FAIR VALUE (Tables)

12 Months Ended

Jun. 30, 2014

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value Assets and Liabilities Measured on Recurring Basis

The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

	June 30, 2014
(Dollars in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
ASSETS:
Securities—Trading: Collateralized Debt Obligations	$	—	$	—	$	8,066	$	8,066
Securities—Available-for-Sale:
Agency Debt	—		—		—		—
Agency RMBS	—		59,880		—		59,880
Non-Agency RMBS	—		—		37,409		37,409
Municipal	—		28,943		—		28,943
Other Debt Securities	—		88,546		—		88,546
Total—Securities—Available-for-Sale	$	—	$	177,369	$	37,409	$	214,778
Loans Held for Sale	$	—	$	20,575	$	—	$	20,575
Mortgage servicing rights	$	—	$	—	$	562	$	562
Other assets—Derivative instruments	$	—	$	—	$	1,364	$	1,364
LIABILITIES:
Other liabilities—Derivative instruments	$	—	$	—	$	489	$	489
	June 30, 2013
(Dollars in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
ASSETS:
Securities—Trading: Collateralized Debt Obligations	$	—	$	—	$	7,111	$	7,111
Securities—Available-for-Sale:
Agency Debt	—		25,063		—		25,063
Agency RMBS	—		69,882		—		69,882
Non-Agency RMBS	—		—		49,284		49,284
Municipal	—		11,103		—		11,103
Other Debt Securities	—		30,275		—		30,275
Total—Securities—Available-for-Sale	$	—	$	136,323	$	49,284	$	185,607
Loans Held for Sale	$	—	$	36,665	$	—	$	36,665
Other assets—Derivative Instruments	$	—	$	—	$	2,355	$	2,355
LIABILITIES:
Other liabilities—Derivative instruments	$	—	$	—	$	133	$	133

Level 3, Fair Value, Assets Measured on Recurring Basis

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:

	Year Ended June 30, 2014
(Dollars in thousands)	Available for Sale Securities: Non-Agency RMBS			Trading Securities Other  Debt Securities: Non-Agency		Derivative Instruments, net			Mortgage Servicing Rights			Total
Assets:
Opening Balance	$	49,284		$	7,111	$	2,222		$	—		$	58,617
Transfers into Level 3	—			—		—			—			—
Transfers out of Level 3	—			—		—			—			—
Total gains or losses for the period:
Included in earnings—Sale of mortgage-backed securities	—			—		—			—			—
Included in earnings—Fair value gain on trading securities	—			955		—			—			955
Included in earnings—Mortgage banking	—			—		(1,347		)	45			(1,302		)
Included in other comprehensive income	(125		)	—		—			—			(125		)
Purchases, issues, sales and settlements:												—
Purchases	—			—		—			—			—
Issues	—			—		—			529			529
Sales	—			—		—			—			—
Settlements	(11,534		)	—		—			(12		)	(11,546		)
Other-than-temporary impairment	(216		)	—		—			—			(216		)
Closing balance	$	37,409		$	8,066	$	875		$	562		$	46,912
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	$	—		$	955	$	(1,347	)	$	45		$	(347	)

	Year Ended June 30, 2013
(Dollars in thousands)	Available for Sale Securities: Non-Agency RMBS			Trading Securities Other  Debt Securities: Non-Agency		Derivative Instruments, net		Mortgage Servicing Rights		Total
Assets:
Opening Balance	$	83,127		$	5,838	$	1,585	$	—	$	90,550
Transfers into Level 3	—			—		—		—		—
Transfers out of Level 3	—			—		—		—		—
Total gains or losses for the period:
Included in earnings—Sale of mortgage-backed securities	420			—		—		—		420
Included in earnings—Fair value gain on trading securities	—			1,273		—		—		1,273
Included in earnings—Mortgage banking	—			—		637		—		637
Included in other comprehensive income	(3,360		)	—		—		—		(3,360		)
Purchases, issues, sales and settlements:										—
Purchases	—			—		—		—		—
Issues	—			—		—		—		—
Sales	(2,775		)	—		—		—		(2,775		)
Settlements	(27,864		)	—		—		—		(27,864		)
Other-than-temporary impairment	(264		)	—		—		—		(264		)
Closing balance	$	49,284		$	7,111	$	2,222	$	—	$	58,617
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period	$	420		$	1,273	$	637	$	—	$	2,330

Level 3, Change in Unrealized Gain (Loss) and Interest income Included in Earnings

The table below summarizes changes in unrealized gains and losses and interest income recorded in earnings for Level 3 trading assets and liabilities that are still held at the periods indicated:

	Year Ended June 30,
(Dollars in thousands)	2014		2013		2012
Interest income on investments	$	230	$	253	$	125
Fair value adjustment	955		1,274		785
Total	$	1,185	$	1,527	$	910

Fair Value Assets Measured on Nonrecurring Basis

The table below summarizes the fair value of assets measured for impairment on a non-recurring basis:

	June 30, 2014
(Dollars in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance
Impaired Loans:
Single family real estate secured:
Mortgage	$	—	$	—	$	13,385	$	13,385
Home equity	—		—		168		168
Multifamily real estate secured	—		—		4,301		4,301
Commercial real estate secured	—		—		4,376		4,376
Auto and RV secured	—		—		534		534
Total	$	—	$	—	$	22,764	$	22,764
Other real estate owned and foreclosed assets:
Single family real estate secured:
Mortgage	$	—	$	—	$	—	$	—
Multifamily real estate secured	—		—		—		—
Auto and RV secured	—		—		75		75
Total	$	—	$	—	$	75	$	75
HTM Securities-Non Agency MBS	$	—	$	—	$	91,297	$	91,297
	June 30, 2013
(Dollars in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance
Impaired Loans:
Single family real estate secured:
Mortgage	$	—	$	—	$	12,372	$	12,372
Home equity	—		—		57		57
Multifamily real estate secured	—		—		4,505		4,505
Commercial real estate secured	—		—		3,559		3,559
Auto and RV secured	—		—		1,348		1,348
Total	$	—	$	—	$	21,841	$	21,841
Other real estate owned and foreclosed assets:
Single family real estate secured:	$	—	$	—	$	567	$	567
Multifamily real estate secured	—		—		1,298		1,298
Commercial real estate secured	—		—		—		—
Auto and RV secured	—		—		141		141
Total	$	—	$	—	$	2,006	$	2,006
HTM Securities-Non Agency MBS	$	—	$	—	$	97,193	$	97,193

Fair Value, Loans Held For Sale

The aggregate fair value, contractual balance (including accrued interest), and gain was as follows:

	At June 30,
(Dollars in thousands)	2014		2013
Aggregate fair value	$	20,575	$	36,665
Contractual balance	20,138		36,070
Gain	$	437	$	595

The total amount of gains and losses from changes in fair value included in earnings for the period indicated below for loans held for sale were:

	At June 30,
(Dollars in thousands)	2014			2013
Interest income	$	545		$	1,314
Change in fair value	(1,526		)	353
Total change in fair value	$	(981	)	$	1,667

Fair Value, by Balance Sheet Grouping

The carrying amount and estimated fair values of financial instruments at year-end were as follows:

	June 30, 2014
(Dollars in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value
Financial assets:
Cash and cash equivalents	$	155,584	$	155,584	$	—	$	—	$	155,584
Securities trading	8,066		—		—		8,066		8,066
Securities available-for-sale	214,778		—		177,369		37,409		214,778
Securities held-to-maturity	247,729		—		89,408		154,557		243,965
Loans held for sale, at fair value	20,575		—		20,575				20,575
Loans held for sale, at lower of cost or fair value	114,796		—		—		114,840		114,840
Loans held for investment—net	3,532,841		—		—		3,632,841		3,632,841
Accrued interest receivable	13,863		—		—		13,863		13,863
Financial liabilities:
Time deposits and savings	3,041,536		—		3,066,830		—		3,066,830
Securities sold under agreements to repurchase	45,000		—		48,883		—		48,883
Advances from the Federal Home Loan Bank	910,000		—		917,184		—		917,184
Subordinated debentures and other borrowings	5,155		—		5,284		—		5,284
Accrued interest payable	1,350		—		1,350		—		1,350

	June 30, 2013
(Dollars in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value
Financial assets:
Cash and cash equivalents	$	201,694	$	201,694	$	—	$	—	$	201,694
Securities trading	7,111		—		—		7,111		7,111
Securities available-for-sale	185,607		—		136,323		49,284		185,607
Securities held-to-maturity	275,691		—		97,340		174,514		271,854
Loans held for sale, at fair value	36,665		—		36,665		—		36,665
Loans held for sale, at lower of cost or fair value	40,326		—		—		40,424		40,424
Loans held for investment—net	2,256,918		—		—		2,316,802		2,316,802
Accrued interest receivable	9,763		—		—		9,763		9,763
Financial liabilities:									—
Time deposits and savings	2,091,999		—		2,109,725		—		2,109,725
Securities sold under agreements to repurchase	110,000		—		117,215		—		117,215
Advances from the Federal Home Loan Bank	590,417		—		595,651		—		595,651
Subordinated debentures and other borrowings	5,155		—		5,317		—		5,317
Accrued interest payable	1,674		—		1,674		—		1,674

Fair Value, Measurements, Recurring

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value Inputs, Assets, Quantitative Information

The table below summarizes the quantitative information about Level 3 fair value measurements at the periods indicated:

	June 30, 2014
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Securities - Trading	$	8,066	Discounted Cash Flow	Total projected defaults, Discount Rate over Treasury	19.0 to 26.6% (23.1%) 4.0 to 4.0% (4.0%)
Securities - Non-agency MBS	$	37,409	Discounted Cash Flow	Constant Prepayment Rate, Constant Default Rate, Loss Severity, Discount Rate over LIBOR	0.1 to 27.8% (10.0%) 0.0 to 21.7% (5.6%) 1.6 to 87.9% (61.7%) 2.5 to 8.4% (5.2%)
Mortgage Servicing Rights	$	562	Discounted Cash Flow	Constant Prepayment Rate, Life (in years), Discount Rate	5.6 to 7.4% (7.4%) 3.6 to 8.3 (7.1) 10.0 to 11.5% (10.1%)
Derivative Instruments	$	875	Sales Comparison Approach	Projected Sales Profit of Underlying Loans	0.5 to 1.5%

	June 30, 2013
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Securities - Trading	$	7,111	Discounted Cash Flow	Total projected defaults, Discount Rate over Treasury	26.3 to 31.1% (28.5%) 4.5 to 4.5% (4.5%)
Securities - Non-agency MBS	$	49,284	Discounted Cash Flow	Constant Prepayment Rate, Constant Default Rate, Loss Severity, Discount Rate over LIBOR	2.5 to 55.4% (15.6%) 0.3 to 22.7% (10.3%) 1.6 to 96.2% (59.9%) 2.4 to 7.9% (5.6%)
Derivative Instruments	$	2,222	Sales Comparison Approach	Projected Sales Profit of Underlying Loans	0.5 to 1.5%

Fair Value, Measurements, Nonrecurring

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value Inputs, Assets, Quantitative Information

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at the periods indicated:

	June 30, 2014
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)1
Impaired Loans:
Single family real estate secured:
Mortgage	$	13,385	Sales comparison approach	Adjustment for differences between the comparable sales	-28.7 to 35.1% (1.3%)
Home equity	$	168	Sales comparison approach	Adjustment for differences between the comparable sales	-20.0 to 42.7% (10.1%)
Multifamily real estate secured	$	4,301	Sales comparison approach and income approach	Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, Capitalization rate	-43.3 to 65.0% (13.1%)
Commercial real estate secured	$	4,376	Sales comparison approach and income approach	Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, Capitalization rate	-84.1 to 82.4% (-22.1%)
Auto and RV secured	$	534	Sales comparison approach	Adjustment for differences between the comparable sales	0.0 to 27.4% (10.3%)
Other real estate owned and foreclosed assets:
Auto and RV secured	$	75	Sales comparison approach	Adjustment for differences between the comparable sales	-84.0 to 41.3% (-32.8%)
HTM Securities - Non-Agency MBS	$	91,297	Discounted cash flow	Constant Prepayment Rate, Constant Default Rate, Loss Severity, Discount Rate over LIBOR	0.1 to 16.3% (10.2%) 0.0 to 11.1% (5.9%) 3.5 to 76.5% (61.2%) 2.7 to 8.4% (6.2%)

^{_____________________} 

¹ For impaired loans and other real estate owned the ranges shown may vary positively or negatively based on the comparable sales reported in the current appraisal. In certain instances, the range can be significant due to small sample sizes and in some cases the property being valued having limited comparable sales with similar characteristics at the time the current appraisal is conducted.

	June 30, 2013
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)1
Impaired Loans:
Single family real estate secured:
Mortgage	$	12,372	Sales comparison approach	Adjustment for differences between the comparable sales	-94.4 to 39.8% (-19.1%)
Home equity	$	57	Sales comparison approach	Adjustment for differences between the comparable sales	-17.5 to 89.6% (22.6%)
Multifamily real estate secured	$	4,505	Sales comparison approach and income approach	Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, Capitalization rate	-79.1 to 35.9% (-21.5%)
Commercial real estate secured	$	3,559	Sales comparison approach and income approach	Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, Capitalization rate	-33.7 to 60.0% (5.8%)
Auto and RV secured	$	1,348	Sales comparison approach	Adjustment for differences between the comparable sales	-5.1 to 46.8% (9.68%)
Other real estate owned and foreclosed assets:
Single family real estate secured:
Mortgage	$	567	Sales comparison approach	Adjustment for differences between the comparable sales	-50.6 to 22.6% (-18.7%)
Multifamily real estate secured	$	1,298	Sales comparison approach and income approach	Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, Capitalization rate	-59.2 to 38.6% (-10.6%)
Auto and RV secured	$	141	Sales comparison approach	Adjustment for differences between the comparable sales	-57.5 to 19.9% (-3.4%)
HTM Securities - Non-Agency MBS	$	97,193	Discounted cash flow	Constant Prepayment Rate, Constant Default Rate, Loss Severity, Discount Rate over LIBOR	6.1 to 55.4% (16.6%) 1.5 to 22.5% (12.2%) 3.5 to 74.5% (60.3%) 3.0 to 7.9% (6.8%)