (in dollars per share) | $ / shares | [2] | $ 32.43 | $ 30.99 | $ 32.81 | $ 27.37 | $ 24.69 | $ 23.69 | $ 23.10 | $ 23.38 | $ 22.68 | |||||||
Number of shares sold (in shares) | shares | [2] | 163,808,000 | 240,000,000 | 40,000,000 | 280,000,000 | 251,592,000 | 122,800,000 | 265,088,000 | 518,528,000 | 40,000,000 | |||||||
Net Proceeds | $ 5,181,000 | $ 7,252,000 | $ 1,279,000 | $ 7,471,000 | $ 6,057,000 | $ 2,837,000 | $ 5,971,000 | $ 11,818,000 | $ 884,000 | $ 50,000,000 | |||||||
Compensation to Distribution Agent | $ 132,000 | $ 186,000 | $ 33,000 | $ 192,000 | $ 155,000 | $ 73,000 | $ 153,000 | $ 303,000 | $ 23,000 | ||||||||
[1] | Common stock amounts have been retroactively restated for the period July 1, 2015 through November 16, 2015 to reflect the four -for-one forward split of the Company’s common stock effected in the form of a stock dividend that was distributed on November 17, 2015. The par value of common stock remains unchanged at $0.01 | ||||||||||||||||
[2] | Amounts have been retroactively restated to reflect the four |
EARNINGS PER COMMON SHARE - CAL
EARNINGS PER COMMON SHARE - CALCULATION OF BASIC AND DILUTED EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Common Share | |||||||||||
Net income | $ 37,117 | $ 51,253 | $ 31,658 | $ 32,383 | $ 32,549 | $ 40,994 | $ 32,300 | $ 28,897 | $ 152,411 | $ 134,740 | $ 119,291 |
Preferred stock dividends | (309) | (309) | (309) | ||||||||
Net income attributable to common shareholders | $ 37,040 | $ 51,176 | $ 31,580 | $ 32,306 | $ 32,472 | $ 40,917 | $ 32,222 | $ 28,820 | $ 152,102 | $ 134,431 | $ 118,982 |
Average common shares issued and outstanding (in shares) | 63,058,854 | 63,358,886 | 62,909,411 | ||||||||
Average unvested RSUs (as revised for 2017 and 2016) (in shares) | 77,378 | 297,656 | 687,848 | ||||||||
Total qualifying shares (as revised for 2017 and 2016) (in shares) | 63,136,232 | 63,656,542 | 63,597,259 | ||||||||
Basic earnings per common share (as revised for 2017 and 2016) (in dollars per share) | $ 0.59 | $ 0.82 | $ 0.50 | $ 0.51 | $ 0.51 | $ 0.64 | $ 0.51 | $ 0.45 | $ 2.41 | $ 2.11 | $ 1.87 |
Diluted Earnings Per Common Share | |||||||||||
Dilutive net income attributable to common shareholders | $ 152,102 | $ 134,431 | $ 118,982 | ||||||||
Average common shares issued and outstanding (as revised for 2017 and 2016) (in shares) | 63,136,232 | 63,656,542 | 63,597,259 | ||||||||
Total dilutive common shares issued and outstanding (as revised for 2017 and 2016) (in shares) | 64,147,220 | 63,915,100 | 63,672,280 | ||||||||
Diluted earnings per common share (as revised for 2017 and 2016) (in dollars per share) | $ 0.58 | $ 0.80 | $ 0.49 | $ 0.50 | $ 0.51 | $ 0.64 | $ 0.50 | $ 0.45 | $ 2.37 | $ 2.10 | $ 1.87 |
Stock options | |||||||||||
Diluted Earnings Per Common Share | |||||||||||
Dilutive effect of stock options and average unvested RSUs (as revised for 2017 and 2016) (in shares) | 0 | 0 | 5,845 | ||||||||
Restricted Stock Units (RSUs) | |||||||||||
Diluted Earnings Per Common Share | |||||||||||
Dilutive effect of stock options and average unvested RSUs (as revised for 2017 and 2016) (in shares) | 1,010,988 | 258,558 | 69,176 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - NARRATIVE (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2015claim | Jun. 30, 2018USD ($)claim | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Aug. 10, 2017claim | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Rent expense | $ | $ 5,429 | $ 5,108 | $ 3,901 | ||
Number of derivative actions filed | 2 | ||||
Number of derivative actions pending | 4 | 6 | |||
Number of consolidated cases | 2 |
COMMITMENTS AND CONTINGENCIE110
COMMITMENTS AND CONTINGENCIES - FUTURE MINIMUM LEASE PAYMENTS (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,019 | $ 4,573 |
2,020 | 6,652 |
2,021 | 6,266 |
2,022 | 7,415 |
2,023 | 7,667 |
Thereafter | 54,551 |
Total | $ 87,124 |
OFF-BALANCE-SHEET ACTIVITIES (D
OFF-BALANCE-SHEET ACTIVITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet, fixed rate commitments to originate weighted-average rate | 4.68% | 3.81% |
Off-balance sheet risk, ratio of commitments to originate loans to commitments to sell | 61.90% | 75.40% |
Loan purchase and origination commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet, loan purchase commitment | $ 785,980 | $ 495,141 |
Loan purchase and origination commitments | Fixed Interest Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet, loan purchase commitment | 86,453 | 78,113 |
Loan purchase and origination commitments | Variable Interest Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet, loan purchase commitment | 720,582 | 417,028 |
Loan Origination Commitments | Sales commitment | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet, loan origination commitment | 87,584 | 66,045 |
Loan Origination Commitments | Fixed Interest Rate | Sales commitment | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet, loan origination commitment | 86,453 | 59,786 |
Loan Origination Commitments | Variable Interest Rate | Sales commitment | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet, loan origination commitment | $ 1,131 | $ 6,259 |
MINIMUM REGULATORY CAPITAL R112
MINIMUM REGULATORY CAPITAL REQUIREMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | |
Regulatory Capital: | ||||||
Tier 1, Amount | $ 893,338 | $ 833,759 | ||||
Common equity tier 1, Amount | 888,275 | 828,696 | ||||
Total capital (to risk-weighted assets), Amount | 993,650 | 925,720 | ||||
Assets: | ||||||
Average adjusted, Amount | 9,450,894 | 8,380,909 | ||||
Total risk-weighted, Amount | $ 6,694,963 | $ 5,651,522 | ||||
Regulatory Capital Ratios: | ||||||
Tier 1 leverage (core) capital to adjusted average assets, Ratio | 9.45% | 9.95% | ||||
Tier 1 leverage (core) capital to adjusted average assets, Well Capitalized Ratio | 5.00% | |||||
Tier 1 leverage (core) capital to adjusted average assets, Minimum Capital Ratio | 4.00% | |||||
Common equity tier 1 capital (to risk-weighted assets), Ratio | 13.27% | 14.66% | ||||
Common equity tier 1 capital (to risk-weighted assets), Well Capitalized Ratio | 6.50% | |||||
Common equity tier 1 capital (to risk-weighted assets), Minimum Capital Ratio | 4.50% | |||||
Tier 1 capital (to risk-weighted assets), Ratio | 13.34% | 14.75% | ||||
Tier 1 capital (to risk-weighted assets), Well Capitalized Ratio | 8.00% | |||||
Tier 1 capital (to risk-weighted assets), Minimum Capital Ratio | 6.00% | |||||
Total capital (to risk-weighted assets), Ratio | 14.84% | 16.38% | ||||
Total capital (to risk-weighted assets), Well Capitalized Ratio | 10.00% | |||||
Total capital (to risk-weighted assets), Minimum Capital Ratio | 8.00% | |||||
Common equity tier 1 capital (to risk-weighted assets) annual increase percentage | 0.625% | 0.625% | ||||
Tier 1 capital (to risk-weighted assets) annual increase percentage | 0.625% | 0.625% | ||||
Total capital (to risk-weighted assets) annual increase percentage | 0.625% | 0.625% | ||||
Scenario, Forecast | ||||||
Regulatory Capital Ratios: | ||||||
Common equity tier 1 capital (to risk-weighted assets), Minimum Capital Ratio | 7.00% | |||||
Tier 1 capital (to risk-weighted assets), Minimum Capital Ratio | 8.50% | |||||
Total capital (to risk-weighted assets), Minimum Capital Ratio | 10.50% | |||||
Common equity tier 1 capital (to risk-weighted assets) annual increase percentage | 0.625% | |||||
Tier 1 capital (to risk-weighted assets) annual increase percentage | 0.625% | |||||
Total capital (to risk-weighted assets) annual increase percentage | 0.625% | |||||
BofI Federal Bank | ||||||
Regulatory Capital: | ||||||
Tier 1, Amount | $ 837,985 | $ 804,317 | ||||
Common equity tier 1, Amount | 837,985 | 804,317 | ||||
Total capital (to risk-weighted assets), Amount | 887,297 | 845,278 | ||||
Assets: | ||||||
Average adjusted, Amount | 9,509,891 | 8,374,509 | ||||
Total risk-weighted, Amount | $ 6,686,634 | $ 5,645,112 | ||||
Regulatory Capital Ratios: | ||||||
Tier 1 leverage (core) capital to adjusted average assets, Ratio | 8.88% | 9.60% | ||||
Common equity tier 1 capital (to risk-weighted assets), Ratio | 12.53% | 14.25% | ||||
Tier 1 capital (to risk-weighted assets), Ratio | 12.53% | 14.25% | ||||
Total capital (to risk-weighted assets), Ratio | 13.27% | 14.97% | ||||
BofI Federal Bank | H and R Block Bank Deposits | ||||||
Regulatory Capital Ratios: | ||||||
Tier 1 capital (to risk-weighted assets), Well Capitalized Ratio | 8.50% | 8.00% | 8.50% | 8.50% |
EMPLOYEE BENEFIT PLAN (Details)
EMPLOYEE BENEFIT PLAN (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Compensation Related Costs [Abstract] | |||
401(k) plan, maximum employee annual contribution | 100.00% | ||
401(k) plan, employer contribution match percentage | 50.00% | ||
401(k) plan, employer contribution, employee's deferral compensation percentage | 8.00% | ||
401(k) plan expense | $ 1,501 | $ 1,288 | $ 801 |
PARENT-ONLY CONDENSED FINANC114
PARENT-ONLY CONDENSED FINANCIAL INFORMATION - CONDENSED BALANCE SHEETS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 |
ASSETS | ||||
Cash and cash equivalents | $ 622,850 | $ 643,541 | $ 486,727 | $ 222,874 |
Loans | 8,432,289 | 7,374,493 | ||
Other assets | 88,418 | 35,667 | ||
TOTAL ASSETS | 9,539,504 | 8,501,680 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Accrued interest payable | 1,753 | 1,284 | ||
Accounts payable and accrued liabilities and other liabilities | 80,336 | 52,179 | ||
Total liabilities | 8,578,991 | 7,667,433 | ||
Stockholders’ equity | 960,513 | 834,247 | 683,590 | 533,526 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 9,539,504 | 8,501,680 | ||
Parent | ||||
ASSETS | ||||
Cash and cash equivalents | 108,085 | 81,356 | $ 77,383 | $ 22,729 |
Loans | 20 | 29 | ||
Investment securities | 0 | 13 | ||
Other assets | 10,238 | 5,250 | ||
Investment in subsidiary | 905,159 | 804,803 | ||
TOTAL ASSETS | 1,023,502 | 891,451 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Subordinated notes and debentures | 54,521 | 54,313 | ||
Accrued interest payable | 389 | 339 | ||
Accounts payable and accrued liabilities and other liabilities | 8,079 | 2,552 | ||
Total liabilities | 62,989 | 57,204 | ||
Stockholders’ equity | 960,513 | 834,247 | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 1,023,502 | $ 891,451 |
PARENT-ONLY CONDENSED FINANC115
PARENT-ONLY CONDENSED FINANCIAL INFORMATION - STATEMENTS OF INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Interest expense | $ 31,850 | $ 28,197 | $ 23,572 | $ 22,961 | $ 20,016 | $ 18,403 | $ 17,940 | $ 17,700 | $ 106,580 | $ 74,059 | $ 56,696 |
Net interest income | 87,048 | 116,683 | 84,213 | 80,550 | 78,527 | 88,559 | 76,361 | 69,780 | 368,494 | 313,227 | 261,011 |
Provision for loan and lease losses | 3,900 | 16,900 | 4,000 | 1,000 | 200 | 4,862 | 4,100 | 1,900 | 25,800 | 11,061 | 9,700 |
Net interest income, after provision for loan and lease losses | 83,148 | 99,783 | 80,213 | 79,550 | 78,327 | 83,697 | 72,261 | 67,880 | 342,694 | 302,166 | 251,311 |
Non-interest income (loss) | 16,977 | 23,525 | 17,099 | 13,340 | 13,533 | 23,168 | 16,700 | 14,732 | 70,941 | 68,132 | 66,340 |
NET INCOME | $ 37,117 | $ 51,253 | $ 31,658 | $ 32,383 | $ 32,549 | $ 40,994 | $ 32,300 | $ 28,897 | 152,411 | 134,740 | 119,291 |
Comprehensive income | 151,311 | 142,531 | 121,386 | ||||||||
Parent | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Interest income | 479 | 621 | 136 | ||||||||
Interest expense | 3,648 | 3,613 | 1,275 | ||||||||
Net interest income | (3,169) | (2,992) | (1,139) | ||||||||
Provision for loan and lease losses | 0 | 0 | 0 | ||||||||
Net interest income, after provision for loan and lease losses | (3,169) | (2,992) | (1,139) | ||||||||
Non-interest income (loss) | 153 | 0 | 339 | ||||||||
Non-interest expense and tax benefit | 11,825 | 8,561 | 7,345 | ||||||||
Income (loss) before dividends from subsidiary and equity in undistributed income of subsidiary | (14,841) | (11,553) | (8,145) | ||||||||
Dividends from subsidiary | 69,800 | 6,400 | 2,900 | ||||||||
Equity in undistributed earnings of subsidiary | 97,452 | 139,893 | 124,536 | ||||||||
NET INCOME | 152,411 | 134,740 | 119,291 | ||||||||
Comprehensive income | $ 151,311 | $ 142,531 | $ 121,386 |
PARENT-ONLY CONDENSED FINANC116
PARENT-ONLY CONDENSED FINANCIAL INFORMATION - STATEMENT OF CASH FLOWS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
NET INCOME | $ 37,117 | $ 51,253 | $ 31,658 | $ 32,383 | $ 32,549 | $ 40,994 | $ 32,300 | $ 28,897 | $ 152,411 | $ 134,740 | $ 119,291 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Accretion of discounts on securities | (624) | (2,766) | (5,276) | ||||||||
Amortization of borrowing costs | 208 | 208 | 72 | ||||||||
Impairment charge on securities | 156 | 1,964 | 565 | ||||||||
Accretion of discounts on loans | (29,381) | (4,859) | 959 | ||||||||
Net gain on investment securities | 18 | (3,920) | (1,427) | ||||||||
Gain on sales of loans held for sale | (19,489) | (18,771) | (26,616) | ||||||||
Stock-based compensation expense | 20,399 | 14,535 | 11,326 | ||||||||
Decrease (increase) in other assets | (40,988) | 807 | (9,539) | ||||||||
Net cash provided by (used in) operating activities | 167,915 | 198,498 | 166,903 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Proceeds from principal repayments on loans | 4,818,558 | 3,427,818 | 2,253,017 | ||||||||
Net cash used in investing activities | (1,026,005) | (788,731) | (1,537,536) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from exercise of common stock options | 0 | 0 | 151 | ||||||||
Proceeds from issuance of common stock | 0 | 0 | 21,120 | ||||||||
Tax effect from exercise of common stock options and vesting of restricted stock units | 0 | 432 | 2,531 | ||||||||
Tax payments related to settlement of restricted stock units | (9,952) | (6,532) | (6,141) | ||||||||
Repurchase of treasury stock | (35,183) | 0 | 0 | ||||||||
Proceeds from issuance of subordinated notes | 0 | 0 | 51,000 | ||||||||
Cash dividends on preferred stock | (309) | (309) | (309) | ||||||||
Net cash provided by (used in) financing activities | 837,399 | 747,047 | 1,634,486 | ||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (20,691) | 156,814 | 263,853 | ||||||||
CASH AND CASH EQUIVALENTS—Beginning of year | 643,541 | 486,727 | 643,541 | 486,727 | 222,874 | ||||||
CASH AND CASH EQUIVALENTS—End of year | 622,850 | 643,541 | 622,850 | 643,541 | 486,727 | ||||||
Parent | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
NET INCOME | 152,411 | 134,740 | 119,291 | ||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Accretion of discounts on securities | (2) | 0 | (50) | ||||||||
Amortization of borrowing costs | 208 | 208 | 72 | ||||||||
Impairment charge on securities | 0 | (1) | 0 | ||||||||
Accretion of discounts on loans | 0 | 0 | (6) | ||||||||
Net gain on investment securities | (153) | 0 | 0 | ||||||||
Gain on sales of loans held for sale | 0 | 0 | (339) | ||||||||
Stock-based compensation expense | 20,399 | 14,535 | 11,326 | ||||||||
Tax effect from exercise of common stock options and vesting of restricted stock grants | 0 | 0 | 0 | ||||||||
Equity in undistributed earnings of subsidiary | (97,452) | (139,893) | (124,533) | ||||||||
Decrease (increase) in other assets | (4,938) | 469 | (1,361) | ||||||||
Increase (decrease) in other liabilities | 5,528 | 316 | (1,637) | ||||||||
Net cash provided by (used in) operating activities | 76,001 | 10,374 | 2,763 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Proceeds from sale of available-for-sale securities | 162 | 0 | 531 | ||||||||
Proceeds from principal repayments on loans | 9 | 8 | 8 | ||||||||
Investment in subsidiary | (4,000) | 0 | (17,000) | ||||||||
Net cash used in investing activities | (3,829) | 8 | (16,461) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from exercise of common stock options | 0 | 0 | 151 | ||||||||
Proceeds from issuance of common stock | 0 | 0 | 21,120 | ||||||||
Tax effect from exercise of common stock options and vesting of restricted stock units | 7 | 432 | 2,531 | ||||||||
Tax payments related to settlement of restricted stock units | (9,958) | (6,532) | (6,141) | ||||||||
Repurchase of treasury stock | (35,183) | 0 | 0 | ||||||||
Proceeds from issuance of subordinated notes | 0 | 0 | 51,000 | ||||||||
Cash dividends on preferred stock | (309) | (309) | (309) | ||||||||
Net cash provided by (used in) financing activities | (45,443) | (6,409) | 68,352 | ||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 26,729 | 3,973 | 54,654 | ||||||||
CASH AND CASH EQUIVALENTS—Beginning of year | $ 81,356 | $ 77,383 | 81,356 | 77,383 | 22,729 | ||||||
CASH AND CASH EQUIVALENTS—End of year | $ 108,085 | $ 81,356 | $ 108,085 | $ 81,356 | $ 77,383 |
QUARTERLY FINANCIAL INFORMAT117
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest and dividend income | $ 118,898 | $ 144,880 | $ 107,785 | $ 103,511 | $ 98,543 | $ 106,962 | $ 94,301 | $ 87,480 | $ 475,074 | $ 387,286 | $ 317,707 |
Interest expense | 31,850 | 28,197 | 23,572 | 22,961 | 20,016 | 18,403 | 17,940 | 17,700 | 106,580 | 74,059 | 56,696 |
Net interest income | 87,048 | 116,683 | 84,213 | 80,550 | 78,527 | 88,559 | 76,361 | 69,780 | 368,494 | 313,227 | 261,011 |
Provision for loan and lease losses | 3,900 | 16,900 | 4,000 | 1,000 | 200 | 4,862 | 4,100 | 1,900 | 25,800 | 11,061 | 9,700 |
Net interest income, after provision for loan and lease losses | 83,148 | 99,783 | 80,213 | 79,550 | 78,327 | 83,697 | 72,261 | 67,880 | 342,694 | 302,166 | 251,311 |
Non-interest income | 16,977 | 23,525 | 17,099 | 13,340 | 13,533 | 23,168 | 16,700 | 14,732 | 70,941 | 68,132 | 66,340 |
Non-interest expense | 49,673 | 45,434 | 40,809 | 38,020 | 35,979 | 35,448 | 33,300 | 32,878 | 173,936 | 137,605 | 112,756 |
INCOME BEFORE INCOME TAXES | 50,452 | 77,874 | 56,503 | 54,870 | 55,881 | 71,417 | 55,661 | 49,734 | 239,699 | 232,693 | 204,895 |
Income tax expense | 13,335 | 26,621 | 24,845 | 22,487 | 23,332 | 30,423 | 23,361 | 20,837 | 87,288 | 97,953 | 85,604 |
NET INCOME | 37,117 | 51,253 | 31,658 | 32,383 | 32,549 | 40,994 | 32,300 | 28,897 | 152,411 | 134,740 | 119,291 |
Net income attributable to common stock | $ 37,040 | $ 51,176 | $ 31,580 | $ 32,306 | $ 32,472 | $ 40,917 | $ 32,222 | $ 28,820 | $ 152,102 | $ 134,431 | $ 118,982 |
Basic earnings per common share (as revised for 2017 and 2016) (in dollars per share) | $ 0.59 | $ 0.82 | $ 0.50 | $ 0.51 | $ 0.51 | $ 0.64 | $ 0.51 | $ 0.45 | $ 2.41 | $ 2.11 | $ 1.87 |
Diluted earnings per common share (as revised for 2017 and 2016) (in dollars per share) | $ 0.58 | $ 0.80 | $ 0.49 | $ 0.50 | $ 0.51 | $ 0.64 | $ 0.50 | $ 0.45 | $ 2.37 | $ 2.10 | $ 1.87 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - Subsequent Event - Scenario, Forecast - Nationwide Bank $ in Billions | Aug. 03, 2018USD ($) |
Subsequent Event [Line Items] | |
Deposits acquired | $ 3 |
Checking, savings and money market deposits acquired | 1 |
Time deposits acquired | $ 2 |