SECURITIES (Tables)
|
6 Months Ended |
Dec. 31, 2015 |
|---|
| Investments, Debt and Equity Securities [Abstract] |
|
| Marketable Securities |
The amortized cost, carrying amount and fair value for the major categories of securities: trading, available-for-sale, and held-to-maturity at December 31, 2015 and June 30, 2015 were: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2015 | | Trading | | Available-for-sale | | Held-to-maturity | (Dollars in thousands) | Fair Value | | Amortized Cost | | Unrealized Gains | | Unrealized Losses | | Fair Value | | Carrying Amount | | Unrecognized Gains | | Unrecognized Losses | | Fair Value | Mortgage-backed securities (RMBS): | | | | | | | | | | | | | | | | | | U.S. agencies1 | $ | — |
| | $ | 35,565 |
| | $ | 334 |
| | $ | (785 | ) | | $ | 35,114 |
| | $ | 39,118 |
| | $ | 752 |
| | $ | (1 | ) | | $ | 39,869 |
| Non-agency2 | — |
| | 19,275 |
| | 1,861 |
| | — |
| | 21,136 |
| | 140,908 |
| | 7,560 |
| | (13,228 | ) | | 135,240 |
| Total mortgage-backed securities | — |
| | 54,840 |
| | 2,195 |
| | (785 | ) | | 56,250 |
| | 180,026 |
| | 8,312 |
| | (13,229 | ) | | 175,109 |
| Other debt securities: | | | | | | | | | | | | | | | | | | Municipal | — |
| | 30,877 |
| | 222 |
| | (86 | ) | | 31,013 |
| | 35,937 |
| | 4,513 |
| | — |
| | 40,450 |
| Non-agency3 | 7,706 |
| | 141,056 |
| | 912 |
| | (842 | ) | | 141,126 |
| | — |
| | — |
| | — |
| | — |
| Total other debt securities | 7,706 |
| | 171,933 |
| | 1,134 |
| | (928 | ) | | 172,139 |
| | 35,937 |
| | 4,513 |
| | — |
| | 40,450 |
| Total debt securities | $ | 7,706 |
| | $ | 226,773 |
| | $ | 3,329 |
| | $ | (1,713 | ) | | $ | 228,389 |
| | $ | 215,963 |
| | $ | 12,825 |
| | $ | (13,229 | ) | | $ | 215,559 |
| | | | | | | | | | | | | | | | | | | | June 30, 2015 | | Trading | | Available-for-sale | | Held-to-maturity | (Dollars in thousands) | Fair Value | | Amortized Cost | | Unrealized Gains | | Unrealized Losses | | Fair Value | | Carrying Amount | | Unrecognized Gains | | Unrecognized Losses | | Fair Value | Mortgage-backed securities (RMBS): | | | | | | | | | | | | | | | | | | U.S. agencies1 | $ | — |
| | $ | 43,738 |
| | $ | 701 |
| | $ | (948 | ) | | $ | 43,491 |
| | $ | 41,993 |
| | $ | 1,398 |
| | $ | — |
| | $ | 43,391 |
| Non-agency2 | — |
| | 23,799 |
| | 2,835 |
| | (1 | ) | | 26,633 |
| | 147,586 |
| | 10,045 |
| | (12,749 | ) | | 144,882 |
| Total mortgage-backed securities | — |
| | 67,537 |
| | 3,536 |
| | (949 | ) | | 70,124 |
| | 189,579 |
| | 11,443 |
| | (12,749 | ) | | 188,273 |
| Other debt securities: | | | | | | | | | | | | | | | | | | Municipal | — |
| | 21,731 |
| | 390 |
| | (86 | ) | | 22,035 |
| | 35,976 |
| | 4,074 |
| | — |
| | 40,050 |
| Non-agency3 | 7,832 |
| | 70,216 |
| | 1,271 |
| | (285 | ) | | 71,202 |
| | — |
| | — |
| | — |
| | — |
| Total other debt securities | 7,832 |
| | 91,947 |
| | 1,661 |
| | (371 | ) | | 93,237 |
| | 35,976 |
| | 4,074 |
| | — |
| | 40,050 |
| Total debt securities | $ | 7,832 |
| | $ | 159,484 |
| | $ | 5,197 |
| | $ | (1,320 | ) | | $ | 163,361 |
| | $ | 225,555 |
| | $ | 15,517 |
| | $ | (12,749 | ) | | $ | 228,323 |
|
__________________________________ | | 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 super senior securities secured by prime, Alt-A or pay-option ARM mortgages. |
| | 3. | Senior collateralized loan obligations and asset-backed securities. |
|
| Schedule of Unrealized Loss on Investments |
The securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2015 | | 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 | (Dollars in thousands) | 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 | RMBS: | | | | | | | | | | | | | | | | | | | | | | | | U.S. agencies | $ | — |
| | $ | — |
| | $ | 23,612 |
| | $ | (785 | ) | | $ | 23,612 |
| | $ | (785 | ) | | $ | 149 |
| | $ | (1 | ) | | $ | — |
| | $ | — |
| | $ | 149 |
| | $ | (1 | ) | Non-agency | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 13,664 |
| | (845 | ) | | 75,183 |
| | (12,383 | ) | | 88,847 |
| | (13,228 | ) | Total RMBS securities | — |
| | — |
| | 23,612 |
| | (785 | ) | | 23,612 |
| | (785 | ) | | 13,813 |
| | (846 | ) | | 75,183 |
| | (12,383 | ) | | 88,996 |
| | (13,229 | ) | Other Debt: | | | | | | | | | | | | | | | | | | | | | | | | Municipal Debt | 20,507 |
| | (86 | ) | | — |
| | — |
| | 20,507 |
| | (86 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Non-agency | 68,648 |
| | (706 | ) | | 2,276 |
| | (136 | ) | | 70,924 |
| | (842 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Total Other Debt | 89,155 |
| | (792 | ) | | 2,276 |
| | (136 | ) | | 91,431 |
| | (928 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Total debt securities | $ | 89,155 |
| | $ | (792 | ) | | $ | 25,888 |
| | $ | (921 | ) | | $ | 115,043 |
| | $ | (1,713 | ) | | $ | 13,813 |
| | $ | (846 | ) | | $ | 75,183 |
| | $ | (12,383 | ) | | $ | 88,996 |
| | $ | (13,229 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2015 | | 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 | (Dollars in thousands) | 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 | RMBS: | | | | | | | | | | | | | | | | | | | | | | | | U.S. agencies | $ | 369 |
| | $ | (2 | ) | | $ | 24,974 |
| | $ | (946 | ) | | $ | 25,343 |
| | $ | (948 | ) | | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| Non-agency | 1,275 |
| | (1 | ) | | — |
| | — |
| | 1,275 |
| | (1 | ) | | 23,450 |
| | (1,802 | ) | | 67,090 |
| | (10,947 | ) | | 90,540 |
| | (12,749 | ) | Total RMBS securities | 1,644 |
| | (3 | ) | | 24,974 |
| | (946 | ) | | 26,618 |
| | (949 | ) | | 23,450 |
| | (1,802 | ) | | 67,090 |
| | (10,947 | ) | | 90,540 |
| | (12,749 | ) | Other Debt: | | | | | | | | | | | | | | | | | | | | | | | | Municipal Debt | 1,358 |
| | (86 | ) | | — |
| | — |
| | 1,358 |
| | (86 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Non-agency | 19,100 |
| | (285 | ) | | — |
| | — |
| | 19,100 |
| | (285 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Total Other Debt | 20,458 |
| | (371 | ) | | — |
| | — |
| | 20,458 |
| | (371 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Total debt securities | $ | 22,102 |
| | $ | (374 | ) | | $ | 24,974 |
| | $ | (946 | ) | | $ | 47,076 |
| | $ | (1,320 | ) | | $ | 23,450 |
| | $ | (1,802 | ) | | $ | 67,090 |
| | $ | (10,947 | ) | | $ | 90,540 |
| | $ | (12,749 | ) |
|
| Other than Temporary Impairment, Credit Losses Recognized in Earnings |
The following table summarizes amounts of credit loss recognized in the income statement through other-than-temporary impairment charges which reduced non-interest income: | | | | | | | | | | | | | | | | | | For the Three Months Ended | | For the Six Months Ended | | December 31, | | December 31, | (Dollars in thousands) | 2015 | | 2014 | | 2015 | | 2014 | Beginning balance | $ | (20,621 | ) | | $ | (19,351 | ) | | $ | (20,503 | ) | | $ | (18,139 | ) | Additions for the amounts related to credit loss for which an other-than-temporary impairment was not previously recognized | — |
| | — |
| | (99 | ) | | (39 | ) | Increases to the amount related to the credit loss for which other-than-temporary impairment was previously recognized | (23 | ) | | (285 | ) | | (42 | ) | | (1,458 | ) | Credit losses realized for securities sold | 116 |
| | — |
| | 116 |
| | — |
| Ending balance | $ | (20,528 | ) | | $ | (19,636 | ) | | $ | (20,528 | ) | | $ | (19,636 | ) |
|
| Schedule of Realized Gain (Loss) |
The gross gains and losses realized through earnings upon the sale of available-for-sale securities for the three and six months ended December 31, 2015 were as follows: | | | | | | | | | | | | | | | | | | For the Three Months Ended | | For the Six Months Ended | | December 31, | | December 31, | (Dollars in thousands) | 2015 | | 2014 | | 2015 | | 2014 | Proceeds | $ | 10,069 |
| | $ | 9,614 |
| | $ | 10,069 |
| | $ | 9,614 |
| Gross realized gains | 933 |
| | 587 |
| | 933 |
| | 587 |
| Gross realized losses | — |
| | — |
| | — |
| | — |
| Net realized gain on securities | $ | 933 |
| | $ | 587 |
| | $ | 933 |
| | $ | 587 |
|
|
| Unrealized Gain (Loss) on Investments |
The Company had recorded unrealized gains and unrealized losses in accumulated other comprehensive loss as follows: | | | | | | | | | (Dollars in thousands) | December 31,
2015 | | June 30,
2015 | Available-for-sale debt securities—net unrealized gains | $ | 1,616 |
| | $ | 3,877 |
| Available-for-sale debt securities—non-credit related losses | (259 | ) | | (271 | ) | Held-to-maturity debt securities—non-credit related losses | (15,100 | ) | | (18,597 | ) | Subtotal | (13,743 | ) | | (14,991 | ) | Tax benefit | 4,700 |
| | 5,592 |
| Net unrealized loss on investment securities in accumulated other comprehensive loss | $ | (9,043 | ) | | $ | (9,399 | ) |
|
| Investments Classified by Contractual Maturity Date |
The expected maturity distribution including repayments of the Company’s mortgage-backed securities and other debt securities classified as trading, available-for-sale and held-to-maturity at December 31, 2015 were: | | | | | | | | | | | | | | | | | | | | |
| December 31, 2015 |
| Trading | | Available for sale | | Held-to-maturity | (Dollars in thousands) | Fair Value | | Amortized Cost | | Fair Value | | Carrying Amount | | Fair Value | RMBS—U.S. agencies: | | | | | | | | | | Due within one year | $ | — |
| | $ | 3,532 |
| | $ | 3,451 |
| | $ | 1,298 |
| | $ | 1,346 |
| Due one to five years | — |
| | 10,929 |
| | 10,710 |
| | 4,978 |
| | 5,161 |
| Due five to ten years | — |
| | 8,693 |
| | 8,576 |
| | 5,654 |
| | 5,851 |
| Due after ten years | — |
| | 12,411 |
| | 12,377 |
| | 27,188 |
| | 27,511 |
| Total RMBS—U.S. agencies | — |
| | 35,565 |
| | 35,114 |
| | 39,118 |
| | 39,869 |
| RMBS—Non-agency: | | | | | | | | | | Due within one year | — |
| | 5,536 |
| | 5,933 |
| | 21,779 |
| | 20,837 |
| Due one to five years | — |
| | 9,251 |
| | 10,059 |
| | 47,178 |
| | 45,431 |
| Due five to ten years | — |
| | 2,625 |
| | 3,005 |
| | 38,441 |
| | 36,615 |
| Due after ten years | — |
| | 1,863 |
| | 2,139 |
| | 33,510 |
| | 32,357 |
| Total RMBS—Non-agency | — |
| | 19,275 |
| | 21,136 |
| | 140,908 |
| | 135,240 |
| Other debt: | | | | | | | | | | Due within one year | — |
| | 33,822 |
| | 33,760 |
| | 1,014 |
| | 1,137 |
| Due one to five years | — |
| | 129,343 |
| | 129,571 |
| | 4,708 |
| | 5,280 |
| Due five to ten years | — |
| | 5,050 |
| | 5,066 |
| | 7,391 |
| | 8,292 |
| Due after ten years | 7,706 |
| | 3,718 |
| | 3,742 |
| | 22,824 |
| | 25,741 |
| Total other debt | 7,706 |
| | 171,933 |
| | 172,139 |
| | 35,937 |
| | 40,450 |
| Total | $ | 7,706 |
| | $ | 226,773 |
| | $ | 228,389 |
| | $ | 215,963 |
| | $ | 215,559 |
|
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