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.) | |
4350 La Jolla Village Drive, Suite 140, San Diego, CA | 92122 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer x | Accelerated filer o | Non-accelerated filer ¨ | Smaller reporting company o | |||
Emerging growth company o |
Page | |
ITEM 1. | FINANCIAL STATEMENTS |
(Dollars in thousands, except per share data) | March 31, 2017 | June 30, 2016 | |||||
ASSETS | |||||||
Cash and due from banks | $ | 1,054,651 | $ | 486,627 | |||
Federal funds sold | 24,106 | 100 | |||||
Total cash and cash equivalents | 1,078,757 | 486,727 | |||||
Securities: | |||||||
Trading | 8,421 | 7,584 | |||||
Available-for-sale | 368,229 | 265,447 | |||||
Held-to-maturity—fair value $202,677 as of June 30, 2016 | — | 199,174 | |||||
Stock of the Federal Home Loan Bank, at cost | 55,863 | 57,123 | |||||
Loans held for sale, carried at fair value | 14,696 | 20,871 | |||||
Loans held for sale, lower of cost or fair value | 7,607 | 33,530 | |||||
Loans and leases—net of allowance for loan and lease losses of $45,987 as of March 31, 2017 and $35,826 as of June 30, 2016 | 7,020,700 | 6,354,679 | |||||
Accrued interest receivable | 21,271 | 26,201 | |||||
Furniture, equipment and software—net | 15,931 | 13,995 | |||||
Deferred income tax | 36,627 | 39,171 | |||||
Cash surrender value of life insurance | 6,128 | 5,990 | |||||
Mortgage servicing rights, carried at fair value | 6,731 | 3,943 | |||||
Other real estate owned and repossessed vehicles | 981 | 252 | |||||
Other assets | 58,089 | 84,617 | |||||
TOTAL ASSETS | $ | 8,700,031 | $ | 7,599,304 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Deposits: | |||||||
Non-interest bearing | $ | 1,165,106 | $ | 588,774 | |||
Interest bearing | 5,634,525 | 5,455,277 | |||||
Total deposits | 6,799,631 | 6,044,051 | |||||
Securities sold under agreements to repurchase | 35,000 | 35,000 | |||||
Advances from the Federal Home Loan Bank | 961,000 | 727,000 | |||||
Subordinated notes and debentures and other | 54,450 | 56,016 | |||||
Accrued interest payable | 1,474 | 1,667 | |||||
Accounts payable and other liabilities | 48,172 | 51,980 | |||||
Total liabilities | 7,899,727 | 6,915,714 | |||||
COMMITMENTS AND CONTINGENCIES (Note 9) | |||||||
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 shares issued and outstanding as of March 31, 2017 and June 30, 2016 | 5,063 | 5,063 | |||||
Common stock—$0.01 par value; 150,000,000 shares authorized; 64,798,821 shares issued and 63,390,389 shares outstanding as of March 31, 2017; 64,513,494 shares issued and 63,219,392 shares outstanding as of June 30, 2016 | 648 | 645 | |||||
Additional paid-in capital | 342,249 | 331,156 | |||||
Accumulated other comprehensive income (loss)—net of tax | (1,162 | ) | (7,304 | ) | |||
Retained earnings | 486,774 | 384,815 | |||||
Treasury stock, at cost; 1,408,432 shares as of March 31, 2017 and 1,294,102 shares as of June 30, 2016 | (33,268 | ) | (30,785 | ) | |||
Total stockholders’ equity | 800,304 | 683,590 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 8,700,031 | $ | 7,599,304 |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
(Dollars in thousands, except per share data) | 2017 | 2016 | 2017 | 2016 | |||||||||||
INTEREST AND DIVIDEND INCOME: | |||||||||||||||
Loans and leases, including fees | $ | 99,391 | $ | 77,111 | $ | 265,849 | $ | 212,306 | |||||||
Investments | 7,571 | 7,171 | 22,894 | 19,140 | |||||||||||
Total interest and dividend income | 106,962 | 84,282 | 288,743 | 231,446 | |||||||||||
INTEREST EXPENSE: | |||||||||||||||
Deposits | 14,151 | 11,012 | 41,676 | 29,744 | |||||||||||
Advances from the Federal Home Loan Bank | 2,940 | 3,019 | 8,409 | 8,297 | |||||||||||
Other borrowings | 1,312 | 694 | 3,959 | 1,549 | |||||||||||
Total interest expense | 18,403 | 14,725 | 54,044 | 39,590 | |||||||||||
Net interest income | 88,559 | 69,557 | 234,699 | 191,856 | |||||||||||
Provision for loan and lease losses | 4,862 | 2,000 | 10,862 | 7,800 | |||||||||||
Net interest income, after provision | 83,697 | 67,557 | 223,837 | 184,056 | |||||||||||
NON-INTEREST INCOME: | |||||||||||||||
Realized gain (loss) on sale of securities | 312 | (14 | ) | 2,924 | 919 | ||||||||||
Other-than-temporary loss on securities: | |||||||||||||||
Total impairment (losses) gains | (754 | ) | (1,006 | ) | (8,981 | ) | (2,785 | ) | |||||||
Loss (gain) recognized in other comprehensive income | 386 | 998 | 7,143 | 2,636 | |||||||||||
Net impairment loss recognized in earnings | (368 | ) | (8 | ) | (1,838 | ) | (149 | ) | |||||||
Fair value gain (loss) on trading securities | 270 | (117 | ) | 837 | (243 | ) | |||||||||
Total unrealized (loss) gain on securities | (98 | ) | (125 | ) | (1,001 | ) | (392 | ) | |||||||
Prepayment penalty fee income | 1,682 | 563 | 3,617 | 2,177 | |||||||||||
Gain on sale – other | 341 | 1,101 | 4,068 | 10,348 | |||||||||||
Mortgage banking income | 1,430 | 3,459 | 11,400 | 8,246 | |||||||||||
Banking service fees and other income | 19,501 | 18,332 | 33,593 | 28,027 | |||||||||||
Total non-interest income | 23,168 | 23,316 | 54,601 | 49,325 | |||||||||||
NON-INTEREST EXPENSE: | |||||||||||||||
Salaries and related costs | 21,268 | 17,000 | 60,608 | 47,762 | |||||||||||
Professional services | 1,023 | 1,033 | 3,463 | 2,666 | |||||||||||
Occupancy and equipment | 1,461 | 1,169 | 4,100 | 3,016 | |||||||||||
Data processing and internet | 3,298 | 3,225 | 9,411 | 7,404 | |||||||||||
Advertising and promotional | 2,148 | 1,406 | 6,670 | 4,631 | |||||||||||
Depreciation and amortization | 1,552 | 1,310 | 4,316 | 3,316 | |||||||||||
Real estate owned and repossessed vehicles | (2 | ) | 5 | 503 | (45 | ) | |||||||||
FDIC and regulator fees | 1,265 | 1,217 | 3,390 | 3,389 | |||||||||||
Other general and administrative | 3,435 | 3,043 | 9,165 | 7,632 | |||||||||||
Total non-interest expense | 35,448 | 29,408 | 101,626 | 79,771 | |||||||||||
INCOME BEFORE INCOME TAXES | 71,417 | 61,465 | 176,812 | 153,610 | |||||||||||
INCOME TAXES | 30,423 | 25,551 | 74,621 | 64,046 | |||||||||||
NET INCOME | $ | 40,994 | $ | 35,914 | $ | 102,191 | $ | 89,564 | |||||||
NET INCOME ATTRIBUTABLE TO COMMON STOCK | $ | 40,917 | $ | 35,837 | $ | 101,959 | $ | 89,332 | |||||||
COMPREHENSIVE INCOME | $ | 42,333 | $ | 36,734 | $ | 108,333 | $ | 90,740 | |||||||
Basic earnings per share | $ | 0.63 | $ | 0.56 | $ | 1.57 | $ | 1.39 | |||||||
Diluted earnings per share | $ | 0.63 | $ | 0.56 | $ | 1.57 | $ | 1.39 |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
(Dollars in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
NET INCOME | $ | 40,994 | $ | 35,914 | $ | 102,191 | $ | 89,564 | |||||||
Other comprehensive income, net of tax: | |||||||||||||||
Net unrealized gain (loss) from available-for-sale securities, net of tax expense (benefit) of $1,309 and $(287) for the three months ended March 31, 2017 and 2016, and $3,075 and $(861) for the nine months ended March 31, 2017 and 2016, respectively. | 1,737 | (426 | ) | 4,183 | (1,179 | ) | |||||||||
Other-than-temporary impairment on securities recognized in other comprehensive income, net of tax expense (benefit) of $(166) and $832 for the three months ended March 31, 2017 and 2016, and $2,678 and $2,114 for the nine months ended March 31, 2017 and 2016, respectively. | (220 | ) | 1,238 | 3,644 | 2,894 | ||||||||||
Reclassification of net (gain) loss from available-for-sale securities included in income, net of tax expense (benefit) of $134 and $(6) for the three months ended March 31, 2017 and 2016, and $1,239 and $380 for the nine months ended March 31, 2017 and 2016, respectively. | (178 | ) | 8 | (1,685 | ) | (539 | ) | ||||||||
Other comprehensive income | 1,339 | 820 | 6,142 | 1,176 | |||||||||||
Comprehensive income | $ | 42,333 | $ | 36,734 | $ | 108,333 | $ | 90,740 |
Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss, Net of Income Tax | Treasury Stock | Total | |||||||||||||||||||||||||||||||||
Number of Shares | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Shares | Amount | Issued | Treasury | Outstanding | Amount | |||||||||||||||||||||||||||||||||
BALANCE—June 30, 2016 | 515 | $ | 5,063 | 64,513,494 | (1,294,102 | ) | 63,219,392 | $ | 645 | $ | 331,156 | $ | 384,815 | $ | (7,304 | ) | $ | (30,785 | ) | $ | 683,590 | ||||||||||||||||||
Net income | — | — | — | — | — | — | — | 102,191 | — | — | 102,191 | ||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | 6,142 | — | 6,142 | ||||||||||||||||||||||||||||
Cash dividends on preferred stock | — | — | — | — | — | — | — | (232 | ) | — | — | (232 | ) | ||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 31,674 | 31,674 | — | 10,964 | — | — | — | 10,964 | |||||||||||||||||||||||||||||
Restricted stock unit vesting and tax benefits | — | — | 253,653 | (114,330 | ) | 139,323 | 3 | 129 | — | — | (2,483 | ) | (2,351 | ) | |||||||||||||||||||||||||
BALANCE—March 31, 2017 | 515 | $ | 5,063 | 64,798,821 | (1,408,432 | ) | 63,390,389 | $ | 648 | $ | 342,249 | $ | 486,774 | $ | (1,162 | ) | $ | (33,268 | ) | $ | 800,304 |
Nine Months Ended | |||||||
March 31, | |||||||
(Dollars in thousands) | 2017 | 2016 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 102,191 | $ | 89,564 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Accretion of discounts on securities | (2,373 | ) | (3,842 | ) | |||
Net accretion of discounts on loans and leases | (1,490 | ) | 136 | ||||
Amortization of borrowing costs | 155 | 18 | |||||
Stock-based compensation expense | 10,964 | 8,470 | |||||
Tax benefit from exercise of common stock options and vesting of restricted stock grants | (132 | ) | (2,519 | ) | |||
Valuation of financial instruments carried at fair value | (837 | ) | 243 | ||||
Net gain on sale of investment securities | (2,924 | ) | (919 | ) | |||
Impairment charge on securities | 1,838 | 149 | |||||
Provision for loan and lease losses | 10,862 | 7,800 | |||||
Deferred income taxes | (3,521 | ) | (4,712 | ) | |||
Origination of loans held for sale | (1,084,387 | ) | (1,155,329 | ) | |||
Unrealized (gain) loss on loans held for sale | 339 | (621 | ) | ||||
Gain on sales of loans held for sale | (15,468 | ) | (18,594 | ) | |||
Proceeds from sale of loans held for sale | 1,127,928 | 1,179,724 | |||||
Change in fair value of mortgage servicing rights | (259 | ) | 503 | ||||
(Gain) loss on sale of other real estate and foreclosed assets | (24 | ) | (140 | ) | |||
Depreciation and amortization of furniture, equipment and software | 4,316 | 3,316 | |||||
Net changes in assets and liabilities which provide (use) cash: | |||||||
Accrued interest receivable | 4,040 | (3,766 | ) | ||||
Other assets | 24,200 | (5,815 | ) | ||||
Accrued interest payable | (193 | ) | 413 | ||||
Accounts payable and other liabilities | (6,329 | ) | 9,094 | ||||
Net cash provided by (used in) operating activities | 168,896 | 103,173 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchases of investment securities | (193,145 | ) | (160,299 | ) | |||
Proceeds from sale of available-for-sale securities | 124,362 | 10,003 | |||||
Proceeds from repayment of securities | 180,180 | 55,414 | |||||
Purchase of stock of Federal Home Loan Bank | (58,950 | ) | (101,099 | ) | |||
Proceeds from redemption of stock of Federal Home Loan Bank | 60,210 | 114,395 | |||||
Origination of loans and leases for portfolio | (2,990,589 | ) | (2,626,656 | ) | |||
Origination of mortgage warehouse loans, net | (50,401 | ) | (46,921 | ) | |||
Proceeds from sales of other real estate owned and repossessed assets | 255 | 1,442 | |||||
Purchases of loans and leases, net of discounts and premiums | (269,886 | ) | (140,493 | ) | |||
Principal repayments on loans | 2,637,870 | 1,695,873 | |||||
Net purchases of furniture, equipment and software | (6,252 | ) | (7,821 | ) | |||
Net cash used in investing activities | (566,346 | ) | (1,206,162 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Net increase in deposits | 755,580 | 1,596,114 | |||||
Proceeds from Federal Home Loan Bank advances | 756,000 | 915,000 | |||||
Repayment of Federal Home Loan Bank advances | (522,000 | ) | (810,000 | ) | |||
Proceeds from exercise of common stock options | — | 148 | |||||
Proceeds from issuance of common stock | — | 21,120 | |||||
Tax benefit from exercise of common stock options and vesting of restricted stock grants | 132 | 2,519 | |||||
Cash dividends on preferred stock | (232 | ) | (232 | ) | |||
Proceeds from issuance of subordinated notes and debentures and other | — | 51,000 | |||||
Net cash provided by financing activities | 989,480 | 1,775,669 | |||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 592,030 | 672,680 | |||||
CASH AND CASH EQUIVALENTS—Beginning of year | 486,727 | 222,874 | |||||
CASH AND CASH EQUIVALENTS—End of period | $ | 1,078,757 | $ | 895,554 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||
Interest paid on deposits and borrowed funds | $ | 54,236 | $ | 39,179 | |||
Income taxes paid | $ | 62,271 | $ | 56,371 | |||
Transfers to other real estate owned and repossessed vehicles from loans | $ | 1,441 | $ | 531 | |||
Transfers from loans held for investment to loans held for sale | $ | — | $ | 7,982 | |||
Transfers from loans held for sale to loans held for investment | $ | 2,047 | $ | 20,091 | |||
Securities transferred from held-to-maturity to available-for-sale portfolio | $ | 194,153 | $ | — |
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 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. |
March 31, 2017 | |||||||||||||||
(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 | $ | — | $ | — | $ | 8,421 | $ | 8,421 | |||||||
Securities—Available-for-Sale: | |||||||||||||||
Agency Debt | $ | — | $ | 99,995 | $ | — | $ | 99,995 | |||||||
Agency RMBS | — | 30,233 | — | 30,233 | |||||||||||
Non-Agency RMBS | — | — | 78,055 | 78,055 | |||||||||||
Municipal | — | 29,393 | — | 29,393 | |||||||||||
Other Debt Securities | — | 130,553 | — | 130,553 | |||||||||||
Total—Securities—Available-for-Sale | $ | — | $ | 290,174 | $ | 78,055 | $ | 368,229 | |||||||
Loans Held for Sale | $ | — | $ | 14,696 | $ | — | $ | 14,696 | |||||||
Mortgage Servicing Rights | $ | — | $ | — | $ | 6,731 | $ | 6,731 | |||||||
Other assets – Derivative Instruments | $ | — | $ | — | $ | 1,455 | $ | 1,455 | |||||||
LIABILITIES: | |||||||||||||||
Other liabilities – Derivative Instruments | $ | — | $ | — | $ | 313 | $ | 313 | |||||||
June 30, 2016 | |||||||||||||||
(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 | $ | — | $ | — | $ | 7,584 | $ | 7,584 | |||||||
Securities—Available-for-Sale: | |||||||||||||||
Agency RMBS | $ | — | $ | 33,722 | $ | — | $ | 33,722 | |||||||
Non-Agency RMBS | — | — | 9,364 | 9,364 | |||||||||||
Municipal | — | 34,719 | — | 34,719 | |||||||||||
Other Debt Securities | — | 187,642 | — | 187,642 | |||||||||||
Total—Securities—Available-for-Sale | $ | — | $ | 256,083 | $ | 9,364 | $ | 265,447 | |||||||
Loans Held for Sale | $ | — | $ | 20,871 | $ | — | $ | 20,871 | |||||||
Mortgage Servicing Rights | $ | — | $ | — | $ | 3,943 | $ | 3,943 | |||||||
Other assets – Derivative Instruments | $ | — | $ | — | $ | 2,202 | $ | 2,202 | |||||||
LIABILITIES: | |||||||||||||||
Other liabilities – Derivative Instruments | $ | — | $ | — | $ | 884 | $ | 884 |
For the Three Months Ended | |||||||||||||||||||
March 31, 2017 | |||||||||||||||||||
(Dollars in thousands) | Securities – Trading: Collateralized Debt Obligations | Securities – Available-for-Sale: Non-Agency RMBS | Mortgage Servicing Rights | Derivative Instruments, net | Total | ||||||||||||||
Opening balance | $ | 8,151 | $ | 82,226 | $ | 6,150 | $ | 2,251 | $ | 98,778 | |||||||||
Transfers into Level 3 | — | — | — | — | — | ||||||||||||||
Transfers out of Level 3 | — | — | — | — | — | ||||||||||||||
Total gains or losses for the period: | |||||||||||||||||||
Included in earnings—Sale of mortgage-backed securities | — | 312 | — | — | 312 | ||||||||||||||
Included in earnings—Fair value gain (loss) on trading securities | 270 | — | — | — | 270 | ||||||||||||||
Included in earnings—Mortgage banking income | — | — | 105 | (1,109 | ) | (1,004 | ) | ||||||||||||
Included in other comprehensive income | — | 2,087 | — | — | 2,087 | ||||||||||||||
Purchases, originations, issues, sales and settlements: | |||||||||||||||||||
Purchases/originations | — | — | 476 | — | 476 | ||||||||||||||
Issues | — | — | — | — | — | ||||||||||||||
Sales | — | (3,299 | ) | — | — | (3,299 | ) | ||||||||||||
Settlements | — | (2,903 | ) | — | — | (2,903 | ) | ||||||||||||
Other-than-temporary impairment | — | (368 | ) | — | — | (368 | ) | ||||||||||||
Closing balance | $ | 8,421 | $ | 78,055 | $ | 6,731 | $ | 1,142 | $ | 94,349 | |||||||||
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | $ | 270 | $ | 312 | $ | 105 | $ | (1,109 | ) | $ | (422 | ) | |||||||
For the Nine Months Ended | |||||||||||||||||||
March 31, 2017 | |||||||||||||||||||
(Dollars in thousands) | Securities – Trading: Collateralized Debt Obligations | Securities – Available-for-Sale: Non-Agency RMBS | Mortgage Servicing Rights | Derivative Instruments, net | Total | ||||||||||||||
Opening Balance | $ | 7,584 | $ | 9,364 | $ | 3,943 | $ | 1,318 | $ | 22,209 | |||||||||
Transfers into Level 3 | — | 124,547 | — | — | 124,547 | ||||||||||||||
Transfers out of Level 3 | — | — | — | — | — | ||||||||||||||
Total gains or losses for the period: | |||||||||||||||||||
Included in earnings—Sale of mortgage-backed securities | — | (1,556 | ) | — | — | (1,556 | ) | ||||||||||||
Included in earnings—Fair value gain (loss) on trading securities | 837 | — | — | — | 837 | ||||||||||||||
Included in earnings—Mortgage banking income | — | — | 468 | (176 | ) | 292 | |||||||||||||
Included in other comprehensive income | — | 11,231 | — | — | 11,231 | ||||||||||||||
Purchases, originations, issues, sales and settlements: | |||||||||||||||||||
Purchases/originations | — | — | 2,320 | — | 2,320 | ||||||||||||||
Issues | — | — | — | — | — | ||||||||||||||
Sales | — | (53,717 | ) | — | — | (53,717 | ) | ||||||||||||
Settlements | — | (9,976 | ) | — | — | (9,976 | ) | ||||||||||||
Other-than-temporary impairment | — | (1,838 | ) | — | — | (1,838 | ) | ||||||||||||
Closing balance | $ | 8,421 | $ | 78,055 | $ | 6,731 | $ | 1,142 | $ | 94,349 | |||||||||
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | $ | 837 | $ | (1,556 | ) | $ | 468 | $ | (176 | ) | $ | (427 | ) |
For the Three Months Ended | |||||||||||||||||||
March 31, 2016 | |||||||||||||||||||
(Dollars in thousands) | Securities – Trading: Collateralized Debt Obligations | Securities – Available-for-Sale: Non-Agency RMBS | Mortgage Servicing Rights | Derivative Instruments, net | Total | ||||||||||||||
Opening balance | $ | 7,706 | $ | 21,136 | $ | 3,475 | $ | 1,031 | $ | 33,348 | |||||||||
Transfers into Level 3 | — | — | — | — | — | ||||||||||||||
Transfers out of Level 3 | — | — | — | — | — | ||||||||||||||
Total gains or losses for the period: | |||||||||||||||||||
Included in earnings—Sale of mortgage-backed securities | — | 14 | — | — | 14 | ||||||||||||||
Included in earnings—Fair value gain on trading securities | (117 | ) | — | — | — | (117 | ) | ||||||||||||
Included in earnings—Mortgage banking income | — | — | (452 | ) | 540 | 88 | |||||||||||||
Included in other comprehensive income | — | (532 | ) | — | — | (532 | ) | ||||||||||||
Purchases, originations, issues, sales and settlements: | |||||||||||||||||||
Purchases/originations | — | — | 352 | — | 352 | ||||||||||||||
Issues | — | — | — | — | — | ||||||||||||||
Sales | — | 67 | — | — | 67 | ||||||||||||||
Settlements | — | (3,640 | ) | — | — | (3,640 | ) | ||||||||||||
Other-than-temporary impairment | — | (8 | ) | — | — | (8 | ) | ||||||||||||
Closing balance | $ | 7,589 | $ | 17,037 | $ | 3,375 | $ | 1,571 | $ | 29,572 | |||||||||
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | $ | (117 | ) | $ | 14 | $ | (452 | ) | $ | 540 | $ | (15 | ) | ||||||
For the Nine Months Ended | |||||||||||||||||||
March 31, 2016 | |||||||||||||||||||
(Dollars in thousands) | Securities – Trading: Collateralized Debt Obligations | Securities – Available-for-Sale: Non-Agency RMBS | Mortgage Servicing Rights | Derivative Instruments, net | Total | ||||||||||||||
Opening Balance | $ | 7,832 | $ | 26,633 | $ | 2,098 | $ | 2,261 | $ | 38,824 | |||||||||
Transfers into Level 3 | — | — | — | — | — | ||||||||||||||
Transfers out of Level 3 | — | — | — | — | — | ||||||||||||||
Total gains or losses for the period: | |||||||||||||||||||
Included in earnings—Sale of mortgage-backed securities | — | (666 | ) | — | — | (666 | ) | ||||||||||||
Included in earnings—Fair value gain (loss) on trading securities | (243 | ) | — | — | — | (243 | ) | ||||||||||||
Included in earnings—Mortgage banking income | — | — | (503 | ) | (690 | ) | (1,193 | ) | |||||||||||
Included in other comprehensive income | — | (1,493 | ) | — | — | (1,493 | ) | ||||||||||||
Purchases, originations, issues, sales and settlements: | |||||||||||||||||||
Purchases/originations | — | — | 1,780 | — | 1,780 | ||||||||||||||
Issues | — | — | — | — | — | ||||||||||||||
Sales | — | (2,023 | ) | — | — | (2,023 | ) | ||||||||||||
Settlements | — | (5,367 | ) | — | — | (5,367 | ) | ||||||||||||
Other-than-temporary impairment | — | (47 | ) | — | — | (47 | ) | ||||||||||||
Closing balance | $ | 7,589 | $ | 17,037 | $ | 3,375 | $ | 1,571 | $ | 29,572 | |||||||||
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | $ | (243 | ) | $ | (666 | ) | $ | (503 | ) | $ | (690 | ) | $ | (2,102 | ) |
March 31, 2017 | ||||||
(Dollars in thousands) | Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | ||
Securities – Trading: Collateralized Debt Obligations | $ | 8,421 | Discounted Cash Flow | Total Projected Defaults, Discount Rate over Treasury | 12.0 to 22.0% (16.9%) 4.5 to 4.5% (4.5%) | |
Securities – Available-for-Sale: Non-agency RMBS | $ | 78,055 | Discounted Cash Flow | Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate over LIBOR | 2.5 to 21.5% (11.7%) 1.5 to 18.2% (4.3%) 40.0 to 69.1% (57.6%) 2.7 to 6.9% (3.7%) | |
Mortgage Servicing Rights | $ | 6,731 | Discounted Cash Flow | Projected Constant Prepayment Rate, Life (in years), Discount Rate | 6.2 to 24.3% (9.1%) 2.6 to 7.9 (6.7) 9.5 to 13.0% (9.6%) | |
Derivative Instruments, net | $ | 1,142 | Sales Comparison Approach | Projected Sales Profit of Underlying Loans | 0.3 to 0.6% (0.5%) |
June 30, 2016 | ||||||
(Dollars in thousands) | Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | ||
Securities – Trading: Collateralized Debt Obligations | $ | 7,584 | Discounted Cash Flow | Total Projected Defaults, Discount Rate over Treasury | 11.7 to 21.0% (16.5%) 5.0 to 5.0% (5.0%) | |
Securities – Available-for-Sale: Non-agency RMBS | $ | 9,364 | Discounted Cash Flow | Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate over LIBOR | 9.1 to 20.6% (14.2%) 1.5 to 13.6% (6.1%) 40.0 to 68.8% (51.5%) 2.5 to 2.9% (2.8%) | |
Mortgage Servicing Rights | $ | 3,943 | Discounted Cash Flow | Projected Constant Prepayment Rate, Life (in years), Discount Rate | 7.8 to 21.8% (10.6%) 3.5 to 7.1 (6.2) 9.5 to 10.5% (9.5%) | |
Derivative Instruments, net | $ | 1,318 | Sales Comparison Approach | Projected Sales Profit of Underlying Loans | 0.3 to 0.6% (0.4%) |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
(Dollars in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Interest income on investments | $ | 81 | $ | 60 | $ | 224 | $ | 178 | |||||||
Fair value adjustment | 270 | (117 | ) | 837 | (243 | ) | |||||||||
Total | $ | 351 | $ | (57 | ) | $ | 1,061 | $ | (65 | ) |
March 31, 2017 | |||||||||||||||
(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 | $ | — | $ | — | $ | 28,418 | $ | 28,418 | |||||||
Home equity | — | — | 44 | 44 | |||||||||||
Multifamily real estate secured | — | — | 4,363 | 4,363 | |||||||||||
Auto and RV secured | — | — | 198 | 198 | |||||||||||
Other | — | — | 278 | 278 | |||||||||||
Total | $ | — | $ | — | $ | 33,301 | $ | 33,301 | |||||||
Other real estate owned and foreclosed assets: | |||||||||||||||
Single family real estate | $ | — | $ | — | $ | 908 | $ | 908 | |||||||
Autos and RVs | — | — | 73 | 73 | |||||||||||
Total | $ | — | $ | — | $ | 981 | $ | 981 | |||||||
June 30, 2016 | |||||||||||||||
(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 | $ | — | $ | — | $ | 28,610 | $ | 28,610 | |||||||
Home equity | — | — | 33 | 33 | |||||||||||
Multifamily real estate secured | — | — | 2,218 | 2,218 | |||||||||||
Commercial real estate secured | — | — | 254 | 254 | |||||||||||
Auto and RV secured | — | — | 278 | 278 | |||||||||||
Other | — | — | 676 | 676 | |||||||||||
Total | $ | — | $ | — | $ | 32,069 | $ | 32,069 | |||||||
Other real estate owned and foreclosed assets: | |||||||||||||||
Multifamily real estate | — | — | 207 | 207 | |||||||||||
Autos and RVs | — | — | 45 | 45 | |||||||||||
Total | $ | — | $ | — | $ | 252 | $ | 252 | |||||||
HTM Securities – Non-Agency RMBS | $ | — | $ | — | $ | 79,164 | $ | 79,164 |
(Dollars in thousands) | March 31, 2017 | June 30, 2016 | |||||
Aggregate fair value | $ | 14,696 | $ | 20,871 | |||
Contractual balance | 14,383 | 20,226 | |||||
Unrealized gain | $ | 313 | $ | 645 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
(Dollars in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Interest income | $ | 139 | $ | 148 | $ | 468 | $ | 581 | |||||||
Change in fair value | (1,560 | ) | 1,223 | (515 | ) | (69 | ) | ||||||||
Total | $ | (1,421 | ) | $ | 1,371 | $ | (47 | ) | $ | 512 |
March 31, 2017 | ||||||
(Dollars in thousands) | Fair Value | Valuation Technique(s) | Unobservable Input | Range (Weighted Average) 1 | ||
Impaired loans: | ||||||
Single family real estate secured: | ||||||
Mortgage | $ | 28,418 | Sales comparison approach | Adjustment for differences between the comparable sales | -47.7 to 63.9% (-0.5%) | |
Home equity | $ | 44 | Sales comparison approach | Adjustment for differences between the comparable sales | -24.5 to 66.7% (-5.7%) | |
Multifamily real estate secured | $ | 4,363 | Sales comparison approach, income approach, Discounted cash flows | Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations | -53.4 to 16.5% (-19.1%) | |
Auto and RV secured | $ | 198 | Sales comparison approach | Adjustment for differences between the comparable sales | -33.1 to 27.5% (8.2%) | |
Other | $ | 278 | Discounted cash flow | Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate | 0.0 to 0.0% (0.0%) 0.0 to 10.0% (5.0%) 100.0 to 100.0% (100.0%) 5.1 to 6.4% (5.7%) | |
Other real estate owned and foreclosed assets: | ||||||
Single family real estate | $ | 908 | Sales comparison approach | Adjustment for differences between the comparable sales | -23.0 to 12.5% (-5.3%) | |
Autos and RVs | $ | 73 | Sales comparison approach | Adjustment for differences between the comparable sales | -7.7 to 30.9% (8.3%) |
June 30, 2016 | ||||||
(Dollars in thousands) | Fair Value | Valuation Technique(s) | Unobservable Input | Range (Weighted Average) 1 | ||
Impaired loans: | ||||||
Single family real estate secured: | ||||||
Mortgage | $ | 28,610 | Sales comparison approach | Adjustment for differences between the comparable sales | -40.6 to 69.5% (6.2%) | |
Home equity | $ | 33 | Sales comparison approach | Adjustment for differences between the comparable sales | -27.2 to 0.0% (-11.1%) | |
Multifamily real estate secured | $ | 2,218 | Sales comparison approach and income approach | Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, capitalization rate | -29.7 to 58.0% (3.0%) | |
Commercial real estate secured | $ | 254 | Sales comparison approach and income approach | Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, capitalization rate | 0.0 to 66.7% (33.3%) | |
Auto and RV secured | $ | 278 | Sales comparison approach | Adjustment for differences between the comparable sales | 0.0 to 22.8% (10.6%) | |
Other | $ | 676 | Discounted cash flow | Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate | 0.0 to 0.0% (0.0%) 0.0 to 10.0% (5.0%) 100.0 to 100.0% (100.0%) 6.6 to 8.0% (7.3%) | |
Other real estate owned and foreclosed assets: | ||||||
Multifamily real estate | $ | 207 | Sales comparison approach and income approach | Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, capitalization rate | 0.0 to 25.0% (12.5%) | |
Autos and RVs | $ | 45 | Sales comparison approach | Adjustment for differences between the comparable sales | 0.0 to 20.6% (10.2%) | |
HTM Securities – Non-Agency RMBS | $ | 79,164 | Discounted cash flow | Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate over LIBOR | 2.6 to 48.8% (12.0%) 1.5 to 17.8% (5.7%) 40.0 to 65.9% (56.5%) 2.9 to 8.2% (5.7%) |
March 31, 2017 | |||||||||||||||||||
Fair Value | |||||||||||||||||||
(Dollars in thousands) | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||||
Financial assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 1,078,757 | $ | 1,078,757 | $ | — | $ | — | $ | 1,078,757 | |||||||||
Securities trading | 8,421 | — | — | 8,421 | 8,421 | ||||||||||||||
Securities available-for-sale | 368,229 | — | 290,174 | 78,055 | 368,229 | ||||||||||||||
Loans held for sale, at fair value | 14,696 | — | 14,696 | — | 14,696 | ||||||||||||||
Loans held for sale, at lower of cost or fair value | 7,607 | — | — | 8,209 | 8,209 | ||||||||||||||
Loans and leases held for investment—net | 7,020,700 | — | — | 7,163,242 | 7,163,242 | ||||||||||||||
Accrued interest receivable | 21,271 | — | — | 21,271 | 21,271 | ||||||||||||||
Mortgage servicing rights | 6,731 | — | — | 6,731 | 6,731 | ||||||||||||||
Financial liabilities: | |||||||||||||||||||
Time deposits and savings | 6,799,631 | — | 6,408,929 | — | 6,408,929 | ||||||||||||||
Securities sold under agreements to repurchase | 35,000 | — | 35,366 | — | 35,366 | ||||||||||||||
Advances from the Federal Home Loan Bank | 961,000 | — | 965,649 | — | 965,649 | ||||||||||||||
Subordinated notes and debentures and other | 54,450 | — | 52,466 | — | 52,466 | ||||||||||||||
Accrued interest payable | 1,474 | — | 1,474 | — | 1,474 |
June 30, 2016 | |||||||||||||||||||
Fair Value | |||||||||||||||||||
(Dollars in thousands) | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||||
Financial assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 486,727 | $ | 486,727 | $ | — | $ | — | $ | 486,727 | |||||||||
Securities trading | 7,584 | — | — | 7,584 | 7,584 | ||||||||||||||
Securities available-for-sale | 265,447 | — | 256,083 | 9,364 | 265,447 | ||||||||||||||
Securities held-to-maturity | 199,174 | — | 77,415 | 125,262 | 202,677 | ||||||||||||||
Loans held for sale, at fair value | 20,871 | — | 20,871 | — | 20,871 | ||||||||||||||
Loans held for sale, at lower of cost or fair value | 33,530 | — | — | 33,530 | 33,530 | ||||||||||||||
Loans and leases held for investment—net | 6,354,679 | — | — | 6,640,918 | 6,640,918 | ||||||||||||||
Accrued interest receivable | 26,201 | — | — | 26,201 | 26,201 | ||||||||||||||
Mortgage servicing rights | 3,943 | — | — | 3,943 | 3,943 | ||||||||||||||
Financial liabilities: | |||||||||||||||||||
Time deposits and savings | 6,044,051 | — | 5,946,991 | — | 5,946,991 | ||||||||||||||
Securities sold under agreements to repurchase | 35,000 | — | 36,391 | — | 36,391 | ||||||||||||||
Advances from the Federal Home Loan Bank | 727,000 | — | 747,940 | — | 747,940 | ||||||||||||||
Subordinated notes and debentures and other | 56,016 | — | 58,299 | — | 58,299 | ||||||||||||||
Accrued interest payable | 1,667 | — | 1,667 | — | 1,667 |
4. | SECURITIES |
March 31, 2017 | |||||||||||||||||||||||||||||||||||
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 | $ | — | $ | 30,432 | $ | 279 | $ | (478 | ) | $ | 30,233 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Non-agency2 | — | 72,823 | 6,852 | (1,620 | ) | 78,055 | — | — | — | — | |||||||||||||||||||||||||
Total mortgage-backed securities | — | 103,255 | 7,131 | (2,098 | ) | 108,288 | — | — | — | — | |||||||||||||||||||||||||
Other debt securities: | |||||||||||||||||||||||||||||||||||
U.S. agencies1 | — | 99,995 | — | — | 99,995 | — | — | — | — | ||||||||||||||||||||||||||
Municipal | — | 29,827 | 22 | (456 | ) | 29,393 | — | — | — | — | |||||||||||||||||||||||||
Non-agency | 8,421 | 128,530 | 2,070 | (47 | ) | 130,553 | — | — | — | — | |||||||||||||||||||||||||
Total other debt securities | 8,421 | 258,352 | 2,092 | (503 | ) | 259,941 | — | — | — | — | |||||||||||||||||||||||||
Total debt securities | $ | 8,421 | $ | 361,607 | $ | 9,223 | $ | (2,601 | ) | $ | 368,229 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
June 30, 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 | $ | — | $ | 33,256 | $ | 489 | $ | (23 | ) | $ | 33,722 | $ | 35,067 | $ | 843 | $ | (1 | ) | $ | 35,909 | |||||||||||||||
Non-agency2 | — | 9,043 | 321 | — | 9,364 | 128,211 | 7,095 | (10,044 | ) | 125,262 | |||||||||||||||||||||||||
Total mortgage-backed securities | — | 42,299 | 810 | (23 | ) | 43,086 | 163,278 | 7,938 | (10,045 | ) | 161,171 | ||||||||||||||||||||||||
Other debt securities: | |||||||||||||||||||||||||||||||||||
Municipal | — | 34,543 | 185 | (10 | ) | 34,718 | 35,896 | 5,610 | — | 41,506 | |||||||||||||||||||||||||
Non-agency | 7,584 | 186,316 | 1,501 | (174 | ) | 187,643 | — | — | — | — | |||||||||||||||||||||||||
Total other debt securities | 7,584 | 220,859 | 1,686 | (184 | ) | 222,361 | 35,896 | 5,610 | — | 41,506 | |||||||||||||||||||||||||
Total debt securities | $ | 7,584 | $ | 263,158 | $ | 2,496 | $ | (207 | ) | $ | 265,447 | $ | 199,174 | $ | 13,548 | $ | (10,045 | ) | $ | 202,677 |
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. |
March 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 19,611 | $ | (381 | ) | $ | 2,351 | $ | (98 | ) | $ | 21,962 | $ | (479 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||
Non-agency | 3,055 | (43 | ) | 25,725 | (1,576 | ) | 28,780 | (1,619 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Total RMBS securities | 22,666 | (424 | ) | 28,076 | (1,674 | ) | 50,742 | (2,098 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Other Debt: | |||||||||||||||||||||||||||||||||||||||||||||||
Municipal Debt | 19,533 | (449 | ) | 9,001 | (7 | ) | 28,534 | (456 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Non-agency | 10,368 | (47 | ) | — | — | 10,368 | (47 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Total Other Debt | 29,901 | (496 | ) | 9,001 | (7 | ) | 38,902 | (503 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Total debt securities | $ | 52,567 | $ | (920 | ) | $ | 37,077 | $ | (1,681 | ) | $ | 89,644 | $ | (2,601 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||
June 30, 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 | $ | — | $ | — | $ | 5,094 | $ | (23 | ) | $ | 5,094 | $ | (23 | ) | $ | 129 | $ | (1 | ) | $ | — | $ | — | $ | 129 | $ | (1 | ) | |||||||||||||||||||
Non-agency | — | — | — | — | — | — | 15,011 | (419 | ) | 53,372 | (9,625 | ) | 68,383 | (10,044 | ) | ||||||||||||||||||||||||||||||||
Total RMBS securities | — | — | 5,094 | (23 | ) | 5,094 | (23 | ) | 15,140 | (420 | ) | 53,372 | (9,625 | ) | 68,512 | (10,045 | ) | ||||||||||||||||||||||||||||||
Other Debt: | |||||||||||||||||||||||||||||||||||||||||||||||
Municipal Debt | 10,267 | (10 | ) | — | — | 10,267 | (10 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Non-agency | 5,566 | (5 | ) | 16,963 | (169 | ) | 22,529 | (174 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Total Other Debt | 15,833 | (15 | ) | 16,963 | (169 | ) | 32,796 | (184 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Total debt securities | $ | 15,833 | $ | (15 | ) | $ | 22,057 | $ | (192 | ) | $ | 37,890 | $ | (207 | ) | $ | 15,140 | $ | (420 | ) | $ | 53,372 | $ | (9,625 | ) | $ | 68,512 | $ | (10,045 | ) |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
(Dollars in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Beginning balance | $ | (16,631 | ) | $ | (20,528 | ) | $ | (20,865 | ) | $ | (20,503 | ) | |||
Additions for the amounts related to credit loss for which an other-than-temporary impairment was not previously recognized | (217 | ) | — | (217 | ) | (106 | ) | ||||||||
Increases to the amount related to the credit loss for which other-than-temporary impairment was previously recognized | (151 | ) | (8 | ) | (1,621 | ) | (43 | ) | |||||||
Credit losses realized for securities sold | 556 | — | 6,260 | 116 | |||||||||||
Ending balance | $ | (16,443 | ) | $ | (20,536 | ) | $ | (16,443 | ) | $ | (20,536 | ) |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
(Dollars in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Proceeds1 | $ | 3,301 | $ | (67 | ) | $ | 124,362 | $ | 10,002 | ||||||
Gross realized gains1 | 312 | (14 | ) | 6,390 | 919 | ||||||||||
Gross realized losses | — | — | (3,466 | ) | — | ||||||||||
Net realized gain on securities | $ | 312 | $ | (14 | ) | $ | 2,924 | $ | 919 |
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. |
(Dollars in thousands) | March 31, 2017 | June 30, 2016 | |||||
Available-for-sale debt securities—net unrealized gains | $ | 6,622 | $ | 2,288 | |||
Available-for-sale debt securities—non-credit related losses | (7,946 | ) | (138 | ) | |||
Held-to-maturity debt securities—non-credit related losses | — | (14,129 | ) | ||||
Subtotal | (1,324 | ) | (11,979 | ) | |||
Tax (expense) benefit | 162 | 4,675 | |||||
Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss) | $ | (1,162 | ) | $ | (7,304 | ) |
March 31, 2017 | |||||||||||||||||||
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 | $ | — | $ | 1,982 | $ | 1,970 | $ | — | $ | — | |||||||||
Due one to five years | — | 6,386 | 6,361 | — | — | ||||||||||||||
Due five to ten years | — | 5,420 | 5,416 | — | — | ||||||||||||||
Due after ten years | — | 16,644 | 16,486 | — | — | ||||||||||||||
Total RMBS—U.S. agencies | — | 30,432 | 30,233 | — | — | ||||||||||||||
RMBS—Non-agency: | |||||||||||||||||||
Due within one year | — | 9,488 | 10,135 | — | — | ||||||||||||||
Due one to five years | — | 29,676 | 31,770 | — | — | ||||||||||||||
Due five to ten years | — | 21,048 | 22,522 | — | — | ||||||||||||||
Due after ten years | — | 12,611 | 13,628 | — | — | ||||||||||||||
Total RMBS—Non-agency | — | 72,823 | 78,055 | — | — | ||||||||||||||
Other debt: | |||||||||||||||||||
Due within one year | — | 170,595 | 171,420 | — | — | ||||||||||||||
Due one to five years | 203 | 73,872 | 75,062 | — | — | ||||||||||||||
Due five to ten years | 286 | 21 | 21 | — | — | ||||||||||||||
Due after ten years | 7,932 | 13,864 | 13,438 | — | — | ||||||||||||||
Total other debt | 8,421 | 258,352 | 259,941 | — | — | ||||||||||||||
Total | $ | 8,421 | $ | 361,607 | $ | 368,229 | $ | — | $ | — |
5. | LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES |
(Dollars in thousands) | March 31, 2017 | June 30, 2016 | |||||
Single family real estate secured: | |||||||
Mortgage | $ | 3,809,703 | $ | 3,678,520 | |||
Home equity | 2,630 | 2,470 | |||||
Warehouse and other1 | 391,010 | 537,714 | |||||
Multifamily real estate secured | 1,572,994 | 1,373,216 | |||||
Commercial real estate secured | 155,621 | 121,746 | |||||
Auto and RV secured | 131,063 | 73,676 | |||||
Factoring | 151,319 | 98,275 | |||||
Commercial & Industrial | 868,279 | 514,300 | |||||
Other | 13,139 | 2,542 | |||||
Total gross loans and leases | 7,095,758 | 6,402,459 | |||||
Allowance for loan and lease losses | (45,987 | ) | (35,826 | ) | |||
Unaccreted discounts and loan and lease fees | (29,071 | ) | (11,954 | ) | |||
Total net loans and leases | $ | 7,020,700 | $ | 6,354,679 |
1. | The balance of single family warehouse loans was $123,724 at March 31, 2017 and $173,148 at June 30, 2016. The remainder of the balance is attributable to single family lender finance loans. |
For the Three Months Ended March 31, 2017 | |||||||||||||||||||||||||||||||||||||||
Single Family Real Estate Secured | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgage | Home Equity | Warehouse & Other | Multifamily Real Estate Secured | Commercial Real Estate Secured | Auto and RV Secured | Factoring | Commercial & Industrial | Other | Total | |||||||||||||||||||||||||||||
Balance at January 1, 2017 | $ | 19,243 | $ | 22 | $ | 2,179 | $ | 3,913 | $ | 1,001 | $ | 2,017 | $ | 339 | $ | 9,764 | $ | 2,450 | $ | 40,928 | |||||||||||||||||||
Provision for loan and lease loss | 360 | 22 | (46 | ) | 93 | (51 | ) | 261 | 40 | (271 | ) | 4,454 | 4,862 | ||||||||||||||||||||||||||
Charge-offs | (103 | ) | (23 | ) | — | — | — | (190 | ) | — | — | (26 | ) | (342 | ) | ||||||||||||||||||||||||
Recoveries | 66 | 2 | — | 375 | 39 | 57 | — | — | — | 539 | |||||||||||||||||||||||||||||
Balance at March 31, 2017 | $ | 19,566 | $ | 23 | $ | 2,133 | $ | 4,381 | $ | 989 | $ | 2,145 | $ | 379 | $ | 9,493 | $ | 6,878 | $ | 45,987 | |||||||||||||||||||
For the Three Months Ended March 31, 2016 | |||||||||||||||||||||||||||||||||||||||
Single Family Real Estate Secured | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgage | Home Equity | Warehouse & Other | Multifamily Real Estate Secured | Commercial Real Estate Secured | Auto and RV Secured | Factoring | Commercial & Industrial | Other | Total | |||||||||||||||||||||||||||||
Balance at January 1, 2016 | $ | 17,167 | $ | 45 | $ | 2,643 | $ | 3,293 | $ | 736 | $ | 1,840 | $ | 359 | $ | 6,602 | $ | 2,386 | $ | 35,071 | |||||||||||||||||||
Provision for loan and lease loss | 947 | (20 | ) | (170 | ) | 637 | 20 | (611 | ) | 3 | 1,055 | 139 | 2,000 | ||||||||||||||||||||||||||
Charge-offs | (29 | ) | — | — | (114 | ) | (29 | ) | (15 | ) | — | — | — | (187 | ) | ||||||||||||||||||||||||
Recoveries | 1 | 7 | — | — | — | 39 | — | — | — | 47 | |||||||||||||||||||||||||||||
Balance at March 31, 2016 | $ | 18,086 | $ | 32 | $ | 2,473 | $ | 3,816 | $ | 727 | $ | 1,253 | $ | 362 | $ | 7,657 | $ | 2,525 | $ | 36,931 | |||||||||||||||||||
For the Nine Months Ended March 31, 2017 | |||||||||||||||||||||||||||||||||||||||
Single Family Real Estate Secured | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgage | Home Equity | Warehouse & Other | Multifamily Real Estate Secured | Commercial Real Estate Secured | Auto and RV Secured | Factoring | Commercial & Industrial | Other | Total | |||||||||||||||||||||||||||||
Balance at July 1, 2016 | $ | 18,666 | $ | 23 | $ | 2,685 | $ | 3,938 | $ | 882 | $ | 1,615 | $ | 245 | $ | 7,630 | $ | 142 | $ | 35,826 | |||||||||||||||||||
Provision for loan and lease loss | 1,760 | 1 | (552 | ) | 68 | 91 | 710 | 134 | 1,863 | 6,787 | 10,862 | ||||||||||||||||||||||||||||
Charge-offs | (971 | ) | (23 | ) | — | — | (23 | ) | (329 | ) | — | — | (159 | ) | (1,505 | ) | |||||||||||||||||||||||
Recoveries | 111 | 22 | — | 375 | 39 | 149 | — | — | 108 | 804 | |||||||||||||||||||||||||||||
Balance at March 31, 2017 | $ | 19,566 | $ | 23 | $ | 2,133 | $ | 4,381 | $ | 989 | $ | 2,145 | $ | 379 | $ | 9,493 | $ | 6,878 | $ | 45,987 | |||||||||||||||||||
For the Nine Months Ended March 31, 2016 | |||||||||||||||||||||||||||||||||||||||
Single Family Real Estate Secured | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgage | Home Equity | Warehouse & Other | Multifamily Real Estate Secured | Commercial Real Estate Secured | Auto and RV Secured | Factoring | Commercial & Industrial | Other | Total | |||||||||||||||||||||||||||||
Balance at July 1, 2015 | $ | 13,664 | $ | 122 | $ | 1,879 | $ | 4,363 | $ | 1,103 | $ | 953 | $ | 292 | $ | 5,882 | $ | 69 | $ | 28,327 | |||||||||||||||||||
Provision for loan and lease loss | 4,365 | (116 | ) | 594 | (433 | ) | (1,329 | ) | 418 | 70 | 1,775 | 2,456 | 7,800 | ||||||||||||||||||||||||||
Charge-offs | (106 | ) | (2 | ) | — | (114 | ) | (29 | ) | (221 | ) | — | — | — | (472 | ) | |||||||||||||||||||||||
Recoveries | 163 | 28 | — | — | 982 | 103 | — | — | — | 1,276 | |||||||||||||||||||||||||||||
Balance at March 31, 2016 | $ | 18,086 | $ | 32 | $ | 2,473 | $ | 3,816 | $ | 727 | $ | 1,253 | $ | 362 | $ | 7,657 | $ | 2,525 | $ | 36,931 |
March 31, 2017 | |||||||||||||||||||||||||||
(Dollars in thousands) | Unpaid Principal Balance | Principal Balance Adjustment1 | Unpaid Book Balance | Accrued Interest / Origination Fees | Recorded Investment | Related Allocation of General Allowance | Related Allocation of Specific Allowance | ||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||
Single Family Real Estate Secured: | |||||||||||||||||||||||||||
Mortgage: | |||||||||||||||||||||||||||
In-house originated | $ | 11,250 | $ | 1,561 | $ | 9,689 | $ | 1,143 | $ | 10,832 | $ | — | $ | — | |||||||||||||
Purchased | 5,273 | 2,063 | 3,210 | 129 | 3,339 | — | — | ||||||||||||||||||||
Multifamily Real Estate Secured: | |||||||||||||||||||||||||||
Purchased | 494 | 206 | 288 | — | 288 | — | — | ||||||||||||||||||||
Auto and RV Secured: | |||||||||||||||||||||||||||
In-house originated | 666 | 515 | 151 | 14 | 165 | — | — | ||||||||||||||||||||
Other: | 27 | 27 | — | — | — | — | — | ||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||
Single Family Real Estate Secured: | |||||||||||||||||||||||||||
Mortgage: | |||||||||||||||||||||||||||
In-house originated | 14,106 | 11 | 14,095 | — | 14,095 | 548 | — | ||||||||||||||||||||
Purchased | 1,453 | 29 | 1,424 | 13 | 1,437 | 38 | — | ||||||||||||||||||||
Home Equity: | |||||||||||||||||||||||||||
In-house originated | 46 | 2 | 44 | — | 44 | 1 | — | ||||||||||||||||||||
Multifamily Real Estate Secured: | |||||||||||||||||||||||||||
In-house originated | 4,170 | 95 | 4,075 | 147 | 4,222 | 19 | — | ||||||||||||||||||||
Auto and RV Secured: | |||||||||||||||||||||||||||
In-house originated | 55 | 8 | 47 | 1 | 48 | 1 | — | ||||||||||||||||||||
Other | 278 | — | 278 | — | 278 | 44 | — | ||||||||||||||||||||
Total | $ | 37,818 | $ | 4,517 | $ | 33,301 | $ | 1,447 | $ | 34,748 | $ | 651 | $ | — | |||||||||||||
As a % of total gross loans and leases | 0.53 | % | 0.06 | % | 0.47 | % | 0.02 | % | 0.49 | % | 0.01 | % | — | % |
June 30, 2016 | |||||||||||||||||||||||||||
(Dollars in thousands) | Unpaid Principal Balance | Principal Balance Adjustment1 | Unpaid Book Balance | Accrued Interest / Origination Fees | Recorded Investment | Related Allocation of General Allowance | Related Allocation of Specific Allowance | ||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||
Single Family Real Estate Secured: | |||||||||||||||||||||||||||
Mortgage: | |||||||||||||||||||||||||||
In-house originated | $ | 8,989 | $ | 727 | $ | 8,262 | $ | 657 | $ | 8,919 | $ | — | — | ||||||||||||||
Purchased | 5,852 | 2,132 | 3,720 | 110 | 3,830 | — | — | ||||||||||||||||||||
Multifamily Real Estate Secured: | |||||||||||||||||||||||||||
Purchased | 2,520 | 1,093 | 1,427 | — | 1,427 | — | — | ||||||||||||||||||||
Commercial Real Estate Secured: | |||||||||||||||||||||||||||
Purchased | 629 | 375 | 254 | 61 | 315 | — | — | ||||||||||||||||||||
Auto and RV Secured: | |||||||||||||||||||||||||||
In-house originated | 902 | 663 | 239 | 10 | 249 | — | — | ||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||
Single Family Real Estate Secured: | |||||||||||||||||||||||||||
Mortgage: | |||||||||||||||||||||||||||
In-house originated | 14,707 | 11 | 14,696 | 65 | 14,761 | 575 | — | ||||||||||||||||||||
Purchased | 1,976 | 44 | 1,932 | 5 | 1,937 | 46 | — | ||||||||||||||||||||
Home Equity: | |||||||||||||||||||||||||||
In-house originated | 35 | 2 | 33 | — | 33 | 1 | — | ||||||||||||||||||||
Multifamily Real Estate Secured: | |||||||||||||||||||||||||||
In-house originated | 795 | 4 | 791 | 65 | 856 | 1 | — | ||||||||||||||||||||
Auto and RV Secured: | |||||||||||||||||||||||||||
In-house originated | 46 | 7 | 39 | 4 | 43 | 2 | — | ||||||||||||||||||||
Other | 676 | — | 676 | — | 676 | 67 | — | ||||||||||||||||||||
Total | $ | 37,127 | $ | 5,058 | $ | 32,069 | $ | 977 | $ | 33,046 | $ | 692 | $ | — | |||||||||||||
As a % of total gross loans and leases | 0.58 | % | 0.08 | % | 0.50 | % | 0.02 | % | 0.52 | % | 0.01 | % | — | % |
1. | Impaired loans with an allowance recorded do not have any charge-offs. Principal balance adjustments on impaired loans with an allowance recorded represent interest payments that have been applied to the book balance as a result of the loans’ non-accrual status. |
March 31, 2017 | |||||||||||||||||||||||||||||||||||||||
Single Family Real Estate Secured | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgage | Home Equity | Warehouse and other | Multifamily Real Estate Secured | Commercial Real Estate Secured | Auto and RV Secured | Factoring | Commercial & Industrial | Other | Total | |||||||||||||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans and leases: | |||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment – general allowance | $ | 586 | $ | 1 | $ | — | $ | 19 | $ | — | $ | 1 | $ | — | $ | — | $ | 44 | $ | 651 | |||||||||||||||||||
Individually evaluated for impairment – specific allowance | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Collectively evaluated for impairment | 18,980 | 22 | 2,133 | 4,362 | 989 | 2,144 | 379 | 9,493 | 6,834 | 45,336 | |||||||||||||||||||||||||||||
Total ending allowance balance | $ | 19,566 | $ | 23 | $ | 2,133 | $ | 4,381 | $ | 989 | $ | 2,145 | $ | 379 | $ | 9,493 | $ | 6,878 | $ | 45,987 | |||||||||||||||||||
Loans and leases: | |||||||||||||||||||||||||||||||||||||||
Loans and leases individually evaluated for impairment1 | $ | 28,418 | $ | 44 | $ | — | $ | 4,363 | $ | — | $ | 198 | $ | — | $ | — | $ | 278 | $ | 33,301 | |||||||||||||||||||
Loans and leases collectively evaluated for impairment | 3,781,285 | 2,586 | 391,010 | 1,568,631 | 155,621 | 130,865 | 151,319 | 868,279 | 12,861 | 7,062,457 | |||||||||||||||||||||||||||||
Principal loan and lease balance | 3,809,703 | 2,630 | 391,010 | 1,572,994 | 155,621 | 131,063 | 151,319 | 868,279 | 13,139 | 7,095,758 | |||||||||||||||||||||||||||||
Unaccreted discounts and loan and lease fees | 11,066 | 29 | (1,865 | ) | 4,746 | 747 | 1,745 | (46,221 | ) | 758 | (76 | ) | (29,071 | ) | |||||||||||||||||||||||||
Accrued interest receivable | 8,398 | 3 | 1,504 | 4,862 | 385 | 246 | 198 | 3,679 | 3 | 19,278 | |||||||||||||||||||||||||||||
Total recorded investment in loans and leases | $ | 3,829,167 | $ | 2,662 | $ | 390,649 | $ | 1,582,602 | $ | 156,753 | $ | 133,054 | $ | 105,296 | $ | 872,716 | $ | 13,066 | $ | 7,085,965 |
June 30, 2016 | |||||||||||||||||||||||||||||||||||||||
Single Family Real Estate Secured | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgage | Home Equity | Warehouse and other | Multifamily Real Estate Secured | Commercial Real Estate Secured | Auto and RV Secured | Factoring | Commercial & Industrial | Other | Total | |||||||||||||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans and leases: | |||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment – general allowance | $ | 621 | $ | 1 | $ | — | $ | 1 | $ | — | $ | 2 | $ | — | $ | — | $ | 67 | $ | 692 | |||||||||||||||||||
Individually evaluated for impairment – specific allowance | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Collectively evaluated for impairment | 18,045 | 22 | 2,685 | 3,937 | 882 | 1,613 | 245 | 7,630 | 75 | 35,134 | |||||||||||||||||||||||||||||
Total ending allowance balance | $ | 18,666 | $ | 23 | $ | 2,685 | $ | 3,938 | $ | 882 | $ | 1,615 | $ | 245 | $ | 7,630 | $ | 142 | $ | 35,826 | |||||||||||||||||||
Loans and leases: | |||||||||||||||||||||||||||||||||||||||
Loans and leases individually evaluated for impairment1 | $ | 28,610 | $ | 33 | $ | — | $ | 2,218 | $ | 254 | $ | 278 | $ | — | $ | — | $ | 676 | $ | 32,069 | |||||||||||||||||||
Loans and leases collectively evaluated for impairment | 3,649,910 | 2,437 | 537,714 | 1,370,998 | 121,492 | 73,398 | 98,275 | 514,300 | 1,866 | 6,370,390 | |||||||||||||||||||||||||||||
Principal loan and lease balance | 3,678,520 | 2,470 | 537,714 | 1,373,216 | 121,746 | 73,676 | 98,275 | 514,300 | 2,542 | 6,402,459 | |||||||||||||||||||||||||||||
Unaccreted discounts and loan and lease fees | 13,142 | 24 | (2,200 | ) | 3,957 | 542 | 975 | (30,533 | ) | 2,172 | (33 | ) | (11,954 | ) | |||||||||||||||||||||||||
Accrued interest receivable | 12,460 | 2 | 1,870 | 5,409 | 389 | 169 | 327 | 2,202 | 3 | 22,831 | |||||||||||||||||||||||||||||
Total recorded investment in loans and leases | $ | 3,704,122 | $ | 2,496 | $ | 537,384 | $ | 1,382,582 | $ | 122,677 | $ | 74,820 | $ | 68,069 | $ | 518,674 | $ | 2,512 | $ | 6,413,336 |
(Dollars in thousands) | March 31, 2017 | June 30, 2016 | |||||
Single Family Real Estate Secured: | |||||||
Mortgage: | |||||||
In-house originated | $ | 23,784 | $ | 22,958 | |||
Purchased | 4,634 | 5,442 | |||||
Home Equity: | |||||||
In-house originated | 44 | 33 | |||||
Multifamily Real Estate Secured: | |||||||
In-house originated | 4,075 | 791 | |||||
Purchased | 288 | 1,427 | |||||
Commercial Real Estate Secured: | |||||||
Purchased | — | 254 | |||||
Total non-performing loans secured by real estate | 32,825 | 30,905 | |||||
Auto and RV Secured | 198 | 278 | |||||
Other | 278 | 676 | |||||
Total non-performing loans and leases | $ | 33,301 | $ | 31,859 | |||
Non-performing loans and leases to total loans and leases | 0.47 | % | 0.50 | % |
March 31, 2017 | |||||||||||||||||||||||||||||||||||||||
Single Family Real Estate Secured | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgage | Home Equity | Warehouse & other | Multifamily Real Estate Secured | Commercial Real Estate Secured | Auto and RV Secured | Factoring | Commercial & Industrial | Other | Total | |||||||||||||||||||||||||||||
Performing | $ | 3,781,285 | $ | 2,586 | $ | 391,010 | $ | 1,568,631 | $ | 155,621 | $ | 130,865 | $ | 151,319 | $ | 868,279 | $ | 12,861 | $ | 7,062,457 | |||||||||||||||||||
Non-performing | 28,418 | 44 | — | 4,363 | — | 198 | — | — | 278 | 33,301 | |||||||||||||||||||||||||||||
Total | $ | 3,809,703 | $ | 2,630 | $ | 391,010 | $ | 1,572,994 | $ | 155,621 | $ | 131,063 | $ | 151,319 | $ | 868,279 | $ | 13,139 | $ | 7,095,758 |
June 30, 2016 | |||||||||||||||||||||||||||||||||||||||
Single Family Real Estate Secured | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgage | Home Equity | Warehouse & other | Multifamily Real Estate Secured | Commercial Real Estate Secured | Auto and RV Secured | Factoring | Commercial & Industrial | Other | Total | |||||||||||||||||||||||||||||
Performing | $ | 3,650,120 | $ | 2,437 | $ | 537,714 | $ | 1,370,998 | $ | 121,492 | $ | 73,398 | $ | 98,275 | $ | 514,300 | $ | 1,866 | $ | 6,370,600 | |||||||||||||||||||
Non-performing | 28,400 | 33 | — | 2,218 | 254 | 278 | — | — | 676 | 31,859 | |||||||||||||||||||||||||||||
Total | $ | 3,678,520 | $ | 2,470 | $ | 537,714 | $ | 1,373,216 | $ | 121,746 | $ | 73,676 | $ | 98,275 | $ | 514,300 | $ | 2,542 | $ | 6,402,459 |
March 31, 2017 | |||||||||||||||||||||||||||||||||||
Single Family Real Estate Secured: Mortgage | Multifamily Real Estate Secured | Commercial Real Estate Secured | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Origination | Purchase | Total | Origination | Purchase | Total | Origination | Purchase | Total | ||||||||||||||||||||||||||
Performing | $ | 3,724,769 | $ | 56,516 | $ | 3,781,285 | $ | 1,480,860 | $ | 87,771 | $ | 1,568,631 | $ | 143,715 | $ | 11,906 | $ | 155,621 | |||||||||||||||||
Non-performing | 23,784 | 4,634 | 28,418 | 4,075 | 288 | 4,363 | — | — | — | ||||||||||||||||||||||||||
Total | $ | 3,748,553 | $ | 61,150 | $ | 3,809,703 | $ | 1,484,935 | $ | 88,059 | $ | 1,572,994 | $ | 143,715 | $ | 11,906 | $ | 155,621 |
June 30, 2016 | |||||||||||||||||||||||||||||||||||
Single Family Real Estate Secured: Mortgage | Multifamily Real Estate Secured | Commercial Real Estate Secured | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Origination | Purchase | Total | Origination | Purchase | Total | Origination | Purchase | Total | ||||||||||||||||||||||||||
Performing | $ | 3,578,629 | $ | 71,491 | $ | 3,650,120 | $ | 1,270,379 | $ | 100,619 | $ | 1,370,998 | $ | 109,370 | $ | 12,122 | $ | 121,492 | |||||||||||||||||
Non-performing | 22,958 | 5,442 | 28,400 | 791 | 1,427 | 2,218 | — | 254 | 254 | ||||||||||||||||||||||||||
Total | $ | 3,601,587 | $ | 76,933 | $ | 3,678,520 | $ | 1,271,170 | $ | 102,046 | $ | 1,373,216 | $ | 109,370 | $ | 12,376 | $ | 121,746 |
March 31, 2017 | |||||||||||||||||||||||||||||||||||||||
Single Family Real Estate Secured | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgage | Home Equity | Warehouse & other | Multifamily Real Estate Secured | Commercial Real Estate Secured | Auto and RV Secured | Factoring | Commercial & Industrial | Other | Total | |||||||||||||||||||||||||||||
Performing loans temporarily modified as TDR | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Non-performing loans and leases | 28,418 | 44 | — | 4,363 | — | 198 | — | — | 278 | 33,301 | |||||||||||||||||||||||||||||
Total impaired loans and leases | $ | 28,418 | $ | 44 | $ | — | $ | 4,363 | $ | — | $ | 198 | $ | — | $ | — | $ | 278 | $ | 33,301 | |||||||||||||||||||
June 30, 2016 | |||||||||||||||||||||||||||||||||||||||
Single Family Real Estate Secured | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgage | Home Equity | Warehouse & other | Multifamily Real Estate Secured | Commercial Real Estate Secured | Auto and RV Secured | Factoring | Commercial & Industrial | Other | Total | |||||||||||||||||||||||||||||
Performing loans temporarily modified as TDR | $ | 210 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 210 | |||||||||||||||||||
Non-performing loans and leases | 28,400 | 33 | — | 2,218 | 254 | 278 | — | — | 676 | 31,859 | |||||||||||||||||||||||||||||
Total impaired loans and leases | $ | 28,610 | $ | 33 | $ | — | $ | 2,218 | $ | 254 | $ | 278 | $ | — | $ | — | $ | 676 | $ | 32,069 |
For the Three Months Ended March 31, 2017 | |||||||||||||||||||||||||||||||||||||||
Single Family Real Estate Secured | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgage | Home Equity | Warehouse & other | Multifamily Real Estate Secured | Commercial Real Estate Secured | Auto and RV Secured | Factoring | Commercial & Industrial | Other | Total | |||||||||||||||||||||||||||||
Interest income recognized on performing TDRs | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1 | |||||||||||||||||||
Average balances of performing TDRs | $ | 103 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 103 | |||||||||||||||||||
Average balances of impaired loans | $ | 28,384 | $ | 46 | $ | — | $ | 4,921 | $ | 116 | $ | 207 | $ | — | $ | — | $ | 362 | $ | 34,036 | |||||||||||||||||||
For the Three Months Ended March 31, 2016 | |||||||||||||||||||||||||||||||||||||||
Single Family Real Estate Secured | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgage | Home Equity | Warehouse & other | Multifamily Real Estate Secured | Commercial Real Estate Secured | Auto and RV Secured | Factoring | Commercial & Industrial | Other | Total | |||||||||||||||||||||||||||||
Interest income recognized on performing TDRs | $ | 2 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 2 | |||||||||||||||||||
Average balances of performing TDRs | $ | 213 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 213 | |||||||||||||||||||
Average balances of impaired loans | $ | 19,977 | $ | 21 | $ | — | $ | 4,787 | $ | 372 | $ | 282 | $ | — | $ | — | $ | — | $ | 25,439 |
For the Nine Months Ended March 31, 2017 | |||||||||||||||||||||||||||||||||||||||
Single Family Real Estate Secured | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgage | Home Equity | Warehouse & other | Multifamily Real Estate Secured | Commercial Real Estate Secured | Auto and RV Secured | Factoring | Commercial & Industrial | Other | Total | |||||||||||||||||||||||||||||
Interest income recognized on performing TDRs | $ | 7 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 7 | |||||||||||||||||||
Average balances of performing TDRs | $ | 156 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 156 | |||||||||||||||||||
Average balances of impaired loans | $ | 30,184 | $ | 39 | $ | — | $ | 4,448 | $ | 180 | $ | 250 | $ | — | $ | — | $ | 494 | $ | 35,595 | |||||||||||||||||||
For the Nine Months Ended March 31, 2016 | |||||||||||||||||||||||||||||||||||||||
Single Family Real Estate Secured | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgage | Home Equity | Warehouse & other | Multifamily Real Estate Secured | Commercial Real Estate Secured | Auto and RV Secured | Factoring | Commercial & Industrial | Other | Total | |||||||||||||||||||||||||||||
Interest income recognized on performing TDRs | $ | 6 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 6 | |||||||||||||||||||
Average balances of performing TDRs | $ | 215 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 215 | |||||||||||||||||||
Average balances of impaired loans | $ | 21,559 | $ | 15 | $ | — | $ | 5,064 | $ | 1,147 | $ | 340 | $ | — | $ | — | $ | — | $ | 28,125 |
March 31, 2017 | |||||||||||||||||||
(Dollars in thousands) | Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||||
Single Family Real Estate Secured: | |||||||||||||||||||
Mortgage: | |||||||||||||||||||
In-house originated | $ | 3,713,948 | $ | 10,821 | $ | 23,784 | $ | — | $ | 3,748,553 | |||||||||
Purchased | 55,731 | 487 | 4,932 | — | 61,150 | ||||||||||||||
Home Equity: | |||||||||||||||||||
In-house originated | 2,585 | — | 45 | — | 2,630 | ||||||||||||||
Warehouse and other: | |||||||||||||||||||
In-house originated | 390,515 | — | 495 | — | 391,010 | ||||||||||||||
Multifamily Real Estate Secured: | |||||||||||||||||||
In-house originated | 1,478,870 | 1,990 | 4,075 | — | 1,484,935 | ||||||||||||||
Purchased | 86,749 | — | 1,310 | — | 88,059 | ||||||||||||||
Commercial Real Estate Secured: | |||||||||||||||||||
In-house originated | 143,715 | — | — | — | 143,715 | ||||||||||||||
Purchased | 9,928 | 1,978 | — | — | 11,906 | ||||||||||||||
Auto and RV Secured: | |||||||||||||||||||
In-house originated | 130,800 | 45 | 218 | — | 131,063 | ||||||||||||||
Factoring | 151,319 | — | — | — | 151,319 | ||||||||||||||
Commercial & Industrial | 868,082 | 197 | — | — | 868,279 | ||||||||||||||
Other | 9,670 | 3,191 | 278 | — | 13,139 | ||||||||||||||
Total | $ | 7,041,912 | $ | 18,709 | $ | 35,137 | $ | — | $ | 7,095,758 | |||||||||
As a % of total gross loans and leases | 99.2 | % | 0.3 | % | 0.5 | % | — | % | 100.0 | % | |||||||||
June 30, 2016 | |||||||||||||||||||
(Dollars in thousands) | Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||||
Single Family Real Estate Secured: | |||||||||||||||||||
Mortgage: | |||||||||||||||||||
In-house originated | $ | 3,563,430 | $ | 10,938 | $ | 27,219 | $ | — | $ | 3,601,587 | |||||||||
Purchased | 71,111 | — | 5,822 | — | 76,933 | ||||||||||||||
Home Equity: | |||||||||||||||||||
In-house originated | 2,420 | 17 | 33 | — | 2,470 | ||||||||||||||
Warehouse and other: | |||||||||||||||||||
In-house originated | 534,868 | 2,846 | — | — | 537,714 | ||||||||||||||
Multifamily Real Estate Secured: | |||||||||||||||||||
In-house originated | 1,262,384 | 4,721 | 4,065 | — | 1,271,170 | ||||||||||||||
Purchased | 96,792 | 2,769 | 2,485 | — | 102,046 | ||||||||||||||
Commercial Real Estate Secured: | |||||||||||||||||||
In-house originated | 109,370 | — | — | — | 109,370 | ||||||||||||||
Purchased | 10,110 | 2,012 | 254 | — | 12,376 | ||||||||||||||
Auto and RV Secured: | |||||||||||||||||||
In-house originated | 73,192 | 97 | 387 | — | 73,676 | ||||||||||||||
Factoring | 98,275 | — | — | — | 98,275 | ||||||||||||||
Commercial & Industrial | 513,310 | — | 990 | — | 514,300 | ||||||||||||||
Other | 1,715 | 151 | 676 | — | 2,542 | ||||||||||||||
Total | $ | 6,336,977 | $ | 23,551 | $ | 41,931 | $ | — | $ | 6,402,459 | |||||||||
As a % of total gross loans and leases | 99.0 | % | 0.4 | % | 0.6 | % | — | % | 100.0 | % |
March 31, 2017 | |||||||||||||||
(Dollars in thousands) | 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | Total | |||||||||||
Single family real estate secured: | |||||||||||||||
Mortgage: | |||||||||||||||
In-house originated | $ | 5,317 | $ | 1,649 | $ | 23,354 | $ | 30,320 | |||||||
Purchased | 690 | 44 | 2,487 | 3,221 | |||||||||||
Home equity: | |||||||||||||||
In-house originated | — | — | 43 | 43 | |||||||||||
Warehouse and other | — | 495 | — | 495 | |||||||||||
Multifamily real estate secured: | |||||||||||||||
In-house originated | — | — | 4,075 | 4,075 | |||||||||||
Auto and RV secured | 227 | 22 | 15 | 264 | |||||||||||
Other | 784 | 3,191 | 278 | 4,253 | |||||||||||
Total | $ | 7,018 | $ | 5,401 | $ | 30,252 | $ | 42,671 | |||||||
As a % of total gross loans and leases | 0.10 | % | 0.07 | % | 0.43 | % | 0.60 | % | |||||||
June 30, 2016 | |||||||||||||||
(Dollars in thousands) | 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | Total | |||||||||||
Single family real estate secured: | |||||||||||||||
Mortgage | |||||||||||||||
In-house originated | $ | 5,192 | $ | 1,866 | $ | 21,722 | $ | 28,780 | |||||||
Purchased | 572 | — | 2,538 | 3,110 | |||||||||||
Home equity | |||||||||||||||
In-house originated | — | 17 | 29 | 46 | |||||||||||
Multifamily real estate secured | |||||||||||||||
In-house originated | 3,594 | — | 791 | 4,385 | |||||||||||
Commercial real estate secured | |||||||||||||||
Purchased | — | — | 254 | 254 | |||||||||||
Auto and RV secured | |||||||||||||||
In-house originated | 200 | 136 | 104 | 440 | |||||||||||
Commercial and industrial | 142 | — | — | 142 | |||||||||||
Other | 62 | 151 | 676 | 889 | |||||||||||
Total | $ | 9,762 | $ | 2,170 | $ | 26,114 | $ | 38,046 | |||||||
As a % of total gross loans and leases | 0.15 | % | 0.03 | % | 0.41 | % | 0.59 | % |
6. | SUBORDINATED NOTES AND DEBENTURES |
(Dollars in thousands) | Stock Award Compensation Expense | ||
For the fiscal year remainder: | |||
2017 | $ | 3,705 | |
2018 | 12,076 | ||
2019 | 7,911 | ||
2020 | 2,486 | ||
Total | $ | 26,178 |
Restricted Stock Unit Shares | Weighted-Average Grant-Date Fair Value | |||||
Non-vested balance at June 30, 2015 | 1,135,088 | $ | 17.01 | |||
Granted | 615,834 | 26.60 | ||||
Vested | (536,528 | ) | 16.14 | |||
Canceled | (154,668 | ) | 18.70 | |||
Non-vested balance at June 30, 2016 | 1,059,726 | $ | 22.53 | |||
Granted | 843,056 | 21.13 | ||||
Vested | (253,653 | ) | 20.29 | |||
Canceled | (69,040 | ) | 20.02 | |||
Non-vested balance at March 31, 2017 | 1,580,089 | $ | 22.25 |
8. | EARNINGS PER SHARE (“EPS”) |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
(Dollars in thousands, except per share data) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Earnings Per Common Share | |||||||||||||||
Net income | $ | 40,994 | $ | 35,914 | $ | 102,191 | $ | 89,564 | |||||||
Preferred stock dividends | (77 | ) | (77 | ) | (232 | ) | (232 | ) | |||||||
Net income attributable to common shareholders | $ | 40,917 | $ | 35,837 | $ | 101,959 | $ | 89,332 | |||||||
Average common shares issued and outstanding | 63,394,122 | 63,066,262 | 63,339,911 | 62,849,818 | |||||||||||
Average unvested RSU shares | 1,588,267 | 1,419,603 | 1,470,015 | 1,345,764 | |||||||||||
Total qualifying shares | 64,982,389 | 64,485,865 | 64,809,926 | 64,195,582 | |||||||||||
Earnings per common share | $ | 0.63 | $ | 0.56 | $ | 1.57 | $ | 1.39 | |||||||
Diluted Earnings Per Common Share | |||||||||||||||
Net income attributable to common shareholders | $ | 40,917 | $ | 35,837 | $ | 101,959 | $ | 89,332 | |||||||
Dilutive net income attributable to common shareholders | $ | 40,917 | $ | 35,837 | $ | 101,959 | $ | 89,332 | |||||||
Average common shares issued and outstanding | 64,982,389 | 64,485,865 | 64,809,926 | 64,195,582 | |||||||||||
Dilutive effect of stock options | — | 951 | — | 7,625 | |||||||||||
Total dilutive common shares issued and outstanding | 64,982,389 | 64,486,816 | 64,809,926 | 64,203,207 | |||||||||||
Diluted earnings per common share | $ | 0.63 | $ | 0.56 | $ | 1.57 | $ | 1.39 |
9. | COMMITMENTS AND CONTINGENCIES |
10. | RELATED PARTY TRANSACTIONS |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
March 31, 2017 | June 30, 2016 | March 31, 2016 | |||||||||
Selected Balance Sheet Data: | |||||||||||
Total assets | $ | 8,700,031 | $ | 7,599,304 | $ | 7,703,605 | |||||
Loans and leases—net of allowance for loan and lease losses | 7,020,700 | 6,354,679 | 6,034,700 | ||||||||
Loans held for sale, at fair value | 14,696 | 20,871 | 42,682 | ||||||||
Loans held for sale, lower of cost or fair value | 7,607 | 33,530 | 59,988 | ||||||||
Allowance for loan and lease losses | 42,525 | 35,826 | 36,931 | ||||||||
Securities—trading | 8,421 | 7,584 | 7,589 | ||||||||
Securities—available-for-sale | 368,229 | 265,447 | 278,653 | ||||||||
Securities—held-to-maturity | — | 199,174 | 211,294 | ||||||||
Total deposits | 6,799,631 | 6,044,051 | 6,048,031 | ||||||||
Securities sold under agreements to repurchase | 35,000 | 35,000 | 35,000 | ||||||||
Advances from the FHLB | 961,000 | 727,000 | 858,000 | ||||||||
Subordinated notes and debentures and other | 54,450 | 56,016 | 54,138 | ||||||||
Total stockholders’ equity | 800,304 | 683,590 | 653,289 | ||||||||
Capital Ratios: | |||||||||||
Equity to assets at end of period | 9.20 | % | 8.99 | % | 8.48 | % | |||||
BofI Holding, Inc: | |||||||||||
Tier 1 leverage (core) capital to adjusted average assets | 9.47 | % | 9.12 | % | 8.99 | % | |||||
Common equity tier 1 capital (to risk-weighted assets) | 14.50 | % | 14.42 | % | 14.29 | % | |||||
Tier 1 capital (to risk-weighted assets) | 14.59 | % | 14.53 | % | 14.40 | % | |||||
Total capital (to risk-weighted assets) | 16.36 | % | 16.36 | % | 16.32 | % | |||||
BofI Federal Bank: | |||||||||||
Tier 1 leverage (core) capital to adjusted average assets | 9.11 | % | 8.78 | % | 8.62 | % | |||||
Common equity tier 1 capital (to risk-weighted assets) | 14.04 | % | 14.00 | % | 13.83 | % | |||||
Tier 1 capital (to risk-weighted assets) | 14.04 | % | 14.00 | % | 13.83 | % | |||||
Total capital (to risk-weighted assets) | 14.88 | % | 14.75 | % | 14.63 | % |
At or for the Three Months Ended | At or for the Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Selected Income Statement Data: | |||||||||||||||
Interest and dividend income | $ | 106,962 | $ | 84,282 | $ | 288,743 | $ | 231,446 | |||||||
Interest expense | 18,403 | 14,725 | 54,044 | 39,590 | |||||||||||
Net interest income | 88,559 | 69,557 | 234,699 | 191,856 | |||||||||||
Provision for loan and lease losses | 4,862 | 2,000 | 10,862 | 7,800 | |||||||||||
Net interest income after provision for loan and lease losses | 83,697 | 67,557 | 223,837 | 184,056 | |||||||||||
Non-interest income | 23,168 | 23,316 | 54,601 | 49,325 | |||||||||||
Non-interest expense | 35,448 | 29,408 | 101,626 | 79,771 | |||||||||||
Income before income tax expense | 71,417 | 61,465 | 176,812 | 153,610 | |||||||||||
Income tax expense | 30,423 | 25,551 | 74,621 | 64,046 | |||||||||||
Net income | $ | 40,994 | $ | 35,914 | $ | 102,191 | $ | 89,564 | |||||||
Net income attributable to common stock | $ | 40,917 | $ | 35,837 | $ | 101,959 | $ | 89,332 | |||||||
Per Share Data: | |||||||||||||||
Net income: | |||||||||||||||
Basic | $ | 0.63 | $ | 0.56 | $ | 1.57 | $ | 1.39 | |||||||
Diluted | $ | 0.63 | $ | 0.56 | $ | 1.57 | $ | 1.39 | |||||||
Book value per common share | $ | 12.55 | $ | 10.28 | $ | 12.55 | $ | 10.28 | |||||||
Tangible book value per common share | $ | 12.44 | $ | 10.23 | $ | 12.44 | $ | 10.23 | |||||||
Weighted average number of shares outstanding: | |||||||||||||||
Basic | 64,982,389 | 64,485,865 | 64,809,926 | 64,195,582 | |||||||||||
Diluted | 64,982,389 | 64,486,816 | 64,809,926 | 64,203,207 | |||||||||||
Common shares outstanding at end of period | 63,390,389 | 63,060,732 | 63,390,389 | 63,060,732 | |||||||||||
Common shares issued at end of period | 64,798,821 | 64,177,770 | 64,798,821 | 64,177,770 | |||||||||||
Performance Ratios and Other Data: | |||||||||||||||
Loan and lease originations for investment | $ | 1,044,107 | $ | 857,557 | $ | 3,040,990 | $ | 2,673,577 | |||||||
Loan originations for sale | $ | 239,931 | $ | 250,876 | $ | 1,084,387 | $ | 1,155,329 | |||||||
Loan and lease purchases | $ | 276,917 | $ | 140,109 | $ | 276,917 | $ | 140,493 | |||||||
Return on average assets | 1.94 | % | 1.95 | % | 1.72 | % | 1.82 | % | |||||||
Return on average common stockholders’ equity | 21.10 | % | 22.59 | % | 18.48 | % | 19.99 | % | |||||||
Interest rate spread1 | 4.00 | % | 3.55 | % | 3.81 | % | 3.77 | % | |||||||
Net interest margin2 | 4.24 | % | 3.85 | % | 4.02 | % | 3.97 | % | |||||||
Efficiency ratio | 31.73 | % | 31.66 | % | 35.13 | % | 33.08 | % | |||||||
Asset Quality Ratios: | |||||||||||||||
Net annualized charge-offs to average loans and leases | (0.01 | )% | 0.01 | % | 0.01 | % | (0.02 | )% | |||||||
Non-performing loans and leases to total loans and leases | 0.47 | % | 0.39 | % | 0.47 | % | 0.39 | % | |||||||
Non-performing assets to total assets | 0.39 | % | 0.31 | % | 0.39 | % | 0.31 | % | |||||||
Allowance for loan and lease losses to total loans and leases at end of period | 0.65 | % | 0.61 | % | 0.65 | % | 0.61 | % | |||||||
Allowance for loan and lease losses to non-performing loans and leases | 138.09 | % | 154.06 | % | 138.09 | % | 154.06 | % |
1. | Interest rate spread represents the difference between the annualized weighted average yield on interest-earning assets and the annualized weighted average |
2. | Net interest margin represents annualized net interest income as a percentage of average interest-earning assets. |
• | Net interest income increased $19.0 million and $42.8 million due to a 15.6% and 21.0% increase in average earning assets in the three and nine months ended March 31, 2017, respectively. These increases in interest income were primarily the result of continued growth in our loan and lease portfolio and discount accretion from Refund Advance loan purchases for the three and nine months ended March 31, 2017 compared to March 31, 2016. The overall rate on interest earning assets increased by 45 basis point and by 15 basis points for the three and nine months ended March 31, 2017 compared to March 31, 2016, respectively. Average rates paid on interest-bearing liabilities were flat for the three months ended March 31, 2017 compared to March 31, 2016, and increased 11 basis points for the nine months ended March 31, 2017 compared to March 31, 2016. The change in the mix between interest-bearing deposits and borrowings and addition of $51 million of 6.25% subordinated notes were the primary reasons for the increase in average rates paid for the nine months ended March 31, 2017 compared to March 31, 2016. |
• | Non-interest income decreased $0.1 million and increased $5.3 million for the three and nine months ended March 31, 2017 compared to the three and nine months ended March 31, 2016, respectively. The $0.1 million increase in non-interest income for the three months ended March 31, 2017, was the result of a decrease in mortgage banking income of $2.0 million and a decrease in gain on sale – other income of $0.8 million primarily from reduced sales of structured settlements, partially offset by an increase in banking service fees and other income of $1.2 million primarily from seasonal H&R Block-branded products and service fee income, an increase in prepayment penalty fee income of $1.1 million and an increase in realized gain on securities of $0.3 million. The $5.3 million increase in non-interest income for the nine months ended March 31, 2017, was primarily the result of a $5.6 million increase in banking service fees and other income primarily due to increased fees related to individual retirement accounts, a $3.2 million increase in mortgage banking, a $2.0 million increase in realized gain on securities, and an increase in prepayment penalty fee income of $1.4 million, partially offset by a $6.3 million decrease in gain on sale – other income, primarily from reduced sales of structured settlements. |
• | Non-interest expense increased $6.0 million and $21.9 million for the three and nine months ended March 31, 2017 compared to the three and nine months ended March 31, 2016, respectively. For the three months ended March 31, 2017 compared to the three months ended March 31, 2016 salaries and related expenses increased $4.3 million primarily due to the overall increase in staff to support the overall growth of the Bank. Advertising and promotional increased by $0.7 million, primarily related to increased lead generation costs. Other general and administrative costs increased by $0.4 million primarily attributable to expenses in support of seasonal H&R Block-branded products and services. For the nine months ended March 31, 2017 compared to the nine months ended March 31, 2016 salaries and related expenses increased $12.8 million primarily due to the overall increase in staff to support the overall growth of the Bank. Data processing and internet expense increased $2.0 million due to core system updates and development and increased bank customers. Advertising and promotional expense increased $2.0 million primarily related to increased lead generation costs and other general and administrative costs increased by $1.5 million primarily attributable to expenses in support of seasonal H&R Block-branded products and services. |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
(Dollars in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Net Income | $ | 40,994 | $ | 35,914 | $ | 102,191 | $ | 89,564 | |||||||
Realized securities losses (gains) | (312 | ) | 14 | (2,924 | ) | (919 | ) | ||||||||
Unrealized securities losses (gains) | 98 | 125 | 1,001 | 392 | |||||||||||
Tax (provision) benefit | 91 | (58 | ) | 812 | 220 | ||||||||||
Non-GAAP adjusted earnings1 | $ | 40,871 | $ | 35,995 | $ | 101,080 | $ | 89,257 |
For the Three Months Ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||
(Dollars in thousands) | Average Balance1 | Interest Income/ Expense | Average Yields Earned/Rates Paid2 | Average Balance1 | Interest Income/ Expense | Average Yields Earned/Rates Paid2 | |||||||||||||||
Assets: | |||||||||||||||||||||
Loans and leases3, 4 | $ | 6,944,683 | $ | 99,391 | 5.72 | % | $ | 5,804,890 | $ | 77,111 | 5.31 | % | |||||||||
Interest-earning deposits in other financial institutions | 982,002 | 2,158 | 0.88 | % | 895,473 | 1,043 | 0.47 | % | |||||||||||||
Mortgage-backed and other investment securities4 | 372,826 | 4,173 | 4.48 | % | 457,005 | 4,977 | 4.36 | % | |||||||||||||
Stock of the FHLB, at cost | 53,669 | 1,240 | 9.24 | % | 65,673 | 1,151 | 7.01 | % | |||||||||||||
Total interest-earning assets | 8,353,180 | 106,962 | 5.12 | % | 7,223,041 | 84,282 | 4.67 | % | |||||||||||||
Non-interest-earning assets | 111,178 | 129,661 | |||||||||||||||||||
Total assets | $ | 8,464,358 | $ | 7,352,702 | |||||||||||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||||||
Interest-bearing demand and savings | $ | 4,799,610 | $ | 8,608 | 0.72 | % | $ | 3,500,329 | $ | 6,356 | 0.73 | % | |||||||||
Time deposits | 886,541 | 5,543 | 2.50 | % | 847,783 | 4,656 | 2.20 | % | |||||||||||||
Securities sold under agreements to repurchase | 35,000 | 385 | 4.40 | % | 35,000 | 387 | 4.42 | % | |||||||||||||
Advances from the FHLB | 766,289 | 2,940 | 1.53 | % | 861,308 | 3,019 | 1.40 | % | |||||||||||||
Subordinated notes and debentures and other | 56,368 | 928 | 6.59 | % | 20,023 | 307 | 6.13 | % | |||||||||||||
Total interest-bearing liabilities | 6,543,808 | 18,404 | 1.12 | % | 5,264,443 | 14,725 | 1.12 | % | |||||||||||||
Non-interest-bearing demand deposits | 1,081,939 | 1,403,140 | |||||||||||||||||||
Other non-interest-bearing liabilities | 57,812 | 45,495 | |||||||||||||||||||
Stockholders’ equity | 780,799 | 639,624 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 8,464,358 | $ | 7,352,702 | |||||||||||||||||
Net interest income | $ | 88,558 | $ | 69,557 | |||||||||||||||||
Interest rate spread5 | 4.00 | % | 3.55 | % | |||||||||||||||||
Net interest margin6 | 4.24 | % | 3.85 | % |
1. | Average balances are obtained from daily data. |
2. | Annualized. |
3. | Loans and leases 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. Loans and leases include $30.2 million and $30.9 million of Community Reinvestment Act loans which are taxed at a reduced rate for the 2017 and 2016 three-month periods, respectively. |
5. | 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. |
6. | Net interest margin represents annualized net interest income as a percentage of average interest-earning assets. |
For the Nine Months Ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||
(Dollars in thousands) | Average Balance1 | Interest Income/ Expense | Average Yields Earned/Rates Paid2 | Average Balance1 | Interest Income/ Expense | Average Yields Earned/Rates Paid2 | |||||||||||||||
Assets: | |||||||||||||||||||||
Loans and leases3, 4 | $ | 6,700,515 | $ | 265,849 | 5.29 | % | $ | 5,482,804 | $ | 212,306 | 5.16 | % | |||||||||
Interest-earning deposits in other financial institutions | 600,324 | 3,234 | 0.72 | % | 462,830 | 1,371 | 0.39 | % | |||||||||||||
Mortgage-backed and other investment securities4 | 433,109 | 14,089 | 4.34 | % | 425,496 | 13,364 | 4.19 | % | |||||||||||||
Stock of the FHLB, at cost | 54,249 | 5,571 | 13.69 | % | 64,778 | 4,405 | 9.07 | % | |||||||||||||
Total interest-earning assets | 7,788,197 | 288,743 | 4.94 | % | 6,435,908 | 231,446 | 4.79 | % | |||||||||||||
Non-interest-earning assets | 142,600 | 140,330 | |||||||||||||||||||
Total assets | $ | 7,930,797 | $ | 6,576,238 | |||||||||||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||||||
Interest-bearing demand and savings | $ | 4,624,507 | $ | 24,564 | 0.71 | % | $ | 3,433,096 | $ | 17,095 | 0.66 | % | |||||||||
Time deposits | 989,224 | 17,112 | 2.31 | % | 803,833 | 12,649 | 2.10 | % | |||||||||||||
Securities sold under agreements to repurchase | 35,000 | 1,143 | 4.35 | % | 35,000 | 1,168 | 4.45 | % | |||||||||||||
Advances from the FHLB | 687,781 | 8,409 | 1.63 | % | 893,524 | 8,297 | 1.24 | % | |||||||||||||
Subordinated notes and debentures and other | 56,339 | 2,816 | 6.66 | % | 10,075 | 381 | 5.04 | % | |||||||||||||
Total interest-bearing liabilities | 6,392,851 | 54,044 | 1.13 | % | 5,175,528 | 39,590 | 1.02 | % | |||||||||||||
Non-interest-bearing demand deposits | 739,780 | 749,430 | |||||||||||||||||||
Other non-interest-bearing liabilities | 57,497 | 50,404 | |||||||||||||||||||
Stockholders’ equity | 740,669 | 600,876 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 7,930,797 | $ | 6,576,238 | |||||||||||||||||
Net interest income | $ | 234,699 | $ | 191,856 | |||||||||||||||||
Interest rate spread5 | 3.81 | % | 3.77 | % | |||||||||||||||||
Net interest margin6 | 4.02 | % | 3.97 | % |
1. | Average balances are obtained from daily data. |
2. | Annualized. |
3. | Loans and leases 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. Loans and leases include $30.4 million and $31.1 million of Community Reinvestment Act loans which are taxed at a reduced rate for the 2017 and 2016 nine-month periods, respectively. |
5. | 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. |
6. | Net interest margin represents annualized net interest income as a percentage of average interest-earning assets. |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||||
March 31, 2017 | March 31, 2017 | ||||||||||||||||||||||||||||||
2017 vs 2016 | 2017 vs 2016 | ||||||||||||||||||||||||||||||
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 and leases | $ | 15,131 | $ | 5,950 | $ | 1,199 | $ | 22,280 | $ | 47,125 | $ | 5,346 | $ | 1,072 | $ | 53,543 | |||||||||||||||
Interest-earning deposits in other financial institutions | 102 | 918 | 95 | 1,115 | 402 | 1,146 | 315 | 1,863 | |||||||||||||||||||||||
Mortgage-backed and other investment securities | (918 | ) | 137 | (23 | ) | (804 | ) | 239 | 479 | 7 | 725 | ||||||||||||||||||||
Stock of the FHLB, at cost | (210 | ) | 366 | (67 | ) | 89 | (716 | ) | 2,245 | (363 | ) | 1,166 | |||||||||||||||||||
$ | 14,105 | $ | 7,371 | $ | 1,204 | $ | 22,680 | $ | 47,050 | $ | 9,216 | $ | 1,031 | $ | 57,297 | ||||||||||||||||
Increase/(decrease) in interest expense: | |||||||||||||||||||||||||||||||
Interest-bearing demand and savings | $ | 2,371 | $ | (88 | ) | $ | (31 | ) | $ | 2,252 | $ | 5,897 | $ | 1,287 | $ | 285 | $ | 7,469 | |||||||||||||
Time deposits | 213 | 636 | 38 | 887 | 2,920 | 1,266 | 277 | 4,463 | |||||||||||||||||||||||
Securities sold under agreements to repurchase | — | (2 | ) | — | (2 | ) | — | (26 | ) | 1 | (25 | ) | |||||||||||||||||||
Advances from the FHLB | (333 | ) | 280 | (26 | ) | (79 | ) | (1,913 | ) | 2,614 | (589 | ) | 112 | ||||||||||||||||||
Subordinated notes and debentures and other | 557 | 23 | 41 | 621 | 1,749 | 122 | 564 | 2,435 | |||||||||||||||||||||||
$ | 2,808 | $ | 849 | $ | 22 | $ | 3,679 | $ | 8,653 | $ | 5,263 | $ | 538 | $ | 14,454 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | Inc (Dec) | 2017 | 2016 | Inc (Dec) | |||||||||||||||||
Realized gain on securities: | |||||||||||||||||||||||
Sale of securities | $ | 312 | $ | (14 | ) | $ | 326 | $ | 2,924 | $ | 919 | $ | 2,005 | ||||||||||
Total realized gain on securities | 312 | (14 | ) | 326 | 2,924 | 919 | 2,005 | ||||||||||||||||
Other-than-temporary loss on securities: | |||||||||||||||||||||||
Total impairment losses | $ | (754 | ) | $ | (1,006 | ) | $ | 252 | $ | (8,981 | ) | $ | (2,785 | ) | $ | (6,196 | ) | ||||||
Loss recognized in other comprehensive loss | 386 | 998 | (612 | ) | 7,143 | 2,636 | 4,507 | ||||||||||||||||
Net impairment loss recognized in earnings | (368 | ) | (8 | ) | (360 | ) | (1,838 | ) | (149 | ) | (1,689 | ) | |||||||||||
Fair value gain on trading securities | 270 | (117 | ) | 387 | 837 | (243 | ) | 1,080 | |||||||||||||||
Total unrealized loss on securities | (98 | ) | (125 | ) | 27 | (1,001 | ) | (392 | ) | (609 | ) | ||||||||||||
Prepayment penalty fee income | 1,682 | 563 | 1,119 | 3,617 | 2,177 | 1,440 | |||||||||||||||||
Gain on sale – other | 341 | 1,101 | (760 | ) | 4,068 | 10,348 | (6,280 | ) | |||||||||||||||
Mortgage banking income | 1,430 | 3,459 | (2,029 | ) | 11,400 | 8,246 | 3,154 | ||||||||||||||||
Banking service fees and other income | 19,501 | 18,332 | 1,169 | 33,593 | 28,027 | 5,566 | |||||||||||||||||
Total non-interest income | $ | 23,168 | $ | 23,316 | $ | (148 | ) | $ | 54,601 | $ | 49,325 | $ | 5,276 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | Inc (Dec) | 2017 | 2016 | Inc (Dec) | |||||||||||||||||
Salaries and related costs | $ | 21,268 | $ | 17,000 | $ | 4,268 | $ | 60,608 | $ | 47,762 | $ | 12,846 | |||||||||||
Professional services | 1,023 | 1,033 | (10 | ) | 3,463 | 2,666 | 797 | ||||||||||||||||
Occupancy and equipment | 1,461 | 1,169 | 292 | 4,100 | 3,016 | 1,084 | |||||||||||||||||
Data processing and internet | 3,298 | 3,225 | 73 | 9,411 | 7,404 | 2,007 | |||||||||||||||||
Advertising and promotional | 2,148 | 1,406 | 742 | 6,670 | 4,631 | 2,039 | |||||||||||||||||
Depreciation and amortization | 1,552 | 1,310 | 242 | 4,316 | 3,316 | 1,000 | |||||||||||||||||
Real estate owned and repossessed vehicles | (2 | ) | 5 | (7 | ) | 503 | (45 | ) | 548 | ||||||||||||||
FDIC and regulator fees | 1,265 | 1,217 | 48 | 3,390 | 3,389 | 1 | |||||||||||||||||
Other general and administrative | 3,435 | 3,043 | 392 | 9,165 | 7,632 | 1,533 | |||||||||||||||||
Total non-interest expenses | $ | 35,448 | $ | 29,408 | $ | 6,040 | $ | 101,626 | $ | 79,771 | $ | 21,855 |
March 31, 2017 | June 30, 2016 | ||||||||||||
(Dollars in thousands) | Amount | Percent | Amount | Percent | |||||||||
Single family real estate secured: | |||||||||||||
Mortgage | $ | 3,809,703 | 53.7 | % | $ | 3,678,520 | 57.5 | % | |||||
Home equity | 2,630 | — | % | 2,470 | — | % | |||||||
Warehouse and other | 391,010 | 5.5 | % | 537,714 | 8.4 | % | |||||||
Multifamily real estate secured | 1,572,994 | 22.2 | % | 1,373,216 | 21.5 | % | |||||||
Commercial real estate secured | 155,621 | 2.2 | % | 121,746 | 1.9 | % | |||||||
Auto and RV secured | 131,063 | 1.9 | % | 73,676 | 1.2 | % | |||||||
Factoring | 151,319 | 2.1 | % | 98,275 | 1.5 | % | |||||||
Commercial & Industrial | 868,279 | 12.2 | % | 514,300 | 8.0 | % | |||||||
Other | 13,139 | 0.2 | % | 2,542 | — | % | |||||||
Total gross loans and leases | 7,095,758 | 100.0 | % | 6,402,459 | 100.0 | % | |||||||
Allowance for loan and lease losses | (45,987 | ) | (35,826 | ) | |||||||||
Unaccreted discounts and loan and lease fees | (29,071 | ) | (11,954 | ) | |||||||||
Total net loans and leases | $ | 7,020,700 | $ | 6,354,679 |
(Dollars in thousands) | March 31, 2017 | June 30, 2016 | Inc (Dec) | ||||||||
Non-performing assets: | |||||||||||
Non-accrual loans and leases: | |||||||||||
Single family real estate secured: | |||||||||||
Mortgage | $ | 28,418 | $ | 28,400 | $ | 18 | |||||
Home equity | 44 | 33 | 11 | ||||||||
Multifamily real estate secured | 4,363 | 2,218 | 2,145 | ||||||||
Commercial real estate secured | — | 254 | (254 | ) | |||||||
Total non-performing loans secured by real estate | 32,825 | 30,905 | 1,920 | ||||||||
Auto and RV secured | 198 | 278 | (80 | ) | |||||||
Other | 278 | 676 | (398 | ) | |||||||
Total non-performing loans and leases | 33,301 | 31,859 | 1,442 | ||||||||
Foreclosed real estate | 908 | 207 | 701 | ||||||||
Repossessed—Auto and RV | 73 | 45 | 28 | ||||||||
Total non-performing assets | $ | 34,282 | $ | 32,111 | $ | 2,171 | |||||
Total non-performing loans and leases as a percentage of total loans and leases | 0.47 | % | 0.50 | % | (0.03 | )% | |||||
Total non-performing assets as a percentage of total assets | 0.39 | % | 0.42 | % | (0.03 | )% |
(Dollars in thousands) | March 31, 2017 | June 30, 2016 | |||||
Non-performing loans and leases—90+ days past due plus other non-accrual loans and leases | $ | 31,640 | $ | 28,790 | |||
Troubled debt restructuring loans—non-accrual | 1,661 | 3,069 | |||||
Troubled debt restructuring loans—performing | — | 210 | |||||
Total impaired loans and leases | $ | 33,301 | $ | 32,069 |
March 31, 2017 | June 30, 2016 | ||||||||||||
(Dollars in thousands) | Amount of Allowance | Allocation as a % of Allowance | Amount of Allowance | Allocation as a % of Allowance | |||||||||
Single family real estate secured: | |||||||||||||
Mortgage | $ | 19,566 | 42.5 | % | $ | 18,666 | 52.1 | % | |||||
Home equity | 23 | 0.1 | % | 23 | — | % | |||||||
Warehouse and other | 2,133 | 4.6 | % | 2,685 | 7.5 | % | |||||||
Multifamily real estate secured | 4,381 | 9.5 | % | 3,938 | 11.0 | % | |||||||
Commercial real estate secured | 989 | 2.2 | % | 882 | 2.5 | % | |||||||
Auto and RV secured | 2,145 | 4.7 | % | 1,615 | 4.5 | % | |||||||
Factoring | 379 | 0.8 | % | 245 | 0.7 | % | |||||||
Commercial & Industrial | 9,493 | 20.6 | % | 7,630 | 21.3 | % | |||||||
Other | 6,878 | 15.0 | % | 142 | 0.4 | % | |||||||
Total | $ | 45,987 | 100.0 | % | $ | 35,826 | 100.0 | % |
March 31, 2017 | June 30, 2016 | ||||||||||||
(Dollars in thousands) | Amount | Rate1 | Amount | Rate1 | |||||||||
Non-interest bearing | $ | 1,165,106 | — | % | $ | 588,774 | — | % | |||||
Interest-bearing: | |||||||||||||
Demand | 2,384,374 | 0.71 | % | 1,916,525 | 0.63 | % | |||||||
Savings | 2,441,311 | 0.75 | % | 2,484,994 | 0.69 | % | |||||||
Total interest-bearing demand and savings | 4,825,685 | 0.73 | % | 4,401,519 | 0.66 | % | |||||||
Time deposits: | |||||||||||||
Under $100,000 | 38,870 | 1.22 | % | 51,849 | 1.23 | % | |||||||
$100,000 or more2 | 769,970 | 2.37 | % | 1,001,909 | 1.99 | % | |||||||
Total time deposits | 808,840 | 2.32 | % | 1,053,758 | 1.96 | % | |||||||
Total interest bearing2 | 5,634,525 | 0.96 | % | 5,455,277 | 0.91 | % | |||||||
Total deposits | $ | 6,799,631 | 0.79 | % | $ | 6,044,051 | 0.82 | % |
March 31, 2017 | June 30, 2016 | March 31, 2016 | |||||
Non-interest bearing, prepaid and other | 3,798,888 | 1,816,266 | 2,906,979 | ||||
Checking and savings accounts | 277,182 | 292,012 | 293,558 | ||||
Time deposits | 2,941 | 4,807 | 4,718 | ||||
Total number of deposit accounts | 4,079,011 | 2,113,085 | 3,205,255 |
March 31, 2017 | June 30, 2016 | March 31, 2016 | |||||||||||||||||||
(Dollars in thousands) | Balance | Weighted Average Rate | Balance | Weighted Average Rate | Balance | Weighted Average Rate | |||||||||||||||
Repurchase agreements | $ | 35,000 | 4.38 | % | $ | 35,000 | 4.38 | % | $ | 35,000 | 4.38 | % | |||||||||
FHLB Advances | 961,000 | 1.42 | % | 727,000 | 1.53 | % | 858,000 | 1.41 | % | ||||||||||||
Subordinated notes and debentures and other | 54,450 | 6.35 | % | 56,016 | 6.27 | % | 56,155 | 5.95 | % | ||||||||||||
Total borrowings | $ | 1,050,450 | 1.78 | % | $ | 818,016 | 1.99 | % | $ | 949,155 | 1.79 | % | |||||||||
Weighted average cost of borrowings during the quarter | 1.98 | % | 2.01 | % | 1.62 | % | |||||||||||||||
Borrowings as a percent of total assets | 12.1 | % | 10.8 | % | 12.3 | % |
For the Nine Months Ended | |||||||
March 31, | |||||||
(Dollars in thousands) | 2017 | 2016 | |||||
Operating Activities | $ | 168,896 | $ | 103,173 | |||
Investing Activities | $ | (566,346 | ) | $ | (1,206,162 | ) | |
Financing Activities | $ | 989,480 | $ | 1,775,669 |
As of March 31, 2017 | |||||||||||||||||||
Payments Due by Period1 | |||||||||||||||||||
(Dollars in thousands) | Total | Less Than One Year | One To Three Years | Three To Five Years | More Than Five Years | ||||||||||||||
Long-term debt obligations2 | $ | 1,114,986 | $ | 618,936 | $ | 211,597 | $ | 113,080 | $ | 171,373 | |||||||||
Time deposits2 | 922,784 | 203,547 | 92,074 | 105,974 | 521,189 | ||||||||||||||
Operating lease obligations3 | 17,398 | 4,368 | 9,208 | 2,517 | 1,305 | ||||||||||||||
Total | $ | 2,055,168 | $ | 826,851 | $ | 312,879 | $ | 221,571 | $ | 693,867 |
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, 2017. |
2. | Amounts include principal and interest due to recipient. |
3. | Payments are for leases of real property. |
BofI Holding, Inc. | BofI Federal Bank | “Well Capitalized” Ratio | Minimum Capital Ratio | ||||||||||||||||||
(Dollars in thousands) | March 31, 2017 | June 30, 2016 | March 31, 2017 | June 30, 2016 | |||||||||||||||||
Regulatory Capital: | |||||||||||||||||||||
Tier 1 | $ | 801,465 | $ | 690,893 | $ | 770,450 | $ | 664,427 | |||||||||||||
Common equity tier 1 | $ | 796,402 | $ | 685,830 | $ | 770,450 | $ | 664,427 | |||||||||||||
Total capital (to risk-weighted assets) | $ | 895,113 | $ | 777,834 | $ | 813,098 | $ | 700,368 | |||||||||||||
Assets: | |||||||||||||||||||||
Average adjusted | $ | 8,465,520 | $ | 7,575,526 | $ | 8,459,677 | $ | 7,566,865 | |||||||||||||
Total risk-weighted | $ | 5,492,337 | $ | 4,755,242 | $ | 5,486,165 | $ | 4,747,496 | |||||||||||||
Regulatory Capital Ratios: | |||||||||||||||||||||
Tier 1 leverage (core) capital to adjusted average assets | 9.47 | % | 9.12 | % | 9.11 | % | 8.78 | % | 5.00 | % | 4.00 | % | |||||||||
Common equity tier 1 capital (to risk-weighted assets) | 14.50 | % | 14.42 | % | 14.04 | % | 14.00 | % | 6.50 | % | 4.50 | % | |||||||||
Tier 1 capital (to risk-weighted assets) | 14.59 | % | 14.53 | % | 14.04 | % | 14.00 | % | 8.00 | % | 6.00 | % | |||||||||
Total capital (to risk-weighted assets) | 16.36 | % | 16.36 | % | 14.88 | % | 14.75 | % | 10.00 | % | 8.00 | % |
Term to Repricing, Repayment, or Maturity at | |||||||||||||||||||
March 31, 2017 | |||||||||||||||||||
(Dollars in thousands) | Six Months or Less | Over Six Months Through One Year | Over One Year Through Five Years | Over Five Years | Total | ||||||||||||||
Interest-earning assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 1,078,757 | $ | — | $ | — | $ | — | $ | 1,078,757 | |||||||||
Securities1 | 355,896 | 2,889 | 10,978 | 6,887 | 376,650 | ||||||||||||||
Stock of the FHLB, at cost | 55,863 | — | — | — | 55,863 | ||||||||||||||
Loans and leases—net of allowance for loan loss | 2,309,026 | 944,002 | 3,682,199 | 85,473 | 7,020,700 | ||||||||||||||
Loans held for sale | 22,303 | — | — | — | 22,303 | ||||||||||||||
Total interest-earning assets | 3,821,845 | 946,891 | 3,693,177 | 92,360 | 8,554,273 | ||||||||||||||
Non-interest earning assets | — | — | — | — | 145,758 | ||||||||||||||
Total assets | $ | 3,821,845 | $ | 946,891 | $ | 3,693,177 | $ | 92,360 | $ | 8,700,031 | |||||||||
Interest-bearing liabilities: | |||||||||||||||||||
Interest-bearing deposits | $ | 232,854 | $ | 4,786,811 | $ | 132,543 | $ | 482,317 | $ | 5,634,525 | |||||||||
Securities sold under agreements to repurchase | 25,000 | 10,000 | — | — | 35,000 | ||||||||||||||
Advances from the FHLB | 561,000 | 10,000 | 297,500 | 92,500 | 961,000 | ||||||||||||||
Subordinated notes and debentures and other | 5,264 | — | — | 49,187 | 54,451 | ||||||||||||||
Total interest-bearing liabilities | 824,118 | 4,806,811 | 430,043 | 624,004 | 6,684,976 | ||||||||||||||
Other non-interest-bearing liabilities | — | — | — | — | 1,214,751 | ||||||||||||||
Stockholders’ equity | — | — | — | — | 800,304 | ||||||||||||||
Total liabilities and equity | $ | 824,118 | $ | 4,806,811 | $ | 430,043 | $ | 624,004 | $ | 8,700,031 | |||||||||
Net interest rate sensitivity gap | $ | 2,997,727 | $ | (3,859,920 | ) | $ | 3,263,134 | $ | (531,644 | ) | $ | 1,869,297 | |||||||
Cumulative gap | $ | 2,997,727 | $ | (862,193 | ) | $ | 2,400,941 | $ | 1,869,297 | $ | 1,869,297 | ||||||||
Net interest rate sensitivity gap—as a % of total interest earning assets | 35.04 | % | (45.12 | )% | 38.15 | % | (6.21 | )% | 21.85 | % | |||||||||
Cumulative gap—as % of total interest earning assets | 35.04 | % | (10.08 | )% | 28.07 | % | 21.85 | % | 21.85 | % |
1. | Comprised of agency and non-agency mortgage-backed securities, municipal securities and other non-agency debt securities, which are classified as available-for-sale and trading. |
As of March 31, 2017 | |||||||||||||
First 12 Months | Next 12 Months | ||||||||||||
(Dollars in thousands) | Net Interest Income | Percentage Change from Base | Net Interest Income | Percentage Change from Base | |||||||||
Up 200 basis points | $ | 364,912 | 10.4 | % | $ | 362,225 | 11.4 | % | |||||
Base | $ | 330,625 | — | % | $ | 325,096 | — | % | |||||
Down 200 basis points | $ | 285,652 | (13.6 | )% | $ | 261,196 | (19.7 | )% |
As of March 31, 2017 | |||||||||
(Dollars in thousands) | Net Present Value | Percentage Change from Base | Net Present Value as a Percentage of Assets | ||||||
Up 300 basis points | $ | 1,048,418 | 6.0 | % | 12.4 | % | |||
Up 200 basis points | $ | 1,055,288 | 6.6 | % | 12.3 | % | |||
Up 100 basis points | $ | 1,043,459 | 5.5 | % | 11.9 | % | |||
Base | $ | 989,525 | — | % | 11.2 | % | |||
Down 100 basis points | $ | 862,015 | (12.9 | )% | 9.7 | % |
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 |
(Dollars in thousands, except per share data) | Number of Shares Purchased | Average Price Paid Per Shares | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar value of Shares that May Yet be Purchased Under the Plans or Programs | |||||||||
Stock Repurchases | |||||||||||||
Quarter Ended March 31, 2017 | |||||||||||||
January 1, 2017 to March 31, 2017 | — | $ | — | — | $ | 100,000 | |||||||
For the Three Months Ended March 31, 2017 | — | $ | — | — | $ | 100,000 | |||||||
Stock Retained in Net Settlement | |||||||||||||
January 1, 2017 to January 31, 2017 | 5,931 | ||||||||||||
February 1, 2017 to February 28, 2017 | 116 | ||||||||||||
March 1, 2017 to March 31, 2017 | 17 | ||||||||||||
For the Three Months Ended March 31, 2017 | 6,064 |
ITEM 6. | EXHIBITS |
Exhibit Number | Description | Incorporated By Reference to | |
31.1 | Chief Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith. | |
31.2 | Chief Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith. | |
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 | Filed herewith. | |
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 | Filed herewith. | |
101.INS | XBRL Instance Document | Filed herewith. | |
101.SCH | XBRL Taxonomy Extension Schema Document | Filed herewith. | |
101.CAL | XBRL Taxonomy Calculation Linkbase Document | Filed herewith. | |
101.LAB | XBRL Taxonomy Label Linkbase Document | Filed herewith. | |
101.PRE | XBRL Taxonomy Presentation Linkbase Document | Filed herewith. | |
101.DEF | XBRL Taxonomy Definition Document | Filed herewith. | |
BofI Holding, Inc. | |||||
Dated: | April 25, 2017 | By: | /s/ Gregory Garrabrants | ||
Gregory Garrabrants President and Chief Executive Officer (Principal Executive Officer) | |||||
Dated: | April 25, 2017 | 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 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: | April 25, 2017 | /s/ GREGORY GARRABRANTS | ||
GREGORY GARRABRANTS President and Chief Executive Officer (Principal 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 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: | April 25, 2017 | /s/ ANDREW J. MICHELETTI | ||
ANDREW J. MICHELETTI Executive Vice President and Chief Financial Officer (Principal Financial 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: | April 25, 2017 | /s/ GREGORY GARRABRANTS | ||
GREGORY GARRABRANTS President and Chief Executive Officer (Principal 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: | April 25, 2017 | /s/ ANDREW J. MICHELETTI | ||
ANDREW J. MICHELETTI Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
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DOCUMENT AND ENTITY INFORMATION - shares |
9 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Apr. 19, 2017 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | BofI Holding, Inc. | |
Entity Central Index Key | 0001299709 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 63,390,415 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net unrealized gain (loss) from available-for-sale securities, tax expense (benefit) | $ 1,309 | $ (287) | $ 3,075 | $ (861) |
Other-than-temporary impairment on held-to-maturity securities recognized in other comprehensive income, tax expense (benefit) | (166) | 832 | 2,678 | 2,114 |
Reclassification of net (gain) loss from available-for-sale securities included in income, tax expense (benefit) | $ 134 | $ (6) | $ 1,239 | $ 380 |
BASIS OF PRESENTATION |
9 Months Ended |
---|---|
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The condensed consolidated financial statements include the accounts of BofI Holding, Inc. and its wholly owned subsidiary, BofI Federal Bank (the “Bank” and collectively with BofI Holding, Inc., the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying interim condensed consolidated financial statements, presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), are unaudited and reflect all adjustments which, in the opinion of management, are necessary for a fair statement of financial condition and results of operations for the interim periods. All adjustments are of a normal and recurring nature. Results for the nine months ended March 31, 2017 are not necessarily indicative of results that may be expected for any other interim period or for the year as a whole. Certain information and note disclosures normally included in the audited annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) with respect to interim financial reporting. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended June 30, 2016 included in our Annual Report on Form 10-K. |
SIGNIFICANT ACCOUNTING POLICIES |
9 Months Ended |
---|---|
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Securities. Debt securities are classified as held-to-maturity and carried at amortized cost when management has both the positive intent and ability to hold them to maturity. Debt securities are classified as available-for-sale when they might be sold before maturity. Trading securities refer to certain types of assets that banks hold for resale at a profit or when the Company elects to account for certain securities at fair value. Increases or decreases in the fair value of trading securities are recognized in earnings as they occur. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. During the quarter ended September 30, 2016, the Company elected to reclassify all of its held-to-maturity securities to available-for-sale. See Note 4 – “Securities” for further information. Gains and losses on securities sales are based on a comparison of sales proceeds and the amortized cost of the security sold using the specific identification method. Purchases and sales are recognized on the trade date. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are amortized or accreted using the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. The Company’s portfolios of held-to-maturity and available-for-sale securities are reviewed quarterly for other-than-temporary impairment. In performing this review, management considers (1) the length of time and extent that fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) the impact of changes in market interest rates on the market value of the security and (4) how to record an impairment by assessing whether the Company intends to sell or it is more likely than not that it will be required to sell a security in an unrealized loss position before the Company recovers the security’s amortized cost. If either of these criteria for (4) is met, the entire difference between amortized cost and fair value is recognized in earnings. Alternatively, if the criteria for (4) is not met, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Loans and Leases. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, deferred purchase premiums and discounts, deferred loan origination fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Premiums and discounts on loans purchased as well as loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method. The Company provides equipment financing to its customers through a variety of lease arrangements. The most common arrangement is a direct financing (capital) lease. For direct financing leases, lease receivables are recorded on the balance sheet but the leased property is not, although the Company generally retains legal title to the leased property until the end of each lease. Direct financing leases are stated at the net amount of minimum lease payments receivable, plus any unguaranteed residual value, less the amount of unearned income and net acquisition discount at the reporting date. Direct lease origination costs are amortized over the weighted average life of the lease portfolio. Leases acquired in an acquisition are initially measured and recorded at their fair value on the acquisition date. Purchase discounts or premiums on acquired leases are recognized as an adjustment to interest income over the contractual life of the leases using the effective interest method or taken into income when the related leases are paid off. Direct financing leases are subject to our allowance for loans and leases. Recognition of interest income on all portfolio segments is generally discontinued at the time the loan or lease is 90 days delinquent unless the loan or lease is well secured and in process of collection. Past due status is based on the contractual terms of the loan or lease. In all cases, loans or leases are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for loans or leases placed on nonaccrual, is reversed against interest income. Interest received on such loans or leases is accounted for on the cash-basis or cost recovery method, until qualifying for return to accrual. Loans and leases are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loans Held for Sale. U.S government agency (“agency”) loans originated and intended for sale in the secondary market are carried at fair value. Net unrealized gains and losses are recognized through the income statement. The Bank sells its mortgage loans with either servicing released or servicing retained depending upon market pricing. Gains and losses on loan sales are recorded as mortgage banking income, based on the difference between sales proceeds and carrying value. Non-agency loans held for sale are carried at the lower of cost or fair value. Loans that were originated with the intent and ability to hold for the foreseeable future (loans held in portfolio) but which have been subsequently designated as being held for sale for risk management or liquidity needs are carried at the lower of cost or fair value calculated on an individual loan by loan basis. There may be times when loans have been classified as held for sale and for some reason cannot be sold. Loans transferred to a long-term-investment classification from held-for-sale are transferred at the lower of cost or market value on the transfer date. Any difference between the carrying amount of the loan and its outstanding principal balance is recognized as an adjustment to yield by the interest method. A loan cannot be classified as a long-term investment unless the Bank has both the ability and the intent to hold the loan for the foreseeable future or until maturity. Allowance for Loan and Lease Losses. The allowance for loan and lease losses is maintained at a level estimated to provide for probable incurred losses in the loan and lease portfolio. Management determines the adequacy of the allowance based on reviews of individual loans and leases and pools of loans, recent loss experience, current economic conditions, the risk characteristics of the various categories of loans and other pertinent factors. This evaluation is inherently subjective and requires estimates that are susceptible to significant revision as more information becomes available. The allowance is increased by the provision for loan and lease losses, which is charged against current period operating results and recoveries of loans previously charged-off. The allowance is decreased by the amount of charge-offs of loans deemed uncollectible. Allocations of the allowance may be made for specific loans but the entire allowance is available for any loan that, in management’s judgment, should be charged off. See Note 5 of these financial statement footnotes and the financial statement footnotes for the year ended June 30, 2016 included in our Annual Report on Form 10-K for further information. Brand Partnership Products. The Bank has agreements with H&R Block, Inc. (“H&R Block”) and its wholly-owned subsidiaries that allow the Bank to provide H&R Block-branded financial products and services. The products and services that represent the primary focus and the majority of transactional volume that the Bank processes are described in detail below. The first product is Emerald Prepaid MasterCard® services. The Bank entered into agreements to offer this product in August 2015. Under the agreements, the Bank is responsible for the primary oversight and control of the prepaid card programs of a wholly-owned subsidiary of H&R Block. The Bank holds the prepaid card customer deposits for those cards issued under the prepaid programs in non-interest bearing accounts and earns a fixed fee paid by H&R Block’s subsidiary for each automated clearing house (“ACH”) transaction processed through the prepaid card customer accounts. A portion of H&R Block’s customers use the Emerald Card as an option to receive federal and state income tax refunds. The prepaid customer deposits are included in non-interest bearing deposit liabilities on the balance sheet of the Company and the ACH fee income is included in the income statement under the line banking service fees and other income. The second product is Refund Transfer. The Bank entered into agreements to offer this product in August 2015. The Bank is responsible for the primary oversight and control of the refund transfer program of a wholly-owned subsidiary of H&R Block. The Bank opens a temporary bank account for each H&R Block customer who is receiving an income tax refund and elects to defer payment of his or her tax preparation fees. After the Internal Revenue Service and any state income tax authorities transfer the refund into the customer’s account, the net funds are transferred to the customer and the temporary deposit account is closed. The Bank earns a fixed fee paid by H&R Block for each of the H&R Block customers electing a Refund Transfer. The fees are earned primarily in the quarters ending March 31st and are included in the income statement under the line banking service fees and other income. The third product is Emerald Advance. The Bank entered into agreements to offer this product in August 2015. Under the agreements the Bank is responsible for the underwriting guidelines and credit policies for unsecured consumer lines of credit offered to H&R Block customers. The Bank offers and funds unsecured lines of credit to consumers primarily through the H&R Block tax preparation offices and earns interest income and fee income. The Bank retains 10% of the Emerald Advance and sells the remainder to H&R Block. The lines of credit are included in loans and leases on the balance sheet of the Company and the interest income and fee income are included in the income statement under the line loans and leases interest and dividend income. The fourth product is an Individual Retirement Account (“IRA”). The Bank entered into agreements to offer this product in August 2015, and the initial offering of this product through H&R Block offices occurred in conjunction with the tax season ending April 18, 2017. The Bank is responsible for the primary oversight and control of the IRA product. During a tax preparation session with an H&R Block tax preparer, the customer is given an option to open a traditional IRA or Roth IRA savings account with the Bank. If the customer elects the option to open an account and meets the Bank’s requirements, an account is opened on the Bank’s core operating system under the Bank’s oversight and control. The customer has the option to deposit funds for the IRA through check or ACH. The Bank provides IRA custodial services, earns a nominal fee paid by the customers for any account closures or transfers out, and pays customers interest based on their IRA balance. The fees are included in the income statement under the line banking service fees and other income and interest paid is included under the line deposit interest expense. The fifth product is an interest-free Refund Advance loan. The Bank entered into agreements to offer this product in October 2016. Under the agreements the Bank purchases the Refund Advance loans from a third-party bank at a discount. The Refund advance loans are interest-free loans to consumers and offered primarily through the H&R Block tax preparation offices. The Bank has a limited guarantee from H&R Block that reduces the Bank’s credit exposure on the Refund Advance loans. The Bank retains the Refund Advance loans that it purchases and includes the Refund Advance loans in loans and leases on the balance sheet of the Company and records the accretion of the loan discount as interest income, which is included in the income statement under the line interest and dividend income. New Accounting Pronouncements. In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) 2015-03 Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. Under the amended guidance, debt issuance costs related to a recognized debt liability are required to be presented as deductions from the carrying amounts of the corresponding debt liabilities, consistent with the presentation of debt discounts and premiums. The amended guidance was adopted for the quarter ended September 30, 2016 and applied retrospectively in accordance with the amended guidance, wherein the balance sheet of each individual period presented has been adjusted to reflect the period-specific effects of applying the amended guidance. The adoption of this guidance did not materially impact our consolidated financial position or consolidated results of operations. In March 2016, the FASB issued ASU 2016-09 Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09 ”), which simplifies several areas of accounting for share-based payment transactions, including tax provision, classification in the cash-flow statement, forfeitures, and statutory tax withholding requirements. The guidance will be effective for the Company’s financial statements for interim and annual periods beginning after December 15, 2016. The Company is currently evaluating the impact of this ASU, but the Company does not expect ASU 2016-09 to have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which (i) significantly changes the impairment model for most financial assets that are measured at amortized cost and certain other instruments from an incurred loss model to an expected loss model; and (ii) provides for recording credit losses on available-for-sale debt securities through an allowance account. ASU 2016-13 also requires certain incremental disclosures. ASU 2016-13 should be applied on a modified-retrospective transition approach that would require a cumulative-effect adjustment to the opening retained earnings in the statement of financial condition as of the date of adoption. A prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date. The guidance will be effective for the Company’s financial statements that include periods beginning July 1, 2020. Early adoption is permitted beginning July 1, 2019. The Company is currently evaluating the impact of this ASU and the Company expects ASU 2016-13 to have a material impact on the Company’s consolidated financial statements. |
FAIR VALUE |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE | 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. Accounting Standards Codification Topic 820, Fair Value Measurement, 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 and lease losses and the underlying bank’s capital ratios. Also a factor is the Company’s loan and lease loss experience in the local economy in which the bank operates. At March 31, 2017, the Company’s forecast of cash flows for both securities includes actual and forecasted defaults totaling 17.2% of all banks in the collateral pools, compared to 16.3% 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, 2017, the Company used a weighted average discount margin of 450 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 economic activity, the timing of forecasted defaults and the discount rate applied to cash flows. The fair value of the trading securities at March 31, 2017 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 $816. 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 $935. Securities—available-for-sale and held-to-maturity. Available-for-sale (“AFS”) securities are recorded at fair value and consist of residential mortgage-backed securities (“RMBS”) issued by U.S. agencies, non-agencies, collateralized loan obligations, and municipals. Held-to-maturity (“HTM”) securities are recorded at amortized cost and consist of RMBS issued by U.S. agencies, RMBS issued by non-agencies, and municipals. 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. For each security, the Company inputs a projection of monthly default rates, loss severity rates and voluntary prepayment rates for the underlying mortgages for the remaining life of each 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 factors influencing the Company’s modeling of the monthly default rate are unemployment and HPA, as a strong correlation exists. The national unemployment rate announced prior to the end of the period covered by this report (reported for March 2017) was 4.5%, down from the high of 10.0% in October 2009. 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, 2017 are from 40.0% up to 69.1% 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 lower FICO and 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, 2017 are from 1.5% up to 18.2% 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, 2017, the Company computed its discount rates as a spread between 266 and 686 basis points over the interpolated swap 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. The Bank’s estimate of fair value for non-agency securities using Level 3 pricing is highly subjective and is based on the Bank’s estimate of voluntary prepayments, default rates, severities and discount margins, which are forecasted monthly over the remaining life of the security. Changes in one or more of these assumptions can cause a significant change in the estimated fair value. For further details see the table later in this note that summarizes quantitative information about Level 3 fair value measurements. Loans Held for Sale. Loans held for sale at fair value are primarily single-family and multifamily residential loans. The fair value of residential 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 the collateral pledged. The accrual of interest income has been discontinued for impaired loans. The impaired loans are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. The Company assesses loans individually and identifies impairment when the loan is classified as impaired, has 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 losses are generally based on recent real estate appraisals or internal valuation analyses consistent with the methodology used in real estate appraisals and include other third-party valuations and analysis of cash flows. These appraisals and analyses are updated at least on an annual basis. The Company primarily obtains real estate appraisals and in the rare cases where an appraisal cannot be obtained, the Company performs an internal valuation analysis. These appraisals and analyses may utilize a single valuation approach or a combination of approaches including comparable sales and income approaches. The sales comparison approach uses at least three recent similar property sales to help determine the fair value of the property being appraised. The income approach is calculated by taking the net operating income generated by the collateral property of the rent collected and dividing it by an assumed capitalization rate. Adjustments are routinely made in the process by the appraisers to account for differences between the comparable sales and income data available. When measuring the fair value of the impaired loan based upon the projected sale of the underlying collateral, the Company subtracts the costs expected to be incurred for the transfer of the underlying collateral, which includes items such as sales commissions, delinquent taxes and insurance premiums. 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 and Repossessed Vehicles. Non-recurring 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 estimated 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 Servicing Rights. The Company initially records all mortgage servicing rights (“MSRs”) at fair value and accounts for MSRs at fair value during the life of the MSR, with changes in fair value recorded through current period earnings. Fair value adjustments encompass market-driven valuation changes as well as modeled amortization involving the run-off of value that occurs due to the passage of time as individual loans are paid by borrowers. Market expectations about loan duration, and correspondingly the expected term of future servicing cash flows, may vary from time to time due to changes in expected prepayment activity, especially when interest rates rise or fall. Market expectations of increased loan prepayment speeds may negatively impact the fair value of the single family MSRs. Fair value is also dependent on the discount rate used in calculating present value, which is imputed from observable market activity and market participants and results in Level 3 classification. Management reviews and adjusts the discount rate on an ongoing basis. An increase in the discount rate would reduce the estimated fair value of the MSRs asset. Mortgage Banking Derivatives. Fair value 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, 2017 and June 30, 2016. 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 tables present 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 trading assets and liabilities that are still held at the periods indicated:
The table below summarizes assets measured for impairment on a non-recurring basis:
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 $33,301, after charge-offs of $1,072 for the nine months ended March 31, 2017, life to date charge-offs of $3,447, life to date interest payments applied to principal of $1,070 for total life to date principal balance adjustments of $4,517. Impaired loans had a related allowance of $651 at March 31, 2017. Other real estate owned and foreclosed assets, which are measured at the lower of carrying value or fair value less costs to sell, had a net carrying amount of $981 after charge-offs of $0 for the three months ended March 31, 2017. There were no held-to-maturity securities at March 31, 2017. The Company recognized net impairment charges to income of $102 and an increase in other comprehensive income of $4,351 for the nine months ended March 31, 2016. These held-to-maturity securities are valued using Level 3 inputs. The Company has elected the fair value option for Agency loans held for sale. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loan. None of these loans are 90 days or more past due nor on nonaccrual as of March 31, 2017 and June 30, 2016. As of March 31, 2017 and June 30, 2016, the aggregate fair value, contractual balance (including accrued interest), and unrealized gain was as follows:
The total amount of unrealized gains and losses from changes in fair value included in earnings for the period indicated below for loans held for sale were:
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:
_______________________ 1 For impaired loans, other real estate owned and foreclosed assets 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.
_______________________ 1 For impaired loans, other real estate owned and foreclosed assets 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. Fair value of Financial Instruments The carrying amounts and estimated fair values of financial instruments at March 31, 2017 and June 30, 2016 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, deposits, borrowings or subordinated debt and for variable rate loans, deposits, borrowings or subordinated debt 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. A discussion of the methods of valuing trading securities, available for sale securities and loans held for sale can be found earlier in this footnote. The carrying amount of stock of the Federal Home Loan Bank (“FHLB”) approximates the estimated fair value of this investment. The fair value of off-balance sheet items is not considered material. |
SECURITIES |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SECURITIES | 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, 2017 and June 30, 2016 were:
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During the quarter ended September 30, 2016, the Company elected to reclassify all of its HTM securities to AFS. At the time of reclassification, while the Company had the ability to hold those transferred securities to maturity and did not intend to sell the securities, the Company concluded that there were sufficient uncertainties associated with i) future fiscal and monetary policy resulting from domestic and international political changes, ii) future interpretations and applications of new accounting principles and regulatory guidance; iii) the pace of future market interest rate increases given that market interest rates remain at historical lows, all of which could, depending upon the outcomes, change the Company’s intent to hold its securities. Under Accounting Standards Codification 320-10 Investments—Debt Securities, there are very limited exceptions that allow an entity to reclassify or sell one or more securities from HTM and still use the HTM classification for any remaining securities. The Company concluded that such exceptions may not apply to all results and elected to reclassify all HTM securities to AFS understanding that such reclassification immediately eliminated the Company’s ability to use the HTM classification for its securities portfolio for a period of time not to be less than one year. The Company will perform periodic assessments in the future to determine whether the above referenced uncertainties have been resolved and that management has the positive intent and ability to hold securities until maturity. The net carrying amount of the securities reclassified in September 2016 from HTM to AFS was $194,153 and the fair value of AFS securities at March 31, 2017 is reflected in the Unaudited Condensed Consolidated Balance Sheets. The reclassification resulted in an unrealized gain recognized through other comprehensive income of $3,618 in the Unaudited Condensed Consolidated Statements of Comprehensive Income. The Company’s non-agency RMBS available-for-sale portfolio with a total fair value of $78,055 at March 31, 2017 consists of thirty-nine different issues of super senior securities with a fair value of $77,217, two mezzanine z-tranche securities, negative-amortizing support tranches, with a fair value of $16 collateralized by seasoned prime and Alt-A first-lien mortgages and one senior support security that it acquired at a significant discount that evidenced credit deterioration at acquisition, with a fair value of $822. The Company acquired its mezzanine z-tranche securities in fiscal 2010 and accounts for them by measuring the excess of cash flows expected at acquisition over the purchase price (accretable yield) and recognizes interest income over the remaining life of the security. Debt securities with evidence of credit quality deterioration since issuance and for which it is probable at purchase that the Company will be unable to collect all of the par value of the security are accounted for under ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC Topic 310-30”). Under ASC Topic 310-30, the excess of cash flows expected at acquisition over the purchase price is referred to as the accretable yield and is recognized in interest income over the remaining life of the security. The Company has one senior support security that it acquired at a significant discount that evidenced credit deterioration at acquisition and is accounted for under ASC Topic 310-30. For a cost of $17,740 the Company acquired the senior support security with a contractual par value of $30,560 and accretable and non-accretable discounts that were projected to be $9,015 and $3,805, respectively. Since acquisition, repayments from the security have been received more rapidly than projected at acquisition, but expected total payments have declined, resulting in a determination that the security was other-than-temporarily impaired. The security had $1,461 other-than temporary loss for nine months ended March 31, 2017 and no charge was recorded for the fiscal 2016 year. At March 31, 2017 the security had a remaining contractual par value of zero dollars and amortizable and non-amortizable premium are currently projected to be zero dollars and $1,010, respectively. The current face amounts of debt securities available-for-sale and held-to-maturity that were pledged to secure borrowings at March 31, 2017 and June 30, 2016 were $17,668 and $39,961 respectively. 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:
There were 15 securities that were in a continuous loss position at March 31, 2017 for a period of more than 12 months. There were 26 securities that were in a continuous loss position at June 30, 2016 for a period of more than 12 months. The following table summarizes amounts of credit loss recognized in the income statement through other-than-temporary impairment charges which reduced non-interest income:
At March 31, 2017, non-agency RMBS with a total carrying amount of $48,486 were determined to have cumulative credit losses of $16,443 of which $368 was recognized in earnings during the three months ended March 31, 2017. This quarter’s other-than-temporary impairment of $368 is related to two non-agency RMBS with a total carrying amount of $3,636. The Company measures its non-agency RMBS in an unrecognized loss position at the end of the reporting period for other-than-temporary impairment by comparing the present value of the cash flows currently expected to be collected from the security with its amortized cost basis. If the calculated present value is lower than the amortized cost, the difference is the credit component of an other-than-temporary impairment of its debt securities. The excess of present value over the fair value of the security (if any) is the non-credit component only if the Company does not intend to sell the security and will not be required to sell the security before recovery of its amortized cost basis. The credit component of the other-than-temporary impairment is recorded as a loss in earnings and the non-credit component as a charge to other comprehensive income, net of the related income tax benefit. To determine the cash flow expected to be collected and to calculate the present value for purposes of testing for other-than-temporary impairment, the Company utilizes the same industry-standard tool and the same cash flows as those calculated for Level 3 fair values as discussed in Note 3 – Fair Value. The discount rates used to compute the present value of the expected cash flows for purposes of testing for the credit component of the other-than-temporary impairment are either the implicit rate calculated in each of the Company’s securities at acquisition or the last accounting yield. The Company calculates the implicit rate at acquisition based on the contractual terms of the security, considering scheduled payments (and minimum payments in the case of pay-option ARMs) without prepayment assumptions. Once the discount rate (or discount margin in the case of floating rate securities) is calculated as described above, the discount is used in the industry-standard model to calculate the present value of the cash flows. 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, 2017 were as follows:
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The Company had recorded unrealized gains and unrealized losses in accumulated other comprehensive loss as follows:
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, 2017 were:
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LOANS, LEASES & ALLOWANCE FOR LOANS AND LEASE LOSSES |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS, LEASES & ALLOWANCE FOR LOANS AND LEASE LOSSES | LOANS, LEASES & ALLOWANCE FOR LOAN AND LEASE LOSSES The following table sets forth the composition of the loan and lease portfolio as of the dates indicated:
Allowance for Loan and Lease Losses. We are committed to maintaining the allowance for loan and lease losses (sometimes referred to as the “allowance”) at a level that is considered to be commensurate with estimated probable incurred credit losses in the portfolio. Although the adequacy of the allowance is reviewed quarterly, management performs an ongoing assessment of the risks inherent in the portfolio. While the Company believes that the allowance for loan and lease losses is adequate at March 31, 2017, future additions to the allowance will be subject to continuing evaluation of estimated and known, as well as inherent risks in the loan and lease portfolio. Allowance for Loan and Lease Loss Disclosures. The assessment of the adequacy of the Company’s allowance for loan and lease losses is based upon a number of quantitative and qualitative factors, including levels and trends of past due and nonaccrual loans and leases, change in volume and mix of loans and leases, collateral values and charge-off history. The Company provides general loan loss reserves for its automobile (“auto”) and recreational vehicle (“RV”) loans based upon the borrower credit score and the Company’s loss experience to date. The allowance for loan loss for the auto and RV loan portfolio at March 31, 2017 was determined by classifying each outstanding loan according to semi-annually refreshed FICO score and providing loss rates. The Company had $130,865 of auto and RV loan balances subject to general reserves as follows: FICO greater than or equal to 770: $58,182; 715 – 769: $45,640; 700 – 714: $12,477; 660 – 699: $12,773 and less than 660: $1,793. The Company provides general loan loss reserves for mortgage loans based upon the size and class of the mortgage loan and the loan-to-value ratio (“LTV”) at date of origination. The Company divides the LTV analysis into two classes, separating the purchased loans from the loans underwritten directly by the Company. Based on historical performance, the Company concluded that originated loans require lower estimated loss rates than purchased loans. The allowance for each class is determined by dividing the outstanding unpaid balance for each loan by the loan-to-value and applying a loss rate. The LTV groupings for each significant mortgage class are as follows: The Company had $3,781,285 of single family mortgage portfolio loan balances subject to general reserves as follows: LTV less than or equal to 60%: $1,980,980; 61% – 70%: $1,383,158; 71% – 80%: $416,948; and greater than 80%: $199. The Company had $1,568,631 of multifamily mortgage portfolio loan balances subject to general reserves as follows: LTV less than or equal to 55%: $741,959; 56% – 65%: $518,964; 66% – 75%: $294,830; 76% – 80%: $12,878 and greater than 80%: $0. The Company had $155,621 of commercial real estate loan balances subject to general reserves as follows: LTV less than or equal to 50%: $65,385; 51% – 60%: $35,003; 61% – 70%: $44,933; and 71% – 80%: $10,300. The Company’s commercial secured portfolio consists of business loans well-collateralized by residential real estate. The Company’s other portfolio consists of receivables factoring for businesses and consumers. The Company allocates its allowance for loan loss for these asset types based on qualitative factors which consider the value of the collateral and the financial position of the issuer of the receivables. The following tables summarize activity in the allowance for loan and lease losses by portfolio classes for the periods indicated:
The following tables present our loans and leases evaluated individually for impairment by class:
The following tables present the balance in the allowance for loan and lease losses and the recorded investment in loans and leases by portfolio segment and based on impairment evaluation method:
________________ 1. Loans and leases evaluated for impairment include Troubled Debt Restructurings (“TDRs”) that have been performing for more than six months.
________________ 1. Loans and leases evaluated for impairment include TDRs that have been performing for more than six months. Credit Quality Disclosures. Non-performing loans and leases consisted of the following as of the dates indicated:
The Company has no loans and leases over 90 days delinquent that are still accruing interest at March 31, 2017. Approximately 85.34% of the Company’s non-performing loans and leases are single family first mortgages already written down to 52.60% in aggregate, of the original appraisal value of the underlying properties. The following tables present the outstanding unpaid balance of loans and leases that are performing and non-performing by portfolio class:
The Company divides loan balances when determining general loan loss reserves between purchases and originations as follows:
From time to time the Company modifies loan terms temporarily for borrowers who are experiencing financial stress. These loans are performing and accruing and will generally return to the original loan terms after the modification term expires. Approximately 4.99% of our non-performing loans and leases at March 31, 2017 were considered TDRs, compared to 9.63% at June 30, 2016. Borrowers that make timely payments after TDRs are considered non-performing for at least six months. Generally, after six months of timely payments, those TDRs are reclassified from the non-performing loan and lease category to the performing loan and lease category and any previously deferred interest income is recognized. The Company classifies these loans as performing loans temporarily modified as TDR and are included in impaired loans and leases as follows:
The Company recognizes interest on performing loans temporarily modified as TDR, which is shown in conjunction with average balances as follows:
The Company’s loan modifications primarily included single family, multifamily and commercial loans of which included one or a combination of the following: a reduction of the stated interest rate or delinquent property taxes that were paid by the Bank and either repaid by the borrower over a one year period or capitalized and amortized over the remaining life of the loan. The Company’s loan modifications also included RV loans in which borrowers were able to make interest-only payments for a period of six months to one year which then reverted back to fully amortizing. Credit Quality Indicators The Company categorizes loans and leases into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans and leases individually by classifying the loans and leases based on credit risk. The Company uses the following definitions for risk ratings. Pass. Loans and leases classified as pass are well protected by the current net worth and paying capacity of the obligor or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner. Special Mention. Loans and leases classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease or of the institution’s credit position at some future date. Substandard. Loans and leases classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans and leases so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans and leases classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The Company reviews and grades loans and leases following a continuous review process, featuring coverage of all loan and lease types and business lines at least quarterly. Continuous reviewing provides more effective risk monitoring because it immediately tests for potential impacts caused by changes in personnel, policy, products or underwriting standards. The following table presents the composition of the Company’s loan and lease portfolio by credit quality indicators:
The Company considers the performance of the loan and lease portfolio and its impact on the allowance for loan and lease losses. The Company also evaluates credit quality based on the aging status of its loans and leases. The Company has certain short-term loans that do not have a fixed maturity date that are treated as delinquent if not paid in full 90 days after the origination date. The following table provides the outstanding unpaid balance of loans and leases that are past due 30 days or more by portfolio class as of the period indicated:
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SUBORDINATED NOTES AND DEBENTURES |
9 Months Ended |
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Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
SUBORDINATED NOTES AND DEBENTURES | SUBORDINATED NOTES AND DEBENTURES Subordinated Notes. In March 2016, the Company completed the sale of $51,000 aggregate principal amount of its 6.25% Subordinated Notes due February 28, 2026 (the “Notes”). The Company received $51,000 in gross proceeds as a part of this transaction, before the 3.15% underwriting discount and other offering expenses. The Notes mature on February 28, 2026 and accrue interest at a rate of 6.25% per annum, with interest payable quarterly. The Notes may be redeemed on or after March 31, 2021, which date may be extended at the Company’s discretion, at a redemption price equal to principal plus accrued and unpaid interest, subject to certain conditions. Subordinated Debentures. On December 13, 2004, the Company entered into an agreement to form an unconsolidated trust which issued $5,000 of trust preferred securities in a transaction that closed on December 16, 2004. The net proceeds from the offering were used to purchase $5,155 of subordinated debentures (the “Debentures”) of the Company with a stated maturity date of February 23, 2035. The Debentures are the sole assets of the trust. The trust preferred securities are mandatorily redeemable upon maturity, or upon earlier redemption as provided in the indenture. The Company has the right to redeem the Debentures in whole, but not in part, on or after specific dates, at a redemption price specified in the indenture plus any accrued but unpaid interest through the redemption date. Interest accrues at the rate of 3 months LIBOR plus 2.4% for a rate of 3.45% as of March 31, 2017, with interest paid quarterly starting February 16, 2005. |
EQUITY AND STOCK-BASED COMPENSATION |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY AND STOCK-BASED COMPENSATION | EQUITY AND STOCK-BASED COMPENSATION On March 17, 2016, the Board of Directors of the Company, authorized a program to repurchase up to $100 million of common stock. The new share repurchase authorization replaces the previous share repurchase plan approved on July 5, 2005. The Company may repurchase shares on the open market or through privately negotiated transactions at times and prices considered appropriate, at the discretion of the Company, and subject to its assessment of alternative uses of capital, stock trading price, general market conditions and regulatory factors. The repurchase program does not obligate the Company to acquire any specific number of shares. The share repurchase program will continue in effect until terminated by the Board of Directors of the Company. The Company has two equity incentive plans, the 2014 Stock Incentive Plan (the “2014 Plan”) and the 2004 Stock Incentive Plan (the “2004 Plan” and collectively, the “Plans”), which provide for the granting of non-qualified and incentive stock options, restricted stock and restricted stock units, stock appreciation rights and other awards to employees, directors and consultants. The Plans are designed to encourage selected employees and directors to improve operations and increase profits, and to accept or continue employment or association with the Company through participation in the growth in the value of the common stock. The Plans require that option exercise prices be not less than fair market value per share of common stock on the option grant date for incentive and non-qualified options. The options issued under the Plans generally vest in between three and five years. Option expiration dates are established by the Plans’ administrator but may not be later than ten years after the date of the grant. 2004 Stock Incentive Plan. In October 2004, the Company’s Board of Directors and the stockholders approved the 2004 Plan. In November 2007, the 2004 Plan was amended and approved by the Company’s stockholders. With the stockholders approving the 2014 Plan in October 2014, no further awards will be made under the 2004 Plan and the 2004 Plan will remain in effect only so long as awards made thereunder remain outstanding. 2014 Stock Incentive Plan. In September and October 2014, the Company’s Board of Directors and stockholders approved the 2014 Plan, respectively. The maximum number of shares of common stock available for issuance under the 2014 Plan is 3,680,000. Stock Options. At March 31, 2017 and June 30, 2016 there were no outstanding stock options and all expense related to stock option grants has been fully recognized. Restricted Stock and Restricted Stock Units. Employees and directors are eligible to receive grants of restricted stock and restricted stock units. The Company determines stock-based compensation expense using the fair value method. The fair value of restricted stock and restricted stock units is equal to the closing sale price of the Company’s common stock on the date of grant. During the nine months ended March 31, 2017 and 2016, the Company granted 843,056 and 615,362 restricted stock units, to employees and directors, respectively. Restricted stock unit awards (“RSUs”) granted during these quarters generally vest over three years, one-third on each anniversary date, except for any RSUs granted to our CEO, which vest one-fourth on each fiscal year end. The Company’s income before income taxes and net income for the three months ended March 31, 2017 and March 31, 2016 include stock award expense of $3,610 and $3,353, with total income tax benefit of $1,538 and $1,394, respectively. For the nine months ended March 31, 2017 and March 31, 2016 stock award expense was $10,060 and $8,470, with total income tax benefit of $4,245 and $3,532, respectively. The Company recognizes compensation expense based upon the grant-date fair value divided by the vesting and the service period between each vesting date. At March 31, 2017, unrecognized compensation expense related to non-vested awards aggregated to $26,178 and is expected to be recognized in future periods as follows:
The following table presents the status and changes in restricted stock unit grants for the periods indicated:
The total fair value of shares vested for the three and nine months ended March 31, 2017 was $164 and $5,453. The total fair value of shares vested for the three and nine months ended March 31, 2016 was $155 and $7,303. |
EARNINGS PER SHARE ("EPS") |
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EARNINGS PER SHARE (EPS) | EARNINGS PER SHARE (“EPS”) Basic EPS excludes dilution and is computed by dividing net income or loss available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted to common stock that would then share in the Company’s earnings. The following table presents the calculation of basic and diluted EPS:
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COMMITMENTS AND CONTINGENCIES |
9 Months Ended |
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Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Credit-Related Financial Instruments. The Company is a party to credit-related financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are commitments to extend credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance-sheet instruments. At March 31, 2017, the Company had commitments to originate $84,044 in fixed rate loans and leases and $457,443 in variable rate loans, totaling an aggregate outstanding principal balance of $541,487. Our fixed rate loan and lease commitments to originate had rates ranging from 2.10% to 8.88%. At March 31, 2017, the Company also had commitments to sell $55,121 in fixed rate loans and $6,057 in variable rate loans, totaling an aggregate outstanding principal balance of $61,178. Commitments to extend credit are agreements to lend to a customer so long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer. Litigation. On October 15, 2015, the Company, its Chief Executive Officer and its Chief Financial Officer were named defendants in a putative class action lawsuit styled Golden v. BofI Holding, Inc., et al, and brought in United States District Court for the Southern District of California (the “Golden Case”). On November 3, 2015, the Company, its Chief Executive Officer and its Chief Financial Officer were named defendants in a second putative class action lawsuit styled Hazan v. BofI Holding, Inc., et al, and also brought in the United States District Court for the Southern District of California (the “Hazan Case”). On February 1, 2016, the Golden Case and the Hazan Case were consolidated as In re BofI Holding, Inc. Securities Litigation, Case #: 3:15-cv-02324-GPC-KSC (the “Class Action”), and the Houston Municipal Employees Pension System was appointed lead plaintiff. The Class Action complaint was amended by a certain Consolidated Amended Class Complaint filed on April 11, 2016. The Class Action plaintiff seeks monetary damages and other relief on behalf of a putative class that has not been certified by the Court. On April 3, 2017, the Company, its Chief Executive Officer and its Chief Financial Officer were named defendants in a putative class action lawsuit styled Mandalevy v. BofI Holding, Inc., et al, and brought in United States District Court for the Southern District of California (the “Mandalevy Case”). The complaints filed in the Golden Case, the Hazan Case, and the Mandalevy Case allege that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by failing to disclose the wrongful conduct that is alleged in a complaint that was filed in a wrongful termination of employment lawsuit (the “Employment Matter”), and that as a result the Company’s statements regarding its internal controls, as well as portions of its financial statements, were false and misleading. The Company and the other named defendants dispute the allegations of wrongdoing advanced by the plaintiffs in the Class Action, the Mandalevy Case, and in the Employment Matter, as well as those plaintiffs’ statement of the underlying factual circumstances, and are vigorously defending each case. In addition to the Class Action, two separate shareholder derivative actions were filed in December, 2015, purportedly on behalf of the Company. The first derivative action, Calcaterra v. Garrabrants, et al, was filed in the United States District Court for the Southern District of California on December 3, 2015. The second derivative action, Dow v. Micheletti, et al, was filed in the San Diego County Superior Court on December 16, 2015. A third derivative action, DeYoung v. Garrabrants, et al, was filed in the United States District Court for the Southern District of California on January 22, 2016, a fourth derivative action, Yong v. Garrabrants, et al, was filed in the United States District Court for the Southern District of California on January 29, 2016, and a fifth derivative action, Laborers Pension Trust Fund of Northern Nevada v. Allrich et al, was filed in the United States District Court for the Southern District of California on February 2, 2016. Each of these five derivative actions names the Company as a nominal defendant, and certain of its officers and directors as defendants. Each complaint sets forth allegations of breaches of fiduciary duties, gross mismanagement, abuse of control, and unjust enrichment against the defendant officers and directors. The plaintiffs in these derivative actions seek damages in unspecified amounts on the Company’s behalf from the officer and director defendants, certain corporate governance actions, and an award of their costs and attorney’s fees. On June 9, 2016, the United States District Court for the Southern District of California ordered the four above-referenced cases pending before it to be consolidated, appointed lead counsel in the consolidated action, and ordered the parties to meet and confer regarding a schedule for the filing of a consolidated complaint and defendants’ response to the complaint. Pursuant to the June 9, 2016 order, counsel have met and conferred regarding proposals for (a) the time for plaintiffs to file a consolidated complaint or provide notice of plaintiffs’ intent to rely upon the original Complaint in Case No. 3:15-cv-02722-GPC-KSC (the “operative complaint”); (b) the time for defendants to respond to the operative complaint; and (c) a schedule for briefing any motion to dismiss that may be filed by a defendant. A stipulation setting forth the agreed litigation schedule has been submitted to the Court. The fifth derivative action, which is pending before the San Diego County Superior Court, has been stayed by agreement of the parties. On September 27, 2016, the Court dismissed the Class Action, with leave to amend, as to defendants Andrew Micheletti, Paul Grinberg, Nicholas Mosich and James Argalas. The Court denied the Motion to Dismiss with respect to the Company and Gregory Garrabrants. The Company and the other defendants dispute the allegations of wrongdoing and are vigorously defending these purported derivative actions. On November 25, 2016, the putative class action plaintiff filed a Second Amended Class Action Complaint, which includes the previously dismissed defendants. On December 23, 2016, the Company and other defendants filed a motion to dismiss such Second Amended Class Action Complaint. |
RELATED PARTY TRANSACTIONS |
9 Months Ended |
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Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS In the ordinary course of business, the Company has granted related party loans collateralized by real property to principal officers, directors and their affiliates that are considered to be insiders by regulation. There were no new related party loans granted under the provisions of the employee loan program and no refinances of existing loans during the three months ended March 31, 2017, and no new loans and no refinances of existing loans during the nine months ended March 31, 2016. |
SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Accounting Policies [Abstract] | |||||||||||||
Consolidation | The condensed consolidated financial statements include the accounts of BofI Holding, Inc. and its wholly owned subsidiary, BofI Federal Bank (the “Bank” and collectively with BofI Holding, Inc., the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. |
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Basis of Presentation | The accompanying interim condensed consolidated financial statements, presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), are unaudited and reflect all adjustments which, in the opinion of management, are necessary for a fair statement of financial condition and results of operations for the interim periods. All adjustments are of a normal and recurring nature. Results for the nine months ended March 31, 2017 are not necessarily indicative of results that may be expected for any other interim period or for the year as a whole. Certain information and note disclosures normally included in the audited annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) with respect to interim financial reporting. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended June 30, 2016 included in our Annual Report on Form 10-K. |
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Securities | Securities. Debt securities are classified as held-to-maturity and carried at amortized cost when management has both the positive intent and ability to hold them to maturity. Debt securities are classified as available-for-sale when they might be sold before maturity. Trading securities refer to certain types of assets that banks hold for resale at a profit or when the Company elects to account for certain securities at fair value. Increases or decreases in the fair value of trading securities are recognized in earnings as they occur. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. During the quarter ended September 30, 2016, the Company elected to reclassify all of its held-to-maturity securities to available-for-sale. See Note 4 – “Securities” for further information. Gains and losses on securities sales are based on a comparison of sales proceeds and the amortized cost of the security sold using the specific identification method. Purchases and sales are recognized on the trade date. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are amortized or accreted using the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. The Company’s portfolios of held-to-maturity and available-for-sale securities are reviewed quarterly for other-than-temporary impairment. In performing this review, management considers (1) the length of time and extent that fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) the impact of changes in market interest rates on the market value of the security and (4) how to record an impairment by assessing whether the Company intends to sell or it is more likely than not that it will be required to sell a security in an unrealized loss position before the Company recovers the security’s amortized cost. If either of these criteria for (4) is met, the entire difference between amortized cost and fair value is recognized in earnings. Alternatively, if the criteria for (4) is not met, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. |
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Loans and Leases | Loans and Leases. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, deferred purchase premiums and discounts, deferred loan origination fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Premiums and discounts on loans purchased as well as loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method. The Company provides equipment financing to its customers through a variety of lease arrangements. The most common arrangement is a direct financing (capital) lease. For direct financing leases, lease receivables are recorded on the balance sheet but the leased property is not, although the Company generally retains legal title to the leased property until the end of each lease. Direct financing leases are stated at the net amount of minimum lease payments receivable, plus any unguaranteed residual value, less the amount of unearned income and net acquisition discount at the reporting date. Direct lease origination costs are amortized over the weighted average life of the lease portfolio. Leases acquired in an acquisition are initially measured and recorded at their fair value on the acquisition date. Purchase discounts or premiums on acquired leases are recognized as an adjustment to interest income over the contractual life of the leases using the effective interest method or taken into income when the related leases are paid off. Direct financing leases are subject to our allowance for loans and leases. Recognition of interest income on all portfolio segments is generally discontinued at the time the loan or lease is 90 days delinquent unless the loan or lease is well secured and in process of collection. Past due status is based on the contractual terms of the loan or lease. In all cases, loans or leases are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for loans or leases placed on nonaccrual, is reversed against interest income. Interest received on such loans or leases is accounted for on the cash-basis or cost recovery method, until qualifying for return to accrual. Loans and leases are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
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Loans Held for Sale | Loans Held for Sale. U.S government agency (“agency”) loans originated and intended for sale in the secondary market are carried at fair value. Net unrealized gains and losses are recognized through the income statement. The Bank sells its mortgage loans with either servicing released or servicing retained depending upon market pricing. Gains and losses on loan sales are recorded as mortgage banking income, based on the difference between sales proceeds and carrying value. Non-agency loans held for sale are carried at the lower of cost or fair value. Loans that were originated with the intent and ability to hold for the foreseeable future (loans held in portfolio) but which have been subsequently designated as being held for sale for risk management or liquidity needs are carried at the lower of cost or fair value calculated on an individual loan by loan basis. There may be times when loans have been classified as held for sale and for some reason cannot be sold. Loans transferred to a long-term-investment classification from held-for-sale are transferred at the lower of cost or market value on the transfer date. Any difference between the carrying amount of the loan and its outstanding principal balance is recognized as an adjustment to yield by the interest method. A loan cannot be classified as a long-term investment unless the Bank has both the ability and the intent to hold the loan for the foreseeable future or until maturity. |
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Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses. The allowance for loan and lease losses is maintained at a level estimated to provide for probable incurred losses in the loan and lease portfolio. Management determines the adequacy of the allowance based on reviews of individual loans and leases and pools of loans, recent loss experience, current economic conditions, the risk characteristics of the various categories of loans and other pertinent factors. This evaluation is inherently subjective and requires estimates that are susceptible to significant revision as more information becomes available. The allowance is increased by the provision for loan and lease losses, which is charged against current period operating results and recoveries of loans previously charged-off. The allowance is decreased by the amount of charge-offs of loans deemed uncollectible. Allocations of the allowance may be made for specific loans but the entire allowance is available for any loan that, in management’s judgment, should be charged off. |
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New Accounting Pronouncements | New Accounting Pronouncements. In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) 2015-03 Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. Under the amended guidance, debt issuance costs related to a recognized debt liability are required to be presented as deductions from the carrying amounts of the corresponding debt liabilities, consistent with the presentation of debt discounts and premiums. The amended guidance was adopted for the quarter ended September 30, 2016 and applied retrospectively in accordance with the amended guidance, wherein the balance sheet of each individual period presented has been adjusted to reflect the period-specific effects of applying the amended guidance. The adoption of this guidance did not materially impact our consolidated financial position or consolidated results of operations. In March 2016, the FASB issued ASU 2016-09 Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09 ”), which simplifies several areas of accounting for share-based payment transactions, including tax provision, classification in the cash-flow statement, forfeitures, and statutory tax withholding requirements. The guidance will be effective for the Company’s financial statements for interim and annual periods beginning after December 15, 2016. The Company is currently evaluating the impact of this ASU, but the Company does not expect ASU 2016-09 to have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which (i) significantly changes the impairment model for most financial assets that are measured at amortized cost and certain other instruments from an incurred loss model to an expected loss model; and (ii) provides for recording credit losses on available-for-sale debt securities through an allowance account. ASU 2016-13 also requires certain incremental disclosures. ASU 2016-13 should be applied on a modified-retrospective transition approach that would require a cumulative-effect adjustment to the opening retained earnings in the statement of financial condition as of the date of adoption. A prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date. The guidance will be effective for the Company’s financial statements that include periods beginning July 1, 2020. Early adoption is permitted beginning July 1, 2019. The Company is currently evaluating the impact of this ASU and the Company expects ASU 2016-13 to have a material impact on the Company’s consolidated financial statements. |
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Fair Value Measurement | 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. Accounting Standards Codification Topic 820, Fair Value Measurement, 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. |
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Fair Value of Financial Instruments | 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 and lease losses and the underlying bank’s capital ratios. Also a factor is the Company’s loan and lease loss experience in the local economy in which the bank operates. At March 31, 2017, the Company’s forecast of cash flows for both securities includes actual and forecasted defaults totaling 17.2% of all banks in the collateral pools, compared to 16.3% 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, 2017, the Company used a weighted average discount margin of 450 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 economic activity, the timing of forecasted defaults and the discount rate applied to cash flows. The fair value of the trading securities at March 31, 2017 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 $816. 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 $935. Securities—available-for-sale and held-to-maturity. Available-for-sale (“AFS”) securities are recorded at fair value and consist of residential mortgage-backed securities (“RMBS”) issued by U.S. agencies, non-agencies, collateralized loan obligations, and municipals. Held-to-maturity (“HTM”) securities are recorded at amortized cost and consist of RMBS issued by U.S. agencies, RMBS issued by non-agencies, and municipals. 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. For each security, the Company inputs a projection of monthly default rates, loss severity rates and voluntary prepayment rates for the underlying mortgages for the remaining life of each 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 factors influencing the Company’s modeling of the monthly default rate are unemployment and HPA, as a strong correlation exists. The national unemployment rate announced prior to the end of the period covered by this report (reported for March 2017) was 4.5%, down from the high of 10.0% in October 2009. 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, 2017 are from 40.0% up to 69.1% 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 lower FICO and 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, 2017 are from 1.5% up to 18.2% 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, 2017, the Company computed its discount rates as a spread between 266 and 686 basis points over the interpolated swap 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. The Bank’s estimate of fair value for non-agency securities using Level 3 pricing is highly subjective and is based on the Bank’s estimate of voluntary prepayments, default rates, severities and discount margins, which are forecasted monthly over the remaining life of the security. Changes in one or more of these assumptions can cause a significant change in the estimated fair value. For further details see the table later in this note that summarizes quantitative information about Level 3 fair value measurements. Loans Held for Sale. Loans held for sale at fair value are primarily single-family and multifamily residential loans. The fair value of residential 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 the collateral pledged. The accrual of interest income has been discontinued for impaired loans. The impaired loans are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. The Company assesses loans individually and identifies impairment when the loan is classified as impaired, has 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 losses are generally based on recent real estate appraisals or internal valuation analyses consistent with the methodology used in real estate appraisals and include other third-party valuations and analysis of cash flows. These appraisals and analyses are updated at least on an annual basis. The Company primarily obtains real estate appraisals and in the rare cases where an appraisal cannot be obtained, the Company performs an internal valuation analysis. These appraisals and analyses may utilize a single valuation approach or a combination of approaches including comparable sales and income approaches. The sales comparison approach uses at least three recent similar property sales to help determine the fair value of the property being appraised. The income approach is calculated by taking the net operating income generated by the collateral property of the rent collected and dividing it by an assumed capitalization rate. Adjustments are routinely made in the process by the appraisers to account for differences between the comparable sales and income data available. When measuring the fair value of the impaired loan based upon the projected sale of the underlying collateral, the Company subtracts the costs expected to be incurred for the transfer of the underlying collateral, which includes items such as sales commissions, delinquent taxes and insurance premiums. 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 and Repossessed Vehicles. Non-recurring 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 estimated 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 Servicing Rights. The Company initially records all mortgage servicing rights (“MSRs”) at fair value and accounts for MSRs at fair value during the life of the MSR, with changes in fair value recorded through current period earnings. Fair value adjustments encompass market-driven valuation changes as well as modeled amortization involving the run-off of value that occurs due to the passage of time as individual loans are paid by borrowers. Market expectations about loan duration, and correspondingly the expected term of future servicing cash flows, may vary from time to time due to changes in expected prepayment activity, especially when interest rates rise or fall. Market expectations of increased loan prepayment speeds may negatively impact the fair value of the single family MSRs. Fair value is also dependent on the discount rate used in calculating present value, which is imputed from observable market activity and market participants and results in Level 3 classification. Management reviews and adjusts the discount rate on an ongoing basis. An increase in the discount rate would reduce the estimated fair value of the MSRs asset. Mortgage Banking Derivatives. Fair value 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. |
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Credit Quality Indicators | Credit Quality Indicators The Company categorizes loans and leases into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans and leases individually by classifying the loans and leases based on credit risk. The Company uses the following definitions for risk ratings. Pass. Loans and leases classified as pass are well protected by the current net worth and paying capacity of the obligor or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner. Special Mention. Loans and leases classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease or of the institution’s credit position at some future date. Substandard. Loans and leases classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans and leases so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans and leases classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The Company reviews and grades loans and leases following a continuous review process, featuring coverage of all loan and lease types and business lines at least quarterly. Continuous reviewing provides more effective risk monitoring because it immediately tests for potential impacts caused by changes in personnel, policy, products or underwriting standards. |
FAIR VALUE (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis at March 31, 2017 and June 30, 2016. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:
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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 following tables present 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:
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Quantitative Information About Level 3 Fair Value Measurements | 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:
_______________________ 1 For impaired loans, other real estate owned and foreclosed assets 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.
_______________________ 1 For impaired loans, other real estate owned and foreclosed assets 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. The table below summarizes the quantitative information about level 3 fair value measurements at the periods indicated:
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Changes in Unrealized Gains and Losses and Interest Income Recorded in Earnings for Level 3 Trading Assets and Liabilities | 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:
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Fair Value Assets Measured on Nonrecurring Basis | The table below summarizes assets measured for impairment on a non-recurring basis:
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Aggregate Fair Value, Contractual Balance, and Gains | As of March 31, 2017 and June 30, 2016, the aggregate fair value, contractual balance (including accrued interest), and unrealized gain was as follows:
The total amount of unrealized gains and losses from changes in fair value included in earnings for the period indicated below for loans held for sale were:
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Carrying Amounts and Estimated Fair Values of Financial Instruments at Period-end | The carrying amounts and estimated fair values of financial instruments at March 31, 2017 and June 30, 2016 were as follows:
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SECURITIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2017 and June 30, 2016 were:
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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:
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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:
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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, 2017 were as follows:
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Unrealized Gain (Loss) on Investments | The Company had recorded unrealized gains and unrealized losses in accumulated other comprehensive loss as follows:
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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, 2017 were:
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LOANS, LEASES & ALLOWANCE FOR LOANS AND LEASE LOSSES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of the Loan and Lease Portfolio | The following table sets forth the composition of the loan and lease portfolio as of the dates indicated:
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Activity in the Allowance for Loan and Lease Losses by Portfolio Class | The following tables summarize activity in the allowance for loan and lease losses by portfolio classes for the periods indicated:
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Loans and Leases Evaluated for Impairment by Portfolio Class | The following tables present our loans and leases evaluated individually for impairment by class:
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Balance in the Allowance for Loan and Lease Losses and Recorded Investments by Portfolio Segment | The following tables present the balance in the allowance for loan and lease losses and the recorded investment in loans and leases by portfolio segment and based on impairment evaluation method:
________________ 1. Loans and leases evaluated for impairment include Troubled Debt Restructurings (“TDRs”) that have been performing for more than six months.
________________ 1. Loans and leases evaluated for impairment include TDRs that have been performing for more than six months. |
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Non-performing Loans and Leases | Non-performing loans and leases consisted of the following as of the dates indicated:
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Loans and Leases, Performing and Non-performing | The following tables present the outstanding unpaid balance of loans and leases that are performing and non-performing by portfolio class:
The Company divides loan balances when determining general loan loss reserves between purchases and originations as follows:
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Interest Recognized on Performing Loans Temporarily Modified as TDR | The Company classifies these loans as performing loans temporarily modified as TDR and are included in impaired loans and leases as follows:
The Company recognizes interest on performing loans temporarily modified as TDR, which is shown in conjunction with average balances as follows:
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Compositon of Loan and Lease Portfolio by Credit Quality Indicators | The following table presents the composition of the Company’s loan and lease portfolio by credit quality indicators:
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Past Due Loan and Leases | The following table provides the outstanding unpaid balance of loans and leases that are past due 30 days or more by portfolio class as of the period indicated:
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EQUITY AND STOCK-BASED COMPENSATION (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrecognized compensation expense related to non-vested awards, to be recognized in the future | At March 31, 2017, unrecognized compensation expense related to non-vested awards aggregated to $26,178 and is expected to be recognized in future periods as follows:
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Status and changes in restricted stock grants | The following table presents the status and changes in restricted stock unit grants for the periods indicated:
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EARNINGS PER SHARE ("EPS") (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of basic and diluted EPS | The following table presents the calculation of basic and diluted EPS:
|
SIGNIFICANT ACCOUNTING POLICIES (Details) |
9 Months Ended |
---|---|
Mar. 31, 2017 | |
H&R Block Bank Deposits | Emerald Advance | |
Business Acquisition [Line Items] | |
Interest income and fees retainer percentage | 10.00% |
FAIR VALUE - LEVEL 3 UNREALIZED GAIN (LOSS) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value adjustment | $ 270 | $ (117) | $ 837 | $ (243) |
Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Interest income on investments | 81 | 60 | 224 | 178 |
Fair value adjustment | 270 | (117) | 837 | (243) |
Total | $ 351 | $ (57) | $ 1,061 | $ (65) |
FAIR VALUE - LOANS HELD-FOR-SALE (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
Jun. 30, 2016 |
|
Fair Value Disclosures [Abstract] | |||||
Aggregate fair value | $ 14,696 | $ 14,696 | $ 20,871 | ||
Contractual balance | 14,383 | 14,383 | 20,226 | ||
Unrealized gain | 313 | 313 | $ 645 | ||
Interest income | 139 | $ 148 | 468 | $ 581 | |
Change in fair value | (1,560) | 1,223 | (515) | (69) | |
Total Change in fair value | $ (1,421) | $ 1,371 | $ (47) | $ 512 |
FAIR VALUE - FAIR VALUE BY BALANCE SHEET GROUPING (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Jun. 30, 2016 |
---|---|---|
Financial assets: | ||
Securities trading | $ 8,421 | $ 7,584 |
Securities available-for-sale | 368,229 | 265,447 |
Securities held-to-maturity | 0 | 202,677 |
Loans held for sale, at fair value | 14,696 | 20,871 |
Loans held for sale, lower of cost or fair value | 7,607 | 33,530 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 1,078,757 | 486,727 |
Securities trading | 8,421 | 7,584 |
Securities available-for-sale | 368,229 | 265,447 |
Securities held-to-maturity | 199,174 | |
Loans held for sale, at fair value | 14,696 | 20,871 |
Loans held for sale, lower of cost or fair value | 7,607 | 33,530 |
Loans and leases held for investment—net | 7,020,700 | 6,354,679 |
Accrued interest receivable | 21,271 | 26,201 |
Mortgage servicing rights | 6,731 | 3,943 |
Financial liabilities: | ||
Time deposits and savings | 6,799,631 | 6,044,051 |
Securities sold under agreements to repurchase | 35,000 | 35,000 |
Advances from the Federal Home Loan Bank | 961,000 | 727,000 |
Subordinated notes and debentures and other | 54,450 | 56,016 |
Accrued interest payable | 1,474 | 1,667 |
Total Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 1,078,757 | 486,727 |
Securities trading | 8,421 | 7,584 |
Securities available-for-sale | 368,229 | 265,447 |
Securities held-to-maturity | 202,677 | |
Loans held for sale, at fair value | 14,696 | 20,871 |
Loans held for sale, lower of cost or fair value | 8,209 | 33,530 |
Loans and leases held for investment—net | 7,163,242 | 6,640,918 |
Accrued interest receivable | 21,271 | 26,201 |
Mortgage servicing rights | 6,731 | 3,943 |
Financial liabilities: | ||
Time deposits and savings | 6,408,929 | 5,946,991 |
Securities sold under agreements to repurchase | 35,366 | 36,391 |
Advances from the Federal Home Loan Bank | 965,649 | 747,940 |
Subordinated notes and debentures and other | 52,466 | 58,299 |
Accrued interest payable | 1,474 | 1,667 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 1,078,757 | 486,727 |
Securities trading | 0 | 0 |
Securities available-for-sale | 0 | 0 |
Securities held-to-maturity | 0 | |
Loans held for sale, at fair value | 0 | 0 |
Loans held for sale, lower of cost or fair value | 0 | 0 |
Loans and leases held for investment—net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Financial liabilities: | ||
Time deposits and savings | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Advances from the Federal Home Loan Bank | 0 | 0 |
Subordinated notes and debentures and other | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities trading | 0 | 0 |
Securities available-for-sale | 290,174 | 256,083 |
Securities held-to-maturity | 77,415 | |
Loans held for sale, at fair value | 14,696 | 20,871 |
Loans held for sale, lower of cost or fair value | 0 | 0 |
Loans and leases held for investment—net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Financial liabilities: | ||
Time deposits and savings | 6,408,929 | 5,946,991 |
Securities sold under agreements to repurchase | 35,366 | 36,391 |
Advances from the Federal Home Loan Bank | 965,649 | 747,940 |
Subordinated notes and debentures and other | 52,466 | 58,299 |
Accrued interest payable | 1,474 | 1,667 |
Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities trading | 8,421 | 7,584 |
Securities available-for-sale | 78,055 | 9,364 |
Securities held-to-maturity | 125,262 | |
Loans held for sale, at fair value | 0 | 0 |
Loans held for sale, lower of cost or fair value | 8,209 | 33,530 |
Loans and leases held for investment—net | 7,163,242 | 6,640,918 |
Accrued interest receivable | 21,271 | 26,201 |
Mortgage servicing rights | 6,731 | 3,943 |
Financial liabilities: | ||
Time deposits and savings | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Advances from the Federal Home Loan Bank | 0 | 0 |
Subordinated notes and debentures and other | 0 | 0 |
Accrued interest payable | $ 0 | $ 0 |
SECURITIES - AMORTIZED COST, CARRYING AMOUNT AND FAIR VALUE DISCLOSURES (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Jun. 30, 2016 |
|||||
---|---|---|---|---|---|---|---|
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading | $ 8,421 | $ 7,584 | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Available-for-sale, Amortized Cost | 361,607 | 263,158 | |||||
Available-for-sale, Unrealized Gains | 9,223 | 2,496 | |||||
Available-for-sale, Unrealized Losses | (2,601) | (207) | |||||
Available-for-sale | 368,229 | 265,447 | |||||
Schedule of Held-to-maturity Securities [Line Items] | |||||||
Held-to-maturity, Carrying Amount | 0 | 199,174 | |||||
Held-to-maturity, Unrecognized Gains | 0 | 13,548 | |||||
Held-to-maturity, Unrecognized Losses | 0 | (10,045) | |||||
Held to maturity - Fair Value | 0 | 202,677 | |||||
Mortgage-backed securities (RMBS) | |||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading | 0 | 0 | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Available-for-sale, Amortized Cost | 103,255 | 42,299 | |||||
Available-for-sale, Unrealized Gains | 7,131 | 810 | |||||
Available-for-sale, Unrealized Losses | (2,098) | (23) | |||||
Available-for-sale | 108,288 | 43,086 | |||||
U.S. Agencies | |||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading | [1] | 0 | 0 | ||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Available-for-sale, Amortized Cost | [1] | 30,432 | 33,256 | ||||
Available-for-sale, Unrealized Gains | [1] | 279 | 489 | ||||
Available-for-sale, Unrealized Losses | [1] | (478) | (23) | ||||
Available-for-sale | [1] | 30,233 | 33,722 | ||||
Non-Agency RMBS | |||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading | [2] | 0 | 0 | ||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Available-for-sale, Amortized Cost | [2] | 72,823 | 9,043 | ||||
Available-for-sale, Unrealized Gains | [2] | 6,852 | 321 | ||||
Available-for-sale, Unrealized Losses | [2] | (1,620) | 0 | ||||
Available-for-sale | [2] | 78,055 | 9,364 | ||||
Other Debt Securities | |||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading | 8,421 | 7,584 | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Available-for-sale, Amortized Cost | 258,352 | 220,859 | |||||
Available-for-sale, Unrealized Gains | 2,092 | 1,686 | |||||
Available-for-sale, Unrealized Losses | (503) | (184) | |||||
Available-for-sale | 259,941 | 222,361 | |||||
U.S. Agencies | |||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading | [1] | 0 | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Available-for-sale, Amortized Cost | [1] | 99,995 | |||||
Available-for-sale, Unrealized Gains | [1] | 0 | |||||
Available-for-sale, Unrealized Losses | [1] | 0 | |||||
Available-for-sale | [1] | 99,995 | |||||
Municipal | |||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading | 0 | 0 | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Available-for-sale, Amortized Cost | 29,827 | 34,543 | |||||
Available-for-sale, Unrealized Gains | 22 | 185 | |||||
Available-for-sale, Unrealized Losses | (456) | (10) | |||||
Available-for-sale | 29,393 | 34,718 | |||||
Non-agency | |||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading | 8,421 | 7,584 | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Available-for-sale, Amortized Cost | 128,530 | 186,316 | |||||
Available-for-sale, Unrealized Gains | 2,070 | 1,501 | |||||
Available-for-sale, Unrealized Losses | (47) | (174) | |||||
Available-for-sale | 130,553 | 187,643 | |||||
Mortgage-backed securities (RMBS) | |||||||
Schedule of Held-to-maturity Securities [Line Items] | |||||||
Held-to-maturity, Carrying Amount | 0 | 163,278 | |||||
Held-to-maturity, Unrecognized Gains | 0 | 7,938 | |||||
Held-to-maturity, Unrecognized Losses | 0 | (10,045) | |||||
Held to maturity - Fair Value | 0 | 161,171 | |||||
Other Debt Securities | |||||||
Schedule of Held-to-maturity Securities [Line Items] | |||||||
Held-to-maturity, Carrying Amount | 0 | 35,896 | |||||
Held-to-maturity, Unrecognized Gains | 0 | 5,610 | |||||
Held-to-maturity, Unrecognized Losses | 0 | 0 | |||||
Held to maturity - Fair Value | $ 0 | $ 41,506 | |||||
|
SECURITIES - NARRATIVE (Details) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Sep. 30, 2016
USD ($)
|
Mar. 31, 2017
USD ($)
security
|
Jun. 30, 2016
USD ($)
|
Mar. 31, 2016
USD ($)
|
||||
Available-for-sale Securities [Abstract] | |||||||
Securities transferred from held-to-maturity to available-for-sale portfolio | $ 194,153,000 | $ 194,153,000 | $ 0 | ||||
Net unrealized gain recognized in other comprehensive income of held-to-maturity securities transferred to available-for-sale | $ 3,618,000 | ||||||
Available-for-sale | 368,229,000 | $ 265,447,000 | |||||
Certain Loans Acquired in Transfer Accounted for as Debt Securities [Abstract] | |||||||
Available-for-sale securities, other-than-temporary loss charged to income | 1,461,000 | 0 | |||||
Available-for-sale securities pledged as collateral | 17,668,000 | ||||||
Debt securities available-for-sale and held-to-maturity pledged to secure borrowings | 39,961,000 | ||||||
Non-Agency RMBS | |||||||
Available-for-sale Securities [Abstract] | |||||||
Available-for-sale | [1] | 78,055,000 | $ 9,364,000 | ||||
RMBS, Super Senior Securities | |||||||
Available-for-sale Securities [Abstract] | |||||||
Available-for-sale | $ 77,217,000 | ||||||
Available-for-sale, number of securities | security | 39 | ||||||
Non-Agency RMBS, Mezzanine Z-Tranche Securities | |||||||
Available-for-sale Securities [Abstract] | |||||||
Available-for-sale | $ 16,000 | ||||||
Available-for-sale, number of securities | security | 2 | ||||||
RMBS, Senior-Support Securities | |||||||
Certain Loans Acquired in Transfer Accounted for as Debt Securities [Abstract] | |||||||
Number of securities account for as debt security acquired with deteriorated credit quality | security | 1 | ||||||
Fair value of security acquired with deteriorated credit quality | [1] | $ 822,000 | |||||
Cost of securities acquired in transfer | 17,740,000 | ||||||
Carrying amount of securities acquired in transfer | 30,560,000 | ||||||
Accretable yield of securities acquired in transfer, forecasted | 9,015,000 | ||||||
Nonaccretable yield of securities acquired in transfer, forecasted | 3,805,000 | ||||||
Balance of securities acquired in transfer | 0 | ||||||
Amortizable premium of securities acquired in transfer, forecasted | 0 | ||||||
Nonamortizable premium of securities acquired in transfer, forecasted | $ 1,010,000 | ||||||
|
SECURITIES - SCHEDULE OF UNREALIZED LOSS ON INVESTMENTS (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Jun. 30, 2016 |
---|---|---|
Available-for-sale securities in loss position for | ||
Available-for-sale securities in loss position for less than 12 months, Fair Value | $ 52,567 | $ 15,833 |
Available-for-sale securities in loss position, Gross Unrealized Losses | (920) | (15) |
Available-for-sale securities in loss position for more than 12 months, Fair Value | 37,077 | 22,057 |
Available-for-sale securities in loss position for more than 12 months, Gross Unrealized Losses | (1,681) | (192) |
Available-for-sale securities in loss position, Total, Fair Value | 89,644 | 37,890 |
Available-for-sale securities in loss position, Gross Unrealized Losses | (2,601) | (207) |
Held-to-maturity securities in loss position for | ||
Held-to-maturity securities in loss position for less than 12 months, Fair Value | 0 | 15,140 |
Held-to-maturity securities in loss position for less than 12 months, Gross Unrealized Losses | 0 | (420) |
Held-to-maturity securities in loss position for more than 12 months, Fair Value | 0 | 53,372 |
Held-to-maturity securities in loss position for more than 12 months, Gross Unrealized Losses | 0 | (9,625) |
Held-to-maturity securities in loss position, Total, Fair Value | 0 | 68,512 |
Held-to-maturity securities in loss position, Gross Unrealized Losses | 0 | (10,045) |
Mortgage-backed securities (RMBS) | ||
Available-for-sale securities in loss position for | ||
Available-for-sale securities in loss position for less than 12 months, Fair Value | 22,666 | 0 |
Available-for-sale securities in loss position, Gross Unrealized Losses | (424) | 0 |
Available-for-sale securities in loss position for more than 12 months, Fair Value | 28,076 | 5,094 |
Available-for-sale securities in loss position for more than 12 months, Gross Unrealized Losses | (1,674) | (23) |
Available-for-sale securities in loss position, Total, Fair Value | 50,742 | 5,094 |
Available-for-sale securities in loss position, Gross Unrealized Losses | (2,098) | (23) |
U.S. Agencies | ||
Available-for-sale securities in loss position for | ||
Available-for-sale securities in loss position for less than 12 months, Fair Value | 19,611 | 0 |
Available-for-sale securities in loss position, Gross Unrealized Losses | (381) | 0 |
Available-for-sale securities in loss position for more than 12 months, Fair Value | 2,351 | 5,094 |
Available-for-sale securities in loss position for more than 12 months, Gross Unrealized Losses | (98) | (23) |
Available-for-sale securities in loss position, Total, Fair Value | 21,962 | 5,094 |
Available-for-sale securities in loss position, Gross Unrealized Losses | (479) | (23) |
Non-Agency RMBS | ||
Available-for-sale securities in loss position for | ||
Available-for-sale securities in loss position for less than 12 months, Fair Value | 3,055 | 0 |
Available-for-sale securities in loss position, Gross Unrealized Losses | (43) | 0 |
Available-for-sale securities in loss position for more than 12 months, Fair Value | 25,725 | 0 |
Available-for-sale securities in loss position for more than 12 months, Gross Unrealized Losses | (1,576) | 0 |
Available-for-sale securities in loss position, Total, Fair Value | 28,780 | 0 |
Available-for-sale securities in loss position, Gross Unrealized Losses | (1,619) | 0 |
Other Debt Securities | ||
Available-for-sale securities in loss position for | ||
Available-for-sale securities in loss position for less than 12 months, Fair Value | 29,901 | 15,833 |
Available-for-sale securities in loss position, Gross Unrealized Losses | (496) | (15) |
Available-for-sale securities in loss position for more than 12 months, Fair Value | 9,001 | 16,963 |
Available-for-sale securities in loss position for more than 12 months, Gross Unrealized Losses | (7) | (169) |
Available-for-sale securities in loss position, Total, Fair Value | 38,902 | 32,796 |
Available-for-sale securities in loss position, Gross Unrealized Losses | (503) | (184) |
Municipal | ||
Available-for-sale securities in loss position for | ||
Available-for-sale securities in loss position for less than 12 months, Fair Value | 19,533 | 10,267 |
Available-for-sale securities in loss position, Gross Unrealized Losses | (449) | (10) |
Available-for-sale securities in loss position for more than 12 months, Fair Value | 9,001 | 0 |
Available-for-sale securities in loss position for more than 12 months, Gross Unrealized Losses | (7) | 0 |
Available-for-sale securities in loss position, Total, Fair Value | 28,534 | 10,267 |
Available-for-sale securities in loss position, Gross Unrealized Losses | (456) | (10) |
Non-agency | ||
Available-for-sale securities in loss position for | ||
Available-for-sale securities in loss position for less than 12 months, Fair Value | 10,368 | 5,566 |
Available-for-sale securities in loss position, Gross Unrealized Losses | (47) | (5) |
Available-for-sale securities in loss position for more than 12 months, Fair Value | 0 | 16,963 |
Available-for-sale securities in loss position for more than 12 months, Gross Unrealized Losses | 0 | (169) |
Available-for-sale securities in loss position, Total, Fair Value | 10,368 | 22,529 |
Available-for-sale securities in loss position, Gross Unrealized Losses | (47) | (174) |
Mortgage-backed securities (RMBS) | ||
Held-to-maturity securities in loss position for | ||
Held-to-maturity securities in loss position for less than 12 months, Fair Value | 0 | 15,140 |
Held-to-maturity securities in loss position for less than 12 months, Gross Unrealized Losses | 0 | (420) |
Held-to-maturity securities in loss position for more than 12 months, Fair Value | 0 | 53,372 |
Held-to-maturity securities in loss position for more than 12 months, Gross Unrealized Losses | 0 | (9,625) |
Held-to-maturity securities in loss position, Total, Fair Value | 0 | 68,512 |
Held-to-maturity securities in loss position, Gross Unrealized Losses | 0 | (10,045) |
Other Debt Securities | ||
Held-to-maturity securities in loss position for | ||
Held-to-maturity securities in loss position for less than 12 months, Fair Value | 0 | 0 |
Held-to-maturity securities in loss position for less than 12 months, Gross Unrealized Losses | 0 | 0 |
Held-to-maturity securities in loss position for more than 12 months, Fair Value | 0 | 0 |
Held-to-maturity securities in loss position for more than 12 months, Gross Unrealized Losses | 0 | 0 |
Held-to-maturity securities in loss position, Total, Fair Value | 0 | 0 |
Held-to-maturity securities in loss position, Gross Unrealized Losses | $ 0 | $ 0 |
SECURITIES - OTHER THAN TEMPORARY IMPAIRMENT, CREDIT LOSSES RECOGNIZED IN EARNINGS (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2017
USD ($)
security
|
Mar. 31, 2016
USD ($)
|
Mar. 31, 2017
USD ($)
security
|
Mar. 31, 2016
USD ($)
|
Jun. 30, 2016
security
|
|
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||||
Number of securities in a continuous loss position | security | 15 | 15 | 26 | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||||
Beginning balance | $ (16,631) | $ (20,528) | $ (20,865) | $ (20,503) | |
Additions for the amounts related to credit loss for which an other-than-temporary impairment was not previously recognized | (217) | 0 | (217) | (106) | |
Increases to the amount related to the credit loss for which other-than-temporary impairment was previously recognized | (151) | (8) | (1,621) | (43) | |
Credit losses realized for securities sold | 556 | 0 | 6,260 | 116 | |
Ending balance | (16,443) | $ (20,536) | (16,443) | $ (20,536) | |
Non-Agency RMBS | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||||
Increases to the amount related to the credit loss for which other-than-temporary impairment was previously recognized | (368) | ||||
Ending balance | (16,443) | (16,443) | |||
Carrying amount of securities with cumulative credit losses | $ 48,486 | $ 48,486 | |||
Number of securities with other than temporary impairment | security | 2 | 2 | |||
Carrying value of securities with other than temporary impairment | $ 3,636 | $ 3,636 |
SECURITIES - REALIZED GAIN (LOSS) ON SALE OF SECURITIES (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
||||
Investments, Debt and Equity Securities [Abstract] | |||||||
Proceeds | $ 3,301 | $ (67) | [1] | $ 124,362 | $ 10,002 | ||
Gross realized gains | 312 | (14) | [1] | 6,390 | 919 | ||
Gross realized losses | 0 | 0 | (3,466) | 0 | |||
Net realized gain on securities | $ 312 | $ (14) | $ 2,924 | $ 919 | |||
|
SECURITIES - UNREALIZED GAIN (LOSS) ON INVESTMENTS (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Jun. 30, 2016 |
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale debt securities—net unrealized gains | $ 6,622 | $ 2,288 |
Available-for-sale debt securities—non-credit related losses | (7,946) | (138) |
Held-to-maturity debt securities—non-credit related losses | 0 | (14,129) |
Subtotal | (1,324) | (11,979) |
Tax (expense) benefit | 162 | 4,675 |
Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss) | $ (1,162) | $ (7,304) |
SECURITIES - INVESTMENTS CLASSIFIED BY CONTRACTUAL MATURITY DATE (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Jun. 30, 2016 |
|||||
---|---|---|---|---|---|---|---|
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Trading, Fair Value | $ 8,421 | ||||||
Available-for-sale, Amortized Cost: | |||||||
Available-for-sale, Amortized Cost | 361,607 | ||||||
Available-for-sale, Fair Value: | |||||||
Available-for-sale, Fair Value | 368,229 | $ 265,447 | |||||
Held-to-maturity, Carrying Amount: | |||||||
Held-to-maturity, Amortized Cost | 0 | ||||||
Held-to-maturity, Fair Value: | |||||||
Held to maturity - Fair Value | 0 | 202,677 | |||||
U.S. Agencies | |||||||
Available-for-sale, Amortized Cost: | |||||||
Due within one year | 1,982 | ||||||
Due one to five years | 6,386 | ||||||
Due five to ten years | 5,420 | ||||||
Due after ten years | 16,644 | ||||||
Available-for-sale, Amortized Cost | 30,432 | ||||||
Available-for-sale, Fair Value: | |||||||
Due within one year | 1,970 | ||||||
Due one to five years | 6,361 | ||||||
Due five to ten years | 5,416 | ||||||
Due after ten years | 16,486 | ||||||
Available-for-sale, Fair Value | [1] | 30,233 | 33,722 | ||||
RMBS Non-agency | |||||||
Available-for-sale, Amortized Cost: | |||||||
Due within one year | 9,488 | ||||||
Due one to five years | 29,676 | ||||||
Due five to ten years | 21,048 | ||||||
Due after ten years | 12,611 | ||||||
Available-for-sale, Amortized Cost | 72,823 | ||||||
Available-for-sale, Fair Value: | |||||||
Due within one year | 10,135 | ||||||
Due one to five years | 31,770 | ||||||
Due five to ten years | 22,522 | ||||||
Due after ten years | 13,628 | ||||||
Available-for-sale, Fair Value | [2] | 78,055 | 9,364 | ||||
Other Debt Securities | |||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||||
Due one to five years | 203 | ||||||
Due five to ten years | 286 | ||||||
Due after ten years | 7,932 | ||||||
Trading, Fair Value | 8,421 | ||||||
Available-for-sale, Amortized Cost: | |||||||
Due within one year | 170,595 | ||||||
Due one to five years | 73,872 | ||||||
Due five to ten years | 21 | ||||||
Due after ten years | 13,864 | ||||||
Available-for-sale, Amortized Cost | 258,352 | ||||||
Available-for-sale, Fair Value: | |||||||
Due within one year | 171,420 | ||||||
Due one to five years | 75,062 | ||||||
Due five to ten years | 21 | ||||||
Due after ten years | 13,438 | ||||||
Available-for-sale, Fair Value | 259,941 | 222,361 | |||||
U.S. Agencies | |||||||
Held-to-maturity, Carrying Amount: | |||||||
Due within one year | 0 | ||||||
Due one to five years | 0 | ||||||
Due five to ten years | 0 | ||||||
Due after ten years | 0 | ||||||
Held-to-maturity, Amortized Cost | 0 | ||||||
Held-to-maturity, Fair Value: | |||||||
Due within one year | 0 | ||||||
Due one to five years | 0 | ||||||
Due five to ten years | 0 | ||||||
Due after ten years | 0 | ||||||
Held to maturity - Fair Value | [1] | 0 | 35,909 | ||||
RMBS Non-agency | |||||||
Held-to-maturity, Carrying Amount: | |||||||
Due within one year | 0 | ||||||
Due one to five years | 0 | ||||||
Due five to ten years | 0 | ||||||
Due after ten years | 0 | ||||||
Held-to-maturity, Amortized Cost | 0 | ||||||
Held-to-maturity, Fair Value: | |||||||
Due within one year | 0 | ||||||
Due one to five years | 0 | ||||||
Due five to ten years | 0 | ||||||
Due after ten years | 0 | ||||||
Held to maturity - Fair Value | [2] | 0 | 125,262 | ||||
Other Debt Securities | |||||||
Held-to-maturity, Carrying Amount: | |||||||
Due within one year | 0 | ||||||
Due one to five years | 0 | ||||||
Due five to ten years | 0 | ||||||
Due after ten years | 0 | ||||||
Held-to-maturity, Amortized Cost | 0 | ||||||
Held-to-maturity, Fair Value: | |||||||
Due within one year | 0 | ||||||
Due one to five years | 0 | ||||||
Due five to ten years | 0 | ||||||
Due after ten years | 0 | ||||||
Held to maturity - Fair Value | $ 0 | $ 41,506 | |||||
|
LOANS, LEASES & ALLOWANCE FOR LOANS AND LEASE LOSSES - LOAN PORTFOLIO COMPOSITION (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
||
---|---|---|---|---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total gross loans and leases | $ 7,095,758 | $ 6,402,459 | ||||||
Allowance for loan and lease losses | (45,987) | $ (40,928) | (35,826) | $ (36,931) | $ (35,071) | $ (28,327) | ||
Unaccreted discounts and loan and lease fees | (29,071) | (11,954) | ||||||
Total net loans and leases | 7,020,700 | 6,354,679 | ||||||
Single family warehouse loans | 123,724 | 173,148 | ||||||
Mortgage | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total gross loans and leases | 3,809,703 | 3,678,520 | ||||||
Allowance for loan and lease losses | (19,566) | (19,243) | (18,666) | (18,086) | (17,167) | (13,664) | ||
Unaccreted discounts and loan and lease fees | 11,066 | 13,142 | ||||||
Home equity | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total gross loans and leases | 2,630 | 2,470 | ||||||
Allowance for loan and lease losses | (23) | (22) | (23) | (32) | (45) | (122) | ||
Unaccreted discounts and loan and lease fees | 29 | 24 | ||||||
Warehouse and other | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total gross loans and leases | [1] | 391,010 | 537,714 | |||||
Allowance for loan and lease losses | (2,133) | (2,179) | (2,685) | (2,473) | (2,643) | (1,879) | ||
Unaccreted discounts and loan and lease fees | (1,865) | (2,200) | ||||||
Multifamily real estate secured | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total gross loans and leases | 1,572,994 | 1,373,216 | ||||||
Allowance for loan and lease losses | (4,381) | (3,913) | (3,938) | (3,816) | (3,293) | (4,363) | ||
Unaccreted discounts and loan and lease fees | 4,746 | 3,957 | ||||||
Commercial real estate secured | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total gross loans and leases | 155,621 | 121,746 | ||||||
Allowance for loan and lease losses | (989) | (1,001) | (882) | (727) | (736) | (1,103) | ||
Unaccreted discounts and loan and lease fees | 747 | 542 | ||||||
Auto and RV secured | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total gross loans and leases | 131,063 | 73,676 | ||||||
Allowance for loan and lease losses | (2,145) | (2,017) | (1,615) | (1,253) | (1,840) | (953) | ||
Unaccreted discounts and loan and lease fees | 1,745 | 975 | ||||||
Factoring | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total gross loans and leases | 151,319 | 98,275 | ||||||
Allowance for loan and lease losses | (379) | (339) | (245) | (362) | (359) | (292) | ||
Unaccreted discounts and loan and lease fees | (46,221) | (30,533) | ||||||
Commercial and Industrial | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total gross loans and leases | 868,279 | 514,300 | ||||||
Allowance for loan and lease losses | (9,493) | (9,764) | (7,630) | (7,657) | (6,602) | (5,882) | ||
Unaccreted discounts and loan and lease fees | 758 | 2,172 | ||||||
Other | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total gross loans and leases | 13,139 | 2,542 | ||||||
Allowance for loan and lease losses | (6,878) | $ (2,450) | (142) | $ (2,525) | $ (2,386) | $ (69) | ||
Unaccreted discounts and loan and lease fees | $ (76) | $ (33) | ||||||
|
LOANS, LEASES & ALLOWANCE FOR LOANS AND LEASE LOSSES - ALLOWANCE FOR CREDIT LOSS NARRATIVE (Details) $ in Thousands |
9 Months Ended | |
---|---|---|
Mar. 31, 2017
USD ($)
class
|
Jun. 30, 2016
USD ($)
|
|
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | $ 7,062,457 | $ 6,370,390 |
Number of classes loans are divided for LTV analysis | class | 2 | |
Auto and RV secured | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | $ 130,865 | 73,398 |
Auto and RV secured | FICO greater than or equal to 770 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 58,182 | |
Auto and RV secured | FICO 715 - 769 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 45,640 | |
Auto and RV secured | FICO 700 - 714 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 12,477 | |
Auto and RV secured | FICO 660 - 699 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 12,773 | |
Auto and RV secured | FICO less than 660 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 1,793 | |
Single Family Mortgage | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 3,781,285 | 3,649,910 |
Single Family Mortgage | LTV less than or equal to 60% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 1,980,980 | |
Single Family Mortgage | LTV 61% - 70% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 1,383,158 | |
Single Family Mortgage | LTV 71% - 80% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 416,948 | |
Single Family Mortgage | LTV greater than 80% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 199 | |
Multifamily real estate secured | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 1,568,631 | 1,370,998 |
Multifamily real estate secured | LTV greater than 80% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 0 | |
Multifamily real estate secured | LTV less than or equal to 55% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 741,959 | |
Multifamily real estate secured | LTV 56% - 65% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 518,964 | |
Multifamily real estate secured | LTV 66% - 75% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 294,830 | |
Multifamily real estate secured | LTV 76% - 80% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 12,878 | |
Commercial real estate secured | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 155,621 | $ 121,492 |
Commercial real estate secured | LTV 61% - 70% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 44,933 | |
Commercial real estate secured | LTV 71% - 80% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 10,300 | |
Commercial real estate secured | LTV less than or equal to 50% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | 65,385 | |
Commercial real estate secured | LTV 51% - 60% | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases collectively evaluated for impairment | $ 35,003 |
LOANS, LEASES & ALLOWANCE FOR LOANS AND LEASE LOSSES - ALLOWANCE FOR LOAN LOSS BY PORTFOLIO CLASS (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | $ 40,928 | $ 35,071 | $ 35,826 | $ 28,327 |
Provision for loan and lease losses | 4,862 | 2,000 | 10,862 | 7,800 |
Charge-offs | (342) | (187) | (1,505) | (472) |
Recoveries | 539 | 47 | 804 | 1,276 |
Balance, end of period | 45,987 | 36,931 | 45,987 | 36,931 |
Mortgage | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 19,243 | 17,167 | 18,666 | 13,664 |
Provision for loan and lease losses | 360 | 947 | 1,760 | 4,365 |
Charge-offs | (103) | (29) | (971) | (106) |
Recoveries | 66 | 1 | 111 | 163 |
Balance, end of period | 19,566 | 18,086 | 19,566 | 18,086 |
Home equity | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 22 | 45 | 23 | 122 |
Provision for loan and lease losses | 22 | (20) | 1 | (116) |
Charge-offs | (23) | 0 | (23) | (2) |
Recoveries | 2 | 7 | 22 | 28 |
Balance, end of period | 23 | 32 | 23 | 32 |
Warehouse and other | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 2,179 | 2,643 | 2,685 | 1,879 |
Provision for loan and lease losses | (46) | (170) | (552) | 594 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | 2,133 | 2,473 | 2,133 | 2,473 |
Multifamily real estate secured | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 3,913 | 3,293 | 3,938 | 4,363 |
Provision for loan and lease losses | 93 | 637 | 68 | (433) |
Charge-offs | 0 | (114) | 0 | (114) |
Recoveries | 375 | 0 | 375 | 0 |
Balance, end of period | 4,381 | 3,816 | 4,381 | 3,816 |
Commercial real estate secured | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 1,001 | 736 | 882 | 1,103 |
Provision for loan and lease losses | (51) | 20 | 91 | (1,329) |
Charge-offs | 0 | (29) | (23) | (29) |
Recoveries | 39 | 0 | 39 | 982 |
Balance, end of period | 989 | 727 | 989 | 727 |
Auto and RV secured | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 2,017 | 1,840 | 1,615 | 953 |
Provision for loan and lease losses | 261 | (611) | 710 | 418 |
Charge-offs | (190) | (15) | (329) | (221) |
Recoveries | 57 | 39 | 149 | 103 |
Balance, end of period | 2,145 | 1,253 | 2,145 | 1,253 |
Factoring | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 339 | 359 | 245 | 292 |
Provision for loan and lease losses | 40 | 3 | 134 | 70 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | 379 | 362 | 379 | 362 |
Commercial and Industrial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 9,764 | 6,602 | 7,630 | 5,882 |
Provision for loan and lease losses | (271) | 1,055 | 1,863 | 1,775 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | 9,493 | 7,657 | 9,493 | 7,657 |
Other | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 2,450 | 2,386 | 142 | 69 |
Provision for loan and lease losses | 4,454 | 139 | 6,787 | 2,456 |
Charge-offs | (26) | 0 | (159) | 0 |
Recoveries | 0 | 0 | 108 | 0 |
Balance, end of period | $ 6,878 | $ 2,525 | $ 6,878 | $ 2,525 |
LOANS, LEASES & ALLOWANCE FOR LOANS AND LEASE LOSSES - LOANS INDIVIDUALLY EVALUATED FOR IMPAIRMENT (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Jun. 30, 2016 |
|||
---|---|---|---|---|---|
Loans and Leases, Evaluated Individually For Impairment, With Related Allowance Recorded [Abstract] | |||||
Unpaid Principal Balance | $ 37,818 | $ 37,127 | |||
Principal Balance Adjustment | [1] | 4,517 | 5,058 | ||
Unpaid Book Balance | 33,301 | 32,069 | |||
Accrued Interest/Origination Fees | 1,447 | 977 | |||
Recorded Investment | 34,748 | 33,046 | |||
Related Allocation of General Allowance | $ 651 | $ 692 | |||
Loans and Leases, Evaluated Individually For Impairment As a Percentage of Gross Loans [Abstract] | |||||
Unpaid Principal Balance, Ratio to All Loans and Leases | 0.53% | 0.58% | |||
Principal Balance Adjustment, Ratio to All Loans and Leases | 0.06% | 0.08% | |||
Unpaid Book Balance, Ratio to All Loans and Leases | 0.47% | 0.50% | |||
Accrued Interest/Origination Fees, Ratio to All Loans and Leases | 0.02% | 0.02% | |||
Recorded Investment, Ratio to All Loans and Leases | 0.49% | 0.52% | |||
Related Allowance, Ratio to All Loans and Leases | 0.01% | 0.01% | |||
Mortgage | In-house originated | |||||
Loans and Leases, Evaluated Individually For Impairment, With No Related Allowance Recorded [Abstract] | |||||
Unpaid Principal Balance | $ 11,250 | $ 8,989 | |||
Principal Balance Adjustment | 1,561 | 727 | |||
Unpaid Book Balance | 9,689 | 8,262 | |||
Accrued Interest/Origination Fees | 1,143 | 657 | |||
Recorded Investment | 10,832 | 8,919 | |||
Loans and Leases, Evaluated Individually For Impairment, With Related Allowance Recorded [Abstract] | |||||
Unpaid Principal Balance | 14,106 | 14,707 | |||
Principal Balance Adjustment | [1] | 11 | 11 | ||
Unpaid Book Balance | 14,095 | 14,696 | |||
Accrued Interest/Origination Fees | 0 | 65 | |||
Recorded Investment | 14,095 | 14,761 | |||
Related Allocation of General Allowance | 548 | 575 | |||
Mortgage | Purchased | |||||
Loans and Leases, Evaluated Individually For Impairment, With No Related Allowance Recorded [Abstract] | |||||
Unpaid Principal Balance | 5,273 | 5,852 | |||
Principal Balance Adjustment | 2,063 | 2,132 | |||
Unpaid Book Balance | 3,210 | 3,720 | |||
Accrued Interest/Origination Fees | 129 | 110 | |||
Recorded Investment | 3,339 | 3,830 | |||
Loans and Leases, Evaluated Individually For Impairment, With Related Allowance Recorded [Abstract] | |||||
Unpaid Principal Balance | 1,453 | 1,976 | |||
Principal Balance Adjustment | [1] | 29 | 44 | ||
Unpaid Book Balance | 1,424 | 1,932 | |||
Accrued Interest/Origination Fees | 13 | 5 | |||
Recorded Investment | 1,437 | 1,937 | |||
Related Allocation of General Allowance | 38 | 46 | |||
Multifamily real estate secured | In-house originated | |||||
Loans and Leases, Evaluated Individually For Impairment, With Related Allowance Recorded [Abstract] | |||||
Unpaid Principal Balance | 4,170 | 795 | |||
Principal Balance Adjustment | [1] | 95 | 4 | ||
Unpaid Book Balance | 4,075 | 791 | |||
Accrued Interest/Origination Fees | 147 | 65 | |||
Recorded Investment | 4,222 | 856 | |||
Related Allocation of General Allowance | 19 | 1 | |||
Multifamily real estate secured | Purchased | |||||
Loans and Leases, Evaluated Individually For Impairment, With No Related Allowance Recorded [Abstract] | |||||
Unpaid Principal Balance | 494 | 2,520 | |||
Principal Balance Adjustment | 206 | 1,093 | |||
Unpaid Book Balance | 288 | 1,427 | |||
Accrued Interest/Origination Fees | 0 | 0 | |||
Recorded Investment | 288 | 1,427 | |||
Commercial real estate secured | Purchased | |||||
Loans and Leases, Evaluated Individually For Impairment, With No Related Allowance Recorded [Abstract] | |||||
Unpaid Principal Balance | 629 | ||||
Principal Balance Adjustment | 375 | ||||
Unpaid Book Balance | 254 | ||||
Accrued Interest/Origination Fees | 61 | ||||
Recorded Investment | 315 | ||||
Auto and RV secured | In-house originated | |||||
Loans and Leases, Evaluated Individually For Impairment, With No Related Allowance Recorded [Abstract] | |||||
Unpaid Principal Balance | 666 | 902 | |||
Principal Balance Adjustment | 515 | 663 | |||
Unpaid Book Balance | 151 | 239 | |||
Accrued Interest/Origination Fees | 14 | 10 | |||
Recorded Investment | 165 | 249 | |||
Loans and Leases, Evaluated Individually For Impairment, With Related Allowance Recorded [Abstract] | |||||
Unpaid Principal Balance | 55 | 46 | |||
Principal Balance Adjustment | [1] | 8 | 7 | ||
Unpaid Book Balance | 47 | 39 | |||
Accrued Interest/Origination Fees | 1 | 4 | |||
Recorded Investment | 48 | 43 | |||
Related Allocation of General Allowance | 1 | 2 | |||
Home equity | In-house originated | |||||
Loans and Leases, Evaluated Individually For Impairment, With Related Allowance Recorded [Abstract] | |||||
Unpaid Principal Balance | 46 | 35 | |||
Principal Balance Adjustment | [1] | 2 | 2 | ||
Unpaid Book Balance | 44 | 33 | |||
Accrued Interest/Origination Fees | 0 | 0 | |||
Recorded Investment | 44 | 33 | |||
Related Allocation of General Allowance | 1 | 1 | |||
Other | |||||
Loans and Leases, Evaluated Individually For Impairment, With No Related Allowance Recorded [Abstract] | |||||
Unpaid Principal Balance | 27 | ||||
Principal Balance Adjustment | 27 | ||||
Unpaid Book Balance | 0 | ||||
Accrued Interest/Origination Fees | 0 | ||||
Recorded Investment | 0 | ||||
Loans and Leases, Evaluated Individually For Impairment, With Related Allowance Recorded [Abstract] | |||||
Unpaid Principal Balance | 278 | 676 | |||
Principal Balance Adjustment | [1] | 0 | 0 | ||
Unpaid Book Balance | 278 | 676 | |||
Accrued Interest/Origination Fees | 0 | 0 | |||
Recorded Investment | 278 | 676 | |||
Related Allocation of General Allowance | $ 44 | $ 67 | |||
|
LOANS, LEASES & ALLOWANCE FOR LOANS AND LEASE LOSSES - ALLOWANCE FOR LOAN LOSS BY PORTFOLIO SEGMENT (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2017 |
Jun. 30, 2016 |
||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending allowance balance attributable to loans and leases, individually evaluated for impairment, general allowance | $ 651 | $ 692 | |||
Ending allowance balance attributable to loans and leases, individually evaluated for impairment, specific allowance | 0 | 0 | |||
Ending allowance balance attributable to loans and leases, collectively evaluated for impairment | 45,336 | 35,134 | |||
Total ending allowance balance | 45,987 | 35,826 | |||
Loans and leases individually evaluated for impairment | [1] | 33,301 | 32,069 | ||
Loans and leases collectively evaluated for impairment | 7,062,457 | 6,370,390 | |||
Principal loan and lease balance | 7,095,758 | 6,402,459 | |||
Unaccreted discounts and loan and lease fees | (29,071) | (11,954) | |||
Accrued interest receivable | 19,278 | 22,831 | |||
Total recorded investment in loans and leases | $ 7,085,965 | $ 6,413,336 | |||
Threshold period for TDRs to be considered performing | 6 months | 6 months | |||
Mortgage | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending allowance balance attributable to loans and leases, individually evaluated for impairment, general allowance | $ 586 | $ 621 | |||
Ending allowance balance attributable to loans and leases, individually evaluated for impairment, specific allowance | 0 | 0 | |||
Ending allowance balance attributable to loans and leases, collectively evaluated for impairment | 18,980 | 18,045 | |||
Total ending allowance balance | 19,566 | 18,666 | |||
Loans and leases individually evaluated for impairment | [1] | 28,418 | 28,610 | ||
Loans and leases collectively evaluated for impairment | 3,781,285 | 3,649,910 | |||
Principal loan and lease balance | 3,809,703 | 3,678,520 | |||
Unaccreted discounts and loan and lease fees | 11,066 | 13,142 | |||
Accrued interest receivable | 8,398 | 12,460 | |||
Total recorded investment in loans and leases | 3,829,167 | 3,704,122 | |||
Home equity | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending allowance balance attributable to loans and leases, individually evaluated for impairment, general allowance | 1 | 1 | |||
Ending allowance balance attributable to loans and leases, individually evaluated for impairment, specific allowance | 0 | 0 | |||
Ending allowance balance attributable to loans and leases, collectively evaluated for impairment | 22 | 22 | |||
Total ending allowance balance | 23 | 23 | |||
Loans and leases individually evaluated for impairment | [1] | 44 | 33 | ||
Loans and leases collectively evaluated for impairment | 2,586 | 2,437 | |||
Principal loan and lease balance | 2,630 | 2,470 | |||
Unaccreted discounts and loan and lease fees | 29 | 24 | |||
Accrued interest receivable | 3 | 2 | |||
Total recorded investment in loans and leases | 2,662 | 2,496 | |||
Warehouse and other | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending allowance balance attributable to loans and leases, individually evaluated for impairment, general allowance | 0 | 0 | |||
Ending allowance balance attributable to loans and leases, individually evaluated for impairment, specific allowance | 0 | 0 | |||
Ending allowance balance attributable to loans and leases, collectively evaluated for impairment | 2,133 | 2,685 | |||
Total ending allowance balance | 2,133 | 2,685 | |||
Loans and leases individually evaluated for impairment | [1] | 0 | 0 | ||
Loans and leases collectively evaluated for impairment | 391,010 | 537,714 | |||
Principal loan and lease balance | 391,010 | 537,714 | |||
Unaccreted discounts and loan and lease fees | (1,865) | (2,200) | |||
Accrued interest receivable | 1,504 | 1,870 | |||
Total recorded investment in loans and leases | 390,649 | 537,384 | |||
Multifamily real estate secured | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending allowance balance attributable to loans and leases, individually evaluated for impairment, general allowance | 19 | 1 | |||
Ending allowance balance attributable to loans and leases, individually evaluated for impairment, specific allowance | 0 | 0 | |||
Ending allowance balance attributable to loans and leases, collectively evaluated for impairment | 4,362 | 3,937 | |||
Total ending allowance balance | 4,381 | 3,938 | |||
Loans and leases individually evaluated for impairment | [1] | 4,363 | 2,218 | ||
Loans and leases collectively evaluated for impairment | 1,568,631 | 1,370,998 | |||
Principal loan and lease balance | 1,572,994 | 1,373,216 | |||
Unaccreted discounts and loan and lease fees | 4,746 | 3,957 | |||
Accrued interest receivable | 4,862 | 5,409 | |||
Total recorded investment in loans and leases | 1,582,602 | 1,382,582 | |||
Commercial real estate secured | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending allowance balance attributable to loans and leases, individually evaluated for impairment, general allowance | 0 | 0 | |||
Ending allowance balance attributable to loans and leases, individually evaluated for impairment, specific allowance | 0 | 0 | |||
Ending allowance balance attributable to loans and leases, collectively evaluated for impairment | 989 | 882 | |||
Total ending allowance balance | 989 | 882 | |||
Loans and leases individually evaluated for impairment | [1] | 0 | 254 | ||
Loans and leases collectively evaluated for impairment | 155,621 | 121,492 | |||
Principal loan and lease balance | 155,621 | 121,746 | |||
Unaccreted discounts and loan and lease fees | 747 | 542 | |||
Accrued interest receivable | 385 | 389 | |||
Total recorded investment in loans and leases | 156,753 | 122,677 | |||
Auto and RV secured | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending allowance balance attributable to loans and leases, individually evaluated for impairment, general allowance | 1 | 2 | |||
Ending allowance balance attributable to loans and leases, individually evaluated for impairment, specific allowance | 0 | 0 | |||
Ending allowance balance attributable to loans and leases, collectively evaluated for impairment | 2,144 | 1,613 | |||
Total ending allowance balance | 2,145 | 1,615 | |||
Loans and leases individually evaluated for impairment | [1] | 198 | 278 | ||
Loans and leases collectively evaluated for impairment | 130,865 | 73,398 | |||
Principal loan and lease balance | 131,063 | 73,676 | |||
Unaccreted discounts and loan and lease fees | 1,745 | 975 | |||
Accrued interest receivable | 246 | 169 | |||
Total recorded investment in loans and leases | 133,054 | 74,820 | |||
Factoring | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending allowance balance attributable to loans and leases, individually evaluated for impairment, general allowance | 0 | 0 | |||
Ending allowance balance attributable to loans and leases, individually evaluated for impairment, specific allowance | 0 | 0 | |||
Ending allowance balance attributable to loans and leases, collectively evaluated for impairment | 379 | 245 | |||
Total ending allowance balance | 379 | 245 | |||
Loans and leases individually evaluated for impairment | [1] | 0 | 0 | ||
Loans and leases collectively evaluated for impairment | 151,319 | 98,275 | |||
Principal loan and lease balance | 151,319 | 98,275 | |||
Unaccreted discounts and loan and lease fees | (46,221) | (30,533) | |||
Accrued interest receivable | 198 | 327 | |||
Total recorded investment in loans and leases | 105,296 | 68,069 | |||
Commercial and Industrial | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending allowance balance attributable to loans and leases, individually evaluated for impairment, general allowance | 0 | 0 | |||
Ending allowance balance attributable to loans and leases, individually evaluated for impairment, specific allowance | 0 | 0 | |||
Ending allowance balance attributable to loans and leases, collectively evaluated for impairment | 9,493 | 7,630 | |||
Total ending allowance balance | 9,493 | 7,630 | |||
Loans and leases individually evaluated for impairment | [1] | 0 | 0 | ||
Loans and leases collectively evaluated for impairment | 868,279 | 514,300 | |||
Principal loan and lease balance | 868,279 | 514,300 | |||
Unaccreted discounts and loan and lease fees | 758 | 2,172 | |||
Accrued interest receivable | 3,679 | 2,202 | |||
Total recorded investment in loans and leases | 872,716 | 518,674 | |||
Other | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending allowance balance attributable to loans and leases, individually evaluated for impairment, general allowance | 44 | 67 | |||
Ending allowance balance attributable to loans and leases, individually evaluated for impairment, specific allowance | 0 | 0 | |||
Ending allowance balance attributable to loans and leases, collectively evaluated for impairment | 6,834 | 75 | |||
Total ending allowance balance | 6,878 | 142 | |||
Loans and leases individually evaluated for impairment | [1] | 278 | 676 | ||
Loans and leases collectively evaluated for impairment | 12,861 | 1,866 | |||
Principal loan and lease balance | 13,139 | 2,542 | |||
Unaccreted discounts and loan and lease fees | (76) | (33) | |||
Accrued interest receivable | 3 | 3 | |||
Total recorded investment in loans and leases | $ 13,066 | $ 2,512 | |||
|
LOANS, LEASES & ALLOWANCE FOR LOANS AND LEASE LOSSES - NONPERFORMING LOANS (Details) - Nonperforming - USD ($) $ in Thousands |
Mar. 31, 2017 |
Jun. 30, 2016 |
---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-performing loans and leases secured by real estate | $ 32,825 | $ 30,905 |
Total non-performing loans and leases | $ 33,301 | $ 31,859 |
Nonperforming loans to total loans, percent | 0.47% | 0.50% |
Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-performing loans and leases | $ 23,784 | $ 22,958 |
Mortgage | Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-performing loans and leases | 4,634 | 5,442 |
Home equity | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-performing loans and leases | 44 | 33 |
Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-performing loans and leases | 4,075 | 791 |
Multifamily real estate secured | Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-performing loans and leases | 288 | 1,427 |
Commercial real estate secured | Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-performing loans and leases | 0 | 254 |
Auto and RV secured | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-performing loans and leases | 198 | 278 |
Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-performing loans and leases | $ 278 | $ 676 |
LOANS, LEASES & ALLOWANCE FOR LOANS AND LEASE LOSSES - NONPERFORMING LOANS NARRATIVE (Details) - loan |
9 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2017 |
Jun. 30, 2016 |
|
Financing Receivable, Impaired [Line Items] | ||
Number of loans and leases past due over 90 days and still accruing | 0 | |
Ratio of nonperforming loans and leases considered TDRs | 4.99% | 9.63% |
Threshold period for TDRs to be considered performing | 6 months | 6 months |
Nonperforming | Mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Ratio of non-performing loans and leases that are single family mortgage | 85.34% | |
Percentage of aggregate single family first mortgage loans and leases written down | 52.60% |
LOANS, LEASES & ALLOWANCE FOR LOANS AND LEASE LOSSES - UNPAID PRINCIPAL BALANCE FOR PERFORMING AND NONPERFORMING (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Jun. 30, 2016 |
||
---|---|---|---|---|
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | $ 7,095,758 | $ 6,402,459 | ||
Performing | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 7,062,457 | 6,370,600 | ||
Nonperforming | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 33,301 | 31,859 | ||
Mortgage | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 3,809,703 | 3,678,520 | ||
Mortgage | Performing | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 3,781,285 | 3,650,120 | ||
Mortgage | Nonperforming | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 28,418 | 28,400 | ||
Home equity | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 2,630 | 2,470 | ||
Home equity | Performing | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 2,586 | 2,437 | ||
Home equity | Nonperforming | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 44 | 33 | ||
Warehouse and other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | [1] | 391,010 | 537,714 | |
Warehouse and other | Performing | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 391,010 | 537,714 | ||
Warehouse and other | Nonperforming | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 0 | 0 | ||
Multifamily real estate secured | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 1,572,994 | 1,373,216 | ||
Multifamily real estate secured | Performing | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 1,568,631 | 1,370,998 | ||
Multifamily real estate secured | Nonperforming | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 4,363 | 2,218 | ||
Commercial real estate secured | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 155,621 | 121,746 | ||
Commercial real estate secured | Performing | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 155,621 | 121,492 | ||
Commercial real estate secured | Nonperforming | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 0 | 254 | ||
Auto and RV secured | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 131,063 | 73,676 | ||
Auto and RV secured | Performing | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 130,865 | 73,398 | ||
Auto and RV secured | Nonperforming | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 198 | 278 | ||
Factoring | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 151,319 | 98,275 | ||
Factoring | Performing | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 151,319 | 98,275 | ||
Factoring | Nonperforming | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 0 | 0 | ||
Commercial and Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 868,279 | 514,300 | ||
Commercial and Industrial | Performing | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 868,279 | 514,300 | ||
Commercial and Industrial | Nonperforming | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 0 | 0 | ||
Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 13,139 | 2,542 | ||
Other | Performing | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 12,861 | 1,866 | ||
Other | Nonperforming | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | $ 278 | $ 676 | ||
|
LOANS, LEASES & ALLOWANCE FOR LOANS AND LEASE LOSSES - PERFORMING AND NONPERFORMING BY CLASS AND SOURCE (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Jun. 30, 2016 |
---|---|---|
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | $ 7,095,758 | $ 6,402,459 |
Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 7,062,457 | 6,370,600 |
Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 33,301 | 31,859 |
Single Family Mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 3,809,703 | 3,678,520 |
Single Family Mortgage | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 3,781,285 | 3,650,120 |
Single Family Mortgage | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 28,418 | 28,400 |
Single Family Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 3,748,553 | 3,601,587 |
Single Family Mortgage | In-house originated | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 3,724,769 | 3,578,629 |
Single Family Mortgage | In-house originated | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 23,784 | 22,958 |
Single Family Mortgage | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 61,150 | 76,933 |
Single Family Mortgage | Purchased | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 56,516 | 71,491 |
Single Family Mortgage | Purchased | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 4,634 | 5,442 |
Multifamily real estate secured | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,572,994 | 1,373,216 |
Multifamily real estate secured | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,568,631 | 1,370,998 |
Multifamily real estate secured | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 4,363 | 2,218 |
Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,484,935 | 1,271,170 |
Multifamily real estate secured | In-house originated | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 1,480,860 | 1,270,379 |
Multifamily real estate secured | In-house originated | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 4,075 | 791 |
Multifamily real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 88,059 | 102,046 |
Multifamily real estate secured | Purchased | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 87,771 | 100,619 |
Multifamily real estate secured | Purchased | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 288 | 1,427 |
Commercial real estate secured | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 155,621 | 121,746 |
Commercial real estate secured | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 155,621 | 121,492 |
Commercial real estate secured | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 254 |
Commercial real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 143,715 | 109,370 |
Commercial real estate secured | In-house originated | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 143,715 | 109,370 |
Commercial real estate secured | In-house originated | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 0 | 0 |
Commercial real estate secured | Purchased | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 11,906 | 12,376 |
Commercial real estate secured | Purchased | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | 11,906 | 12,122 |
Commercial real estate secured | Purchased | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans and leases | $ 0 | $ 254 |
LOANS, LEASES & ALLOWANCE FOR LOANS AND LEASE LOSSES - TROUBLED DEBT RESTRUCTURINGS BY CLASS (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
Jun. 30, 2016 |
|
Financing Receivable, Modifications [Line Items] | |||||
Performing loans temporarily modified as TDR | $ 0 | $ 0 | $ 210 | ||
Non-performing loans and leases | 33,301 | 33,301 | 31,859 | ||
Total impaired loans and leases | 33,301 | 33,301 | 32,069 | ||
Interest income recognized on performing TDRs | 1 | $ 2 | 7 | $ 6 | |
Average balances of performing TDRs | 103 | 213 | 156 | 215 | |
Average balances of impaired loans | 34,036 | 25,439 | 35,595 | 28,125 | |
Mortgage | |||||
Financing Receivable, Modifications [Line Items] | |||||
Performing loans temporarily modified as TDR | 0 | 0 | 210 | ||
Non-performing loans and leases | 28,418 | 28,418 | 28,400 | ||
Total impaired loans and leases | 28,418 | 28,418 | 28,610 | ||
Interest income recognized on performing TDRs | 1 | 2 | 7 | 6 | |
Average balances of performing TDRs | 103 | 213 | 156 | 215 | |
Average balances of impaired loans | 28,384 | 19,977 | 30,184 | 21,559 | |
Home equity | |||||
Financing Receivable, Modifications [Line Items] | |||||
Performing loans temporarily modified as TDR | 0 | 0 | 0 | ||
Non-performing loans and leases | 44 | 44 | 33 | ||
Total impaired loans and leases | 44 | 44 | 33 | ||
Interest income recognized on performing TDRs | 0 | 0 | 0 | 0 | |
Average balances of performing TDRs | 0 | 0 | 0 | 0 | |
Average balances of impaired loans | 46 | 21 | 39 | 15 | |
Warehouse and other | |||||
Financing Receivable, Modifications [Line Items] | |||||
Performing loans temporarily modified as TDR | 0 | 0 | 0 | ||
Non-performing loans and leases | 0 | 0 | 0 | ||
Total impaired loans and leases | 0 | 0 | 0 | ||
Interest income recognized on performing TDRs | 0 | 0 | 0 | 0 | |
Average balances of performing TDRs | 0 | 0 | 0 | 0 | |
Average balances of impaired loans | 0 | 0 | 0 | 0 | |
Multifamily real estate secured | |||||
Financing Receivable, Modifications [Line Items] | |||||
Performing loans temporarily modified as TDR | 0 | 0 | 0 | ||
Non-performing loans and leases | 4,363 | 4,363 | 2,218 | ||
Total impaired loans and leases | 4,363 | 4,363 | 2,218 | ||
Interest income recognized on performing TDRs | 0 | 0 | 0 | 0 | |
Average balances of performing TDRs | 0 | 0 | 0 | 0 | |
Average balances of impaired loans | 4,921 | 4,787 | 4,448 | 5,064 | |
Commercial real estate secured | |||||
Financing Receivable, Modifications [Line Items] | |||||
Performing loans temporarily modified as TDR | 0 | 0 | 0 | ||
Non-performing loans and leases | 0 | 0 | 254 | ||
Total impaired loans and leases | 0 | 0 | 254 | ||
Interest income recognized on performing TDRs | 0 | 0 | 0 | 0 | |
Average balances of performing TDRs | 0 | 0 | 0 | 0 | |
Average balances of impaired loans | 116 | 372 | 180 | 1,147 | |
Auto and RV secured | |||||
Financing Receivable, Modifications [Line Items] | |||||
Performing loans temporarily modified as TDR | 0 | 0 | 0 | ||
Non-performing loans and leases | 198 | 198 | 278 | ||
Total impaired loans and leases | 198 | 198 | 278 | ||
Interest income recognized on performing TDRs | 0 | 0 | 0 | 0 | |
Average balances of performing TDRs | 0 | 0 | 0 | 0 | |
Average balances of impaired loans | 207 | 282 | $ 250 | 340 | |
Auto and RV secured | Interest-only Payments | Minimum | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing receivable, modifications, repayment period by borrower | 6 months | ||||
Auto and RV secured | Interest-only Payments | Maximum | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing receivable, modifications, repayment period by borrower | 1 year | ||||
Factoring | |||||
Financing Receivable, Modifications [Line Items] | |||||
Performing loans temporarily modified as TDR | 0 | $ 0 | 0 | ||
Non-performing loans and leases | 0 | 0 | 0 | ||
Total impaired loans and leases | 0 | 0 | 0 | ||
Interest income recognized on performing TDRs | 0 | 0 | 0 | 0 | |
Average balances of performing TDRs | 0 | 0 | 0 | 0 | |
Average balances of impaired loans | 0 | 0 | 0 | 0 | |
Commercial and Industrial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Performing loans temporarily modified as TDR | 0 | 0 | 0 | ||
Non-performing loans and leases | 0 | 0 | 0 | ||
Total impaired loans and leases | 0 | 0 | 0 | ||
Interest income recognized on performing TDRs | 0 | 0 | 0 | 0 | |
Average balances of performing TDRs | 0 | 0 | 0 | 0 | |
Average balances of impaired loans | 0 | 0 | 0 | 0 | |
Other | |||||
Financing Receivable, Modifications [Line Items] | |||||
Performing loans temporarily modified as TDR | 0 | 0 | 0 | ||
Non-performing loans and leases | 278 | 278 | 676 | ||
Total impaired loans and leases | 278 | 278 | $ 676 | ||
Interest income recognized on performing TDRs | 0 | 0 | 0 | 0 | |
Average balances of performing TDRs | 0 | 0 | 0 | 0 | |
Average balances of impaired loans | $ 362 | $ 0 | $ 494 | $ 0 | |
Single Family, Multifamily and Commercial Real Estate | Stated Interest Rate Reduction and Delinquent Property Taxes | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing receivable, modifications, repayment period by borrower | 1 year |
LOANS, LEASES & ALLOWANCE FOR LOANS AND LEASE LOSSES - LOANS BY CREDIT QUALITY INDICATOR (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Jun. 30, 2016 |
||
---|---|---|---|---|
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | $ 7,095,758 | $ 6,402,459 | ||
As a percentage of total gross loans and leases | 100.00% | 100.00% | ||
Mortgage | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | $ 3,809,703 | $ 3,678,520 | ||
Mortgage | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 3,748,553 | 3,601,587 | ||
Mortgage | Purchased | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 61,150 | 76,933 | ||
Home equity | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 2,630 | 2,470 | ||
Home equity | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 2,630 | 2,470 | ||
Warehouse and other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | [1] | 391,010 | 537,714 | |
Warehouse and other | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 391,010 | 537,714 | ||
Multifamily real estate secured | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 1,572,994 | 1,373,216 | ||
Multifamily real estate secured | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 1,484,935 | 1,271,170 | ||
Multifamily real estate secured | Purchased | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 88,059 | 102,046 | ||
Commercial real estate secured | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 155,621 | 121,746 | ||
Commercial real estate secured | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 143,715 | 109,370 | ||
Commercial real estate secured | Purchased | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 11,906 | 12,376 | ||
Auto and RV secured | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 131,063 | 73,676 | ||
Auto and RV secured | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 131,063 | 73,676 | ||
Factoring | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 151,319 | 98,275 | ||
Commercial and Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 868,279 | 514,300 | ||
Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 13,139 | 2,542 | ||
Pass | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | $ 7,041,912 | $ 6,336,977 | ||
As a percentage of total gross loans and leases | 99.20% | 99.00% | ||
Pass | Mortgage | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | $ 3,713,948 | $ 3,563,430 | ||
Pass | Mortgage | Purchased | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 55,731 | 71,111 | ||
Pass | Home equity | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 2,585 | 2,420 | ||
Pass | Warehouse and other | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 390,515 | 534,868 | ||
Pass | Multifamily real estate secured | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 1,478,870 | 1,262,384 | ||
Pass | Multifamily real estate secured | Purchased | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 86,749 | 96,792 | ||
Pass | Commercial real estate secured | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 143,715 | 109,370 | ||
Pass | Commercial real estate secured | Purchased | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 9,928 | 10,110 | ||
Pass | Auto and RV secured | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 130,800 | 73,192 | ||
Pass | Factoring | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 151,319 | 98,275 | ||
Pass | Commercial and Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 868,082 | 513,310 | ||
Pass | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 9,670 | 1,715 | ||
Special Mention | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | $ 18,709 | $ 23,551 | ||
As a percentage of total gross loans and leases | 0.30% | 0.40% | ||
Special Mention | Mortgage | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | $ 10,821 | $ 10,938 | ||
Special Mention | Mortgage | Purchased | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 487 | 0 | ||
Special Mention | Home equity | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 0 | 17 | ||
Special Mention | Warehouse and other | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 0 | 2,846 | ||
Special Mention | Multifamily real estate secured | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 1,990 | 4,721 | ||
Special Mention | Multifamily real estate secured | Purchased | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 0 | 2,769 | ||
Special Mention | Commercial real estate secured | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 0 | 0 | ||
Special Mention | Commercial real estate secured | Purchased | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 1,978 | 2,012 | ||
Special Mention | Auto and RV secured | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 45 | 97 | ||
Special Mention | Factoring | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 0 | 0 | ||
Special Mention | Commercial and Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 197 | 0 | ||
Special Mention | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 3,191 | 151 | ||
Substandard | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | $ 35,137 | $ 41,931 | ||
As a percentage of total gross loans and leases | 0.50% | 0.60% | ||
Substandard | Mortgage | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | $ 23,784 | $ 27,219 | ||
Substandard | Mortgage | Purchased | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 4,932 | 5,822 | ||
Substandard | Home equity | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 45 | 33 | ||
Substandard | Warehouse and other | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 495 | 0 | ||
Substandard | Multifamily real estate secured | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 4,075 | 4,065 | ||
Substandard | Multifamily real estate secured | Purchased | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 1,310 | 2,485 | ||
Substandard | Commercial real estate secured | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 0 | 0 | ||
Substandard | Commercial real estate secured | Purchased | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 0 | 254 | ||
Substandard | Auto and RV secured | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 218 | 387 | ||
Substandard | Factoring | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 0 | 0 | ||
Substandard | Commercial and Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 0 | 990 | ||
Substandard | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 278 | 676 | ||
Doubtful | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | $ 0 | $ 0 | ||
As a percentage of total gross loans and leases | 0.00% | 0.00% | ||
Doubtful | Mortgage | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | $ 0 | $ 0 | ||
Doubtful | Mortgage | Purchased | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 0 | 0 | ||
Doubtful | Home equity | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 0 | 0 | ||
Doubtful | Warehouse and other | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 0 | 0 | ||
Doubtful | Multifamily real estate secured | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 0 | 0 | ||
Doubtful | Multifamily real estate secured | Purchased | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 0 | 0 | ||
Doubtful | Commercial real estate secured | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 0 | 0 | ||
Doubtful | Commercial real estate secured | Purchased | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 0 | 0 | ||
Doubtful | Auto and RV secured | In-house originated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 0 | 0 | ||
Doubtful | Factoring | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 0 | 0 | ||
Doubtful | Commercial and Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | 0 | 0 | ||
Doubtful | Other | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Total gross loans and leases | $ 0 | $ 0 | ||
|
LOANS, LEASES & ALLOWANCE FOR LOANS AND LEASE LOSSES - PAST DUE LOANS (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Jun. 30, 2016 |
---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 42,671 | $ 38,046 |
As a % of total gross loans and leases | 0.60% | 0.59% |
Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 30,320 | $ 28,780 |
Mortgage | Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 3,221 | 3,110 |
Home equity | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 43 | 46 |
Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 4,075 | 4,385 |
Commercial real estate secured | Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 254 | |
Auto and RV secured | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 264 | |
Auto and RV secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 440 | |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 142 | |
Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 4,253 | 889 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 7,018 | $ 9,762 |
As a % of total gross loans and leases | 0.10% | 0.15% |
30-59 Days Past Due | Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 5,317 | $ 5,192 |
30-59 Days Past Due | Mortgage | Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 690 | 572 |
30-59 Days Past Due | Home equity | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
30-59 Days Past Due | Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 3,594 |
30-59 Days Past Due | Commercial real estate secured | Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | |
30-59 Days Past Due | Auto and RV secured | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 227 | |
30-59 Days Past Due | Auto and RV secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 200 | |
30-59 Days Past Due | Commercial and Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 142 | |
30-59 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 784 | 62 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 5,401 | $ 2,170 |
As a % of total gross loans and leases | 0.07% | 0.03% |
60-89 Days Past Due | Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 1,649 | $ 1,866 |
60-89 Days Past Due | Mortgage | Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 44 | 0 |
60-89 Days Past Due | Home equity | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 17 |
60-89 Days Past Due | Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
60-89 Days Past Due | Commercial real estate secured | Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | |
60-89 Days Past Due | Auto and RV secured | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 22 | |
60-89 Days Past Due | Auto and RV secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 136 | |
60-89 Days Past Due | Commercial and Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | |
60-89 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 3,191 | 151 |
90 Plus Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 30,252 | $ 26,114 |
As a % of total gross loans and leases | 0.43% | 0.41% |
90 Plus Days Past Due | Mortgage | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 23,354 | $ 21,722 |
90 Plus Days Past Due | Mortgage | Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 2,487 | 2,538 |
90 Plus Days Past Due | Home equity | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 43 | 29 |
90 Plus Days Past Due | Multifamily real estate secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 4,075 | 791 |
90 Plus Days Past Due | Commercial real estate secured | Purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 254 | |
90 Plus Days Past Due | Auto and RV secured | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 15 | |
90 Plus Days Past Due | Auto and RV secured | In-house originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 104 | |
90 Plus Days Past Due | Commercial and Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | |
90 Plus Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 278 | $ 676 |
SUBORNIDATED NOTES AND DEBENTURES (Details) - USD ($) |
1 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 13, 2004 |
Mar. 31, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Debt Instrument [Line Items] | ||||
Subordinated notes issues | $ 51,000,000 | $ 51,000,000 | ||
Interest rate per annum (as a percentage) | 6.25% | 6.25% | ||
Proceeds from issuance of subordinated notes and debentures and other | $ 51,000,000 | $ 0 | $ 51,000,000 | |
Debt issuance costs and discount (as a percentage) | 3.15% | 3.15% | ||
Trust preferred securities | $ 5,000,000 | |||
Junior Subordinated Debt | ||||
Debt Instrument [Line Items] | ||||
Junior subordinated debenture | $ 5,155,000 | |||
Variable rate basis | P3M | |||
Basis spread on variable rate (as a percentage) | 2.40% | |||
Effective rate (as a percentage) | 3.45% |
EQUITY AND STOCK-BASED COMPENSATION - NARRATIVE (Details) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Mar. 31, 2017
USD ($)
stock_incentive_plan
shares
|
Mar. 31, 2016
USD ($)
|
Mar. 31, 2017
USD ($)
stock_incentive_plan
shares
|
Mar. 31, 2016
USD ($)
shares
|
Jun. 30, 2016
shares
|
Mar. 17, 2016
USD ($)
|
|
Stock Award Compensation Expense | ||||||
Stock repurchase program, maximum amount authorized | $ 100,000,000 | |||||
Stock Options | ||||||
Stock Award Compensation Expense | ||||||
Stock options outstanding (in shares) | shares | 0 | 0 | 0 | |||
Restricted Stock and Restricted Stock Units | ||||||
Stock Award Compensation Expense | ||||||
Unrecognized compensation expense | $ 26,178,000 | $ 26,178,000 | ||||
Share-based compensation expense | 3,610,000 | $ 3,353,000 | 10,060,000 | $ 8,470,000 | ||
Tax benefit from stock-based compensation | 1,538,000 | 1,394,000 | $ 4,245,000 | $ 3,532,000 | ||
Restricted Stock and Restricted Stock Units | Employees and Directors | ||||||
Stock Award Compensation Expense | ||||||
Restricted stock grants (in shares) | shares | 843,056 | 615,362 | ||||
Restricted Stock Units (RSUs) | ||||||
Stock Award Compensation Expense | ||||||
Vesting period for options granted | 3 years | |||||
Restricted stock grants (in shares) | shares | 843,056 | 615,834 | ||||
Total fair value of shares vested in the period | $ 164,000 | $ 155,000 | $ 5,453,000 | $ 7,303,000 | ||
Restricted Stock Units (RSUs) | Employees and Directors | Anniversary 1 | ||||||
Stock Award Compensation Expense | ||||||
Restricted stock grants, vesting percentage | 33.33% | |||||
Restricted Stock Units (RSUs) | Employees and Directors | Anniversary 2 | ||||||
Stock Award Compensation Expense | ||||||
Restricted stock grants, vesting percentage | 33.33% | |||||
Restricted Stock Units (RSUs) | Employees and Directors | Anniversary 3 | ||||||
Stock Award Compensation Expense | ||||||
Restricted stock grants, vesting percentage | 33.33% | |||||
Restricted Stock Units (RSUs) | CEO | Anniversary 1 | ||||||
Stock Award Compensation Expense | ||||||
Restricted stock grants, vesting percentage | 25.00% | |||||
Restricted Stock Units (RSUs) | CEO | Anniversary 2 | ||||||
Stock Award Compensation Expense | ||||||
Restricted stock grants, vesting percentage | 25.00% | |||||
Restricted Stock Units (RSUs) | CEO | Anniversary 3 | ||||||
Stock Award Compensation Expense | ||||||
Restricted stock grants, vesting percentage | 25.00% | |||||
Restricted Stock Units (RSUs) | CEO | Anniversary 4 | ||||||
Stock Award Compensation Expense | ||||||
Restricted stock grants, vesting percentage | 25.00% | |||||
Plans | ||||||
Stock Award Compensation Expense | ||||||
Number of stock incentive plans | stock_incentive_plan | 2 | 2 | ||||
Contractual term for options granted under plan | 10 years | |||||
Plans | Minimum | ||||||
Stock Award Compensation Expense | ||||||
Vesting period for options granted | 3 years | |||||
Plans | Maximum | ||||||
Stock Award Compensation Expense | ||||||
Vesting period for options granted | 5 years | |||||
2014 Stock Incentive Plan | Stock Options | ||||||
Stock Award Compensation Expense | ||||||
Share reserved for issuance (in shares) | shares | 3,680,000 | 3,680,000 |
EQUITY AND STOCK-BASED COMPENSATION - UNRECOGNIZED COMPENSATION EXPENSE RELATED TO NON-VESTED AWARDS (Details) - Restricted Stock and Restricted Stock Units $ in Thousands |
Mar. 31, 2017
USD ($)
|
---|---|
Stock Award Compensation Expense | |
For the remainder of 2017 | $ 3,705 |
2018 | 12,076 |
2019 | 7,911 |
2020 | 2,486 |
Unrecognized compensation expense, total | $ 26,178 |
EQUITY AND STOCK-BASED COMPENSATION - CHANGES IN RESTRICTED STOCK UNIT GRANTS (Details) - Restricted Stock Units (RSUs) - $ / shares |
9 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2017 |
Jun. 30, 2016 |
|
Restricted Stock Unit Shares | ||
Non-vested balance, beginning, Shares | 1,059,726 | 1,135,088 |
Granted, Shares | 843,056 | 615,834 |
Vested, Shares | (253,653) | (536,528) |
Canceled, Shares | (69,040) | (154,668) |
Non-vested balance, ending, Shares | 1,580,089 | 1,059,726 |
Weighted-Average Grant-Date Fair Value | ||
Non-vested balance, beginning, Weighted Average Grant Date Fair Value (in dollars per share) | $ 22.53 | $ 17.01 |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | 21.13 | 26.60 |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | 20.29 | 16.14 |
Canceled, Weighted Average Grant Date Fair Value (in dollars per share) | 20.02 | 18.70 |
Non-vested balance, ending, Weighted Average Grant Date Fair Value (in dollars per share) | $ 22.25 | $ 22.53 |
EARNINGS PER SHARE ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Earnings Per Share [Abstract] | ||||
Net income | $ 40,994 | $ 35,914 | $ 102,191 | $ 89,564 |
Preferred stock dividends | (77) | (77) | (232) | (232) |
Net income attributable to common shareholders | $ 40,917 | $ 35,837 | $ 101,959 | $ 89,332 |
Average common shares issued and outstanding (in shares) | 63,394,122 | 63,066,262 | 63,339,911 | 62,849,818 |
Average unvested RSU shares (in shares) | 1,588,267 | 1,419,603 | 1,470,015 | 1,345,764 |
Total qualifying shares (in shares) | 64,982,389 | 64,485,865 | 64,809,926 | 64,195,582 |
Basic earnings per share (in dollars per share) | $ 0.63 | $ 0.56 | $ 1.57 | $ 1.39 |
Diluted Earnings Per Common Share | ||||
Net income attributable to common shareholders | $ 40,917 | $ 35,837 | $ 101,959 | $ 89,332 |
Dilutive net income attributable to common shareholders | $ 40,917 | $ 35,837 | $ 101,959 | $ 89,332 |
Average common shares issued and outstanding (in shares) | 64,982,389 | 64,485,865 | 64,809,926 | 64,195,582 |
Dilutive effect of stock options (in shares) | 0 | 951 | 0 | 7,625 |
Total dilutive common shares issued and outstanding (in shares) | 64,982,389 | 64,486,816 | 64,809,926 | 64,203,207 |
Diluted earnings per share (in dollars per share) | $ 0.63 | $ 0.56 | $ 1.57 | $ 1.39 |
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2017
USD ($)
|
Jun. 09, 2016
claim
|
Feb. 02, 2016
claim
|
Dec. 31, 2015
claim
|
|
Shareholder Derivative Actions | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Loss contingency, number of pending claims | claim | 5 | 2 | ||
Loss contingency, number of consolidated pending claims | claim | 4 | |||
Loan Origination Commitments | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet, loan origination commitment | $ 541,487 | |||
Loan Origination Commitments | Sales commitment | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet, commitment | 61,178 | |||
Loan Origination Commitments | Fixed Interest Rate | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet, loan origination commitment | $ 84,044 | |||
Fixed interest rate minimum on commitments to extend credit | 2.10% | |||
Fixed interest rate maximum on commitments to extend credit | 8.88% | |||
Loan Origination Commitments | Fixed Interest Rate | Sales commitment | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet, commitment | $ 55,121 | |||
Loan Origination Commitments | Variable Interest Rate | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet, loan origination commitment | 457,443 | |||
Loan Origination Commitments | Variable Interest Rate | Sales commitment | ||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||||
Off-balance sheet, commitment | $ 6,057 |
RELATED PARTY TRANSACTIONS (Details) - loan |
9 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Related Party Transactions [Abstract] | ||
Number of related party loans granted | 0 | 0 |
Number of related party loans refinanced | 0 | 0 |
Label | Element | Value | ||||
---|---|---|---|---|---|---|
Municipal Bonds [Member] | ||||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionFairValue | $ 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionFairValue | 0 | ||||
Held-to-maturity Securities, Fair Value | us-gaap_HeldToMaturitySecuritiesFairValue | 41,506,000 | ||||
Held-to-maturity Securities, Fair Value | us-gaap_HeldToMaturitySecuritiesFairValue | 0 | ||||
Held-to-maturity Securities | us-gaap_HeldToMaturitySecurities | 35,896,000 | ||||
Held-to-maturity Securities | us-gaap_HeldToMaturitySecurities | 0 | ||||
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingGain | 5,610,000 | ||||
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingGain | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue | 0 | ||||
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingLoss | 0 | ||||
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingLoss | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionTwelveMonthsOrLongerFairValue | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionTwelveMonthsOrLongerFairValue | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAccumulatedLoss | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAccumulatedLoss | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionAccumulatedLoss | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionAccumulatedLoss | 0 | ||||
Agency Securities [Member] | ||||||
Held-to-maturity Securities, Fair Value | us-gaap_HeldToMaturitySecuritiesFairValue | 0 | [1] | |||
Held-to-maturity Securities | us-gaap_HeldToMaturitySecurities | 0 | [1] | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingGain | 0 | [1] | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingLoss | 0 | [1] | |||
Non-Agency, Residential Mortgage Backed Securities [Member] | ||||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionFairValue | 68,383,000 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionFairValue | 0 | ||||
Held-to-maturity Securities | us-gaap_HeldToMaturitySecurities | 128,211,000 | [2] | |||
Held-to-maturity Securities | us-gaap_HeldToMaturitySecurities | 0 | [2] | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingGain | 7,095,000 | [2] | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingGain | 0 | [2] | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue | 15,011,000 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue | 0 | ||||
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingLoss | 10,044,000 | [2] | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingLoss | 0 | [2] | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionTwelveMonthsOrLongerFairValue | 53,372,000 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionTwelveMonthsOrLongerFairValue | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss | 419,000 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAccumulatedLoss | 9,625,000 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAccumulatedLoss | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionAccumulatedLoss | 10,044,000 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionAccumulatedLoss | 0 | ||||
Agency, Residential Mortgage Backed Securities [Member] | ||||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionFairValue | 129,000 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionFairValue | 0 | ||||
Held-to-maturity Securities | us-gaap_HeldToMaturitySecurities | 35,067,000 | [1] | |||
Held-to-maturity Securities | us-gaap_HeldToMaturitySecurities | 0 | [1] | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingGain | 843,000 | [1] | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingGain | 0 | [1] | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue | 129,000 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue | 0 | ||||
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingLoss | 1,000 | [1] | |||
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingLoss | 0 | [1] | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionTwelveMonthsOrLongerFairValue | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionTwelveMonthsOrLongerFairValue | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss | 1,000 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAccumulatedLoss | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAccumulatedLoss | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionAccumulatedLoss | 1,000 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionAccumulatedLoss | 0 | ||||
Non-Agency Securities [Member] | ||||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionFairValue | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionFairValue | 0 | ||||
Held-to-maturity Securities, Fair Value | us-gaap_HeldToMaturitySecuritiesFairValue | 0 | ||||
Held-to-maturity Securities, Fair Value | us-gaap_HeldToMaturitySecuritiesFairValue | 0 | ||||
Held-to-maturity Securities | us-gaap_HeldToMaturitySecurities | 0 | ||||
Held-to-maturity Securities | us-gaap_HeldToMaturitySecurities | 0 | ||||
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingGain | 0 | ||||
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingGain | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThanTwelveMonthsFairValue | 0 | ||||
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingLoss | 0 | ||||
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | us-gaap_HeldToMaturitySecuritiesAccumulatedUnrecognizedHoldingLoss | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionTwelveMonthsOrLongerFairValue | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionTwelveMonthsOrLongerFairValue | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionLessThan12MonthsAccumulatedLoss | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAccumulatedLoss | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPosition12MonthsOrLongerAccumulatedLoss | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionAccumulatedLoss | 0 | ||||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | us-gaap_HeldToMaturitySecuritiesContinuousUnrealizedLossPositionAccumulatedLoss | $ 0 | ||||
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