Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Aug. 25, 2023 | Dec. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 30, 2023 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Transition Report | false | ||
Entity File Number | 001-37709 | ||
Entity Registrant Name | AXOS FINANCIAL, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 33-0867444 | ||
Entity Address, Address Line One | 9205 West Russell Road, Suite 400, | ||
Entity Address, City or Town | Las Vegas, | ||
Entity Address, State or Province | NV | ||
Entity Address, Postal Zip Code | 89148 | ||
City Area Code | 858 | ||
Local Phone Number | 649-2218 | ||
Title of 12(b) Security | Common stock, $.01 par value | ||
Trading Symbol | AX | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,609,486,815 | ||
Entity Common Stock, Shares Outstanding | 59,984,909 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for the registrant’s 2023 Annual Meeting of Stockholders are incorporated by reference into Part III. | ||
Entity Central Index Key | 0001299709 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Jun. 30, 2023 | |
Audit Information [Abstract] | |
Auditor Name | BDO USA, P.A. |
Auditor Location | San Diego, CA |
Auditor Firm ID | 243 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 2,233,027 | $ 1,202,587 |
Cash segregated for regulatory purposes | 149,059 | 372,112 |
Total cash, cash equivalents, cash segregated | 2,382,086 | 1,574,699 |
Securities: | ||
Trading | 758 | 1,758 |
Available-for-sale | 232,350 | 262,518 |
Stock of regulatory agencies | 21,510 | 20,368 |
Loans held for sale, carried at fair value | 23,203 | 4,973 |
Loans held for sale, lower of cost or fair value | 776 | 10,938 |
Loans—net of allowance for credit losses of $166,680 as of June 30, 2023 and $148,617 as of June 30, 2022 | 16,456,728 | 14,091,061 |
Mortgage servicing rights, carried at fair value | 25,443 | 25,213 |
Securities borrowed | 134,339 | 338,980 |
Customer, broker-dealer and clearing receivables | 374,074 | 417,417 |
Goodwill and other intangible assets—net | 152,149 | 156,405 |
Other assets | 545,053 | 496,835 |
TOTAL ASSETS | 20,348,469 | 17,401,165 |
Deposits: | ||
Non-interest bearing | 2,898,150 | 5,033,970 |
Interest bearing | 14,224,958 | 8,912,452 |
Total deposits | 17,123,108 | 13,946,422 |
Advances from the Federal Home Loan Bank | 90,000 | 117,500 |
Borrowings, subordinated notes and debentures | 361,779 | 445,244 |
Securities loaned | 159,832 | 474,400 |
Customer, broker-dealer and clearing payables | 445,477 | 511,654 |
Accounts payable and other liabilities | 251,114 | 262,972 |
Total liabilities | 18,431,310 | 15,758,192 |
Commitments and Contingencies (Note 18) | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock—$0.01 par value; 150,000,000 shares authorized, 69,465,446 shares issued and 58,943,035 shares outstanding as of June 30, 2023; 68,859,722 shares issued and 59,777,949 shares outstanding as of June 30, 2022 | 695 | 689 |
Additional paid-in capital | 479,878 | 453,784 |
Accumulated other comprehensive income (loss)—net of tax | (6,610) | (2,933) |
Retained earnings | 1,735,609 | 1,428,444 |
Treasury stock, at cost; 10,522,411 shares as of June 30, 2023 and 9,081,773 shares as of June 30, 2022 | (292,413) | (237,011) |
Total stockholders’ equity | 1,917,159 | 1,642,973 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 20,348,469 | $ 17,401,165 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Assets: | ||
Allowance for loan and lease losses | $ 166,680 | $ 148,617 |
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, shares, issued (in shares) | 69,465,446 | 68,859,722 |
Common stock, shares outstanding (in shares) | 58,943,035 | 59,777,949 |
Treasury stock, shares (in shares) | 10,522,411 | 9,081,773 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
INTEREST AND DIVIDEND INCOME: | |||
Loans, including fees | $ 1,048,874 | $ 626,628 | $ 584,410 |
Securities borrowed and customer receivables | 18,657 | 20,512 | 20,466 |
Investments and other | 89,607 | 12,588 | 12,987 |
Total interest and dividend income | 1,157,138 | 659,728 | 617,863 |
INTEREST EXPENSE: | |||
Deposits | 339,481 | 33,620 | 60,529 |
Advances from the Federal Home Loan Bank | 12,644 | 4,625 | 4,672 |
Securities loaned | 3,673 | 1,124 | 1,496 |
Other borrowings | 18,219 | 13,201 | 12,424 |
Total interest expense | 374,017 | 52,570 | 79,121 |
Net interest income | 783,121 | 607,158 | 538,742 |
Provision for credit losses | 24,750 | 18,500 | 23,750 |
Net interest income, after provision for credit losses | 758,371 | 588,658 | 514,992 |
NON-INTEREST INCOME: | |||
Broker-dealer fee income | 46,503 | 22,880 | 26,317 |
Advisory fee income | 28,324 | 29,230 | 0 |
Banking and service fees | 32,938 | 28,752 | 29,137 |
Mortgage banking income | 7,101 | 19,198 | 42,641 |
Prepayment penalty fee income | 5,622 | 13,303 | 7,166 |
Total non-interest income | 120,488 | 113,363 | 105,261 |
NON-INTEREST EXPENSE: | |||
Salaries and related costs | 204,271 | 167,390 | 152,576 |
Data processing | 60,557 | 50,159 | 40,719 |
Depreciation and amortization | 23,387 | 24,596 | 24,124 |
Advertising and promotional | 37,150 | 13,580 | 14,212 |
Professional services | 29,268 | 22,482 | 22,241 |
Occupancy and equipment | 15,647 | 13,745 | 13,402 |
FDIC and regulatory fees | 15,534 | 11,823 | 10,603 |
Broker-dealer clearing charges | 13,433 | 15,184 | 11,152 |
General and administrative expense | 47,868 | 43,103 | 25,481 |
Total non-interest expense | 447,115 | 362,062 | 314,510 |
Income (Loss) before income taxes | 431,744 | 339,959 | 305,743 |
INCOME TAXES | 124,579 | 99,243 | 90,036 |
NET INCOME | 307,165 | 240,716 | 215,707 |
NET INCOME ATTRIBUTABLE TO COMMON STOCK, BASIC | 307,165 | 240,716 | 215,518 |
NET INCOME ATTRIBUTABLE TO COMMON STOCK, DILUTED | 307,165 | 240,716 | 215,518 |
COMPREHENSIVE INCOME | $ 303,488 | $ 235,276 | $ 219,151 |
Basic earnings per share (in dollars per share) | $ 5.15 | $ 4.04 | $ 3.64 |
Diluted earnings per share (in dollars per share) | $ 5.07 | $ 3.97 | $ 3.56 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME | $ 307,165 | $ 240,716 | $ 215,707 |
Net unrealized gain (loss) from available-for-sale securities, net of tax expense (benefit) of $(1,575), $(2,416), and $1,495 for the years ended June 30, 2023, 2022 and 2021, respectively. | (3,677) | (5,440) | 3,444 |
Other comprehensive income (loss) | (3,677) | (5,440) | 3,444 |
COMPREHENSIVE INCOME | $ 303,488 | $ 235,276 | $ 219,151 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (PARENTHETICAL) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net unrealized gain (loss) from available-for-sale securities, tax expense (benefit) | $ (1,575) | $ (2,416) | $ 1,495 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Impact of ASC 326 Adoption | Preferred Stock | Common Stock | Treasury | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss), Net of Income Tax | Retained Earnings | Retained Earnings Impact of ASC 326 Adoption |
Preferred stock, beginning balance (in shares) at Jun. 30, 2020 | 515 | ||||||||
Stockholders' equity, beginning balance at Jun. 30, 2020 | $ 1,230,846 | $ (37,088) | $ 5,063 | $ 673 | $ (195,125) | $ 411,873 | $ (937) | $ 1,009,299 | $ (37,088) |
Common stock, issued, beginning balance (in shares) at Jun. 30, 2020 | 67,323,053 | ||||||||
Common stock, treasury, beginning balance (in shares) at Jun. 30, 2020 | (7,710,418) | ||||||||
Common stock, outstanding, beginning balance (in shares) at Jun. 30, 2020 | 59,612,635 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 215,707 | 215,707 | |||||||
Other comprehensive income (loss) | 3,444 | 3,444 | |||||||
Cash dividends on preferred stock | (103) | (103) | |||||||
Preferred stock - Series A redemption (in shares) | (515) | ||||||||
Preferred stock - Series A redemption | (5,150) | $ (5,063) | (87) | ||||||
Purchase of treasury stock, treasury and outstanding (in shares) | (753,597) | (753,597) | |||||||
Purchase of treasury stock | (16,757) | $ (16,757) | |||||||
Stock-based compensation activity, issued (in shares) | 746,268 | ||||||||
Stock-based compensation activity, treasury (in shares) | (287,362) | ||||||||
Stock-based compensation activity, outstanding (in shares) | 458,906 | ||||||||
Stock-based compensation activity | 10,037 | $ 8 | $ (10,648) | 20,677 | |||||
Preferred stock, ending balance (in shares) at Jun. 30, 2021 | 0 | ||||||||
Stockholders' equity, ending balance at Jun. 30, 2021 | $ 1,400,936 | $ 0 | $ 681 | $ (222,530) | 432,550 | 2,507 | 1,187,728 | ||
Common stock, issued, ending balance (in shares) at Jun. 30, 2021 | 68,069,321 | ||||||||
Common stock, treasury, ending balance (in shares) at Jun. 30, 2021 | (8,751,377) | ||||||||
Common stock, outstanding, ending balance (in shares) at Jun. 30, 2021 | 59,317,944 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative effect of change in accounting principle net of tax, adoption of ASU No. 2016-13 | Accounting Standards Update 2016-13 [Member] | ||||||||
Net income | $ 240,716 | 240,716 | |||||||
Other comprehensive income (loss) | (5,440) | (5,440) | |||||||
Stock-based compensation activity, issued (in shares) | 790,401 | ||||||||
Stock-based compensation activity, treasury (in shares) | (330,396) | ||||||||
Stock-based compensation activity, outstanding (in shares) | 460,005 | ||||||||
Stock-based compensation activity | 6,761 | $ 8 | $ (14,481) | 21,234 | |||||
Preferred stock, ending balance (in shares) at Jun. 30, 2022 | 0 | ||||||||
Stockholders' equity, ending balance at Jun. 30, 2022 | $ 1,642,973 | $ 0 | $ 689 | $ (237,011) | 453,784 | (2,933) | 1,428,444 | ||
Common stock, issued, ending balance (in shares) at Jun. 30, 2022 | 68,859,722 | 68,859,722 | |||||||
Common stock, treasury, ending balance (in shares) at Jun. 30, 2022 | (9,081,773) | (9,081,773) | |||||||
Common stock, outstanding, ending balance (in shares) at Jun. 30, 2022 | 59,777,949 | 59,777,949 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative effect of change in accounting principle net of tax, adoption of ASU No. 2016-13 | Accounting Standards Update 2016-13 [Member] | ||||||||
Net income | $ 307,165 | 307,165 | |||||||
Other comprehensive income (loss) | (3,677) | (3,677) | |||||||
Purchase of treasury stock, treasury and outstanding (in shares) | (1,321,161) | (1,321,161) | |||||||
Purchase of treasury stock | (49,258) | $ (49,258) | |||||||
Stock-based compensation activity, issued (in shares) | 605,724 | ||||||||
Stock-based compensation activity, treasury (in shares) | (119,477) | ||||||||
Stock-based compensation activity, outstanding (in shares) | 486,247 | ||||||||
Stock-based compensation activity | 19,956 | $ 6 | $ (6,144) | 26,094 | |||||
Preferred stock, ending balance (in shares) at Jun. 30, 2023 | 0 | ||||||||
Stockholders' equity, ending balance at Jun. 30, 2023 | $ 1,917,159 | $ 0 | $ 695 | $ (292,413) | $ 479,878 | $ (6,610) | $ 1,735,609 | ||
Common stock, issued, ending balance (in shares) at Jun. 30, 2023 | 69,465,446 | 69,465,446 | |||||||
Common stock, treasury, ending balance (in shares) at Jun. 30, 2023 | (10,522,411) | (10,522,411) | |||||||
Common stock, outstanding, ending balance (in shares) at Jun. 30, 2023 | 58,943,035 | 58,943,035 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative effect of change in accounting principle net of tax, adoption of ASU No. 2016-13 | Accounting Standards Update 2016-13 [Member] |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 307,165 | $ 240,716 | $ 215,707 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 23,387 | 24,596 | 24,124 |
Other accretion and amortization | (1,616) | 3,933 | 4,752 |
Stock-based compensation expense | 26,100 | 21,242 | 20,685 |
Trading activity | 1,000 | 225 | (1,878) |
Provision for credit losses | 24,750 | 18,500 | 23,750 |
Deferred income taxes | (19,586) | (9,400) | (8,828) |
Origination of loans held for sale | (160,607) | (656,487) | (1,608,700) |
Unrealized and realized gains on loans held for sale | (7,999) | (16,237) | (41,172) |
Proceeds from sale of loans held for sale | 149,091 | 689,530 | 1,671,515 |
Amortization and change in fair value of mortgage servicing rights | 634 | (2,228) | 6,319 |
Net change in assets and liabilities which provide (use) cash: | |||
Securities borrowed | 204,641 | 280,108 | (396,720) |
Customer, broker-dealer and clearing receivables | 43,342 | (43,925) | (149,549) |
Other Assets | (13,724) | (107,314) | (7,460) |
Securities loaned | (314,568) | (254,588) | 473,043 |
Customer, broker-dealer and clearing payables | (66,177) | (23,771) | 187,811 |
Accounts payable and other liabilities | (7,874) | 45,382 | (817) |
Net cash provided by operating activities | 187,959 | 210,282 | 412,582 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of available-for-sale investment securities | (32,669) | (143,733) | (122,338) |
Proceeds from sale and repayment of available-for-sale investment securities | 57,989 | 131,868 | 74,667 |
Purchase of stock of regulatory agencies | (108,724) | (54,350) | (305) |
Proceeds from redemption of stock of regulatory agencies | 108,724 | 54,350 | 920 |
Origination of loans held for investment | (8,346,443) | (10,325,104) | (5,761,303) |
Proceeds from sale of loans originally classified as held for investment | 14,185 | 106,324 | 80,049 |
Mortgage warehouse loan activity, net | 30,773 | 333,562 | |
Mortgage warehouse loan activity, net | (139,806) | ||
Proceeds from sale of other real estate owned and repossessed assets | 4,167 | 8,654 | 1,586 |
Proceeds from BOLI claim settlement | 2,778 | 0 | 0 |
Acquisition of business activity, net of cash acquired | (5,531) | (54,597) | 0 |
Purchase of loans and leases, net of discounts and premiums | (1,564) | (33,085) | (3,619) |
Principal repayments on loans | 5,916,179 | 7,220,931 | 5,013,817 |
Purchases of furniture, equipment, software and intangibles | (30,215) | (21,504) | (10,437) |
Net cash used in investing activities | (2,390,351) | (2,776,684) | (866,769) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net increase in deposits | 3,176,686 | 3,130,625 | (520,897) |
Repayments of the Federal Home Loan Bank term advances | (27,500) | (50,000) | (70,000) |
Net (repayment) proceeds of Federal Home Loan Bank other advances | 0 | (186,000) | 181,000 |
Net (repayment) proceeds of other borrowings | (84,300) | 75,300 | 14,700 |
Tax payments related to settlement of restricted stock units | (6,144) | (14,481) | (10,648) |
Purchase of treasury stock | (48,963) | 0 | (16,757) |
Proceeds from issuance of subordinated notes | 0 | 150,000 | 175,000 |
Payment of debt issuance costs | 0 | (2,120) | (2,748) |
Redemption of subordinated notes | 0 | 0 | (51,000) |
Repayment of Paycheck Protection Program Liquidity Facility advances | 0 | 0 | (151,952) |
Redemption of Preferred Stock, Series A | 0 | 0 | (5,150) |
Cash dividends paid on preferred stock | 0 | 0 | (103) |
Net cash provided by (used in) financing activities | 3,009,779 | 3,103,324 | (458,555) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 807,387 | 536,922 | (912,742) |
CASH AND CASH EQUIVALENTS—Beginning of year | 1,574,699 | 1,037,777 | 1,950,519 |
CASH AND CASH EQUIVALENTS—End of year | 2,382,086 | 1,574,699 | 1,037,777 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Interest paid on interest-bearing liabilities | 368,311 | 50,269 | 77,995 |
Income taxes paid | 131,365 | 99,701 | 92,506 |
Transfers to other real estate and repossessed vehicles from loans held for investment | 12,664 | 2,134 | 1,903 |
Transfers from loans held for investment to loans held for sale | 14,185 | 105,884 | 71,136 |
Transfers from loans held for sale to loans and leases held for investment | 690 | 3,098 | 29,616 |
Operating lease liabilities from obtaining right of use assets | 3,400 | 6,876 | 0 |
Impact of adoption of ASC 326 on retained earnings | 0 | 0 | 37,088 |
Securities transferred from available-for-sale portfolio to other assets | $ 0 | $ 0 | $ 70,751 |
Cumulative effect of change in accounting principle net of tax, adoption of ASU No. 2016-13 | Accounting Standards Update 2016-13 [Member] | Accounting Standards Update 2016-13 [Member] | Accounting Standards Update 2016-13 [Member] |
ORGANIZATIONS AND SUMMARY OF SI
ORGANIZATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
ORGANIZATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ORGANIZATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation . The Consolidated Financial Statements include the accounts of Axos Financial, Inc. (“Axos”) and its wholly owned subsidiaries, Axos Bank (the “Bank”) and Axos Nevada Holding, LLC (“Axos Nevada Holding,” collectively, the “Company”). Axos, the Bank and Axos Nevada Holding comprise substantially all of the Company’s assets and liabilities and revenue and expenses. Axos Bank and its wholly owned subsidiaries constitute the Banking Business segment and Axos Nevada Holding and its wholly owned subsidiaries constitute the Securities Business segment. All significant intercompany balances and transactions have been eliminated in consolidation. The Notes to the Consolidated Financial Statements are an integral part of the Company’s financial statements. Certain reclassifications have been made to the Consolidated Balance Sheets, Consolidated Statements of Income and Consolidated Statements of Cash Flows to conform to the current period presentation. These reclassifications had no effect on the Company’s results of operations, financial position or net cash flows from/used in operating activities, investing activities or financing activities. Axos Financial, Inc. was incorporated in the State of Delaware on July 6, 1999 for the purpose of organizing and launching an internet-based savings bank. The Bank, which opened for business over the internet on July 4, 2000, is subject to regulation and examination by the Office of the Comptroller of the Currency (“OCC”), its primary regulator. The Federal Deposit Insurance Corporation (“FDIC”) insures the Bank’s deposit accounts up to the maximum allowable amount. Axos Clearing LLC, a clearing broker dealer, is regulated by the SEC and FINRA. Axos Invest, a platform through which digital investment advisory services are offered to retail investors, is regulated by the SEC and FINRA. Business . The Company provides banking and securities products and services to its customers through its online and low-cost distribution channels and affinity partners. The Bank’s deposit products are demand accounts, savings and money market accounts, and time deposits marketed to consumers and businesses located in all fifty states. The Bank’s lending products include residential single family mortgage, multifamily mortgage, commercial mortgage loans, loans secured by commercial real estate properties (“CRE”), loans secured by commercial assets and non-bank lenders (Commercial & Industrial - Non-Real Estate), auto and unsecured loans and other loans. The Bank’s lending business is primarily concentrated in California and New York and is subject to the general economic conditions of those states. Securities products and services generate interest and fee income by providing comprehensive securities clearing and custody services to introducing broker-dealers and registered investment advisor correspondents and digital investment advisory services to retail investors, respectively. Use of Estimates . In preparing the Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, fair value of trading and available-for-sale debt securities and the valuation of goodwill and intangibles. Revenue Recognition. The Company accounts for certain revenue streams under Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”), which provides that an entity shall recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Certain non-interest income, such as deposit service fees, advisory fee income and broker-dealer clearing fees, are within the scope of ASC 606. Advisory Fee Income—Asset-Based Custody Fees and Asset-Based Fund Fees. Asset-based custody fees consist of custody fees, and other ancillary fees. Custody fees vary based on a percentage of average customer assets under custody. Other ancillary fees may be charged based on average customer assets or based on specific activity. Revenue is recognized over the period where assets are held as the customer simultaneously receives and consumes the benefits. Asset-based fund fees consist of 12b-1 and mutual fund stockholder services fees and are paid by mutual fund companies periodically based on the underlying agreements. Asset-based fund fees are charged based on a percentage of client assets invested in certain funds. Revenue is calculated each month based on the average daily assets invested in particular funds. Revenue is recognized over the period where assets are invested in certain funds. The performance obligations relate to providing recordkeeping, stockholder and administration services to mutual fund companies and revenue recognition is constrained until the amount of average assets invested in each fund is known. Broker-Dealer Clearing Fees. The Company earns revenues for executing, settling and clearing securities transactions for other broker-dealers on a fully disclosed basis. Trade execution and clearing services, when provided together, represent a single performance obligation as the services are not separately identifiable in the context of the contract. Revenues associated with combined trade execution and clearing services, as well as trade execution services on a standalone basis, are recognized at a point in time on trade-date. The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying security or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership have been transferred to/from the customer. The Company also earns revenues for services which are separately identifiable and represent a distinct performance obligation which is recognized over time as the customer simultaneously receives and consumes the benefits. Certain clearing or other related fees represent a modification of the original contract as they are distinct services. All trade and execution services are priced at their standalone selling price. Clearing and other fees are generally deducted from the introducing brokers’ commissions on a monthly basis. Banking and Service Fees—Deposit Service Fees. Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied and related revenue recognized, when incurred. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Banking and Service Fees—Card Fees. Fees, exchange, and other service charges are primarily comprised of debit card income, ATM fees, merchant services income, and other service charges. Debit card income is primarily comprised of interchange fees earned whenever the Company’s debit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Banking and Service Fees—Bankruptcy Trustee and Fiduciary Service Fees. Bankruptcy Trustee and Fiduciary Service income is primarily comprised of fees earned from the Monthly Basis Point Fee and Bank Account Service Charge. The products and services provided to the Trustee also indirectly provide additional deposits to the other banks. One of the uses of the increased deposits by the other banks is to fund the fees paid. The performance obligation is satisfied when the deposits are increased (or decreased) at the end of each month. The expected value method will be used to calculate and record the estimated revenue at the beginning of each month with a subsequent reconciliation to actual at the end of each month. The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of ASC 606 for the periods indicated: Year Ended June 30, (Dollars in thousands) 2023 2022 2021 Advisory fee income $ 28,324 $ 28,309 $ — Broker-dealer clearing fees 21,903 19,754 22,156 Deposit service fees 4,517 4,508 4,173 Card fees 4,410 3,764 3,625 Bankruptcy trustee and fiduciary service fees 6,107 3,099 1,380 Non-interest income (in-scope ASC 606) 65,261 59,434 31,334 Non-interest income (out-of-scope ASC 606) 55,227 53,929 73,927 Total non-interest income $ 120,488 $ 113,363 $ 105,261 Contract Balances. A contract asset or receivable is recognized if the Company performs a service or transfers a good in advance of receiving consideration. A contract liability is recognized if the Company receives consideration (or has the unconditional right to receive consideration) in advance of performance. As of June 30, 2023 and 2022, respectively, the Company’s contract assets and liabilities were not considered material. Other. Income from bank owned life insurance is accounted for in accordance with ASC 325, Investments - Other. Increases in the net cash surrender value of the policies, as well as insurance proceeds received, are recorded in non-interest income and are not subject to income taxes. Lending related income includes fees earned from gains or losses on the sale of loans, SBA income, and letter of credit fees. Gains and losses on the sale of loans and Small Business Administration (“SBA”) income are recognized pursuant to ASC 860, Transfers and Servicing. Gain or loss on the sale of financial assets is measured as the net assets received from the sale less the carrying amount of the loan sold. The net assets received from the sale represent the fair value of any assets obtained or liabilities incurred as part of the transaction, including but not limited to cash, servicing assets, retained securitization investments and recourse obligations. Fees related to standby letters of credit are accounted for in accordance with ASC 440, Commitments. Net gain or loss on sales / valuations of repossessed and other assets is presented as a component of non-interest expense but may also be presented as a component of non-interest income in the event that a net gain is recognized. Net gain or loss on sales of repossessed and other assets are accounted for in accordance with ASC 610, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets. Cash and Cash Equivalents . The Bank’s cash, due from banks, money market mutual funds and federal funds sold, all of which have original maturities within 90 days, consist of cash and cash equivalents. The table below presents Cash and Cash Equivalents based on non-interest-earning and interest-earning status. At June 30, (Dollars in thousands) 2023 2022 Non-interest-earning cash and cash equivalents $ 92,645 $ 35,467 Interest-earning cash and cash equivalents 2,289,441 1,539,232 Total cash and cash equivalents $ 2,382,086 $ 1,574,699 Cash segregated for regulatory purposes . This line item includes qualified deposits in special reserve bank accounts for the exclusive benefit of Axos Clearing customers in accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and other regulations. Securities . The Company classifies securities at the time of purchase depending on intent. Debt securities are classified as held-to-maturity and carried at amortized cost when management has both the positive intent and ability to hold them to maturity. Debt securities are classified as available-for-sale when they might be sold before maturity. Securities available-for-sale are reported at estimated fair value, with unrealized gains and losses, net of the related tax effects, excluded from operations and reported as a separate component of “Accumulated other comprehensive income or loss” on the Consolidated Balance Sheets. Trading securities refer to certain types of assets that banks hold for resale at a profit or when the Company elects to account for certain securities at fair value. Increases or decreases in the fair value of trading securities are recognized in earnings as they occur. Gains and losses on securities sales are based on a comparison of sales proceeds and the amortized cost of the security sold using the specific identification method. Purchases and sales are recognized on the trade date. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are amortized or accreted using the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates at the individual security level whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. The remaining change in fair value is recognized in “Other comprehensive income” on the Consolidated Statements of Comprehensive Income. Changes in the allowance for credit losses, if any, are recorded as a provision for (or reversal of) credit losses. Losses are charged against the allowance when management believes the available-for-sale investment security is confirmed as uncollectible or when either of the criteria regarding intent or requirement to sell is met. Loans (including Direct Financing & Sales Type Leases) . Loans that are held for investment are loans that management has the intent and ability to hold for the foreseeable future or until maturity are reported at the principal balance outstanding, net of unearned interest, deferred purchase premiums and discounts, deferred loan origination fees and costs, and an allowance for credit loss - loans. Interest income is accrued on the unpaid principal balance. Premiums and discounts on loans purchased as well as loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method. Single Family - Mortgage & Warehouse. The Single Family - Mortgage & Warehouse portfolio segment primarily consists of two loan types: single family mortgage loans and single family warehouse lines of credit. The single family mortgage loans consist of fixed-rate and adjustable-rate loans secured by one-to-four family residences located in the U.S. Terms typically range from 15 to 30 years. The single family warehouse lines of credit enable the mortgage originators to close loans in their own names and temporarily finance inventories of closed mortgage loans until they can be sold to an approved investor. The Company also originates home equity lines of credit and second mortgage loans. Multifamily and Commercial Mortgage. The Multifamily and Commercial Mortgage portfolio segment consists of loans secured by multifamily real estate (more than four units) and commercial real estate (typically from $0.5 million to $50 million). These loans are dependent on the cash flow capacity of the project and repayment of loans secured by properties frequently depends on their successful operation and management. Commercial Real Estate. The Commercial Real Estate portfolio segment consists of loans across the U.S. secured by commercial real estate properties (“CRE”) under a variety of structures that it classifies as commercial real estate. A few examples are as follows: Commercial Bridge to Sale, Commercial Bridge to Construction, Commercial Bridge to Refinance and Acquisition, Development, Construction and Lender Finance. CRE Loans are originated to businesses secured by first liens on single family, multifamily, condominium, office, retail, mixed-use, hospitality, undeveloped or to-be-redeveloped land. Repayment of CRE loans depends on the successful completion of the real estate transition project and permanent take-out. Commercial & Industrial - Non-Real Estate (Non-RE). The Commercial & Industrial - Non-Real Estate portfolio segment consists of commercial and industrial non-real estate, asset-backed loans, lines of credit, term loans, leveraged cash flow loans and equipment financing leases. These receivables are generally secured by commercial assets, including, but not limited to, receivables, inventory and equipment. For commercial and industrial non-real estate, asset backed loans and line of credit term loans, the Company typically enters into a structured facility, under which it takes a senior lien position collateralized by the underlying assets at advance rates well below the collateral value. Leveraged cash flow loans provide financial sponsors the ability to finance acquisitions, management buy-outs, recapitalizations, debt refinancing and dividends/distributions. Such lending relies on free cash flow as the primary repayment source, and enterprise value as the secondary repayment source. The Company’s equipment financing lease arrangements do not qualify as a sale as the Company does not obtain control of the assets in the ongoing sale leaseback arrangements. Therefore, the leased equipment is not capitalized on the Consolidated Balance Sheets. 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 and is included within the Loans, including fees, line item in the Consolidated Statements of Income. Leases generally do not contain non-lease components. Commercial and industrial leases are primarily made based on the operating cash flows of the borrower or conversion of working capital assets to cash and secondarily on the underlying collateral provided by the borrower. Auto and Consumer. The Auto and Consumer portfolio segment consists of the following distinct classes: Auto. The Auto class consists of prime loans to customers secured by new and used vehicles. The Company holds all of the auto loans originated and performs loan servicing functions for these loans. Auto loans carry a fixed interest rate and have terms that range from two Consumer Unsecured Lending. The Consumer Unsecured Lending class consists of fixed rate unsecured loans to well-qualified, individual borrowers in all fifty states. Loans are normally in the range between $7,000 and $50,000 with terms that range between 36 months and 72 months. Other. Other loans include structured settlements, SBA loans issued pursuant to the Federal Paycheck Protection Program (“PPP”) under the Federal Coronavirus Aid, Relief and Economic Security Act (“CARES”) Act and account overdraft loans. Recognition of interest income on all portfolio segments is generally discontinued at the time the loan is 90 days delinquent unless the loan is well secured and in process of collection. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for loans placed on nonaccrual, is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loans Held for Sale . Loans held for sale includes agency loans and non-agency loans held for sale. Agency loans originated and intended for sale in the secondary market are carried at fair value. Net unrealized gains and losses are recognized through mortgage banking income in the income statement. The Bank sells its mortgage loans with either servicing released or servicing retained depending upon market pricing. Gains and losses on loan sales are recorded as mortgage banking income, based on the difference between sales proceeds and carrying value. Non-agency loans held for sale are carried at the lower of cost or fair value. 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. Loans that were originated with the intent and ability to hold for the foreseeable future (loans held for investment), but which have been subsequently designated as being held for sale for risk management or liquidity needs are carried at the lower of cost or fair value calculated using pools of loans with similar characteristics. Upon transfer, the Company assesses the collectability of the outstanding principal balance and may charge-off a portion of the loan as discussed further below in “Allowance for Credit Losses.” Following this assessment, any previously established ACL on the held for investment loan is reversed and the loan is transferred at amortized cost. If, following transfer to held for sale, the fair value of the loan is below its amortized cost a valuation allowance is established for the difference. There may be times when loans have been classified as held for sale and cannot be sold or the Company has the intent and ability to hold the loan for the foreseeable future or to maturity and the loans are transferred to held for investment. For loans transferred from the lower of cost or fair value held for sale classification, any valuation allowance is reversed upon transfer and the loan is transferred at amortized cost and is then assessed for any potential allowance for credit losses (“ACL”). Allowance for Credit Losses. The ACL is a valuation account that offsets the amortized cost basis of loans and net investment in leases. Under ASC 326, amortized cost is the basis on which the ACL is determined. Amortized cost is principal outstanding, net of any purchase premiums and discounts and net of any deferred loan fees and costs. Credit losses are charged off when the Company believes that collectability of at least some portion of outstanding principal is unlikely. These charge-offs are recorded as a reversal, thereby reducing, the allowance for credit losses. Recoveries on loans previously charged off are recorded as an increase to the allowance for credit losses. The allowance for credit losses is maintained at a level needed to absorb expected credit losses over the contractual life, considering the effects of prepayments, of the loan portfolio as of the reporting date. Determining the adequacy of the allowance for credit losses is complex and requires judgment by Management about the effect of matters that are inherently uncertain. As such, a future assessment of current conditions may require material adjustments to the allowance. The Company’s process for determining expected life-time credit losses entails a portfolio, model-based approach utilizing loan level detail and requires consideration of a broad range of relevant information relating to historical loss experience, current economic conditions and reasonable and supportable forecasts. A credit loss is estimated for all loans. Consequently, the Company stratifies the full loan population into segments sharing similar characteristics to perform the evaluation of the credit loss collectively. The Company defines a loan portfolio segment as the level at which the Company develops a systematic methodology to determine the allowance, which is generally based on similar risk attributes, including underlying collateral, as well as the Company’s methods for monitoring credit risk and other factors. The Company categorizes the loan portfolio into six segments: Single Family - Mortgage & Warehouse, Multifamily and Commercial Mortgage, Commercial Real Estate, including construction lending, Commercial & Industrial - Non Real Estate, Auto & Consumer and Other. For further information on these loan portfolio segments, see “Loans” herein. The method for estimating expected life-time credit losses includes, among other things, the following main components: 1) The use of a probability of default (“PD”)/loss given default (“LGD”) model; 2) defining a number of economic scenarios across the benign to adverse spectrum; 3) a reasonable forecast period of 24 months for all loan segments; and 4) a reversion period of 12 months using a linear transition to historical loss rates for each loan pool. After the reversion period, the historical loss rate is applied over the remaining contractual life of loan. Reasonable forecast periods and reversion periods are subject to periodic review and may be adjusted based on the Company’s view of current economic conditions. The results of the estimate are calculated for several scenarios across the benign to adverse spectrum for each of the Company’s loan portfolio segments. The weighting of scenarios is subject to periodic review and may be adjusted based on the Company’s view of current economic conditions. Given the inherent limitations of a solely quantitative model, qualitative adjustments are included to arrive at the ending calculated loss amount in order to account for data points not captured from quantitative inputs alone. Qualitative criteria we consider includes, among other things, the following: • Regulatory and Legal - matters that may impact the timeliness and/or amounts of repayments; • Concentration - portfolio composition and loan concentration; • Collateral Dependency - changes in collateral values; • Lending/Underwriting Standards - current lending policies and the effects of any new policies; • Nature and Volume - loan production volume and mix; • Macroeconomic Environment - considerations not reflected in the data utilized in the model; and • Loan Trends - credit performance trends, including a borrower’s financial condition and credit rating. Specifically, Management reviews whether the model reflects the appropriate level of PD and LGD, given the macroeconomic forecasts used as compared to the Company’s loan portfolio. Management determines the adequacy of the allowance for credit losses based on reviews of individual loans, recent loss experience, current economic conditions, expectations about future economic conditions, the risk characteristics of the various categories of loans, including loan-to-value ratios, and other pertinent factors. If, based on Management’s evaluation, macroeconomic factors do not capture Management’s assumption regarding collateral values (LGD) and defaults (PD), Management will apply additional qualitative overlays to the loan portfolio. This evaluation is inherently subjective and requires estimates that are susceptible to significant revision as more information becomes available. Accrued Interest . Accrued interest receivable is excluded from amortized cost and is presented separately in “Other Assets” on the Consolidated Balance Sheets. Additionally, the Company does not estimate an allowance for credit losses on accrued interest receivable as the Company has a policy to charge off accrued interest deemed uncollectible in a timely manner. When a loan is placed on non-accrual status, which occurs when a borrower becomes delinquent by 90 days, interest previously accrued but not collected is reversed against current period interest income. Individually Assessed Loans. Credit loss is estimated for any individual loan on a collective basis, unless an individual loan’s credit characteristics has deteriorated below a range of the overall group, in which case the loan would then be individually assessed. Individually assessed loans are measured for credit loss based on present value of future expected cash flows, discounted at the loan’s effective interest rate or the fair value of the collateral, less estimated selling costs, if the loan is collateral-dependent. Loan Commitments. Loans commitments not unconditionally cancellable are subject to an estimate of credit loss under a current expected credit loss model. The Company’s process for determining the estimate of credit loss on loan commitments is the same as it is on loans. Refer to detail of Allowance on Credit Losses above. Allowance on Credit Losses of off-balance sheet commitments is presented separately in “Accounts payable and other liabilities” on the Consolidated Balance Sheets. Leases - Lessee Arrangements. The Company leases office space under operating lease agreements scheduled to expire at various dates. The Company accounts for leases under ASC 842, Leases . 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, which is a blended rate comprised of the FHLB term rate and the Company’s subordinated debt 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. Right-of-use assets are reported in “Other assets” on the Consolidated Balance Sheets, and the related lease liabilities are reported in “Accounts payable, accrued liabilities and other liabilities.” All leases are recorded on the Consolidated Balance Sheets. Lease expense is recognized on a straight-line basis over the lease term and is recorded in “Occupancy and equipment” expense in the Consolidated Statements of Income. Mortgage Servicing Rights . Mortgage servicing assets are recognized when rights are retained upon sale of loans. The Company measures its servicing asset using the fair value method. Under the fair value method, the servicing rights are included on the Consolidated Balance Sheets at fair value. The changes in fair value are reported in earnings in the period in which the changes occur and the adjustments are included in “Mortgage banking income,” a component of non-interest income in the Consolidated Statements of Income. Derivatives . Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS E*TRADE Advisor Services Acquisition. On August 2, 2021, the Company’s subsidiary, Axos Clearing, LLC, acquired certain assets and liabilities of E*TRADE Advisor Services (“EAS”), the registered investment advisor custody business of Morgan Stanley. This business was rebranded as Axos Advisor Services (“AAS”). AAS adds incremental fee income, a turnkey technology platform used by independent registered investment advisors for trading and custody services, and low cost deposits that can be used to generate fee income from other bank partners or to fund loan growth at Axos Bank. The purchase price of $54.8 million consisted entirely of cash consideration paid upon acquisition and working capital adjustments. Non-interest income of $30.2 million was recognized in the year ended June 30, 2022 in the Consolidated Statements of Income for operating results from the date of acquisition. The Company incurred acquisition-related costs totaling $0.04 million for the year ended June 30, 2022. These costs are recognized in general and administrative expenses in the Consolidated Statements of Income. The acquisition is accounted for as a business combination under the acquisition method of accounting. Accordingly, tangible and intangible assets acquired (and liabilities assumed) are recorded at their estimated fair values as of the date of acquisition. The final allocation of the $54.8 million purchase price consisted of $14.2 million of fair value of tangible assets acquired, which included $7.8 million of a right-of-use lease asset, $10.9 million of liabilities assumed, which included $7.8 million of a lease liability, $27.1 million of identifiable intangible assets and $24.4 million of goodwill, all of which is expected to be deductible for tax purposes. Identifiable intangible assets with a finite useful are amortized on a straight-line basis. Goodwill was calculated as the excess of consideration exchanged over the fair value of identifiable net assets acquired. The goodwill includes synergies expected to result from combining the acquired assets and liabilities with existing operations, coupling its custody platform with the Company existing product offerings and leveraging customer relationships through RIAs. The following table summarizes the fair value and useful life of each intangible asset acquired as of the acquisition date: (Dollars in thousands) Fair Value Useful Lives (Years) Trade Name $ 290 0.16 Proprietary Technology 10,990 7 Customer Relationships 15,650 14 Non-Compete Agreements 130 1 Total $ 27,060 The following table presents the results of operations of AAS for the years ended June 30, 2022 and 2021 on an unaudited pro forma basis, as if the acquisition of the entity that was rebranded to AAS had been consummated on July 1, 2020 through the periods shown below. The unaudited pro forma financial information is provided for informational purposes only and is not necessarily indicative of what the Company’s results of operations would have been if the acquisition of AAS had occurred as of July 1, 2020, or the results of operations for any future periods. Additionally, the information presented as follows does not reflect any synergies or other strategic benefits as a result of acquisition. Pro Forma Year Ended June 30, (Dollars in thousands) 2022 2021 Non-interest income $ 32,949 $ 30,395 It is not practical to disclose net income on a pro forma basis as the assets and liabilities acquired are a component of a business. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC Topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices in active markets for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets include securities with quoted prices that are traded less frequently than exchange-traded instruments and whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models such as discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. When available, the Company generally uses quoted market prices to determine fair value. In some cases where a market price is available, the Company will make use of acceptable practical expedients (such as matrix pricing) to calculate fair value, in which case the items are classified in Level 2. The Company considers relevant and observable market prices in its valuations where possible. The frequency of transactions, the size of the bid-ask spread and the nature of the participants are some of the factors the Company uses to help determine whether a market is active and orderly or inactive and not orderly. Price quotes based upon transactions that are not orderly are not considered to be indicative of fair value and are given little, if any, weight in measuring fair value. If quoted market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sourced market parameters, such as interest rates, credit spreads, housing value forecasts, etc. Items valued using such internally generated valuation techniques are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable. The following section describes the valuation methodologies used by the Company to measure various financial instruments at fair value, including an indication of the level in the fair-value hierarchy in which each instrument is generally classified: Securities—trading and available-for-sale . Trading and Available-for-sale securities are recorded at fair value. Available-for-sale securities consist of mortgage-backed securities (“MBS”) issued by U.S. government-backed, including Ginnie Mae, or government-sponsored enterprises including Fannie Mae and Freddie Mac (“agency”), MBS issued by non-agencies and municipal securities. Fair value for agency securities and municipal securities are generally based on quoted market prices of similar securities used to form a dealer quote or a pricing matrix. These securities are classified in Level 2. There continues to be significant illiquidity in the market for MBS issued by non-agencies, impacting the availability and reliability of transparent pricing. As orderly quoted market prices are not available, the Level 3 fair values for these securities are determined by the Company utilizing industry-standard tools to calculate the net present value of the expected cash flows available to the securities from the underlying mortgage assets. The Company computes Level 3 fair values for each non-agency MBS in the same manner (as described below) whether available-for-sale or held-to-maturity. To determine the performance of the underlying mortgage loan pools, the Company estimates prepayments, defaults, and loss severities based on a number of macroeconomic factors, including housing price changes, unemployment rates, interest rates and borrower attributes such as credit score and loan documentation at the time of origination. The Company inputs for each security a projection of monthly default rates, loss severity rates and voluntary prepayment rates for the underlying mortgages for the remaining life of the security to determine the expected cash flows. The projections of default rates are derived by the Company from the historic default rate observed in the pool of loans collateralizing the security, increased by and decreased by the forecasted increase or decrease in the national unemployment rate. The projections of loss severity rates are derived by the Company from the historic loss severity rate observed in the pool of loans, increased by or decreased by the forecasted increase or decrease in the national home price index (“HPI”). The largest factors influencing the Company’s modeling of the monthly default rate are unemployment and the HPI, as a strong correlation exists. The most updated unemployment rate reported in June 2023 was 3.6%. Consensus estimates for unemployment are that the rate will increase. The Company agrees with consensus estimates and thus is projecting higher monthly default rates. The Company projects that severities will continue to improve as HPI improves. To determine the discount rates used to compute the present value of the expected cash flows for these non-agency MBS securities, the Company separates the securities by the borrower characteristics in the underlying pool. Specifically, “prime” securities generally have borrowers with higher FICO scores and better documentation of income. “Alt-A” securities generally have borrowers with a lower FICO and less documentation of income. “Pay-option ARMs” are Alt-A securities with borrowers that tend to pay the least amount of principal (or increase their loan balance through negative amortization). The Company calculates separate discount rates for prime, Alt-A and Pay-option ARM non-agency MBS securities using market-participant assumptions for risk, capital and return on equity. The default rates and the severities are projected for every non-agency MBS security held by the Company and will vary monthly based upon the actual performance of the security and the macroeconomic factors discussed above. Based upon the actual performance of the underlying collateral, the securities’ credit enhancement will be impacted. The range of existing credit enhancement is from 0.0% to 93.9%, with a weighted-average credit enhancement 20.9%. The Company applies its discount rates to the projected monthly cash flows, which already reflect the full impact of all forecasted losses using the assumptions described above. When calculating present value of the expected cash flows at June 30, 2023, the Company computed its discount rates as a spread between 261 and 750 basis points over the LIBOR Index using the LIBOR forward curve. The Company’s estimate of fair value for non-agency securities using Level 3 pricing is highly subjective and is based on the Company’s estimate of voluntary prepayments, default rates, severities and discount margins, which are forecasted monthly over the remaining life of each security. Changes in one or more of these assumptions can cause a significant change in the estimated fair value. For further details see the table later in this note that summarizes quantitative information about level 3 fair value measurements. Loans Held for Sale . Loans held for sale at fair value are primarily single-family residential loans. The fair value of residential loans held for sale is determined by pricing for comparable assets or by existing forward sales commitment prices with investors. These loans held for sale are classified under Level 2. Other Real Estate Owned and Repossessed Vehicles . Fair values are generally based on third party appraisals of the property, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. Mortgage Servicing Rights . Fair value is derived from market-driven valuation changes as well as modeled amortization involving the run-off of value that occurs due to the passage of time as individual loans are paid by borrowers. Market expectations about loan duration, and correspondingly the expected term of future servicing cash flows, may vary from time to time due to changes in expected prepayment activity, especially when interest rates rise or fall. Market expectations of increased loan prepayment speeds may negatively impact the fair value of the single family MSRs. Fair value is also dependent on the discount rate used in calculating present value, which is derived from observable market activity, market participants, and results in Level 3 classification. Management reviews and adjusts the discount rate on an ongoing basis. An increase in the discount rate would reduce the estimated fair value of the MSRs asset. Derivatives . The fair value of interest rate locks is estimated based on changes in to be announced (“TBA”) values which are based upon mortgage interest rates from the date the interest on the loan is locked, adjusted for items such as estimated fallout and costs to originate the loan. These are classified under level 2. The fair value of forward sale commitments is based upon prices in active secondary markets for identical securities or based on quoted market prices of similar assets used to form a dealer quote or a pricing matrix. If no such quoted price exists, the fair value of a commitment is determined by quoted prices for a similar commitment or commitments, adjusted for the specific attributes of each commitment. These are classified under level 2. The fair value of interest rate swaps and caps entered into to facilitate customer transaction activity is based upon observable market forward rate curves. These are classified under Level 2. FAIR VALUE - RECURRING BASIS The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: June 30, 2023 (Dollars in thousands) Significant Other Significant Total ASSETS: Securities—Trading: Municipal $ 758 $ — $ 758 Securities—Available-for-Sale: Agency MBS 1 $ 23,947 $ — $ 23,947 Non-Agency MBS 2 — 205,005 205,005 Municipal 3,398 — 3,398 Asset-backed securities and structured notes — — — Total—Securities—Available-for-Sale $ 27,345 $ 205,005 $ 232,350 Loans held for sale $ 23,203 $ — $ 23,203 Mortgage servicing rights $ — $ 25,443 $ 25,443 Other assets—Derivative instruments $ 919 $ — $ 919 LIABILITIES: Accrued expense and other liabilities—Derivative instruments $ 691 $ — $ 691 June 30, 2022 (Dollars in thousands) Significant Other Significant Total ASSETS: Securities—Trading: Municipal $ 1,758 $ — $ 1,758 Securities—Available-for-Sale: Agency MBS 1 $ 25,325 $ — $ 25,325 Non-Agency MBS 2 — 186,814 186,814 Municipal 3,248 — 3,248 Asset-backed securities and structured notes 47,131 — 47,131 Total—Securities—Available-for-Sale $ 75,704 $ 186,814 $ 262,518 Loans held for sale $ 4,973 $ — $ 4,973 Mortgage servicing rights $ — $ 25,213 $ 25,213 Other assets—Derivative Instruments $ — $ 464 $ 464 LIABILITIES: Accrued expense and other liabilities—Derivative instruments $ — $ — $ — 1 Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac. 2 Private sponsors of securities collateralized primarily by first - lien mortgage loans on commercial properties or by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option ARM mortgages. The following 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: Year Ended June 30, 2023 (Dollars in thousands) Securities- Mortgage Servicing Rights 1 Derivative Instruments, net Total Assets: Opening Balance $ 186,814 $ 25,213 $ 464 $ 212,491 Transfers into Level 3 — — — — Transfers out of Level 3 — — (464) (464) Total gains or losses for the period: Included in earnings—Mortgage banking income — (634) — (634) Included in other comprehensive income (4,464) — — (4,464) Purchases, retentions, issues, sales and settlements: Purchases/Retentions 30,000 864 — 30,864 Settlements (7,345) — — (7,345) Closing balance $ 205,005 $ 25,443 $ — $ 230,448 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ (634) $ — $ (634) 1 Earnings from mortgage servicing rights were attributable to: Time and payoffs, representing a decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period of $0.9 million, and an increase in MSR value resulting from market-driven changes in interest rates of $0.3 million. Additions to mortgage servicing rights were retained upon sale of loans held for sale. Year Ended June 30, 2022 (Dollars in thousands) Securities- Mortgage Servicing Rights 1 Derivative Instruments, net Total Assets: Opening Balance $ 67,615 $ 17,911 $ 2,205 $ 87,731 Transfers into Level 3 — — — — Transfers out of Level 3 — — — — Total gains or losses for the period: Included in earnings—Mortgage banking income — 2,278 (1,741) 537 Included in other comprehensive income (3,244) — — (3,244) Purchases, retentions, issues, sales and settlements: Purchases/Retentions 131,446 5,024 — 136,470 Settlements (9,003) — — (9,003) Closing balance $ 186,814 $ 25,213 $ 464 $ 212,491 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ 2,278 $ (1,741) $ 537 1 Earnings from mortgage servicing rights were attributable to: Time and payoffs, representing a decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period of $4.1 million, and an increase in MSR value resulting from market-driven changes in interest rates of $6.4 million. Additions to mortgage servicing rights were retained upon sale of loans held for sale. The table below summarizes the quantitative information about Level 3 fair value measurements as of the dates indicated: June 30, 2023 (Dollars in thousands) Fair Value Valuation Technique Unobservable Inputs Range and Weighted Average Securities – Non-agency MBS $ 205,005 Discounted Cash Flow Projected Constant Prepayment Rate, 0.0 to 59.7% (32.0%) 0.0 to 7.5% (2.4%) 0.0 to 68.7% (28.5%) 2.6 to 7.5% (2.7%) Mortgage Servicing Rights $ 25,443 Discounted Cash Flow Projected Constant Prepayment Rate, 6.1 to 40.1% (12.6%) 1.8 to 10.9 (7.7) 9.5 to 11.5% (9.6%) June 30, 2022 (Dollars in thousands) Fair Value Valuation Technique Unobservable Inputs Range and Weighted Average Securities – Non-agency MBS $ 186,814 Discounted Cash Flow Projected Constant Prepayment Rate, 0.0 to 30.0% (21.4%) 0.0 to 7.9% (2.2%) 0.0 to 68.4% (26.7%) 2.7 to 9.3% (2.8%) Mortgage Servicing Rights $ 25,213 Discounted Cash Flow Projected Constant Prepayment Rate, 7.9 to 56.3% (11.0%) 1.2 to 9.9 (8.4) 9.5 to 11.5% (9.5%) Derivative Instruments $ 464 Sales Comparison Approach Projected Sales Profit of Underlying Loans (3.1) to 0.8% (-1.2%) For mortgage-backed securities, significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for the projected loss severity and a directionally opposite change in the assumption used for projected prepayment rates. For mortgage servicing rights, significant increases in projected prepayment rates or discount rates in isolation would result in a significantly lower fair value measurement, while a significant increase in expected life in isolation would result in a significantly higher fair value measurement. Generally, a change in the projected prepayment rates is accompanied by a directionally opposite change in expected life. The table below summarizes the fair value of assets measured for impairment on a non-recurring basis: June 30, 2023 (Dollars in thousands) Quoted Prices in Significant Other Significant Balance Other real estate owned and foreclosed assets: Single family real estate $ — $ — $ 5,574 $ 5,574 Multifamily real estate — — 1,392 1,392 Autos — — 1,133 1,133 Total $ — $ — $ 8,099 $ 8,099 June 30, 2022 (Dollars in thousands) Quoted Prices in Significant Other Significant Balance Other real estate owned and foreclosed assets: Autos $ — $ — $ 798 $ 798 Total $ — $ — $ 798 $ 798 Other real estate owned and foreclosed assets, which are measured at the lower of carrying value or fair value less costs to sell, had a net carrying amount of $8.1 million after write-downs of $1.7 million at June 30, 2023. Our other real estate owned and foreclosed assets had a net carrying amount was $0.8 million after write-downs of $0.1 million during the year ended June 30, 2022.The aggregate fair value, contractual balance (including accrued interest), and unrealized gain for loans held for sale was as follows: At June 30, (Dollars in thousands) 2023 2022 2021 Aggregate fair value $ 23,203 $ 4,973 $ 29,768 Contractual balance 22,844 4,881 28,940 Unrealized gain $ 359 $ 92 $ 828 The total interest income and amount of gains and losses from changes in fair value included in earnings for the period indicated below for loans held for sale were: At June 30, (Dollars in thousands) 2023 2022 2021 Interest income $ 415 $ 739 $ 1,411 Change in fair value 57 (2,474) (6,680) Total $ 472 $ (1,735) $ (5,269) The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at the periods indicated: June 30, 2023 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) 1 Other real estate owned and foreclosed assets: Single family real estate $ 5,574 Sales comparison approach Adjustment for differences between the comparable sales 62.1 to 93.6% (62.1%) Multifamily real estate $ 1,392 Sales comparison approach and income approach Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, capitalization rate 49.8 to 54.5% (49.8%) Autos $ 1,133 Sales comparison approach Adjustment for differences between the comparable sales -5.5 to 9.8% (0.5%) June 30, 2022 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) 1 Other real estate owned and foreclosed assets: Autos $ 798 Sales comparison approach Adjustment for differences between the comparable sales -17.2 to 4.6% (-7.5%) 1 For other real estate owned and foreclosed assets, the ranges shown may vary positively or negatively based on the comparable sales reported in the current appraisal. In certain instances, the range can be significant due to small sample sizes and in some cases the property being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted. FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amount and estimated fair values of financial instruments at year-end were as follows: June 30, 2023 (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 2,382,086 $ 2,382,086 $ — $ — $ 2,382,086 Securities— trading 758 — 758 — 758 Securities—available-for-sale 232,350 — 27,345 205,005 232,350 Stock of regulatory agencies 21,510 — 21,510 — 21,510 Loans held for sale, at fair value 23,203 — 23,203 — 23,203 Loans held for sale, at lower of cost or fair value 776 — — 780 780 Loans held for investment—net 16,456,728 — — 16,417,183 16,417,183 Securities borrowed 134,339 — — 143,461 143,461 Customer, broker-dealer and clearing receivables 374,074 — — 386,082 386,082 Mortgage servicing rights 25,443 — — 25,443 25,443 Other assets - derivative instruments 919 — 919 — 919 Financial liabilities: Total deposits 17,123,108 — 17,064,084 — 17,064,084 Advances from the Federal Home Loan Bank 90,000 — 83,192 — 83,192 Borrowings, subordinated notes and debentures 361,779 — 327,564 — 327,564 Securities loaned 159,832 — — 159,416 159,416 Customer, broker-dealer and clearing payables 445,477 — — 445,447 445,447 Accrued expense and other liabilities - derivative instruments 691 — 691 — 691 June 30, 2022 (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 1,574,699 $ 1,574,699 $ — $ — $ 1,574,699 Securities—trading 1,758 — 1,758 — 1,758 Securities—available-for-sale 262,518 — 75,704 186,814 262,518 Stock of regulatory agencies 1 20,368 — 20,368 — 20,368 Loans held for sale, at fair value 4,973 — 4,973 — 4,973 Loans held for sale, at lower of cost or fair value 10,938 — — 10,985 10,985 Loans and leases held for investment—net 14,091,061 — — 14,015,157 14,015,157 Securities borrowed 338,980 — — 329,963 329,963 Customer, broker-dealer and clearing receivables 417,417 — — 414,383 414,383 Mortgage servicing rights 25,213 — — 25,213 25,213 Other assets - derivative instruments 464 — — 464 464 Financial liabilities: Total deposits 13,946,422 — 12,812,512 — 12,812,512 Advances from the Federal Home Loan Bank 117,500 — 117,500 — 117,500 Borrowings, subordinated notes and debentures 445,244 — 416,947 — 416,947 Securities loaned 474,400 — — 473,831 473,831 Customer, broker-dealer and clearing payables 511,654 — — 471,859 471,859 1 The prior period has been revised to conform to the current period presentation. 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 |
SECURITIES
SECURITIES | 12 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The amortized cost, carrying amount and fair value for the securities available-for-sale for the following periods were: June 30, 2023 Trading Available-for-sale (Dollars in thousands) Fair Amortized Unrealized Unrealized Fair Mortgage-backed securities (MBS): Agencies 1 $ — $ 27,024 $ — $ (3,077) $ 23,947 Non-agency 2 — 210,271 711 (5,977) 205,005 Total mortgage-backed securities — 237,295 711 (9,054) 228,952 Non-MBS: Municipal 758 3,656 — (258) 3,398 Asset-backed securities and structured notes — — — — — Total Non-MBS 758 3,656 — (258) 3,398 Total debt securities $ 758 $ 240,951 $ 711 $ (9,312) $ 232,350 June 30, 2022 Trading Available-for-sale (Dollars in thousands) Fair Amortized Unrealized Unrealized Fair Mortgage-backed securities (MBS): Agencies 1 $ — $ 27,722 $ 9 $ (2,406) $ 25,325 Non-agency 2 — 187,616 1,832 (2,634) 186,814 Total mortgage-backed securities — 215,338 1,841 (5,040) 212,139 Non-MBS: Municipal 1,758 3,529 — (281) 3,248 Asset-backed securities and structured notes — 47,000 131 — 47,131 Total Non-MBS 1,758 50,529 131 (281) 50,379 Total debt securities $ 1,758 $ 265,867 $ 1,972 $ (5,321) $ 262,518 1 Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac. 2 Private sponsors of securities collateralized primarily by first-lien mortgage loans on commercial properties or by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by prime, Alt-A or pay-option ARM mortgages. No credit losses were recognized on available-for-sale securities in the years ended June 30, 2023, 2022 and 2021. Based on the underlying government guarantees and other credit protection supporting our securities, there was no amount in the allowance for credit losses for available-for-sale debt securities at June 30, 2023 and June 30, 2022. The Company has no allowance for the available-for-sale debt securities in an unrealized loss position based on an analysis of: (1) the credit characteristics of the securities, such as the forecasted cash flows, credit ratings, credit enhancement, and external government backing as applicable, and (2) whether the Company is intending to sell or is required to sell any securities before recovering the amortized cost basis of the securities. The unrealized losses on available-for-sale securities are primarily driven by the increase in interest rates since the securities were purchased. The Company’s non-agency MBS available-for-sale portfolio with a total fair value of $205.0 million at June 30, 2023 consists of 17 different issues of senior and super senior securities. The face amounts of debt securities available-for-sale that were pledged to secure borrowings at June 30, 2023 and 2022 were $0.9 million and $1.2 million, respectively. The securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows: June 30, 2023 Available-for-sale securities in loss position for Less Than 12 More Than 12 Total (Dollars in thousands) Fair Gross Unrealized Losses Fair Gross Unrealized Losses Fair Gross Unrealized Losses MBS: Agencies $ 3,182 $ (16) $ 20,642 $ (3,061) $ 23,824 $ (3,077) Non-agency 107,982 (1,808) 95,385 (4,169) 203,367 (5,977) Total MBS securities 111,164 (1,824) 116,027 (7,230) 227,191 (9,054) Non-MBS: Municipal — — 3,398 (258) 3,398 (258) Total Non-MBS — — 3,398 (258) 3,398 (258) Total debt securities $ 111,164 $ (1,824) $ 119,425 $ (7,488) $ 230,589 $ (9,312) June 30, 2022 Available-for-sale securities in loss position for Less Than 12 More Than 12 Total (Dollars in thousands) Fair Gross Unrealized Losses Fair Gross Unrealized Losses Fair Gross Unrealized Losses MBS: Agencies $ 16,446 $ (1,338) $ 8,097 $ (1,068) $ 24,543 $ (2,406) Non-agency 92,796 (2,204) 4,751 (430) 97,547 (2,634) Total MBS securities 109,242 (3,542) 12,848 (1,498) 122,090 (5,040) Non-MBS: Municipal 3,248 (281) — — 3,248 (281) Total Non-MBS 3,248 (281) — — 3,248 (281) Total debt securities $ 112,490 $ (3,823) $ 12,848 $ (1,498) $ 125,338 $ (5,321) There were 37 and 14 securities that were in a continuous loss position as of June 30, 2023 and June 30, 2022 for a period of more than 12 months. There were 17 and 25, respectively, securities that were in a continuous loss position as of June 30, 2023 and June 30, 2022 for a period of less than 12 months. During the fiscal years ended June 30, 2023 and 2022, there were no sales of securities that realized any gain or loss. Sales of securities occurred in the year ended June 30, 2021 in the amount of $70.8 million with no realized gain or loss, for which cash was collected in the year ended June 30, 2022. The following table sets forth the expected maturity distribution of our mortgage-backed securities (“MBS”), which is based on assumed prepayment rates, and the contractual maturity distribution of our Non-MBS securities: At June 30, 2023 (Dollars in thousands) Total Amount Due Within One Year Due after One but within Five Years Due after Five but within Ten Years Due After Ten Years MBS: Agency 1 $ 27,024 $ 6,276 $ 13,110 $ 5,522 $ 2,116 Non-Agency 2 $ 210,271 $ 92,361 $ 115,533 $ 1,729 $ 648 Total MBS $ 237,295 $ 98,637 $ 128,643 $ 7,251 $ 2,764 Non-MBS Municipal $ 3,656 $ — $ — $ — $ 3,656 Total Non-MBS $ 3,656 $ — $ — $ — $ 3,656 Available-for-sale—Amortized Cost $ 240,951 $ 98,637 $ 128,643 $ 7,251 $ 6,420 Available-for-sale—Fair value $ 232,350 $ 95,913 $ 123,730 $ 6,576 $ 6,131 1 Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac. 2 Private sponsors of securities collateralized primarily by pools of 1-4 family residential, Alt-A or pay-option ARM mortgages and commercial mortgages. The components of the Company’s accumulated other comprehensive income (loss) are as follows: At June 30, (Dollars in thousands) 2023 2022 Available-for-sale debt securities—net unrealized gains (losses) $ (8,601) $ (3,349) Available-for-sale debt securities—non-credit related (845) (845) Subtotal (9,446) (4,194) Tax benefit (expense) 2,836 1,261 Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss) $ (6,610) $ (2,933) |
LOANS & ALLOWANCE FOR CREDIT LO
LOANS & ALLOWANCE FOR CREDIT LOSSES | 12 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
LOANS & ALLOWANCE FOR CREDIT LOSSES | LOANS & ALLOWANCE FOR CREDIT LOSSES The Company categorizes the loan portfolio into six segments: Single Family - Mortgage & Warehouse, Multifamily and Commercial Mortgage, Commercial Real Estate, Commercial & Industrial - Non Real Estate, Auto & Consumer and Other. For further detail of the segments of the Company’s loan portfolio, refer to Note 1 - “Organizations and Summary of Significant Accounting Policies.” The following table sets forth the composition of the loan portfolio as of the dates indicated: At June 30, (Dollars in thousands) 2023 2022 Single Family - Mortgage & Warehouse $ 4,173,833 $ 3,988,462 Multifamily and Commercial Mortgage 3,082,225 2,877,680 Commercial Real Estate 6,199,818 4,781,044 Commercial & Industrial - Non-RE 2,639,650 2,028,128 Auto & Consumer 546,264 567,228 Other 10,236 11,134 Total gross loans 16,652,026 14,253,676 Allowance for credit losses - loans (166,680) (148,617) Unaccreted premiums (discounts) and loan fees (28,618) (13,998) Total net loans $ 16,456,728 $ 14,091,061 Accrued interest receivable At June 30, 2023 and 2022, the Company pledged certain loans totaling $5,128.4 million and $3,823.1 million, respectively, to the FHLB and $3,689.5 million and $3,861.6 million, respectively, to the Federal Reserve Bank of San Francisco (“FRBSF”). 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, which is summarized in the following table: At or for the Year Ended June 30, (Dollars in thousands) 2023 2022 Outstanding loan balance $ 29,181 $ 25,573 Loans originated and funded $ 5,052 $ — Principal repayments $ 1,444 $ 2,980 The Company’s loan portfolio consisted of approximately 7% fixed interest rate loans and 93% adjustable interest rate loans as of June 30, 2023. Until June 30, 2023, the Company’s adjustable rate loans were primarily based upon indices using LIBOR, SOFR and Ameribor, and following June 30, 2023, such loans are based on SOFR, Ameribor or other interest rate indices. The Company’s loan portfolio consisted of approximately 9% fixed interest rate loans and 91% adjustable interest rate loans as of June 30, 2022. At June 30, 2023 and 2022, portfolio loans serviced by others were $32.5 million, or 0.20%, and $37.3 million, or 0.26%, respectively, of the loan portfolio. As of June 30, 2023, the Company had $1,331.2 million of interest-only loans and $8.9 million of option adjustable-rate mortgage loans and as of June 30, 2022, the Company had $1,197.4 million of interest-only loans and $7.0 million of option adjustable-rate mortgage loans. Through June 30, 2023 and June 30, 2022, the net amount of deferred interest on these loan types was not material to the financial position or operating results of the Company. The following tables summarize activity in the allowance for credit losses - loans by portfolio classes for the periods indicated: June 30, 2023 (Dollars in thousands) Single Family - Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Balance at July 1, 2022 $ 19,670 $ 14,655 $ 69,339 $ 30,808 $ 14,114 $ 31 $ 148,617 Provision expense (benefit) for credit losses - loans (2,302) 2,193 3,416 15,521 5,938 (16) 24,750 Charge-offs (314) — — — (9,142) — (9,456) Recoveries 449 — — 18 2,302 — 2,769 Balance at June 30, 2023 $ 17,503 $ 16,848 $ 72,755 $ 46,347 $ 13,212 $ 15 $ 166,680 June 30, 2022 (Dollars in thousands) Single Family - Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Balance at July 1, 2021 $ 26,604 $ 13,146 $ 57,928 $ 28,460 $ 6,519 $ 301 $ 132,958 Provision expense (benefit) for credit losses - loans (7,009) 1,332 11,411 2,544 10,492 (270) 18,500 Charge-offs (82) — — (322) (4,024) — (4,428) Recoveries 157 177 — 126 1,127 — 1,587 Balance at June 30, 2022 $ 19,670 $ 14,655 $ 69,339 $ 30,808 $ 14,114 $ 31 $ 148,617 June 30, 2021 (Dollars in thousands) Single Family - Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Balance at July 1, 2020 $ 25,899 $ 4,719 $ 21,052 $ 9,954 $ 9,462 $ 4,721 $ 75,807 Effect of adoption of ASC 326 6,318 7,408 25,893 7,042 610 29 47,300 Provision expense (benefit) for credit losses - loans (3,242) 1,196 11,238 14,251 (1,354) 1,661 23,750 Charge-offs (2,502) (177) (255) (2,833) (3,517) (7,274) (16,558) Recoveries 131 — — 46 1,318 1,164 2,659 Balance at June 30, 2021 $ 26,604 $ 13,146 $ 57,928 $ 28,460 $ 6,519 $ 301 $ 132,958 The allowance for credit losses increased primarily due to loan growth across the commercial real estate, commercial and industrial, multifamily residential and commercial mortgage and single family residential portfolios, partially offset by changes in the macroeconomic environment reflecting a shift in the weighting towards the more benign forecast scenarios. Additionally: • For the commercial and industrial portfolio, changes in the loan product mix further increased the provision for credit losses; • For the commercial real estate portfolio, the increase in provision from loan growth was partially offset by a decrease in uncertainty in the forward outlook for interest rates; • For the multifamily and commercial mortgage portfolios, the increase in provision from loan growth was further increased by declines in the related prices within the third-party macroeconomic forecasts in the related price index. L oan products within each portfolio contain varying collateral types which impact the estimate of the loss given default utilized in the calculation of the allowance. For further discussion of the model method of estimating expected lifetime credit losses see Note 1 — “Organizations and Summary of Significant Accounting Policies.” The following table presents LTVs for the Company’s real estate loans outstanding as of June 30, 2023: Total Real Estate Loans Single Family - Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Weighted-Average LTV 48.9 % 57.4 % 53.8 % 40.8 % Median LTV 53.0 % 55.0 % 50.0 % 38.0 % The Company’s effective weighted-average LTV was 47.0% for real estate loans originated during the fiscal year ended June 30, 2023. Credit Quality Disclosure . The following tables provide the outstanding unpaid balance of loans that are performing and nonaccrual by portfolio class as of the dates indicated: June 30, 2023 (Dollars in thousands) Single Family - Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Performing $ 4,143,119 $ 3,047,122 $ 6,184,966 $ 2,636,661 $ 544,807 $ 8,191 $ 16,564,866 Nonaccrual 30,714 35,103 14,852 2,989 1,457 2,045 87,160 Total $ 4,173,833 $ 3,082,225 $ 6,199,818 $ 2,639,650 $ 546,264 $ 10,236 $ 16,652,026 Nonaccrual loans to total loans 0.52 % June 30, 2022 (Dollars in thousands) Single Family - Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Performing $ 3,922,038 $ 2,844,270 $ 4,766,192 $ 2,025,139 $ 566,789 $ 11,054 $ 14,135,482 Nonaccrual 66,424 33,410 14,852 2,989 439 80 118,194 Total $ 3,988,462 $ 2,877,680 $ 4,781,044 $ 2,028,128 $ 567,228 $ 11,134 $ 14,253,676 Nonaccrual loans to total loans 0.83 % There were no nonaccrual loans without an allowance for credit losses as of June 30, 2023 and June 30, 2022. There was no interest income recognized on non-accrual loans for the years ended June 30, 2023, 2022 and 2021. From time to time, the Company modifies loan terms temporarily for borrowers who are experiencing financial stress. These loans are performing and accruing and generally return to the original loan terms after the modification term expires. Approximately 1.77% of our nonaccrual loans at June 30, 2023 were considered troubled debt restructurings (“TDRs”), compared to 1.18% at June 30, 2022. Borrowers who make timely payments after TDRs are considered non-performing for at least six months. Generally, after six months of timely payments, those TDRs are reclassified from the nonaccrual loan category to performing and return to accrual status. There was no amount in performing TDRs for each of the years ended June 30, 2023, 2022 and 2021. There was no interest recognized on loans that were TDRs for the years ended June 30, 2023, 2022 and 2021, respectively. Credit Quality Indicators . The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends. The Company analyzes loans individually by classifying the loans based on credit risk. The Company uses the following definitions for risk ratings. Pass . Loans classified as pass are well protected by the current net worth and paying capacity of the obligor or by the fair value of any underlying collateral, less cost to acquire and sell in a timely manner. Special Mention . Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard . Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful . Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The Company reviews and grades loans following a continuous review process, featuring coverage of all loan types and business lines at least quarterly. Continuous reviewing provides more effective risk monitoring because it immediately tests for potential impacts caused by changes in personnel, policy, products or underwriting standards. The amortized cost basis by fiscal year of origination and credit quality indicator of the Company’s loan as of June 30, 2023 was as follows: Loans Held for Investment Origination Year Revolving Loans Total (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Single Family-Mortgage & Warehouse Pass $ 730,498 $ 1,346,804 $ 522,873 $ 324,458 $ 255,547 $ 639,401 $ 243,175 $ 4,062,756 Special Mention — 7,280 7,026 8,303 12,942 18,244 6,614 60,409 Substandard — 5,188 4,686 14,384 2,024 24,386 — 50,668 Doubtful — — — — — — — — Total 730,498 1,359,272 534,585 347,145 270,513 682,031 249,789 4,173,833 Multifamily and Commercial Mortgage Pass 558,787 975,186 498,744 314,383 224,592 404,222 — 2,975,914 Special Mention — 9,691 4,636 1,360 7,705 — — 23,392 Substandard — 3,145 5,686 38,857 6,181 29,050 — 82,919 Doubtful — — — — — — — — Total 558,787 988,022 509,066 354,600 238,478 433,272 — 3,082,225 Commercial Real Estate Pass 1,867,476 2,323,095 631,500 87,059 117,928 — 960,024 5,987,082 Special Mention 29,000 43,427 — 8,457 800 15,062 — 96,746 Substandard — 29,200 37,951 18,500 15,487 14,852 — 115,990 Doubtful — — — — — — — — Total 1,896,476 2,395,722 669,451 114,016 134,215 29,914 960,024 6,199,818 Commercial & Industrial - Non-RE Pass 488,120 358,214 29,777 14,794 2,098 — 1,707,619 2,600,622 Special Mention — 8,221 — 11,413 — — 600 20,234 Substandard — 17,762 1,032 — — — — 18,794 Doubtful — — — — — — — — Total 488,120 384,197 30,809 26,207 2,098 — 1,708,219 2,639,650 Auto & Consumer Pass 161,831 256,154 70,223 24,906 19,897 9,929 — 542,940 Special Mention 423 632 453 60 14 6 — 1,588 Substandard 350 785 233 133 162 73 — 1,736 Doubtful — — — — — — — — Total 162,604 257,571 70,909 25,099 20,073 10,008 — 546,264 Other Pass 5,721 — 1,306 — — 1,164 — 8,191 Special Mention — — — — — — — — Substandard — 2,000 45 — — — — 2,045 Doubtful — — — — — — — — Total 5,721 2,000 1,351 — — 1,164 — 10,236 Total Pass 3,812,433 5,259,453 1,754,423 765,600 620,062 1,054,716 2,910,818 16,177,505 Special Mention 29,423 69,251 12,115 29,593 21,461 33,312 7,214 202,369 Substandard 350 58,080 49,633 71,874 23,854 68,361 — 272,152 Doubtful — — — — — — — — Total $ 3,842,206 $ 5,386,784 $ 1,816,171 $ 867,067 $ 665,377 $ 1,156,389 $ 2,918,032 $ 16,652,026 As a % of total gross loans 23.07% 32.35% 10.91% 5.21% 4.00% 6.94% 17.52% 100.0% The amortized cost basis by fiscal year of origination and credit quality indicator of the Company’s loan as of June 30, 2022 was as follows: Loans Held for Investment Origination Year Revolving Loans Total (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Single Family-Mortgage & Warehouse Pass $ 1,484,027 $ 600,054 $ 402,712 $ 303,999 $ 279,248 $ 548,703 $ 241,925 $ 3,860,668 Special Mention — — 4,790 2,505 4,125 10,971 38,637 61,028 Substandard — 2,288 3,928 18,407 5,955 36,188 — 66,766 Doubtful — — — — — — — — Total 1,484,027 602,342 411,430 324,911 289,328 595,862 280,562 3,988,462 Multifamily and Commercial Mortgage Pass 999,819 569,486 429,247 259,161 219,548 316,013 — 2,793,274 Special Mention 1,200 — 534 539 — 968 — 3,241 Substandard — 5,772 34,343 9,613 7,308 24,129 — 81,165 Doubtful — — — — — — — — Total 1,001,019 575,258 464,124 269,313 226,856 341,110 — 2,877,680 Commercial Real Estate Pass 2,482,366 990,887 358,422 186,800 28,758 — 602,412 4,649,645 Special Mention — 32,351 12,138 16,487 15,000 — — 75,976 Substandard — — 12,575 18,043 23,507 — 1,298 55,423 Doubtful — — — — — — — — Total 2,482,366 1,023,238 383,135 221,330 67,265 — 603,710 4,781,044 Commercial & Industrial - Non-RE Pass 435,228 66,226 25,629 61,932 9,268 — 1,388,435 1,986,718 Special Mention 13 — — 186 710 — — 909 Substandard 2,988 28,359 9,154 — — — — 40,501 Doubtful — — — — — — — — Total 438,229 94,585 34,783 62,118 9,978 — 1,388,435 2,028,128 Auto & Consumer Pass 352,468 107,882 43,377 37,008 16,147 8,891 — 565,773 Special Mention 204 188 24 110 — 1 — 527 Substandard 157 311 224 205 25 6 — 928 Doubtful — — — — — — — — Total 352,829 108,381 43,625 37,323 16,172 8,898 — 567,228 Other Pass 3,057 6,185 — — 1,091 721 — 11,054 Special Mention — — — — — — — — Substandard — — 46 — — 34 — 80 Doubtful — — — — — — — — Total 3,057 6,185 46 — 1,091 755 — 11,134 Total Pass 5,756,965 2,340,720 1,259,387 848,900 554,060 874,328 2,232,772 13,867,132 Special Mention 1,417 32,539 17,486 19,827 19,835 11,940 38,637 141,681 Substandard 3,145 36,730 60,270 46,268 36,795 60,357 1,298 244,863 Doubtful — — — — — — — — Total $ 5,761,527 $ 2,409,989 $ 1,337,143 $ 914,995 $ 610,690 $ 946,625 $ 2,272,707 $ 14,253,676 As a % of total gross loans 40.42% 16.91% 9.38% 6.42% 4.28% 6.64% 15.95% 100.0% The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. The Company also evaluates credit quality based on the aging status of its loans. Certain short-term loans do not have a fixed maturity date and are treated as delinquent if not paid in full 90 days after the origination date. The following tables provide the outstanding unpaid balance of loans and leases that are past due 30 days or more by portfolio class as of the dates indicated: June 30, 2023 (Dollars in thousands) Current 30-59 Days 60-89 Days 90+ Days Total Single Family-Mortgage & Warehouse $ 4,102,150 $ 20,832 $ 7,971 $ 42,880 $ 4,173,833 Multifamily and Commercial Mortgage 3,048,217 2,705 1,124 30,179 3,082,225 Commercial Real Estate 6,173,716 11,250 — 14,852 6,199,818 Commercial & Industrial - Non-RE 2,639,650 — — — 2,639,650 Auto & Consumer 537,181 6,529 1,707 847 546,264 Other 8,024 68 1 2,143 10,236 Total $ 16,508,938 $ 41,384 $ 10,803 $ 90,901 $ 16,652,026 As a % of gross loans 99.14 % 0.25 % 0.06 % 0.55 % 100.00 % June 30, 2022 (Dollars in thousands) Current 30-59 Days 60-89 Days 90+ Days Total Single Family-Mortgage & Warehouse $ 3,918,491 $ 5,167 $ 1,518 $ 63,286 $ 3,988,462 Multifamily and Commercial Mortgage 2,839,554 9,455 2,115 26,556 2,877,680 Commercial Real Estate 4,766,192 — 14,852 — 4,781,044 Commercial & Industrial - Non-RE 2,028,128 — — — 2,028,128 Auto & Consumer 560,888 4,865 1,009 466 567,228 Other 10,528 413 — 193 11,134 Total $ 14,123,781 $ 19,900 $ 19,494 $ 90,501 $ 14,253,676 As a % of gross loans 99.09 % 0.14 % 0.14 % 0.63 % 100.00 % Loans reaching 90+ days past due are generally placed on non-accrual. As of June 30, 2023, there was a $14 million loan over 90 days past due and still accruing interest as the Company expects to collect the principal and interest amounts due. There were no such loans as of June 30, 2022. Loans in process of foreclosure were $22.2 million and $20.7 million as of June 30, 2023 and June 30, 2022, respectively. Credit Risk Concentration Concentrations of credit risk arise when a number of borrowers are engaged in similar business activities in the same geographic region, or when they have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. Concentrations of 10% or more existed in the Single Family, Multifamily and Commercial Real Estate loan categories at June 30, 2023 and June 30, 2022. At June 30, 2023, California accounted for 71.4% and New York accounted for 11.0% of loans in the Single Family loan category. California accounted for 69.1% and New York accounted for 19.7% of loans in the Multifamily loan category. New York accounted for 37.5% and Florida accounted for 10.5% of loans in the Commercial Real Estate loan category. At June 30, 2022, California accounted for 70.6% and New York accounted for 13.0% of loans in the Single Family loan category. California accounted for 68.3% and New York accounted for 18.8% of loans in the Multifamily loan category. California accounted for 11.9% and New York accounted for 40.5% of loans in the Commercial Real Estate loan category. Unfunded Loan Commitment Reserves Unfunded loan commitment reserves are included in “Accounts payable and other liabilities” in the Consolidated Balance Sheets. Provisions for the unfunded loan commitments are included in the Consolidated Statements of Income in “General and administrative expenses.” The following tables present a summary of the activity in the unfunded loan commitment liabilities for the periods indicated: Year Ended June 30, (Dollars in thousands) 2023 2022 2021 BALANCE—beginning of year $ 10,973 $ 5,723 $ 323 Effect of adoption of ASC 326 — — 5,700 Provision (Benefit) (500) 5,250 (300) BALANCE—end of year $ 10,473 $ 10,973 $ 5,723 |
OFFSETTING OF SECURITIES FINANC
OFFSETTING OF SECURITIES FINANCING AGREEMENTS | 12 Months Ended |
Jun. 30, 2023 | |
Offsetting [Abstract] | |
OFFSETTING OF SECURITIES FINANCING AGREEMENTS | OFFSETTING OF SECURITIES FINANCING AGREEMENTS The Company enters into securities borrowed and securities loaned transactions to facilitate customer match-book activity, cover short positions and for customer securities lending. The Company manages credit exposure from certain transactions by entering into master securities lending agreements. The relevant agreements allow for the efficient closeout of transactions, liquidation and set-off of collateral against the net amount owed by the counterparty following a default. Default events generally include, among other things, failure to pay, insolvency or bankruptcy of a counterparty. The following table presents information about the offsetting of these instruments and related collateral amounts as of: June 30, 2023 (Dollars in thousands) Gross Assets / Liabilities Amounts Offset Net Balance Sheet Amount Financial Collateral Net Assets / Liabilities Assets: Securities borrowed $ 134,339 $ — $ 134,339 $ 134,339 $ — Liabilities: Securities loaned $ 159,832 $ — $ 159,832 $ 159,832 $ — June 30, 2022 (Dollars in thousands) Gross Assets / Liabilities Amounts Offset Net Balance Sheet Amount Financial Collateral Net Assets / Liabilities Assets: Securities borrowed $ 338,980 $ — $ 338,980 $ 338,980 $ — Liabilities: Securities loaned $ 474,400 $ — $ 474,400 $ 474,400 $ — The securities loaned transactions represent equities with an overnight and open maturity classification. |
CUSTOMER, BROKER-DEALER AND CLE
CUSTOMER, BROKER-DEALER AND CLEARING RECEIVABLES AND PAYABLES | 12 Months Ended |
Jun. 30, 2023 | |
Broker-Dealer [Abstract] | |
CUSTOMER, BROKER-DEALER AND CLEARING RECEIVABLES AND PAYABLES | CUSTOMER, BROKER-DEALER AND CLEARING RECEIVABLES AND PAYABLES Customer, broker-dealer and clearing receivables and payables consisted of the following: At June 30, (Dollars in thousands) 2023 2022 Receivables: Customers $ 309,308 $ 309,216 Broker-dealer and clearing organizations: Receivable from broker-dealers 57,735 101,960 Securities failed to deliver 7,031 6,241 Total customer, broker-dealer and clearing receivables $ 374,074 $ 417,417 Payables: Customers $ 382,689 $ 486,625 Broker-dealer and clearing organizations: Payable to broker-dealers 58,758 18,601 Securities failed to receive 4,030 6,428 Total customer, broker-dealer and clearing payables $ 445,477 $ 511,654 |
FURNITURE, EQUIPMENT AND SOFTWA
FURNITURE, EQUIPMENT AND SOFTWARE | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
FURNITURE, EQUIPMENT AND SOFTWARE | FURNITURE, EQUIPMENT AND SOFTWARE A summary of the cost and accumulated depreciation and amortization for leasehold improvements, furniture, equipment and software is as follows: At June 30, (Dollars in thousands) 2023 2022 Software $ 105,687 $ 78,848 Computer hardware and equipment 26,685 25,665 Furniture and fixtures 10,689 10,608 Leasehold improvements 5,963 5,698 Total $ 149,024 $ 120,819 Less accumulated depreciation and amortization (95,660) (84,610) Furniture, equipment and software—net 1 $ 53,364 $ 36,209 1 Furniture, equipment and software are included in the other assets line on the consolidated balance sheets. Depreciation and amortization expense related to leasehold improvements, furniture, equipment and software for the years ended June 30, 2023, 2022 and 2021 was $12.2 million, $13.1 million and $14.4 million, respectively. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The following table summarizes the activity in the Company’s goodwill balance as of the dates indicated: (Dollars in thousands) Total Balance as of June 30, 2021 $ 71,222 Goodwill from acquisitions 1 24,452 Balance as of June 30, 2022 95,674 Goodwill from acquisitions 1,999 Balance as of June 30, 2023 $ 97,673 1 Goodwill acquired in the AAS acquisition is allocated to the Securities Business segment. For additional information on the AAS acquisition, see Note 2 - “Acquisitions.” There was no goodwill impairment identified for the fiscal years ended June 30, 2023 and June 30, 2022. The Company’s acquired intangible assets are summarized as follows as of the dates indicated: June 30, 2023 June 30, 2022 (Dollars in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Covenant not to compete $ 1,380 $ 1,149 $ 231 $ 1,060 $ 1,038 $ 22 Customer relationships 50,810 14,598 36,212 46,960 10,654 36,306 Customer deposit intangible 13,545 9,235 4,310 13,545 7,655 5,890 Developed technologies 34,650 21,405 13,245 34,040 15,905 18,135 Trademark 378 — 378 378 — 378 Trade name 700 600 100 580 580 — Total intangible assets $ 101,463 $ 46,987 $ 54,476 $ 96,563 $ 35,832 $ 60,731 The amortization expense for intangible assets that are subject to amortization was $11.2 million and $11.1 million for the years ended June 30, 2023 and 2022, respectively. Each intangible asset subject to amortization is amortized using the straight-line method over the estimated useful life of the asset. Trademark is an indefinite life intangible. Estimated future amortization expense related to finite-lived intangible assets at June 30, 2023 is as follows: (Dollars in thousands) Amortization Expense For the fiscal year ending June 30, 2024 $ 10,748 2025 6,666 2026 6,331 2027 6,067 2028 5,233 |
LEASES
LEASES | 12 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases office space under operating lease agreements scheduled to expire at various dates. Operating lease expense for the years ended June 30, 2023, 2022 and 2021 was $11.4 million, $10.8 million, and $10.6 million, respectively. Supplemental information related to the Company’s operating leases is as follows: At June 30, (Dollars in thousands) 2023 2022 Right-of-use assets $ 63,565 $ 69,196 Lease liabilities 69,630 74,878 Weighted-average remaining lease term 6.57 years 7.53 years Weighted-average discount rate 3.00 % 2.79 % Supplemental cash flow information related to leases is as follows: For the Year Ended June 30, (Dollars in thousands) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities for operating leases—operating cash flows $ 10,658 $ 9,888 $ 8,875 Maturities of Operating Lease Liabilities. The Company leases office space under operating lease agreements scheduled to expire at various dates. The following table represents maturities of lease liabilities as of June 30, 2023: (Dollars in thousands) Within one year $ 11,581 After one year and within two years 11,807 After two years and within three years 11,504 After three years and within four years 11,595 After four years and within five years 10,304 After five years 20,200 Total lease payments 76,991 Less: amount representing interest (7,361) Total Lease Liability $ 69,630 As of June 30, 2023, the Company is in compliance with all covenants contained in lease agreements. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Jun. 30, 2023 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS Deposit accounts are summarized as follows: At June 30, 2023 2022 (Dollars in thousands) Amount Rate 1 Amount Rate 1 Non-interest bearing $ 2,898,150 — % $ 5,033,970 — % Interest bearing: Demand 3,334,615 2.43 % 3,611,889 0.61 % Savings 9,575,781 4.20 % 4,245,555 0.95 % 12,910,396 3.74 % 7,857,444 0.79 % Time deposits: $250 and under 932,436 3.72 % 651,392 1.22 % Greater than $250 382,126 4.36 % 403,616 1.41 % Total time deposits 1,314,562 3.91 % 1,055,008 1.25 % Total interest bearing 2 14,224,958 3.76 % 8,912,452 0.85 % Total deposits $ 17,123,108 3.12 % $ 13,946,422 0.54 % 1 Based on weighted-average stated interest rates at end of period. 2 The total interest-bearing includes brokered deposits of $2,028.5 million and $1,032.7 million as of June 30, 2023 and June 30, 2022, respectively, of which $690.9 million and $250.0 million, respectively, are time deposits classified as $250,000 and under. At June 30, 2023, remaining maturities of uninsured time deposits greater than $250,000 were $382.1 million. Scheduled maturities of all time deposits are as follows: (Dollars in thousands) June 30, 2023 Within 12 months $ 1,149,993 13 to 24 months 145,233 25 to 36 months 8,209 37 to 48 months 4,208 49 to 60 months 6,605 Thereafter 314 Total $ 1,314,562 At June 30, 2023 and 2022, the Company had deposits from certain executive officers, directors and their affiliates in the amount of $5.6 million and $5.7 million, respectively. |
ADVANCES FROM THE FEDERAL HOME
ADVANCES FROM THE FEDERAL HOME LOAN BANK | 12 Months Ended |
Jun. 30, 2023 | |
Advance from Federal Home Loan Bank [Abstract] | |
ADVANCES FROM THE FEDERAL HOME LOAN BANK | ADVANCES FROM THE FEDERAL HOME LOAN BANK At June 30, 2023 and 2022, the Company’s fixed-rate FHLB advances had interest rates that ranged from 2.07% to 2.82% with a weighted average of 2.32% and ranged from 1.68% to 2.82% with a weighted average of 2.26%, respectively. Maturities of fixed-rate advances from FHLB are as follows: At June 30, 2023 2022 (Dollars in thousands) Amount Weighted- Amount Weighted- Within one year $ — — % $ 27,500 2.08 % After one but within two years 30,000 2.82 % — — % After two but within three years — — % 30,000 2.82 % After three but within four years — — % — — % After four but within five years — — % — — % After five years 60,000 2.07 % 60,000 2.07 % Total $ 90,000 2.32 % $ 117,500 2.26 % Advances from the FHLB were collateralized by the Company’s pledge of certain loans and investment securities to the FHLB, and by the Company’s investment in capital stock of the FHLB of San Francisco. Generally, each advance carries a prepayment penalty and is payable in full at its maturity date. At June 30, 2023, the Company had $3,052.0 million available immediately and $4,524.1 million available with additional collateral for advances from the FHLB for terms up to ten years. |
BORROWINGS, SUBORDINATED NOTES
BORROWINGS, SUBORDINATED NOTES AND DEBENTURES | 12 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
BORROWINGS, SUBORDINATED NOTES AND DEBENTURES | BORROWINGS, SUBORDINATED NOTES AND DEBENTURES The following table sets forth the composition of the borrowings, subordinated notes and debentures as of the dates indicated: (Dollars in thousands) June 30, 2023 June 30, 2022 Borrowings from other banks $ 27,200 $ 111,500 Subordinated loans 7,400 7,400 Subordinated notes 325,000 325,000 Junior subordinated debentures 5,155 5,155 Total borrowings, subordinated notes and debentures, gross of unamortized issuance costs 364,755 449,055 Less unamortized issuance costs (2,976) (3,811) Total borrowings, subordinated notes and debentures, net of unamortized issuance costs $ 361,779 $ 445,244 Maturities of borrowings, subordinated notes and debentures are as follows: (Dollars in thousands) June 30, 2023 Within one year $ 34,600 After one but within two years — After two but within three years — After three but within four years — After four but within five years — After five years 330,155 Total $ 364,755 Borrowings from other banks. Axos Clearing has $150.0 million secured lines of credit available for borrowing. As of June 30, 2023, there was $11.5 million outstanding. These credit facilities bear interest at rates based on the Federal Funds rate and borrowings are due upon demand. The weighted-average interest rate on the borrowings at June 30, 2023 was 7.0%, a rate blending fixed and variable components. Axos Clearing has a $190.0 million unsecured line of credit available for limited purpose borrowing, which includes $100 million from Axos Financial, Inc. As of June 30, 2023, there was $15.7 million outstanding on this credit facility after elimination of intercompany balances. This credit facility bears interest at rates based on the Federal Funds rate and is due upon demand. The unsecured line of credit requires Axos Clearing to operate in accordance of specific covenants surrounding capital and debt ratios. Axos Clearing was in compliance of all covenants as of June 30, 2023. Subordinated Loans . The Company issued subordinated notes totaling $7.5 million on January 28, 2019, to the principal stockholders of Cor Securities Holdings, Inc. (“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 stockholders of COR Securities under the Merger Agreement. Interest accrues at a rate of 6.25% per annum. During the fiscal year ended June 30, 2019, $0.1 million of subordinated loans were repaid. The Company is in the process of making an indemnification claim against the $7.4 million remaining. Subordinated Notes . In September 2020, the Company completed the sale of $175.0 million aggregate principal amount of its 4.875% Fixed-to-Floating Rate Subordinated Notes due October 1, 2030 (the “2030 Notes”). The 2030 Notes mature on October 1, 2030 and accrue interest at a fixed rate per annum equal to 4.875%, payable semi-annually in arrears on April 1 and October 1 of each year, commencing on April 1, 2021. From and including October 1, 2025, to, but excluding October 1, 2030 or the date of early redemption, the 2030 Notes will bear interest at a floating rate per annum equal to three-month term SOFR plus a spread of 476 basis points, payable quarterly in arrears on January 1, April 1, July 1 and October 1 of each year, commencing on January 2026. The 2030 Notes may be redeemed on or after October 1, 2025, which date may be extended at the Company’s discretion, at a redemption price equal to principal plus accrued and unpaid interest, subject to certain conditions. Fees and costs incurred in connection with the debt offering amortize to interest expense over the term of the 2030 Notes. In February 2022, the Company completed the sale of $150.0 million aggregate principal amount of its 4.00% Fixed-to-Floating Rate Subordinated Notes (the “2032 Notes”). The 2032 Notes are obligations only of Axos Financial, Inc. The 2032 Notes mature on March 1, 2032 and accrue interest at a fixed rate per annum equal to 4.00%, payable semi-annually in arrears on March 1 and September 1 of each year, commencing on September 1, 2022. From and including March 1, 2027, to, but excluding March 1, 2032 or the date of early redemption, the 2032 Notes will bear interest at a floating rate per annum equal to three-month term SOFR plus a spread of 227 basis points, payable quarterly in arrears on March 1, June 1, September 1 and December 1 of each year, commencing on June 1, 2027. The 2032 Notes may be redeemed on or after March 1, 2027, which date may be extended at the Company’s discretion, at a redemption price equal to principal plus accrued and unpaid interest, subject to certain conditions. Fees and costs incurred in connection with the debt offering amortize to interest expense over the term of the 2032 Notes. Junior Subordinated Debentures . On December 13, 2004, the Company entered into an agreement to form an unconsolidated trust which issued $5.0 million of trust preferred securities in a transaction that closed on December 16, 2004. The net proceeds from the offering were used to purchase $5.2 million of junior subordinated debentures (“Debentures”) of the Company with a stated maturity date of February 23, 2035. The Debentures are the sole assets of the trust. The trust preferred securities are mandatorily redeemable upon maturity, or upon earlier redemption as provided in the indenture. The Company has the right to redeem the Debentures in whole (but not in part) on or after specific dates, at a redemption price specified in the indenture plus any accrued but unpaid interest through the redemption date. Prior to June 30, 2023, interest accrued at the rate of three-month LIBOR plus 2.4% for a rate of 7.79% as of June 30, 2023, with interest paid quarterly. Following June 30, 2023, interest accrues at three-month term SOFR plus 0.26161%. The Bank has the ability to borrow short-term from the FRBSF Discount Window. At June 30, 2023 and 2022 there were no amounts outstanding and the available borrowings from this source were $2,747.1 million and $2,823.5 million, respectively. The 2023 available borrowings were collateralized by certain loans. The Bank has additional unencumbered collateral that could be pledged to the FRBSF Discount Window to increase borrowing liquidity. As of June 30, 2023, the Bank has federal funds lines of credit with four major banks totaling $225.0 million. The Bank had no outstanding balances on its lines of credit at June 30, 2023 or June 30, 2022. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision for income taxes is as follows: At June 30, (Dollars in thousands) 2023 2022 2021 Current: Federal $ 89,839 $ 64,800 $ 61,827 State 54,326 43,843 37,037 144,165 108,643 98,864 Deferred: Federal (13,084) (5,600) (5,562) State (6,502) (3,800) (3,266) (19,586) (9,400) (8,828) Total $ 124,579 $ 99,243 $ 90,036 The differences between the statutory federal income tax rate and the effective tax rates are summarized as follows: At June 30, 2023 2022 2021 Statutory federal tax rate 21.00 % 21.00 % 21.00 % Increase (decrease) resulting from: State taxes—net of federal tax benefit 9.04 % 9.13 % 8.70 % Tax credits (0.45) % (0.44) % (0.59) % Non-taxable income (0.03) % (0.09) % (0.09) % Excess benefit RSU vesting (0.41) % (1.31) % (0.64) % Other (0.30) % 0.90 % 1.07 % Effective tax rate 28.85 % 29.19 % 29.45 % The components of the net deferred tax asset are as follows: At June 30, (Dollars in thousands) 2023 2022 Deferred tax assets: Allowance for credit losses $ 64,655 $ 59,045 Lease liability 22,654 24,626 Accrued compensation 7,564 2,533 Stock-based compensation expense 6,980 5,101 Litigation accrual 5,206 3,116 Non-accrual loan interest income 4,962 2,608 Unrealized net losses on securities 2,730 1,261 Net operating loss carryforward 1,484 1,503 State taxes 1,064 949 Securities impaired 267 270 Total deferred tax assets 117,566 101,012 Deferred tax liabilities: Operating lease right-of-use asset (20,681) (22,757) Depreciation and amortization (7,533) (8,838) Other assets—prepaids (2,342) (2,083) FHLB stock dividend (833) (842) Total deferred tax liabilities (31,389) (34,520) Net deferred tax asset 86,177 66,492 Valuation allowance (277) (230) Net deferred tax asset, net of valuation allowance 1 $ 85,900 $ 66,262 1 Net deferred tax asset, net of valuation allowance, is included in the other assets line on the consolidated balance sheet. The Company records a deferred tax asset for net operating losses when the benefit is more likely than not to be realized. As of June 30, 2023, the Company had a federal net operating loss carryforward of approximately $3.7 million which is subject to an annual Section 382 limitation of $0.1 million. The federal net operating loss carryforward begins to expire in 2034. The Company has state net operating loss carryforwards of $3.7 million. Of this amount, $1.6 million is subject to an annual Section 382 limitation of $0.1 million for state purposes. The state net operating loss carryforwards begin to expire in 2035. The Company establishes a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion of the deferred tax assets will not be realized. As of June 30, 2023, relating to a $3.0 million state net operating loss, the Company recognized a tax effected valuation allowance of $0.3 million. As of June 30, 2023 and 2022, the Company forecasts sufficient future consolidated earnings to realize its remaining deferred tax asset and has not provided for an additional allowance. The reconciliation of the gross beginning and ending amount of unrecognized tax positions for the periods presented is: (Dollars in thousands) 2023 2022 Balance—beginning of period $ 4,975 $ 4,156 Additions—current year tax positions 1,603 703 Additions—prior year tax positions 518 347 Reductions—prior year tax positions (172) (231) Total liability for unrecognized tax positions—end of period $ 6,924 $ 4,975 As of June 30, 2023 and 2022, unrecognized tax benefits totaled $6.0 million and $4.3 million, respectively, that, if recognized, would favorably impact the effective tax rate. The Company does not anticipate resolution of any unrecognized tax benefits within the next 12 months. The Company accounts for interest and penalties related to income tax liabilities as a component of income tax expense. As of June 30, 2023 and 2022, the amounts accrued for interest and penalties were not material. The Company is subject to federal income tax and income tax of state taxing authorities. The Company’s federal income tax returns for the years ended June 30, 2022, 2021, and 2020 and its state taxing authorities income tax returns for the years ended June 30, 2022, 2021, 2020 and 2019 are open to audit under the statutes of limitations by the Internal Revenue Service and state taxing authorities. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Common Stock Repurchases. On August 6, 2019 the Company announced a program to repurchase up to $100 million of its common stock and on April 27, 2023, the Company announced a program to repurchase up to $100 million of its common stock. The new share repurchase authorization is in addition to the existing share repurchase plan announced on August 6, 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. Under the August 6, 2019 authorization, the Company repurchased a total of $96.3 million, or 3,721,014 common shares at an average price of $25.89 per share and there remains $3.7 million under the plan. During the year ended June 30, 2023, the Company repurchased a total of $49.3 million, or 1,321,161 common shares at an average price of $37.28 per share. The Company did not repurchase common stock during the year ended June 30, 2022. The Company accounts for treasury stock using the cost method as a reduction of stockholders’ equity in the accompanying consolidated financial statements. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company has an equity incentive plan, the 2014 Plan, which provides for the granting of non-qualified and incentive stock options, restricted stock and RSUs, stock appreciation rights and other awards to employees, directors and consultants. The Plan is designed to encourage selected employees and directors to improve operations and increase profits, and to accept or continue employment or association with the Company through participation in the growth in the value of the common stock. RSUs have a grant price equal to the closing price of the Company’s common stock on the award date. RSUs granted generally vest over a three-year period based on service, with 33% of the underlying shares vesting on each annual anniversary of the award. 2014 Plan . In October 2021, the Company’s Board of Directors and stockholders, respectively, approved the 2014 Plan, as amended and restated. The number of shares authorized for issuance pursuant to awards under the 2014 Plan is 5,680,000, less RSU awards granted, plus any RSUs that become available upon the forfeiture, expiration, cancellation or settlement in cash awards outstanding under the 2014 Plan. At June 30, 2023, 1,426,865 shares of common stock remained available for issuance pursuant to grant awards under the 2014 Plan. Effective July 1, 2017 the Company entered into an employment agreement with its Chief Executive Officer (the “Agreement”) that authorizes an award of RSUs (the “RSU award”). The RSU award is an equity-based award and carries a service condition and a market condition that incorporates a measurement of the Company’s total stock return to stockholders in comparison to the total stock return of the ABA Nasdaq Community Bank Index. The accounting grant date of the RSU award is July 1, 2017 and expensing of the RSU award began on this date at the fair value measurement amount as determined by the Company’s valuation process. The Company utilized a Monte Carlo simulation to estimate the value of path-dependent options and determined the fair value using an expected return based on the 5-year US Treasury constant maturity rate, an equity volatility based on 6-month and 1-year historical daily trading history, market capitalization, and stock price for the RSU award. On July 1, 2017, the estimated fair value of the RSU award was $20.5 million, which vests in five tranches over a total period of nine years. Effective each of January 1, 2023 (the “2023 Award”) and 2022 (the “2022 Award”), the Agreement automatically renewed for one As of June 30, 2023, unrecognized compensation expense to be recognized over the remaining five years related to the Agreement and subsequent renewals is $10.9 million and is reflected in the table below. At June 30, 2023 unrecognized compensation expense related to non-vested awards aggregated to $43.7 million and is expected to be recognized in future periods as follows: (Dollars in thousands) Stock Award For the fiscal year ending June 30: 2024 $ 22,259 2025 14,512 2026 5,769 2027 928 2028 238 Total $ 43,706 The following table presents the status and changes in RSUs for the periods indicated: RSUs Weighted-Average Non-vested balance at June 30, 2022 1,350,763 $ 41.16 Granted 751,517 38.49 Vested (605,724) 37.11 Forfeitures (88,674) 40.22 Non-vested balance at June 30, 2023 1,407,882 $ 41.53 |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The following table presents the calculation of basic and diluted EPS: At June 30, (Dollars in thousands, except per share data) 2023 2022 2021 Earnings Per Common Share Net income $ 307,165 $ 240,716 $ 215,707 Preferred stock dividends — — (103) Preferred stock redemption — $ — $ (86) Net income attributable to common stock $ 307,165 $ 240,716 $ 215,518 Average common shares issued and outstanding 59,691,541 59,523,626 59,229,495 Earnings per common share $ 5.15 $ 4.04 $ 3.64 Diluted Earnings Per Common Share Net income attributable to common stock $ 307,165 $ 240,716 $ 215,518 Average common shares issued and outstanding 59,691,541 59,523,626 59,229,495 Dilutive effect of average unvested RSUs 875,313 1,087,328 1,290,116 Total dilutive common shares outstanding 60,566,854 60,610,954 60,519,611 Diluted earnings per common share $ 5.07 $ 3.97 $ 3.56 |
COMMITMENTS, CONTINGENCIES, AND
COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE-SHEET ACTIVITIES | 12 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE-SHEET ACTIVITIES | COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE-SHEET ACTIVITIES Credit-Related Financial Instruments . The Company is a party to credit-related financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are commitments to extend credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance-sheet instruments. At June 30, 2023, the Company had unfunded commitments to originate $85.1 million in fixed rate loans and $2,832.5 million in variable rate loans, totaling an aggregate outstanding principal balance of $2,917.6 million. For June 30, 2023, the Company’s fixed rate commitments to originate had a weighted-average rate of 9.14%. For June 30, 2022, the Company had commitments to originate $184.5 million in fixed rate loans and $3,319.8 million in variable rate loans, totaling an aggregate outstanding principal balance of $3,504.3 million. For June 30, 2022, the Company’s fixed rate commitments to originate had a weighted-average rate of 5.75%. At June 30, 2023, the Company also had fixed rate commitments to sell loans with an aggregate outstanding principal balance of $24.9 million. At June 30, 2022, the Company had fixed rate and variable rate commitments to sell of $8.4 million. At June 30, 2023 and 2022, 10.6% and 42.3% of the commitments to originate loans are matched with commitments to sell related to conforming single family loans classified as held for sale, respectively. Commitments to extend credit are agreements to lend to a customer so long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer. In addition, we invest in low income housing project partnerships, which provide income tax credits, and in small business investment companies that call for capital contributions up to an amount specified in the partnership agreements. As of June 30, 2023 and 2022, we had commitments to contribute capital to these entities totaling $19.1 million and $28.1 million. 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. As of June 30, 2023, non-customer and customer margin securities of approximately $260.1 million and stock borrowings of approximately $134.3 million were available to the Company to utilize as collateral on various borrowings or for other purposes. The Company utilized $159.8 million of these available securities as collateral for securities loaned, $114.2 million for bank loans, and $23.4 million for OCC margin requirements. Litigation . A consolidated derivative action, In re BofI Holding, Inc., Case No. 15cv2722 GPC (KSC), is pending before the United States District Court for the Southern District of California (the “Derivative Action”). The complaint in the Derivative Action sets forth allegations made in a related employment action, Erhart v. BofI Holding Inc. , No. 15cv2287 BAS (NLS) (S.D. Cal.) (the “Employment Action”) brought by a former employee of the Company. The Derivative Action plaintiff seeks damages on behalf of the Company should an adverse judgment be entered in the Employment Action, and also seeks damages on behalf of the Company in connection with a now settled securities class action that was also based upon allegations made in the Employment Action and settled within available insurance coverage without attribution of wrongdoing to the Company, its management, or its directors. The Derivative Action has been stayed pending resolution of the Employment Action. On October 26, 2022, a jury verdict was reached in the case of MUFG Union Bank, N.A. v. Axos Bank, et al , awarding damages to Union Bank. Judgment on such verdict was initially entered on June 5, 2023, and a corrected judgment was entered on June 20, 2023. The Company filed a Notice of Appeal on July 6, 2023, and the plaintiff filed a Notice of Cross-Appeal on July 20, 2023. The Company recorded a $16 million accrued expense in “Accounts payable and other liabilities” on the condensed consolidated balance sheet and in “General and administrative expense” on the condensed consolidated statement of income as of and for the year ended June 30, 2023, respectively. Given the uncertainty of the appellate process and other factors that are unknown or currently unquantifiable, the Company has maintained its accrual at June 30, 2023. 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, unless otherwise disclosed above. |
MINIMUM REGULATORY CAPITAL REQU
MINIMUM REGULATORY CAPITAL REQUIREMENTS | 12 Months Ended |
Jun. 30, 2023 | |
Banking Regulation, Minimum Regulatory Capital Requirements [Abstract] | |
MINIMUM REGULATORY CAPITAL REQUIREMENTS | MINIMUM REGULATORY CAPITAL REQUIREMENTS Consolidated and Banking Business. The Company and Bank are subject to regulatory capital adequacy requirements promulgated by federal bank regulatory agencies. Failure by the Company or Bank to meet minimum capital requirements could result in certain mandatory and discretionary actions by regulators that could have a material adverse effect on our results of operations or financial condition. The Federal Reserve establishes capital requirements for the Company and the OCC has similar requirements for the Bank. Under these capital requirements and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company and Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and Bank’s capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors. Quantitative measures established by regulation require the Company and Bank to maintain certain minimum capital amounts and ratios. Federal bank regulators require the Company and Bank maintain minimum ratios of tier 1 capital to adjusted average assets of 4.0%, common equity tier 1 capital to risk-weighted assets of 4.5%, tier 1 capital to risk-weighted assets of 6.0% and total risk-based capital to risk-weighted assets of 8.0%. To be “well capitalized,” the Company and Bank must maintain minimum leverage, common equity tier 1 risk-based, tier 1 risk-based and total risk-based capital ratios of at least 5.0%, 6.5%, 8.0% and 10.0%, respectively. At June 30, 2023, the Company and Bank met all the capital adequacy requirements to which they were subject. At June 30, 2023, the Company and Bank were “well capitalized” under the regulatory framework for prompt corrective action. Management believes that no conditions or events have occurred since June 30, 2023 that would materially adversely change the Company’s and Bank’s capital classifications. From time to time, we may need to raise additional capital to support the Company’s and Bank’s further growth and to maintain their “well capitalized” status. The Company and Bank both elected the five-year CECL transition guidance for calculating regulatory capital and ratios and the June 30, 2023 and June 30, 2022 amounts reflect this election. This guidance allowed an entity to add back to regulatory capital 100% of the impact of the day one CECL transition adjustment and 25% of subsequent increases to the allowance for credit losses through June 30, 2022. Beginning with fiscal year 2023, this cumulative amount is phased out of regulatory capital at 25% per year until it is 100% phased out of regulatory capital beginning in fiscal year 2026. The Company’s and Bank’s capital amounts, capital ratios and capital requirements under Basel III were as follows: Axos Financial, Inc. Axos Bank “Well Minimum Capital (Dollars in thousands) June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Regulatory Capital: Tier 1 $ 1,796,352 $ 1,522,478 $ 1,866,705 $ 1,615,012 Common equity tier 1 $ 1,796,352 $ 1,522,478 $ 1,866,705 $ 1,615,012 Total capital (to risk-weighted assets) $ 2,269,237 $ 1,965,578 $ 2,007,006 $ 1,725,528 Assets: Average adjusted $ 20,059,002 $ 16,460,684 $ 19,284,378 $ 15,164,797 Total risk-weighted $ 16,414,213 $ 15,443,152 $ 16,054,633 $ 14,366,457 Regulatory Capital Ratios: Tier 1 leverage (to adjusted average assets) 8.96 % 9.25 % 9.68 % 10.65 % 5.00 % 4.00 % Common equity tier 1 capital (to risk-weighted assets) 10.94 % 9.86 % 11.63 % 11.24 % 6.50 % 4.50 % Tier 1 capital (to risk-weighted assets) 10.94 % 9.86 % 11.63 % 11.24 % 8.00 % 6.00 % Total capital (to risk-weighted assets) 13.82 % 12.73 % 12.50 % 12.01 % 10.00 % 8.00 % Under Basel III all banking organizations are required to maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer is exclusively composed of common equity tier 1 capital, and it applies to each of the three risk-based capital ratios but not the leverage ratio. At June 30, 2023, the Company and Bank were in compliance with the capital conservation buffer requirement. Inclusive of the fully phased-in capital conservation buffer, the common equity Tier 1 capital, Tier 1 risk-based capital and total risk-based capital ratio minimums are 7.0%, 8.5% and 10.5%, respectively. A banking organization with a buffer of less than the required amount is subject to increasingly stringent limitations on such distributions and payments as the buffer approaches zero. In addition, these requirements also generally prohibit a banking organization from making such distributions or payments during any quarter if its eligible retained income is negative and its capital conservation buffer ratio was 2.5% or less at the end of the previous quarter. The eligible retained income of a banking organization is defined as its net income for the four calendar quarters preceding the current calendar quarter, based on the organization’s quarterly regulatory reports, net of any distributions and associated tax effects not already reflected in net income. Axos Clearing. Pursuant to the net capital requirements of the Exchange Act, Axos Clearing is subject to the SEC Uniform Net Capital (Rule 15c3-1 of the Exchange Act). Under this rule, the Company has elected to operate under the alternate method and is required to maintain minimum net capital of $250,000 or 2% of aggregate debit balances arising from client transactions, as defined. Under the alternate method, Axos Clearing may not repay subordinated debt, pay cash distributions, or make any unsecured advances or loans to its parent or employees if such payment would result in net capital of less than 5% of aggregate debit balances or less than 120% of its minimum dollar requirement. The net capital position of Axos Clearing was as follows: (Dollars in thousands) June 30, 2023 June 30, 2022 Net capital $ 35,221 $ 38,915 Less: required net capital 5,316 6,250 Excess capital $ 29,905 $ 32,665 Net capital as a percentage of aggregate debit items 13.25 % 12.45 % Net capital in excess of 5% aggregate debit items $ 21,930 $ 23,290 Axos Clearing, as a clearing broker, is subject to SEC Customer Protection Rule (Rule 15c3-3 of the Exchange Act) which requires segregation of funds in a special reserve account for the benefit of customers. At June 30, 2023, the Company calculated a deposit requirement of $169.5 million and maintained a deposit of $116.8 million. On July 5, 2023, Axos Clearing made a deposit of $81 million to satisfy the deposit requirement. At June 30, 2022, the Company calculated a deposit requirement of $286.9 million and maintained a deposit of $335.8 million. On July 1, 2022, Axos Clearing did not have to make a deposit to satisfy the deposit requirement. Certain broker-dealers have chosen to maintain brokerage customer accounts at Axos Clearing. To allow these broker-dealers to classify their assets held by the Company as allowable assets in their computation of net capital, the Company computes a separate reserve requirement for Proprietary Accounts of Brokers (PAB). At June 30, 2023, the Company calculated a deposit requirement of $26.8 million and maintained a deposit of $32.0 million. On July 1, 2023, Axos Clearing did not have to make a deposit to satisfy the deposit requirement. At June 30, 2022, the Company calculated a deposit requirement of $29.1 million and maintained a deposit of $36.3 million. On July 1, 2022, Axos Clearing did not have to make a deposit to satisfy the deposit requirement. |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Jun. 30, 2023 | |
Compensation Related Costs [Abstract] | |
EMPLOYEE BENEFIT PLAN | EMPLOYEE BENEFIT PLANThe Company has one 401(k) plan whereby substantially all of its employees may participate in the plan. Employees may contribute up to 100% of their compensation subject to certain limits based on federal tax laws. The Company provides an employer matching contribution to the 401(k) plan based on an employee’s designated deferral of their eligible compensation. For the fiscal years ended June 30, 2023, 2022, and 2021, expenses attributable to the plan amounted to $3.5 million, $3.6 million, and $2.4 million, respectively. These expenses are included in the Consolidated Statements of Income in “Salaries and related costs”. |
PARENT-ONLY CONDENSED FINANCIAL
PARENT-ONLY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Jun. 30, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT-ONLY CONDENSED FINANCIAL INFORMATION | PARENT-ONLY CONDENSED FINANCIAL INFORMATION The following tables present Axos Financial, Inc. (Parent company only) financial information and should be read in conjunction with the consolidated financial statements of the Company and the other notes to the consolidated financial statements. Adjustments to investment in subsidiaries, stockholders’ equity and equity in undistributed earnings of subsidiaries have been made to eliminate an intercompany transaction between multiple subsidiaries and the Parent company. CONDENSED BALANCE SHEETS 1 At June 30, (Dollars in thousands) 2023 2022 ASSETS Cash and cash equivalents $ 115,948 $ 98,640 Securities 15,050 14,486 Advances to non-bank subsidiaries 8,000 33,000 Other assets 78,932 92,235 Investment in bank subsidiaries 1,884,525 1,634,185 Investment in non-bank subsidiaries 235,223 187,633 Total assets $ 2,337,678 $ 2,060,179 LIABILITIES AND STOCKHOLDERS’ EQUITY Borrowings, subordinated notes and debentures $ 334,579 $ 333,744 Accounts payable and other liabilities 85,940 83,462 Total liabilities 420,519 417,206 Stockholders’ equity 1,917,159 1,642,973 Total liabilities and stockholders’ equity $ 2,337,678 $ 2,060,179 CONDENSED STATEMENTS OF INCOME 1 Year Ended June 30, (Dollars in thousands) 2023 2022 2021 Interest income $ 1,656 $ 1,777 $ 1,262 Interest expense 15,909 11,183 10,891 Net interest (expense) income (14,253) (9,406) (9,629) Net interest (expense) income, after provision for credit losses (14,253) (9,406) (9,629) Non-interest income (loss) 11,448 6,275 217 Non-interest expense and tax benefit 2 15,866 9,741 4,360 Income (loss) before dividends from subsidiary and equity in undistributed income of subsidiaries (18,671) (12,872) (13,772) Dividends from bank subsidiaries 45,000 40,000 45,000 Dividends from non-bank subsidiaries 13,750 — — Equity in undistributed earnings of subsidiaries 267,086 213,588 184,479 Net income $ 307,165 $ 240,716 $ 215,707 Comprehensive income $ 303,488 $ 235,276 $ 219,151 STATEMENTS OF CASH FLOWS 1 Year Ended June 30, (Dollars in thousands) 2023 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 307,165 $ 240,716 $ 215,707 Adjustments to reconcile net income to net cash used in operating activities: Depreciation, amortization and accretion 12,383 11,160 10,814 Stock-based compensation expense 26,100 21,242 20,685 Equity in undistributed earnings of subsidiaries (267,086) (213,588) (184,479) Decrease (increase) in other assets (3,448) (5,231) (25,835) Increase (decrease) in other liabilities (1,069) (11,564) (14,550) Net cash provided by operating activities 74,045 42,735 22,342 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from principal repayments on loans 25,000 — — Purchases of furniture, equipment, software and intangibles (805) (817) (457) Investment in subsidiaries (25,825) (203,086) (7,200) Net cash used in investing activities (1,630) (203,903) (7,657) CASH FLOWS FROM FINANCING ACTIVITIES: Tax payments related to the settlement of restricted stock units (6,144) (14,481) (10,648) Repurchase of treasury stock (48,963) — (16,757) Net (repayment) proceeds of other borrowings — — (51,000) Payments of debt issuance costs — (2,120) (2,748) Proceeds from issuance of subordinated notes — 150,000 175,000 Redemption of preferred stock, Series A — — (5,150) Cash dividends on preferred stock — — (103) Net cash provided by (used in) financing activities (55,107) 133,399 88,594 NET CHANGE IN CASH AND CASH EQUIVALENTS 17,308 (27,769) 103,279 CASH AND CASH EQUIVALENTS—Beginning of year 98,640 126,409 23,130 CASH AND CASH EQUIVALENTS—End of year $ 115,948 $ 98,640 $ 126,409 1 The prior period has been revised to conform to the current period presentation. 2 Includes tax benefits of $11,988, $11,927, and $8,967 for the years ended June 30, 2023, 2022, and 2021, respectively. |
BANK-OWNED LIFE INSURANCE
BANK-OWNED LIFE INSURANCE | 12 Months Ended |
Jun. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
BANK-OWNED LIFE INSURANCE | BANK-OWNED LIFE INSURANCE The following table summarizes the activity in the Company’s bank-owned life insurance (“BOLI”) as of the dates indicated: (Dollars in thousands) BOLI values Balance as of June 30, 2020 $ 6,380 Additions 50,000 Change in Contract Value 175 Balance as of June 30, 2021 56,555 Additions 100,000 Change in Contract Value 4,220 Balance as of June 30, 2022 160,775 Death Benefits (1,805) Change in Contract Value 4,444 Balance as of June 30, 2023 $ 163,414 Bank-owned life insurance is included in “Other assets” in the Consolidated Balance Sheets and in “Banking and service fees” in the Consolidated Statements of Income. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Jun. 30, 2023 | |
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 operating segments and segment results of the Company are determined based upon the management reporting system, which assigns balance sheet and income statement items to each of the business segments and by which segment results are evaluated by the Chief Executive Officer in deciding how to allocate resources and in assessing performance. The Company evaluates performance and allocates resources based on pre-tax profit or loss from operations in conjunction with its corporate strategy. Certain corporate administration costs have not been allocated to the reportable segments. The Company operates through two operating segments: Banking Business and Securities Business. Inter-segment transactions are eliminated in consolidation and primarily include non-interest income earned by the Securities Business segment and non-interest expense incurred by the Banking Business segment for cash sorting fees related to deposits sourced from Securities Business segment customers, as well as interest expense paid by the Banking Business segment to each of the wholly-owned subsidiaries of the Company and to the Company itself for their operating cash held on deposit with the Banking Business segment. Banking Business. The Banking Business has a broad range of banking services including online banking, concierge banking, and mortgage, vehicle and unsecured lending through online, low-cost distribution channels to serve the needs of consumers and businesses nationally. In addition, the Banking Business focuses on providing deposit products nationwide to industry verticals (e.g., Title and Escrow), treasury management products to a variety of businesses, and commercial & industrial and commercial real estate lending to clients. The Banking Business 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 includes the clearing broker-dealer, registered investment advisor custody business, registered investment advisor, and introducing broker-dealer lines of businesses. These lines of business offer products independently to their own customers as well as to Banking Business clients. The Securities Business also offers a specialized accounting software that serves the business management, family office and wealth management industries. In order to reconcile the two segments to the consolidated totals, the Company includes parent-only activities and intercompany eliminations. The following tables present the operating results, goodwill, and assets of the segments: Year Ended June 30, 2023 (Dollars in thousands) Banking Business Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 776,294 $ 21,042 $ (14,215) $ 783,121 Provision for credit losses 24,750 — — 24,750 Non-interest income 42,260 141,107 (62,879) 120,488 Non-interest expense 390,911 102,572 (46,368) 447,115 Income (Loss) before income taxes $ 402,893 $ 59,577 $ (30,726) $ 431,744 Year Ended June 30, 2022 (Dollars in thousands) Banking Business Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 597,833 $ 17,580 $ (8,255) $ 607,158 Provision for credit losses 18,500 — — 18,500 Non-interest income 60,881 64,069 (11,587) 113,363 Non-interest expense 274,079 84,014 3,969 362,062 Income (Loss) before income taxes $ 366,135 $ (2,365) $ (23,811) $ 339,959 As of June 30, 2023 (Dollars in thousands) Banking Business Securities Business Corporate/Eliminations Axos Consolidated Goodwill $ 35,721 $ 61,952 $ — $ 97,673 Total assets $ 19,396,167 $ 899,496 $ 52,806 $ 20,348,469 As of June 30, 2022 (Dollars in thousands) Banking Business Securities Business Corporate/Eliminations Axos Consolidated Goodwill $ 35,721 $ 59,953 $ — $ 95,674 Total assets $ 16,002,714 $ 1,328,558 $ 69,893 $ 17,401,165 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSOn August 23, 2023, the Company agreed to acquire approximately $62 million of marine floor financing loans at par along with loan servicing rights and client lists for an additional $2 million. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Pay vs Performance Disclosure | |||
Net income | $ 307,165 | $ 240,716 | $ 215,707 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
ORGANIZATIONS AND SUMMARY OF _2
ORGANIZATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation . The Consolidated Financial Statements include the accounts of Axos Financial, Inc. (“Axos”) and its wholly owned subsidiaries, Axos Bank (the “Bank”) and Axos Nevada Holding, LLC (“Axos Nevada Holding,” collectively, the “Company”). Axos, the Bank and Axos Nevada Holding comprise substantially all of the Company’s assets and liabilities and revenue and expenses. Axos Bank and its wholly owned subsidiaries constitute the Banking Business segment and Axos Nevada Holding and its wholly owned subsidiaries constitute the Securities Business segment. All significant intercompany balances and transactions have been eliminated in consolidation. The Notes to the Consolidated Financial Statements are an integral part of the Company’s financial statements. Certain reclassifications have been made to the Consolidated Balance Sheets, Consolidated Statements of Income and Consolidated Statements of Cash Flows to conform to the current period presentation. These reclassifications had no effect on the Company’s results of operations, financial position or net cash flows from/used in operating activities, investing activities or financing activities. |
Use of Estimates | Use of Estimates . In preparing the Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, fair value of trading and available-for-sale debt securities and the valuation of goodwill and intangibles. |
Revenue Recognition | Revenue Recognition. The Company accounts for certain revenue streams under Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”), which provides that an entity shall recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Certain non-interest income, such as deposit service fees, advisory fee income and broker-dealer clearing fees, are within the scope of ASC 606. Advisory Fee Income—Asset-Based Custody Fees and Asset-Based Fund Fees. Asset-based custody fees consist of custody fees, and other ancillary fees. Custody fees vary based on a percentage of average customer assets under custody. Other ancillary fees may be charged based on average customer assets or based on specific activity. Revenue is recognized over the period where assets are held as the customer simultaneously receives and consumes the benefits. Asset-based fund fees consist of 12b-1 and mutual fund stockholder services fees and are paid by mutual fund companies periodically based on the underlying agreements. Asset-based fund fees are charged based on a percentage of client assets invested in certain funds. Revenue is calculated each month based on the average daily assets invested in particular funds. Revenue is recognized over the period where assets are invested in certain funds. The performance obligations relate to providing recordkeeping, stockholder and administration services to mutual fund companies and revenue recognition is constrained until the amount of average assets invested in each fund is known. Broker-Dealer Clearing Fees. The Company earns revenues for executing, settling and clearing securities transactions for other broker-dealers on a fully disclosed basis. Trade execution and clearing services, when provided together, represent a single performance obligation as the services are not separately identifiable in the context of the contract. Revenues associated with combined trade execution and clearing services, as well as trade execution services on a standalone basis, are recognized at a point in time on trade-date. The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying security or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership have been transferred to/from the customer. The Company also earns revenues for services which are separately identifiable and represent a distinct performance obligation which is recognized over time as the customer simultaneously receives and consumes the benefits. Certain clearing or other related fees represent a modification of the original contract as they are distinct services. All trade and execution services are priced at their standalone selling price. Clearing and other fees are generally deducted from the introducing brokers’ commissions on a monthly basis. Banking and Service Fees—Deposit Service Fees. Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied and related revenue recognized, when incurred. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Banking and Service Fees—Card Fees. Fees, exchange, and other service charges are primarily comprised of debit card income, ATM fees, merchant services income, and other service charges. Debit card income is primarily comprised of interchange fees earned whenever the Company’s debit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Banking and Service Fees—Bankruptcy Trustee and Fiduciary Service Fees. Bankruptcy Trustee and Fiduciary Service income is primarily comprised of fees earned from the Monthly Basis Point Fee and Bank Account Service Charge. The products and services provided to the Trustee also indirectly provide additional deposits to the other banks. One of the uses of the increased deposits by the other banks is to fund the fees paid. The performance obligation is satisfied when the deposits are increased (or decreased) at the end of each month. The expected value method will be used to calculate and record the estimated revenue at the beginning of each month with a subsequent reconciliation to actual at the end of each month. The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of ASC 606 for the periods indicated: Year Ended June 30, (Dollars in thousands) 2023 2022 2021 Advisory fee income $ 28,324 $ 28,309 $ — Broker-dealer clearing fees 21,903 19,754 22,156 Deposit service fees 4,517 4,508 4,173 Card fees 4,410 3,764 3,625 Bankruptcy trustee and fiduciary service fees 6,107 3,099 1,380 Non-interest income (in-scope ASC 606) 65,261 59,434 31,334 Non-interest income (out-of-scope ASC 606) 55,227 53,929 73,927 Total non-interest income $ 120,488 $ 113,363 $ 105,261 Contract Balances. A contract asset or receivable is recognized if the Company performs a service or transfers a good in advance of receiving consideration. A contract liability is recognized if the Company receives consideration (or has the unconditional right to receive consideration) in advance of performance. As of June 30, 2023 and 2022, respectively, the Company’s contract assets and liabilities were not considered material. Other. Income from bank owned life insurance is accounted for in accordance with ASC 325, Investments - Other. Increases in the net cash surrender value of the policies, as well as insurance proceeds received, are recorded in non-interest |
Cash and Cash Equivalents and Cash segregated for regulatory purposes | Cash and Cash Equivalents . The Bank’s cash, due from banks, money market mutual funds and federal funds sold, all of which have original maturities within 90 days, consist of cash and cash equivalents. The table below presents Cash and Cash Equivalents based on non-interest-earning and interest-earning status. At June 30, (Dollars in thousands) 2023 2022 Non-interest-earning cash and cash equivalents $ 92,645 $ 35,467 Interest-earning cash and cash equivalents 2,289,441 1,539,232 Total cash and cash equivalents $ 2,382,086 $ 1,574,699 Cash segregated for regulatory purposes . This line item includes qualified deposits in special reserve bank accounts for the exclusive benefit of Axos Clearing customers in accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and other regulations. |
Securities | Securities . The Company classifies securities at the time of purchase depending on intent. Debt securities are classified as held-to-maturity and carried at amortized cost when management has both the positive intent and ability to hold them to maturity. Debt securities are classified as available-for-sale when they might be sold before maturity. Securities available-for-sale are reported at estimated fair value, with unrealized gains and losses, net of the related tax effects, excluded from operations and reported as a separate component of “Accumulated other comprehensive income or loss” on the Consolidated Balance Sheets. Trading securities refer to certain types of assets that banks hold for resale at a profit or when the Company elects to account for certain securities at fair value. Increases or decreases in the fair value of trading securities are recognized in earnings as they occur. Gains and losses on securities sales are based on a comparison of sales proceeds and the amortized cost of the security sold using the specific identification method. Purchases and sales are recognized on the trade date. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are amortized or accreted using the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates at the individual security level whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. The remaining change in fair value is recognized in “Other comprehensive income” on the Consolidated Statements of Comprehensive Income. Changes in the allowance for credit losses, if any, are recorded as a provision for (or reversal of) credit losses. Losses are charged against the allowance when management believes the available-for-sale investment security is confirmed as uncollectible or when either of the criteria regarding intent or requirement to sell is met. |
Loans (including Direct Financing & Sales Type Leases) | Loans (including Direct Financing & Sales Type Leases) . Loans that are held for investment are loans that management has the intent and ability to hold for the foreseeable future or until maturity are reported at the principal balance outstanding, net of unearned interest, deferred purchase premiums and discounts, deferred loan origination fees and costs, and an allowance for credit loss - loans. Interest income is accrued on the unpaid principal balance. Premiums and discounts on loans purchased as well as loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method. Single Family - Mortgage & Warehouse. The Single Family - Mortgage & Warehouse portfolio segment primarily consists of two loan types: single family mortgage loans and single family warehouse lines of credit. The single family mortgage loans consist of fixed-rate and adjustable-rate loans secured by one-to-four family residences located in the U.S. Terms typically range from 15 to 30 years. The single family warehouse lines of credit enable the mortgage originators to close loans in their own names and temporarily finance inventories of closed mortgage loans until they can be sold to an approved investor. The Company also originates home equity lines of credit and second mortgage loans. Multifamily and Commercial Mortgage. The Multifamily and Commercial Mortgage portfolio segment consists of loans secured by multifamily real estate (more than four units) and commercial real estate (typically from $0.5 million to $50 million). These loans are dependent on the cash flow capacity of the project and repayment of loans secured by properties frequently depends on their successful operation and management. Commercial Real Estate. The Commercial Real Estate portfolio segment consists of loans across the U.S. secured by commercial real estate properties (“CRE”) under a variety of structures that it classifies as commercial real estate. A few examples are as follows: Commercial Bridge to Sale, Commercial Bridge to Construction, Commercial Bridge to Refinance and Acquisition, Development, Construction and Lender Finance. CRE Loans are originated to businesses secured by first liens on single family, multifamily, condominium, office, retail, mixed-use, hospitality, undeveloped or to-be-redeveloped land. Repayment of CRE loans depends on the successful completion of the real estate transition project and permanent take-out. Commercial & Industrial - Non-Real Estate (Non-RE). The Commercial & Industrial - Non-Real Estate portfolio segment consists of commercial and industrial non-real estate, asset-backed loans, lines of credit, term loans, leveraged cash flow loans and equipment financing leases. These receivables are generally secured by commercial assets, including, but not limited to, receivables, inventory and equipment. For commercial and industrial non-real estate, asset backed loans and line of credit term loans, the Company typically enters into a structured facility, under which it takes a senior lien position collateralized by the underlying assets at advance rates well below the collateral value. Leveraged cash flow loans provide financial sponsors the ability to finance acquisitions, management buy-outs, recapitalizations, debt refinancing and dividends/distributions. Such lending relies on free cash flow as the primary repayment source, and enterprise value as the secondary repayment source. The Company’s equipment financing lease arrangements do not qualify as a sale as the Company does not obtain control of the assets in the ongoing sale leaseback arrangements. Therefore, the leased equipment is not capitalized on the Consolidated Balance Sheets. 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 and is included within the Loans, including fees, line item in the Consolidated Statements of Income. Leases generally do not contain non-lease components. Commercial and industrial leases are primarily made based on the operating cash flows of the borrower or conversion of working capital assets to cash and secondarily on the underlying collateral provided by the borrower. Auto and Consumer. The Auto and Consumer portfolio segment consists of the following distinct classes: Auto. The Auto class consists of prime loans to customers secured by new and used vehicles. The Company holds all of the auto loans originated and performs loan servicing functions for these loans. Auto loans carry a fixed interest rate and have terms that range from two Consumer Unsecured Lending. The Consumer Unsecured Lending class consists of fixed rate unsecured loans to well-qualified, individual borrowers in all fifty states. Loans are normally in the range between $7,000 and $50,000 with terms that range between 36 months and 72 months. Other. Other loans include structured settlements, SBA loans issued pursuant to the Federal Paycheck Protection Program (“PPP”) under the Federal Coronavirus Aid, Relief and Economic Security Act (“CARES”) Act and account overdraft loans. Recognition of interest income on all portfolio segments is generally discontinued at the time the loan is 90 days delinquent unless the loan is well secured and in process of collection. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for loans placed on nonaccrual, is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost recovery method, until qualifying for return to accrual |
Loans Held for Sale | Loans Held for Sale . Loans held for sale includes agency loans and non-agency loans held for sale. Agency loans originated and intended for sale in the secondary market are carried at fair value. Net unrealized gains and losses are recognized through mortgage banking income in the income statement. The Bank sells its mortgage loans with either servicing released or servicing retained depending upon market pricing. Gains and losses on loan sales are recorded as mortgage banking income, based on the difference between sales proceeds and carrying value. Non-agency loans held for sale are carried at the lower of cost or fair value. 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. Loans that were originated with the intent and ability to hold for the foreseeable future (loans held for investment), but which have been subsequently designated as being held for sale for risk management or liquidity needs are carried at the lower of cost or fair value calculated using pools of loans with similar characteristics. Upon transfer, the Company assesses the collectability of the outstanding principal balance and may charge-off a portion of the loan as discussed further below in “Allowance for Credit Losses.” Following this assessment, any previously established ACL on the held for investment loan is reversed and the loan is transferred at amortized cost. If, following transfer to held for sale, the fair value of the loan is below its amortized cost a valuation allowance is established for the difference. |
Allowance for Credit Losses | Allowance for Credit Losses. The ACL is a valuation account that offsets the amortized cost basis of loans and net investment in leases. Under ASC 326, amortized cost is the basis on which the ACL is determined. Amortized cost is principal outstanding, net of any purchase premiums and discounts and net of any deferred loan fees and costs. Credit losses are charged off when the Company believes that collectability of at least some portion of outstanding principal is unlikely. These charge-offs are recorded as a reversal, thereby reducing, the allowance for credit losses. Recoveries on loans previously charged off are recorded as an increase to the allowance for credit losses. The allowance for credit losses is maintained at a level needed to absorb expected credit losses over the contractual life, considering the effects of prepayments, of the loan portfolio as of the reporting date. Determining the adequacy of the allowance for credit losses is complex and requires judgment by Management about the effect of matters that are inherently uncertain. As such, a future assessment of current conditions may require material adjustments to the allowance. The Company’s process for determining expected life-time credit losses entails a portfolio, model-based approach utilizing loan level detail and requires consideration of a broad range of relevant information relating to historical loss experience, current economic conditions and reasonable and supportable forecasts. A credit loss is estimated for all loans. Consequently, the Company stratifies the full loan population into segments sharing similar characteristics to perform the evaluation of the credit loss collectively. The Company defines a loan portfolio segment as the level at which the Company develops a systematic methodology to determine the allowance, which is generally based on similar risk attributes, including underlying collateral, as well as the Company’s methods for monitoring credit risk and other factors. The Company categorizes the loan portfolio into six segments: Single Family - Mortgage & Warehouse, Multifamily and Commercial Mortgage, Commercial Real Estate, including construction lending, Commercial & Industrial - Non Real Estate, Auto & Consumer and Other. For further information on these loan portfolio segments, see “Loans” herein. The method for estimating expected life-time credit losses includes, among other things, the following main components: 1) The use of a probability of default (“PD”)/loss given default (“LGD”) model; 2) defining a number of economic scenarios across the benign to adverse spectrum; 3) a reasonable forecast period of 24 months for all loan segments; and 4) a reversion period of 12 months using a linear transition to historical loss rates for each loan pool. After the reversion period, the historical loss rate is applied over the remaining contractual life of loan. Reasonable forecast periods and reversion periods are subject to periodic review and may be adjusted based on the Company’s view of current economic conditions. The results of the estimate are calculated for several scenarios across the benign to adverse spectrum for each of the Company’s loan portfolio segments. The weighting of scenarios is subject to periodic review and may be adjusted based on the Company’s view of current economic conditions. Given the inherent limitations of a solely quantitative model, qualitative adjustments are included to arrive at the ending calculated loss amount in order to account for data points not captured from quantitative inputs alone. Qualitative criteria we consider includes, among other things, the following: • Regulatory and Legal - matters that may impact the timeliness and/or amounts of repayments; • Concentration - portfolio composition and loan concentration; • Collateral Dependency - changes in collateral values; • Lending/Underwriting Standards - current lending policies and the effects of any new policies; • Nature and Volume - loan production volume and mix; • Macroeconomic Environment - considerations not reflected in the data utilized in the model; and • Loan Trends - credit performance trends, including a borrower’s financial condition and credit rating. Specifically, Management reviews whether the model reflects the appropriate level of PD and LGD, given the macroeconomic forecasts used as compared to the Company’s loan portfolio. Management determines the adequacy of the allowance for credit losses based on reviews of individual loans, recent loss experience, current economic conditions, expectations about future economic conditions, the risk characteristics of the various categories of loans, including loan-to-value ratios, and other pertinent factors. If, based on Management’s evaluation, macroeconomic factors do not capture Management’s assumption regarding collateral values (LGD) and defaults (PD), Management will apply additional qualitative overlays to the loan portfolio. This evaluation is inherently subjective and requires estimates that are susceptible to significant revision as more information becomes available. Accrued Interest . Accrued interest receivable is excluded from amortized cost and is presented separately in “Other Assets” on the Consolidated Balance Sheets. Additionally, the Company does not estimate an allowance for credit losses on accrued interest receivable as the Company has a policy to charge off accrued interest deemed uncollectible in a timely manner. When a loan is placed on non-accrual status, which occurs when a borrower becomes delinquent by 90 days, interest previously accrued but not collected is reversed against current period interest income. Individually Assessed Loans. Credit loss is estimated for any individual loan on a collective basis, unless an individual loan’s credit characteristics has deteriorated below a range of the overall group, in which case the loan would then be individually assessed. Individually assessed loans are measured for credit loss based on present value of future expected cash flows, discounted at the loan’s effective interest rate or the fair value of the collateral, less estimated selling costs, if the loan is collateral-dependent. Loan Commitments. |
Leases - Lessee Arrangements | Leases - Lessee Arrangements. The Company leases office space under operating lease agreements scheduled to expire at various dates. The Company accounts for leases under ASC 842, Leases . 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, which is a blended rate comprised of the FHLB term rate and the Company’s subordinated debt 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. Right-of-use assets are reported in “Other assets” on the Consolidated Balance Sheets, and the related lease liabilities are reported in “Accounts payable, accrued liabilities and other liabilities.” All leases are recorded on the Consolidated Balance Sheets. Lease expense is recognized on a straight-line basis over the lease term and is recorded in “Occupancy and equipment” expense in the Consolidated Statements of Income. |
Mortgage Servicing Rights | Mortgage Servicing Rights . Mortgage servicing assets are recognized when rights are retained upon sale of loans. The Company measures its servicing asset using the fair value method. Under the fair value method, the servicing rights are included on the Consolidated Balance Sheets at fair value. The changes in fair value are reported in earnings in the period in which the changes occur and the adjustments are included in “Mortgage banking income,” a component of non-interest income in the Consolidated Statements of Income. |
Derivatives | Derivatives . Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. The Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into, in order to economically hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these derivatives are included in “Mortgage banking income” on the Consolidated Statements of Income. The Company also makes markets in interest rate swap and cap derivatives to facilitate customer demand. The Company enters into offsetting derivative transactions to offset its interest rate risk associated with this customer transaction activity. Changes in the fair values of these derivatives, and related fees, are included in “Banking and service fees” on the Consolidated Statements of Income. |
Furniture, Equipment and Software | Furniture, Equipment and Software . Fixed assets are stated at cost less accumulated depreciation and amortization computed three |
Income Taxes | Income Taxes. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred income tax assets and liabilities are determined using the asset and liability method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various assets and liabilities on the Consolidated Balance Sheets and gives current recognition to changes in tax rates and laws. The Company records a valuation allowance when management believes it is more likely than not that deferred tax assets will not be realized. An income tax position will be recognized as a benefit only if it is more likely than not that it will be sustained upon examination by the Internal Revenue Service, based upon its technical merits. Once that status is met, the amount recorded will be the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
Securities Borrowed and Securities Loaned | Securities Borrowed and Securities Loaned . Securities borrowed and securities loaned transactions are reported as collateralized financings and recorded at the amount of cash collateral advanced or received. Securities borrowed transactions require the Company to deposit cash with the lender. With respect to securities loaned, the Company receives collateral in the form of cash in an amount in excess of the fair value of securities loaned. The Company monitors the fair value of securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded, as necessary. |
Customer, Broker-Dealer and Clearing Receivables and Payables | Customer, Broker-Dealer and Clearing Receivables and Payables . Customer, broker-dealer and clearing receivables include receivables of the Company’s broker-dealer subsidiaries, which represent amounts due on cash and margin transactions and are generally collateralized by securities owned by clients. These receivables primarily consist of floating-rate loans collateralized by customer-owned securities. The receivables are reported at their outstanding principal balance net of allowance for doubtful accounts. When a receivable is considered to be impaired, and impairment charge is recorded based on the current estimate of credit loss for the receivable, which is measured based on current prices from independent sources, such as listed market prices or broker-dealer price quotations. Securities owned by customers, including those that collateralize margin or other similar transactions, are not reflected on the Consolidated Balance Sheets. Also included in these accounts are receivables and payables from brokers and dealers and clearing organizations as well as securities failed to deliver and receive. |
Business Combinations | Business Combinations. Mergers and acquisitions are accounted for using the acquisition method of accounting. Assets and liabilities acquired and assumed are recorded at their fair values as of the date of the transaction. The excess of purchase price over the fair value of assets acquired and liabilities assumed is recorded as goodwill. Significant estimates and judgments are involved in the fair valuation and purchase price allocation process. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets . Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Other intangible assets represent purchased assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. Intangible assets that have finite lives, such as core deposit intangibles, are amortized over their estimated useful lives and subject to periodic impairment testing. Intangible assets (other than goodwill) are amortized to “Depreciation and amortization,” a component of non-interest expense on the Consolidated Statements of Income, using accelerated or straight-line methods over their respective estimated useful lives. Goodwill is subject to impairment testing at the reporting unit level, which is conducted at least annually. The Company performs impairment testing during the third quarter of each year or when events or changes in circumstances indicate the assets might be impaired. The Company performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing updated qualitative factors, the Company determines it is more likely than not that the fair value of a reporting unit is less than its carrying amount, it performs a quantitative goodwill impairment test. Determining the fair value of a reporting unit is judgmental and often involves the use of significant estimates |
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 restricted stock units (“RSU”). Diluted EPS is computed by dividing the sum of net income attributable to common stock and dividends on diluted preferred stock by the sum of the weighted-average number of common shares outstanding during the year and the impact of dilutive potential common shares, such as nonparticipating RSUs 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. 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 Amended and Restated 2014 Stock Incentive Plan (the “2014 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 earnings per common share calculation and are included in the diluted earnings per common share calculation using the treasury stock method. |
Stock-Based Compensation | Stock-Based Compensation . Compensation cost is recognized for RSU awards issued to employees, based on the fair value of these awards at the date of grant. Market price of the Company’s common stock at the date of grant is used for RSU awards. The Company has certain share awards that include market conditions that affect vesting. The fair value of these awards is estimated using a Monte Carlo simulation. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with only a service condition that have a graded vesting schedule, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. For awards that contain a market condition and have a graded vesting schedule compensation cost is recognized using an accelerated attribution method over the requisite service period for the awards. The Company accounts for forfeitures by recognizing forfeitures when they occur. |
Stock of Regulatory Agencies | Stock of Regulatory Agencies . The Bank is a member of the Federal Home Loan Bank (“FHLB”) system. Members are required to own a certain amount of FHLB stock based on the level of borrowings and other factors. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Axos Securities, LLC is a member of the Depository Trust & Clearing Corporation (“DTCC”), a financial services company providing clearing and settlement services to the financial markets. Members are required to own a certain amount of DTCC stock based on the clearing levels and other factors. DTCC stock is carried at fair value, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. |
Low Income Housing Tax Credits “LIHTC” | Low Income Housing Tax Credits (“LIHTC”) . |
Cash Surrender Value of Life Insurance | Cash Surrender Value of Life Insurance . The Bank has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other amounts due that are probable at settlement. Cash surrender value of life insurance is included in the other assets line on the consolidated balance sheet. Changes to the cash surrender value are recorded within “Banking and service fees”, which is a component of non-interest income on the Consolidated Statements of Income. |
Comprehensive Income | Comprehensive Income . Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available-for-sale, which are also recognized as separate components of equity. The method for determining the cost basis of securities sold or reclassified out of other comprehensive income into earnings is based on the value of the specific security and any previously recognized gain or loss associated with that specific security. |
Loss Contingencies | Loss Contingencies. The Company records an accrual for a loss contingency when the estimated loss is both probable and reasonably estimated. |
New Accounting Standards | New Accounting Standards Accounting Standards Issued But Not Yet Adopted as of June 30, 2023 The Financial Accounting Standards Board has issued three Accounting Standards Updates (“ASUs”) (2020-04, 2021-04 and 2022-06) all of which provide guidance to alleviate the burden in accounting for reference rate reform by allowing certain expedients and exceptions in applying generally accepted accounting principles to contracts, hedging relationships, and other transactions impacted by reference rate reform. The provisions apply only to those transactions that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. Adoption of the provisions are optional and are effective from March 12, 2020 through December 31, 2024. The Company adopted these ASUs on July 1, 2023 and there was no impact on its financial condition or results of operations upon adoption. In March 2022, the Financial Accounting Standards Board (“FASB”) issued ASU 2022-02 which eliminates the accounting guidance for troubled debt restructurings by creditors that have adopted the current expected credit losses (“CECL”) model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The Company adopted this ASU on July 1, 2023 and there was no impact on its financial condition or results of operations upon adoption. The Company will be required to update certain disclosures around financing receivables and net investment in leases beginning in the first quarter of fiscal year 2024. |
Fair Value Measurement | Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC Topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices in active markets for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets include securities with quoted prices that are traded less frequently than exchange-traded instruments and whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models such as discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. When available, the Company generally uses quoted market prices to determine fair value. In some cases where a market price is available, the Company will make use of acceptable practical expedients (such as matrix pricing) to calculate fair value, in which case the items are classified in Level 2. The Company considers relevant and observable market prices in its valuations where possible. The frequency of transactions, the size of the bid-ask spread and the nature of the participants are some of the factors the Company uses to help determine whether a market is active and orderly or inactive and not orderly. Price quotes based upon transactions that are not orderly are not considered to be indicative of fair value and are given little, if any, weight in measuring fair value. If quoted market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sourced market parameters, such as interest rates, credit spreads, housing value forecasts, etc. Items valued using such internally generated valuation techniques are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable. |
Fair Value of Financial Instruments | The following section describes the valuation methodologies used by the Company to measure various financial instruments at fair value, including an indication of the level in the fair-value hierarchy in which each instrument is generally classified: Securities—trading and available-for-sale . Trading and Available-for-sale securities are recorded at fair value. Available-for-sale securities consist of mortgage-backed securities (“MBS”) issued by U.S. government-backed, including Ginnie Mae, or government-sponsored enterprises including Fannie Mae and Freddie Mac (“agency”), MBS issued by non-agencies and municipal securities. Fair value for agency securities and municipal securities are generally based on quoted market prices of similar securities used to form a dealer quote or a pricing matrix. These securities are classified in Level 2. There continues to be significant illiquidity in the market for MBS issued by non-agencies, impacting the availability and reliability of transparent pricing. As orderly quoted market prices are not available, the Level 3 fair values for these securities are determined by the Company utilizing industry-standard tools to calculate the net present value of the expected cash flows available to the securities from the underlying mortgage assets. The Company computes Level 3 fair values for each non-agency MBS in the same manner (as described below) whether available-for-sale or held-to-maturity. To determine the performance of the underlying mortgage loan pools, the Company estimates prepayments, defaults, and loss severities based on a number of macroeconomic factors, including housing price changes, unemployment rates, interest rates and borrower attributes such as credit score and loan documentation at the time of origination. The Company inputs for each security a projection of monthly default rates, loss severity rates and voluntary prepayment rates for the underlying mortgages for the remaining life of the security to determine the expected cash flows. The projections of default rates are derived by the Company from the historic default rate observed in the pool of loans collateralizing the security, increased by and decreased by the forecasted increase or decrease in the national unemployment rate. The projections of loss severity rates are derived by the Company from the historic loss severity rate observed in the pool of loans, increased by or decreased by the forecasted increase or decrease in the national home price index (“HPI”). The largest factors influencing the Company’s modeling of the monthly default rate are unemployment and the HPI, as a strong correlation exists. The most updated unemployment rate reported in June 2023 was 3.6%. Consensus estimates for unemployment are that the rate will increase. The Company agrees with consensus estimates and thus is projecting higher monthly default rates. The Company projects that severities will continue to improve as HPI improves. To determine the discount rates used to compute the present value of the expected cash flows for these non-agency MBS securities, the Company separates the securities by the borrower characteristics in the underlying pool. Specifically, “prime” securities generally have borrowers with higher FICO scores and better documentation of income. “Alt-A” securities generally have borrowers with a lower FICO and less documentation of income. “Pay-option ARMs” are Alt-A securities with borrowers that tend to pay the least amount of principal (or increase their loan balance through negative amortization). The Company calculates separate discount rates for prime, Alt-A and Pay-option ARM non-agency MBS securities using market-participant assumptions for risk, capital and return on equity. The default rates and the severities are projected for every non-agency MBS security held by the Company and will vary monthly based upon the actual performance of the security and the macroeconomic factors discussed above. Based upon the actual performance of the underlying collateral, the securities’ credit enhancement will be impacted. The range of existing credit enhancement is from 0.0% to 93.9%, with a weighted-average credit enhancement 20.9%. The Company applies its discount rates to the projected monthly cash flows, which already reflect the full impact of all forecasted losses using the assumptions described above. When calculating present value of the expected cash flows at June 30, 2023, the Company computed its discount rates as a spread between 261 and 750 basis points over the LIBOR Index using the LIBOR forward curve. The Company’s estimate of fair value for non-agency securities using Level 3 pricing is highly subjective and is based on the Company’s estimate of voluntary prepayments, default rates, severities and discount margins, which are forecasted monthly over the remaining life of each security. Changes in one or more of these assumptions can cause a significant change in the estimated fair value. For further details see the table later in this note that summarizes quantitative information about level 3 fair value measurements. Loans Held for Sale . Loans held for sale at fair value are primarily single-family residential loans. The fair value of residential loans held for sale is determined by pricing for comparable assets or by existing forward sales commitment prices with investors. These loans held for sale are classified under Level 2. Other Real Estate Owned and Repossessed Vehicles . Fair values are generally based on third party appraisals of the property, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. Mortgage Servicing Rights . Fair value is derived from market-driven valuation changes as well as modeled amortization involving the run-off of value that occurs due to the passage of time as individual loans are paid by borrowers. Market expectations about loan duration, and correspondingly the expected term of future servicing cash flows, may vary from time to time due to changes in expected prepayment activity, especially when interest rates rise or fall. Market expectations of increased loan prepayment speeds may negatively impact the fair value of the single family MSRs. Fair value is also dependent on the discount rate used in calculating present value, which is derived from observable market activity, market participants, and results in Level 3 classification. Management reviews and adjusts the discount rate on an ongoing basis. An increase in the discount rate would reduce the estimated fair value of the MSRs asset. Derivatives . The fair value of interest rate locks is estimated based on changes in to be announced (“TBA”) values which are based upon mortgage interest rates from the date the interest on the loan is locked, adjusted for items such as estimated fallout and costs to originate the loan. These are classified under level 2. The fair value of forward sale commitments is based upon prices in active secondary markets for identical securities or based on quoted market prices of similar assets used to form a dealer quote or a pricing matrix. If no such quoted price exists, the fair value of a commitment is determined by quoted prices for a similar commitment or commitments, adjusted for the specific attributes of each commitment. These are classified under level 2. The fair value of interest rate swaps and caps entered into to facilitate customer transaction activity is based upon observable market forward rate curves. These are classified under Level 2. |
Credit Quality Indicators | Credit Quality Indicators . The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends. The Company analyzes loans individually by classifying the loans based on credit risk. The Company uses the following definitions for risk ratings. Pass . Loans classified as pass are well protected by the current net worth and paying capacity of the obligor or by the fair value of any underlying collateral, less cost to acquire and sell in a timely manner. Special Mention . Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard . Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful . Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The Company reviews and grades loans following a continuous review process, featuring coverage of all loan types and business lines at least quarterly. Continuous reviewing provides more effective risk monitoring because it immediately tests for potential impacts caused by changes in personnel, policy, products or underwriting standards. |
ORGANIZATIONS AND SUMMARY OF _3
ORGANIZATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Non-interest Income, Segregated by Revenue Streams | The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of ASC 606 for the periods indicated: Year Ended June 30, (Dollars in thousands) 2023 2022 2021 Advisory fee income $ 28,324 $ 28,309 $ — Broker-dealer clearing fees 21,903 19,754 22,156 Deposit service fees 4,517 4,508 4,173 Card fees 4,410 3,764 3,625 Bankruptcy trustee and fiduciary service fees 6,107 3,099 1,380 Non-interest income (in-scope ASC 606) 65,261 59,434 31,334 Non-interest income (out-of-scope ASC 606) 55,227 53,929 73,927 Total non-interest income $ 120,488 $ 113,363 $ 105,261 |
Schedule of Cash and Cash Equivalents | The table below presents Cash and Cash Equivalents based on non-interest-earning and interest-earning status. At June 30, (Dollars in thousands) 2023 2022 Non-interest-earning cash and cash equivalents $ 92,645 $ 35,467 Interest-earning cash and cash equivalents 2,289,441 1,539,232 Total cash and cash equivalents $ 2,382,086 $ 1,574,699 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Fair Value and Useful Life of Each Intangible Asset Acquired | The following table summarizes the fair value and useful life of each intangible asset acquired as of the acquisition date: (Dollars in thousands) Fair Value Useful Lives (Years) Trade Name $ 290 0.16 Proprietary Technology 10,990 7 Customer Relationships 15,650 14 Non-Compete Agreements 130 1 Total $ 27,060 |
Schedule of Business Acquisition, Pro Forma Information | The following table presents the results of operations of AAS for the years ended June 30, 2022 and 2021 on an unaudited pro forma basis, as if the acquisition of the entity that was rebranded to AAS had been consummated on July 1, 2020 through the periods shown below. The unaudited pro forma financial information is provided for informational purposes only and is not necessarily indicative of what the Company’s results of operations would have been if the acquisition of AAS had occurred as of July 1, 2020, or the results of operations for any future periods. Additionally, the information presented as follows does not reflect any synergies or other strategic benefits as a result of acquisition. Pro Forma Year Ended June 30, (Dollars in thousands) 2022 2021 Non-interest income $ 32,949 $ 30,395 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: June 30, 2023 (Dollars in thousands) Significant Other Significant Total ASSETS: Securities—Trading: Municipal $ 758 $ — $ 758 Securities—Available-for-Sale: Agency MBS 1 $ 23,947 $ — $ 23,947 Non-Agency MBS 2 — 205,005 205,005 Municipal 3,398 — 3,398 Asset-backed securities and structured notes — — — Total—Securities—Available-for-Sale $ 27,345 $ 205,005 $ 232,350 Loans held for sale $ 23,203 $ — $ 23,203 Mortgage servicing rights $ — $ 25,443 $ 25,443 Other assets—Derivative instruments $ 919 $ — $ 919 LIABILITIES: Accrued expense and other liabilities—Derivative instruments $ 691 $ — $ 691 June 30, 2022 (Dollars in thousands) Significant Other Significant Total ASSETS: Securities—Trading: Municipal $ 1,758 $ — $ 1,758 Securities—Available-for-Sale: Agency MBS 1 $ 25,325 $ — $ 25,325 Non-Agency MBS 2 — 186,814 186,814 Municipal 3,248 — 3,248 Asset-backed securities and structured notes 47,131 — 47,131 Total—Securities—Available-for-Sale $ 75,704 $ 186,814 $ 262,518 Loans held for sale $ 4,973 $ — $ 4,973 Mortgage servicing rights $ — $ 25,213 $ 25,213 Other assets—Derivative Instruments $ — $ 464 $ 464 LIABILITIES: Accrued expense and other liabilities—Derivative instruments $ — $ — $ — 1 Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac. 2 Private sponsors of securities collateralized primarily by first - lien mortgage loans on commercial properties or by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option ARM mortgages. |
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: Year Ended June 30, 2023 (Dollars in thousands) Securities- Mortgage Servicing Rights 1 Derivative Instruments, net Total Assets: Opening Balance $ 186,814 $ 25,213 $ 464 $ 212,491 Transfers into Level 3 — — — — Transfers out of Level 3 — — (464) (464) Total gains or losses for the period: Included in earnings—Mortgage banking income — (634) — (634) Included in other comprehensive income (4,464) — — (4,464) Purchases, retentions, issues, sales and settlements: Purchases/Retentions 30,000 864 — 30,864 Settlements (7,345) — — (7,345) Closing balance $ 205,005 $ 25,443 $ — $ 230,448 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ (634) $ — $ (634) 1 Earnings from mortgage servicing rights were attributable to: Time and payoffs, representing a decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period of $0.9 million, and an increase in MSR value resulting from market-driven changes in interest rates of $0.3 million. Additions to mortgage servicing rights were retained upon sale of loans held for sale. Year Ended June 30, 2022 (Dollars in thousands) Securities- Mortgage Servicing Rights 1 Derivative Instruments, net Total Assets: Opening Balance $ 67,615 $ 17,911 $ 2,205 $ 87,731 Transfers into Level 3 — — — — Transfers out of Level 3 — — — — Total gains or losses for the period: Included in earnings—Mortgage banking income — 2,278 (1,741) 537 Included in other comprehensive income (3,244) — — (3,244) Purchases, retentions, issues, sales and settlements: Purchases/Retentions 131,446 5,024 — 136,470 Settlements (9,003) — — (9,003) Closing balance $ 186,814 $ 25,213 $ 464 $ 212,491 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period $ — $ 2,278 $ (1,741) $ 537 1 Earnings from mortgage servicing rights were attributable to: Time and payoffs, representing a decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period of $4.1 million, and an increase in MSR value resulting from market-driven changes in interest rates of $6.4 million. Additions to mortgage servicing rights were retained upon sale of loans held for sale. |
Schedule of Quantitative Information About Level 3 Fair Value Measurements | The table below summarizes the quantitative information about Level 3 fair value measurements as of the dates indicated: June 30, 2023 (Dollars in thousands) Fair Value Valuation Technique Unobservable Inputs Range and Weighted Average Securities – Non-agency MBS $ 205,005 Discounted Cash Flow Projected Constant Prepayment Rate, 0.0 to 59.7% (32.0%) 0.0 to 7.5% (2.4%) 0.0 to 68.7% (28.5%) 2.6 to 7.5% (2.7%) Mortgage Servicing Rights $ 25,443 Discounted Cash Flow Projected Constant Prepayment Rate, 6.1 to 40.1% (12.6%) 1.8 to 10.9 (7.7) 9.5 to 11.5% (9.6%) June 30, 2022 (Dollars in thousands) Fair Value Valuation Technique Unobservable Inputs Range and Weighted Average Securities – Non-agency MBS $ 186,814 Discounted Cash Flow Projected Constant Prepayment Rate, 0.0 to 30.0% (21.4%) 0.0 to 7.9% (2.2%) 0.0 to 68.4% (26.7%) 2.7 to 9.3% (2.8%) Mortgage Servicing Rights $ 25,213 Discounted Cash Flow Projected Constant Prepayment Rate, 7.9 to 56.3% (11.0%) 1.2 to 9.9 (8.4) 9.5 to 11.5% (9.5%) Derivative Instruments $ 464 Sales Comparison Approach Projected Sales Profit of Underlying Loans (3.1) to 0.8% (-1.2%) The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at the periods indicated: June 30, 2023 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) 1 Other real estate owned and foreclosed assets: Single family real estate $ 5,574 Sales comparison approach Adjustment for differences between the comparable sales 62.1 to 93.6% (62.1%) Multifamily real estate $ 1,392 Sales comparison approach and income approach Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, capitalization rate 49.8 to 54.5% (49.8%) Autos $ 1,133 Sales comparison approach Adjustment for differences between the comparable sales -5.5 to 9.8% (0.5%) June 30, 2022 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) 1 Other real estate owned and foreclosed assets: Autos $ 798 Sales comparison approach Adjustment for differences between the comparable sales -17.2 to 4.6% (-7.5%) 1 For other real estate owned and foreclosed assets, the ranges shown may vary positively or negatively based on the comparable sales reported in the current appraisal. In certain instances, the range can be significant due to small sample sizes and in some cases the property being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted. |
Schedule of Fair Value Assets Measured for Impairment on Nonrecurring Basis | The table below summarizes the fair value of assets measured for impairment on a non-recurring basis: June 30, 2023 (Dollars in thousands) Quoted Prices in Significant Other Significant Balance Other real estate owned and foreclosed assets: Single family real estate $ — $ — $ 5,574 $ 5,574 Multifamily real estate — — 1,392 1,392 Autos — — 1,133 1,133 Total $ — $ — $ 8,099 $ 8,099 June 30, 2022 (Dollars in thousands) Quoted Prices in Significant Other Significant Balance Other real estate owned and foreclosed assets: Autos $ — $ — $ 798 $ 798 Total $ — $ — $ 798 $ 798 |
Schedule of Aggregate Fair Value, Contractual Balance, and Unrealized Gain of Loans Held For Sale | The aggregate fair value, contractual balance (including accrued interest), and unrealized gain for loans held for sale was as follows: At June 30, (Dollars in thousands) 2023 2022 2021 Aggregate fair value $ 23,203 $ 4,973 $ 29,768 Contractual balance 22,844 4,881 28,940 Unrealized gain $ 359 $ 92 $ 828 The total interest income and amount of gains and losses from changes in fair value included in earnings for the period indicated below for loans held for sale were: At June 30, (Dollars in thousands) 2023 2022 2021 Interest income $ 415 $ 739 $ 1,411 Change in fair value 57 (2,474) (6,680) Total $ 472 $ (1,735) $ (5,269) |
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments at Year-end | The carrying amount and estimated fair values of financial instruments at year-end were as follows: June 30, 2023 (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 2,382,086 $ 2,382,086 $ — $ — $ 2,382,086 Securities— trading 758 — 758 — 758 Securities—available-for-sale 232,350 — 27,345 205,005 232,350 Stock of regulatory agencies 21,510 — 21,510 — 21,510 Loans held for sale, at fair value 23,203 — 23,203 — 23,203 Loans held for sale, at lower of cost or fair value 776 — — 780 780 Loans held for investment—net 16,456,728 — — 16,417,183 16,417,183 Securities borrowed 134,339 — — 143,461 143,461 Customer, broker-dealer and clearing receivables 374,074 — — 386,082 386,082 Mortgage servicing rights 25,443 — — 25,443 25,443 Other assets - derivative instruments 919 — 919 — 919 Financial liabilities: Total deposits 17,123,108 — 17,064,084 — 17,064,084 Advances from the Federal Home Loan Bank 90,000 — 83,192 — 83,192 Borrowings, subordinated notes and debentures 361,779 — 327,564 — 327,564 Securities loaned 159,832 — — 159,416 159,416 Customer, broker-dealer and clearing payables 445,477 — — 445,447 445,447 Accrued expense and other liabilities - derivative instruments 691 — 691 — 691 June 30, 2022 (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Total Fair Value Financial assets: Cash and cash equivalents $ 1,574,699 $ 1,574,699 $ — $ — $ 1,574,699 Securities—trading 1,758 — 1,758 — 1,758 Securities—available-for-sale 262,518 — 75,704 186,814 262,518 Stock of regulatory agencies 1 20,368 — 20,368 — 20,368 Loans held for sale, at fair value 4,973 — 4,973 — 4,973 Loans held for sale, at lower of cost or fair value 10,938 — — 10,985 10,985 Loans and leases held for investment—net 14,091,061 — — 14,015,157 14,015,157 Securities borrowed 338,980 — — 329,963 329,963 Customer, broker-dealer and clearing receivables 417,417 — — 414,383 414,383 Mortgage servicing rights 25,213 — — 25,213 25,213 Other assets - derivative instruments 464 — — 464 464 Financial liabilities: Total deposits 13,946,422 — 12,812,512 — 12,812,512 Advances from the Federal Home Loan Bank 117,500 — 117,500 — 117,500 Borrowings, subordinated notes and debentures 445,244 — 416,947 — 416,947 Securities loaned 474,400 — — 473,831 473,831 Customer, broker-dealer and clearing payables 511,654 — — 471,859 471,859 1 The prior period has been revised to conform to the current period presentation. |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost, Carrying Amount and Fair Value of Available-for-sale Securities | The amortized cost, carrying amount and fair value for the securities available-for-sale for the following periods were: June 30, 2023 Trading Available-for-sale (Dollars in thousands) Fair Amortized Unrealized Unrealized Fair Mortgage-backed securities (MBS): Agencies 1 $ — $ 27,024 $ — $ (3,077) $ 23,947 Non-agency 2 — 210,271 711 (5,977) 205,005 Total mortgage-backed securities — 237,295 711 (9,054) 228,952 Non-MBS: Municipal 758 3,656 — (258) 3,398 Asset-backed securities and structured notes — — — — — Total Non-MBS 758 3,656 — (258) 3,398 Total debt securities $ 758 $ 240,951 $ 711 $ (9,312) $ 232,350 June 30, 2022 Trading Available-for-sale (Dollars in thousands) Fair Amortized Unrealized Unrealized Fair Mortgage-backed securities (MBS): Agencies 1 $ — $ 27,722 $ 9 $ (2,406) $ 25,325 Non-agency 2 — 187,616 1,832 (2,634) 186,814 Total mortgage-backed securities — 215,338 1,841 (5,040) 212,139 Non-MBS: Municipal 1,758 3,529 — (281) 3,248 Asset-backed securities and structured notes — 47,000 131 — 47,131 Total Non-MBS 1,758 50,529 131 (281) 50,379 Total debt securities $ 1,758 $ 265,867 $ 1,972 $ (5,321) $ 262,518 1 Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac. 2 Private sponsors of securities collateralized primarily by first-lien mortgage loans on commercial properties or by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by prime, Alt-A or pay-option ARM mortgages. The following table sets forth the expected maturity distribution of our mortgage-backed securities (“MBS”), which is based on assumed prepayment rates, and the contractual maturity distribution of our Non-MBS securities: At June 30, 2023 (Dollars in thousands) Total Amount Due Within One Year Due after One but within Five Years Due after Five but within Ten Years Due After Ten Years MBS: Agency 1 $ 27,024 $ 6,276 $ 13,110 $ 5,522 $ 2,116 Non-Agency 2 $ 210,271 $ 92,361 $ 115,533 $ 1,729 $ 648 Total MBS $ 237,295 $ 98,637 $ 128,643 $ 7,251 $ 2,764 Non-MBS Municipal $ 3,656 $ — $ — $ — $ 3,656 Total Non-MBS $ 3,656 $ — $ — $ — $ 3,656 Available-for-sale—Amortized Cost $ 240,951 $ 98,637 $ 128,643 $ 7,251 $ 6,420 Available-for-sale—Fair value $ 232,350 $ 95,913 $ 123,730 $ 6,576 $ 6,131 1 Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac. 2 Private sponsors of securities collateralized primarily by pools of 1-4 family residential, Alt-A or pay-option ARM mortgages and commercial mortgages. |
Schedule of Securities in a Continuous Unrealized Loss Position | The securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows: June 30, 2023 Available-for-sale securities in loss position for Less Than 12 More Than 12 Total (Dollars in thousands) Fair Gross Unrealized Losses Fair Gross Unrealized Losses Fair Gross Unrealized Losses MBS: Agencies $ 3,182 $ (16) $ 20,642 $ (3,061) $ 23,824 $ (3,077) Non-agency 107,982 (1,808) 95,385 (4,169) 203,367 (5,977) Total MBS securities 111,164 (1,824) 116,027 (7,230) 227,191 (9,054) Non-MBS: Municipal — — 3,398 (258) 3,398 (258) Total Non-MBS — — 3,398 (258) 3,398 (258) Total debt securities $ 111,164 $ (1,824) $ 119,425 $ (7,488) $ 230,589 $ (9,312) June 30, 2022 Available-for-sale securities in loss position for Less Than 12 More Than 12 Total (Dollars in thousands) Fair Gross Unrealized Losses Fair Gross Unrealized Losses Fair Gross Unrealized Losses MBS: Agencies $ 16,446 $ (1,338) $ 8,097 $ (1,068) $ 24,543 $ (2,406) Non-agency 92,796 (2,204) 4,751 (430) 97,547 (2,634) Total MBS securities 109,242 (3,542) 12,848 (1,498) 122,090 (5,040) Non-MBS: Municipal 3,248 (281) — — 3,248 (281) Total Non-MBS 3,248 (281) — — 3,248 (281) Total debt securities $ 112,490 $ (3,823) $ 12,848 $ (1,498) $ 125,338 $ (5,321) |
Schedule of Unrealized Gain (Loss) on Securities in Accumulated Other Comprehensive Loss | The components of the Company’s accumulated other comprehensive income (loss) are as follows: At June 30, (Dollars in thousands) 2023 2022 Available-for-sale debt securities—net unrealized gains (losses) $ (8,601) $ (3,349) Available-for-sale debt securities—non-credit related (845) (845) Subtotal (9,446) (4,194) Tax benefit (expense) 2,836 1,261 Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss) $ (6,610) $ (2,933) |
LOANS & ALLOWANCE FOR CREDIT _2
LOANS & ALLOWANCE FOR CREDIT LOSSES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Composition of the Loan Portfolio | The following table sets forth the composition of the loan portfolio as of the dates indicated: At June 30, (Dollars in thousands) 2023 2022 Single Family - Mortgage & Warehouse $ 4,173,833 $ 3,988,462 Multifamily and Commercial Mortgage 3,082,225 2,877,680 Commercial Real Estate 6,199,818 4,781,044 Commercial & Industrial - Non-RE 2,639,650 2,028,128 Auto & Consumer 546,264 567,228 Other 10,236 11,134 Total gross loans 16,652,026 14,253,676 Allowance for credit losses - loans (166,680) (148,617) Unaccreted premiums (discounts) and loan fees (28,618) (13,998) Total net loans $ 16,456,728 $ 14,091,061 |
Schedule of Related Party Loans Collateralized | 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, which is summarized in the following table: At or for the Year Ended June 30, (Dollars in thousands) 2023 2022 Outstanding loan balance $ 29,181 $ 25,573 Loans originated and funded $ 5,052 $ — Principal repayments $ 1,444 $ 2,980 |
Schedule of Allowance for Credit Losses on Financing Receivables | The following tables summarize activity in the allowance for credit losses - loans by portfolio classes for the periods indicated: June 30, 2023 (Dollars in thousands) Single Family - Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Balance at July 1, 2022 $ 19,670 $ 14,655 $ 69,339 $ 30,808 $ 14,114 $ 31 $ 148,617 Provision expense (benefit) for credit losses - loans (2,302) 2,193 3,416 15,521 5,938 (16) 24,750 Charge-offs (314) — — — (9,142) — (9,456) Recoveries 449 — — 18 2,302 — 2,769 Balance at June 30, 2023 $ 17,503 $ 16,848 $ 72,755 $ 46,347 $ 13,212 $ 15 $ 166,680 June 30, 2022 (Dollars in thousands) Single Family - Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Balance at July 1, 2021 $ 26,604 $ 13,146 $ 57,928 $ 28,460 $ 6,519 $ 301 $ 132,958 Provision expense (benefit) for credit losses - loans (7,009) 1,332 11,411 2,544 10,492 (270) 18,500 Charge-offs (82) — — (322) (4,024) — (4,428) Recoveries 157 177 — 126 1,127 — 1,587 Balance at June 30, 2022 $ 19,670 $ 14,655 $ 69,339 $ 30,808 $ 14,114 $ 31 $ 148,617 June 30, 2021 (Dollars in thousands) Single Family - Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Balance at July 1, 2020 $ 25,899 $ 4,719 $ 21,052 $ 9,954 $ 9,462 $ 4,721 $ 75,807 Effect of adoption of ASC 326 6,318 7,408 25,893 7,042 610 29 47,300 Provision expense (benefit) for credit losses - loans (3,242) 1,196 11,238 14,251 (1,354) 1,661 23,750 Charge-offs (2,502) (177) (255) (2,833) (3,517) (7,274) (16,558) Recoveries 131 — — 46 1,318 1,164 2,659 Balance at June 30, 2021 $ 26,604 $ 13,146 $ 57,928 $ 28,460 $ 6,519 $ 301 $ 132,958 Year Ended June 30, (Dollars in thousands) 2023 2022 2021 BALANCE—beginning of year $ 10,973 $ 5,723 $ 323 Effect of adoption of ASC 326 — — 5,700 Provision (Benefit) (500) 5,250 (300) BALANCE—end of year $ 10,473 $ 10,973 $ 5,723 |
Schedule of Real Estate Loans, LTV Ratio | The following table presents LTVs for the Company’s real estate loans outstanding as of June 30, 2023: Total Real Estate Loans Single Family - Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Weighted-Average LTV 48.9 % 57.4 % 53.8 % 40.8 % Median LTV 53.0 % 55.0 % 50.0 % 38.0 % |
Schedule of Loans and Leases Performing and Nonaccrual | The following tables provide the outstanding unpaid balance of loans that are performing and nonaccrual by portfolio class as of the dates indicated: June 30, 2023 (Dollars in thousands) Single Family - Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Performing $ 4,143,119 $ 3,047,122 $ 6,184,966 $ 2,636,661 $ 544,807 $ 8,191 $ 16,564,866 Nonaccrual 30,714 35,103 14,852 2,989 1,457 2,045 87,160 Total $ 4,173,833 $ 3,082,225 $ 6,199,818 $ 2,639,650 $ 546,264 $ 10,236 $ 16,652,026 Nonaccrual loans to total loans 0.52 % June 30, 2022 (Dollars in thousands) Single Family - Mortgage & Warehouse Multifamily and Commercial Mortgage Commercial Real Estate Commercial & Industrial - Non-RE Auto & Consumer Other Total Performing $ 3,922,038 $ 2,844,270 $ 4,766,192 $ 2,025,139 $ 566,789 $ 11,054 $ 14,135,482 Nonaccrual 66,424 33,410 14,852 2,989 439 80 118,194 Total $ 3,988,462 $ 2,877,680 $ 4,781,044 $ 2,028,128 $ 567,228 $ 11,134 $ 14,253,676 Nonaccrual loans to total loans 0.83 % |
Schedule of Composition of Loan and Lease Portfolio by Credit Quality Indicators | The amortized cost basis by fiscal year of origination and credit quality indicator of the Company’s loan as of June 30, 2023 was as follows: Loans Held for Investment Origination Year Revolving Loans Total (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Single Family-Mortgage & Warehouse Pass $ 730,498 $ 1,346,804 $ 522,873 $ 324,458 $ 255,547 $ 639,401 $ 243,175 $ 4,062,756 Special Mention — 7,280 7,026 8,303 12,942 18,244 6,614 60,409 Substandard — 5,188 4,686 14,384 2,024 24,386 — 50,668 Doubtful — — — — — — — — Total 730,498 1,359,272 534,585 347,145 270,513 682,031 249,789 4,173,833 Multifamily and Commercial Mortgage Pass 558,787 975,186 498,744 314,383 224,592 404,222 — 2,975,914 Special Mention — 9,691 4,636 1,360 7,705 — — 23,392 Substandard — 3,145 5,686 38,857 6,181 29,050 — 82,919 Doubtful — — — — — — — — Total 558,787 988,022 509,066 354,600 238,478 433,272 — 3,082,225 Commercial Real Estate Pass 1,867,476 2,323,095 631,500 87,059 117,928 — 960,024 5,987,082 Special Mention 29,000 43,427 — 8,457 800 15,062 — 96,746 Substandard — 29,200 37,951 18,500 15,487 14,852 — 115,990 Doubtful — — — — — — — — Total 1,896,476 2,395,722 669,451 114,016 134,215 29,914 960,024 6,199,818 Commercial & Industrial - Non-RE Pass 488,120 358,214 29,777 14,794 2,098 — 1,707,619 2,600,622 Special Mention — 8,221 — 11,413 — — 600 20,234 Substandard — 17,762 1,032 — — — — 18,794 Doubtful — — — — — — — — Total 488,120 384,197 30,809 26,207 2,098 — 1,708,219 2,639,650 Auto & Consumer Pass 161,831 256,154 70,223 24,906 19,897 9,929 — 542,940 Special Mention 423 632 453 60 14 6 — 1,588 Substandard 350 785 233 133 162 73 — 1,736 Doubtful — — — — — — — — Total 162,604 257,571 70,909 25,099 20,073 10,008 — 546,264 Other Pass 5,721 — 1,306 — — 1,164 — 8,191 Special Mention — — — — — — — — Substandard — 2,000 45 — — — — 2,045 Doubtful — — — — — — — — Total 5,721 2,000 1,351 — — 1,164 — 10,236 Total Pass 3,812,433 5,259,453 1,754,423 765,600 620,062 1,054,716 2,910,818 16,177,505 Special Mention 29,423 69,251 12,115 29,593 21,461 33,312 7,214 202,369 Substandard 350 58,080 49,633 71,874 23,854 68,361 — 272,152 Doubtful — — — — — — — — Total $ 3,842,206 $ 5,386,784 $ 1,816,171 $ 867,067 $ 665,377 $ 1,156,389 $ 2,918,032 $ 16,652,026 As a % of total gross loans 23.07% 32.35% 10.91% 5.21% 4.00% 6.94% 17.52% 100.0% The amortized cost basis by fiscal year of origination and credit quality indicator of the Company’s loan as of June 30, 2022 was as follows: Loans Held for Investment Origination Year Revolving Loans Total (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Single Family-Mortgage & Warehouse Pass $ 1,484,027 $ 600,054 $ 402,712 $ 303,999 $ 279,248 $ 548,703 $ 241,925 $ 3,860,668 Special Mention — — 4,790 2,505 4,125 10,971 38,637 61,028 Substandard — 2,288 3,928 18,407 5,955 36,188 — 66,766 Doubtful — — — — — — — — Total 1,484,027 602,342 411,430 324,911 289,328 595,862 280,562 3,988,462 Multifamily and Commercial Mortgage Pass 999,819 569,486 429,247 259,161 219,548 316,013 — 2,793,274 Special Mention 1,200 — 534 539 — 968 — 3,241 Substandard — 5,772 34,343 9,613 7,308 24,129 — 81,165 Doubtful — — — — — — — — Total 1,001,019 575,258 464,124 269,313 226,856 341,110 — 2,877,680 Commercial Real Estate Pass 2,482,366 990,887 358,422 186,800 28,758 — 602,412 4,649,645 Special Mention — 32,351 12,138 16,487 15,000 — — 75,976 Substandard — — 12,575 18,043 23,507 — 1,298 55,423 Doubtful — — — — — — — — Total 2,482,366 1,023,238 383,135 221,330 67,265 — 603,710 4,781,044 Commercial & Industrial - Non-RE Pass 435,228 66,226 25,629 61,932 9,268 — 1,388,435 1,986,718 Special Mention 13 — — 186 710 — — 909 Substandard 2,988 28,359 9,154 — — — — 40,501 Doubtful — — — — — — — — Total 438,229 94,585 34,783 62,118 9,978 — 1,388,435 2,028,128 Auto & Consumer Pass 352,468 107,882 43,377 37,008 16,147 8,891 — 565,773 Special Mention 204 188 24 110 — 1 — 527 Substandard 157 311 224 205 25 6 — 928 Doubtful — — — — — — — — Total 352,829 108,381 43,625 37,323 16,172 8,898 — 567,228 Other Pass 3,057 6,185 — — 1,091 721 — 11,054 Special Mention — — — — — — — — Substandard — — 46 — — 34 — 80 Doubtful — — — — — — — — Total 3,057 6,185 46 — 1,091 755 — 11,134 Total Pass 5,756,965 2,340,720 1,259,387 848,900 554,060 874,328 2,232,772 13,867,132 Special Mention 1,417 32,539 17,486 19,827 19,835 11,940 38,637 141,681 Substandard 3,145 36,730 60,270 46,268 36,795 60,357 1,298 244,863 Doubtful — — — — — — — — Total $ 5,761,527 $ 2,409,989 $ 1,337,143 $ 914,995 $ 610,690 $ 946,625 $ 2,272,707 $ 14,253,676 As a % of total gross loans 40.42% 16.91% 9.38% 6.42% 4.28% 6.64% 15.95% 100.0% |
Schedule of Past Due Loan and Leases | The following tables provide the outstanding unpaid balance of loans and leases that are past due 30 days or more by portfolio class as of the dates indicated: June 30, 2023 (Dollars in thousands) Current 30-59 Days 60-89 Days 90+ Days Total Single Family-Mortgage & Warehouse $ 4,102,150 $ 20,832 $ 7,971 $ 42,880 $ 4,173,833 Multifamily and Commercial Mortgage 3,048,217 2,705 1,124 30,179 3,082,225 Commercial Real Estate 6,173,716 11,250 — 14,852 6,199,818 Commercial & Industrial - Non-RE 2,639,650 — — — 2,639,650 Auto & Consumer 537,181 6,529 1,707 847 546,264 Other 8,024 68 1 2,143 10,236 Total $ 16,508,938 $ 41,384 $ 10,803 $ 90,901 $ 16,652,026 As a % of gross loans 99.14 % 0.25 % 0.06 % 0.55 % 100.00 % June 30, 2022 (Dollars in thousands) Current 30-59 Days 60-89 Days 90+ Days Total Single Family-Mortgage & Warehouse $ 3,918,491 $ 5,167 $ 1,518 $ 63,286 $ 3,988,462 Multifamily and Commercial Mortgage 2,839,554 9,455 2,115 26,556 2,877,680 Commercial Real Estate 4,766,192 — 14,852 — 4,781,044 Commercial & Industrial - Non-RE 2,028,128 — — — 2,028,128 Auto & Consumer 560,888 4,865 1,009 466 567,228 Other 10,528 413 — 193 11,134 Total $ 14,123,781 $ 19,900 $ 19,494 $ 90,501 $ 14,253,676 As a % of gross loans 99.09 % 0.14 % 0.14 % 0.63 % 100.00 % |
OFFSETTING OF SECURITIES FINA_2
OFFSETTING OF SECURITIES FINANCING AGREEMENTS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Offsetting [Abstract] | |
Schedule of Securities Financing Transactions - Assets | The following table presents information about the offsetting of these instruments and related collateral amounts as of: June 30, 2023 (Dollars in thousands) Gross Assets / Liabilities Amounts Offset Net Balance Sheet Amount Financial Collateral Net Assets / Liabilities Assets: Securities borrowed $ 134,339 $ — $ 134,339 $ 134,339 $ — Liabilities: Securities loaned $ 159,832 $ — $ 159,832 $ 159,832 $ — June 30, 2022 (Dollars in thousands) Gross Assets / Liabilities Amounts Offset Net Balance Sheet Amount Financial Collateral Net Assets / Liabilities Assets: Securities borrowed $ 338,980 $ — $ 338,980 $ 338,980 $ — Liabilities: Securities loaned $ 474,400 $ — $ 474,400 $ 474,400 $ — |
Schedule of Securities Financing Transactions - Liabilities | The following table presents information about the offsetting of these instruments and related collateral amounts as of: June 30, 2023 (Dollars in thousands) Gross Assets / Liabilities Amounts Offset Net Balance Sheet Amount Financial Collateral Net Assets / Liabilities Assets: Securities borrowed $ 134,339 $ — $ 134,339 $ 134,339 $ — Liabilities: Securities loaned $ 159,832 $ — $ 159,832 $ 159,832 $ — June 30, 2022 (Dollars in thousands) Gross Assets / Liabilities Amounts Offset Net Balance Sheet Amount Financial Collateral Net Assets / Liabilities Assets: Securities borrowed $ 338,980 $ — $ 338,980 $ 338,980 $ — Liabilities: Securities loaned $ 474,400 $ — $ 474,400 $ 474,400 $ — |
CUSTOMER, BROKER-DEALER AND C_2
CUSTOMER, BROKER-DEALER AND CLEARING RECEIVABLES AND PAYABLES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Broker-Dealer [Abstract] | |
Schedule of Due to (from) Broker-Dealers and Clearing Organizations | Customer, broker-dealer and clearing receivables and payables consisted of the following: At June 30, (Dollars in thousands) 2023 2022 Receivables: Customers $ 309,308 $ 309,216 Broker-dealer and clearing organizations: Receivable from broker-dealers 57,735 101,960 Securities failed to deliver 7,031 6,241 Total customer, broker-dealer and clearing receivables $ 374,074 $ 417,417 Payables: Customers $ 382,689 $ 486,625 Broker-dealer and clearing organizations: Payable to broker-dealers 58,758 18,601 Securities failed to receive 4,030 6,428 Total customer, broker-dealer and clearing payables $ 445,477 $ 511,654 |
FURNITURE, EQUIPMENT AND SOFT_2
FURNITURE, EQUIPMENT AND SOFTWARE (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | A summary of the cost and accumulated depreciation and amortization for leasehold improvements, furniture, equipment and software is as follows: At June 30, (Dollars in thousands) 2023 2022 Software $ 105,687 $ 78,848 Computer hardware and equipment 26,685 25,665 Furniture and fixtures 10,689 10,608 Leasehold improvements 5,963 5,698 Total $ 149,024 $ 120,819 Less accumulated depreciation and amortization (95,660) (84,610) Furniture, equipment and software—net 1 $ 53,364 $ 36,209 1 Furniture, equipment and software are included in the other assets line on the consolidated balance sheets. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Activity in the Company's Goodwill Balance | The following table summarizes the activity in the Company’s goodwill balance as of the dates indicated: (Dollars in thousands) Total Balance as of June 30, 2021 $ 71,222 Goodwill from acquisitions 1 24,452 Balance as of June 30, 2022 95,674 Goodwill from acquisitions 1,999 Balance as of June 30, 2023 $ 97,673 1 Goodwill acquired in the AAS acquisition is allocated to the Securities Business segment. For additional information on the AAS acquisition, see Note 2 - “Acquisitions.” |
Schedule of Company's Acquired Intangible Assets | The Company’s acquired intangible assets are summarized as follows as of the dates indicated: June 30, 2023 June 30, 2022 (Dollars in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Covenant not to compete $ 1,380 $ 1,149 $ 231 $ 1,060 $ 1,038 $ 22 Customer relationships 50,810 14,598 36,212 46,960 10,654 36,306 Customer deposit intangible 13,545 9,235 4,310 13,545 7,655 5,890 Developed technologies 34,650 21,405 13,245 34,040 15,905 18,135 Trademark 378 — 378 378 — 378 Trade name 700 600 100 580 580 — Total intangible assets $ 101,463 $ 46,987 $ 54,476 $ 96,563 $ 35,832 $ 60,731 |
Schedule of Company's Acquired Intangible Assets | The Company’s acquired intangible assets are summarized as follows as of the dates indicated: June 30, 2023 June 30, 2022 (Dollars in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Covenant not to compete $ 1,380 $ 1,149 $ 231 $ 1,060 $ 1,038 $ 22 Customer relationships 50,810 14,598 36,212 46,960 10,654 36,306 Customer deposit intangible 13,545 9,235 4,310 13,545 7,655 5,890 Developed technologies 34,650 21,405 13,245 34,040 15,905 18,135 Trademark 378 — 378 378 — 378 Trade name 700 600 100 580 580 — Total intangible assets $ 101,463 $ 46,987 $ 54,476 $ 96,563 $ 35,832 $ 60,731 |
Schedule of Estimated Future Amortization Expense of Acquired Intangible Assets | Estimated future amortization expense related to finite-lived intangible assets at June 30, 2023 is as follows: (Dollars in thousands) Amortization Expense For the fiscal year ending June 30, 2024 $ 10,748 2025 6,666 2026 6,331 2027 6,067 2028 5,233 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information | Supplemental information related to the Company’s operating leases is as follows: At June 30, (Dollars in thousands) 2023 2022 Right-of-use assets $ 63,565 $ 69,196 Lease liabilities 69,630 74,878 Weighted-average remaining lease term 6.57 years 7.53 years Weighted-average discount rate 3.00 % 2.79 % |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information related to leases is as follows: For the Year Ended June 30, (Dollars in thousands) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities for operating leases—operating cash flows $ 10,658 $ 9,888 $ 8,875 |
Schedule of Maturities of Operating Lease Liabilities | Maturities of Operating Lease Liabilities. The Company leases office space under operating lease agreements scheduled to expire at various dates. The following table represents maturities of lease liabilities as of June 30, 2023: (Dollars in thousands) Within one year $ 11,581 After one year and within two years 11,807 After two years and within three years 11,504 After three years and within four years 11,595 After four years and within five years 10,304 After five years 20,200 Total lease payments 76,991 Less: amount representing interest (7,361) Total Lease Liability $ 69,630 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Deposits [Abstract] | |
Schedule of Deposits | Deposit accounts are summarized as follows: At June 30, 2023 2022 (Dollars in thousands) Amount Rate 1 Amount Rate 1 Non-interest bearing $ 2,898,150 — % $ 5,033,970 — % Interest bearing: Demand 3,334,615 2.43 % 3,611,889 0.61 % Savings 9,575,781 4.20 % 4,245,555 0.95 % 12,910,396 3.74 % 7,857,444 0.79 % Time deposits: $250 and under 932,436 3.72 % 651,392 1.22 % Greater than $250 382,126 4.36 % 403,616 1.41 % Total time deposits 1,314,562 3.91 % 1,055,008 1.25 % Total interest bearing 2 14,224,958 3.76 % 8,912,452 0.85 % Total deposits $ 17,123,108 3.12 % $ 13,946,422 0.54 % 1 Based on weighted-average stated interest rates at end of period. 2 The total interest-bearing includes brokered deposits of $2,028.5 million and $1,032.7 million as of June 30, 2023 and June 30, 2022, respectively, of which $690.9 million and $250.0 million, respectively, are time deposits classified as $250,000 and under. |
Schedule of Maturities for Total Time Deposits | Scheduled maturities of all time deposits are as follows: (Dollars in thousands) June 30, 2023 Within 12 months $ 1,149,993 13 to 24 months 145,233 25 to 36 months 8,209 37 to 48 months 4,208 49 to 60 months 6,605 Thereafter 314 Total $ 1,314,562 |
ADVANCES FROM THE FEDERAL HOM_2
ADVANCES FROM THE FEDERAL HOME LOAN BANK (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Advance from Federal Home Loan Bank [Abstract] | |
Schedule of Federal Home Loan Bank, Advances, by Maturity | Maturities of fixed-rate advances from FHLB are as follows: At June 30, 2023 2022 (Dollars in thousands) Amount Weighted- Amount Weighted- Within one year $ — — % $ 27,500 2.08 % After one but within two years 30,000 2.82 % — — % After two but within three years — — % 30,000 2.82 % After three but within four years — — % — — % After four but within five years — — % — — % After five years 60,000 2.07 % 60,000 2.07 % Total $ 90,000 2.32 % $ 117,500 2.26 % |
BORROWINGS, SUBORDINATED NOTE_2
BORROWINGS, SUBORDINATED NOTES AND DEBENTURES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings, Subordinated Notes and Debentures | The following table sets forth the composition of the borrowings, subordinated notes and debentures as of the dates indicated: (Dollars in thousands) June 30, 2023 June 30, 2022 Borrowings from other banks $ 27,200 $ 111,500 Subordinated loans 7,400 7,400 Subordinated notes 325,000 325,000 Junior subordinated debentures 5,155 5,155 Total borrowings, subordinated notes and debentures, gross of unamortized issuance costs 364,755 449,055 Less unamortized issuance costs (2,976) (3,811) Total borrowings, subordinated notes and debentures, net of unamortized issuance costs $ 361,779 $ 445,244 |
Schedule of Maturities of Borrowings, Subordinated Notes and Debentures | Maturities of borrowings, subordinated notes and debentures are as follows: (Dollars in thousands) June 30, 2023 Within one year $ 34,600 After one but within two years — After two but within three years — After three but within four years — After four but within five years — After five years 330,155 Total $ 364,755 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Provision for Income Taxes | The provision for income taxes is as follows: At June 30, (Dollars in thousands) 2023 2022 2021 Current: Federal $ 89,839 $ 64,800 $ 61,827 State 54,326 43,843 37,037 144,165 108,643 98,864 Deferred: Federal (13,084) (5,600) (5,562) State (6,502) (3,800) (3,266) (19,586) (9,400) (8,828) Total $ 124,579 $ 99,243 $ 90,036 |
Schedule of Effective Income Tax Rate Reconciliation | The differences between the statutory federal income tax rate and the effective tax rates are summarized as follows: At June 30, 2023 2022 2021 Statutory federal tax rate 21.00 % 21.00 % 21.00 % Increase (decrease) resulting from: State taxes—net of federal tax benefit 9.04 % 9.13 % 8.70 % Tax credits (0.45) % (0.44) % (0.59) % Non-taxable income (0.03) % (0.09) % (0.09) % Excess benefit RSU vesting (0.41) % (1.31) % (0.64) % Other (0.30) % 0.90 % 1.07 % Effective tax rate 28.85 % 29.19 % 29.45 % |
Schedule of Net Deferred Tax Asset | The components of the net deferred tax asset are as follows: At June 30, (Dollars in thousands) 2023 2022 Deferred tax assets: Allowance for credit losses $ 64,655 $ 59,045 Lease liability 22,654 24,626 Accrued compensation 7,564 2,533 Stock-based compensation expense 6,980 5,101 Litigation accrual 5,206 3,116 Non-accrual loan interest income 4,962 2,608 Unrealized net losses on securities 2,730 1,261 Net operating loss carryforward 1,484 1,503 State taxes 1,064 949 Securities impaired 267 270 Total deferred tax assets 117,566 101,012 Deferred tax liabilities: Operating lease right-of-use asset (20,681) (22,757) Depreciation and amortization (7,533) (8,838) Other assets—prepaids (2,342) (2,083) FHLB stock dividend (833) (842) Total deferred tax liabilities (31,389) (34,520) Net deferred tax asset 86,177 66,492 Valuation allowance (277) (230) Net deferred tax asset, net of valuation allowance 1 $ 85,900 $ 66,262 1 Net deferred tax asset, net of valuation allowance, is included in the other assets line on the consolidated balance sheet. |
Schedule of Unrecognized Tax Benefits Roll Forward | The reconciliation of the gross beginning and ending amount of unrecognized tax positions for the periods presented is: (Dollars in thousands) 2023 2022 Balance—beginning of period $ 4,975 $ 4,156 Additions—current year tax positions 1,603 703 Additions—prior year tax positions 518 347 Reductions—prior year tax positions (172) (231) Total liability for unrecognized tax positions—end of period $ 6,924 $ 4,975 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Unrecognized Compensation Cost, Nonvested Awards | At June 30, 2023 unrecognized compensation expense related to non-vested awards aggregated to $43.7 million and is expected to be recognized in future periods as follows: (Dollars in thousands) Stock Award For the fiscal year ending June 30: 2024 $ 22,259 2025 14,512 2026 5,769 2027 928 2028 238 Total $ 43,706 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table presents the status and changes in RSUs for the periods indicated: RSUs Weighted-Average Non-vested balance at June 30, 2022 1,350,763 $ 41.16 Granted 751,517 38.49 Vested (605,724) 37.11 Forfeitures (88,674) 40.22 Non-vested balance at June 30, 2023 1,407,882 $ 41.53 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted EPS | The following table presents the calculation of basic and diluted EPS: At June 30, (Dollars in thousands, except per share data) 2023 2022 2021 Earnings Per Common Share Net income $ 307,165 $ 240,716 $ 215,707 Preferred stock dividends — — (103) Preferred stock redemption — $ — $ (86) Net income attributable to common stock $ 307,165 $ 240,716 $ 215,518 Average common shares issued and outstanding 59,691,541 59,523,626 59,229,495 Earnings per common share $ 5.15 $ 4.04 $ 3.64 Diluted Earnings Per Common Share Net income attributable to common stock $ 307,165 $ 240,716 $ 215,518 Average common shares issued and outstanding 59,691,541 59,523,626 59,229,495 Dilutive effect of average unvested RSUs 875,313 1,087,328 1,290,116 Total dilutive common shares outstanding 60,566,854 60,610,954 60,519,611 Diluted earnings per common share $ 5.07 $ 3.97 $ 3.56 |
MINIMUM REGULATORY CAPITAL RE_2
MINIMUM REGULATORY CAPITAL REQUIREMENTS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Banking Regulation, Minimum Regulatory Capital Requirements [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The Company’s and Bank’s capital amounts, capital ratios and capital requirements under Basel III were as follows: Axos Financial, Inc. Axos Bank “Well Minimum Capital (Dollars in thousands) June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Regulatory Capital: Tier 1 $ 1,796,352 $ 1,522,478 $ 1,866,705 $ 1,615,012 Common equity tier 1 $ 1,796,352 $ 1,522,478 $ 1,866,705 $ 1,615,012 Total capital (to risk-weighted assets) $ 2,269,237 $ 1,965,578 $ 2,007,006 $ 1,725,528 Assets: Average adjusted $ 20,059,002 $ 16,460,684 $ 19,284,378 $ 15,164,797 Total risk-weighted $ 16,414,213 $ 15,443,152 $ 16,054,633 $ 14,366,457 Regulatory Capital Ratios: Tier 1 leverage (to adjusted average assets) 8.96 % 9.25 % 9.68 % 10.65 % 5.00 % 4.00 % Common equity tier 1 capital (to risk-weighted assets) 10.94 % 9.86 % 11.63 % 11.24 % 6.50 % 4.50 % Tier 1 capital (to risk-weighted assets) 10.94 % 9.86 % 11.63 % 11.24 % 8.00 % 6.00 % Total capital (to risk-weighted assets) 13.82 % 12.73 % 12.50 % 12.01 % 10.00 % 8.00 % The net capital position of Axos Clearing was as follows: (Dollars in thousands) June 30, 2023 June 30, 2022 Net capital $ 35,221 $ 38,915 Less: required net capital 5,316 6,250 Excess capital $ 29,905 $ 32,665 Net capital as a percentage of aggregate debit items 13.25 % 12.45 % Net capital in excess of 5% aggregate debit items $ 21,930 $ 23,290 |
PARENT-ONLY CONDENSED FINANCI_2
PARENT-ONLY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheets | The following tables present Axos Financial, Inc. (Parent company only) financial information and should be read in conjunction with the consolidated financial statements of the Company and the other notes to the consolidated financial statements. Adjustments to investment in subsidiaries, stockholders’ equity and equity in undistributed earnings of subsidiaries have been made to eliminate an intercompany transaction between multiple subsidiaries and the Parent company. CONDENSED BALANCE SHEETS 1 At June 30, (Dollars in thousands) 2023 2022 ASSETS Cash and cash equivalents $ 115,948 $ 98,640 Securities 15,050 14,486 Advances to non-bank subsidiaries 8,000 33,000 Other assets 78,932 92,235 Investment in bank subsidiaries 1,884,525 1,634,185 Investment in non-bank subsidiaries 235,223 187,633 Total assets $ 2,337,678 $ 2,060,179 LIABILITIES AND STOCKHOLDERS’ EQUITY Borrowings, subordinated notes and debentures $ 334,579 $ 333,744 Accounts payable and other liabilities 85,940 83,462 Total liabilities 420,519 417,206 Stockholders’ equity 1,917,159 1,642,973 Total liabilities and stockholders’ equity $ 2,337,678 $ 2,060,179 |
Statements of Income | CONDENSED STATEMENTS OF INCOME 1 Year Ended June 30, (Dollars in thousands) 2023 2022 2021 Interest income $ 1,656 $ 1,777 $ 1,262 Interest expense 15,909 11,183 10,891 Net interest (expense) income (14,253) (9,406) (9,629) Net interest (expense) income, after provision for credit losses (14,253) (9,406) (9,629) Non-interest income (loss) 11,448 6,275 217 Non-interest expense and tax benefit 2 15,866 9,741 4,360 Income (loss) before dividends from subsidiary and equity in undistributed income of subsidiaries (18,671) (12,872) (13,772) Dividends from bank subsidiaries 45,000 40,000 45,000 Dividends from non-bank subsidiaries 13,750 — — Equity in undistributed earnings of subsidiaries 267,086 213,588 184,479 Net income $ 307,165 $ 240,716 $ 215,707 Comprehensive income $ 303,488 $ 235,276 $ 219,151 |
Statements of Cash Flows | STATEMENTS OF CASH FLOWS 1 Year Ended June 30, (Dollars in thousands) 2023 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 307,165 $ 240,716 $ 215,707 Adjustments to reconcile net income to net cash used in operating activities: Depreciation, amortization and accretion 12,383 11,160 10,814 Stock-based compensation expense 26,100 21,242 20,685 Equity in undistributed earnings of subsidiaries (267,086) (213,588) (184,479) Decrease (increase) in other assets (3,448) (5,231) (25,835) Increase (decrease) in other liabilities (1,069) (11,564) (14,550) Net cash provided by operating activities 74,045 42,735 22,342 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from principal repayments on loans 25,000 — — Purchases of furniture, equipment, software and intangibles (805) (817) (457) Investment in subsidiaries (25,825) (203,086) (7,200) Net cash used in investing activities (1,630) (203,903) (7,657) CASH FLOWS FROM FINANCING ACTIVITIES: Tax payments related to the settlement of restricted stock units (6,144) (14,481) (10,648) Repurchase of treasury stock (48,963) — (16,757) Net (repayment) proceeds of other borrowings — — (51,000) Payments of debt issuance costs — (2,120) (2,748) Proceeds from issuance of subordinated notes — 150,000 175,000 Redemption of preferred stock, Series A — — (5,150) Cash dividends on preferred stock — — (103) Net cash provided by (used in) financing activities (55,107) 133,399 88,594 NET CHANGE IN CASH AND CASH EQUIVALENTS 17,308 (27,769) 103,279 CASH AND CASH EQUIVALENTS—Beginning of year 98,640 126,409 23,130 CASH AND CASH EQUIVALENTS—End of year $ 115,948 $ 98,640 $ 126,409 1 The prior period has been revised to conform to the current period presentation. 2 Includes tax benefits of $11,988, $11,927, and $8,967 for the years ended June 30, 2023, 2022, and 2021, respectively. |
BANK-OWNED LIFE INSURANCE (Tabl
BANK-OWNED LIFE INSURANCE (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
Schedule of Bank-Owned Life Insurance Activity | The following table summarizes the activity in the Company’s bank-owned life insurance (“BOLI”) as of the dates indicated: (Dollars in thousands) BOLI values Balance as of June 30, 2020 $ 6,380 Additions 50,000 Change in Contract Value 175 Balance as of June 30, 2021 56,555 Additions 100,000 Change in Contract Value 4,220 Balance as of June 30, 2022 160,775 Death Benefits (1,805) Change in Contract Value 4,444 Balance as of June 30, 2023 $ 163,414 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables present the operating results, goodwill, and assets of the segments: Year Ended June 30, 2023 (Dollars in thousands) Banking Business Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 776,294 $ 21,042 $ (14,215) $ 783,121 Provision for credit losses 24,750 — — 24,750 Non-interest income 42,260 141,107 (62,879) 120,488 Non-interest expense 390,911 102,572 (46,368) 447,115 Income (Loss) before income taxes $ 402,893 $ 59,577 $ (30,726) $ 431,744 Year Ended June 30, 2022 (Dollars in thousands) Banking Business Securities Business Corporate/Eliminations Axos Consolidated Net interest income $ 597,833 $ 17,580 $ (8,255) $ 607,158 Provision for credit losses 18,500 — — 18,500 Non-interest income 60,881 64,069 (11,587) 113,363 Non-interest expense 274,079 84,014 3,969 362,062 Income (Loss) before income taxes $ 366,135 $ (2,365) $ (23,811) $ 339,959 As of June 30, 2023 (Dollars in thousands) Banking Business Securities Business Corporate/Eliminations Axos Consolidated Goodwill $ 35,721 $ 61,952 $ — $ 97,673 Total assets $ 19,396,167 $ 899,496 $ 52,806 $ 20,348,469 As of June 30, 2022 (Dollars in thousands) Banking Business Securities Business Corporate/Eliminations Axos Consolidated Goodwill $ 35,721 $ 59,953 $ — $ 95,674 Total assets $ 16,002,714 $ 1,328,558 $ 69,893 $ 17,401,165 |
ORGANIZATIONS AND SUMMARY OF _4
ORGANIZATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - NARRATIVE (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2023 USD ($) segment state | |
Concentration Risk [Line Items] | |
Number of states in which the bank operates | state | 50 |
Number of loan portfolio segments | segment | 6 |
Minimum | |
Concentration Risk [Line Items] | |
Fixed assets, estimated useful lives (in years) | 3 years |
Minimum | Single Family - Mortgage & Warehouse | |
Concentration Risk [Line Items] | |
Total | $ 500 |
Maximum | |
Concentration Risk [Line Items] | |
Fixed assets, estimated useful lives (in years) | 7 years |
Maximum | Single Family - Mortgage & Warehouse | |
Concentration Risk [Line Items] | |
Total | $ 50,000 |
Single Family Mortgage Secured | Minimum | Single Family - Mortgage & Warehouse | |
Concentration Risk [Line Items] | |
Maturity term (in years and in months) | 15 years |
Single Family Mortgage Secured | Maximum | Single Family - Mortgage & Warehouse | |
Concentration Risk [Line Items] | |
Maturity term (in years and in months) | 30 years |
Auto | Minimum | Auto & Consumer | |
Concentration Risk [Line Items] | |
Maturity term (in years and in months) | 2 years |
Auto | Maximum | Auto & Consumer | |
Concentration Risk [Line Items] | |
Maturity term (in years and in months) | 8 years |
Consumer Unsecured Lending | Minimum | Auto & Consumer | |
Concentration Risk [Line Items] | |
Maturity term (in years and in months) | 36 months |
Total | $ 7 |
Consumer Unsecured Lending | Maximum | Auto & Consumer | |
Concentration Risk [Line Items] | |
Maturity term (in years and in months) | 72 months |
Total | $ 50 |
ORGANIZATIONS AND SUMMARY OF _5
ORGANIZATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SCHEDULE OF NON-INTEREST INCOME, SEGREGATED BY REVENUE STREAM (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Non-interest income (in-scope ASC 606) | $ 65,261 | $ 59,434 | $ 31,334 |
Non-interest income (out-of-scope ASC 606) | 55,227 | 53,929 | 73,927 |
Total non-interest income | 120,488 | 113,363 | 105,261 |
Advisory fee income | |||
Disaggregation of Revenue [Line Items] | |||
Non-interest income (in-scope ASC 606) | 28,324 | 28,309 | 0 |
Broker-dealer clearing fees | |||
Disaggregation of Revenue [Line Items] | |||
Non-interest income (in-scope ASC 606) | 21,903 | 19,754 | 22,156 |
Deposit service fees | |||
Disaggregation of Revenue [Line Items] | |||
Non-interest income (in-scope ASC 606) | 4,517 | 4,508 | 4,173 |
Card fees | |||
Disaggregation of Revenue [Line Items] | |||
Non-interest income (in-scope ASC 606) | 4,410 | 3,764 | 3,625 |
Bankruptcy trustee and fiduciary service fees | |||
Disaggregation of Revenue [Line Items] | |||
Non-interest income (in-scope ASC 606) | $ 6,107 | $ 3,099 | $ 1,380 |
ORGANIZATIONS AND SUMMARY OF _6
ORGANIZATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SCHEDULE OF CASH AND CASH EQUIVALENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Accounting Policies [Abstract] | ||
Non-interest-earning cash and cash equivalents | $ 92,645 | $ 35,467 |
Interest-earning cash and cash equivalents | 2,289,441 | 1,539,232 |
Total cash, cash equivalents, cash segregated | $ 2,382,086 | $ 1,574,699 |
ACQUISITIONS - NARRATIVE (Detai
ACQUISITIONS - NARRATIVE (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | |||
Dec. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2023 | Aug. 02, 2021 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 95,674 | $ 97,673 | $ 71,222 | ||
E*TRADE Advisor Services | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | $ 54,800 | ||||
Revenue since date of acquisition | 30,200 | ||||
Acquisition-related costs | $ 40 | ||||
Tangible assets acquired | $ 14,200 | ||||
Right-of-use lease asset | 7,800 | ||||
Liabilities assumed | 10,900 | ||||
Lease liabilty | 7,800 | ||||
Fair Value | 27,060 | ||||
Goodwill | $ 24,400 |
ACQUISITIONS - FAIR VALUE OF AS
ACQUISITIONS - FAIR VALUE OF ASSETS ACQUIRED (Details) - E*TRADE Advisor Services $ in Thousands | Aug. 02, 2021 USD ($) |
Business Acquisition [Line Items] | |
Fair Value | $ 27,060 |
Trade Name | |
Business Acquisition [Line Items] | |
Fair Value | $ 290 |
Weighted-Average Useful Lives (Years) | 1 month 28 days |
Proprietary Technology | |
Business Acquisition [Line Items] | |
Fair Value | $ 10,990 |
Weighted-Average Useful Lives (Years) | 7 years |
Customer Relationships | |
Business Acquisition [Line Items] | |
Fair Value | $ 15,650 |
Weighted-Average Useful Lives (Years) | 14 years |
Non-Compete Agreements | |
Business Acquisition [Line Items] | |
Fair Value | $ 130 |
Weighted-Average Useful Lives (Years) | 1 year |
ACQUISITIONS - UNAUDITED PRO FO
ACQUISITIONS - UNAUDITED PRO FORMA BASIS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
E*TRADE Advisor Services | ||
Business Acquisition [Line Items] | ||
Non-interest income | $ 32,949 | $ 30,395 |
FAIR VALUE - NARRATIVE (Details
FAIR VALUE - NARRATIVE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | $ 8,099 | $ 798 |
Securities- Available-for- Sale: Non- Agency MBS | Minimum | Discount Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, measurement input | 0.0261 | |
Securities- Available-for- Sale: Non- Agency MBS | Maximum | Discount Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, measurement input | 0.0750 | |
Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned, valuation allowance | $ 1,700 | 100 |
Other real estate owned | Carrying Amount | Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 8,100 | 800 |
Significant Unobservable Inputs (Level 3) | Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | $ 8,099 | $ 798 |
Significant Unobservable Inputs (Level 3) | Securities- Available-for- Sale: Non- Agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unemployment rate | 3.60% | |
Significant Unobservable Inputs (Level 3) | Securities- Available-for- Sale: Non- Agency MBS | Minimum | Existing credit enhancement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, measurement input | 0 | |
Significant Unobservable Inputs (Level 3) | Securities- Available-for- Sale: Non- Agency MBS | Maximum | Existing credit enhancement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, measurement input | 0.939 | |
Significant Unobservable Inputs (Level 3) | Securities- Available-for- Sale: Non- Agency MBS | Weighted Average | Existing credit enhancement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, measurement input | 0.209 |
FAIR VALUE - ASSETS AND LIABILI
FAIR VALUE - ASSETS AND LIABILITIES MEASURED ON RECURRING BASIS (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
ASSETS: | |||
Trading | $ 758 | $ 1,758 | |
Available-for-sale | 232,350 | 262,518 | |
Loans held for sale, carried at fair value | $ 23,203 | $ 4,973 | $ 29,768 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |
LIABILITIES: | |||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accounts payable and other liabilities | Accounts payable and other liabilities | |
Municipal | |||
ASSETS: | |||
Trading | $ 758 | $ 1,758 | |
Available-for-sale | 3,398 | 3,248 | |
Agency MBS | |||
ASSETS: | |||
Trading | 0 | 0 | |
Available-for-sale | 23,947 | 25,325 | |
Securities- Available-for- Sale: Non- Agency MBS | |||
ASSETS: | |||
Trading | 0 | 0 | |
Available-for-sale | 205,005 | 186,814 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
ASSETS: | |||
Trading | 0 | 0 | |
Available-for-sale | 0 | 0 | |
Loans held for sale, carried at fair value | 0 | 0 | |
Mortgage servicing rights | 0 | 0 | |
Other assets—Derivative instruments | 0 | 0 | |
LIABILITIES: | |||
Accrued expense and other liabilities—Derivative instruments | 0 | ||
Significant Other Observable Inputs (Level 2) | |||
ASSETS: | |||
Trading | 758 | 1,758 | |
Available-for-sale | 27,345 | 75,704 | |
Loans held for sale, carried at fair value | 23,203 | 4,973 | |
Mortgage servicing rights | 0 | 0 | |
Other assets—Derivative instruments | 919 | 0 | |
LIABILITIES: | |||
Accrued expense and other liabilities—Derivative instruments | 691 | ||
Significant Unobservable Inputs (Level 3) | |||
ASSETS: | |||
Trading | 0 | 0 | |
Available-for-sale | 205,005 | 186,814 | |
Loans held for sale, carried at fair value | 0 | 0 | |
Mortgage servicing rights | 25,443 | 25,213 | |
Other assets—Derivative instruments | 0 | 464 | |
LIABILITIES: | |||
Accrued expense and other liabilities—Derivative instruments | 0 | ||
Fair Value, Measurements, Recurring | |||
ASSETS: | |||
Available-for-sale | 232,350 | 262,518 | |
Loans held for sale, carried at fair value | 23,203 | 4,973 | |
Mortgage servicing rights | 25,443 | 25,213 | |
Other assets—Derivative instruments | 919 | 464 | |
LIABILITIES: | |||
Accrued expense and other liabilities—Derivative instruments | 691 | 0 | |
Fair Value, Measurements, Recurring | Municipal | |||
ASSETS: | |||
Trading | 758 | 1,758 | |
Available-for-sale | 3,398 | 3,248 | |
Fair Value, Measurements, Recurring | Agency MBS | |||
ASSETS: | |||
Available-for-sale | 23,947 | 25,325 | |
Fair Value, Measurements, Recurring | Securities- Available-for- Sale: Non- Agency MBS | |||
ASSETS: | |||
Available-for-sale | 205,005 | 186,814 | |
Fair Value, Measurements, Recurring | Asset-backed securities and structured notes | |||
ASSETS: | |||
Available-for-sale | 0 | 47,131 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
ASSETS: | |||
Available-for-sale | 27,345 | 75,704 | |
Loans held for sale, carried at fair value | 23,203 | 4,973 | |
Mortgage servicing rights | 0 | 0 | |
Other assets—Derivative instruments | 919 | 0 | |
LIABILITIES: | |||
Accrued expense and other liabilities—Derivative instruments | 691 | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Municipal | |||
ASSETS: | |||
Trading | 758 | 1,758 | |
Available-for-sale | 3,398 | 3,248 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Agency MBS | |||
ASSETS: | |||
Available-for-sale | 23,947 | 25,325 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Securities- Available-for- Sale: Non- Agency MBS | |||
ASSETS: | |||
Available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Asset-backed securities and structured notes | |||
ASSETS: | |||
Available-for-sale | 0 | 47,131 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
ASSETS: | |||
Available-for-sale | 205,005 | 186,814 | |
Loans held for sale, carried at fair value | 0 | 0 | |
Mortgage servicing rights | 25,443 | 25,213 | |
Other assets—Derivative instruments | 0 | 464 | |
LIABILITIES: | |||
Accrued expense and other liabilities—Derivative instruments | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Municipal | |||
ASSETS: | |||
Trading | 0 | 0 | |
Available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Agency MBS | |||
ASSETS: | |||
Available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Securities- Available-for- Sale: Non- Agency MBS | |||
ASSETS: | |||
Available-for-sale | 205,005 | 186,814 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Asset-backed securities and structured notes | |||
ASSETS: | |||
Available-for-sale | $ 0 | $ 0 |
FAIR VALUE - LEVEL 3 ASSETS MEA
FAIR VALUE - LEVEL 3 ASSETS MEASURED ON RECURRING BASIS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Mortgage banking income | Mortgage banking income |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Other comprehensive income (loss) | Other comprehensive income (loss) |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | $ 212,491 | $ 87,731 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (464) | 0 |
Total gains or losses for the period - Included in earnings | (634) | 537 |
Total gains or losses for the period - Included in other comprehensive income | (4,464) | (3,244) |
Purchases, retentions, issues, sales and settlements: | ||
Purchases/Retentions | 30,864 | 136,470 |
Settlements | (7,345) | (9,003) |
Closing balance | 230,448 | 212,491 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | (634) | 537 |
Principal payments and loans that were paid down or paid off | 900 | 4,100 |
Market-driven changes in interest rates | 300 | 6,400 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Securities- Available-for- Sale: Non- Agency MBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | 186,814 | 67,615 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Total gains or losses for the period - Included in earnings | 0 | 0 |
Total gains or losses for the period - Included in other comprehensive income | (4,464) | (3,244) |
Purchases, retentions, issues, sales and settlements: | ||
Purchases/Retentions | 30,000 | 131,446 |
Settlements | (7,345) | (9,003) |
Closing balance | 205,005 | 186,814 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Mortgage Servicing Rights | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | 25,213 | 17,911 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Total gains or losses for the period - Included in earnings | (634) | 2,278 |
Total gains or losses for the period - Included in other comprehensive income | 0 | 0 |
Purchases, retentions, issues, sales and settlements: | ||
Purchases/Retentions | 864 | 5,024 |
Settlements | 0 | 0 |
Closing balance | 25,443 | 25,213 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | (634) | 2,278 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Derivative Instruments, net | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | 464 | 2,205 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (464) | 0 |
Total gains or losses for the period - Included in earnings | 0 | (1,741) |
Total gains or losses for the period - Included in other comprehensive income | 0 | 0 |
Purchases, retentions, issues, sales and settlements: | ||
Purchases/Retentions | 0 | 0 |
Settlements | 0 | 0 |
Closing balance | 0 | 464 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | $ 0 | $ (1,741) |
FAIR VALUE - QUANTITATIVE INFOR
FAIR VALUE - QUANTITATIVE INFORMATION FOR LEVEL 3 FAIR VALUE MEASURMENTS (RECURRING) (Details) $ in Thousands | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale | $ 232,350 | $ 262,518 |
Securities – Non-agency MBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale | $ 205,005 | 186,814 |
Discount Rate | Minimum | Securities – Non-agency MBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.0261 | |
Discount Rate | Maximum | Securities – Non-agency MBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.0750 | |
Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale | $ 205,005 | 186,814 |
Mortgage Servicing Rights | 25,443 | 25,213 |
Fair Value, Measurements, Recurring | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale | 232,350 | 262,518 |
Mortgage Servicing Rights | 25,443 | 25,213 |
Fair Value, Measurements, Recurring | Securities – Non-agency MBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale | 205,005 | 186,814 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale | 205,005 | 186,814 |
Mortgage Servicing Rights | 25,443 | 25,213 |
Fair Value, Measurements, Recurring | Level 3 | Securities – Non-agency MBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale | 205,005 | 186,814 |
Fair Value, Measurements, Recurring | Level 3 | Mortgage Servicing Rights | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Mortgage Servicing Rights | $ 25,443 | 25,213 |
Fair Value, Measurements, Recurring | Level 3 | Derivative Instruments, net | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative Instruments | $ 464 | |
Fair Value, Measurements, Recurring | Level 3 | Projected Constant Prepayment Rate | Minimum | Securities – Non-agency MBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Projected Constant Prepayment Rate | Minimum | Mortgage Servicing Rights | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Servicing asset, measurement input | 0.061 | 0.079 |
Fair Value, Measurements, Recurring | Level 3 | Projected Constant Prepayment Rate | Maximum | Securities – Non-agency MBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.597 | 0.300 |
Fair Value, Measurements, Recurring | Level 3 | Projected Constant Prepayment Rate | Maximum | Mortgage Servicing Rights | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Servicing asset, measurement input | 0.401 | 0.563 |
Fair Value, Measurements, Recurring | Level 3 | Projected Constant Prepayment Rate | Weighted Average | Securities – Non-agency MBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.320 | 0.214 |
Fair Value, Measurements, Recurring | Level 3 | Projected Constant Prepayment Rate | Weighted Average | Mortgage Servicing Rights | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Servicing asset, measurement input | 0.126 | 0.110 |
Fair Value, Measurements, Recurring | Level 3 | Projected Constant Default Rate | Minimum | Securities – Non-agency MBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Projected Constant Default Rate | Maximum | Securities – Non-agency MBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.075 | 0.079 |
Fair Value, Measurements, Recurring | Level 3 | Projected Constant Default Rate | Weighted Average | Securities – Non-agency MBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.024 | 0.022 |
Fair Value, Measurements, Recurring | Level 3 | Projected Loss Severity | Minimum | Securities – Non-agency MBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Projected Loss Severity | Maximum | Securities – Non-agency MBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.687 | 0.684 |
Fair Value, Measurements, Recurring | Level 3 | Projected Loss Severity | Weighted Average | Securities – Non-agency MBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.285 | 0.267 |
Fair Value, Measurements, Recurring | Level 3 | Discount Rate | Minimum | Securities – Non-agency MBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.026 | 0.027 |
Fair Value, Measurements, Recurring | Level 3 | Discount Rate | Minimum | Mortgage Servicing Rights | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Servicing asset, measurement input | 0.095 | 0.095 |
Fair Value, Measurements, Recurring | Level 3 | Discount Rate | Maximum | Securities – Non-agency MBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.075 | 0.093 |
Fair Value, Measurements, Recurring | Level 3 | Discount Rate | Maximum | Mortgage Servicing Rights | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Servicing asset, measurement input | 0.115 | 0.115 |
Fair Value, Measurements, Recurring | Level 3 | Discount Rate | Weighted Average | Securities – Non-agency MBS | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Available-for-sale securities, measurement input | 0.027 | 0.028 |
Fair Value, Measurements, Recurring | Level 3 | Discount Rate | Weighted Average | Mortgage Servicing Rights | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Servicing asset, measurement input | 0.096 | 0.095 |
Fair Value, Measurements, Recurring | Level 3 | Life (in years) | Minimum | Mortgage Servicing Rights | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Servicing asset, measurement input | 1.8 | 1.2 |
Fair Value, Measurements, Recurring | Level 3 | Life (in years) | Maximum | Mortgage Servicing Rights | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Servicing asset, measurement input | 10.9 | 9.9 |
Fair Value, Measurements, Recurring | Level 3 | Life (in years) | Weighted Average | Mortgage Servicing Rights | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Servicing asset, measurement input | 7.7 | 8.4 |
Fair Value, Measurements, Recurring | Level 3 | Projected Sales Profit of Underlying Loans | Minimum | Derivative Instruments, net | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative asset, net, measurement input | (0.031) | |
Fair Value, Measurements, Recurring | Level 3 | Projected Sales Profit of Underlying Loans | Maximum | Derivative Instruments, net | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative asset, net, measurement input | 0.008 | |
Fair Value, Measurements, Recurring | Level 3 | Projected Sales Profit of Underlying Loans | Weighted Average | Derivative Instruments, net | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Derivative asset, net, measurement input | (0.012) |
FAIR VALUE - ASSETS MEASURED FO
FAIR VALUE - ASSETS MEASURED FOR IMPAIRMENT ON NONRECURRING BASIS (Details) - Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | $ 8,099 | $ 798 |
Single family real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 5,574 | |
Multifamily real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 1,392 | |
Autos | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 1,133 | 798 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Single family real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Multifamily real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Autos | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Single family real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 0 | |
Significant Other Observable Inputs (Level 2) | Multifamily real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 0 | |
Significant Other Observable Inputs (Level 2) | Autos | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 8,099 | 798 |
Significant Unobservable Inputs (Level 3) | Single family real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 5,574 | |
Significant Unobservable Inputs (Level 3) | Multifamily real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 1,392 | |
Significant Unobservable Inputs (Level 3) | Autos | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | $ 1,133 | $ 798 |
FAIR VALUE - LOANS HELD-FOR-SAL
FAIR VALUE - LOANS HELD-FOR-SALE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |||
Aggregate fair value | $ 23,203 | $ 4,973 | $ 29,768 |
Contractual balance | 22,844 | 4,881 | 28,940 |
Unrealized gain | 359 | 92 | 828 |
Interest income | 415 | 739 | 1,411 |
Change in fair value | 57 | (2,474) | (6,680) |
Total | $ 472 | $ (1,735) | $ (5,269) |
FAIR VALUE - QUANTITATIVE INF_2
FAIR VALUE - QUANTITATIVE INFORMATION FOR LEVEL 3 FAIR VALUE MEASURMENTS (NONRECURRING) (Details) - Nonrecurring $ in Thousands | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | $ 8,099 | $ 798 |
Single family real estate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 5,574 | |
Multifamily real estate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 1,392 | |
Autos | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 1,133 | 798 |
Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | 8,099 | 798 |
Level 3 | Single family real estate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | $ 5,574 | |
Level 3 | Single family real estate | Adjustment for differences between the comparable sales | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, measurement input | 0.621 | |
Level 3 | Single family real estate | Adjustment for differences between the comparable sales | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, measurement input | 0.936 | |
Level 3 | Single family real estate | Adjustment for differences between the comparable sales | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, measurement input | 0.621 | |
Level 3 | Multifamily real estate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | $ 1,392 | |
Level 3 | Multifamily real estate | Adjustment for differences between the comparable sales | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, measurement input | 0.498 | |
Level 3 | Multifamily real estate | Adjustment for differences between the comparable sales | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, measurement input | 0.545 | |
Level 3 | Multifamily real estate | Adjustment for differences between the comparable sales | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, measurement input | 0.498 | |
Level 3 | Autos | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned and foreclosed assets, fair value | $ 1,133 | $ 798 |
Level 3 | Autos | Adjustment for differences between the comparable sales | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other repossessed assets, measurement input | (0.055) | (0.172) |
Level 3 | Autos | Adjustment for differences between the comparable sales | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other repossessed assets, measurement input | 0.098 | 0.046 |
Level 3 | Autos | Adjustment for differences between the comparable sales | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other repossessed assets, measurement input | 0.005 | (0.075) |
FAIR VALUE - FAIR VALUE BY BALA
FAIR VALUE - FAIR VALUE BY BALANCE SHEET GROUPING (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Financial assets: | |||
Securities— trading | $ 758 | $ 1,758 | |
Available-for-sale | 232,350 | 262,518 | |
Stock of regulatory agencies | 21,510 | 20,368 | |
Loans held for sale, carried at fair value | 23,203 | 4,973 | $ 29,768 |
Loans held for sale, lower of cost or fair value | 776 | 10,938 | |
Securities borrowed | 134,339 | 338,980 | |
Financial liabilities: | |||
Securities loaned | 159,832 | 474,400 | |
Level 1 | |||
Financial assets: | |||
Cash and cash equivalents | 2,382,086 | 1,574,699 | |
Securities— trading | 0 | 0 | |
Available-for-sale | 0 | 0 | |
Stock of regulatory agencies | 0 | 0 | |
Loans held for sale, carried at fair value | 0 | 0 | |
Loans held for sale, lower of cost or fair value | 0 | 0 | |
Loans held for investment—net | 0 | 0 | |
Securities borrowed | 0 | 0 | |
Customer, broker-dealer and clearing receivables | 0 | 0 | |
Mortgage servicing rights | 0 | 0 | |
Other assets—Derivative instruments | 0 | 0 | |
Financial liabilities: | |||
Total deposits | 0 | 0 | |
Advances from the Federal Home Loan Bank | 0 | 0 | |
Borrowings, subordinated notes and debentures | 0 | 0 | |
Securities loaned | 0 | 0 | |
Customer, broker-dealer and clearing payables | 0 | 0 | |
Accrued expense and other liabilities—Derivative instruments | 0 | ||
Level 2 | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | |
Securities— trading | 758 | 1,758 | |
Available-for-sale | 27,345 | 75,704 | |
Stock of regulatory agencies | 21,510 | 20,368 | |
Loans held for sale, carried at fair value | 23,203 | 4,973 | |
Loans held for sale, lower of cost or fair value | 0 | 0 | |
Loans held for investment—net | 0 | 0 | |
Securities borrowed | 0 | 0 | |
Customer, broker-dealer and clearing receivables | 0 | 0 | |
Mortgage servicing rights | 0 | 0 | |
Other assets—Derivative instruments | 919 | 0 | |
Financial liabilities: | |||
Total deposits | 17,064,084 | 12,812,512 | |
Advances from the Federal Home Loan Bank | 83,192 | 117,500 | |
Borrowings, subordinated notes and debentures | 327,564 | 416,947 | |
Securities loaned | 0 | 0 | |
Customer, broker-dealer and clearing payables | 0 | 0 | |
Accrued expense and other liabilities—Derivative instruments | 691 | ||
Level 3 | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | |
Securities— trading | 0 | 0 | |
Available-for-sale | 205,005 | 186,814 | |
Stock of regulatory agencies | 0 | 0 | |
Loans held for sale, carried at fair value | 0 | 0 | |
Loans held for sale, lower of cost or fair value | 780 | 10,985 | |
Loans held for investment—net | 16,417,183 | 14,015,157 | |
Securities borrowed | 143,461 | 329,963 | |
Customer, broker-dealer and clearing receivables | 386,082 | 414,383 | |
Mortgage servicing rights | 25,443 | 25,213 | |
Other assets—Derivative instruments | 0 | 464 | |
Financial liabilities: | |||
Total deposits | 0 | 0 | |
Advances from the Federal Home Loan Bank | 0 | 0 | |
Borrowings, subordinated notes and debentures | 0 | 0 | |
Securities loaned | 159,416 | 473,831 | |
Customer, broker-dealer and clearing payables | 445,447 | 471,859 | |
Accrued expense and other liabilities—Derivative instruments | 0 | ||
Carrying Amount | |||
Financial assets: | |||
Cash and cash equivalents | 2,382,086 | 1,574,699 | |
Securities— trading | 758 | 1,758 | |
Available-for-sale | 232,350 | 262,518 | |
Stock of regulatory agencies | 21,510 | 20,368 | |
Loans held for sale, carried at fair value | 23,203 | 4,973 | |
Loans held for sale, lower of cost or fair value | 776 | 10,938 | |
Loans held for investment—net | 16,456,728 | 14,091,061 | |
Securities borrowed | 134,339 | 338,980 | |
Customer, broker-dealer and clearing receivables | 374,074 | 417,417 | |
Mortgage servicing rights | 25,443 | 25,213 | |
Other assets—Derivative instruments | 919 | 464 | |
Financial liabilities: | |||
Total deposits | 17,123,108 | 13,946,422 | |
Advances from the Federal Home Loan Bank | 90,000 | 117,500 | |
Borrowings, subordinated notes and debentures | 361,779 | 445,244 | |
Securities loaned | 159,832 | 474,400 | |
Customer, broker-dealer and clearing payables | 445,477 | 511,654 | |
Accrued expense and other liabilities—Derivative instruments | 691 | ||
Total Fair Value | |||
Financial assets: | |||
Cash and cash equivalents | 2,382,086 | 1,574,699 | |
Securities— trading | 758 | 1,758 | |
Available-for-sale | 232,350 | 262,518 | |
Stock of regulatory agencies | 21,510 | 20,368 | |
Loans held for sale, carried at fair value | 23,203 | 4,973 | |
Loans held for sale, lower of cost or fair value | 780 | 10,985 | |
Loans held for investment—net | 16,417,183 | 14,015,157 | |
Securities borrowed | 143,461 | 329,963 | |
Customer, broker-dealer and clearing receivables | 386,082 | 414,383 | |
Mortgage servicing rights | 25,443 | 25,213 | |
Other assets—Derivative instruments | 919 | 464 | |
Financial liabilities: | |||
Total deposits | 17,064,084 | 12,812,512 | |
Advances from the Federal Home Loan Bank | 83,192 | 117,500 | |
Borrowings, subordinated notes and debentures | 327,564 | 416,947 | |
Securities loaned | 159,416 | 473,831 | |
Customer, broker-dealer and clearing payables | 445,447 | $ 471,859 | |
Accrued expense and other liabilities—Derivative instruments | $ 691 |
SECURITIES - AMORTIZED COST, CA
SECURITIES - AMORTIZED COST, CARRYING AMOUNT AND FAIR VALUE DISCLOSURES (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 758 | $ 1,758 |
Amortized Cost | 240,951 | 265,867 |
Unrealized Gains | 711 | 1,972 |
Unrealized Losses | (9,312) | (5,321) |
Available-for-sale | 232,350 | 262,518 |
Agency MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 0 | 0 |
Amortized Cost | 27,024 | 27,722 |
Unrealized Gains | 0 | 9 |
Unrealized Losses | (3,077) | (2,406) |
Available-for-sale | 23,947 | 25,325 |
Securities – Non-agency MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 0 | 0 |
Amortized Cost | 210,271 | 187,616 |
Unrealized Gains | 711 | 1,832 |
Unrealized Losses | (5,977) | (2,634) |
Available-for-sale | 205,005 | 186,814 |
Total mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 0 | 0 |
Amortized Cost | 237,295 | 215,338 |
Unrealized Gains | 711 | 1,841 |
Unrealized Losses | (9,054) | (5,040) |
Available-for-sale | 228,952 | 212,139 |
Municipal debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 758 | 1,758 |
Amortized Cost | 3,656 | 3,529 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (258) | (281) |
Available-for-sale | 3,398 | 3,248 |
Non-Agency Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 0 | 0 |
Amortized Cost | 0 | 47,000 |
Unrealized Gains | 0 | 131 |
Unrealized Losses | 0 | 0 |
Available-for-sale | 0 | 47,131 |
Total Non-MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 758 | 1,758 |
Amortized Cost | 3,656 | 50,529 |
Unrealized Gains | 0 | 131 |
Unrealized Losses | (258) | (281) |
Available-for-sale | $ 3,398 | $ 50,379 |
SECURITIES - NARRATIVE (Details
SECURITIES - NARRATIVE (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 USD ($) security | Jun. 30, 2022 USD ($) security | Jun. 30, 2021 USD ($) | |
Marketable Securities [Line Items] | |||
Available-for-sale securities, credit losses | $ 0 | $ 0 | $ 0 |
Available-for-sale, debt securities, allowance | 0 | ||
Available-for-sale | $ 232,350 | $ 262,518 | |
Number of securities in a continuous loss position for a period of more than 12 months | security | 37 | 14 | |
Number of securities in a continuous loss position for a period of less than 12 months | security | 17 | 25 | |
Number of trading securities sold | security | 0 | 0 | |
Investment resolution, no realized gain or loss | $ 70,800 | ||
Asset Pledged as Collateral | |||
Marketable Securities [Line Items] | |||
Debt securities available-for-sale and held-to-maturity pledged to secure borrowings | $ 900 | $ 1,200 | |
Securities – Non-agency MBS | |||
Marketable Securities [Line Items] | |||
Available-for-sale | $ 205,005 | $ 186,814 | |
RMBS, Super Senior Securities | |||
Marketable Securities [Line Items] | |||
Available-for-sale, number of securities | security | 17 |
SECURITIES - SCHEDULE OF SECURI
SECURITIES - SCHEDULE OF SECURITIES IN CONTINUOUS UNREALIZED LOSS POSITION (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Fair Value | ||
Less Than 12 Months | $ 111,164 | $ 112,490 |
More Than 12 Months | 119,425 | 12,848 |
Total | 230,589 | 125,338 |
Gross Unrealized Losses | ||
Less Than 12 Months | (1,824) | (3,823) |
More Than 12 Months | (7,488) | (1,498) |
Total | (9,312) | (5,321) |
Total mortgage-backed securities | ||
Fair Value | ||
Less Than 12 Months | 111,164 | 109,242 |
More Than 12 Months | 116,027 | 12,848 |
Total | 227,191 | 122,090 |
Gross Unrealized Losses | ||
Less Than 12 Months | (1,824) | (3,542) |
More Than 12 Months | (7,230) | (1,498) |
Total | (9,054) | (5,040) |
Agencies | ||
Fair Value | ||
Less Than 12 Months | 3,182 | 16,446 |
More Than 12 Months | 20,642 | 8,097 |
Total | 23,824 | 24,543 |
Gross Unrealized Losses | ||
Less Than 12 Months | (16) | (1,338) |
More Than 12 Months | (3,061) | (1,068) |
Total | (3,077) | (2,406) |
Securities- Available-for- Sale: Non- Agency MBS | ||
Fair Value | ||
Less Than 12 Months | 107,982 | 92,796 |
More Than 12 Months | 95,385 | 4,751 |
Total | 203,367 | 97,547 |
Gross Unrealized Losses | ||
Less Than 12 Months | (1,808) | (2,204) |
More Than 12 Months | (4,169) | (430) |
Total | (5,977) | (2,634) |
Total Non-MBS | ||
Fair Value | ||
Less Than 12 Months | 0 | 3,248 |
More Than 12 Months | 3,398 | 0 |
Total | 3,398 | 3,248 |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | (281) |
More Than 12 Months | (258) | 0 |
Total | (258) | (281) |
Municipal | ||
Fair Value | ||
Less Than 12 Months | 0 | 3,248 |
More Than 12 Months | 3,398 | 0 |
Total | 3,398 | 3,248 |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | (281) |
More Than 12 Months | (258) | 0 |
Total | $ (258) | $ (281) |
SECURITIES - INVESTMENTS CLASSI
SECURITIES - INVESTMENTS CLASSIFIED BY CONTRACTUAL MATURITY DATE (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Available-for-Sale, Fair Value | ||
Amortized Cost | $ 240,951 | $ 265,867 |
Available-for-Sale Amortized Cost | ||
Total | 240,951 | |
Due within one year | 98,637 | |
Due one to five years | 128,643 | |
Due five to ten years | 7,251 | |
Due after ten years | 6,420 | |
Total Fair Value | ||
Available-for-Sale, Fair Value | ||
Amortized Cost | 232,350 | |
Due within one year | 95,913 | |
Due one to five years | 123,730 | |
Due five to ten years | 6,576 | |
Due after ten years | 6,131 | |
Agency MBS | ||
Available-for-Sale, Fair Value | ||
Amortized Cost | 27,024 | 27,722 |
Due within one year | 6,276 | |
Due one to five years | 13,110 | |
Due five to ten years | 5,522 | |
Due after ten years | 2,116 | |
Securities – Non-agency MBS | ||
Available-for-Sale, Fair Value | ||
Amortized Cost | 210,271 | 187,616 |
Due within one year | 92,361 | |
Due one to five years | 115,533 | |
Due five to ten years | 1,729 | |
Due after ten years | 648 | |
Total mortgage-backed securities | ||
Available-for-Sale, Fair Value | ||
Amortized Cost | 237,295 | 215,338 |
Due within one year | 98,637 | |
Due one to five years | 128,643 | |
Due five to ten years | 7,251 | |
Due after ten years | 2,764 | |
Municipal | ||
Available-for-Sale, Fair Value | ||
Amortized Cost | 3,656 | 3,529 |
Due within one year | 0 | |
Due one to five years | 0 | |
Due five to ten years | 0 | |
Due after ten years | 3,656 | |
Total Non-MBS | ||
Available-for-Sale, Fair Value | ||
Amortized Cost | 3,656 | $ 50,529 |
Due within one year | 0 | |
Due one to five years | 0 | |
Due five to ten years | 0 | |
Due after ten years | $ 3,656 |
SECURITIES - UNREALIZED GAIN (L
SECURITIES - UNREALIZED GAIN (LOSS) ON INVESTMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale debt securities—net unrealized gains (losses) | $ (8,601) | $ (3,349) |
Available-for-sale debt securities—non-credit related | (845) | (845) |
Subtotal | (9,446) | (4,194) |
Tax benefit (expense) | 2,836 | 1,261 |
Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss) | $ (6,610) | $ (2,933) |
LOANS & ALLOWANCE FOR CREDIT _3
LOANS & ALLOWANCE FOR CREDIT LOSSES - NARRATIVE (Details) | 12 Months Ended | ||
Jun. 30, 2023 USD ($) segment | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Financing Receivable, Impaired [Line Items] | |||
Number of loan portfolio segments | segment | 6 | ||
Accrued interest receivable | $ 77,900,000 | $ 50,100,000 | |
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |
Advances, collateral pledged | $ 5,128,400,000 | $ 3,823,100,000 | |
FRBSF and FRB, loans pledged | 3,689,500,000 | 3,861,600,000 | |
Purchased loans serviced by others, amount | $ 32,500,000 | $ 37,300,000 | |
Purchased loans serviced by others, percent | 0.20% | 0.26% | |
Nonaccrual loans, without an allowance | $ 0 | $ 0 | |
Interest recognized on performing loans temporarily modified as TDRs | 0 | 0 | $ 0 |
Interest income recognized | 0 | 0 | 0 |
Loans past due ninety days or more and still accruing | 14,000,000 | 0 | |
Mortgage loans in process of foreclosure, amount | $ 22,200,000 | $ 20,700,000 | |
Nonaccrual | |||
Financing Receivable, Impaired [Line Items] | |||
Ratio of nonaccrual loans and leases considered TDRs | 1.77% | 1.18% | |
Performing | |||
Financing Receivable, Impaired [Line Items] | |||
Amount in performing TDRs | $ 0 | $ 0 | $ 0 |
Single Family - Mortgage & Warehouse | |||
Financing Receivable, Impaired [Line Items] | |||
Interest only loans | 1,331,200,000 | 1,197,400,000 | |
Option adjustable-rate mortgage loans | $ 8,900,000 | $ 7,000,000 | |
Single Family - Mortgage & Warehouse | California | Financing Receivable | Geographic concentration risk | |||
Financing Receivable, Impaired [Line Items] | |||
Concentration risk percentage | 71.40% | 70.60% | |
Single Family - Mortgage & Warehouse | New York | Financing Receivable | Geographic concentration risk | |||
Financing Receivable, Impaired [Line Items] | |||
Concentration risk percentage | 11% | 13% | |
Multifamily Loan Category | California | Financing Receivable | Geographic concentration risk | |||
Financing Receivable, Impaired [Line Items] | |||
Concentration risk percentage | 69.10% | 68.30% | |
Multifamily Loan Category | New York | Financing Receivable | Geographic concentration risk | |||
Financing Receivable, Impaired [Line Items] | |||
Concentration risk percentage | 19.70% | 18.80% | |
Commercial Real Estate | California | Financing Receivable | Geographic concentration risk | |||
Financing Receivable, Impaired [Line Items] | |||
Concentration risk percentage | 11.90% | ||
Commercial Real Estate | New York | Financing Receivable | Geographic concentration risk | |||
Financing Receivable, Impaired [Line Items] | |||
Concentration risk percentage | 37.50% | 40.50% | |
Commercial Real Estate | FLORIDA | Financing Receivable | Geographic concentration risk | |||
Financing Receivable, Impaired [Line Items] | |||
Concentration risk percentage | 10.50% | ||
Fixed Interest Rate | |||
Financing Receivable, Impaired [Line Items] | |||
Percent of loans by interest rate type | 7% | 9% | |
Adjustable Interest Rate | |||
Financing Receivable, Impaired [Line Items] | |||
Percent of loans by interest rate type | 93% | 91% |
LOANS & ALLOWANCE FOR CREDIT _4
LOANS & ALLOWANCE FOR CREDIT LOSSES - COMPOSITION OF LOAN PORTFOLIO (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross loans | $ 16,652,026 | $ 14,253,676 | ||
Allowance for credit losses - loans | (166,680) | (148,617) | $ (132,958) | $ (75,807) |
Unaccreted premiums (discounts) and loan fees | (28,618) | (13,998) | ||
Total net loans | 16,456,728 | 14,091,061 | ||
Single Family - Mortgage & Warehouse | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross loans | 4,173,833 | 3,988,462 | ||
Allowance for credit losses - loans | (17,503) | (19,670) | (26,604) | (25,899) |
Multifamily and Commercial Mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross loans | 3,082,225 | 2,877,680 | ||
Allowance for credit losses - loans | (16,848) | (14,655) | (13,146) | (4,719) |
Commercial Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross loans | 6,199,818 | 4,781,044 | ||
Allowance for credit losses - loans | (72,755) | (69,339) | (57,928) | (21,052) |
Commercial & Industrial - Non-RE | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross loans | 2,639,650 | 2,028,128 | ||
Allowance for credit losses - loans | (46,347) | (30,808) | (28,460) | (9,954) |
Auto & Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross loans | 546,264 | 567,228 | ||
Allowance for credit losses - loans | (13,212) | (14,114) | (6,519) | (9,462) |
Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross loans | 10,236 | 11,134 | ||
Allowance for credit losses - loans | $ (15) | $ (31) | $ (301) | $ (4,721) |
LOANS & ALLOWANCE FOR CREDIT _5
LOANS & ALLOWANCE FOR CREDIT LOSSES - RELATED PARTY LOANS COLLATERALIZED BY REAL PROPERTY (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Outstanding loan balance | $ 16,456,728 | $ 14,091,061 | |
Loans originated and funded | 3,842,206 | 5,761,527 | |
Principal repayments | 5,916,179 | 7,220,931 | $ 5,013,817 |
Affiliated Entity | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Outstanding loan balance | 29,181 | 25,573 | |
Loans originated and funded | 5,052 | 0 | |
Principal repayments | $ 1,444 | $ 2,980 |
LOANS & ALLOWANCE FOR CREDIT _6
LOANS & ALLOWANCE FOR CREDIT LOSSES - ACTIVITY FOR ALLOWANCE FOR CREDIT LOSSES-LOANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | $ 148,617 | $ 132,958 | $ 75,807 |
Provision expense (benefit) for credit losses - loans | 24,750 | 18,500 | 23,750 |
Charge-offs | (9,456) | (4,428) | (16,558) |
Recoveries | 2,769 | 1,587 | 2,659 |
Balance, end of period | 166,680 | 148,617 | 132,958 |
Single Family - Mortgage & Warehouse | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | 19,670 | 26,604 | 25,899 |
Provision expense (benefit) for credit losses - loans | (2,302) | (7,009) | (3,242) |
Charge-offs | (314) | (82) | (2,502) |
Recoveries | 449 | 157 | 131 |
Balance, end of period | 17,503 | 19,670 | 26,604 |
Multifamily and Commercial Mortgage | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | 14,655 | 13,146 | 4,719 |
Provision expense (benefit) for credit losses - loans | 2,193 | 1,332 | 1,196 |
Charge-offs | 0 | 0 | (177) |
Recoveries | 0 | 177 | 0 |
Balance, end of period | 16,848 | 14,655 | 13,146 |
Commercial Real Estate | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | 69,339 | 57,928 | 21,052 |
Provision expense (benefit) for credit losses - loans | 3,416 | 11,411 | 11,238 |
Charge-offs | 0 | 0 | (255) |
Recoveries | 0 | 0 | 0 |
Balance, end of period | 72,755 | 69,339 | 57,928 |
Commercial & Industrial - Non-RE | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | 30,808 | 28,460 | 9,954 |
Provision expense (benefit) for credit losses - loans | 15,521 | 2,544 | 14,251 |
Charge-offs | 0 | (322) | (2,833) |
Recoveries | 18 | 126 | 46 |
Balance, end of period | 46,347 | 30,808 | 28,460 |
Auto & Consumer | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | 14,114 | 6,519 | 9,462 |
Provision expense (benefit) for credit losses - loans | 5,938 | 10,492 | (1,354) |
Charge-offs | (9,142) | (4,024) | (3,517) |
Recoveries | 2,302 | 1,127 | 1,318 |
Balance, end of period | 13,212 | 14,114 | 6,519 |
Other | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | 31 | 301 | 4,721 |
Provision expense (benefit) for credit losses - loans | (16) | (270) | 1,661 |
Charge-offs | 0 | 0 | (7,274) |
Recoveries | 0 | 0 | 1,164 |
Balance, end of period | $ 15 | $ 31 | 301 |
Impact of ASC 326 Adoption | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | 47,300 | ||
Impact of ASC 326 Adoption | Single Family - Mortgage & Warehouse | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | 6,318 | ||
Impact of ASC 326 Adoption | Multifamily and Commercial Mortgage | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | 7,408 | ||
Impact of ASC 326 Adoption | Commercial Real Estate | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | 25,893 | ||
Impact of ASC 326 Adoption | Commercial & Industrial - Non-RE | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | 7,042 | ||
Impact of ASC 326 Adoption | Auto & Consumer | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | 610 | ||
Impact of ASC 326 Adoption | Other | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | $ 29 |
LOANS & ALLOWANCE FOR CREDIT _7
LOANS & ALLOWANCE FOR CREDIT LOSSES - REAL ESTATE LOANS, LTV RATIO (Details) | 12 Months Ended |
Jun. 30, 2023 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Weighted-Average LTV | 48.90% |
Median LTV | 53% |
Effective weighted-average LTV | 47% |
Single Family - Mortgage & Warehouse | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Weighted-Average LTV | 57.40% |
Median LTV | 55% |
Multifamily and Commercial Mortgage | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Weighted-Average LTV | 53.80% |
Median LTV | 50% |
Commercial Real Estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Weighted-Average LTV | 40.80% |
Median LTV | 38% |
LOANS & ALLOWANCE FOR CREDIT _8
LOANS & ALLOWANCE FOR CREDIT LOSSES - UNPAID PRINCIPAL BALANCE FOR PERFORMING AND NONACCRUAL (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 16,652,026 | $ 14,253,676 |
Nonaccrual loans to total loans (as a percent) | 0.52% | 0.83% |
Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 4,173,833 | $ 3,988,462 |
Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 3,082,225 | 2,877,680 |
Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 6,199,818 | 4,781,044 |
Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,639,650 | 2,028,128 |
Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 546,264 | 567,228 |
Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 10,236 | 11,134 |
Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 16,564,866 | 14,135,482 |
Performing | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 4,143,119 | 3,922,038 |
Performing | Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 3,047,122 | 2,844,270 |
Performing | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 6,184,966 | 4,766,192 |
Performing | Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,636,661 | 2,025,139 |
Performing | Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 544,807 | 566,789 |
Performing | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 8,191 | 11,054 |
Nonaccrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 87,160 | 118,194 |
Nonaccrual | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 30,714 | 66,424 |
Nonaccrual | Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 35,103 | 33,410 |
Nonaccrual | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 14,852 | 14,852 |
Nonaccrual | Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,989 | 2,989 |
Nonaccrual | Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,457 | 439 |
Nonaccrual | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 2,045 | $ 80 |
LOANS & ALLOWANCE FOR CREDIT _9
LOANS & ALLOWANCE FOR CREDIT LOSSES - LOANS BY AMORTIZED COST BASIS BY YEAR OF ORIGINATION AND CREDIT QUALITY INDICATOR (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | $ 3,842,206 | $ 5,761,527 |
2022 | 5,386,784 | 2,409,989 |
2021 | 1,816,171 | 1,337,143 |
2020 | 867,067 | 914,995 |
2019 | 665,377 | 610,690 |
Prior | 1,156,389 | 946,625 |
Revolving Loans | 2,918,032 | 2,272,707 |
Total | $ 16,652,026 | $ 14,253,676 |
As a % of total gross loans | ||
2023 | 23.07% | 40.42% |
2022 | 32.35% | 16.91% |
2021 | 10.91% | 9.38% |
2020 | 5.21% | 6.42% |
2019 | 4% | 4.28% |
Prior | 6.94% | 6.64% |
Revolving Loans | 17.52% | 15.95% |
Total | 100% | 100% |
Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | $ 730,498 | $ 1,484,027 |
2022 | 1,359,272 | 602,342 |
2021 | 534,585 | 411,430 |
2020 | 347,145 | 324,911 |
2019 | 270,513 | 289,328 |
Prior | 682,031 | 595,862 |
Revolving Loans | 249,789 | 280,562 |
Total | 4,173,833 | 3,988,462 |
Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 558,787 | 1,001,019 |
2022 | 988,022 | 575,258 |
2021 | 509,066 | 464,124 |
2020 | 354,600 | 269,313 |
2019 | 238,478 | 226,856 |
Prior | 433,272 | 341,110 |
Revolving Loans | 0 | 0 |
Total | 3,082,225 | 2,877,680 |
Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 1,896,476 | 2,482,366 |
2022 | 2,395,722 | 1,023,238 |
2021 | 669,451 | 383,135 |
2020 | 114,016 | 221,330 |
2019 | 134,215 | 67,265 |
Prior | 29,914 | 0 |
Revolving Loans | 960,024 | 603,710 |
Total | 6,199,818 | 4,781,044 |
Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 488,120 | 438,229 |
2022 | 384,197 | 94,585 |
2021 | 30,809 | 34,783 |
2020 | 26,207 | 62,118 |
2019 | 2,098 | 9,978 |
Prior | 0 | 0 |
Revolving Loans | 1,708,219 | 1,388,435 |
Total | 2,639,650 | 2,028,128 |
Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 162,604 | 352,829 |
2022 | 257,571 | 108,381 |
2021 | 70,909 | 43,625 |
2020 | 25,099 | 37,323 |
2019 | 20,073 | 16,172 |
Prior | 10,008 | 8,898 |
Revolving Loans | 0 | 0 |
Total | 546,264 | 567,228 |
Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 5,721 | 3,057 |
2022 | 2,000 | 6,185 |
2021 | 1,351 | 46 |
2020 | 0 | 0 |
2019 | 0 | 1,091 |
Prior | 1,164 | 755 |
Revolving Loans | 0 | 0 |
Total | 10,236 | 11,134 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 3,812,433 | 5,756,965 |
2022 | 5,259,453 | 2,340,720 |
2021 | 1,754,423 | 1,259,387 |
2020 | 765,600 | 848,900 |
2019 | 620,062 | 554,060 |
Prior | 1,054,716 | 874,328 |
Revolving Loans | 2,910,818 | 2,232,772 |
Total | 16,177,505 | 13,867,132 |
Pass | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 730,498 | 1,484,027 |
2022 | 1,346,804 | 600,054 |
2021 | 522,873 | 402,712 |
2020 | 324,458 | 303,999 |
2019 | 255,547 | 279,248 |
Prior | 639,401 | 548,703 |
Revolving Loans | 243,175 | 241,925 |
Total | 4,062,756 | 3,860,668 |
Pass | Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 558,787 | 999,819 |
2022 | 975,186 | 569,486 |
2021 | 498,744 | 429,247 |
2020 | 314,383 | 259,161 |
2019 | 224,592 | 219,548 |
Prior | 404,222 | 316,013 |
Revolving Loans | 0 | 0 |
Total | 2,975,914 | 2,793,274 |
Pass | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 1,867,476 | 2,482,366 |
2022 | 2,323,095 | 990,887 |
2021 | 631,500 | 358,422 |
2020 | 87,059 | 186,800 |
2019 | 117,928 | 28,758 |
Prior | 0 | 0 |
Revolving Loans | 960,024 | 602,412 |
Total | 5,987,082 | 4,649,645 |
Pass | Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 488,120 | 435,228 |
2022 | 358,214 | 66,226 |
2021 | 29,777 | 25,629 |
2020 | 14,794 | 61,932 |
2019 | 2,098 | 9,268 |
Prior | 0 | 0 |
Revolving Loans | 1,707,619 | 1,388,435 |
Total | 2,600,622 | 1,986,718 |
Pass | Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 161,831 | 352,468 |
2022 | 256,154 | 107,882 |
2021 | 70,223 | 43,377 |
2020 | 24,906 | 37,008 |
2019 | 19,897 | 16,147 |
Prior | 9,929 | 8,891 |
Revolving Loans | 0 | 0 |
Total | 542,940 | 565,773 |
Pass | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 5,721 | 3,057 |
2022 | 0 | 6,185 |
2021 | 1,306 | 0 |
2020 | 0 | 0 |
2019 | 0 | 1,091 |
Prior | 1,164 | 721 |
Revolving Loans | 0 | 0 |
Total | 8,191 | 11,054 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 29,423 | 1,417 |
2022 | 69,251 | 32,539 |
2021 | 12,115 | 17,486 |
2020 | 29,593 | 19,827 |
2019 | 21,461 | 19,835 |
Prior | 33,312 | 11,940 |
Revolving Loans | 7,214 | 38,637 |
Total | 202,369 | 141,681 |
Special Mention | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | 0 |
2022 | 7,280 | 0 |
2021 | 7,026 | 4,790 |
2020 | 8,303 | 2,505 |
2019 | 12,942 | 4,125 |
Prior | 18,244 | 10,971 |
Revolving Loans | 6,614 | 38,637 |
Total | 60,409 | 61,028 |
Special Mention | Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | 1,200 |
2022 | 9,691 | 0 |
2021 | 4,636 | 534 |
2020 | 1,360 | 539 |
2019 | 7,705 | 0 |
Prior | 0 | 968 |
Revolving Loans | 0 | 0 |
Total | 23,392 | 3,241 |
Special Mention | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 29,000 | 0 |
2022 | 43,427 | 32,351 |
2021 | 0 | 12,138 |
2020 | 8,457 | 16,487 |
2019 | 800 | 15,000 |
Prior | 15,062 | 0 |
Revolving Loans | 0 | 0 |
Total | 96,746 | 75,976 |
Special Mention | Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | 13 |
2022 | 8,221 | 0 |
2021 | 0 | 0 |
2020 | 11,413 | 186 |
2019 | 0 | 710 |
Prior | 0 | 0 |
Revolving Loans | 600 | 0 |
Total | 20,234 | 909 |
Special Mention | Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 423 | 204 |
2022 | 632 | 188 |
2021 | 453 | 24 |
2020 | 60 | 110 |
2019 | 14 | 0 |
Prior | 6 | 1 |
Revolving Loans | 0 | 0 |
Total | 1,588 | 527 |
Special Mention | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 350 | 3,145 |
2022 | 58,080 | 36,730 |
2021 | 49,633 | 60,270 |
2020 | 71,874 | 46,268 |
2019 | 23,854 | 36,795 |
Prior | 68,361 | 60,357 |
Revolving Loans | 0 | 1,298 |
Total | 272,152 | 244,863 |
Substandard | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | 0 |
2022 | 5,188 | 2,288 |
2021 | 4,686 | 3,928 |
2020 | 14,384 | 18,407 |
2019 | 2,024 | 5,955 |
Prior | 24,386 | 36,188 |
Revolving Loans | 0 | 0 |
Total | 50,668 | 66,766 |
Substandard | Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | 0 |
2022 | 3,145 | 5,772 |
2021 | 5,686 | 34,343 |
2020 | 38,857 | 9,613 |
2019 | 6,181 | 7,308 |
Prior | 29,050 | 24,129 |
Revolving Loans | 0 | 0 |
Total | 82,919 | 81,165 |
Substandard | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | 0 |
2022 | 29,200 | 0 |
2021 | 37,951 | 12,575 |
2020 | 18,500 | 18,043 |
2019 | 15,487 | 23,507 |
Prior | 14,852 | 0 |
Revolving Loans | 0 | 1,298 |
Total | 115,990 | 55,423 |
Substandard | Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | 2,988 |
2022 | 17,762 | 28,359 |
2021 | 1,032 | 9,154 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 18,794 | 40,501 |
Substandard | Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 350 | 157 |
2022 | 785 | 311 |
2021 | 233 | 224 |
2020 | 133 | 205 |
2019 | 162 | 25 |
Prior | 73 | 6 |
Revolving Loans | 0 | 0 |
Total | 1,736 | 928 |
Substandard | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | 0 |
2022 | 2,000 | 0 |
2021 | 45 | 46 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 0 | 34 |
Revolving Loans | 0 | 0 |
Total | 2,045 | 80 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Doubtful | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Doubtful | Multifamily and Commercial Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Doubtful | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Doubtful | Commercial & Industrial - Non-RE | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Doubtful | Auto & Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Doubtful | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | $ 0 | $ 0 |
LOANS & ALLOWANCE FOR CREDIT_10
LOANS & ALLOWANCE FOR CREDIT LOSSES - PAST DUE LOANS AND LEASES (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 16,652,026 | $ 14,253,676 |
Single Family - Mortgage & Warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 4,173,833 | 3,988,462 |
Multifamily and Commercial Mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3,082,225 | 2,877,680 |
Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 6,199,818 | 4,781,044 |
Commercial & Industrial - Non-RE | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,639,650 | 2,028,128 |
Auto & Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 546,264 | 567,228 |
Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 10,236 | 11,134 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 16,508,938 | $ 14,123,781 |
As a % of gross loans | 99.14% | 99.09% |
Current | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 4,102,150 | $ 3,918,491 |
Current | Multifamily and Commercial Mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3,048,217 | 2,839,554 |
Current | Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 6,173,716 | 4,766,192 |
Current | Commercial & Industrial - Non-RE | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,639,650 | 2,028,128 |
Current | Auto & Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 537,181 | 560,888 |
Current | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 8,024 | 10,528 |
30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 41,384 | $ 19,900 |
As a % of gross loans | 0.25% | 0.14% |
30-59 Days | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 20,832 | $ 5,167 |
30-59 Days | Multifamily and Commercial Mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,705 | 9,455 |
30-59 Days | Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 11,250 | 0 |
30-59 Days | Commercial & Industrial - Non-RE | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
30-59 Days | Auto & Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 6,529 | 4,865 |
30-59 Days | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 68 | 413 |
60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 10,803 | $ 19,494 |
As a % of gross loans | 0.06% | 0.14% |
60-89 Days | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 7,971 | $ 1,518 |
60-89 Days | Multifamily and Commercial Mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,124 | 2,115 |
60-89 Days | Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 14,852 |
60-89 Days | Commercial & Industrial - Non-RE | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
60-89 Days | Auto & Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,707 | 1,009 |
60-89 Days | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1 | 0 |
90+ Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 90,901 | $ 90,501 |
As a % of gross loans | 0.55% | 0.63% |
90+ Days | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 42,880 | $ 63,286 |
90+ Days | Multifamily and Commercial Mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 30,179 | 26,556 |
90+ Days | Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 14,852 | 0 |
90+ Days | Commercial & Industrial - Non-RE | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
90+ Days | Auto & Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 847 | 466 |
90+ Days | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,143 | 193 |
Total | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 16,652,026 | $ 14,253,676 |
As a % of gross loans | 100% | 100% |
Total | Single Family - Mortgage & Warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 4,173,833 | $ 3,988,462 |
Total | Multifamily and Commercial Mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3,082,225 | 2,877,680 |
Total | Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 6,199,818 | 4,781,044 |
Total | Commercial & Industrial - Non-RE | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,639,650 | 2,028,128 |
Total | Auto & Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 546,264 | 567,228 |
Total | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 10,236 | $ 11,134 |
LOANS & ALLOWANCE FOR CREDIT_11
LOANS & ALLOWANCE FOR CREDIT LOSSES - ALLOWANCE FOR LOAN LOSS AND RESERVE FOR UNFUNDED LOAN COMMITMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Unfunded Loan Commitment Liabilities: | |||
Balance, beginning of period | $ 10,973 | $ 5,723 | $ 323 |
Provision (Benefit) | (500) | 5,250 | (300) |
Balance, end of period | 10,473 | 10,973 | 5,723 |
Impact of ASC 326 Adoption | |||
Unfunded Loan Commitment Liabilities: | |||
Balance, beginning of period | $ 0 | 0 | 5,700 |
Balance, end of period | $ 0 | $ 0 |
OFFSETTING OF SECURITIES FINA_3
OFFSETTING OF SECURITIES FINANCING AGREEMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Assets: | ||
Securities borrowed, gross assets | $ 134,339 | $ 338,980 |
Securities borrowed, amounts offset | 0 | 0 |
Securities borrowed, net balance sheet amount | 134,339 | 338,980 |
Securities borrowed, financial collateral | 134,339 | 338,980 |
Securities borrowed, net assets | 0 | 0 |
Liabilities: | ||
Securities loaned, gross liabilities | 159,832 | 474,400 |
Securities loaned, amounts offset | 0 | 0 |
Securities loaned, net balance sheet amount | 159,832 | 474,400 |
Securities loaned, financial collateral | 159,832 | 474,400 |
Securities loaned, net liabilities | $ 0 | $ 0 |
CUSTOMER, BROKER-DEALER AND C_3
CUSTOMER, BROKER-DEALER AND CLEARING RECEIVABLES AND PAYABLES (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Receivables: | ||
Customers | $ 309,308 | $ 309,216 |
Receivable from broker-dealers | 57,735 | 101,960 |
Securities failed to deliver | 7,031 | 6,241 |
Total customer, broker-dealer and clearing receivables | 374,074 | 417,417 |
Payables: | ||
Customers | 382,689 | 486,625 |
Payable to broker-dealers | 58,758 | 18,601 |
Securities failed to receive | 4,030 | 6,428 |
Total customer, broker-dealer and clearing payables | $ 445,477 | $ 511,654 |
FURNITURE, EQUIPMENT AND SOFT_3
FURNITURE, EQUIPMENT AND SOFTWARE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Furniture, equipment and software, gross | $ 149,024 | $ 120,819 | |
Less accumulated depreciation and amortization | (95,660) | (84,610) | |
Furniture, equipment and software—net | 53,364 | 36,209 | |
Depreciation and amortization | 12,200 | 13,100 | $ 14,400 |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Furniture, equipment and software, gross | 105,687 | 78,848 | |
Computer hardware and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Furniture, equipment and software, gross | 26,685 | 25,665 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Furniture, equipment and software, gross | 10,689 | 10,608 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Furniture, equipment and software, gross | $ 5,963 | $ 5,698 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - ACTIVITY IN GOODWILL BALANCE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 95,674 | $ 71,222 |
Goodwill from acquisitions | 1,999 | 24,452 |
Goodwill, ending balance | 97,673 | 95,674 |
Goodwill impairment | $ 0 | $ 0 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - SUMMARY OF ACQUIRED INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ 46,987 | $ 35,832 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross Carrying Amount | 101,463 | 96,563 |
Accumulated Amortization | 46,987 | 35,832 |
Net Carrying Amount | 54,476 | 60,731 |
Trademark | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 378 | 378 |
Covenant not to compete | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,380 | 1,060 |
Accumulated Amortization | 1,149 | 1,038 |
Net Carrying Amount | 231 | 22 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | 1,149 | 1,038 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 50,810 | 46,960 |
Accumulated Amortization | 14,598 | 10,654 |
Net Carrying Amount | 36,212 | 36,306 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | 14,598 | 10,654 |
Customer deposit intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 13,545 | 13,545 |
Accumulated Amortization | 9,235 | 7,655 |
Net Carrying Amount | 4,310 | 5,890 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | 9,235 | 7,655 |
Developed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 34,650 | 34,040 |
Accumulated Amortization | 21,405 | 15,905 |
Net Carrying Amount | 13,245 | 18,135 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | 21,405 | 15,905 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 700 | 580 |
Accumulated Amortization | 600 | 580 |
Net Carrying Amount | 100 | 0 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | $ 600 | $ 580 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - ESTIMATED FUTURE AMORTIZATION EXPENSE OF ACQUIRED INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of expense of intangible assets | $ 11,200 | $ 11,100 |
For the fiscal year ending June 30, | ||
2024 | 10,748 | |
2025 | 6,666 | |
2026 | 6,331 | |
2027 | 6,067 | |
2028 | $ 5,233 |
LEASES - NARRATIVE (Details)
LEASES - NARRATIVE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | |||
Operating lease expense | $ 11.4 | $ 10.8 | $ 10.6 |
LEASES - SUPPLEMENTAL BALANCE S
LEASES - SUPPLEMENTAL BALANCE SHEET INFORMATION (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Leases [Abstract] | ||
Right-of-use assets | $ 63,565 | $ 69,196 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Lease liabilities | $ 69,630 | $ 74,878 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities |
Weighted-average remaining lease term | ||
Weighted- average remaining lease term, operating leases (in years) | 6 years 6 months 25 days | 7 years 6 months 10 days |
Weighted-average discount rate | ||
Weighted-average discount rate, operating leases | 3% | 2.79% |
LEASES - SUPPLEMENTAL CASH FLOW
LEASES - SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash Flow, Operating Activities, Lessee [Abstract] | |||
Cash paid for amounts included in the measurement of lease liabilities for operating leases—operating cash flows | $ 10,658 | $ 9,888 | $ 8,875 |
LEASES - MATURITIES OF LEASE LI
LEASES - MATURITIES OF LEASE LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Operating Leases, After Adoption of 842: | ||
Within one year | $ 11,581 | |
After one year and within two years | 11,807 | |
After two years and within three years | 11,504 | |
After three years and within four years | 11,595 | |
After four years and within five years | 10,304 | |
After five years | 20,200 | |
Total lease payments | 76,991 | |
Less: amount representing interest | (7,361) | |
Total Lease Liability | $ 69,630 | $ 74,878 |
DEPOSITS - SUMMARY OF DEPOSIT A
DEPOSITS - SUMMARY OF DEPOSIT ACCOUNTS (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Non-interest bearing | ||
Non-interest bearing, Amount | $ 2,898,150 | $ 5,033,970 |
Interest bearing: | ||
Demand, Amount | $ 3,334,615 | $ 3,611,889 |
Demand, Rate | 2.43% | 0.61% |
Savings, Amount | $ 9,575,781 | $ 4,245,555 |
Savings, Rate | 4.20% | 0.95% |
Total demand and savings, Amount | $ 12,910,396 | $ 7,857,444 |
Total demand and savings, Rate | 3.74% | 0.79% |
Time deposits: | ||
$250 and under, Amount | $ 932,436 | $ 651,392 |
$250 and under, Rate | 3.72% | 1.22% |
Greater than $250, Amount | $ 382,126 | $ 403,616 |
Greater than $250, Rate | 4.36% | 1.41% |
Total time deposits | $ 1,314,562 | $ 1,055,008 |
Total time deposits, Rate | 3.91% | 1.25% |
Total interest bearing, Amount | $ 14,224,958 | $ 8,912,452 |
Total interest bearing, Rate | 3.76% | 0.85% |
Total deposits | $ 17,123,108 | $ 13,946,422 |
Total deposits, Rate | 3.12% | 0.54% |
Time deposits acquired through broker relationships | $ 2,028,500 | $ 1,032,700 |
Time deposits acquired through broker relationships, $250,000 and under | $ 690,900 | $ 250,000 |
DEPOSITS - SCHEDULED MATURITIES
DEPOSITS - SCHEDULED MATURITIES OF TIME DEPOSITS (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Deposits [Abstract] | ||
Time deposits greater than $250 | $ 382,100 | |
Within 12 months | 1,149,993 | |
13 to 24 months | 145,233 | |
25 to 36 months | 8,209 | |
37 to 48 months | 4,208 | |
49 to 60 months | 6,605 | |
Thereafter | 314 | |
Total time deposits | 1,314,562 | $ 1,055,008 |
Deposits from principal officers, directors and their affiliates | $ 5,600 | $ 5,700 |
ADVANCES FROM THE FEDERAL HOM_3
ADVANCES FROM THE FEDERAL HOME LOAN BANK - NARRATIVE (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted average rate percentage | 2.32% | 2.26% |
Advances, amount available immediately | $ 3,052 | |
Advances, amount available with additional collateral | $ 4,524.1 | |
Advances, amount available with additional collateral, term (in years) | 10 years | |
Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest rate percentage | 2.07% | 1.68% |
Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest rate percentage | 2.82% | 2.82% |
ADVANCES FROM THE FEDERAL HOM_4
ADVANCES FROM THE FEDERAL HOME LOAN BANK - SCHEDULED MATURITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Amount | ||
Within one year | $ 0 | $ 27,500 |
After one but within two years | 30,000 | 0 |
After two but within three years | 0 | 30,000 |
After three but within four years | 0 | 0 |
After four but within five years | 0 | 0 |
After five years | 60,000 | 60,000 |
Total | $ 90,000 | $ 117,500 |
Weighted-Average Rate | ||
Within one year | 0% | 2.08% |
After one but within two years | 2.82% | 0% |
After two but within three years | 0% | 2.82% |
After three but within four years | 0% | 0% |
After four but within five years | 0% | 0% |
After five years | 2.07% | 2.07% |
Total | 2.32% | 2.26% |
BORROWINGS, SUBORDINATED NOTE_3
BORROWINGS, SUBORDINATED NOTES AND DEBENTURES - SCHEDULE OF BORROWINGS, SUBORDINATED NOTES AND DEBENTURES (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 364,755 | $ 449,055 |
Less unamortized issuance costs | (2,976) | (3,811) |
Total borrowings, subordinated notes and debentures, net of unamortized issuance costs | 361,779 | 445,244 |
Borrowings from other banks | ||
Debt Instrument [Line Items] | ||
Long-term debt | 27,200 | 111,500 |
Subordinated loans | ||
Debt Instrument [Line Items] | ||
Long-term debt | 7,400 | 7,400 |
Total borrowings, subordinated notes and debentures, net of unamortized issuance costs | 7,400 | |
Subordinated notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 325,000 | 325,000 |
Junior subordinated debentures | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 5,155 | $ 5,155 |
BORROWINGS, SUBORDINATED NOTE_4
BORROWINGS, SUBORDINATED NOTES AND DEBENTURES - SCHEDULE OF MATURITIES OF BORROWINGS, SUBORDINATED NOTES AND DEBENTURES (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Debt Disclosure [Abstract] | ||
Within one year | $ 34,600 | |
After one but within two years | 0 | |
After two but within three years | 0 | |
After three but within four years | 0 | |
After four but within five years | 0 | |
After five years | 330,155 | |
Total | $ 364,755 | $ 449,055 |
BORROWINGS, SUBORDINATED NOTE_5
BORROWINGS, SUBORDINATED NOTES AND DEBENTURES - NARRATIVE (Details) | 1 Months Ended | 2 Months Ended | 12 Months Ended | ||||||
Jan. 28, 2019 USD ($) | Dec. 13, 2004 USD ($) | Feb. 28, 2022 USD ($) | Sep. 30, 2020 USD ($) | Aug. 24, 2023 | Jun. 30, 2023 USD ($) bank | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2019 USD ($) | |
Debt Instrument [Line Items] | |||||||||
Borrowings, subordinated notes and debentures | $ 361,779,000 | $ 445,244,000 | |||||||
Repayment of subordinated loans | 0 | 0 | $ 51,000,000 | ||||||
Borrowings from other banks | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 0 | 0 | |||||||
Federal Reserve Bank Advances | |||||||||
Debt Instrument [Line Items] | |||||||||
Short-term borrowings outstanding | 0 | 0 | |||||||
Maximum borrowing capacity | 2,747,100,000 | $ 2,823,500,000 | |||||||
Federal funds | Borrowings from other banks | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 225,000,000 | ||||||||
Federal funds lines of credit, number of banks | bank | 4 | ||||||||
Secured lines of credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 150,000,000 | ||||||||
Borrowings, subordinated notes and debentures | $ 11,500,000 | ||||||||
Weighted average interest rate of borrowings (as percent) | 7% | ||||||||
Unsecured line of credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 190,000,000 | ||||||||
Borrowings, subordinated notes and debentures | 15,700,000 | ||||||||
Unsecured line of credit | Axos Clearing | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 100,000,000 | ||||||||
Subordinated loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings, subordinated notes and debentures | $ 7,400,000 | ||||||||
Subordinated notes | $ 7,500,000 | ||||||||
Subordinated notes maturity (in months) | 15 months | ||||||||
Effective rate (as percent) | 6.25% | ||||||||
Repayment of subordinated loans | $ 100,000 | ||||||||
Subordinated notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Subordinated notes | $ 150,000,000 | $ 175,000,000 | |||||||
Effective rate (as percent) | 4% | 4.875% | |||||||
Basis spread on variable rate | 227% | ||||||||
Percentage of principal amount redeemed | 4% | ||||||||
Subordinated notes | Secured Overnight Financing Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 4.76% | ||||||||
Junior subordinated debentures | |||||||||
Debt Instrument [Line Items] | |||||||||
Effective rate (as percent) | 7.79% | ||||||||
Trust preferred securities | $ 5,000,000 | ||||||||
Borrowings, subordinated notes and debentures | $ 5,200,000 | ||||||||
Junior subordinated debentures | Secured Overnight Financing Rate | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 0.26161% | ||||||||
Description of variable rate basis | hree-month term SOFR | ||||||||
Junior subordinated debentures | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 2.40% | ||||||||
Description of variable rate basis | three-month LIBOR |
INCOME TAXES - COMPONENTS OF IN
INCOME TAXES - COMPONENTS OF INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Current: | |||
Federal | $ 89,839 | $ 64,800 | $ 61,827 |
State | 54,326 | 43,843 | 37,037 |
Current income taxes | 144,165 | 108,643 | 98,864 |
Deferred: | |||
Federal | (13,084) | (5,600) | (5,562) |
State | (6,502) | (3,800) | (3,266) |
Deferred income taxes | (19,586) | (9,400) | (8,828) |
Total | $ 124,579 | $ 99,243 | $ 90,036 |
INCOME TAXES - EFFECTIVE INCOME
INCOME TAXES - EFFECTIVE INCOME TAX RATE RECONCILIATION (Details) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal tax rate | 21% | 21% | 21% |
Increase (decrease) resulting from: | |||
State taxes—net of federal tax benefit | 9.04% | 9.13% | 8.70% |
Tax credits | (0.45%) | (0.44%) | (0.59%) |
Non-taxable income | (0.03%) | (0.09%) | (0.09%) |
Excess benefit RSU vesting | (0.41%) | (1.31%) | (0.64%) |
Other | (0.30%) | 0.90% | 1.07% |
Effective tax rate | 28.85% | 29.19% | 29.45% |
INCOME TAXES - NET DEFERRED TAX
INCOME TAXES - NET DEFERRED TAX ASSET (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Deferred tax assets: | ||
Allowance for credit losses | $ 64,655 | $ 59,045 |
Lease liability | 22,654 | 24,626 |
Accrued compensation | 7,564 | 2,533 |
Stock-based compensation expense | 6,980 | 5,101 |
Litigation accrual | 5,206 | 3,116 |
Non-accrual loan interest income | 4,962 | 2,608 |
Unrealized net losses on securities | 2,730 | 1,261 |
Net operating loss carryforward | 1,484 | 1,503 |
State taxes | 1,064 | 949 |
Securities impaired | 267 | 270 |
Total deferred tax assets | 117,566 | 101,012 |
Deferred tax liabilities: | ||
Operating lease right-of-use asset | (20,681) | (22,757) |
Depreciation and amortization | (7,533) | (8,838) |
Other assets—prepaids | (2,342) | (2,083) |
FHLB stock dividend | (833) | (842) |
Total deferred tax liabilities | (31,389) | (34,520) |
Net deferred tax asset | 86,177 | 66,492 |
Valuation allowance | (277) | (230) |
Net deferred tax asset, net of valuation allowance | $ 85,900 | $ 66,262 |
INCOME TAXES - NARRATIVE (Detai
INCOME TAXES - NARRATIVE (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward | $ 1,484 | $ 1,503 |
Unrecognized tax benefits | 6,000 | $ 4,300 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward | 3,700 | |
Operating loss carryforwards, annual 382 limitation | 100 | |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward | 3,700 | |
Operating loss carryforwards, annual 382 limitation | 100 | |
Operating loss carryfoward, subject to limitation | 1,600 | |
Operating loss carryforward | 3,000 | |
Valuation allowance | $ 300 |
INCOME TAXES - UNRECOGNIZED TAX
INCOME TAXES - UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance—beginning of period | $ 4,975 | $ 4,156 |
Additions—current year tax positions | 1,603 | 703 |
Additions—prior year tax positions | 518 | 347 |
Reductions—prior year tax positions | (172) | (231) |
Total liability for unrecognized tax positions—end of period | $ 6,924 | $ 4,975 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) | 12 Months Ended | ||||
Oct. 30, 2020 | Aug. 06, 2019 | Jun. 30, 2023 | Jun. 30, 2021 | Apr. 27, 2023 | |
Class of Stock [Line Items] | |||||
Share repurchased amount | $ 49,258,000 | $ 16,757,000 | |||
Cash dividends on preferred stock | $ 103,000 | ||||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Stock repurchased program, authorized amount | $ 100,000,000 | $ 100,000,000 | |||
Share repurchased amount | $ 96,300,000 | $ 49,300,000 | |||
Purchase of treasury stock, outstanding (in shares) | 3,721,014 | 1,321,161 | |||
Average price of shares repurchased (in dollars per share) | $ 25.89 | $ 37.28 | |||
Remaining authorized repurchase amount | $ 3,700,000 | ||||
Series A Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock - Series A redemption (in shares) | 515 | ||||
Preferred stock, dividend rate percent | 6% | ||||
Preferred stock, par value (in dollars per share) | $ 10,000 |
STOCK-BASED COMPENSATION - NARR
STOCK-BASED COMPENSATION - NARRATIVE (Details) $ in Thousands | 12 Months Ended | |||
Jul. 01, 2017 USD ($) tranche | Jun. 30, 2023 USD ($) shares | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation | $ 26,100 | $ 21,200 | $ 20,700 | |
Tax benefit from stock-based compensation expense | 7,500 | 6,200 | 6,100 | |
401(k) plan expense | $ 3,500 | 3,600 | $ 2,400 | |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting (in years) | 3 years | |||
Vesting (percentage) | 33% | |||
Number of shares available for issuance (in shares) | shares | 95,330 | |||
Unrecognized compensation expense related to non-vested awards | $ 43,706 | |||
Total fair value of shares vested in the period | $ 24,600 | |||
Weighted average contractual term | 1 year 2 months 12 days | |||
401(k) plan expense | $ 2,500 | |||
Renewed RSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Renewal term | 1 year | |||
Chief Executive Officer | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Estimated fair value of non-vested awards | $ 20,500 | |||
Number of vesting tranches during requisite service period | tranche | 5 | |||
Requisite service period of equity-based award agreement based on service and market conditions (in years) | 9 years | |||
Equity awards, estimated fair value | $ 5,200 | $ 8,800 | ||
Chief Executive Officer | Restricted Stock Units (RSUs) | Year One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted shares grants, annual vesting percentage | 25% | |||
Chief Executive Officer | Restricted Stock Units (RSUs) | Year Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted shares grants, annual vesting percentage | 25% | |||
Chief Executive Officer | Restricted Stock Units (RSUs) | Year Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted shares grants, annual vesting percentage | 25% | |||
Chief Executive Officer | Restricted Stock Units (RSUs) | Year Four | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted shares grants, annual vesting percentage | 25% | |||
Chief Executive Officer | Renewed RSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period for recognition of unrecognized compensation expense related to non-vested awards (in years) | 5 years | |||
Unrecognized compensation expense related to non-vested awards | $ 10,900 | |||
Historical daily trading history term, equity volatility | 1 year 6 months | |||
Employees and Directors | Restricted Stock Units (RSUs) | Year One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted shares grants, annual vesting percentage | 33.30% | 33.30% | 33.30% | |
Employees and Directors | Restricted Stock Units (RSUs) | Year Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted shares grants, annual vesting percentage | 33.30% | 33.30% | 33.30% | |
Employees and Directors | Restricted Stock Units (RSUs) | Year Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted shares grants, annual vesting percentage | 33.30% | 33.30% | 33.30% | |
2014 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | shares | 5,680,000 | |||
Number of shares available for issuance (in shares) | shares | 1,426,865 |
STOCK-BASED COMPENSATION - UNRE
STOCK-BASED COMPENSATION - UNRECOGNIZED COMPENSATION EXPENSE (Details) - Restricted Stock Units (RSUs) $ in Thousands | Jun. 30, 2023 USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
2024 | $ 22,259 |
2025 | 14,512 |
2026 | 5,769 |
2027 | 928 |
2028 | 238 |
Total | $ 43,706 |
STOCK-BASED COMPENSATION - STAT
STOCK-BASED COMPENSATION - STATUS OF CHANGE IN RESTRICTED STOCK GRANTS (Details) - Restricted Stock Units (RSUs) | 12 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Number of Units | |
Non-vested, beginning balance (in shares) | shares | 1,350,763 |
Granted (in shares) | shares | 751,517 |
Vested (in shares) | shares | (605,724) |
Forfeitures (in shares) | shares | (88,674) |
Non-vested, ending balance (in shares) | shares | 1,407,882 |
Weighted-Average Grant-Date Fair Value | |
Non-vested, beginning balance (in dollars per share) | $ / shares | $ 41.16 |
Granted (in dollars per share) | $ / shares | 38.49 |
Vested (in dollars per share) | $ / shares | 37.11 |
Forfeitures (in dollars per share) | $ / shares | 40.22 |
Non-vested, ending balance (in dollars per share) | $ / shares | $ 41.53 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Common Share | |||
Net income | $ 307,165 | $ 240,716 | $ 215,707 |
Preferred stock dividends | 0 | 0 | (103) |
Preferred stock redemption | 0 | 0 | (86) |
Net income attributable to common stock | $ 307,165 | $ 240,716 | $ 215,518 |
Average common shares issued and outstanding (in shares) | 59,691,541 | 59,523,626 | 59,229,495 |
Earnings per common share (in dollars per share) | $ 5.15 | $ 4.04 | $ 3.64 |
Diluted Earnings Per Common Share | |||
Net income attributable to common stock | $ 307,165 | $ 240,716 | $ 215,518 |
Average common shares issued and outstanding (in shares) | 59,691,541 | 59,523,626 | 59,229,495 |
Dilutive effect of average unvested RSUs (in shares) | 875,313 | 1,087,328 | 1,290,116 |
Total dilutive common shares outstanding (in shares) | 60,566,854 | 60,610,954 | 60,519,611 |
Diluted earnings per common share (in dollars per share) | $ 5.07 | $ 3.97 | $ 3.56 |
Weighted average antidilutive common stock equivalents (in shares) | 4,505 | 9,701 | 69,389 |
COMMITMENTS, CONTINGENCIES, A_2
COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE-SHEET ACTIVITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet risk, ratio of commitments to originate loans to commitments to sell | 10.60% | 42.30% |
Margin deposits available as collateral | $ 260,100 | |
Securities borrowed, financial collateral | 134,339 | $ 338,980 |
Securities loaned, financial collateral | 159,832 | 474,400 |
Available securities used as collateral | 114,200 | |
Available securities used as collateral for OCC margin requirements | 23,400 | |
MUFG Union Bank v. Axos Bank | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Accrued litigation expense | 16,000 | |
Low income housing project partnerships | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to contribute capital | 19,100 | 28,100 |
Loan origination commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet, loan purchase commitment | 2,917,600 | |
Loan origination commitments | Sales commitment | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet, loan origination commitment | 24,900 | |
Loan purchase and origination commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet, loan origination commitment | $ 3,504,300 | |
Fixed Interest Rate | Loan origination commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet, loan purchase commitment | $ 85,100 | |
Off-balance sheet, fixed rate commitments to originate weighted-average rate | 9.14% | 5.75% |
Fixed Interest Rate | Loan origination commitments | Sales commitment | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet, loan origination commitment | $ 8,400 | |
Fixed Interest Rate | Loan purchase and origination commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet, loan purchase commitment | 184,500 | |
Adjustable Interest Rate | Loan origination commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet, loan purchase commitment | $ 2,832,500 | |
Adjustable Interest Rate | Loan purchase and origination commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet, loan purchase commitment | $ 3,319,800 |
MINIMUM REGULATORY CAPITAL RE_3
MINIMUM REGULATORY CAPITAL REQUIREMENTS - NARRATIVE (Details) | Jun. 30, 2023 |
Banking Regulation, Minimum Regulatory Capital Requirements [Abstract] | |
Tier 1 leverage (core) capital to adjusted average assets, Minimum Capital Ratio | 0.040 |
Common equity tier 1 capital (to risk-weighted assets), Minimum Capital Ratio | 4.50% |
Tier 1 capital (to risk-weighted assets), Minimum Capital Ratio | 0.0600 |
Total capital (to risk-weighted assets), Minimum Capital Ratio | 0.080 |
Tier 1 leverage (core) capital to adjusted average assets, Well Capitalized Ratio | 0.050 |
Common equity tier 1 capital (to risk-weighted assets), Well Capitalized Ratio | 6.50% |
Tier 1 capital (to risk-weighted assets), Well Capitalized Ratio | 0.080 |
Total capital (to risk-weighted assets), Well Capitalized Ratio | 0.1000 |
Common equity tier 1 capital (to risk-weighted assets), minimum capital ratio, inclusive of the capital conservation buffer requirement | 7% |
Tier 1 capital (to risk-weighted assets), minimum capital ratio, inclusive of the capital conservation buffer requirement | 8.50% |
Total capital (to risk-weighted assets), minimum capital ratio, inclusive of the capital conservation buffer requirement | 10.50% |
MINIMUM REGULATORY CAPITAL RE_4
MINIMUM REGULATORY CAPITAL REQUIREMENTS - CAPITAL AMOUNTS, RATIOS, AND REQUIREMENTS UNDER BASEL III (Details) $ in Thousands | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) |
Regulatory Capital: | ||
Tier 1 | $ 1,796,352 | $ 1,522,478 |
Common equity tier 1 | 1,796,352 | 1,522,478 |
Total capital (to risk-weighted assets) | 2,269,237 | 1,965,578 |
Assets: | ||
Average adjusted | 20,059,002 | 16,460,684 |
Total risk-weighted | $ 16,414,213 | $ 15,443,152 |
Regulatory Capital Ratios: | ||
Tier 1 leverage (core) capital to adjusted average assets, Ratio | 0.0896 | 0.0925 |
Tier 1 leverage (core) capital to adjusted average assets, Well Capitalized Ratio | 0.050 | |
Tier 1 leverage (core) capital to adjusted average assets, Minimum Capital Ratio | 0.040 | |
Common equity tier 1 capital (to risk-weighted assets), Ratio | 10.94% | 9.86% |
Common equity tier 1 capital (to risk-weighted assets), Well Capitalized Ratio | 6.50% | |
Common equity tier 1 capital (to risk-weighted assets), Minimum Capital Ratio | 4.50% | |
Tier 1 capital (to risk-weighted assets), Ratio | 0.1094 | 0.0986 |
Tier 1 capital (to risk-weighted assets), Well Capitalized Ratio | 0.080 | |
Tier 1 capital (to risk-weighted assets), Minimum Capital Ratio | 0.0600 | |
Total capital (to risk-weighted assets), Ratio | 0.1382 | 0.1273 |
Total capital (to risk-weighted assets), Well Capitalized Ratio | 0.1000 | |
Total capital (to risk-weighted assets), Minimum Capital Ratio | 0.080 | |
Axos Bank | ||
Regulatory Capital: | ||
Tier 1 | $ 1,866,705 | $ 1,615,012 |
Common equity tier 1 | 1,866,705 | 1,615,012 |
Total capital (to risk-weighted assets) | 2,007,006 | 1,725,528 |
Assets: | ||
Average adjusted | 19,284,378 | 15,164,797 |
Total risk-weighted | $ 16,054,633 | $ 14,366,457 |
Regulatory Capital Ratios: | ||
Tier 1 leverage (core) capital to adjusted average assets, Ratio | 0.0968 | 0.1065 |
Common equity tier 1 capital (to risk-weighted assets), Ratio | 11.63% | 11.24% |
Tier 1 capital (to risk-weighted assets), Ratio | 0.1163 | 0.1124 |
Total capital (to risk-weighted assets), Ratio | 0.1250 | 0.1201 |
MINIMUM REGULATORY CAPITAL RE_5
MINIMUM REGULATORY CAPITAL REQUIREMENTS - NET CAPITAL POSITION (Details) - Axos Clearing - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Net capital | $ 35,221 | $ 38,915 |
Less: required net capital | 5,316 | 6,250 |
Excess capital | $ 29,905 | $ 32,665 |
Net capital as a percentage of aggregate debit items | 13.25% | 12.45% |
Net capital in excess of 5% aggregate debit items | $ 21,930 | $ 23,290 |
MINIMUM REGULATORY CAPITAL RE_6
MINIMUM REGULATORY CAPITAL REQUIREMENTS - SECURITIES BUSINESS NARRATIVE (Details) - Axos Clearing, LLC - USD ($) $ in Millions | Jul. 05, 2023 | Jun. 30, 2023 | Jun. 30, 2022 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Deposit requirement | $ 169.5 | $ 286.9 | |
Deposit maintained | 116.8 | 335.8 | |
Subsequent Event | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Deposit requirement | $ 81 | ||
PAB | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Deposit requirement | 26.8 | 29.1 | |
Deposit maintained | $ 32 | $ 36.3 |
EMPLOYEE BENEFIT PLAN (Details)
EMPLOYEE BENEFIT PLAN (Details) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 USD ($) plan | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Compensation Related Costs [Abstract] | |||
401(k) plan, number of plans | plan | 1 | ||
401(k) plan, maximum employee annual contribution | 100% | ||
401(k) plan expense | $ | $ 3.5 | $ 3.6 | $ 2.4 |
PARENT-ONLY CONDENSED FINANCI_3
PARENT-ONLY CONDENSED FINANCIAL INFORMATION - CONDENSED BALANCE SHEETS (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
ASSETS | ||||
Cash and cash equivalents | $ 2,382,086 | $ 1,574,699 | ||
Other assets | 545,053 | 496,835 | ||
TOTAL ASSETS | 20,348,469 | 17,401,165 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Borrowings, subordinated notes and debentures | 361,779 | 445,244 | ||
Accounts payable and other liabilities | 251,114 | 262,972 | ||
Total liabilities | 18,431,310 | 15,758,192 | ||
Stockholders’ equity | 1,917,159 | 1,642,973 | $ 1,400,936 | $ 1,230,846 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 20,348,469 | 17,401,165 | ||
Parent | ||||
ASSETS | ||||
Cash and cash equivalents | 115,948 | 98,640 | ||
Securities | 15,050 | 14,486 | ||
Advances to non-bank subsidiaries | 8,000 | 33,000 | ||
Other assets | 78,932 | 92,235 | ||
Investment in bank subsidiaries | 1,884,525 | 1,634,185 | ||
Investment in non-bank subsidiaries | 235,223 | 187,633 | ||
TOTAL ASSETS | 2,337,678 | 2,060,179 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Borrowings, subordinated notes and debentures | 334,579 | 333,744 | ||
Accounts payable and other liabilities | 85,940 | 83,462 | ||
Total liabilities | 420,519 | 417,206 | ||
Stockholders’ equity | 1,917,159 | 1,642,973 | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 2,337,678 | $ 2,060,179 |
PARENT-ONLY CONDENSED FINANCI_4
PARENT-ONLY CONDENSED FINANCIAL INFORMATION - CONDENSED STATEMENTS OF INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Condensed Financial Statements, Captions [Line Items] | |||
Interest expense | $ 374,017 | $ 52,570 | $ 79,121 |
Net interest income | 783,121 | 607,158 | 538,742 |
Net interest income, after provision for credit losses | 758,371 | 588,658 | 514,992 |
Non-interest income (loss) | 120,488 | 113,363 | 105,261 |
NET INCOME | 307,165 | 240,716 | 215,707 |
Comprehensive income | 303,488 | 235,276 | 219,151 |
Parent | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest income | 1,656 | 1,777 | 1,262 |
Interest expense | 15,909 | 11,183 | 10,891 |
Net interest income | (14,253) | (9,406) | (9,629) |
Net interest income, after provision for credit losses | (14,253) | (9,406) | (9,629) |
Non-interest income (loss) | 11,448 | 6,275 | 217 |
Non-interest expense and tax benefit | 15,866 | 9,741 | 4,360 |
Income (loss) before dividends from subsidiary and equity in undistributed income of subsidiaries | (18,671) | (12,872) | (13,772) |
Dividends from bank subsidiaries | 45,000 | 40,000 | 45,000 |
Dividends from non-bank subsidiaries | 13,750 | 0 | 0 |
Equity in undistributed earnings of subsidiaries | 267,086 | 213,588 | 184,479 |
NET INCOME | 307,165 | 240,716 | 215,707 |
Comprehensive income | $ 303,488 | $ 235,276 | $ 219,151 |
PARENT-ONLY CONDENSED FINANCI_5
PARENT-ONLY CONDENSED FINANCIAL INFORMATION - STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 307,165 | $ 240,716 | $ 215,707 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation, amortization and accretion | 23,387 | 24,596 | 24,124 |
Stock-based compensation expense | 26,100 | 21,242 | 20,685 |
Decrease (increase) in other assets | (13,724) | (107,314) | (7,460) |
Net cash provided by operating activities | 187,959 | 210,282 | 412,582 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from principal repayments on loans | 5,916,179 | 7,220,931 | 5,013,817 |
Purchases of furniture, equipment, software and intangibles | (30,215) | (21,504) | (10,437) |
Net cash used in investing activities | (2,390,351) | (2,776,684) | (866,769) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Tax payments related to settlement of restricted stock units | (6,144) | (14,481) | (10,648) |
Purchase of treasury stock | (48,963) | 0 | (16,757) |
Net (repayment) proceeds of other borrowings | (84,300) | 75,300 | 14,700 |
Payment of debt issuance costs | 0 | (2,120) | (2,748) |
Proceeds from issuance of subordinated notes | 0 | 150,000 | 175,000 |
Redemption of preferred stock, Series A | 0 | 0 | (5,150) |
Cash dividends on preferred stock | 0 | 0 | (103) |
Net cash provided by (used in) financing activities | 3,009,779 | 3,103,324 | (458,555) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 807,387 | 536,922 | (912,742) |
CASH AND CASH EQUIVALENTS—Beginning of year | 1,574,699 | 1,037,777 | 1,950,519 |
CASH AND CASH EQUIVALENTS—End of year | 2,382,086 | 1,574,699 | 1,037,777 |
INCOME TAXES | (124,579) | (99,243) | (90,036) |
Parent | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | 307,165 | 240,716 | 215,707 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation, amortization and accretion | 12,383 | 11,160 | 10,814 |
Stock-based compensation expense | 26,100 | 21,242 | 20,685 |
Equity in undistributed earnings of subsidiaries | (267,086) | (213,588) | (184,479) |
Decrease (increase) in other assets | (3,448) | (5,231) | (25,835) |
Increase (decrease) in other liabilities | (1,069) | (11,564) | (14,550) |
Net cash provided by operating activities | 74,045 | 42,735 | 22,342 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from principal repayments on loans | 25,000 | 0 | 0 |
Purchases of furniture, equipment, software and intangibles | (805) | (817) | (457) |
Investment in subsidiaries | (25,825) | (203,086) | (7,200) |
Net cash used in investing activities | (1,630) | (203,903) | (7,657) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Tax payments related to settlement of restricted stock units | (6,144) | (14,481) | (10,648) |
Purchase of treasury stock | (48,963) | 0 | (16,757) |
Net (repayment) proceeds of other borrowings | 0 | 0 | (51,000) |
Payment of debt issuance costs | 0 | (2,120) | (2,748) |
Proceeds from issuance of subordinated notes | 0 | 150,000 | 175,000 |
Redemption of preferred stock, Series A | 0 | 0 | (5,150) |
Cash dividends on preferred stock | 0 | 0 | (103) |
Net cash provided by (used in) financing activities | (55,107) | 133,399 | 88,594 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 17,308 | (27,769) | 103,279 |
CASH AND CASH EQUIVALENTS—Beginning of year | 98,640 | 126,409 | 23,130 |
CASH AND CASH EQUIVALENTS—End of year | 115,948 | 98,640 | 126,409 |
INCOME TAXES | $ 11,988 | $ 11,927 | $ 8,967 |
BANK-OWNED LIFE INSURANCE (Deta
BANK-OWNED LIFE INSURANCE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Bank Owned Life Insurance [Roll Forward] | |||
Bank-owned life insurance, beginning balance | $ 160,775 | $ 56,555 | $ 6,380 |
Additions | 100,000 | 50,000 | |
Death Benefits | (1,805) | ||
Change in Contract Value | 4,444 | 4,220 | 175 |
Bank-owned life insurance, ending balance | $ 163,414 | $ 160,775 | $ 56,555 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 USD ($) segment | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Segment Reporting [Abstract] | |||
Number of operating segments | segment | 2 | ||
Segment Reporting Information [Line Items] | |||
Net interest income | $ 783,121 | $ 607,158 | $ 538,742 |
Provision for credit losses | 24,750 | 18,500 | 23,750 |
Non-interest income | 120,488 | 113,363 | 105,261 |
Non-interest expense | 447,115 | 362,062 | 314,510 |
Income (Loss) before income taxes | 431,744 | 339,959 | 305,743 |
Goodwill | 97,673 | 95,674 | $ 71,222 |
Total assets | 20,348,469 | 17,401,165 | |
Operating segments | Banking Business | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 776,294 | 597,833 | |
Provision for credit losses | 24,750 | 18,500 | |
Non-interest income | 42,260 | 60,881 | |
Non-interest expense | 390,911 | 274,079 | |
Income (Loss) before income taxes | 402,893 | 366,135 | |
Goodwill | 35,721 | 35,721 | |
Total assets | 19,396,167 | 16,002,714 | |
Operating segments | Securities Business | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 21,042 | 17,580 | |
Provision for credit losses | 0 | 0 | |
Non-interest income | 141,107 | 64,069 | |
Non-interest expense | 102,572 | 84,014 | |
Income (Loss) before income taxes | 59,577 | (2,365) | |
Goodwill | 61,952 | 59,953 | |
Total assets | 899,496 | 1,328,558 | |
Corporate/Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net interest income | (14,215) | (8,255) | |
Provision for credit losses | 0 | 0 | |
Non-interest income | (62,879) | (11,587) | |
Non-interest expense | (46,368) | 3,969 | |
Income (Loss) before income taxes | (30,726) | (23,811) | |
Goodwill | 0 | 0 | |
Total assets | $ 52,806 | $ 69,893 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 23, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Subsequent Event [Line Items] | ||||
Acquisition of marine floor financing loans | $ 1,564 | $ 33,085 | $ 3,619 | |
Subsequent Event | Marine Floor Financing Loans | ||||
Subsequent Event [Line Items] | ||||
Acquisition of marine floor financing loans | $ 62,000 | |||
Payments to acquire loan servicing rights and client lists | $ 2,000 |