Cover Page
Cover Page - shares | 9 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-37709 | |
Entity Registrant Name | AXOS FINANCIAL, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 33-0867444 | |
Entity Address, Address Line One | 9205 West Russell Road, STE 400 | |
Entity Address, City or Town | Las Vegas | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89148 | |
City Area Code | 858 | |
Local Phone Number | 649-2218 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 59,655,664 | |
Entity Central Index Key | 0001299709 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common stock, $0.01 par value | |
Trading Symbol | AX | |
Security Exchange Name | NYSE | |
Subordinated Notes Due 2026 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 6.25% Subordinated Notes Due 2026 | |
Trading Symbol | AXO | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 671,744 | $ 511,225 |
Cash segregated for regulatory purposes | 182,455 | 346,143 |
Total cash, cash equivalents, and cash segregated | 854,199 | 857,368 |
Securities - Trading | 919 | 0 |
Securities - Available-for-sale | 191,388 | 227,513 |
Stock of regulatory agencies | 23,833 | 20,276 |
Loans held for sale, carried at fair value | 40,236 | 33,260 |
Loans held for sale, lower of cost or fair value | 29 | 4,800 |
Loans and leases—net of allowance for loan and lease losses of $87,097 as of March 31, 2020 and $57,085 as of June 30, 2019 | 10,372,921 | 9,382,124 |
Mortgage servicing rights, carried at fair value | 9,962 | 9,784 |
Other real estate owned and repossessed vehicles | 7,307 | 7,485 |
Goodwill and other intangible assets—net | 127,962 | 134,893 |
Securities borrowed | 53,816 | 144,706 |
Customer, broker-dealer and clearing receivables | 187,353 | 203,192 |
Other assets | 289,994 | 194,837 |
TOTAL ASSETS | 12,159,919 | 11,220,238 |
Deposits: | ||
Non-interest bearing | 2,328,660 | 1,441,930 |
Interest bearing | 7,238,678 | 7,541,243 |
Total deposits | 9,567,338 | 8,983,173 |
Advances from the Federal Home Loan Bank | 770,500 | 458,500 |
Borrowings, subordinated notes and debentures | 76,285 | 168,929 |
Securities loaned | 76,587 | 198,356 |
Customer, broker-dealer and clearing payables | 318,100 | 238,604 |
Accounts payable and accrued liabilities and other liabilities | 166,657 | 99,626 |
Total liabilities | 10,975,467 | 10,147,188 |
COMMITMENTS AND CONTINGENCIES (Note 10) | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock—$0.01 par value; 150,000,000 shares authorized; 67,084,817 shares issued and 59,653,192 shares outstanding as of March 31, 2020; 66,563,922 shares issued and 61,128,817 shares outstanding as of June 30, 2019 | 671 | 666 |
Additional paid-in capital | 406,731 | 389,945 |
Accumulated other comprehensive income (loss)—net of tax | (2,726) | 16 |
Retained earnings | 964,076 | 826,170 |
Treasury stock, at cost; 7,431,625 shares as of March 31, 2020 and 5,435,105 shares as of June 30, 2019 | (189,363) | (148,810) |
Total stockholders’ equity | 1,184,452 | 1,073,050 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 12,159,919 | 11,220,238 |
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 March 31, 2020 and June 30, 2019 | $ 5,063 | $ 5,063 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
ASSETS | ||
Allowance for loan and lease losses | $ 87,097 | $ 57,085 |
STOCKHOLDERS’ EQUITY: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, issued (in shares) | 67,084,817 | 66,563,922 |
Common stock, shares outstanding (in shares) | 59,653,192 | 61,128,817 |
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 |
Treasury stock, at cost (in shares) | 7,431,625 | 5,435,105 |
Series A Preferred Stock | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, par or stated value (in dollars per share) | $ 10,000 | $ 10,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 10,000 | $ 10,000 |
Preferred stock, shares issued (in shares) | 515 | 515 |
Preferred stock, shares outstanding (in shares) | 515 | 515 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
INTEREST AND DIVIDEND INCOME: | ||||
Loans and leases, including fees | $ 175,065 | $ 157,181 | $ 445,554 | $ 397,049 |
Securities borrowed and customer receivables | 3,818 | 3,970 | 13,025 | 3,970 |
Investments | 6,180 | 8,057 | 20,117 | 22,225 |
Total interest and dividend income | 185,063 | 169,208 | 478,696 | 423,244 |
INTEREST EXPENSE: | ||||
Deposits | 31,254 | 29,719 | 102,974 | 84,385 |
Advances from the Federal Home Loan Bank | 3,952 | 8,366 | 10,211 | 26,848 |
Securities loaned | 115 | 1,038 | 564 | 1,038 |
Other borrowings | 1,126 | 916 | 4,608 | 2,805 |
Total interest expense | 36,447 | 40,039 | 118,357 | 115,076 |
Net interest income | 148,616 | 129,169 | 360,339 | 308,168 |
Provision for loan and lease losses | 28,500 | 19,000 | 35,700 | 24,550 |
Net interest income, after provision for loan and lease losses | 120,116 | 110,169 | 324,639 | 283,618 |
NON-INTEREST INCOME: | ||||
Realized gain (loss) on sale of securities | 0 | 0 | 0 | (133) |
Other-than-temporary loss on securities: | ||||
Other-than-temporary loss on securities: | 0 | (1,666) | 0 | (1,666) |
Less: Portion of other temporary impairment losses recognized in OCI | 0 | 845 | 0 | 845 |
Change to net impairment losses recognized in earnings on securities | 0 | (821) | 0 | (821) |
Prepayment penalty fee income | 1,406 | 706 | 4,824 | 4,077 |
Gain on sale – other | 608 | 535 | 6,354 | 5,611 |
Mortgage banking income | 2,955 | 352 | 7,973 | 2,959 |
Broker-dealer fee income | 6,329 | 5,036 | 17,540 | 5,036 |
Banking and service fees | 20,244 | 20,290 | 37,594 | 42,804 |
Total non-interest income | 31,542 | 26,098 | 74,285 | 59,533 |
NON-INTEREST EXPENSE: | ||||
Salaries and related costs | 36,257 | 33,716 | 106,932 | 93,524 |
Data processing | 6,563 | 7,144 | 21,784 | 16,792 |
Depreciation and amortization | 6,197 | 4,765 | 17,461 | 11,348 |
Advertising and promotional | 3,887 | 3,635 | 11,720 | 11,265 |
Professional services | 3,231 | 4,286 | 7,932 | 8,489 |
Occupancy and equipment | 2,919 | 2,584 | 8,879 | 5,983 |
FDIC and regulatory fees | 2,013 | 2,133 | 3,143 | 6,587 |
Broker-dealer clearing charges | 2,180 | 1,095 | 6,048 | 1,095 |
General and administrative expense | 8,543 | 22,457 | 20,323 | 30,587 |
Total non-interest expense | 71,790 | 81,815 | 204,222 | 185,670 |
INCOME BEFORE INCOME TAXES | 79,868 | 54,452 | 194,702 | 157,481 |
INCOME TAXES | 23,811 | 15,631 | 56,564 | 42,984 |
NET INCOME | 56,057 | 38,821 | 138,138 | 114,497 |
NET INCOME ATTRIBUTABLE TO COMMON STOCK | 55,980 | 38,744 | 137,906 | 114,265 |
COMPREHENSIVE INCOME | $ 53,578 | $ 38,530 | $ 135,396 | $ 114,592 |
Basic earnings per common share (in dollars per share) | $ 0.92 | $ 0.63 | $ 2.25 | $ 1.84 |
Diluted earnings per common share (in dollars per share) | $ 0.91 | $ 0.63 | $ 2.23 | $ 1.83 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 56,057 | $ 38,821 | $ 138,138 | $ 114,497 |
Net unrealized gain (loss) from available-for-sale securities, net of tax expense (benefit) of $(1,032) and $128 for the three and $(1,142) and $109 for nine months ended March 31, 2020 and 2019, respectively. | (2,479) | 303 | (2,742) | 595 |
Other-than-temporary impairment on securities sold, reclassed in other comprehensive income, net of tax expense (benefit) of $0 and $(251) for the three and $0 and $(251) for nine months ended March 31, 2020 and 2019, respectively. | 0 | (594) | 0 | (594) |
Reclassification of net (gain) loss from available-for-sale securities included in income, net of tax expense (benefit) of $(30) for the nine months ended March 31, 2019 | 0 | 0 | 0 | 94 |
Other comprehensive income (loss) | (2,479) | (291) | (2,742) | 95 |
Comprehensive income | $ 53,578 | $ 38,530 | $ 135,396 | $ 114,592 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net unrealized gain (loss) from available-for-sale securities, tax expense (benefit) | $ (1,032) | $ 128 | $ (1,142) | $ 109 |
Other-than-temporary impairment on securities recognized in other comprehensive income, tax expense (benefit) | 0 | (251) | 0 | (251) |
Reclassification of net (gain) loss from available-for-sale securities included in income, tax expense (benefit) | $ 0 | $ 0 | $ 0 | $ (30) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Treasury | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net of Income Tax |
Preferred stock, beginning balance (in shares) at Jun. 30, 2018 | 515 | ||||||
Stockholder's equity, beginning balance at Jun. 30, 2018 | $ 960,513 | $ 5,063 | $ 658 | $ (82,458) | $ 366,515 | $ 671,348 | $ (613) |
Common stock, issued, beginning balance (in shares) at Jun. 30, 2018 | 65,796,060 | ||||||
Common stock, treasury and outstanding, beginning balance (in shares) at Jun. 30, 2018 | 62,688,064 | (3,107,996) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 114,497 | 114,497 | |||||
Other comprehensive income (loss) | 95 | 95 | |||||
Cash dividends on preferred stock | (232) | (232) | |||||
Purchase of treasury stock (in shares) | (1,704,528) | (1,704,528) | |||||
Purchase of treasury stock | (47,881) | $ (47,881) | |||||
Stock-based compensation expense and restricted stock unit vesting and tax benefits, issued (in shares) | 457,238 | ||||||
Stock-based compensation expense and restricted stock unit vesting and tax benefits, treasury (in shares) | (155,399) | ||||||
Restricted stock unit vesting and tax benefits, outstanding (in shares) | 301,839 | ||||||
Stock-based compensation expense and restricted stock unit vesting | 12,493 | $ 5 | $ (5,488) | 17,976 | |||
Preferred stock, ending balance (in shares) at Mar. 31, 2019 | 515 | ||||||
Stockholder's equity, ending balance at Mar. 31, 2019 | 1,039,485 | $ 5,063 | $ 663 | $ (135,827) | 384,491 | 785,613 | (518) |
Common stock, issued, ending balance (in shares) at Mar. 31, 2019 | 66,253,298 | ||||||
Common stock, treasury and outstanding, ending balance (in shares) at Mar. 31, 2019 | 61,285,375 | (4,967,923) | |||||
Preferred stock, beginning balance (in shares) at Dec. 31, 2018 | 515 | ||||||
Stockholder's equity, beginning balance at Dec. 31, 2018 | 994,401 | $ 5,063 | $ 662 | $ (135,655) | 377,689 | 746,869 | (227) |
Common stock, issued, beginning balance (in shares) at Dec. 31, 2018 | 66,169,401 | ||||||
Common stock, treasury and outstanding, beginning balance (in shares) at Dec. 31, 2018 | 61,207,743 | (4,961,658) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 38,821 | 38,821 | |||||
Other comprehensive income (loss) | (291) | (291) | |||||
Cash dividends on preferred stock | (77) | (77) | |||||
Stock-based compensation expense and restricted stock unit vesting and tax benefits, issued (in shares) | 83,897 | ||||||
Stock-based compensation expense and restricted stock unit vesting and tax benefits, treasury (in shares) | (6,265) | ||||||
Restricted stock unit vesting and tax benefits, outstanding (in shares) | 77,632 | ||||||
Stock-based compensation expense and restricted stock unit vesting | 6,631 | $ 1 | $ (172) | 6,802 | |||
Preferred stock, ending balance (in shares) at Mar. 31, 2019 | 515 | ||||||
Stockholder's equity, ending balance at Mar. 31, 2019 | 1,039,485 | $ 5,063 | $ 663 | $ (135,827) | 384,491 | 785,613 | (518) |
Common stock, issued, ending balance (in shares) at Mar. 31, 2019 | 66,253,298 | ||||||
Common stock, treasury and outstanding, ending balance (in shares) at Mar. 31, 2019 | 61,285,375 | (4,967,923) | |||||
Preferred stock, beginning balance (in shares) at Jun. 30, 2019 | 515 | ||||||
Stockholder's equity, beginning balance at Jun. 30, 2019 | $ 1,073,050 | $ 5,063 | $ 666 | $ (148,810) | 389,945 | 826,170 | 16 |
Common stock, issued, beginning balance (in shares) at Jun. 30, 2019 | 66,563,922 | 66,563,922 | |||||
Common stock, treasury and outstanding, beginning balance (in shares) at Jun. 30, 2019 | 61,128,817 | 61,128,817 | (5,435,105) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | $ 138,138 | 138,138 | |||||
Other comprehensive income (loss) | (2,742) | (2,742) | |||||
Cash dividends on preferred stock | (232) | (232) | |||||
Purchase of treasury stock (in shares) | (1,815,783) | (1,815,783) | |||||
Purchase of treasury stock | (35,838) | $ (35,838) | |||||
Stock-based compensation expense and restricted stock unit vesting and tax benefits, issued (in shares) | 520,895 | ||||||
Stock-based compensation expense and restricted stock unit vesting and tax benefits, treasury (in shares) | (180,737) | ||||||
Restricted stock unit vesting and tax benefits, outstanding (in shares) | 340,158 | ||||||
Stock-based compensation expense and restricted stock unit vesting | 12,076 | $ 5 | $ (4,715) | 16,786 | |||
Preferred stock, ending balance (in shares) at Mar. 31, 2020 | 515 | ||||||
Stockholder's equity, ending balance at Mar. 31, 2020 | $ 1,184,452 | $ 5,063 | $ 671 | $ (189,363) | 406,731 | 964,076 | (2,726) |
Common stock, issued, ending balance (in shares) at Mar. 31, 2020 | 67,084,817 | 67,084,817 | |||||
Common stock, treasury and outstanding, ending balance (in shares) at Mar. 31, 2020 | 59,653,192 | 59,653,192 | (7,431,625) | ||||
Preferred stock, beginning balance (in shares) at Dec. 31, 2019 | 515 | ||||||
Stockholder's equity, beginning balance at Dec. 31, 2019 | $ 1,160,752 | $ 5,063 | $ 669 | $ (152,635) | 399,806 | 908,096 | (247) |
Common stock, issued, beginning balance (in shares) at Dec. 31, 2019 | 66,915,478 | ||||||
Common stock, treasury and outstanding, beginning balance (in shares) at Dec. 31, 2019 | 61,338,386 | (5,577,092) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 56,057 | 56,057 | |||||
Other comprehensive income (loss) | (2,479) | (2,479) | |||||
Cash dividends on preferred stock | (77) | (77) | |||||
Purchase of treasury stock (in shares) | (1,815,783) | (1,815,783) | |||||
Purchase of treasury stock | (35,838) | $ (35,838) | |||||
Stock-based compensation expense and restricted stock unit vesting and tax benefits, issued (in shares) | 169,339 | ||||||
Stock-based compensation expense and restricted stock unit vesting and tax benefits, treasury (in shares) | (38,750) | ||||||
Restricted stock unit vesting and tax benefits, outstanding (in shares) | 130,589 | ||||||
Stock-based compensation expense and restricted stock unit vesting | 6,037 | $ 2 | $ (890) | 6,925 | |||
Preferred stock, ending balance (in shares) at Mar. 31, 2020 | 515 | ||||||
Stockholder's equity, ending balance at Mar. 31, 2020 | $ 1,184,452 | $ 5,063 | $ 671 | $ (189,363) | $ 406,731 | $ 964,076 | $ (2,726) |
Common stock, issued, ending balance (in shares) at Mar. 31, 2020 | 67,084,817 | 67,084,817 | |||||
Common stock, treasury and outstanding, ending balance (in shares) at Mar. 31, 2020 | 59,653,192 | 59,653,192 | (7,431,625) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 138,138 | $ 114,497 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Accretion of discounts on securities | 392 | (245) |
Net accretion on securities and loans and leases | (35,186) | (30,599) |
Amortization of borrowing costs | 156 | 156 |
Amortization of operating lease right of use asset | (4,345) | 0 |
Stock-based compensation expense | 16,791 | 17,981 |
Net (gain) loss on sale of investment securities | 0 | 133 |
Impairment charge on securities | 0 | 821 |
Provision for loan and lease losses | 35,700 | 24,550 |
Broker-dealer reserve for bad debt | 0 | 15,298 |
Deferred income taxes | (12,872) | (13,640) |
Origination of loans held for sale | (1,286,230) | (1,201,001) |
Unrealized (gain) loss on loans held for sale | (574) | 246 |
Gain on sales of loans held for sale | (14,327) | (8,570) |
Proceeds from sale of loans held for sale | 1,296,148 | 1,227,360 |
Change in fair value of mortgage servicing rights | 3,869 | 2,053 |
(Gain) loss on sale of other real estate and foreclosed assets | (118) | (253) |
Depreciation and amortization | 17,461 | 11,348 |
Net changes in assets and liabilities which provide (use) cash: | ||
Securities borrowed | 90,890 | 30,731 |
Customer, broker-dealer and clearing receivables | 15,839 | (36,024) |
Other assets | 17,884 | (25,307) |
Securities loaned | (121,769) | (1,467) |
Customer, broker-dealer and clearing payables | 79,496 | 5,097 |
Accounts payable and other liabilities | (15,381) | (6,554) |
Net cash provided by (used in) operating activities | 221,962 | 126,611 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of investment securities | (244,530) | (73,664) |
Proceeds from sales of securities | 0 | 1,927 |
Proceeds from repayment of securities | 276,782 | 41,755 |
Purchase of stock of regulatory agencies | (48,088) | (177,326) |
Proceeds from redemption of stock of regulatory agencies | 44,531 | 177,325 |
Origination of loans and leases held for investment | (5,363,107) | (5,369,034) |
Proceeds from sale of loans and leases held for investment | 24,667 | 45,073 |
Origination of mortgage warehouse loans, net | (130,231) | (63,868) |
Proceeds from sales of other real estate owned and repossessed assets | 704 | 1,805 |
Cash paid for deposit acquisition | 0 | (14,747) |
Acquisition of business activity, net of cash paid | 0 | 67,911 |
Purchases of loans and leases, net of discounts and premiums | 0 | (11,525) |
Principal repayments on loans and leases | 4,461,594 | 4,727,328 |
Purchases of furniture, equipment and software | (9,956) | (16,786) |
Net cash used in investing activities | (987,634) | (663,826) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase (decrease) in deposits | 584,165 | 670,105 |
Net (repayment) proceeds of the Federal Home Loan Bank term advances | 30,000 | |
Net (repayment) proceeds of the Federal Home Loan Bank term advances | (132,500) | |
Net (repayment) proceeds of Federal Home Loan Bank other advances | 282,000 | 119,000 |
Net proceeds (repayments) of other borrowings | (92,800) | 67,200 |
Tax payments related to settlement of restricted stock units | (4,715) | (5,488) |
Repurchase of treasury stock | (35,838) | (47,881) |
Cash dividends paid on preferred stock | (309) | (232) |
Proceeds from issuance of subordinated notes | 0 | 7,500 |
Net cash provided by financing activities | 762,503 | 677,704 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (3,169) | 140,489 |
CASH AND CASH EQUIVALENTS—Beginning of year | 857,368 | 622,850 |
CASH AND CASH EQUIVALENTS—End of period | 854,199 | 763,339 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Interest paid on deposits and borrowed funds | 117,808 | 112,717 |
Income taxes paid | 42,020 | 43,930 |
Transfers to other real estate and repossessed vehicles | 853 | 578 |
Transfers from loans and leases held for investment to loans held for sale | 40,025 | 57,408 |
Loans and leases held for investment sold, cash not received | 18,662 | 33,996 |
Operating lease liabilities for obtaining right of use assets | $ 82,940 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The condensed consolidated financial statements include the accounts of Axos Financial, Inc. (“Axos”) and its wholly owned subsidiaries, Axos Bank (the “Bank”) and Axos Nevada Holding, LLC (the “Axos Nevada Holding” and collectively, the “Company”). Axos Nevada Holding wholly owns its subsidiary Axos Securities, LLC, which wholly owns subsidiaries Axos Clearing LLC (“Axos Clearing”), a clearing broker dealer, Axos Invest, Inc., a registered investment advisor, and Axos Invest LLC, an introducing broker dealer. All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying interim condensed consolidated financial statements, presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), are unaudited and reflect all adjustments which, in the opinion of management, are necessary for a fair statement of financial condition and results of operations for the interim periods. All adjustments are of a normal and recurring nature. Results for the nine months ended March 31, 2020 are not necessarily indicative of results that may be expected for any other interim period or for the year as a whole. Certain information and note disclosures normally included in the audited annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) with respect to interim financial reporting. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended June 30, 2019 included in our Annual Report on Form 10-K. Certain reclassifications to dividend and interest income line items for the nine months ended March 31, 2020 have been made to conform to the current period presentation. The reclassifications had no effect on total dividend and interest income, net interest income, net income nor stockholders’ equity for any period. Business Segments. The Company determines reportable segments based on the services offered, the significance of the services offered, the significance of those services to the Company’s financial condition and operating results and management’s regular review of the operating results of those services. The Company operates through two operating segments: Banking Business and Securities Business. Please refer to “Note 12 - Segment Reporting” for further information on the reporting for the Company’s two business segments. New Accounting Standards Accounting Standards Adopted During Fiscal 2020 Leases. On July 1, 2019, the Company adopted Accounting Standards Codification (“ASC”) 842, Leases (Topic 842), which required lessees to recognize operating leases on the balance sheet as right-of-use assets and lease liabilities based on the value of the discounted future lease payments. Lessor accounting is largely unchanged. The Company elected to retain prior determinations of whether an existing contract contains a lease and how the lease should be classified. The Company elected to recognize leases existing on July 1, 2019 through a modified retrospective transition approach. The Company will not adjust comparative periods based on the newly adopted guidance. Upon adoption, the Company also recognized right-of-use assets $77.8 million and lease liabilities of $79.7 million . Lessor Arrangements. The Company provides equipment financing to its customers through a variety of lessor arrangements. Direct financing leases and sales-type leases are carried at the aggregate of lease payments receivable plus the estimated residual value of the leased property less unearned income, which is accreted to interest income over the lease terms using methods that approximate the interest method. Operating lease income is recognized on a straight-line basis. Leases generally do not contain non-lease components. Lessee Arrangements. Substantially all of the Company’s lessee arrangements are operating leases. Under these arrangements, the Company records right-of-use assets and lease liabilities at lease commencement. Right-of-use assets are reported in other assets on the March 31, 2020 unaudited Condensed Consolidated Balance Sheet, and the related lease liabilities are reported in accounts payable and accrued liabilities and other liabilities. All leases are recorded on the unaudited Condensed Consolidated Balance Sheet except leases with an initial term less than 12 months for which the Company made the short-term lease election. Lease expense is recognized on a straight-line basis over the lease term and is recorded in occupancy and equipment expense in the unaudited Condensed Consolidated Statements of Income. The Company made an accounting policy election not to separate lease and non-lease components of a contract that is or contains a lease for its real estate and equipment leases. As such, lease payments represent payments on both lease and non-lease components. At lease commencement, lease liabilities are recognized based on the present value of the remaining lease payments and discounted using the Company’s incremental borrowing rate. Right-of-use assets initially equal the lease liability, adjusted for any lease payments made prior to lease commencement and for any lease incentives. Accounting Standards Issued But Not Yet Adopted In June 2016, the FASB issued ASU 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“Topic 326”), 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. Topic 326 also requires certain incremental disclosures. Topic 326 should be applied on a modified-retrospective transition approach that would require a cumulative-effect adjustment to the opening retained earnings in the consolidated balance sheet 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 beginning July 1, 2020. The Company’ working group has reviewed the Company’s methodology and model with third-party consultants, is in the process of making recommended adjustments, and is progressing in accordance with its implementation plan. The Company expects Topic 326 to have a material impact on the Company’s consolidated financial statements. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 9 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the periods indicated: Three Months Ended Nine Months Ended March 31, March 31, (Dollars in thousands, except per share data) 2020 2019 2020 2019 Non-interest income Deposit service fees $ 727 $ 404 $ 3,564 $ 3,083 Card fees 1,283 1,174 3,904 4,094 Broker-dealer clearing fees 6,329 1,567 17,540 1,567 Bankruptcy trustee and fiduciary service fees 15 1,514 1,239 5,724 Non-interest income (in-scope of Topic 606) 8,354 4,659 26,247 14,468 Non-interest income (out-of-scope of Topic 606) 23,188 21,439 48,038 45,065 Total non-interest income $ 31,542 $ 26,098 $ 74,285 $ 59,533 |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS The Company completed two business acquisitions and two asset acquisitions during the fiscal year ended June 30, 2019 . The Company had no acquisitions during the nine months ended March 31, 2020 . The pro forma results of operations and the results of operations for the acquisitions since the acquisition date have not been separately disclosed because the effects were not material to the consolidated financial statements. The purchase transactions are detailed below. MWABank deposit acquisition . On March 15, 2019, the Bank closed the deposit assumption agreement with MWA Bank and acquired approximately $173 million of deposits, including approximately $151 million of checking, savings and money market accounts and $22 million of time deposits. Axos did not assume any assets, employees or branches in this transaction. The Bank received cash equal to the book value of the deposit liabilities. WiseBanyan . On February 26, 2019 the Company’s subsidiary, Axos Securities, LLC, had completed the acquisition of WiseBanyan Holding, Inc. and its subsidiaries (collectively “WiseBanyan”). Headquartered in Las Vegas, Nevada, WiseBanyan is a provider of personal financial and investment management services through a proprietary technology platform. WiseBanyan currently serves approximately 24,000 clients with approximately $150 million of assets under management. The Company paid $3.2 million in cash to acquire the assets of WiseBanyan and recorded $2.7 million in intangible assets. COR Securities Holdings. On January 28, 2019 (“Acquisition Date”), Axos Clearing, LLC and Axos Clarity MergeCo., Inc. completed the acquisition of COR Securities Holdings Inc.(“COR Securities”), the parent company of COR Clearing LLC (“COR Clearing”), pursuant to the terms of the Agreement and Plan of Merger, dated as of September 28, 2018 (the “Merger Agreement”). Headquartered in Omaha, Nebraska, COR Clearing is a full-service correspondent clearing firm for independent broker-dealers. COR Clearing provides clearing, settlement, custody, securities and margin lending, and technology solutions to more than sixty introducing broker-dealers and 90,000 customers. The total cash consideration of approximately $80.9 million was funded with existing capital. The Company issued subordinated notes totaling $7.5 million to the principal stockholders of COR Securities in an equal principal amount, with a maturity of 15 months, to serve as the sole source of payment of indemnification obligations of the principal stakeholders of COR Securities under the Merger Agreement. The acquisition of COR Securities is being accounted for as a business combination using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration paid are recorded at estimated fair values on the Acquisition Date. The Company recorded goodwill of $35.5 million and an additional $20.1 million in intangible assets as of the Acquisition Date. Included in the professional services line of the statement of income the Company recognized $0.4 million in transaction costs. The consideration paid for COR Securities common equity and the provisional fair values of acquired identifiable assets and liabilities assumed as of the Acquisition Date were as follows: (Dollars in thousands) January 28, 2019 ASSETS Cash and due from banks $ 16,604 Cash segregated for regulatory purposes 142,016 Securities, available for sale 9,585 Stock of the regulatory agencies, at cost 2,431 Securities borrowed 157,898 Customer, broker-dealer and clearing receivables 234,352 Other assets 5,487 Total identifiable assets $ 568,373 LIABILITIES AND STOCKHOLDERS’ EQUITY Notes payable to banks $ 85,100 Securities loaned 203,041 Customer, broker-dealer and clearing payables 240,110 Accounts payable and accrued liabilities 7,383 Total identifiable liabilities $ 535,634 Goodwill $ 35,501 Intangible assets 20,120 Total cash purchase price $ 80,860 Notes issued $ 7,500 Total fair value of consideration paid 88,360 Nationwide Bank deposit acquisition . On November 16, 2018, the Bank completed the acquisition of substantially all of Nationwide Bank’s (“Nationwide”) deposits at the time of closing, adding $2.4 billion in deposits, including $0.7 billion in checking, savings and money market accounts and $1.7 billion in time deposit accounts. The Bank received cash for the deposit balances transferred less a premium of $13.5 million , commensurate with the fair market value of the deposits purchased. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC Topic 820, Fair Value Measurement , also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis at March 31, 2020 and June 30, 2019 . Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: March 31, 2020 (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: Municipal $ — $ 919 $ — $ 919 Securities—Available-for-Sale: Agency Debt 1 $ — $ 1,700 $ — $ 1,700 Agency RMBS 1 — 14,443 — 14,443 Non-Agency RMBS 2 — — 11,706 11,706 Municipal — 10,389 — 10,389 Asset-backed securities and structured notes — 153,150 — 153,150 Total—Securities—Available-for-Sale $ — $ 179,682 $ 11,706 $ 191,388 Loans Held for Sale $ — $ 40,236 $ — $ 40,236 Mortgage servicing rights $ — $ — $ 9,962 $ 9,962 Other assets—Derivative instruments $ — $ — $ 5,626 $ 5,626 LIABILITIES: Other liabilities—Derivative instruments $ — $ — $ 2,978 $ 2,978 June 30, 2019 (Dollars in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total ASSETS: Securities—Available-for-Sale: Agency Debt 1 $ — $ 1,685 $ — $ 1,685 Agency RMBS 1 — 9,586 — 9,586 Non-Agency RMBS 2 — — 13,025 13,025 Municipal — 21,162 — 21,162 Asset-backed securities and structured notes — 182,055 — 182,055 Total—Securities—Available-for-Sale $ — $ 214,488 $ 13,025 $ 227,513 Loans Held for Sale $ — $ 33,260 $ — $ 33,260 Mortgage servicing rights $ — $ — $ 9,784 $ 9,784 Other assets—Derivative instruments $ — $ — $ 1,978 $ 1,978 LIABILITIES: Other liabilities—Derivative instruments $ — $ — $ 732 $ 732 1 U.S. government-backed or government sponsored enterprises including Fannie Mae, Freddie Mac and Ginnie Mae. 2 Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option ARM mortgages. The following tables present additional information about assets measured at fair value on a recurring basis and for which the Company has utilized Level 3 inputs to determine fair value: For the Three Months Ended March 31, 2020 (Dollars in thousands) Securities – Available-for-Sale: Non-Agency RMBS Mortgage Servicing Rights Derivative Instruments, net Total Opening balance $ 12,787 $ 11,262 $ 1,017 $ 25,066 Total gains or losses for the period: Included in earnings—Mortgage banking income — (2,597 ) 1,631 (966 ) Included in other comprehensive income (548 ) — — (548 ) Purchases/originations — 1,297 — 1,297 Settlements (533 ) — — (533 ) Closing balance $ 11,706 $ 9,962 $ 2,648 $ 24,316 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ (2,597 ) $ 1,631 $ (966 ) For the Nine Months Ended March 31, 2020 (Dollars in thousands) Securities – Available-for-Sale: Non-Agency RMBS Mortgage Servicing Rights Derivative Instruments, net Total Opening Balance $ 13,025 $ 9,784 $ 1,246 $ 24,055 Total gains or losses for the period: Included in earnings—Mortgage banking income — (3,869 ) 1,402 (2,467 ) Included in other comprehensive income 292 — — 292 Purchases — 4,047 — 4,047 Settlements (1,611 ) — — (1,611 ) Closing balance $ 11,706 $ 9,962 $ 2,648 $ 24,316 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ (3,869 ) $ 1,402 $ (2,467 ) For the Three Months Ended March 31, 2019 (Dollars in thousands) Securities – Available-for-Sale: Non-Agency RMBS Mortgage Servicing Rights Derivative Instruments, net Total Opening balance $ 14,421 $ 11,215 $ 469 $ 26,105 Total gains or losses for the period: Included in earnings—Mortgage banking income — (1,199 ) 153 (1,046 ) Included in other comprehensive income (108 ) — — (108 ) Purchases/originations — 339 — 339 Settlements (370 ) — — (370 ) Other-than-temporary impairment (821 ) — — (821 ) Closing balance $ 13,122 $ 10,355 $ 622 $ 24,099 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ (1,199 ) $ 153 $ (1,046 ) For the Nine Months Ended March 31, 2019 (Dollars in thousands) Securities – Available-for-Sale: Non-Agency RMBS Mortgage Servicing Rights Derivative Instruments, net Total Opening Balance $ 17,443 $ 10,752 $ 953 $ 29,148 Total gains or losses for the period: Included in earnings—Sale of securities (133 ) — — (133 ) Included in earnings—Mortgage banking income — (2,053 ) (331 ) (2,384 ) Included in other comprehensive income 442 — — 442 Purchases — 1,656 — 1,656 Sales (2,058 ) — — (2,058 ) Settlements (1,751 ) — — (1,751 ) Other-than-temporary impairment (821 ) — — (821 ) Closing balance $ 13,122 $ 10,355 $ 622 $ 24,099 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ (133 ) $ (2,053 ) $ (331 ) $ (2,517 ) The table below summarizes the quantitative information about level 3 fair value measurements as of the dates indicated: March 31, 2020 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Securities – Non-agency RMBS $ 11,706 Discounted Cash Flow Projected Constant Prepayment Rate, 1.0 to 25.6% (8.9%) 1.5 to 20.0% (4.8%) Mortgage Servicing Rights $ 9,962 Discounted Cash Flow Projected Constant Prepayment Rate, 4.9 to 29.4% (10.9%) 1.9 to 8.3 (6.3) Derivative Instruments $ 2,648 Sales Comparison Approach Projected Sales Profit of Underlying Loans 0.0 to 0.8% (0.4%) June 30, 2019 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Securities – Non-agency RMBS $ 13,025 Discounted Cash Flow Projected Constant Prepayment Rate, 2.9 to 32.5% (10.0%) 1.5 to 10.2% (4.4%) Mortgage Servicing Rights $ 9,784 Discounted Cash Flow Projected Constant Prepayment Rate, 4.7 to 33.7% (10.1%) 1.9 to 8.8 (6.4) Derivative Instruments $ 1,246 Sales Comparison Approach Projected Sales Profit of Underlying Loans 0.4 to 0.8% (0.6%) The significant unobservable inputs used in the fair value measurement of the Company’s residential mortgage-backed securities are projected prepayment rates, probability of default, and projected loss severity in the event of default. Significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for the projected loss severity and a directionally opposite change in the assumption used for projected prepayment rates. The table below summarizes assets measured for impairment on a non-recurring basis: March 31, 2020 (Dollars in thousands) Quoted Prices in Significant Other Significant Balance Impaired Loans and Leases: Single family real estate secured: Mortgage $ — $ — $ 54,106 $ 54,106 Multifamily real estate secured — — 1,176 1,176 Commercial real estate secured — — 1,909 1,909 Auto and RV secured — — 339 339 Other — — 406 406 Total $ — $ — $ 57,936 $ 57,936 Other real estate owned and foreclosed assets: Single family real estate $ — $ — $ 7,010 $ 7,010 Autos and RVs — — 297 297 Total $ — $ — $ 7,307 $ 7,307 June 30, 2019 (Dollars in thousands) Quoted Prices in Significant Other Significant Balance Impaired Loans and Leases: Single family real estate secured: Mortgage $ — $ — $ 46,005 $ 46,005 Multifamily real estate secured — — 2,108 2,108 Auto and RV secured — — 115 115 Other — — 216 216 Total $ — $ — $ 48,444 $ 48,444 Other real estate owned and foreclosed assets: Single family real estate $ — $ — $ 7,449 $ 7,449 Autos and RVs — — 36 36 Total $ — $ — $ 7,485 $ 7,485 Impaired loans and leases measured for impairment on a non-recurring basis using the fair value of the collateral for collateral-dependent loans and leases have a carrying amount of $57,936 , after charge-offs of $558 for the nine months ended March 31, 2020 , life to date charge-offs of $5,847 , life to date interest payments applied to principal of $1,074 for total life to date principal balance adjustments of $6,921 . Impaired loans had a related allowance of $304 at March 31, 2020 . 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 $7,307 after charge-offs of $427 for the nine months ended March 31, 2020 . The Company has elected the fair value option for Agency loans held for sale. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policy on loans held for investment. None of these loans are 90 days or more past due nor on nonaccrual as of March 31, 2020 and June 30, 2019 . As of March 31, 2020 and June 30, 2019 , the aggregate fair value of loans held for sale, carried at fair value, contractual balance (including accrued interest), and unrealized gain was as follows: (Dollars in thousands) March 31, 2020 June 30, 2019 Aggregate fair value $ 40,236 $ 33,260 Contractual balance 38,724 32,342 Unrealized gain $ 1,512 $ 918 The total amount of gains and losses from changes in fair value included in earnings for the period indicated below for loans held for sale were: For the Three Months Ended For the Nine Months Ended March 31, March 31, (Dollars in thousands) 2020 2019 2020 2019 Interest income $ 216 $ 258 $ 812 $ 824 Change in fair value 2,228 134 1,976 (577 ) Total $ 2,444 $ 392 $ 2,788 $ 247 The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at the periods indicated: March 31, 2020 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Input Range (Weighted Average) 1 Impaired loans and leases: Single family real estate secured: Mortgage $ 54,106 Sales comparison approach Adjustment for differences between the comparable sales -15.3 to 18.5% (-0.4%) Multifamily real estate secured $ 1,176 Sales comparison approach, income approach, Discounted cash flows Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, capitalization rate 4.5 to 15.0% (9.3%) Commercial real estate secured $ 1,909 Sales comparison approach and income approach Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations 1.5 to 1.5% (1.5%) Auto and RV secured $ 339 Sales comparison approach Adjustment for differences between the comparable sales -63.2 to 13.2% (-15.4%) Other $ 406 Discounted cash flow Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate 0.0 to 0.0% (0.0%) Other real estate owned and foreclosed assets: Single family real estate $ 7,010 Sales comparison approach Adjustment for differences between the comparable sales 8.8 to 18.7% (16.7%) Autos and RVs $ 297 Sales comparison approach Adjustment for differences between the comparable sales -30.2 to 2.2% (-3.4%) 1 For impaired loans, other real estate owned and foreclosed assets the ranges shown may vary positively or negatively based on the comparable sales reported in the current appraisal. In certain instances, the range can be significant due to small sample sizes and in some cases the property being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted. June 30, 2019 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Input Range (Weighted Average) 1 Impaired loans and leases: Single family real estate secured: Mortgage $ 46,005 Sales comparison approach Adjustment for differences between the comparable sales -83.2 to 80% (-2.0%) Multifamily real estate secured $ 2,108 Sales comparison approach and income approach Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, capitalization rate -87.9 to 102.7% (-0.1%) Auto and RV secured $ 115 Sales comparison approach Adjustment for differences between the comparable sales -49.0 to 24.0% (2.6%) Other $ 216 Discounted cash flow Projected Constant Prepayment Rate, 0.0 to 0.0% (0.0%) 0.0 to 10.0% (5.0%) 100.0 to 100.0% (100.0%) -2.2 to 1.1% (-0.6%) Other real estate owned and foreclosed assets: Single family real estate $ 7,449 Sales comparison approach Adjustment for differences between the comparable sales -46.3 to 53.0% (5.3%) Autos and RVs $ 36 Sales comparison approach Adjustment for differences between the comparable sales -13.6 to 56.3% (8.0%) 1 For impaired loans, other real estate owned and foreclosed assets the ranges shown may vary positively or negatively based on the comparable sales reported in the current appraisal. In certain instances, the range can be significant due to small sample sizes and in some cases the property being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted. Fair value of Financial Instruments The carrying amounts and estimated fair values of financial instruments at March 31, 2020 and June 30, 2019 were as follows: March 31, 2020 Fair Value (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 854,199 $ 854,199 $ — $ — $ 854,199 Securities trading 919 — 919 — 919 Securities available-for-sale 191,388 — 179,682 11,706 191,388 Loans held for sale, at fair value 40,236 — 40,236 — 40,236 Loans held for sale, at lower of cost or fair value 29 — — 29 29 Loans and leases held for investment—net 10,372,921 — — 10,926,375 10,926,375 Securities borrowed 53,816 — — 53,827 53,827 Customer, broker-dealer and clearing receivables 187,353 — — 187,447 187,447 Mortgage servicing rights 9,962 — — 9,962 9,962 Financial liabilities: Total deposits 9,567,338 — 9,312,380 — 9,312,380 Advances from the Federal Home Loan Bank 770,500 — 780,580 — 780,580 Borrowings, subordinated notes and debentures 76,285 — 77,104 — 77,104 Securities loaned 76,587 — — 76,587 76,587 Customer, broker-dealer and clearing payables 318,100 — — 291,679 291,679 June 30, 2019 Fair Value (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 857,368 $ 857,368 $ — $ — $ 857,368 Securities available-for-sale 227,513 — 214,488 13,025 227,513 Loans held for sale, at fair value 33,260 — 33,260 — 33,260 Loans held for sale, at lower of cost or fair value 4,800 — — 4,990 4,990 Loans and leases held for investment—net 9,382,124 — — 9,630,061 9,630,061 Securities borrowed 144,706 — — 144,720 144,720 Customer, broker-dealer and clearing receivables 203,192 — — 203,355 203,355 Mortgage servicing rights 9,784 — — 9,784 9,784 Financial liabilities: Total deposits 8,983,173 — 8,758,861 — 8,758,861 Advances from the Federal Home Loan Bank 458,500 — 461,156 — 461,156 Borrowings, subordinated notes and debentures 168,929 — 169,212 — 169,212 Securities loaned 198,356 — — 198,197 198,197 Customer, broker-dealer and clearing payables 238,604 — — 229,987 229,987 The methods and assumptions, not previously presented, used to estimate fair value are described as follows: Carrying amount is the estimated fair value for cash and cash equivalents, interest bearing deposits, accrued interest receivable and payable, demand deposits, short-term debt, and variable rate loans and leases or deposits that reprice frequently and fully. For fixed rate loans and leases, deposits, borrowings or subordinated debt and for variable rate loans and leases, deposits, borrowings or subordinated debt with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk. A discussion of the methods of valuing trading securities, available for sale securities and loans held for sale can be found earlier in this footnote. The carrying amount of stock of regulatory agencies approximates the estimated fair value of this investment. The fair value of off-balance sheet items is not considered material. |
SECURITIES
SECURITIES | 9 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The amortized cost, carrying amount and fair value for the trading and available-for-sale securities at March 31, 2020 and June 30, 2019 were: March 31, 2020 Trading Available-for-sale (Dollars in thousands) Fair Value Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mortgage-backed securities (RMBS): U.S. agencies 1 $ — $ 13,933 $ 510 $ — $ 14,443 Non-agency 2 — 11,878 388 (560 ) 11,706 Total mortgage-backed securities — 25,811 898 (560 ) 26,149 Non-RMBS: U.S. agencies 1 — 1,700 — — 1,700 Municipal 919 10,544 28 (183 ) 10,389 Asset-backed securities and structured notes — 156,315 495 (3,660 ) 153,150 Total Non-RMBS 919 168,559 523 (3,843 ) 165,239 Total debt securities $ 919 $ 194,370 $ 1,421 $ (4,403 ) $ 191,388 June 30, 2019 Trading Available-for-sale (Dollars in thousands) Fair Value Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mortgage-backed securities (RMBS): U.S. agencies 1 $ — $ 9,486 $ 179 $ (79 ) $ 9,586 Non-agency 2 — 13,489 226 (690 ) 13,025 Total mortgage-backed securities — 22,975 405 (769 ) 22,611 Non-RMBS: U.S. agencies 1 — 1,682 3 — 1,685 Municipal — 21,974 16 (828 ) 21,162 Asset-backed securities and structured notes — 179,976 2,088 (9 ) 182,055 Total Non-RMBS — 203,632 2,107 (837 ) 204,902 Total debt securities $ — $ 226,607 $ 2,512 $ (1,606 ) $ 227,513 1 U.S. government-backed including and Ginnie Mae, or government sponsored enterprises including Fannie Mae and Freddie Mac. 2 Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option ARM mortgages. The Company’s non-agency RMBS available-for-sale portfolio with a total fair value of $11,706 at March 31, 2020 consists of 14 different issues of super senior securities. The face amounts of debt securities available-for-sale that were pledged to secure borrowings at March 31, 2020 and June 30, 2019 were $3,399 and $3,555 , respectively. The securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows: March 31, 2020 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 $ — $ — $ — $ — $ — $ — Non-agency 28 (1 ) 7,652 (559 ) 7,680 (560 ) Total RMBS securities 28 (1 ) 7,652 (559 ) 7,680 (560 ) Non-RMBS: Municipal debt 5,028 (1 ) 2,017 (182 ) 7,045 (183 ) Asset-backed securities and structured notes 152,678 (3,657 ) 472 (3 ) 153,150 (3,660 ) Total Non-RMBS 157,706 (3,658 ) 2,489 (185 ) 160,195 (3,843 ) Total debt securities $ 157,734 $ (3,659 ) $ 10,141 $ (744 ) $ 167,875 $ (4,403 ) June 30, 2019 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 $ 44 $ (2 ) $ 4,612 $ (77 ) $ 4,656 $ (79 ) Non-agency 32 (1 ) 8,527 (689 ) 8,559 (690 ) Total RMBS securities 76 (3 ) 13,139 (766 ) 13,215 (769 ) Non-RMBS: Municipal debt — — 12,997 (828 ) 12,997 (828 ) Asset-backed securities and structured notes 101 (1 ) 1,779 (8 ) 1,880 (9 ) Total Non-RMBS 101 (1 ) 14,776 (836 ) 14,877 (837 ) Total debt securities $ 177 $ (4 ) $ 27,915 $ (1,602 ) $ 28,092 $ (1,606 ) There were 10 securities that were in a continuous loss position at March 31, 2020 for a period of more than 12 months . There were six securities that were in a continuous loss position at March 31, 2020 for a period of less than 12 months . There were twenty-one securities that were in a continuous loss position at June 30, 2019 for a period of more than 12 months . There were three securities that were in a continuous loss position at June 30, 2019 for a period of less than 12 months . At March 31, 2020 , one non-agency RMBS with a total carrying amount of $2,929 was determined to have cumulative credit losses of $821 of which none was recognized in earnings during the three months ended March 31, 2020 . The Company measures its non-agency RMBS in an unrealized loss position at the end of the reporting period for other-than-temporary impairment by comparing the present value of the cash flows currently expected to be collected from the security with its amortized cost basis. If the calculated present value is lower than the amortized cost, the difference is the credit component of an other-than-temporary impairment of its debt securities. The excess of present value over the fair value of the security, if any, is the noncredit component of the other-than-temporary impairment. If the Company does not intend to sell the security and will not be required to sell the security before recovery of its amortized cost basis, the credit component of other-than-temporary impairment is recorded as a loss in earnings and the noncredit component of other-than-temporary impairment is recorded in comprehensive income, net of the related income tax benefit. If the Company does not intend to hold the security, or will be required to sell the security prior to a recovery of the amortized cost basis of the security, the credit component and noncredit component of the other-than-temporary impairment is recorded as a loss in earnings. To determine the cash flow expected to be collected and to calculate the present value for purposes of testing for other-than-temporary impairment, the Company utilizes the same industry-standard tool and the same cash flows as those calculated for Level 3 fair values as discussed in Note 4 – “Fair Value” in our Annual Report on Form 10-K for the year ended June 30, 2019 . 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 three months ended March 31, 2019 , the company sold no available-for-sale securities. During the three months ended March 31, 2020 , the company sold trading securities with a carrying value of $7,866 resulting in a gain of $54 and no available-for-sale securities. The Company had recorded unrealized gains and unrealized losses in accumulated other comprehensive loss as follows: (Dollars in thousands) March 31, June 30, Available-for-sale debt securities—net unrealized gains (losses) $ (2,982 ) $ 905 Available-for-sale debt securities—non-credit related losses (845 ) (845 ) Subtotal (3,827 ) 60 Tax benefit (expense) 1,101 (44 ) Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss) $ (2,726 ) $ 16 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 were: March 31, 2020 Available for sale (Dollars in thousands) Amortized Cost Fair Value RMBS—U.S. agencies 1 : Due within one year $ 1,969 $ 2,040 Due one to five years 6,288 6,508 Due five to ten years 2,940 3,053 Due after ten years 2,736 2,842 Total RMBS—U.S. agencies 1 13,933 14,443 RMBS—Non-agency: Due within one year 2,372 2,326 Due one to five years 6,260 6,096 Due five to ten years 2,594 2,566 Due after ten years 652 718 Total RMBS—Non-agency 11,878 11,706 Non-RMBS: Due within one year 22,244 22,521 Due one to five years 140,857 137,416 Due five to ten years 769 722 Due after ten years 4,689 4,580 Total Non-RMBS 168,559 165,239 Total $ 194,370 $ 191,388 1 Residential mortgage-backed security (RMBS) distributions include impact of expected prepayments and other timing factors. |
LOANS, LEASES & ALLOWANCE FOR L
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES | 9 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES | LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES The following table sets forth the composition of the loan and lease portfolio as of the dates indicated: (Dollars in thousands) March 31, 2020 June 30, 2019 Single family real estate secured: Mortgage $ 4,139,163 $ 4,281,080 Warehouse 380,146 301,999 Financing 1 663,367 518,560 Multifamily secured - mortgage and financing 2,197,889 1,948,513 Commercial real estate secured - mortgage 409,844 326,154 Auto and RV secured 311,740 290,894 Commercial & Industrial 2,214,292 1,662,629 Other 136,863 119,481 Total gross loans and leases 10,453,304 9,449,310 Allowance for loan and lease losses (87,097 ) (57,085 ) Unaccreted premiums (discounts) and loan and lease fees 6,714 (10,101 ) Total net loans and leases $ 10,372,921 $ 9,382,124 1 Single family real estate secured: Financing consists of commercial specialty and lender finance loans secured by single family real estate. Allowance for Loan and Lease Losses. We are committed to maintaining the allowance for loan and lease losses (sometimes referred to as the “allowance”) at a level that is considered to be commensurate with estimated probable incurred credit losses in the portfolio. 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. Although the adequacy of the allowance is reviewed quarterly, the Company performs an ongoing assessment of the risks inherent in the portfolio. The Company is closely monitoring the rapid developments and uncertainties caused by the COVID-19 pandemic and has increased provisions for loan and lease losses by $6.6 million as a result of reduced business activities due to the weakening economy. While the Company believes that the allowance for loan and lease losses is adequate at March 31, 2020 , 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. The following tables summarize activity in the allowance for loan and lease losses by portfolio classes for the periods indicated: For the Three Months Ended March 31, 2020 Single Family Real Estate Secured (Dollars in thousands) Mortgage Warehouse Financing MF secured CRE secured Auto and RV Secured Commercial & Industrial Other Total Balance at January 1, 2020 $ 20,234 $ 1,428 $ 3,591 $ 5,322 $ 1,191 $ 5,064 $ 18,762 $ 3,922 $ 59,514 Provision for loan and lease losses 705 1 866 653 354 1,269 4,277 20,375 28,500 Charge-offs — — — — — (450 ) — (840 ) (1,290 ) Recoveries 62 — — — — 132 — 179 373 Balance at March 31, 2020 $ 21,001 $ 1,429 $ 4,457 $ 5,975 $ 1,545 $ 6,015 $ 23,039 $ 23,636 $ 87,097 For the Three Months Ended March 31, 2019 Single Family Real Estate Secured (Dollars in thousands) Mortgage Warehouse Financing MF secured CRE secured Auto and RV Secured Commercial & Industrial Other Total Balance at January 1, 2019 $ 22,249 $ 615 $ 2,722 $ 4,833 $ 974 $ 4,013 $ 15,181 $ 3,119 $ 53,706 Provision for loan and lease losses (1,168 ) (49 ) 840 (407 ) 117 655 3,038 15,974 19,000 Charge-offs (59 ) — — — — (288 ) — (714 ) (1,061 ) Recoveries 3 — — — — 42 — 56 101 Balance at March 31, 2019 $ 21,025 $ 566 $ 3,562 $ 4,426 $ 1,091 $ 4,422 $ 18,219 $ 18,435 $ 71,746 For the Nine Months Ended March 31, 2020 Single Family Real Estate Secured (Dollars in thousands) Mortgage Warehouse Financing MF secured CRE secured Auto and RV Secured Commercial & Industrial Other Total Balance at July 1, 2019 $ 21,295 $ 996 $ 5,331 $ 4,097 $ 1,044 $ 4,818 $ 17,514 $ 1,990 $ 57,085 Provision for loan and lease losses (383 ) 433 (874 ) 1,759 501 1,981 9,657 22,626 35,700 Charge-offs (151 ) — — — — (1,069 ) (4,132 ) (2,401 ) (7,753 ) Recoveries 240 — — 119 — 285 — 1,421 2,065 Balance at March 31, 2020 $ 21,001 $ 1,429 $ 4,457 $ 5,975 $ 1,545 $ 6,015 $ 23,039 $ 23,636 $ 87,097 For the Nine Months Ended March 31, 2019 Single Family Real Estate Secured (Dollars in thousands) Mortgage Warehouse Financing MF secured CRE secured Auto and RV Secured Commercial & Industrial Other Total Balance at July 1, 2018 $ 20,382 $ 523 $ 1,557 $ 5,010 $ 849 $ 3,178 $ 16,282 $ 1,370 $ 49,151 Provision for loan and lease losses 1,038 43 2,005 (693 ) 242 1,947 3,086 16,882 24,550 Charge-offs (799 ) — — — — (832 ) (1,149 ) (1,706 ) (4,486 ) Recoveries 404 — — 109 — 129 — 1,889 2,531 Balance at March 31, 2019 $ 21,025 $ 566 $ 3,562 $ 4,426 $ 1,091 $ 4,422 $ 18,219 $ 18,435 $ 71,746 The following tables present our loans and leases evaluated individually for impairment by portfolio class: March 31, 2020 (Dollars in thousands) Unpaid Principal Balance Principal Balance Adjustment 1 Recorded Investment Accrued Interest / Origination Fees Total Related Allocation of General Allowance Related Allocation of Specific Allowance With no related allowance recorded: Single family real estate secured: Mortgage: In-house originated $ 2,538 $ 529 $ 2,009 $ 163 $ 2,172 $ — $ — Purchased 1,237 872 365 1 366 — — Auto and RV secured: In-house originated 549 386 163 8 171 — — Purchased — — — — — — — Other 4,606 4,606 — 437 437 — — With an allowance recorded: Single family real estate secured: Mortgage: In-house originated 50,294 301 49,993 1,036 51,029 247 — Purchased 1,929 190 1,739 103 1,842 10 — Multifamily secured - mortgage and financing: In-house originated 1,191 15 1,176 8 1,184 1 — Commercial real estate secured: In-house originated 1,921 12 1,909 19 1,928 2 — Auto and RV secured 186 10 176 3 179 11 — Other 406 — 406 — 406 33 — Total $ 64,857 $ 6,921 $ 57,936 $ 1,778 $ 59,714 $ 304 $ — As a % of total gross loans and leases 0.62 % 0.07 % 0.55 % 0.02 % 0.57 % — % — % June 30, 2019 (Dollars in thousands) Unpaid Principal Balance Principal Balance Adjustment 1 Recorded Investment Accrued Interest / Origination Fees Total Related Allocation of General Allowance Related Allocation of Specific Allowance With no related allowance recorded: Single family real estate secured: Mortgage: In-house originated $ 4,874 $ 1,775 $ 3,099 $ 255 $ 3,354 $ — $ — Purchased 2,237 1,142 1,095 — 1,095 — — Auto and RV secured: In-house originated 326 221 105 4 109 — — With an allowance recorded: Single family real estate secured: Mortgage: In-house originated 40,758 348 40,410 731 41,141 393 — Purchased 1,418 17 1,401 109 1,510 12 — Multifamily secured - mortgage and financing: In-house originated 2,108 — 2,108 9 2,117 3 — Auto and RV Secured 10 — 10 — 10 1 — Other 216 — 216 — 216 13 — Total $ 51,947 $ 3,503 $ 48,444 $ 1,108 $ 49,552 $ 422 $ — As a % of total gross loans and leases 0.55 % 0.04 % 0.51 % 0.01 % 0.52 % — % — % 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: March 31, 2020 Single Family Real Estate Secured (Dollars in thousands) Mortgage Warehouse Financing MF secured CRE secured Auto and RV secured Commercial & Industrial Other Total Allowance for loan and lease losses: Ending allowance balance attributable to loans and leases: Individually evaluated for impairment – general allowance $ 257 $ — $ — $ 1 $ 2 $ 11 $ — $ 33 $ 304 Collectively evaluated for impairment 20,744 1,429 4,457 5,974 1,543 6,004 23,039 23,603 86,793 Total ending allowance balance $ 21,001 $ 1,429 $ 4,457 $ 5,975 $ 1,545 $ 6,015 $ 23,039 $ 23,636 $ 87,097 Loans and leases: Loans and leases individually evaluated for impairment $ 54,106 $ — $ — $ 1,176 $ 1,909 $ 339 $ — $ 406 $ 57,936 Loans and leases collectively evaluated for impairment 4,085,057 380,146 663,367 2,196,713 407,935 311,401 2,214,292 136,457 10,395,368 Principal loan and lease balance 4,139,163 380,146 663,367 2,197,889 409,844 311,740 2,214,292 136,863 10,453,304 Unaccreted discounts and loan and lease fees 9,170 — (3,071 ) 3,914 681 2,623 (3,374 ) (3,229 ) 6,714 Total recorded investment in loans and leases $ 4,148,333 $ 380,146 $ 660,296 $ 2,201,803 $ 410,525 $ 314,363 $ 2,210,918 $ 133,634 $ 10,460,018 June 30, 2019 Single Family Real Estate Secured (Dollars in thousands) Mortgage Warehouse Financing MF secured CRE secured Auto and RV secured Commercial & Industrial Other Total Allowance for loan and lease losses: Ending allowance balance attributable to loans and leases: Individually evaluated for impairment – general allowance $ 405 $ — $ — $ 3 $ — $ 1 $ — $ 13 $ 422 Collectively evaluated for impairment 20,890 996 5,331 4,094 1,044 4,817 17,514 1,977 56,663 Total ending allowance balance $ 21,295 $ 996 $ 5,331 $ 4,097 $ 1,044 $ 4,818 $ 17,514 $ 1,990 $ 57,085 Loans and leases: Loans and leases individually evaluated for impairment $ 46,005 $ — $ — $ 2,108 $ — $ 115 $ — $ 216 $ 48,444 Loans and leases collectively evaluated for impairment 4,235,075 301,999 518,560 1,946,405 326,154 290,779 1,662,629 119,265 9,400,866 Principal loan and lease balance 4,281,080 301,999 518,560 1,948,513 326,154 290,894 1,662,629 119,481 9,449,310 Unaccreted discounts and loan and lease fees 8,790 — (1,773 ) 5,090 649 2,631 (3,188 ) (22,300 ) (10,101 ) Total recorded investment in loans and leases $ 4,289,870 $ 301,999 $ 516,787 $ 1,953,603 $ 326,803 $ 293,525 $ 1,659,441 $ 97,181 $ 9,439,209 Credit Quality Disclosures. Nonaccrual loans and leases consisted of the following as of the dates indicated: (Dollars in thousands) March 31, June 30, Single Family Real Estate Secured: Mortgage: In-house originated $ 52,002 $ 43,509 Purchased 2,104 2,496 Multifamily secured - mortgage and financing: In-house originated 1,176 2,108 Commercial real estate secured: In-house originated 1,909 — Total nonaccrual loans secured by real estate 57,191 48,113 Auto and RV secured 339 115 Other 406 216 Total nonaccrual loans and leases $ 57,936 $ 48,444 Nonaccrual loans and leases to total loans and leases 0.55 % 0.51 % Approximately 0.55% of our nonaccrual loans and leases at March 31, 2020 were considered TDRs, compared to 1.29% at June 30, 2019 . Borrowers that make timely payments after TDRs are considered non-performing for at least six months . Generally, after six months of timely payments, those TDRs are reclassified from the nonaccrual loan and lease category to the performing loan and lease category and any previously deferred interest income is recognized. Approximately 93.39% of the Bank’s nonaccrual loans and leases are single family first mortgages, repaid and written down to 91.37% in aggregate, of the original loan value of the underlying properties. The following tables present the outstanding unpaid balance of loans and leases that are performing and nonaccrual by portfolio class: March 31, 2020 Single Family Real Estate Secured (Dollars in thousands) Mortgage Warehouse Financing MF secured CRE secured Auto and RV secured Commercial & Industrial Other Total Performing $ 4,085,057 $ 380,146 $ 663,367 $ 2,196,713 $ 407,935 $ 311,401 $ 2,214,292 $ 136,457 $ 10,395,368 Nonaccrual 54,106 — — 1,176 1,909 339 — 406 57,936 Total $ 4,139,163 $ 380,146 $ 663,367 $ 2,197,889 $ 409,844 $ 311,740 $ 2,214,292 $ 136,863 $ 10,453,304 June 30, 2019 Single Family Real Estate Secured (Dollars in thousands) Mortgage Warehouse Financing MF secured CRE secured Auto and RV secured Commercial & Industrial Other Total Performing $ 4,235,075 $ 301,999 $ 518,560 $ 1,946,405 $ 326,154 $ 290,779 $ 1,662,629 $ 119,265 $ 9,400,866 Nonaccrual 46,005 — — 2,108 — 115 — 216 48,444 Total $ 4,281,080 $ 301,999 $ 518,560 $ 1,948,513 $ 326,154 $ 290,894 $ 1,662,629 $ 119,481 $ 9,449,310 From time to time the Company modifies loan terms temporarily for borrowers who are experiencing financial stress. These loans are performing and accruing and will generally return to the original loan terms after the modification term expires. The Company had no TDRs classified as performing loans at March 31, 2020 or June 30, 2019 . There have been no loan modifications as a result of the COVID-19 pandemic as of March 31, 2020. Under the guidelines set forth in the CARES Act, for our borrowers who are one or less payments past due on April 1, 2020, the Company may delay payments for an agreed upon timeframe, depending on each individual borrower’s characteristics. Credit Quality Indicators The Company categorizes loans and leases into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans and leases individually by classifying the loans and leases based on credit risk. The Company uses the following definitions for risk ratings. Pass. Loans and leases classified as pass are well protected by the current net worth and paying capacity of the obligor or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner. Special Mention . Loans and leases classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease or of the institution’s credit position at some future date. Substandard . Loans and leases classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans and leases so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful . Loans and leases classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The Company reviews and grades loans and leases following a continuous review process, featuring coverage of all loan and lease types and business lines at least quarterly. Continuous reviewing provides more effective risk monitoring because it immediately tests for potential impacts caused by changes in personnel, policy, products or underwriting standards. The following table presents the composition of the Company’s loan and lease portfolio by credit quality indicators: March 31, 2020 (Dollars in thousands) Pass Special Substandard Doubtful Total Single family real estate secured: Mortgage In-house originated $ 3,982,119 $ 70,561 $ 54,940 $ — $ 4,107,620 Purchased 29,279 160 2,104 — 31,543 Warehouse 363,874 16,272 — — 380,146 Financing 596,593 51,479 15,295 — 663,367 Multifamily secured - mortgage and financing In-house originated 2,138,805 12,064 2,047 — 2,152,916 Purchased 44,056 — 917 — 44,973 Commercial real estate secured - mortgage In-house originated 401,579 — 1,909 — 403,488 Purchased 6,356 — — — 6,356 Auto and RV secured 310,924 234 582 — 311,740 Commercial & Industrial 2,173,632 30,935 9,725 — 2,214,292 Other 136,296 161 406 — 136,863 Total $ 10,183,513 $ 181,866 $ 87,925 $ — $ 10,453,304 As a % of total gross loans and leases 97.4 % 1.7 % 0.8 % — % 100.0 % June 30, 2019 (Dollars in thousands) Pass Special Substandard Doubtful Total Single family real estate secured: Mortgage In-house originated $ 4,157,665 $ 37,219 $ 44,568 $ — $ 4,239,452 Purchased 38,534 598 2,496 — 41,628 Warehouse 301,999 — — — 301,999 Financing 440,298 21,600 56,662 — 518,560 Multifamily secured - mortgage and financing In-house originated 1,890,524 427 2,108 — 1,893,059 Purchased 54,514 — 940 — 55,454 Commercial real estate secured - mortgage In-house originated 318,629 — — — 318,629 Purchased 7,525 — — — 7,525 Auto and RV secured 290,691 68 135 — 290,894 Commercial & Industrial 1,660,821 1,722 86 — 1,662,629 Other 119,036 229 216 — 119,481 Total $ 9,280,236 $ 61,863 $ 107,211 $ — $ 9,449,310 As a % of total gross loans and leases 98.2 % 0.7 % 1.1 % — % 100.0 % The Company considers the performance of the loan and lease portfolio and its impact on the allowance for loan and lease losses. The Company also evaluates credit quality based on the aging status of its loans and leases. During the year, the Company holds certain short-term loans that do not have a fixed maturity date that are treated as delinquent if not paid in full 90 days after the origination date. The following table provides the outstanding unpaid balance of loans and leases that are past due 30 days or more by portfolio class as of the period indicated: March 31, 2020 (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 $ 20,480 $ 17,146 $ 48,738 $ 86,364 Purchased 62 457 850 1,369 Multifamily secured - mortgage and financing 639 423 — 1,062 Auto and RV secured 1,804 356 212 2,372 Commercial & Industrial — — — — Other 247 193 341 781 Total $ 23,232 $ 18,575 $ 50,141 $ 91,948 As a % of total gross loans and leases 0.22 % 0.18 % 0.48 % 0.88 % June 30, 2019 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Single family real estate secured: Mortgage In-house originated $ 12,008 $ 15,616 $ 35,700 $ 63,324 Purchased 228 — 1,458 1,686 Multifamily secured - mortgage and financing 1,684 — 1,588 3,272 Auto and RV secured 476 155 17 648 Other 250 229 216 695 Total $ 14,646 $ 16,000 $ 38,979 $ 69,625 As a % of total gross loans and leases 0.15 % 0.17 % 0.41 % 0.74 % |
LEASES
LEASES | 9 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
LEASES | LEASES The Company determines if an arrangement is a lease at inception. Operating leases with a term of greater than one year are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities on the Company’s unaudited condensed consolidated balance sheets. The Company has lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. Leases of low-value assets are assessed on a lease-by-lease basis to determine the need for balance sheet capitalization. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized on the lease commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses the incremental borrowing rate commensurate with the lease term based on the information available at the lease commencement date in determining the present value of lease payments. No significant judgments or assumptions were involved in developing the estimated operating lease liabilities as the Company’s operating lease liabilities largely represent the future rental expenses associated with operating leases, and the incremental borrowing rates are based on publicly available interest rates. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease. These options to extend or terminate are assessed on a lease-by-lease basis, and the ROU assets and lease liabilities are adjusted when it is reasonably certain that an option will be exercised. Rental expense for lease payments is recognized on a straight-line basis over the lease term and is included in occupancy and equipment, net within our unaudited condensed consolidated statements of operations. The components of lease expense were as follows: (Dollars in thousands) Three Months Ended March 31, 2020 For the Nine Months Ended March 31, 2020 Operating Lease Expense $ 2,654 $ 7,889 Supplemental cash flow information related to leases was as follows: (Dollars in thousands) March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities for operating leases: Operating cash flows $ 5,993 ROU assets obtained in the exchange for lease liabilities: ROU assets obtained in exchange for lease liabilities $ — ROU assets recognized upon adoption of new lease standard $ 77,794 Supplemental balance sheet information related to leases was as follows: (Dollars in thousands) March 31, 2020 Operating lease right-of-use assets $ 75,237 Operating lease liabilities $ 78,637 Weighted-average remaining lease term (in years): Operating leases 9.33 years Weighted-average discount rate: Operating leases 2.90 % Maturities of lease liabilities at March 31, 2020 were as follows: (Dollars in thousands) Operating Leases Remainder of 2020 $ 2,420 2021 8,878 2022 9,546 2023 9,817 2024 9,420 Thereafter 50,742 Total lease payments 90,823 Less: present value discount (12,186 ) Total Lease Liability $ 78,637 |
EQUITY AND STOCK-BASED COMPENSA
EQUITY AND STOCK-BASED COMPENSATION | 9 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
EQUITY AND STOCK-BASED COMPENSATION | EQUITY AND STOCK-BASED COMPENSATION Common Stock Repurchases. On March 17, 2016, the Board of Directors of the Company (the “Board”), authorized a program to repurchase up to $100 million of common stock and extended the program by $100 million on August 2, 2019. The Company may repurchase shares on the open market or through privately negotiated transactions at times and prices considered appropriate, at the discretion of the Company, and subject to its assessment of alternative uses of capital, stock trading price, general market conditions and regulatory factors. The repurchase program does not obligate the Company to acquire any specific number of shares. The share repurchase program will continue in effect until terminated by the Board. During the nine months ended March 31, 2020 , the Company repurchased a total of $35.8 million , or 1,815,783 common shares at an average price of $19.74 per share. The Company has $72.5 million remaining under the Board authorized stock repurchase program. The Company accounts for treasury stock using the cost method as a reduction of stockholders’ equity in the accompanying unaudited condensed consolidated financial statements. Restricted Stock Units. During the nine months ended March 31, 2020 and 2019 , the Company granted 710,032 and 1,101,724 restricted stock unit awards (“RSUs”) to employees and directors, respectively. RSUs granted during these quarters generally vest over three years, one-third on each anniversary date, except for any RSUs granted to the Company’s CEO, which vest one-fourth on each fiscal year end. The Company’s income before income taxes and net income for the nine months ended March 31, 2020 and 2019 include stock award expense of $16,786 and $17,979 , with total income tax benefit of $4,880 and $4,773 , respectively. The Company recognizes compensation expense based upon the grant-date fair value divided by the vesting and the service period between each vesting date. At March 31, 2020 , unrecognized compensation expense related to non-vested awards aggregated to $36,607 and is expected to be recognized in future periods as follows: (Dollars in thousands) Stock Award Compensation Expense For the fiscal year remainder: 2020 $ 5,384 2021 16,486 2022 10,057 2023 3,514 2024 734 Thereafter 432 Total $ 36,607 The following table presents the status and changes in restricted stock units for the periods indicated: Restricted Stock Units Weighted-Average Grant-Date Fair Value Non-vested balance at June 30, 2018 1,233,731 $ 24.84 Granted 1,103,249 34.68 Vested (699,223 ) 26.74 Canceled (90,909 ) 29.46 Non-vested balance at June 30, 2019 1,546,848 $ 30.73 Granted 710,032 24.09 Vested (455,424 ) 27.71 Canceled (98,757 ) 29.46 Non-vested balance at March 31, 2020 1,702,699 $ 28.84 The total fair value of shares vested for the three and nine months ended March 31, 2020 was $2,374 and $11,906 . The total fair value of shares vested for the three and nine months ended March 31, 2019 was $421 and $13,609 . |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Earnings per common share (“EPS”) are presented under two formats: basic EPS and diluted EPS. Basic EPS is computed by dividing the net income attributable to common stock (net income after deducting dividends on preferred stock) by the sum of the weighted-average number of common shares outstanding during the year and the unvested average of participating RSUs. Diluted EPS is computed by dividing the sum of net income attributable to common stock and dividends on diluted preferred stock by the sum of the weighted-average number of common shares outstanding during the year and the impact of dilutive potential common shares, such as nonparticipating RSUs, stock options and convertible preferred stock. The Company accounts for unvested stock-based compensation awards containing non-forfeitable rights to dividends or dividend equivalents (collectively, “dividends”) as participating securities and includes the awards in the EPS calculation using the two-class method. The Company had granted restricted stock units under the 2004 Stock Incentive Plan to certain directors and employees, which entitle the recipients to receive non-forfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities. Under the two class method, all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities, based on their respective rights to receive dividends. Under the 2014 Stock Incentive Plan, RSUs have no stockholder rights, meaning they are not entitled to dividends and are considered nonparticipating. These nonparticipating RSUs are not included in the basic EPS calculation and are included in the diluted EPS calculation using the treasury stock method. The following table presents the calculation of basic and diluted EPS: Three Months Ended Nine Months Ended March 31, March 31, (Dollars in thousands, except per share data) 2020 2019 2020 2019 Earnings Per Common Share Net income $ 56,057 $ 38,821 $ 138,138 $ 114,497 Preferred stock dividends (77 ) (77 ) (232 ) (232 ) Net income attributable to common stockholders $ 55,980 $ 38,744 $ 137,906 $ 114,265 Average common shares outstanding 60,967,892 61,259,419 61,176,715 62,130,598 Total qualifying shares 60,967,892 61,259,419 61,176,715 62,130,598 Earnings per common share $ 0.92 $ 0.63 $ 2.25 $ 1.84 Diluted Earnings Per Common Share Dilutive net income attributable to common stockholders $ 55,980 $ 38,744 $ 137,906 $ 114,265 Average common shares issued and outstanding 60,967,892 61,259,419 61,176,715 62,130,598 Dilutive effect of average unvested RSUs 555,621 330,243 635,130 466,685 Total dilutive common shares outstanding 61,523,513 61,589,662 61,811,845 62,597,283 Diluted earnings per common share $ 0.91 $ 0.63 $ 2.23 $ 1.83 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES COVID-19 Impact. The Company is closely monitoring the rapid developments of and uncertainties caused by the COVID-19 pandemic. In response to the changes in economic and business conditions as a result of the COVID-19 pandemic, the Company has taken the following actions to support customers, employees, partners and shareholders: • Actively communicating with borrowers and partners to assess individual needs; • Participating as a lender in the Paycheck Protection Program (PPP) and evaluating various components of the CARES Act applicability to the Company; • Provided secure and efficient remote work options for our team members; • Increasing provisions for loan and lease losses as a result of a weakening economy and reduced business activities; • Tightening underwriting standards; • Reallocated personnel to increase resources for customer service and portfolio management; and • Limiting business travel. There have been no loan modifications as a result of the COVID-19 pandemic as of March 31, 2020. Under the guidelines set forth in the CARES Act, for our borrowers who are one or less payments past due on April 1, 2020, the Company may delay payments for an agreed upon timeframe, depending on each individual borrower’s characteristics. Credit-Related Financial Instruments . The Company is a party to credit-related financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are commitments to extend credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the unaudited condensed consolidated balance sheets. The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance-sheet instruments. At March 31, 2020 , the Company had commitments to originate $132,672 in fixed rate loans and leases and $703,457 in variable rate loans, totaling an aggregate outstanding principal balance of $836,129 . For March 31, 2020 , the Company’s fixed rate commitments to originate had a weighted-average rate of 2.94% . At March 31, 2020 , the Company also had commitments to sell $166,080 in fixed rate loans and $0 in variable rate loans, totaling an aggregate outstanding principal balance of $166,080 . Commitments to extend credit are agreements to lend to a customer so long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer. In the normal course of business, Axos Clearing’s customer activities involve the execution, settlement, and financing of various customer securities transactions. These activities may expose Axos Clearing to off-balance-sheet risk in the event the customer or other broker is unable to fulfill its contracted obligations and Axos Clearing has to purchase or sell the financial instrument underlying the contract at a loss. Axos Clearing’s clearing agreements with broker-dealers for which it provides clearing services requires them to indemnify Axos Clearing if customers fail to satisfy their contractual obligation. Litigation . On October 15, 2015, the Company, its Chief Executive Officer and its Chief Financial Officer were named defendants in a putative class action lawsuit styled Golden v. BofI Holding, Inc., et al, and brought in United States District Court for the Southern District of California (the “Golden Case”). On November 3, 2015, the Company, its Chief Executive Officer and its Chief Financial Officer were named defendants in a second putative class action lawsuit styled Hazan v. BofI Holding, Inc., et al, and also brought in the United States District Court for the Southern District of California (the “Hazan Case”). On February 1, 2016, the Golden Case and the Hazan Case were consolidated as In re BofI Holding, Inc. Securities Litigation, Case #: 3:15-cv-02324-GPC-KSC (the “Class Action”), and the Houston Municipal Employees Pension System was appointed lead plaintiff. The plaintiffs allege that the Company and other named defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by failing to disclose wrongful conduct that was alleged in a complaint filed in connection with a wrongful termination of employment lawsuit filed on October 13, 2015 (the “Employment Matter”) and that as a result the Company’s statements regarding its internal controls, as well as portions of its financial statements, were false and misleading. On March 21, 2018, the Court entered a final order dismissing the Class Action with prejudice. Subsequently, the plaintiff filed a notice of appeal and opening brief, the Company has filed its answering brief and argument in the appeal from dismissal was held. On April 3, 2017, the Company, its Chief Executive Officer and its Chief Financial Officer were named defendants in a putative class action lawsuit styled Mandalevy v. BofI Holding, Inc., et al, and brought in United States District Court for the Southern District of California (the “Mandalevy Case”). The Mandalevy Case seeks monetary damages and other relief on behalf of a putative class that has not been certified by the Court. The complaint in the Mandalevy Case (the “Mandalevy Complaint”) alleges a class period that differs from that alleged in the First Class Action, and that the Company and other named defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by failing to disclose wrongful conduct that was alleged in a March 2017 media article. The Mandalevy Case has not been consolidated into the First Class Action. On December 7, 2018, the Court entered a final order granting the defendants’ motion and dismissing the Mandalevy Case with prejudice. Subsequently, the plaintiff filed a notice of appeal and opening brief and the Company filed its answering brief, on May 8, 2019. Oral arguments are scheduled via video for May 7, 2020. The Company and the other named defendants dispute the allegations of wrongdoing advanced by the plaintiffs in the Class Action, the Mandalevy Case, and in the Employment Matter, as well as those plaintiffs’ statement of the underlying factual circumstances, and are vigorously defending each case. In addition to the First Class Action and the Mandalevy Case, two separate shareholder derivative actions were filed in December, 2015, purportedly on behalf of the Company. The first derivative action, Calcaterra v. Garrabrants, et al , was filed in the United States District Court for the Southern District of California on December 3, 2015. The second derivative action, Dow v. Micheletti, et al , was filed in the San Diego County Superior Court on December 16, 2015. A third derivative action, DeYoung v. Garrabrants, et al , was filed in the United States District Court for the Southern District of California on January 22, 2016, a fourth derivative action, Yong v. Garrabrants, et al , was filed in the United States District Court for the Southern District of California on January 29, 2016, a fifth derivative action, Laborers Pension Trust Fund of Northern Nevada v. Allrich et al , was filed in the United States District Court for the Southern District of California on February 2, 2016, and a sixth derivative action, Garner v. Garrabrants, et al , was filed in the San Diego County Superior Court on August 10, 2017. Each of these six derivative actions names the Company as a nominal defendant, and certain of its officers and directors as defendants. Each complaint sets forth allegations of breaches of fiduciary duties, gross mismanagement, abuse of control, and unjust enrichment against the defendant officers and directors. The plaintiffs in these derivative actions seek damages in unspecified amounts on the Company’s behalf from the officer and director defendants, certain corporate governance actions, and an award of their costs and attorney’s fees. The United States District Court for the Southern District of California ordered the four above-referenced derivative actions pending before it to be consolidated and appointed lead counsel in the consolidated action. On June 7, 2018, the Court entered an order granting defendant’s motion for judgment on the pleadings, but giving the plaintiffs limited leave to amend by June 28, 2018. The plaintiffs failed to file an amended complaint, and instead plaintiffs filed on June 28, 2018 a motion to stay the case pending resolution of the securities class action and Employment Matter. On August 10, 2018, defendants filed an opposition to plaintiffs’ motion. On September 11, 2018, the plaintiffs filed a second amended complaint. On October 16, 2018, defendants filed a motion to dismiss the second amended complaint. On October 16, 2018, defendants filed a motion to dismiss the second amended complaint. The Court dismissed the second amended complaint with prejudice on May 23, 2019. On June 20, 2019, the plaintiff filed a notice of appeal to the United States Court of Appeals for the Ninth Circuit and subsequently opening and answering briefs were filed. The two derivative actions pending before the San Diego County Superior Court have been consolidated and have been stayed by agreement of the parties. In view of the inherent difficulty of predicting the outcome of each legal action, particularly since claimants seek substantial or indeterminate damages, it is not possible to reasonably predict or estimate the eventual loss or range of loss, if any, related to each legal action. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS In the ordinary course of business, the Company has granted related party loans collateralized by real property to certain executive officers, directors and their affiliates. There were three new related party loans for approximate amount of $4.0 million funded under the provisions of the employee loan program and one refinance of an existing loan during the nine months ended March 31, 2020 , and one new loan and one refinances of existing loans during the nine months ended March 31, 2019 . |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The operating segments reported below are the segments of the Company for which separate financial information is available and for which segment results are evaluated regularly by the Chief Executive Officer in deciding how to allocate resources and in assessing performance. The Company operates through two operating segments: Banking Business and Securities Business. Banking Business. The Banking Business includes a broad range of banking services including online banking, concierge banking, prepaid card services, and mortgage, vehicle and unsecured lending through online and telephonic distribution channels to serve the needs of consumer and small businesses nationally. In addition, the Banking Business focuses on providing deposit products nationwide to industry verticals (e.g., Title and Escrow), cash management products to a variety of businesses, and commercial & industrial and commercial real estate lending to clients. The Banking Business also includes a bankruptcy trustee and fiduciary service that provides specialized software and consulting services to Chapter 7 bankruptcy and non-Chapter 7 trustees and fiduciaries. Securities Business. The Securities Business consists of two sets of products and services, securities services provided to third-party securities firms and investment management provided to consumers. Securities services includes fully disclosed clearing services through Axos Clearing to FINRA- and SEC-registered member firms for trade execution and clearance as well as back office services such as record keeping, trade reporting, accounting, general back-office support, securities and margin lending, reorganization assistance and custody of securities. Providing financing to our brokerage customers for their securities trading activities through margin loans that are collateralized by securities, cash, or other acceptable collateral. Securities lending activities that include borrowing and lending securities with other broker-dealers. These activities involve borrowing securities to cover short sales and to complete transactions in which clients have failed to deliver securities by the required settlement date, and lending securities to other broker dealers for similar purposes. Investment management includes our digital wealth management business, which provides our retail customers with investment management services through a comprehensive and flexible technology platform. There are no material inter-segment sales or transfers. The accounting policies used by each reportable segment are the same as those discussed in Note 1 - “Organizations and Summary of Significant Accounting Policies” in our Annual Report on Form 10-K for the year ended June 30, 2019 . All costs, except certain corporate administration costs and income taxes, have been allocated to the reportable segments. Therefore, combined amounts agree to the unaudited condensed consolidated totals. In order to reconcile the two segments to the unaudited condensed consolidated totals, the Company includes parent-only activities and intercompany eliminations. The following tables present the operating results, goodwill, and assets of the segments: For the Three Months Ended March 31, 2020 (Dollars in thousands) Banking Business Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 145,372 $ 3,954 $ (710 ) $ 148,616 Provision for loan losses 28,500 — — 28,500 Non-interest income 25,259 6,402 (119 ) 31,542 Non-interest expense 56,661 11,137 3,992 71,790 Income before taxes $ 85,470 $ (781 ) $ (4,821 ) $ 79,868 For the Three Months Ended March 31, 2019 (Dollars in thousands) Banking Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 127,072 $ 2,951 $ (854 ) $ 129,169 Provision for loan losses 19,000 — — 19,000 Non-interest income 21,027 5,071 — 26,098 Non-interest expense 52,224 23,102 6,489 81,815 Income before taxes $ 76,875 $ (15,080 ) $ (7,343 ) $ 54,452 Nine Months Ended March 31, 2020 (Dollars in thousands) Banking Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 350,184 $ 13,137 $ (2,982 ) $ 360,339 Provision for loan losses 35,700 — — 35,700 Non-interest income 57,274 19,087 (2,076 ) 74,285 Non-interest expense 160,547 32,656 11,019 204,222 Income before taxes $ 211,211 $ (432 ) $ (16,077 ) $ 194,702 Nine Months Ended March 31, 2019 (Dollars in thousands) Banking Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 307,564 $ 2,951 $ (2,347 ) $ 308,168 Provision for loan losses 24,550 — — 24,550 Non-interest income 54,462 5,071 — 59,533 Non-interest expense 142,291 23,102 20,277 185,670 Income before taxes $ 195,185 $ (15,080 ) $ (22,624 ) $ 157,481 As of March 31, 2020 (Dollars in thousands) Banking Business Securities Business Corporate/Eliminations Axos Consolidated Goodwill $ 35,721 $ 35,501 $ — $ 71,222 Total Assets $ 11,543,844 $ 522,670 $ 93,405 $ 12,159,919 As of March 31, 2019 (Dollars in thousands) Banking Business Securities Business Corporate/Eliminations Axos Consolidated Goodwill $ 35,721 $ 34,933 $ — $ 70,654 Total Assets $ 10,166,064 $ 701,102 $ 8,395 $ 10,875,561 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Consolidation | The condensed consolidated financial statements include the accounts of Axos Financial, Inc. (“Axos”) and its wholly owned subsidiaries, Axos Bank (the “Bank”) and Axos Nevada Holding, LLC (the “Axos Nevada Holding” and collectively, the “Company”). Axos Nevada Holding wholly owns its subsidiary Axos Securities, LLC, which wholly owns subsidiaries Axos Clearing LLC (“Axos Clearing”), a clearing broker dealer, Axos Invest, Inc., a registered investment advisor, and Axos Invest LLC, an introducing broker dealer. All significant intercompany balances and transactions have been eliminated in consolidation. |
Basis of Presentation | The accompanying interim condensed consolidated financial statements, presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), are unaudited and reflect all adjustments which, in the opinion of management, are necessary for a fair statement of financial condition and results of operations for the interim periods. All adjustments are of a normal and recurring nature. Results for the nine months ended March 31, 2020 are not necessarily indicative of results that may be expected for any other interim period or for the year as a whole. Certain information and note disclosures normally included in the audited annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) with respect to interim financial reporting. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended June 30, 2019 |
Reclassification | Certain reclassifications to dividend and interest income line items for the nine months ended March 31, 2020 have been made to conform to the current period presentation. The reclassifications had no effect on total dividend and interest income, net interest income, net income nor stockholders’ equity for any period. |
Business Segments | Business Segments. The Company determines reportable segments based on the services offered, the significance of the services offered, the significance of those services to the Company’s financial condition and operating results and management’s regular review of the operating results of those services. The Company operates through two operating segments: Banking Business and Securities Business. Please refer to “Note 12 - Segment Reporting” for further information on the reporting for the Company’s two business segments. |
Leases | Lessee Arrangements. Substantially all of the Company’s lessee arrangements are operating leases. Under these arrangements, the Company records right-of-use assets and lease liabilities at lease commencement. Right-of-use assets are reported in other assets on the March 31, 2020 unaudited Condensed Consolidated Balance Sheet, and the related lease liabilities are reported in accounts payable and accrued liabilities and other liabilities. All leases are recorded on the unaudited Condensed Consolidated Balance Sheet except leases with an initial term less than 12 months for which the Company made the short-term lease election. Lease expense is recognized on a straight-line basis over the lease term and is recorded in occupancy and equipment expense in the unaudited Condensed Consolidated Statements of Income. The Company made an accounting policy election not to separate lease and non-lease components of a contract that is or contains a lease for its real estate and equipment leases. As such, lease payments represent payments on both lease and non-lease components. At lease commencement, lease liabilities are recognized based on the present value of the remaining lease payments and discounted using the Company’s incremental borrowing rate. Right-of-use assets initially equal the lease liability, adjusted for any lease payments made prior to lease commencement and for any lease incentives. Leases. On July 1, 2019, the Company adopted Accounting Standards Codification (“ASC”) 842, Leases |
Leases | Leases. On July 1, 2019, the Company adopted Accounting Standards Codification (“ASC”) 842, Leases (Topic 842), which required lessees to recognize operating leases on the balance sheet as right-of-use assets and lease liabilities based on the value of the discounted future lease payments. Lessor accounting is largely unchanged. The Company elected to retain prior determinations of whether an existing contract contains a lease and how the lease should be classified. The Company elected to recognize leases existing on July 1, 2019 through a modified retrospective transition approach. The Company will not adjust comparative periods based on the newly adopted guidance. Upon adoption, the Company also recognized right-of-use assets $77.8 million and lease liabilities of $79.7 million . Lessor Arrangements. The Company provides equipment financing to its customers through a variety of lessor arrangements. Direct financing leases and sales-type leases are carried at the aggregate of lease payments receivable plus the estimated residual value of the leased property less unearned income, which is accreted to interest income over the lease terms using methods that approximate the interest method. Operating lease income is recognized on a straight-line basis. Leases generally do not contain non-lease components. |
New Accounting Pronouncements | Accounting Standards Issued But Not Yet Adopted In June 2016, the FASB issued ASU 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“Topic 326”), 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. Topic 326 also requires certain incremental disclosures. Topic 326 should be applied on a modified-retrospective transition approach that would require a cumulative-effect adjustment to the opening retained earnings in the consolidated balance sheet 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 beginning July 1, 2020. The Company’ working group has reviewed the Company’s methodology and model with third-party consultants, is in the process of making recommended adjustments, and is progressing in accordance with its implementation plan. The Company expects Topic 326 to have a material impact on the Company’s consolidated financial statements. |
Fair Value Measurement | Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC Topic 820, Fair Value Measurement |
Credit Quality Indicators | Credit Quality Indicators The Company categorizes loans and leases into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans and leases individually by classifying the loans and leases based on credit risk. The Company uses the following definitions for risk ratings. Pass. Loans and leases classified as pass are well protected by the current net worth and paying capacity of the obligor or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner. Special Mention . Loans and leases classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease or of the institution’s credit position at some future date. Substandard . Loans and leases classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans and leases so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful . Loans and leases classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The Company reviews and grades loans and leases following a continuous review process, featuring coverage of all loan and lease types and business lines at least quarterly. Continuous reviewing provides more effective risk monitoring because it immediately tests for potential impacts caused by changes in personnel, policy, products or underwriting standards. |
Earnings Per Common Share | Earnings per common share (“EPS”) are presented under two formats: basic EPS and diluted EPS. Basic EPS is computed by dividing the net income attributable to common stock (net income after deducting dividends on preferred stock) by the sum of the weighted-average number of common shares outstanding during the year and the unvested average of participating RSUs. Diluted EPS is computed by dividing the sum of net income attributable to common stock and dividends on diluted preferred stock by the sum of the weighted-average number of common shares outstanding during the year and the impact of dilutive potential common shares, such as nonparticipating RSUs, stock options and convertible preferred stock. The Company accounts for unvested stock-based compensation awards containing non-forfeitable rights to dividends or dividend equivalents (collectively, “dividends”) as participating securities and includes the awards in the EPS calculation using the two-class method. The Company had granted restricted stock units under the 2004 Stock Incentive Plan to certain directors and employees, which entitle the recipients to receive non-forfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities. Under the two class method, all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities, based on their respective rights to receive dividends. Under the 2014 Stock Incentive Plan, RSUs have no stockholder rights, meaning they are not entitled to dividends and are considered nonparticipating. These nonparticipating RSUs are not included in the basic EPS calculation and are included in the diluted EPS calculation using the treasury stock method. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Non-interest Income, Segregated by Revenue Streams | The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the periods indicated: Three Months Ended Nine Months Ended March 31, March 31, (Dollars in thousands, except per share data) 2020 2019 2020 2019 Non-interest income Deposit service fees $ 727 $ 404 $ 3,564 $ 3,083 Card fees 1,283 1,174 3,904 4,094 Broker-dealer clearing fees 6,329 1,567 17,540 1,567 Bankruptcy trustee and fiduciary service fees 15 1,514 1,239 5,724 Non-interest income (in-scope of Topic 606) 8,354 4,659 26,247 14,468 Non-interest income (out-of-scope of Topic 606) 23,188 21,439 48,038 45,065 Total non-interest income $ 31,542 $ 26,098 $ 74,285 $ 59,533 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The consideration paid for COR Securities common equity and the provisional fair values of acquired identifiable assets and liabilities assumed as of the Acquisition Date were as follows: (Dollars in thousands) January 28, 2019 ASSETS Cash and due from banks $ 16,604 Cash segregated for regulatory purposes 142,016 Securities, available for sale 9,585 Stock of the regulatory agencies, at cost 2,431 Securities borrowed 157,898 Customer, broker-dealer and clearing receivables 234,352 Other assets 5,487 Total identifiable assets $ 568,373 LIABILITIES AND STOCKHOLDERS’ EQUITY Notes payable to banks $ 85,100 Securities loaned 203,041 Customer, broker-dealer and clearing payables 240,110 Accounts payable and accrued liabilities 7,383 Total identifiable liabilities $ 535,634 Goodwill $ 35,501 Intangible assets 20,120 Total cash purchase price $ 80,860 Notes issued $ 7,500 Total fair value of consideration paid 88,360 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis at March 31, 2020 and June 30, 2019 . Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: March 31, 2020 (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: Municipal $ — $ 919 $ — $ 919 Securities—Available-for-Sale: Agency Debt 1 $ — $ 1,700 $ — $ 1,700 Agency RMBS 1 — 14,443 — 14,443 Non-Agency RMBS 2 — — 11,706 11,706 Municipal — 10,389 — 10,389 Asset-backed securities and structured notes — 153,150 — 153,150 Total—Securities—Available-for-Sale $ — $ 179,682 $ 11,706 $ 191,388 Loans Held for Sale $ — $ 40,236 $ — $ 40,236 Mortgage servicing rights $ — $ — $ 9,962 $ 9,962 Other assets—Derivative instruments $ — $ — $ 5,626 $ 5,626 LIABILITIES: Other liabilities—Derivative instruments $ — $ — $ 2,978 $ 2,978 June 30, 2019 (Dollars in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total ASSETS: Securities—Available-for-Sale: Agency Debt 1 $ — $ 1,685 $ — $ 1,685 Agency RMBS 1 — 9,586 — 9,586 Non-Agency RMBS 2 — — 13,025 13,025 Municipal — 21,162 — 21,162 Asset-backed securities and structured notes — 182,055 — 182,055 Total—Securities—Available-for-Sale $ — $ 214,488 $ 13,025 $ 227,513 Loans Held for Sale $ — $ 33,260 $ — $ 33,260 Mortgage servicing rights $ — $ — $ 9,784 $ 9,784 Other assets—Derivative instruments $ — $ — $ 1,978 $ 1,978 LIABILITIES: Other liabilities—Derivative instruments $ — $ — $ 732 $ 732 1 U.S. government-backed or government sponsored enterprises including Fannie Mae, Freddie Mac and Ginnie Mae. 2 Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option ARM mortgages. |
Schedule of Additional Information About Assets Measured at Fair Value on a Recurring Basis and for which the Company has Utilized Level 3 Inputs to Determine Fair Value | The following tables present additional information about assets measured at fair value on a recurring basis and for which the Company has utilized Level 3 inputs to determine fair value: For the Three Months Ended March 31, 2020 (Dollars in thousands) Securities – Available-for-Sale: Non-Agency RMBS Mortgage Servicing Rights Derivative Instruments, net Total Opening balance $ 12,787 $ 11,262 $ 1,017 $ 25,066 Total gains or losses for the period: Included in earnings—Mortgage banking income — (2,597 ) 1,631 (966 ) Included in other comprehensive income (548 ) — — (548 ) Purchases/originations — 1,297 — 1,297 Settlements (533 ) — — (533 ) Closing balance $ 11,706 $ 9,962 $ 2,648 $ 24,316 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ (2,597 ) $ 1,631 $ (966 ) For the Nine Months Ended March 31, 2020 (Dollars in thousands) Securities – Available-for-Sale: Non-Agency RMBS Mortgage Servicing Rights Derivative Instruments, net Total Opening Balance $ 13,025 $ 9,784 $ 1,246 $ 24,055 Total gains or losses for the period: Included in earnings—Mortgage banking income — (3,869 ) 1,402 (2,467 ) Included in other comprehensive income 292 — — 292 Purchases — 4,047 — 4,047 Settlements (1,611 ) — — (1,611 ) Closing balance $ 11,706 $ 9,962 $ 2,648 $ 24,316 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ (3,869 ) $ 1,402 $ (2,467 ) For the Three Months Ended March 31, 2019 (Dollars in thousands) Securities – Available-for-Sale: Non-Agency RMBS Mortgage Servicing Rights Derivative Instruments, net Total Opening balance $ 14,421 $ 11,215 $ 469 $ 26,105 Total gains or losses for the period: Included in earnings—Mortgage banking income — (1,199 ) 153 (1,046 ) Included in other comprehensive income (108 ) — — (108 ) Purchases/originations — 339 — 339 Settlements (370 ) — — (370 ) Other-than-temporary impairment (821 ) — — (821 ) Closing balance $ 13,122 $ 10,355 $ 622 $ 24,099 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ (1,199 ) $ 153 $ (1,046 ) For the Nine Months Ended March 31, 2019 (Dollars in thousands) Securities – Available-for-Sale: Non-Agency RMBS Mortgage Servicing Rights Derivative Instruments, net Total Opening Balance $ 17,443 $ 10,752 $ 953 $ 29,148 Total gains or losses for the period: Included in earnings—Sale of securities (133 ) — — (133 ) Included in earnings—Mortgage banking income — (2,053 ) (331 ) (2,384 ) Included in other comprehensive income 442 — — 442 Purchases — 1,656 — 1,656 Sales (2,058 ) — — (2,058 ) Settlements (1,751 ) — — (1,751 ) Other-than-temporary impairment (821 ) — — (821 ) Closing balance $ 13,122 $ 10,355 $ 622 $ 24,099 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ (133 ) $ (2,053 ) $ (331 ) $ (2,517 ) |
Schedule of Quantitative Information About Level 3 Fair Value Measurements | The table below summarizes the quantitative information about level 3 fair value measurements as of the dates indicated: March 31, 2020 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Securities – Non-agency RMBS $ 11,706 Discounted Cash Flow Projected Constant Prepayment Rate, 1.0 to 25.6% (8.9%) 1.5 to 20.0% (4.8%) Mortgage Servicing Rights $ 9,962 Discounted Cash Flow Projected Constant Prepayment Rate, 4.9 to 29.4% (10.9%) 1.9 to 8.3 (6.3) Derivative Instruments $ 2,648 Sales Comparison Approach Projected Sales Profit of Underlying Loans 0.0 to 0.8% (0.4%) June 30, 2019 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) Securities – Non-agency RMBS $ 13,025 Discounted Cash Flow Projected Constant Prepayment Rate, 2.9 to 32.5% (10.0%) 1.5 to 10.2% (4.4%) Mortgage Servicing Rights $ 9,784 Discounted Cash Flow Projected Constant Prepayment Rate, 4.7 to 33.7% (10.1%) 1.9 to 8.8 (6.4) Derivative Instruments $ 1,246 Sales Comparison Approach Projected Sales Profit of Underlying Loans 0.4 to 0.8% (0.6%) The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at the periods indicated: March 31, 2020 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Input Range (Weighted Average) 1 Impaired loans and leases: Single family real estate secured: Mortgage $ 54,106 Sales comparison approach Adjustment for differences between the comparable sales -15.3 to 18.5% (-0.4%) Multifamily real estate secured $ 1,176 Sales comparison approach, income approach, Discounted cash flows Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, capitalization rate 4.5 to 15.0% (9.3%) Commercial real estate secured $ 1,909 Sales comparison approach and income approach Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations 1.5 to 1.5% (1.5%) Auto and RV secured $ 339 Sales comparison approach Adjustment for differences between the comparable sales -63.2 to 13.2% (-15.4%) Other $ 406 Discounted cash flow Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate 0.0 to 0.0% (0.0%) Other real estate owned and foreclosed assets: Single family real estate $ 7,010 Sales comparison approach Adjustment for differences between the comparable sales 8.8 to 18.7% (16.7%) Autos and RVs $ 297 Sales comparison approach Adjustment for differences between the comparable sales -30.2 to 2.2% (-3.4%) 1 For impaired loans, other real estate owned and foreclosed assets the ranges shown may vary positively or negatively based on the comparable sales reported in the current appraisal. In certain instances, the range can be significant due to small sample sizes and in some cases the property being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted. June 30, 2019 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Input Range (Weighted Average) 1 Impaired loans and leases: Single family real estate secured: Mortgage $ 46,005 Sales comparison approach Adjustment for differences between the comparable sales -83.2 to 80% (-2.0%) Multifamily real estate secured $ 2,108 Sales comparison approach and income approach Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, capitalization rate -87.9 to 102.7% (-0.1%) Auto and RV secured $ 115 Sales comparison approach Adjustment for differences between the comparable sales -49.0 to 24.0% (2.6%) Other $ 216 Discounted cash flow Projected Constant Prepayment Rate, 0.0 to 0.0% (0.0%) 0.0 to 10.0% (5.0%) 100.0 to 100.0% (100.0%) -2.2 to 1.1% (-0.6%) Other real estate owned and foreclosed assets: Single family real estate $ 7,449 Sales comparison approach Adjustment for differences between the comparable sales -46.3 to 53.0% (5.3%) Autos and RVs $ 36 Sales comparison approach Adjustment for differences between the comparable sales -13.6 to 56.3% (8.0%) 1 For impaired loans, other real estate owned and foreclosed assets the ranges shown may vary positively or negatively based on the comparable sales reported in the current appraisal. In certain instances, the range can be significant due to small sample sizes and in some cases the property being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted. |
Schedule of Fair Value Assets Measured on Nonrecurring Basis | The table below summarizes assets measured for impairment on a non-recurring basis: March 31, 2020 (Dollars in thousands) Quoted Prices in Significant Other Significant Balance Impaired Loans and Leases: Single family real estate secured: Mortgage $ — $ — $ 54,106 $ 54,106 Multifamily real estate secured — — 1,176 1,176 Commercial real estate secured — — 1,909 1,909 Auto and RV secured — — 339 339 Other — — 406 406 Total $ — $ — $ 57,936 $ 57,936 Other real estate owned and foreclosed assets: Single family real estate $ — $ — $ 7,010 $ 7,010 Autos and RVs — — 297 297 Total $ — $ — $ 7,307 $ 7,307 June 30, 2019 (Dollars in thousands) Quoted Prices in Significant Other Significant Balance Impaired Loans and Leases: Single family real estate secured: Mortgage $ — $ — $ 46,005 $ 46,005 Multifamily real estate secured — — 2,108 2,108 Auto and RV secured — — 115 115 Other — — 216 216 Total $ — $ — $ 48,444 $ 48,444 Other real estate owned and foreclosed assets: Single family real estate $ — $ — $ 7,449 $ 7,449 Autos and RVs — — 36 36 Total $ — $ — $ 7,485 $ 7,485 |
Schedule of Aggregate Fair Value, Contractual Balance, and Gains of Loans Held For Sale | As of March 31, 2020 and June 30, 2019 , the aggregate fair value of loans held for sale, carried at fair value, contractual balance (including accrued interest), and unrealized gain was as follows: (Dollars in thousands) March 31, 2020 June 30, 2019 Aggregate fair value $ 40,236 $ 33,260 Contractual balance 38,724 32,342 Unrealized gain $ 1,512 $ 918 The total amount of gains and losses from changes in fair value included in earnings for the period indicated below for loans held for sale were: For the Three Months Ended For the Nine Months Ended March 31, March 31, (Dollars in thousands) 2020 2019 2020 2019 Interest income $ 216 $ 258 $ 812 $ 824 Change in fair value 2,228 134 1,976 (577 ) Total $ 2,444 $ 392 $ 2,788 $ 247 |
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments at Period-end | The carrying amounts and estimated fair values of financial instruments at March 31, 2020 and June 30, 2019 were as follows: March 31, 2020 Fair Value (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 854,199 $ 854,199 $ — $ — $ 854,199 Securities trading 919 — 919 — 919 Securities available-for-sale 191,388 — 179,682 11,706 191,388 Loans held for sale, at fair value 40,236 — 40,236 — 40,236 Loans held for sale, at lower of cost or fair value 29 — — 29 29 Loans and leases held for investment—net 10,372,921 — — 10,926,375 10,926,375 Securities borrowed 53,816 — — 53,827 53,827 Customer, broker-dealer and clearing receivables 187,353 — — 187,447 187,447 Mortgage servicing rights 9,962 — — 9,962 9,962 Financial liabilities: Total deposits 9,567,338 — 9,312,380 — 9,312,380 Advances from the Federal Home Loan Bank 770,500 — 780,580 — 780,580 Borrowings, subordinated notes and debentures 76,285 — 77,104 — 77,104 Securities loaned 76,587 — — 76,587 76,587 Customer, broker-dealer and clearing payables 318,100 — — 291,679 291,679 June 30, 2019 Fair Value (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 857,368 $ 857,368 $ — $ — $ 857,368 Securities available-for-sale 227,513 — 214,488 13,025 227,513 Loans held for sale, at fair value 33,260 — 33,260 — 33,260 Loans held for sale, at lower of cost or fair value 4,800 — — 4,990 4,990 Loans and leases held for investment—net 9,382,124 — — 9,630,061 9,630,061 Securities borrowed 144,706 — — 144,720 144,720 Customer, broker-dealer and clearing receivables 203,192 — — 203,355 203,355 Mortgage servicing rights 9,784 — — 9,784 9,784 Financial liabilities: Total deposits 8,983,173 — 8,758,861 — 8,758,861 Advances from the Federal Home Loan Bank 458,500 — 461,156 — 461,156 Borrowings, subordinated notes and debentures 168,929 — 169,212 — 169,212 Securities loaned 198,356 — — 198,197 198,197 Customer, broker-dealer and clearing payables 238,604 — — 229,987 229,987 |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost, Carrying Amount and Fair Value of Available-for-sale Securities | The amortized cost, carrying amount and fair value for the trading and available-for-sale securities at March 31, 2020 and June 30, 2019 were: March 31, 2020 Trading Available-for-sale (Dollars in thousands) Fair Value Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mortgage-backed securities (RMBS): U.S. agencies 1 $ — $ 13,933 $ 510 $ — $ 14,443 Non-agency 2 — 11,878 388 (560 ) 11,706 Total mortgage-backed securities — 25,811 898 (560 ) 26,149 Non-RMBS: U.S. agencies 1 — 1,700 — — 1,700 Municipal 919 10,544 28 (183 ) 10,389 Asset-backed securities and structured notes — 156,315 495 (3,660 ) 153,150 Total Non-RMBS 919 168,559 523 (3,843 ) 165,239 Total debt securities $ 919 $ 194,370 $ 1,421 $ (4,403 ) $ 191,388 June 30, 2019 Trading Available-for-sale (Dollars in thousands) Fair Value Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mortgage-backed securities (RMBS): U.S. agencies 1 $ — $ 9,486 $ 179 $ (79 ) $ 9,586 Non-agency 2 — 13,489 226 (690 ) 13,025 Total mortgage-backed securities — 22,975 405 (769 ) 22,611 Non-RMBS: U.S. agencies 1 — 1,682 3 — 1,685 Municipal — 21,974 16 (828 ) 21,162 Asset-backed securities and structured notes — 179,976 2,088 (9 ) 182,055 Total Non-RMBS — 203,632 2,107 (837 ) 204,902 Total debt securities $ — $ 226,607 $ 2,512 $ (1,606 ) $ 227,513 1 U.S. government-backed including and Ginnie Mae, or government sponsored enterprises including Fannie Mae and Freddie Mac. 2 Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option ARM mortgages. |
Schedule of Available-for-sale Securities in Unrealized Loss Position | The securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows: March 31, 2020 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 $ — $ — $ — $ — $ — $ — Non-agency 28 (1 ) 7,652 (559 ) 7,680 (560 ) Total RMBS securities 28 (1 ) 7,652 (559 ) 7,680 (560 ) Non-RMBS: Municipal debt 5,028 (1 ) 2,017 (182 ) 7,045 (183 ) Asset-backed securities and structured notes 152,678 (3,657 ) 472 (3 ) 153,150 (3,660 ) Total Non-RMBS 157,706 (3,658 ) 2,489 (185 ) 160,195 (3,843 ) Total debt securities $ 157,734 $ (3,659 ) $ 10,141 $ (744 ) $ 167,875 $ (4,403 ) June 30, 2019 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 $ 44 $ (2 ) $ 4,612 $ (77 ) $ 4,656 $ (79 ) Non-agency 32 (1 ) 8,527 (689 ) 8,559 (690 ) Total RMBS securities 76 (3 ) 13,139 (766 ) 13,215 (769 ) Non-RMBS: Municipal debt — — 12,997 (828 ) 12,997 (828 ) Asset-backed securities and structured notes 101 (1 ) 1,779 (8 ) 1,880 (9 ) Total Non-RMBS 101 (1 ) 14,776 (836 ) 14,877 (837 ) Total debt securities $ 177 $ (4 ) $ 27,915 $ (1,602 ) $ 28,092 $ (1,606 ) |
Schedule of Unrealized Gain (Loss) on Investments on Available-for-sale Securities | The Company had recorded unrealized gains and unrealized losses in accumulated other comprehensive loss as follows: (Dollars in thousands) March 31, June 30, Available-for-sale debt securities—net unrealized gains (losses) $ (2,982 ) $ 905 Available-for-sale debt securities—non-credit related losses (845 ) (845 ) Subtotal (3,827 ) 60 Tax benefit (expense) 1,101 (44 ) Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss) $ (2,726 ) $ 16 |
Schedule of Contractual Maturities of Available-for-sale Securities | The expected maturity distribution of the Company’s mortgage-backed securities and the contractual maturity distribution of the Company’s Non-RMBS securities classified as available-for-sale were: March 31, 2020 Available for sale (Dollars in thousands) Amortized Cost Fair Value RMBS—U.S. agencies 1 : Due within one year $ 1,969 $ 2,040 Due one to five years 6,288 6,508 Due five to ten years 2,940 3,053 Due after ten years 2,736 2,842 Total RMBS—U.S. agencies 1 13,933 14,443 RMBS—Non-agency: Due within one year 2,372 2,326 Due one to five years 6,260 6,096 Due five to ten years 2,594 2,566 Due after ten years 652 718 Total RMBS—Non-agency 11,878 11,706 Non-RMBS: Due within one year 22,244 22,521 Due one to five years 140,857 137,416 Due five to ten years 769 722 Due after ten years 4,689 4,580 Total Non-RMBS 168,559 165,239 Total $ 194,370 $ 191,388 1 Residential mortgage-backed security (RMBS) distributions include impact of expected prepayments and other timing factors. |
LOANS, LEASES & ALLOWANCE FOR_2
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Composition of the Loan and Lease Portfolio | The following table sets forth the composition of the loan and lease portfolio as of the dates indicated: (Dollars in thousands) March 31, 2020 June 30, 2019 Single family real estate secured: Mortgage $ 4,139,163 $ 4,281,080 Warehouse 380,146 301,999 Financing 1 663,367 518,560 Multifamily secured - mortgage and financing 2,197,889 1,948,513 Commercial real estate secured - mortgage 409,844 326,154 Auto and RV secured 311,740 290,894 Commercial & Industrial 2,214,292 1,662,629 Other 136,863 119,481 Total gross loans and leases 10,453,304 9,449,310 Allowance for loan and lease losses (87,097 ) (57,085 ) Unaccreted premiums (discounts) and loan and lease fees 6,714 (10,101 ) Total net loans and leases $ 10,372,921 $ 9,382,124 1 Single family real estate secured: Financing consists of commercial specialty and lender finance loans secured by single family real estate. |
Schedule of Allowance for Credit Losses on Financing Receivables | The following tables summarize activity in the allowance for loan and lease losses by portfolio classes for the periods indicated: For the Three Months Ended March 31, 2020 Single Family Real Estate Secured (Dollars in thousands) Mortgage Warehouse Financing MF secured CRE secured Auto and RV Secured Commercial & Industrial Other Total Balance at January 1, 2020 $ 20,234 $ 1,428 $ 3,591 $ 5,322 $ 1,191 $ 5,064 $ 18,762 $ 3,922 $ 59,514 Provision for loan and lease losses 705 1 866 653 354 1,269 4,277 20,375 28,500 Charge-offs — — — — — (450 ) — (840 ) (1,290 ) Recoveries 62 — — — — 132 — 179 373 Balance at March 31, 2020 $ 21,001 $ 1,429 $ 4,457 $ 5,975 $ 1,545 $ 6,015 $ 23,039 $ 23,636 $ 87,097 For the Three Months Ended March 31, 2019 Single Family Real Estate Secured (Dollars in thousands) Mortgage Warehouse Financing MF secured CRE secured Auto and RV Secured Commercial & Industrial Other Total Balance at January 1, 2019 $ 22,249 $ 615 $ 2,722 $ 4,833 $ 974 $ 4,013 $ 15,181 $ 3,119 $ 53,706 Provision for loan and lease losses (1,168 ) (49 ) 840 (407 ) 117 655 3,038 15,974 19,000 Charge-offs (59 ) — — — — (288 ) — (714 ) (1,061 ) Recoveries 3 — — — — 42 — 56 101 Balance at March 31, 2019 $ 21,025 $ 566 $ 3,562 $ 4,426 $ 1,091 $ 4,422 $ 18,219 $ 18,435 $ 71,746 For the Nine Months Ended March 31, 2020 Single Family Real Estate Secured (Dollars in thousands) Mortgage Warehouse Financing MF secured CRE secured Auto and RV Secured Commercial & Industrial Other Total Balance at July 1, 2019 $ 21,295 $ 996 $ 5,331 $ 4,097 $ 1,044 $ 4,818 $ 17,514 $ 1,990 $ 57,085 Provision for loan and lease losses (383 ) 433 (874 ) 1,759 501 1,981 9,657 22,626 35,700 Charge-offs (151 ) — — — — (1,069 ) (4,132 ) (2,401 ) (7,753 ) Recoveries 240 — — 119 — 285 — 1,421 2,065 Balance at March 31, 2020 $ 21,001 $ 1,429 $ 4,457 $ 5,975 $ 1,545 $ 6,015 $ 23,039 $ 23,636 $ 87,097 For the Nine Months Ended March 31, 2019 Single Family Real Estate Secured (Dollars in thousands) Mortgage Warehouse Financing MF secured CRE secured Auto and RV Secured Commercial & Industrial Other Total Balance at July 1, 2018 $ 20,382 $ 523 $ 1,557 $ 5,010 $ 849 $ 3,178 $ 16,282 $ 1,370 $ 49,151 Provision for loan and lease losses 1,038 43 2,005 (693 ) 242 1,947 3,086 16,882 24,550 Charge-offs (799 ) — — — — (832 ) (1,149 ) (1,706 ) (4,486 ) Recoveries 404 — — 109 — 129 — 1,889 2,531 Balance at March 31, 2019 $ 21,025 $ 566 $ 3,562 $ 4,426 $ 1,091 $ 4,422 $ 18,219 $ 18,435 $ 71,746 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: March 31, 2020 Single Family Real Estate Secured (Dollars in thousands) Mortgage Warehouse Financing MF secured CRE secured Auto and RV secured Commercial & Industrial Other Total Allowance for loan and lease losses: Ending allowance balance attributable to loans and leases: Individually evaluated for impairment – general allowance $ 257 $ — $ — $ 1 $ 2 $ 11 $ — $ 33 $ 304 Collectively evaluated for impairment 20,744 1,429 4,457 5,974 1,543 6,004 23,039 23,603 86,793 Total ending allowance balance $ 21,001 $ 1,429 $ 4,457 $ 5,975 $ 1,545 $ 6,015 $ 23,039 $ 23,636 $ 87,097 Loans and leases: Loans and leases individually evaluated for impairment $ 54,106 $ — $ — $ 1,176 $ 1,909 $ 339 $ — $ 406 $ 57,936 Loans and leases collectively evaluated for impairment 4,085,057 380,146 663,367 2,196,713 407,935 311,401 2,214,292 136,457 10,395,368 Principal loan and lease balance 4,139,163 380,146 663,367 2,197,889 409,844 311,740 2,214,292 136,863 10,453,304 Unaccreted discounts and loan and lease fees 9,170 — (3,071 ) 3,914 681 2,623 (3,374 ) (3,229 ) 6,714 Total recorded investment in loans and leases $ 4,148,333 $ 380,146 $ 660,296 $ 2,201,803 $ 410,525 $ 314,363 $ 2,210,918 $ 133,634 $ 10,460,018 June 30, 2019 Single Family Real Estate Secured (Dollars in thousands) Mortgage Warehouse Financing MF secured CRE secured Auto and RV secured Commercial & Industrial Other Total Allowance for loan and lease losses: Ending allowance balance attributable to loans and leases: Individually evaluated for impairment – general allowance $ 405 $ — $ — $ 3 $ — $ 1 $ — $ 13 $ 422 Collectively evaluated for impairment 20,890 996 5,331 4,094 1,044 4,817 17,514 1,977 56,663 Total ending allowance balance $ 21,295 $ 996 $ 5,331 $ 4,097 $ 1,044 $ 4,818 $ 17,514 $ 1,990 $ 57,085 Loans and leases: Loans and leases individually evaluated for impairment $ 46,005 $ — $ — $ 2,108 $ — $ 115 $ — $ 216 $ 48,444 Loans and leases collectively evaluated for impairment 4,235,075 301,999 518,560 1,946,405 326,154 290,779 1,662,629 119,265 9,400,866 Principal loan and lease balance 4,281,080 301,999 518,560 1,948,513 326,154 290,894 1,662,629 119,481 9,449,310 Unaccreted discounts and loan and lease fees 8,790 — (1,773 ) 5,090 649 2,631 (3,188 ) (22,300 ) (10,101 ) Total recorded investment in loans and leases $ 4,289,870 $ 301,999 $ 516,787 $ 1,953,603 $ 326,803 $ 293,525 $ 1,659,441 $ 97,181 $ 9,439,209 |
Schedule of Loans and Leases Evaluated for Impairment by Portfolio Class | The following tables present our loans and leases evaluated individually for impairment by portfolio class: March 31, 2020 (Dollars in thousands) Unpaid Principal Balance Principal Balance Adjustment 1 Recorded Investment Accrued Interest / Origination Fees Total Related Allocation of General Allowance Related Allocation of Specific Allowance With no related allowance recorded: Single family real estate secured: Mortgage: In-house originated $ 2,538 $ 529 $ 2,009 $ 163 $ 2,172 $ — $ — Purchased 1,237 872 365 1 366 — — Auto and RV secured: In-house originated 549 386 163 8 171 — — Purchased — — — — — — — Other 4,606 4,606 — 437 437 — — With an allowance recorded: Single family real estate secured: Mortgage: In-house originated 50,294 301 49,993 1,036 51,029 247 — Purchased 1,929 190 1,739 103 1,842 10 — Multifamily secured - mortgage and financing: In-house originated 1,191 15 1,176 8 1,184 1 — Commercial real estate secured: In-house originated 1,921 12 1,909 19 1,928 2 — Auto and RV secured 186 10 176 3 179 11 — Other 406 — 406 — 406 33 — Total $ 64,857 $ 6,921 $ 57,936 $ 1,778 $ 59,714 $ 304 $ — As a % of total gross loans and leases 0.62 % 0.07 % 0.55 % 0.02 % 0.57 % — % — % June 30, 2019 (Dollars in thousands) Unpaid Principal Balance Principal Balance Adjustment 1 Recorded Investment Accrued Interest / Origination Fees Total Related Allocation of General Allowance Related Allocation of Specific Allowance With no related allowance recorded: Single family real estate secured: Mortgage: In-house originated $ 4,874 $ 1,775 $ 3,099 $ 255 $ 3,354 $ — $ — Purchased 2,237 1,142 1,095 — 1,095 — — Auto and RV secured: In-house originated 326 221 105 4 109 — — With an allowance recorded: Single family real estate secured: Mortgage: In-house originated 40,758 348 40,410 731 41,141 393 — Purchased 1,418 17 1,401 109 1,510 12 — Multifamily secured - mortgage and financing: In-house originated 2,108 — 2,108 9 2,117 3 — Auto and RV Secured 10 — 10 — 10 1 — Other 216 — 216 — 216 13 — Total $ 51,947 $ 3,503 $ 48,444 $ 1,108 $ 49,552 $ 422 $ — As a % of total gross loans and leases 0.55 % 0.04 % 0.51 % 0.01 % 0.52 % — % — % 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 Nonaccrual Loans and Leases | Nonaccrual loans and leases consisted of the following as of the dates indicated: (Dollars in thousands) March 31, June 30, Single Family Real Estate Secured: Mortgage: In-house originated $ 52,002 $ 43,509 Purchased 2,104 2,496 Multifamily secured - mortgage and financing: In-house originated 1,176 2,108 Commercial real estate secured: In-house originated 1,909 — Total nonaccrual loans secured by real estate 57,191 48,113 Auto and RV secured 339 115 Other 406 216 Total nonaccrual loans and leases $ 57,936 $ 48,444 Nonaccrual loans and leases to total loans and leases 0.55 % 0.51 % |
Schedule of Outstanding Principal Balance on Loans and Leases Performing and Nonaccrual | The following tables present the outstanding unpaid balance of loans and leases that are performing and nonaccrual by portfolio class: March 31, 2020 Single Family Real Estate Secured (Dollars in thousands) Mortgage Warehouse Financing MF secured CRE secured Auto and RV secured Commercial & Industrial Other Total Performing $ 4,085,057 $ 380,146 $ 663,367 $ 2,196,713 $ 407,935 $ 311,401 $ 2,214,292 $ 136,457 $ 10,395,368 Nonaccrual 54,106 — — 1,176 1,909 339 — 406 57,936 Total $ 4,139,163 $ 380,146 $ 663,367 $ 2,197,889 $ 409,844 $ 311,740 $ 2,214,292 $ 136,863 $ 10,453,304 June 30, 2019 Single Family Real Estate Secured (Dollars in thousands) Mortgage Warehouse Financing MF secured CRE secured Auto and RV secured Commercial & Industrial Other Total Performing $ 4,235,075 $ 301,999 $ 518,560 $ 1,946,405 $ 326,154 $ 290,779 $ 1,662,629 $ 119,265 $ 9,400,866 Nonaccrual 46,005 — — 2,108 — 115 — 216 48,444 Total $ 4,281,080 $ 301,999 $ 518,560 $ 1,948,513 $ 326,154 $ 290,894 $ 1,662,629 $ 119,481 $ 9,449,310 |
Schedule of Composition of Loan and Lease Portfolio by Credit Quality Indicators | The following table presents the composition of the Company’s loan and lease portfolio by credit quality indicators: March 31, 2020 (Dollars in thousands) Pass Special Substandard Doubtful Total Single family real estate secured: Mortgage In-house originated $ 3,982,119 $ 70,561 $ 54,940 $ — $ 4,107,620 Purchased 29,279 160 2,104 — 31,543 Warehouse 363,874 16,272 — — 380,146 Financing 596,593 51,479 15,295 — 663,367 Multifamily secured - mortgage and financing In-house originated 2,138,805 12,064 2,047 — 2,152,916 Purchased 44,056 — 917 — 44,973 Commercial real estate secured - mortgage In-house originated 401,579 — 1,909 — 403,488 Purchased 6,356 — — — 6,356 Auto and RV secured 310,924 234 582 — 311,740 Commercial & Industrial 2,173,632 30,935 9,725 — 2,214,292 Other 136,296 161 406 — 136,863 Total $ 10,183,513 $ 181,866 $ 87,925 $ — $ 10,453,304 As a % of total gross loans and leases 97.4 % 1.7 % 0.8 % — % 100.0 % June 30, 2019 (Dollars in thousands) Pass Special Substandard Doubtful Total Single family real estate secured: Mortgage In-house originated $ 4,157,665 $ 37,219 $ 44,568 $ — $ 4,239,452 Purchased 38,534 598 2,496 — 41,628 Warehouse 301,999 — — — 301,999 Financing 440,298 21,600 56,662 — 518,560 Multifamily secured - mortgage and financing In-house originated 1,890,524 427 2,108 — 1,893,059 Purchased 54,514 — 940 — 55,454 Commercial real estate secured - mortgage In-house originated 318,629 — — — 318,629 Purchased 7,525 — — — 7,525 Auto and RV secured 290,691 68 135 — 290,894 Commercial & Industrial 1,660,821 1,722 86 — 1,662,629 Other 119,036 229 216 — 119,481 Total $ 9,280,236 $ 61,863 $ 107,211 $ — $ 9,449,310 As a % of total gross loans and leases 98.2 % 0.7 % 1.1 % — % 100.0 % |
Schedule of Past Due Loan and Leases | The following table provides the outstanding unpaid balance of loans and leases that are past due 30 days or more by portfolio class as of the period indicated: March 31, 2020 (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 $ 20,480 $ 17,146 $ 48,738 $ 86,364 Purchased 62 457 850 1,369 Multifamily secured - mortgage and financing 639 423 — 1,062 Auto and RV secured 1,804 356 212 2,372 Commercial & Industrial — — — — Other 247 193 341 781 Total $ 23,232 $ 18,575 $ 50,141 $ 91,948 As a % of total gross loans and leases 0.22 % 0.18 % 0.48 % 0.88 % June 30, 2019 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Single family real estate secured: Mortgage In-house originated $ 12,008 $ 15,616 $ 35,700 $ 63,324 Purchased 228 — 1,458 1,686 Multifamily secured - mortgage and financing 1,684 — 1,588 3,272 Auto and RV secured 476 155 17 648 Other 250 229 216 695 Total $ 14,646 $ 16,000 $ 38,979 $ 69,625 As a % of total gross loans and leases 0.15 % 0.17 % 0.41 % 0.74 % |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | Supplemental cash flow information related to leases was as follows: (Dollars in thousands) March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities for operating leases: Operating cash flows $ 5,993 ROU assets obtained in the exchange for lease liabilities: ROU assets obtained in exchange for lease liabilities $ — ROU assets recognized upon adoption of new lease standard $ 77,794 The components of lease expense were as follows: (Dollars in thousands) Three Months Ended March 31, 2020 For the Nine Months Ended March 31, 2020 Operating Lease Expense $ 2,654 $ 7,889 |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information related to leases was as follows: (Dollars in thousands) March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities for operating leases: Operating cash flows $ 5,993 ROU assets obtained in the exchange for lease liabilities: ROU assets obtained in exchange for lease liabilities $ — ROU assets recognized upon adoption of new lease standard $ 77,794 The components of lease expense were as follows: (Dollars in thousands) Three Months Ended March 31, 2020 For the Nine Months Ended March 31, 2020 Operating Lease Expense $ 2,654 $ 7,889 |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: (Dollars in thousands) March 31, 2020 Operating lease right-of-use assets $ 75,237 Operating lease liabilities $ 78,637 Weighted-average remaining lease term (in years): Operating leases 9.33 years Weighted-average discount rate: Operating leases 2.90 % |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities at March 31, 2020 were as follows: (Dollars in thousands) Operating Leases Remainder of 2020 $ 2,420 2021 8,878 2022 9,546 2023 9,817 2024 9,420 Thereafter 50,742 Total lease payments 90,823 Less: present value discount (12,186 ) Total Lease Liability $ 78,637 |
EQUITY AND STOCK-BASED COMPEN_2
EQUITY AND STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Unrecognized Compensation Expense Related to Non-vested Awards To be Recognized in the Future | At March 31, 2020 , unrecognized compensation expense related to non-vested awards aggregated to $36,607 and is expected to be recognized in future periods as follows: (Dollars in thousands) Stock Award Compensation Expense For the fiscal year remainder: 2020 $ 5,384 2021 16,486 2022 10,057 2023 3,514 2024 734 Thereafter 432 Total $ 36,607 |
Schedule of Status and Changes in Restricted Stock Grants | The following table presents the status and changes in restricted stock units for the periods indicated: Restricted Stock Units Weighted-Average Grant-Date Fair Value Non-vested balance at June 30, 2018 1,233,731 $ 24.84 Granted 1,103,249 34.68 Vested (699,223 ) 26.74 Canceled (90,909 ) 29.46 Non-vested balance at June 30, 2019 1,546,848 $ 30.73 Granted 710,032 24.09 Vested (455,424 ) 27.71 Canceled (98,757 ) 29.46 Non-vested balance at March 31, 2020 1,702,699 $ 28.84 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted EPS | The following table presents the calculation of basic and diluted EPS: Three Months Ended Nine Months Ended March 31, March 31, (Dollars in thousands, except per share data) 2020 2019 2020 2019 Earnings Per Common Share Net income $ 56,057 $ 38,821 $ 138,138 $ 114,497 Preferred stock dividends (77 ) (77 ) (232 ) (232 ) Net income attributable to common stockholders $ 55,980 $ 38,744 $ 137,906 $ 114,265 Average common shares outstanding 60,967,892 61,259,419 61,176,715 62,130,598 Total qualifying shares 60,967,892 61,259,419 61,176,715 62,130,598 Earnings per common share $ 0.92 $ 0.63 $ 2.25 $ 1.84 Diluted Earnings Per Common Share Dilutive net income attributable to common stockholders $ 55,980 $ 38,744 $ 137,906 $ 114,265 Average common shares issued and outstanding 60,967,892 61,259,419 61,176,715 62,130,598 Dilutive effect of average unvested RSUs 555,621 330,243 635,130 466,685 Total dilutive common shares outstanding 61,523,513 61,589,662 61,811,845 62,597,283 Diluted earnings per common share $ 0.91 $ 0.63 $ 2.23 $ 1.83 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables present the operating results, goodwill, and assets of the segments: For the Three Months Ended March 31, 2020 (Dollars in thousands) Banking Business Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 145,372 $ 3,954 $ (710 ) $ 148,616 Provision for loan losses 28,500 — — 28,500 Non-interest income 25,259 6,402 (119 ) 31,542 Non-interest expense 56,661 11,137 3,992 71,790 Income before taxes $ 85,470 $ (781 ) $ (4,821 ) $ 79,868 For the Three Months Ended March 31, 2019 (Dollars in thousands) Banking Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 127,072 $ 2,951 $ (854 ) $ 129,169 Provision for loan losses 19,000 — — 19,000 Non-interest income 21,027 5,071 — 26,098 Non-interest expense 52,224 23,102 6,489 81,815 Income before taxes $ 76,875 $ (15,080 ) $ (7,343 ) $ 54,452 Nine Months Ended March 31, 2020 (Dollars in thousands) Banking Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 350,184 $ 13,137 $ (2,982 ) $ 360,339 Provision for loan losses 35,700 — — 35,700 Non-interest income 57,274 19,087 (2,076 ) 74,285 Non-interest expense 160,547 32,656 11,019 204,222 Income before taxes $ 211,211 $ (432 ) $ (16,077 ) $ 194,702 Nine Months Ended March 31, 2019 (Dollars in thousands) Banking Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 307,564 $ 2,951 $ (2,347 ) $ 308,168 Provision for loan losses 24,550 — — 24,550 Non-interest income 54,462 5,071 — 59,533 Non-interest expense 142,291 23,102 20,277 185,670 Income before taxes $ 195,185 $ (15,080 ) $ (22,624 ) $ 157,481 As of March 31, 2020 (Dollars in thousands) Banking Business Securities Business Corporate/Eliminations Axos Consolidated Goodwill $ 35,721 $ 35,501 $ — $ 71,222 Total Assets $ 11,543,844 $ 522,670 $ 93,405 $ 12,159,919 As of March 31, 2019 (Dollars in thousands) Banking Business Securities Business Corporate/Eliminations Axos Consolidated Goodwill $ 35,721 $ 34,933 $ — $ 70,654 Total Assets $ 10,166,064 $ 701,102 $ 8,395 $ 10,875,561 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - NARRATIVE (Details) $ in Thousands | 9 Months Ended | ||
Mar. 31, 2020USD ($)segment | Mar. 31, 2020USD ($) | Jul. 01, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of operating segments | 2 | 2 | |
Operating lease right-of-use assets | $ 75,237 | $ 75,237 | |
Operating lease liabilities | $ 78,637 | $ 78,637 | |
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 77,794 | ||
Operating lease liabilities | $ 79,700 |
REVENUE RECOGNITION - NON-INTER
REVENUE RECOGNITION - NON-INTEREST INCOME SEGREGATED BY REVENUE STREAMS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Non-interest income (in-scope of Topic 606) | $ 8,354 | $ 4,659 | $ 26,247 | $ 14,468 |
Non-interest income (out-of-scope of Topic 606) | 23,188 | 21,439 | 48,038 | 45,065 |
Total non-interest income | 31,542 | 26,098 | 74,285 | 59,533 |
Deposit service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Non-interest income (in-scope of Topic 606) | 727 | 404 | 3,564 | 3,083 |
Card fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Non-interest income (in-scope of Topic 606) | 1,283 | 1,174 | 3,904 | 4,094 |
Broker-dealer clearing fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Non-interest income (in-scope of Topic 606) | 6,329 | 1,567 | 17,540 | 1,567 |
Bankruptcy trustee and fiduciary service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Non-interest income (in-scope of Topic 606) | $ 15 | $ 1,514 | $ 1,239 | $ 5,724 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) customer in Thousands, client in Thousands | Mar. 15, 2019USD ($) | Feb. 26, 2019USD ($)client | Jan. 28, 2019USD ($)customerbroker-dealer | Nov. 16, 2018USD ($) | Mar. 31, 2020USD ($)acquisition | Jun. 30, 2019acquisition | Mar. 31, 2019USD ($) |
Business Acquisition [Line Items] | |||||||
Number of business acquisitions | acquisition | 0 | 2 | |||||
Number of assets acquisitions | acquisition | 0 | 2 | |||||
Goodwill | $ 71,222,000 | $ 70,654,000 | |||||
WiseBanyan Holding | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration | $ 3,200,000 | ||||||
Intangible assets acquired | $ 2,700,000 | ||||||
Axos Clearing | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration | $ 80,860,000 | ||||||
Intangible assets acquired | 20,120,000 | ||||||
Goodwill | 35,501,000 | ||||||
Transaction costs | 400,000 | ||||||
MWA Bank | |||||||
Business Acquisition [Line Items] | |||||||
Deposit accounts | $ 173,000,000 | ||||||
Checking, savings and money market accounts | 151,000,000 | ||||||
Time deposits | $ 22,000,000 | ||||||
Nationwide Bank | |||||||
Business Acquisition [Line Items] | |||||||
Deposit accounts | $ 2,400,000,000 | ||||||
Checking, savings and money market accounts | 700,000,000 | ||||||
Time deposits | 1,700,000,000 | ||||||
Premium on deposit balances transferred | $ 13,500,000 | ||||||
Subordinated notes | Axos Clearing | |||||||
Business Acquisition [Line Items] | |||||||
Subordinated notes | $ 7,500,000 | ||||||
Subordinated notes maturity (in months) | 15 months | ||||||
WiseBanyan Holding | |||||||
Business Acquisition [Line Items] | |||||||
Number of clients | client | 24 | ||||||
Assets under management | $ 150,000,000 | ||||||
Axos Clearing | |||||||
Business Acquisition [Line Items] | |||||||
Number of introducing broker-dealers | broker-dealer | 60 | ||||||
Number of customers | customer | 90 |
ACQUISITIONS - FAIR VALUE OF AS
ACQUISITIONS - FAIR VALUE OF ASSETS ACQUIRED (Details) - USD ($) $ in Thousands | Jan. 28, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 71,222 | $ 70,654 | |
Axos Clearing | |||
Business Acquisition [Line Items] | |||
Cash and due from banks | $ 16,604 | ||
Cash segregated for regulatory purposes | 142,016 | ||
Securities, available for sale | 9,585 | ||
Stock of the regulatory agencies, at cost | 2,431 | ||
Securities borrowed | 157,898 | ||
Customer, broker-dealer and clearing receivables | 234,352 | ||
Other assets | 5,487 | ||
Total identifiable assets | 568,373 | ||
Notes payable to banks | 85,100 | ||
Securities loaned | 203,041 | ||
Customer, broker-dealer and clearing payables | 240,110 | ||
Accounts payable and accrued liabilities | 7,383 | ||
Total identifiable liabilities | 535,634 | ||
Goodwill | 35,501 | ||
Intangible assets | 20,120 | ||
Total cash purchase price | 80,860 | ||
Notes issued | 7,500 | ||
Total fair value of consideration paid | $ 88,360 |
FAIR VALUE - ASSETS AND LIABILI
FAIR VALUE - ASSETS AND LIABILITIES MEASURED ON RECURRING BASIS (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 | |
ASSETS: | |||
Securities - Trading | $ 919 | $ 0 | |
Loans held for sale, at fair value | 40,236 | 33,260 | |
Agency RMBS | |||
ASSETS: | |||
Securities - Trading | [1] | 0 | 0 |
Non-Agency RMBS | |||
ASSETS: | |||
Securities - Trading | [2] | 0 | 0 |
Municipal | |||
ASSETS: | |||
Securities - Trading | 919 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
ASSETS: | |||
Securities - Trading | 0 | ||
Loans held for sale, at fair value | 0 | 0 | |
Mortgage servicing rights | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | |||
ASSETS: | |||
Securities - Trading | 919 | ||
Loans held for sale, at fair value | 40,236 | 33,260 | |
Mortgage servicing rights | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
ASSETS: | |||
Securities - Trading | 0 | ||
Loans held for sale, at fair value | 0 | 0 | |
Mortgage servicing rights | 9,962 | 9,784 | |
Recurring | |||
ASSETS: | |||
Securities available-for-sale | 191,388 | 227,513 | |
Loans held for sale, at fair value | 40,236 | 33,260 | |
Mortgage servicing rights | 9,962 | 9,784 | |
Other assets—Derivative instruments | 5,626 | 1,978 | |
Financial liabilities: | |||
Other liabilities—Derivative instruments | 2,978 | 732 | |
Recurring | Agency Debt | |||
ASSETS: | |||
Securities available-for-sale | [3] | 1,700 | 1,685 |
Recurring | Agency RMBS | |||
ASSETS: | |||
Securities available-for-sale | [3] | 14,443 | 9,586 |
Recurring | Non-Agency RMBS | |||
ASSETS: | |||
Securities available-for-sale | [4] | 11,706 | 13,025 |
Recurring | Municipal | |||
ASSETS: | |||
Securities - Trading | 919 | ||
Securities available-for-sale | 10,389 | 21,162 | |
Recurring | Asset-backed securities and structured notes | |||
ASSETS: | |||
Securities available-for-sale | 153,150 | 182,055 | |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
ASSETS: | |||
Securities available-for-sale | 0 | 0 | |
Loans held for sale, at fair value | 0 | 0 | |
Mortgage servicing rights | 0 | 0 | |
Other assets—Derivative instruments | 0 | 0 | |
Financial liabilities: | |||
Other liabilities—Derivative instruments | 0 | 0 | |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Agency Debt | |||
ASSETS: | |||
Securities available-for-sale | [3] | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Agency RMBS | |||
ASSETS: | |||
Securities available-for-sale | [3] | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-Agency RMBS | |||
ASSETS: | |||
Securities available-for-sale | [4] | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal | |||
ASSETS: | |||
Securities - Trading | 0 | ||
Securities available-for-sale | 0 | 0 | |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities and structured notes | |||
ASSETS: | |||
Securities available-for-sale | 0 | 0 | |
Recurring | Significant Other Observable Inputs (Level 2) | |||
ASSETS: | |||
Securities available-for-sale | 179,682 | 214,488 | |
Loans held for sale, at fair value | 40,236 | 33,260 | |
Mortgage servicing rights | 0 | 0 | |
Other assets—Derivative instruments | 0 | 0 | |
Financial liabilities: | |||
Other liabilities—Derivative instruments | 0 | 0 | |
Recurring | Significant Other Observable Inputs (Level 2) | Agency Debt | |||
ASSETS: | |||
Securities available-for-sale | [3] | 1,700 | 1,685 |
Recurring | Significant Other Observable Inputs (Level 2) | Agency RMBS | |||
ASSETS: | |||
Securities available-for-sale | [3] | 14,443 | 9,586 |
Recurring | Significant Other Observable Inputs (Level 2) | Non-Agency RMBS | |||
ASSETS: | |||
Securities available-for-sale | [4] | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Municipal | |||
ASSETS: | |||
Securities - Trading | 919 | ||
Securities available-for-sale | 10,389 | 21,162 | |
Recurring | Significant Other Observable Inputs (Level 2) | Asset-backed securities and structured notes | |||
ASSETS: | |||
Securities available-for-sale | 153,150 | 182,055 | |
Recurring | Significant Unobservable Inputs (Level 3) | |||
ASSETS: | |||
Securities available-for-sale | 11,706 | 13,025 | |
Loans held for sale, at fair value | 0 | 0 | |
Mortgage servicing rights | 9,962 | 9,784 | |
Other assets—Derivative instruments | 5,626 | 1,978 | |
Financial liabilities: | |||
Other liabilities—Derivative instruments | 2,978 | 732 | |
Recurring | Significant Unobservable Inputs (Level 3) | Agency Debt | |||
ASSETS: | |||
Securities available-for-sale | [3] | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Agency RMBS | |||
ASSETS: | |||
Securities available-for-sale | [3] | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Non-Agency RMBS | |||
ASSETS: | |||
Securities available-for-sale | [4] | 11,706 | 13,025 |
Recurring | Significant Unobservable Inputs (Level 3) | Municipal | |||
ASSETS: | |||
Securities - Trading | 0 | ||
Securities available-for-sale | 0 | 0 | |
Recurring | Significant Unobservable Inputs (Level 3) | Asset-backed securities and structured notes | |||
ASSETS: | |||
Securities available-for-sale | $ 0 | $ 0 | |
[1] | U.S. government-backed including and Ginnie Mae, or government sponsored enterprises including Fannie Mae and Freddie Mac. | ||
[2] | Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option ARM mortgages. | ||
[3] | U.S. government-backed or government sponsored enterprises including Fannie Mae, Freddie Mac and Ginnie Mae. | ||
[4] | Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option ARM mortgages. |
FAIR VALUE - LEVEL 3 ASSETS MEA
FAIR VALUE - LEVEL 3 ASSETS MEASURED ON RECURRING BASIS (Details) - Recurring - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | $ 25,066 | $ 26,105 | $ 24,055 | $ 29,148 |
Total gains or losses for the period - Included in other comprehensive income | (548) | (108) | 292 | 442 |
Purchases, originations, issues, sales and settlements: | ||||
Purchases/originations | 1,297 | 339 | 4,047 | 1,656 |
Sales | (2,058) | |||
Settlements | (533) | (370) | (1,611) | (1,751) |
Other-than-temporary impairment | (821) | (821) | ||
Closing balance | 24,316 | 24,099 | 24,316 | 24,099 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | (966) | (1,046) | (2,467) | (2,517) |
Included in earnings—Sale of securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Total gains or losses for the period - Included in earnings | (133) | |||
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 | (966) | (1,046) | (2,467) | (2,384) |
Non-Agency RMBS | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | 12,787 | 14,421 | 13,025 | 17,443 |
Total gains or losses for the period - Included in other comprehensive income | (548) | (108) | 292 | 442 |
Purchases, originations, issues, sales and settlements: | ||||
Purchases/originations | 0 | 0 | 0 | 0 |
Sales | (2,058) | |||
Settlements | (533) | (370) | (1,611) | (1,751) |
Other-than-temporary impairment | (821) | (821) | ||
Closing balance | 11,706 | 13,122 | 11,706 | 13,122 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | 0 | 0 | 0 | (133) |
Non-Agency RMBS | Included in earnings—Sale of securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Total gains or losses for the period - Included in earnings | (133) | |||
Non-Agency RMBS | Included in earnings—Mortgage banking income | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Total gains or losses for the period - Included in earnings | 0 | 0 | 0 | 0 |
Mortgage Servicing Rights | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | 11,262 | 11,215 | 9,784 | 10,752 |
Total gains or losses for the period - Included in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases, originations, issues, sales and settlements: | ||||
Purchases/originations | 1,297 | 339 | 4,047 | 1,656 |
Sales | 0 | |||
Settlements | 0 | 0 | 0 | 0 |
Other-than-temporary impairment | 0 | 0 | ||
Closing balance | 9,962 | 10,355 | 9,962 | 10,355 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | (2,597) | (1,199) | (3,869) | (2,053) |
Mortgage Servicing Rights | 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 | 0 | |||
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 | (2,597) | (1,199) | (3,869) | (2,053) |
Derivative Instruments, net | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance | 1,017 | 469 | 1,246 | 953 |
Total gains or losses for the period - Included in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases, originations, issues, sales and settlements: | ||||
Purchases/originations | 0 | 0 | 0 | 0 |
Sales | 0 | |||
Settlements | 0 | 0 | 0 | 0 |
Other-than-temporary impairment | 0 | 0 | ||
Closing balance | 2,648 | 622 | 2,648 | 622 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | 1,631 | 153 | 1,402 | (331) |
Derivative Instruments, net | 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 | 0 | |||
Derivative Instruments, net | Included in earnings—Mortgage banking income | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Total gains or losses for the period - Included in earnings | $ 1,631 | $ 153 | $ 1,402 | $ (331) |
FAIR VALUE - QUANTITATIVE INFOR
FAIR VALUE - QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASURMENTS (RECURRING) (Details) $ in Thousands | Mar. 31, 2020USD ($)Y | Jun. 30, 2019USD ($)Y | |
Level 3 | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Mortgage servicing rights | $ 9,962 | $ 9,784 | |
Recurring | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities – Non-agency RMBS | 191,388 | 227,513 | |
Mortgage servicing rights | 9,962 | 9,784 | |
Recurring | Non-Agency RMBS | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities – Non-agency RMBS | [1] | 11,706 | 13,025 |
Recurring | Level 3 | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities – Non-agency RMBS | 11,706 | 13,025 | |
Mortgage servicing rights | 9,962 | 9,784 | |
Recurring | Level 3 | Non-Agency RMBS | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities – Non-agency RMBS | [1] | 11,706 | 13,025 |
Recurring | Level 3 | Non-Agency RMBS | Discounted Cash Flow | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities – Non-agency RMBS | $ 11,706 | $ 13,025 | |
Recurring | Level 3 | Non-Agency RMBS | Projected Constant Prepayment Rate | Minimum | Discounted Cash Flow | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities available-for-sale, measurement input | 0.010 | 0.029 | |
Recurring | Level 3 | Non-Agency RMBS | Projected Constant Prepayment Rate | Maximum | Discounted Cash Flow | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities available-for-sale, measurement input | 0.256 | 0.325 | |
Recurring | Level 3 | Non-Agency RMBS | Projected Constant Prepayment Rate | Weighted Average | Discounted Cash Flow | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities available-for-sale, measurement input | 0.089 | 0.100 | |
Recurring | Level 3 | Non-Agency RMBS | Projected Constant Default Rate | Minimum | Discounted Cash Flow | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities available-for-sale, measurement input | 0.015 | 0.015 | |
Recurring | Level 3 | Non-Agency RMBS | Projected Constant Default Rate | Maximum | Discounted Cash Flow | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities available-for-sale, measurement input | 0.200 | 0.102 | |
Recurring | Level 3 | Non-Agency RMBS | Projected Constant Default Rate | Weighted Average | Discounted Cash Flow | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities available-for-sale, measurement input | 0.048 | 0.044 | |
Recurring | Level 3 | Non-Agency RMBS | Projected Loss Severity | Minimum | Discounted Cash Flow | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities available-for-sale, measurement input | 0.400 | 0.400 | |
Recurring | Level 3 | Non-Agency RMBS | Projected Loss Severity | Maximum | Discounted Cash Flow | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities available-for-sale, measurement input | 0.684 | 0.683 | |
Recurring | Level 3 | Non-Agency RMBS | Projected Loss Severity | Weighted Average | Discounted Cash Flow | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities available-for-sale, measurement input | 0.595 | 0.594 | |
Recurring | Level 3 | Non-Agency RMBS | Discount Rate | Minimum | Discounted Cash Flow | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities available-for-sale, measurement input | 0.031 | 0.027 | |
Recurring | Level 3 | Non-Agency RMBS | Discount Rate | Maximum | Discounted Cash Flow | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities available-for-sale, measurement input | 0.094 | 0.069 | |
Recurring | Level 3 | Non-Agency RMBS | Discount Rate | Weighted Average | Discounted Cash Flow | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Securities available-for-sale, measurement input | 0.051 | 0.041 | |
Recurring | Level 3 | Mortgage Servicing Rights | Discounted Cash Flow | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Mortgage servicing rights | $ 9,962 | $ 9,784 | |
Recurring | Level 3 | Mortgage Servicing Rights | Projected Constant Prepayment Rate | Minimum | Discounted Cash Flow | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Mortgage servicing right, measurement input | 0.049 | 0.047 | |
Recurring | Level 3 | Mortgage Servicing Rights | Projected Constant Prepayment Rate | Maximum | Discounted Cash Flow | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Mortgage servicing right, measurement input | 0.294 | 0.337 | |
Recurring | Level 3 | Mortgage Servicing Rights | Projected Constant Prepayment Rate | Weighted Average | Discounted Cash Flow | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Mortgage servicing right, measurement input | 0.109 | 0.101 | |
Recurring | Level 3 | Mortgage Servicing Rights | Discount Rate | Minimum | Discounted Cash Flow | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Mortgage servicing right, measurement input | 0.095 | 0.095 | |
Recurring | Level 3 | Mortgage Servicing Rights | Discount Rate | Maximum | Discounted Cash Flow | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Mortgage servicing right, measurement input | 0.130 | 0.130 | |
Recurring | Level 3 | Mortgage Servicing Rights | Discount Rate | Weighted Average | Discounted Cash Flow | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Mortgage servicing right, measurement input | 0.098 | 0.098 | |
Recurring | Level 3 | Mortgage Servicing Rights | Life (in years) | Minimum | Discounted Cash Flow | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Mortgage servicing right, measurement input | Y | 1.9 | 1.9 | |
Recurring | Level 3 | Mortgage Servicing Rights | Life (in years) | Maximum | Discounted Cash Flow | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Mortgage servicing right, measurement input | Y | 8.3 | 8.8 | |
Recurring | Level 3 | Mortgage Servicing Rights | Life (in years) | Weighted Average | Discounted Cash Flow | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Mortgage servicing right, measurement input | Y | 6.3 | 6.4 | |
Recurring | Level 3 | Derivative Instruments, net | Sales Comparison Approach | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative Instruments | $ 2,648 | $ 1,246 | |
Recurring | Level 3 | Derivative Instruments, net | Projected Sales Profit of Underlying Loans | Minimum | Sales Comparison Approach | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative instruments, net, measurement input | 0 | 0.004 | |
Recurring | Level 3 | Derivative Instruments, net | Projected Sales Profit of Underlying Loans | Maximum | Sales Comparison Approach | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative instruments, net, measurement input | 0.008 | 0.008 | |
Recurring | Level 3 | Derivative Instruments, net | Projected Sales Profit of Underlying Loans | Weighted Average | Sales Comparison Approach | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative instruments, net, measurement input | 0.004 | 0.006 | |
[1] | Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option ARM mortgages. |
FAIR VALUE - ASSETS MEASURED FO
FAIR VALUE - ASSETS MEASURED FOR IMPAIRMENT ON NONRECURRING BASIS (Details) - Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | $ 57,936 | $ 48,444 |
Other real estate owned and foreclosed assets, fair value | 7,307 | 7,485 |
Mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 54,106 | 46,005 |
Multifamily real estate secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 1,176 | 2,108 |
Commercial real estate secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 1,909 | |
Auto and RV secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 339 | 115 |
Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 406 | 216 |
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 | 7,010 | 7,449 |
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 | 297 | 36 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | 0 |
Other real estate owned and foreclosed assets, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Multifamily real estate secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial real estate secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Auto and RV secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Single family real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Autos and RVs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | 0 |
Other real estate owned and foreclosed assets, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Multifamily real estate secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Commercial real estate secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | |
Significant Other Observable Inputs (Level 2) | Auto and RV secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Single family real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Autos and RVs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 57,936 | 48,444 |
Other real estate owned and foreclosed assets, fair value | 7,307 | 7,485 |
Significant Unobservable Inputs (Level 3) | Mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 54,106 | 46,005 |
Significant Unobservable Inputs (Level 3) | Multifamily real estate secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 1,176 | 2,108 |
Significant Unobservable Inputs (Level 3) | Commercial real estate secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 1,909 | |
Significant Unobservable Inputs (Level 3) | Auto and RV secured | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 339 | 115 |
Significant Unobservable Inputs (Level 3) | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, fair value | 406 | 216 |
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 | 7,010 | 7,449 |
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 | $ 297 | $ 36 |
FAIR VALUE - NARRATIVE (Details
FAIR VALUE - NARRATIVE (Details) - Nonrecurring - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | |
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, carrying amount | $ 57,936 | $ 57,936 | $ 48,444 |
Other real estate owned and foreclosed assets, fair value | 7,307 | 7,307 | $ 7,485 |
Nonperforming | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, carrying amount | 57,936 | 57,936 | |
Impaired loans, charge-offs | 558 | ||
Impaired loans, life to date charge-offs | 5,847 | 5,847 | |
Impaired loans, life to date payments applied to principal | 1,074 | ||
Impaired loans, life to date principal balance adjustments for allowance write-downs | 6,921 | ||
Related allowance on impaired loans | 304 | 304 | |
Other real estate owned | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, charge-offs | 427 | ||
Other real estate owned and foreclosed assets, fair value | $ 7,307 | $ 7,307 |
FAIR VALUE - LOANS HELD-FOR-SAL
FAIR VALUE - LOANS HELD-FOR-SALE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |||||
Aggregate fair value | $ 40,236 | $ 40,236 | $ 33,260 | ||
Contractual balance | 38,724 | 38,724 | 32,342 | ||
Unrealized gain | 1,512 | 1,512 | $ 918 | ||
Interest income | 216 | $ 258 | 812 | $ 824 | |
Change in fair value | 2,228 | 134 | 1,976 | (577) | |
Total | $ 2,444 | $ 392 | $ 2,788 | $ 247 |
FAIR VALUE - QUANTITATIVE INF_2
FAIR VALUE - QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASURMENTS (NONRECURRING) (Details) - Nonrecurring $ in Thousands | Mar. 31, 2020USD ($) | Jun. 30, 2019USD ($) | |
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, fair value | $ 57,936 | $ 48,444 | |
Other real estate owned and foreclosed assets, fair value | 7,307 | 7,485 | |
Mortgage | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, fair value | 54,106 | 46,005 | |
Multifamily real estate secured | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, fair value | 1,176 | 2,108 | |
Commercial real estate secured | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, fair value | 1,909 | ||
Auto and RV secured | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, fair value | 339 | 115 | |
Other | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, fair value | 406 | 216 | |
Single family real estate | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Other real estate owned and foreclosed assets, fair value | 7,010 | 7,449 | |
Autos and RVs | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Other real estate owned and foreclosed assets, fair value | 297 | 36 | |
Level 3 | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, fair value | 57,936 | 48,444 | |
Other real estate owned and foreclosed assets, fair value | 7,307 | 7,485 | |
Level 3 | Mortgage | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, fair value | 54,106 | 46,005 | |
Level 3 | Mortgage | Sales Comparison Approach | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, fair value | $ 54,106 | $ 46,005 | |
Level 3 | Mortgage | Sales Comparison Approach | Adjustment for differences between the comparable sales | Minimum | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | (0.153) | (0.832) |
Level 3 | Mortgage | Sales Comparison Approach | Adjustment for differences between the comparable sales | Maximum | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | 0.185 | 0.800 |
Level 3 | Mortgage | Sales Comparison Approach | Adjustment for differences between the comparable sales | Weighted Average | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | (0.004) | (0.020) |
Level 3 | Multifamily real estate secured | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, fair value | $ 1,176 | $ 2,108 | |
Level 3 | Multifamily real estate secured | Sales comparison approach, income approach, Discounted cash flows | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, fair value | $ 1,176 | ||
Level 3 | Multifamily real estate secured | Sales comparison approach, income approach, Discounted cash flows | Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, capitalization rate | Minimum | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | 0.045 | |
Level 3 | Multifamily real estate secured | Sales comparison approach, income approach, Discounted cash flows | Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, capitalization rate | Maximum | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | 0.150 | |
Level 3 | Multifamily real estate secured | Sales comparison approach, income approach, Discounted cash flows | Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, capitalization rate | Weighted Average | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | 0.093 | |
Level 3 | Multifamily real estate secured | Sales comparison approach and income approach | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, fair value | $ 2,108 | ||
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 Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | (0.879) | |
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 Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | 1.027 | |
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 Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | (0.001) | |
Level 3 | Commercial real estate secured | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, fair value | $ 1,909 | ||
Level 3 | Commercial real estate secured | Sales comparison approach and income approach | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, fair value | $ 1,909 | ||
Level 3 | Commercial 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 Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | 0.015 | |
Level 3 | Commercial 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 Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | 0.015 | |
Level 3 | Commercial 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 Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | 0.015 | |
Level 3 | Auto and RV secured | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, fair value | $ 339 | $ 115 | |
Level 3 | Auto and RV secured | Sales Comparison Approach | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, fair value | $ 339 | $ 115 | |
Level 3 | Auto and RV secured | Sales Comparison Approach | Adjustment for differences between the comparable sales | Minimum | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | (0.632) | (0.490) |
Level 3 | Auto and RV secured | Sales Comparison Approach | Adjustment for differences between the comparable sales | Maximum | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | 0.132 | 0.240 |
Level 3 | Auto and RV secured | Sales Comparison Approach | Adjustment for differences between the comparable sales | Weighted Average | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | (0.154) | 0.026 |
Level 3 | Other | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, fair value | $ 406 | $ 216 | |
Level 3 | Other | Discounted Cash Flow | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, fair value | $ 406 | $ 216 | |
Level 3 | Other | Discounted Cash Flow | Projected Constant Prepayment Rate | Minimum | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | 0 | 0 |
Level 3 | Other | Discounted Cash Flow | Projected Constant Prepayment Rate | Maximum | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | 0 | 0 |
Level 3 | Other | Discounted Cash Flow | Projected Constant Prepayment Rate | Weighted Average | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | 0 | 0 |
Level 3 | Other | Discounted Cash Flow | Projected Constant Default Rate | Minimum | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | 0 | 0 |
Level 3 | Other | Discounted Cash Flow | Projected Constant Default Rate | Maximum | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | 0.100 | 0.100 |
Level 3 | Other | Discounted Cash Flow | Projected Constant Default Rate | Weighted Average | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | 0.050 | 0.050 |
Level 3 | Other | Discounted Cash Flow | Projected Loss Severity | Minimum | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | 1 | 1 |
Level 3 | Other | Discounted Cash Flow | Projected Loss Severity | Maximum | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | 1 | 1 |
Level 3 | Other | Discounted Cash Flow | Projected Loss Severity | Weighted Average | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | 1 | 1 |
Level 3 | Other | Discounted Cash Flow | Discount Rate | Minimum | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | (0.033) | (0.022) |
Level 3 | Other | Discounted Cash Flow | Discount Rate | Maximum | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | 0.022 | 0.011 |
Level 3 | Other | Discounted Cash Flow | Discount Rate | Weighted Average | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Impaired loans, measurement input | [1] | (0.005) | (0.006) |
Level 3 | Single family real estate | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Other real estate owned and foreclosed assets, fair value | $ 7,010 | $ 7,449 | |
Level 3 | Single family real estate | Sales Comparison Approach | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Other real estate owned and foreclosed assets, fair value | $ 7,010 | $ 7,449 | |
Level 3 | Single family real estate | Sales Comparison Approach | Adjustment for differences between the comparable sales | Minimum | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Other real estate owned, measurement input | [1] | 0.088 | (0.463) |
Level 3 | Single family real estate | Sales Comparison Approach | Adjustment for differences between the comparable sales | Maximum | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Other real estate owned, measurement input | [1] | 0.187 | 0.530 |
Level 3 | Single family real estate | Sales Comparison Approach | Adjustment for differences between the comparable sales | Weighted Average | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Other real estate owned, measurement input | [1] | 0.167 | 0.053 |
Level 3 | Autos and RVs | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Other real estate owned and foreclosed assets, fair value | $ 297 | $ 36 | |
Level 3 | Autos and RVs | Sales Comparison Approach | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Other real estate owned and foreclosed assets, fair value | $ 297 | $ 36 | |
Level 3 | Autos and RVs | Sales Comparison Approach | Adjustment for differences between the comparable sales | Minimum | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Other repossessed assets, measurement Input | [1] | (0.302) | (0.136) |
Level 3 | Autos and RVs | Sales Comparison Approach | Adjustment for differences between the comparable sales | Maximum | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Other repossessed assets, measurement Input | [1] | 0.022 | 0.563 |
Level 3 | Autos and RVs | Sales Comparison Approach | Adjustment for differences between the comparable sales | Weighted Average | |||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Other repossessed assets, measurement Input | [1] | (0.034) | 0.080 |
[1] | For impaired loans, other real estate owned and foreclosed assets the ranges shown may vary positively or negatively based on the comparable sales reported in the current appraisal. In certain instances, the range can be significant due to small sample sizes and in some cases the property being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted. |
FAIR VALUE - FAIR VALUE BY BALA
FAIR VALUE - FAIR VALUE BY BALANCE SHEET GROUPING (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Financial assets: | ||
Securities - Trading | $ 919 | $ 0 |
Securities - Available-for-sale | 191,388 | 227,513 |
Loans held for sale, at fair value | 40,236 | 33,260 |
Loans held for sale, lower of cost or fair value | 29 | 4,800 |
Securities borrowed | 53,816 | 144,706 |
Financial liabilities: | ||
Securities loaned | 76,587 | 198,356 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 854,199 | 857,368 |
Securities - Trading | 919 | |
Securities - Available-for-sale | 191,388 | 227,513 |
Loans held for sale, at fair value | 40,236 | 33,260 |
Loans held for sale, lower of cost or fair value | 29 | 4,800 |
Loans and leases held for investment—net | 10,372,921 | 9,382,124 |
Securities borrowed | 53,816 | 144,706 |
Customer, broker-dealer and clearing receivables | 187,353 | 203,192 |
Mortgage servicing rights | 9,962 | 9,784 |
Financial liabilities: | ||
Total deposits | 9,567,338 | 8,983,173 |
Advances from the Federal Home Loan Bank | 770,500 | 458,500 |
Borrowings, subordinated notes and debentures | 76,285 | 168,929 |
Securities loaned | 76,587 | 198,356 |
Customer, broker-dealer and clearing payables | 318,100 | 238,604 |
Total Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 854,199 | 857,368 |
Securities - Trading | 919 | |
Securities - Available-for-sale | 191,388 | 227,513 |
Loans held for sale, at fair value | 40,236 | 33,260 |
Loans held for sale, lower of cost or fair value | 29 | 4,990 |
Loans and leases held for investment—net | 10,926,375 | 9,630,061 |
Securities borrowed | 53,827 | 144,720 |
Customer, broker-dealer and clearing receivables | 187,447 | 203,355 |
Mortgage servicing rights | 9,962 | 9,784 |
Financial liabilities: | ||
Total deposits | 9,312,380 | 8,758,861 |
Advances from the Federal Home Loan Bank | 780,580 | 461,156 |
Borrowings, subordinated notes and debentures | 77,104 | 169,212 |
Securities loaned | 76,587 | 198,197 |
Customer, broker-dealer and clearing payables | 291,679 | 229,987 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 854,199 | 857,368 |
Securities - Trading | 0 | |
Securities - Available-for-sale | 0 | 0 |
Loans held for sale, at fair value | 0 | 0 |
Loans held for sale, lower of cost or fair value | 0 | 0 |
Loans and leases held for investment—net | 0 | 0 |
Securities borrowed | 0 | 0 |
Customer, broker-dealer and clearing receivables | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Financial liabilities: | ||
Total deposits | 0 | 0 |
Advances from the Federal Home Loan Bank | 0 | 0 |
Borrowings, subordinated notes and debentures | 0 | 0 |
Securities loaned | 0 | 0 |
Customer, broker-dealer and clearing payables | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities - Trading | 919 | |
Securities - Available-for-sale | 179,682 | 214,488 |
Loans held for sale, at fair value | 40,236 | 33,260 |
Loans held for sale, lower of cost or fair value | 0 | 0 |
Loans and leases held for investment—net | 0 | 0 |
Securities borrowed | 0 | 0 |
Customer, broker-dealer and clearing receivables | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Financial liabilities: | ||
Total deposits | 9,312,380 | 8,758,861 |
Advances from the Federal Home Loan Bank | 780,580 | 461,156 |
Borrowings, subordinated notes and debentures | 77,104 | 169,212 |
Securities loaned | 0 | 0 |
Customer, broker-dealer and clearing payables | 0 | 0 |
Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities - Trading | 0 | |
Securities - Available-for-sale | 11,706 | 13,025 |
Loans held for sale, at fair value | 0 | 0 |
Loans held for sale, lower of cost or fair value | 29 | 4,990 |
Loans and leases held for investment—net | 10,926,375 | 9,630,061 |
Securities borrowed | 53,827 | 144,720 |
Customer, broker-dealer and clearing receivables | 187,447 | 203,355 |
Mortgage servicing rights | 9,962 | 9,784 |
Financial liabilities: | ||
Total deposits | 0 | 0 |
Advances from the Federal Home Loan Bank | 0 | 0 |
Borrowings, subordinated notes and debentures | 0 | 0 |
Securities loaned | 76,587 | 198,197 |
Customer, broker-dealer and clearing payables | $ 291,679 | $ 229,987 |
SECURITIES - AMORTIZED COST, CA
SECURITIES - AMORTIZED COST, CARRYING AMOUNT AND FAIR VALUE DISCLOSURES (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2014 | ||
Debt Securities, Available-for-sale [Line Items] | |||||
Securities Trading - Fair Value | $ 919 | $ 0 | |||
Amortized Cost | 194,370 | 226,607 | |||
Unrealized Gains | 1,421 | 2,512 | |||
Unrealized Losses | (4,403) | (1,606) | |||
Fair Value | 191,388 | 227,513 | |||
Total RMBS securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Securities Trading - Fair Value | 0 | 0 | |||
Amortized Cost | 25,811 | 22,975 | |||
Unrealized Gains | 898 | 405 | |||
Unrealized Losses | (560) | (769) | |||
Fair Value | 26,149 | 22,611 | |||
U.S. agencies | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Securities Trading - Fair Value | [1] | 0 | 0 | ||
Amortized Cost | [1] | 13,933 | 9,486 | ||
Unrealized Gains | [1] | 510 | 179 | ||
Unrealized Losses | [1] | 0 | (79) | ||
Fair Value | [1] | 14,443 | [2] | 9,586 | |
Non-agency | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Securities Trading - Fair Value | [3] | 0 | 0 | ||
Amortized Cost | [3] | 11,878 | 13,489 | ||
Unrealized Gains | [3] | 388 | 226 | ||
Unrealized Losses | [3] | (560) | (690) | ||
Fair Value | [3] | 11,706 | 13,025 | ||
Total Non-RMBS | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Securities Trading - Fair Value | 919 | 0 | |||
Amortized Cost | 168,559 | 203,632 | |||
Unrealized Gains | 523 | 2,107 | |||
Unrealized Losses | (3,843) | (837) | |||
Fair Value | 165,239 | 204,902 | |||
U.S. agencies | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Securities Trading - Fair Value | 0 | [1] | $ 0 | ||
Amortized Cost | [1] | 1,700 | 1,682 | ||
Unrealized Gains | [1] | 0 | 3 | ||
Unrealized Losses | [1] | 0 | 0 | ||
Fair Value | [1] | 1,700 | 1,685 | ||
Municipal debt | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Securities Trading - Fair Value | 919 | 0 | |||
Amortized Cost | 10,544 | 21,974 | |||
Unrealized Gains | 28 | 16 | |||
Unrealized Losses | (183) | (828) | |||
Fair Value | 10,389 | 21,162 | |||
Asset-backed securities and structured notes | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Securities Trading - Fair Value | 0 | 0 | |||
Amortized Cost | 156,315 | 179,976 | |||
Unrealized Gains | 495 | 2,088 | |||
Unrealized Losses | (3,660) | (9) | |||
Fair Value | $ 153,150 | $ 182,055 | |||
[1] | U.S. government-backed including and Ginnie Mae, or government sponsored enterprises including Fannie Mae and Freddie Mac. | ||||
[2] | Residential mortgage-backed security (RMBS) distributions include impact of expected prepayments and other timing factors. | ||||
[3] | Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option ARM mortgages. |
SECURITIES - NARRATIVE (Details
SECURITIES - NARRATIVE (Details) | 3 Months Ended | |||
Mar. 31, 2020USD ($)security | Mar. 31, 2019security | Jun. 30, 2019USD ($)security | ||
Debt Securities, Available-for-sale [Line Items] | ||||
Securities - Available-for-sale | $ 191,388,000 | $ 227,513,000 | ||
Available-for-sale, number of securities | security | 0 | |||
Number of available-for-sale securities in continuous loss position for a period of more than 12 months | security | 10 | 21 | ||
Number of available-for-sale securities in continuous loss position for a period of less than 12 months | security | 6 | 3 | ||
Number of available-for-sale securities sold | security | 0 | |||
Available-for-sale securities sold, carrying value | $ 7,866,000 | |||
Realized gain on sale of available-for-sale securities | 54,000 | |||
Asset Pledged as Collateral | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities pledged as collateral | 3,399,000 | $ 3,555,000 | ||
Non-agency | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Securities - Available-for-sale | [1] | $ 11,706,000 | $ 13,025,000 | |
Number of non-agency RMBS | security | 1 | |||
Carrying amount of securities with cumulative credit losses | $ 2,929,000 | |||
Cumulative credit losses | 821,000 | |||
Credit losses recognized in earnings | $ 0 | |||
RMBS, Super Senior Securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale, number of securities | security | 14 | |||
[1] | Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option ARM mortgages. |
SECURITIES - SCHEDULE OF UNREAL
SECURITIES - SCHEDULE OF UNREALIZED LOSS ON INVESTMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities in loss position for less than 12 Months, Fair Value | $ 157,734 | $ 177 |
Available-for-sale securities in loss position for less than 12 Months, Gross Unrealized Losses | (3,659) | (4) |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | 10,141 | 27,915 |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | (744) | (1,602) |
Available-for-sale securities, Fair Value | 167,875 | 28,092 |
Available-for-sale securities, Gross Unrealized Losses | (4,403) | (1,606) |
Total RMBS securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities in loss position for less than 12 Months, Fair Value | 28 | 76 |
Available-for-sale securities in loss position for less than 12 Months, Gross Unrealized Losses | (1) | (3) |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | 7,652 | 13,139 |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | (559) | (766) |
Available-for-sale securities, Fair Value | 7,680 | 13,215 |
Available-for-sale securities, Gross Unrealized Losses | (560) | (769) |
U.S. agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities in loss position for less than 12 Months, Fair Value | 0 | 44 |
Available-for-sale securities in loss position for less than 12 Months, Gross Unrealized Losses | 0 | (2) |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | 0 | 4,612 |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | 0 | (77) |
Available-for-sale securities, Fair Value | 0 | 4,656 |
Available-for-sale securities, Gross Unrealized Losses | 0 | (79) |
Non-agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities in loss position for less than 12 Months, Fair Value | 28 | 32 |
Available-for-sale securities in loss position for less than 12 Months, Gross Unrealized Losses | (1) | (1) |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | 7,652 | 8,527 |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | (559) | (689) |
Available-for-sale securities, Fair Value | 7,680 | 8,559 |
Available-for-sale securities, Gross Unrealized Losses | (560) | (690) |
Total Non-RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities in loss position for less than 12 Months, Fair Value | 157,706 | 101 |
Available-for-sale securities in loss position for less than 12 Months, Gross Unrealized Losses | (3,658) | (1) |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | 2,489 | 14,776 |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | (185) | (836) |
Available-for-sale securities, Fair Value | 160,195 | 14,877 |
Available-for-sale securities, Gross Unrealized Losses | (3,843) | (837) |
Municipal debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities in loss position for less than 12 Months, Fair Value | 5,028 | 0 |
Available-for-sale securities in loss position for less than 12 Months, Gross Unrealized Losses | (1) | 0 |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | 2,017 | 12,997 |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | (182) | (828) |
Available-for-sale securities, Fair Value | 7,045 | 12,997 |
Available-for-sale securities, Gross Unrealized Losses | (183) | (828) |
Asset-backed securities and structured notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities in loss position for less than 12 Months, Fair Value | 152,678 | 101 |
Available-for-sale securities in loss position for less than 12 Months, Gross Unrealized Losses | (3,657) | (1) |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | 472 | 1,779 |
Available-for-sale securities in loss position for more than 12 Months, Fair Value | (3) | (8) |
Available-for-sale securities, Fair Value | 153,150 | 1,880 |
Available-for-sale securities, Gross Unrealized Losses | $ (3,660) | $ (9) |
SECURITIES - UNREALIZED GAIN (L
SECURITIES - UNREALIZED GAIN (LOSS) ON INVESTMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale debt securities—net unrealized gains (losses) | $ (2,982) | $ 905 |
Available-for-sale debt securities—non-credit related losses | (845) | (845) |
Subtotal | (3,827) | 60 |
Tax benefit (expense) | 1,101 | (44) |
Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss) | $ (2,726) | $ 16 |
SECURITIES - INVESTMENTS CLASSI
SECURITIES - INVESTMENTS CLASSIFIED BY CONTRACTUAL MATURITY DATE (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 | ||
Available-for-sale, Amortized Cost: | ||||
Available-for-sale, Amortized Cost | $ 194,370 | |||
Available-for-sale, Fair Value: | ||||
Available-for-sale, Fair Value | 191,388 | $ 227,513 | ||
U.S. agencies | ||||
Available-for-sale, Amortized Cost: | ||||
Due within one year | [1] | 1,969 | ||
Due one to five years | [1] | 6,288 | ||
Due five to ten years | [1] | 2,940 | ||
Due after ten years | [1] | 2,736 | ||
Available-for-sale, Amortized Cost | [1] | 13,933 | ||
Available-for-sale, Fair Value: | ||||
Due within one year | [1] | 2,040 | ||
Due one to five years | [1] | 6,508 | ||
Due five to ten years | [1] | 3,053 | ||
Due after ten years | [1] | 2,842 | ||
Available-for-sale, Fair Value | [2] | 14,443 | [1] | 9,586 |
Non-agency | ||||
Available-for-sale, Amortized Cost: | ||||
Due within one year | 2,372 | |||
Due one to five years | 6,260 | |||
Due five to ten years | 2,594 | |||
Due after ten years | 652 | |||
Available-for-sale, Amortized Cost | 11,878 | |||
Available-for-sale, Fair Value: | ||||
Due within one year | 2,326 | |||
Due one to five years | 6,096 | |||
Due five to ten years | 2,566 | |||
Due after ten years | 718 | |||
Available-for-sale, Fair Value | [3] | 11,706 | 13,025 | |
Total Non-RMBS | ||||
Available-for-sale, Amortized Cost: | ||||
Due within one year | 22,244 | |||
Due one to five years | 140,857 | |||
Due five to ten years | 769 | |||
Due after ten years | 4,689 | |||
Available-for-sale, Amortized Cost | 168,559 | |||
Available-for-sale, Fair Value: | ||||
Due within one year | 22,521 | |||
Due one to five years | 137,416 | |||
Due five to ten years | 722 | |||
Due after ten years | 4,580 | |||
Available-for-sale, Fair Value | $ 165,239 | $ 204,902 | ||
[1] | Residential mortgage-backed security (RMBS) distributions include impact of expected prepayments and other timing factors. | |||
[2] | U.S. government-backed including and Ginnie Mae, or government sponsored enterprises including Fannie Mae and Freddie Mac. | |||
[3] | Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option ARM mortgages. |
LOANS, LEASES & ALLOWANCE FOR_3
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - LOAN PORTFOLIO COMPOSITION (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | $ 10,453,304 | $ 9,449,310 | |||||
Allowance for loan and lease losses | (87,097) | $ (59,514) | (57,085) | $ (71,746) | $ (53,706) | $ (49,151) | |
Unaccreted premiums (discounts) and loan and lease fees | 6,714 | (10,101) | |||||
Total net loans and leases | 10,372,921 | 9,382,124 | |||||
Mortgage | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | 4,139,163 | 4,281,080 | |||||
Allowance for loan and lease losses | (21,001) | (20,234) | (21,295) | (21,025) | (22,249) | (20,382) | |
Unaccreted premiums (discounts) and loan and lease fees | 9,170 | 8,790 | |||||
Warehouse | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | 380,146 | 301,999 | |||||
Allowance for loan and lease losses | (1,429) | (1,428) | (996) | (566) | (615) | (523) | |
Unaccreted premiums (discounts) and loan and lease fees | 0 | 0 | |||||
Financing | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | 663,367 | 518,560 | |||||
Allowance for loan and lease losses | (4,457) | (3,591) | (5,331) | (3,562) | (2,722) | (1,557) | |
Unaccreted premiums (discounts) and loan and lease fees | (3,071) | (1,773) | |||||
Multifamily secured - mortgage and financing | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | 2,197,889 | 1,948,513 | |||||
Allowance for loan and lease losses | (5,975) | (5,322) | (4,097) | (4,426) | (4,833) | (5,010) | |
Unaccreted premiums (discounts) and loan and lease fees | 3,914 | 5,090 | |||||
Commercial real estate secured - mortgage | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | 409,844 | 326,154 | |||||
Allowance for loan and lease losses | (1,545) | (1,191) | (1,044) | (1,091) | (974) | (849) | |
Unaccreted premiums (discounts) and loan and lease fees | 681 | 649 | |||||
Auto and RV secured | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | 311,740 | 290,894 | |||||
Allowance for loan and lease losses | (6,015) | (5,064) | (4,818) | (4,422) | (4,013) | (3,178) | |
Unaccreted premiums (discounts) and loan and lease fees | 2,623 | 2,631 | |||||
Commercial & Industrial | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | 2,214,292 | 1,662,629 | |||||
Allowance for loan and lease losses | (23,039) | (18,762) | (17,514) | (18,219) | (15,181) | (16,282) | |
Unaccreted premiums (discounts) and loan and lease fees | (3,374) | (3,188) | |||||
Other | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | 136,863 | 119,481 | |||||
Allowance for loan and lease losses | (23,636) | $ (3,922) | (1,990) | $ (18,435) | $ (3,119) | $ (1,370) | |
Unaccreted premiums (discounts) and loan and lease fees | (3,229) | (22,300) | |||||
Residential Portfolio Segment | Mortgage | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | 4,139,163 | 4,281,080 | |||||
Residential Portfolio Segment | Warehouse | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | 380,146 | 301,999 | |||||
Residential Portfolio Segment | Financing | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | [1] | 663,367 | 518,560 | ||||
Residential Portfolio Segment | Multifamily secured - mortgage and financing | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | 2,197,889 | 1,948,513 | |||||
Commercial Real Estate Portfolio Segment | Commercial real estate secured - mortgage | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | 409,844 | 326,154 | |||||
Consumer Portfolio Segment | Auto and RV secured | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | 311,740 | 290,894 | |||||
Commercial Portfolio Segment | Commercial & Industrial | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | 2,214,292 | 1,662,629 | |||||
Unallocated Financing Receivables | Other | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total gross loans and leases | $ 136,863 | $ 119,481 | |||||
[1] | Single family real estate secured: Financing consists of commercial specialty and lender finance loans secured by single family real estate. |
LOANS, LEASES & ALLOWANCE FOR_4
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - ALLOWANCE FOR LOAN AND LEASE LOSSES NARRATIVE (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Receivables [Abstract] | |
Increased provisions for loan and lease losses due to COVID-19 pandemic | $ 6.6 |
LOANS, LEASES & ALLOWANCE FOR_5
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - ALLOWANCE FOR LOAN LOSS BY PORTFOLIO CLASS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | $ 59,514 | $ 53,706 | $ 57,085 | $ 49,151 |
Provision for loan and lease losses | 28,500 | 19,000 | 35,700 | 24,550 |
Charge-offs | (1,290) | (1,061) | (7,753) | (4,486) |
Recoveries | 373 | 101 | 2,065 | 2,531 |
Balance, end of period | 87,097 | 71,746 | 87,097 | 71,746 |
Mortgage | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 20,234 | 22,249 | 21,295 | 20,382 |
Provision for loan and lease losses | 705 | (1,168) | (383) | 1,038 |
Charge-offs | 0 | (59) | (151) | (799) |
Recoveries | 62 | 3 | 240 | 404 |
Balance, end of period | 21,001 | 21,025 | 21,001 | 21,025 |
Warehouse | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 1,428 | 615 | 996 | 523 |
Provision for loan and lease losses | 1 | (49) | 433 | 43 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | 1,429 | 566 | 1,429 | 566 |
Financing | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 3,591 | 2,722 | 5,331 | 1,557 |
Provision for loan and lease losses | 866 | 840 | (874) | 2,005 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | 4,457 | 3,562 | 4,457 | 3,562 |
Multifamily secured - mortgage and financing | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 5,322 | 4,833 | 4,097 | 5,010 |
Provision for loan and lease losses | 653 | (407) | 1,759 | (693) |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 119 | 109 |
Balance, end of period | 5,975 | 4,426 | 5,975 | 4,426 |
Commercial real estate secured - mortgage | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 1,191 | 974 | 1,044 | 849 |
Provision for loan and lease losses | 354 | 117 | 501 | 242 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | 1,545 | 1,091 | 1,545 | 1,091 |
Auto and RV secured | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 5,064 | 4,013 | 4,818 | 3,178 |
Provision for loan and lease losses | 1,269 | 655 | 1,981 | 1,947 |
Charge-offs | (450) | (288) | (1,069) | (832) |
Recoveries | 132 | 42 | 285 | 129 |
Balance, end of period | 6,015 | 4,422 | 6,015 | 4,422 |
Commercial & Industrial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 18,762 | 15,181 | 17,514 | 16,282 |
Provision for loan and lease losses | 4,277 | 3,038 | 9,657 | 3,086 |
Charge-offs | 0 | 0 | (4,132) | (1,149) |
Recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | 23,039 | 18,219 | 23,039 | 18,219 |
Other | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 3,922 | 3,119 | 1,990 | 1,370 |
Provision for loan and lease losses | 20,375 | 15,974 | 22,626 | 16,882 |
Charge-offs | (840) | (714) | (2,401) | (1,706) |
Recoveries | 179 | 56 | 1,421 | 1,889 |
Balance, end of period | $ 23,636 | $ 18,435 | $ 23,636 | $ 18,435 |
LOANS, LEASES & ALLOWANCE FOR_6
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - LOANS INDIVIDUALLY EVALUATED FOR IMPAIRMENT (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 | |
With an allowance recorded: | |||
Unpaid Principal Balance | $ 64,857 | $ 51,947 | |
Principal Balance Adjustment | [1] | 6,921 | 3,503 |
Recorded Investment | 57,936 | 48,444 | |
Accrued Interest / Origination Fees | 1,778 | 1,108 | |
Total | 59,714 | 49,552 | |
Related Allocation of General Allowance | 304 | 422 | |
Related Allocation of Specific Allowance | $ 0 | $ 0 | |
As a % of total gross loans and leases | |||
Unpaid Principal Balance | 0.62% | 0.55% | |
Principal Balance Adjustment | [1] | 0.07% | 0.04% |
Recorded Investment | 0.55% | 0.51% | |
Accrued Interest / Origination Fees | 0.02% | 0.01% | |
Total | 0.57% | 0.52% | |
Related Allocation of General Allowance | 0.00% | 0.00% | |
Related Allocation of Specific Allowance | 0.00% | 0.00% | |
Mortgage | In-house originated | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | $ 2,538 | $ 4,874 | |
Principal Balance Adjustment | 529 | 1,775 | |
Recorded Investment | 2,009 | 3,099 | |
Accrued Interest / Origination Fees | 163 | 255 | |
Total | 2,172 | 3,354 | |
With an allowance recorded: | |||
Unpaid Principal Balance | 50,294 | 40,758 | |
Principal Balance Adjustment | [1] | 301 | 348 |
Recorded Investment | 49,993 | 40,410 | |
Accrued Interest / Origination Fees | 1,036 | 731 | |
Total | 51,029 | 41,141 | |
Related Allocation of General Allowance | 247 | 393 | |
Related Allocation of Specific Allowance | 0 | 0 | |
Mortgage | Purchased | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | 1,237 | 2,237 | |
Principal Balance Adjustment | 872 | 1,142 | |
Recorded Investment | 365 | 1,095 | |
Accrued Interest / Origination Fees | 1 | 0 | |
Total | 366 | 1,095 | |
With an allowance recorded: | |||
Unpaid Principal Balance | 1,929 | 1,418 | |
Principal Balance Adjustment | [1] | 190 | 17 |
Recorded Investment | 1,739 | 1,401 | |
Accrued Interest / Origination Fees | 103 | 109 | |
Total | 1,842 | 1,510 | |
Related Allocation of General Allowance | 10 | 12 | |
Related Allocation of Specific Allowance | 0 | 0 | |
Multifamily secured - mortgage and financing | In-house originated | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 1,191 | 2,108 | |
Principal Balance Adjustment | [1] | 15 | 0 |
Recorded Investment | 1,176 | 2,108 | |
Accrued Interest / Origination Fees | 8 | 9 | |
Total | 1,184 | 2,117 | |
Related Allocation of General Allowance | 1 | 3 | |
Related Allocation of Specific Allowance | 0 | 0 | |
CRE secured | In-house originated | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 1,921 | ||
Principal Balance Adjustment | [1] | 12 | |
Recorded Investment | 1,909 | ||
Accrued Interest / Origination Fees | 19 | ||
Total | 1,928 | ||
Related Allocation of General Allowance | 2 | ||
Related Allocation of Specific Allowance | 0 | ||
Auto and RV secured | |||
With an allowance recorded: | |||
Unpaid Principal Balance | 186 | 10 | |
Principal Balance Adjustment | [1] | 10 | 0 |
Recorded Investment | 176 | 10 | |
Accrued Interest / Origination Fees | 3 | 0 | |
Total | 179 | 10 | |
Related Allocation of General Allowance | 11 | 1 | |
Related Allocation of Specific Allowance | 0 | 0 | |
Auto and RV secured | In-house originated | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | 549 | 326 | |
Principal Balance Adjustment | 386 | 221 | |
Recorded Investment | 163 | 105 | |
Accrued Interest / Origination Fees | 8 | 4 | |
Total | 171 | 109 | |
Auto and RV secured | Purchased | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | 0 | ||
Principal Balance Adjustment | 0 | ||
Recorded Investment | 0 | ||
Accrued Interest / Origination Fees | 0 | ||
Total | 0 | ||
Other | |||
With no related allowance recorded: | |||
Unpaid Principal Balance | 4,606 | ||
Principal Balance Adjustment | 4,606 | ||
Recorded Investment | 0 | ||
Accrued Interest / Origination Fees | 437 | ||
Total | 437 | ||
With an allowance recorded: | |||
Unpaid Principal Balance | 406 | 216 | |
Principal Balance Adjustment | [1] | 0 | 0 |
Recorded Investment | 406 | 216 | |
Accrued Interest / Origination Fees | 0 | 0 | |
Total | 406 | 216 | |
Related Allocation of General Allowance | 33 | 13 | |
Related Allocation of Specific Allowance | $ 0 | $ 0 | |
[1] | Impaired loans with an allowance recorded do not have any charge-offs. Principal balance adjustments on impaired loans with an allowance recorded represent interest payments that have been applied to the book balance as a result of the loans’ non-accrual status. |
LOANS, LEASES & ALLOWANCE FOR_7
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - ALLOWANCE FOR LOAN LOSS BY PORTFOLIO SEGMENT (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment – general allowance | $ 304 | $ 422 |
Collectively evaluated for impairment | 86,793 | 56,663 |
Total ending allowance balance | 87,097 | 57,085 |
Loans and leases individually evaluated for impairment | 57,936 | 48,444 |
Loans and leases collectively evaluated for impairment | 10,395,368 | 9,400,866 |
Principal loan and lease balance | 10,453,304 | 9,449,310 |
Unaccreted premiums (discounts) and loan and lease fees | 6,714 | (10,101) |
Total recorded investment in loans and leases | 10,460,018 | 9,439,209 |
Mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment – general allowance | 257 | 405 |
Collectively evaluated for impairment | 20,744 | 20,890 |
Total ending allowance balance | 21,001 | 21,295 |
Loans and leases individually evaluated for impairment | 54,106 | 46,005 |
Loans and leases collectively evaluated for impairment | 4,085,057 | 4,235,075 |
Principal loan and lease balance | 4,139,163 | 4,281,080 |
Unaccreted premiums (discounts) and loan and lease fees | 9,170 | 8,790 |
Total recorded investment in loans and leases | 4,148,333 | 4,289,870 |
Warehouse | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment – general allowance | 0 | 0 |
Collectively evaluated for impairment | 1,429 | 996 |
Total ending allowance balance | 1,429 | 996 |
Loans and leases individually evaluated for impairment | 0 | 0 |
Loans and leases collectively evaluated for impairment | 380,146 | 301,999 |
Principal loan and lease balance | 380,146 | 301,999 |
Unaccreted premiums (discounts) and loan and lease fees | 0 | 0 |
Total recorded investment in loans and leases | 380,146 | 301,999 |
Financing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment – general allowance | 0 | 0 |
Collectively evaluated for impairment | 4,457 | 5,331 |
Total ending allowance balance | 4,457 | 5,331 |
Loans and leases individually evaluated for impairment | 0 | 0 |
Loans and leases collectively evaluated for impairment | 663,367 | 518,560 |
Principal loan and lease balance | 663,367 | 518,560 |
Unaccreted premiums (discounts) and loan and lease fees | (3,071) | (1,773) |
Total recorded investment in loans and leases | 660,296 | 516,787 |
Multifamily secured - mortgage and financing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment – general allowance | 1 | 3 |
Collectively evaluated for impairment | 5,974 | 4,094 |
Total ending allowance balance | 5,975 | 4,097 |
Loans and leases individually evaluated for impairment | 1,176 | 2,108 |
Loans and leases collectively evaluated for impairment | 2,196,713 | 1,946,405 |
Principal loan and lease balance | 2,197,889 | 1,948,513 |
Unaccreted premiums (discounts) and loan and lease fees | 3,914 | 5,090 |
Total recorded investment in loans and leases | 2,201,803 | 1,953,603 |
CRE secured | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment – general allowance | 2 | 0 |
Collectively evaluated for impairment | 1,543 | 1,044 |
Total ending allowance balance | 1,545 | 1,044 |
Loans and leases individually evaluated for impairment | 1,909 | 0 |
Loans and leases collectively evaluated for impairment | 407,935 | 326,154 |
Principal loan and lease balance | 409,844 | 326,154 |
Unaccreted premiums (discounts) and loan and lease fees | 681 | 649 |
Total recorded investment in loans and leases | 410,525 | 326,803 |
Auto and RV secured | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment – general allowance | 11 | 1 |
Collectively evaluated for impairment | 6,004 | 4,817 |
Total ending allowance balance | 6,015 | 4,818 |
Loans and leases individually evaluated for impairment | 339 | 115 |
Loans and leases collectively evaluated for impairment | 311,401 | 290,779 |
Principal loan and lease balance | 311,740 | 290,894 |
Unaccreted premiums (discounts) and loan and lease fees | 2,623 | 2,631 |
Total recorded investment in loans and leases | 314,363 | 293,525 |
Commercial & Industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment – general allowance | 0 | 0 |
Collectively evaluated for impairment | 23,039 | 17,514 |
Total ending allowance balance | 23,039 | 17,514 |
Loans and leases individually evaluated for impairment | 0 | 0 |
Loans and leases collectively evaluated for impairment | 2,214,292 | 1,662,629 |
Principal loan and lease balance | 2,214,292 | 1,662,629 |
Unaccreted premiums (discounts) and loan and lease fees | (3,374) | (3,188) |
Total recorded investment in loans and leases | 2,210,918 | 1,659,441 |
Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment – general allowance | 33 | 13 |
Collectively evaluated for impairment | 23,603 | 1,977 |
Total ending allowance balance | 23,636 | 1,990 |
Loans and leases individually evaluated for impairment | 406 | 216 |
Loans and leases collectively evaluated for impairment | 136,457 | 119,265 |
Principal loan and lease balance | 136,863 | 119,481 |
Unaccreted premiums (discounts) and loan and lease fees | (3,229) | (22,300) |
Total recorded investment in loans and leases | $ 133,634 | $ 97,181 |
LOANS, LEASES & ALLOWANCE FOR_8
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - NONACCRUAL LOANS (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Total nonaccrual loans secured by real estate | $ 57,191 | $ 48,113 |
Total nonaccrual loans and leases | $ 57,936 | $ 48,444 |
Nonaccrual loans and leases to total loans and leases | 0.55% | 0.51% |
Mortgage | In-house originated | ||
Financing Receivable, Past Due [Line Items] | ||
Total nonaccrual loans secured by real estate | $ 52,002 | $ 43,509 |
Mortgage | Purchased | ||
Financing Receivable, Past Due [Line Items] | ||
Total nonaccrual loans secured by real estate | 2,104 | 2,496 |
Multifamily secured - mortgage and financing | In-house originated | ||
Financing Receivable, Past Due [Line Items] | ||
Total nonaccrual loans secured by real estate | 1,176 | 2,108 |
CRE secured | In-house originated | ||
Financing Receivable, Past Due [Line Items] | ||
Total nonaccrual loans secured by real estate | 1,909 | 0 |
Auto and RV secured | ||
Financing Receivable, Past Due [Line Items] | ||
Total nonaccrual loans and leases | 339 | 115 |
Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total nonaccrual loans and leases | $ 406 | $ 216 |
LOANS, LEASES & ALLOWANCE FOR_9
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - NONACCRUAL LOANS NARRATIVE (Details) - loan | 9 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2019 | |
Financing Receivable, Impaired [Line Items] | ||
Ratio of nonaccrual loans and leases considered TDRs | 0.55% | 1.29% |
Period over which borrowers can make timely payments after TDR considered non-performing | 6 months | |
Number or TDRs classified as performing | 0 | 0 |
Nonaccrual | Mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Ratio of nonaccrual loans and leases that are single family mortgage | 93.39% | |
Percentage of aggregate single family first mortgage loans and leases written down | 91.37% |
LOANS, LEASES & ALLOWANCE FO_10
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - UNPAID PRINCIPAL BALANCE FOR PERFORMING AND NONACCRUAL (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | $ 10,453,304 | $ 9,449,310 |
Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 4,139,163 | 4,281,080 |
Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 380,146 | 301,999 |
Financing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 663,367 | 518,560 |
Multifamily secured - mortgage and financing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 2,197,889 | 1,948,513 |
CRE secured | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 409,844 | 326,154 |
Auto and RV secured | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 311,740 | 290,894 |
Commercial & Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 2,214,292 | 1,662,629 |
Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 136,863 | 119,481 |
Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 10,395,368 | 9,400,866 |
Performing | Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 4,085,057 | 4,235,075 |
Performing | Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 380,146 | 301,999 |
Performing | Financing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 663,367 | 518,560 |
Performing | Multifamily secured - mortgage and financing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 2,196,713 | 1,946,405 |
Performing | CRE secured | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 407,935 | 326,154 |
Performing | Auto and RV secured | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 311,401 | 290,779 |
Performing | Commercial & Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 2,214,292 | 1,662,629 |
Performing | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 136,457 | 119,265 |
Nonaccrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 57,936 | 48,444 |
Nonaccrual | Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 54,106 | 46,005 |
Nonaccrual | Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Nonaccrual | Financing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Nonaccrual | Multifamily secured - mortgage and financing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 1,176 | 2,108 |
Nonaccrual | CRE secured | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 1,909 | 0 |
Nonaccrual | Auto and RV secured | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 339 | 115 |
Nonaccrual | Commercial & Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Nonaccrual | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | $ 406 | $ 216 |
LOANS, LEASES & ALLOWANCE FO_11
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - LOANS BY CREDIT QUALITY INDICATOR (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | $ 10,453,304 | $ 9,449,310 |
As a % of total gross loans and leases | 100.00% | 100.00% |
Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | $ 4,139,163 | $ 4,281,080 |
Mortgage | In-house originated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 4,107,620 | 4,239,452 |
Mortgage | Purchased | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 31,543 | 41,628 |
Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 380,146 | 301,999 |
Financing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 663,367 | 518,560 |
Multifamily secured - mortgage and financing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 2,197,889 | 1,948,513 |
Multifamily secured - mortgage and financing | In-house originated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 2,152,916 | 1,893,059 |
Multifamily secured - mortgage and financing | Purchased | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 44,973 | 55,454 |
Commercial real estate secured - mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 409,844 | 326,154 |
Commercial real estate secured - mortgage | In-house originated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 403,488 | 318,629 |
Commercial real estate secured - mortgage | Purchased | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 6,356 | 7,525 |
Auto and RV secured | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 311,740 | 290,894 |
Commercial & Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 2,214,292 | 1,662,629 |
Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 136,863 | 119,481 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | $ 10,183,513 | $ 9,280,236 |
As a % of total gross loans and leases | 97.40% | 98.20% |
Pass | Mortgage | In-house originated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | $ 3,982,119 | $ 4,157,665 |
Pass | Mortgage | Purchased | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 29,279 | 38,534 |
Pass | Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 363,874 | 301,999 |
Pass | Financing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 596,593 | 440,298 |
Pass | Multifamily secured - mortgage and financing | In-house originated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 2,138,805 | 1,890,524 |
Pass | Multifamily secured - mortgage and financing | Purchased | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 44,056 | 54,514 |
Pass | Commercial real estate secured - mortgage | In-house originated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 401,579 | 318,629 |
Pass | Commercial real estate secured - mortgage | Purchased | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 6,356 | 7,525 |
Pass | Auto and RV secured | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 310,924 | 290,691 |
Pass | Commercial & Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 2,173,632 | 1,660,821 |
Pass | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 136,296 | 119,036 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | $ 181,866 | $ 61,863 |
As a % of total gross loans and leases | 1.70% | 0.70% |
Special Mention | Mortgage | In-house originated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | $ 70,561 | $ 37,219 |
Special Mention | Mortgage | Purchased | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 160 | 598 |
Special Mention | Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 16,272 | 0 |
Special Mention | Financing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 51,479 | 21,600 |
Special Mention | Multifamily secured - mortgage and financing | In-house originated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 12,064 | 427 |
Special Mention | Multifamily secured - mortgage and financing | Purchased | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Special Mention | Commercial real estate secured - mortgage | In-house originated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Special Mention | Commercial real estate secured - mortgage | Purchased | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Special Mention | Auto and RV secured | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 234 | 68 |
Special Mention | Commercial & Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 30,935 | 1,722 |
Special Mention | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 161 | 229 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | $ 87,925 | $ 107,211 |
As a % of total gross loans and leases | 0.80% | 1.10% |
Substandard | Mortgage | In-house originated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | $ 54,940 | $ 44,568 |
Substandard | Mortgage | Purchased | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 2,104 | 2,496 |
Substandard | Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Substandard | Financing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 15,295 | 56,662 |
Substandard | Multifamily secured - mortgage and financing | In-house originated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 2,047 | 2,108 |
Substandard | Multifamily secured - mortgage and financing | Purchased | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 917 | 940 |
Substandard | Commercial real estate secured - mortgage | In-house originated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 1,909 | 0 |
Substandard | Commercial real estate secured - mortgage | Purchased | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Substandard | Auto and RV secured | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 582 | 135 |
Substandard | Commercial & Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 9,725 | 86 |
Substandard | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 406 | 216 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | $ 0 | $ 0 |
As a % of total gross loans and leases | 0.00% | 0.00% |
Doubtful | Mortgage | In-house originated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | $ 0 | $ 0 |
Doubtful | Mortgage | Purchased | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Doubtful | Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Doubtful | Financing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Doubtful | Multifamily secured - mortgage and financing | In-house originated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Doubtful | Multifamily secured - mortgage and financing | Purchased | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Doubtful | Commercial real estate secured - mortgage | In-house originated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Doubtful | Commercial real estate secured - mortgage | Purchased | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Doubtful | Auto and RV secured | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Doubtful | Commercial & Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Doubtful | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total gross loans and leases | $ 0 | $ 0 |
LOANS, LEASES & ALLOWANCE FO_12
LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES - PAST DUE LOANS (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 91,948 | $ 69,625 |
As a % of total gross loans and leases | 0.88% | 0.74% |
Mortgage | In-house originated | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 86,364 | $ 63,324 |
Mortgage | Purchased | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,369 | 1,686 |
Multifamily secured - mortgage and financing | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,062 | 3,272 |
Auto and RV secured | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,372 | 648 |
Commercial & Industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | |
Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 781 | 695 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 23,232 | $ 14,646 |
As a % of total gross loans and leases | 0.22% | 0.15% |
30-59 Days Past Due | Mortgage | In-house originated | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 20,480 | $ 12,008 |
30-59 Days Past Due | Mortgage | Purchased | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 62 | 228 |
30-59 Days Past Due | Multifamily secured - mortgage and financing | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 639 | 1,684 |
30-59 Days Past Due | Auto and RV secured | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,804 | 476 |
30-59 Days Past Due | Commercial & Industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | |
30-59 Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 247 | 250 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 18,575 | $ 16,000 |
As a % of total gross loans and leases | 0.18% | 0.17% |
60-89 Days Past Due | Mortgage | In-house originated | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 17,146 | $ 15,616 |
60-89 Days Past Due | Mortgage | Purchased | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 457 | 0 |
60-89 Days Past Due | Multifamily secured - mortgage and financing | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 423 | 0 |
60-89 Days Past Due | Auto and RV secured | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 356 | 155 |
60-89 Days Past Due | Commercial & Industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | |
60-89 Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 193 | 229 |
90 Plus Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 50,141 | $ 38,979 |
As a % of total gross loans and leases | 0.48% | 0.41% |
90 Plus Days Past Due | Mortgage | In-house originated | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 48,738 | $ 35,700 |
90 Plus Days Past Due | Mortgage | Purchased | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 850 | 1,458 |
90 Plus Days Past Due | Multifamily secured - mortgage and financing | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 1,588 |
90 Plus Days Past Due | Auto and RV secured | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 212 | 17 |
90 Plus Days Past Due | Commercial & Industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | |
90 Plus Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 341 | $ 216 |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2020 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating Lease Expense | $ 2,654 | $ 7,889 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Jul. 01, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities for operating leases: | ||
Operating cash flows | $ 5,993 | |
ROU assets obtained in the exchange for lease liabilities: | ||
ROU assets obtained in exchange for lease liabilities | 0 | |
ROU assets recognized upon adoption of new lease standard | $ 75,237 | |
ASU 2016-02 | ||
ROU assets obtained in the exchange for lease liabilities: | ||
ROU assets recognized upon adoption of new lease standard | $ 77,794 |
LEASES - Supplemental Balance S
LEASES - Supplemental Balance Sheet Information (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
Operating lease right-of-use assets | $ 75,237 |
Operating lease liabilities | $ 78,637 |
Weighted-average remaining lease term (in years): | |
Operating leases | 9 years 3 months 29 days |
Weighted-average discount rate: | |
Operating leases | 2.90% |
LEASES - Maturities of Lease Li
LEASES - Maturities of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
Remainder of 2020 | $ 2,420 |
2021 | 8,878 |
2022 | 9,546 |
2023 | 9,817 |
2024 | 9,420 |
Thereafter | 50,742 |
Total lease payments | 90,823 |
Less: present value discount | (12,186) |
Total Lease Liability | $ 78,637 |
EQUITY AND STOCK-BASED COMPEN_3
EQUITY AND STOCK-BASED COMPENSATION - NARRATIVE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | Aug. 02, 2019 | Mar. 17, 2016 | |
Stock Award Compensation Expense | |||||||
Repurchase of common stock | $ 35,838,000 | $ 47,881,000 | |||||
RSUs | |||||||
Stock Award Compensation Expense | |||||||
Restricted stock grants (in shares) | 710,032 | 1,103,249 | |||||
Vesting period for restricted stock grants | 3 years | 3 years | |||||
Stock award expense | $ 16,786,000 | $ 17,979,000 | |||||
Income tax benefit from stock award expense | 4,880,000 | 4,773,000 | |||||
Unrecognized compensation expense related to non-vested awards | $ 36,607,000 | 36,607,000 | |||||
Total fair value of shares vested in the period | 2,374,000 | $ 421,000 | $ 11,906,000 | $ 13,609,000 | |||
RSUs | Employees and Directors | |||||||
Stock Award Compensation Expense | |||||||
Restricted stock grants (in shares) | 710,032 | 1,101,724 | |||||
RSUs | Employees and Directors | Anniversary 1 | |||||||
Stock Award Compensation Expense | |||||||
Vesting percentage for restricted stock grants | 33.33% | ||||||
RSUs | Employees and Directors | Anniversary 2 | |||||||
Stock Award Compensation Expense | |||||||
Vesting percentage for restricted stock grants | 33.33% | ||||||
RSUs | Employees and Directors | Anniversary 3 | |||||||
Stock Award Compensation Expense | |||||||
Vesting percentage for restricted stock grants | 33.33% | ||||||
RSUs | CEO | Anniversary 1 | |||||||
Stock Award Compensation Expense | |||||||
Vesting percentage for restricted stock grants | 25.00% | ||||||
RSUs | CEO | Anniversary 2 | |||||||
Stock Award Compensation Expense | |||||||
Vesting percentage for restricted stock grants | 25.00% | ||||||
RSUs | CEO | Anniversary 3 | |||||||
Stock Award Compensation Expense | |||||||
Vesting percentage for restricted stock grants | 25.00% | ||||||
RSUs | CEO | Anniversary 4 | |||||||
Stock Award Compensation Expense | |||||||
Vesting percentage for restricted stock grants | 25.00% | ||||||
Common Stock | |||||||
Stock Award Compensation Expense | |||||||
Stock repurchase program, maximum amount authorized | $ 100,000,000 | $ 100,000,000 | |||||
Repurchase of common stock | $ 35,800,000 | ||||||
Stock repurchased during period (in shares) | 1,815,783 | ||||||
Repurchased stock, average price per share (in dollars per share) | $ 19.74 | ||||||
Current Authorized Stock Repurchase Program | Common Stock | |||||||
Stock Award Compensation Expense | |||||||
Remaining amount under board authorization | $ 72,500,000 | $ 72,500,000 |
EQUITY AND STOCK-BASED COMPEN_4
EQUITY AND STOCK-BASED COMPENSATION - UNRECOGNIZED COMPENSATION EXPENSE RELATED TO NON-VESTED AWARDS (Details) - RSUs $ in Thousands | Mar. 31, 2020USD ($) |
Stock Award Compensation Expense | |
For the fiscal year remainder of 2020 | $ 5,384 |
2021 | 16,486 |
2022 | 10,057 |
2023 | 3,514 |
2024 | 734 |
Thereafter | 432 |
Total | $ 36,607 |
EQUITY AND STOCK-BASED COMPEN_5
EQUITY AND STOCK-BASED COMPENSATION - CHANGES IN RESTRICTED STOCK UNIT GRANTS (Details) - RSUs - $ / shares | 9 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Jun. 30, 2019 | |
Restricted Stock Units | ||
Non-vested balance, beginning (in shares) | 1,546,848 | 1,233,731 |
Granted (in shares) | 710,032 | 1,103,249 |
Vested (in shares) | (455,424) | (699,223) |
Canceled (in shares) | (98,757) | (90,909) |
Non-vested balance, ending (in shares) | 1,702,699 | 1,546,848 |
Weighted-Average Grant-Date Fair Value | ||
Non-vested balance, beginning, Weighted Average Grant Date Fair Value (in dollars per share) | $ 30.73 | $ 24.84 |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | 24.09 | 34.68 |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | 27.71 | 26.74 |
Canceled, Weighted Average Grant Date Fair Value (in dollars per share) | 29.46 | 29.46 |
Non-vested balance, ending, Weighted Average Grant Date Fair Value (in dollars per share) | $ 28.84 | $ 30.73 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Common Share | ||||
Net income | $ 56,057 | $ 38,821 | $ 138,138 | $ 114,497 |
Preferred stock dividends | (77) | (77) | (232) | (232) |
Net income attributable to common stockholders | $ 55,980 | $ 38,744 | $ 137,906 | $ 114,265 |
Average common shares outstanding (in shares) | 60,967,892 | 61,259,419 | 61,176,715 | 62,130,598 |
Total qualifying shares (in shares) | 60,967,892 | 61,259,419 | 61,176,715 | 62,130,598 |
Basic earnings per common share (in dollars per share) | $ 0.92 | $ 0.63 | $ 2.25 | $ 1.84 |
Diluted Earnings Per Common Share | ||||
Dilutive net income attributable to common stockholders | $ 55,980 | $ 38,744 | $ 137,906 | $ 114,265 |
Average common shares issued and outstanding (in shares) | 60,967,892 | 61,259,419 | 61,176,715 | 62,130,598 |
Total dilutive common shares outstanding (in shares) | 61,523,513 | 61,589,662 | 61,811,845 | 62,597,283 |
Diluted earnings per common share (in dollars per share) | $ 0.91 | $ 0.63 | $ 2.23 | $ 1.83 |
RSUs | ||||
Diluted Earnings Per Common Share | ||||
Dilutive effect of average unvested RSUs (in shares) | 555,621 | 330,243 | 635,130 | 466,685 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | 1 Months Ended | ||
Dec. 31, 2015claim | Mar. 31, 2020USD ($)claim | Aug. 10, 2017claim | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Loss contingency, new derivative actions filed | claim | 2 | ||
Loss contingency, number of pending derivative actions | claim | 6 | ||
Loss contingency, number of pending derivative actions to be consolidated | claim | 4 | ||
Loan Origination Commitments | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Off-balance sheet, loan origination commitment | $ 836,129 | ||
Loan Origination Commitments | Sales commitment | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Off-balance sheet, commitment | 166,080 | ||
Loan Origination Commitments | Fixed Interest Rate | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Off-balance sheet, loan origination commitment | $ 132,672 | ||
Weighted average fixed interest rate on commitments to extend credit | 2.94% | ||
Loan Origination Commitments | Fixed Interest Rate | Sales commitment | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Off-balance sheet, commitment | $ 166,080 | ||
Loan Origination Commitments | Variable Interest Rate | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Off-balance sheet, loan origination commitment | 703,457 | ||
Loan Origination Commitments | Variable Interest Rate | Sales commitment | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Off-balance sheet, commitment | $ 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Millions | 9 Months Ended | |
Mar. 31, 2020USD ($)loan | Mar. 31, 2019loan | |
Related Party Transactions [Abstract] | ||
Number of new related party loans granted | 3 | 1 |
Related party loan amount granted | $ | $ 4 | |
Number of related party loans refinanced | 1 | 1 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($)segment | Mar. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2019USD ($) | |
Segment Reporting [Abstract] | |||||||
Number of operating segments | 2 | 2 | |||||
Segment Reporting Information [Line Items] | |||||||
Net interest income | $ 148,616 | $ 129,169 | $ 360,339 | $ 308,168 | |||
Provision for loan and lease losses | 28,500 | 19,000 | 35,700 | 24,550 | |||
Non-interest income | 31,542 | 26,098 | 74,285 | 59,533 | |||
Non-interest expense | 71,790 | 81,815 | 204,222 | 185,670 | |||
INCOME BEFORE INCOME TAXES | 79,868 | 54,452 | 194,702 | 157,481 | |||
Goodwill | 71,222 | 70,654 | $ 71,222 | 71,222 | $ 71,222 | 70,654 | |
Total Assets | 12,159,919 | 10,875,561 | 12,159,919 | 12,159,919 | 12,159,919 | 10,875,561 | $ 11,220,238 |
Operating segments | Banking Business | |||||||
Segment Reporting Information [Line Items] | |||||||
Net interest income | 145,372 | 127,072 | 350,184 | 307,564 | |||
Provision for loan and lease losses | 28,500 | 19,000 | 35,700 | 24,550 | |||
Non-interest income | 25,259 | 21,027 | 57,274 | 54,462 | |||
Non-interest expense | 56,661 | 52,224 | 160,547 | 142,291 | |||
INCOME BEFORE INCOME TAXES | 85,470 | 76,875 | 211,211 | 195,185 | |||
Goodwill | 35,721 | 35,721 | 35,721 | 35,721 | 35,721 | 35,721 | |
Total Assets | 11,543,844 | 10,166,064 | 11,543,844 | 11,543,844 | 11,543,844 | 10,166,064 | |
Operating segments | Securities Business | |||||||
Segment Reporting Information [Line Items] | |||||||
Net interest income | 3,954 | 2,951 | 13,137 | 2,951 | |||
Provision for loan and lease losses | 0 | 0 | 0 | 0 | |||
Non-interest income | 6,402 | 5,071 | 19,087 | 5,071 | |||
Non-interest expense | 11,137 | 23,102 | 32,656 | 23,102 | |||
INCOME BEFORE INCOME TAXES | (781) | (15,080) | (432) | (15,080) | |||
Goodwill | 35,501 | 34,933 | 35,501 | 35,501 | 35,501 | 34,933 | |
Total Assets | 522,670 | 701,102 | 522,670 | 522,670 | 522,670 | 701,102 | |
Corporate/Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Net interest income | (710) | (854) | (2,982) | (2,347) | |||
Provision for loan and lease losses | 0 | 0 | 0 | 0 | |||
Non-interest income | (119) | 0 | (2,076) | 0 | |||
Non-interest expense | 3,992 | 6,489 | 11,019 | 20,277 | |||
INCOME BEFORE INCOME TAXES | (4,821) | (7,343) | (16,077) | (22,624) | |||
Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | |
Total Assets | $ 93,405 | $ 8,395 | $ 93,405 | $ 93,405 | $ 93,405 | $ 8,395 |