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LOANS, LEASES & ALLOWANCE FOR LOANS AND LEASE LOSSES
 9 Months Ended
Mar. 31, 2017
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:
(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.

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:
 
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







The following tables present our loans and leases evaluated individually for impairment by class:
 
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.
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:
 
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

________________
1. Loans and leases evaluated for impairment include Troubled Debt Restructurings (“TDRs”) that have been performing for more than six months.

 
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

________________
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:
(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
%


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:
 
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


The Company divides loan balances when determining general loan loss reserves between purchases and originations as follows:
 
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



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:
 
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


The Company recognizes interest on performing loans temporarily modified as TDR, which is shown in conjunction with average balances as follows:
 
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



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:
 
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
%

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:
 
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
%