x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 33-0867444 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
12777 High Bluff Drive, Suite 100, San Diego, CA | 92130 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer o | Accelerated filer x | Non-accelerated filer ¨ | Smaller reporting company o |
Page | |
SIGNATURES |
ITEM 1. | FINANCIAL STATEMENTS |
March 31, 2012 | June 30, 2011 | ||||||
ASSETS | |||||||
Cash and due from banks | $ | 7,933 | $ | 5,820 | |||
Federal funds sold | 17,925 | 3,232 | |||||
Total cash and cash equivalents | 25,858 | 9,052 | |||||
Securities: | |||||||
Trading | 5,983 | 5,053 | |||||
Available for sale | 170,397 | 145,671 | |||||
Held to maturity (fair value $349,725 as of March 2012, $387,286 as of June 2011) | 328,528 | 370,626 | |||||
Stock of the Federal Home Loan Bank, at cost | 16,873 | 15,463 | |||||
Loans held for sale, carried at fair value | 44,286 | 20,110 | |||||
Loans held for sale, lower of cost or fair value | 45,329 | — | |||||
Loans—net of allowance for loan losses of $8,355 (March 2012) and $7,419 (June 2011) | 1,595,704 | 1,325,101 | |||||
Accrued interest receivable | 7,599 | 6,577 | |||||
Furniture, equipment and software—net | 4,065 | 3,153 | |||||
Deferred income tax | 9,475 | 9,719 | |||||
Cash surrender value of life insurance | 5,221 | 5,087 | |||||
Other real estate owned and repossessed vehicles | 1,364 | 9,604 | |||||
Other assets | 17,348 | 14,871 | |||||
TOTAL ASSETS | $ | 2,278,030 | $ | 1,940,087 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Deposits: | |||||||
Non-interest bearing | $ | 11,363 | $ | 7,369 | |||
Interest bearing | 1,564,110 | 1,332,956 | |||||
Total deposits | 1,575,473 | 1,340,325 | |||||
Securities sold under agreements to repurchase | 120,000 | 130,000 | |||||
Advances from the Federal Home Loan Bank | 359,000 | 305,000 | |||||
Subordinated debentures and other borrowings | 5,155 | 7,655 | |||||
Accrued interest payable | 1,940 | 2,237 | |||||
Accounts payable and accrued liabilities | 13,223 | 7,104 | |||||
Total liabilities | 2,074,791 | 1,792,321 | |||||
COMMITMENTS AND CONTINGENCIES (Note 8) | |||||||
STOCKHOLDERS’ EQUITY: | |||||||
Preferred stock— $0.01 par value; 1,000,000 shares authorized; | |||||||
Series A—$10,000 stated value and liquidation preference per share; 515 (March 2012) and 515 (June 2011) shares issued and outstanding | 5,063 | 5,063 | |||||
Series B—$1,000 stated value and liquidation preference per share; 22,000 shares authorized; 20,132 (March 2012) shares issued and outstanding | 19,439 | — | |||||
Common stock—$0.01 par value; 25,000,000 shares authorized; 12,174,770 shares issued and 11,430,145 shares outstanding (March 2012); 11,151,963 shares issued and 10,436,332 shares outstanding (June 2011); | 122 | 112 | |||||
Additional paid-in capital | 104,487 | 88,343 | |||||
Accumulated other comprehensive loss—net of tax | (696 | ) | (971 | ) | |||
Retained earnings | 80,170 | 60,152 | |||||
Treasury stock, at cost; 744,625 shares (March 2012) and 715,631 shares (June 2011) | (5,346 | ) | (4,933 | ) | |||
Total stockholders’ equity | 203,239 | 147,766 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 2,278,030 | $ | 1,940,087 |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
INTEREST AND DIVIDEND INCOME: | |||||||||||||||
Loans, including fees | $ | 22,898 | $ | 15,811 | $ | 65,503 | $ | 42,900 | |||||||
Investments | 6,450 | 8,117 | 20,226 | 24,703 | |||||||||||
Total interest and dividend income | 29,348 | 23,928 | 85,729 | 67,603 | |||||||||||
INTEREST EXPENSE: | |||||||||||||||
Deposits | 6,179 | 5,716 | 19,277 | 16,258 | |||||||||||
Advances from the Federal Home Loan Bank | 1,451 | 1,459 | 4,506 | 4,828 | |||||||||||
Other borrowings | 1,383 | 1,450 | 4,348 | 4,417 | |||||||||||
Total interest expense | 9,013 | 8,625 | 28,131 | 25,503 | |||||||||||
Net interest income | 20,335 | 15,303 | 57,598 | 42,100 | |||||||||||
Provision for loan losses | 2,000 | 1,150 | 5,963 | 4,350 | |||||||||||
Net interest income, after provision for loan losses | 18,335 | 14,153 | 51,635 | 37,750 | |||||||||||
NON-INTEREST INCOME: | |||||||||||||||
Realized gain on securities: | |||||||||||||||
Sale of mortgage-backed securities | — | 1,478 | — | 1,960 | |||||||||||
Total realized gain on securities | — | 1,478 | — | 1,960 | |||||||||||
Other-than-temporary loss on securities: | |||||||||||||||
Total impairment losses | (1,211 | ) | (1,504 | ) | (2,643 | ) | (4,733 | ) | |||||||
Loss recognized in other comprehensive income (loss) | — | 1,331 | 120 | 3,678 | |||||||||||
Net impairment loss recognized in earnings | (1,211 | ) | (173 | ) | (2,523 | ) | (1,055 | ) | |||||||
Fair value gain on trading securities | 305 | 42 | 930 | 67 | |||||||||||
Total unrealized loss on securities | (906 | ) | (131 | ) | (1,593 | ) | (988 | ) | |||||||
Prepayment penalty fee income | 189 | 25 | 315 | 1,025 | |||||||||||
Mortgage banking income | 4,399 | 444 | 12,215 | 3,630 | |||||||||||
Banking service fees and other income | 174 | 108 | 475 | 346 | |||||||||||
Total non-interest income | 3,856 | 1,924 | 11,412 | 5,973 | |||||||||||
NON-INTEREST EXPENSE: | |||||||||||||||
Salaries, employee benefits and stock-based compensation | 5,270 | 3,833 | 14,952 | 10,240 | |||||||||||
Professional services | 365 | 525 | 1,542 | 1,544 | |||||||||||
Occupancy and equipment | 301 | 257 | 856 | 606 | |||||||||||
Data processing and internet | 666 | 216 | 1,649 | 693 | |||||||||||
Advertising and promotional | 788 | 261 | 1,852 | 592 | |||||||||||
Depreciation and amortization | 347 | 181 | 977 | 364 | |||||||||||
Real estate owned and repossessed vehicles | (25 | ) | 796 | 2,003 | 1,248 | ||||||||||
FDIC and regulator fees | 422 | 559 | 1,088 | 1,474 | |||||||||||
Other general and administrative | 1,056 | 801 | 3,027 | 2,107 | |||||||||||
Total non-interest expense | 9,190 | 7,429 | 27,946 | 18,868 | |||||||||||
INCOME BEFORE INCOME TAXES | 13,001 | 8,648 | 35,101 | 24,855 | |||||||||||
INCOME TAXES | 5,283 | 3,373 | 14,190 | 9,819 | |||||||||||
NET INCOME | $ | 7,718 | $ | 5,275 | $ | 20,911 | $ | 15,036 | |||||||
NET INCOME ATTRIBUTABLE TO COMMON STOCK | $ | 7,331 | $ | 5,198 | $ | 20,018 | $ | 14,804 | |||||||
COMPREHENSIVE INCOME | $ | 6,139 | $ | 3,437 | $ | 21,186 | $ | 10,270 | |||||||
Basic earnings per share | $ | 0.62 | $ | 0.48 | $ | 1.72 | $ | 1.38 | |||||||
Diluted earnings per share | $ | 0.58 | $ | 0.48 | $ | 1.68 | $ | 1.37 |
Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss Net of Income Tax | Treasury Stock | Comprehensive Income | Total | ||||||||||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Issued | Treasury | Outstanding | Amount | ||||||||||||||||||||||||||||||||||||||
BALANCE—July 1, 2011 | 515 | $ | 5,063 | 11,151,963 | (715,631 | ) | 10,436,332 | $ | 112 | $ | 88,343 | $ | 60,152 | $ | (971 | ) | $ | (4,933 | ) | $ | 147,766 | ||||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | 20,911 | — | — | $ | 20,911 | 20,911 | ||||||||||||||||||||||||||||||
Net unrealized gain from investment securities—net of income tax expense | — | — | — | — | — | — | — | — | 275 | — | 275 | 275 | |||||||||||||||||||||||||||||||
Total comprehensive income | $ | 21,186 | |||||||||||||||||||||||||||||||||||||||||
Cash dividends on preferred stock | — | — | — | — | — | — | — | (893 | ) | — | — | (893 | ) | ||||||||||||||||||||||||||||||
Issuance of convertible preferred stock | 20,182 | 19,487 | — | — | — | — | — | — | — | — | 19,487 | ||||||||||||||||||||||||||||||||
Issuance of common stock | — | — | 862,500 | — | 862,500 | 9 | 13,335 | — | — | — | 13,344 | ||||||||||||||||||||||||||||||||
Convert preferred stock to common stock | (50 | ) | (48 | ) | 3,096 | 3,096 | 1 | 47 | — | ||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | 1,850 | — | — | — | 1,850 | ||||||||||||||||||||||||||||||||
Restricted stock grants | — | — | 87,889 | (28,994 | ) | 58,895 | — | 167 | — | — | (413 | ) | (246 | ) | |||||||||||||||||||||||||||||
Stock option exercises and tax benefits of equity compensation | — | — | 69,322 | — | 69,322 | — | 745 | — | — | — | 745 | ||||||||||||||||||||||||||||||||
BALANCE—March 31, 2012 | 20,647 | $ | 24,502 | 12,174,770 | (744,625 | ) | 11,430,145 | $ | 122 | $ | 104,487 | $ | 80,170 | $ | (696 | ) | $ | (5,346 | ) | $ | 203,239 |
Nine Months Ended | |||||||
March 31, | |||||||
2012 | 2011 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 20,911 | $ | 15,036 | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Accretion of discounts on securities | (8,830 | ) | (13,084 | ) | |||
Net accretion of discounts on loans | (1,232 | ) | (3,358 | ) | |||
Amortization of borrowing costs | — | 1 | |||||
Stock-based compensation expense | 1,850 | 1,536 | |||||
Valuation of financial instruments carried at fair value | (930 | ) | (67 | ) | |||
Net gain on sale of investment securities | — | (1,960 | ) | ||||
Impairment charge on securities | 2,523 | 1,055 | |||||
Provision for loan losses | 5,963 | 4,350 | |||||
Deferred income taxes | 1,276 | (1,194 | ) | ||||
Origination of loans held for sale | (497,578 | ) | (162,991 | ) | |||
Unrealized gain on loans held for sale | (533 | ) | (73 | ) | |||
Gain on sales of loans held for sale | (11,682 | ) | (3,557 | ) | |||
Proceeds from sale of loans held for sale | 437,865 | 168,480 | |||||
Loss on sale of other real estate and foreclosed assets | 1,802 | 1,159 | |||||
Depreciation and amortization of furniture, equipment and software | 977 | 364 | |||||
Net changes in assets and liabilities which provide (use) cash: | |||||||
Accrued interest receivable | (1,022 | ) | (674 | ) | |||
Other assets | (4,408 | ) | 2,800 | ||||
Accrued interest payable | (297 | ) | 116 | ||||
Accounts payable and accrued liabilities | 5,404 | 1,857 | |||||
Net cash provided by (used) in operating activities | $ | (47,941 | ) | $ | 9,796 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchases of investment securities | (72,605 | ) | (284,033 | ) | |||
Proceeds from sale of available for sale mortgage-backed-securities | — | 8,910 | |||||
Proceeds from repayment of securities | 96,742 | 303,710 | |||||
Purchase of stock of Federal Home Loan Bank | (3,656 | ) | — | ||||
Proceeds from redemption of stock of Federal Home Loan Bank | 2,246 | 2,061 | |||||
Origination of loans, net | (530,091 | ) | (361,126 | ) | |||
Proceeds from sale of loans held for investment | 83,985 | — | |||||
Proceeds from sales of repossessed assets | 7,284 | 3,198 | |||||
Purchases of loans, net of discounts and premiums | — | (110,682 | ) | ||||
Principal repayments on loans | 172,931 | 121,917 | |||||
Net purchases of furniture, equipment and software | (1,889 | ) | (2,592 | ) | |||
Net cash used in investing activities | $ | (245,053 | ) | $ | (318,637 | ) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Net increase in deposits | 235,148 | 297,617 | |||||
Proceeds from the Federal Home Loan Bank advances | 130,000 | 164,000 | |||||
Repayment of the Federal Home Loan Bank advances | (76,000 | ) | (161,000 | ) | |||
Repayment of other borrowings and securities sold under agreements to repurchase | (12,500 | ) | — | ||||
Proceeds from exercise of common stock options | 676 | 573 | |||||
Proceeds from issuance of common stock | 13,344 | 2 | |||||
Proceeds from issuance of preferred stock | 19,487 | — | |||||
Tax benefit from exercise of common stock options and vesting of restricted stock grants | 236 | 357 | |||||
Cash dividends on preferred stock | (591 | ) | (232 | ) | |||
Net cash provided by financing activities | 309,800 | 301,317 | |||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 16,806 | (7,524 | ) | ||||
CASH AND CASH EQUIVALENTS—Beginning of year | 9,052 | 18,205 | |||||
CASH AND CASH EQUIVALENTS—End of period | $ | 25,858 | $ | 10,681 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||
Interest paid on deposits and borrowed funds | $ | 28,427 | $ | 25,595 | |||
Income taxes paid | $ | 12,039 | $ | 11,293 | |||
Transfers to other real estate and repossessed vehicles | $ | 846 | $ | 10,356 | |||
Transfers from loans held for investment to loans held for sale | $ | 85,825 | $ | — | |||
Transfers from loans held for sale to loans held for investment | $ | 4,796 | $ | — | |||
Preferred stock dividends declared but not paid | $ | 302 | $ | — |
1. | BASIS OF PRESENTATION |
2. | SIGNIFICANT ACCOUNTING POLICIES |
3. | FAIR VALUE |
Level 1: | Quoted prices in active markets for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 1 assets and liabilities include debt and equity securities that are actively traded in an exchange or over-the-counter market and are highly liquid, such as, among other assets and securities, certain U.S. treasury and other U.S Government and agency mortgage-backed debt. |
Level 2: | Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets include securities with quoted prices that are traded less frequently than exchange-traded instruments and whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. |
Level 3: | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models such as discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
March 31, 2012 | |||||||||||||||
ASSETS: | |||||||||||||||
Securities—Trading: Collateralized Debt Obligations | $ | — | $ | — | $ | 5,983 | $ | 5,983 | |||||||
Securities—Available for Sale: | |||||||||||||||
Agency Debt | — | 10,037 | — | 10,037 | |||||||||||
Agency RMBS | — | 62,497 | — | 62,497 | |||||||||||
Non-Agency RMBS | — | — | 90,419 | 90,419 | |||||||||||
Non-Agency Other | — | 7,444 | — | 7,444 | |||||||||||
Total—Securities—Available for Sale | $ | — | $ | 79,978 | $ | 90,419 | $ | 170,397 | |||||||
Loans Held for Sale | $ | — | $ | 44,286 | $ | — | $ | 44,286 | |||||||
Other assets—Derivative instruments | $ | — | $ | — | $ | 971 | $ | 971 | |||||||
LIABILITIES: | |||||||||||||||
Other liabilities—Derivative instruments | $ | — | $ | — | $ | — | $ | — | |||||||
June 30, 2011 | |||||||||||||||
ASSETS: | |||||||||||||||
Securities—Trading: Collateralized Debt Obligations | $ | — | $ | — | $ | 5,053 | $ | 5,053 | |||||||
Securities—Available for Sale: | |||||||||||||||
Agency Debt | $ | — | $ | — | $ | — | $ | — | |||||||
Agency RMBS | — | 61,919 | — | 61,919 | |||||||||||
Non-Agency RMBS | — | — | 83,752 | 83,752 | |||||||||||
Total—Securities—Available for Sale | $ | — | $ | 61,919 | $ | 83,752 | $ | 145,671 | |||||||
Loans Held for Sale | $ | — | $ | 20,110 | $ | — | $ | 20,110 | |||||||
Other assets—Derivative instruments | $ | — | $ | — | $ | 543 | $ | 543 | |||||||
LIABILITIES: | |||||||||||||||
Other liabilities—Derivative instruments | $ | — | $ | — | $ | 125 | $ | 125 |
For the three month period ended | |||||||||||||||
March 31, 2012 | |||||||||||||||
Available for Sale Securities: RMBS Non-Agency | Trading Securities Other Debt Securities: Non-Agency | Derivative Instruments, net | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Assets: | |||||||||||||||
Opening Balance | $ | 95,409 | $ | 5,678 | $ | 1,094 | $ | 102,181 | |||||||
Transfers into Level 3 | — | — | — | — | |||||||||||
Transfers out of Level 3 | — | — | — | — | |||||||||||
Total gains or losses for the period: | |||||||||||||||
Included in earnings—Sale of mortgage-back securities | — | — | — | — | |||||||||||
Included in earnings—Fair value gain on trading securities | — | 305 | — | 305 | |||||||||||
Included in earnings—Mortgage banking | — | — | (123 | ) | (123 | ) | |||||||||
Included in other comprehensive income | 2,678 | — | — | 2,678 | |||||||||||
Purchases, issues, sales and settlements: | |||||||||||||||
Purchases | — | — | — | — | |||||||||||
Issues | — | — | — | — | |||||||||||
Sales | — | — | — | — | |||||||||||
Settlements | (7,404 | ) | — | — | (7,404 | ) | |||||||||
Other than temporary impairment | (264 | ) | — | — | (264 | ) | |||||||||
Closing balance | $ | 90,419 | $ | 5,983 | $ | 971 | $ | 97,373 | |||||||
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | $ | — | $ | 305 | $ | (123 | ) | $ | 182 |
For the nine month period ended | |||||||||||||||
March 31, 2012 | |||||||||||||||
Available for Sale Securities: RMBS Non-Agency | Trading Securities Other Debt Securities: Non-Agency | Derivative Instruments, net | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Assets: | |||||||||||||||
Opening Balance | $ | 83,752 | $ | 5,053 | $ | 418 | $ | 89,223 | |||||||
Transfers into Level 3 | — | — | — | — | |||||||||||
Transfers out of Level 3 | — | — | — | — | |||||||||||
Total gains or losses for the period: | |||||||||||||||
Included in earnings—Sale of mortgage-back securities | — | — | — | — | |||||||||||
Included in earnings—Fair value gain on trading securities | — | 930 | — | 930 | |||||||||||
Included in earnings—Mortgage banking | — | — | 553 | 553 | |||||||||||
Included in other comprehensive income | 909 | — | — | 909 | |||||||||||
Purchases, issues, sales and settlements: | |||||||||||||||
Purchases | 19,999 | — | — | 19,999 | |||||||||||
Issues | — | — | — | — | |||||||||||
Sales | — | — | — | — | |||||||||||
Settlements | (13,765 | ) | — | — | (13,765 | ) | |||||||||
Other than temporary impairment | (476 | ) | — | — | (476 | ) | |||||||||
Closing balance | $ | 90,419 | $ | 5,983 | $ | 971 | $ | 97,373 | |||||||
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | $ | — | $ | 930 | $ | 553 | $ | 1,483 |
For the three month period ended | |||||||||||||||
March 31, 2011 | |||||||||||||||
Available for Sale Securities: RMBS Non-Agency | Trading Securities Other Debt Securities: Non-Agency | Derivative Instruments, net | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Assets: | |||||||||||||||
Opening Balance | $ | 110,548 | $ | 4,428 | $ | 786 | $ | 115,762 | |||||||
Transfers into Level 3 | — | — | — | — | |||||||||||
Transfers out of Level 3 | — | — | — | — | |||||||||||
Total gains or losses for the period: | |||||||||||||||
Included in earnings—Sale of mortgage-back securities | 1,308 | — | — | 1,308 | |||||||||||
Included in earnings—Fair value gain on trading securities | — | 41 | — | 41 | |||||||||||
Included in earnings—Mortgage banking | — | — | 488 | 488 | |||||||||||
Included in other comprehensive income | (1,732 | ) | — | — | (1,732 | ) | |||||||||
Purchases, issues, sales and settlements: | |||||||||||||||
Purchases | — | — | — | — | |||||||||||
Issues | — | — | — | — | |||||||||||
Sales | (6,938 | ) | — | — | (6,938 | ) | |||||||||
Settlements | (7,162 | ) | — | — | (7,162 | ) | |||||||||
Other than temporary impairment | (716 | ) | — | — | (716 | ) | |||||||||
Closing balance | $ | 95,308 | $ | 4,469 | $ | 1,274 | $ | 101,051 | |||||||
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | $ | — | $ | 41 | $ | 488 | $ | 529 |
For the nine month period ended | |||||||||||||||
March 31, 2011 | |||||||||||||||
Available for Sale Securities: RMBS Non-Agency | Trading Securities Other Debt Securities: Non-Agency | Derivative Instruments, net | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Assets: | |||||||||||||||
Opening Balance | $ | 123,186 | $ | 4,402 | $ | 199 | $ | 127,787 | |||||||
Transfers into Level 3 | — | — | — | — | |||||||||||
Transfers out of Level 3 | — | — | — | — | |||||||||||
Total gains or losses for the period: | |||||||||||||||
Included in earnings—Sale of mortgage-back securities | 1,790 | — | — | 1,790 | |||||||||||
Included in earnings—Fair value gain on trading securities | — | 67 | — | 67 | |||||||||||
Included in earnings—Mortgage banking | — | — | 78 | 78 | |||||||||||
Included in other comprehensive income | (3,870 | ) | — | — | (3,870 | ) | |||||||||
Purchases, issues, sales and settlements: | |||||||||||||||
Purchases | — | — | — | — | |||||||||||
Issues | — | — | — | — | |||||||||||
Sales | (7,110 | ) | — | — | (7,110 | ) | |||||||||
Settlements | (17,017 | ) | — | — | (17,017 | ) | |||||||||
Other than temporary impairment | (1,671 | ) | — | — | (1,671 | ) | |||||||||
Closing balance | $ | 95,308 | $ | 4,469 | $ | 277 | $ | 100,054 | |||||||
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | $ | — | $ | 67 | $ | 78 | $ | 145 |
Fair Value at | ||||||
March 31, 2012 | Valuation Technique(s) | Unobservable Input | Range (Weighted Average) | |||
(Dollars in thousands) | ||||||
Securities - Trading | $ | 5,983 | Discounted Cash Flow | Total projected defaults | 29 to 40% (33.3%) | |
Securities - Non agency MBS | $ | 90,419 | Discounted Cash Flow | Constant Prepayment Rate, Constant Default Rate, Loss Severity | 2.5 to 69.5% (15.2%) 1.5 to 50.6% (12.5%) 1.6 to 78.1% (56.1%) | |
Derivative Instruments | $ | 971 | Sales Comparison Approach | Projected Sales Profit of Underlying Loans | 0.5 to 1.5% |
Fair Value at | ||||||
June 30, 2011 | Valuation Technique(s) | Unobservable Input | Range (Weighted Average) | |||
(Dollars in thousands) | ||||||
Securities - Trading | $ | 5,053 | Discounted Cash Flow | Projected Total Default | 31 to 46% (35.0%) | |
Securities - Non agency MBS | $ | 83,752 | Discounted Cash Flow | Constant Prepayment Rate, Constant Default Rate, Loss Severity | 2.5 to 62.7% (14.0%) 0.7 to 22.1% (10.4%) 1.6 to 76.1% (56.2%) | |
Derivative Instruments | $ | 418 | Sales Comparison Approach | Projected Sales Profit of Underlying Loans | 0.5 to 1.5% |
For the Three Months Ended March 31, | For the Nine Months Ended March 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Interest income on investments | $ | 63 | $ | 28 | $ | 122 | $ | 91 | |||||||
Fair value adjustment | 305 | 42 | 930 | 67 | |||||||||||
Total | $ | 368 | $ | 70 | $ | 1,052 | $ | 158 |
Fair Value Measurements Using | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance | ||||||||||||
(Dollars in thousands) | |||||||||||||||
March 31, 2012 | |||||||||||||||
Impaired Loans: | |||||||||||||||
Single Family | $ | — | $ | — | $ | 5,983 | $ | 5,983 | |||||||
Multifamily | — | — | 1,731 | 1,731 | |||||||||||
Commercial | 279 | 279 | |||||||||||||
RV/Auto | — | — | 644 | 644 | |||||||||||
Total | — | — | 8,637 | 8,637 | |||||||||||
Other real estate owned and foreclosed assets: | |||||||||||||||
Single Family | — | — | 737 | 737 | |||||||||||
Multifamily | — | — | — | — | |||||||||||
RV/Auto | — | — | 627 | 627 | |||||||||||
Total | $ | — | $ | — | $ | 1,364 | $ | 1,364 | |||||||
HTM Securities-Non Agency MBS | $ | — | $ | — | $ | 115,781 | $ | 115,781 | |||||||
June 30, 2011 | |||||||||||||||
Impaired Loans: | |||||||||||||||
Single Family | $ | — | $ | — | $ | 3,812 | $ | 3,812 | |||||||
Multifamily | — | — | 611 | 611 | |||||||||||
Total | — | — | 4,423 | 4,423 | |||||||||||
Other real estate owned and foreclosed assets: | |||||||||||||||
Single Family | — | — | 1,779 | 1,779 | |||||||||||
Multifamily | — | — | 5,899 | 5,899 | |||||||||||
RV/Auto | — | — | 1,926 | 1,926 | |||||||||||
Total | $ | — | $ | — | $ | 9,604 | $ | 9,604 | |||||||
HTM Securities-Non Agency MBS | $ | — | $ | — | $ | 108,354 | $ | 108,354 | |||||||
Fair Value at | ||||||
March 31, 2012 | Valuation Technique(s) | Unobservable Input | Range (Weighted Average) | |||
(Dollars in thousands) | ||||||
Impaired loans: | ||||||
Single Family | $ | 5,983 | Sales comparison approach | Adjustment for differences between the comparable sales | -26.6 to 36.5% (5.1%) | |
Multifamily | $ | 1,731 | Sales comparison approach and income approach | Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations Capitalization rate | -23.4 to -6.5% (-15.6%) | |
Commercial | $ | 279 | Sales comparison approach and income approach | Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations Capitalization rate | -31.1 to -31.1% (-31.1%) | |
RV/Auto | $ | 644 | Sales comparison approach | Adjustment for differences between the comparable sales | -45.9 to 36.6% (-5.1%) | |
Other real estate owned: | ||||||
Single Family | $ | 737 | Sales comparison approach | Adjustment for differences between the comparable sales | -2.8 to 3.6% (-.6%) | |
RV/Auto | $ | 627 | Sales comparison approach | Adjustment for differences between the comparable sales | -45.9 to 36.6% (-5.1%) |
Fair Value at | ||||||
June 30, 2011 | Valuation Technique(s) | Unobservable Input | Range (Weighted Average) | |||
(Dollars in thousands) | ||||||
Impaired loans: | ||||||
Single Family | $ | 3,812 | Sales comparison approach | Adjustment for differences between the comparable sales | -14.6 to 31.9% (4.3%) | |
Multifamily | $ | 611 | Sales comparison approach and income approach | Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations Capitalization rate | 0 to .7% (.5%) | |
Commercial | $ | — | Sales comparison approach and income approach | Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations Capitalization rate | — | |
RV/Auto | $ | — | Sales comparison approach | Adjustment for differences between the comparable sales | — | |
Other real estate owned: | ||||||
Single Family | $ | 1,779 | Sales comparison approach | Adjustment for differences between the comparable sales | -18.3 to15.4% (-9.8%) | |
Multifamily | $ | 5,899 | Sales comparison approach | Adjustment for differences between the comparable sales | -34.3 to 4.9% (-20.7%) | |
RV/Auto | $ | 1,926 | Sales comparison approach | Adjustment for differences between the comparable sales | -29.1 to 27.5% (-2.3%) |
March 31, 2012 | |||||||||||||||||||
Fair Value | |||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Financial assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 25,858 | $ | 25,858 | $ | — | $ | — | $ | 25,858 | |||||||||
Securities trading | 5,983 | — | — | 5,983 | 5,983 | ||||||||||||||
Securities available for sale | 170,397 | — | 79,978 | 90,419 | 170,397 | ||||||||||||||
Securities held to maturity | 328,528 | — | 114,936 | 234,790 | 349,726 | ||||||||||||||
Stock of the Federal Home Loan Bank | 16,873 | — | — | — | N/A | ||||||||||||||
Loans held for sale, at fair value | 44,286 | — | 44,286 | — | 44,286 | ||||||||||||||
Loans held for sale, at lower of cost or market | 45,329 | — | — | 46,925 | 46,925 | ||||||||||||||
Loans held for investment—net | 1,595,704 | — | — | 1,640,520 | 1,640,520 | ||||||||||||||
Accrued interest receivable | 7,599 | — | 7,599 | — | 7,599 | ||||||||||||||
Financial liabilities: | |||||||||||||||||||
Time deposits and savings | 1,575,473 | 587,638 | 1,003,233 | — | 1,590,871 | ||||||||||||||
Securities sold under agreements to repurchase | 120,000 | — | 132,093 | — | 132,093 | ||||||||||||||
Advances from the Federal Home Loan Bank | 359,000 | — | 368,721 | — | 368,721 | ||||||||||||||
Subordinated debentures and other borrowings | 5,155 | — | 5,155 | — | 5,155 | ||||||||||||||
Accrued interest payable | 1,940 | — | 1,940 | — | 1,940 |
March 31, 2012 | June 30, 2011 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
(Dollars in Thousands) | |||||||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 25,858 | $ | 25,858 | $ | 9,052 | $ | 9,052 | |||||||
Securities trading | 5,983 | 5,983 | 5,053 | 5,053 | |||||||||||
Securities available for sale | 170,397 | 170,397 | 145,671 | 145,671 | |||||||||||
Securities held to maturity | 328,528 | 349,725 | 370,626 | 387,286 | |||||||||||
Stock of the Federal Home Loan Bank | 16,873 | N/A | 15,463 | N/A | |||||||||||
Loans held for sale, at fair value | 44,286 | 44,286 | 20,110 | 20,110 | |||||||||||
Loans held for sale, at lower of cost or market | 45,329 | 46,925 | — | — | |||||||||||
Loans held for investment—net | 1,595,704 | 1,640,520 | 1,325,101 | 1,372,243 | |||||||||||
Accrued interest receivable | 7,599 | 7,599 | 6,577 | 6,577 | |||||||||||
Financial liabilities: | |||||||||||||||
Time deposits and savings | 1,575,473 | 1,590,871 | 1,340,325 | 1,347,951 | |||||||||||
Securities sold under agreements to repurchase | 120,000 | 132,093 | 130,000 | 142,881 | |||||||||||
Advances from the Federal Home Loan Bank | 359,000 | 368,721 | 305,000 | 311,477 | |||||||||||
Subordinated debentures and other borrowings | 5,155 | 5,155 | 7,655 | 7,655 | |||||||||||
Accrued interest payable | 1,940 | 1,940 | 2,237 | 2,237 |
4. | SECURITIES |
Trading | Available for sale | Held to maturity | |||||||||||||||||||||||||||||||||
Fair Value | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | Carrying Amount | Unrecognized Gains | Unrecognized Losses | Fair Value | |||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||
March 31, 2012 | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities (RMBS) : | |||||||||||||||||||||||||||||||||||
U.S. agencies 1 | $ | — | $ | 60,820 | $ | 1,847 | $ | (170 | ) | $ | 62,497 | $ | 69,914 | $ | 3,655 | $ | — | $ | 73,569 | ||||||||||||||||
Non-agency 2 | — | 80,303 | 10,208 | (92 | ) | 90,419 | 222,407 | 17,664 | (5,282 | ) | 234,789 | ||||||||||||||||||||||||
Total mortgage-backed securities | — | 141,123 | 12,055 | (262 | ) | 152,916 | 292,321 | 21,319 | (5,282 | ) | 308,358 | ||||||||||||||||||||||||
Other debt securities: | |||||||||||||||||||||||||||||||||||
U.S. agencies 1 | — | 10,038 | — | (1 | ) | 10,037 | — | — | — | — | |||||||||||||||||||||||||
Municipal | — | — | — | — | — | 36,207 | 5,160 | — | 41,367 | ||||||||||||||||||||||||||
Non-agency | 5,983 | 7,444 | — | — | 7,444 | — | — | — | — | ||||||||||||||||||||||||||
Total other debt securities | $ | 5,983 | 17,482 | — | (1 | ) | 17,481 | 36,207 | 5,160 | — | 41,367 | ||||||||||||||||||||||||
Total debt securities | $ | 5,983 | $ | 158,605 | $ | 12,055 | $ | (263 | ) | $ | 170,397 | $ | 328,528 | $ | 26,479 | $ | (5,282 | ) | $ | 349,725 | |||||||||||||||
June 30, 2011 | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities (RMBS) : | |||||||||||||||||||||||||||||||||||
U.S. agencies 1 | $ | — | $ | 60,212 | $ | 1,707 | $ | — | $ | 61,919 | $ | 77,941 | $ | 2,317 | $ | (196 | ) | $ | 80,062 | ||||||||||||||||
Non-agency 2 | — | 74,545 | 9,406 | (199 | ) | 83,752 | 246,455 | 15,851 | (2,625 | ) | 259,681 | ||||||||||||||||||||||||
Total mortgage-backed securities | — | 134,757 | 11,113 | (199 | ) | 145,671 | 324,396 | 18,168 | (2,821 | ) | 339,743 | ||||||||||||||||||||||||
Other debt securities: | |||||||||||||||||||||||||||||||||||
U.S. agencies 1 | — | — | — | — | — | 9,976 | — | (149 | ) | 9,827 | |||||||||||||||||||||||||
Municipal | — | — | — | — | — | 36,254 | 1,517 | (55 | ) | 37,716 | |||||||||||||||||||||||||
Non-agency | 5,053 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Total other debt securities | 5,053 | — | — | — | — | 46,230 | 1,517 | (204 | ) | 47,543 | |||||||||||||||||||||||||
Total debt securities | $ | 5,053 | $ | 134,757 | $ | 11,113 | $ | (199 | ) | $ | 145,671 | $ | 370,626 | $ | 19,685 | $ | (3,025 | ) | $ | 387,286 |
1. | U.S. government-backed or government sponsored enterprises including Fannie Mae, Freddie Mac and Ginnie Mae. |
2. | Private sponsors of securities collateralized primarily by pools of 1-4 family residential first mortgages . Primarily supersenior securities secured by prime, Alt-A or pay-option ARM mortgages. |
Available for sale securities in loss position for | Held to maturity securities in loss position for | ||||||||||||||||||||||||||||||||||||||||||||||
Less Than 12 Months | More Than 12 Months | Total | Less Than 12 Months | More Than 12 Months | Total | ||||||||||||||||||||||||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
RMBS: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. agencies | $ | 29,048 | $ | (171 | ) | $ | — | $ | — | $ | 29,048 | $ | (171 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
Non-agency | 15,276 | (92 | ) | — | — | 15,276 | (92 | ) | 20,887 | (1,175 | ) | 40,743 | (4,107 | ) | 61,630 | (5,282 | ) | ||||||||||||||||||||||||||||||
Total RMBS securities | 44,324 | (263 | ) | — | — | 44,324 | (263 | ) | 20,887 | (1,175 | ) | 40,743 | (4,107 | ) | 61,630 | (5,282 | ) | ||||||||||||||||||||||||||||||
Other Debt: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. agencies | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total Other Debt | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total debt securities | $ | 44,324 | $ | (263 | ) | $ | — | $ | — | $ | 44,324 | $ | (263 | ) | $ | 20,887 | $ | (1,175 | ) | $ | 40,743 | $ | (4,107 | ) | $ | 61,630 | $ | (5,282 | ) | ||||||||||||||||||
June 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||
RMBS: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. agencies | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 9,903 | $ | (196 | ) | $ | — | $ | — | $ | 9,903 | $ | (196 | ) | |||||||||||||||||||||
Non-agency | 2,674 | (199 | ) | — | — | 2,674 | (199 | ) | 18,946 | (262 | ) | 46,665 | (2,363 | ) | 65,611 | (2,625 | ) | ||||||||||||||||||||||||||||||
Total RMBS securities | 2,674 | (199 | ) | — | — | 2,674 | (199 | ) | 28,849 | (458 | ) | 46,665 | (2,363 | ) | 75,514 | (2,821 | ) | ||||||||||||||||||||||||||||||
Other Debt: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. agencies | — | — | — | — | — | — | 9,828 | (149 | ) | — | — | 9,828 | (149 | ) | |||||||||||||||||||||||||||||||||
Municipal Debt | — | — | — | — | — | — | 5,567 | (55 | ) | — | — | 5,567 | (55 | ) | |||||||||||||||||||||||||||||||||
Total Other Debt | — | — | — | — | — | — | 15,395 | (204 | ) | — | — | 15,395 | (204 | ) | |||||||||||||||||||||||||||||||||
Total debt securities | $ | 2,674 | $ | (199 | ) | $ | — | $ | — | $ | 2,674 | $ | (199 | ) | $ | 44,244 | $ | (662 | ) | $ | 46,665 | $ | (2,363 | ) | $ | 90,909 | $ | (3,025 | ) |
For the Three Months Ended March 31, | For the Nine Months Ended March 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Beginning balance | $ | 10,345 | $ | 8,374 | $ | 9,033 | $ | 7,492 | |||||||
Additions for the amounts related to credit loss for which an other-than- temporary impairment was not previously recognized | 81 | 86 | 250 | 856 | |||||||||||
Increases to the amount related to the credit loss for which other-than-temporary was previously recognized | 1,130 | 87 | 2,273 | 199 | |||||||||||
Ending balance | $ | 11,556 | $ | 8,547 | $ | 11,556 | $ | 8,547 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Proceeds | $ | — | $ | 8,256 | $ | — | $ | 8,910 | |||||||
Gross realized gains | — | 1,478 | — | 1,960 | |||||||||||
Gross realized loss | — | — | — | — | |||||||||||
Net gain on securities | $ | — | $ | 1,478 | $ | — | $ | 1,960 |
March 31, 2012 | June 30, 2011 | ||||||
(Dollars in Thousands) | |||||||
Available for sale debt securities—net unrealized gains | $ | 11,792 | $ | 10,914 | |||
Held to maturity debt securities—non credit related | (12,957 | ) | (12,538 | ) | |||
Subtotal | (1,165 | ) | (1,624 | ) | |||
Tax benefit | 469 | 653 | |||||
Net unrealized loss on investment securities in accumulated other comprehensive loss | $ | (696 | ) | $ | (971 | ) |
March 31, 2012 | |||||||||||||||||||
Available for sale | Held to maturity | Trading | |||||||||||||||||
Amortized Cost | Fair Value | Carrying Amount | Fair Value | Fair Value | |||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
RMBS—U.S. agencies1: | |||||||||||||||||||
Due within one year | $ | 3,013 | $ | 3,095 | $ | 2,764 | $ | 2,887 | $ | — | |||||||||
Due one to five years | 11,759 | 12,067 | 10,498 | 10,969 | — | ||||||||||||||
Due five to ten years | 13,937 | 14,277 | 11,739 | 12,270 | — | ||||||||||||||
Due after ten years | 32,111 | 33,058 | 44,913 | 47,443 | — | ||||||||||||||
Total RMBS—U.S. agencies1 | 60,820 | 62,497 | 69,914 | 73,569 | — | ||||||||||||||
RMBS—Non-agency: | |||||||||||||||||||
Due within one year | 26,887 | 28,370 | 30,182 | 31,376 | — | ||||||||||||||
Due one to five years | 24,420 | 27,499 | 62,520 | 67,377 | — | ||||||||||||||
Due five to ten years | 15,162 | 17,845 | 32,817 | 35,916 | — | ||||||||||||||
Due after ten years | 13,834 | 16,705 | 96,888 | 100,120 | — | ||||||||||||||
Total RMBS—Non-agency | 80,303 | 90,419 | 222,407 | 234,789 | — | ||||||||||||||
Other debt: | |||||||||||||||||||
Due within one year | 11,642 | 11,642 | — | — | — | ||||||||||||||
Due one to five years | 5,840 | 5,839 | 36 | 38 | — | ||||||||||||||
Due five to ten years | — | — | 1,705 | 1,831 | — | ||||||||||||||
Due after ten years | — | — | 34,466 | 39,498 | 5,983 | ||||||||||||||
Total other debt | 17,482 | 17,481 | 36,207 | 41,367 | 5,983 | ||||||||||||||
Total | $ | 158,605 | $ | 170,397 | $ | 328,528 | $ | 349,725 | $ | 5,983 |
5. | LOANS & ALLOWANCE FOR LOAN LOSS |
March 31, 2012 | June 30, 2011 | ||||||
(Dollars in Thousands) | |||||||
Mortgage loans on real estate: | |||||||
Residential single family (one to four units) | $ | 732,901 | $ | 517,637 | |||
Home equity | 30,795 | 36,424 | |||||
Residential multifamily (five units or more) | 655,742 | 647,381 | |||||
Commercial real estate and land | 36,939 | 37,985 | |||||
Consumer—Recreational vehicle | 25,733 | 30,406 | |||||
Commercial secured and other | 129,509 | 66,582 | |||||
Total gross loans | 1,611,619 | 1,336,415 | |||||
Allowance for loan losses | (8,355 | ) | (7,419 | ) | |||
Unaccreted discounts and loan fees | (7,560 | ) | (3,895 | ) | |||
Net loans | $ | 1,595,704 | $ | 1,325,101 |
For the Three Months Ended March 31, 2012 | |||||||||||||||||||||||||||
(Dollars in Thousands) | Single Family | Home Equity | Multi- family | Commercial Real Estate and Land | Recreational Vehicles and Autos | Commercial Secured and Other | Total | ||||||||||||||||||||
Balance at January 1, 2012 | $ | 2,785 | $ | 214 | $ | 2,292 | $ | 131 | $ | 2,434 | $ | 234 | $ | 8,090 | |||||||||||||
Provision for loan loss | 1,015 | 217 | 295 | 133 | 324 | 16 | 2,000 | ||||||||||||||||||||
Charge-offs | (790 | ) | (151 | ) | (525 | ) | (94 | ) | (198 | ) | (7 | ) | (1,765 | ) | |||||||||||||
Transfers to held for sale | 30 | — | — | — | — | — | 30 | ||||||||||||||||||||
Recoveries | — | — | — | — | — | — | — | ||||||||||||||||||||
Balance at March 31, 2012 | $ | 3,040 | $ | 280 | $ | 2,062 | $ | 170 | $ | 2,560 | $ | 243 | $ | 8,355 | |||||||||||||
For the Three Months Ended March 31, 2011 | |||||||||||||||||||||||||||
(Dollars in Thousands) | Single Family | Home Equity | Multi- family | Commercial Real Estate and Land | Recreational Vehicles and Autos | Commercial Secured and Other | Total | ||||||||||||||||||||
Balance at January 1, 2011 | $ | 2,113 | $ | 159 | $ | 2,478 | $ | 222 | $ | 1,875 | $ | 37 | $ | 6,884 | |||||||||||||
Provision for loan loss | 216 | 15 | 150 | (52 | ) | 823 | (2 | ) | 1,150 | ||||||||||||||||||
Charge-offs | (114 | ) | (31 | ) | (225 | ) | — | (772 | ) | — | (1,142 | ) | |||||||||||||||
Transfers to held for sale | — | — | — | — | — | — | — | ||||||||||||||||||||
Recoveries | — | — | — | — | — | — | — | ||||||||||||||||||||
Balance at March 31, 2011 | $ | 2,215 | $ | 143 | $ | 2,403 | $ | 170 | $ | 1,926 | $ | 35 | $ | 6,892 |
For the Nine Months Ended March 31, 2012 | |||||||||||||||||||||||||||
(Dollars in Thousands) | Single Family | Home Equity | Multi- family | Commercial Real Estate and Land | Recreational Vehicles and Autos | Commercial Secured and Other | Total | ||||||||||||||||||||
Balance at July 1, 2011 | $ | 2,277 | $ | 158 | $ | 2,326 | $ | 167 | $ | 2,441 | $ | 50 | $ | 7,419 | |||||||||||||
Provision for loan loss | 2,402 | 497 | 1,260 | 97 | 1,506 | 201 | 5,963 | ||||||||||||||||||||
Charge-offs | (1,645 | ) | (375 | ) | (1,354 | ) | (94 | ) | (1,387 | ) | (8 | ) | (4,863 | ) | |||||||||||||
Transfers to held for sale | (43 | ) | — | (170 | ) | — | — | — | (213 | ) | |||||||||||||||||
Recoveries | 49 | — | — | — | — | — | 49 | ||||||||||||||||||||
Balance at March 31, 2012 | $ | 3,040 | $ | 280 | $ | 2,062 | $ | 170 | $ | 2,560 | $ | 243 | $ | 8,355 | |||||||||||||
For the Nine Months Ended March 31, 2011 | |||||||||||||||||||||||||||
(Dollars in Thousands) | Single Family | Home Equity | Multi- family | Commercial Real Estate and Land | Recreational Vehicles and Autos | Commercial Secured and Other | Total | ||||||||||||||||||||
Balance at July 1, 2010 | $ | 1,721 | $ | 205 | $ | 1,860 | $ | 213 | $ | 1,859 | $ | 35 | $ | 5,893 | |||||||||||||
Provision for loan loss | 1,399 | 42 | 1,226 | (43 | ) | 1,699 | 27 | 4,350 | |||||||||||||||||||
Charge-offs | (905 | ) | (104 | ) | (906 | ) | — | (1,632 | ) | (27 | ) | (3,574 | ) | ||||||||||||||
Transfers to held for sale | — | — | — | — | — | — | — | ||||||||||||||||||||
Recoveries | — | — | 223 | — | — | — | 223 | ||||||||||||||||||||
Balance at March 31, 2011 | $ | 2,215 | $ | 143 | $ | 2,403 | $ | 170 | $ | 1,926 | $ | 35 | $ | 6,892 |
March 31, 2012 | |||||||||||
Recorded Investment1 | Unpaid Principal Balance | Related Allowance | |||||||||
(Dollars in Thousands) | |||||||||||
With no related allowance recorded: | |||||||||||
Single Family: | |||||||||||
In-house originated | $ | — | $ | — | $ | — | |||||
Purchased | 5,983 | 7,858 | — | ||||||||
Multifamily: | |||||||||||
In-house originated | — | — | — | ||||||||
Purchased | 1,731 | 2,203 | — | ||||||||
Home Equity: | |||||||||||
In-house originated | — | — | — | ||||||||
Purchased | — | — | — | ||||||||
Commercial: | |||||||||||
In-house originated | 279 | 374 | — | ||||||||
Purchased | — | — | — | ||||||||
RV / Auto | 644 | 1,422 | — | ||||||||
Commercial secured and other | — | — | — | ||||||||
With an allowance recorded: | |||||||||||
Single Family: | |||||||||||
In-house originated | $ | 20 | $ | 20 | $ | — | |||||
Purchased | 5,363 | 5,327 | 152 | ||||||||
Multifamily: | |||||||||||
In-house originated | — | — | — | ||||||||
Purchased | 4,088 | 4,234 | 21 | ||||||||
Home Equity: | |||||||||||
In-house originated | 83 | 82 | — | ||||||||
Purchased | — | — | — | ||||||||
Commercial: | |||||||||||
In-house originated | 1,708 | 1,708 | 4 | ||||||||
Purchased | — | — | — | ||||||||
RV / Auto | 1,645 | 1,608 | 666 | ||||||||
Commercial secured and other | — | — | — | ||||||||
Total | $ | 21,544 | $ | 24,836 | $ | 843 | |||||
As a % of total gross loans | 1.34 | % | 1.54 | % | 0.06 | % |
June 30, 2011 | |||||||||||
Recorded Investment1 | Unpaid Principal Balance | Related Allowance | |||||||||
(Dollars in Thousands) | |||||||||||
With no related allowance recorded: | |||||||||||
Single Family: | |||||||||||
In-house originated | $ | — | $ | — | $ | — | |||||
Purchased | 3,818 | 4,876 | — | ||||||||
Multifamily: | |||||||||||
In-house originated | — | — | — | ||||||||
Purchased | 615 | 754 | — | ||||||||
Home Equity: | |||||||||||
In-house originated | — | — | — | ||||||||
Purchased | — | — | — | ||||||||
Commercial: | |||||||||||
In-house originated | — | — | — | ||||||||
Purchased | — | — | — | ||||||||
RV / Auto | — | — | — | ||||||||
Commercial secured and other | — | — | — | ||||||||
With an allowance recorded: | |||||||||||
Single Family: | |||||||||||
In-house originated | $ | 822 | $ | 822 | $ | 7 | |||||
Purchased | 3,500 | 3,512 | 267 | ||||||||
Multifamily: | |||||||||||
In-house originated | — | — | — | ||||||||
Purchased | 4,281 | 4,308 | 23 | ||||||||
Home Equity: | |||||||||||
In-house originated | 216 | 214 | 2 | ||||||||
Purchased | — | — | — | ||||||||
Commercial: | |||||||||||
In-house originated | 1,756 | 1,748 | 4 | ||||||||
Purchased | — | — | — | ||||||||
RV / Auto | 2,639 | 2,563 | 756 | ||||||||
Commercial secured and other | — | — | — | ||||||||
Total | $ | 17,647 | $ | 18,797 | $ | 1,059 | |||||
As a % of total gross loans | 1.32 | % | 1.42 | % | 0.08 | % |
March 31, 2012 | |||||||||||||||||||||||||||
Single Family | Home Equity | Multi- family | Commercial Real Estate and Land | Recreational Vehicles and Autos | Commercial Secured and Other | Total | |||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 152 | $ | — | $ | 21 | $ | 4 | $ | 666 | $ | — | $ | 843 | |||||||||||||
Collectively evaluated for impairment | 2,888 | 280 | 2,041 | 166 | 1,894 | 243 | 7,512 | ||||||||||||||||||||
Total ending allowance balance | $ | 3,040 | $ | 280 | $ | 2,062 | $ | 170 | $ | 2,560 | $ | 243 | $ | 8,355 | |||||||||||||
Loans: | |||||||||||||||||||||||||||
Loans individually evaluated for impairment1 | $ | 11,330 | $ | 82 | $ | 5,964 | $ | 1,987 | $ | 2,252 | $ | — | $ | 21,615 | |||||||||||||
Loans collectively evaluated for impairment | 721,571 | 30,713 | 649,778 | 34,952 | 23,481 | 129,509 | 1,590,004 | ||||||||||||||||||||
Principal loan balance | $ | 732,901 | $ | 30,795 | $ | 655,742 | $ | 36,939 | $ | 25,733 | $ | 129,509 | $ | 1,611,619 | |||||||||||||
Unaccreted discounts and loan fees | (214 | ) | 49 | (1,128 | ) | (75 | ) | 539 | (6,733 | ) | (7,562 | ) | |||||||||||||||
Accrued interest receivable | 2,403 | 158 | 2,614 | 144 | 124 | 762 | 6,205 | ||||||||||||||||||||
Total recorded investment in loans | $ | 735,090 | $ | 31,002 | $ | 657,228 | $ | 37,008 | $ | 26,396 | $ | 123,538 | $ | 1,610,262 |
June 30, 2011 | |||||||||||||||||||||||||||
Single Family | Home Equity | Multi- family | Commercial Real Estate and Land | Recreational Vehicles and Autos | Commercial Secured and Other | Total | |||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 274 | $ | 2 | $ | 23 | $ | 4 | $ | 756 | $ | — | $ | 1,059 | |||||||||||||
Collectively evaluated for impairment | 2,003 | 156 | 2,303 | 163 | 1,685 | 50 | 6,360 | ||||||||||||||||||||
Total ending allowance balance | $ | 2,277 | $ | 158 | $ | 2,326 | $ | 167 | $ | 2,441 | $ | 50 | $ | 7,419 | |||||||||||||
Loans: | |||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 8,147 | $ | 214 | $ | 4,919 | $ | 1,748 | $ | 2,563 | $ | — | $ | 17,591 | |||||||||||||
Loans collectively evaluated for impairment | 509,490 | 36,210 | 642,462 | 36,237 | 27,843 | 66,582 | 1,318,824 | ||||||||||||||||||||
Principal loan balance | $ | 517,637 | $ | 36,424 | $ | 647,381 | $ | 37,985 | $ | 30,406 | $ | 66,582 | $ | 1,336,415 | |||||||||||||
Unaccreted discounts and loan fees | (1,938 | ) | 89 | (2,488 | ) | (132 | ) | 731 | (157 | ) | (3,895 | ) | |||||||||||||||
Accrued interest receivable | 1,351 | 210 | 2,275 | 186 | 158 | 574 | 4,754 | ||||||||||||||||||||
Total recorded investment in loans | $ | 517,050 | $ | 36,723 | $ | 647,168 | $ | 38,039 | $ | 31,295 | $ | 66,999 | $ | 1,337,274 |
March 31, 2012 | June 30, 2011 | ||||||
(Dollars in Thousands) | |||||||
Loans secured by real estate: | |||||||
Single family: | |||||||
In-house originated | $ | 20 | $ | 796 | |||
Purchased | 9,251 | 5,790 | |||||
Home equity loans: | |||||||
In-house originated | 59 | 157 | |||||
Purchased | — | — | |||||
Multifamily: | |||||||
In-house originated | — | — | |||||
Purchased | 5,688 | 2,744 | |||||
Commercial: | |||||||
In-house originated | 279 | — | |||||
Purchased | — | — | |||||
Total nonaccrual loans secured by real estate | 15,297 | 9,487 | |||||
RV/Auto | 727 | 125 | |||||
Commercial secured and other | — | — | |||||
Total nonperforming loans 1,2 | $ | 16,024 | $ | 9,612 | |||
Nonperforming loans to total loans | 0.99 | % | 0.72 | % |
March 31, 2012 | |||||||||||||||||||||||||||
Single Family | Home Equity | Multi- family | Commercial Real Estate and Land | Recreational Vehicles and Autos | Commercial Secured and Other | Total | |||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||
Performing | $ | 723,630 | $ | 30,736 | $ | 650,054 | $ | 36,660 | $ | 25,006 | $ | 129,509 | $ | 1,595,595 | |||||||||||||
Nonperforming | 9,271 | 59 | 5,688 | 279 | 727 | — | 16,024 | ||||||||||||||||||||
Total | $ | 732,901 | $ | 30,795 | $ | 655,742 | $ | 36,939 | $ | 25,733 | $ | 129,509 | $ | 1,611,619 |
June 30, 2011 | |||||||||||||||||||||||||||
Single Family | Home Equity | Multi- family | Commercial Real Estate and Land | Recreational Vehicles and Autos | Commercial Secured and Other | Total | |||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||
Performing | $ | 511,051 | $ | 36,267 | $ | 644,637 | $ | 37,985 | $ | 30,281 | $ | 66,582 | $ | 1,326,803 | |||||||||||||
Nonperforming | 6,586 | 157 | 2,744 | — | 125 | — | 9,612 | ||||||||||||||||||||
Total | $ | 517,637 | $ | 36,424 | $ | 647,381 | $ | 37,985 | $ | 30,406 | $ | 66,582 | $ | 1,336,415 |
March 31, 2012 | ||||||||||||||||||||||||||||
Single Family | Multifamily | Commercial | ||||||||||||||||||||||||||
Origination | Purchase | Total | Origination | Purchase | Total | Origination | Purchase | Total | ||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||
Performing | $ | 541,154 | $ | 182,476 | $ | 723,630 | $ | 385,969 | $ | 264,085 | 650,054 | $ | 7,586 | $ | 29,074 | $ | 36,660 | |||||||||||
Non performing | 20 | 9,251 | 9,271 | — | 5,688 | 5,688 | 279 | — | 279 | |||||||||||||||||||
Total | $ | 541,174 | $ | 191,727 | $ | 732,901 | $ | 385,969 | $ | 269,773 | 655,742 | $ | 7,865 | $ | 29,074 | $ | 36,939 |
June 30, 2011 | ||||||||||||||||||||||||||||
Single Family | Multifamily | Commercial | ||||||||||||||||||||||||||
Origination | Purchase | Total | Origination | Purchase | Total | Origination | Purchase | Total | ||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||
Performing | $ | 291,549 | $ | 219,502 | $ | 511,051 | $ | 349,276 | $ | 295,361 | 644,637 | $ | 9,705 | $ | 28,280 | $ | 37,985 | |||||||||||
Non performing | 796 | 5,790 | 6,586 | — | 2,744 | 2,744 | — | — | — | |||||||||||||||||||
Total | $ | 292,345 | $ | 225,292 | $ | 517,637 | $ | 349,276 | $ | 298,105 | 647,381 | $ | 9,705 | $ | 28,280 | $ | 37,985 |
March 31, 2012 | |||||||||||||||||||||||||||
Single Family | Home Equity | Multi- family | Commercial Real Estate and Land | Recreational Vehicles and Autos | Commercial Secured and Other | Total | |||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||
Performing loans temporarily modified as TDR | $ | 2,059 | $ | 23 | $ | 276 | $ | 1,708 | $ | 1,525 | — | $ | 5,591 | ||||||||||||||
Non performing loans | 9,271 | 59 | 5,688 | 279 | 727 | — | $ | 16,024 | |||||||||||||||||||
Total impaired loans1 | $ | 11,330 | $ | 82 | $ | 5,964 | $ | 1,987 | $ | 2,252 | $ | — | $ | 21,615 |
For the Three Months Ended March 31, 2012 | |||||||||||||||||||||||||||
Single Family | Home Equity | Multi- family | Commercial Real Estate and Land | Recreational Vehicles and Autos | Commercial Secured and Other | Total | |||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||
Interest income recognized on performing TDRs | $ | 24 | $ | — | $ | 5 | $ | 23 | $ | 31 | $ | — | $ | 83 | |||||||||||||
Average balances of performing TDRs | $ | 2,061 | $ | 23 | $ | 1,718 | $ | 1,712 | $ | 1,555 | $ | — | $ | 7,069 | |||||||||||||
Average balances of impaired loans | $ | 10,048 | $ | 113 | $ | 5,936 | $ | 2,055 | $ | 2,393 | $ | 4 | $ | 20,549 | |||||||||||||
For the Nine Months Ended March 31, 2012 | |||||||||||||||||||||||||||
Single Family | Home Equity | Multi- family | Commercial Real Estate and Land | Recreational Vehicles and Autos | Commercial Secured and Other | Total | |||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||
Interest income recognized on performing TDRs | $ | 72 | $ | 1 | $ | 15 | $ | 70 | $ | 92 | $ | — | $ | 250 | |||||||||||||
Average balances of performing TDRs | $ | 1,652 | $ | 38 | $ | 2,110 | $ | 1,726 | $ | 1,843 | $ | — | $ | 7,369 | |||||||||||||
Average balances of impaired loans | $ | 8,886 | $ | 146 | $ | 6,095 | $ | 1,840 | $ | 2,396 | $ | 1 | $ | 19,364 |
For the Three Months Ended March 31, 2011 | |||||||||||||||||||||||||||
Single Family | Home Equity | Multi- family | Commercial Real Estate and Land | Recreational Vehicles and Autos | Commercial Secured and Other | Total | |||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||
Interest income recognized on performing TDRs | $ | 13 | $ | 1 | $ | 42 | $ | — | $ | 52 | $ | — | $ | 108 | |||||||||||||
Average balances of performing TDRs | $ | 1,338 | $ | 58 | $ | 2,465 | $ | — | $ | 2,944 | $ | — | $ | 6,805 | |||||||||||||
Average balances of impaired loans | $ | 6,797 | $ | 94 | $ | 3,510 | $ | 1,765 | $ | 1,198 | $ | 1 | $ | 13,365 | |||||||||||||
For the Nine Months Ended March 31, 2011 | |||||||||||||||||||||||||||
Single Family | Home Equity | Multi- family | Commercial Real Estate and Land | Recreational Vehicles and Autos | Commercial Secured and Other | Total | |||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||
Interest income recognized on performing TDRs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Average balances of performing TDRs | $ | 1,094 | $ | 45 | $ | 1,259 | $ | — | $ | 3,021 | $ | — | $ | 5,419 | |||||||||||||
Average balances of impaired loans | $ | 5,248 | $ | 113 | $ | 6,269 | $ | — | $ | 3,748 | $ | 2 | $ | 15,380 |
For the three months ended March 31, | For the nine months ended March 31, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Loans secured by real estate: | ||||||||||||||||
Single family: | ||||||||||||||||
In-house originated | $ | — | $ | — | $ | — | $ | — | ||||||||
Purchased | — | 302 | 742 | 1,045 | ||||||||||||
Home equity loans: | ||||||||||||||||
In-house originated | — | — | — | 124 | ||||||||||||
Purchased | — | — | — | — | ||||||||||||
Multifamily: | ||||||||||||||||
In-house originated | — | — | — | — | ||||||||||||
Purchased | — | — | — | — | ||||||||||||
Commercial: | ||||||||||||||||
In-house originated | — | — | — | — | ||||||||||||
Purchased | — | — | — | — | ||||||||||||
Total TDR loans secured by real estate | — | 302 | 742 | 1,169 | ||||||||||||
RV/Auto | — | — | 58 | 402 | ||||||||||||
Commercial secured and other | — | — | — | — | ||||||||||||
Total loans modified as TDRs | $ | — | $ | 302 | $ | 800 | $ | 1,571 |
Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||||
(Dollars in Thousands) | ||||||||||||
Number of Loans | ||||||||||||
Troubled Debt Restructurings: | ||||||||||||
Single family: | ||||||||||||
In-house originated | — | $ | — | $ | — | |||||||
Purchased | 1 | 742 | 740 | |||||||||
RV/Auto | — | — | — | |||||||||
In-house originated | 3 | 58 | 60 | |||||||||
Purchased | ||||||||||||
Total | $ | 4 | $ | 800 | $ | 800 |
March 31, 2012 | |||||||||||||||||||
Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Single Family: | |||||||||||||||||||
In-house originated | $ | 541,155 | $ | — | $ | 20 | $ | — | $ | 541,175 | |||||||||
Purchased | 178,368 | 1,539 | 11,819 | — | 191,726 | ||||||||||||||
Home equity loans: | |||||||||||||||||||
In-house originated | 10,005 | 82 | 280 | — | 10,367 | ||||||||||||||
Purchased | 20,428 | — | — | — | 20,428 | ||||||||||||||
Multifamily: | |||||||||||||||||||
In-house originated | 384,341 | 867 | 761 | — | 385,969 | ||||||||||||||
Purchased | 258,548 | 4,013 | 7,212 | — | 269,773 | ||||||||||||||
Commercial real estate and land: | |||||||||||||||||||
In-house originated | 7,587 | — | 279 | — | 7,866 | ||||||||||||||
Purchased | 26,255 | 2,819 | — | — | 29,074 | ||||||||||||||
Consumer—RV/Auto: | 23,765 | 368 | 1,600 | — | 25,733 | ||||||||||||||
Commercial secured and other: | 129,508 | — | — | — | 129,508 | ||||||||||||||
Total | $ | 1,579,960 | $ | 9,688 | $ | 21,971 | $ | — | $ | 1,611,619 | |||||||||
As a % of total gross loans | 98.0 | % | 0.6 | % | 1.4 | % | — | % | 100.0 | % |
December 31, 2011 | |||||||||||||||||||
Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Single Family: | |||||||||||||||||||
In-house originated | $ | 457,560 | $ | — | $ | 21 | $ | — | $ | 457,581 | |||||||||
Purchased | 192,124 | 177 | 10,998 | — | 203,299 | ||||||||||||||
Home equity loans: | |||||||||||||||||||
In-house originated | 11,304 | 7 | 285 | — | 11,596 | ||||||||||||||
Purchased | 21,210 | — | — | — | 21,210 | ||||||||||||||
Multifamily: | |||||||||||||||||||
In-house originated | 373,500 | 3,048 | — | — | 376,548 | ||||||||||||||
Purchased | 269,849 | 6,040 | 5,884 | — | 281,773 | ||||||||||||||
Commercial real estate and land: | |||||||||||||||||||
In-house originated | 8,647 | — | — | — | 8,647 | ||||||||||||||
Purchased | 26,328 | 2,829 | — | — | 29,157 | ||||||||||||||
Consumer—RV/Auto: | 25,437 | 241 | 1,261 | — | 26,939 | ||||||||||||||
Commercial secured and other: | 123,359 | — | — | — | 123,359 | ||||||||||||||
Total | $ | 1,509,318 | $ | 12,342 | $ | 18,449 | $ | — | $ | 1,540,109 | |||||||||
As a % of total gross loans | 98.0 | % | 0.8 | % | 1.2 | % | — | % | 100.0 | % |
September 30, 2011 | |||||||||||||||||||
Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Single Family: | |||||||||||||||||||
In-house originated 1 | $ | 391,729 | $ | — | $ | 733 | $ | — | $ | 392,462 | |||||||||
Purchased | 199,854 | 922 | 11,210 | — | 211,986 | ||||||||||||||
Home equity loans: | |||||||||||||||||||
In-house originated | 12,890 | 43 | 136 | — | 13,069 | ||||||||||||||
Purchased | 21,812 | — | — | — | 21,812 | ||||||||||||||
Multifamily: | |||||||||||||||||||
In-house originated | 351,829 | 2,183 | — | — | 354,012 | ||||||||||||||
Purchased | 274,538 | 8,052 | 4,884 | — | 287,474 | ||||||||||||||
Commercial real estate and land: | |||||||||||||||||||
In-house originated | 6,891 | 1,735 | — | — | 8,626 | ||||||||||||||
Purchased | 27,043 | 2,191 | — | — | 29,234 | ||||||||||||||
Consumer—RV/Auto: | 27,393 | 554 | 406 | — | 28,353 | ||||||||||||||
Commercial secured and other: | 108,448 | — | — | — | 108,448 | ||||||||||||||
Total | $ | 1,422,427 | $ | 15,680 | $ | 17,369 | $ | — | $ | 1,455,476 | |||||||||
As a % of total gross loans | 97.7 | % | 1.1 | % | 1.2 | % | — | % | 100.0 | % |
June 30, 2011 | |||||||||||||||||||
Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Single Family: | |||||||||||||||||||
In-house originated | $ | 292,319 | $ | — | $ | 25 | $ | — | $ | 292,344 | |||||||||
Purchased | 214,924 | 4,459 | 5,910 | — | 225,293 | ||||||||||||||
Home equity loans: | |||||||||||||||||||
In-house originated | 14,256 | — | 157 | — | 14,413 | ||||||||||||||
Purchased | 22,011 | — | — | — | 22,011 | ||||||||||||||
Multifamily: | |||||||||||||||||||
In-house originated | 347,087 | 2,189 | — | — | 349,276 | ||||||||||||||
Purchased | 289,528 | 5,833 | 2,744 | — | 298,105 | ||||||||||||||
Commercial real estate and land: | |||||||||||||||||||
In-house originated | 7,897 | 1,807 | — | — | 9,704 | ||||||||||||||
Purchased | 26,082 | 2,199 | — | — | 28,281 | ||||||||||||||
Consumer—RV/Auto: | 29,395 | 657 | 354 | — | 30,406 | ||||||||||||||
Commercial secured and other: | 66,582 | — | — | — | 66,582 | ||||||||||||||
Total | $ | 1,310,081 | $ | 17,144 | $ | 9,190 | $ | — | $ | 1,336,415 | |||||||||
As a % of total gross loans | 98.0 | % | 1.3 | % | 0.7 | % | — | % | 100.0 | % |
March 31, 2012 | ||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | Total | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Single Family: | ||||||||||||||||
In-house originated | $ | 4,499 | $ | — | — | $ | 4,499 | |||||||||
Purchased | 1,856 | 425 | 10,868 | 13,149 | ||||||||||||
Multifamily: | ||||||||||||||||
In-house originated | — | — | — | — | ||||||||||||
Purchased | 134 | 1,222 | 2,593 | 3,949 | ||||||||||||
Home Equity: | ||||||||||||||||
In-house originated | 70 | 86 | — | 156 | ||||||||||||
Purchased | — | — | — | — | ||||||||||||
Commercial: | ||||||||||||||||
In-house originated | — | — | 279 | 279 | ||||||||||||
Purchased | — | — | — | — | ||||||||||||
RV / Auto | 417 | 386 | 637 | 1,440 | ||||||||||||
Commercial Secured and Other | — | — | — | — | ||||||||||||
Total | $ | 6,976 | $ | 2,119 | $ | 14,377 | $ | 23,472 | ||||||||
As a % of total gross loans | 0.43 | % | 0.13 | % | 0.89 | % | 1.46 | % |
December 31, 2011 | ||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | Total | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Single Family: | ||||||||||||||||
In-house originated 1 | $ | 4,824 | $ | — | — | $ | 4,824 | |||||||||
Purchased | 1,177 | 2,797 | 9,425 | 13,399 | ||||||||||||
Multifamily: | ||||||||||||||||
In-house originated 1 | 2,183 | — | — | 2,183 | ||||||||||||
Purchased | 1,013 | 488 | 4,065 | 5,566 | ||||||||||||
Home Equity: | ||||||||||||||||
In-house originated | 56 | 45 | — | 101 | ||||||||||||
Purchased | — | — | — | — | ||||||||||||
Commercial: | ||||||||||||||||
In-house originated | 374 | — | — | 374 | ||||||||||||
Purchased | — | — | — | — | ||||||||||||
RV / Auto | 747 | 334 | 504 | 1,585 | ||||||||||||
Commercial Secured and Other | 1 | 5 | — | 6 | ||||||||||||
Total | $ | 10,375 | $ | 3,669 | $ | 13,994 | $ | 28,038 | ||||||||
As a % of total gross loans | 0.68 | % | 0.24 | % | 0.92 | % | 1.84 | % |
September 30, 2011 | ||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | Total | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Single Family: | ||||||||||||||||
In-house originated | $ | — | $ | — | 709 | $ | 709 | |||||||||
Purchased | 1,192 | 606 | 9,416 | 11,214 | ||||||||||||
Multifamily: | ||||||||||||||||
In-house originated | — | — | — | — | ||||||||||||
Purchased | — | 540 | 4,314 | 4,854 | ||||||||||||
Home Equity: | ||||||||||||||||
In-house originated | 67 | 43 | 36 | 146 | ||||||||||||
Purchased | — | — | — | — | ||||||||||||
Commercial: | ||||||||||||||||
In-house originated | — | — | — | — | ||||||||||||
Purchased | — | — | — | — | ||||||||||||
RV / Auto | 1,251 | 372 | 107 | 1,730 | ||||||||||||
Commercial Secured and Other | — | — | — | — | ||||||||||||
Total | $ | 2,510 | $ | 1,561 | $ | 14,582 | $ | 18,653 | ||||||||
As a % of total gross loans | 0.17 | % | 0.11 | % | 1.01 | % | 1.29 | % |
June 30, 2011 | ||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | Total | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Single Family: | ||||||||||||||||
In-house originated | $ | 216 | $ | 796 | — | $ | 1,012 | |||||||||
Purchased | 1,793 | 1,716 | 8,538 | 12,047 | ||||||||||||
Multifamily: | ||||||||||||||||
In-house originated | — | — | — | — | ||||||||||||
Purchased | — | 289 | 2,744 | 3,033 | ||||||||||||
Home Equity: | ||||||||||||||||
In-house originated | 182 | 34 | 93 | 309 | ||||||||||||
Purchased | — | — | — | — | ||||||||||||
Commercial: | ||||||||||||||||
In-house originated | — | — | — | — | ||||||||||||
Purchased | — | — | — | — | ||||||||||||
RV / Auto | 1,306 | 130 | 85 | 1,521 | ||||||||||||
Commercial Secured and Other | — | — | — | — | ||||||||||||
Total | $ | 3,497 | $ | 2,965 | $ | 11,460 | $ | 17,922 | ||||||||
As a % of total gross loans | 0.26 | % | 0.22 | % | 0.86 | % | 1.35 | % |
6. | STOCK-BASED COMPENSATION |
Number of Shares | Weighted-average Exercise Price Per Share | |||||
Outstanding-July 1, 2010 | 395,920 | $ | 8.52 | |||
Granted | — | $ | — | |||
Exercised | (128,381 | ) | $ | 7.18 | ||
Cancelled | (6 | ) | $ | 7.35 | ||
Outstanding-June 30, 2011 | 267,533 | $ | 9.15 | |||
Granted | — | $ | — | |||
Exercised | (69,322 | ) | $ | 9.75 | ||
Cancelled | (2,894 | ) | $ | 9.10 | ||
Outstanding-March 31, 2012 | 195,317 | $ | 8.94 | |||
Options exercisable-June 30, 2011 | 267,533 | $ | 9.15 | |||
Options exercisable-March 31, 2012 | 195,317 | $ | 8.94 |
Options Outstanding | Options Exercisable | ||||||||||||||
Exercise Prices | Number Outstanding | Weighted-Average Remaining Contractual Life (Years) | Number Exercisable | Weighted- Average Exercise Price | |||||||||||
$ | 7.35 | 56,900 | 4.3 | 56,900 | $ | 7.35 | |||||||||
$ | 8.50 | 7,500 | 3.7 | 7,500 | $ | 8.50 | |||||||||
$ | 9.20 | 7,500 | 3.4 | 7,500 | $ | 9.20 | |||||||||
$ | 9.50 | 78,300 | 3.3 | 78,300 | $ | 9.50 | |||||||||
$ | 10.00 | 44,617 | 2.2 | 44,617 | $ | 10.00 | |||||||||
$ | 11.00 | 500 | 0.3 | 500 | $ | 11.00 | |||||||||
$ | 8.94 | 195,317 | 3.4 | 195,317 | $ | 8.94 |
Stock Award Compensation Expense | |||
(Dollars in Thousands) | |||
For the fiscal year remainder: | |||
2012 | $ | 658 | |
2013 | 2,287 | ||
2014 | 950 | ||
2015 | 129 | ||
Total | $ | 4,024 |
Restricted Stock and Restricted Stock Unit Shares | Weighted-Average Grant-Date Fair Value | |||||
Non-vested balance at July 1, 2010 | 199,148 | $ | 7.88 | |||
Granted | 399,582 | $ | 11.95 | |||
Vested | (197,442 | ) | $ | 9.04 | ||
Cancelled | (11,214 | ) | $ | 11.77 | ||
Non-vested balance at June 30, 2011 | 390,074 | $ | 11.35 | |||
Granted | 153,221 | $ | 13.48 | |||
Vested | (68,673 | ) | $ | 10.48 | ||
Cancelled | (4,075 | ) | $ | 15.37 | ||
Non-vested balance at March 31, 2012 | 470,547 | $ | 12.18 |
7. | EARNINGS PER SHARE ("EPS") |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(Dollars in Thousands, except per share data) | |||||||||||||||
Earnings Per Common Share | |||||||||||||||
Net income | $ | 7,718 | $ | 5,275 | $ | 20,911 | $ | 15,036 | |||||||
Preferred stock dividends | (387 | ) | (77 | ) | (893 | ) | (232 | ) | |||||||
Net income attributable to common shareholders | $ | 7,331 | $ | 5,198 | $ | 20,018 | $ | 14,804 | |||||||
Average common shares issued and outstanding | 11,448,404 | 10,310,743 | 11,163,025 | 10,259,510 | |||||||||||
Average unvested Restricted stock grant and RSU shares | 470,901 | 506,168 | 449,862 | 438,895 | |||||||||||
Total qualifying shares | 11,919,305 | 10,816,911 | 11,612,887 | 10,698,405 | |||||||||||
Earnings per common share | $ | 0.62 | $ | 0.48 | $ | 1.72 | $ | 1.38 | |||||||
Diluted Earnings Per Common Share | |||||||||||||||
Net income attributable to common shareholders | $ | 7,331 | $ | 5,198 | $ | 20,018 | $ | 14,804 | |||||||
Preferred stock dividends to dilutive convertible preferred | 302 | — | 653 | — | |||||||||||
Dilutive net income attributable to common shareholders | $ | 7,633 | $ | 5,198 | $ | 20,671 | $ | 14,804 | |||||||
Average common shares issued and outstanding | 11,919,305 | 10,816,911 | 11,612,887 | 10,698,405 | |||||||||||
Dilutive effect of Stock Options | 58,507 | 106,944 | 60,353 | 101,364 | |||||||||||
Dilutive effect of convertible preferred stock | 1,249,091 | — | 629,888 | — | |||||||||||
Total dilutive common shares issued and outstanding | 13,226,903 | 10,923,855 | 12,303,128 | 10,799,769 | |||||||||||
Diluted earnings per common share | $ | 0.58 | $ | 0.48 | $ | 1.68 | $ | 1.37 |
8. | COMMITMENTS AND CONTINGENCIES |
9. | RELATED PARTY TRANSACTIONS |
Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
March 31, 2012 | June 30, 2011 | March 31, 2011 | |||||||||
Selected Balance Sheet Data: | |||||||||||
Total assets | $ | 2,278,030 | $ | 1,940,087 | $ | 1,736,178 | |||||
Loans—net of allowance for loan losses | 1,595,704 | 1,325,101 | 1,113,813 | ||||||||
Loans held for sale, at fair value | 44,286 | 20,110 | 3,652 | ||||||||
Loans held for sale, lower of cost or market | 45,329 | — | — | ||||||||
Allowance for loan losses | 8,355 | 7,419 | 6,892 | ||||||||
Securities—trading | 5,983 | 5,053 | 4,469 | ||||||||
Securities—available for sale | 170,397 | 145,671 | 158,983 | ||||||||
Securities—held to maturity | 328,528 | 370,626 | 381,711 | ||||||||
Total deposits | 1,575,473 | 1,340,325 | 1,265,797 | ||||||||
Securities sold under agreements to repurchase | 120,000 | 130,000 | 130,000 | ||||||||
Advances from the FHLB | 359,000 | 305,000 | 186,000 | ||||||||
Subordinated debentures and other borrowings | 5,155 | 7,655 | 5,155 | ||||||||
Total stockholders’ equity | 203,239 | 147,766 | 142,184 |
At or for the Three Months Ended | At or for the Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Selected Income Statement Data: | |||||||||||||||
Interest and dividend income | $ | 29,348 | $ | 23,928 | $ | 85,729 | $ | 67,603 | |||||||
Interest expense | 9,013 | 8,625 | 28,131 | 25,503 | |||||||||||
Net interest income | 20,335 | 15,303 | 57,598 | 42,100 | |||||||||||
Provision for loan losses | 2,000 | 1,150 | 5,963 | 4,350 | |||||||||||
Net interest income after provision for loan losses | 18,335 | 14,153 | 51,635 | 37,750 | |||||||||||
Non-interest income | 3,856 | 1,924 | 11,412 | 5,973 | |||||||||||
Non-interest expense | 9,190 | 7,429 | 27,946 | 18,868 | |||||||||||
Income before income tax expense | 13,001 | 8,648 | 35,101 | 24,855 | |||||||||||
Income tax expense | 5,283 | 3,373 | 14,190 | 9,819 | |||||||||||
Net income | $ | 7,718 | $ | 5,275 | $ | 20,911 | $ | 15,036 | |||||||
Net income attributable to common stock | $ | 7,331 | $ | 5,198 | $ | 20,018 | $ | 14,804 | |||||||
Per Share Data: | |||||||||||||||
Net income: | |||||||||||||||
Basic | $ | 0.62 | $ | 0.48 | $ | 1.72 | $ | 1.38 | |||||||
Diluted | $ | 0.58 | $ | 0.48 | $ | 1.68 | $ | 1.37 | |||||||
Book value per common share | $ | 15.64 | $ | 13.25 | $ | 15.64 | $ | 13.25 | |||||||
Tangible book value per common share | $ | 15.64 | $ | 13.25 | $ | 15.64 | $ | 13.25 | |||||||
Weighted average number of shares outstanding: | |||||||||||||||
Basic | 11,919,305 | 10,816,911,000 | 11,612,887 | 10,698,405,000 | |||||||||||
Diluted | 13,226,903 | 10,923,855,000 | 12,303,128 | 10,799,769,000 | |||||||||||
Common shares outstanding at end of period | 11,430,145 | 10,351,831,000 | 11,430,145 | 10,351,831,000 | |||||||||||
Common shares issued at end of period | 12,174,770 | 11,003,606,000 | 12,174,770 | 11,003,606,000 | |||||||||||
Performance Ratios and Other Data: | |||||||||||||||
Loan originations for investment | $ | 145,312 | $ | 152,290 | $ | 530,091 | $ | 361,126 | |||||||
Loan originations for sale | 179,399 | 23,306 | 497,578 | 162,991 | |||||||||||
Loan purchases | — | 6,922 | — | 110,682 | |||||||||||
Return on average assets | 1.38 | % | 1.25 | % | 1.30 | % | 1.28 | % | |||||||
Return on average common stockholders’ equity | 16.80 | % | 15.35 | % | 16.64 | % | 15.02 | % | |||||||
Interest rate spread1 | 3.57 | % | 3.56 | % | 3.50 | % | 3.48 | % | |||||||
Net interest margin2 | 3.72 | % | 3.71 | % | 3.66 | % | 3.66 | % | |||||||
Efficiency ratio | 37.99 | % | 43.12 | % | 40.50 | % | 39.25 | % | |||||||
Capital Ratios: | |||||||||||||||
Equity to assets at end of period | 8.92 | % | 8.19 | % | 8.92 | % | 8.19 | % | |||||||
Tier 1 leverage (core) capital to adjusted tangible assets3 | 8.42 | % | 8.11 | % | 8.42 | % | 8.11 | % | |||||||
Tier 1 risk-based capital ratio3 | 13.47 | % | 12.97 | % | 13.47 | % | 12.97 | % | |||||||
Total risk-based capital ratio3 | 14.05 | % | 13.61 | % | 14.05 | % | 13.61 | % | |||||||
Tangible capital to tangible assets3 | 8.42 | % | 8.11 | % | 8.42 | % | 8.11 | % | |||||||
Asset Quality Ratios: | |||||||||||||||
Net annualized charge-offs to average loans outstanding | 0.43 | % | 0.43 | % | 0.41 | % | 0.51 | % | |||||||
Nonperforming loans to total loans | 0.99 | % | 0.94 | % | 0.99 | % | 0.94 | % | |||||||
Nonperforming assets to total assets | 0.76 | % | 1.11 | % | 0.76 | % | 1.11 | % | |||||||
Allowance for loan losses to total loans at end of period | 0.52 | % | 0.61 | % | 0.52 | % | 0.61 | % | |||||||
Allowance for loan losses to nonperforming loans | 52.14 | % | 64.93 | % | 52.14 | % | 64.93 | % |
• | Net interest income increased $5,032,000 in the quarter ended March 31, 2012 due to a 32.7% increase in average earning assets primarily from loan originations. Our net interest margin increased 1 basis points in the quarter ended March 31, 2012 compared to March 31, 2011, as the earning rates on loans decreased 42 basis points and rates on securities decreased 65 basis points, partially offset by a decrease in the rates paid on deposits and borrowings of 45 basis points. |
• | Non-interest income increased $1,932,000 for the quarter ended March 31, 2012 compared to the quarter ended March 31, 2011. The increase in non-interest income was primarily the result of a $3,955,000 increase in gain on sale of loans held for sale and fair value gains from trading securities of $305,000, offset by impairment on investment securities of $1,211,000. |
• | Non-interest expense increased $1,761,000 for the quarter ended March 31, 2012 compared to the quarter ended March 31, 2011 primarily due to a $1,437,000 increase in compensation attributed to increased staffing and office expansion. |
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Net Income | $ | 7,718 | $ | 5,275 | $ | 20,911 | $ | 15,036 | ||||||||
Realized securities gains | — | (1,478 | ) | — | (1,960 | ) | ||||||||||
Unrealized securities losses | 906 | 131 | 1,593 | 988 | ||||||||||||
Tax provision | (368 | ) | 525 | (643 | ) | 385 | ||||||||||
Core Earnings | $ | 8,256 | $ | 4,453 | $ | 21,861 | $ | 14,449 |
For the three month period ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Average Balance2 | Interest Income/ Expense | Average Yields Earned/Rates Paid1 | Average Balance2 | Interest Income/ Expense | Average Yields Earned/Rates Paid1 | ||||||||||||||||
Assets: | |||||||||||||||||||||
Loans3, 4 | $ | 1,653,455 | $ | 22,898 | 5.54 | % | $ | 1,060,438 | $ | 15,811 | 5.96 | % | |||||||||
Federal funds sold | 14,763 | 5 | 0.14 | % | 8,460 | 3 | 0.14 | % | |||||||||||||
Interest-earning deposits in other financial institutions | 272 | — | — | % | 849 | — | — | % | |||||||||||||
Mortgage-backed and other investment securities5 | 501,676 | 6,426 | 5.12 | % | 561,906 | 8,102 | 5.77 | % | |||||||||||||
Stock of the FHLB, at cost | 17,074 | 19 | 0.45 | % | 16,732 | 12 | 0.29 | % | |||||||||||||
Total interest-earning assets | 2,187,240 | 29,348 | 5.37 | % | 1,648,385 | 23,928 | 5.81 | % | |||||||||||||
Non-interest-earning assets | 46,755 | 42,929 | |||||||||||||||||||
Total assets | $ | 2,233,995 | $ | 1,691,314 | |||||||||||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||||||
Interest-bearing demand and savings | $ | 567,136 | $ | 1,294 | 0.91 | % | $ | 317,733 | $ | 681 | 0.86 | % | |||||||||
Time deposits | 969,011 | 4,885 | 2.02 | % | 875,017 | 5,035 | 2.30 | % | |||||||||||||
Securities sold under agreements to repurchase | 123,235 | 1,346 | 4.37 | % | 130,000 | 1,415 | 4.35 | % | |||||||||||||
Advances from the FHLB | 337,261 | 1,451 | 1.72 | % | 207,873 | 1,459 | 2.81 | % | |||||||||||||
Other borrowings | 5,155 | 37 | 2.87 | % | 5,156 | 35 | 2.72 | % | |||||||||||||
Total interest-bearing liabilities | 2,001,798 | 9,013 | 1.80 | % | 1,535,779 | 8,625 | 2.25 | % | |||||||||||||
Non-interest-bearing demand deposits | 16,697 | 6,844 | |||||||||||||||||||
Other non-interest-bearing liabilities | 16,473 | 8,188 | |||||||||||||||||||
Stockholders’ equity | 199,027 | 140,503 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,233,995 | $ | 1,691,314 | |||||||||||||||||
Net interest income | $ | 20,335 | $ | 15,303 | |||||||||||||||||
Interest rate spread6 | 3.57 | % | 3.56 | % | |||||||||||||||||
Net interest margin7 | 3.72 | % | 3.71 | % |
1. | Annualized. |
2. | Average balances are obtained from daily data. |
3. | Loans include loans held for sale, loan premiums and unearned fees. |
4. | Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees. Loan fee income is not significant. Also, includes $33.5 million of Community Reinvestment Act loans which are taxed at a reduced rate. |
5. | Includes $5.5 million of municipal securities which are taxed at a reduced rate. |
6. | Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities. |
7. | Net interest margin represents net interest income as a percentage of average interest-earning assets. |
For the nine month period ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Average Balance2 | Interest Income/ Expense | Average Yields Earned/Rates Paid1 | Average Balance2 | Interest Income/ Expense | Average Yields Earned/Rates Paid1 | ||||||||||||||||
Assets: | |||||||||||||||||||||
Loans3, 4 | $ | 1,562,549 | $ | 65,503 | 5.59 | % | $ | 943,302 | $ | 42,900 | 6.06 | % | |||||||||
Federal funds sold | 13,269 | 9 | 0.09 | % | 9,188 | 9 | 0.13 | % | |||||||||||||
Interest-earning deposits in other financial institutions | 264 | — | — | % | 407 | — | — | % | |||||||||||||
Mortgage-backed and other investment securities5 | 508,398 | 20,176 | 5.29 | % | 561,588 | 24,644 | 5.85 | % | |||||||||||||
Stock of the FHLB, at cost | 15,982 | 41 | 0.34 | % | 17,210 | 50 | 0.39 | % | |||||||||||||
Total interest-earning assets | 2,100,462 | 85,729 | 5.44 | % | 1,531,695 | 67,603 | 5.88 | % | |||||||||||||
Non-interest-earning assets | 45,577 | 37,923 | |||||||||||||||||||
Total assets | $ | 2,146,039 | $ | 1,569,618 | |||||||||||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||||||
Interest-bearing demand and savings | $ | 462,032 | $ | 3,197 | 0.92 | % | $ | 346,861 | $ | 2,248 | 0.86 | % | |||||||||
Time deposits | 1,025,647 | 16,080 | 2.09 | % | 720,689 | 14,010 | 2.59 | % | |||||||||||||
Securities sold under agreements to repurchase | 127,745 | 4,237 | 4.42 | % | 130,000 | 4,306 | 4.42 | % | |||||||||||||
Advances from the FHLB | 316,953 | 4,506 | 1.90 | % | 215,157 | 4,828 | 2.99 | % | |||||||||||||
Other borrowings | 5,155 | 111 | 2.87 | % | 5,160 | 111 | 2.87 | % | |||||||||||||
Total interest-bearing liabilities | 1,937,532 | 28,131 | 1.94 | % | 1,417,867 | 25,503 | 2.40 | % | |||||||||||||
Non-interest-bearing demand deposits | 14,903 | 8,098 | |||||||||||||||||||
Other non-interest-bearing liabilities | 15,023 | 7,194 | |||||||||||||||||||
Stockholders’ equity | 178,581 | 136,459 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,146,039 | $ | 1,569,618 | |||||||||||||||||
Net interest income | $ | 57,598 | $ | 42,100 | |||||||||||||||||
Interest rate spread6 | 3.50 | % | 3.48 | % | |||||||||||||||||
Net interest margin7 | 3.66 | % | 3.66 | % |
1. | Annualized. |
2. | Average balances are obtained from daily data. |
3. | Loans include loans held for sale, loan premiums and unearned fees. |
4. | Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees. Loan fee income is not significant. Also, includes $33.5 million of Community Reinvestment Act loans which are taxed at a reduced rate. |
5. | Includes $5.5 million of municipal securities which are taxed at a reduced rate. |
6. | Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities. |
7. | Net interest margin represents net interest income as a percentage of average interest-earning assets. |
For the Three Months Ended March 31, 2012 vs 2011 | For the Nine Months Ended March 31, 2012 vs 2011 | ||||||||||||||||||||||||||||||
Increase (Decrease) Due to | Increase (Decrease) Due to | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
Volume | Rate | Rate/Volume | Total Increase (Decrease) | Volume | Rate | Rate/Volume | Total Increase (Decrease) | ||||||||||||||||||||||||
Increase/(decrease) in interest income: | |||||||||||||||||||||||||||||||
Loans | 8,836 | (1,113 | ) | (636 | ) | 7,087 | 28,145 | (3,325 | ) | (2,217 | ) | 22,603 | |||||||||||||||||||
Federal funds sold | 2 | — | — | 2 | 4 | (3 | ) | (1 | ) | — | |||||||||||||||||||||
Interest-earning deposits in other financial institutions | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Mortgage-backed and other investment securities | (869 | ) | (913 | ) | 106 | (1,676 | ) | (2,334 | ) | (2,359 | ) | 225 | (4,468 | ) | |||||||||||||||||
Stock of the FHLB, at cost | — | 7 | — | 7 | (4 | ) | (6 | ) | 1 | (9 | ) | ||||||||||||||||||||
7,969 | (2,019 | ) | (530 | ) | 5,420 | $ | 25,811 | $ | (5,693 | ) | $ | (1,992 | ) | $ | 18,126 | ||||||||||||||||
Increase/(decrease) in interest expense: | |||||||||||||||||||||||||||||||
Interest-bearing demand and savings | $ | 536 | $ | 40 | $ | 37 | $ | 613 | $ | 743 | $ | 156 | $ | 50 | $ | 949 | |||||||||||||||
Time deposits | 540 | (613 | ) | (77 | ) | (150 | ) | 5,924 | (2,703 | ) | (1,151 | ) | 2,070 | ||||||||||||||||||
Securities sold under agreements to repurchase | (74 | ) | 7 | (2 | ) | (69 | ) | (75 | ) | — | 6 | (69 | ) | ||||||||||||||||||
Advances from the FHLB | 909 | (566 | ) | (351 | ) | (8 | ) | 2,283 | (1,759 | ) | (846 | ) | (322 | ) | |||||||||||||||||
Other borrowings | — | 2 | — | 2 | — | — | — | — | |||||||||||||||||||||||
$ | 1,911 | $ | (1,130 | ) | $ | (393 | ) | $ | 388 | $ | 8,875 | $ | (4,306 | ) | $ | (1,941 | ) | $ | 2,628 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||||
2012 | 2011 | Inc (Dec) | 2012 | 2011 | Inc (Dec) | ||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||
Realized gain on securities: | |||||||||||||||||||||||
Sale of mortgage-backed securities | $ | — | $ | 1,478 | $ | (1,478 | ) | — | 1,960 | $ | (1,960 | ) | |||||||||||
Total realized gain on securities | — | 1,478 | (1,478 | ) | — | 1,960 | (1,960 | ) | |||||||||||||||
Other-than-temporary loss on securities: | |||||||||||||||||||||||
Total impairment losses | (1,211 | ) | (1,504 | ) | 293 | (2,643 | ) | (4,733 | ) | 2,090 | |||||||||||||
Loss recognized in other comprehensive loss | — | 1,331 | (1,331 | ) | 120 | 3,678 | (3,558 | ) | |||||||||||||||
Net impairment loss recognized in earnings | (1,211 | ) | (173 | ) | (1,038 | ) | (2,523 | ) | (1,055 | ) | (1,468 | ) | |||||||||||
Fair value gain on trading securities | 305 | 42 | 263 | 930 | 67 | 863 | |||||||||||||||||
Total unrealized loss on securities | (906 | ) | (131 | ) | (775 | ) | (1,593 | ) | (988 | ) | (605 | ) | |||||||||||
Prepayment penalty fee income | 189 | 25 | 164 | 315 | 1,025 | (710 | ) | ||||||||||||||||
Mortgage banking income | 4,399 | 444 | 3,955 | 12,215 | 3,630 | 8,585 | |||||||||||||||||
Banking service fees and other income | 174 | 108 | 66 | 475 | 346 | 129 | |||||||||||||||||
Total non-interest income | $ | 3,856 | $ | 1,924 | $ | 1,932 | $ | 11,412 | $ | 5,973 | $ | 5,439 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||||
2012 | 2011 | Inc (Dec) | 2012 | 2011 | Inc (Dec) | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Salaries, employee benefits and stock-based compensation | $ | 5,270 | $ | 3,833 | $ | 1,437 | $ | 14,952 | $ | 10,240 | $ | 4,712 | |||||||||||
Professional services | 365 | 525 | (160 | ) | 1,542 | 1,544 | (2 | ) | |||||||||||||||
Occupancy and equipment | 301 | 257 | 44 | 856 | 606 | 250 | |||||||||||||||||
Data processing and internet | 666 | 216 | 450 | 1,649 | 693 | 956 | |||||||||||||||||
Advertising and promotional | 788 | 261 | 527 | 1,852 | 592 | 1,260 | |||||||||||||||||
Depreciation and amortization | 347 | 181 | 166 | 977 | 364 | 613 | |||||||||||||||||
Real estate owned and repossessed vehicles | (25 | ) | 796 | (821 | ) | 2,003 | 1,248 | 755 | |||||||||||||||
FDIC and primary federal regulator fees | 422 | 559 | (137 | ) | 1,088 | 1,474 | (386 | ) | |||||||||||||||
Other general and administrative | 1,056 | 801 | 255 | 3,027 | 2,107 | 920 | |||||||||||||||||
Total non-interest expenses | $ | 9,190 | $ | 7,429 | $ | 1,761 | $ | 27,946 | $ | 18,868 | $ | 9,078 |
March 31, 2012 | June 30, 2011 | ||||||||||||
(Dollars in thousands) | |||||||||||||
Amount | Percent | Amount | Percent | ||||||||||
Residential real estate loans: | |||||||||||||
Single family (one to four units) | $ | 732,901 | 45.5 | % | $ | 517,637 | 38.7 | % | |||||
Home equity | 30,795 | 1.9 | % | 36,424 | 2.7 | % | |||||||
Multifamily (five units or more) | 655,742 | 40.7 | % | 647,381 | 48.4 | % | |||||||
Commercial real estate and land loans | 36,939 | 2.3 | % | 37,985 | 2.8 | % | |||||||
Consumer—Recreational vehicle | 25,733 | 1.6 | % | 30,406 | 2.3 | % | |||||||
Commercial secured and other | 129,509 | 8.0 | % | 66,582 | 5.1 | % | |||||||
Total loans held for investment | $ | 1,611,619 | 100.0 | % | $ | 1,336,415 | 100.0 | % | |||||
Allowance for loan losses | (8,355 | ) | (7,419 | ) | |||||||||
Unamortized premiums/discounts, net of deferred loan fees | (7,560 | ) | (3,895 | ) | |||||||||
Net loans held for investment | $ | 1,595,704 | $ | 1,325,101 |
March 31, 2012 | June 30, 2011 | Inc (Dec) | |||||||||
(Dollars in thousands) | |||||||||||
Nonperforming assets: | |||||||||||
Non-accrual loans: | |||||||||||
Loans secured by real estate: | |||||||||||
Single family | $ | 9,271 | $ | 6,586 | $ | 2,685 | |||||
Home equity loans | 59 | 157 | (98 | ) | |||||||
Multifamily | 5,688 | 2,744 | 2,944 | ||||||||
Commercial | 279 | — | 279 | ||||||||
Total nonaccrual loans secured by real estate | 15,297 | 9,487 | 5,810 | ||||||||
RV / Auto | 727 | 125 | 602 | ||||||||
Total nonperforming loans | 16,024 | 9,612 | 6,412 | ||||||||
Foreclosed real estate | 737 | 7,678 | (6,941 | ) | |||||||
Repossessed—vehicles | 627 | 1,926 | (1,299 | ) | |||||||
Total nonperforming assets | $ | 17,388 | $ | 19,216 | $ | (1,828 | ) | ||||
Total nonperforming loans as a percentage of total loans1 | 0.99 | % | 0.72 | % | 0.27 | % | |||||
Total nonperforming assets as a percentage of total assets1 | 0.76 | % | 0.99 | % | (0.23 | )% |
March 31, 2012 | June 30, 2011 | ||||||
(Dollars in Thousands) | |||||||
Nonperforming loans—90+ days past due plus other non-accrual loans | $ | 12,920 | $ | 8,417 | |||
Troubled debt restructuring loans—non-accrual | 3,104 | 1,195 | |||||
Troubled debt restructuring loans—performing | 5,591 | 7,748 | |||||
Total impaired loans | $ | 21,615 | $ | 17,360 |
March 31, 2012 | June 30, 2011 | ||||||||||||
Amount of Allowance | Allocation as a % of Allowance | Amount of Allowance | Allocation as a % of Allowance | ||||||||||
(Dollars in thousands) | |||||||||||||
Single family | $ | 3,040 | 36.39 | % | $ | 2,277 | 30.69 | % | |||||
Home equity | 280 | 3.35 | % | 158 | 2.13 | % | |||||||
Multifamily | 2,062 | 24.68 | % | 2,326 | 31.35 | % | |||||||
Commercial real estate and land | 170 | 2.03 | % | 167 | 2.25 | % | |||||||
Consumer—Recreational vehicles | 2,560 | 30.64 | % | 2,441 | 32.90 | % | |||||||
Other | 243 | 2.91 | % | 50 | 0.67 | % | |||||||
Total | $ | 8,355 | 100.00 | % | $ | 7,419 | 100.00 | % |
March 31, 2012 | June 30, 2011 | ||||||||||||
Amount | Rate1 | Amount | Rate1 | ||||||||||
(Dollars in thousands) | |||||||||||||
Non-interest bearing: | $ | 11,363 | — | % | $ | 7,369 | — | % | |||||
Interest bearing: | |||||||||||||
Demand | 89,930 | 0.68 | % | 76,793 | 0.75 | % | |||||||
Savings | 486,391 | 0.83 | % | 268,384 | 0.93 | % | |||||||
Time deposits: | |||||||||||||
Under $100,000 | 445,518 | 2.40 | % | 337,937 | 2.24 | % | |||||||
$100,000 or more | 542,271 | 1.53 | % | 649,842 | 2.15 | % | |||||||
Total time deposits2 | 987,789 | 1.92 | % | 987,779 | 2.18 | % | |||||||
Total interest bearing | 1,564,110 | 1.51 | % | 1,332,956 | 1.85 | % | |||||||
Total deposits | $ | 1,575,473 | 1.50 | % | $ | 1,340,325 | 1.84 | % |
March 31, 2012 | June 30, 2011 | March 31, 2011 | ||||
Checking and savings accounts | 19,249 | 16,105 | 15,064 | |||
Time deposits | 13,584 | 16,793 | 13,997 | |||
Total number of deposit accounts | 32,833 | 32,898 | 29,061 |
March 31, 2012 | June 30, 2011 | March 31, 2011 | |||||||||||||||||||
Balance | Weighted Average Rate | Balance | Weighted Average Rate | Balance | Weighted Average Rate | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Repurchase agreements | $ | 120,000 | 4.34 | % | $ | 130,000 | 4.35 | % | $ | 130,000 | 4.35 | % | |||||||||
FHLB Advances | 359,000 | 1.50 | % | 305,000 | 2.07 | % | 186,000 | 2.96 | % | ||||||||||||
Subordinated debentures and other borrowings | 5,155 | 2.89 | % | 7,655 | 2.14 | % | 5,155 | 2.71 | % | ||||||||||||
$ | 484,155 | 2.22 | % | $ | 442,655 | 2.74 | % | $ | 321,155 | 3.52 | % | ||||||||||
Weighted average cost of borrowings during the quarter | 2.22 | % | 2.74 | % | 3.52 | % | |||||||||||||||
Borrowings as a percent of total assets | 21.25 | % | 22.82 | % | 18.50 | % |
Nine Months Ended March 31, | |||||||
2012 | 2011 | ||||||
(Dollars in Thousands) | |||||||
Operating Activities | $ | (47,941 | ) | $ | 9,796 | ||
Investing Activities | $ | (245,053 | ) | $ | (318,637 | ) | |
Financing Activities | $ | 309,800 | $ | 301,317 |
Payments Due by Period1 | |||||||||||||||||||
Total | Less Than One Year | One To Three Years | Three To Five Years | More Than Five Years | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Long-term debt obligations2 | $ | 522,628 | $ | 211,416 | $ | 152,089 | $ | 57,923 | $ | 101,200 | |||||||||
Time deposits2 | 1,001,985 | 579,865 | 195,297 | 110,366 | 116,457 | ||||||||||||||
Operating lease obligations3 | 11,213 | 1,428 | 2,877 | 2,791 | 4,117 | ||||||||||||||
Total | $ | 1,535,826 | $ | 792,709 | $ | 350,263 | $ | 171,080 | $ | 221,774 |
1. | Our contractual obligations include long-term debt, time deposits and operating leases as shown. We had no capitalized leases or material commitments for capital expenditures at March 31, 2012. |
2. | Amounts include principal and interest due to recipient. |
3. | Payments are for a lease of real property. |
Actual | For Capital Adequacy Purposes | To be “Well Capitalized” Under Prompt Corrective Action Regulations | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Tier 1 leverage (core) capital to adjusted tangible assets | $191,978 | 8.42 | % | $91,216 | 4.00 | % | $114,020 | 5.00 | % | |||||||||||
Tier 1 capital (to risk-weighted assets) | 191,978 | 13.47 | % | N/A | N/A | 85,534 | 6.00 | % | ||||||||||||
Total capital (to risk-weighted assets) | 200,333 | 14.05 | % | 114,045 | 8.00 | % | 142,556 | 10.00 | % | |||||||||||
Tangible capital (to tangible assets) | 191,978 | 8.42 | % | 34,206 | 1.50 | % | N/A | N/A |
Term to Repricing, Repayment, or Maturity at | |||||||||||||||
March 31, 2012 | |||||||||||||||
Over One Year or Less | Over One Year Through Five Years | Over Five Years | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Interest-earning assets: | |||||||||||||||
Cash and cash equivalents | $ | 25,857 | $ | — | $ | — | $ | 25,857 | |||||||
Securities1 | 281,138 | 37,735 | 186,036 | 504,909 | |||||||||||
Stock of the FHLB, at cost | 16,873 | — | — | 16,873 | |||||||||||
Loans—net of allowance for loan loss2 | 354,936 | 753,820 | 486,947 | 1,595,703 | |||||||||||
Loans held for sale | 89,615 | — | — | 89,615 | |||||||||||
Total interest-earning assets | 768,419 | 791,555 | 672,983 | 2,232,957 | |||||||||||
Non-interest earning assets | — | — | — | 45,073 | |||||||||||
Total assets | $ | 768,419 | $ | 791,555 | $ | 672,983 | $ | 2,278,030 | |||||||
Interest-bearing liabilities: | |||||||||||||||
Interest-bearing deposits3 | $ | 1,147,723 | $ | 300,914 | $ | 115,473 | $ | 1,564,110 | |||||||
Securities sold under agreements to repurchase | 10,000 | 75,000 | 35,000 | 120,000 | |||||||||||
Advances from the FHLB4 | 191,000 | 113,000 | 55,000 | 359,000 | |||||||||||
Other borrowed funds | 5,155 | — | — | 5,155 | |||||||||||
Total interest-bearing liabilities | 1,353,878 | 488,914 | 205,473 | 2,048,265 | |||||||||||
Other non-interest-bearing liabilities | — | — | — | 26,526 | |||||||||||
Stockholders’ equity | — | — | — | 203,239 | |||||||||||
Total liabilities and equity | $ | 1,353,878 | $ | 488,914 | $ | 205,473 | $ | 2,278,030 | |||||||
Net interest rate sensitivity gap | $ | (585,459 | ) | $ | 302,641 | $ | 467,510 | $ | 184,692 | ||||||
Cumulative gap | $ | (585,459 | ) | $ | (282,818 | ) | $ | 184,692 | $ | 184,692 | |||||
Net interest rate sensitivity gap—as a % of interest earning assets | (76.19 | )% | 38.23 | % | 69.47 | % | 8.27 | % | |||||||
Cumulative gap—as % of cumulative interest earning assets | (76.19 | )% | (18.13 | )% | 8.27 | % | 8.27 | % |
(Dollars in thousands) | Net Present Value | Percentage Change from Base | Net Present Value as a Percentage of Assets | ||||||
Up 300 basis points | $ | 161,213 | (32.7 | )% | 7.41 | % | |||
Up 200 basis points | 185,563 | (22.5 | )% | 8.32 | % | ||||
Up 100 basis points | 213,115 | (11.0 | )% | 9.31 | % | ||||
Base | 239,555 | — | % | 10.19 | % | ||||
Down 100 basis points | 258,710 | 8.0 | % | 10.77 | % | ||||
Down 200 basis points | 283,735 | 18.4 | % | 11.66 | % |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Period | Number of Shares Purchased | Average Price Paid Per Shares | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs | ||||||||
Stock Repurchases | ||||||||||||
Shares purchased as part of publicly announced plans | ||||||||||||
Beginning Balance at July 1, 2011 | 595,700 | $ | 5.72 | 595,700 | 319,291 | |||||||
Ending Balance at March 31, 2012 | 595,700 | $ | 5.72 | 595,700 | 319,291 | |||||||
Stock Retained in Net Settlement | ||||||||||||
Beginning Balance at July 1, 2011 | 119,931 | |||||||||||
July 1, 2011 to July 31, 2011 | 1,372 | |||||||||||
August 1, 2011 to August 31, 2011 | 9,269 | |||||||||||
September 1, 2011 to September 30, 2011 | 11,140 | |||||||||||
October 1, 2011 to October 31, 2011 | 2,420 | |||||||||||
November 1, 2011 to November 30, 2011 | — | |||||||||||
December 1, 2011 to December 31, 2011 | 3,188 | |||||||||||
January 1, 2012 to January 31, 2012 | 691 | |||||||||||
February 1, 2012 to February 29, 2012 | 228 | |||||||||||
March 1, 2012 to March 31, 2012 | 686 | |||||||||||
Ending Balance at March 31, 2012 | 148,925 | |||||||||||
Total Treasury Shares at March 31, 2012 | 744,625 |
ITEM 6. | EXHIBITS |
Exhibit | Document | |
31.1 | Chief Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2 | Chief Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
32.1 | Chief Executive Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
32.2 | Chief Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101.INS | XBRL Instant Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Calculation Linkbase Document | |
101.LAB | XBRL Taxonomy Label Linkbase Document | |
101.PRE | XBRL Taxonomy Presentation Linkbase Document | |
101.DEF | XBRL Taxonomy Definition Document | |
BofI Holding, Inc. | |||||
Dated: | May 3, 2012 | By: | /s/ Gregory Garrabrants | ||
Gregory Garrabrants President and Chief Executive Officer (Principal Executive Officer) | |||||
Dated: | May 3, 2012 | By: | /s/ Michael R. Sisk | ||
Michael R. Sisk Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) | |||||
Dated: | May 3, 2012 | By: | /s/ Andrew J. Micheletti | ||
Andrew J. Micheletti Executive Vice President and Chief Financial Officer (Principal Financial Officer) | |||||
1. | I have reviewed this quarterly report on Form 10-Q of BofI Holding, Inc. (the “registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the period presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d -15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting or, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures, and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting. |
Dated: | May 3, 2012 | /s/ GREGORY GARRABRANTS | ||
GREGORY GARRABRANTS President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of BofI Holding, Inc. (the “registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the period presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d -15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting or, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures, and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting. |
Dated: | May 3, 2012 | /s/ MICHAEL R. SISK | ||
MICHAEL R. SISK Senior Vice President and Chief Accounting Officer |
a) | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
b) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods presented in the financial statements included in such Report. |
Dated: | May 3, 2012 | /s/ GREGORY GARRABRANTS | ||
GREGORY GARRABRANTS President and Chief Executive Officer |
a) | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
b) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods presented in the financial statements included in such Report. |
Dated: | May 3, 2012 | /s/ ANDREW J. MICHELETTI | ||
ANDREW J. MICHELETTI Executive Vice President and Chief Financial Officer |
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FAIR VALUE
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Mar. 31, 2012
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Text Block] | FAIR VALUE Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC Topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:
When available, the Company generally uses quoted market prices to determine fair value, in which case the items are classified in Level 1. In some cases where a market price is available, the Company will make use of acceptable practical expedients (such as matrix pricing) to calculate fair value, in which case the items are classified in Level 2. The Company considers relevant and observable market prices in its valuations where possible. The frequency of transactions, the size of the bid-ask spread and the nature of the participants are some of the factors the Company uses to help determine whether a market is active and orderly or inactive and not orderly. Price quotes based upon transactions that are not orderly are not considered to be determinative of fair value and should be given little, if any, weight in measuring fair value. If quoted market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sourced market parameters, such as interest rates, credit spreads, housing value forecasts, etc. Items valued using such internally generated valuation techniques are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable. The following section describes the valuation methodologies used by the Company to measure various financial instruments at fair value, including an indication of the level in the fair-value hierarchy in which each instrument is generally classified: Securities—trading. Trading securities are recorded at fair value. The trading portfolio consists of two different issues of floating-rate debt securities collateralized by pools of bank trust preferred securities. Recent liquidity and economic uncertainty have made the market for collateralized debt obligations less active or inactive. As quoted market prices are not available, the Level 3 fair values for these securities are determined by the Company utilizing industry-standard tools to calculate the net present value of the expected cash flows available to the securities from the underlying assets. The Company’s expected cash flows are calculated for each security and include the impact of actual and forecasted bank defaults within each collateral pool as well as structural features of the security’s tranche such as lock outs, subordination and overcollateralization. The forecast of underlying bank defaults in each pool is based upon a quarterly financial update including the trend in non-performing assets, the allowance for loan loss and the underlying bank’s capital ratios. Also a factor is the Company’s loan loss experience in the local economy in which the bank operates. At March 31, 2012, the Company’s forecast of cash flows for both securities includes actual and forecasted defaults totaling 34.70% of all banks in the collateral pools, compared to 28.55% of the banks actually in default. The expected cash flows reflect the Company’s best estimate of all pool losses which are then applied to the overcollateralization reserve and the subordinated tranches to determine the cash flows. The Company selects a discount rate margin based upon the spread between U.S. Treasury rates and the market rates for active credit grades for financial companies. The discount margin when added to the U.S. Treasury rate determines the discount rate, reflecting primarily market liquidity and interest rate risk since expected credit loss is included in the cash flows. At March 31, 2012, the Company used a weighted average discount margin of 425 basis points above U.S. Treasury rates to calculate the net present value of the expected cash flows and the fair value of its trading securities. The Level 3 fair values determined by the Company for its trading securities rely heavily on management’s assumptions as to the future credit performance of the collateral banks, the impact of the global and regional recession, the timing of forecasted defaults and the discount rate applied to cash flows. The fair value of the trading securities at March 31, 2012 is sensitive to an increase or decrease in the discount rate. An increase in the discount margin of 100 basis points would have reduced the total fair value of the trading securities and decreased net income before income tax by $740. A decrease in the discount margin of 100 basis points would have increased the total fair value of the trading securities and increased net income before income tax by $880. Securities—available for sale and held to maturity. Available for sale securities are recorded at fair value and consist of residential mortgage-backed securities (RMBS) and debt securities issued by U.S. agencies as well as RMBS issued by non-agencies. Held to maturity securities are recorded at amortized cost and consist of RMBS issued by U.S. agencies as well as RMBS issued by non-agencies. Fair value for U.S. agency securities is generally based on quoted market prices of similar securities used to form a dealer quote or a pricing matrix. There continues to be significant illiquidity in the market for RMBS issued by non-agencies, impacting the availability and reliability of transparent pricing. As orderly quoted market prices are not available, the Level 3 fair values for these securities are determined by the Company utilizing industry-standard tools to calculate the net present value of the expected cash flows available to the securities from the underlying mortgage assets. The Company computes Level 3 fair values for each non-agency RMBS in the same manner (as described below) whether available for sale or held to maturity. To determine the performance of the underlying mortgage loan pools, the Company estimates prepayments, defaults, and loss severities based on a number of macroeconomic factors, including housing price changes, unemployment rates, interest rates and borrower attributes such as credit score and loan documentation at the time of origination. The Company inputs for each security a projection of monthly default rates, loss severity rates and voluntary prepayment rates for the underlying mortgages for the remaining life of the security to determine the expected cash flows. The projections of default rates are derived by the Company from the historic default rate observed in the pool of loans collateralizing the security, increased by and decreased by the forecasted increase or decrease in the national unemployment rate. The projections of loss severity rates are derived by the Company from the historic loss severity rate observed in the pool of loans, increased by (and decreased by) the forecasted decrease or increase in the national home price appreciation (HPA) index. The largest factor influencing the Company’s modeling of the monthly default rate is unemployment. The most updated national unemployment rate announced prior to the end of the period covered by this report (reported in February 2012) was 8.3%, down from the high of 10.1% in October 2009. Consensus estimates for unemployment are that the rate will continue to decline. Going forward, the Company is projecting lower monthly default rates. The range of loss severity rates applied to each default used in the Company’s projections at March 31, 2012 are from 22.43% up to 78.12% based upon individual bond historical performance. The default rates and the severities are projected for every non-agency RMBS security held by the Company and will vary monthly based upon the actual performance of the security and the macroeconomic factors discussed above. To determine the discount rates used to compute the present value of the expected cash flows for these non-agency RMBS securities, the Company separates the securities by the borrower characteristics in the underlying pool. Specifically, “prime” securities generally have borrowers with higher FICO scores and better documentation of income. “Alt-A” securities generally have borrowers with a little lower FICO and a little less documentation of income. “Pay-option ARMs” are Alt-A securities with borrowers that tend to pay the least amount of principal (or increase their loan balance through negative amortization). The Company calculates separate discount rates for prime, Alt-A and Pay-option ARM non-agency RMBS securities using market-participant assumptions for risk, capital and return on equity. The range of annual default rates used in the Company’s projections at March 31, 2012 are from 1.5% up to 24.08% with prime securities tending toward the lower end of the range and Alt-A and Pay-option ARMs tending toward the higher end of the range. The Company applies its discount rates to the projected monthly cash flows which already reflect the full impact of all forecasted losses using the assumptions described above. When calculating present value of the expected cash flows at March 31, 2012, the Company computed its discount rates as a spread between 222 and 368 basis points over the LIBOR Index using the LIBOR forward curve with prime securities tending toward the lower end of the range and Alt-A and Pay-option ARMs tending toward the higher end of the range. Loans Held for Sale. Loans held for sale at fair value are primarily single-family and multi-family residential loans. The fair value of loans held for sale is determined, by pricing for comparable assets or by existing forward sales commitment prices with investors. Impaired Loans. Impaired loans are loans which are inadequately protected by the current net worth and paying capacity of the borrowers or of the collateral pledged and the accrual of interest income has been discontinued. The impaired loans are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. The Bank assesses loans individually and identifies impairment when the loan is classified as impaired or been restructured or management has serious doubts about the future collectibility of principal and interest, even though the loans may currently be performing. The fair value of an impaired loan is determined based on an observable market price or current appraised value of the underlying collateral. The fair value of impaired loans with specific write-offs or allocations of the allowance for loan and lease losses are generally based on recent real estate appraisals or other third-party valuations and analysis of cash flows. These appraisals and analysis may utilize a single valuation approach or a combination of approaches including comparable sales and income approaches. Adjustments are routinely made in the process by the appraisers to adjust for differences between the comparable sales and income data available. These adjustments to the estimated fair value of non-performing loans may result in increases or decreases to the provision for loan losses recorded in current earnings. Such adjustments are typically significant and result in a Level 3 classification for the inputs for determining fair value. Other Real Estate Owned. Nonrecurring adjustments to certain commercial and residential real estate properties classified as other real estate owned (OREO) are measured at the lower of carrying amount or fair value, less costs to sell. Fair values are generally based on third party appraisals of the property, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. Mortgage Banking Derivatives. Level 3 fair values for mortgage banking derivatives are either based upon prices in active secondary markets for identical securities or based on quoted market prices of similar assets used to form a dealer quote or a pricing matrix. If no such quoted price exists, the fair value of a commitment is determined by quoted prices for a similar commitment or commitments, adjusted for the specific attributes of each commitment. These fair values are then adjusted for items such as fallout and estimated costs to originate the loan. The Company's valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company's valuation methodologies are appropriate and consistent with or, in some cases, more conservative than other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the relevant reporting date. The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis at March 31, 2012 and June 30, 2011. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:
The following table presents additional information about assets measured at fair value on a recurring basis and for which the Company has utilized Level 3 inputs to determine fair value:
The Table below summarizes the quantitative information about level 3 fair value measurements at the periods indicated:
The significant unobservable inputs used in the fair value measurement of the Company's residential mortgage-backed securities are prepayment rates, probability of default, and loss severity in the event of default. Significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for prepayment rates. The Table below summarizes changes in unrealized gains and losses and interest income recorded in earnings for level 3 assets and liabilities that are still held at the periods indicated:
The Table below summarizes assets measured for impairment on a non-recurring basis was as follows:
Impaired loans measured for impairment on a non-recurring basis using the fair value of the collateral for collateral-dependent loans have a carrying amount of $8,637after a charge-off of $3,220, and a no valuation allowance at March 31, 2012, resulting in an additional provision for loan losses of $2,405 during the nine months ended March 31, 2012 and $865 for the nine months ended March 31, 2011. At June 30, 2011, our collateral-dependent loans had a carrying amount of $4,423 after a charge-off of $1,207. Other real estate owned and foreclosed assets, which is measured at the lower of carrying or fair value less costs to sell, had a net carrying amount of $1,364, with a valuation allowance of $62 and $77for the three and nine months ended March 31, 2012. Our other real estate owned and foreclosed assets had a net carrying amount of 8,700 after a valuation allowance of $387 and $437during the three and nine months ended March 31, 2011. Held to maturity securities measured for impairment on a non-recurring basis had a carrying amount of $115,781 at March 31, 2012, after net impairment charge to income of $1,211 and other comprehensive loss of zero during the three months ended March 31, 2012. During the nine months ended March 31, 2012, the Company recognized a net impairment charge to income of $2,523 and other comprehensive income of $120. These held to maturity securities are valued using Level 3 inputs. The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at the periods indicated:
Fair value of Financial Instruments The carrying amounts and estimated fair values of financial instruments at the periods indicated:
Carrying amount and estimated fair values of financial instruments at period-end were as follows:
The methods and assumptions, not previously presented, used to estimate fair value are described as follows: Carrying amount is the estimated fair value for cash and cash equivalents, interest bearing deposits, accrued interest receivable and payable, demand deposits, short-term debt, and variable rate loans or deposits that reprice frequently and fully. For fixed rate loans or deposits and for variable rate loans or deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk. It was not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability. The fair value of off-balance sheet items is not considered material. |