SECURITIES (Tables)
|
9 Months Ended |
Mar. 31, 2016 |
|---|
| 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 March 31, 2016 and June 30, 2015 were: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2016 | | 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 | $ | — |
| | $ | 35,132 |
| | $ | 349 |
| | $ | (193 | ) | | $ | 35,288 |
| | $ | 37,366 |
| | $ | 867 |
| | $ | (2 | ) | | $ | 38,231 |
| Non-agency2 | — |
| | 15,718 |
| | 1,321 |
| | (2 | ) | | 17,037 |
| | 138,011 |
| | 7,828 |
| | (8,747 | ) | | 137,092 |
| Total mortgage-backed securities | — |
| | 50,850 |
| | 1,670 |
| | (195 | ) | | 52,325 |
| | 175,377 |
| | 8,695 |
| | (8,749 | ) | | 175,323 |
| Other debt securities: | | | | | | | | | | | | | | | | | | Municipal | — |
| | 33,541 |
| | 112 |
| | (37 | ) | | 33,616 |
| | 35,917 |
| | 5,146 |
| | — |
| | 41,063 |
| Non-agency3 | 7,589 |
| | 193,344 |
| | 285 |
| | (917 | ) | | 192,712 |
| | — |
| | — |
| | — |
| | — |
| Total other debt securities | 7,589 |
| | 226,885 |
| | 397 |
| | (954 | ) | | 226,328 |
| | 35,917 |
| | 5,146 |
| | — |
| | 41,063 |
| Total debt securities | $ | 7,589 |
| | $ | 277,735 |
| | $ | 2,067 |
| | $ | (1,149 | ) | | $ | 278,653 |
| | $ | 211,294 |
| | $ | 13,841 |
| | $ | (8,749 | ) | | $ | 216,386 |
| | | | | | | | | | | | | | | | | | | | 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: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2016 | | 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 | $ | 151 |
| | $ | (1 | ) | | $ | 23,585 |
| | $ | (192 | ) | | $ | 23,736 |
| | $ | (193 | ) | | $ | 146 |
| | $ | (2 | ) | | $ | — |
| | $ | — |
| | $ | 146 |
| | $ | (2 | ) | Non-agency | 2,546 |
| | (2 | ) | | — |
| | — |
| | 2,546 |
| | (2 | ) | | 6,905 |
| | (204 | ) | | 62,473 |
| | (8,543 | ) | | 69,378 |
| | (8,747 | ) | Total RMBS securities | 2,697 |
| | (3 | ) | | 23,585 |
| | (192 | ) | | 26,282 |
| | (195 | ) | | 7,051 |
| | (206 | ) | | 62,473 |
| | (8,543 | ) | | 69,524 |
| | (8,749 | ) | Other Debt: | | | | | | | | | | | | | | | | | | | | | | | | Municipal Debt | 22,815 |
| | (25 | ) | | 1,428 |
| | (12 | ) | | 24,243 |
| | (37 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Non-agency | 90,156 |
| | (536 | ) | | 18,003 |
| | (381 | ) | | 108,159 |
| | (917 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Total Other Debt | 112,971 |
| | (561 | ) | | 19,431 |
| | (393 | ) | | 132,402 |
| | (954 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Total debt securities | $ | 115,668 |
| | $ | (564 | ) | | $ | 43,016 |
| | $ | (585 | ) | | $ | 158,684 |
| | $ | (1,149 | ) | | $ | 7,051 |
| | $ | (206 | ) | | $ | 62,473 |
| | $ | (8,543 | ) | | $ | 69,524 |
| | $ | (8,749 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | 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 Nine Months Ended | | March 31, | | March 31, | (Dollars in thousands) | 2016 | | 2015 | | 2016 | | 2015 | Beginning balance | $ | (20,528 | ) | | $ | (19,636 | ) | | $ | (20,503 | ) | | $ | (18,139 | ) | Additions for the amounts related to credit loss for which an other-than-temporary impairment was not previously recognized | — |
| | (704 | ) | | (106 | ) | | (742 | ) | Increases to the amount related to the credit loss for which other-than-temporary impairment was previously recognized | (8 | ) | | (3 | ) | | (43 | ) | | (1,462 | ) | Credit losses realized for securities sold | — |
| | — |
| | 116 |
| | — |
| Ending balance | $ | (20,536 | ) | | $ | (20,343 | ) | | $ | (20,536 | ) | | $ | (20,343 | ) |
|
| 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 nine months ended March 31, 2016 were as follows: | | | | | | | | | | | | | | | | | | For the Three Months Ended | | For the Nine Months Ended | | March 31, | | March 31, | (Dollars in thousands) | 2016 | | 2015 | | 2016 | | 2015 | Proceeds1 | $ | (67 | ) | | $ | — |
| | $ | 10,002 |
| | $ | 9,614 |
| Gross realized gains1 | (14 | ) | | — |
| | 919 |
| | 587 |
| Gross realized losses | — |
| | — |
| | — |
| | — |
| Net realized gain on securities | $ | (14 | ) | | $ | — |
| | $ | 919 |
| | $ | 587 |
|
__________________________________ | | 1. | The proceeds of $(67) in the three months ended March 31, 2016 was the result of an underlying paydown receipt to the security sold by the Company during the three months ended December 31, 2015. The trustee did not apply the paydown receipt to the security until one month subsequent to the period ended December 31, 2015. This revised factor reduced the amount of par value sold and subsequently reduced the gross realized gain by $14. This reduction to gain on sale was recognized during the three months ended March 31, 2016. The Company did not sell any securities during the three months ended March 31, 2016. |
|
| Unrealized Gain (Loss) on Investments |
The Company had recorded unrealized gains and unrealized losses in accumulated other comprehensive loss as follows: | | | | | | | | | (Dollars in thousands) | March 31,
2016 | | June 30,
2015 | Available-for-sale debt securities—net unrealized gains | $ | 918 |
| | $ | 3,877 |
| Available-for-sale debt securities—non-credit related losses | (248 | ) | | (271 | ) | Held-to-maturity debt securities—non-credit related losses | (14,246 | ) | | (18,597 | ) | Subtotal | (13,576 | ) | | (14,991 | ) | Tax benefit | 5,353 |
| | 5,592 |
| Net unrealized loss on investment securities in accumulated other comprehensive loss | $ | (8,223 | ) | | $ | (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 March 31, 2016 were: | | | | | | | | | | | | | | | | | | | | |
| March 31, 2016 |
| 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 | $ | — |
| | $ | 3,543 |
| | $ | 3,538 |
| | $ | 1,305 |
| | $ | 1,367 |
| Due one to five years | — |
| | 10,922 |
| | 10,925 |
| | 4,937 |
| | 5,162 |
| Due five to ten years | — |
| | 8,623 |
| | 8,660 |
| | 5,458 |
| | 5,690 |
| Due after ten years | — |
| | 12,044 |
| | 12,165 |
| | 25,666 |
| | 26,012 |
| Total RMBS—U.S. agencies | — |
| | 35,132 |
| | 35,288 |
| | 37,366 |
| | 38,231 |
| RMBS—Non-agency: | | | | | | | | | | Due within one year | — |
| | 4,026 |
| | 4,289 |
| | 21,885 |
| | 21,582 |
| Due one to five years | — |
| | 6,872 |
| | 7,288 |
| | 44,020 |
| | 43,685 |
| Due five to ten years | — |
| | 2,030 |
| | 2,279 |
| | 31,981 |
| | 32,006 |
| Due after ten years | — |
| | 2,790 |
| | 3,181 |
| | 40,125 |
| | 39,819 |
| Total RMBS—Non-agency | — |
| | 15,718 |
| | 17,037 |
| | 138,011 |
| | 137,092 |
| Other debt: | | | | | | | | | | Due within one year | — |
| | 110,350 |
| | 110,323 |
| | 1,037 |
| | 1,179 |
| Due one to five years | — |
| | 108,880 |
| | 108,293 |
| | 4,813 |
| | 5,473 |
| Due five to ten years | — |
| | 4,131 |
| | 4,169 |
| | 7,556 |
| | 8,596 |
| Due after ten years | 7,589 |
| | 3,524 |
| | 3,543 |
| | 22,511 |
| | 25,815 |
| Total other debt | 7,589 |
| | 226,885 |
| | 226,328 |
| | 35,917 |
| | 41,063 |
| Total | $ | 7,589 |
| | $ | 277,735 |
| | $ | 278,653 |
| | $ | 211,294 |
| | $ | 216,386 |
|
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