Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2019 | Nov. 12, 2019 | |
Cover [Abstract] | ||
Entity Registrant Name | Oritani Financial Corp. | |
Entity Central Index Key | 0001483195 | |
Current Fiscal Year End Date | --06-30 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 45,153,395 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-34786 | |
Entity Tax Identification Number | 30-0628335 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 370 Pascack Road | |
Entity Address, City or Town | Township of Washington | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07676 | |
City Area Code | 201 | |
Local Phone Number | 664-5400 | |
Trading Symbol | ORIT | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Assets | ||
Cash on hand and in banks | $ 20,312 | $ 19,145 |
Federal funds sold and short term investments | 6,831 | 7,366 |
Cash and cash equivalents | 27,143 | 26,511 |
Loans, net | 3,421,268 | 3,491,322 |
Equity securities | 1,344 | 1,358 |
Debt securities available for sale, at fair value | 30,578 | 32,752 |
Debt securities held to maturity, fair value of $325,054 and $334,179, respectively. | 321,871 | 332,215 |
Bank Owned Life Insurance (at cash surrender value) | 101,490 | 100,872 |
Federal Home Loan Bank of New York ("FHLB") stock, at cost | 23,007 | 25,925 |
Accrued interest receivable | 11,979 | 11,935 |
Real estate owned | 0 | 557 |
Office properties and equipment, net | 14,796 | 12,904 |
Deferred tax assets, net | 32,231 | 31,045 |
Other assets | 3,951 | 3,120 |
Total Assets | 3,989,658 | 4,070,516 |
Liabilities | ||
Deposits | 2,936,546 | 2,923,244 |
Borrowings | 426,563 | 521,555 |
Advance payments by borrowers for taxes and insurance | 23,952 | 24,607 |
Other liabilities | 73,297 | 71,963 |
Total liabilities | 3,460,358 | 3,541,369 |
Stockholders' Equity | ||
Common stock, $0.01 par value; 150,000,000 shares authorized; 56,245,065 shares issued; 45,100,052 shares outstanding at September 30, 2019 and 45,097,052 shares outstanding at June 30, 2019. | 562 | 562 |
Additional paid-in capital | 515,868 | 515,491 |
Restricted Stock Awards | (190) | (216) |
Treasury stock, at cost; 11,145,013 shares at September 30, 2019 and 11,148,013 shares at June 30, 2019. | (153,050) | (153,091) |
Unallocated common stock held by the employee stock ownership plan | (14,733) | (15,085) |
Retained income | 183,533 | 182,032 |
Accumulated other comprehensive income, net of tax | (2,690) | (546) |
Total Stockholders' Equity | 529,300 | 529,147 |
Total Liabilities and Stockholders' Equity | $ 3,989,658 | $ 4,070,516 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Assets | ||
Debt securities held to maturity, fair value | $ 325,054 | $ 334,179 |
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) | 56,245,065 | 56,245,065 |
Common stock, shares outstanding (in shares) | 45,100,052 | 45,097,052 |
Treasury stock, shares (in shares) | 11,145,013 | 11,148,013 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Interest income: | ||
Interest on mortgage loans | $ 37,257 | $ 35,952 |
Dividends on FHLB stock | 405 | 448 |
Dividends on equity securities | 11 | 10 |
Interest on debt securities available for sale | 184 | 240 |
Interest on debt securities held to maturity | 1,986 | 1,929 |
Interest on federal funds sold and short term investments | 54 | 22 |
Total interest income | 39,897 | 38,601 |
Interest expense: | ||
Deposits | 12,289 | 9,037 |
Borrowings | 3,145 | 3,269 |
Total interest expense | 15,434 | 12,306 |
Net interest income before provision for loan losses | 24,463 | 26,295 |
Reversal of provision for loan losses | 0 | (2,000) |
Net interest income after provision for loan losses | 24,463 | 28,295 |
Non-interest income: | ||
Fees and service charges | 367 | 312 |
Bank-owned life insurance | 618 | 624 |
Net gains (losses) on sale of OREO | 29 | 0 |
Change in fair value of equity securities | (14) | (119) |
Other income | 2 | 4 |
Total non-interest income | 1,002 | 821 |
Non-interest expense: | ||
Compensation, payroll taxes and fringe benefits | 6,233 | 6,331 |
Advertising | 142 | 143 |
Office occupancy and equipment expense | 723 | 760 |
Data processing service fees | 540 | 499 |
Federal insurance premiums | 0 | 300 |
Other expenses | 1,209 | 2,594 |
Total non-interest expense | 8,847 | 10,627 |
Income before income tax expense | 16,618 | 18,489 |
Income tax expense (note 11) | 4,318 | 5,092 |
Net income | $ 12,300 | $ 13,397 |
Earnings per basic common share (in dollars per share) | $ 0.28 | $ 0.30 |
Earnings per diluted common share (in dollars per share) | $ 0.28 | $ 0.30 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Net of tax: | ||
Net income | $ 12,300 | $ 13,397 |
Other comprehensive income, net of tax: | ||
Change in unrealized holding gain (loss) on debt securities available for sale | 56 | (119) |
Amortization related to post-retirement obligations | 9 | 8 |
Change in funded status of retirement obligations | (384) | 0 |
Change in unrealized (loss) gain on interest rate swaps | (1,825) | 874 |
Total other comprehensive (loss) income | (2,144) | 763 |
Total comprehensive income | $ 10,156 | $ 14,160 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Shares Outstanding [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Non-vested Restricted Stock Awards [Member] | Treasury Stock [Member] | Un-allocated Common Stock Held by ESOP [Member] | Retained Income [Member] | Accumulated Other Comprehensive Income (Loss), Net of Tax [Member] | Total |
Balance at Jun. 30, 2018 | $ 562 | $ 514,002 | $ (176) | $ (129,433) | $ (16,631) | $ 179,799 | $ 11,223 | $ 559,346 | |
Balance (in shares) at Jun. 30, 2018 | 46,616,646 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 0 | 0 | 0 | 0 | 0 | 13,397 | 0 | 13,397 | |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | 0 | 0 | 763 | 763 | |
Cash dividends declared ($0.25 per share) | 0 | 0 | 0 | 0 | 0 | (11,134) | 0 | (11,134) | |
Purchase of treasury stock | 0 | 0 | 0 | (292) | 0 | 0 | 0 | (292) | |
Purchase of treasury stock (in shares) | (18,788) | ||||||||
Issuance of restricted stock awards | 0 | 0 | (135) | 135 | 0 | 0 | 0 | 0 | |
Issuance of restricted stock awards (in shares) | 10,000 | ||||||||
Compensation cost for stock options and restricted stock | 0 | 43 | 0 | 0 | 0 | 0 | 0 | 43 | |
ESOP shares allocated or committed to be released | 0 | 328 | 0 | 0 | 350 | 0 | 0 | 678 | |
Exercise of stock options | 0 | 0 | 0 | 161 | 0 | (18) | 0 | 143 | |
Exercise of stock options (in shares) | 12,000 | ||||||||
Reclassification due to the adoption of ASU No. 2016-01 at Sep. 30, 2018 | 0 | 0 | 0 | 0 | 0 | 658 | (658) | 0 | |
Balance at Sep. 30, 2018 | 562 | 514,373 | (311) | (129,429) | (16,281) | 182,702 | 11,328 | 562,944 | |
Balance (in shares) at Sep. 30, 2018 | 46,619,858 | ||||||||
Balance at Jun. 30, 2018 | 562 | 514,002 | (176) | (129,433) | (16,631) | 179,799 | 11,223 | 559,346 | |
Balance (in shares) at Jun. 30, 2018 | 46,616,646 | ||||||||
Balance at Jun. 30, 2019 | 562 | 515,491 | (216) | (153,091) | (15,085) | 182,032 | (546) | $ 529,147 | |
Balance (in shares) at Jun. 30, 2019 | 45,097,052 | 45,097,052 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 0 | 0 | 0 | 0 | 0 | 12,300 | 0 | $ 12,300 | |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | 0 | 0 | (2,144) | (2,144) | |
Cash dividends declared ($0.25 per share) | 0 | 0 | 0 | 0 | 0 | (10,800) | 0 | (10,800) | |
Compensation cost for stock options and restricted stock | 0 | 24 | 0 | 0 | 0 | 0 | 0 | 24 | |
ESOP shares allocated or committed to be released | 0 | 385 | 0 | 0 | 352 | 0 | 0 | 737 | |
Exercise of stock options | 0 | 0 | 0 | 41 | 0 | (5) | 0 | 36 | |
Exercise of stock options (in shares) | 3,000 | ||||||||
Vesting of restricted stock awards | 0 | (32) | 26 | 0 | 0 | 6 | 0 | 0 | |
Balance at Sep. 30, 2019 | $ 562 | $ 515,868 | $ (190) | $ (153,050) | $ (14,733) | $ 183,533 | $ (2,690) | $ 529,300 | |
Balance (in shares) at Sep. 30, 2019 | 45,100,052 | 45,100,052 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Consolidated Statements of Stockholders' Equity (Unaudited) [Abstract] | ||
Cash dividend declared per share (in dollars per share) | $ 0.25 | $ 0.25 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 12,300 | $ 13,397 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
ESOP and stock-based compensation expense | 761 | 721 | |
Tax benefit from stock-based compensation | 1 | 1 | |
Depreciation of premises and equipment | 174 | 196 | |
Net amortization and accretion of premiums and discounts on securities | 301 | 324 | |
Reversal of provision for loan losses (note 5) | 0 | (2,000) | |
Amortization and accretion of deferred loan fees, net | (636) | (551) | |
Decrease in deferred taxes | 354 | 595 | |
Fair value adjustment for equity securities | 14 | 119 | |
(Gain) on sale of real estate owned | (29) | 0 | |
Increase in cash surrender value of bank owned life insurance | (618) | (623) | |
Increase in accrued interest receivable | (44) | (631) | |
Increase in other assets | (6,649) | (1,438) | |
Increase in other liabilities | 1,333 | 533 | |
Net cash provided by operating activities | 7,262 | 10,643 | |
Cash flows from investing activities: | |||
Net decrease (increase) in loans receivable | 70,690 | 41,469 | |
Purchase of mortgage loans | 0 | (7,896) | |
Purchase of debt securities held to maturity | (7,469) | 0 | |
Purchase of Federal Home Loan Bank stock | (3,141) | (12,563) | |
Proceeds from payments, calls and maturities of debt securities available for sale | 2,234 | 3,285 | |
Proceeds from payments, calls and maturities of debt securities held to maturity | 17,531 | 15,381 | |
Proceeds from redemption of Federal Home Loan Bank stock | 6,059 | 15,624 | |
Proceeds from sale of real estate owned | 586 | 0 | |
Purchase of fixed assets | (11) | (64) | |
Net cash provided by investing activities | 86,479 | 55,236 | |
Cash flows from financing activities: | |||
Net increase in deposits | 13,302 | 8,897 | |
Purchase of treasury stock | 0 | (292) | |
Dividends paid to shareholders | (10,800) | (11,134) | |
Exercise of stock options | 36 | 143 | |
(Decrease) increase in advance payments by borrowers for taxes and insurance | (655) | 435 | |
Proceeds from borrowed funds | 0 | 45,000 | |
Repayment of borrowed funds | (94,992) | (115,213) | |
Net cash (used in) provided by financing activities | (93,109) | (72,164) | |
Net increase (decrease) in cash and cash equivalents | 632 | (6,285) | |
Cash and cash equivalents at beginning of period | 26,511 | 34,848 | $ 34,848 |
Cash and cash equivalents at end of period | 27,143 | 28,563 | $ 26,511 |
Cash paid during the period for: | |||
Interest | 15,478 | 12,210 | |
Income taxes | 4,705 | 5,079 | |
Noncash item for lease adoption ASU 2016-02 | $ 2,208 | $ 0 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Sep. 30, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The consolidated financial statements are composed of the accounts of Oritani Financial Corp., its wholly owned subsidiaries, Oritani Bank (the “Bank”), Hampshire Financial LLC (inactive) and Oritani LLC (inactive), and the wholly owned subsidiaries of Oritani Bank; Zorm 2009, LLC, Ormon LLC (Ormon) (inactive), and Oritani Investment Corp., as well as its wholly owned subsidiary, Oritani Asset Corporation (a real estate investment trust), (collectively, the "Company"). Intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all of the adjustments (consisting of normal and recurring adjustments) necessary for the fair presentation of the consolidated financial condition and the consolidated results of operations for the unaudited periods presented have been included. The results of operations and other data presented for the three month period ended September 30, 2019 are not necessarily indicative of the results of operations that may be expected for the fiscal year ending June 30, 2020. Certain information and note disclosures usually included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for the preparation of the Form 10-Q. The consolidated financial statements presented should be read in conjunction with the Company’s audited consolidated financial statements and notes to consolidated financial statements included in the Company’s June 30, 2019 Annual Report on Form 10-K, filed with the SEC on August 28, 2019. The consolidated financial statements have been prepared in conformity with GAAP. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities presented in the Consolidated Balance Sheets at September 30, 2019 and June 30, 2019 and in the Consolidated Statements of Income for the Three Months Ended September 30, 2019 and 2018. Actual results could differ significantly from those estimates. A material estimate that is particularly susceptible to significant changes relates to the determination of the allowance for loan losses. The allowance for loan losses represents management’s best estimate of losses known and incurred in the portfolio that are both probable and reasonable to estimate. While management uses the most current information available to estimate losses on loans, actual losses are dependent on future events and, as such, increases in the allowance for loan losses may be necessary. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. Such agencies may require the Bank to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. |
Earnings Per Share ("EPS")
Earnings Per Share ("EPS") | 3 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share ("EPS") [Abstract] | |
Earnings Per Share ("EPS") | 2. Earnings Per Share ("EPS") Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. The weighted average common shares outstanding includes the average number of shares of common stock outstanding and allocated or committed to be released Employee Stock Ownership Plan shares. Diluted earnings per share is computed using the same method as basic earnings per share, but reflects the potential dilution that could occur if stock options were exercised and converted into common stock. These potentially dilutive shares would then be included in the weighted average number of shares outstanding for the period using the treasury stock method. When applying the treasury stock method, we add the assumed proceeds from option exercises and the average unamortized compensation costs related to stock options. We then divide this sum by our average stock price to calculate shares assumed to be repurchased. The excess of the number of shares issuable over the number of shares assumed to be repurchased is added to basic weighted average common shares to calculate diluted EPS. The following is a summary of the Company’s earnings per share calculations and reconciliation of basic to diluted earnings per share. Three months ended September 30, 2019 2018 (In thousands, except per share data) Net income $ 12,300 $ 13,397 Weighted average common shares outstanding—basic 43,286 44,640 Effect of dilutive stock options outstanding 668 632 Weighted average common shares outstanding—diluted 43,954 45,272 Earnings per share-basic $ 0.28 $ 0.30 Earnings per share-diluted $ 0.28 $ 0.30 For the three months ended September 30, 2019 there were no option shares that could potentially dilute basic earnings per share. For the three months ended September 30, 2018 there were 1,677 option shares, that could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for those periods. |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Sep. 30, 2019 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase Program | 3. Stock Repurchase Program On March 4, 2015, the Board of Directors of the Company authorized a fourth stock repurchase plan pursuant to which the Company was authorized to repurchase up to 5% of the outstanding shares, or 2,205,451 shares. During the twelve months ended June 30, 2019, a total of 1,888,851 shares had been acquired under repurchase programs at a weighted average cost of $15.20 per share. With these purchases, the fourth repurchase plan was completed. Repurchased shares are held as treasury stock and will be available for general corporate purposes. The Company may conduct repurchases in accordance with a Rule 10b5-1 trading plan. |
Equity Incentive Plans
Equity Incentive Plans | 3 Months Ended |
Sep. 30, 2019 | |
Equity Incentive Plans [Abstract] | |
Equity Incentive Plans | 4. Equity Incentive Plans The 2007 Equity Incentive Plan (“the 2007 Equity Plan”) was approved by the Company’s stockholders on April 22, 2008, which authorized the issuance of up to 4,172,817 shares of Company common stock pursuant to grants of incentive and non-statutory stock options, stock appreciation rights, and restricted stock awards. The 2011 Equity Incentive Plan (“2011 Equity Plan”) was approved by the Company’s stockholders on July 26, 2011. The 2011 Equity Plan authorized the issuance of up to 5,790,849 shares of the Company’s common stock pursuant to grants of stock options, restricted stock awards and restricted stock units, with no more than 1,654,528 of the shares issued as restricted stock awards or restricted stock units. Employees and outside directors of the Company or Oritani Bank are eligible to receive awards under the Equity Plans. Stock options are granted at an exercise price equal to the market price of our common stock on the grant date, based on quoted market prices. Stock options generally vest over a five-year service period and expire ten years from issuance. The vesting of the options accelerate upon death or disability, retirement or a change in control and expire 90 days after termination of service, excluding disability or retirement. The Company recognizes compensation expense for all option grants over the awards’ respective requisite service periods. Management estimated the fair values of all option grants using the Black-Scholes option-pricing model. Management estimated the expected life of the options using the simplified method. The Treasury yield in effect at the time of the grant provides the risk-free rate for periods within the contractual life of the option. The Company classified share-based compensation for employees and outside directors within “compensation, payroll taxes and fringe benefits” in the consolidated statements of income to correspond with the same line item as the cash compensation paid. There were no options granted during the three months ended September 30, 2019. The fair value of options granted during the three months ended September 30, 2018 was estimated using the Black-Scholes options-pricing model with the assumptions in the following table. Three Months ended September 30, 2018 Option shares granted 20,000 Expected dividend yield 7.47% Expected volatility 17.68% Risk-free interest rate 2.82% Expected option life (in years) 6.5 The following is a summary of the Company’s stock option activity and related information as of September 30, 2019 and changes therein during the three months then ended: Number of Stock Options Weighted Average Grant Date Fair Value Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Outstanding at June 30, 2019 2,222,691 $ 2.64 $ 12.16 2.4 Exercised (3,000 ) 2.71 11.95 2.0 Outstanding at September 30, 2019 2,219,691 $ 2.64 $ 12.16 2.2 Exercisable at September 30, 2019 2,150,091 $ 2.69 $ 12.05 2.0 The Company recorded $6,000 and $11,000 of share based compensation expense related to options for the three months ended September 30, 2019 and 2018, respectively. Expected future expense related to the non-vested options outstanding at September 30, 2019 is $61,000 over a weighted average period of 3.3 years. Upon exercise of vested options, management expects to draw on treasury stock as the source of the shares. Restricted stock shares vest over a five-year service period on the anniversary date of the grant. Vesting of the restricted stock shares accelerate upon death or disability, retirement or a change in control. The product of the number of shares granted and the grant date market price of the Company’s common stock determines the fair value of restricted shares under the Company’s restricted stock plan. The Company recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period. The following is a summary of the status of the Company’s restricted stock shares as of September 30, 2019 and changes therein during the three months then ended: Number of Shares Awarded Weighted Average Grant Date Fair Value Non-vested at June 30, 2019 16,800 $ 15.97 Vested (2,000 ) 16.15 Non-vested at September 30, 2019 14,800 $ 15.95 The Company recorded $19,000 and $32,000 of share based compensation expense related to the restricted stock shares for the three months ended September 30, 2019 and 2018, respectively. Expected future expense related to the non-vested restricted shares at September 30, 2019 is $191,000 over a weighted average period of 2.9 years. |
Post-retirement Benefits
Post-retirement Benefits | 3 Months Ended |
Sep. 30, 2019 | |
Post-retirement Benefits [Abstract] | |
Post-retirement Benefits | 5. Post-retirement Benefits The Company provides several post-retirement benefit plans to directors and to certain active and retired employees. The Company has a nonqualified Directors’ Retirement Plan ("Retirement Plan"), a nonqualified Benefit Equalization Plan ("BEP Plan"), which provides benefits to employees who are disallowed certain benefits under the Company’s qualified benefit plans, and a Post Retirement Medical Plan ("Medical Plan") for directors and certain eligible employees. Net periodic benefit costs for the three months ended September 30, 2019 and 2018 are presented in the following table: Retirement Plan BEP Plan Medical Plan Three Months Ended September 30, 2019 2018 2019 2018 2019 2018 (In thousands) Service cost $ 35 $ 31 $ — $ — $ 17 $ 11 Interest cost 49 54 11 13 52 59 Amortization of unrecognized: Net loss — — 12 8 1 — Total $ 84 $ 85 $ 23 $ 21 $ 70 $ 70 The service cost component of net periodic benefit cost is included in compensation and employee benefits on the Statements of Income. The other components of net periodic benefit cost, including interest cost and amortization of actuarial gain/loss are included in other expenses on the Statements of Income. |
Loans, net
Loans, net | 3 Months Ended |
Sep. 30, 2019 | |
Loans [Abstract] | |
Loans | 6. Loans, net Loans, net are summarized as follows: September 30, 2019 June 30, 2019 (In thousands) Residential $ 260,651 $ 267,011 Residential commercial real estate 2,018,584 2,086,314 Grocery/credit retail commercial real estate 469,753 482,831 Other commercial real estate 689,078 683,739 Construction and land loans 20,705 9,170 Total loans 3,458,771 3,529,065 Less: Unearned deferred fees and discounts, net 8,895 9,147 Allowance for loan losses 28,608 28,596 Loans, net $ 3,421,268 $ 3,491,322 The Company’s allowance for loan losses is analyzed quarterly and many factors are considered, including changes in the portfolio, delinquencies, nonaccrual loan levels, and other environmental factors. There have been no material changes to the allowance for loan loss methodology as disclosed in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on August 28, 2019. The activity in the allowance for loan losses for the three months ended September 30, 2019 and 2018 is summarized as follows: Three months ended September 30, (In thousands) 2019 2018 Balance at beginning of period $ 28,596 $ 30,562 Reversal of provision for loan losses — (2,000 ) Recoveries of loans previously charged off 12 3 Loans charged off — — Balance at end of period $ 28,608 $ 28,565 The following table provides the three month activity in the allowance for loan losses allocated by loan category at September 30, 2019 and 2018 . The allowance for loan losses allocated to each category is not necessarily indicative of future losses in any particular category and does not restrict the use of the allowance to absorb losses in other categories. Three months ended September 30, 2019 Residential Residential commercial real estate Grocery/credit retail commercial real estate Other commercial real estate Construction and land loans Total (In thousands) Allowance for loan losses: Beginning balance $ 2,321 $ 15,694 $ 3,249 $ 6,968 $ 364 $ 28,596 Charge-offs — — — — — — Recoveries 12 — — — — 12 Provisions (585 ) 405 (97 ) (117 ) 394 — Ending balance $ 1,748 $ 16,099 $ 3,152 $ 6,851 $ 758 $ 28,608 Three Months ended September 30, 2018 Residential Residential commercial real estate Grocery/credit retail commercial real estate Other commercial real estate Construction and land loans Total (In thousands) Allowance for loan losses: Beginning balance $ 1,990 $ 17,259 $ 3,015 $ 7,828 $ 470 $ 30,562 Charge-offs — — — — — — Recoveries 3 — — — — 3 Provisions 107 (1,825 ) 118 (52 ) (348 ) (2,000 ) Ending balance $ 2,100 $ 15,434 $ 3,133 $ 7,776 $ 122 $ 28,565 The following tables detail the amount of loans receivables that are evaluated individually, and collectively, for impairment, and the related portion of allowance for loan loss that is allocated to each loan portfolio segment at September 30, 2019 and June 30, 2019 . At September 30, 2019 Residential Residential commercial real estate Grocery/credit retail commercial real estate Other commercial real estate Construction and land loans Total (In thousands) Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,748 16,099 3,152 6,851 758 28,608 Total $ 1,748 $ 16,099 $ 3,152 $ 6,851 $ 758 $ 28,608 Loans receivable: Individually evaluated for impairment $ 2,090 $ — $ — $ 3,476 $ — $ 5,566 Collectively evaluated for impairment 258,561 2,018,584 469,753 685,602 20,705 3,453,205 Total $ 260,651 $ 2,018,584 $ 469,753 $ 689,078 $ 20,705 $ 3,458,771 At June 30, 2019 Residential Residential commercial real estate Grocery/credit retail commercial real estate Other commercial real estate Construction and land loans Total (In thousands) Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 2,321 15,694 3,249 6,968 364 28,596 Total $ 2,321 $ 15,694 $ 3,249 $ 6,968 $ 364 $ 28,596 Loans receivable: Individually evaluated for impairment $ 5,580 $ — $ — $ 3,758 $ — $ 9,338 Collectively evaluated for impairment 261,431 2,086,314 482,831 679,981 9,170 3,519,727 Total $ 267,011 $ 2,086,314 $ 482,831 $ 683,739 $ 9,170 $ 3,529,065 The Company continuously monitors the credit quality of its loan portfolio. In addition to internal staff, the Company utilizes the services of a third party loan review firm to evaluate the credit quality ratings of its loan receivables. Credit quality is monitored by reviewing certain credit quality indicators. Assets classified as “Satisfactory” are deemed to possess average to superior credit quality, requiring no more than normal attention. Assets classified as “Pass/Watch” have generally acceptable asset quality yet possess higher risk characteristics/circumstances than satisfactory assets. Such characteristics may include strained liquidity, slow pay, stale financial statements or other circumstances requiring greater attention from bank staff. We classify an asset as “Special Mention” if the asset has a potential weakness that warrants management’s close attention. Such weaknesses, if left uncorrected, may result in the deterioration of the repayment prospects of the asset. An asset is considered “Substandard” if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard assets include those characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Assets classified as “Doubtful” have all of the weaknesses inherent in those classified substandard, with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Included in the Substandard caption are all loans that were past due 90 days (or more) and all impaired loans. The following tables provide information about the loan credit quality at September 30, 2019 and June 30, 2019: At September 30, 2019 Satisfactory Pass/Watch Special Mention Substandard Doubtful Total (In thousands) Residential $ 238,533 $ 17,483 $ 1,009 $ 3,626 $ — $ 260,651 Residential commercial real estate 1,998,795 18,253 1,536 — — 2,018,584 Grocery/credit retail commercial real estate 466,915 2,838 — — — 469,753 Other commercial real estate 620,558 60,445 4,417 3,658 — 689,078 Construction and land loans 20,705 — — — — 20,705 Total $ 3,345,506 $ 99,019 $ 6,962 $ 7,284 $ — $ 3,458,771 At June 30, 2019 Satisfactory Pass/Watch Special Mention Substandard Doubtful Total (In thousands) Residential $ 241,524 $ 17,965 $ 351 $ 7,171 $ — $ 267,011 Residential commercial real estate 2,068,384 16,385 1,545 — — 2,086,314 Grocery/credit retail commercial real estate 479,963 2,868 — — — 482,831 Other commercial real estate 617,061 58,219 4,246 4,213 — 683,739 Construction and land loans 9,170 — — — — 9,170 Total $ 3,416,102 $ 95,437 $ 6,142 $ 11,384 $ — $ 3,529,065 The following tables provide information about loans past due at September 30, 2019 and June 30, 2019: At September 30, 2019 30-59 Days Past Due 60-89 Days Past Due 90 days or More Past Due Total Past Due Current Total Loans Nonaccrual (1) (In thousands) Residential $ 2,486 $ 2,226 $ 534 $ 5,246 $ 255,405 $ 260,651 $ 3,014 Residential commercial real estate — — — — 2,018,584 2,018,584 — Grocery/credit retail commercial real estate — — — — 469,753 469,753 — Other commercial real estate 420 187 — 607 688,471 689,078 3,476 Construction and land loans — — — — 20,705 20,705 — Total $ 2,906 $ 2,413 $ 534 $ 5,853 $ 3,452,918 $ 3,458,771 $ 6,490 At June 30, 2019 30-59 Days Past Due 60-89 Days Past Due 90 days or More Past Due Total Past Due Current Total Loans Nonaccrual (2) (In thousands) Residential $ 2,482 $ 1,409 $ 5,164 $ 9,055 $ 257,956 $ 267,011 $ 6,531 Residential commercial real estate — — — — 2,086,314 2,086,314 — Grocery/credit retail commercial real estate — — — — 482,831 482,831 — Other commercial real estate 1,789 — — 1,789 681,950 683,739 3,522 Construction and land loans — — — — 9,170 9,170 — Total $ 4,271 $ 1,409 $ 5,164 $ 10,844 $ 3,518,221 $ 3,529,065 $ 10,053 (1) Included in nonaccrual loans at September 30, 2019 are residential loans totaling $350,000 that were 30-59 days past due; and residential loans totaling $952,000 that were 60-89 days past due; and residential loans totaling $1.2 and other commercial real estate loans totaling $3.5 million that were less than 30 days past due. (2) Included in nonaccrual loans at June 30, 2019 are residential loans totaling $30,000 that were 30-59 days past due; residential loans totaling $768,000 that were 60-89 days past due; and residential loans totaling $568,000 and other commercial real estate loans totaling $2.4 million that were less than 30 days past due. The Company defines an impaired loan as a loan for which it is probable, based on current information, that the Company will not collect all amounts due under the contractual terms of the loan agreement. Loans we individually classify as impaired include multifamily, commercial mortgage and construction loans with balances of $1.0 million or more, unless a condition exists for loans less than $1.0 million that would increase the Bank’s potential loss exposure. At September 30, 2019 and June 30, 2019, impaired loans were primarily collateral-dependent and totaled $5.6 and $9.3 million respectively, with no related allowance for credit losses. The following table provides information about the Company’s impaired loans at September 30, 2019 and June 30, 2019: At September 30, 2019 At June 30, 2019 Recorded Investment Unpaid Principal Balance Allowance Recorded Investment Unpaid Principal Balance Allowance (In thousands) With no related allowance recorded: Residential $ 2,096 $ 2,090 $ — $ 5,580 $ 5,580 $ — Other commercial real estate 3,299 3,476 — 3,938 3,758 — Total $ 5,395 $ 5,566 $ — $ 9,518 $ 9,338 $ — The following tables present the average recorded investment and interest income recognized on impaired loans for the Three Months ended September 30, 2019 and 2018: Three months ended September 30, 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance recorded: Residential $ 2,154 $ 12 $ 5,197 $ 18 Other commercial real estate 3,327 36 3,956 73 $ 5,481 $ 48 $ 9,153 $ 91 Cash basis interest income $ 48 $ 49 Troubled debt restructured loans (“TDRs”) are those loans whose terms have been modified because of deterioration in the financial condition of the borrower. The Company has selectively modified certain borrower’s loans to enable the borrower to emerge from delinquency and keep their loans current. The eligibility of a borrower for a TDR modification depends upon the facts and circumstances of each transaction, which may change from period to period, and involve judgment by management regarding the likelihood that the modification will result in the maximum recovery by the Company. Modifications could include extension of the terms of the loan, reduced interest rates, and forgiveness of accrued interest and/or principal. Once an obligation has been restructured because of such credit problems, it continues to be considered restructured until paid in full or, if the obligation yields a market rate (a rate equal to or greater than the rate the Company was willing to accept at the time of the restructuring for a new loan with comparable risk), until the year subsequent to the year in which the restructuring takes place, provided the borrower has performed under the modified terms for a six month period. Management classifies all TDRs as impaired loans. Included in impaired loans at September 30, 2019 and June 30, 2019, are $1.3 million and $1.5 million, respectively of loans which are deemed TDRs. The following table presents additional information regarding the Company’s TDRs as of September 30, 2019 and June 30, 2019 : Troubled Debt Restructurings at September 30, 2019 Troubled Debt Restructurings at June 30, 2019 Performing Nonperforming Total Performing Nonperforming Total (In thousands) (In thousands) Residential $ — $ 167 $ 167 $ — $ 167 $ 167 Other commercial real estate — 1,085 1,085 236 1,096 1,332 Total $ — $ 1,252 $ 1,252 $ 236 $ 1,263 $ 1,499 Allowance $ — $ — $ — $ — — $ — There were no loan relationships modified in a troubled debt restructuring during the three months ended September 30, 2019 and 2018. There were no payment defaults (90 days or more past due) on loans modified as troubled debt restructurings within twelve months of modification during the three months ended September 30, 2019 and 2018. |
Securities
Securities | 3 Months Ended |
Sep. 30, 2019 | |
Securities [Abstract] | |
Securities | 7. Securities Debt Securities Held to Maturity The following is a comparative summary of debt securities held to maturity at September 30, 2019 and June 30, 2019 : At September 30, 2019 Amortized cost Gross unrecognized gains Gross unrecognized losses Fair value (In thousands) U.S. Government and Federal agency obligations Due in less than one year $ 5,000 $ — $ 9 $ 4,991 Mortgage-backed securities: Residential MBS 203,617 2,276 479 205,414 Commercial MBS 26,788 871 1 27,658 CMO 71,436 470 448 71,458 Corporate Note Due in five to ten years 15,030 503 — 15,533 $ 321,871 $ 4,120 $ 937 $ 325,054 At June 30, 2019 Amortized cost Gross unrecognized gains Gross unrecognized losses Fair value (In thousands) U.S. Government and Federal agency obligations Due in less than one year $ 5,000 $ — $ 21 $ 4,979 Mortgage-backed securities: Residential MBS 207,587 1,952 639 208,900 Commercial MBS 26,952 511 27 27,436 CMO 77,643 434 512 77,565 Corporate Note Due in five to ten years 15,033 266 — 15,299 $ 332,215 $ 3,163 $ 1,199 $ 334,179 The contractual maturities of mortgage-backed securities held to maturity generally exceed 20 years; however, the effective lives are expected to be shorter due to anticipated prepayments and, in the case of CMOs, cash flow priorities. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. The debt securities held to maturity proceeds, fair values pledged, and other than temporary impairment charges information are reflected in the table below: Three Months Ended Three Months Ended At September 30, 2019 September 30, 2018 June 30, 2019 (dollars in thousands) Proceeds from sale of held-to-maturity debt securities $ — $ — $ — Fair value of debt securities held-to-maturity pledged as collateral for advances 6,934 8,500 7,501 Fair value of debt securities held-to-maturity pledged for interest rate swap — — — Fair value of debt securities held-to-maturity pledged as collateral for municipal deposits 18,778 — 19,511 Other than temporary impairment charges on held-to-maturity debt securities — — — At September 30, 2019 Less than 12 months Greater than 12 months Total Fair value Gross unrecognized losses Fair value Gross unrecognized losses Fair value Gross unrecognized losses (In thousands) U.S. Government and Federal agency obligations Due in less than one year $ — $ — $ 4,991 $ 9 $ 4,991 $ 9 Mortgage-backed securities: Residential MBS 63,869 191 41,176 288 105,045 479 Commercial MBS 4,364 1 — — 4,364 1 CMO 17,446 110 28,716 338 46,162 448 $ 85,679 $ 302 $ 74,883 $ 635 $ 160,562 $ 937 At June 30, 2019 Less than 12 months Greater than 12 months Total Fair value Gross unrecognized losses Fair value Gross unrecognized losses Fair value Gross unrecognized losses (In thousands) U.S. Government and Federal agency obligations Due in less than one year $ — $ — $ 4,979 $ 21 $ 4,979 $ 21 Mortgage-backed securities: Residential MBS — — 103,110 639 103,110 639 Commercial MBS — — 4,370 27 4,370 27 CMO — — 45,043 512 45,043 512 $ — $ — $ 157,502 $ 1,199 $ 157,502 $ 1,199 Management evaluated the securities in the above tables and concluded that none of the securities with losses has impairments that are other-than-temporary. The unrecognized losses on securities were caused by interest rate changes and market conditions. Because the decline in fair value is attributable to changes in interest rates and market conditions and not credit quality, and because the Company has no intent to sell and believes it is not more than likely than not that it will be required to sell these securities until a market price recovery or maturity, these securities are not considered other-than-temporarily impaired. Debt Securities Available for Sale The following is a comparative summary of debt securities available for sale at September 30, 2019 and June 30, 2019 : At September 30, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) Mortgage-backed securities: Residential MBS $ 2 $ — $ — $ 2 Commercial MBS 3,882 — 7 3,875 CMO 26,900 4 203 26,701 $ 30,784 $ 4 $ 210 $ 30,578 At June 30, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) Mortgage-backed securities: Residential MBS $ 9 $ — $ — $ 9 Commercial MBS 3,921 — 5 3,916 CMO 29,108 3 284 28,827 $ 33,038 $ 3 $ 289 $ 32,752 The contractual maturities of mortgage-backed securities available for sale generally exceed 20 years; however, the effective lives are expected to be shorter due to anticipated prepayments and, in the case of CMOs, cash flow priorities. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Three Months Ended Three Months Ended At September 30, 2019 September 30, 2018 June 30, 2019 (dollars in thousands) Proceeds from sales of debt securities available for sale $ — $ — $ — Fair value of debt securities available for sale pledged as collateral for advances 12,290 — 12,879 Fair value of debt securities available for sale pledged for interest rate swap — — — Fair value of debt securities available for sale pledged as collateral for municipal deposits — — — Other than temporary impairment charges on debt securities available for sale — — — Gross unrealized losses on debt securities available for sale and the fair value of the related securities, aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2019 and June 30, 2019 were as follows: At September 30, 2019 Less than 12 months Greater than 12 months Total Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses (In thousands) Mortgage-backed securities: Commercial MBS $ 3,875 $ 7 $ — $ — $ 3,875 $ 7 CMO 4,305 8 20,991 195 25,296 203 $ 8,180 $ 15 $ 20,991 $ 195 $ 29,171 $ 210 At June 30, 2019 Less than 12 months Greater than 12 months Total Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses (In thousands) Mortgage-backed securities: Commercial MBS $ 3,916 $ 5 $ — $ — $ 3,916 $ 5 CMO — $ — 27,063 284 $ 27,063 $ 284 $ 3,916 $ 5 $ 27,063 $ 284 $ 30,979 $ 289 Management evaluated the securities in the above tables and concluded that none of the securities with losses has impairments that are other-than-temporary. The unrealized losses on securities were caused by interest rate changes and market conditions. Because the decline in fair value is attributable to changes in interest rates and market conditions and not credit quality, and because the Company has no intent to sell and believes it is not more than likely than not that it will be required to sell these securities until a market price recovery or maturity, these securities are not considered other-than-temporarily impaired. Equity Securities The Company's portfolio of equity securities had an estimated fair value of $1.3 million and $1.4 million at September 30, 2019 and June 30, 2019, respectively. Equity Securities are reported at estimated fair value on the Company's Consolidated Balance Sheets. The Company adopted FASB Accounting Standard Update ("ASU") 2016-01 on July 1, 2018. The ASU supersedes the guidance to classify equity securities with readily determinable fair value into different categories and requires equity securities to be measured at fair value with changes in the fair value recognized through net income rather than accumulated other comprehensive income (loss). Upon adoption, the Company recorded an after tax cumulative-effect adjustment of $658,000 in the consolidated statement of stockholders' equity, reclassified its equity securities out of available for sale securities to equity securities on the consolidated balance sheets for all periods presented, and recognized unrealized changes in fair value through earnings. For periods prior to the adoption of ASU 2016-01, unrealized changes in fair value of equity securities were included in accumulated other comprehensive income (loss). Unrealized changes in fair value of equity securities recognized through income for the three months ended September 30, 2019 and 2018 is a net loss of $14,000 and $119,000, respectively. There were no sales of equity securities for the three months ended September 30, 2019 and 2018. |
Deposits
Deposits | 3 Months Ended |
Sep. 30, 2019 | |
Deposits [Abstract] | |
Deposits | 8. Deposits Deposits include checking (non-interest and interest-bearing demand deposits), money market, savings and time deposits. We had brokered deposits totaling $451.6 million and $471.2 million at September 30, 2019 and June 30, 2019, respectively. Total municipal deposits were $520.8 million and $512.0 million at September 30, 2019 and June 30, 2019, respectively. Municipal deposits are secured by a Federal Home Loan Bank of New York municipal deposit letter of credit in the amount of $120.0 million and $150.0 million at September 30, 2019 and June 30, 2019, respectively. Municipal deposits are also secured by debt securities held to maturity with fair values of $18.8 million at September 30, 2019. As of September 30, 2019 and June 30, 2019, the aggregate amount of outstanding time deposits in amounts greater than $250,000 was $224.3 million and $253.5 million, respectively. Deposit balances are summarized as follows: September 30, 2019 June 30, 2019 (Dollars in thousands) Checking accounts $ 688,899 $ 668,453 Money market deposit accounts 651,976 622,670 Savings accounts 378,272 383,763 Time deposits 1,217,399 1,248,358 $ 2,936,546 $ 2,923,244 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Sep. 30, 2019 | |
Derivatives and Hedging Activities [Abstract] | |
Derivatives and Hedging Activities | 9. Derivatives and Hedging Activities Oritani is exposed to certain risks regarding its ongoing business operations. Derivative instruments are used to offset a portion of the Company's interest rate risk. Specifically, the Company has utilized interest rate swaps to partially offset the interest rate risk inherent in the Company's balance sheet. Oritani recognizes interest rate swaps as either assets or liabilities at fair value in the statement of financial condition with an offset recorded in Other Comprehensive Income and any ineffectiveness is recorded in earnings. The interest rate swaps have been designed as cash flow hedges. For all cash flow hedges the balance sheet item that has been hedged is brokered deposits. Oritani is exposed to credit-related losses in the event of nonperformance by the counterparties to the agreements. Oritani controls the credit risk through monitoring procedures and does not expect the counterparty to fail their obligations. Oritani only deals with primary dealers and believes that the credit risk inherent in these contracts was not significant during and at period end. Oritani has the right to demand that the counterparty post collateral to cover any market value shortfall of the counterparty regarding the transaction. At September 30, 2019, Oritani had nineteen interest rate swap agreements with a total notional outstanding of $ million all feature exchanges of fixed for variable payments covering various hedging periods maturing between June 2020 and June 2025 . The Company is paying fixed rates on these swaps ranging from to , in exchange for receiving variable payments linked to The following table presents amounts included in the consolidated balance sheets related to the fair value of derivative financial instruments at September 30, 2019 and June 30, 2019. At September 30, 2019 At June 30, 2019 . Balance Sheet Line Item Notional Amount Fair Value Notional Amount Fair Value Cash flow hedge interest rate swaps Gross unrealized gain Other Assets $ 150,000 $ 884 $ 185,000 $ 1,624 Gross unrealized loss Other Liabilities 195,000 (3,248 ) 170,000 (1,408 ) Gross notional / net fair value $ 345,000 $ (2,364 ) $ 355,000 $ 216 Average rate paid 1.54 % 1.50 % Average rate received 2.30 % 2.37 % Weighted average maturity (years) 3.2 3.3 Gains (losses) included in the consolidated statements of income and in comprehensive income, on a pre-tax basis, related to cash flow hedge interest rate swaps are as follows: Three Months Ended September 30, 2019 2018 (Dollars in thousands) Amount of (loss) gain recognized in other comprehensive income $ (1,858 ) $ 1,851 Amount of unrealized gain (loss) reclassified from accumulated other comprehensive loss to interest expense 722 616 Net change in unrealized (loss) gain on interest rate swaps, before taxes $ (2,580 ) $ 1,235 Ineffectiveness recognized during the three months ended September 30, 2019 and 2018 was immaterial. There were $1.9 million and $96,000, accumulated net after-tax losses related to effective cash flow hedges included in accumulated other comprehensive loss at September 30, 2019 and June 30, 2019, respectively. Amounts reported in accumulated other comprehensive income related to cash flow interest rate swaps are reclassified to interest expense as interest payments are made. There were no securities pledged for the swaps at September 30, 2019 and June 30, 2019. At September 30, 2019 and June 30, 2019, we had cash of $2.9 million and $710,000 pledged for swaps. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | 10. Income Taxes The Company files income tax returns in the United States federal jurisdiction and in New Jersey, and New York city and state jurisdictions. The Company is no longer subject to federal and state income tax examinations by tax authorities for years prior to 2014. Currently, the Company is not under examination by any taxing authority. The Company's federal return for the tax year ended December 31, 2015 was audited during fiscal 2019. The enactment of the Tax Cuts and Jobs Act on December 22, 2017 lowered the federal corporate income tax rate to 21% beginning in 2018 from a maximum rate of 35% in 2017. The benefit of the lower federal tax rate was partially offset by the impact of New Jersey (“NJ”) tax legislation enacted on July 1, 2018 that imposes a temporary surtax of 2.5% for tax years beginning on or after January 1, 2018 through December 31, 2019, and 1.5% for tax years beginning on or after January 1, 2020 through December 31, 2021. The legislation also requires mandatory unitary combined filing for members of an affiliated group for tax years beginning on or after January 1, 2019. The legislation required a revaluation of our deferred tax assets/liabilities based on the rates at which they are expected to reverse in the future. The revaluation of the Company's deferred tax balances resulted in a one-time non-cash charge of $477,000 which was included in income tax expense for the three months ended September 30, 2018. Excluding the impact of the revaluation, the effective tax rate for the 2018 period was 25%. The increase in effective tax rate in the 2019 period was the result of the NJ tax legislation. The Company reports earnings on a fiscal year basis and the increased income tax implications of the NJ legislation were partially recognized by the Company ratably over the course of the fiscal year ending June 30, 2019. The full impact of the legislation will be recognized in the fiscal year ending June 30, 2020. The Company's estimated effective tax rate for the fiscal year ending June 30, 2020 is 26%. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Sep. 30, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 11. Fair Value Measurements The Company adopted FASB ASC 820, “Fair Value Measurements and Disclosures, Basis of Fair Value Measurement: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability; Level 3: Price or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported with little or no market activity). A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Following are descriptions of the valuation methodologies and key inputs used to measure assets recorded at fair value, as well as a description of the methods and significant assumptions used to estimate fair value disclosures for financial instruments not recorded at fair value in their entirety on a recurring basis. The descriptions include an indication of the level of the fair value hierarchy in which the assets or liabilities are classified. Cash and Cash Equivalents Due to their short-term nature, the carrying amount of these instruments approximates fair value. Securities The Company records securities held to maturity at amortized cost. Equity securities and securities available for sale are measured at fair value on a recurring basis. The majority of the Company’s securities are fixed income instruments that are not quoted on an exchange, but are traded in active markets. The fair values for securities are obtained from an independent nationally recognized third-party pricing service. Our independent pricing service provides us with prices which are primarily categorized as Level 2, as quoted prices in active markets for identical assets are generally not available for the majority of securities in our portfolio. Pricing services may employ modeling techniques in determining pricing. Inputs to these models include market spreads, dealer quotes, prepayment speeds, credit information and the instrument’s terms and conditions, among other things. Management compares the pricing to a second independent pricing source for reasonableness. Equity securities are reported at Level 1 based on quoted market prices for identical securities in active markets. FHLB of New York Stock FHLB of New York Stock is recorded at cost (par value) and evaluated for impairment based on the ultimate recoverability of the par value. There is no active market for this stock and no significant observable market data is available for this instrument. The Company considers the profitability and asset quality of FHLB, dividend payment history and recent redemption experience, when determining the ultimate recoverability of the par value. The Company believes its investment in FHLB stock is ultimately recoverable at par. The carrying amount of FHLB stock approximates fair value, since this is the amount for which it could be redeemed. Loans The Company does not record loans at fair value on a recurring basis. However, periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements. The estimated fair value for significant nonperforming loans and impaired loans are valued utilizing independent appraisals of the collateral securing such loans that rely upon quoted market prices for similar assets in active markets. These appraisals include adjustments to comparable assets based on the appraisers’ market knowledge and experience. The appraisals may be adjusted downward by management (0-20% adjustment rate and 0-10% risk premium rate), as necessary, for changes in relevant valuation factors subsequent to the appraisal date and the timing of anticipated cash flows (0-8% discount rate). The Company classifies impaired loans as Level 3. In connection with the adoption of ASU 2016-01 on July 1, 2018, the Company refined the methodology used to estimate the fair value of the loan portfolio using an exit price notion resulting in prior periods no longer being comparable. The exit price notion requires determination of the price at which willing market participants would transact at the measurement date under current market conditions depending on facts and circumstances, such as origination rates, credit risk, transaction costs, liquidity, and other adjustments. The application of an exit price notion requires the use of significant judgment. Estimated fair value for loans is determined using portfolios of loans with similar financial characteristics. Loans are segregated by type such as residential, multifamily, commercial real estate, construction, land and consumer. Each loan category is further segmented into fixed and adjustable rate interest terms. At September 30, 2019 and June 30, 2019, estimated fair value of loans is determined using a discounted cash flow model that employs an exit discount rate that reflects the current market pricing for loans with similar characteristics and remaining maturity, adjusted by underwriting uncertainty, liquidity and credit discounts. The Company classifies the estimated fair value of loans held for investment as Level 3. Real Estate Owned Assets acquired through foreclosure or deed in lieu of foreclosure are recorded at fair value less estimated selling costs when acquired, thus establishing a new cost basis. Subsequently, real estate owned is carried at the lower of cost or fair value, less estimated selling costs. Fair value is generally based on independent appraisals. These appraisals include adjustments to comparable assets based on the appraisers’ market knowledge and experience, and are considered Level 3. When an asset is acquired, the excess of the loan balance over fair value, less estimated liquidation costs (5%-20% discount rate), is charged to the allowance for loan losses. If the estimated fair value of the asset declines, a write-down is recorded through expense. The valuation of foreclosed assets is subjective in nature and may be adjusted in the future because of changes in the economic conditions. Deposit Liabilities The estimated fair value of deposits with no stated maturity, such as checking, savings, and money market accounts, is equal to the amount payable on demand at the balance sheet date. The estimated fair value of term deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. The Company classifies the estimated fair value of term deposits as Level 2. Borrowings The book value of overnight borrowings approximates the estimated fair value. The estimated fair value of term borrowings is calculated based on the discounted cash flow of contractual amounts due, using market rates currently available for borrowings of similar amount and remaining maturity. The Company classifies the estimated fair value of term borrowings as Level 2. Derivatives The fair value of our interest rate swaps was estimated using Level 2 inputs. The fair value was determined using third party prices that are based on discounted cash flow analyses using observed market interest rate curves and volatilities. Commitments to Extend Credit and to Purchase or Sell Securities The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of commitments to purchase or sell securities is estimated based on bid quotations received from securities dealers. The fair value of off-balance-sheet commitments approximates book value. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The following tables present the recorded amount of assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 and June 30, 2019 by level within the fair value hierarchy. There were no transfers between levels within the fair value hierarchy during the three months ended September 30, 2019 . Fair Value as of September 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) (In thousands) Assets: Equity Securities $ 1,344 $ 1,344 $ — $ — Mortgage-backed securities available for sale Residential MBS 2 — 2 — Commercial MBS 3,875 — 3,875 — CMO 26,701 — 26,701 — Total debt securities available for sale 30,578 — 30,578 — Interest rate swaps 884 — 884 — Total assets measured on a recurring basis $ 32,806 $ 1,344 $ 31,462 $ — Liabilities: Interest rate swaps $ (3,248 ) $ — $ (3,248 ) $ — Fair Value as of June 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) (In thousands) Assets: Equity Securities $ 1,358 $ 1,358 $ — $ — Mortgage-backed securities available for sale Residential MBS 9 — 9 — Commercial MBS 3,916 — 3,916 — CMO 28,827 — 28,827 — Total debt securities available for sale 32,752 — 32,752 — Interest rate swaps 1,624 — 1,624 — Total assets measured on a recurring basis $ 35,734 $ 1,358 $ 34,376 $ — Liabilities: Interest rate swaps $ (1,408 ) $ — $ (1,408 ) $ — Assets Recorded at Fair Value on a Nonrecurring Basis The Company may be required, from time to time, to measure the fair value of certain other financial assets on a nonrecurring basis in accordance with U.S. GAAP. The adjustments to fair value usually result from the application of lower-of-cost-or-fair value accounting or write downs of individual assets. The following tables present the recorded amount of assets measured at fair value on a nonrecurring basis as of September 30, 2019 and June 30, 2019 by level within the fair value hierarchy. Fair Value as of September 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) (In thousands) Assets: Impaired loans: Other commercial real estate $ 1,016 $ — $ — $ 1,016 Total impaired loans 1,016 — — 1,016 Real estate owned Total real estate owned — — — — Total assets measured on a non-recurring basis $ 1,016 $ — $ — $ 1,016 Fair Value as of June 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) (In thousands) Assets: Impaired loans: Other commercial real estate $ 1,164 $ — $ — $ 1,164 Total impaired loans 1,164 — — 1,164 Real estate owned Other commercial real estate 557 — — 557 Total real estate owned 557 — — 557 Total assets measured on a non-recurring basis $ 1,721 $ — $ — $ 1,721 Estimated Fair Value of Financial Instruments The following tables present the carrying amount, estimated fair value, and placement in the fair value hierarchy of financial instruments not recorded at fair values in their entirety on a recurring basis on the Company’s balance sheet at September 30, 2019 and June 30, 2019 . These tables exclude financial instruments for which the carrying amount approximates fair value. Financial instruments for which the carrying amount approximates fair value include cash and cash equivalents, FHLB stock, non-maturity deposits, overnight borrowings, and accrued interest. September 30, 2019 Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) (In thousands) Financial assets: Debt securities held to maturity $ 321,871 $ 325,054 $ — $ 325,054 $ — Loans, net 3,421,268 3,408,434 — — 3,408,434 Financial liabilities: Time deposits 1,217,399 1,228,591 — 1,228,591 — Term borrowings 426,563 431,197 — 431,197 — June 30, 2019 Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) (In thousands) Financial assets: Debt securities held to maturity $ 332,215 $ 334,179 $ — $ 334,179 $ — Loans, net 3,491,322 3,469,016 — — 3,469,016 Financial liabilities: Time deposits 1,248,358 1,255,282 — 1,255,282 — Term borrowings 490,755 493,674 — 493,674 — Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial assets or liabilities include the mortgage banking operation, deferred tax assets, and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
Other Comprehensive Income
Other Comprehensive Income | 3 Months Ended |
Sep. 30, 2019 | |
Other Comprehensive Income [Abstract] | |
Other Comprehensive Income | 12. Other Comprehensive Income The components of comprehensive income, both gross and net of tax, are presented for the periods below (in thousands): Three Months ended September 30, 2019 2018 Gross: Net income $ 16,618 $ 18,489 Other comprehensive income Change in unrealized holding gain (loss) on debt securities available for sale 79 (153 ) Amortization related to post-retirement obligations 13 8 Change in funded status of retirement obligations (547 ) — Net change in unrealized (loss) gain on interest rate swaps (2,580 ) 1,235 Total other comprehensive (loss) income (3,035 ) 1,090 Total comprehensive income 13,583 19,579 Tax applicable to: Net income 4,318 5,092 Other comprehensive income Change in unrealized holding gain (loss) on debt securities available for sale 23 (34 ) Amortization related to post-retirement obligations 4 — Change in funded status of retirement obligations (163 ) — Net change in unrealized (loss) gain on interest rate swaps (755 ) 361 Total other comprehensive (loss) income (891 ) 327 Total comprehensive income 3,427 5,419 Net of tax: Net income 12,300 13,397 Other comprehensive income Change in unrealized holding gain (loss) on debt securities available for sale 56 (119 ) Amortization related to post-retirement obligations 9 8 Change in funded status of retirement obligations (384 ) — Net change in unrealized (loss) gain on interest rate swaps (1,825 ) 874 Total other comprehensive (loss) income (2,144 ) 763 Total comprehensive income $ 10,156 $ 14,160 The following table presents the changes in the components of accumulated other comprehensive income (loss), net of tax, for the three months ended September 30, 2019 and 2018 (in thousands): Unrealized Holding (Loss) Gain on Debt Securities Available for Sale Post Retirement Obligations Unrealized Holding Gain (Loss) on Interest Rate Swaps Accumulated Other Comprehensive Income (Loss), Net of Tax Balance at June 30, 2019 $ (162 ) $ (288 ) $ (96 ) $ (546 ) Net change 56 (375 ) (1,825 ) (2,144 ) Balance at September 30, 2019 $ (106 ) $ (663 ) $ (1,921 ) $ (2,690 ) Balance at June 30, 2018 $ (86 ) $ (314 ) $ 11,623 $ 11,223 Net change (119 ) 8 874 763 Reclassification due to the adoption of ASU No. 2016-01 (658 ) — — (658 ) Balance at September 30, 2018 $ (863 ) $ (306 ) $ 12,497 $ 11,328 The following table sets forth information about the amount reclassified from accumulated other comprehensive income (loss) to the consolidated statement of income and the affected line item in the statement where net income is presented (in thousands). Accumulated Other Comprehensive Income (Loss) Component Affected line item in the Consolidated Statement of Income Three Months ended September 30, 2019 Three Months ended September 30, 2018 Amortization related to post-retirement obligations (1) Net loss Other expenses $ 13 $ 8 Total before tax 13 8 Income tax benefit 4 — Net of tax $ 9 $ 8 (1) These accumulated other comprehensive income (loss) components are included in the computations of net periodic benefit cost. See Note 5. Post-retirement Benefits. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 13. Revenue Recognition Effective July 1, 2018 the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers ("Topic 606") and all subsequent ASUs that modified Topic 606. For further details on ASU No. 2014-09 see Note 14 - "Recent Accounting Pronouncements." The adoption of ASU No. 2014-09 did not have a material impact on the measurement or recognition of revenue as it does not apply to revenue associated with financial instruments, including revenue from loans and investment securities, which is the Company's primary source of revenue. In addition, certain non-interest income streams such as income on bank owned life insurance, gains on securities transactions, and other non-interest income are not in the scope of the guidance. The Company's revenue streams that are within the scope of Topic 606 include service charges on deposit accounts, ATM and card interchange fees, and sales of OREO. However, the revenue recognition of these revenue streams did not change upon adoption of Topic 606 as our customer contracts generally do not have performance obligations and fees are assessed and collected as the transaction occurs. The following table summarizes non-interest income for the periods indicated (in thousands): Three Months Ended September 30, 2019 2018 unaudited Fees and service charges for customer services: Service charges on deposits $ 112 $ 125 ATM and card interchange fees 141 131 Service charges on loans 114 56 Total fees and service charges $ 367 $ 312 Bank owned life insurance 618 624 Gains (losses) on sale of OREO 29 — Change in fair value of equity securities (14 ) (119 ) Other income 2 4 Total non-interest income $ 1,002 $ 821 Service charges on deposit accounts include account maintenance fees, overdraft fees, insufficient fund fees, wire fees, and other deposit related fees. ATM and card interchange fees include: · fees generated when an Oritani cardholder uses a non-Oritani ATM · a non-Oritani cardholder uses an Oritani ATM · fees earned whenever the Bank's debit cards are processed through card payment networks such as Visa · fees earned through partnering with a third-party service firm to provide Oritani branded credit cards The Company's performance obligation for service charges on deposit accounts and ATM and card interchange fees is satisfied as services are rendered and related revenue is recognized immediately or in the month of performance of services. Out-of-scope non-interest income primarily consists of gains and losses on the sale of investments, loans, and derivatives, and service charges on loans such as loan prepayment fees and loan servicing fees. |
Leases
Leases | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | 14. Leases On July 1, 2019, The Company adopted ASU 2016-02, “Leases (Topic 842)”, which requires recognition of a right-of-use (“ROU”) asset and lease liability on the balance sheet for operating and financing leases. The Company elected the transition method under which we recognize and measure leases that exist at the effective date and prior comparative periods are not adjusted. In addition, the Company elected the package of practical expedients and did not reassess whether an arrangement is or contains a lease, did not reassess lease classification, and did not reassess what qualifies as an initial direct cost. The Company also made accounting policy elections to exclude short-term leases of 12 months or less from the balance sheet and to separate lease and non-lease components from its lease obligations with the non-lease components being charged to earnings when incurred. The Company’s lease agreements primarily consist of real estate leases for bank premises. The Company’s bank premises operated under lease agreements have all been designated as operating leases. The Company does not have leases designated as finance leases. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company’s lease agreements include options to extend or terminate the lease. The decision to exercise renewal options is based on an assessment of its current business needs and market factors at the time of the renewal. The Company’s leases have remaining lease terms between one to years. The following table present the balance sheet information related to leases: September 30, 2019 (Dollars in thousands) Operating lease right-of-use assets included in Office properties and equipment, net $ 2,055 Operating lease liabilities included in Other liabilities 2,057 Weighted average remaining lease term, in years 4.6 Weighted average discount rate 2.27 % The following table presents the components of total lease cost recognized in the consolidated statements of income and supplemental cash flow information related to leases: Three months ended September 30, 2019 (Dollars in thousands) Lease cost Operating lease cost $ 209 Short-term lease cost 27 Total lease cost (included in Office occupancy and equipment expense) $ 236 Cash paid toward operating lease liabilities $ 233 Future minimum operating lease payments and reconciliation to operating lease liabilities at September 30, 2019: September 30, 2019 (Dollars in thousands) 2020 $ 568 2021 576 2022 389 2023 310 2024 179 Thereafter 248 Total lease payments 2,270 less: imputed interest (213 ) Total operating lease liabilities $ 2,057 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Sep. 30, 2019 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 15. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments". This update revises the methodology for estimating credit losses on loans receivable, held-to-maturity debt securities, unfunded loan commitments, and certain other financial assets measured at amortized cost. Under ASU 2016-13, the current expected credit losses ("CECL") model is based on lifetime expected losses, rather than incurred losses, and requires the recognition of credit loss expense in the statement of income and a related allowance for credit losses on the balance sheet at the time of origination or purchase of a loan receivable or held-to-maturity debt security. Subsequent changes in this estimate are recorded through credit loss expense and related allowance. The CECL model requires the use of not only relevant historical experience and current conditions, but also reasonable and supportable forecasts of future events and circumstances, thus incorporating a broad range of information in developing credit loss estimates, which could result in significant changes to both the timing and amount of credit loss expense and allowance. Under ASU 2016-13, available-for-sale debt securities are evaluated for impairment if fair value is less than amortized cost. Estimated credit losses are recorded through a credit loss expense and an allowance, rather than a write-down of the investment. Changes in fair value that are not credit-related will continue to be recorded in other comprehensive income. Certain additional disclosures are required, including further disaggregation of credit quality indicators for loans receivable by year of origination. This update is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company is reviewing credit loss estimation methodologies and assumptions to be utilized. We anticipate running parallel models during fiscal 2020 to refine our processes and procedures. The Company is evaluating the impact of this update on its consolidated financial statements, the extent of which is indeterminable at this time as it is contingent upon continued testing and refinement of models, methodologies and judgments. Further, the extent of the impact of adoption of CECL will depend on the asset quality of the portfolio, and economic conditions and forecasts at adoption. In January 2016, the FASB issued ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities", which is intended to improve the recognition and measurement of financial instruments. The ASU revises an entity's accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. The disclosure of fair value of the loan portfolio will be impacted as the fair value will be calculated using an exit price. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company adopted this standard effective July 1, 2018. The Company recorded a cumulative effect adjustment for its equity instruments to the balance sheet as of July 1, 2018 in the amount of $658,000, representing the unrealized gain, net of tax at June 30, 2018. The change in fair value of equity securities is realized in the statement of income. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. This ASU requires lessees to put most leases on their balance sheets but recognize expenses in the income statement in a manner similar to current accounting treatment. This ASU changes the guidance on sale-leaseback transactions, initial direct costs and lease execution costs, and , for lessors, modifies the classification criteria and the accounting for sales-type and direct financing leases. A modified retrospective transition is required under which comparative balance sheets from the earliest historical period presented will be revised to reflect what the financials would have looked like were the provisions of the update applied consistently in all prior periods. In July 2018, the FASB issued ASU 2018-11 “Leases (Topic 842) Targeted Improvements” which allows entities adopting ASU No. 2016-02 to choose an additional transition method, under which an entity to initially applies the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The amendment in this update becomes effective for annual periods and interim periods within those annual periods beginning after December 15, 2018. The Company has elected the transition method permitted by ASU No. 2018-11 under which an entity shall recognize and measure leases that exist at the application date and prior comparative periods are not adjusted. For leases existing at the effective date, the Company elected the package of practical expedients and therefore did not reassess whether an arrangement is or contains a lease, did not reassess lease classification, and did not reassess what qualifies as an initial direct cost. The Company also made accounting policy elections to exclude short-term leases of 12 months or less from the balance sheet and to separate and non-lease components from its lease obligations with the non-lease components being charged to earnings when incurred. Upon adoption of the new lease guidance on July 1, 2019, the Company recorded a right-of-use-asset and lease liability of $2.2 million, included in Office properties and equipment, net and Other liabilities, respectively. The new guidance did not have a material impact on the Company’s statement of income or cash flows. See Note 14. “Leases” for additional information. |
Pending Business Combinations
Pending Business Combinations | 3 Months Ended |
Sep. 30, 2019 | |
Pending Business Combinations [Abstract] | |
Pending Business Combinations | 16. On June 25, 2019, Valley National Bancorp (“Valley”) entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Oritani Financial Corp. (“Oritani”), providing for the merger of Oritani with and into Valley, with Valley as the surviving entity (the “Merger”). Immediately following the Merger, Oritani Bank, a New Jersey state-chartered savings bank and wholly-owned subsidiary of Oritani, will merge with and into Valley National Bank, a national banking association and wholly-owned subsidiary of Valley, with Valley National Bank surviving the merger. Subject to the terms and conditions of the Merger Agreement, upon consummation of the Merger, each share of common stock of Oritani will be converted into 1.60 shares of Valley common stock, subject to the payment of cash in lieu of fractional shares. Outstanding Oritani stock options will be converted into options to acquire Valley common stock with the conversion and exercise price to be adjusted to reflect the exchange ratio. Oritani restricted stock will vest and will be converted into the right to receive, at the effective time of the Merger, the same consideration as holders of Oritani common stock are receiving in the Merger. Kevin J. Lynch, director, Chief Executive Officer and President of Oritani, is expected to be appointed to serve as a director of Valley and Valley National Bank as of the effective time of the Merger. The Merger Agreement contains representations, warranties, and covenants of Valley and Oritani, including, among others, a covenant that requires (i) each of Valley and Oritani to conduct its business in the ordinary course and consistent with past practice during the period between the execution of the Merger Agreement and consummation of the Merger and (ii) Oritani to not engage in certain kinds of transactions during such period (without the prior written consent of Valley). Oritani has also agreed, subject to certain exceptions generally related to the Board’s evaluation and exercise of its fiduciary duties, to not (i) solicit proposals relating to alternative business combinations or (ii) enter into discussions or negotiations or provide confidential information in connection with any proposals for alternative business combinations. The Merger Agreement provides certain termination rights for both Valley and Oritani. The Merger Agreement provides that upon termination of the Merger Agreement under certain circumstances Oritani will be obligated to pay Valley a termination fee of $28 million and/or Valley’s reasonable out of pocket expenses up to $1.8 million. If the Merger Agreement is terminated under other certain circumstances, Valley will be obligated to pay Oritani up to $1.8 million of Oritani’s reasonable out of pocket expenses. Completion of the Merger is subject to various conditions, including (i) receipt of the requisite approval (a) of the Merger by stockholders of Oritani and (b) of the issuance of Valley common stock in the Merger by stockholders of Valley, (ii) receipt of regulatory approvals, (iii) the absence of any law or order prohibiting the closing, and (iv) effectiveness of the registration statement to be filed by Valley with respect to the capital stock to be issued in the Merger. In addition, each party’s obligation to consummate the Merger is subject to certain other conditions, including the accuracy of the representations and warranties of the other party and compliance of the other party with its covenants in all material respects. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | The consolidated financial statements are composed of the accounts of Oritani Financial Corp., its wholly owned subsidiaries, Oritani Bank (the “Bank”), Hampshire Financial LLC (inactive) and Oritani LLC (inactive), and the wholly owned subsidiaries of Oritani Bank; Zorm 2009, LLC, Ormon LLC (Ormon) (inactive), and Oritani Investment Corp., as well as its wholly owned subsidiary, Oritani Asset Corporation (a real estate investment trust), (collectively, the "Company"). Intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all of the adjustments (consisting of normal and recurring adjustments) necessary for the fair presentation of the consolidated financial condition and the consolidated results of operations for the unaudited periods presented have been included. The results of operations and other data presented for the three month period ended September 30, 2019 are not necessarily indicative of the results of operations that may be expected for the fiscal year ending June 30, 2020. Certain information and note disclosures usually included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for the preparation of the Form 10-Q. The consolidated financial statements presented should be read in conjunction with the Company’s audited consolidated financial statements and notes to consolidated financial statements included in the Company’s June 30, 2019 Annual Report on Form 10-K, filed with the SEC on August 28, 2019. The consolidated financial statements have been prepared in conformity with GAAP. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities presented in the Consolidated Balance Sheets at September 30, 2019 and June 30, 2019 and in the Consolidated Statements of Income for the Three Months Ended September 30, 2019 and 2018. Actual results could differ significantly from those estimates. A material estimate that is particularly susceptible to significant changes relates to the determination of the allowance for loan losses. The allowance for loan losses represents management’s best estimate of losses known and incurred in the portfolio that are both probable and reasonable to estimate. While management uses the most current information available to estimate losses on loans, actual losses are dependent on future events and, as such, increases in the allowance for loan losses may be necessary. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. Such agencies may require the Bank to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. |
Fair Value Measurements (Polici
Fair Value Measurements (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements and Disclosures | The Company adopted FASB ASC 820, “Fair Value Measurements and Disclosures, Basis of Fair Value Measurement: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability; Level 3: Price or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported with little or no market activity). A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Following are descriptions of the valuation methodologies and key inputs used to measure assets recorded at fair value, as well as a description of the methods and significant assumptions used to estimate fair value disclosures for financial instruments not recorded at fair value in their entirety on a recurring basis. The descriptions include an indication of the level of the fair value hierarchy in which the assets or liabilities are classified. Cash and Cash Equivalents Due to their short-term nature, the carrying amount of these instruments approximates fair value. Securities The Company records securities held to maturity at amortized cost. Equity securities and securities available for sale are measured at fair value on a recurring basis. The majority of the Company’s securities are fixed income instruments that are not quoted on an exchange, but are traded in active markets. The fair values for securities are obtained from an independent nationally recognized third-party pricing service. Our independent pricing service provides us with prices which are primarily categorized as Level 2, as quoted prices in active markets for identical assets are generally not available for the majority of securities in our portfolio. Pricing services may employ modeling techniques in determining pricing. Inputs to these models include market spreads, dealer quotes, prepayment speeds, credit information and the instrument’s terms and conditions, among other things. Management compares the pricing to a second independent pricing source for reasonableness. Equity securities are reported at Level 1 based on quoted market prices for identical securities in active markets. FHLB of New York Stock FHLB of New York Stock is recorded at cost (par value) and evaluated for impairment based on the ultimate recoverability of the par value. There is no active market for this stock and no significant observable market data is available for this instrument. The Company considers the profitability and asset quality of FHLB, dividend payment history and recent redemption experience, when determining the ultimate recoverability of the par value. The Company believes its investment in FHLB stock is ultimately recoverable at par. The carrying amount of FHLB stock approximates fair value, since this is the amount for which it could be redeemed. Loans The Company does not record loans at fair value on a recurring basis. However, periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements. The estimated fair value for significant nonperforming loans and impaired loans are valued utilizing independent appraisals of the collateral securing such loans that rely upon quoted market prices for similar assets in active markets. These appraisals include adjustments to comparable assets based on the appraisers’ market knowledge and experience. The appraisals may be adjusted downward by management (0-20% adjustment rate and 0-10% risk premium rate), as necessary, for changes in relevant valuation factors subsequent to the appraisal date and the timing of anticipated cash flows (0-8% discount rate). The Company classifies impaired loans as Level 3. In connection with the adoption of ASU 2016-01 on July 1, 2018, the Company refined the methodology used to estimate the fair value of the loan portfolio using an exit price notion resulting in prior periods no longer being comparable. The exit price notion requires determination of the price at which willing market participants would transact at the measurement date under current market conditions depending on facts and circumstances, such as origination rates, credit risk, transaction costs, liquidity, and other adjustments. The application of an exit price notion requires the use of significant judgment. Estimated fair value for loans is determined using portfolios of loans with similar financial characteristics. Loans are segregated by type such as residential, multifamily, commercial real estate, construction, land and consumer. Each loan category is further segmented into fixed and adjustable rate interest terms. At September 30, 2019 and June 30, 2019, estimated fair value of loans is determined using a discounted cash flow model that employs an exit discount rate that reflects the current market pricing for loans with similar characteristics and remaining maturity, adjusted by underwriting uncertainty, liquidity and credit discounts. The Company classifies the estimated fair value of loans held for investment as Level 3. Real Estate Owned Assets acquired through foreclosure or deed in lieu of foreclosure are recorded at fair value less estimated selling costs when acquired, thus establishing a new cost basis. Subsequently, real estate owned is carried at the lower of cost or fair value, less estimated selling costs. Fair value is generally based on independent appraisals. These appraisals include adjustments to comparable assets based on the appraisers’ market knowledge and experience, and are considered Level 3. When an asset is acquired, the excess of the loan balance over fair value, less estimated liquidation costs (5%-20% discount rate), is charged to the allowance for loan losses. If the estimated fair value of the asset declines, a write-down is recorded through expense. The valuation of foreclosed assets is subjective in nature and may be adjusted in the future because of changes in the economic conditions. Deposit Liabilities The estimated fair value of deposits with no stated maturity, such as checking, savings, and money market accounts, is equal to the amount payable on demand at the balance sheet date. The estimated fair value of term deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. The Company classifies the estimated fair value of term deposits as Level 2. Borrowings The book value of overnight borrowings approximates the estimated fair value. The estimated fair value of term borrowings is calculated based on the discounted cash flow of contractual amounts due, using market rates currently available for borrowings of similar amount and remaining maturity. The Company classifies the estimated fair value of term borrowings as Level 2. Derivatives The fair value of our interest rate swaps was estimated using Level 2 inputs. The fair value was determined using third party prices that are based on discounted cash flow analyses using observed market interest rate curves and volatilities. Commitments to Extend Credit and to Purchase or Sell Securities The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of commitments to purchase or sell securities is estimated based on bid quotations received from securities dealers. The fair value of off-balance-sheet commitments approximates book value. |
Assets Recorded at Fair Value on a Nonrecurring Basis | The Company may be required, from time to time, to measure the fair value of certain other financial assets on a nonrecurring basis in accordance with U.S. GAAP. The adjustments to fair value usually result from the application of lower-of-cost-or-fair value accounting or write downs of individual assets. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments". This update revises the methodology for estimating credit losses on loans receivable, held-to-maturity debt securities, unfunded loan commitments, and certain other financial assets measured at amortized cost. Under ASU 2016-13, the current expected credit losses ("CECL") model is based on lifetime expected losses, rather than incurred losses, and requires the recognition of credit loss expense in the statement of income and a related allowance for credit losses on the balance sheet at the time of origination or purchase of a loan receivable or held-to-maturity debt security. Subsequent changes in this estimate are recorded through credit loss expense and related allowance. The CECL model requires the use of not only relevant historical experience and current conditions, but also reasonable and supportable forecasts of future events and circumstances, thus incorporating a broad range of information in developing credit loss estimates, which could result in significant changes to both the timing and amount of credit loss expense and allowance. Under ASU 2016-13, available-for-sale debt securities are evaluated for impairment if fair value is less than amortized cost. Estimated credit losses are recorded through a credit loss expense and an allowance, rather than a write-down of the investment. Changes in fair value that are not credit-related will continue to be recorded in other comprehensive income. Certain additional disclosures are required, including further disaggregation of credit quality indicators for loans receivable by year of origination. This update is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company is reviewing credit loss estimation methodologies and assumptions to be utilized. We anticipate running parallel models during fiscal 2020 to refine our processes and procedures. The Company is evaluating the impact of this update on its consolidated financial statements, the extent of which is indeterminable at this time as it is contingent upon continued testing and refinement of models, methodologies and judgments. Further, the extent of the impact of adoption of CECL will depend on the asset quality of the portfolio, and economic conditions and forecasts at adoption. In January 2016, the FASB issued ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities", which is intended to improve the recognition and measurement of financial instruments. The ASU revises an entity's accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. The disclosure of fair value of the loan portfolio will be impacted as the fair value will be calculated using an exit price. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company adopted this standard effective July 1, 2018. The Company recorded a cumulative effect adjustment for its equity instruments to the balance sheet as of July 1, 2018 in the amount of $658,000, representing the unrealized gain, net of tax at June 30, 2018. The change in fair value of equity securities is realized in the statement of income. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. This ASU requires lessees to put most leases on their balance sheets but recognize expenses in the income statement in a manner similar to current accounting treatment. This ASU changes the guidance on sale-leaseback transactions, initial direct costs and lease execution costs, and , for lessors, modifies the classification criteria and the accounting for sales-type and direct financing leases. A modified retrospective transition is required under which comparative balance sheets from the earliest historical period presented will be revised to reflect what the financials would have looked like were the provisions of the update applied consistently in all prior periods. In July 2018, the FASB issued ASU 2018-11 “Leases (Topic 842) Targeted Improvements” which allows entities adopting ASU No. 2016-02 to choose an additional transition method, under which an entity to initially applies the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The amendment in this update becomes effective for annual periods and interim periods within those annual periods beginning after December 15, 2018. The Company has elected the transition method permitted by ASU No. 2018-11 under which an entity shall recognize and measure leases that exist at the application date and prior comparative periods are not adjusted. For leases existing at the effective date, the Company elected the package of practical expedients and therefore did not reassess whether an arrangement is or contains a lease, did not reassess lease classification, and did not reassess what qualifies as an initial direct cost. The Company also made accounting policy elections to exclude short-term leases of 12 months or less from the balance sheet and to separate and non-lease components from its lease obligations with the non-lease components being charged to earnings when incurred. Upon adoption of the new lease guidance on July 1, 2019, the Company recorded a right-of-use-asset and lease liability of $2.2 million, included in Office properties and equipment, net and Other liabilities, respectively. The new guidance did not have a material impact on the Company’s statement of income or cash flows. See Note 14. “Leases” for additional information. |
Earnings Per Share ("EPS") (Tab
Earnings Per Share ("EPS") (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share ("EPS") [Abstract] | |
Earnings Per Share Calculations and Reconciliation of Basic to Diluted Earnings per Share | The following is a summary of the Company’s earnings per share calculations and reconciliation of basic to diluted earnings per share. Three months ended September 30, 2019 2018 (In thousands, except per share data) Net income $ 12,300 $ 13,397 Weighted average common shares outstanding—basic 43,286 44,640 Effect of dilutive stock options outstanding 668 632 Weighted average common shares outstanding—diluted 43,954 45,272 Earnings per share-basic $ 0.28 $ 0.30 Earnings per share-diluted $ 0.28 $ 0.30 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Equity Incentive Plans [Abstract] | |
Assumptions Used in Estimating Fair Value of Options Issued | There were no options granted during the three months ended September 30, 2019. The fair value of options granted during the three months ended September 30, 2018 was estimated using the Black-Scholes options-pricing model with the assumptions in the following table. |
Stock Option Activity and Related Information for its Options Plan | The following is a summary of the Company’s stock option activity and related information as of September 30, 2019 and changes therein during the three months then ended: Number of Stock Options Weighted Average Grant Date Fair Value Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Outstanding at June 30, 2019 2,222,691 $ 2.64 $ 12.16 2.4 Exercised (3,000 ) 2.71 11.95 2.0 Outstanding at September 30, 2019 2,219,691 $ 2.64 $ 12.16 2.2 Exercisable at September 30, 2019 2,150,091 $ 2.69 $ 12.05 2.0 |
Status of Restricted Stock Shares | The following is a summary of the status of the Company’s restricted stock shares as of September 30, 2019 and changes therein during the three months then ended: Number of Shares Awarded Weighted Average Grant Date Fair Value Non-vested at June 30, 2019 16,800 $ 15.97 Vested (2,000 ) 16.15 Non-vested at September 30, 2019 14,800 $ 15.95 |
Post-retirement Benefits (Table
Post-retirement Benefits (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Post-retirement Benefits [Abstract] | |
Net Periodic Benefit Costs | Net periodic benefit costs for the three months ended September 30, 2019 and 2018 are presented in the following table: Retirement Plan BEP Plan Medical Plan Three Months Ended September 30, 2019 2018 2019 2018 2019 2018 (In thousands) Service cost $ 35 $ 31 $ — $ — $ 17 $ 11 Interest cost 49 54 11 13 52 59 Amortization of unrecognized: Net loss — — 12 8 1 — Total $ 84 $ 85 $ 23 $ 21 $ 70 $ 70 |
Loans, net (Tables)
Loans, net (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Loans [Abstract] | |
Comparative Summary of Loans | Loans, net are summarized as follows: September 30, 2019 June 30, 2019 (In thousands) Residential $ 260,651 $ 267,011 Residential commercial real estate 2,018,584 2,086,314 Grocery/credit retail commercial real estate 469,753 482,831 Other commercial real estate 689,078 683,739 Construction and land loans 20,705 9,170 Total loans 3,458,771 3,529,065 Less: Unearned deferred fees and discounts, net 8,895 9,147 Allowance for loan losses 28,608 28,596 Loans, net $ 3,421,268 $ 3,491,322 |
Activity in the Allowance for Loan Losses | The activity in the allowance for loan losses for the three months ended September 30, 2019 and 2018 is summarized as follows: Three months ended September 30, (In thousands) 2019 2018 Balance at beginning of period $ 28,596 $ 30,562 Reversal of provision for loan losses — (2,000 ) Recoveries of loans previously charged off 12 3 Loans charged off — — Balance at end of period $ 28,608 $ 28,565 |
Allowance for Loan Losses Allocated by Loan Category | The following table provides the three month activity in the allowance for loan losses allocated by loan category at September 30, 2019 and 2018 . The allowance for loan losses allocated to each category is not necessarily indicative of future losses in any particular category and does not restrict the use of the allowance to absorb losses in other categories. Three months ended September 30, 2019 Residential Residential commercial real estate Grocery/credit retail commercial real estate Other commercial real estate Construction and land loans Total (In thousands) Allowance for loan losses: Beginning balance $ 2,321 $ 15,694 $ 3,249 $ 6,968 $ 364 $ 28,596 Charge-offs — — — — — — Recoveries 12 — — — — 12 Provisions (585 ) 405 (97 ) (117 ) 394 — Ending balance $ 1,748 $ 16,099 $ 3,152 $ 6,851 $ 758 $ 28,608 Three Months ended September 30, 2018 Residential Residential commercial real estate Grocery/credit retail commercial real estate Other commercial real estate Construction and land loans Total (In thousands) Allowance for loan losses: Beginning balance $ 1,990 $ 17,259 $ 3,015 $ 7,828 $ 470 $ 30,562 Charge-offs — — — — — — Recoveries 3 — — — — 3 Provisions 107 (1,825 ) 118 (52 ) (348 ) (2,000 ) Ending balance $ 2,100 $ 15,434 $ 3,133 $ 7,776 $ 122 $ 28,565 |
Loans Individually and Collectively Evaluated for Impairment and Related Allowance for Loan Loss by Class of Loans | The following tables detail the amount of loans receivables that are evaluated individually, and collectively, for impairment, and the related portion of allowance for loan loss that is allocated to each loan portfolio segment at September 30, 2019 and June 30, 2019 . At September 30, 2019 Residential Residential commercial real estate Grocery/credit retail commercial real estate Other commercial real estate Construction and land loans Total (In thousands) Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,748 16,099 3,152 6,851 758 28,608 Total $ 1,748 $ 16,099 $ 3,152 $ 6,851 $ 758 $ 28,608 Loans receivable: Individually evaluated for impairment $ 2,090 $ — $ — $ 3,476 $ — $ 5,566 Collectively evaluated for impairment 258,561 2,018,584 469,753 685,602 20,705 3,453,205 Total $ 260,651 $ 2,018,584 $ 469,753 $ 689,078 $ 20,705 $ 3,458,771 At June 30, 2019 Residential Residential commercial real estate Grocery/credit retail commercial real estate Other commercial real estate Construction and land loans Total (In thousands) Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 2,321 15,694 3,249 6,968 364 28,596 Total $ 2,321 $ 15,694 $ 3,249 $ 6,968 $ 364 $ 28,596 Loans receivable: Individually evaluated for impairment $ 5,580 $ — $ — $ 3,758 $ — $ 9,338 Collectively evaluated for impairment 261,431 2,086,314 482,831 679,981 9,170 3,519,727 Total $ 267,011 $ 2,086,314 $ 482,831 $ 683,739 $ 9,170 $ 3,529,065 |
Information about Loan Credit Quality | The following tables provide information about the loan credit quality at September 30, 2019 and June 30, 2019: At September 30, 2019 Satisfactory Pass/Watch Special Mention Substandard Doubtful Total (In thousands) Residential $ 238,533 $ 17,483 $ 1,009 $ 3,626 $ — $ 260,651 Residential commercial real estate 1,998,795 18,253 1,536 — — 2,018,584 Grocery/credit retail commercial real estate 466,915 2,838 — — — 469,753 Other commercial real estate 620,558 60,445 4,417 3,658 — 689,078 Construction and land loans 20,705 — — — — 20,705 Total $ 3,345,506 $ 99,019 $ 6,962 $ 7,284 $ — $ 3,458,771 At June 30, 2019 Satisfactory Pass/Watch Special Mention Substandard Doubtful Total (In thousands) Residential $ 241,524 $ 17,965 $ 351 $ 7,171 $ — $ 267,011 Residential commercial real estate 2,068,384 16,385 1,545 — — 2,086,314 Grocery/credit retail commercial real estate 479,963 2,868 — — — 482,831 Other commercial real estate 617,061 58,219 4,246 4,213 — 683,739 Construction and land loans 9,170 — — — — 9,170 Total $ 3,416,102 $ 95,437 $ 6,142 $ 11,384 $ — $ 3,529,065 |
Delinquency and Accrual Status of Loan Portfolio | The following tables provide information about loans past due at September 30, 2019 and June 30, 2019: At September 30, 2019 30-59 Days Past Due 60-89 Days Past Due 90 days or More Past Due Total Past Due Current Total Loans Nonaccrual (1) (In thousands) Residential $ 2,486 $ 2,226 $ 534 $ 5,246 $ 255,405 $ 260,651 $ 3,014 Residential commercial real estate — — — — 2,018,584 2,018,584 — Grocery/credit retail commercial real estate — — — — 469,753 469,753 — Other commercial real estate 420 187 — 607 688,471 689,078 3,476 Construction and land loans — — — — 20,705 20,705 — Total $ 2,906 $ 2,413 $ 534 $ 5,853 $ 3,452,918 $ 3,458,771 $ 6,490 At June 30, 2019 30-59 Days Past Due 60-89 Days Past Due 90 days or More Past Due Total Past Due Current Total Loans Nonaccrual (2) (In thousands) Residential $ 2,482 $ 1,409 $ 5,164 $ 9,055 $ 257,956 $ 267,011 $ 6,531 Residential commercial real estate — — — — 2,086,314 2,086,314 — Grocery/credit retail commercial real estate — — — — 482,831 482,831 — Other commercial real estate 1,789 — — 1,789 681,950 683,739 3,522 Construction and land loans — — — — 9,170 9,170 — Total $ 4,271 $ 1,409 $ 5,164 $ 10,844 $ 3,518,221 $ 3,529,065 $ 10,053 (1) Included in nonaccrual loans at September 30, 2019 are residential loans totaling $350,000 that were 30-59 days past due; and residential loans totaling $952,000 that were 60-89 days past due; and residential loans totaling $1.2 and other commercial real estate loans totaling $3.5 million that were less than 30 days past due. (2) Included in nonaccrual loans at June 30, 2019 are residential loans totaling $30,000 that were 30-59 days past due; residential loans totaling $768,000 that were 60-89 days past due; and residential loans totaling $568,000 and other commercial real estate loans totaling $2.4 million that were less than 30 days past due. |
Information Regarding Impaired Loans | The following table provides information about the Company’s impaired loans at September 30, 2019 and June 30, 2019: At September 30, 2019 At June 30, 2019 Recorded Investment Unpaid Principal Balance Allowance Recorded Investment Unpaid Principal Balance Allowance (In thousands) With no related allowance recorded: Residential $ 2,096 $ 2,090 $ — $ 5,580 $ 5,580 $ — Other commercial real estate 3,299 3,476 — 3,938 3,758 — Total $ 5,395 $ 5,566 $ — $ 9,518 $ 9,338 $ — The following tables present the average recorded investment and interest income recognized on impaired loans for the Three Months ended September 30, 2019 and 2018: Three months ended September 30, 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance recorded: Residential $ 2,154 $ 12 $ 5,197 $ 18 Other commercial real estate 3,327 36 3,956 73 $ 5,481 $ 48 $ 9,153 $ 91 Cash basis interest income $ 48 $ 49 |
Troubled Debt Restructured (TDR) Loans | The following table presents additional information regarding the Company’s TDRs as of September 30, 2019 and June 30, 2019 : Troubled Debt Restructurings at September 30, 2019 Troubled Debt Restructurings at June 30, 2019 Performing Nonperforming Total Performing Nonperforming Total (In thousands) (In thousands) Residential $ — $ 167 $ 167 $ — $ 167 $ 167 Other commercial real estate — 1,085 1,085 236 1,096 1,332 Total $ — $ 1,252 $ 1,252 $ 236 $ 1,263 $ 1,499 Allowance $ — $ — $ — $ — — $ — |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Securities [Abstract] | |
Comparative Summary of Debt Securities Held to Maturity | The following is a comparative summary of debt securities held to maturity at September 30, 2019 and June 30, 2019 : At September 30, 2019 Amortized cost Gross unrecognized gains Gross unrecognized losses Fair value (In thousands) U.S. Government and Federal agency obligations Due in less than one year $ 5,000 $ — $ 9 $ 4,991 Mortgage-backed securities: Residential MBS 203,617 2,276 479 205,414 Commercial MBS 26,788 871 1 27,658 CMO 71,436 470 448 71,458 Corporate Note Due in five to ten years 15,030 503 — 15,533 $ 321,871 $ 4,120 $ 937 $ 325,054 At June 30, 2019 Amortized cost Gross unrecognized gains Gross unrecognized losses Fair value (In thousands) U.S. Government and Federal agency obligations Due in less than one year $ 5,000 $ — $ 21 $ 4,979 Mortgage-backed securities: Residential MBS 207,587 1,952 639 208,900 Commercial MBS 26,952 511 27 27,436 CMO 77,643 434 512 77,565 Corporate Note Due in five to ten years 15,033 266 — 15,299 $ 332,215 $ 3,163 $ 1,199 $ 334,179 |
Information on Debt Securities Held to Maturity | The debt securities held to maturity proceeds, fair values pledged, and other than temporary impairment charges information are reflected in the table below: Three Months Ended Three Months Ended At September 30, 2019 September 30, 2018 June 30, 2019 (dollars in thousands) Proceeds from sale of held-to-maturity debt securities $ — $ — $ — Fair value of debt securities held-to-maturity pledged as collateral for advances 6,934 8,500 7,501 Fair value of debt securities held-to-maturity pledged for interest rate swap — — — Fair value of debt securities held-to-maturity pledged as collateral for municipal deposits 18,778 — 19,511 Other than temporary impairment charges on held-to-maturity debt securities — — — |
Gross Unrealized Losses on Debt Securities Held to Maturity | Gross unrecognized losses on debt securities held to maturity and the fair value of the related securities, aggregated by security category and length of time that individual securities have been in a continuous unrecognized loss position at September 30, 2019 and June 30, 2019 were as follows: At September 30, 2019 Less than 12 months Greater than 12 months Total Fair value Gross unrecognized losses Fair value Gross unrecognized losses Fair value Gross unrecognized losses (In thousands) U.S. Government and Federal agency obligations Due in less than one year $ — $ — $ 4,991 $ 9 $ 4,991 $ 9 Mortgage-backed securities: Residential MBS 63,869 191 41,176 288 105,045 479 Commercial MBS 4,364 1 — — 4,364 1 CMO 17,446 110 28,716 338 46,162 448 $ 85,679 $ 302 $ 74,883 $ 635 $ 160,562 $ 937 At June 30, 2019 Less than 12 months Greater than 12 months Total Fair value Gross unrecognized losses Fair value Gross unrecognized losses Fair value Gross unrecognized losses (In thousands) U.S. Government and Federal agency obligations Due in less than one year $ — $ — $ 4,979 $ 21 $ 4,979 $ 21 Mortgage-backed securities: Residential MBS — — 103,110 639 103,110 639 Commercial MBS — — 4,370 27 4,370 27 CMO — — 45,043 512 45,043 512 $ — $ — $ 157,502 $ 1,199 $ 157,502 $ 1,199 |
Debt Securities Available for Sale | The following is a comparative summary of debt securities available for sale at September 30, 2019 and June 30, 2019 : At September 30, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) Mortgage-backed securities: Residential MBS $ 2 $ — $ — $ 2 Commercial MBS 3,882 — 7 3,875 CMO 26,900 4 203 26,701 $ 30,784 $ 4 $ 210 $ 30,578 At June 30, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) Mortgage-backed securities: Residential MBS $ 9 $ — $ — $ 9 Commercial MBS 3,921 — 5 3,916 CMO 29,108 3 284 28,827 $ 33,038 $ 3 $ 289 $ 32,752 |
Information on Debt Securities Available for Sale | The debt securities available proceeds, fair values pledged, and other than temporary impairment charges information are reflected in the table below: Three Months Ended Three Months Ended At September 30, 2019 September 30, 2018 June 30, 2019 (dollars in thousands) Proceeds from sales of debt securities available for sale $ — $ — $ — Fair value of debt securities available for sale pledged as collateral for advances 12,290 — 12,879 Fair value of debt securities available for sale pledged for interest rate swap — — — Fair value of debt securities available for sale pledged as collateral for municipal deposits — — — Other than temporary impairment charges on debt securities available for sale — — — |
Gross Unrecognized Losses on Debt Securities Available for Sale | Gross unrealized losses on debt securities available for sale and the fair value of the related securities, aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2019 and June 30, 2019 were as follows: At September 30, 2019 Less than 12 months Greater than 12 months Total Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses (In thousands) Mortgage-backed securities: Commercial MBS $ 3,875 $ 7 $ — $ — $ 3,875 $ 7 CMO 4,305 8 20,991 195 25,296 203 $ 8,180 $ 15 $ 20,991 $ 195 $ 29,171 $ 210 At June 30, 2019 Less than 12 months Greater than 12 months Total Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses (In thousands) Mortgage-backed securities: Commercial MBS $ 3,916 $ 5 $ — $ — $ 3,916 $ 5 CMO — $ — 27,063 284 $ 27,063 $ 284 $ 3,916 $ 5 $ 27,063 $ 284 $ 30,979 $ 289 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Deposits [Abstract] | |
Deposit Balances | Deposit balances are summarized as follows: September 30, 2019 June 30, 2019 (Dollars in thousands) Checking accounts $ 688,899 $ 668,453 Money market deposit accounts 651,976 622,670 Savings accounts 378,272 383,763 Time deposits 1,217,399 1,248,358 $ 2,936,546 $ 2,923,244 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Derivatives and Hedging Activities [Abstract] | |
Amounts Included in Balance Sheets Related to Fair Value of Derivative Financial Instruments | The following table presents amounts included in the consolidated balance sheets related to the fair value of derivative financial instruments at September 30, 2019 and June 30, 2019. At September 30, 2019 At June 30, 2019 . Balance Sheet Line Item Notional Amount Fair Value Notional Amount Fair Value Cash flow hedge interest rate swaps Gross unrealized gain Other Assets $ 150,000 $ 884 $ 185,000 $ 1,624 Gross unrealized loss Other Liabilities 195,000 (3,248 ) 170,000 (1,408 ) Gross notional / net fair value $ 345,000 $ (2,364 ) $ 355,000 $ 216 Average rate paid 1.54 % 1.50 % Average rate received 2.30 % 2.37 % Weighted average maturity (years) 3.2 3.3 |
Gains (Losses) Related to Cash Flow Hedge Interest Rate Swaps | Gains (losses) included in the consolidated statements of income and in comprehensive income, on a pre-tax basis, related to cash flow hedge interest rate swaps are as follows: Three Months Ended September 30, 2019 2018 (Dollars in thousands) Amount of (loss) gain recognized in other comprehensive income $ (1,858 ) $ 1,851 Amount of unrealized gain (loss) reclassified from accumulated other comprehensive loss to interest expense 722 616 Net change in unrealized (loss) gain on interest rate swaps, before taxes $ (2,580 ) $ 1,235 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Fair Value Measurements [Abstract] | |
Assets Measured at Fair Value on a Recurring Basis | The following tables present the recorded amount of assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 and June 30, 2019 by level within the fair value hierarchy. There were no transfers between levels within the fair value hierarchy during the three months ended September 30, 2019 . Fair Value as of September 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) (In thousands) Assets: Equity Securities $ 1,344 $ 1,344 $ — $ — Mortgage-backed securities available for sale Residential MBS 2 — 2 — Commercial MBS 3,875 — 3,875 — CMO 26,701 — 26,701 — Total debt securities available for sale 30,578 — 30,578 — Interest rate swaps 884 — 884 — Total assets measured on a recurring basis $ 32,806 $ 1,344 $ 31,462 $ — Liabilities: Interest rate swaps $ (3,248 ) $ — $ (3,248 ) $ — Fair Value as of June 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) (In thousands) Assets: Equity Securities $ 1,358 $ 1,358 $ — $ — Mortgage-backed securities available for sale Residential MBS 9 — 9 — Commercial MBS 3,916 — 3,916 — CMO 28,827 — 28,827 — Total debt securities available for sale 32,752 — 32,752 — Interest rate swaps 1,624 — 1,624 — Total assets measured on a recurring basis $ 35,734 $ 1,358 $ 34,376 $ — Liabilities: Interest rate swaps $ (1,408 ) $ — $ (1,408 ) $ — |
Amount of Assets Measured at Fair Value on a Nonrecurring Basis | The following tables present the recorded amount of assets measured at fair value on a nonrecurring basis as of September 30, 2019 and June 30, 2019 by level within the fair value hierarchy. Fair Value as of September 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) (In thousands) Assets: Impaired loans: Other commercial real estate $ 1,016 $ — $ — $ 1,016 Total impaired loans 1,016 — — 1,016 Real estate owned Total real estate owned — — — — Total assets measured on a non-recurring basis $ 1,016 $ — $ — $ 1,016 Fair Value as of June 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) (In thousands) Assets: Impaired loans: Other commercial real estate $ 1,164 $ — $ — $ 1,164 Total impaired loans 1,164 — — 1,164 Real estate owned Other commercial real estate 557 — — 557 Total real estate owned 557 — — 557 Total assets measured on a non-recurring basis $ 1,721 $ — $ — $ 1,721 |
Estimated Fair Value of Financial Instruments | The following tables present the carrying amount, estimated fair value, and placement in the fair value hierarchy of financial instruments not recorded at fair values in their entirety on a recurring basis on the Company’s balance sheet at September 30, 2019 and June 30, 2019 . These tables exclude financial instruments for which the carrying amount approximates fair value. Financial instruments for which the carrying amount approximates fair value include cash and cash equivalents, FHLB stock, non-maturity deposits, overnight borrowings, and accrued interest. September 30, 2019 Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) (In thousands) Financial assets: Debt securities held to maturity $ 321,871 $ 325,054 $ — $ 325,054 $ — Loans, net 3,421,268 3,408,434 — — 3,408,434 Financial liabilities: Time deposits 1,217,399 1,228,591 — 1,228,591 — Term borrowings 426,563 431,197 — 431,197 — June 30, 2019 Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) (In thousands) Financial assets: Debt securities held to maturity $ 332,215 $ 334,179 $ — $ 334,179 $ — Loans, net 3,491,322 3,469,016 — — 3,469,016 Financial liabilities: Time deposits 1,248,358 1,255,282 — 1,255,282 — Term borrowings 490,755 493,674 — 493,674 — |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Other Comprehensive Income [Abstract] | |
Comprehensive Income both Gross and Net of Tax | The components of comprehensive income, both gross and net of tax, are presented for the periods below (in thousands): Three Months ended September 30, 2019 2018 Gross: Net income $ 16,618 $ 18,489 Other comprehensive income Change in unrealized holding gain (loss) on debt securities available for sale 79 (153 ) Amortization related to post-retirement obligations 13 8 Change in funded status of retirement obligations (547 ) — Net change in unrealized (loss) gain on interest rate swaps (2,580 ) 1,235 Total other comprehensive (loss) income (3,035 ) 1,090 Total comprehensive income 13,583 19,579 Tax applicable to: Net income 4,318 5,092 Other comprehensive income Change in unrealized holding gain (loss) on debt securities available for sale 23 (34 ) Amortization related to post-retirement obligations 4 — Change in funded status of retirement obligations (163 ) — Net change in unrealized (loss) gain on interest rate swaps (755 ) 361 Total other comprehensive (loss) income (891 ) 327 Total comprehensive income 3,427 5,419 Net of tax: Net income 12,300 13,397 Other comprehensive income Change in unrealized holding gain (loss) on debt securities available for sale 56 (119 ) Amortization related to post-retirement obligations 9 8 Change in funded status of retirement obligations (384 ) — Net change in unrealized (loss) gain on interest rate swaps (1,825 ) 874 Total other comprehensive (loss) income (2,144 ) 763 Total comprehensive income $ 10,156 $ 14,160 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | The following table presents the changes in the components of accumulated other comprehensive income (loss), net of tax, for the three months ended September 30, 2019 and 2018 (in thousands): Unrealized Holding (Loss) Gain on Debt Securities Available for Sale Post Retirement Obligations Unrealized Holding Gain (Loss) on Interest Rate Swaps Accumulated Other Comprehensive Income (Loss), Net of Tax Balance at June 30, 2019 $ (162 ) $ (288 ) $ (96 ) $ (546 ) Net change 56 (375 ) (1,825 ) (2,144 ) Balance at September 30, 2019 $ (106 ) $ (663 ) $ (1,921 ) $ (2,690 ) Balance at June 30, 2018 $ (86 ) $ (314 ) $ 11,623 $ 11,223 Net change (119 ) 8 874 763 Reclassification due to the adoption of ASU No. 2016-01 (658 ) — — (658 ) Balance at September 30, 2018 $ (863 ) $ (306 ) $ 12,497 $ 11,328 |
Information about Amount of Reclassification from Accumulated Other Comprehensive Income (Loss) | The following table sets forth information about the amount reclassified from accumulated other comprehensive income (loss) to the consolidated statement of income and the affected line item in the statement where net income is presented (in thousands). Accumulated Other Comprehensive Income (Loss) Component Affected line item in the Consolidated Statement of Income Three Months ended September 30, 2019 Three Months ended September 30, 2018 Amortization related to post-retirement obligations (1) Net loss Other expenses $ 13 $ 8 Total before tax 13 8 Income tax benefit 4 — Net of tax $ 9 $ 8 (1) These accumulated other comprehensive income (loss) components are included in the computations of net periodic benefit cost. See Note 5. Post-retirement Benefits. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Non-interest Income | The following table summarizes non-interest income for the periods indicated (in thousands): Three Months Ended September 30, 2019 2018 unaudited Fees and service charges for customer services: Service charges on deposits $ 112 $ 125 ATM and card interchange fees 141 131 Service charges on loans 114 56 Total fees and service charges $ 367 $ 312 Bank owned life insurance 618 624 Gains (losses) on sale of OREO 29 — Change in fair value of equity securities (14 ) (119 ) Other income 2 4 Total non-interest income $ 1,002 $ 821 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Balance Sheet Information Related to Leases | The following table present the balance sheet information related to leases: September 30, 2019 (Dollars in thousands) Operating lease right-of-use assets included in Office properties and equipment, net $ 2,055 Operating lease liabilities included in Other liabilities 2,057 Weighted average remaining lease term, in years 4.6 Weighted average discount rate 2.27 % |
Lease Cost and Supplemental Cash Flow Information Related to Leases | The following table presents the components of total lease cost recognized in the consolidated statements of income and supplemental cash flow information related to leases: Three months ended September 30, 2019 (Dollars in thousands) Lease cost Operating lease cost $ 209 Short-term lease cost 27 Total lease cost (included in Office occupancy and equipment expense) $ 236 Cash paid toward operating lease liabilities $ 233 |
Future Minimum Operating Lease Payments and Reconciliation to Operating Lease Liabilities | Future minimum operating lease payments and reconciliation to operating lease liabilities at September 30, 2019: September 30, 2019 (Dollars in thousands) 2020 $ 568 2021 576 2022 389 2023 310 2024 179 Thereafter 248 Total lease payments 2,270 less: imputed interest (213 ) Total operating lease liabilities $ 2,057 |
Earnings Per Share ("EPS") (Det
Earnings Per Share ("EPS") (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Summary of the Company's earnings per share calculations and reconciliation of basic to diluted earnings per share [Abstract] | ||
Net income | $ 12,300 | $ 13,397 |
Weighted average common shares outstanding-basic (in shares) | 43,286 | 44,640 |
Effect of dilutive stock options outstanding (in shares) | 668 | 632 |
Weighted average common shares outstanding-diluted (in shares) | 43,954 | 45,272 |
Earnings per share-basic (in dollars per share) | $ 0.28 | $ 0.30 |
Earnings per share-diluted (in dollars per share) | $ 0.28 | $ 0.30 |
Anti-dilutive (in shares) | 0 | 1,677 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - Stock Repurchase Program [Member] - $ / shares | 12 Months Ended | |
Jun. 30, 2019 | Mar. 04, 2015 | |
Shares Repurchased [Abstract] | ||
Percentage of outstanding shares authorized to be repurchased | 5.00% | |
Number of outstanding shares authorized to be repurchased (in shares) | 2,205,451 | |
Shares acquired under fourth repurchase program (in shares) | 1,888,851 | |
Weighted average cost of shares acquired under fourth repurchase program (in dollars per share) | $ 15.20 |
Equity Incentive Plans (Details
Equity Incentive Plans (Details) - shares | 3 Months Ended | ||
Sep. 30, 2019 | Jul. 26, 2011 | Apr. 22, 2008 | |
2007 Equity Plan [Member] | |||
Equity Incentive Plans [Abstract] | |||
Equity Incentive Plan issuance of common stock (in shares) | 4,172,817 | ||
2011 Equity Plan [Member] | |||
Equity Incentive Plans [Abstract] | |||
Equity Incentive Plan issuance of common stock (in shares) | 5,790,849 | ||
2011 Equity Plan [Member] | Restricted Stock and Restricted Stock Units [Member] | Maximum [Member] | |||
Equity Incentive Plans [Abstract] | |||
Equity Incentive Plan issuance of common stock (in shares) | 1,654,528 | ||
2011 Equity Plan [Member] | Stock Options [Member] | |||
Equity Incentive Plans [Abstract] | |||
Vesting period | 5 years | ||
Expiration period of vested options after issuance | 10 years | ||
Expiration period of vested options after termination of services | 90 days |
Equity Incentive Plans, Assumpt
Equity Incentive Plans, Assumptions Used in Valuing Options (Details) - Stock Options [Member] | 3 Months Ended |
Sep. 30, 2018shares | |
Share-based payment award, employee stock purchase plan, valuation assumptions [Abstract] | |
Option shares granted (in shares) | 20,000 |
Expected dividend yield | 7.47% |
Expected volatility | 17.68% |
Risk-free interest rate | 2.82% |
Expected option life (in years) | 6 years 6 months |
Equity Incentive Plans, Stock O
Equity Incentive Plans, Stock Option Activity and Related Information (Details) - Stock Options [Member] - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Number of Stock Options [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 2,222,691 | ||
Granted (in shares) | 20,000 | ||
Exercised (in shares) | (3,000) | ||
Outstanding, end of period (in shares) | 2,219,691 | 2,222,691 | |
Exercisable, end of period (in shares) | 2,150,091 | ||
Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding, beginning of period (in dollars per share) | $ 2.64 | ||
Exercised (in dollars per share) | 2.71 | ||
Outstanding, end of period (in dollars per share) | 2.64 | $ 2.64 | |
Exercisable, end of period (in dollars per share) | 2.69 | ||
Weighted Average Exercise Price [Abstract] | |||
Outstanding, beginning of period (in dollars per share) | 12.16 | ||
Exercised (in dollars per share) | 11.95 | ||
Outstanding, end of period (in dollars per share) | 12.16 | $ 12.16 | |
Exercisable, end of period (in dollars per share) | $ 12.05 | ||
Weighted Average Remaining Contractual Life [Abstract] | |||
Outstanding | 2 years 2 months 12 days | 2 years 4 months 24 days | |
Exercised | 2 years | ||
Exercisable | 2 years | ||
Share based compensation expense | $ 6,000 | $ 11,000 | |
Expected future expense related to the non-vested options outstanding | $ 61,000 | ||
Weighted average period related to the non-vested options outstanding | 3 years 3 months 18 days |
Equity Incentive Plans, Restric
Equity Incentive Plans, Restricted Stock (Details) - Restricted Stock [Member] - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Equity Incentive Plans [Abstract] | ||
Vesting period | 5 years | |
Number of Shares Awarded [Roll Forward] | ||
Non-vested, beginning of period (in shares) | 16,800 | |
Vested (in shares) | (2,000) | |
Non-vested, end of period (in shares) | 14,800 | |
Weighted Average Grant Date Fair Value [Abstract] | ||
Non-vested, beginning of period (in dollars per share) | $ 15.97 | |
Vested (in dollars per share) | 16.15 | |
Non-vested, end of period (in dollars per share) | $ 15.95 | |
Share based compensation expense | $ 19,000 | $ 32,000 |
Expected future expense related to the non-vested restricted stock shares | $ 191,000 | |
Weighted average period for recognition | 2 years 10 months 24 days |
Post-retirement Benefits (Detai
Post-retirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Pension Plan [Member] | Nonqualified Plan [Member] | Retirement Plan [Member] | ||
Net periodic benefit costs [Abstract] | ||
Service cost | $ 35 | $ 31 |
Interest cost | 49 | 54 |
Amortization of unrecognized [Abstract] | ||
Net loss | 0 | 0 |
Total | 84 | 85 |
Pension Plan [Member] | Nonqualified Plan [Member] | BEP Plan [Member] | ||
Net periodic benefit costs [Abstract] | ||
Service cost | 0 | 0 |
Interest cost | 11 | 13 |
Amortization of unrecognized [Abstract] | ||
Net loss | 12 | 8 |
Total | 23 | 21 |
Postretirement Health Coverage [Member] | Qualified Plan [Member] | Medical Plan [Member] | ||
Net periodic benefit costs [Abstract] | ||
Service cost | 17 | 11 |
Interest cost | 52 | 59 |
Amortization of unrecognized [Abstract] | ||
Net loss | 1 | 0 |
Total | $ 70 | $ 70 |
Loans, net (Details)
Loans, net (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 |
Summary of Loans [Abstract] | ||||
Total loans | $ 3,458,771 | $ 3,529,065 | ||
Less [Abstract] | ||||
Deferred loan fees, net | 8,895 | 9,147 | ||
Allowance for loan losses | 28,608 | 28,596 | $ 28,565 | $ 30,562 |
Net loans | 3,421,268 | 3,491,322 | ||
Residential [Member] | ||||
Summary of Loans [Abstract] | ||||
Total loans | 260,651 | 267,011 | ||
Less [Abstract] | ||||
Allowance for loan losses | 1,748 | 2,321 | 2,100 | 1,990 |
Residential Commercial Real Estate [Member] | ||||
Summary of Loans [Abstract] | ||||
Total loans | 2,018,584 | 2,086,314 | ||
Less [Abstract] | ||||
Allowance for loan losses | 16,099 | 15,694 | 15,434 | 17,259 |
Grocery/Credit Retail Commercial Real Estate [Member] | ||||
Summary of Loans [Abstract] | ||||
Total loans | 469,753 | 482,831 | ||
Less [Abstract] | ||||
Allowance for loan losses | 3,152 | 3,249 | 3,133 | 3,015 |
Other Commercial Real Estate [Member] | ||||
Summary of Loans [Abstract] | ||||
Total loans | 689,078 | 683,739 | ||
Less [Abstract] | ||||
Allowance for loan losses | 6,851 | 6,968 | 7,776 | 7,828 |
Construction and Land Loans [Member] | ||||
Summary of Loans [Abstract] | ||||
Total loans | 20,705 | 9,170 | ||
Less [Abstract] | ||||
Allowance for loan losses | $ 758 | $ 364 | $ 122 | $ 470 |
Loans, net, Allowance for Loan
Loans, net, Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Activity in allowance for loan losses [Abstract] | ||
Balance, beginning of period | $ 28,596 | $ 30,562 |
Reversal of provision for loan losses | 0 | (2,000) |
Recoveries of loans previously charged off | 12 | 3 |
Loans charged off | 0 | 0 |
Balance, end of period | $ 28,608 | $ 28,565 |
Loans, net, Allowance for Loa_2
Loans, net, Allowance for Loan Losses by Category (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Allowance for loan losses [Abstract] | ||
Balance, beginning of period | $ 28,596 | $ 30,562 |
Charge-offs | 0 | 0 |
Recoveries | 12 | 3 |
Reversal of provision for losses on loans | 0 | (2,000) |
Balance, end of period | 28,608 | 28,565 |
Residential [Member] | ||
Allowance for loan losses [Abstract] | ||
Balance, beginning of period | 2,321 | 1,990 |
Charge-offs | 0 | 0 |
Recoveries | 12 | 3 |
Reversal of provision for losses on loans | (585) | 107 |
Balance, end of period | 1,748 | 2,100 |
Residential Commercial Real Estate [Member] | ||
Allowance for loan losses [Abstract] | ||
Balance, beginning of period | 15,694 | 17,259 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Reversal of provision for losses on loans | 405 | (1,825) |
Balance, end of period | 16,099 | 15,434 |
Grocery/Credit Retail Commercial Real Estate [Member] | ||
Allowance for loan losses [Abstract] | ||
Balance, beginning of period | 3,249 | 3,015 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Reversal of provision for losses on loans | (97) | 118 |
Balance, end of period | 3,152 | 3,133 |
Other Commercial Real Estate [Member] | ||
Allowance for loan losses [Abstract] | ||
Balance, beginning of period | 6,968 | 7,828 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Reversal of provision for losses on loans | (117) | (52) |
Balance, end of period | 6,851 | 7,776 |
Construction and Land Loans [Member] | ||
Allowance for loan losses [Abstract] | ||
Balance, beginning of period | 364 | 470 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Reversal of provision for losses on loans | 394 | (348) |
Balance, end of period | $ 758 | $ 122 |
Loans, net, Allowance for Loa_3
Loans, net, Allowance for Loan Losses by Portfolio Segment Based on Impairment Method (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 |
Allowance for loan losses [Abstract] | ||||
Individually evaluated for impairment | $ 0 | $ 0 | ||
Collectively evaluated for impairment | 28,608 | 28,596 | ||
Total | 28,608 | 28,596 | $ 28,565 | $ 30,562 |
Loans receivable [Abstract] | ||||
Individually evaluated for impairment | 5,566 | 9,338 | ||
Collectively evaluated for impairment | 3,453,205 | 3,519,727 | ||
Total loans | 3,458,771 | 3,529,065 | ||
Residential [Member] | ||||
Allowance for loan losses [Abstract] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 1,748 | 2,321 | ||
Total | 1,748 | 2,321 | 2,100 | 1,990 |
Loans receivable [Abstract] | ||||
Individually evaluated for impairment | 2,090 | 5,580 | ||
Collectively evaluated for impairment | 258,561 | 261,431 | ||
Total loans | 260,651 | 267,011 | ||
Residential Commercial Real Estate [Member] | ||||
Allowance for loan losses [Abstract] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 16,099 | 15,694 | ||
Total | 16,099 | 15,694 | 15,434 | 17,259 |
Loans receivable [Abstract] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 2,018,584 | 2,086,314 | ||
Total loans | 2,018,584 | 2,086,314 | ||
Grocery/Credit Retail Commercial Real Estate [Member] | ||||
Allowance for loan losses [Abstract] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 3,152 | 3,249 | ||
Total | 3,152 | 3,249 | 3,133 | 3,015 |
Loans receivable [Abstract] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 469,753 | 482,831 | ||
Total loans | 469,753 | 482,831 | ||
Other Commercial Real Estate [Member] | ||||
Allowance for loan losses [Abstract] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 6,851 | 6,968 | ||
Total | 6,851 | 6,968 | 7,776 | 7,828 |
Loans receivable [Abstract] | ||||
Individually evaluated for impairment | 3,476 | 3,758 | ||
Collectively evaluated for impairment | 685,602 | 679,981 | ||
Total loans | 689,078 | 683,739 | ||
Construction and Land Loans [Member] | ||||
Allowance for loan losses [Abstract] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 758 | 364 | ||
Total | 758 | 364 | $ 122 | $ 470 |
Loans receivable [Abstract] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 20,705 | 9,170 | ||
Total loans | $ 20,705 | $ 9,170 |
Loans, net, Credit Quality Indi
Loans, net, Credit Quality Indicators (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Loan credit quality [Abstract] | ||
Total loans | $ 3,458,771 | $ 3,529,065 |
Satisfactory [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 3,345,506 | 3,416,102 |
Pass/Watch [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 99,019 | 95,437 |
Special Mention [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 6,962 | 6,142 |
Substandard [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 7,284 | 11,384 |
Doubtful [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 0 | 0 |
Residential [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 260,651 | 267,011 |
Residential [Member] | Satisfactory [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 238,533 | 241,524 |
Residential [Member] | Pass/Watch [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 17,483 | 17,965 |
Residential [Member] | Special Mention [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 1,009 | 351 |
Residential [Member] | Substandard [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 3,626 | 7,171 |
Residential [Member] | Doubtful [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 0 | 0 |
Residential Commercial Real Estate [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 2,018,584 | 2,086,314 |
Residential Commercial Real Estate [Member] | Satisfactory [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 1,998,795 | 2,068,384 |
Residential Commercial Real Estate [Member] | Pass/Watch [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 18,253 | 16,385 |
Residential Commercial Real Estate [Member] | Special Mention [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 1,536 | 1,545 |
Residential Commercial Real Estate [Member] | Substandard [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 0 | 0 |
Residential Commercial Real Estate [Member] | Doubtful [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 0 | 0 |
Grocery/Credit Retail Commercial Real Estate [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 469,753 | 482,831 |
Grocery/Credit Retail Commercial Real Estate [Member] | Satisfactory [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 466,915 | 479,963 |
Grocery/Credit Retail Commercial Real Estate [Member] | Pass/Watch [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 2,838 | 2,868 |
Grocery/Credit Retail Commercial Real Estate [Member] | Special Mention [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 0 | 0 |
Grocery/Credit Retail Commercial Real Estate [Member] | Substandard [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 0 | 0 |
Grocery/Credit Retail Commercial Real Estate [Member] | Doubtful [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 0 | 0 |
Other Commercial Real Estate [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 689,078 | 683,739 |
Other Commercial Real Estate [Member] | Satisfactory [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 620,558 | 617,061 |
Other Commercial Real Estate [Member] | Pass/Watch [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 60,445 | 58,219 |
Other Commercial Real Estate [Member] | Special Mention [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 4,417 | 4,246 |
Other Commercial Real Estate [Member] | Substandard [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 3,658 | 4,213 |
Other Commercial Real Estate [Member] | Doubtful [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 0 | 0 |
Construction and Land Loans [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 20,705 | 9,170 |
Construction and Land Loans [Member] | Satisfactory [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 20,705 | 9,170 |
Construction and Land Loans [Member] | Pass/Watch [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 0 | 0 |
Construction and Land Loans [Member] | Special Mention [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 0 | 0 |
Construction and Land Loans [Member] | Substandard [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | 0 | 0 |
Construction and Land Loans [Member] | Doubtful [Member] | ||
Loan credit quality [Abstract] | ||
Total loans | $ 0 | $ 0 |
Loans, net, Past Due (Details)
Loans, net, Past Due (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 | ||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | $ 5,853,000 | $ 10,844,000 | ||
Current | 3,452,918,000 | 3,518,221,000 | ||
Total loans | 3,458,771,000 | 3,529,065,000 | ||
Nonaccrual | 6,490,000 | [1] | 10,053,000 | [2] |
30-59 Days Past Due [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 2,906,000 | 4,271,000 | ||
60-89 Days Past Due [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 2,413,000 | 1,409,000 | ||
90 Days or More Past Due [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 534,000 | 5,164,000 | ||
Residential [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 5,246,000 | 9,055,000 | ||
Current | 255,405,000 | 257,956,000 | ||
Total loans | 260,651,000 | 267,011,000 | ||
Nonaccrual | 3,014,000 | [1] | 6,531,000 | [2] |
Residential [Member] | Nonaccrual Loans [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Current | 1,200,000 | 568,000 | ||
Residential [Member] | 30-59 Days Past Due [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 2,486,000 | 2,482,000 | ||
Residential [Member] | 30-59 Days Past Due [Member] | Nonaccrual Loans [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 350,000 | 30,000 | ||
Residential [Member] | 60-89 Days Past Due [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 2,226,000 | 1,409,000 | ||
Residential [Member] | 60-89 Days Past Due [Member] | Nonaccrual Loans [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 952,000 | 768,000 | ||
Residential [Member] | 90 Days or More Past Due [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 534,000 | 5,164,000 | ||
Residential Commercial Real Estate [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 0 | 0 | ||
Current | 2,018,584,000 | 2,086,314,000 | ||
Total loans | 2,018,584,000 | 2,086,314,000 | ||
Nonaccrual | 0 | [1] | 0 | [2] |
Residential Commercial Real Estate [Member] | 30-59 Days Past Due [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 0 | 0 | ||
Residential Commercial Real Estate [Member] | 60-89 Days Past Due [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 0 | 0 | ||
Residential Commercial Real Estate [Member] | 90 Days or More Past Due [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 0 | 0 | ||
Grocery/Credit Retail Commercial Real Estate [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 0 | 0 | ||
Current | 469,753,000 | 482,831,000 | ||
Total loans | 469,753,000 | 482,831,000 | ||
Nonaccrual | 0 | [1] | 0 | [2] |
Grocery/Credit Retail Commercial Real Estate [Member] | 30-59 Days Past Due [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 0 | 0 | ||
Grocery/Credit Retail Commercial Real Estate [Member] | 60-89 Days Past Due [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 0 | 0 | ||
Grocery/Credit Retail Commercial Real Estate [Member] | 90 Days or More Past Due [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 0 | 0 | ||
Other Commercial Real Estate [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 607,000 | 1,789,000 | ||
Current | 688,471,000 | 681,950,000 | ||
Total loans | 689,078,000 | 683,739,000 | ||
Nonaccrual | 3,476,000 | [1] | 3,522,000 | [2] |
Other Commercial Real Estate [Member] | Nonaccrual Loans [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Current | 3,500,000 | 2,400,000 | ||
Other Commercial Real Estate [Member] | 30-59 Days Past Due [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 420,000 | 1,789,000 | ||
Other Commercial Real Estate [Member] | 60-89 Days Past Due [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 187,000 | 0 | ||
Other Commercial Real Estate [Member] | 90 Days or More Past Due [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 0 | 0 | ||
Construction and Land Loans [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 0 | 0 | ||
Current | 20,705,000 | 9,170,000 | ||
Total loans | 20,705,000 | 9,170,000 | ||
Nonaccrual | 0 | [1] | 0 | [2] |
Construction and Land Loans [Member] | 30-59 Days Past Due [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 0 | 0 | ||
Construction and Land Loans [Member] | 60-89 Days Past Due [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | 0 | 0 | ||
Construction and Land Loans [Member] | 90 Days or More Past Due [Member] | ||||
Delinquency and Accrual Status of Loan Portfolio [Abstract] | ||||
Total past due | $ 0 | $ 0 | ||
[1] | Included in nonaccrual loans at September 30, 2019 are residential loans totaling $350,000 that were 30-59 days past due; and residential loans totaling $952,000 that were 60-89 days past due; and residential loans totaling $1.2 and other commercial real estate loans totaling $3.5 million that were less than 30 days past due. | |||
[2] | Included in nonaccrual loans at June 30, 2019 are residential loans totaling $30,000 that were 30-59 days past due; residential loans totaling $768,000 that were 60-89 days past due; and residential loans totaling $568,000 and other commercial real estate loans totaling $2.4 million that were less than 30 days past due. |
Loans, net, Recorded Investment
Loans, net, Recorded Investment, Unpaid Principal Balance and Allowance for Impaired Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Impaired Financing Receivable [Abstract] | ||
Threshold value for individually classifying loans as impaired | $ 1,000 | |
With no related allowance recorded [Abstract] | ||
Recorded investment | 5,395 | $ 9,518 |
Unpaid principal balance | 5,566 | 9,338 |
Residential [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded investment | 2,096 | 5,580 |
Unpaid principal balance | 2,090 | 5,580 |
Other Commercial Real Estate [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded investment | 3,299 | 3,938 |
Unpaid principal balance | $ 3,476 | $ 3,758 |
Loans, net, Average Recorded In
Loans, net, Average Recorded Investment and Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
With no related allowance recorded [Abstract] | ||
Average recorded investment | $ 5,481 | $ 9,153 |
Interest income recognized | 48 | 91 |
Total [Abstract] | ||
Cash basis interest income | 48 | 49 |
Residential [Member] | ||
With no related allowance recorded [Abstract] | ||
Average recorded investment | 2,154 | 5,197 |
Interest income recognized | 12 | 18 |
Other Commercial Real Estate [Member] | ||
With no related allowance recorded [Abstract] | ||
Average recorded investment | 3,327 | 3,956 |
Interest income recognized | $ 36 | $ 73 |
Loans, net, Troubled Debt Restr
Loans, net, Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2019USD ($)Contract | Sep. 30, 2018Contract | Jun. 30, 2019USD ($) | |
Troubled Debt Restructurings [Abstract] | |||
Troubled debt restructurings | $ 1,252 | $ 1,499 | |
Troubled debt restructurings, allowance | $ 0 | 0 | |
Number of relationships | Contract | 0 | 0 | |
Number of TDRs that have subsequently defaulted | Contract | 0 | 0 | |
Residential [Member] | |||
Troubled Debt Restructurings [Abstract] | |||
Troubled debt restructurings | $ 167 | 167 | |
Other Commercial Real Estate [Member] | |||
Troubled Debt Restructurings [Abstract] | |||
Troubled debt restructurings | 1,085 | 1,332 | |
Performing [Member] | |||
Troubled Debt Restructurings [Abstract] | |||
Troubled debt restructurings | 0 | 236 | |
Troubled debt restructurings, allowance | 0 | 0 | |
Performing [Member] | Residential [Member] | |||
Troubled Debt Restructurings [Abstract] | |||
Troubled debt restructurings | 0 | 0 | |
Performing [Member] | Other Commercial Real Estate [Member] | |||
Troubled Debt Restructurings [Abstract] | |||
Troubled debt restructurings | 0 | 236 | |
Nonperforming [Member] | |||
Troubled Debt Restructurings [Abstract] | |||
Troubled debt restructurings | 1,252 | 1,263 | |
Troubled debt restructurings, allowance | 0 | 0 | |
Nonperforming [Member] | Residential [Member] | |||
Troubled Debt Restructurings [Abstract] | |||
Troubled debt restructurings | 167 | 167 | |
Nonperforming [Member] | Other Commercial Real Estate [Member] | |||
Troubled Debt Restructurings [Abstract] | |||
Troubled debt restructurings | $ 1,085 | $ 1,096 |
Securities, Debt Securities Hel
Securities, Debt Securities Held to Maturity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Held-to-maturity Securities [Abstract] | |||
Amortized cost | $ 321,871 | $ 332,215 | |
Gross unrecognized gains | 4,120 | 3,163 | |
Gross unrecognized losses | 937 | 1,199 | |
Fair value | 325,054 | 334,179 | |
Fair value of debt securities held to maturity pledged as collateral | 0 | 0 | |
Other-than-temporary impairment charges on securities held to maturity | 0 | $ 0 | 0 |
Advances [Member] | |||
Held-to-maturity Securities [Abstract] | |||
Fair value of held-to-maturity debt securities pledged as collateral | 6,934 | 8,500 | 7,501 |
Cash Flow Hedging [Member] | Interest Rate Swaps [Member] | |||
Held-to-maturity Securities [Abstract] | |||
Fair value of held-to-maturity debt securities pledged as collateral | 0 | 0 | 0 |
Municipal Deposits [Member] | |||
Held-to-maturity Securities [Abstract] | |||
Fair value of held-to-maturity debt securities pledged as collateral | 18,778 | 0 | 19,511 |
Held-to-maturity Securities [Member] | |||
Held-to-maturity Securities [Abstract] | |||
Proceeds from sales of debt securities held to maturity | 0 | $ 0 | |
Corporate Note [Member] | |||
Held-to-maturity Securities [Abstract] | |||
Amortized cost, due in five to ten years | 15,030 | 15,033 | |
Gross unrecognized gains, due in five to ten years | 503 | 266 | |
Gross unrecognized losses, due in five to ten years | 0 | 0 | |
Fair value, due in five to ten years | 15,533 | 15,299 | |
U.S. Government and Federal Agency Obligations [Member] | |||
Held-to-maturity Securities [Abstract] | |||
Amortized cost, due in less than one year | 5,000 | 5,000 | |
Gross unrecognized gains, due in less than one year | 0 | 0 | |
Gross unrecognized losses, due in less than one year | 9 | 21 | |
Fair value, due in less than one year | $ 4,991 | 4,979 | |
Mortgage-backed Securities [Member] | Minimum [Member] | |||
Held-to-maturity Securities [Abstract] | |||
Contractual maturities of mortgage-backed securities held-to-maturity | 20 years | ||
Residential MBS [Member] | |||
Held-to-maturity Securities [Abstract] | |||
Amortized cost | $ 203,617 | 207,587 | |
Gross unrecognized gains | 2,276 | 1,952 | |
Gross unrecognized losses | 479 | 639 | |
Fair value | 205,414 | 208,900 | |
Commercial MBS [Member] | |||
Held-to-maturity Securities [Abstract] | |||
Amortized cost | 26,788 | 26,952 | |
Gross unrecognized gains | 871 | 511 | |
Gross unrecognized losses | 1 | 27 | |
Fair value | 27,658 | 27,436 | |
CMO [Member] | |||
Held-to-maturity Securities [Abstract] | |||
Amortized cost | 71,436 | 77,643 | |
Gross unrecognized gains | 470 | 434 | |
Gross unrecognized losses | 448 | 512 | |
Fair value | $ 71,458 | $ 77,565 |
Securities, Gross Unrealized Lo
Securities, Gross Unrealized Losses on Debt Securities Held to Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Fair Value [Abstract] | ||
Less than 12 months | $ 85,679 | $ 0 |
Greater than 12 months | 74,883 | 157,502 |
Total | 160,562 | 157,502 |
Gross Unrecognized Losses [Abstract] | ||
Less than 12 months | 302 | 0 |
Greater than 12 months | 635 | 1,199 |
Total | 937 | 1,199 |
U.S. Government and Federal Agency Obligations [Member] | ||
Fair Value [Abstract] | ||
Fair value, due in less than one year, less than 12 months | 0 | 0 |
Fair value, due in less than one year, greater than 12 months | 4,991 | 4,979 |
Fair value, due in less than one year | 4,991 | 4,979 |
Gross Unrecognized Losses [Abstract] | ||
Gross unrecognized losses, due in less than one year, less than 12 months | 0 | 0 |
Gross unrecognized losses, due in less than one year, greater than 12 months | 9 | 21 |
Gross unrecognized losses, due in less than one year | 9 | 21 |
Residential MBS [Member] | ||
Fair Value [Abstract] | ||
Less than 12 months | 63,869 | 0 |
Greater than 12 months | 41,176 | 103,110 |
Total | 105,045 | 103,110 |
Gross Unrecognized Losses [Abstract] | ||
Less than 12 months | 191 | 0 |
Greater than 12 months | 288 | 639 |
Total | 479 | 639 |
Commercial MBS [Member] | ||
Fair Value [Abstract] | ||
Less than 12 months | 4,364 | 0 |
Greater than 12 months | 0 | 4,370 |
Total | 4,364 | 4,370 |
Gross Unrecognized Losses [Abstract] | ||
Less than 12 months | 1 | 0 |
Greater than 12 months | 0 | 27 |
Total | 1 | 27 |
CMO [Member] | ||
Fair Value [Abstract] | ||
Less than 12 months | 17,446 | 0 |
Greater than 12 months | 28,716 | 45,043 |
Total | 46,162 | 45,043 |
Gross Unrecognized Losses [Abstract] | ||
Less than 12 months | 110 | 0 |
Greater than 12 months | 338 | 512 |
Total | $ 448 | $ 512 |
Securities, Debt Securities Ava
Securities, Debt Securities Available for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Comparative summary of debt securities available for sale [Abstract] | |||
Amortized cost | $ 30,784 | $ 33,038 | |
Gross unrealized gains | 4 | 3 | |
Gross unrealized losses | 210 | 289 | |
Fair value | 30,578 | 32,752 | |
Cash Flow Hedging [Member] | Interest Rate Swaps [Member] | |||
Comparative summary of debt securities available for sale [Abstract] | |||
Fair value of debt securities available for sale pledged as collateral | 0 | $ 0 | 0 |
Advances [Member] | |||
Comparative summary of debt securities available for sale [Abstract] | |||
Fair value of debt securities available for sale pledged as collateral | 12,290 | 0 | 12,879 |
Municipal Deposits [Member] | |||
Comparative summary of debt securities available for sale [Abstract] | |||
Fair value of debt securities available for sale pledged as collateral | 0 | 0 | 0 |
Available-for-sale Securities [Member] | |||
Comparative summary of debt securities available for sale [Abstract] | |||
Proceeds from sales of debt securities available for sale | 0 | 0 | 0 |
Other-than-temporary impairment charges on debt securities available for sale | $ 0 | $ 0 | 0 |
Mortgage Backed Securities [Member] | Minimum [Member] | |||
Comparative summary of debt securities available for sale [Abstract] | |||
Contractual maturities of mortgage-backed debt securities available for sale | 20 years | ||
Residential MBS [Member] | |||
Comparative summary of debt securities available for sale [Abstract] | |||
Amortized cost | $ 2 | 9 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 2 | 9 | |
Commercial MBS [Member] | |||
Comparative summary of debt securities available for sale [Abstract] | |||
Amortized cost | 3,882 | 3,921 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 7 | 5 | |
Fair value | 3,875 | 3,916 | |
CMO [Member] | |||
Comparative summary of debt securities available for sale [Abstract] | |||
Amortized cost | 26,900 | 29,108 | |
Gross unrealized gains | 4 | 3 | |
Gross unrealized losses | 203 | 284 | |
Fair value | $ 26,701 | $ 28,827 |
Securities, Gross Unrealized _2
Securities, Gross Unrealized Losses on Debt Securities Available for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Fair Value [Abstract] | ||
Less than 12 months | $ 8,180 | $ 3,916 |
Greater than 12 months | 20,991 | 27,063 |
Total | 29,171 | 30,979 |
Gross Unrealized Losses [Abstract] | ||
Less than 12 months | 15 | 5 |
Greater than 12 months | 195 | 284 |
Total | 210 | 289 |
Mortgage Backed Securities [Member] | ||
Fair Value [Abstract] | ||
Less than 12 months | 3,875 | 3,916 |
Greater than 12 months | 0 | 0 |
Total | 3,875 | 3,916 |
Gross Unrealized Losses [Abstract] | ||
Less than 12 months | 7 | 5 |
Greater than 12 months | 0 | 0 |
Total | 7 | 5 |
CMO [Member] | ||
Fair Value [Abstract] | ||
Less than 12 months | 4,305 | 0 |
Greater than 12 months | 20,991 | 27,063 |
Total | 25,296 | 27,063 |
Gross Unrealized Losses [Abstract] | ||
Less than 12 months | 8 | 0 |
Greater than 12 months | 195 | 284 |
Total | $ 203 | $ 284 |
Securities, Equity Securities (
Securities, Equity Securities (Details) - USD ($) | 3 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity Securities [Abstract] | ||||
Equity securities, estimated fair value | $ 1,344,000 | $ 1,358,000 | ||
Equity securities sold | 0 | $ 0 | ||
Gains (Losses) recognized during the period on equity securities | $ (14,000) | $ (119,000) | ||
ASU 2016-01 [Member] | ||||
Equity Securities [Abstract] | ||||
Cumulative effect adjustment on stockholders' equity resulting from adoption of ASU | $ 658,000 | $ 658,000 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Deposits [Abstract] | ||
Total brokered deposits | $ 451,600 | $ 471,200 |
Municipal deposits | 520,800 | 512,000 |
Time deposits greater than $250,000 | 224,300 | 253,500 |
Deposit balances [Abstract] | ||
Checking accounts | 688,899 | 668,453 |
Money market deposit accounts | 651,976 | 622,670 |
Savings accounts | 378,272 | 383,763 |
Time deposits | 1,217,399 | 1,248,358 |
Deposits | 2,936,546 | 2,923,244 |
Municipal Deposits [Member] | ||
Deposits [Abstract] | ||
Held-to-maturity securities pledged | 18,800 | |
Municipal Deposits [Member] | FHLBNY [Member] | ||
Deposits [Abstract] | ||
Letters of credit securing deposit | $ 120,000 | $ 150,000 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Details) - Interest Rate Swaps [Member] $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($)Contract | Jun. 30, 2019USD ($) | |
Derivative Instrument Detail [Abstract] | ||
Number of interest rate swap agreements | Contract | 19 | |
Variable rate basis received | one month LIBOR | |
Notional amount of derivatives | $ 345,000 | |
Minimum [Member] | ||
Derivative Instrument Detail [Abstract] | ||
Fixed interest rate paid | 0.77% | |
Derivative, maturity date | Jun. 26, 2020 | |
Maximum [Member] | ||
Derivative Instrument Detail [Abstract] | ||
Fixed interest rate paid | 1.90% | |
Derivative, maturity date | Jun. 26, 2025 | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Derivative Instrument Detail [Abstract] | ||
Notional amount of derivatives | $ 345,000 | $ 355,000 |
Net fair value | $ (2,364) | $ 216 |
Average rate paid | 1.54% | 1.50% |
Average rate received | 2.30% | 2.37% |
Weighted average maturity (years) | 3 years 2 months 12 days | 3 years 3 months 18 days |
Other Assets [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Derivative Instrument Detail [Abstract] | ||
Asset derivatives, notional amount | $ 150,000 | $ 185,000 |
Asset derivatives, fair value | 884 | 1,624 |
Other Liabilities [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Derivative Instrument Detail [Abstract] | ||
Liability derivatives, notional amount | 195,000 | 170,000 |
Liability derivatives, fair value | $ (3,248) | $ (1,408) |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities, Gains (Losses) Related to Cash Flow Hedge Interest Rate Swaps (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Gains (losses) included in consolidated statements of income and in comprehensive income, on pre-tax basis [Abstract] | |||
Net change in unrealized (loss) gain on interest rate swaps, before taxes | $ (2,580,000) | $ 1,235,000 | |
Changes in components of accumulated other comprehensive income (loss), net of tax [Roll Forward] | |||
Securities pledged as collateral | 0 | $ 0 | |
Cash pledged for swaps | 2,900,000 | 710,000 | |
Unrealized Holding Gains on Interest Rate Swaps [Member] | |||
Changes in components of accumulated other comprehensive income (loss), net of tax [Roll Forward] | |||
Accumulated net after-tax losses related to effective cash flow hedges included in accumulated other comprehensive loss | 1,900,000 | $ 96,000 | |
Cash Flow Hedging [Member] | |||
Gains (losses) included in consolidated statements of income and in comprehensive income, on pre-tax basis [Abstract] | |||
Amount of (loss) gain recognized in other comprehensive income | (1,858,000) | 1,851,000 | |
Amount of gain reclassified from accumulated other comprehensive loss to interest expense | 722,000 | 616,000 | |
Net change in unrealized (loss) gain on interest rate swaps, before taxes | $ (2,580,000) | $ 1,235,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2017 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2018 | |
Effect of Tax Cuts and Jobs Act [Abstract] | ||||||
Federal corporate tax rate | 21.00% | 26.00% | 25.00% | |||
Income tax expense (note 11) | $ 4,318,000 | $ 5,092,000 | ||||
Maximum [Member] | ||||||
Effect of Tax Cuts and Jobs Act [Abstract] | ||||||
Federal corporate tax rate | 35.00% | |||||
New Jersey Tax Legislation [Member] | ||||||
Effect of Tax Cuts and Jobs Act [Abstract] | ||||||
One-time non-cash charge due to tax legislation changes | $ 477,000 | |||||
New Jersey Tax Legislation [Member] | Tax Year on or after January 1, 2018 through December 31, 2019 [Member] | ||||||
Effect of Tax Cuts and Jobs Act [Abstract] | ||||||
Temporary surtax | 2.50% | |||||
New Jersey Tax Legislation [Member] | Tax Year on or after January 1, 2020 through December 31, 2021 [Member] | ||||||
Effect of Tax Cuts and Jobs Act [Abstract] | ||||||
Temporary surtax | 1.50% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Valuation, Market Approach [Member] - Unobservable Inputs (Level 3) [Member] | Sep. 30, 2019 |
Adjustment Rate [Member] | Minimum [Member] | |
Fair value inputs [Abstract] | |
Impaired loans, measurement input | 0 |
Adjustment Rate [Member] | Maximum [Member] | |
Fair value inputs [Abstract] | |
Impaired loans, measurement input | 0.20 |
Risk Premium Rate [Member] | Minimum [Member] | |
Fair value inputs [Abstract] | |
Impaired loans, measurement input | 0 |
Risk Premium Rate [Member] | Maximum [Member] | |
Fair value inputs [Abstract] | |
Impaired loans, measurement input | 0.10 |
Discount Rate [Member] | Minimum [Member] | |
Fair value inputs [Abstract] | |
Impaired loans, measurement input | 0 |
Real estate owned, measurement input | 0.05 |
Discount Rate [Member] | Maximum [Member] | |
Fair value inputs [Abstract] | |
Impaired loans, measurement input | 0.08 |
Real estate owned, measurement input | 0.20 |
Fair Value Measurements, Assets
Fair Value Measurements, Assets Recorded at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Assets [Abstract] | ||
Equity securities | $ 1,344 | $ 1,358 |
Total debt securities available for sale | 30,578 | 32,752 |
Residential MBS [Member] | ||
Assets [Abstract] | ||
Total debt securities available for sale | 2 | 9 |
Commercial MBS [Member] | ||
Assets [Abstract] | ||
Total debt securities available for sale | 3,875 | 3,916 |
CMO [Member] | ||
Assets [Abstract] | ||
Total debt securities available for sale | 26,701 | 28,827 |
Fair Value, Measurements, Recurring [Member] | ||
Assets [Abstract] | ||
Total debt securities available for sale | 30,578 | 32,752 |
Interest rate swaps | 884 | 1,624 |
Total assets measured on a recurring basis | 32,806 | 35,734 |
Liabilities [Abstract] | ||
Interest rate swaps | (3,248) | (1,408) |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | ||
Assets [Abstract] | ||
Equity securities | 1,344 | 1,358 |
Fair Value, Measurements, Recurring [Member] | Residential MBS [Member] | ||
Assets [Abstract] | ||
Total debt securities available for sale | 2 | 9 |
Fair Value, Measurements, Recurring [Member] | Commercial MBS [Member] | ||
Assets [Abstract] | ||
Total debt securities available for sale | 3,875 | 3,916 |
Fair Value, Measurements, Recurring [Member] | CMO [Member] | ||
Assets [Abstract] | ||
Total debt securities available for sale | 26,701 | 28,827 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Total debt securities available for sale | 0 | 0 |
Interest rate swaps | 0 | 0 |
Total assets measured on a recurring basis | 1,344 | 1,358 |
Liabilities [Abstract] | ||
Interest rate swaps | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities [Member] | ||
Assets [Abstract] | ||
Equity securities | 1,344 | 1,358 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Residential MBS [Member] | ||
Assets [Abstract] | ||
Total debt securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial MBS [Member] | ||
Assets [Abstract] | ||
Total debt securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | CMO [Member] | ||
Assets [Abstract] | ||
Total debt securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Total debt securities available for sale | 30,578 | 32,752 |
Interest rate swaps | 884 | 1,624 |
Total assets measured on a recurring basis | 31,462 | 34,376 |
Liabilities [Abstract] | ||
Interest rate swaps | (3,248) | (1,408) |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable inputs (Level 2) [Member] | Equity Securities [Member] | ||
Assets [Abstract] | ||
Equity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable inputs (Level 2) [Member] | Residential MBS [Member] | ||
Assets [Abstract] | ||
Total debt securities available for sale | 2 | 9 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable inputs (Level 2) [Member] | Commercial MBS [Member] | ||
Assets [Abstract] | ||
Total debt securities available for sale | 3,875 | 3,916 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable inputs (Level 2) [Member] | CMO [Member] | ||
Assets [Abstract] | ||
Total debt securities available for sale | 26,701 | 28,827 |
Fair Value, Measurements, Recurring [Member] | Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Total debt securities available for sale | 0 | 0 |
Interest rate swaps | 0 | 0 |
Total assets measured on a recurring basis | 0 | 0 |
Liabilities [Abstract] | ||
Interest rate swaps | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | ||
Assets [Abstract] | ||
Equity securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Unobservable Inputs (Level 3) [Member] | Residential MBS [Member] | ||
Assets [Abstract] | ||
Total debt securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Unobservable Inputs (Level 3) [Member] | Commercial MBS [Member] | ||
Assets [Abstract] | ||
Total debt securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Unobservable Inputs (Level 3) [Member] | CMO [Member] | ||
Assets [Abstract] | ||
Total debt securities available for sale | $ 0 | $ 0 |
Fair Value Measurements, Asse_2
Fair Value Measurements, Assets Recorded at Fair Value on a Non-Recurring Basis (Details) - Nonrecurring [Member] - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Assets Measured at Fair Value on Nonrecurring Basis [Abstract] | ||
Impaired loans | $ 1,016 | $ 1,164 |
Real estate owned | 0 | 557 |
Total | 1,016 | 1,721 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets Measured at Fair Value on Nonrecurring Basis [Abstract] | ||
Impaired loans | 0 | 0 |
Real estate owned | 0 | 0 |
Total | 0 | 0 |
Significant Other Observable inputs (Level 2) [Member] | ||
Assets Measured at Fair Value on Nonrecurring Basis [Abstract] | ||
Impaired loans | 0 | 0 |
Real estate owned | 0 | 0 |
Total | 0 | 0 |
Unobservable Inputs (Level 3) [Member] | ||
Assets Measured at Fair Value on Nonrecurring Basis [Abstract] | ||
Impaired loans | 1,016 | 1,164 |
Real estate owned | 0 | 557 |
Total | 1,016 | 1,721 |
Other Commercial Real Estate [Member] | ||
Assets Measured at Fair Value on Nonrecurring Basis [Abstract] | ||
Impaired loans | 1,016 | 1,164 |
Real estate owned | 0 | 557 |
Other Commercial Real Estate [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets Measured at Fair Value on Nonrecurring Basis [Abstract] | ||
Impaired loans | 0 | 0 |
Real estate owned | 0 | 0 |
Other Commercial Real Estate [Member] | Significant Other Observable inputs (Level 2) [Member] | ||
Assets Measured at Fair Value on Nonrecurring Basis [Abstract] | ||
Impaired loans | 0 | 0 |
Real estate owned | 0 | 0 |
Other Commercial Real Estate [Member] | Unobservable Inputs (Level 3) [Member] | ||
Assets Measured at Fair Value on Nonrecurring Basis [Abstract] | ||
Impaired loans | 1,016 | 1,164 |
Real estate owned | $ 0 | $ 557 |
Fair Value Measurements, Estima
Fair Value Measurements, Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Debt securities held to maturity | $ 321,871 | $ 332,215 |
Loans, net | 3,421,268 | 3,491,322 |
Financial liabilities [Abstract] | ||
Time deposits | 1,217,399 | 1,248,358 |
Term borrowings | 426,563 | 490,755 |
Fair Value [Member] | ||
Financial assets [Abstract] | ||
Debt securities held to maturity | 325,054 | 334,179 |
Loans, net | 3,408,434 | 3,469,016 |
Financial liabilities [Abstract] | ||
Time deposits | 1,228,591 | 1,255,282 |
Term borrowings | 431,197 | 493,674 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial assets [Abstract] | ||
Debt securities held to maturity | 0 | 0 |
Loans, net | 0 | 0 |
Financial liabilities [Abstract] | ||
Time deposits | 0 | 0 |
Term borrowings | 0 | 0 |
Significant Other Observable inputs (Level 2) [Member] | ||
Financial assets [Abstract] | ||
Debt securities held to maturity | 325,054 | 334,179 |
Loans, net | 0 | 0 |
Financial liabilities [Abstract] | ||
Time deposits | 1,228,591 | 1,255,282 |
Term borrowings | 431,197 | 493,674 |
Unobservable Inputs (Level 3) [Member] | ||
Financial assets [Abstract] | ||
Debt securities held to maturity | 0 | 0 |
Loans, net | 3,408,434 | 3,469,016 |
Financial liabilities [Abstract] | ||
Time deposits | 0 | 0 |
Term borrowings | $ 0 | $ 0 |
Other Comprehensive Income, Com
Other Comprehensive Income, Components of Comprehensive Income both Gross and Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Gross [Abstract] | ||
Net income | $ 16,618 | $ 18,489 |
Other comprehensive income (loss) [Abstract] | ||
Change in unrealized holding (loss) gain on securities available for sale | 79 | (153) |
Amortization related to post-retirement obligations | 13 | 8 |
Change in funded status of retirement obligations | (547) | 0 |
Net change in unrealized (loss) gain on interest rate swaps | (2,580) | 1,235 |
Total other comprehensive (loss) income | (3,035) | 1,090 |
Total comprehensive income | 13,583 | 19,579 |
Tax applicable to [Abstract] | ||
Income tax (benefit) expense | 4,318 | 5,092 |
Other comprehensive income (loss) [Abstract] | ||
Change in unrealized holding (loss) gain on securities available for sale | 23 | (34) |
Amortization related to post-retirement obligations | 4 | 0 |
Change in funded status of retirement obligations | (163) | 0 |
Change in unrealized gain (loss) on interest rate swaps | (755) | 361 |
Total other comprehensive (loss) income | (891) | 327 |
Total comprehensive income | 3,427 | 5,419 |
Net of tax [Abstract] | ||
Net income | 12,300 | 13,397 |
Other comprehensive income (loss) [Abstract] | ||
Change in unrealized holding (loss) gain on securities available for sale | 56 | (119) |
Amortization related to post-retirement obligations | 9 | 8 |
Change in funded status of retirement obligations | (384) | 0 |
Net change in unrealized (loss) gain on interest rate swaps | (1,825) | 874 |
Total other comprehensive (loss) income | (2,144) | 763 |
Total comprehensive income | $ 10,156 | $ 14,160 |
Other Comprehensive Income, C_2
Other Comprehensive Income, Components of Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Changes in components of accumulated other comprehensive income (loss), net of tax [Roll Forward] | ||
Balance | $ 529,147 | $ 559,346 |
Reclassification due to the adoption of ASU | 0 | |
Balance | 529,300 | 562,944 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Member] | ||
Changes in components of accumulated other comprehensive income (loss), net of tax [Roll Forward] | ||
Balance | (546) | 11,223 |
Net change | (2,144) | 763 |
Reclassification due to the adoption of ASU | (658) | |
Balance | (2,690) | 11,328 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Member] | ASU 2016-01 [Member] | ||
Changes in components of accumulated other comprehensive income (loss), net of tax [Roll Forward] | ||
Reclassification due to the adoption of ASU | (658) | |
Unrealized Holding Gains on Securities Available for Sale [Member] | ||
Changes in components of accumulated other comprehensive income (loss), net of tax [Roll Forward] | ||
Balance | (162) | (86) |
Net change | 56 | (119) |
Balance | (106) | (863) |
Unrealized Holding Gains on Securities Available for Sale [Member] | ASU 2016-01 [Member] | ||
Changes in components of accumulated other comprehensive income (loss), net of tax [Roll Forward] | ||
Reclassification due to the adoption of ASU | (658) | |
Post Retirement Obligations [Member] | ||
Changes in components of accumulated other comprehensive income (loss), net of tax [Roll Forward] | ||
Balance | (288) | (314) |
Net change | (375) | 8 |
Balance | (663) | (306) |
Post Retirement Obligations [Member] | ASU 2016-01 [Member] | ||
Changes in components of accumulated other comprehensive income (loss), net of tax [Roll Forward] | ||
Reclassification due to the adoption of ASU | 0 | |
Unrealized Holding Gain (Loss) on Interest Rate Swap [Member] | ||
Changes in components of accumulated other comprehensive income (loss), net of tax [Roll Forward] | ||
Balance | (96) | 11,623 |
Net change | (1,825) | 874 |
Balance | $ (1,921) | 12,497 |
Unrealized Holding Gain (Loss) on Interest Rate Swap [Member] | ASU 2016-01 [Member] | ||
Changes in components of accumulated other comprehensive income (loss), net of tax [Roll Forward] | ||
Reclassification due to the adoption of ASU | $ 0 |
Other Comprehensive Income, Inf
Other Comprehensive Income, Information about the Amount of Reclassification from Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Reclassifications out of Accumulated Other Comprehensive Income ("AOCI") into Income [Abstract][Abstract] | |||
Other expenses | $ 1,209 | $ 2,594 | |
Income before income tax expense | 16,618 | 18,489 | |
Income tax expense (benefit) | 4,318 | 5,092 | |
Net income | 12,300 | 13,397 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassifications out of Accumulated Other Comprehensive Income ("AOCI") into Income [Abstract][Abstract] | |||
Income before income tax expense | 13 | 8 | |
Income tax expense (benefit) | 4 | 0 | |
Net income | 9 | 8 | |
Net Loss [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassifications out of Accumulated Other Comprehensive Income ("AOCI") into Income [Abstract][Abstract] | |||
Other expenses | [1] | $ 13 | $ 8 |
[1] | These accumulated other comprehensive income (loss) components are included in the computations of net periodic benefit cost. See Note 5. Post-retirement Benefits. |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Fees and Service Charges for Customer Services [Abstract] | ||
Fees and service charges | $ 367 | $ 312 |
Bank owned life insurance | 618 | 624 |
Net gains (losses) on sale of OREO | 29 | 0 |
Change in fair value of equity securities | (14) | (119) |
Other income | 2 | 4 |
Total non-interest income | 1,002 | 821 |
Service Charges on Deposits [Member] | ||
Fees and Service Charges for Customer Services [Abstract] | ||
Fees and service charges | 112 | 125 |
ATM and Card Interchange Fees [Member] | ||
Fees and Service Charges for Customer Services [Abstract] | ||
Fees and service charges | 141 | 131 |
Service Charges on Loans [Member] | ||
Fees and Service Charges for Customer Services [Abstract] | ||
Fees and service charges | $ 114 | $ 56 |
Leases (Details)
Leases (Details) | 3 Months Ended |
Sep. 30, 2019 | |
Minimum [Member] | |
Leases [Abstract] | |
Remaining lease terms | 1 year |
Maximum [Member] | |
Leases [Abstract] | |
Remaining lease terms | 6 years 8 months 12 days |
Leases, Balance Sheet Informati
Leases, Balance Sheet Information Related to Leases (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Balance sheet information related to leases [Abstract] | |
Operating lease right-of-use assets included in Office properties and equipment, net | $ 2,055 |
Operating lease liabilities included in Other liabilities | $ 2,057 |
Weighted average remaining lease term, in years | 4 years 7 months 6 days |
Weighted average discount rate | 2.27% |
Leases, Lease Cost (Details)
Leases, Lease Cost (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Lease cost [Abstract] | |
Operating lease cost | $ 209 |
Short-term lease cost | 27 |
Total lease cost (included in Office occupancy and equipment expense) | 236 |
Cash paid toward operating lease liabilities | $ 233 |
Leases, Future Minimum Operatin
Leases, Future Minimum Operating Lease Payments and Reconciliation to Operating Lease Liabilities (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Future minimum operating lease payments and reconciliation to operating lease liabilities [Abstract] | |
2020 | $ 568 |
2021 | 576 |
2022 | 389 |
2023 | 310 |
2024 | 179 |
Thereafter | 248 |
Total lease payments | 2,270 |
less: imputed interest | (213) |
Total operating lease liabilites | $ 2,057 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Details) - USD ($) | 3 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Recent Accounting Pronouncements [Abstract] | ||||
Compensation and employee benefits | $ 6,233,000 | $ 6,331,000 | ||
Other expenses | 1,209,000 | $ 2,594,000 | ||
Operating lease right-of-use-asset | 2,055,000 | |||
Operating lease liability | $ 2,057,000 | |||
ASU 2016-01 [Member] | ||||
Recent Accounting Pronouncements [Abstract] | ||||
Cumulative effect adjustment for equity instruments to the balance sheet | $ 658,000 | $ 658,000 | ||
ASU 2016-02 [Member] | ||||
Recent Accounting Pronouncements [Abstract] | ||||
Operating lease right-of-use-asset | 2,200,000 | |||
Operating lease liability | $ 2,200,000 |
Pending Business Combinations (
Pending Business Combinations (Details) - Valley National Bancorp [Member] $ in Millions | Jun. 25, 2019USD ($) |
Pending Business Combinations [Abstract] | |
Common stock conversion ratio | 1.60 |
Termination fee | $ 28 |
Maximum [Member] | |
Pending Business Combinations [Abstract] | |
Out of pocket expenses payable | 1.8 |
Out of pocket expenses receivable | $ 1.8 |