Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Aug. 18, 2023 | Dec. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 30, 2023 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Transition Report | false | ||
Entity File Number | 001-37399 | ||
Entity Registrant Name | KEARNY FINANCIAL CORP. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 30-0870244 | ||
Entity Address, Address Line One | 120 Passaic Avenue | ||
Entity Address, City or Town | Fairfield | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 07004 | ||
City Area Code | 973 | ||
Local Phone Number | 244-4500 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | KRNY | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 627.7 | ||
Entity Common Stock, Shares Outstanding | 65,214,903 | ||
Documents Incorporated by Reference | Portions of the definitive Proxy Statement for the Registrant’s 2023 Annual Meeting of Stockholders. (Part III) | ||
Entity Central Index Key | 0001617242 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Jun. 30, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Crowe LLP |
Auditor Location | Livingston, NJ |
Auditor Firm ID | 173 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Assets | ||
Cash and amounts due from depository institutions | $ 21,795 | $ 26,094 |
Interest-bearing deposits in other banks | 48,720 | 75,521 |
Cash and cash equivalents | 70,515 | 101,615 |
Investment securities available for sale (amortized cost of $1,383,867 and $1,462,124, respectively), net of allowance for credit losses of $0 at June 30, 2023 and June 30, 2022 | 1,227,729 | 1,344,093 |
Investment securities held to maturity (fair value of $131,169 and $108,118, respectively), net of allowance for credit losses of $0 at June 30, 2023 and June 30, 2022 | 146,465 | 118,291 |
Loans held-for-sale | 9,591 | 28,874 |
Loans receivable | 5,829,421 | 5,417,845 |
Less: allowance for credit losses on loans | (48,734) | (47,058) |
Net loans receivable | 5,780,687 | 5,370,787 |
Premises and equipment | 48,309 | 53,281 |
Federal Home Loan Bank ("FHLB") of New York stock | 71,734 | 47,144 |
Accrued interest receivable | 28,133 | 20,466 |
Goodwill | 210,895 | 210,895 |
Core deposit intangibles | 2,457 | 3,020 |
Bank owned life insurance | 292,825 | 289,177 |
Deferred income tax assets, net | 51,973 | 49,350 |
Other real estate owned | 12,956 | 178 |
Other assets | 110,546 | 82,712 |
Total Assets | 8,064,815 | 7,719,883 |
Deposits: | ||
Non-interest-bearing | 609,999 | 653,899 |
Interest-bearing | 5,019,184 | 5,208,357 |
Total deposits | 5,629,183 | 5,862,256 |
Borrowings | 1,506,812 | 901,337 |
Advance payments by borrowers for taxes | 18,338 | 16,746 |
Other liabilities | 41,198 | 45,544 |
Total Liabilities | 7,195,531 | 6,825,883 |
Stockholders' Equity | ||
Preferred stock, $0.01 par value, 100,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 800,000,000 shares authorized; 65,864,075 shares and 68,666,323 shares issued and outstanding, respectively | 659 | 687 |
Paid-in capital | 503,332 | 528,396 |
Retained earnings | 457,611 | 445,451 |
Unearned employee stock ownership plan shares; 2,358,198 shares and 2,558,895 shares, respectively | (22,862) | (24,807) |
Accumulated other comprehensive loss | (69,456) | (55,727) |
Total Stockholders' Equity | 869,284 | 894,000 |
Total Liabilities and Stockholders' Equity | $ 8,064,815 | $ 7,719,883 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Assets | ||
Securities available for sale, Amortized Cost | $ 1,383,867,000 | $ 1,462,124,000 |
Allowance for Credit Losses | 0 | 0 |
Investment securities held to maturity | 131,169,000 | 108,118,000 |
Net of allowance for credit losses | $ 0 | $ 0 |
Stockholders' Equity | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock, shares issued (in shares) | 65,864,075 | 68,666,323 |
Common stock, shares outstanding (in shares) | 65,864,075 | 68,666,323 |
Unearned employee stock ownership plan (in shares) | 2,358,198 | 2,558,895 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest Income | |||
Loans | $ 233,147 | $ 190,520 | $ 202,240 |
Taxable investment securities | 54,855 | 32,746 | 31,238 |
Tax-exempt investment securities | 694 | 1,273 | 1,652 |
Other interest-earning assets | 5,028 | 1,733 | 2,955 |
Total Interest Income | 293,724 | 226,272 | 238,085 |
Interest Expense | |||
Deposits | 78,163 | 15,208 | 31,535 |
Borrowings | 39,696 | 14,461 | 18,316 |
Total Interest Expense | 117,859 | 29,669 | 49,851 |
Net Interest Income | 175,865 | 196,603 | 188,234 |
Provision for (reversal of) credit losses | 2,486 | (7,518) | (1,121) |
Net Interest Income after Provision for (Reversal of) Credit Losses | 173,379 | 204,121 | 189,355 |
Non-Interest Income | |||
Fees and service charges | 3,106 | 2,580 | 1,897 |
(Loss) gain on sale and call of securities | (15,227) | (559) | 767 |
(Loss) gain on sale of loans | (1,645) | 2,539 | 5,574 |
(Loss) gain on sale of other real estate owned | (139) | 5 | 0 |
Income from bank owned life insurance | 8,645 | 6,167 | 6,267 |
Electronic banking fees and charges | 1,759 | 1,626 | 1,717 |
Bargain purchase gain | 0 | 0 | 3,053 |
Other income | 6,252 | 1,576 | 1,751 |
Total Non-Interest Income | 2,751 | 13,934 | 21,026 |
Total Non-Interest Income | |||
Salaries and employee benefits | 75,589 | 76,264 | 68,800 |
Net occupancy expense of premises | 12,036 | 14,114 | 12,673 |
Equipment and systems | 14,577 | 15,886 | 14,870 |
Advertising and marketing | 2,122 | 2,059 | 2,161 |
Federal deposit insurance premium | 5,133 | 2,455 | 1,940 |
Directors' compensation | 1,364 | 2,132 | 2,993 |
Merger-related expenses | 0 | 0 | 4,349 |
Realized loss on debt extinguishment | 0 | 0 | 796 |
Other expense | 12,930 | 12,798 | 17,303 |
Total Non-Interest Expense | 123,751 | 125,708 | 125,885 |
Income before Income Taxes | 52,379 | 92,347 | 84,496 |
Income tax expense | 11,568 | 24,800 | 21,263 |
Net Income | $ 40,811 | $ 67,547 | $ 63,233 |
Net Income per Common Share (EPS) | |||
Basic (in dollars per share) | $ 0.63 | $ 0.95 | $ 0.77 |
Diluted (in dollars per share) | $ 0.63 | $ 0.95 | $ 0.77 |
Weighted Average Number of Common Shares Outstanding | |||
Basic (in shares) | 64,804 | 70,911 | 82,387 |
Diluted (in shares) | 64,804 | 70,933 | 82,391 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 40,811 | $ 67,547 | $ 63,233 |
Other Comprehensive (Loss) Income, net of tax: | |||
Net unrealized loss on securities available for sale | (38,004) | (91,453) | (8,274) |
Net realized loss (gain) on sale and call of securities available for sale | 10,811 | 397 | (538) |
Fair value adjustments on derivatives | 13,211 | 28,481 | 13,470 |
Benefit plan adjustments | 253 | 704 | 229 |
Total Other Comprehensive (Loss) Income | (13,729) | (61,871) | 4,887 |
Total Comprehensive Income | $ 27,082 | $ 5,676 | $ 68,120 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance | Paid-In Capital | Paid-In Capital Cumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance | Unearned ESOP Shares | Unearned ESOP Shares Cumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Cumulative Effect, Period of Adoption, Adjusted Balance |
Balance (in shares) at Jun. 30, 2020 | 83,663,000 | 83,663,000 | ||||||||||||
Balance at Jun. 30, 2020 | $ 1,084,177 | $ (14,239) | $ 1,069,938 | $ 837 | $ 837 | $ 722,871 | $ 722,871 | $ 387,911 | $ (14,239) | $ 373,672 | $ (28,699) | $ (28,699) | $ 1,257 | $ 1,257 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net Income | 63,233 | 63,233 | ||||||||||||
Other comprehensive income, net of income tax | 4,887 | 4,887 | ||||||||||||
ESOP shares committed to be released (201 shares) | $ 2,069 | 123 | 1,946 | |||||||||||
Stock option exercise (in shares) | 41,412 | 41,000 | ||||||||||||
Stock option exercise | $ 373 | 373 | ||||||||||||
Stock repurchases (in shares) | (10,567,000) | |||||||||||||
Stock repurchases | (119,021) | $ (105) | (118,916) | |||||||||||
Issuance of shares under stock benefit plan (in shares) | 54,000 | |||||||||||||
Issuance of stock under stock benefit plans | 0 | $ 1 | (1) | |||||||||||
Stock-based compensation expense | 5,673 | 5,673 | ||||||||||||
Cancellation of stock issued for restricted stock awards (in shares) | (80,000) | |||||||||||||
Cancellation of stock issued for restricted stock awards | (803) | $ (1) | (802) | |||||||||||
Stock issued in conjunction with the acquisition of MSB Financial Corp. (in shares) | 5,854,000 | |||||||||||||
Stock issued in conjunction with the acquisition of MSB Financial Corp. | 45,133 | $ 58 | 45,075 | |||||||||||
Cash dividends declared | (28,538) | (28,538) | ||||||||||||
Balance (in shares) at Jun. 30, 2021 | 78,965,000 | |||||||||||||
Balance at Jun. 30, 2021 | 1,042,944 | $ 790 | 654,396 | 408,367 | (26,753) | 6,144 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net Income | 67,547 | 67,547 | ||||||||||||
Other comprehensive income, net of income tax | (61,871) | (61,871) | ||||||||||||
ESOP shares committed to be released (201 shares) | $ 2,546 | 600 | 1,946 | |||||||||||
Stock option exercise (in shares) | 0 | |||||||||||||
Stock repurchases (in shares) | (10,222,000) | |||||||||||||
Stock repurchases | $ (129,520) | $ (102) | (129,418) | |||||||||||
Stock-based compensation expense | 3,794 | 3,794 | ||||||||||||
Cancellation of stock issued for restricted stock awards (in shares) | (77,000) | |||||||||||||
Cancellation of stock issued for restricted stock awards | (977) | $ (1) | (976) | |||||||||||
Cash dividends declared | $ (30,463) | (30,463) | ||||||||||||
Balance (in shares) at Jun. 30, 2022 | 68,666,323 | 68,666,000 | ||||||||||||
Balance at Jun. 30, 2022 | $ 894,000 | $ 687 | 528,396 | 445,451 | (24,807) | (55,727) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net Income | 40,811 | 40,811 | ||||||||||||
Other comprehensive income, net of income tax | (13,729) | (13,729) | ||||||||||||
ESOP shares committed to be released (201 shares) | $ 1,937 | (8) | 1,945 | |||||||||||
Stock option exercise (in shares) | 0 | |||||||||||||
Stock repurchases (in shares) | (2,821,000) | |||||||||||||
Stock repurchases | $ (27,558) | $ (29) | (27,529) | |||||||||||
Issuance of shares under stock benefit plan (in shares) | 61,000 | |||||||||||||
Issuance of stock under stock benefit plans | 0 | $ 1 | (1) | |||||||||||
Stock-based compensation expense | 2,936 | 2,936 | ||||||||||||
Cancellation of stock issued for restricted stock awards (in shares) | (42,000) | |||||||||||||
Cancellation of stock issued for restricted stock awards | (462) | (462) | ||||||||||||
Cash dividends declared | $ (28,651) | (28,651) | ||||||||||||
Balance (in shares) at Jun. 30, 2023 | 65,864,075 | 65,864,000 | ||||||||||||
Balance at Jun. 30, 2023 | $ 869,284 | $ 659 | $ 503,332 | $ 457,611 | $ (22,862) | $ (69,456) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
ESOP shares committed to be released (in shares) | 201 | 201 | 201 |
Dividends declared per common share (in dollars per share) | $ 0.44 | $ 0.43 | $ 0.35 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash Flows from Operating Activities: | |||
Net Income | $ 40,811 | $ 67,547 | $ 63,233 |
Adjustment to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of premises and equipment | 5,733 | 5,971 | 5,862 |
Net accretion of yield adjustments | (5,084) | (5,669) | (13,214) |
Deferred income taxes and valuation allowance | 2,789 | 5,023 | 4,154 |
Bargain purchase gain | 0 | 0 | (3,053) |
Amortization of intangible assets | 563 | 685 | 980 |
Amortization of benefit plans’ unrecognized net loss | 358 | 1,003 | 320 |
Provision for (reversal of) credit losses | 2,486 | (7,518) | (1,121) |
Loss (gain) on sale of other real estate owned | 139 | (5) | 0 |
Loans originated for sale | (106,288) | (179,727) | (281,086) |
Proceeds from sale of mortgage loans held-for-sale | 127,416 | 196,796 | 290,530 |
Loss (gain) on sale of mortgage loans held-for-sale, net | 1,700 | (2,415) | (5,147) |
Realized loss (gain) on sale/call of securities available for sale | 15,227 | 559 | (767) |
Realized loss on debt extinguishment | 0 | 0 | 796 |
Realized gain on sale of loans receivable | (55) | (124) | (427) |
Realized gain on disposition of premises and equipment | (2,886) | (363) | (971) |
Loss on write-down of premises | 0 | 0 | 1,938 |
Increase in cash surrender value of bank owned life insurance | (8,645) | (6,167) | (6,267) |
ESOP and stock-based compensation expense | 4,873 | 6,340 | 7,742 |
Increase in interest receivable | (7,667) | (1,104) | (288) |
Decrease (increase) in other assets | 2,833 | 7,922 | (4,454) |
Increase (decrease) in interest payable | 9,776 | 853 | (638) |
(Decrease) increase in other liabilities | (14,530) | (8,306) | 17,295 |
Net Cash Provided by Operating Activities | 69,549 | 81,301 | 75,417 |
Purchases of: | |||
Investment securities available for sale | (166,483) | (229,145) | (918,668) |
Investment securities held to maturity | (40,398) | (86,406) | (12,321) |
Proceeds from: | |||
Repayments/calls/maturities of investment securities available for sale | 124,687 | 330,152 | 517,511 |
Repayments/calls/maturities of investment securities held to maturity | 12,095 | 6,116 | 6,595 |
Sale of investment securities available for sale | 105,199 | 100,336 | 98,084 |
Purchase of loans | (702) | (123,389) | (81,707) |
Net (increase) decrease in loans receivable | (435,111) | (467,236) | 232,660 |
Proceeds from sale of loans receivable | 706 | 1,450 | 44,801 |
Purchase of interest rate caps | (758) | 0 | 0 |
Proceeds from sale of other real estate owned | 315 | 708 | 0 |
Additions to premises and equipment | (1,355) | (2,920) | (5,458) |
Proceeds from death benefit of bank owned life insurance | 4,997 | 300 | 0 |
Proceeds from cash settlement of premises and equipment | 3,480 | 612 | 4,852 |
Purchase of FHLB stock | (98,275) | (30,382) | (37) |
Redemption of FHLB stock | 73,685 | 19,853 | 25,421 |
Net cash acquired in acquisition | 0 | 0 | 4,296 |
Net Cash Used in Investing Activities | (417,918) | (479,951) | (83,971) |
Cash Flows from Financing Activities: | |||
Net (decrease) increase in deposits | (232,804) | 377,606 | 596,583 |
Repayment of term FHLB advances | (5,650,000) | (4,100,000) | (2,847,796) |
Proceeds from term FHLB advances | 6,280,000 | 4,085,000 | 2,345,000 |
Net (decrease) increase in other short-term borrowings | (25,000) | 230,000 | (48,635) |
Net increase (decrease) in advance payments by borrowers for taxes | 1,592 | 994 | (1,611) |
Repurchase and cancellation of common stock of Kearny Financial Corp. | (27,558) | (129,520) | (119,021) |
Cancellation of shares repurchased on vesting to pay taxes | (462) | (977) | (803) |
Exercise of stock options | 0 | 0 | 373 |
Dividends paid | (28,499) | (30,693) | (28,648) |
Net Cash Provided by (Used in) Financing Activities | 317,269 | 432,410 | (104,558) |
Net (Decrease) Increase in Cash and Cash Equivalents | (31,100) | 33,760 | (113,112) |
Cash and Cash Equivalents - Beginning | 101,615 | 67,855 | 180,967 |
Cash and Cash Equivalents - Ending | 70,515 | 101,615 | 67,855 |
Cash paid during the year for: | |||
Income taxes, net of refunds | 9,883 | 15,552 | 19,734 |
Interest | 108,516 | 28,816 | 50,488 |
Non-cash investing and financing activities: | |||
Transfers from loans receivable to loans held-for-sale | 3,545 | 27,036 | 43,579 |
Acquisition of other real estate owned in settlement of loans | 13,232 | 703 | 0 |
Fair value of assets acquired, net of cash and cash equivalents acquired | 0 | 0 | 567,816 |
Fair value of liabilities assumed | $ 0 | $ 0 | $ 523,926 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Consolidated Financial Statement Presentation The consolidated financial statements include the accounts of Kearny Financial Corp. (the “Company”), its wholly-owned subsidiary, Kearny Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries, CJB Investment Corp. and 189-245 Berdan Avenue LLC. The Company conducts its business principally through the Bank. Management prepared the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”), including the elimination of all significant inter-company accounts and transactions during consolidation. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the Consolidated Statements of Financial Condition and revenues and expenses for the periods then ended. Actual results could differ significantly from those estimates. Business of the Company and Subsidiaries The Company’s primary business is the ownership and operation of the Bank. The Bank is principally engaged in the business of attracting deposits from the general public and using those deposits, together with other funds, to originate or purchase loans for its portfolio and invest in securities. Loans originated or purchased by the Bank generally include loans collateralized by residential and commercial real estate augmented by secured and unsecured loans to businesses and consumers. The investment securities purchased by the Bank generally include U.S. agency mortgage-backed securities, U.S. government and agency debentures, obligations of state and political subdivisions, corporate bonds, asset-backed securities, collateralized loan obligations and subordinated debt. At June 30, 2023, the Bank had two wholly-owned subsidiaries, CJB Investment Corp. and 189-245 Berdan Avenue LLC. CJB Investment Corp was organized under New Jersey law as a New Jersey Investment Company and remained active through the three-year period ended June 30, 2023. 189-245 Berdan Avenue LLC was formed during the year ended June 30, 2023 for the purpose of ownership and operation of commercial real estate. Subsequent Events The Company has evaluated events and transactions occurring subsequent to the statement of financial condition date of June 30, 2023, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date this document was filed. On July 27, 2023, the Company declared a quarterly cash dividend of $0.11 per share, paid on August 23, 2023 to stockholders of record as of August 9, 2023. Cash and Cash Equivalents Cash and cash equivalents include cash, deposits with other financial institutions with maturities fewer than 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions and borrowings with original maturities fewer than 90 days. Securities The Company classifies its investment securities as either available for sale or held to maturity. The Company does not use or maintain a trading account. Investment securities that management has the positive intent and ability to hold to maturity are classified as held to maturity and reported at amortized cost. Investment securities not classified as held to maturity are classified as available for sale and reported at fair value, with unrealized holding gains or losses, net of deferred income taxes, reported in the accumulated other comprehensive income (“OCI”) component of stockholders’ equity. Premiums on callable securities are amortized to the earliest call date whereas discounts on such securities are accreted to the maturity date utilizing the level-yield method. Premiums and discounts on all other securities are generally amortized or accreted to the maturity date utilizing the level-yield method taking into consideration the impact of principal amortization and prepayments, as applicable. Gain or loss on sales of securities is based on the specific identification method. Effective July 1, 2020, the Company adopted the provisions of ASC 326 and modified its accounting policy for the assessment of available for sale securities for impairment. Under ASC 326, for available for sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more than likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities available for sale that do not meet the above criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating by a rating agency, and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of tax. The Company elected the practical expedient of zero loss estimates for securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rate by major agencies and have a long history of no credit losses. Under ASC 326, changes in the allowance for credit losses are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Concentration of Risk Financial instruments which potentially subject the Company and its subsidiaries to concentrations of credit risk consist of cash and cash equivalents, investment securities and loans receivable. Cash and cash equivalents include deposits placed in other financial institutions. Securities include concentrations of investments backed by U.S. government agencies and U.S. government sponsored enterprises (“GSEs”), including the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”) and the Government National Mortgage Association (“Ginnie Mae”). Additional concentration risk exists in the Company’s municipal and corporate obligations, asset-backed securities and collateralized loan obligations. The Company’s lending activity is primarily concentrated in loans collateralized by real estate in the states of New Jersey and New York. As a result, credit risk is broadly dependent on the real estate market and general economic conditions in these states. Additionally, the Company’s lending policies limit the amount of credit extended to any single borrower and their related interests thereby limiting the concentration of credit risk to any single borrower. Loans Receivable Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at unpaid principal balances, net of deferred loan origination fees and costs, purchase discounts and premiums, purchase accounting fair value adjustments and the allowance for credit losses. Interest income is accrued on the unpaid principal balance. Certain direct loan origination costs, net of loan origination fees, are deferred and amortized, using the level-yield method, as an adjustment of yield over the contractual lives of the related loans. Unearned premiums and discounts are amortized or accreted utilizing the level-yield method over the contractual lives of the related loans. Loans Held-for-Sale Loans held-for-sale are carried at the lower of cost or estimated fair value, as determined on an aggregate basis. Net unrealized losses, if any, are recognized in a valuation allowance through a charge to earnings. Premiums and discounts and origination fees and costs on loans held-for-sale are deferred and recognized as a component of the gain or loss on sale. Gains and losses on sales of loans held-for-sale are recognized on settlement dates and are determined by the difference between the sale proceeds and the carrying value of the loans. These transactions are accounted for as sales based on satisfaction of the criteria for such accounting which provide that, as transferor, control over the loans have been surrendered. Past Due Loans A loan’s past due status is generally determined based upon its principal and interest (“P&I”) payment delinquency status in conjunction with its past maturity status, where applicable. A loan’s P&I payment delinquency status is based upon the number of calendar days between the date of the earliest P&I payment due and the as of measurement date. A loan’s past maturity status, where applicable, is based upon the number of calendar days between a loan’s contractual maturity date and the as of measurement date. Based upon the larger of these criteria, loans are categorized into the following past due tiers for financial statement reporting and disclosure purposes: Current (including 1-29 days), 30-59 days, 60-89 days and 90 or more days. Nonaccrual Loans Loans are generally placed on nonaccrual status when contractual payments become 90 or more days past due or when the Company does not expect to receive all P&I payments owed substantially in accordance with the terms of the loan agreement, regardless of past due status. Loans that become 90 day past due, but are well secured and in the process of collection, may remain on accrual status. Nonaccrual loans are generally returned to accrual status when all payments due are brought current and the Company expects to receive all remaining P&I payments owed substantially in accordance with the terms of the loan agreement. Payments received in cash on nonaccrual loans, including both the principal and interest portions of those payments, are generally applied to reduce the carrying value of the loan. Classification of Assets In compliance with the regulatory guidelines, the Company’s loan review system includes an evaluation process through which certain loans exhibiting adverse credit quality characteristics are classified as Special Mention, Substandard, Doubtful or Loss. An asset is classified as Substandard if it is inadequately protected by the paying capacity and net worth of the obligor or the collateral pledged, if any. Substandard assets include those characterized by the distinct possibility that the insured institution will sustain some loss if the deficiencies are not corrected. Assets classified as Doubtful have all of the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses present make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions and values. Assets, or portions thereof, classified as Loss are considered uncollectible or of so little value that their continuance as assets is not warranted. Assets which do not currently expose the Company to a sufficient degree of risk to warrant an adverse classification but have some credit deficiencies or other potential weaknesses are designated as Special Mention by management. Adversely classified assets together with those rated as Special Mention, are generally referred to as Classified Assets. Non-classified assets are internally rated within one of four Pass categories or as Watch with the latter denoting a potential deficiency or concern that warrants increased oversight or tracking by management until remediated. Management generally performs a classification of assets review, including the regulatory classification of assets, on an ongoing basis. The results of the classification of assets review are validated by the Company’s third party loan review firm during their quarterly independent review. In the event of a difference in rating or classification between those assigned by the internal and external resources, the Company will generally utilize the more critical or conservative rating or classification. Final loan ratings and regulatory classifications are presented monthly to the Board of Directors and are reviewed by regulators during the examination process. Allowance for Credit Losses Effective July 1, 2020, the Company adopted the provisions of ASC 326 and modified its accounting policy for the allowance for credit losses on loans. The allowance for credit losses represents the estimated amount considered necessary to cover lifetime expected credit losses inherent in financial assets at the balance sheet date. The measurement of expected credit losses is applicable to loans receivable and securities measured at amortized cost. It also applies to off-balance sheet credit exposures such as loan commitments and unused lines of credit. The allowance is established through a provision for credit losses that is charged against income. The methodology for determining the allowance for credit losses is considered a critical accounting policy by management because of the high degree of judgment involved, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment that could result in changes to the amount of the recorded allowance for credit losses. The allowance for credit losses is reported separately as a contra-asset on the Consolidated Statements of Financial Condition. The expected credit losses for unfunded lending commitments and unfunded loan commitments is reported on the Consolidated Statements of Financial Condition in other liabilities while the provision for credit losses related to unfunded commitments is reported in other non-interest expense. Allowance for Credit Losses on Loans Receivable The allowance for credit losses on loans is deducted from the amortized cost basis of the loan to present the net amount expected to be collected. Expected losses are evaluated and calculated on a collective, or pooled, basis for those loans which share similar risk characteristics. At each reporting period, the Company evaluates whether loans within a pool continue to exhibit similar risk characteristics. If the risk characteristics of a loan change, such that they are no longer similar to other loans in the pool, the Company will evaluate the loan with a different pool of loans that share similar risk characteristics. If the loan does not share risk characteristics with other loans, the Company will evaluate the loan on an individual basis. The Company evaluates the pooling methodology at least annually. Loans are charged off against the allowance for credit losses when the Company believes the balances to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off. The Company has chosen to segment its portfolio consistent with the manner in which it manages credit risk. Such segments include multi-family mortgage, nonresidential mortgage, commercial business, construction, one- to four-family residential mortgage, home equity and consumer. For most segments the Company calculates estimated credit losses using a probability of default and loss given default methodology, the results of which are applied to the aggregated discounted cash flow of each individual loan within the segment. The point in time probability of default and loss given default are then conditioned by macroeconomic scenarios to incorporate reasonable and supportable forecasts that affect the collectability of the reported amount. The Company estimates the allowance for credit losses on loans via a quantitative analysis which considers relevant available information from internal and external sources related to past events and current conditions, as well as the incorporation of reasonable and supportable forecasts. The Company evaluates a variety of factors including third party economic forecasts, industry trends and other available published economic information in arriving at its forecasts. After the reasonable and supportable forecast period, the Company reverts, on a straight-line basis, to the historical average economic variables. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the renewal option is included in the original or modified contract at the reporting date and are not unconditionally cancelable by the Company. Also included in the allowance for credit losses on loans are qualitative reserves to cover losses that are expected but, in the Company’s assessment, may not be adequately represented in the quantitative analysis or the forecasts described above. Factors that the Company considers include changes in lending policies and procedures, business conditions, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due loans and non-accrual loans, the effect of external factors such as competition, legal and regulatory requirements, among others. Qualitative loss factors are applied to each portfolio segment with the amounts judgmentally determined by the relative risk to the most severe loss periods identified in the historical loan charge-offs of a peer group of similar-sized regional banks. Individually Evaluated Loans On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on its disparate risk characteristics. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will charge off the difference between the fair value of the collateral, less costs to sell at the reporting date and the amortized cost basis of the loan. Acquired Loans Acquired loans are included in the Company's calculation of the allowance for credit losses. How the allowance on an acquired loan is recorded depends on whether or not it has been classified as a Purchased Credit Deteriorated (“PCD”) loan. PCD loans are loans acquired at a discount that is due, in part, to credit quality. PCD loans are accounted for in accordance with ASC Subtopic 326-20 and are initially recorded at fair value as determined by the sum of the present value of expected future cash flows and an allowance for credit losses at acquisition. The allowance for PCD loans is recorded through a gross-up effect, while the allowance for acquired non-PCD loans is recorded through provision expense, consistent with originated loans. Thus, the determination of which loans are PCD and non-PCD can have a significant impact on the accounting for these loans. Subsequent to acquisition, the allowance for PCD loans will generally follow the same estimation, provision and charge-off process as non-PCD acquired and originated loans. Allowance for Credit Losses on Off-Balance Sheet Commitments The Company is required to include unfunded commitments that are expected to be funded in the future within the allowance calculation, other than those that are unconditionally cancelable. To arrive at that reserve, the reserve percentage for each applicable segment is applied to the unused portion of the expected commitment balance and is multiplied by the expected funding rate. To determine the expected funding rate, the Company uses a historical utilization rate for each segment. As noted above, the allowance for credit losses on unfunded loan commitments is included in other liabilities on the Consolidated Statements of Financial Condition and the related credit expense is recorded in other non-interest expense in the Consolidated Statements of Income. Troubled Debt Restructurings (“TDR”) A modification to the terms of a loan is generally considered a TDR if the Company grants a concession to a borrower, that it would not otherwise consider, due to the borrower’s financial difficulties. In granting the concession, the Company’s general objective is to obtain more cash or other value from the borrower or otherwise increase the probability of repayment. A TDR may include, but is not necessarily limited to, the modification of loan terms such as the reduction of the loan’s stated interest rate, extension of the maturity date and/or reduction or deferral of amounts owed under the terms of the loan agreement. In measuring the impairment associated with restructured loans that qualify as TDRs, the Company compares the present value of the cash flows that are expected to be received in accordance with the loan’s modified terms, discounted at the loan’s original contractual interest rate, with the pre-modification carrying value to measure impairment. All restructured loans that qualify as TDRs are placed on nonaccrual status for a period of no less than six months after restructuring, irrespective of the borrower’s adherence to a TDR’s modified repayment terms during which time TDRs continue to be adversely classified and reported as impaired. TDRs may be returned to accrual status and a non-adverse classification if (1) the borrower has paid timely P&I payments in accordance with the terms of the restructured loan agreement for no less than six consecutive months after restructuring, and (2) the Company expects to receive all P&I payments owed substantially in accordance with the terms of the restructured loan agreement. Premises and Equipment Land is carried at cost. Office buildings, leasehold improvements and furniture, fixtures and equipment are carried at cost, less accumulated depreciation and amortization. Office buildings and furniture, fixtures and equipment are depreciated using the straight-line method over their estimated useful lives of the respective assets. Leasehold improvements are amortized using the straight-line method over the terms of the respective leases or lives of the assets, whichever is shorter. Construction in progress primarily represents facilities under construction for future use in our business and includes all costs to acquire land and construct buildings, as well as capitalized interest during the construction period. Interest is capitalized at the Company’s average cost of interest-bearing liabilities. Other Real Estate Owned and Other Repossessed Assets Properties and other assets acquired through foreclosure, deed in lieu of foreclosure or repossession are carried at estimated fair value, less estimated selling costs. The estimated fair value of real estate property and other repossessed assets is generally based on independent appraisals. When an asset is acquired, the excess of the loan balance over fair value, less estimated selling costs, is charged to the allowance for credit losses. Thereafter, decreases in the properties’ estimated fair value are charged to income along with any additional property maintenance and protection expenses incurred in owning the properties. Federal Home Loan Bank Stock Federal law requires a member institution of the FHLB system to hold restricted stock of its district FHLB according to a predetermined formula. The restricted stock is carried at cost, less any applicable impairment. Both cash and stock dividends are reported as income. Goodwill and Other Intangible Assets Goodwill arises from business combinations and is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company performed its annual impairment test during the fourth quarter of its fiscal year ended June 30, 2023. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our audited Consolidated Statements of Financial Condition. In assessing impairment, the Company has the option to perform a qualitative analysis to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount. If, after assessing the totality of such events or circumstances, the Company determines it is not more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, then the Company would not be required to perform a quantitative impairment test. For the year ended June 30, 2023, the annual quantitative assessment of goodwill for our single reporting unit was performed utilizing a discounted cash flow analysis (“income approach”) and estimates of selected market information (“market approaches”). The income approach measures the fair value of an interest in a business by discounting expected future cash flows to present value. The market approaches take into consideration fair values of comparable companies operating in similar lines of business that are potentially subject to similar economic and environmental factors and could be considered reasonable investment alternatives. The result of the income approach was weighted at 50% and the results of the market approaches comprised the remaining 50% in determining the fair value of our single reporting unit. The results of the annual quantitative impairment analysis indicated that the fair value exceeded the carrying value for our single reporting unit. No impairment charges were required to be recorded in the years ended June 30, 2023, 2022 or 2021. If an impairment loss is determined to exist in the future, such loss will be reflected as an expense in the Consolidated Statements of Income in the period in which the impairment loss is determined. The balance of other intangible assets at June 30, 2023 and 2022 totaled $2.5 million and $3.0 million, respectively, representing the remaining unamortized balance of the core deposit intangibles ascribed to the value of deposits acquired by the Bank through the acquisition of Clifton Bancorp Inc. in April 2018 and MSB Financial Corp. in July 2020. Bank Owned Life Insurance Bank owned life insurance is accounted for using the cash surrender value method and is recorded at its net realizable value. The change in the net asset value is recorded as a component of non-interest income. A deferred liability has been recorded for the estimated cost of postretirement life insurance benefits accruing to applicable employees and directors covered by an endorsement split-dollar life insurance arrangement. Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company - put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Income Taxes The Company and its subsidiaries file consolidated federal income tax returns. Federal income taxes are allocated to each entity based on their respective contributions to the taxable income of the consolidated income tax returns. Separate state income tax returns are filed for the Company and its subsidiaries on either a consolidated or unconsolidated basis as required by the jurisdiction. The federal income tax rate of 21% was applicable for the years ended June 30, 2023, 2022 or 2021. Federal and state income taxes have been provided on the basis of the Company’s income or loss as reported in accordance with GAAP. The amounts reflected on the Company’s state and federal income tax returns differ from these provisions due principally to temporary differences in the reporting of certain items for financial statement reporting and income tax reporting purposes. The tax effect of these temporary differences is accounted for as deferred taxes applicable to future periods. Deferred income tax expense or benefit is determined by recognizing deferred tax assets and liabilities for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. The realization of deferred tax assets is assessed and a valuation allowance provided for the full amount which is not more likely than not to be realized. The Company identified no significant income tax uncertainties through the evaluation of its income tax positions as of June 30, 2023 and 2022. Therefore, the Company has no unrecognized income tax benefits as of those dates. Our policy is to recognize interest and penalties on unrecognized tax benefits in income tax expense in the Consolidated Statements of Income. The Company recognized no material interest and penalties during the years ended June 30, 2023, 2022 or 2021. The tax years subject to examination by the taxing authorities are the years ended June 30, 2022, 2021 and 2020. Retirement Plans Pension expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. Employee 401(k) and profit sharing plan expense is the amount of matching contributions. Deferred compensation plan expense allocates the benefits over years of service. Employee Stock Ownership Plan The cost of shares issued to the Employee Stock Ownership Plan (the “ESOP”), but not yet allocated to participants, is shown as a reduction of shareholders’ equity. Compensation expense is based on the market price of shares as they are committed to be released to participant accounts. Dividends on allocated and unallocated ESOP shares either reduce retained earnings or reduce debt and accrued interest as determined by the ESOP Plan Administrator. Comprehensive Income Comprehensive income is comprised of net income and other comprehensive income (loss). Other comprehensive income (loss) includes items recorded in equity, such as unrealized gains and losses on securities available for sale, unrealized gains and losses on derivatives and amortization related to post-retirement obligations. Comprehensive income is presented in a separate Consolidated Statement of Comprehensive Income. Loss Contingencies Loss contingencies, including claims and legal actions arisin |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2022, the Financial Accounting Standards Board (the “FASB”) issued ASU 2022-02, “Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” to improve the usefulness of information provided to investors about certain loan refinancings, restructurings and writeoffs. ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings by creditors and enhances disclosure requirements for certain modifications made to borrowers experiencing financial difficulty. In addition, ASU 2022-02 requires public business entities to disclose current-period gross writeoffs for financing receivables and net investments in leases by year of origination in the vintage disclosures. For entities that have adopted ASU 2016-13, the amendments in ASU 2022-02 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted if an entity has adopted ASU 2016-13, including adoption in an interim period. If an entity elects to early adopt the amendments in ASU 2022-02, the guidance should be applied as of the beginning of the fiscal year that includes the interim period. An entity may elect to early adopt the amendments about TDRs and related disclosure enhancements separately from the amendments related to vintage disclosures. The amendments in ASU 2022-02 should be applied prospectively, but for the amendments related to the recognition and measurement of TDRs, an entity has the option to apply a modified retrospective transition method that would result in a cumulative-effect adjustment to retained earnings in the period of adoption. The Company is currently evaluating the impact of the adoption of this ASU on its consolidated financial statements. Adoption of New Accounting Standards In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848” that extends the period of time preparers can utilize the reference rate reform relief guidance. In 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” which provides optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The objective of the guidance in Topic 848 is to provide relief during the temporary transition period, so the FASB included a sunset provision within Topic 848 based on expectations of when LIBOR would cease being published. In 2021, the UK Financial Conduct Authority delayed the intended cessation date of certain tenors of USD LIBOR to June 30, 2023. To ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, ASU 2022-06 defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. For all entities, the amendments in ASU 2022-06 are effective upon issuance. The Company adopted this ASU on December 21, 2022 on a prospective basis; therefore, there was no impact to its consolidated financial statements upon adoption. In March 2022, the FASB issued ASU 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method” which clarifies the guidance in ASC 815 on fair value hedge accounting of interest rate risk for portfolios of financial assets. This ASU amends the guidance in ASU 2017-12 (released in August 2017) that, among other things, established the last-of-layer method to enable fair value hedge accounting for these portfolios to be more accessible. ASU 2022-01 expands the current last-of-layer method to allow multiple hedged layers of a single closed portfolio under this method. To reflect that expansion, the last-of-layer method is renamed the portfolio layer method. The scope of last-of-layer hedging will be expanded so that the portfolio layer method can be utilized for nonprepayable financial assets. In addition, ASU 2022-01 specifies eligible hedging instruments in a single-layer hedge, provides additional guidance on the accounting for and disclosure of hedge basis adjustments under the portfolio layer method, and specifies how hedge basis adjustments should be considered when determining credit losses for the assets included in the closed portfolio. For public business entities, the amendments in ASU 2022-01 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted on any date on or after the issuance of ASU 2022-01 for any entity that has adopted the amendments in ASU 2017-12 for the corresponding period. The Company adopted this ASU on July 1, 2022 on a prospective basis; therefore, there was no impact to its consolidated financial statements upon adoption. |
Business Combination
Business Combination | 12 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination | Business Combination On July 10, 2020, the Company completed its acquisition of MSB Financial Corp. (“MSB”) and its subsidiary, Millington Bank. In accordance with the merger agreement, approximately $9.8 million in cash and 5,853,811 shares of Company common stock were distributed to former MSB shareholders in exchange for their shares of MSB common stock. The assets acquired and liabilities assumed have been accounted for under the acquisition method of accounting. Management engaged a third-party specialist to develop the fair value estimate of certain MSB’s assets and liabilities as of the acquisition date. The assets and liabilities, both tangible and intangible, were recorded at their fair values as of July 10, 2020 based on management’s best estimate using the information available as of the merger date. The application of the acquisition method of accounting resulted in the recognition of bargain purchase gain of $3.1 million and a core deposit intangible of $690,000. During the year ended June 30, 2021, the Company completed all MSB tax returns and determined that there were no material adjustments to the balance of deferred income tax assets or bargain purchase gain associated with the MSB acquisition. The Company recorded the assets acquired and liabilities assumed through the merger at fair value as summarized in the following table: As Recorded Fair Value Adjustments As Recorded (In Thousands) Cash paid for acquisition $ 9,830 Value of stock issued 45,133 Total purchase price $ 54,963 Cash and cash equivalents $ 14,126 $ — $ 14,126 Investment securities 4,000 (510) (a) 3,490 Loans receivable 537,589 (7,345) (b) 530,244 Allowance for loan losses (6,037) 6,037 (c) — Premises and equipment 7,698 (3,221) (d) 4,477 FHLB stock 3,345 — 3,345 Accrued interest receivable 1,701 — 1,701 Core deposit intangibles — 690 (e) 690 Bank owned life insurance 14,663 — 14,663 Deferred income taxes, net 1,729 2,152 (f) 3,881 Other assets 4,830 495 (g) 5,325 Total assets acquired $ 583,644 $ (1,702) $ 581,942 Deposits $ 458,392 $ 1,786 (h) $ 460,178 FHLB borrowings 62,900 — 62,900 Advance payments by borrowers for taxes 794 — 794 Other liabilities 810 (756) (i) 54 Total liabilities assumed $ 522,896 $ 1,030 $ 523,926 Net assets acquired $ 58,016 Bargain purchase gain $ (3,053) ________________________________________ Explanation of certain fair value related adjustments : (a) Represents the fair value adjustments on investment securities. (b) Represents the fair value adjustments on the net book value of loans, which includes an interest rate mark and credit mark adjustment and the reversal of deferred fees/costs and premiums. (c) Represents the elimination of MSB’s allowance for loan losses. (d) Represents the fair value adjustments to reflect the fair value of land and buildings and premises and equipment, which will be amortized on a straight-line basis over the estimated useful lives of the individual assets. (e) Represents the intangible assets recorded to reflect the fair value of core deposits. The core deposit asset was recorded as an identifiable intangible asset and will be amortized on an accelerated basis over the estimated average life of the deposit base. (f) Represents an adjustment to net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangible assets recorded. (g) Represents an adjustment to other assets acquired. (h) Represents fair value adjustments on time deposits, which will be treated as a reduction of interest expense over the remaining term of the time deposits. (i) Represents an adjustment to other liabilities assumed. The fair value of loans acquired from MSB was estimated using cash flow projections based on the remaining maturity and repricing terms. Cash flows were adjusted by estimating future credit losses and the rate of prepayments. Projected monthly cash flows were then discounted to present value using a risk-adjusted market rate for similar loans. There was no carryover of MSB’s allowance for loan losses associated with the loans that were acquired. For information regarding purchased loans which have been determined to be PCD, refer to Note 5, Loans Receivable. The core deposit intangible asset recognized is being amortized over its estimated useful life of approximately 10 years utilizing the sum-of-the-years digits method. The fair value of retail demand and interest bearing deposit accounts was assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. The fair value of time deposits was estimated by discounting the contractual future cash flows using market rates offered for time deposits of similar remaining maturities. Merger-related expenses were recorded in the Consolidated Statements of Income as a component of non-interest expense and include costs relating to the Company’s acquisition of MSB, as described above. These charges represent one-time costs associated with acquisition activities and are expensed as incurred. Direct acquisition and other charges were recorded in merger-related expense on the Consolidated Statements of Income. Direct acquisition and other charges incurred in connection with the MSB merger totaled $4.3 million for the year ended June 30, 2021. |
Securities
Securities | 12 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The following tables present the amortized cost, gross unrealized gains and losses and estimated fair values for available for sale securities and the amortized cost, gross unrecognized gains and losses and estimated fair values for held to maturity securities as of the dates indicated. June 30, 2023 Amortized Gross Gross Allowance for Fair (In Thousands) Available for sale: Debt securities: Asset-backed securities $ 138,281 $ 4 $ 2,115 $ — $ 136,170 Collateralized loan obligations 381,915 268 5,187 — 376,996 Corporate bonds 159,666 — 24,648 — 135,018 Total debt securities 679,862 272 31,950 — 648,184 Mortgage-backed securities: Residential pass-through securities (1) 539,506 2 103,357 — 436,151 Commercial pass-through securities (1) 164,499 — 21,105 — 143,394 Total mortgage-backed securities 704,005 2 124,462 — 579,545 Total securities available for sale $ 1,383,867 $ 274 $ 156,412 $ — $ 1,227,729 ________________________________________ (1) Government-sponsored enterprises. June 30, 2022 Amortized Gross Gross Allowance for Fair (In Thousands) Available for sale: Debt securities: Obligations of state and political subdivisions $ 28,485 $ 39 $ 89 $ — $ 28,435 Asset-backed securities 169,506 — 2,949 — 166,557 Collateralized loan obligations 315,693 — 7,880 — 307,813 Corporate bonds 159,871 175 6,649 — 153,397 Total debt securities 673,555 214 17,567 — 656,202 Mortgage-backed securities: Collateralized mortgage obligations (1) 7,451 — 329 — 7,122 Residential pass-through securities (1) 595,337 45 80,624 — 514,758 Commercial pass-through securities (1) 185,781 1 19,771 — 166,011 Total mortgage-backed securities 788,569 46 100,724 — 687,891 Total securities available for sale $ 1,462,124 $ 260 $ 118,291 $ — $ 1,344,093 ________________________________________ (1) Government-sponsored enterprises. June 30, 2023 Amortized Gross Gross Allowance for Fair (In Thousands) Held to maturity: Debt securities: Obligations of state and political subdivisions $ 16,051 $ — $ 321 $ — $ 15,730 Total debt securities 16,051 — 321 — 15,730 Mortgage-backed securities: Residential pass-through securities (1) 118,166 — 12,736 — 105,430 Commercial pass-through securities (1) 12,248 — 2,239 — 10,009 Total mortgage-backed securities 130,414 — 14,975 — 115,439 Total securities held to maturity $ 146,465 $ — $ 15,296 $ — $ 131,169 ________________________________________ (1) Government-sponsored enterprises. June 30, 2022 Amortized Gross Gross Allowance for Fair (In Thousands) Held to maturity: Debt securities: Obligations of state and political subdivisions $ 21,159 $ 44 $ 78 $ — $ 21,125 Total debt securities 21,159 44 78 — 21,125 Mortgage-backed securities: Residential pass-through securities (1) 84,851 — 8,587 — 76,264 Commercial pass-through securities (1) 12,281 — 1,552 — 10,729 Total mortgage-backed securities 97,132 — 10,139 — 86,993 Total securities held to maturity $ 118,291 $ 44 $ 10,217 $ — $ 108,118 ________________________________________ (1) Government-sponsored enterprises. Excluding the balances of mortgage-backed securities, the following tables present the amortized cost and estimated fair values of debt securities available for sale and held to maturity, by contractual maturity, at June 30, 2023: June 30, 2023 Amortized Fair (In Thousands) Available for sale debt securities: Due in one year or less $ — $ — Due after one year through five years 21,865 21,526 Due after five years through ten years 363,433 339,589 Due after ten years 294,564 287,069 Total $ 679,862 $ 648,184 June 30, 2023 Amortized Fair (In Thousands) Held to maturity debt securities: Due in one year or less $ 3,386 $ 3,361 Due after one year through five years 12,054 11,776 Due after five years through ten years 611 593 Due after ten years — — Total $ 16,051 $ 15,730 Sales of securities available for sale were as follows for the periods presented below: Year Ended June 30, 2023 2022 2021 (In Thousands) Available for sale securities sold: Proceeds from sales of securities $ 105,199 $ 100,336 $ 98,084 Gross realized gains $ — $ — $ 1,196 Gross realized losses (15,227) (565) (470) Net (loss) gain on sales of securities $ (15,227) $ (565) $ 726 Gains resulting from calls of securities available for sale were as follows for the periods presented below: Year Ended June 30, 2023 2022 2021 (In Thousands) Available for sale securities called: Gross realized gains $ — $ 6 $ 41 Gross realized losses — — — Net gain on calls of securities $ — $ 6 $ 41 During the years ended June 30, 2023, 2022 and 2021, there were no gains or losses recorded on sales or calls of securities held to maturity. The carrying value of securities pledged for borrowings at the FHLB and other institutions, and securities pledged for public funds and other purposes, were as follows as of the dates presented below: June 30, June 30, (In Thousands) Securities pledged: Pledged for borrowings at the FHLB of New York $ — $ 178,048 Pledged to secure public funds on deposit 201,239 357,841 Pledged for potential borrowings at the Federal Reserve Bank of New York 529,216 378,071 Total carrying value of securities pledged $ 730,455 $ 913,960 The following tables present the gross unrealized losses on securities and the estimated fair value of the related securities, aggregated by investment category and length of time that securities have been in a continuous unrealized loss position within the available for sale portfolio at June 30, 2023 and 2022: June 30, 2023 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Number of Securities Fair Unrealized (Dollars in Thousands) Securities Available for Sale: Asset-backed securities $ 33,833 $ 129 $ 98,828 $ 1,986 14 $ 132,661 $ 2,115 Collateralized loan obligations 46,903 135 294,813 5,052 26 341,716 5,187 Corporate bonds 25,511 1,354 109,507 23,294 31 135,018 24,648 Commercial pass-through securities 63,531 1,380 79,863 19,725 12 143,394 21,105 Residential pass-through securities 10,520 702 425,170 102,655 108 435,690 103,357 Total $ 180,298 $ 3,700 $ 1,008,181 $ 152,712 191 $ 1,188,479 $ 156,412 June 30, 2022 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Number of Securities Fair Unrealized (Dollars in Thousands) Securities Available for Sale: Obligations of state and political subdivisions $ 11,310 $ 89 $ — $ — 30 $ 11,310 $ 89 Asset-backed securities 161,303 2,928 5,254 21 15 166,557 2,949 Collateralized loan obligations 236,967 6,435 70,846 1,445 24 307,813 7,880 Corporate bonds 129,407 6,464 3,815 185 27 133,222 6,649 Collateralized mortgage obligations 7,122 329 — — 6 7,122 329 Commercial pass-through securities 63,045 3,194 102,817 16,577 21 165,862 19,771 Residential pass-through securities 237,928 26,566 274,197 54,058 106 512,125 80,624 Total $ 847,082 $ 46,005 $ 456,929 $ 72,286 229 $ 1,304,011 $ 118,291 The following table presents the gross unrecognized losses on securities and the estimated fair value of the related securities, aggregated by investment category and length of time that securities have been in a continuous unrecognized loss position within the held to maturity portfolio at June 30, 2023 and 2022: June 30, 2023 Less than 12 Months 12 Months or More Total Fair Unrecognized Fair Unrecognized Number of Securities Fair Unrecognized (Dollars in Thousands) Securities Held to Maturity: Obligations of state and political subdivisions $ 13,642 $ 268 $ 2,088 $ 53 32 $ 15,730 $ 321 Commercial pass-through securities — — 10,009 2,239 1 10,009 2,239 Residential pass-through securities 38,135 319 67,295 12,417 9 105,430 12,736 Total $ 51,777 $ 587 $ 79,392 $ 14,709 42 $ 131,169 $ 15,296 June 30, 2022 Less than 12 Months 12 Months or More Total Fair Unrecognized Fair Unrecognized Number of Securities Fair Unrecognized (Dollars in Thousands) Securities Held to Maturity: Obligations of state and political subdivisions $ 8,681 $ 78 $ — $ — 15 $ 8,681 $ 78 Commercial pass-through securities 10,729 1,552 — — 1 10,729 1,552 Residential pass-through securities 76,264 8,587 — — 8 76,264 8,587 Total $ 95,674 $ 10,217 $ — $ — 24 $ 95,674 $ 10,217 Available for sale securities are evaluated to determine if a decline in fair value below the amortized cost basis has resulted from a credit loss or from other factors. An impairment related to credit factors would be recorded through an allowance for credit losses. The allowance is limited to the amount by which the security’s amortized cost basis exceeds the fair value. An impairment that has not been recorded through an allowance for credit losses shall be recorded through other comprehensive income, net of applicable taxes. Investment securities will be written down to fair value through the Consolidated Statement of Income if management intends to sell, or may be required to sell, the securities before they recover in value. The issuers of these securities continue to make timely principal and interest payments and none of these securities were past due or were placed in nonaccrual status at June 30, 2023. Management believes that the unrealized losses on these securities are a function of changes in market interest rates and credit spreads, not changes in credit quality. No allowance for credit losses was recorded at June 30, 2023 on available for sale securities. The sale of available for sale securities during the year ended June 30, 2023 was part of a wholesale restructuring and the proceeds were reinvested in higher yielding securities. The Company was not required to sell these securities. At June 30, 2023, the held to maturity securities portfolio consisted of agency mortgage-backed securities and obligations of state and political subdivisions. The mortgage-backed securities are issued by U.S. government agencies and are implicitly guaranteed by the U.S. government. The obligations of state and political subdivisions in the portfolio are highly rated by major rating agencies and have a long history of no credit losses. The Company regularly monitors the obligations of state and political subdivisions sector of the market and reviews collectability including such factors as the financial condition of the issuers as well as credit ratings in effect as of the reporting period. No allowance for credit losses was recorded at June 30, 2023 on held to maturity securities. |
Loans Receivable
Loans Receivable | 12 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Loans Receivable | Loans Receivable The following table sets forth the composition of the Company’s loan portfolio at June 30, 2023 and 2022: June 30, June 30, (In Thousands) Commercial loans: Multi-family mortgage $ 2,761,775 $ 2,409,090 Nonresidential mortgage 968,574 1,019,838 Commercial business 146,861 176,807 Construction 226,609 140,131 Total commercial loans 4,103,819 3,745,866 One- to four-family residential mortgage 1,700,559 1,645,816 Consumer loans: Home equity loans 43,549 42,028 Other consumer 2,549 2,866 Total consumer loans 46,098 44,894 Total loans 5,850,476 5,436,576 Unaccreted yield adjustments (1) (21,055) (18,731) Total loans receivable, net of yield adjustments $ 5,829,421 $ 5,417,845 ___________________________ (1) At June 30, 2023, included a fair value adjustment to the carrying amount of hedged one- to four-family residential mortgage loans. The Bank has granted loans to officers and directors of the Company and its subsidiaries and to their associates. As of June 30, 2023 and 2022, such loans totaled approximately $2.5 million and $2.6 million, respectively. During the year ended June 30, 2023, the Bank granted no new loans to related parties. During the year ended June 30, 2022, the Bank granted two new loans to related parties totaling $1.8 million. Past Due Loans Past due status is based on the contractual payment terms of the loans. The following tables present the payment status of past due loans as of June 30, 2023 and 2022, by loan segment: Payment Status 30-59 Days 60-89 Days 90 Days and Over Total Past Due Current Total (In Thousands) Multi-family mortgage $ 2,958 $ — $ 10,756 $ 13,714 $ 2,748,061 $ 2,761,775 Nonresidential mortgage 792 — 8,233 9,025 959,549 968,574 Commercial business 528 16 236 780 146,081 146,861 Construction — — — — 226,609 226,609 One- to four-family residential mortgage 2,019 1,202 3,731 6,952 1,693,607 1,700,559 Home equity loans 25 — 50 75 43,474 43,549 Other consumer — — — — 2,549 2,549 Total loans $ 6,322 $ 1,218 $ 23,006 $ 30,546 $ 5,819,930 $ 5,850,476 Payment Status 30-59 Days 60-89 Days 90 Days and Over Total Past Due Current Total (In Thousands) Multi-family mortgage $ 3,148 $ 3,056 $ 7,788 $ 13,992 $ 2,395,098 $ 2,409,090 Nonresidential mortgage 4,026 — 18,132 22,158 997,680 1,019,838 Commercial business 98 57 155 310 176,497 176,807 Construction — — — — 140,131 140,131 One- to four-family residential mortgage 1,525 253 3,455 5,233 1,640,583 1,645,816 Home equity loans 28 35 — 63 41,965 42,028 Other consumer — — — — 2,866 2,866 Total loans $ 8,825 $ 3,401 $ 29,530 $ 41,756 $ 5,394,820 $ 5,436,576 Nonperforming Loans Loans are generally placed on nonaccrual status when contractual payments become 90 or more days past due or when the Company does not expect to receive all P&I payment owed substantially in accordance with the terms of the loan agreement, regardless of past due status. Loans that become 90 days past due, but are well secured and in the process of collection, may remain on accrual status. Nonaccrual loans are generally returned to accrual status when all payments due are brought current and the Company expects to receive all remaining P&I payments owed substantially in accordance with the terms of the loan agreement. Payments received in cash on nonaccrual loans, including both the principal and interest portions of those payments, are generally applied to reduce the carrying value of the loan. The Company did not recognize interest income on non-accrual loans during the years ended June 30, 2023, 2022 and 2021. The following tables present information relating to the Company’s nonperforming loans as of June 30, 2023 and 2022: Performance Status 90 Days and Over Past Due Accruing Nonaccrual Loans with Allowance for Nonaccrual Loans with no Allowance for Total Nonperforming Performing Total (In Thousands) Multi-family mortgage $ — $ 5,686 $ 13,428 $ 19,114 $ 2,742,661 $ 2,761,775 Nonresidential mortgage — 11,815 4,725 16,540 952,034 968,574 Commercial business — 71 181 252 146,609 146,861 Construction — — — — 226,609 226,609 One- to four-family residential mortgage — 1,640 5,031 6,671 1,693,888 1,700,559 Home equity loans — — 50 50 43,499 43,549 Other consumer — — — — 2,549 2,549 Total loans $ — $ 19,212 $ 23,415 $ 42,627 $ 5,807,849 $ 5,850,476 Performance Status 90 Days and Over Past Due Accruing Nonaccrual Loans with Allowance for Nonaccrual Loans with no Allowance for Total Nonperforming Performing Total (In Thousands) Multi-family mortgage $ — $ 8,367 $ 18,286 $ 26,653 $ 2,382,437 $ 2,409,090 Nonresidential mortgage — 12,602 19,292 31,894 987,944 1,019,838 Commercial business — 212 81 293 176,514 176,807 Construction — — 1,561 1,561 138,570 140,131 One- to four-family residential mortgage — 3,543 4,946 8,489 1,637,327 1,645,816 Home equity loans — 302 1,129 1,431 40,597 42,028 Other consumer — — — — 2,866 2,866 Total loans $ — $ 25,026 $ 45,295 $ 70,321 $ 5,366,255 $ 5,436,576 Troubled Debt Restructurings On a case-by-case basis, the Company may agree to modify the contractual terms of a loan to assist a borrower who may be experiencing financial difficulty, as well as to preserve the Company’s position in the loan. If the borrower is experiencing financial difficulties and a concession has been made at the time of such modification, the loan is classified as a TDR. The Company had TDRs totaling $17.4 million and $22.2 million as of June 30, 2023 and 2022, respectively. The allowance for credit losses associated with the TDRs presented in the tables below totaled $274,000 and $365,000 as of June 30, 2023 and 2022, respectively. As of June 30, 2023, there were no significant commitments to lend additional funds to borrowers whose loans had been restructured in a TDR. The following tables present total TDRs at June 30, 2023 and 2022: June 30, 2023 Accrual Non-accrual Total # of Loans Amount # of Loans Amount # of Loans Amount (Dollars In Thousands) Commercial loans: Multi-family mortgage — $ — 2 $ 5,400 2 $ 5,400 Nonresidential mortgage 3 170 2 700 5 870 Commercial business 6 3,197 — — 6 3,197 Construction — — — — — — Total commercial loans 9 3,367 4 6,100 13 9,467 One- to four-family residential mortgage 39 6,752 4 774 43 7,526 Consumer loans: Home equity loans 6 368 — — 6 368 Total 54 $ 10,487 8 $ 6,874 62 $ 17,361 June 30, 2022 Accrual Non-accrual Total # of Loans Amount # of Loans Amount # of Loans Amount (Dollars In Thousands) Commercial loans: Multi-family mortgage — $ — 2 $ 5,626 2 $ 5,626 Nonresidential mortgage 4 389 2 1,565 6 1,954 Commercial business 5 3,631 2 82 7 3,713 Construction — — 1 1,561 1 1,561 Total commercial loans 9 4,020 7 8,834 16 12,854 One- to four-family residential mortgage 29 4,488 16 3,314 45 7,802 Consumer loans: Home equity loans 5 164 2 1,364 7 1,528 Total 43 $ 8,672 25 $ 13,512 68 $ 22,184 The following table presents information regarding TDRs that occurred during the years ended June 30, 2023 and 2022: Year Ended June 30, 2023 Year Ended June 30, 2022 # of Loans Pre-modification Post-modification # of Loans Pre-modification Post-modification (Dollars In Thousands) Multi-family mortgage — $ — $ — 2 $ 12,091 $ 12,073 Nonresidential mortgage 1 313 345 — — — Commercial business 2 74 74 — — — One- to four-family residential mortgage 2 708 705 13 3,812 3,924 Home equity loans 1 35 35 2 1,477 1,477 Total 6 $ 1,130 $ 1,159 17 $ 17,380 $ 17,474 During the year ended June 30, 2023, there were charge-offs of $121,000 related to TDRs. During the year ended June 30, 2022, there were no charge-offs related to TDRs. During the year ended June 30, 2023, there were two TDR defaults totaling $649,000. During the year ended June 30, 2022, there were three TDR defaults totaling $305,000. Loan modifications generally involve a reduction in interest rates and/or extension of maturity dates and also may include step up interest rates in their modified terms which will impact their weighted average yield in the future. The loans which qualified as TDRs during the year ended June 30, 2023, capitalized prior past due amounts, reduced the interest rate or modified the repayment terms. Individually Analyzed Loans Individually analyzed loans include loans which do not share similar risk characteristics with other loans. TDRs will generally be evaluated for individual impairment, however, after a period of sustained repayment performance which permits the credit to be returned to accrual status, a TDR would generally be removed from individual impairment analysis and returned to its corresponding pool. As of June 30, 2023, the carrying value of individually analyzed loans, including loans acquired with deteriorated credit quality that were individually analyzed, totaled $42.6 million, of which $38.2 million were considered collateral dependent. For collateral dependent loans where management has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and repayment of the loan is to be provided substantially through the operation or sale of the collateral, the allowance for credit losses is measured based on the difference between the fair value of the collateral, less costs to sell, and the amortized cost basis of the loan as of the measurement date. See Note 18 for additional disclosure regarding fair value of individually analyzed collateral dependent loans. The following table presents the carrying value and related allowance of collateral dependent individually analyzed loans at the dates indicated: June 30, 2023 June 30, 2022 Carrying Value Related Allowance Carrying Value Related Allowance (In Thousands) Commercial loans: Multi-family mortgage $ 19,114 $ 326 $ 26,653 $ 849 Nonresidential mortgage (1) 16,207 3,001 30,733 2,696 Construction — — 1,561 — Total commercial loans 35,321 3,327 58,947 3,545 One- to four-family residential mortgage (2) 2,875 — 4,305 77 Consumer loans: Home equity loans (2) — — 35 — Total $ 38,196 $ 3,327 $ 63,287 $ 3,622 ________________________________________ (1) Secured by income-producing nonresidential property. (2) Secured by one- to four-family residential properties. Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually to classify the loans as to credit risk. The Company uses the following definitions for risk ratings: Pass – Loans that are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner. Special Mention – Loans which do not currently expose the Company to a sufficient degree of risk to warrant an adverse classification but have some credit deficiencies or other potential weaknesses. Substandard – Loans which are inadequately protected by the paying capacity and net worth of the obligor or the collateral pledged, if any. Substandard assets include those characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful – Loans which have all of the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses present make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions and values. Loss – Loans which considered uncollectible or of so little value that their continuance as assets is not warranted. The following table presents the risk category of loans as of June 30, 2023 by loan segment and vintage year: Term Loans by Origination Year for Fiscal Years ended June 30, Revolving Loans 2023 2022 2021 2020 2018 Prior Total (In Thousands) Multi-family mortgage: Pass $ 603,260 $ 954,554 $ 213,482 $ 198,969 $ 226,929 $ 510,485 $ — $ 2,707,679 Special Mention — — — — 6,006 6,647 — 12,653 Substandard — — 9,809 — 9,432 22,202 — 41,443 Doubtful — — — — — — — — Total multi-family mortgage 603,260 954,554 223,291 198,969 242,367 539,334 — 2,761,775 Nonresidential mortgage: Pass 109,725 220,443 83,032 51,933 59,197 414,742 6,000 945,072 Special Mention — — — — — 378 — 378 Substandard — — 708 — 919 21,497 — 23,124 Doubtful — — — — — — — — Total nonresidential mortgage 109,725 220,443 83,740 51,933 60,116 436,617 6,000 968,574 Commercial business: Pass 10,364 28,644 25,304 7,875 1,731 8,776 59,031 141,725 Special Mention — — — 47 176 2,456 371 3,050 Substandard — — — 395 60 1,385 246 2,086 Doubtful — — — — — — — — Total commercial business 10,364 28,644 25,304 8,317 1,967 12,617 59,648 146,861 Construction loans: Pass 25,070 36,389 143,086 12,275 2,961 1,093 5,735 226,609 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total construction loans 25,070 36,389 143,086 12,275 2,961 1,093 5,735 226,609 Residential mortgage: Pass 195,521 454,504 491,460 80,431 45,741 422,472 — 1,690,129 Special Mention — — — — 1,168 425 — 1,593 Substandard — 542 — — 80 8,215 — 8,837 Doubtful — — — — — — — — Total residential mortgage 195,521 455,046 491,460 80,431 46,989 431,112 — 1,700,559 Home equity loans: Pass 7,682 2,567 607 1,264 2,478 7,280 21,384 43,262 Special Mention — — — — — — — — Substandard — — — — — 287 — 287 Doubtful — — — — — — — — Total home equity loans 7,682 2,567 607 1,264 2,478 7,567 21,384 43,549 Other consumer loans Pass 367 247 110 494 302 912 42 2,474 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — 75 75 Other consumer loans 367 247 110 494 302 912 117 2,549 Total loans $ 951,989 $ 1,697,890 $ 967,598 $ 353,683 $ 357,180 $ 1,429,252 $ 92,884 $ 5,850,476 The following table presents the risk category of loans as of June 30, 2022 by loan segment and vintage year: Term Loans by Origination Year for Fiscal Years ended June 30, Revolving Loans 2022 2021 2020 2018 2017 Prior Total (In Thousands) Multi-family mortgage: Pass $ 963,263 $ 250,385 $ 211,101 $ 264,174 $ 248,058 $ 438,642 $ — $ 2,375,623 Special Mention — — — — — 6,814 — 6,814 Substandard — — — 9,821 5,935 10,897 — 26,653 Doubtful — — — — — — — — Total multi-family mortgage 963,263 250,385 211,101 273,995 253,993 456,353 — 2,409,090 Nonresidential mortgage: Pass 231,777 87,309 53,983 60,714 49,285 491,849 6,052 980,969 Special Mention — — — — — 591 — 591 Substandard — 720 — 933 4,026 32,599 — 38,278 Doubtful — — — — — — — — Total nonresidential mortgage 231,777 88,029 53,983 61,647 53,311 525,039 6,052 1,019,838 Commercial business: Pass 46,888 38,791 12,155 3,581 4,861 6,455 58,662 171,393 Special Mention — — 62 186 2,173 873 215 3,509 Substandard — 38 319 — 1,347 61 58 1,823 Doubtful — — — — — 80 2 82 Total commercial business 46,888 38,829 12,536 3,767 8,381 7,469 58,937 176,807 Construction loans: Pass 16,407 95,526 10,337 3,039 6,509 1,017 5,735 138,570 Special Mention — — — — — — — — Substandard — — — — — 1,561 — 1,561 Doubtful — — — — — — — — Total construction loans 16,407 95,526 10,337 3,039 6,509 2,578 5,735 140,131 Residential mortgage: Pass 472,160 524,163 88,645 49,316 55,139 442,517 374 1,632,314 Special Mention — — — 1,205 — 621 — 1,826 Substandard — — — 83 — 11,593 — 11,676 Doubtful — — — — — — — — Total residential mortgage 472,160 524,163 88,645 50,604 55,139 454,731 374 1,645,816 Home equity loans: Pass 3,197 692 1,681 3,117 2,027 7,321 22,334 40,369 Special Mention — — — — — — — — Substandard — — — 120 — 1,539 — 1,659 Doubtful — — — — — — — — Total home equity loans 3,197 692 1,681 3,237 2,027 8,860 22,334 42,028 Other consumer loans Pass 442 308 471 375 258 895 34 2,783 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — 83 83 Other consumer loans 442 308 471 375 258 895 117 2,866 Total loans $ 1,734,134 $ 997,932 $ 378,754 $ 396,664 $ 379,618 $ 1,455,925 $ 93,549 $ 5,436,576 Purchased Credit Deteriorated Loans PCD loans are acquired loans that, as of the acquisition date, have experienced a more-than-insignificant deterioration in credit quality since origination. Non-PCD loans are acquired loans that have experienced no or insignificant deterioration in credit quality since origination. To distinguish between the two types of acquired loans, the Company evaluates risk characteristics that have been determined to be indicators of deteriorated credit quality. The determining criteria may involve loan specific characteristics such as payment status, debt service coverage or other changes in creditworthiness since the loan was originated, while others are relevant to recent economic conditions, such as borrowers in industries impacted by the pandemic. As part of the acquisition of MSB, the Company purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of those loans is as follows: At July 10, 2020 (In Thousands) Purchase price of PCD loans at acquisition $ 65,347 Allowance for credit losses at acquisition 3,901 Non-credit discount at acquisition 167 Par value of acquired PCD loans at acquisition $ 69,415 Residential Mortgage Loans in Foreclosure The Company may obtain physical possession of one- to four-family real estate collateralizing a residential mortgage loan or nonresidential real estate collateralizing a nonresidential mortgage loan via foreclosure or through an in-substance repossession. As of June 30, 2023, the Company held one nonresidential property with a carrying value of $13.0 million in other real estate owned that was acquired through foreclosure on a nonresidential mortgage loan. As of that same date, the Company held three residential mortgage loans with aggregate carrying values totaling $950,000 and six commercial mortgage loans with aggregate carrying values totaling $9.2 million which were in the process of foreclosure. As of June 30, 2022, the Company held one single-family property in other real estate owned with a carrying value of $178,000 that was acquired through foreclosure on a residential mortgage loan. As of that same date, the Company held seven residential mortgage loans with aggregate carrying values totaling $1.5 million which were in the process of foreclosure. |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses Adoption of Topic 326 On July 1, 2020, the Company adopted ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which replaced the incurred loss methodology with an expected loss methodology, referred to as the “CECL” methodology. See Note 1, Summary of Significant Accounting Policies, for additional information on the adoption of Topic 326. Allowance for Credit Losses on Loans Receivable The following tables present the balance of the allowance for credit losses (“ACL”) at June 30, 2023 and 2022. The balance of the ACL is based on the CECL methodology, as noted above. The tables identify the valuation allowances attributable to specifically identified impairments on individually analyzed loans, including those acquired with deteriorated credit quality, as well as valuation allowances for impairments on loans collectively evaluated. The tables include the underlying balance of loans receivable applicable to each category as of those dates. Allowance for Credit Losses Loans Loans Loans individually Loans collectively Total allowance for credit losses (In Thousands) Multi-family mortgage $ — $ — $ 326 $ 26,036 $ 26,362 Nonresidential mortgage — 70 3,001 5,882 8,953 Commercial business — 9 20 1,411 1,440 Construction — — — 1,336 1,336 One- to four-family residential mortgage 3 132 70 10,032 10,237 Home equity loans — — — 338 338 Other consumer — — — 68 68 Total loans $ 3 $ 211 $ 3,417 $ 45,103 $ 48,734 Balance of Loans Receivable Loans Loans Loans individually Loans collectively Total loans (In Thousands) Multi-family mortgage $ — $ — $ 19,114 $ 2,742,661 $ 2,761,775 Nonresidential mortgage 333 3,562 16,207 948,472 968,574 Commercial business — 4,237 252 142,372 146,861 Construction — 5,735 — 220,874 226,609 One- to four-family residential mortgage 570 4,433 6,101 1,689,455 1,700,559 Home equity loans 25 — 25 43,499 43,549 Other consumer — — — 2,549 2,549 Total loans $ 928 $ 17,967 $ 41,699 $ 5,789,882 $ 5,850,476 Unaccreted yield adjustments (21,055) Loans receivable, net of yield adjustments $ 5,829,421 Allowance for Credit Losses Loans Loans Loans individually Loans collectively Total allowance for credit losses (In Thousands) Multi-family mortgage $ — $ — $ 849 $ 24,472 $ 25,321 Nonresidential mortgage — 73 2,696 7,821 10,590 Commercial business — 9 16 1,767 1,792 Construction — — — 1,486 1,486 One- to four-family residential mortgage — 229 148 7,163 7,540 Home equity loans 26 — — 219 245 Other consumer — — — 84 84 Total loans $ 26 $ 311 $ 3,709 $ 43,012 $ 47,058 Balance of Loans Receivable Loans Loans Loans individually Loans collectively Total loans (In Thousands) Multi-family mortgage $ — $ — $ 26,653 $ 2,382,437 $ 2,409,090 Nonresidential mortgage 377 5,033 31,517 982,911 1,019,838 Commercial business — 1,267 293 175,247 176,807 Construction — 5,735 1,561 132,835 140,131 One- to four-family residential mortgage 87 6,460 8,402 1,630,867 1,645,816 Home equity loans 329 58 1,102 40,539 42,028 Other consumer — — — 2,866 2,866 Total loans $ 793 $ 18,553 $ 69,528 $ 5,347,702 $ 5,436,576 Unaccreted yield adjustments (18,731) Loans receivable, net of yield adjustments $ 5,417,845 The following tables present the activity in the ACL on loans for the years ended June 30, 2023, 2022 and 2021: Changes in the Allowance for Credit Losses Balance at Charge-offs Recoveries Provision for Balance at (In Thousands) Multi-family mortgage $ 25,321 $ (493) $ — $ 1,534 $ 26,362 Nonresidential mortgage 10,590 (39) — (1,598) 8,953 Commercial business 1,792 (364) 29 (17) 1,440 Construction 1,486 — — (150) 1,336 One- to four-family residential mortgage 7,540 — 2 2,695 10,237 Home equity loans 245 — — 93 338 Other consumer 84 — 55 (71) 68 Total loans $ 47,058 $ (896) $ 86 $ 2,486 $ 48,734 Changes in the Allowance for Credit Losses Balance at Charge-offs Recoveries (Reversal of) Balance at (In Thousands) Multi-family mortgage $ 28,450 $ (1,896) $ — $ (1,233) $ 25,321 Nonresidential mortgage 16,243 (2,646) 812 (3,819) 10,590 Commercial business 2,086 (193) 160 (261) 1,792 Construction 1,170 — — 316 1,486 One- to four-family residential mortgage 9,747 — 147 (2,354) 7,540 Home equity loans 433 — 27 (215) 245 Other consumer 36 (2) 2 48 84 Total loans $ 58,165 $ (4,737) $ 1,148 $ (7,518) $ 47,058 Changes in the Allowance for Loan Losses Balance at Impact of adopting Charge-offs Recoveries Initial allowance on PCD loans (Reversal of) Balance at (In Thousands) Multi-family mortgage $ 20,916 $ 8,408 $ — $ — $ 250 $ (1,124) $ 28,450 Nonresidential mortgage 8,763 2,390 (80) — 1,720 3,450 16,243 Commercial business 1,926 (421) (1,446) 17 1,007 1,003 2,086 Construction 236 80 — — 99 755 1,170 One- to four-family residential mortgage 4,860 9,106 (13) 4 720 (4,930) 9,747 Home equity loans 568 92 (32) — 105 (300) 433 Other consumer 58 (15) (41) 9 — 25 36 Total loans $ 37,327 $ 19,640 $ (1,612) $ 30 $ 3,901 $ (1,121) $ 58,165 Allowance for Credit Losses on Off Balance Sheet Commitments The following table presents the activity in the ACL on off balance sheet commitments recorded in other non-interest expense for the years ended June 30, 2023, 2022 and 2021: Year Ended June 30, 2023 2022 2021 (In Thousands) Balance at beginning of the period $ 1,041 $ 1,708 $ — Impact of adopting Topic 326 (1) — — 536 (Reversal of) provision for credit losses (300) (667) 1,172 Balance at end of the period $ 741 $ 1,041 $ 1,708 ________________________________________ (1) Adoption of CECL accounting standard effective July 1, 2020. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain premises and equipment under operating leases. As of June 30, 2023, the Company had right-of-use assets totaling $16.1 million and lease liabilities totaling $17.2 million, which were recorded in other assets other liabilities As of June 30, 2023, the weighted average remaining lease term for operating leases was 6.56 years and the weighted average discount rate used in the measurement of operating lease liabilities was 2.70%. Total operating lease costs for the years ended June 30, 2023 , 2022 and 2021 was $3.7 million, $3.7 million and $3.8 million, respectively. There were no sale and leaseback transactions, leveraged leases or lease transactions with related parties during the year ended June 30, 2023 . At June 30, 2023, the Company had no leases that had not yet commenced. A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability at June 30, 2023 and 2022 is as follows: June 30, 2023 2022 (In Thousands) Less than one year $ 3,445 $ 3,614 After one year but within two years 3,183 3,187 After two years but within three years 3,071 2,905 After three years but within four years 2,963 2,817 After four years but within five years 1,941 2,707 Greater than five years 4,305 5,956 Total undiscounted cash flows 18,908 21,186 Less: discount on cash flows (1,687) (2,001) Total lease liability $ 17,221 $ 19,185 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment June 30, 2023 2022 (In Thousands) Land $ 11,773 $ 12,192 Buildings and improvements 45,886 48,156 Leasehold improvements 12,029 11,336 Furnishings and equipment 29,720 29,431 Construction in progress 71 426 99,479 101,541 Less accumulated depreciation and amortization 51,170 48,260 Total premises and equipment $ 48,309 $ 53,281 Depreciation expense on premises and equipment for the fiscal years ended June 30, 2023, 2022 and 2021 totaled $5.7 million, $6.0 million and $5.9 million, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill Core Deposit Intangibles (In Thousands) Balance at June 30, 2020 $ 210,895 $ 3,995 Acquisition of MSB Financial Corp. — 690 Amortization — (980) Balance at June 30, 2021 210,895 3,705 Amortization — (685) Balance at June 30, 2022 210,895 3,020 Amortization — (563) Balance at June 30, 2023 $ 210,895 $ 2,457 Scheduled amortization of core deposit intangibles for each of the next five years and thereafter is as follows: Year Ending Core Deposit Intangible Amortization (In Thousands) 2024 $ 526 2025 495 2026 467 2027 441 2028 353 Thereafter 175 |
Deposits
Deposits | 12 Months Ended |
Jun. 30, 2023 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits at June 30, 2023 and 2022 are summarized as follows: June 30, 2023 2022 Balance Weighted Balance Weighted (Dollars in Thousands) Non-interest-bearing demand $ 609,999 0.00 % $ 653,899 0.00 % Interest-bearing demand 2,252,912 2.43 2,265,597 0.56 Savings 748,721 0.48 1,053,198 0.17 Certificates of deposits 2,017,551 3.02 1,889,562 0.80 Total deposits $ 5,629,183 2.12 % $ 5,862,256 0.50 % Brokered deposits at June 30, 2023 and 2022 are summarized as follows: June 30, 2023 2022 Balance Weighted Balance Weighted (Dollars in Thousands) Certificates of deposits $ 635,314 4.28 % $ 761,862 1.14 % Total brokered deposits $ 635,314 4.28 % $ 761,862 1.14 % A summary of certificates of deposit by maturity at June 30, 2023 follows: June 30, 2023 (In Thousands) One year or less $ 1,896,132 After one year to two years 71,317 After two years to three years 23,155 After three years to four years 13,775 After four years to five years 7,590 After five years 5,582 Total certificates of deposit $ 2,017,551 Certificates of deposit with balances of $250,000 or more at June 30, 2023 and 2022, totaled approximately $883.7 million and $897.4 million, respectively. The Bank’s deposits are insurable to applicable limits by the FDIC. |
Borrowings
Borrowings | 12 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Borrowings at June 30, 2023 and 2022 consisted of the following: June 30, June 30, (In Thousands) FHLB advances $ 1,281,812 $ 651,337 Overnight borrowings (1) 225,000 250,000 Total borrowings $ 1,506,812 $ 901,337 ________________________________________ (1) At June 30, 2023, represented $125.0 million of FHLB overnight line of credit borrowings and $100.0 million of unsecured overnight borrowings from other financial institutions. At June 30, 2022, represented FHLB overnight line of credit borrowings. Fixed-rate advances from FHLB of New York mature as follows: June 30, 2023 June 30, 2022 Balance Weighted Balance Weighted (Dollars in Thousands) By remaining period to maturity: Less than one year $ 972,500 5.36 % $ 520,000 2.04 % One to two years 103,500 2.68 22,500 2.63 Two to three years 6,500 2.82 103,500 2.68 Three to four years — — 6,500 2.82 Four to five years 200,000 3.98 — — Greater than five years — — — — Total advances 1,282,500 4.92 % 652,500 2.17 % Unamortized fair value adjustments (688) (1,163) Total advances, net of fair value adjustments $ 1,281,812 $ 651,337 At June 30, 2023, FHLB advances and overnight line of credit borrowings were collateralized by the FHLB capital stock owned by the Bank and mortgage loans with carrying values totaling approximately $4.60 billion. At June 30, 2022, FHLB advances and overnight line of credit borrowings were collateralized by the FHLB capital stock owned by the Bank and mortgage loans and securities with carrying values totaling approximately $3.58 billion and $178.0 million, respectively. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Risk Management Objective of Using Derivatives The Company uses various financial instruments, including derivatives, to manage its exposure to interest rate risk. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to specific wholesale funding positions and assets. Fair Values of Derivative Instruments on the Statement of Financial Condition The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the Statement of Financial Condition as of June 30, 2023 and 2022: June 30, 2023 Asset Derivatives Liability Derivatives Location Fair Value Location Fair Value (In Thousands) Derivatives designated as hedging instruments: Interest rate contracts Other assets $ 71,624 Other liabilities $ — Total $ 71,624 $ — June 30, 2022 Asset Derivatives Liability Derivatives Location Fair Value Location Fair Value (In Thousands) Derivatives designated as hedging instruments: Interest rate contracts Other assets $ 41,223 Other liabilities $ — Total $ 41,223 $ — Cash Flow Hedges of Interest Rate Risk The Company uses derivatives to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company has entered into interest rate swaps, interest rate caps and an interest rate floor as part of its interest rate risk management strategy. These interest rate products are designated as cash flow hedges. As of June 30, 2023, the Company had a total of 13 interest rate swaps and caps with a total notional amount of $1.45 billion hedging specific wholesale funding positions and one interest rate floor with a notional amount of $100.0 million hedging floating-rate available for sale securities. For derivatives designated as cash flow hedges, the gain or loss on the derivatives is recorded in other comprehensive income (loss), net of tax, and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. For cash flow hedges on the Company's wholesale funding positions, amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s hedged variable rate wholesale funding positions. During the year ended June 30, 2023, the Company reclassified $20.4 million as a reduction in interest expense. During the next 12 months, the Company estimates that $33.8 million will be reclassified as a reduction in interest expense. For cash flow hedges on the Company’s assets, amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest income as interest payments are received on the Company’s hedged variable rate assets. During the year ended June 30, 2023, the Company did not reclassify any amount to interest income. During the next twelve months, the Company estimates that $200,000 will be reclassified as a reduction in interest income. The table below presents the pre-tax effects of the Company’s derivative instruments designated as cash flow hedges on the Consolidated Statements of Income for the years ended June 30, 2023, 2022 and 2021: Year Ended June 30, 2023 2022 2021 (In Thousands) Amount of gain recognized in other comprehensive income $ 39,002 $ 35,844 $ 10,825 Amount of gain (loss) reclassified from accumulated other comprehensive income to interest expense 20,393 (4,273) (8,281) Fair Value Hedges of Interest Rate Risk The Company is exposed to changes in the fair value of certain of its fixed-rate assets due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. Such derivatives are used to hedge the changes in fair value of certain of its pools of fixed rate assets. As of June 30, 2023, the Company had five interest rate swaps with a notional amount of $675.0 million hedging fixed-rate residential mortgage loans. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivatives as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income. The table below presents the effects of the Company’s derivative instruments designated as fair value hedges on the Consolidated Statements of Income for the year ended June 30, 2023. There were no fair value hedges for the years ended June 30, 2022 and 2021: Year Ended June 30, 2023 (In Thousands) Loss on hedged items recorded in interest income on loans $ (11,437) Gain on hedges recorded in interest income on loans 14,563 As of June 30, 2023, the following amounts were recorded on the Statement of Financial Condition related to cumulative basis adjustment for fair value hedges. There were no fair value hedges at June 30, 2022: June 30, 2023 Loans receivable: Carrying amount of the hedged assets $ 663,563 Fair value hedging adjustment included in the carrying amount of the hedged assets (11,437) ________________________________________ (1) This amount includes the amortized cost basis of the closed portfolios of loans receivable used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolios anticipated to be outstanding for the designated hedge period. At June 30, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $1.10 billion. Offsetting Derivatives The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives in the Consolidated Statement of Financial Condition as of June 30, 2023 and 2022, respectively. The net amounts presented for derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Consolidated Statement of Financial Condition. June 30, 2023 Gross Amounts Not Offset Gross Amount Recognized Gross Amounts Offset Net Amounts Presented Financial Instruments Cash Collateral Received (Posted) Net Amount (In Thousands) Assets: Interest rate contracts $ 72,418 $ (794) $ 71,624 $ — $ — $ 71,624 Total $ 72,418 $ (794) $ 71,624 $ — $ — $ 71,624 Liabilities: Interest rate contracts $ 794 $ (794) $ — $ — $ — $ — Total $ 794 $ (794) $ — $ — $ — $ — June 30, 2022 Gross Amounts Not Offset Gross Amount Recognized Gross Amounts Offset Net Amounts Presented Financial Instruments Cash Collateral Received (Posted) Net Amount (In Thousands) Assets: Interest rate contracts $ 41,223 $ — $ 41,223 $ — $ — $ 41,223 Total $ 41,223 $ — $ 41,223 $ — $ — $ 41,223 Credit Risk-Related Contingent Features The Company has agreements with each of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, then the Company could also be declared in default on its derivative obligations and could be required to terminate its derivative positions with the counterparty. The Company also has agreements with its derivative counterparties that contain a provision where if the Company fails to maintain its status as a well-capitalized institution, then the Company could be required to terminate its derivative positions with the counterparty. As of June 30, 2023, none of the Company’s derivatives were in a net liability position. As required under the enforceable master netting arrangement with its derivatives counterparties, at June 30, 2023 and June 30, 2022, the Company was not required to post financial collateral. In addition to the derivative instruments noted above, the Company’s pipeline of loans held for sale at June 30, 2023 and 2022, included $11.7 million and $20.3 million, respectively, of in process loans whose terms included interest rate locks to borrowers, which are considered free-standing derivative instruments whose fair values are not material to our financial condition or results of operations. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans Components of Net Periodic Expense The following table sets forth the aggregate net periodic benefit expense for the Bank’s Benefit Equalization Plan, Postretirement Welfare Plan, Directors’ Consultation and Retirement Plan, Atlas Bank Retirement Income Plan and Supplemental Executive Retirement Plan: Year Ended June 30, Affected Line Item in the Consolidated Statements of Income 2023 2022 2021 (In Thousands) Service cost $ 281 $ 547 $ 106 Salaries and employee benefits Interest cost 369 279 262 Other expense (Accretion) amortization of unrecognized (gain) loss (24) 80 83 Other expense Expected return on assets (99) (110) (113) Other expense Net periodic benefit cost $ 527 $ 796 $ 338 The other components of net periodic benefit cost are required to be presented in the Consolidated Statements of Income separately from the service cost component. The table above details the affected line items within the Consolidated Statements of Income related to the net periodic benefit costs for the periods noted. ESOP In conjunction to the Company’s initial public stock offering in February 2005, the Bank established an ESOP for all eligible employees. The ESOP purchased 2,409,764 shares of Company’s common stock with proceeds of a loan from the Company to the ESOP. In connection with the completion of the Company’s mutual to stock conversion in May 2015, the ESOP purchased an additional 3,612,500 shares of the Company’s common stock at a price of $10.00 per share with the proceeds of a new loan from the Company to the ESOP. The Company refinanced the outstanding principal and interest balance of $3.8 million and borrowed an additional $36.1 million to purchase the additional shares. The Company makes discretionary contributions to the ESOP equaling principal and interest payments owed on the ESOP’s loan to the Company. Such payments may be reduced by the amount of dividends paid on shares of the Company’s common stock held by the ESOP. The outstanding loan principal balance at June 30, 2023 was $26.4 million. ESOP shares pledged as collateral are initially recorded as unearned ESOP shares in the Consolidated Statements of Financial Condition. ESOP compensation expense was approximately $1.9 million, $2.5 million and $2.1 million for the years ended June 30, 2023, 2022 and 2021, respectively, representing the fair value of shares allocated or committed to be released during the year. At June 30, 2023 and 2022, the ESOP shares were as follows: June 30, 2023 2022 (In Thousands) Shares purchased by ESOP 6,022 6,022 Less: Shares allocated 3,564 3,363 Less: Shares committed to be released 100 100 Remaining unearned ESOP shares 2,358 2,559 Fair value of unearned ESOP shares $ 16,624 $ 28,430 Employee Stock Ownership Plan Benefit Equalization Plan (“ESOP BEP”) The Bank has a non-qualified plan to compensate its executive officers who participate in the Bank’s ESOP for certain benefits lost under such plan by reason of benefit limitations imposed by the Internal Revenue Code (“IRC”). The ESOP BEP expense was approximately $17,000, $40,000 and $37,000 for the years ended June 30, 2023, 2022 and 2021, respectively. The liability totaled approximately $16,000 and $20,000 at June 30, 2023 and 2022, respectively. Employees’ Savings and Profit Sharing Plan The Bank sponsors the Employees’ Savings and Profit Sharing Plan and Trust (the “Plan”), pursuant to Section 401(k) of the Internal Revenue Code, for all eligible employees. Employees may elect to contribute up to 75% of their compensation subject to the limitations imposed by the Internal Revenue Code. The Bank will contribute a matching contribution up to 3.5% of an eligible employee’s salary deferral contribution, provided the eligible employee has contributed 6%. The Plan expense amounted to approximately $1.4 million, $1.4 million and $1.3 million for the years ended June 30, 2023, 2022 and 2021, respectively. Multi-Employer Retirement Plan The Bank participates in the Pentegra Defined Benefit Plan for Financial Institutions (“The Pentegra DB Plan”), a tax-qualified defined-benefit pension plan. The Pentegra DB Plan’s Employer Identification Number is 13-5645888 and the Plan Number is 001. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 and the IRC. There are no collective bargaining agreements in place that require contributions to the Pentegra DB Plan. The Pentegra DB Plan is a single plan under Internal Revenue Code Section 413(c) and, as a result, all of the assets stand behind all of the liabilities. Accordingly, under the Pentegra DB Plan contributions made by a participating employer may be used to provide benefits to participants of other participating employers. The Pentegra DB Plan is non-contributory and covers all eligible employees. In April 2007, the Board of Directors of the Bank approved, effective July 1, 2007, freezing all future benefit accruals under the Pentegra DB Plan. Funded status (market value of plan assets divided by funding target) of the Pentegra DB Plan based on valuation reports as of July 1, 2022 and 2021 was 103.17% and 113.78%, respectively. Total contributions, made to the Pentegra DB Plan, which include contributions from all participating employers and not just the Company, as reported on Form 5500, were $142.4 million and $248.6 million for the plan years ended June 30, 2022 and 2021, respectively. The Bank’s contributions to the Pentegra DB Plan were not more than 5% of the total contributions to the Pentegra DB Plan. During the years ended June 30, 2023, 2022 and 2021, the total expense recorded for the Pentegra DB Plan was approximately $180,000, $372,000 and $329,000, respectively. Atlas Bank Retirement Income Plan (“ABRIP”) Through the merger with Atlas Bank, the Company acquired a non-contributory defined benefit pension plan covering all eligible employees of Atlas Bank. Effective January 31, 2013, the ABRIP was frozen by Atlas Bank. All benefits for eligible participants accrued in the ABRIP to the freeze date have been retained. The benefits are based on years of service and employee’s compensation. The ABRIP is funded in conformity with funding requirements of applicable government regulations. The following tables set forth the ABRIP’s funded status and net periodic benefit cost: June 30, 2023 2022 (In Thousands) Change in benefit obligation: Projected benefit obligation - beginning $ 1,816 $ 2,149 Interest cost 78 62 Actuarial gain (46) (247) Benefit payments (148) (148) Projected benefit obligation - ending $ 1,700 $ 1,816 Change in plan assets: Fair value of assets - beginning $ 2,907 $ 3,220 Actual return on assets (42) (165) Benefit payments (148) (148) Fair value of assets - ending $ 2,717 $ 2,907 Reconciliation of funded status: Projected benefit obligation $ (1,700) $ (1,816) Fair value of assets 2,717 2,907 Funded status included in other assets $ 1,017 $ 1,091 Accumulated benefit obligation $ (1,700) $ (1,816) Valuation assumptions Discount rate 5.00 % 4.50 % Salary increase rate N/A N/A Years Ended June 30, 2023 2022 2021 (In Thousands) Net periodic benefit cost: Interest cost $ 78 $ 62 $ 61 Expected return on assets (99) (110) (113) Amortization of net loss 28 21 22 Total expense (benefit) $ 7 $ (27) $ (30) Valuation assumptions Discount rate 4.50 % 3.00 % 2.75 % Long term rate of return on plan assets 3.50 % 3.50 % 3.50 % The Bank does not expect to contribute to the ABRIP in the year ending June 30, 2024. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Benefit Payments (In Thousands) Years ending June 30: 2024 $ 146 2025 147 2026 148 2027 145 2028 140 2029-2033 637 At June 30, 2023 and 2022, unrecognized net loss of $475,000 and $475,000, respectively, was included in accumulated other comprehensive income (loss). The assets of the ABRIP are invested in a Guaranteed Deposit Fund (“GDF”) with Prudential Financial, Inc. The GDF is a group annuity fund invested in public and private-issue debt securities through various sub-accounts. The underlying assets are valued based on quoted prices for similar assets with similar terms and other observable market data and have no redemption restrictions. The investments in the plan were monitored to ensure that they complied with the investment policies set forth in the plan document. The plan’s assets were reviewed periodically by management, which included an analysis of the asset allocation and the performance of the GDF prepared by Prudential Financial, Inc. The overall investment objective of the ABRIP is to ensure safety of principal and seek an attractive rate of return. The GDF utilizes a full spectrum of fixed income asset classes to provide the opportunity to maximize portfolio returns and diversification. The fair value of the ABRIP’s assets at June 30, 2023 and 2022 by asset category (see Note 18 for the definitions of levels), are as follows: June 30, 2023 Quoted Prices Significant Significant Total (In Thousands) Prudential Guaranteed Deposit Fund $ — $ 2,717 $ — $ 2,717 June 30, 2022 Quoted Prices Significant Significant Total (In Thousands) Prudential Guaranteed Deposit Fund $ — $ 2,907 $ — $ 2,907 Benefit Equalization Plan (“BEP”) The Bank has an unfunded non-qualified plan to compensate executive officers of the Bank who participate in the Bank’s qualified defined benefit plan for certain benefits lost under such plans by reason of benefit limitations imposed by Sections 415 and 401 of the IRC. There were approximately $244,000, $241,000 and $239,000 in contributions made to and benefits paid under the BEP during each of the years ended June 30, 2023, 2022 and 2021, respectively. The following tables set forth the BEP’s funded status and components of net periodic benefit cost: June 30, 2023 2022 (In Thousands) Change in benefit obligation: Projected benefit obligation - beginning $ 2,592 $ 2,999 Interest cost 111 86 Actuarial gain (34) (252) Benefit payments (244) (241) Projected benefit obligation - ending $ 2,425 $ 2,592 Change in plan assets: Fair value of assets - beginning $ — $ — Contributions 244 241 Benefit payments (244) (241) Fair value of assets - ending $ — $ — Reconciliation of funded status: Accumulated benefit obligation $ (2,425) $ (2,592) Projected benefit obligation $ (2,425) $ (2,592) Fair value of assets — — Funded status included in other liabilities $ (2,425) $ (2,592) Valuation assumptions Discount rate 5.00 % 4.50 % Salary increase rate N/A N/A Years Ended June 30, 2023 2022 2021 (In Thousands) Net periodic benefit cost: Interest cost $ 111 $ 86 $ 85 Amortization of net actuarial loss 46 71 75 Total expense $ 157 $ 157 $ 160 Valuation assumptions Discount rate 4.50 % 3.00 % 2.75 % Salary increase rate N/A N/A N/A It is estimated that contributions of approximately $241,000 will be made during the year ending June 30, 2024. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Benefit Payments (In Thousands) Years ending June 30: 2024 $ 241 2025 237 2026 232 2027 227 2028 221 2029-2033 999 In April 2007, the Board of Directors of the Bank approved, effective July 1, 2007, freezing all future benefit accruals under the BEP related to the Bank’s defined benefit pension plan. At June 30, 2023 and 2022, unrecognized net loss of $626,000 and $707,000, respectively, was included in accumulated other comprehensive income (loss). Postretirement Welfare Plan The Bank has an unfunded postretirement group term life insurance plan covering all eligible employees. The benefits are based on age and years of service. During the years ended June 30, 2023, 2022 and 2021, contributions and benefits paid totaled $13,000, $12,000 and $12,000, respectively. The following tables set forth the accrued accumulated postretirement benefit obligation and the net periodic benefit cost: June 30, 2023 2022 (In Thousands) Change in benefit obligation: Projected benefit obligation - beginning $ 1,085 $ 1,108 Service cost 95 116 Interest cost 48 33 Actuarial gain (214) (160) Premiums/claims paid (13) (12) Plan amendments 35 — Projected benefit obligation - ending $ 1,036 $ 1,085 Change in plan assets: Fair value of assets - beginning $ — $ — Contributions 13 12 Premiums/claims paid (13) (12) Fair value of assets - ending $ — $ — Reconciliation of funded status: Projected benefit obligation $ (1,036) $ (1,085) Fair value of assets — — Funded status included in other liabilities $ (1,036) $ (1,085) Valuation assumptions Discount rate 5.00 % 4.50 % Salary increase rate 3.25 % 3.25 % Years Ended June 30, 2023 2022 2021 (In Thousands) Net periodic benefit cost: Service cost $ 95 $ 116 $ 106 Interest cost 48 33 27 Amortization of net actuarial gain (28) (12) (14) Total expense $ 115 $ 137 $ 119 Valuation assumptions Discount rate 4.50 % 3.00 % 2.75 % Salary increase rate 3.25 % 3.25 % 3.25 % It is estimated that contributions of approximately $54,000 will be made during the year ending June 30, 2024. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Benefit Payments (In Thousands) Years ending June 30: 2024 $ 54 2025 62 2026 74 2027 82 2028 99 2029-2033 580 At June 30, 2023 and 2022, unrecognized net gain of $529,000 and $377,000, respectively, were included in accumulated other comprehensive income (loss). Directors’ Consultation and Retirement Plan (“DCRP”) The Bank has an unfunded retirement plan for non-employee directors. The benefits are payable based on term of service as a director. In December 2015, the Board of Directors of the Bank approved freezing all future benefit accruals under the DCRP effective December 31, 2015. During the years ended June 30, 2023, 2022 and 2021, contributions and benefits paid totaled $49,000, $49,000 and $69,000, respectively. The following table sets forth the DCRP’s funded status and components of net periodic cost: June 30, 2023 2022 (In Thousands) Change in benefit obligation: Projected benefit obligation - beginning $ 2,646 $ 3,116 Interest cost 117 92 Actuarial gain (194) (513) Benefit payments (49) (49) Projected benefit obligation - ending $ 2,520 $ 2,646 Change in plan assets: Fair value of assets - beginning $ — $ — Contributions 49 49 Benefit payments (49) (49) Fair value of assets - ending $ — $ — Reconciliation of funded status: Accumulated benefit obligation $ (2,520) $ (2,646) Projected benefit obligation $ (2,520) $ (2,646) Fair value of assets — — Funded status included in other liabilities $ (2,520) $ (2,646) Valuation assumptions Discount rate 5.00 % 4.50 % Salary increase rate N/A N/A Years Ended June 30, 2023 2022 2021 (In Thousands) Net periodic benefit cost: Interest cost $ 117 $ 92 $ 89 Amortization of net actuarial gain (69) — — Total expense $ 48 $ 92 $ 89 Valuation assumptions Discount rate 4.50 % 3.00 % 2.75 % Salary increase rate N/A N/A N/A It is estimated that contributions of approximately $72,000 will be made during the year ending June 30, 2024. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Benefit Payments (In Thousands) Years ending June 30: 2024 $ 72 2025 118 2026 138 2027 157 2028 176 2029-2033 1,301 At June 30, 2023 and 2022, unrecognized net gain of $840,000 and $716,000, respectively, was included in accumulated other comprehensive income (loss). Supplemental Executive Retirement Plan (“SERP”) On June 16, 2021, the Bank approved the SERP, effective as of July 1, 2021. The SERP is a non-qualified deferred compensation plan which provides participants with a retirement benefit equal to the present value of an annual benefit of 50% of the participant’s highest annual base salary. In December 2022, the Board of Directors of the Bank approved freezing all future benefit accruals under the SERP effective December 31, 2022. The following tables set forth the SERP’s funded status and net periodic benefit cost: June 30, 2023 2022 (In Thousands) Change in benefit obligation: Projected benefit obligation - beginning $ 437 $ — Service cost 185 431 Interest cost 11 6 Projected benefit obligation - ending $ 633 $ 437 Reconciliation of funded status: Projected benefit obligation $ (633) $ (437) Fair value of assets — — Funded status included in other liabilities $ (633) $ (437) Valuation assumptions Discount rate 3.00 % 3.00 % Salary increase rate N/A 4.00 % Year Ended June 30, 2023 2022 (In Thousands) Net periodic benefit cost: Service cost $ 185 $ 431 Interest cost 11 6 Total expense $ 196 $ 437 Valuation assumptions Discount rate 3.00 % 3.00 % Salary increase rate 4.00 % 4.00 % The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Benefit Payments (In Thousands) Years ending June 30: 2024 $ — 2025 — 2026 — 2027 — 2028 — 2029-2033 633 |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation Kearny Financial Corp. 2021 Equity Incentive Plan (“2021 Plan”) At the Company’s 2021 Annual Meeting of Stockholders held on October 28, 2021, the stockholders approved the 2021 Plan which provides for the grant of stock options, restricted stock and restricted stock units (“RSUs”). The 2021 Plan authorized the issuance of up to 7,500,000 shares (the “Share Limit”); provided, however that the Share Limit is reduced, on a one-for-one-basis, for each share of common stock subject to a stock option grant, and on a three-for-one basis for each share of common stock issued pursuant to restricted stock awards or RSUs. During the years ended June 30, 2023 and 2022, the Company granted 323,218 RSUs (comprised of 238,121 service-based RSUs and 85,097 performance-based RSUs) and 251,905 RSUs (comprised of 181,588 service-based RSUs and 70,317 performance-based RSUs), respectively. The service-based RSUs generally vest in three tranches over a period of 3.0 years and the performance-based RSUs will cliff vest upon the achievement of performance measures over a three-year period. The total number of performance-based RSUs that will vest, if any, will depend on whether and to what extent the performance measures are achieved. Common stock will be issued from authorized shares upon the vesting of the RSUs. At June 30, 2023, there were 5,825,421 shares remaining available for future grants of stock options, restricted stock or RSUs under the 2021 Plan, subject to the limitations noted above. Kearny Financial Corp. 2016 Equity Incentive Plan (“2016 Plan”) No grants were made under the 2016 Plan during the years ended June 30, 2023 and 2022. As of October 28, 2021, the 2016 Plan was frozen and the Company no longer makes grants under the 2016 Plan. Stock options granted under the 2016 Plan vest in equal installments over a five-year service period. Stock options were granted at an exercise price equal to the fair value of the Company's common stock on the grant date based on the closing market price and have an expiration period of 10 years. No stock options were granted during the years ended June 30, 2023, 2022 and 2021. There were no restricted stock awards granted during the years ended June 30, 2023 and 2022. There were 53,706 restricted stock awards granted during the year ended June 30, 2021. 2021 Plan and 2016 Plan The following table presents stock-based compensation expense for the years ended June 30, 2023, 2022 and 2021: Years Ended June 30, 2023 2022 2021 Stock option expense $ 153 $ 849 $ 1,823 Restricted stock expense 725 2,049 3,850 Restricted stock unit expense 2,058 896 — Total stock-based compensation expense $ 2,936 $ 3,794 $ 5,673 During the years ended June 30, 2023, 2022 and 2021, the income tax benefit attributed to our stock-based compensation expense was $836,000, $1.0 million and $1.6 million, respectively. Stock Options The following is a summary of the Company’s stock option activity and related information for its option plans for the year ended June 30, 2023: Options Weighted Weighted Aggregate (In Thousands) (In Thousands) Outstanding at June 30, 2022 3,253 $ 14.97 4.5 years $ 61 Granted — — — Exercised — — — Forfeited (269) 14.76 Outstanding at June 30, 2023 2,984 $ 14.99 3.5 years $ — Exercisable at June 30, 2023 2,924 $ 15.03 3.5 years $ — The Company generally issues shares from authorized but unissued shares upon the exercise of vested options. There were no vested options exercised during the years ended June 30, 2023 and 2022. A total of 41,412 vested options, with an aggregate intrinsic value of $158,000, were exercised during the year ended June 30, 2021. In fulfillment of these exercises, the Company issued 41,412 shares from authorized but unissued shares. The cash proceeds from stock option exercises during the year ended June 30, 2021 totaled approximately $373,000. A portion of such exercises represented disqualifying dispositions of incentive stock options for which the Company recognized $47,000 in income tax benefit. Expected future compensation expense relating to the 60,000 non-vested options outstanding as of June 30, 2023 is $59,000 over a weighted average period of 0.5 years. Restricted Stock Restricted shares awarded under the 2016 Plan generally vest in equal installments over a five-year service period. In addition to the requisite service period, the vesting of certain restricted shares awarded to management are also conditioned upon the achievement of one or more objective performance factors established by the Compensation Committee of the Company’s Board of Directors. In accordance with the terms of the 2016 Plan, such factors may be based on the performance of the Company as a whole or on any one or more business units of the Company or its subsidiaries. Performance factors may be measured relative to a peer group, an index or certain financial targets established in the Company's strategic business plan and budget. The Company fully achieved the applicable performance targets for fiscal 2022 and therefore all eligible performance-based restricted shares successfully vested during the year ended June 30, 2023. The performance factors and underlying cost basis of the remaining unvested performance-based restricted shares are generally expected to be determined annually concurrent with the anniversary date of the original grants. For service based awards management recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period. For performance vesting awards management recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period; however, if the corporate performance goals to which the vesting of such shares are tied are not achieved, recognized compensation expense is adjusted accordingly. The following is a summary of the Company’s restricted share award activity for the year ended June 30, 2023: Vesting Contingent on Service Conditions Vesting Contingent on Performance and Service Conditions Restricted Weighted Restricted Weighted (In Thousands) (In Thousands) Non-vested at June 30, 2022 75 $ 13.34 61 $ 13.33 Granted — — — — Vested (32) 13.38 (25) 13.38 Forfeited — — — — Non-vested at June 30, 2023 43 $ 13.31 36 $ 13.30 During the years ended June 30, 2023, 2022 and 2021, the total fair value of vested restricted shares were $767,000, $4.3 million and $4.2 million, respectively. Expected future compensation expense relating to the 78,826 non-vested restricted shares at June 30, 2023 is $527,000 over a weighted average period of 2.9 years. Restricted Stock Units RSUs awarded under the 2021 Plan generally vest in equal installments over a specified service period. In addition to the requisite service period, the vesting of certain RSUs are also conditioned upon the achievement of one or more objective performance measures established by the Compensation Committee of the Company’s Board of Directors. In accordance with the terms of the 2021 Plan, such measures may be based on the performance of the Company as a whole or on any one or more business units of the Company or its subsidiaries. Performance measures may be measured relative to a peer group, an index or certain financial targets established in the Company’s strategic business plan and budget. For service-based RSUs, the Company recognizes compensation expense for the fair value of RSUs on a straight-line basis over the requisite service period of each tranche. For performance-based RSUs, the Company recognizes compensation expense for the fair value of RSUs on a straight-line basis over the requisite service period; however, the compensation will be adjusted accordingly based on the achievement of the performance measures. The following is a summary of the Company’s RSU activity for the year ended June 30, 2023: Vesting Contingent on Service Conditions Vesting Contingent on Performance and Service Conditions Restricted Weighted Restricted Weighted (In Thousands) (In Thousands) Non-vested at June 30, 2022 182 $ 13.68 70 $ 13.68 Granted 238 11.85 85 11.85 Vested (61) 13.68 — — Forfeited (17) 12.73 — — Non-vested at June 30, 2023 342 $ 12.45 155 $ 12.68 Expected future compensation expense relating to the 497,664 non-vested RSUs at June 30, 2023 is $3.6 million over a weighted average period of 2.1 years. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Regulatory Capital Federal banking regulators impose various restrictions or requirements on the ability of savings institutions to make capital distributions, including cash dividends. A savings institution that is a subsidiary of a savings and loan holding company, such as the Bank, must file an application or a notice with federal banking regulators at least 30 days before making a capital distribution. A savings institution must file an application for prior approval of a capital distribution if: (i) it is not eligible for expedited treatment under the applications processing rules of federal banking regulators; (ii) the total amount of all capital distributions, including the proposed capital distribution, for the applicable calendar year would exceed an amount equal to the savings institution’s net income for that year to date plus the institution’s retained net income for the preceding two years; (iii) it would not adequately be capitalized after the capital distribution; or (iv) the distribution would violate an agreement with federal banking regulators or applicable regulations. Federal banking regulators may disapprove a notice or deny an application for a capital distribution if: (i) the savings institution would be undercapitalized following the capital distribution; (ii) the proposed capital distribution raises safety and soundness concerns; or (iii) the capital distribution would violate a prohibition contained in any statute, regulation or agreement. During the fiscal year ended June 30, 2023, an application for quarterly capital distributions from the Bank to the Company was approved by federal banking regulators. The amount of dividends payable is based on 60 percent of quarterly net income of the Bank. During the years ended June 30, 2023, 2022 and 2021, dividends paid by the Bank to the Company, in conjunction with quarterly capital distributions, as discussed above, totaled $26.3 million, $56.7 million and $43.9 million, respectively. The Bank and the Company are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank and consolidated Company must meet specific capital guidelines that involve quantitative measures of their respective assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s and consolidated Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weighting, and other factors. The minimum capital level requirements applicable to both the Bank and the consolidated Company include: (i) a common equity Tier 1 capital ratio of 4.5%; (ii) a Tier 1 capital ratio of 6%; (iii) a total capital ratio of 8%; and (iv) a Tier 1 leverage ratio of 4% for all institutions. The Bank and the consolidated Company are also required to maintain a “capital conservation buffer” of 2.5% above the regulatory minimum capital ratios which results in the following minimum ratios: (i) a common equity Tier 1 capital ratio of 7.0%; (ii) a Tier 1 capital ratio of 8.5%; and (iii) a total capital ratio of 10.5%. An institution will be subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if its capital level falls below the buffer amount. These limitations will establish a maximum percentage of eligible retained income that could be utilized for such actions. At June 30, 2023 and 2022, the regulatory capital ratios, of both the Company and the Bank were in excess of the levels required by federal banking regulators to be classified as “well-capitalized” under regulatory guidelines. The following tables present information regarding the Bank’s regulatory capital levels at June 30, 2023 and 2022: At June 30, 2023 Actual For Capital To Be Well Capitalized Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) Total capital (to risk-weighted assets) $ 695,417 13.31 % $ 417,853 8.00 % $ 522,316 10.00 % Tier 1 capital (to risk-weighted assets) 659,783 12.63 % 313,389 6.00 % 417,853 8.00 % Common equity tier 1 capital (to risk-weighted assets) 659,783 12.63 % 235,042 4.50 % 339,505 6.50 % Tier 1 capital (to adjusted total assets) 659,783 8.15 % 323,922 4.00 % 404,902 5.00 % At June 30, 2022 Actual For Capital To Be Well Capitalized Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) Total capital (to risk-weighted assets) $ 672,274 13.10 % $ 410,429 8.00 % $ 513,036 10.00 % Tier 1 capital (to risk-weighted assets) 642,336 12.52 % 307,822 6.00 % 410,429 8.00 % Common equity tier 1 capital (to risk-weighted assets) 642,336 12.52 % 230,866 4.50 % 333,473 6.50 % Tier 1 capital (to adjusted total assets) 642,336 8.70 % 295,163 4.00 % 368,954 5.00 % The following tables present information regarding the consolidated Company’s regulatory capital levels at June 30, 2023 and 2022: At June 30, 2023 Actual For Capital Amount Ratio Amount Ratio (Dollars in Thousands) Total capital (to risk-weighted assets) $ 770,621 14.75 % $ 418,015 8.00 % Tier 1 capital (to risk-weighted assets) 734,987 14.07 % 313,511 6.00 % Common equity tier 1 capital (to risk-weighted assets) 734,987 14.07 % 235,133 4.50 % Tier 1 capital (to adjusted total assets) 734,987 9.07 % 324,170 4.00 % At June 30, 2022 Actual For Capital Amount Ratio Amount Ratio (Dollars in Thousands) Total capital (to risk-weighted assets) $ 778,253 15.17 % $ 410,515 8.00 % Tier 1 capital (to risk-weighted assets) 748,315 14.58 % 307,886 6.00 % Common equity tier 1 capital (to risk-weighted assets) 748,315 14.58 % 230,914 4.50 % Tier 1 capital (to adjusted total assets) 748,315 10.14 % 295,290 4.00 % Stock Repurchase Plans On August 1, 2022, the Company announced the authorization of a new stock repurchase plan to repurchase up to 4,000,000 shares, and the completion of the Company’s previous stock repurchase plan, which authorized the repurchase of 7,602,021 shares. During the year ended June 30, 2023, the Company repurchased a total of 2,820,398 shares of its common stock at a total cost of $27.4 million, or $9.73 per share, including 2,495,253 shares, or 62.4% of the shares authorized for repurchase under the current repurchase program, at a cost of $23.8 million, or $9.54 per share. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income taxes are as follows: Years Ended June 30, 2023 2022 2021 (In Thousands) Current income tax expense: Federal $ 6,145 $ 12,720 $ 12,051 State 2,634 7,057 5,058 8,779 19,777 17,109 Deferred income tax expense: Federal 1,902 2,895 2,673 State 887 2,128 2,016 2,789 5,023 4,689 Valuation allowance — — (535) Total income tax expense $ 11,568 $ 24,800 $ 21,263 The following table presents a reconciliation between the reported income taxes for the periods presented and the income taxes which would be computed by applying the federal income tax rates applicable to those periods. The federal income tax rate of 21% was applicable for the years ended June 30, 2023, 2022 and 2021. Years Ended June 30, 2023 2022 2021 (Dollars In Thousands) Income before income taxes $ 52,379 $ 92,347 $ 84,496 Statutory federal tax rate 21 % 21 % 21 % Federal income tax expense at statutory rate $ 11,000 $ 19,393 $ 17,744 (Reduction) increases in income taxes resulting from: Tax exempt interest (143) (266) (345) State tax, net of federal tax effect 2,781 7,257 5,464 Incentive stock options compensation expense 12 45 85 Income from bank-owned life insurance (1,840) (1,281) (1,255) Disqualifying disposition on incentive stock options — — (33) Non-deductible merger-related expenses — — 49 Bargain purchase gain — — (641) Other items, net (242) (348) 730 11,568 24,800 21,798 Valuation allowance — — (535) Total income tax expense $ 11,568 $ 24,800 $ 21,263 Effective income tax rate 22.09 % 26.86 % 25.16 % The effective income tax rate represents total income tax expense divided by income before income taxes. Retained earnings at June 30, 2023, includes approximately $38.4 million of bad debt allowance , pursuant to the IRC, for which income taxes have not been provided. If such amount is used for purposes other than to absorb bad debts, including distributions in liquidation, it will be subject to income tax at the then current rate. A tax position is recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation process, if any. A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more likely than not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Realization of deferred tax assets is dependent upon the generation of future taxable income or the existence of sufficient taxable income within the carryover period. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. In assessing the need for a valuation allowance, management considers the scheduled reversal of the deferred tax liabilities, the level of historical taxable income, and the projected future taxable income over the periods in which the temporary differences comprising the deferred tax assets will be deductible. Based on its assessments as of June 30, 2023 and 2022, the Company determined it is more likely than not that all deferred tax assets will be realized. During the year ended June 30, 2021, the Company reversed a valuation allowance totaling $535,000 which was associated with the realization of a capital loss carryforward. The tax effects of existing temporary differences that give rise to deferred income tax assets and liabilities are as follows: June 30, 2023 2022 (In Thousands) Deferred income tax assets: Purchase accounting $ 4,098 $ 6,327 Accumulated other comprehensive income: Defined benefit plans — 26 Unrealized loss on securities available for sale 45,018 34,104 Allowance for credit losses 14,211 13,809 Benefit plans 2,603 2,494 Compensation 1,440 2,023 Stock-based compensation 3,161 2,834 Uncollected interest 1,313 1,705 Depreciation 2,335 1,931 Net operating loss carryover 2 4 Capital loss carryforward 191 141 Other items 839 844 75,211 66,242 Deferred income tax liabilities: Deferred loan fees and costs 1,710 838 Accumulated other comprehensive income: Derivatives 16,940 11,542 Defined benefit plans 78 — Goodwill 4,510 4,510 Other items — 2 23,238 16,892 Net deferred income tax asset $ 51,973 $ 49,350 The Company has various state and local NOL carryforwards which will begin to expire in the year ending June 30, 2025. The Company and its subsidiaries are subject to U.S. federal income tax, as well as income tax of the state of New Jersey and various other states. The Company is generally no longer subject to examination by federal, state and local taxing authorities for tax years prior to June 30, 2020. |
Commitments
Commitments | 12 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit. These transactions involve elements of credit and interest rate risk in excess of the amounts recognized in the Consolidated Statements of Financial Condition. The Bank's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual notional amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Bank upon extension of credit is based on management’s credit evaluation of the borrower. At June 30, 2023 and 2022, the Bank had $251.2 million and $510.5 million in commitments to originate loans, including unused lines of credit. The Bank is party to standby letters of credit through which it guarantees certain specific business obligations of its commercial customers. The balance of standby letters of credit at June 30, 2023 and 2022 were approximately $115,000 and $130,000, respectively. In addition to the commitments noted above, at June 30, 2023, the Company’s pipeline of loans held for sale included $11.7 million of in-process loans whose terms included interest rate locks to borrowers that were paired with a best-efforts commitment to sell the loan to a buyer at a fixed price within a predetermined timeframe after the sale commitment is established. The Company and subsidiaries are also party to litigation which arises primarily in the ordinary course of business. In the opinion of management, the ultimate disposition of such litigation should not have a material adverse effect on the consolidated financial position of the Company. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability or inputs that are derived principally from, or corroborated by, market data by correlation or other means. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Assets Measured on a Recurring Basis: The following methods and significant assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at June 30, 2023 and 2022: Investment Securities Available for Sale The Company’s available for sale investment securities are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the securities’ terms and conditions, among other things. From time to time, the Company validates prices supplied by the independent pricing service by comparison to prices obtained from third-party sources or derived using internal models. Derivatives The Company has contracted with a third party vendor to provide periodic valuations for its interest rate derivatives to determine the fair value of its interest rate caps and swaps. The vendor utilizes standard valuation methodologies applicable to interest rate derivatives such as discounted cash flow analysis and extensions of the Black-Scholes model. Such valuations are based upon readily observable market data and are therefore considered Level 2 valuations by the Company. Those assets and liabilities measured at fair value on a recurring basis are summarized below: June 30, 2023 Quoted Significant Significant Total (In Thousands) Assets: Debt securities available for sale: Asset-backed securities $ — $ 136,170 $ — $ 136,170 Collateralized loan obligations — 376,996 — 376,996 Corporate bonds — 135,018 — 135,018 Total debt securities — 648,184 — 648,184 Mortgage-backed securities available for sale: Residential pass-through securities — 436,151 — 436,151 Commercial pass-through securities — 143,394 — 143,394 Total mortgage-backed securities — 579,545 — 579,545 Total securities available for sale $ — $ 1,227,729 $ — $ 1,227,729 Interest rate contracts $ — $ 71,624 $ — $ 71,624 Total assets $ — $ 1,299,353 $ — $ 1,299,353 June 30, 2022 Quoted Prices Significant Significant Total (In Thousands) Assets: Debt securities available for sale: Obligations of state and political subdivisions $ — $ 28,435 $ — $ 28,435 Asset-backed securities — 166,557 — 166,557 Collateralized loan obligations — 307,813 — 307,813 Corporate bonds — 153,397 — 153,397 Total debt securities — 656,202 — 656,202 Mortgage-backed securities available for sale: Collateralized mortgage obligations — 7,122 — 7,122 Residential pass-through securities — 514,758 — 514,758 Commercial pass-through securities — 166,011 — 166,011 Total mortgage-backed securities — 687,891 — 687,891 Total securities available for sale $ — $ 1,344,093 $ — $ 1,344,093 Interest rate contracts $ — $ 41,223 $ — $ 41,223 Total assets $ — $ 1,385,316 $ — $ 1,385,316 Assets Measured on a Non-Recurring Basis: The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a non-recurring basis at June 30, 2023 and 2022: Individually Analyzed Collateral Dependent Loans: The fair value of collateral dependent loans that are individually analyzed is determined based upon the appraised fair value of the underlying collateral, less costs to sell. Such collateral primarily consists of real estate and, to a lesser extent, other business assets. Management may also adjust appraised values to reflect estimated changes in market values or apply other adjustments to appraised values resulting from its knowledge of the collateral. Internal valuations may be utilized to determine the fair value of other business assets. For non-collateral-dependent loans, management estimates fair value using discounted cash flows based on inputs that are largely unobservable and instead reflect management’s own estimates of the assumptions as a market participant would in pricing such loans. Individually analyzed collateral dependent loans are considered a Level 3 valuation by the Company. Other Real Estate Owned Other real estate owned is recorded at estimated fair value, less estimated selling costs when acquired, thus establishing a new cost basis. Fair value is generally based on independent appraisals. These appraisals include adjustments to comparable assets based on the appraisers’ market knowledge and experience. When an asset is acquired, the excess of the loan balance over fair value, less estimated selling costs, is charged to the allowance for credit losses. If further declines in the estimated fair value of the asset occur, 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 economic conditions. Those assets and liabilities measured at fair value on a non-recurring basis are summarized below: June 30, 2023 Quoted Prices Significant Significant Total (In Thousands) Collateral dependent loans: Residential mortgage $ — $ — $ 449 $ 449 Multi-family mortgage — — 7,300 7,300 Nonresidential mortgage — — 9,972 9,972 Total $ — $ — $ 17,721 $ 17,721 Other real estate owned, net: Nonresidential $ — $ — $ 12,956 $ 12,956 Total $ — $ — $ 12,956 $ 12,956 June 30, 2022 Quoted Prices Significant Significant Total (In Thousands) Collateral dependent loans: Residential mortgage $ — $ — $ 2,035 $ 2,035 Multi-family mortgage — — 7,517 7,517 Nonresidential mortgage — — 11,479 11,479 Total $ — $ — $ 21,031 $ 21,031 Other real estate owned, net: Residential $ — $ — $ 178 $ 178 Total $ — $ — $ 178 $ 178 The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company has utilized adjusted Level 3 inputs to determine fair value: June 30, 2023 Fair Valuation Unobservable Range Weighted (Dollars in Thousands) Collateral dependent loans: Residential mortgage $ 449 Market valuation of underlying collateral (1) Adjustments to reflect current conditions/selling costs (2) 6.93% 6.93 % Multi-family mortgage 7,300 Market valuation of underlying collateral (1) Adjustments to reflect current conditions/selling costs (2) 6% - 9% 7.78 % Nonresidential mortgage 9,972 Market valuation of underlying collateral (1) Adjustments to reflect current conditions/selling costs (2) 9% - 16% 11.78 % Total $ 17,721 Other real estate owned, net: Nonresidential $ 12,956 Market valuation of underlying collateral (3) Adjustments to reflect current conditions/selling costs (2) 4.00% 4.00 % Total $ 12,956 June 30, 2022 Fair Valuation Unobservable Range Weighted (Dollars in Thousands) Collateral dependent loans: Residential mortgage $ 2,035 Market valuation of underlying collateral (1) Adjustments to reflect current conditions/selling costs (2) 7% - 10% 8.97 % Multi-family mortgage 7,517 Market valuation of underlying collateral (1) Adjustments to reflect current conditions/selling costs (2) 10% - 12% 11.06 % Nonresidential mortgage 11,479 Market valuation of underlying collateral (1) Adjustments to reflect current conditions/selling costs (2) 9% - 18% 12.72 % Total $ 21,031 Other real estate owned, net: Residential $ 178 Market valuation of underlying collateral (3) Adjustments to reflect current conditions/selling costs (2) 6.00% 6.00 % Total $ 178 ________________________________________ (1) The fair value basis of collateral dependent loans is generally determined based on an independent appraisal of the fair value of a loan’s underlying collateral. (2) The fair value basis of collateral dependent loans and other real estate owned is adjusted to reflect management estimates of selling costs including, but not limited to, real estate brokerage commissions and title transfer fees. (3) The fair value basis of other real estate owned is generally determined based upon the lower of an independent appraisal of the property’s fair value or the applicable listing price or contracted sales price. At June 30, 2023, collateral dependent loans valued using Level 3 inputs comprised loans with principal balance totaling $21.0 million and valuation allowance of $3.3 million reflecting an aggregate fair value of $17.7 million. By comparison, at June 30, 2022, collateral dependent loans valued using Level 3 inputs comprised loans with principal balance totaling $24.6 million and valuation allowances of $3.6 million reflecting an aggregate fair value of $21.0 million. Once a loan is foreclosed, the fair value of the other real estate owned continues to be evaluated based upon the fair value of the repossessed real estate originally securing the loan. At June 30, 2023 and 2022, the Company held other real estate owned totaling $13.0 million and $178,000, respectively, whose carrying value was written down utilizing Level 3 inputs. The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2023 and 2022: June 30, 2023 Carrying Fair Quoted Significant Significant (In Thousands) Financial assets: Cash and cash equivalents $ 70,515 $ 70,515 $ 70,515 $ — $ — Investment securities available for sale 1,227,729 1,227,729 — 1,227,729 — Investment securities held to maturity 146,465 131,169 — 131,169 — Loans held-for-sale 9,591 9,442 — 9,442 — Net loans receivable 5,780,687 5,261,808 — — 5,261,808 FHLB Stock 71,734 — — — — Interest receivable 28,133 28,133 14 8,924 19,195 Interest rate contracts 71,624 71,624 — 71,624 — Financial liabilities: Deposits 3,611,632 3,611,632 3,611,632 — — Certificates of deposits 2,017,551 1,989,434 — — 1,989,434 Borrowings 1,506,812 1,498,920 — — 1,498,920 Interest payable on deposits 6,826 6,826 1,933 — 4,893 Interest payable on borrowings 5,282 5,282 — — 5,282 June 30, 2022 Carrying Fair Quoted Significant Significant (In Thousands) Financial assets: Cash and cash equivalents $ 101,615 $ 101,615 $ 101,615 $ — $ — Investment securities available for sale 1,344,093 1,344,093 — 1,344,093 — Investment securities held to maturity 118,291 108,118 — 108,118 — Loans held-for-sale 28,874 28,831 — 28,831 — Net loans receivable 5,370,787 5,215,079 — — 5,215,079 FHLB Stock 47,144 — — — — Interest receivable 20,466 20,466 2 5,210 15,254 Interest rate contracts 41,223 41,223 — 41,223 — Financial liabilities: Deposits 3,972,694 3,972,694 3,972,694 — — Certificates of deposits 1,889,562 1,866,341 — — 1,866,341 Borrowings 901,337 900,505 — — 900,505 Interest payable on deposits 722 722 147 — 575 Interest payable on borrowings 1,611 1,611 — — 1,611 Commitments. The fair value of commitments to fund credit lines and originate or participate in loans held in portfolio or loans held for sale is estimated using 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, including those relating to loans held for sale that are considered derivative instruments for financial statement reporting purposes, the fair value also considers the difference between current levels of interest and the committed rates. The carrying value, represented by the net deferred fee arising from the unrecognized commitment, and the fair value, determined by discounting the remaining contractual fee over the term of the commitment using fees currently charged to enter into similar agreements with similar credit risk, is not considered material for disclosure. Limitations. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire holdings of a particular financial instrument. Because no fair value exists for a significant portion of the 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, involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. The fair value estimates are based on existing on-and-off balance sheet financial instruments without attempting to value anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial assets and liabilities include premises and equipment, and advances from borrowers for taxes and insurance. In addition, the 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 any of the estimates. Finally, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates which must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies introduces a greater degree of subjectivity to these estimated fair values. |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Jun. 30, 2023 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Comprehensive Income | Comprehensive Income The components of accumulated other comprehensive (loss) income included in stockholders’ equity are as follows: June 30, 2023 2022 (In Thousands) Net unrealized loss on securities available for sale $ (156,138) $ (118,031) Tax effect 45,018 34,104 Net of tax amount (111,120) (83,927) Fair value adjustments on derivatives 58,414 39,805 Tax effect (16,940) (11,542) Net of tax amount 41,474 28,263 Benefit plan adjustments 268 (89) Tax effect (78) 26 Net of tax amount 190 (63) Total accumulated other comprehensive loss $ (69,456) $ (55,727) Other comprehensive (loss) income and related tax effects are presented in the following table: Years Ended June 30, 2023 2022 2021 (In Thousands) Net unrealized loss on securities available for sale $ (53,334) $ (128,601) $ (11,704) Net realized loss (gain) on securities available for sale (1) 15,227 559 (767) Fair value adjustments on derivatives 18,609 40,117 19,106 Benefit plans: (Accretion) amortization of actuarial (gain) loss (2) (24) 80 83 Net actuarial gain 381 924 236 Net change in benefit plan accrued expense 357 1,004 319 Other comprehensive (loss) income before taxes (19,141) (86,921) 6,954 Tax effect 5,412 25,050 (2,067) Total other comprehensive (loss) income $ (13,729) $ (61,871) $ 4,887 ________________________________________ (1) Represents amounts reclassified out of accumulated other comprehensive (loss) income and included in gain on sale of securities on the Consolidated Statements of Income. (2) Represents amounts reclassified out of accumulated other comprehensive (loss) income and included in the computation of net periodic pension expense. See Note 13 – Benefit Plans for additional information. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income. The following table presents the Company’s sources of noninterest income for the years ended June 30, 2023, 2022 and 2021. Sources of revenue outside the scope of ASC 606 are noted as such. Years Ended June 30, 2023 2022 2021 (In Thousands) Non-interest income: Deposit-related fees and charges $ 1,881 $ 1,733 $ 1,412 Loan-related fees and charges (1) 1,225 847 485 (Loss) gain on sale and call of securities (1) (15,227) (559) 767 (Loss) gain on sale of loans (1) (1,645) 2,539 5,574 (Loss) gain on sale of other real estate owned (139) 5 — Income from bank owned life insurance (1) 8,645 6,167 6,267 Electronic banking fees and charges (interchange income) 1,759 1,626 1,717 Bargain purchase gain (1) — — 3,053 Miscellaneous (1) 6,252 1,576 1,751 Total non-interest income $ 2,751 $ 13,934 $ 21,026 ________________________________________ (1) Not within the scope of ASC 606. A description of the Company’s revenue streams accounted for under ASC 606 is as follows: Service Charges on Deposit Accounts The Company earns fees from deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed at the point in the time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance. Gains/Losses on Sales of OREO The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. Gain/Losses on the sales of OREO falls within the scope of ASC 606, if the Company finances the transaction. Under ASC 606, if the Company finances the sale of OREO to the buyer, the Company is required to assess whether the buyer is committed to perform their obligations under the contract and whether the collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. Generally, the Company does not finance the sale of OREO properties. Interchange Income The Company earns interchange fees from debit and credit card holder transactions conducted through various payment networks. Interchange fees from cardholder transactions are recognized daily, concurrently with the transaction processing services provided by an outsourced technology solution. |
Parent Only Financial Informati
Parent Only Financial Information | 12 Months Ended |
Jun. 30, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Only Financial Information | Parent Only Financial Information Kearny Financial Corp. operates its wholly owned subsidiary Kearny Bank and the Bank’s wholly-owned subsidiaries CJB Investment Corp. and 189-245 Berdan Avenue LLC. The consolidated earnings of the subsidiaries are recognized by the Company using the equity method of accounting. Accordingly, the consolidated earnings of the subsidiaries are recorded as increases in the Company’s investment in the subsidiaries. The following are the condensed financial statements for Kearny Financial Corp. (Parent Company only) as of June 30, 2023 and 2022, and for each of the years in the three-year period ended June 30, 2023. Condensed Statements of Financial Condition June 30, 2023 2022 (In Thousands) Assets Cash and amounts due from depository institutions $ 48,839 $ 77,750 Loans receivable 26,384 28,201 Investment in subsidiary 794,080 788,021 Other assets 827 448 Total Assets $ 870,130 $ 894,420 Liabilities and Stockholders' Equity Other liabilities 846 420 Stockholders' equity 869,284 894,000 Total Liabilities and Stockholders' Equity $ 870,130 $ 894,420 Condensed Statements of Income and Comprehensive Income Years Ended June 30, 2023 2022 2021 (In Thousands) Dividends from subsidiary $ 26,282 $ 156,728 $ 178,918 Interest income 1,749 1,508 1,993 Equity in undistributed earnings of subsidiaries 14,912 (88,452) (114,969) Total income 42,943 69,784 65,942 Directors' compensation 532 530 308 Other expenses 1,715 1,976 2,660 Total expense 2,247 2,506 2,968 Income before income taxes 40,696 67,278 62,974 Income tax expense (115) (269) (259) Net income $ 40,811 $ 67,547 $ 63,233 Comprehensive income $ 27,082 $ 5,676 $ 68,120 Condensed Statements of Cash Flows Years Ended June 30, 2023 2022 2021 (In Thousands) Cash Flows from Operating Activities: Net income $ 40,811 $ 67,547 $ 63,233 Adjustment to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries (14,912) 88,452 114,969 (Increase) decrease in other assets (379) 176 484 Increase (decrease) in other liabilities 271 (184) 160 Net Cash Provided by Operating Activities 25,791 155,991 178,846 Cash Flows from Investing Activities: Repayment of loan to ESOP 1,817 1,758 1,702 Proceeds from the maturity of investment securities available for sale — 15,000 — Outlays for business acquisitions — — (9,008) Other, net — — 118 Net Cash Provided by (Used in) Investing Activities 1,817 16,758 (7,188) Cash Flows from Financing Activities: Exercise of stock options — — 373 Cash dividends paid (28,499) (30,693) (28,648) Repurchase and cancellation of common stock of Kearny Financial Corp. (27,558) (129,520) (119,021) Cancellation of shares repurchased on vesting to pay taxes (462) (977) (803) Net Cash Used In Financing Activities (56,519) (161,190) (148,099) Net (Decrease) Increase in Cash and Cash Equivalents (28,911) 11,559 23,559 Cash and Cash Equivalents - Beginning 77,750 66,191 42,632 Cash and Cash Equivalents - Ending $ 48,839 $ 77,750 $ 66,191 |
Net Income per Common Share (EP
Net Income per Common Share (EPS) | 12 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income per Common Share (EPS) | Net Income per Common Share (EPS) Basic EPS is based on the weighted average number of common shares actually outstanding, including both vested and unvested restricted stock awards, adjusted for ESOP shares not yet committed to be released. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as outstanding stock options or unvested RSUs, were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. Diluted EPS is calculated by adjusting the weighted average number of shares of common stock outstanding to include the effect of contracts or securities exercisable or which could be converted into common stock, if dilutive, using the treasury stock method. Shares issued and reacquired during any period are weighted for the portion of the period they were outstanding. The following schedule shows the Company’s earnings per share calculations for the periods presented: For the Year Ended June 30, 2023 2022 2021 (In Thousands, Except Per Share Data) Net income $ 40,811 $ 67,547 $ 63,233 Weighted average number of common shares outstanding - basic 64,804 70,911 82,387 Effect of dilutive securities — 22 4 Weighted average number of common shares outstanding- diluted 64,804 70,933 82,391 Basic earnings per share $ 0.63 $ 0.95 $ 0.77 Diluted earnings per share $ 0.63 $ 0.95 $ 0.77 Stock options for 2,983,530, 3,115,000 and 3,246,138 shares of common stock were not considered in computing diluted earnings per share at June 30, 2023, 2022 and 2021, respectively, because they were considered anti-dilutive. In addition, 497,664 and 251,905 RSUs were not considered in computing diluted earnings per share at June 30, 2023 and 2022, respectively, because they were considered anti-dilutive. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Pay vs Performance Disclosure | |||
Net Income | $ 40,811 | $ 67,547 | $ 63,233 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Consolidated Financial Statement Presentation | The consolidated financial statements include the accounts of Kearny Financial Corp. (the “Company”), its wholly-owned subsidiary, Kearny Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries, CJB Investment Corp. and 189-245 Berdan Avenue LLC. |
Basis of Accounting | The Company conducts its business principally through the Bank. Management prepared the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”), including the elimination of all significant inter-company accounts and transactions during consolidation. |
Cash and Cash Equivalents | Cash and cash equivalents include cash, deposits with other financial institutions with maturities fewer than 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions and borrowings with original maturities fewer than 90 days. |
Securities | The Company classifies its investment securities as either available for sale or held to maturity. The Company does not use or maintain a trading account. Investment securities that management has the positive intent and ability to hold to maturity are classified as held to maturity and reported at amortized cost. Investment securities not classified as held to maturity are classified as available for sale and reported at fair value, with unrealized holding gains or losses, net of deferred income taxes, reported in the accumulated other comprehensive income (“OCI”) component of stockholders’ equity. Premiums on callable securities are amortized to the earliest call date whereas discounts on such securities are accreted to the maturity date utilizing the level-yield method. Premiums and discounts on all other securities are generally amortized or accreted to the maturity date utilizing the level-yield method taking into consideration the impact of principal amortization and prepayments, as applicable. Gain or loss on sales of securities is based on the specific identification method. Effective July 1, 2020, the Company adopted the provisions of ASC 326 and modified its accounting policy for the assessment of available for sale securities for impairment. Under ASC 326, for available for sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more than likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities available for sale that do not meet the above criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating by a rating agency, and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of tax. The Company elected the practical expedient of zero loss estimates for securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rate by major agencies and have a long history of no credit losses. Under ASC 326, changes in the allowance for credit losses are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. |
Concentration of Risk | Financial instruments which potentially subject the Company and its subsidiaries to concentrations of credit risk consist of cash and cash equivalents, investment securities and loans receivable. Cash and cash equivalents include deposits placed in other financial institutions. Securities include concentrations of investments backed by U.S. government agencies and U.S. government sponsored enterprises (“GSEs”), including the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”) and the Government National Mortgage Association (“Ginnie Mae”). Additional concentration risk exists in the Company’s municipal and corporate obligations, asset-backed securities and collateralized loan obligations. The Company’s lending activity is primarily concentrated in loans collateralized by real estate in the states of New Jersey and New York. As a result, credit risk is broadly dependent on the real estate market and general economic conditions in these states. Additionally, the Company’s lending policies limit the amount of credit extended to any single borrower and their related interests thereby limiting the concentration of credit risk to any single borrower. |
Loans Receivable | Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at unpaid principal balances, net of deferred loan origination fees and costs, purchase discounts and premiums, purchase accounting fair value adjustments and the allowance for credit losses. Interest income is accrued on the unpaid principal balance. Certain direct loan origination costs, net of loan origination fees, are deferred and amortized, using the level-yield method, as an adjustment of yield over the contractual lives of the related loans. Unearned premiums and discounts are amortized or accreted utilizing the level-yield method over the contractual lives of the related loans. |
Loans Held-for-Sale | Loans held-for-sale are carried at the lower of cost or estimated fair value, as determined on an aggregate basis. Net unrealized losses, if any, are recognized in a valuation allowance through a charge to earnings. Premiums and discounts and origination fees and costs on loans held-for-sale are deferred and recognized as a component of the gain or loss on sale. Gains and losses on sales of loans held-for-sale are recognized on settlement dates and are determined by the difference between the sale proceeds and the carrying value of the loans. These transactions are accounted for as sales based on satisfaction of the criteria for such accounting which provide that, as transferor, control over the loans have been surrendered. |
Past Due Loans, Nonaccrual Loans, and Classification of Assets | Past Due Loans A loan’s past due status is generally determined based upon its principal and interest (“P&I”) payment delinquency status in conjunction with its past maturity status, where applicable. A loan’s P&I payment delinquency status is based upon the number of calendar days between the date of the earliest P&I payment due and the as of measurement date. A loan’s past maturity status, where applicable, is based upon the number of calendar days between a loan’s contractual maturity date and the as of measurement date. Based upon the larger of these criteria, loans are categorized into the following past due tiers for financial statement reporting and disclosure purposes: Current (including 1-29 days), 30-59 days, 60-89 days and 90 or more days. Nonaccrual Loans Loans are generally placed on nonaccrual status when contractual payments become 90 or more days past due or when the Company does not expect to receive all P&I payments owed substantially in accordance with the terms of the loan agreement, regardless of past due status. Loans that become 90 day past due, but are well secured and in the process of collection, may remain on accrual status. Nonaccrual loans are generally returned to accrual status when all payments due are brought current and the Company expects to receive all remaining P&I payments owed substantially in accordance with the terms of the loan agreement. Payments received in cash on nonaccrual loans, including both the principal and interest portions of those payments, are generally applied to reduce the carrying value of the loan. Classification of Assets In compliance with the regulatory guidelines, the Company’s loan review system includes an evaluation process through which certain loans exhibiting adverse credit quality characteristics are classified as Special Mention, Substandard, Doubtful or Loss. An asset is classified as Substandard if it is inadequately protected by the paying capacity and net worth of the obligor or the collateral pledged, if any. Substandard assets include those characterized by the distinct possibility that the insured institution will sustain some loss if the deficiencies are not corrected. Assets classified as Doubtful have all of the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses present make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions and values. Assets, or portions thereof, classified as Loss are considered uncollectible or of so little value that their continuance as assets is not warranted. Assets which do not currently expose the Company to a sufficient degree of risk to warrant an adverse classification but have some credit deficiencies or other potential weaknesses are designated as Special Mention by management. Adversely classified assets together with those rated as Special Mention, are generally referred to as Classified Assets. Non-classified assets are internally rated within one of four Pass categories or as Watch with the latter denoting a potential deficiency or concern that warrants increased oversight or tracking by management until remediated. Management generally performs a classification of assets review, including the regulatory classification of assets, on an ongoing basis. The results of the classification of assets review are validated by the Company’s third party loan review firm during their quarterly independent review. In the event of a difference in rating or classification between those assigned by the internal and external resources, the Company will generally utilize the more critical or conservative rating or classification. Final loan ratings and regulatory classifications are presented monthly to the Board of Directors and are reviewed by regulators during the examination process. |
Allowance for Credit Losses | Effective July 1, 2020, the Company adopted the provisions of ASC 326 and modified its accounting policy for the allowance for credit losses on loans. The allowance for credit losses represents the estimated amount considered necessary to cover lifetime expected credit losses inherent in financial assets at the balance sheet date. The measurement of expected credit losses is applicable to loans receivable and securities measured at amortized cost. It also applies to off-balance sheet credit exposures such as loan commitments and unused lines of credit. The allowance is established through a provision for credit losses that is charged against income. The methodology for determining the allowance for credit losses is considered a critical accounting policy by management because of the high degree of judgment involved, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment that could result in changes to the amount of the recorded allowance for credit losses. The allowance for credit losses is reported separately as a contra-asset on the Consolidated Statements of Financial Condition. The expected credit losses for unfunded lending commitments and unfunded loan commitments is reported on the Consolidated Statements of Financial Condition in other liabilities while the provision for credit losses related to unfunded commitments is reported in other non-interest expense. Allowance for Credit Losses on Loans Receivable The allowance for credit losses on loans is deducted from the amortized cost basis of the loan to present the net amount expected to be collected. Expected losses are evaluated and calculated on a collective, or pooled, basis for those loans which share similar risk characteristics. At each reporting period, the Company evaluates whether loans within a pool continue to exhibit similar risk characteristics. If the risk characteristics of a loan change, such that they are no longer similar to other loans in the pool, the Company will evaluate the loan with a different pool of loans that share similar risk characteristics. If the loan does not share risk characteristics with other loans, the Company will evaluate the loan on an individual basis. The Company evaluates the pooling methodology at least annually. Loans are charged off against the allowance for credit losses when the Company believes the balances to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off. The Company has chosen to segment its portfolio consistent with the manner in which it manages credit risk. Such segments include multi-family mortgage, nonresidential mortgage, commercial business, construction, one- to four-family residential mortgage, home equity and consumer. For most segments the Company calculates estimated credit losses using a probability of default and loss given default methodology, the results of which are applied to the aggregated discounted cash flow of each individual loan within the segment. The point in time probability of default and loss given default are then conditioned by macroeconomic scenarios to incorporate reasonable and supportable forecasts that affect the collectability of the reported amount. The Company estimates the allowance for credit losses on loans via a quantitative analysis which considers relevant available information from internal and external sources related to past events and current conditions, as well as the incorporation of reasonable and supportable forecasts. The Company evaluates a variety of factors including third party economic forecasts, industry trends and other available published economic information in arriving at its forecasts. After the reasonable and supportable forecast period, the Company reverts, on a straight-line basis, to the historical average economic variables. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the renewal option is included in the original or modified contract at the reporting date and are not unconditionally cancelable by the Company. Also included in the allowance for credit losses on loans are qualitative reserves to cover losses that are expected but, in the Company’s assessment, may not be adequately represented in the quantitative analysis or the forecasts described above. Factors that the Company considers include changes in lending policies and procedures, business conditions, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due loans and non-accrual loans, the effect of external factors such as competition, legal and regulatory requirements, among others. Qualitative loss factors are applied to each portfolio segment with the amounts judgmentally determined by the relative risk to the most severe loss periods identified in the historical loan charge-offs of a peer group of similar-sized regional banks. Individually Evaluated Loans On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on its disparate risk characteristics. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will charge off the difference between the fair value of the collateral, less costs to sell at the reporting date and the amortized cost basis of the loan. Acquired Loans Acquired loans are included in the Company's calculation of the allowance for credit losses. How the allowance on an acquired loan is recorded depends on whether or not it has been classified as a Purchased Credit Deteriorated (“PCD”) loan. PCD loans are loans acquired at a discount that is due, in part, to credit quality. PCD loans are accounted for in accordance with ASC Subtopic 326-20 and are initially recorded at fair value as determined by the sum of the present value of expected future cash flows and an allowance for credit losses at acquisition. The allowance for PCD loans is recorded through a gross-up effect, while the allowance for acquired non-PCD loans is recorded through provision expense, consistent with originated loans. Thus, the determination of which loans are PCD and non-PCD can have a significant impact on the accounting for these loans. Subsequent to acquisition, the allowance for PCD loans will generally follow the same estimation, provision and charge-off process as non-PCD acquired and originated loans. Allowance for Credit Losses on Off-Balance Sheet Commitments The Company is required to include unfunded commitments that are expected to be funded in the future within the allowance calculation, other than those that are unconditionally cancelable. To arrive at that reserve, the reserve percentage for each applicable segment is applied to the unused portion of the expected commitment balance and is multiplied by the expected funding rate. To determine the expected funding rate, the Company uses a historical utilization rate for each segment. As noted above, the allowance for credit losses on unfunded loan commitments is included in other liabilities on the Consolidated Statements of Financial Condition and the related credit expense is recorded in other non-interest expense in the Consolidated Statements of Income. |
Troubled Debt Restructurings | A modification to the terms of a loan is generally considered a TDR if the Company grants a concession to a borrower, that it would not otherwise consider, due to the borrower’s financial difficulties. In granting the concession, the Company’s general objective is to obtain more cash or other value from the borrower or otherwise increase the probability of repayment. A TDR may include, but is not necessarily limited to, the modification of loan terms such as the reduction of the loan’s stated interest rate, extension of the maturity date and/or reduction or deferral of amounts owed under the terms of the loan agreement. In measuring the impairment associated with restructured loans that qualify as TDRs, the Company compares the present value of the cash flows that are expected to be received in accordance with the loan’s modified terms, discounted at the loan’s original contractual interest rate, with the pre-modification carrying value to measure impairment. All restructured loans that qualify as TDRs are placed on nonaccrual status for a period of no less than six months after restructuring, irrespective of the borrower’s adherence to a TDR’s modified repayment terms during which time TDRs continue to be adversely classified and reported as impaired. TDRs may be returned to accrual status and a non-adverse classification if (1) the borrower has paid timely P&I payments in accordance with the terms of the restructured loan agreement for no less than six consecutive months after restructuring, and (2) the Company expects to receive all P&I payments owed substantially in accordance with the terms of the restructured loan agreement. |
Premises and Equipment | Land is carried at cost. Office buildings, leasehold improvements and furniture, fixtures and equipment are carried at cost, less accumulated depreciation and amortization. Office buildings and furniture, fixtures and equipment are depreciated using the straight-line method over their estimated useful lives of the respective assets. Leasehold improvements are amortized using the straight-line method over the terms of the respective leases or lives of the assets, whichever is shorter. Construction in progress primarily represents facilities under construction for future use in our business and includes all costs to acquire land and construct buildings, as well as capitalized interest during the construction period. Interest is capitalized at the Company’s average cost of interest-bearing liabilities. |
Other Real Estate Owned and Other Repossessed Assets | Properties and other assets acquired through foreclosure, deed in lieu of foreclosure or repossession are carried at estimated fair value, less estimated selling costs. The estimated fair value of real estate property and other repossessed assets is generally based on independent appraisals. When an asset is acquired, the excess of the loan balance over fair value, less estimated selling costs, is charged to the allowance for credit losses. Thereafter, decreases in the properties’ estimated fair value are charged to income along with any additional property maintenance and protection expenses incurred in owning the properties. |
Federal Home Loan Bank Stock | Federal law requires a member institution of the FHLB system to hold restricted stock of its district FHLB according to a predetermined formula. The restricted stock is carried at cost, less any applicable impairment. Both cash and stock dividends are reported as income. |
Goodwill and Other Intangible Assets | Goodwill arises from business combinations and is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company performed its annual impairment test during the fourth quarter of its fiscal year ended June 30, 2023. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our audited Consolidated Statements of Financial Condition. In assessing impairment, the Company has the option to perform a qualitative analysis to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount. If, after assessing the totality of such events or circumstances, the Company determines it is not more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, then the Company would not be required to perform a quantitative impairment test. |
Bank Owned Life Insurance | Bank owned life insurance is accounted for using the cash surrender value method and is recorded at its net realizable value. The change in the net asset value is recorded as a component of non-interest income. A deferred liability has been recorded for the estimated cost of postretirement life insurance benefits accruing to applicable employees and directors covered by an endorsement split-dollar life insurance arrangement. |
Transfers of Financial Assets | Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company - put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. |
Income Taxes | The Company and its subsidiaries file consolidated federal income tax returns. Federal income taxes are allocated to each entity based on their respective contributions to the taxable income of the consolidated income tax returns. Separate state income tax returns are filed for the Company and its subsidiaries on either a consolidated or unconsolidated basis as required by the jurisdiction. The federal income tax rate of 21% was applicable for the years ended June 30, 2023, 2022 or 2021. Federal and state income taxes have been provided on the basis of the Company’s income or loss as reported in accordance with GAAP. The amounts reflected on the Company’s state and federal income tax returns differ from these provisions due principally to temporary differences in the reporting of certain items for financial statement reporting and income tax reporting purposes. The tax effect of these temporary differences is accounted for as deferred taxes applicable to future periods. Deferred income tax expense or benefit is determined by recognizing deferred tax assets and liabilities for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. The realization of deferred tax assets is assessed and a valuation allowance provided for the full amount which is not more likely than not to be realized. |
Retirement Plans | Pension expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. Employee 401(k) and profit sharing plan expense is the amount of matching contributions. Deferred compensation plan expense allocates the benefits over years of service. |
Employee Stock Ownership Plan | The cost of shares issued to the Employee Stock Ownership Plan (the “ESOP”), but not yet allocated to participants, is shown as a reduction of shareholders’ equity. Compensation expense is based on the market price of shares as they are committed to be released to participant accounts. Dividends on allocated and unallocated ESOP shares either reduce retained earnings or reduce debt and accrued interest as determined by the ESOP Plan Administrator. |
Comprehensive Income | Comprehensive income is comprised of net income and other comprehensive income (loss). Other comprehensive income (loss) includes items recorded in equity, such as unrealized gains and losses on securities available for sale, unrealized gains and losses on derivatives and amortization related to post-retirement obligations. Comprehensive income is presented in a separate Consolidated Statement of Comprehensive Income |
Loss Contingencies | Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements. |
Loan Commitments and Related Financial Instruments | Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. (See Note 17, Commitments, for additional information). |
Derivatives and Hedging | The Company utilizes derivative instruments in the form of interest rate swaps and caps to hedge its exposure to interest rate risk in conjunction with its overall asset/liability management process. In accordance with accounting requirements, the Company formally designates all of its hedging relationships as either fair value hedges, intended to offset the changes in the value of certain financial instruments due to movements in interest rates, or cash flow hedges, intended to offset changes in the cash flows of certain financial instruments due to movement in interest rates, and documents the strategy for undertaking the hedge transactions, and its method of assessing ongoing effectiveness. The Company does not use derivative instruments for speculative purposes. All derivatives are recognized as either assets or liabilities in the Consolidated Financial Statements at their fair values. For a derivative designated as a cash flow hedge, the gain or loss on the derivative is recorded in other comprehensive income and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. For a derivative designated as a fair value hedge, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. Derivative instruments qualify for hedge accounting treatment only if they are designated as such on the date on which the derivative contract is entered and are expected to be, and are, effective in substantially reducing interest rate risk arising from the assets and liabilities identified as exposing the Company to risk. Those derivative financial instruments that do not meet the hedging criteria discussed below would be classified as undesignated derivatives and would be recorded at fair value with changes in fair value recorded in income. The Company discontinues hedge accounting when (a) it determines that a derivative is no longer effective in offsetting changes in cash flows of a hedged item; (b) the derivative expires or is sold, terminated or exercised; (c) probability exists that the forecasted transaction will no longer occur; or (d) management determines that designating the derivative as a hedging instrument is no longer appropriate. In all cases in which hedge accounting is discontinued and a derivative remains outstanding, the Company will carry the derivative at fair value in the Consolidated Financial Statements, recognizing changes in fair value in current period income in the Consolidated Statements of Income. In accordance with the applicable accounting guidance, the Company takes into account the impact of collateral and master netting agreements that allow it to settle all derivative contracts held with a single counterparty on a net basis, and to offset the net derivative position with the related collateral when recognizing derivative assets and liabilities. As a result, the Company’s Statements of Financial Condition could reflect derivative contracts with negative fair values included in derivative assets, and contracts with positive fair values included in derivative liabilities. The Company’s interest rate derivatives are comprised of interest rate swaps and caps hedging variable rate wholesale funding and accounted for as cash flow hedges. The carrying value of interest rate derivatives is included in the balance of other assets or other liabilities and comprises the remaining unamortized cost of interest rate caps and the cumulative changes in the fair value of interest rate derivatives. Such changes in fair value are offset against accumulated other comprehensive income, net of deferred income tax. In general, the cash flows received and/or exchanged with counterparties for those derivatives qualifying as interest rate hedges are generally classified in the financial statements in the same category as the cash flows of the items being hedged. Interest differentials paid or received under the swap agreements are reflected as adjustments to interest expense. The notional amounts of the interest rate swaps are not exchanged and do not represent exposure to credit loss. In the event of default by a counter party, the risk in these transactions is the cost of replacing the agreements at current market rates. |
Net Income per Common Share ("EPS") | Basic EPS is based on the weighted average number of common shares actually outstanding adjusted for the ESOP shares not yet committed to be released. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as outstanding stock options or restricted stock units, were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. Diluted EPS is calculated by adjusting the weighted average number of shares of common stock outstanding to include the effect of contracts or securities exercisable or which could be converted into common stock, if dilutive, using the treasury stock method. Shares issued and reacquired during any period are weighted for the portion of the period they were outstanding. |
Fair Value of Financial Instruments | Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 18, Fair Value of Financial Instruments. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. |
Operating Segments | Public companies are required to report certain financial information about significant revenue-producing segments of the business for which such information is available and utilized by the chief operating decision makers. Substantially all of the Company’s operations occur through the Bank and involve the delivery of loan and deposit products to customers. Management makes operating decisions and assesses performance based on an ongoing review of its banking operation, which constitutes the Company’s only operating segment for financial reporting purposes. |
Stock Compensation Plans | Compensation expense related to stock options, non-vested stock awards and non-vested stock units is based on the fair value of the award on the measurement date with expense recognized on a straight-line basis over the service period of the award. The fair value of stock options is estimated using the Black-Scholes valuation model. The fair value of non-vested stock awards and stock units is generally the closing market price of the Company’s common stock on the date of grant. The Company accounts for forfeitures as they occur. |
Advertising and Marketing Expenses | The Company expenses advertising and marketing costs as incurred. |
Recent Accounting Pronouncements and Adoption of New Accounting Standards | In March 2022, the Financial Accounting Standards Board (the “FASB”) issued ASU 2022-02, “Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” to improve the usefulness of information provided to investors about certain loan refinancings, restructurings and writeoffs. ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings by creditors and enhances disclosure requirements for certain modifications made to borrowers experiencing financial difficulty. In addition, ASU 2022-02 requires public business entities to disclose current-period gross writeoffs for financing receivables and net investments in leases by year of origination in the vintage disclosures. For entities that have adopted ASU 2016-13, the amendments in ASU 2022-02 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted if an entity has adopted ASU 2016-13, including adoption in an interim period. If an entity elects to early adopt the amendments in ASU 2022-02, the guidance should be applied as of the beginning of the fiscal year that includes the interim period. An entity may elect to early adopt the amendments about TDRs and related disclosure enhancements separately from the amendments related to vintage disclosures. The amendments in ASU 2022-02 should be applied prospectively, but for the amendments related to the recognition and measurement of TDRs, an entity has the option to apply a modified retrospective transition method that would result in a cumulative-effect adjustment to retained earnings in the period of adoption. The Company is currently evaluating the impact of the adoption of this ASU on its consolidated financial statements. Adoption of New Accounting Standards In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848” that extends the period of time preparers can utilize the reference rate reform relief guidance. In 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” which provides optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The objective of the guidance in Topic 848 is to provide relief during the temporary transition period, so the FASB included a sunset provision within Topic 848 based on expectations of when LIBOR would cease being published. In 2021, the UK Financial Conduct Authority delayed the intended cessation date of certain tenors of USD LIBOR to June 30, 2023. To ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, ASU 2022-06 defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. For all entities, the amendments in ASU 2022-06 are effective upon issuance. The Company adopted this ASU on December 21, 2022 on a prospective basis; therefore, there was no impact to its consolidated financial statements upon adoption. In March 2022, the FASB issued ASU 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method” which clarifies the guidance in ASC 815 on fair value hedge accounting of interest rate risk for portfolios of financial assets. This ASU amends the guidance in ASU 2017-12 (released in August 2017) that, among other things, established the last-of-layer method to enable fair value hedge accounting for these portfolios to be more accessible. ASU 2022-01 expands the current last-of-layer method to allow multiple hedged layers of a single closed portfolio under this method. To reflect that expansion, the last-of-layer method is renamed the portfolio layer method. The scope of last-of-layer hedging will be expanded so that the portfolio layer method can be utilized for nonprepayable financial assets. In addition, ASU 2022-01 specifies eligible hedging instruments in a single-layer hedge, provides additional guidance on the accounting for and disclosure of hedge basis adjustments under the portfolio layer method, and specifies how hedge basis adjustments should be considered when determining credit losses for the assets included in the closed portfolio. For public business entities, the amendments in ASU 2022-01 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted on any date on or after the issuance of ASU 2022-01 for any entity that has adopted the amendments in ASU 2017-12 for the corresponding period. The Company adopted this ASU on July 1, 2022 on a prospective basis; therefore, there was no impact to its consolidated financial statements upon adoption. |
Revenue Recognition | Service Charges on Deposit Accounts The Company earns fees from deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed at the point in the time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance. Gains/Losses on Sales of OREO The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. Gain/Losses on the sales of OREO falls within the scope of ASC 606, if the Company finances the transaction. Under ASC 606, if the Company finances the sale of OREO to the buyer, the Company is required to assess whether the buyer is committed to perform their obligations under the contract and whether the collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. Generally, the Company does not finance the sale of OREO properties. Interchange Income The Company earns interchange fees from debit and credit card holder transactions conducted through various payment networks. Interchange fees from cardholder transactions are recognized daily, concurrently with the transaction processing services provided by an outsourced technology solution. |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of Assets Acquired and Liabilities Assumed Through Merger at Fair Value | The Company recorded the assets acquired and liabilities assumed through the merger at fair value as summarized in the following table: As Recorded Fair Value Adjustments As Recorded (In Thousands) Cash paid for acquisition $ 9,830 Value of stock issued 45,133 Total purchase price $ 54,963 Cash and cash equivalents $ 14,126 $ — $ 14,126 Investment securities 4,000 (510) (a) 3,490 Loans receivable 537,589 (7,345) (b) 530,244 Allowance for loan losses (6,037) 6,037 (c) — Premises and equipment 7,698 (3,221) (d) 4,477 FHLB stock 3,345 — 3,345 Accrued interest receivable 1,701 — 1,701 Core deposit intangibles — 690 (e) 690 Bank owned life insurance 14,663 — 14,663 Deferred income taxes, net 1,729 2,152 (f) 3,881 Other assets 4,830 495 (g) 5,325 Total assets acquired $ 583,644 $ (1,702) $ 581,942 Deposits $ 458,392 $ 1,786 (h) $ 460,178 FHLB borrowings 62,900 — 62,900 Advance payments by borrowers for taxes 794 — 794 Other liabilities 810 (756) (i) 54 Total liabilities assumed $ 522,896 $ 1,030 $ 523,926 Net assets acquired $ 58,016 Bargain purchase gain $ (3,053) ________________________________________ Explanation of certain fair value related adjustments : (a) Represents the fair value adjustments on investment securities. (b) Represents the fair value adjustments on the net book value of loans, which includes an interest rate mark and credit mark adjustment and the reversal of deferred fees/costs and premiums. (c) Represents the elimination of MSB’s allowance for loan losses. (d) Represents the fair value adjustments to reflect the fair value of land and buildings and premises and equipment, which will be amortized on a straight-line basis over the estimated useful lives of the individual assets. (e) Represents the intangible assets recorded to reflect the fair value of core deposits. The core deposit asset was recorded as an identifiable intangible asset and will be amortized on an accelerated basis over the estimated average life of the deposit base. (f) Represents an adjustment to net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangible assets recorded. (g) Represents an adjustment to other assets acquired. (h) Represents fair value adjustments on time deposits, which will be treated as a reduction of interest expense over the remaining term of the time deposits. (i) Represents an adjustment to other liabilities assumed. |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost, Gross Unrealized Gains and Losses and Fair Values of Securities | The following tables present the amortized cost, gross unrealized gains and losses and estimated fair values for available for sale securities and the amortized cost, gross unrecognized gains and losses and estimated fair values for held to maturity securities as of the dates indicated. June 30, 2023 Amortized Gross Gross Allowance for Fair (In Thousands) Available for sale: Debt securities: Asset-backed securities $ 138,281 $ 4 $ 2,115 $ — $ 136,170 Collateralized loan obligations 381,915 268 5,187 — 376,996 Corporate bonds 159,666 — 24,648 — 135,018 Total debt securities 679,862 272 31,950 — 648,184 Mortgage-backed securities: Residential pass-through securities (1) 539,506 2 103,357 — 436,151 Commercial pass-through securities (1) 164,499 — 21,105 — 143,394 Total mortgage-backed securities 704,005 2 124,462 — 579,545 Total securities available for sale $ 1,383,867 $ 274 $ 156,412 $ — $ 1,227,729 ________________________________________ (1) Government-sponsored enterprises. June 30, 2022 Amortized Gross Gross Allowance for Fair (In Thousands) Available for sale: Debt securities: Obligations of state and political subdivisions $ 28,485 $ 39 $ 89 $ — $ 28,435 Asset-backed securities 169,506 — 2,949 — 166,557 Collateralized loan obligations 315,693 — 7,880 — 307,813 Corporate bonds 159,871 175 6,649 — 153,397 Total debt securities 673,555 214 17,567 — 656,202 Mortgage-backed securities: Collateralized mortgage obligations (1) 7,451 — 329 — 7,122 Residential pass-through securities (1) 595,337 45 80,624 — 514,758 Commercial pass-through securities (1) 185,781 1 19,771 — 166,011 Total mortgage-backed securities 788,569 46 100,724 — 687,891 Total securities available for sale $ 1,462,124 $ 260 $ 118,291 $ — $ 1,344,093 ________________________________________ (1) Government-sponsored enterprises. |
Amortized Cost, Gross Unrecognized Gains and Losses and Fair Values of Securities | June 30, 2023 Amortized Gross Gross Allowance for Fair (In Thousands) Held to maturity: Debt securities: Obligations of state and political subdivisions $ 16,051 $ — $ 321 $ — $ 15,730 Total debt securities 16,051 — 321 — 15,730 Mortgage-backed securities: Residential pass-through securities (1) 118,166 — 12,736 — 105,430 Commercial pass-through securities (1) 12,248 — 2,239 — 10,009 Total mortgage-backed securities 130,414 — 14,975 — 115,439 Total securities held to maturity $ 146,465 $ — $ 15,296 $ — $ 131,169 ________________________________________ (1) Government-sponsored enterprises. June 30, 2022 Amortized Gross Gross Allowance for Fair (In Thousands) Held to maturity: Debt securities: Obligations of state and political subdivisions $ 21,159 $ 44 $ 78 $ — $ 21,125 Total debt securities 21,159 44 78 — 21,125 Mortgage-backed securities: Residential pass-through securities (1) 84,851 — 8,587 — 76,264 Commercial pass-through securities (1) 12,281 — 1,552 — 10,729 Total mortgage-backed securities 97,132 — 10,139 — 86,993 Total securities held to maturity $ 118,291 $ 44 $ 10,217 $ — $ 108,118 ________________________________________ (1) Government-sponsored enterprises. |
Stratification by Contractual Maturity of Securities | Excluding the balances of mortgage-backed securities, the following tables present the amortized cost and estimated fair values of debt securities available for sale and held to maturity, by contractual maturity, at June 30, 2023: June 30, 2023 Amortized Fair (In Thousands) Available for sale debt securities: Due in one year or less $ — $ — Due after one year through five years 21,865 21,526 Due after five years through ten years 363,433 339,589 Due after ten years 294,564 287,069 Total $ 679,862 $ 648,184 June 30, 2023 Amortized Fair (In Thousands) Held to maturity debt securities: Due in one year or less $ 3,386 $ 3,361 Due after one year through five years 12,054 11,776 Due after five years through ten years 611 593 Due after ten years — — Total $ 16,051 $ 15,730 |
Sales of Securities Available for Sale | Sales of securities available for sale were as follows for the periods presented below: Year Ended June 30, 2023 2022 2021 (In Thousands) Available for sale securities sold: Proceeds from sales of securities $ 105,199 $ 100,336 $ 98,084 Gross realized gains $ — $ — $ 1,196 Gross realized losses (15,227) (565) (470) Net (loss) gain on sales of securities $ (15,227) $ (565) $ 726 |
Gains resulting from calls of securities available for sale | Gains resulting from calls of securities available for sale were as follows for the periods presented below: Year Ended June 30, 2023 2022 2021 (In Thousands) Available for sale securities called: Gross realized gains $ — $ 6 $ 41 Gross realized losses — — — Net gain on calls of securities $ — $ 6 $ 41 |
Schedule of Available for Sale Securities Pledged | The carrying value of securities pledged for borrowings at the FHLB and other institutions, and securities pledged for public funds and other purposes, were as follows as of the dates presented below: June 30, June 30, (In Thousands) Securities pledged: Pledged for borrowings at the FHLB of New York $ — $ 178,048 Pledged to secure public funds on deposit 201,239 357,841 Pledged for potential borrowings at the Federal Reserve Bank of New York 529,216 378,071 Total carrying value of securities pledged $ 730,455 $ 913,960 |
Schedule of Fair Values and Gross Unrealized and Unrecognized Losses on Investments | The following tables present the gross unrealized losses on securities and the estimated fair value of the related securities, aggregated by investment category and length of time that securities have been in a continuous unrealized loss position within the available for sale portfolio at June 30, 2023 and 2022: June 30, 2023 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Number of Securities Fair Unrealized (Dollars in Thousands) Securities Available for Sale: Asset-backed securities $ 33,833 $ 129 $ 98,828 $ 1,986 14 $ 132,661 $ 2,115 Collateralized loan obligations 46,903 135 294,813 5,052 26 341,716 5,187 Corporate bonds 25,511 1,354 109,507 23,294 31 135,018 24,648 Commercial pass-through securities 63,531 1,380 79,863 19,725 12 143,394 21,105 Residential pass-through securities 10,520 702 425,170 102,655 108 435,690 103,357 Total $ 180,298 $ 3,700 $ 1,008,181 $ 152,712 191 $ 1,188,479 $ 156,412 June 30, 2022 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Number of Securities Fair Unrealized (Dollars in Thousands) Securities Available for Sale: Obligations of state and political subdivisions $ 11,310 $ 89 $ — $ — 30 $ 11,310 $ 89 Asset-backed securities 161,303 2,928 5,254 21 15 166,557 2,949 Collateralized loan obligations 236,967 6,435 70,846 1,445 24 307,813 7,880 Corporate bonds 129,407 6,464 3,815 185 27 133,222 6,649 Collateralized mortgage obligations 7,122 329 — — 6 7,122 329 Commercial pass-through securities 63,045 3,194 102,817 16,577 21 165,862 19,771 Residential pass-through securities 237,928 26,566 274,197 54,058 106 512,125 80,624 Total $ 847,082 $ 46,005 $ 456,929 $ 72,286 229 $ 1,304,011 $ 118,291 The following table presents the gross unrecognized losses on securities and the estimated fair value of the related securities, aggregated by investment category and length of time that securities have been in a continuous unrecognized loss position within the held to maturity portfolio at June 30, 2023 and 2022: June 30, 2023 Less than 12 Months 12 Months or More Total Fair Unrecognized Fair Unrecognized Number of Securities Fair Unrecognized (Dollars in Thousands) Securities Held to Maturity: Obligations of state and political subdivisions $ 13,642 $ 268 $ 2,088 $ 53 32 $ 15,730 $ 321 Commercial pass-through securities — — 10,009 2,239 1 10,009 2,239 Residential pass-through securities 38,135 319 67,295 12,417 9 105,430 12,736 Total $ 51,777 $ 587 $ 79,392 $ 14,709 42 $ 131,169 $ 15,296 June 30, 2022 Less than 12 Months 12 Months or More Total Fair Unrecognized Fair Unrecognized Number of Securities Fair Unrecognized (Dollars in Thousands) Securities Held to Maturity: Obligations of state and political subdivisions $ 8,681 $ 78 $ — $ — 15 $ 8,681 $ 78 Commercial pass-through securities 10,729 1,552 — — 1 10,729 1,552 Residential pass-through securities 76,264 8,587 — — 8 76,264 8,587 Total $ 95,674 $ 10,217 $ — $ — 24 $ 95,674 $ 10,217 |
Loans Receivable (Tables)
Loans Receivable (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Loans Receivable | The following table sets forth the composition of the Company’s loan portfolio at June 30, 2023 and 2022: June 30, June 30, (In Thousands) Commercial loans: Multi-family mortgage $ 2,761,775 $ 2,409,090 Nonresidential mortgage 968,574 1,019,838 Commercial business 146,861 176,807 Construction 226,609 140,131 Total commercial loans 4,103,819 3,745,866 One- to four-family residential mortgage 1,700,559 1,645,816 Consumer loans: Home equity loans 43,549 42,028 Other consumer 2,549 2,866 Total consumer loans 46,098 44,894 Total loans 5,850,476 5,436,576 Unaccreted yield adjustments (1) (21,055) (18,731) Total loans receivable, net of yield adjustments $ 5,829,421 $ 5,417,845 ___________________________ (1) At June 30, 2023, included a fair value adjustment to the carrying amount of hedged one- to four-family residential mortgage loans. |
Contractual Payment Status of Past Loans Receivable | The following tables present the payment status of past due loans as of June 30, 2023 and 2022, by loan segment: Payment Status 30-59 Days 60-89 Days 90 Days and Over Total Past Due Current Total (In Thousands) Multi-family mortgage $ 2,958 $ — $ 10,756 $ 13,714 $ 2,748,061 $ 2,761,775 Nonresidential mortgage 792 — 8,233 9,025 959,549 968,574 Commercial business 528 16 236 780 146,081 146,861 Construction — — — — 226,609 226,609 One- to four-family residential mortgage 2,019 1,202 3,731 6,952 1,693,607 1,700,559 Home equity loans 25 — 50 75 43,474 43,549 Other consumer — — — — 2,549 2,549 Total loans $ 6,322 $ 1,218 $ 23,006 $ 30,546 $ 5,819,930 $ 5,850,476 Payment Status 30-59 Days 60-89 Days 90 Days and Over Total Past Due Current Total (In Thousands) Multi-family mortgage $ 3,148 $ 3,056 $ 7,788 $ 13,992 $ 2,395,098 $ 2,409,090 Nonresidential mortgage 4,026 — 18,132 22,158 997,680 1,019,838 Commercial business 98 57 155 310 176,497 176,807 Construction — — — — 140,131 140,131 One- to four-family residential mortgage 1,525 253 3,455 5,233 1,640,583 1,645,816 Home equity loans 28 35 — 63 41,965 42,028 Other consumer — — — — 2,866 2,866 Total loans $ 8,825 $ 3,401 $ 29,530 $ 41,756 $ 5,394,820 $ 5,436,576 |
Performance Status of Loans Receivable | The following tables present information relating to the Company’s nonperforming loans as of June 30, 2023 and 2022: Performance Status 90 Days and Over Past Due Accruing Nonaccrual Loans with Allowance for Nonaccrual Loans with no Allowance for Total Nonperforming Performing Total (In Thousands) Multi-family mortgage $ — $ 5,686 $ 13,428 $ 19,114 $ 2,742,661 $ 2,761,775 Nonresidential mortgage — 11,815 4,725 16,540 952,034 968,574 Commercial business — 71 181 252 146,609 146,861 Construction — — — — 226,609 226,609 One- to four-family residential mortgage — 1,640 5,031 6,671 1,693,888 1,700,559 Home equity loans — — 50 50 43,499 43,549 Other consumer — — — — 2,549 2,549 Total loans $ — $ 19,212 $ 23,415 $ 42,627 $ 5,807,849 $ 5,850,476 Performance Status 90 Days and Over Past Due Accruing Nonaccrual Loans with Allowance for Nonaccrual Loans with no Allowance for Total Nonperforming Performing Total (In Thousands) Multi-family mortgage $ — $ 8,367 $ 18,286 $ 26,653 $ 2,382,437 $ 2,409,090 Nonresidential mortgage — 12,602 19,292 31,894 987,944 1,019,838 Commercial business — 212 81 293 176,514 176,807 Construction — — 1,561 1,561 138,570 140,131 One- to four-family residential mortgage — 3,543 4,946 8,489 1,637,327 1,645,816 Home equity loans — 302 1,129 1,431 40,597 42,028 Other consumer — — — — 2,866 2,866 Total loans $ — $ 25,026 $ 45,295 $ 70,321 $ 5,366,255 $ 5,436,576 |
Troubled Debt Restructurings of Loans Receivable | The following tables present total TDRs at June 30, 2023 and 2022: June 30, 2023 Accrual Non-accrual Total # of Loans Amount # of Loans Amount # of Loans Amount (Dollars In Thousands) Commercial loans: Multi-family mortgage — $ — 2 $ 5,400 2 $ 5,400 Nonresidential mortgage 3 170 2 700 5 870 Commercial business 6 3,197 — — 6 3,197 Construction — — — — — — Total commercial loans 9 3,367 4 6,100 13 9,467 One- to four-family residential mortgage 39 6,752 4 774 43 7,526 Consumer loans: Home equity loans 6 368 — — 6 368 Total 54 $ 10,487 8 $ 6,874 62 $ 17,361 June 30, 2022 Accrual Non-accrual Total # of Loans Amount # of Loans Amount # of Loans Amount (Dollars In Thousands) Commercial loans: Multi-family mortgage — $ — 2 $ 5,626 2 $ 5,626 Nonresidential mortgage 4 389 2 1,565 6 1,954 Commercial business 5 3,631 2 82 7 3,713 Construction — — 1 1,561 1 1,561 Total commercial loans 9 4,020 7 8,834 16 12,854 One- to four-family residential mortgage 29 4,488 16 3,314 45 7,802 Consumer loans: Home equity loans 5 164 2 1,364 7 1,528 Total 43 $ 8,672 25 $ 13,512 68 $ 22,184 The following table presents information regarding TDRs that occurred during the years ended June 30, 2023 and 2022: Year Ended June 30, 2023 Year Ended June 30, 2022 # of Loans Pre-modification Post-modification # of Loans Pre-modification Post-modification (Dollars In Thousands) Multi-family mortgage — $ — $ — 2 $ 12,091 $ 12,073 Nonresidential mortgage 1 313 345 — — — Commercial business 2 74 74 — — — One- to four-family residential mortgage 2 708 705 13 3,812 3,924 Home equity loans 1 35 35 2 1,477 1,477 Total 6 $ 1,130 $ 1,159 17 $ 17,380 $ 17,474 |
Carrying Value of Collateral Dependent Individually Analyzed Loans | The following table presents the carrying value and related allowance of collateral dependent individually analyzed loans at the dates indicated: June 30, 2023 June 30, 2022 Carrying Value Related Allowance Carrying Value Related Allowance (In Thousands) Commercial loans: Multi-family mortgage $ 19,114 $ 326 $ 26,653 $ 849 Nonresidential mortgage (1) 16,207 3,001 30,733 2,696 Construction — — 1,561 — Total commercial loans 35,321 3,327 58,947 3,545 One- to four-family residential mortgage (2) 2,875 — 4,305 77 Consumer loans: Home equity loans (2) — — 35 — Total $ 38,196 $ 3,327 $ 63,287 $ 3,622 ________________________________________ (1) Secured by income-producing nonresidential property. (2) Secured by one- to four-family residential properties. |
Credit-Rating Classification of Loans Receivable | The following table presents the risk category of loans as of June 30, 2023 by loan segment and vintage year: Term Loans by Origination Year for Fiscal Years ended June 30, Revolving Loans 2023 2022 2021 2020 2018 Prior Total (In Thousands) Multi-family mortgage: Pass $ 603,260 $ 954,554 $ 213,482 $ 198,969 $ 226,929 $ 510,485 $ — $ 2,707,679 Special Mention — — — — 6,006 6,647 — 12,653 Substandard — — 9,809 — 9,432 22,202 — 41,443 Doubtful — — — — — — — — Total multi-family mortgage 603,260 954,554 223,291 198,969 242,367 539,334 — 2,761,775 Nonresidential mortgage: Pass 109,725 220,443 83,032 51,933 59,197 414,742 6,000 945,072 Special Mention — — — — — 378 — 378 Substandard — — 708 — 919 21,497 — 23,124 Doubtful — — — — — — — — Total nonresidential mortgage 109,725 220,443 83,740 51,933 60,116 436,617 6,000 968,574 Commercial business: Pass 10,364 28,644 25,304 7,875 1,731 8,776 59,031 141,725 Special Mention — — — 47 176 2,456 371 3,050 Substandard — — — 395 60 1,385 246 2,086 Doubtful — — — — — — — — Total commercial business 10,364 28,644 25,304 8,317 1,967 12,617 59,648 146,861 Construction loans: Pass 25,070 36,389 143,086 12,275 2,961 1,093 5,735 226,609 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total construction loans 25,070 36,389 143,086 12,275 2,961 1,093 5,735 226,609 Residential mortgage: Pass 195,521 454,504 491,460 80,431 45,741 422,472 — 1,690,129 Special Mention — — — — 1,168 425 — 1,593 Substandard — 542 — — 80 8,215 — 8,837 Doubtful — — — — — — — — Total residential mortgage 195,521 455,046 491,460 80,431 46,989 431,112 — 1,700,559 Home equity loans: Pass 7,682 2,567 607 1,264 2,478 7,280 21,384 43,262 Special Mention — — — — — — — — Substandard — — — — — 287 — 287 Doubtful — — — — — — — — Total home equity loans 7,682 2,567 607 1,264 2,478 7,567 21,384 43,549 Other consumer loans Pass 367 247 110 494 302 912 42 2,474 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — 75 75 Other consumer loans 367 247 110 494 302 912 117 2,549 Total loans $ 951,989 $ 1,697,890 $ 967,598 $ 353,683 $ 357,180 $ 1,429,252 $ 92,884 $ 5,850,476 The following table presents the risk category of loans as of June 30, 2022 by loan segment and vintage year: Term Loans by Origination Year for Fiscal Years ended June 30, Revolving Loans 2022 2021 2020 2018 2017 Prior Total (In Thousands) Multi-family mortgage: Pass $ 963,263 $ 250,385 $ 211,101 $ 264,174 $ 248,058 $ 438,642 $ — $ 2,375,623 Special Mention — — — — — 6,814 — 6,814 Substandard — — — 9,821 5,935 10,897 — 26,653 Doubtful — — — — — — — — Total multi-family mortgage 963,263 250,385 211,101 273,995 253,993 456,353 — 2,409,090 Nonresidential mortgage: Pass 231,777 87,309 53,983 60,714 49,285 491,849 6,052 980,969 Special Mention — — — — — 591 — 591 Substandard — 720 — 933 4,026 32,599 — 38,278 Doubtful — — — — — — — — Total nonresidential mortgage 231,777 88,029 53,983 61,647 53,311 525,039 6,052 1,019,838 Commercial business: Pass 46,888 38,791 12,155 3,581 4,861 6,455 58,662 171,393 Special Mention — — 62 186 2,173 873 215 3,509 Substandard — 38 319 — 1,347 61 58 1,823 Doubtful — — — — — 80 2 82 Total commercial business 46,888 38,829 12,536 3,767 8,381 7,469 58,937 176,807 Construction loans: Pass 16,407 95,526 10,337 3,039 6,509 1,017 5,735 138,570 Special Mention — — — — — — — — Substandard — — — — — 1,561 — 1,561 Doubtful — — — — — — — — Total construction loans 16,407 95,526 10,337 3,039 6,509 2,578 5,735 140,131 Residential mortgage: Pass 472,160 524,163 88,645 49,316 55,139 442,517 374 1,632,314 Special Mention — — — 1,205 — 621 — 1,826 Substandard — — — 83 — 11,593 — 11,676 Doubtful — — — — — — — — Total residential mortgage 472,160 524,163 88,645 50,604 55,139 454,731 374 1,645,816 Home equity loans: Pass 3,197 692 1,681 3,117 2,027 7,321 22,334 40,369 Special Mention — — — — — — — — Substandard — — — 120 — 1,539 — 1,659 Doubtful — — — — — — — — Total home equity loans 3,197 692 1,681 3,237 2,027 8,860 22,334 42,028 Other consumer loans Pass 442 308 471 375 258 895 34 2,783 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — 83 83 Other consumer loans 442 308 471 375 258 895 117 2,866 Total loans $ 1,734,134 $ 997,932 $ 378,754 $ 396,664 $ 379,618 $ 1,455,925 $ 93,549 $ 5,436,576 |
Schedule Of Purchase Credit Deterioration Loan Carrying Amount | The carrying amount of those loans is as follows: At July 10, 2020 (In Thousands) Purchase price of PCD loans at acquisition $ 65,347 Allowance for credit losses at acquisition 3,901 Non-credit discount at acquisition 167 Par value of acquired PCD loans at acquisition $ 69,415 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Allowance for Credit Losses and Balance of Loans Receivable | The following tables present the balance of the allowance for credit losses (“ACL”) at June 30, 2023 and 2022. The balance of the ACL is based on the CECL methodology, as noted above. The tables identify the valuation allowances attributable to specifically identified impairments on individually analyzed loans, including those acquired with deteriorated credit quality, as well as valuation allowances for impairments on loans collectively evaluated. The tables include the underlying balance of loans receivable applicable to each category as of those dates. Allowance for Credit Losses Loans Loans Loans individually Loans collectively Total allowance for credit losses (In Thousands) Multi-family mortgage $ — $ — $ 326 $ 26,036 $ 26,362 Nonresidential mortgage — 70 3,001 5,882 8,953 Commercial business — 9 20 1,411 1,440 Construction — — — 1,336 1,336 One- to four-family residential mortgage 3 132 70 10,032 10,237 Home equity loans — — — 338 338 Other consumer — — — 68 68 Total loans $ 3 $ 211 $ 3,417 $ 45,103 $ 48,734 Balance of Loans Receivable Loans Loans Loans individually Loans collectively Total loans (In Thousands) Multi-family mortgage $ — $ — $ 19,114 $ 2,742,661 $ 2,761,775 Nonresidential mortgage 333 3,562 16,207 948,472 968,574 Commercial business — 4,237 252 142,372 146,861 Construction — 5,735 — 220,874 226,609 One- to four-family residential mortgage 570 4,433 6,101 1,689,455 1,700,559 Home equity loans 25 — 25 43,499 43,549 Other consumer — — — 2,549 2,549 Total loans $ 928 $ 17,967 $ 41,699 $ 5,789,882 $ 5,850,476 Unaccreted yield adjustments (21,055) Loans receivable, net of yield adjustments $ 5,829,421 Allowance for Credit Losses Loans Loans Loans individually Loans collectively Total allowance for credit losses (In Thousands) Multi-family mortgage $ — $ — $ 849 $ 24,472 $ 25,321 Nonresidential mortgage — 73 2,696 7,821 10,590 Commercial business — 9 16 1,767 1,792 Construction — — — 1,486 1,486 One- to four-family residential mortgage — 229 148 7,163 7,540 Home equity loans 26 — — 219 245 Other consumer — — — 84 84 Total loans $ 26 $ 311 $ 3,709 $ 43,012 $ 47,058 Balance of Loans Receivable Loans Loans Loans individually Loans collectively Total loans (In Thousands) Multi-family mortgage $ — $ — $ 26,653 $ 2,382,437 $ 2,409,090 Nonresidential mortgage 377 5,033 31,517 982,911 1,019,838 Commercial business — 1,267 293 175,247 176,807 Construction — 5,735 1,561 132,835 140,131 One- to four-family residential mortgage 87 6,460 8,402 1,630,867 1,645,816 Home equity loans 329 58 1,102 40,539 42,028 Other consumer — — — 2,866 2,866 Total loans $ 793 $ 18,553 $ 69,528 $ 5,347,702 $ 5,436,576 Unaccreted yield adjustments (18,731) Loans receivable, net of yield adjustments $ 5,417,845 The following tables present the activity in the ACL on loans for the years ended June 30, 2023, 2022 and 2021: Changes in the Allowance for Credit Losses Balance at Charge-offs Recoveries Provision for Balance at (In Thousands) Multi-family mortgage $ 25,321 $ (493) $ — $ 1,534 $ 26,362 Nonresidential mortgage 10,590 (39) — (1,598) 8,953 Commercial business 1,792 (364) 29 (17) 1,440 Construction 1,486 — — (150) 1,336 One- to four-family residential mortgage 7,540 — 2 2,695 10,237 Home equity loans 245 — — 93 338 Other consumer 84 — 55 (71) 68 Total loans $ 47,058 $ (896) $ 86 $ 2,486 $ 48,734 Changes in the Allowance for Credit Losses Balance at Charge-offs Recoveries (Reversal of) Balance at (In Thousands) Multi-family mortgage $ 28,450 $ (1,896) $ — $ (1,233) $ 25,321 Nonresidential mortgage 16,243 (2,646) 812 (3,819) 10,590 Commercial business 2,086 (193) 160 (261) 1,792 Construction 1,170 — — 316 1,486 One- to four-family residential mortgage 9,747 — 147 (2,354) 7,540 Home equity loans 433 — 27 (215) 245 Other consumer 36 (2) 2 48 84 Total loans $ 58,165 $ (4,737) $ 1,148 $ (7,518) $ 47,058 Changes in the Allowance for Loan Losses Balance at Impact of adopting Charge-offs Recoveries Initial allowance on PCD loans (Reversal of) Balance at (In Thousands) Multi-family mortgage $ 20,916 $ 8,408 $ — $ — $ 250 $ (1,124) $ 28,450 Nonresidential mortgage 8,763 2,390 (80) — 1,720 3,450 16,243 Commercial business 1,926 (421) (1,446) 17 1,007 1,003 2,086 Construction 236 80 — — 99 755 1,170 One- to four-family residential mortgage 4,860 9,106 (13) 4 720 (4,930) 9,747 Home equity loans 568 92 (32) — 105 (300) 433 Other consumer 58 (15) (41) 9 — 25 36 Total loans $ 37,327 $ 19,640 $ (1,612) $ 30 $ 3,901 $ (1,121) $ 58,165 |
Allowance for Credit Losses on Financing Receivables Off Balance Sheet Commitments | The following table presents the activity in the ACL on off balance sheet commitments recorded in other non-interest expense for the years ended June 30, 2023, 2022 and 2021: Year Ended June 30, 2023 2022 2021 (In Thousands) Balance at beginning of the period $ 1,041 $ 1,708 $ — Impact of adopting Topic 326 (1) — — 536 (Reversal of) provision for credit losses (300) (667) 1,172 Balance at end of the period $ 741 $ 1,041 $ 1,708 ________________________________________ (1) Adoption of CECL accounting standard effective July 1, 2020. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Commitments for Operating Leases | A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability at June 30, 2023 and 2022 is as follows: June 30, 2023 2022 (In Thousands) Less than one year $ 3,445 $ 3,614 After one year but within two years 3,183 3,187 After two years but within three years 3,071 2,905 After three years but within four years 2,963 2,817 After four years but within five years 1,941 2,707 Greater than five years 4,305 5,956 Total undiscounted cash flows 18,908 21,186 Less: discount on cash flows (1,687) (2,001) Total lease liability $ 17,221 $ 19,185 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | June 30, 2023 2022 (In Thousands) Land $ 11,773 $ 12,192 Buildings and improvements 45,886 48,156 Leasehold improvements 12,029 11,336 Furnishings and equipment 29,720 29,431 Construction in progress 71 426 99,479 101,541 Less accumulated depreciation and amortization 51,170 48,260 Total premises and equipment $ 48,309 $ 53,281 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | Goodwill Core Deposit Intangibles (In Thousands) Balance at June 30, 2020 $ 210,895 $ 3,995 Acquisition of MSB Financial Corp. — 690 Amortization — (980) Balance at June 30, 2021 210,895 3,705 Amortization — (685) Balance at June 30, 2022 210,895 3,020 Amortization — (563) Balance at June 30, 2023 $ 210,895 $ 2,457 |
Scheduled Amortization of Core Deposit Intangibles | Scheduled amortization of core deposit intangibles for each of the next five years and thereafter is as follows: Year Ending Core Deposit Intangible Amortization (In Thousands) 2024 $ 526 2025 495 2026 467 2027 441 2028 353 Thereafter 175 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Deposits [Abstract] | |
Schedule of Deposits | Deposits at June 30, 2023 and 2022 are summarized as follows: June 30, 2023 2022 Balance Weighted Balance Weighted (Dollars in Thousands) Non-interest-bearing demand $ 609,999 0.00 % $ 653,899 0.00 % Interest-bearing demand 2,252,912 2.43 2,265,597 0.56 Savings 748,721 0.48 1,053,198 0.17 Certificates of deposits 2,017,551 3.02 1,889,562 0.80 Total deposits $ 5,629,183 2.12 % $ 5,862,256 0.50 % Brokered deposits at June 30, 2023 and 2022 are summarized as follows: June 30, 2023 2022 Balance Weighted Balance Weighted (Dollars in Thousands) Certificates of deposits $ 635,314 4.28 % $ 761,862 1.14 % Total brokered deposits $ 635,314 4.28 % $ 761,862 1.14 % |
Certificates of Deposit by Maturity | A summary of certificates of deposit by maturity at June 30, 2023 follows: June 30, 2023 (In Thousands) One year or less $ 1,896,132 After one year to two years 71,317 After two years to three years 23,155 After three years to four years 13,775 After four years to five years 7,590 After five years 5,582 Total certificates of deposit $ 2,017,551 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | Borrowings at June 30, 2023 and 2022 consisted of the following: June 30, June 30, (In Thousands) FHLB advances $ 1,281,812 $ 651,337 Overnight borrowings (1) 225,000 250,000 Total borrowings $ 1,506,812 $ 901,337 ________________________________________ |
Schedule of Fixed Rate Advances from FHLB | Fixed-rate advances from FHLB of New York mature as follows: June 30, 2023 June 30, 2022 Balance Weighted Balance Weighted (Dollars in Thousands) By remaining period to maturity: Less than one year $ 972,500 5.36 % $ 520,000 2.04 % One to two years 103,500 2.68 22,500 2.63 Two to three years 6,500 2.82 103,500 2.68 Three to four years — — 6,500 2.82 Four to five years 200,000 3.98 — — Greater than five years — — — — Total advances 1,282,500 4.92 % 652,500 2.17 % Unamortized fair value adjustments (688) (1,163) Total advances, net of fair value adjustments $ 1,281,812 $ 651,337 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivative Financial Instruments as well as Their Classification on Statement of Financial Condition | The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the Statement of Financial Condition as of June 30, 2023 and 2022: June 30, 2023 Asset Derivatives Liability Derivatives Location Fair Value Location Fair Value (In Thousands) Derivatives designated as hedging instruments: Interest rate contracts Other assets $ 71,624 Other liabilities $ — Total $ 71,624 $ — June 30, 2022 Asset Derivatives Liability Derivatives Location Fair Value Location Fair Value (In Thousands) Derivatives designated as hedging instruments: Interest rate contracts Other assets $ 41,223 Other liabilities $ — Total $ 41,223 $ — As of June 30, 2023, the following amounts were recorded on the Statement of Financial Condition related to cumulative basis adjustment for fair value hedges. There were no fair value hedges at June 30, 2022: June 30, 2023 Loans receivable: Carrying amount of the hedged assets $ 663,563 Fair value hedging adjustment included in the carrying amount of the hedged assets (11,437) ________________________________________ (1) This amount includes the amortized cost basis of the closed portfolios of loans receivable used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolios anticipated to be outstanding for the designated hedge period. At June 30, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $1.10 billion. |
Pre-tax Effects of Derivative Instruments on Consolidated Statements of Income | The table below presents the pre-tax effects of the Company’s derivative instruments designated as cash flow hedges on the Consolidated Statements of Income for the years ended June 30, 2023, 2022 and 2021: Year Ended June 30, 2023 2022 2021 (In Thousands) Amount of gain recognized in other comprehensive income $ 39,002 $ 35,844 $ 10,825 Amount of gain (loss) reclassified from accumulated other comprehensive income to interest expense 20,393 (4,273) (8,281) |
Derivative Instruments, Gain (Loss) | The table below presents the effects of the Company’s derivative instruments designated as fair value hedges on the Consolidated Statements of Income for the year ended June 30, 2023. There were no fair value hedges for the years ended June 30, 2022 and 2021: Year Ended June 30, 2023 (In Thousands) Loss on hedged items recorded in interest income on loans $ (11,437) Gain on hedges recorded in interest income on loans 14,563 |
Offsetting Derivatives | The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives in the Consolidated Statement of Financial Condition as of June 30, 2023 and 2022, respectively. The net amounts presented for derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Consolidated Statement of Financial Condition. June 30, 2023 Gross Amounts Not Offset Gross Amount Recognized Gross Amounts Offset Net Amounts Presented Financial Instruments Cash Collateral Received (Posted) Net Amount (In Thousands) Assets: Interest rate contracts $ 72,418 $ (794) $ 71,624 $ — $ — $ 71,624 Total $ 72,418 $ (794) $ 71,624 $ — $ — $ 71,624 Liabilities: Interest rate contracts $ 794 $ (794) $ — $ — $ — $ — Total $ 794 $ (794) $ — $ — $ — $ — June 30, 2022 Gross Amounts Not Offset Gross Amount Recognized Gross Amounts Offset Net Amounts Presented Financial Instruments Cash Collateral Received (Posted) Net Amount (In Thousands) Assets: Interest rate contracts $ 41,223 $ — $ 41,223 $ — $ — $ 41,223 Total $ 41,223 $ — $ 41,223 $ — $ — $ 41,223 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Expense | The following table sets forth the aggregate net periodic benefit expense for the Bank’s Benefit Equalization Plan, Postretirement Welfare Plan, Directors’ Consultation and Retirement Plan, Atlas Bank Retirement Income Plan and Supplemental Executive Retirement Plan: Year Ended June 30, Affected Line Item in the Consolidated Statements of Income 2023 2022 2021 (In Thousands) Service cost $ 281 $ 547 $ 106 Salaries and employee benefits Interest cost 369 279 262 Other expense (Accretion) amortization of unrecognized (gain) loss (24) 80 83 Other expense Expected return on assets (99) (110) (113) Other expense Net periodic benefit cost $ 527 $ 796 $ 338 Years Ended June 30, 2023 2022 2021 (In Thousands) Net periodic benefit cost: Interest cost $ 78 $ 62 $ 61 Expected return on assets (99) (110) (113) Amortization of net loss 28 21 22 Total expense (benefit) $ 7 $ (27) $ (30) Valuation assumptions Discount rate 4.50 % 3.00 % 2.75 % Long term rate of return on plan assets 3.50 % 3.50 % 3.50 % Years Ended June 30, 2023 2022 2021 (In Thousands) Net periodic benefit cost: Interest cost $ 111 $ 86 $ 85 Amortization of net actuarial loss 46 71 75 Total expense $ 157 $ 157 $ 160 Valuation assumptions Discount rate 4.50 % 3.00 % 2.75 % Salary increase rate N/A N/A N/A Years Ended June 30, 2023 2022 2021 (In Thousands) Net periodic benefit cost: Service cost $ 95 $ 116 $ 106 Interest cost 48 33 27 Amortization of net actuarial gain (28) (12) (14) Total expense $ 115 $ 137 $ 119 Valuation assumptions Discount rate 4.50 % 3.00 % 2.75 % Salary increase rate 3.25 % 3.25 % 3.25 % Years Ended June 30, 2023 2022 2021 (In Thousands) Net periodic benefit cost: Interest cost $ 117 $ 92 $ 89 Amortization of net actuarial gain (69) — — Total expense $ 48 $ 92 $ 89 Valuation assumptions Discount rate 4.50 % 3.00 % 2.75 % Salary increase rate N/A N/A N/A Year Ended June 30, 2023 2022 (In Thousands) Net periodic benefit cost: Service cost $ 185 $ 431 Interest cost 11 6 Total expense $ 196 $ 437 Valuation assumptions Discount rate 3.00 % 3.00 % Salary increase rate 4.00 % 4.00 % |
Employee Stock Ownership Plan (ESOP) Disclosures | At June 30, 2023 and 2022, the ESOP shares were as follows: June 30, 2023 2022 (In Thousands) Shares purchased by ESOP 6,022 6,022 Less: Shares allocated 3,564 3,363 Less: Shares committed to be released 100 100 Remaining unearned ESOP shares 2,358 2,559 Fair value of unearned ESOP shares $ 16,624 $ 28,430 |
Schedule of Net Funded Status | The following tables set forth the ABRIP’s funded status and net periodic benefit cost: June 30, 2023 2022 (In Thousands) Change in benefit obligation: Projected benefit obligation - beginning $ 1,816 $ 2,149 Interest cost 78 62 Actuarial gain (46) (247) Benefit payments (148) (148) Projected benefit obligation - ending $ 1,700 $ 1,816 Change in plan assets: Fair value of assets - beginning $ 2,907 $ 3,220 Actual return on assets (42) (165) Benefit payments (148) (148) Fair value of assets - ending $ 2,717 $ 2,907 Reconciliation of funded status: Projected benefit obligation $ (1,700) $ (1,816) Fair value of assets 2,717 2,907 Funded status included in other assets $ 1,017 $ 1,091 Accumulated benefit obligation $ (1,700) $ (1,816) Valuation assumptions Discount rate 5.00 % 4.50 % Salary increase rate N/A N/A The following tables set forth the BEP’s funded status and components of net periodic benefit cost: June 30, 2023 2022 (In Thousands) Change in benefit obligation: Projected benefit obligation - beginning $ 2,592 $ 2,999 Interest cost 111 86 Actuarial gain (34) (252) Benefit payments (244) (241) Projected benefit obligation - ending $ 2,425 $ 2,592 Change in plan assets: Fair value of assets - beginning $ — $ — Contributions 244 241 Benefit payments (244) (241) Fair value of assets - ending $ — $ — Reconciliation of funded status: Accumulated benefit obligation $ (2,425) $ (2,592) Projected benefit obligation $ (2,425) $ (2,592) Fair value of assets — — Funded status included in other liabilities $ (2,425) $ (2,592) Valuation assumptions Discount rate 5.00 % 4.50 % Salary increase rate N/A N/A The following tables set forth the accrued accumulated postretirement benefit obligation and the net periodic benefit cost: June 30, 2023 2022 (In Thousands) Change in benefit obligation: Projected benefit obligation - beginning $ 1,085 $ 1,108 Service cost 95 116 Interest cost 48 33 Actuarial gain (214) (160) Premiums/claims paid (13) (12) Plan amendments 35 — Projected benefit obligation - ending $ 1,036 $ 1,085 Change in plan assets: Fair value of assets - beginning $ — $ — Contributions 13 12 Premiums/claims paid (13) (12) Fair value of assets - ending $ — $ — Reconciliation of funded status: Projected benefit obligation $ (1,036) $ (1,085) Fair value of assets — — Funded status included in other liabilities $ (1,036) $ (1,085) Valuation assumptions Discount rate 5.00 % 4.50 % Salary increase rate 3.25 % 3.25 % The following table sets forth the DCRP’s funded status and components of net periodic cost: June 30, 2023 2022 (In Thousands) Change in benefit obligation: Projected benefit obligation - beginning $ 2,646 $ 3,116 Interest cost 117 92 Actuarial gain (194) (513) Benefit payments (49) (49) Projected benefit obligation - ending $ 2,520 $ 2,646 Change in plan assets: Fair value of assets - beginning $ — $ — Contributions 49 49 Benefit payments (49) (49) Fair value of assets - ending $ — $ — Reconciliation of funded status: Accumulated benefit obligation $ (2,520) $ (2,646) Projected benefit obligation $ (2,520) $ (2,646) Fair value of assets — — Funded status included in other liabilities $ (2,520) $ (2,646) Valuation assumptions Discount rate 5.00 % 4.50 % Salary increase rate N/A N/A The following tables set forth the SERP’s funded status and net periodic benefit cost: June 30, 2023 2022 (In Thousands) Change in benefit obligation: Projected benefit obligation - beginning $ 437 $ — Service cost 185 431 Interest cost 11 6 Projected benefit obligation - ending $ 633 $ 437 Reconciliation of funded status: Projected benefit obligation $ (633) $ (437) Fair value of assets — — Funded status included in other liabilities $ (633) $ (437) Valuation assumptions Discount rate 3.00 % 3.00 % Salary increase rate N/A 4.00 % |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Benefit Payments (In Thousands) Years ending June 30: 2024 $ 146 2025 147 2026 148 2027 145 2028 140 2029-2033 637 The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Benefit Payments (In Thousands) Years ending June 30: 2024 $ 241 2025 237 2026 232 2027 227 2028 221 2029-2033 999 The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Benefit Payments (In Thousands) Years ending June 30: 2024 $ 54 2025 62 2026 74 2027 82 2028 99 2029-2033 580 The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Benefit Payments (In Thousands) Years ending June 30: 2024 $ 72 2025 118 2026 138 2027 157 2028 176 2029-2033 1,301 The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Benefit Payments (In Thousands) Years ending June 30: 2024 $ — 2025 — 2026 — 2027 — 2028 — 2029-2033 633 |
Schedule of Fair Value of ABRIP's Assets | The fair value of the ABRIP’s assets at June 30, 2023 and 2022 by asset category (see Note 18 for the definitions of levels), are as follows: June 30, 2023 Quoted Prices Significant Significant Total (In Thousands) Prudential Guaranteed Deposit Fund $ — $ 2,717 $ — $ 2,717 June 30, 2022 Quoted Prices Significant Significant Total (In Thousands) Prudential Guaranteed Deposit Fund $ — $ 2,907 $ — $ 2,907 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-Based Compensation Expense | The following table presents stock-based compensation expense for the years ended June 30, 2023, 2022 and 2021: Years Ended June 30, 2023 2022 2021 Stock option expense $ 153 $ 849 $ 1,823 Restricted stock expense 725 2,049 3,850 Restricted stock unit expense 2,058 896 — Total stock-based compensation expense $ 2,936 $ 3,794 $ 5,673 |
Summary of the Company's Stock Option Activity | The following is a summary of the Company’s stock option activity and related information for its option plans for the year ended June 30, 2023: Options Weighted Weighted Aggregate (In Thousands) (In Thousands) Outstanding at June 30, 2022 3,253 $ 14.97 4.5 years $ 61 Granted — — — Exercised — — — Forfeited (269) 14.76 Outstanding at June 30, 2023 2,984 $ 14.99 3.5 years $ — Exercisable at June 30, 2023 2,924 $ 15.03 3.5 years $ — |
Summary of the Status of the Company's Non-vested Restricted Share Awards | The following is a summary of the Company’s restricted share award activity for the year ended June 30, 2023: Vesting Contingent on Service Conditions Vesting Contingent on Performance and Service Conditions Restricted Weighted Restricted Weighted (In Thousands) (In Thousands) Non-vested at June 30, 2022 75 $ 13.34 61 $ 13.33 Granted — — — — Vested (32) 13.38 (25) 13.38 Forfeited — — — — Non-vested at June 30, 2023 43 $ 13.31 36 $ 13.30 The following is a summary of the Company’s RSU activity for the year ended June 30, 2023: Vesting Contingent on Service Conditions Vesting Contingent on Performance and Service Conditions Restricted Weighted Restricted Weighted (In Thousands) (In Thousands) Non-vested at June 30, 2022 182 $ 13.68 70 $ 13.68 Granted 238 11.85 85 11.85 Vested (61) 13.68 — — Forfeited (17) 12.73 — — Non-vested at June 30, 2023 342 $ 12.45 155 $ 12.68 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Summary of Regulatory Capital Levels | The following tables present information regarding the Bank’s regulatory capital levels at June 30, 2023 and 2022: At June 30, 2023 Actual For Capital To Be Well Capitalized Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) Total capital (to risk-weighted assets) $ 695,417 13.31 % $ 417,853 8.00 % $ 522,316 10.00 % Tier 1 capital (to risk-weighted assets) 659,783 12.63 % 313,389 6.00 % 417,853 8.00 % Common equity tier 1 capital (to risk-weighted assets) 659,783 12.63 % 235,042 4.50 % 339,505 6.50 % Tier 1 capital (to adjusted total assets) 659,783 8.15 % 323,922 4.00 % 404,902 5.00 % At June 30, 2022 Actual For Capital To Be Well Capitalized Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) Total capital (to risk-weighted assets) $ 672,274 13.10 % $ 410,429 8.00 % $ 513,036 10.00 % Tier 1 capital (to risk-weighted assets) 642,336 12.52 % 307,822 6.00 % 410,429 8.00 % Common equity tier 1 capital (to risk-weighted assets) 642,336 12.52 % 230,866 4.50 % 333,473 6.50 % Tier 1 capital (to adjusted total assets) 642,336 8.70 % 295,163 4.00 % 368,954 5.00 % The following tables present information regarding the consolidated Company’s regulatory capital levels at June 30, 2023 and 2022: At June 30, 2023 Actual For Capital Amount Ratio Amount Ratio (Dollars in Thousands) Total capital (to risk-weighted assets) $ 770,621 14.75 % $ 418,015 8.00 % Tier 1 capital (to risk-weighted assets) 734,987 14.07 % 313,511 6.00 % Common equity tier 1 capital (to risk-weighted assets) 734,987 14.07 % 235,133 4.50 % Tier 1 capital (to adjusted total assets) 734,987 9.07 % 324,170 4.00 % At June 30, 2022 Actual For Capital Amount Ratio Amount Ratio (Dollars in Thousands) Total capital (to risk-weighted assets) $ 778,253 15.17 % $ 410,515 8.00 % Tier 1 capital (to risk-weighted assets) 748,315 14.58 % 307,886 6.00 % Common equity tier 1 capital (to risk-weighted assets) 748,315 14.58 % 230,914 4.50 % Tier 1 capital (to adjusted total assets) 748,315 10.14 % 295,290 4.00 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Taxes | The components of income taxes are as follows: Years Ended June 30, 2023 2022 2021 (In Thousands) Current income tax expense: Federal $ 6,145 $ 12,720 $ 12,051 State 2,634 7,057 5,058 8,779 19,777 17,109 Deferred income tax expense: Federal 1,902 2,895 2,673 State 887 2,128 2,016 2,789 5,023 4,689 Valuation allowance — — (535) Total income tax expense $ 11,568 $ 24,800 $ 21,263 |
Schedule of Effective Income Tax Rate Reconciliation | The following table presents a reconciliation between the reported income taxes for the periods presented and the income taxes which would be computed by applying the federal income tax rates applicable to those periods. The federal income tax rate of 21% was applicable for the years ended June 30, 2023, 2022 and 2021. Years Ended June 30, 2023 2022 2021 (Dollars In Thousands) Income before income taxes $ 52,379 $ 92,347 $ 84,496 Statutory federal tax rate 21 % 21 % 21 % Federal income tax expense at statutory rate $ 11,000 $ 19,393 $ 17,744 (Reduction) increases in income taxes resulting from: Tax exempt interest (143) (266) (345) State tax, net of federal tax effect 2,781 7,257 5,464 Incentive stock options compensation expense 12 45 85 Income from bank-owned life insurance (1,840) (1,281) (1,255) Disqualifying disposition on incentive stock options — — (33) Non-deductible merger-related expenses — — 49 Bargain purchase gain — — (641) Other items, net (242) (348) 730 11,568 24,800 21,798 Valuation allowance — — (535) Total income tax expense $ 11,568 $ 24,800 $ 21,263 Effective income tax rate 22.09 % 26.86 % 25.16 % |
Schedule of Deferred Income Tax Assets and Liabilities | The tax effects of existing temporary differences that give rise to deferred income tax assets and liabilities are as follows: June 30, 2023 2022 (In Thousands) Deferred income tax assets: Purchase accounting $ 4,098 $ 6,327 Accumulated other comprehensive income: Defined benefit plans — 26 Unrealized loss on securities available for sale 45,018 34,104 Allowance for credit losses 14,211 13,809 Benefit plans 2,603 2,494 Compensation 1,440 2,023 Stock-based compensation 3,161 2,834 Uncollected interest 1,313 1,705 Depreciation 2,335 1,931 Net operating loss carryover 2 4 Capital loss carryforward 191 141 Other items 839 844 75,211 66,242 Deferred income tax liabilities: Deferred loan fees and costs 1,710 838 Accumulated other comprehensive income: Derivatives 16,940 11,542 Defined benefit plans 78 — Goodwill 4,510 4,510 Other items — 2 23,238 16,892 Net deferred income tax asset $ 51,973 $ 49,350 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Those assets and liabilities measured at fair value on a recurring basis are summarized below: June 30, 2023 Quoted Significant Significant Total (In Thousands) Assets: Debt securities available for sale: Asset-backed securities $ — $ 136,170 $ — $ 136,170 Collateralized loan obligations — 376,996 — 376,996 Corporate bonds — 135,018 — 135,018 Total debt securities — 648,184 — 648,184 Mortgage-backed securities available for sale: Residential pass-through securities — 436,151 — 436,151 Commercial pass-through securities — 143,394 — 143,394 Total mortgage-backed securities — 579,545 — 579,545 Total securities available for sale $ — $ 1,227,729 $ — $ 1,227,729 Interest rate contracts $ — $ 71,624 $ — $ 71,624 Total assets $ — $ 1,299,353 $ — $ 1,299,353 June 30, 2022 Quoted Prices Significant Significant Total (In Thousands) Assets: Debt securities available for sale: Obligations of state and political subdivisions $ — $ 28,435 $ — $ 28,435 Asset-backed securities — 166,557 — 166,557 Collateralized loan obligations — 307,813 — 307,813 Corporate bonds — 153,397 — 153,397 Total debt securities — 656,202 — 656,202 Mortgage-backed securities available for sale: Collateralized mortgage obligations — 7,122 — 7,122 Residential pass-through securities — 514,758 — 514,758 Commercial pass-through securities — 166,011 — 166,011 Total mortgage-backed securities — 687,891 — 687,891 Total securities available for sale $ — $ 1,344,093 $ — $ 1,344,093 Interest rate contracts $ — $ 41,223 $ — $ 41,223 Total assets $ — $ 1,385,316 $ — $ 1,385,316 |
Schedule of Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | Those assets and liabilities measured at fair value on a non-recurring basis are summarized below: June 30, 2023 Quoted Prices Significant Significant Total (In Thousands) Collateral dependent loans: Residential mortgage $ — $ — $ 449 $ 449 Multi-family mortgage — — 7,300 7,300 Nonresidential mortgage — — 9,972 9,972 Total $ — $ — $ 17,721 $ 17,721 Other real estate owned, net: Nonresidential $ — $ — $ 12,956 $ 12,956 Total $ — $ — $ 12,956 $ 12,956 June 30, 2022 Quoted Prices Significant Significant Total (In Thousands) Collateral dependent loans: Residential mortgage $ — $ — $ 2,035 $ 2,035 Multi-family mortgage — — 7,517 7,517 Nonresidential mortgage — — 11,479 11,479 Total $ — $ — $ 21,031 $ 21,031 Other real estate owned, net: Residential $ — $ — $ 178 $ 178 Total $ — $ — $ 178 $ 178 |
Schedule of Quantitative Information about Level 3 Fair Value Measurements | The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company has utilized adjusted Level 3 inputs to determine fair value: June 30, 2023 Fair Valuation Unobservable Range Weighted (Dollars in Thousands) Collateral dependent loans: Residential mortgage $ 449 Market valuation of underlying collateral (1) Adjustments to reflect current conditions/selling costs (2) 6.93% 6.93 % Multi-family mortgage 7,300 Market valuation of underlying collateral (1) Adjustments to reflect current conditions/selling costs (2) 6% - 9% 7.78 % Nonresidential mortgage 9,972 Market valuation of underlying collateral (1) Adjustments to reflect current conditions/selling costs (2) 9% - 16% 11.78 % Total $ 17,721 Other real estate owned, net: Nonresidential $ 12,956 Market valuation of underlying collateral (3) Adjustments to reflect current conditions/selling costs (2) 4.00% 4.00 % Total $ 12,956 June 30, 2022 Fair Valuation Unobservable Range Weighted (Dollars in Thousands) Collateral dependent loans: Residential mortgage $ 2,035 Market valuation of underlying collateral (1) Adjustments to reflect current conditions/selling costs (2) 7% - 10% 8.97 % Multi-family mortgage 7,517 Market valuation of underlying collateral (1) Adjustments to reflect current conditions/selling costs (2) 10% - 12% 11.06 % Nonresidential mortgage 11,479 Market valuation of underlying collateral (1) Adjustments to reflect current conditions/selling costs (2) 9% - 18% 12.72 % Total $ 21,031 Other real estate owned, net: Residential $ 178 Market valuation of underlying collateral (3) Adjustments to reflect current conditions/selling costs (2) 6.00% 6.00 % Total $ 178 ________________________________________ (1) The fair value basis of collateral dependent loans is generally determined based on an independent appraisal of the fair value of a loan’s underlying collateral. (2) The fair value basis of collateral dependent loans and other real estate owned is adjusted to reflect management estimates of selling costs including, but not limited to, real estate brokerage commissions and title transfer fees. (3) The fair value basis of other real estate owned is generally determined based upon the lower of an independent appraisal of the property’s fair value or the applicable listing price or contracted sales price. |
Schedule of Carrying Amounts and Fair Values of Financial Instruments | The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2023 and 2022: June 30, 2023 Carrying Fair Quoted Significant Significant (In Thousands) Financial assets: Cash and cash equivalents $ 70,515 $ 70,515 $ 70,515 $ — $ — Investment securities available for sale 1,227,729 1,227,729 — 1,227,729 — Investment securities held to maturity 146,465 131,169 — 131,169 — Loans held-for-sale 9,591 9,442 — 9,442 — Net loans receivable 5,780,687 5,261,808 — — 5,261,808 FHLB Stock 71,734 — — — — Interest receivable 28,133 28,133 14 8,924 19,195 Interest rate contracts 71,624 71,624 — 71,624 — Financial liabilities: Deposits 3,611,632 3,611,632 3,611,632 — — Certificates of deposits 2,017,551 1,989,434 — — 1,989,434 Borrowings 1,506,812 1,498,920 — — 1,498,920 Interest payable on deposits 6,826 6,826 1,933 — 4,893 Interest payable on borrowings 5,282 5,282 — — 5,282 June 30, 2022 Carrying Fair Quoted Significant Significant (In Thousands) Financial assets: Cash and cash equivalents $ 101,615 $ 101,615 $ 101,615 $ — $ — Investment securities available for sale 1,344,093 1,344,093 — 1,344,093 — Investment securities held to maturity 118,291 108,118 — 108,118 — Loans held-for-sale 28,874 28,831 — 28,831 — Net loans receivable 5,370,787 5,215,079 — — 5,215,079 FHLB Stock 47,144 — — — — Interest receivable 20,466 20,466 2 5,210 15,254 Interest rate contracts 41,223 41,223 — 41,223 — Financial liabilities: Deposits 3,972,694 3,972,694 3,972,694 — — Certificates of deposits 1,889,562 1,866,341 — — 1,866,341 Borrowings 901,337 900,505 — — 900,505 Interest payable on deposits 722 722 147 — 575 Interest payable on borrowings 1,611 1,611 — — 1,611 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive (loss) income included in stockholders’ equity are as follows: June 30, 2023 2022 (In Thousands) Net unrealized loss on securities available for sale $ (156,138) $ (118,031) Tax effect 45,018 34,104 Net of tax amount (111,120) (83,927) Fair value adjustments on derivatives 58,414 39,805 Tax effect (16,940) (11,542) Net of tax amount 41,474 28,263 Benefit plan adjustments 268 (89) Tax effect (78) 26 Net of tax amount 190 (63) Total accumulated other comprehensive loss $ (69,456) $ (55,727) |
Schedule of Comprehensive Income (Loss) | Other comprehensive (loss) income and related tax effects are presented in the following table: Years Ended June 30, 2023 2022 2021 (In Thousands) Net unrealized loss on securities available for sale $ (53,334) $ (128,601) $ (11,704) Net realized loss (gain) on securities available for sale (1) 15,227 559 (767) Fair value adjustments on derivatives 18,609 40,117 19,106 Benefit plans: (Accretion) amortization of actuarial (gain) loss (2) (24) 80 83 Net actuarial gain 381 924 236 Net change in benefit plan accrued expense 357 1,004 319 Other comprehensive (loss) income before taxes (19,141) (86,921) 6,954 Tax effect 5,412 25,050 (2,067) Total other comprehensive (loss) income $ (13,729) $ (61,871) $ 4,887 ________________________________________ (1) Represents amounts reclassified out of accumulated other comprehensive (loss) income and included in gain on sale of securities on the Consolidated Statements of Income. (2) Represents amounts reclassified out of accumulated other comprehensive (loss) income and included in the computation of net periodic pension expense. See Note 13 – Benefit Plans for additional information. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Non-Interest Income | The following table presents the Company’s sources of noninterest income for the years ended June 30, 2023, 2022 and 2021. Sources of revenue outside the scope of ASC 606 are noted as such. Years Ended June 30, 2023 2022 2021 (In Thousands) Non-interest income: Deposit-related fees and charges $ 1,881 $ 1,733 $ 1,412 Loan-related fees and charges (1) 1,225 847 485 (Loss) gain on sale and call of securities (1) (15,227) (559) 767 (Loss) gain on sale of loans (1) (1,645) 2,539 5,574 (Loss) gain on sale of other real estate owned (139) 5 — Income from bank owned life insurance (1) 8,645 6,167 6,267 Electronic banking fees and charges (interchange income) 1,759 1,626 1,717 Bargain purchase gain (1) — — 3,053 Miscellaneous (1) 6,252 1,576 1,751 Total non-interest income $ 2,751 $ 13,934 $ 21,026 ________________________________________ (1) Not within the scope of ASC 606. |
Parent Only Financial Informa_2
Parent Only Financial Information (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Statements of Financial Condition | Condensed Statements of Financial Condition June 30, 2023 2022 (In Thousands) Assets Cash and amounts due from depository institutions $ 48,839 $ 77,750 Loans receivable 26,384 28,201 Investment in subsidiary 794,080 788,021 Other assets 827 448 Total Assets $ 870,130 $ 894,420 Liabilities and Stockholders' Equity Other liabilities 846 420 Stockholders' equity 869,284 894,000 Total Liabilities and Stockholders' Equity $ 870,130 $ 894,420 |
Schedule of Impact of Retrospective Application to Consolidated Statement of Income | Condensed Statements of Income and Comprehensive Income Years Ended June 30, 2023 2022 2021 (In Thousands) Dividends from subsidiary $ 26,282 $ 156,728 $ 178,918 Interest income 1,749 1,508 1,993 Equity in undistributed earnings of subsidiaries 14,912 (88,452) (114,969) Total income 42,943 69,784 65,942 Directors' compensation 532 530 308 Other expenses 1,715 1,976 2,660 Total expense 2,247 2,506 2,968 Income before income taxes 40,696 67,278 62,974 Income tax expense (115) (269) (259) Net income $ 40,811 $ 67,547 $ 63,233 Comprehensive income $ 27,082 $ 5,676 $ 68,120 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows Years Ended June 30, 2023 2022 2021 (In Thousands) Cash Flows from Operating Activities: Net income $ 40,811 $ 67,547 $ 63,233 Adjustment to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries (14,912) 88,452 114,969 (Increase) decrease in other assets (379) 176 484 Increase (decrease) in other liabilities 271 (184) 160 Net Cash Provided by Operating Activities 25,791 155,991 178,846 Cash Flows from Investing Activities: Repayment of loan to ESOP 1,817 1,758 1,702 Proceeds from the maturity of investment securities available for sale — 15,000 — Outlays for business acquisitions — — (9,008) Other, net — — 118 Net Cash Provided by (Used in) Investing Activities 1,817 16,758 (7,188) Cash Flows from Financing Activities: Exercise of stock options — — 373 Cash dividends paid (28,499) (30,693) (28,648) Repurchase and cancellation of common stock of Kearny Financial Corp. (27,558) (129,520) (119,021) Cancellation of shares repurchased on vesting to pay taxes (462) (977) (803) Net Cash Used In Financing Activities (56,519) (161,190) (148,099) Net (Decrease) Increase in Cash and Cash Equivalents (28,911) 11,559 23,559 Cash and Cash Equivalents - Beginning 77,750 66,191 42,632 Cash and Cash Equivalents - Ending $ 48,839 $ 77,750 $ 66,191 |
Net Income per Common Share (_2
Net Income per Common Share (EPS) (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Calculations | The following schedule shows the Company’s earnings per share calculations for the periods presented: For the Year Ended June 30, 2023 2022 2021 (In Thousands, Except Per Share Data) Net income $ 40,811 $ 67,547 $ 63,233 Weighted average number of common shares outstanding - basic 64,804 70,911 82,387 Effect of dilutive securities — 22 4 Weighted average number of common shares outstanding- diluted 64,804 70,933 82,391 Basic earnings per share $ 0.63 $ 0.95 $ 0.77 Diluted earnings per share $ 0.63 $ 0.95 $ 0.77 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||||
Jul. 27, 2023 $ / shares | Jun. 30, 2023 USD ($) subsidiary $ / shares | Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2021 USD ($) $ / shares | Jun. 30, 2020 USD ($) | |
Subsequent Event [Line Items] | |||||
Number of wholly owned bank subsidiaries | subsidiary | 2 | ||||
Dividends declared per common share (in dollars per share) | $ / shares | $ 0.44 | $ 0.43 | $ 0.35 | ||
Goodwill, impairment loss | $ 0 | $ 0 | $ 0 | ||
Finite-lived intangible assets, net | 2,457,000 | 3,020,000 | $ 3,705,000 | $ 3,995,000 | |
Unrecognized income tax benefits | $ 0 | $ 0 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Dividends declared per common share (in dollars per share) | $ / shares | $ 0.11 |
Business Combination - Addition
Business Combination - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jul. 10, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Business Acquisition [Line Items] | |||||
Bargain purchase gain | $ 0 | $ 0 | $ 3,053 | ||
Finite-lived intangible assets, net | 2,457 | 3,020 | 3,705 | $ 3,995 | |
Merger-related expenses | $ 0 | $ 0 | 4,349 | ||
MSB Financial Corporation | |||||
Business Acquisition [Line Items] | |||||
Cash paid for acquisition | $ 9,830 | ||||
Issuance of shares of common stock to MSB stockholders in conjunction with merger (in shares) | 5,853,811 | ||||
Bargain purchase gain | $ 3,053 | ||||
Finite-lived intangible assets, net | $ 690 | ||||
Merger-related expenses | $ 4,300 | ||||
MSB Financial Corporation | Core Deposits | |||||
Business Acquisition [Line Items] | |||||
Intangible asset, estimated useful life | 10 years |
Business Combination - Summary
Business Combination - Summary of Assets Acquired and Liabilities Assumed Through Merger at Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 10, 2020 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | ||||
Deferred income taxes, net | $ 4,098 | $ 6,327 | ||
Bargain purchase gain | $ 0 | $ 0 | $ (3,053) | |
MSB Financial Corporation | ||||
Business Acquisition [Line Items] | ||||
Cash paid for acquisition | $ 9,830 | |||
Value of stock issued | 45,133 | |||
Total purchase price | 54,963 | |||
Cash and cash equivalents | 14,126 | |||
Investment securities | 3,490 | |||
Loans receivable | 530,244 | |||
Allowance for loan losses | 0 | |||
Premises and equipment | 4,477 | |||
FHLB stock | 3,345 | |||
Accrued interest receivable | 1,701 | |||
Core deposit intangibles | 690 | |||
Bank owned life insurance | 14,663 | |||
Deferred income taxes, net | 3,881 | |||
Other assets | 5,325 | |||
Total assets acquired | 581,942 | |||
Deposits | 460,178 | |||
FHLB borrowings | 62,900 | |||
Advance payments by borrowers for taxes | 794 | |||
Other liabilities | 54 | |||
Total liabilities assumed | 523,926 | |||
Net assets acquired | 58,016 | |||
Bargain purchase gain | (3,053) | |||
MSB Financial Corporation | Previously Reported | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 14,126 | |||
Investment securities | 4,000 | |||
Loans receivable | 537,589 | |||
Allowance for loan losses | (6,037) | |||
Premises and equipment | 7,698 | |||
FHLB stock | 3,345 | |||
Accrued interest receivable | 1,701 | |||
Core deposit intangibles | 0 | |||
Bank owned life insurance | 14,663 | |||
Deferred income taxes, net | 1,729 | |||
Other assets | 4,830 | |||
Total assets acquired | 583,644 | |||
Deposits | 458,392 | |||
FHLB borrowings | 62,900 | |||
Advance payments by borrowers for taxes | 794 | |||
Other liabilities | 810 | |||
Total liabilities assumed | 522,896 | |||
MSB Financial Corporation | Revision of Prior Period, Adjustment | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 0 | |||
Investment securities | (510) | |||
Loans receivable | (7,345) | |||
Allowance for loan losses | 6,037 | |||
Premises and equipment | (3,221) | |||
FHLB stock | 0 | |||
Accrued interest receivable | 0 | |||
Core deposit intangibles | 690 | |||
Bank owned life insurance | 0 | |||
Deferred income taxes, net | 2,152 | |||
Other assets | 495 | |||
Total assets acquired | (1,702) | |||
Deposits | 1,786 | |||
FHLB borrowings | 0 | |||
Advance payments by borrowers for taxes | 0 | |||
Other liabilities | (756) | |||
Total liabilities assumed | $ 1,030 |
Securities - Securities Availab
Securities - Securities Available for Sale (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 1,383,867,000 | $ 1,462,124,000 |
Gross Unrealized Gains | 274,000 | 260,000 |
Gross Unrealized Losses | 156,412,000 | 118,291,000 |
Allowance for Credit Losses | 0 | 0 |
Investment securities available for sale | 1,227,729,000 | 1,344,093,000 |
Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 679,862,000 | 673,555,000 |
Gross Unrealized Gains | 272,000 | 214,000 |
Gross Unrealized Losses | 31,950,000 | 17,567,000 |
Allowance for Credit Losses | 0 | 0 |
Investment securities available for sale | 648,184,000 | 656,202,000 |
Obligations of state and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 28,485,000 | |
Gross Unrealized Gains | 39,000 | |
Gross Unrealized Losses | 89,000 | |
Allowance for Credit Losses | 0 | |
Investment securities available for sale | 28,435,000 | |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 138,281,000 | 169,506,000 |
Gross Unrealized Gains | 4,000 | 0 |
Gross Unrealized Losses | 2,115,000 | 2,949,000 |
Allowance for Credit Losses | 0 | 0 |
Investment securities available for sale | 136,170,000 | 166,557,000 |
Collateralized loan obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 381,915,000 | 315,693,000 |
Gross Unrealized Gains | 268,000 | 0 |
Gross Unrealized Losses | 5,187,000 | 7,880,000 |
Allowance for Credit Losses | 0 | 0 |
Investment securities available for sale | 376,996,000 | 307,813,000 |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 159,666,000 | 159,871,000 |
Gross Unrealized Gains | 0 | 175,000 |
Gross Unrealized Losses | 24,648,000 | 6,649,000 |
Allowance for Credit Losses | 0 | 0 |
Investment securities available for sale | 135,018,000 | 153,397,000 |
Mortgage-backed securities: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 704,005,000 | 788,569,000 |
Gross Unrealized Gains | 2,000 | 46,000 |
Gross Unrealized Losses | 124,462,000 | 100,724,000 |
Allowance for Credit Losses | 0 | 0 |
Investment securities available for sale | 579,545,000 | 687,891,000 |
Collateralized mortgage obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 7,451,000 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 329,000 | |
Allowance for Credit Losses | 0 | |
Investment securities available for sale | 7,122,000 | |
Residential pass-through securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 539,506,000 | 595,337,000 |
Gross Unrealized Gains | 2,000 | 45,000 |
Gross Unrealized Losses | 103,357,000 | 80,624,000 |
Allowance for Credit Losses | 0 | 0 |
Investment securities available for sale | 436,151,000 | 514,758,000 |
Commercial pass-through securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 164,499,000 | 185,781,000 |
Gross Unrealized Gains | 0 | 1,000 |
Gross Unrealized Losses | 21,105,000 | 19,771,000 |
Allowance for Credit Losses | 0 | 0 |
Investment securities available for sale | $ 143,394,000 | $ 166,011,000 |
Securities - Securities Held to
Securities - Securities Held to Maturity (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 146,465,000 | $ 118,291,000 |
Gross Unrecognized Gains | 0 | 44,000 |
Gross Unrecognized Losses | 15,296,000 | 10,217,000 |
Allowance for Credit Losses | 0 | 0 |
Investment securities held to maturity | 131,169,000 | 108,118,000 |
Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 16,051,000 | 21,159,000 |
Gross Unrecognized Gains | 0 | 44,000 |
Gross Unrecognized Losses | 321,000 | 78,000 |
Allowance for Credit Losses | 0 | 0 |
Investment securities held to maturity | 15,730,000 | 21,125,000 |
Obligations of state and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 16,051,000 | 21,159,000 |
Gross Unrecognized Gains | 0 | 44,000 |
Gross Unrecognized Losses | 321,000 | 78,000 |
Allowance for Credit Losses | 0 | 0 |
Investment securities held to maturity | 15,730,000 | 21,125,000 |
Mortgage-backed securities: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 130,414,000 | 97,132,000 |
Gross Unrecognized Gains | 0 | 0 |
Gross Unrecognized Losses | 14,975,000 | 10,139,000 |
Allowance for Credit Losses | 0 | 0 |
Investment securities held to maturity | 115,439,000 | 86,993,000 |
Residential pass-through securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 118,166,000 | 84,851,000 |
Gross Unrecognized Gains | 0 | 0 |
Gross Unrecognized Losses | 12,736,000 | 8,587,000 |
Allowance for Credit Losses | 0 | 0 |
Investment securities held to maturity | 105,430,000 | 76,264,000 |
Commercial pass-through securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 12,248,000 | 12,281,000 |
Gross Unrecognized Gains | 0 | 0 |
Gross Unrecognized Losses | 2,239,000 | 1,552,000 |
Allowance for Credit Losses | 0 | 0 |
Investment securities held to maturity | $ 10,009,000 | $ 10,729,000 |
Securities - Stratification by
Securities - Stratification by Contractual Maturity of Securities (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Amortized Cost | |
Due in one year or less | $ 0 |
Due after one year through five years | 21,865 |
Due after five years through ten years | 363,433 |
Due after ten years | 294,564 |
Amortized Cost | 679,862 |
Fair Value | |
Due in one year or less | 0 |
Due after one year through five years | 21,526 |
Due after five years through ten years | 339,589 |
Due after ten years | 287,069 |
Fair Value | 648,184 |
Amortized Cost | |
Due in one year or less | 3,386 |
Due after one year through five years | 12,054 |
Due after five years through ten years | 611 |
Due after ten years | 0 |
Amortized Cost | 16,051 |
Fair Value | |
Due in one year or less | 3,361 |
Due after one year through five years | 11,776 |
Due after five years through ten years | 593 |
Due after ten years | 0 |
Fair Value | $ 15,730 |
Securities - Sales of Securitie
Securities - Sales of Securities Available for Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds from sales of securities | $ 105,199 | $ 100,336 | $ 98,084 |
Available for sale securities sold: | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross realized gains | 0 | 0 | 1,196 |
Gross realized losses | (15,227) | (565) | (470) |
Net (loss) gain on sales of securities | $ (15,227) | $ (565) | $ 726 |
Securities - Calls of Securitie
Securities - Calls of Securities Available for Sale (Details) - Available for sale securities called: - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Gross realized gains | $ 0 | $ 6 | $ 41 |
Gross realized losses | 0 | 0 | 0 |
Net (loss) gain on sales of securities | $ 0 | $ 6 | $ 41 |
Securities - Additional Informa
Securities - Additional Information (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Available for sale, allowance for credit loss | $ 0 | $ 0 |
Held to maturity, allowance for credit loss | $ 0 | $ 0 |
Securities - Schedule of Availa
Securities - Schedule of Available for Sale Securities Pledged (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available for sale | $ 1,227,729 | $ 1,344,093 |
Asset Pledged as Collateral | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available for sale | 730,455 | 913,960 |
Asset Pledged as Collateral | Pledged for borrowings at the FHLB of New York | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available for sale | 0 | 178,048 |
Asset Pledged as Collateral | Pledged to secure public funds on deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available for sale | 201,239 | 357,841 |
Asset Pledged as Collateral | Pledged for potential borrowings at the Federal Reserve Bank of New York | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available for sale | $ 529,216 | $ 378,071 |
SECURITIES - Schedule of Fair V
SECURITIES - Schedule of Fair Values and Gross Unrealized and Unrecognized Losses on Investments (Details) $ in Thousands | Jun. 30, 2023 USD ($) Security | Jun. 30, 2022 USD ($) Security |
Fair Value | ||
Less than 12 Months | $ 180,298 | $ 847,082 |
12 Months or More | 1,008,181 | 456,929 |
Fair Value | 1,188,479 | 1,304,011 |
Unrealized Losses | ||
Less than 12 Months | 3,700 | 46,005 |
12 Months or More | $ 152,712 | $ 72,286 |
Number of Securities | Security | 191 | 229 |
Unrealized Losses | $ 156,412 | $ 118,291 |
Fair Value | ||
Less than 12 Months | 51,777 | 95,674 |
12 Months or More | 79,392 | 0 |
Total | 131,169 | 95,674 |
Unrecognized Losses | ||
Less than 12 Months | 587 | 10,217 |
12 Months or More | $ 14,709 | $ 0 |
Number of Securities | Security | 42 | 24 |
Unrecognized Losses | $ 15,296 | $ 10,217 |
Obligations of state and political subdivisions | ||
Fair Value | ||
Less than 12 Months | 11,310 | |
12 Months or More | 0 | |
Fair Value | 11,310 | |
Unrealized Losses | ||
Less than 12 Months | 89 | |
12 Months or More | $ 0 | |
Number of Securities | Security | 30 | |
Unrealized Losses | $ 89 | |
Fair Value | ||
Less than 12 Months | 13,642 | 8,681 |
12 Months or More | 2,088 | |
Total | 15,730 | 8,681 |
Unrecognized Losses | ||
Less than 12 Months | 268 | $ 78 |
12 Months or More | $ 53 | |
Number of Securities | Security | 32 | 15 |
Unrecognized Losses | $ 321 | $ 78 |
Asset-backed securities | ||
Fair Value | ||
Less than 12 Months | 33,833 | 161,303 |
12 Months or More | 98,828 | 5,254 |
Fair Value | 132,661 | 166,557 |
Unrealized Losses | ||
Less than 12 Months | 129 | 2,928 |
12 Months or More | $ 1,986 | $ 21 |
Number of Securities | Security | 14 | 15 |
Unrealized Losses | $ 2,115 | $ 2,949 |
Collateralized loan obligations | ||
Fair Value | ||
Less than 12 Months | 46,903 | 236,967 |
12 Months or More | 294,813 | 70,846 |
Fair Value | 341,716 | 307,813 |
Unrealized Losses | ||
Less than 12 Months | 135 | 6,435 |
12 Months or More | $ 5,052 | $ 1,445 |
Number of Securities | Security | 26 | 24 |
Unrealized Losses | $ 5,187 | $ 7,880 |
Corporate bonds | ||
Fair Value | ||
Less than 12 Months | 25,511 | 129,407 |
12 Months or More | 109,507 | 3,815 |
Fair Value | 135,018 | 133,222 |
Unrealized Losses | ||
Less than 12 Months | 1,354 | 6,464 |
12 Months or More | $ 23,294 | $ 185 |
Number of Securities | Security | 31 | 27 |
Unrealized Losses | $ 24,648 | $ 6,649 |
Collateralized mortgage obligations | ||
Fair Value | ||
Less than 12 Months | 7,122 | |
12 Months or More | 0 | |
Fair Value | 7,122 | |
Unrealized Losses | ||
Less than 12 Months | 329 | |
12 Months or More | $ 0 | |
Number of Securities | Security | 6 | |
Unrealized Losses | $ 329 | |
Commercial pass-through securities | ||
Fair Value | ||
Less than 12 Months | 63,531 | 63,045 |
12 Months or More | 79,863 | 102,817 |
Fair Value | 143,394 | 165,862 |
Unrealized Losses | ||
Less than 12 Months | 1,380 | 3,194 |
12 Months or More | $ 19,725 | $ 16,577 |
Number of Securities | Security | 12 | 21 |
Unrealized Losses | $ 21,105 | $ 19,771 |
Fair Value | ||
Less than 12 Months | 0 | 10,729 |
12 Months or More | 10,009 | |
Total | 10,009 | 10,729 |
Unrecognized Losses | ||
Less than 12 Months | 0 | $ 1,552 |
12 Months or More | $ 2,239 | |
Number of Securities | Security | 1 | 1 |
Unrecognized Losses | $ 2,239 | $ 1,552 |
Residential pass-through securities | ||
Fair Value | ||
Less than 12 Months | 10,520 | 237,928 |
12 Months or More | 425,170 | 274,197 |
Fair Value | 435,690 | 512,125 |
Unrealized Losses | ||
Less than 12 Months | 702 | 26,566 |
12 Months or More | $ 102,655 | $ 54,058 |
Number of Securities | Security | 108 | 106 |
Unrealized Losses | $ 103,357 | $ 80,624 |
Fair Value | ||
Less than 12 Months | 38,135 | 76,264 |
12 Months or More | 67,295 | |
Total | 105,430 | 76,264 |
Unrecognized Losses | ||
Less than 12 Months | 319 | $ 8,587 |
12 Months or More | $ 12,417 | |
Number of Securities | Security | 9 | 8 |
Unrecognized Losses | $ 12,736 | $ 8,587 |
Loans Receivable - Schedule of
Loans Receivable - Schedule of Loans Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | $ 5,850,476 | $ 5,436,576 |
Unaccreted yield adjustments | (21,055) | (18,731) |
Total loans receivable, net of yield adjustments | 5,829,421 | 5,417,845 |
Commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 4,103,819 | 3,745,866 |
Commercial loans | Multi-family mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 2,761,775 | 2,409,090 |
Commercial loans | Nonresidential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 968,574 | 1,019,838 |
Commercial loans | Commercial business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 146,861 | 176,807 |
Commercial loans | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 226,609 | 140,131 |
Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 1,700,559 | 1,645,816 |
Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 46,098 | 44,894 |
Consumer loans | Home equity loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 43,549 | 42,028 |
Consumer loans | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | $ 2,549 | $ 2,866 |
Loans Receivable - Additional I
Loans Receivable - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 USD ($) loan property | Jun. 30, 2023 USD ($) loan property | Jun. 30, 2022 USD ($) property loan | Jun. 30, 2021 USD ($) | Jun. 30, 2020 USD ($) | |
Financing Receivable Recorded Investment [Line Items] | |||||
Loans and leases receivable, related parties | $ 2,500,000 | $ 2,500,000 | $ 2,600,000 | ||
Number of new loans to related parties | loan | 0 | 2 | |||
Loans and leases receivable, related parties, additions | $ 1,800,000 | ||||
Interest income on non-accrual loans | $ 0 | 0 | $ 0 | ||
Financing receivable, troubled debt restructuring | 17,361,000 | 17,361,000 | 22,184,000 | ||
Loans acquired with deteriorated credit quality | 48,734,000 | 48,734,000 | 47,058,000 | 58,165,000 | $ 37,327,000 |
TDR charge-offs | $ 121,000 | $ 0 | |||
Number of TDR default loans | loan | 2 | 3 | |||
TDR defaults | 649,000 | $ 305,000 | |||
Financing receivable, individually evaluated for impairment | $ 42,600,000 | 42,600,000 | |||
Collateral Pledged | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Financing receivable, individually evaluated for impairment | $ 38,196,000 | $ 38,196,000 | 63,287,000 | ||
Nonresidential Property | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Number of other real estate owned acquired through foreclosure | property | 1 | 1 | |||
Single-family Property | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Aggregate carrying value of real estate owned | $ 13,000,000 | $ 13,000,000 | |||
Residential Mortgage | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Number of loans in process of foreclosure | loan | 3 | 3 | |||
Commercial Mortgage | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Number of loans in process of foreclosure | loan | 6 | 6 | |||
Mortgage loans in process of foreclosure, carrying value | $ 9,200,000 | $ 9,200,000 | |||
Residential mortgage | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Financing receivable, troubled debt restructuring | 7,526,000 | 7,526,000 | 7,802,000 | ||
Loans acquired with deteriorated credit quality | 10,237,000 | 10,237,000 | $ 7,540,000 | $ 9,747,000 | $ 4,860,000 |
Number of loans in process of foreclosure | loan | 7 | ||||
Mortgage loans in process of foreclosure, carrying value | 950,000 | 950,000 | $ 1,500,000 | ||
Residential mortgage | Collateral Pledged | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Financing receivable, individually evaluated for impairment | 2,875,000 | 2,875,000 | 4,305,000 | ||
Residential mortgage | Single-family Property | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Aggregate carrying value of real estate owned | $ 178,000 | ||||
Real Estate Acquired in Satisfaction of Debt | Residential mortgage | Single-family Property | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Number of properties held | property | 1 | ||||
Troubled Debt Restructurings | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans acquired with deteriorated credit quality | $ 274,000 | $ 274,000 | $ 365,000 |
Loans Receivable - Contractual
Loans Receivable - Contractual Payment Status of Loans Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | $ 5,850,476 | $ 5,436,576 |
Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 30,546 | 41,756 |
30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 6,322 | 8,825 |
60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 1,218 | 3,401 |
90 Days and Over | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 23,006 | 29,530 |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 5,819,930 | 5,394,820 |
Commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 4,103,819 | 3,745,866 |
Commercial loans | Multi-family mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 2,761,775 | 2,409,090 |
Commercial loans | Nonresidential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 968,574 | 1,019,838 |
Commercial loans | Commercial business | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 146,861 | 176,807 |
Commercial loans | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 226,609 | 140,131 |
Commercial loans | Past Due | Multi-family mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 13,714 | 13,992 |
Commercial loans | Past Due | Nonresidential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 9,025 | 22,158 |
Commercial loans | Past Due | Commercial business | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 780 | 310 |
Commercial loans | Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 0 | 0 |
Commercial loans | 30-59 Days | Multi-family mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 2,958 | 3,148 |
Commercial loans | 30-59 Days | Nonresidential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 792 | 4,026 |
Commercial loans | 30-59 Days | Commercial business | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 528 | 98 |
Commercial loans | 30-59 Days | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 0 | 0 |
Commercial loans | 60-89 Days | Multi-family mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 0 | 3,056 |
Commercial loans | 60-89 Days | Nonresidential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 0 | 0 |
Commercial loans | 60-89 Days | Commercial business | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 16 | 57 |
Commercial loans | 60-89 Days | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 0 | 0 |
Commercial loans | 90 Days and Over | Multi-family mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 10,756 | 7,788 |
Commercial loans | 90 Days and Over | Nonresidential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 8,233 | 18,132 |
Commercial loans | 90 Days and Over | Commercial business | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 236 | 155 |
Commercial loans | 90 Days and Over | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 0 | 0 |
Commercial loans | Current | Multi-family mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 2,748,061 | 2,395,098 |
Commercial loans | Current | Nonresidential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 959,549 | 997,680 |
Commercial loans | Current | Commercial business | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 146,081 | 176,497 |
Commercial loans | Current | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 226,609 | 140,131 |
Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 1,700,559 | 1,645,816 |
Residential mortgage | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 6,952 | 5,233 |
Residential mortgage | 30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 2,019 | 1,525 |
Residential mortgage | 60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 1,202 | 253 |
Residential mortgage | 90 Days and Over | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 3,731 | 3,455 |
Residential mortgage | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 1,693,607 | 1,640,583 |
Consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 46,098 | 44,894 |
Consumer loans | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 43,549 | 42,028 |
Consumer loans | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 2,549 | 2,866 |
Consumer loans | Past Due | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 75 | 63 |
Consumer loans | Past Due | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 0 | 0 |
Consumer loans | 30-59 Days | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 25 | 28 |
Consumer loans | 30-59 Days | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 0 | 0 |
Consumer loans | 60-89 Days | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 0 | 35 |
Consumer loans | 60-89 Days | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 0 | 0 |
Consumer loans | 90 Days and Over | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 50 | 0 |
Consumer loans | 90 Days and Over | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 0 | 0 |
Consumer loans | Current | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 43,474 | 41,965 |
Consumer loans | Current | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | $ 2,549 | $ 2,866 |
Loans Receivable - Performance
Loans Receivable - Performance Status of Loans Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | $ 5,850,476 | $ 5,436,576 |
Commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 4,103,819 | 3,745,866 |
Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 1,700,559 | 1,645,816 |
Consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 46,098 | 44,894 |
Nonperforming | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days and Over Past Due Accruing | 0 | 0 |
Nonaccrual Loans with Allowance for Credit Losses | 19,212 | 25,026 |
Nonaccrual Loans with no Allowance for Credit Losses | 23,415 | 45,295 |
Financing receivable, before allowance for credit loss, fee and loan in process | 42,627 | 70,321 |
Nonperforming | Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days and Over Past Due Accruing | 0 | 0 |
Nonaccrual Loans with Allowance for Credit Losses | 1,640 | 3,543 |
Nonaccrual Loans with no Allowance for Credit Losses | 5,031 | 4,946 |
Financing receivable, before allowance for credit loss, fee and loan in process | 6,671 | 8,489 |
Performing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 5,807,849 | 5,366,255 |
Performing | Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 1,693,888 | 1,637,327 |
Multi-family mortgage | Commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 2,761,775 | 2,409,090 |
Multi-family mortgage | Nonperforming | Commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days and Over Past Due Accruing | 0 | 0 |
Nonaccrual Loans with Allowance for Credit Losses | 5,686 | 8,367 |
Nonaccrual Loans with no Allowance for Credit Losses | 13,428 | 18,286 |
Financing receivable, before allowance for credit loss, fee and loan in process | 19,114 | 26,653 |
Multi-family mortgage | Performing | Commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 2,742,661 | 2,382,437 |
Nonresidential mortgage | Commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 968,574 | 1,019,838 |
Nonresidential mortgage | Nonperforming | Commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days and Over Past Due Accruing | 0 | 0 |
Nonaccrual Loans with Allowance for Credit Losses | 11,815 | 12,602 |
Nonaccrual Loans with no Allowance for Credit Losses | 4,725 | 19,292 |
Financing receivable, before allowance for credit loss, fee and loan in process | 16,540 | 31,894 |
Nonresidential mortgage | Performing | Commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 952,034 | 987,944 |
Commercial business | Commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 146,861 | 176,807 |
Commercial business | Nonperforming | Commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days and Over Past Due Accruing | 0 | 0 |
Nonaccrual Loans with Allowance for Credit Losses | 71 | 212 |
Nonaccrual Loans with no Allowance for Credit Losses | 181 | 81 |
Financing receivable, before allowance for credit loss, fee and loan in process | 252 | 293 |
Commercial business | Performing | Commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 146,609 | 176,514 |
Construction | Commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 226,609 | 140,131 |
Construction | Nonperforming | Commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days and Over Past Due Accruing | 0 | 0 |
Nonaccrual Loans with Allowance for Credit Losses | 0 | 0 |
Nonaccrual Loans with no Allowance for Credit Losses | 0 | 1,561 |
Financing receivable, before allowance for credit loss, fee and loan in process | 0 | 1,561 |
Construction | Performing | Commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 226,609 | 138,570 |
Home equity loans | Consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 43,549 | 42,028 |
Home equity loans | Nonperforming | Consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days and Over Past Due Accruing | 0 | 0 |
Nonaccrual Loans with Allowance for Credit Losses | 0 | 302 |
Nonaccrual Loans with no Allowance for Credit Losses | 50 | 1,129 |
Financing receivable, before allowance for credit loss, fee and loan in process | 50 | 1,431 |
Home equity loans | Performing | Consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 43,499 | 40,597 |
Other consumer | Consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | 2,549 | 2,866 |
Other consumer | Nonperforming | Consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days and Over Past Due Accruing | 0 | 0 |
Nonaccrual Loans with Allowance for Credit Losses | 0 | 0 |
Nonaccrual Loans with no Allowance for Credit Losses | 0 | 0 |
Financing receivable, before allowance for credit loss, fee and loan in process | 0 | 0 |
Other consumer | Performing | Consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, before allowance for credit loss, fee and loan in process | $ 2,549 | $ 2,866 |
Loans Receivable - Troubled Deb
Loans Receivable - Troubled Debt Restructurings of Loans Receivable (Details) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 USD ($) loan | Jun. 30, 2022 USD ($) loan | |
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 62 | 68 |
Amount | $ 17,361 | $ 22,184 |
Number of Loans | loan | 6 | 17 |
Pre-modification Recorded Investment | $ 1,130 | $ 17,380 |
Post-modification Recorded Investment | $ 1,159 | $ 17,474 |
Performing | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 54 | 43 |
Amount | $ 10,487 | $ 8,672 |
Nonperforming | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 8 | 25 |
Amount | $ 6,874 | $ 13,512 |
Commercial loans | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 13 | 16 |
Amount | $ 9,467 | $ 12,854 |
Commercial loans | Performing | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 9 | 9 |
Amount | $ 3,367 | $ 4,020 |
Commercial loans | Nonperforming | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 4 | 7 |
Amount | $ 6,100 | $ 8,834 |
Commercial loans | Multi-family mortgage | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 2 | 2 |
Amount | $ 5,400 | $ 5,626 |
Number of Loans | loan | 0 | 2 |
Pre-modification Recorded Investment | $ 0 | $ 12,091 |
Post-modification Recorded Investment | $ 0 | $ 12,073 |
Commercial loans | Multi-family mortgage | Performing | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Amount | $ 0 | $ 0 |
Commercial loans | Multi-family mortgage | Nonperforming | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 2 | 2 |
Amount | $ 5,400 | $ 5,626 |
Commercial loans | Nonresidential mortgage | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 5 | 6 |
Amount | $ 870 | $ 1,954 |
Number of Loans | loan | 1 | 0 |
Pre-modification Recorded Investment | $ 313 | $ 0 |
Post-modification Recorded Investment | $ 345 | $ 0 |
Commercial loans | Nonresidential mortgage | Performing | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 3 | 4 |
Amount | $ 170 | $ 389 |
Commercial loans | Nonresidential mortgage | Nonperforming | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 2 | 2 |
Amount | $ 700 | $ 1,565 |
Commercial loans | Commercial business | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 6 | 7 |
Amount | $ 3,197 | $ 3,713 |
Number of Loans | loan | 2 | 0 |
Pre-modification Recorded Investment | $ 74 | $ 0 |
Post-modification Recorded Investment | $ 74 | $ 0 |
Commercial loans | Commercial business | Performing | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 6 | 5 |
Amount | $ 3,197 | $ 3,631 |
Commercial loans | Commercial business | Nonperforming | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 0 | 2 |
Amount | $ 0 | $ 82 |
Commercial loans | Construction | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 0 | 1 |
Amount | $ 0 | $ 1,561 |
Commercial loans | Construction | Performing | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Amount | $ 0 | $ 0 |
Commercial loans | Construction | Nonperforming | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 0 | 1 |
Amount | $ 0 | $ 1,561 |
Residential mortgage | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 43 | 45 |
Amount | $ 7,526 | $ 7,802 |
Number of Loans | loan | 2 | 13 |
Pre-modification Recorded Investment | $ 708 | $ 3,812 |
Post-modification Recorded Investment | $ 705 | $ 3,924 |
Residential mortgage | Performing | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 39 | 29 |
Amount | $ 6,752 | $ 4,488 |
Residential mortgage | Nonperforming | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 4 | 16 |
Amount | $ 774 | $ 3,314 |
Consumer loans | Home equity loans | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 6 | 7 |
Amount | $ 368 | $ 1,528 |
Number of Loans | loan | 1 | 2 |
Pre-modification Recorded Investment | $ 35 | $ 1,477 |
Post-modification Recorded Investment | $ 35 | $ 1,477 |
Consumer loans | Home equity loans | Performing | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 6 | 5 |
Amount | $ 368 | $ 164 |
Consumer loans | Home equity loans | Nonperforming | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 0 | 2 |
Amount | $ 0 | $ 1,364 |
Loans Receivable - Schedule O_2
Loans Receivable - Schedule Of Carrying Value Of Collateral Dependent Individually Analyzed Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, individually evaluated for impairment | $ 42,600 | |
Collateral Pledged | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, individually evaluated for impairment | 38,196 | $ 63,287 |
Loans individually analyzed | 3,327 | 3,622 |
Commercial loans | Collateral Pledged | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, individually evaluated for impairment | 35,321 | 58,947 |
Loans individually analyzed | 3,327 | 3,545 |
Commercial loans | Multi-family mortgage | Collateral Pledged | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, individually evaluated for impairment | 19,114 | 26,653 |
Loans individually analyzed | 326 | 849 |
Commercial loans | Nonresidential mortgage | Collateral Pledged | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, individually evaluated for impairment | 16,207 | 30,733 |
Loans individually analyzed | 3,001 | 2,696 |
Commercial loans | Construction | Collateral Pledged | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, individually evaluated for impairment | 0 | 1,561 |
Loans individually analyzed | 0 | 0 |
Residential mortgage | Collateral Pledged | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, individually evaluated for impairment | 2,875 | 4,305 |
Loans individually analyzed | 0 | 77 |
Consumer loans | Home equity loans | Collateral Pledged | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, individually evaluated for impairment | 0 | 35 |
Loans individually analyzed | $ 0 | $ 0 |
Loans Receivable - Credit-Ratin
Loans Receivable - Credit-Rating Classification of Loans Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | $ 951,989 | $ 1,734,134 |
Originated fiscal year before current fiscal year | 1,697,890 | 997,932 |
Originated two years before current fiscal year | 967,598 | 378,754 |
Originated three years before current fiscal year | 353,683 | 396,664 |
Originated four years before current fiscal year | 357,180 | 379,618 |
Originated more than five years before current fiscal year | 1,429,252 | 1,455,925 |
Revolving Loans | 92,884 | 93,549 |
Total | 5,850,476 | 5,436,576 |
Commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 4,103,819 | 3,745,866 |
Commercial loans | Multi-family mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 603,260 | 963,263 |
Originated fiscal year before current fiscal year | 954,554 | 250,385 |
Originated two years before current fiscal year | 223,291 | 211,101 |
Originated three years before current fiscal year | 198,969 | 273,995 |
Originated four years before current fiscal year | 242,367 | 253,993 |
Originated more than five years before current fiscal year | 539,334 | 456,353 |
Revolving Loans | 0 | 0 |
Total | 2,761,775 | 2,409,090 |
Commercial loans | Nonresidential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 109,725 | 231,777 |
Originated fiscal year before current fiscal year | 220,443 | 88,029 |
Originated two years before current fiscal year | 83,740 | 53,983 |
Originated three years before current fiscal year | 51,933 | 61,647 |
Originated four years before current fiscal year | 60,116 | 53,311 |
Originated more than five years before current fiscal year | 436,617 | 525,039 |
Revolving Loans | 6,000 | 6,052 |
Total | 968,574 | 1,019,838 |
Commercial loans | Commercial business | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 10,364 | 46,888 |
Originated fiscal year before current fiscal year | 28,644 | 38,829 |
Originated two years before current fiscal year | 25,304 | 12,536 |
Originated three years before current fiscal year | 8,317 | 3,767 |
Originated four years before current fiscal year | 1,967 | 8,381 |
Originated more than five years before current fiscal year | 12,617 | 7,469 |
Revolving Loans | 59,648 | 58,937 |
Total | 146,861 | 176,807 |
Commercial loans | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 25,070 | 16,407 |
Originated fiscal year before current fiscal year | 36,389 | 95,526 |
Originated two years before current fiscal year | 143,086 | 10,337 |
Originated three years before current fiscal year | 12,275 | 3,039 |
Originated four years before current fiscal year | 2,961 | 6,509 |
Originated more than five years before current fiscal year | 1,093 | 2,578 |
Revolving Loans | 5,735 | 5,735 |
Total | 226,609 | 140,131 |
Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 195,521 | 472,160 |
Originated fiscal year before current fiscal year | 455,046 | 524,163 |
Originated two years before current fiscal year | 491,460 | 88,645 |
Originated three years before current fiscal year | 80,431 | 50,604 |
Originated four years before current fiscal year | 46,989 | 55,139 |
Originated more than five years before current fiscal year | 431,112 | 454,731 |
Revolving Loans | 0 | 374 |
Total | 1,700,559 | 1,645,816 |
Consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 46,098 | 44,894 |
Consumer loans | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 7,682 | 3,197 |
Originated fiscal year before current fiscal year | 2,567 | 692 |
Originated two years before current fiscal year | 607 | 1,681 |
Originated three years before current fiscal year | 1,264 | 3,237 |
Originated four years before current fiscal year | 2,478 | 2,027 |
Originated more than five years before current fiscal year | 7,567 | 8,860 |
Revolving Loans | 21,384 | 22,334 |
Total | 43,549 | 42,028 |
Consumer loans | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 367 | 442 |
Originated fiscal year before current fiscal year | 247 | 308 |
Originated two years before current fiscal year | 110 | 471 |
Originated three years before current fiscal year | 494 | 375 |
Originated four years before current fiscal year | 302 | 258 |
Originated more than five years before current fiscal year | 912 | 895 |
Revolving Loans | 117 | 117 |
Total | 2,549 | 2,866 |
Pass | Commercial loans | Multi-family mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 603,260 | 963,263 |
Originated fiscal year before current fiscal year | 954,554 | 250,385 |
Originated two years before current fiscal year | 213,482 | 211,101 |
Originated three years before current fiscal year | 198,969 | 264,174 |
Originated four years before current fiscal year | 226,929 | 248,058 |
Originated more than five years before current fiscal year | 510,485 | 438,642 |
Revolving Loans | 0 | 0 |
Total | 2,707,679 | 2,375,623 |
Pass | Commercial loans | Nonresidential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 109,725 | 231,777 |
Originated fiscal year before current fiscal year | 220,443 | 87,309 |
Originated two years before current fiscal year | 83,032 | 53,983 |
Originated three years before current fiscal year | 51,933 | 60,714 |
Originated four years before current fiscal year | 59,197 | 49,285 |
Originated more than five years before current fiscal year | 414,742 | 491,849 |
Revolving Loans | 6,000 | 6,052 |
Total | 945,072 | 980,969 |
Pass | Commercial loans | Commercial business | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 10,364 | 46,888 |
Originated fiscal year before current fiscal year | 28,644 | 38,791 |
Originated two years before current fiscal year | 25,304 | 12,155 |
Originated three years before current fiscal year | 7,875 | 3,581 |
Originated four years before current fiscal year | 1,731 | 4,861 |
Originated more than five years before current fiscal year | 8,776 | 6,455 |
Revolving Loans | 59,031 | 58,662 |
Total | 141,725 | 171,393 |
Pass | Commercial loans | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 25,070 | 16,407 |
Originated fiscal year before current fiscal year | 36,389 | 95,526 |
Originated two years before current fiscal year | 143,086 | 10,337 |
Originated three years before current fiscal year | 12,275 | 3,039 |
Originated four years before current fiscal year | 2,961 | 6,509 |
Originated more than five years before current fiscal year | 1,093 | 1,017 |
Revolving Loans | 5,735 | 5,735 |
Total | 226,609 | 138,570 |
Pass | Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 195,521 | 472,160 |
Originated fiscal year before current fiscal year | 454,504 | 524,163 |
Originated two years before current fiscal year | 491,460 | 88,645 |
Originated three years before current fiscal year | 80,431 | 49,316 |
Originated four years before current fiscal year | 45,741 | 55,139 |
Originated more than five years before current fiscal year | 422,472 | 442,517 |
Revolving Loans | 0 | 374 |
Total | 1,690,129 | 1,632,314 |
Pass | Consumer loans | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 7,682 | 3,197 |
Originated fiscal year before current fiscal year | 2,567 | 692 |
Originated two years before current fiscal year | 607 | 1,681 |
Originated three years before current fiscal year | 1,264 | 3,117 |
Originated four years before current fiscal year | 2,478 | 2,027 |
Originated more than five years before current fiscal year | 7,280 | 7,321 |
Revolving Loans | 21,384 | 22,334 |
Total | 43,262 | 40,369 |
Pass | Consumer loans | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 367 | 442 |
Originated fiscal year before current fiscal year | 247 | 308 |
Originated two years before current fiscal year | 110 | 471 |
Originated three years before current fiscal year | 494 | 375 |
Originated four years before current fiscal year | 302 | 258 |
Originated more than five years before current fiscal year | 912 | 895 |
Revolving Loans | 42 | 34 |
Total | 2,474 | 2,783 |
Special Mention | Commercial loans | Multi-family mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 0 | 0 |
Originated fiscal year before current fiscal year | 0 | 0 |
Originated two years before current fiscal year | 0 | 0 |
Originated three years before current fiscal year | 0 | 0 |
Originated four years before current fiscal year | 6,006 | 0 |
Originated more than five years before current fiscal year | 6,647 | 6,814 |
Revolving Loans | 0 | 0 |
Total | 12,653 | 6,814 |
Special Mention | Commercial loans | Nonresidential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 0 | 0 |
Originated fiscal year before current fiscal year | 0 | 0 |
Originated two years before current fiscal year | 0 | 0 |
Originated three years before current fiscal year | 0 | 0 |
Originated four years before current fiscal year | 0 | 0 |
Originated more than five years before current fiscal year | 378 | 591 |
Revolving Loans | 0 | 0 |
Total | 378 | 591 |
Special Mention | Commercial loans | Commercial business | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 0 | 0 |
Originated fiscal year before current fiscal year | 0 | 0 |
Originated two years before current fiscal year | 0 | 62 |
Originated three years before current fiscal year | 47 | 186 |
Originated four years before current fiscal year | 176 | 2,173 |
Originated more than five years before current fiscal year | 2,456 | 873 |
Revolving Loans | 371 | 215 |
Total | 3,050 | 3,509 |
Special Mention | Commercial loans | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 0 | 0 |
Originated fiscal year before current fiscal year | 0 | 0 |
Originated two years before current fiscal year | 0 | 0 |
Originated three years before current fiscal year | 0 | 0 |
Originated four years before current fiscal year | 0 | 0 |
Originated more than five years before current fiscal year | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Special Mention | Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 0 | 0 |
Originated fiscal year before current fiscal year | 0 | 0 |
Originated two years before current fiscal year | 0 | 0 |
Originated three years before current fiscal year | 0 | 1,205 |
Originated four years before current fiscal year | 1,168 | 0 |
Originated more than five years before current fiscal year | 425 | 621 |
Revolving Loans | 0 | 0 |
Total | 1,593 | 1,826 |
Special Mention | Consumer loans | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 0 | 0 |
Originated fiscal year before current fiscal year | 0 | 0 |
Originated two years before current fiscal year | 0 | 0 |
Originated three years before current fiscal year | 0 | 0 |
Originated four years before current fiscal year | 0 | 0 |
Originated more than five years before current fiscal year | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Special Mention | Consumer loans | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 0 | 0 |
Originated fiscal year before current fiscal year | 0 | 0 |
Originated two years before current fiscal year | 0 | 0 |
Originated three years before current fiscal year | 0 | 0 |
Originated four years before current fiscal year | 0 | 0 |
Originated more than five years before current fiscal year | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Substandard | Commercial loans | Multi-family mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 0 | 0 |
Originated fiscal year before current fiscal year | 0 | 0 |
Originated two years before current fiscal year | 9,809 | 0 |
Originated three years before current fiscal year | 0 | 9,821 |
Originated four years before current fiscal year | 9,432 | 5,935 |
Originated more than five years before current fiscal year | 22,202 | 10,897 |
Revolving Loans | 0 | 0 |
Total | 41,443 | 26,653 |
Substandard | Commercial loans | Nonresidential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 0 | 0 |
Originated fiscal year before current fiscal year | 0 | 720 |
Originated two years before current fiscal year | 708 | 0 |
Originated three years before current fiscal year | 0 | 933 |
Originated four years before current fiscal year | 919 | 4,026 |
Originated more than five years before current fiscal year | 21,497 | 32,599 |
Revolving Loans | 0 | 0 |
Total | 23,124 | 38,278 |
Substandard | Commercial loans | Commercial business | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 0 | 0 |
Originated fiscal year before current fiscal year | 0 | 38 |
Originated two years before current fiscal year | 0 | 319 |
Originated three years before current fiscal year | 395 | 0 |
Originated four years before current fiscal year | 60 | 1,347 |
Originated more than five years before current fiscal year | 1,385 | 61 |
Revolving Loans | 246 | 58 |
Total | 2,086 | 1,823 |
Substandard | Commercial loans | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 0 | 0 |
Originated fiscal year before current fiscal year | 0 | 0 |
Originated two years before current fiscal year | 0 | 0 |
Originated three years before current fiscal year | 0 | 0 |
Originated four years before current fiscal year | 0 | 0 |
Originated more than five years before current fiscal year | 0 | 1,561 |
Revolving Loans | 0 | 0 |
Total | 0 | 1,561 |
Substandard | Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 0 | 0 |
Originated fiscal year before current fiscal year | 542 | 0 |
Originated two years before current fiscal year | 0 | 0 |
Originated three years before current fiscal year | 0 | 83 |
Originated four years before current fiscal year | 80 | 0 |
Originated more than five years before current fiscal year | 8,215 | 11,593 |
Revolving Loans | 0 | 0 |
Total | 8,837 | 11,676 |
Substandard | Consumer loans | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 0 | 0 |
Originated fiscal year before current fiscal year | 0 | 0 |
Originated two years before current fiscal year | 0 | 0 |
Originated three years before current fiscal year | 0 | 120 |
Originated four years before current fiscal year | 0 | 0 |
Originated more than five years before current fiscal year | 287 | 1,539 |
Revolving Loans | 0 | 0 |
Total | 287 | 1,659 |
Substandard | Consumer loans | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 0 | 0 |
Originated fiscal year before current fiscal year | 0 | 0 |
Originated two years before current fiscal year | 0 | 0 |
Originated three years before current fiscal year | 0 | 0 |
Originated four years before current fiscal year | 0 | 0 |
Originated more than five years before current fiscal year | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Doubtful | Commercial loans | Multi-family mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 0 | 0 |
Originated fiscal year before current fiscal year | 0 | 0 |
Originated two years before current fiscal year | 0 | 0 |
Originated three years before current fiscal year | 0 | 0 |
Originated four years before current fiscal year | 0 | 0 |
Originated more than five years before current fiscal year | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Doubtful | Commercial loans | Nonresidential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 0 | 0 |
Originated fiscal year before current fiscal year | 0 | 0 |
Originated two years before current fiscal year | 0 | 0 |
Originated three years before current fiscal year | 0 | 0 |
Originated four years before current fiscal year | 0 | 0 |
Originated more than five years before current fiscal year | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Doubtful | Commercial loans | Commercial business | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 0 | 0 |
Originated fiscal year before current fiscal year | 0 | 0 |
Originated two years before current fiscal year | 0 | 0 |
Originated three years before current fiscal year | 0 | 0 |
Originated four years before current fiscal year | 0 | 0 |
Originated more than five years before current fiscal year | 0 | 80 |
Revolving Loans | 0 | 2 |
Total | 0 | 82 |
Doubtful | Commercial loans | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 0 | 0 |
Originated fiscal year before current fiscal year | 0 | 0 |
Originated two years before current fiscal year | 0 | 0 |
Originated three years before current fiscal year | 0 | 0 |
Originated four years before current fiscal year | 0 | 0 |
Originated more than five years before current fiscal year | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Doubtful | Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 0 | 0 |
Originated fiscal year before current fiscal year | 0 | 0 |
Originated two years before current fiscal year | 0 | 0 |
Originated three years before current fiscal year | 0 | 0 |
Originated four years before current fiscal year | 0 | 0 |
Originated more than five years before current fiscal year | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Doubtful | Consumer loans | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 0 | 0 |
Originated fiscal year before current fiscal year | 0 | 0 |
Originated two years before current fiscal year | 0 | 0 |
Originated three years before current fiscal year | 0 | 0 |
Originated four years before current fiscal year | 0 | 0 |
Originated more than five years before current fiscal year | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 0 | 0 |
Doubtful | Consumer loans | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Originated current fiscal year | 0 | 0 |
Originated fiscal year before current fiscal year | 0 | 0 |
Originated two years before current fiscal year | 0 | 0 |
Originated three years before current fiscal year | 0 | 0 |
Originated four years before current fiscal year | 0 | 0 |
Originated more than five years before current fiscal year | 0 | 0 |
Revolving Loans | 75 | 83 |
Total | $ 75 | $ 83 |
Loans Receivable - Acquisition
Loans Receivable - Acquisition Amount of MSB Purchased Loans (Details) $ in Thousands | Jul. 10, 2020 USD ($) |
Receivables [Abstract] | |
Purchase price of PCD loans at acquisition | $ 65,347 |
Allowance for credit losses at acquisition | 3,901 |
Non-credit discount at acquisition | 167 |
Par value of acquired PCD loans at acquisition | $ 69,415 |
Allowance for Credit Losses - A
Allowance for Credit Losses - Allowance for Credit Losses and Balance of Loans Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total allowance for credit losses | $ 48,734 | $ 47,058 | $ 58,165 | $ 37,327 |
Loans individually analyzed | 42,600 | |||
Total | 5,850,476 | 5,436,576 | ||
Unaccreted yield adjustments | (21,055) | (18,731) | ||
Total loans receivable, net of yield adjustments | 5,829,421 | 5,417,845 | ||
Commercial business | Multi-family mortgage | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total allowance for credit losses | 26,362 | 25,321 | ||
Total | 2,761,775 | 2,409,090 | ||
Commercial business | Nonresidential mortgage | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total allowance for credit losses | 8,953 | 10,590 | ||
Total | 968,574 | 1,019,838 | ||
Commercial business | Commercial business | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total allowance for credit losses | 1,440 | 1,792 | ||
Total | 146,861 | 176,807 | ||
Commercial business | Construction | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total allowance for credit losses | 1,336 | 1,486 | ||
Total | 226,609 | 140,131 | ||
Residential mortgage | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total allowance for credit losses | 10,237 | 7,540 | 9,747 | 4,860 |
Total | 1,700,559 | 1,645,816 | ||
Consumer loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total | 46,098 | 44,894 | ||
Consumer loans | Home equity loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total allowance for credit losses | 338 | 245 | 433 | 568 |
Total | 43,549 | 42,028 | ||
Consumer loans | Other consumer | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total allowance for credit losses | 68 | 84 | $ 36 | $ 58 |
Total | 2,549 | 2,866 | ||
Receivables Acquired with Deteriorated Credit Quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually analyzed | 3 | 26 | ||
Loans collectively evaluated | 211 | 311 | ||
Loans individually analyzed | 928 | 793 | ||
Loans collectively evaluated | 17,967 | 18,553 | ||
Receivables Acquired with Deteriorated Credit Quality | Commercial business | Multi-family mortgage | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually analyzed | 0 | 0 | ||
Loans collectively evaluated | 0 | 0 | ||
Loans individually analyzed | 0 | 0 | ||
Loans collectively evaluated | 0 | 0 | ||
Receivables Acquired with Deteriorated Credit Quality | Commercial business | Nonresidential mortgage | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually analyzed | 0 | 0 | ||
Loans collectively evaluated | 70 | 73 | ||
Loans individually analyzed | 333 | 377 | ||
Loans collectively evaluated | 3,562 | 5,033 | ||
Receivables Acquired with Deteriorated Credit Quality | Commercial business | Commercial business | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually analyzed | 0 | 0 | ||
Loans collectively evaluated | 9 | 9 | ||
Loans individually analyzed | 0 | 0 | ||
Loans collectively evaluated | 4,237 | 1,267 | ||
Receivables Acquired with Deteriorated Credit Quality | Commercial business | Construction | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually analyzed | 0 | 0 | ||
Loans collectively evaluated | 0 | 0 | ||
Loans individually analyzed | 0 | 0 | ||
Loans collectively evaluated | 5,735 | 5,735 | ||
Receivables Acquired with Deteriorated Credit Quality | Residential mortgage | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually analyzed | 3 | 0 | ||
Loans collectively evaluated | 132 | 229 | ||
Loans individually analyzed | 570 | 87 | ||
Loans collectively evaluated | 4,433 | 6,460 | ||
Receivables Acquired with Deteriorated Credit Quality | Consumer loans | Home equity loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually analyzed | 0 | 26 | ||
Loans collectively evaluated | 0 | 0 | ||
Loans individually analyzed | 25 | 329 | ||
Loans collectively evaluated | 0 | 58 | ||
Receivables Acquired with Deteriorated Credit Quality | Consumer loans | Other consumer | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually analyzed | 0 | 0 | ||
Loans collectively evaluated | 0 | 0 | ||
Loans individually analyzed | 0 | 0 | ||
Loans collectively evaluated | 0 | 0 | ||
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually analyzed | 3,417 | 3,709 | ||
Loans collectively evaluated | 45,103 | 43,012 | ||
Loans individually analyzed | 41,699 | 69,528 | ||
Loans collectively evaluated | 5,789,882 | 5,347,702 | ||
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial business | Multi-family mortgage | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually analyzed | 326 | 849 | ||
Loans collectively evaluated | 26,036 | 24,472 | ||
Loans individually analyzed | 19,114 | 26,653 | ||
Loans collectively evaluated | 2,742,661 | 2,382,437 | ||
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial business | Nonresidential mortgage | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually analyzed | 3,001 | 2,696 | ||
Loans collectively evaluated | 5,882 | 7,821 | ||
Loans individually analyzed | 16,207 | 31,517 | ||
Loans collectively evaluated | 948,472 | 982,911 | ||
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial business | Commercial business | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually analyzed | 20 | 16 | ||
Loans collectively evaluated | 1,411 | 1,767 | ||
Loans individually analyzed | 252 | 293 | ||
Loans collectively evaluated | 142,372 | 175,247 | ||
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Commercial business | Construction | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually analyzed | 0 | 0 | ||
Loans collectively evaluated | 1,336 | 1,486 | ||
Loans individually analyzed | 0 | 1,561 | ||
Loans collectively evaluated | 220,874 | 132,835 | ||
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Residential mortgage | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually analyzed | 70 | 148 | ||
Loans collectively evaluated | 10,032 | 7,163 | ||
Loans individually analyzed | 6,101 | 8,402 | ||
Loans collectively evaluated | 1,689,455 | 1,630,867 | ||
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | Home equity loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually analyzed | 0 | 0 | ||
Loans collectively evaluated | 338 | 219 | ||
Loans individually analyzed | 25 | 1,102 | ||
Loans collectively evaluated | 43,499 | 40,539 | ||
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | Consumer loans | Other consumer | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually analyzed | 0 | 0 | ||
Loans collectively evaluated | 68 | 84 | ||
Loans individually analyzed | 0 | 0 | ||
Loans collectively evaluated | $ 2,549 | $ 2,866 |
Allowance for Credit Losses - C
Allowance for Credit Losses - Changes in the Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 47,058 | $ 58,165 | $ 37,327 |
Charge-offs | (896) | (4,737) | (1,612) |
Recoveries | 86 | 1,148 | 30 |
Initial allowance on PCD loans | 3,901 | ||
Provision for (reversal of) credit losses | 2,486 | (7,518) | (1,121) |
Ending balance | 48,734 | 47,058 | 58,165 |
Impact of adopting Topic 326 | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 19,640 | ||
Commercial loans | Multi-family mortgage | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 25,321 | 28,450 | 20,916 |
Charge-offs | (493) | (1,896) | 0 |
Recoveries | 0 | 0 | 0 |
Initial allowance on PCD loans | 250 | ||
Provision for (reversal of) credit losses | 1,534 | (1,233) | (1,124) |
Ending balance | 26,362 | 25,321 | 28,450 |
Commercial loans | Multi-family mortgage | Impact of adopting Topic 326 | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 8,408 | ||
Commercial loans | Nonresidential mortgage | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 10,590 | 16,243 | 8,763 |
Charge-offs | (39) | (2,646) | (80) |
Recoveries | 0 | 812 | 0 |
Initial allowance on PCD loans | 1,720 | ||
Provision for (reversal of) credit losses | (1,598) | (3,819) | 3,450 |
Ending balance | 8,953 | 10,590 | 16,243 |
Commercial loans | Nonresidential mortgage | Impact of adopting Topic 326 | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 2,390 | ||
Commercial loans | Commercial business | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 1,792 | 2,086 | 1,926 |
Charge-offs | (364) | (193) | (1,446) |
Recoveries | 29 | 160 | 17 |
Initial allowance on PCD loans | 1,007 | ||
Provision for (reversal of) credit losses | (17) | (261) | 1,003 |
Ending balance | 1,440 | 1,792 | 2,086 |
Commercial loans | Commercial business | Impact of adopting Topic 326 | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | (421) | ||
Commercial loans | Construction | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 1,486 | 1,170 | 236 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Initial allowance on PCD loans | 99 | ||
Provision for (reversal of) credit losses | (150) | 316 | 755 |
Ending balance | 1,336 | 1,486 | 1,170 |
Commercial loans | Construction | Impact of adopting Topic 326 | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 80 | ||
Residential mortgage | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 7,540 | 9,747 | 4,860 |
Charge-offs | 0 | 0 | (13) |
Recoveries | 2 | 147 | 4 |
Initial allowance on PCD loans | 720 | ||
Provision for (reversal of) credit losses | 2,695 | (2,354) | (4,930) |
Ending balance | 10,237 | 7,540 | 9,747 |
Residential mortgage | Impact of adopting Topic 326 | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 9,106 | ||
Consumer loans | Home equity loans | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 245 | 433 | 568 |
Charge-offs | 0 | 0 | (32) |
Recoveries | 0 | 27 | 0 |
Initial allowance on PCD loans | 105 | ||
Provision for (reversal of) credit losses | 93 | (215) | (300) |
Ending balance | 338 | 245 | 433 |
Consumer loans | Home equity loans | Impact of adopting Topic 326 | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 92 | ||
Consumer loans | Other consumer | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 84 | 36 | 58 |
Charge-offs | 0 | (2) | (41) |
Recoveries | 55 | 2 | 9 |
Initial allowance on PCD loans | 0 | ||
Provision for (reversal of) credit losses | (71) | 48 | 25 |
Ending balance | 68 | 84 | 36 |
Consumer loans | Other consumer | Impact of adopting Topic 326 | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ (15) | ||
Commercial business | Multi-family mortgage | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 25,321 | ||
Ending balance | 26,362 | 25,321 | |
Commercial business | Nonresidential mortgage | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 10,590 | ||
Ending balance | 8,953 | 10,590 | |
Commercial business | Commercial business | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 1,792 | ||
Ending balance | 1,440 | 1,792 | |
Commercial business | Construction | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 1,486 | ||
Ending balance | $ 1,336 | $ 1,486 |
Allowance for Credit Losses -_2
Allowance for Credit Losses - Allowance for Credit Losses on Financing Receivables Off Balance Sheet Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Balance at beginning of the period | $ 1,041 | $ 1,708 | $ 0 |
(Reversal of) provision for credit losses | (300) | (667) | 1,172 |
Balance at end of the period | $ 741 | $ 1,041 | 1,708 |
Impact of adopting Topic 326 | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Balance at beginning of the period | $ 536 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | |||
Operating lease, right-of-use asset | $ 16,100 | $ 18,400 | |
Operating lease, liabilities | $ 17,221 | $ 19,185 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities | |
Weighted average remaining lease term for operating leases | 6 years 6 months 21 days | ||
Operating lease, weighted average discount rate | 2.70% | ||
Operating lease, cost | $ 3,700 | $ 3,700 | $ 3,800 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Commitments for Operating Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Leases [Abstract] | ||
Less than one year | $ 3,445 | $ 3,614 |
After one year but within two years | 3,183 | 3,187 |
After two years but within three years | 3,071 | 2,905 |
After three years but within four years | 2,963 | 2,817 |
After four years but within five years | 1,941 | 2,707 |
Greater than five years | 4,305 | 5,956 |
Total undiscounted cash flows | 18,908 | 21,186 |
Less: discount on cash flows | (1,687) | (2,001) |
Total lease liability | $ 17,221 | $ 19,185 |
Premises and Equipment - Proper
Premises and Equipment - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 99,479 | $ 101,541 |
Less accumulated depreciation and amortization | 51,170 | 48,260 |
Total premises and equipment | 48,309 | 53,281 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 11,773 | 12,192 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 45,886 | 48,156 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 12,029 | 11,336 |
Furnishings and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 29,720 | 29,431 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 71 | $ 426 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense on premises and equipment | $ 5,733 | $ 5,971 | $ 5,862 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | $ 210,895 | $ 210,895 | $ 210,895 | $ 210,895 |
Core Deposit Intangibles | ||||
Beginning balance | 3,020 | 3,705 | 3,995 | |
Acquisition of MSB Financial Corp. | 690 | |||
Amortization | (563) | (685) | (980) | |
Ending balance | $ 2,457 | $ 3,020 | $ 3,705 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Scheduled Amortization of Core Deposit Intangibles (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 526 |
2025 | 495 |
2026 | 467 |
2027 | 441 |
2028 | 353 |
Thereafter | $ 175 |
Deposits - Schedule of Deposits
Deposits - Schedule of Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Deposits: | ||
Non-interest-bearing demand | $ 609,999 | $ 653,899 |
Interest-bearing demand | 2,252,912 | 2,265,597 |
Savings | 748,721 | 1,053,198 |
Certificates of deposits | 2,017,551 | 1,889,562 |
Total deposits | $ 5,629,183 | $ 5,862,256 |
Weighted Average Interest Rate | ||
Interest-bearing demand | 2.43% | 0.56% |
Savings | 0.48% | 0.17% |
Certificates of deposits | 3.02% | 0.80% |
Total deposits | 2.12% | 0.50% |
Deposits - Schedule of Brokered
Deposits - Schedule of Brokered Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Deposits [Abstract] | ||
Balance | $ 635,314 | $ 761,862 |
Weighted Average Interest Rate | 4.28% | 1.14% |
Deposits - Certificates of Depo
Deposits - Certificates of Deposit By Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Deposits [Abstract] | ||
One year or less | $ 1,896,132 | |
After one year to two years | 71,317 | |
After two years to three years | 23,155 | |
After three years to four years | 13,775 | |
After four years to five years | 7,590 | |
After five years | 5,582 | |
Total certificates of deposit | $ 2,017,551 | $ 1,889,562 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Deposits [Abstract] | ||
Time deposits, $250,000 or more | $ 883.7 | $ 897.4 |
Borrowings - Schedule of Borrow
Borrowings - Schedule of Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Short-term Debt [Line Items] | ||
Short-term debt | $ 1,506,812 | $ 901,337 |
FHLB advances | ||
Short-term Debt [Line Items] | ||
Short-term debt | 1,281,812 | 651,337 |
Overnight borrowings | ||
Short-term Debt [Line Items] | ||
Short-term debt | 225,000 | $ 250,000 |
Overnight borrowings | Line of Credit | ||
Short-term Debt [Line Items] | ||
Short-term debt | 125,000 | |
Overnight borrowings | Unsecured Debt | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 100,000 |
Borrowings - Schedule of Fixed
Borrowings - Schedule of Fixed Rate Advances from FHLB (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Balance | ||
Less than one year | $ 972,500 | $ 520,000 |
One to two years | 103,500 | 22,500 |
Two to three years | 6,500 | 103,500 |
Three to four years | 0 | 6,500 |
Four to five years | 200,000 | 0 |
Greater than five years | 0 | 0 |
Total advances | 1,282,500 | 652,500 |
Unamortized fair value adjustments | (688) | (1,163) |
Total advances, net of fair value adjustments | $ 1,281,812 | $ 651,337 |
Weighted Average Interest Rate | ||
Less than one year | 5.36% | 2.04% |
One to two years | 2.68% | 2.63% |
Two to three years | 2.82% | 2.68% |
Three to four years | 0% | 2.82% |
Four to five years | 3.98% | 0% |
Greater than five years | 0% | 0% |
Weighted Average | ||
Weighted Average Interest Rate | ||
Total advances | 4.92% | 2.17% |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Mortgage-Backed Securities | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank, advances, general debt obligations, disclosures, collateral pledged | $ 178 | |
Investment in Federal Home Loan Bank Stock | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank, advances, general debt obligations, disclosures, collateral pledged | $ 4,600 | $ 3,580 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Fair Values of Derivative Financial Instruments as well as Their Classification on Statement of Financial Condition (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Assets: | ||
Fair Value | $ 71,624 | $ 41,223 |
Liabilities: | ||
Fair Value | 0 | |
Derivatives designated as hedging instruments | ||
Assets: | ||
Fair Value | 71,624 | 41,223 |
Liabilities: | ||
Fair Value | 0 | 0 |
Interest rate contracts | ||
Assets: | ||
Fair Value | 71,624 | 41,223 |
Liabilities: | ||
Fair Value | 0 | |
Interest rate contracts | Derivatives designated as hedging instruments | ||
Assets: | ||
Fair Value | 71,624 | 41,223 |
Liabilities: | ||
Fair Value | $ 0 | $ 0 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 USD ($) derivativeInstrument | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Derivative [Line Items] | |||
Reclassifications to interest expense | $ (20,393) | $ 4,273 | $ 8,281 |
Interest Expense | |||
Derivative [Line Items] | |||
Reclassifications to interest expense | 20,400 | ||
Estimated cash flow hedge gain (loss) to be reclassified in next twelve months | 33,800 | ||
Interest Income | |||
Derivative [Line Items] | |||
Reclassifications to interest expense | 0 | ||
Estimated cash flow hedge gain (loss) to be reclassified in next twelve months | 200 | ||
Credit Risk Contract | |||
Derivative [Line Items] | |||
Pipeline of loans held-for-sale | $ 11,700 | $ 20,300 | |
Cash Flow Hedges | Interest Rate Swaps | |||
Derivative [Line Items] | |||
Number of interest rate derivative instruments held | derivativeInstrument | 13 | ||
Derivative, notional amount | $ 1,450,000 | ||
Cash Flow Hedges | Interest Rate Floor | |||
Derivative [Line Items] | |||
Number of interest rate derivative instruments held | derivativeInstrument | 1 | ||
Derivative, notional amount | $ 100,000 | ||
Fair Value Hedging | Interest Rate Swaps | |||
Derivative [Line Items] | |||
Number of interest rate derivative instruments held | derivativeInstrument | 5 | ||
Derivative, notional amount | $ 675,000 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Pre-tax Effects of Derivative Instruments on Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Amount of gain recognized in other comprehensive income | $ 39,002 | $ 35,844 | $ 10,825 |
Amount of gain (loss) reclassified from accumulated other comprehensive income to interest expense | $ 20,393 | $ (4,273) | $ (8,281) |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities- Effects of Derivative Instruments on Income Statement (Details) - Interest Rate Swaps $ in Thousands | 12 Months Ended |
Jun. 30, 2023 USD ($) | |
Derivative [Line Items] | |
Loss on hedged items recorded in interest income on loans | $ (11,437) |
Gain on hedges recorded in interest income on loans | $ 14,563 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities- Effects of Derivative Instruments on Balance Sheet (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Derivative [Line Items] | |
Amortized cost basis of the closed portfolio | $ 1,100,000 |
Interest Rate Swaps | |
Derivative [Line Items] | |
Carrying amount of the hedged assets | 663,563 |
Fair value hedging adjustment included in the carrying amount of the hedged assets | $ (11,437) |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Offsetting Derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Assets: | ||
Gross Amount Recognized | $ 72,418 | $ 41,223 |
Gross Amounts Offset | (794) | 0 |
Net Amounts Presented | 71,624 | 41,223 |
Financial Instruments | 0 | 0 |
Cash Collateral Received (Posted) | 0 | 0 |
Net Amount | 71,624 | 41,223 |
Liabilities: | ||
Gross Amount Recognized | 794 | |
Gross Amounts Offset | (794) | |
Net Amounts Presented | 0 | |
Financial Instruments | 0 | |
Cash Collateral Received (Posted) | 0 | |
Net Amount | 0 | |
Interest rate contracts | ||
Assets: | ||
Gross Amount Recognized | 72,418 | 41,223 |
Gross Amounts Offset | (794) | 0 |
Net Amounts Presented | 71,624 | 41,223 |
Financial Instruments | 0 | 0 |
Cash Collateral Received (Posted) | 0 | 0 |
Net Amount | 71,624 | $ 41,223 |
Liabilities: | ||
Gross Amount Recognized | 794 | |
Gross Amounts Offset | (794) | |
Net Amounts Presented | 0 | |
Financial Instruments | 0 | |
Cash Collateral Received (Posted) | 0 | |
Net Amount | $ 0 |
Benefit Plans - Schedule of Net
Benefit Plans - Schedule of Net Periodic Benefit Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 281 | $ 547 | $ 106 |
Interest cost | 369 | 279 | 262 |
(Accretion) amortization of unrecognized (gain) loss | (24) | 80 | 83 |
Expected return on assets | (99) | (110) | (113) |
Net periodic benefit cost | $ 527 | $ 796 | $ 338 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
ESOP, number of shares purchased (in shares) | 6,022,000 | 6,022,000 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
ESOP compensation expense | $ 1,900 | $ 2,500 | $ 2,100 |
Maximum employee contribution percentage | 75% | ||
Maximum employer matching contribution percentage | 3.50% | ||
Eligible employee contribution | 6% | ||
Plan expense amount | $ 1,400 | $ 1,400 | $ 1,300 |
Multiemployer Plans, Postretirement Benefit | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Multiemployer plan number | 001 | ||
Funded status | 103.17% | 113.78% | |
Total contributions | $ 142,400 | $ 248,600 | |
Total expense recorded | $ 180 | 372 | 329 |
Multiemployer Plans, Postretirement Benefit | Maximum | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of contributions compared to total contributions | 5% | ||
Benefit Equalization Plan ("BEP") | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
ESOP compensation expense | $ 17 | 40 | 37 |
ESOP liability | 16 | 20 | |
Unrecognized net gain (loss) included in accumulated other comprehensive income | (626) | (707) | |
Benefit payments | 244 | 241 | 239 |
Contributions | 244 | 241 | 239 |
Defined benefit plan, expected future benefit payments, next twelve months | 241 | ||
Atlas Bank Retirement Income Plan ("ABRIP") | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Unrecognized net gain (loss) included in accumulated other comprehensive income | (475) | (475) | |
Benefit payments | 148 | 148 | |
Defined benefit plan, expected future benefit payments, next twelve months | 146 | ||
Postretirement Welfare Plan | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Unrecognized net gain (loss) included in accumulated other comprehensive income | 529 | 377 | |
Benefit payments | 13 | 12 | 12 |
Contributions | 13 | 12 | 12 |
Defined benefit plan, expected future benefit payments, next twelve months | 54 | ||
Directors' Consultation and Retirement Plan ("DCRP") | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Unrecognized net gain (loss) included in accumulated other comprehensive income | 840 | 716 | |
Benefit payments | 49 | 49 | |
Contributions | 49 | $ 49 | $ 69 |
Defined benefit plan, expected future benefit payments, next twelve months | $ 72 | ||
Second Step Conversion and Stock Offering | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
ESOP, number of shares purchased (in shares) | 2,409,764 | ||
Additional shares in ESOP (in shares) | 3,612,500 | ||
Common stock, par value (in dollars per share) | $ 10 | ||
Amount of outstanding principal and interest refinanced | $ 3,800 | ||
Employer additional loan to ESOP | 36,100 | ||
ESOP outstanding loan principal amount | $ 26,400 |
Benefit Plans - Schedule of Emp
Benefit Plans - Schedule of Employee Stock Ownership Plan (ESOP) Disclosures (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Retirement Benefits [Abstract] | ||
Shares purchased by ESOP | 6,022,000 | 6,022,000 |
Less: Shares allocated | 3,564,000 | 3,363,000 |
Less: Shares committed to be released | 100,000 | 100,000 |
Remaining unearned ESOP shares | 2,358,198 | 2,558,895 |
Fair value of unearned ESOP shares | $ 16,624 | $ 28,430 |
Benefit Plans - Schedule of N_2
Benefit Plans - Schedule of Net Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Change in benefit obligation: | |||
Service cost | $ 281 | $ 547 | $ 106 |
Interest cost | 369 | 279 | 262 |
Atlas Bank Retirement Income Plan ("ABRIP") | |||
Change in benefit obligation: | |||
Projected benefit obligation - beginning | 1,816 | 2,149 | |
Interest cost | 78 | 62 | 61 |
Actuarial gain | (46) | (247) | |
Benefit payments | (148) | (148) | |
Projected benefit obligation - ending | 1,700 | 1,816 | 2,149 |
Change in plan assets: | |||
Fair value of assets - beginning | 2,907 | 3,220 | |
Actual return on assets | (42) | (165) | |
Premiums/claims paid | (148) | (148) | |
Fair value of assets - ending | 2,717 | 2,907 | 3,220 |
Reconciliation of funded status: | |||
Projected benefit obligation | (1,700) | (1,816) | (2,149) |
Fair value of assets | 2,717 | 2,907 | 3,220 |
Funded status included in other assets / liabilities | 1,017 | 1,091 | |
Accumulated benefit obligation | $ (1,700) | $ (1,816) | |
Valuation assumptions | |||
Discount rate | 5% | 4.50% | |
Benefit Equalization Plan ("BEP") | |||
Change in benefit obligation: | |||
Projected benefit obligation - beginning | $ 2,592 | $ 2,999 | |
Interest cost | 111 | 86 | 85 |
Actuarial gain | (34) | (252) | |
Benefit payments | (244) | (241) | (239) |
Projected benefit obligation - ending | 2,425 | 2,592 | 2,999 |
Change in plan assets: | |||
Fair value of assets - beginning | 0 | 0 | |
Contributions | 244 | 241 | 239 |
Premiums/claims paid | (244) | (241) | |
Fair value of assets - ending | 0 | 0 | 0 |
Reconciliation of funded status: | |||
Projected benefit obligation | (2,425) | (2,592) | (2,999) |
Fair value of assets | 0 | 0 | 0 |
Funded status included in other assets / liabilities | (2,425) | (2,592) | |
Accumulated benefit obligation | $ (2,425) | $ (2,592) | |
Valuation assumptions | |||
Discount rate | 5% | 4.50% | |
Postretirement Welfare Plan | |||
Change in benefit obligation: | |||
Projected benefit obligation - beginning | $ 1,085 | $ 1,108 | |
Service cost | 95 | 116 | 106 |
Interest cost | 48 | 33 | 27 |
Actuarial gain | (214) | (160) | |
Benefit payments | (13) | (12) | (12) |
Plan amendments | 35 | 0 | |
Projected benefit obligation - ending | 1,036 | 1,085 | 1,108 |
Change in plan assets: | |||
Fair value of assets - beginning | 0 | 0 | |
Contributions | 13 | 12 | 12 |
Premiums/claims paid | (13) | (12) | |
Fair value of assets - ending | 0 | 0 | 0 |
Reconciliation of funded status: | |||
Projected benefit obligation | (1,036) | (1,085) | (1,108) |
Fair value of assets | 0 | 0 | 0 |
Funded status included in other assets / liabilities | $ (1,036) | $ (1,085) | |
Valuation assumptions | |||
Discount rate | 5% | 4.50% | |
Salary increase rate | 3.25% | 3.25% | |
Directors' Consultation and Retirement Plan ("DCRP") | |||
Change in benefit obligation: | |||
Projected benefit obligation - beginning | $ 2,646 | $ 3,116 | |
Interest cost | 117 | 92 | 89 |
Actuarial gain | (194) | (513) | |
Benefit payments | (49) | (49) | |
Projected benefit obligation - ending | 2,520 | 2,646 | 3,116 |
Change in plan assets: | |||
Fair value of assets - beginning | 0 | 0 | |
Contributions | 49 | 49 | 69 |
Premiums/claims paid | (49) | (49) | |
Fair value of assets - ending | 0 | 0 | 0 |
Reconciliation of funded status: | |||
Projected benefit obligation | (2,520) | (2,646) | (3,116) |
Fair value of assets | 0 | 0 | 0 |
Funded status included in other assets / liabilities | (2,520) | (2,646) | |
Accumulated benefit obligation | $ (2,520) | $ (2,646) | |
Valuation assumptions | |||
Discount rate | 5% | 4.50% | |
Supplemental Executive Retirement Plan (SERP) | |||
Change in benefit obligation: | |||
Projected benefit obligation - beginning | $ 437 | $ 0 | |
Service cost | 185 | 431 | |
Interest cost | 11 | 6 | |
Projected benefit obligation - ending | 633 | 437 | 0 |
Reconciliation of funded status: | |||
Projected benefit obligation | (633) | (437) | $ 0 |
Funded status included in other assets / liabilities | $ (633) | $ (437) | |
Valuation assumptions | |||
Discount rate | 3% | 3% | |
Salary increase rate | 4% |
Benefit Plans - Schedule of N_3
Benefit Plans - Schedule of Net Benefit Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 281 | $ 547 | $ 106 |
Interest cost | 369 | 279 | 262 |
(Accretion) amortization of unrecognized (gain) loss | (24) | 80 | 83 |
Expected return on assets | (99) | (110) | (113) |
Net periodic benefit cost | 527 | 796 | 338 |
Atlas Bank Retirement Income Plan ("ABRIP") | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Interest cost | 78 | 62 | 61 |
(Accretion) amortization of unrecognized (gain) loss | 28 | 21 | 22 |
Expected return on assets | (99) | (110) | (113) |
Net periodic benefit cost | $ 7 | $ (27) | $ (30) |
Discount rate | 4.50% | 3% | 2.75% |
Long term rate of return on plan assets | 3.50% | 3.50% | 3.50% |
Benefit Equalization Plan ("BEP") | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Interest cost | $ 111 | $ 86 | $ 85 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other expense | ||
(Accretion) amortization of unrecognized (gain) loss | 46 | 71 | $ 75 |
Net periodic benefit cost | $ 157 | $ 157 | $ 160 |
Discount rate | 4.50% | 3% | 2.75% |
Postretirement Welfare Plan | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 95 | $ 116 | $ 106 |
Interest cost | 48 | 33 | 27 |
(Accretion) amortization of unrecognized (gain) loss | (28) | (12) | (14) |
Net periodic benefit cost | $ 115 | $ 137 | $ 119 |
Discount rate | 4.50% | 3% | 2.75% |
Salary increase rate | 3.25% | 3.25% | 3.25% |
Directors' Consultation and Retirement Plan ("DCRP") | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Interest cost | $ 117 | $ 92 | $ 89 |
(Accretion) amortization of unrecognized (gain) loss | (69) | 0 | 0 |
Net periodic benefit cost | $ 48 | $ 92 | $ 89 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other expense | ||
Discount rate | 4.50% | 3% | 2.75% |
Supplemental Executive Retirement Plan (SERP) | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 185 | $ 431 | |
Interest cost | 11 | 6 | |
Net periodic benefit cost | $ 196 | $ 437 | |
Discount rate | 3% | 3% | |
Salary increase rate | 4% | 4% |
Benefit Plans - Schedule of Exp
Benefit Plans - Schedule of Expected Benefit Payments (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Atlas Bank Retirement Income Plan ("ABRIP") | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2024 | $ 146 |
2025 | 147 |
2026 | 148 |
2027 | 145 |
2028 | 140 |
2029-2033 | 637 |
Benefit Equalization Plan ("BEP") | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2024 | 241 |
2025 | 237 |
2026 | 232 |
2027 | 227 |
2028 | 221 |
2029-2033 | 999 |
Postretirement Welfare Plan | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2024 | 54 |
2025 | 62 |
2026 | 74 |
2027 | 82 |
2028 | 99 |
2029-2033 | 580 |
Directors' Consultation and Retirement Plan ("DCRP") | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2024 | 72 |
2025 | 118 |
2026 | 138 |
2027 | 157 |
2028 | 176 |
2029-2033 | 1,301 |
Supplemental Executive Retirement Plan (SERP) | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
2029-2033 | $ 633 |
Benefit Plans - Schedule of Fai
Benefit Plans - Schedule of Fair Value Measurements of ABRIP's Assets (Details) - Atlas Bank Retirement Income Plan ("ABRIP") - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Prudential Guaranteed Deposit Fund | $ 2,717 | $ 2,907 | $ 3,220 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Prudential Guaranteed Deposit Fund | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Prudential Guaranteed Deposit Fund | 2,717 | 2,907 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Prudential Guaranteed Deposit Fund | $ 0 | $ 0 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) $ in Thousands | 12 Months Ended | |||
Oct. 28, 2021 tranche shares | Jun. 30, 2023 USD ($) shares | Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Granted (in shares) | 0 | |||
Income tax benefit attributed to stock-based compensation expense | $ | $ 836 | $ 1,000 | $ 1,600 | |
Stock option exercise (in shares) | 0 | 0 | 41,412 | |
Stock option exercises in period | $ | $ 158 | |||
Cash proceeds from stock option | $ | $ 0 | $ 0 | 373 | |
Income tax benefit | $ | 47 | |||
Nonvested options outstanding (in shares) | 60,000 | |||
Stock option | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based payment award, number of shares issued (in shares) | 41,412 | |||
Expected future compensation expense not yet recognized | $ | $ 59 | |||
Expected future compensation expense, recognition period | 6 months | |||
Restricted stock unit | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected future compensation expense not yet recognized | $ | $ 3,600 | |||
Expected future compensation expense, recognition period | 2 years 1 month 6 days | |||
Expected future compensation expense not yet recognized | 497,664 | |||
Restricted stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected future compensation expense not yet recognized | $ | $ 527 | |||
Expected future compensation expense, recognition period | 2 years 10 months 24 days | |||
Fair value of vested restricted shares | $ | $ 767 | $ 4,300 | $ 4,200 | |
Expected future compensation expense not yet recognized | 78,826 | |||
2021 Equity Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares remaining available for future grants (in shares) | 5,825,421 | |||
2021 Equity Incentive Plan | Stock option | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares authorized for issuance (in shares) | 7,500,000 | |||
2021 Equity Incentive Plan | Restricted stock unit | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Granted (in shares) | 323,218 | 251,905 | ||
2021 Equity Incentive Plan | Performance Based Restricted Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Granted (in shares) | 85,097 | 70,317 | ||
2021 Equity Incentive Plan | Service Based Restricted Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Granted (in shares) | 238,121 | 181,588 | ||
Number of tranche | tranche | 3 | |||
2021 Equity Incentive Plan | Service Based Restricted Units | Tranche 1 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Annual vesting percentage | 33.33% | |||
2021 Equity Incentive Plan | Service Based Restricted Units | Tranche 2 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Annual vesting percentage | 33.33% | |||
2021 Equity Incentive Plan | Service Based Restricted Units | Tranche 3 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Annual vesting percentage | 33.33% | |||
2021 Equity Incentive Plan | Performance Based RSU | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Performance based RSUs vested period | 3 years | |||
2021 Equity Incentive Plan | Service Based RSU | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Service-based RSUs, vest in period | 3 years | |||
2016 Equity Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares remaining available for future grants (in shares) | 0 | 0 | ||
2016 Equity Incentive Plan | Stock option | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Service-based RSUs, vest in period | 5 years | |||
Performance based RSUs vested period | 10 years | |||
Shares remaining available for future grants (in shares) | 0 | 0 | 0 | |
2016 Equity Incentive Plan | Restricted stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Service-based RSUs, vest in period | 5 years | |||
Shares remaining available for future grants (in shares) | 0 | 0 | 53,706 |
Stock Based Compensation - Sche
Stock Based Compensation - Schedule of Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 2,936 | $ 3,794 | $ 5,673 |
Stock option | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation expense | 153 | 849 | 1,823 |
Restricted stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation expense | 725 | 2,049 | 3,850 |
Restricted stock unit | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 2,058 | $ 896 | $ 0 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of the Company's Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Options | |||
Beginning - outstanding (in shares) | 3,253,000 | ||
Shares granted (in shares) | 0 | ||
Exercised (in shares) | 0 | 0 | (41,412) |
Forfeited (in shares) | (269,000) | ||
Ending - outstanding (in shares) | 2,984,000 | 3,253,000 | |
Exercisable, number of options (in shares) | 2,924,000 | ||
Weighted Average Exercise Price | |||
Beginning balance (in dollars per share) | $ 14.97 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 14.76 | ||
Ending balance (in dollars per share) | 14.99 | $ 14.97 | |
Exercisable, weighted average exercise price (in dollars per share) | $ 15.03 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding | 3 years 6 months | 4 years 6 months | |
Exercisable | 3 years 6 months | ||
Aggregate Intrinsic Value | |||
Outstanding | $ 0 | $ 61 | |
Exercisable | $ 0 |
Stock Based Compensation - Su_2
Stock Based Compensation - Summary of the Status of the Company's Non-vested Restricted Share Awards (Details) | 12 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Restricted stock | |
Restricted Shares | |
Ending (in shares) | 78,826 |
Restricted stock | Vesting Contingent on Service Conditions | |
Restricted Shares | |
Beginning (in shares) | 75,000 |
Granted (in shares) | 0 |
Vested (in shares) | (32,000) |
Forfeited (in shares) | 0 |
Ending (in shares) | 43,000 |
Weighted Average Grant Date Fair Value | |
Beginning (in dollars per share) | $ / shares | $ 13.34 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 13.38 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending (in dollars per share) | $ / shares | $ 13.31 |
Restricted stock | Vesting Contingent on Performance and Service Conditions | |
Restricted Shares | |
Beginning (in shares) | 61,000 |
Granted (in shares) | 0 |
Vested (in shares) | (25,000) |
Forfeited (in shares) | 0 |
Ending (in shares) | 36,000 |
Weighted Average Grant Date Fair Value | |
Beginning (in dollars per share) | $ / shares | $ 13.33 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 13.38 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending (in dollars per share) | $ / shares | $ 13.30 |
Restricted stock unit | |
Restricted Shares | |
Ending (in shares) | 497,664 |
Restricted stock unit | Vesting Contingent on Service Conditions | |
Restricted Shares | |
Beginning (in shares) | 182,000 |
Granted (in shares) | (238,000) |
Vested (in shares) | (61,000) |
Forfeited (in shares) | (17,000) |
Ending (in shares) | 342,000 |
Weighted Average Grant Date Fair Value | |
Beginning (in dollars per share) | $ / shares | $ 13.68 |
Granted (in dollars per share) | $ / shares | 11.85 |
Vested (in dollars per share) | $ / shares | 13.68 |
Forfeited (in dollars per share) | $ / shares | 12.73 |
Ending (in dollars per share) | $ / shares | $ 12.45 |
Restricted stock unit | Vesting Contingent on Performance and Service Conditions | |
Restricted Shares | |
Beginning (in shares) | 70,000 |
Granted (in shares) | (85,000) |
Vested (in shares) | 0 |
Forfeited (in shares) | 0 |
Ending (in shares) | 155,000 |
Weighted Average Grant Date Fair Value | |
Beginning (in dollars per share) | $ / shares | $ 13.68 |
Granted (in dollars per share) | $ / shares | 11.85 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending (in dollars per share) | $ / shares | $ 12.68 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Aug. 01, 2022 | Jul. 31, 2022 | |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||
Percentage of dividends payable | 60% | ||||
Payments of dividends by bank | $ 26,300 | $ 56,700 | $ 43,900 | ||
Shares repurchased during period, value | $ 27,558 | $ 129,520 | $ 119,021 | ||
August 2022 Repurchase Plan | |||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||
Share repurchase plan, number of shares authorized to repurchase | 4,000,000 | 7,602,021 | |||
Shares repurchased during period | 2,495,253 | ||||
Shares repurchased during period, value | $ 23,800 | ||||
Shares repurchased average cost per share | $ 9.54 | ||||
Shares authorized to repurchase | 62.40% | ||||
Prior Purchase Plan | |||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||
Shares repurchased during period | 2,820,398 | ||||
Shares repurchased during period, value | $ 27,400 | ||||
Shares repurchased average cost per share | $ 9.73 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Bank's Regulatory Capital Levels (Details) $ in Thousands | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) |
Actual Amount | ||
Total capital (to risk-weighted assets) | $ 770,621 | $ 778,253 |
Tier 1 capital (to risk-weighted assets) | 734,987 | 748,315 |
Common equity tier 1 capital (to risk-weighted assets) | 734,987 | 748,315 |
Tier 1 capital (to adjusted total assets) | $ 734,987 | $ 748,315 |
Actual Ratio | ||
Total capital (to risk-weighted assets) | 0.1475 | 0.1517 |
Tier 1 capital (to risk-weighted assets) | 0.1407 | 0.1458 |
Common equity tier 1 capital (to risk-weighted assets) | 0.1407 | 0.1458 |
Tier 1 capital (to adjusted total assets) | 0.0907 | 0.1014 |
For Capital Adequacy Purposes Amount | ||
Total capital (to risk-weighted assets) | $ 418,015 | $ 410,515 |
Tier 1 capital (to risk-weighted assets) | 313,511 | 307,886 |
Common equity tier 1 capital (to risk-weighted assets) | 235,133 | 230,914 |
Tier 1 capital (to adjusted total assets) | $ 324,170 | $ 295,290 |
For Capital Adequacy Purposes Ratio | ||
Total capital (to risk-weighted assets) | 0.0800 | 0.0800 |
Tier 1 capital (to risk-weighted assets) | 0.0600 | 0.0600 |
Common equity tier 1 capital (to risk-weighted assets) | 0.0450 | 0.0450 |
Tier 1 capital (to adjusted total assets) | 0.0400 | 0.0400 |
Kearny Federal Savings Bank | ||
Actual Amount | ||
Total capital (to risk-weighted assets) | $ 695,417 | $ 672,274 |
Tier 1 capital (to risk-weighted assets) | 659,783 | 642,336 |
Common equity tier 1 capital (to risk-weighted assets) | 659,783 | 642,336 |
Tier 1 capital (to adjusted total assets) | $ 659,783 | $ 642,336 |
Actual Ratio | ||
Total capital (to risk-weighted assets) | 0.1331 | 0.1310 |
Tier 1 capital (to risk-weighted assets) | 0.1263 | 0.1252 |
Common equity tier 1 capital (to risk-weighted assets) | 0.1263 | 0.1252 |
Tier 1 capital (to adjusted total assets) | 0.0815 | 0.0870 |
For Capital Adequacy Purposes Amount | ||
Total capital (to risk-weighted assets) | $ 417,853 | $ 410,429 |
Tier 1 capital (to risk-weighted assets) | 313,389 | 307,822 |
Common equity tier 1 capital (to risk-weighted assets) | 235,042 | 230,866 |
Tier 1 capital (to adjusted total assets) | $ 323,922 | $ 295,163 |
For Capital Adequacy Purposes Ratio | ||
Total capital (to risk-weighted assets) | 0.0800 | 0.0800 |
Tier 1 capital (to risk-weighted assets) | 0.0600 | 0.0600 |
Common equity tier 1 capital (to risk-weighted assets) | 0.0450 | 0.0450 |
Tier 1 capital (to adjusted total assets) | 0.0400 | 0.0400 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | ||
Total capital (to risk-weighted assets) | $ 522,316 | $ 513,036 |
Tier 1 capital (to risk-weighted assets) | 417,853 | 410,429 |
Common equity tier 1 capital (to risk-weighted assets) | 339,505 | 333,473 |
Tier 1 capital (to adjusted total assets) | $ 404,902 | $ 368,954 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | ||
Total capital (to risk-weighted assets) | 0.1000 | 0.1000 |
Tier 1 capital (to risk-weighted assets) | 0.0800 | 0.0800 |
Common equity tier 1 capital (to risk-weighted assets) | 0.0650 | 0.0650 |
Tier 1 capital (to adjusted total assets) | 5% | 5% |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Current income tax expense: | |||
Federal | $ 6,145 | $ 12,720 | $ 12,051 |
State | 2,634 | 7,057 | 5,058 |
Total | 8,779 | 19,777 | 17,109 |
Deferred income tax expense: | |||
Federal | 1,902 | 2,895 | 2,673 |
State | 887 | 2,128 | 2,016 |
Total | 2,789 | 5,023 | 4,689 |
Valuation allowance | 0 | 0 | (535) |
Total income tax expense | $ 11,568 | $ 24,800 | $ 21,263 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||
Bad debt reserve for tax purposes of qualified lender | $ 38,400 | |
Valuation allowances, associated with capital loss carryforwards | $ 535 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes | $ 52,379 | $ 92,347 | $ 84,496 |
Statutory federal tax rate | 21% | 21% | 21% |
Federal income tax expense at statutory rate | $ 11,000 | $ 19,393 | $ 17,744 |
(Reduction) increases in income taxes resulting from: | |||
Tax exempt interest | (143) | (266) | (345) |
State tax, net of federal tax effect | 2,781 | 7,257 | 5,464 |
Incentive stock options compensation expense | 12 | 45 | 85 |
Income from bank-owned life insurance | (1,840) | (1,281) | (1,255) |
Disqualifying disposition on incentive stock options | 0 | 0 | (33) |
Non-deductible merger-related expenses | 0 | 0 | 49 |
Bargain purchase gain | 0 | 0 | (641) |
Other items, net | (242) | (348) | 730 |
Income tax expense benefit before valuation allowance | 11,568 | 24,800 | 21,798 |
Valuation allowance | 0 | 0 | (535) |
Total income tax expense | $ 11,568 | $ 24,800 | $ 21,263 |
Effective income tax rate | 22.09% | 26.86% | 25.16% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Deferred income tax assets: | ||
Deferred income taxes, net | $ 4,098 | $ 6,327 |
Accumulated other comprehensive income: | ||
Defined benefit plans | 0 | 26 |
Unrealized loss on securities available for sale | 45,018 | 34,104 |
Allowance for credit losses | 14,211 | 13,809 |
Benefit plans | 2,603 | 2,494 |
Compensation | 1,440 | 2,023 |
Stock-based compensation | 3,161 | 2,834 |
Uncollected interest | 1,313 | 1,705 |
Depreciation | 2,335 | 1,931 |
Net operating loss carryover | 2 | 4 |
Capital loss carryforward | 191 | 141 |
Other items | 839 | 844 |
Deferred tax assets, gross | 75,211 | 66,242 |
Deferred loan fees and costs | 1,710 | 838 |
Accumulated other comprehensive income: | ||
Derivatives | 16,940 | 11,542 |
Defined benefit plans | 78 | 0 |
Goodwill | 4,510 | 4,510 |
Other items | 0 | 2 |
Deferred tax liabilities, gross | 23,238 | 16,892 |
Net deferred income tax asset | $ 51,973 | $ 49,350 |
Commitments (Details)
Commitments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Commitments [Line Items] | ||
Commitments to originate loans | $ 251,200 | $ 510,500 |
Credit Risk Contract | ||
Commitments [Line Items] | ||
Pipeline of loans held-for-sale | 11,700 | 20,300 |
Standby Letters of Credit | ||
Commitments [Line Items] | ||
Other commitment | $ 115 | $ 130 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Assets: | ||
Investment securities available for sale | $ 1,227,729 | $ 1,344,093 |
Interest rate contracts | 71,624 | 41,223 |
Total assets | 1,299,353 | 1,385,316 |
Debt Securities | ||
Assets: | ||
Investment securities available for sale | 648,184 | 656,202 |
Obligations of state and political subdivisions | ||
Assets: | ||
Investment securities available for sale | 28,435 | |
Asset-backed securities | ||
Assets: | ||
Investment securities available for sale | 136,170 | 166,557 |
Collateralized loan obligations | ||
Assets: | ||
Investment securities available for sale | 376,996 | 307,813 |
Corporate bonds | ||
Assets: | ||
Investment securities available for sale | 135,018 | 153,397 |
Mortgage-backed securities: | ||
Assets: | ||
Investment securities available for sale | 579,545 | 687,891 |
Collateralized mortgage obligations | ||
Assets: | ||
Investment securities available for sale | 7,122 | |
Residential pass-through securities | ||
Assets: | ||
Investment securities available for sale | 436,151 | 514,758 |
Commercial pass-through securities | ||
Assets: | ||
Investment securities available for sale | 143,394 | 166,011 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Interest rate contracts | 0 | 0 |
Total assets | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Debt Securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of state and political subdivisions | ||
Assets: | ||
Investment securities available for sale | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized loan obligations | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities: | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized mortgage obligations | ||
Assets: | ||
Investment securities available for sale | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential pass-through securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial pass-through securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investment securities available for sale | 1,227,729 | 1,344,093 |
Interest rate contracts | 71,624 | 41,223 |
Total assets | 1,299,353 | 1,385,316 |
Significant Other Observable Inputs (Level 2) | Debt Securities | ||
Assets: | ||
Investment securities available for sale | 648,184 | 656,202 |
Significant Other Observable Inputs (Level 2) | Obligations of state and political subdivisions | ||
Assets: | ||
Investment securities available for sale | 28,435 | |
Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Assets: | ||
Investment securities available for sale | 136,170 | 166,557 |
Significant Other Observable Inputs (Level 2) | Collateralized loan obligations | ||
Assets: | ||
Investment securities available for sale | 376,996 | 307,813 |
Significant Other Observable Inputs (Level 2) | Corporate bonds | ||
Assets: | ||
Investment securities available for sale | 135,018 | 153,397 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed securities: | ||
Assets: | ||
Investment securities available for sale | 579,545 | 687,891 |
Significant Other Observable Inputs (Level 2) | Collateralized mortgage obligations | ||
Assets: | ||
Investment securities available for sale | 7,122 | |
Significant Other Observable Inputs (Level 2) | Residential pass-through securities | ||
Assets: | ||
Investment securities available for sale | 436,151 | 514,758 |
Significant Other Observable Inputs (Level 2) | Commercial pass-through securities | ||
Assets: | ||
Investment securities available for sale | 143,394 | 166,011 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Interest rate contracts | 0 | 0 |
Total assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Debt Securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Obligations of state and political subdivisions | ||
Assets: | ||
Investment securities available for sale | 0 | |
Significant Unobservable Inputs (Level 3) | Asset-backed securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Collateralized loan obligations | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate bonds | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Mortgage-backed securities: | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Collateralized mortgage obligations | ||
Assets: | ||
Investment securities available for sale | 0 | |
Significant Unobservable Inputs (Level 3) | Residential pass-through securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commercial pass-through securities | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Interest rate contracts | ||
Assets: | ||
Interest rate contracts | 71,624 | 41,223 |
Interest rate contracts | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Interest rate contracts | 0 | 0 |
Interest rate contracts | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Interest rate contracts | 71,624 | 41,223 |
Interest rate contracts | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Interest rate contracts | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Schedule of Assets and Liabilities Measured at Fair Value on a Non-recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | $ 1,299,353 | $ 1,385,316 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 17,721 | 21,031 |
Fair Value, Measurements, Nonrecurring | Residential mortgage | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Net loans receivable | 449 | 2,035 |
Total assets | 178 | |
Fair Value, Measurements, Nonrecurring | Commercial loans | Multi-family mortgage | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Net loans receivable | 7,300 | 7,517 |
Fair Value, Measurements, Nonrecurring | Commercial loans | Nonresidential mortgage | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Net loans receivable | 9,972 | 11,479 |
Total assets | 12,956 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Nonrecurring | Residential mortgage | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Net loans receivable | 0 | 0 |
Total assets | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Nonrecurring | Commercial loans | Multi-family mortgage | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Net loans receivable | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Nonrecurring | Commercial loans | Nonresidential mortgage | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Net loans receivable | 0 | 0 |
Total assets | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 1,299,353 | 1,385,316 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring | Residential mortgage | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Net loans receivable | 0 | 0 |
Total assets | 0 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring | Commercial loans | Multi-family mortgage | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Net loans receivable | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring | Commercial loans | Nonresidential mortgage | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Net loans receivable | 0 | 0 |
Total assets | 0 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Net loans receivable | 17,721 | |
Total assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Net loans receivable | 21,031 | |
Total assets | 17,721 | 21,031 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | Residential mortgage | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Net loans receivable | 449 | 2,035 |
Total assets | 178 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | Commercial loans | Multi-family mortgage | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Net loans receivable | 7,300 | 7,517 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | Commercial loans | Nonresidential mortgage | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Net loans receivable | 9,972 | $ 11,479 |
Total assets | $ 12,956 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Quantitative Information on Assed Value, Non Recurring (Details) $ in Thousands | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other real estate owned | $ 12,956 | $ 178 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans, fair value | 17,721 | |
Other real estate owned | 12,956 | 178 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans, fair value | 21,031 | |
Residential mortgage | Fair Value, Measurements, Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans, fair value | 449 | 2,035 |
Residential mortgage | Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans, fair value | 449 | 2,035 |
Measurement Input, Cost to Sell | Residential mortgage | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans, fair value | $ 449 | 2,035 |
Other real estate owned | $ 178 | |
Collateral dependent loans, measurement input | 0.0693 | |
Other real estate owned, measurement input | 0.0600 | |
Measurement Input, Cost to Sell | Commercial business | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other real estate owned, measurement input | 0.0400 | |
Measurement Input, Cost to Sell | Commercial business | Multi-family mortgage | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans, fair value | $ 7,300 | $ 7,517 |
Measurement Input, Cost to Sell | Commercial business | Nonresidential mortgage | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans, fair value | 9,972 | $ 11,479 |
Other real estate owned | $ 12,956 | |
Minimum | Commercial business | Multi-family mortgage | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans, measurement input | 0.10 | |
Minimum | Commercial business | Nonresidential mortgage | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans, measurement input | 0.09 | |
Minimum | Measurement Input, Cost to Sell | Residential mortgage | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans, measurement input | 0.07 | |
Minimum | Measurement Input, Cost to Sell | Commercial business | Multi-family mortgage | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans, measurement input | 0.06 | |
Minimum | Measurement Input, Cost to Sell | Commercial business | Nonresidential mortgage | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans, measurement input | 0.09 | |
Maximum | Commercial business | Multi-family mortgage | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans, measurement input | 0.12 | |
Maximum | Commercial business | Nonresidential mortgage | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans, measurement input | 0.18 | |
Maximum | Measurement Input, Cost to Sell | Residential mortgage | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans, measurement input | 0.10 | |
Maximum | Measurement Input, Cost to Sell | Commercial business | Multi-family mortgage | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans, measurement input | 0.09 | |
Maximum | Measurement Input, Cost to Sell | Commercial business | Nonresidential mortgage | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans, measurement input | 0.16 | |
Weighted Average | Measurement Input, Cost to Sell | Residential mortgage | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans, measurement input | 0.0693 | 0.0897 |
Other real estate owned, measurement input | 0.0600 | |
Weighted Average | Measurement Input, Cost to Sell | Commercial business | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other real estate owned, measurement input | 0.0400 | |
Weighted Average | Measurement Input, Cost to Sell | Commercial business | Multi-family mortgage | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans, measurement input | 0.0778 | 0.1106 |
Weighted Average | Measurement Input, Cost to Sell | Commercial business | Nonresidential mortgage | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans, measurement input | 0.1178 | 0.1272 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Loans receivable | $ 5,829,421 | $ 5,417,845 | ||
Loans acquired with deteriorated credit quality | 48,734 | 47,058 | $ 58,165 | $ 37,327 |
Other real estate owned | 12,956 | 178 | ||
Significant Unobservable Inputs (Level 3) | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Collateral dependent loans, fair value | 17,721 | |||
Other real estate owned | 12,956 | 178 | ||
Significant Unobservable Inputs (Level 3) | Real Estate | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Loans receivable | 21,000 | 24,600 | ||
Loans acquired with deteriorated credit quality | 3,300 | 3,600 | ||
Collateral dependent loans, fair value | $ 17,700 | 21,000 | ||
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Collateral dependent loans, fair value | $ 21,031 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Schedule of Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | $ 1,227,729 | $ 1,344,093 |
Investment securities held to maturity | 146,465 | 118,291 |
Loans held-for-sale | 9,591 | 28,874 |
Net loans receivable | 5,780,687 | 5,370,787 |
Interest receivable | $ 28,133 | 20,466 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | |
Interest rate contracts | $ 71,624 | 41,223 |
Interest payable on deposits | 4,893 | 575 |
Interest payable on borrowings | 5,282 | 1,611 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 70,515 | 101,615 |
Investment securities available for sale | 0 | 0 |
Investment securities held to maturity | 0 | 0 |
Loans held-for-sale | 0 | 0 |
Net loans receivable | 0 | 0 |
FHLB Stock | 0 | 0 |
Interest receivable | 14 | 2 |
Interest rate contracts | 0 | 0 |
Borrowings | 0 | 0 |
Interest payable on deposits | 1,933 | 147 |
Interest payable on borrowings | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Deposits | 3,611,632 | 3,972,694 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Certificates of deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Deposits | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Investment securities available for sale | 1,227,729 | 1,344,093 |
Investment securities held to maturity | 131,169 | 108,118 |
Loans held-for-sale | 9,442 | 28,831 |
Net loans receivable | 0 | 0 |
FHLB Stock | 0 | 0 |
Interest receivable | 8,924 | 5,210 |
Interest rate contracts | 71,624 | 41,223 |
Borrowings | 0 | 0 |
Interest payable on deposits | 0 | 0 |
Interest payable on borrowings | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Deposits | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Certificates of deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Deposits | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Investment securities available for sale | 0 | 0 |
Investment securities held to maturity | 0 | 0 |
Loans held-for-sale | 0 | 0 |
Net loans receivable | 5,261,808 | 5,215,079 |
FHLB Stock | 0 | 0 |
Interest receivable | 19,195 | 15,254 |
Interest rate contracts | 0 | 0 |
Borrowings | 1,498,920 | 900,505 |
Significant Unobservable Inputs (Level 3) | Deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Deposits | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Certificates of deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Deposits | 1,989,434 | 1,866,341 |
Carrying Amount | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 70,515 | 101,615 |
Investment securities available for sale | 1,227,729 | 1,344,093 |
Investment securities held to maturity | 146,465 | 118,291 |
Loans held-for-sale | 9,591 | 28,874 |
Net loans receivable | 5,780,687 | 5,370,787 |
FHLB Stock | 71,734 | 47,144 |
Interest receivable | 28,133 | 20,466 |
Interest rate contracts | 71,624 | 41,223 |
Borrowings | 1,506,812 | 901,337 |
Interest payable on deposits | 6,826 | 722 |
Interest payable on borrowings | 5,282 | 1,611 |
Carrying Amount | Deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Deposits | 3,611,632 | 3,972,694 |
Carrying Amount | Certificates of deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Deposits | 2,017,551 | 1,889,562 |
Fair Value | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 70,515 | 101,615 |
Investment securities available for sale | 1,227,729 | 1,344,093 |
Investment securities held to maturity | 131,169 | 108,118 |
Loans held-for-sale | 9,442 | 28,831 |
Net loans receivable | 5,261,808 | 5,215,079 |
FHLB Stock | 0 | 0 |
Interest receivable | 28,133 | 20,466 |
Interest rate contracts | 71,624 | 41,223 |
Borrowings | 1,498,920 | 900,505 |
Interest payable on deposits | 6,826 | 722 |
Interest payable on borrowings | 5,282 | 1,611 |
Fair Value | Deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Deposits | 3,611,632 | 3,972,694 |
Fair Value | Certificates of deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Deposits | $ 1,989,434 | $ 1,866,341 |
Comprehensive Income - Schedule
Comprehensive Income - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Total Stockholders' Equity | $ 869,284 | $ 894,000 | $ 1,042,944 | $ 1,084,177 |
Total accumulated other comprehensive loss | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Total Stockholders' Equity | (69,456) | (55,727) | $ 6,144 | $ 1,257 |
Net unrealized loss on securities available for sale | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
AOCI before tax, attributable to parent | (156,138) | (118,031) | ||
Tax effect | 45,018 | 34,104 | ||
Total Stockholders' Equity | (111,120) | (83,927) | ||
Fair value adjustments on derivatives | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
AOCI before tax, attributable to parent | 58,414 | 39,805 | ||
Tax effect | (16,940) | (11,542) | ||
Total Stockholders' Equity | 41,474 | 28,263 | ||
Benefit plan adjustments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
AOCI before tax, attributable to parent | 268 | (89) | ||
Tax effect | (78) | 26 | ||
Total Stockholders' Equity | $ 190 | $ (63) |
Comprehensive Income - Schedu_2
Comprehensive Income - Schedule of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before taxes | $ (19,141) | $ (86,921) | $ 6,954 |
Tax effect | 5,412 | 25,050 | (2,067) |
Total Other Comprehensive (Loss) Income | (13,729) | (61,871) | 4,887 |
Net unrealized loss on securities available for sale | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
OCI, before reclassifications, before tax | (53,334) | (128,601) | (11,704) |
Reclassification from AOCI, before tax | 15,227 | 559 | (767) |
Fair value adjustments on derivatives | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
OCI, before reclassifications, before tax | 18,609 | 40,117 | 19,106 |
Benefit plan adjustments | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before taxes | 357 | 1,004 | 319 |
Net actuarial gain | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
OCI, before reclassifications, before tax | 24 | (80) | (83) |
Reclassification from AOCI, before tax | $ (381) | $ (924) | $ (236) |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Non-Interest Income | |||
(Loss) gain on sale and call of securities | $ (15,227) | $ (559) | $ 767 |
(Loss) gain on sale of loans | (1,645) | 2,539 | 5,574 |
(Loss) gain on sale of other real estate owned | (139) | 5 | 0 |
Income from bank owned life insurance | 8,645 | 6,167 | 6,267 |
Bargain purchase gain | 0 | 0 | 3,053 |
Total Non-Interest Income | 2,751 | 13,934 | 21,026 |
Deposit-related fees and charges | |||
Non-Interest Income | |||
Fees and service charges | 1,881 | 1,733 | 1,412 |
Loan-related fees and charges | |||
Non-Interest Income | |||
Loan-related fees and charges | 1,225 | 847 | 485 |
Electronic banking fees and charges (interchange income) | |||
Non-Interest Income | |||
Fees and service charges | 1,759 | 1,626 | 1,717 |
Miscellaneous | |||
Non-Interest Income | |||
Loan-related fees and charges | $ 6,252 | $ 1,576 | $ 1,751 |
Parent Only Financial Informa_3
Parent Only Financial Information - Condensed Statements of Financial Condition (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Assets | ||||
Cash and amounts due from depository institutions | $ 21,795 | $ 26,094 | ||
Net loans receivable | 5,780,687 | 5,370,787 | ||
Other assets | 110,546 | 82,712 | ||
Total Assets | 8,064,815 | 7,719,883 | ||
Liabilities and Stockholders' Equity | ||||
Other liabilities | 41,198 | 45,544 | ||
Stockholders' equity | 869,284 | 894,000 | $ 1,042,944 | $ 1,084,177 |
Total Liabilities and Stockholders' Equity | 8,064,815 | 7,719,883 | ||
Parent Company | ||||
Assets | ||||
Cash and amounts due from depository institutions | 48,839 | 77,750 | ||
Net loans receivable | 26,384 | 28,201 | ||
Investment in subsidiary | 794,080 | 788,021 | ||
Other assets | 827 | 448 | ||
Total Assets | 870,130 | 894,420 | ||
Liabilities and Stockholders' Equity | ||||
Other liabilities | 846 | 420 | ||
Stockholders' equity | 869,284 | 894,000 | ||
Total Liabilities and Stockholders' Equity | $ 870,130 | $ 894,420 |
Parent Only Financial Informa_4
Parent Only Financial Information - Condensed Statements of Income and Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Condensed Financial Statements, Captions [Line Items] | |||
Interest income | $ 293,724 | $ 226,272 | $ 238,085 |
Directors' compensation | 1,364 | 2,132 | 2,993 |
Income before Income Taxes | 52,379 | 92,347 | 84,496 |
Income tax expense | 11,568 | 24,800 | 21,263 |
Net Income | 40,811 | 67,547 | 63,233 |
Comprehensive income | 27,082 | 5,676 | 68,120 |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends from subsidiary | 26,282 | 156,728 | 178,918 |
Interest income | 1,749 | 1,508 | 1,993 |
Equity in undistributed earnings of subsidiaries | 14,912 | (88,452) | (114,969) |
Total income | 42,943 | 69,784 | 65,942 |
Directors' compensation | 532 | 530 | 308 |
Other expenses | 1,715 | 1,976 | 2,660 |
Total expense | 2,247 | 2,506 | 2,968 |
Income before Income Taxes | 40,696 | 67,278 | 62,974 |
Income tax expense | (115) | (269) | (259) |
Net Income | 40,811 | 67,547 | 63,233 |
Comprehensive income | $ 27,082 | $ 5,676 | $ 68,120 |
Parent Only Financial Informa_5
Parent Only Financial Information - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash Flows from Operating Activities: | |||
Net Income | $ 40,811 | $ 67,547 | $ 63,233 |
Adjustment to reconcile net income to net cash provided by operating activities: | |||
Decrease (increase) in other assets | 2,833 | 7,922 | (4,454) |
(Decrease) increase in other liabilities | (14,530) | (8,306) | 17,295 |
Net Cash Provided by Operating Activities | 69,549 | 81,301 | 75,417 |
Cash Flows from Investing Activities: | |||
Proceeds from the maturity of investment securities available for sale | 124,687 | 330,152 | 517,511 |
Net cash acquired in acquisition | 0 | 0 | 4,296 |
Net Cash Used in Investing Activities | (417,918) | (479,951) | (83,971) |
Cash Flows from Financing Activities: | |||
Exercise of stock options | 0 | 0 | 373 |
Dividends paid | (28,499) | (30,693) | (28,648) |
Repurchase and cancellation of common stock of Kearny Financial Corp. | (27,558) | (129,520) | (119,021) |
Cancellation of shares repurchased on vesting to pay taxes | (462) | (977) | (803) |
Net Cash Provided by (Used in) Financing Activities | 317,269 | 432,410 | (104,558) |
Net (Decrease) Increase in Cash and Cash Equivalents | (31,100) | 33,760 | (113,112) |
Cash and Cash Equivalents - Beginning | 101,615 | ||
Cash and Cash Equivalents - Ending | 70,515 | 101,615 | |
Parent Company | |||
Cash Flows from Operating Activities: | |||
Net Income | 40,811 | 67,547 | 63,233 |
Adjustment to reconcile net income to net cash provided by operating activities: | |||
Equity in undistributed earnings of subsidiaries | (14,912) | 88,452 | 114,969 |
Decrease (increase) in other assets | (379) | 176 | 484 |
(Decrease) increase in other liabilities | 271 | (184) | 160 |
Net Cash Provided by Operating Activities | 25,791 | 155,991 | 178,846 |
Cash Flows from Investing Activities: | |||
Repayment of loan to ESOP | 1,817 | 1,758 | 1,702 |
Proceeds from the maturity of investment securities available for sale | 0 | 15,000 | 0 |
Net cash acquired in acquisition | 0 | 0 | (9,008) |
Other, net | 0 | 0 | 118 |
Net Cash Used in Investing Activities | 1,817 | 16,758 | (7,188) |
Cash Flows from Financing Activities: | |||
Exercise of stock options | 0 | 0 | 373 |
Dividends paid | (28,499) | (30,693) | (28,648) |
Repurchase and cancellation of common stock of Kearny Financial Corp. | (27,558) | (129,520) | (119,021) |
Cancellation of shares repurchased on vesting to pay taxes | (462) | (977) | (803) |
Net Cash Provided by (Used in) Financing Activities | (56,519) | (161,190) | (148,099) |
Net (Decrease) Increase in Cash and Cash Equivalents | (28,911) | 11,559 | 23,559 |
Cash and Cash Equivalents - Beginning | 77,750 | 66,191 | 42,632 |
Cash and Cash Equivalents - Ending | $ 48,839 | $ 77,750 | $ 66,191 |
Net Income per Common Share (_3
Net Income per Common Share (EPS) - Schedule of Earnings Per Share Calculations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |||
Net Income | $ 40,811 | $ 67,547 | $ 63,233 |
Weighted average number of shares outstanding, basic (in shares) | 64,804 | 70,911 | 82,387 |
Effect of dilutive securities | 0 | 22 | 4 |
Weighted average number of common shares outstanding, diluted (in shares) | 64,804 | 70,933 | 82,391 |
Basic earnings per share (in dollars per share) | $ 0.63 | $ 0.95 | $ 0.77 |
Diluted earnings per share (in dollars per share) | $ 0.63 | $ 0.95 | $ 0.77 |
Net Income per Common Share (_4
Net Income per Common Share (EPS) - Additional Information (Details) - shares | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Stock Options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Number of stock options anti-dilutive (in shares) | 2,983,530 | 3,115,000 | 3,246,138 |
Restricted stock | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Number of stock options anti-dilutive (in shares) | 497,664 | 251,905 |
Uncategorized Items - krny-2023
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |