FAIR VALUE (Tables)
|
9 Months Ended |
Mar. 31, 2020 |
|---|
| Fair Value Disclosures [Abstract] |
|
| Schedule of 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, 2020 and June 30, 2019. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: | | | | | | | | | | | | | | | | | | March 31, 2020 | (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: Municipal | $ | — |
| | $ | 919 |
| | $ | — |
| | $ | 919 |
| Securities—Available-for-Sale: | | | | | | | | Agency Debt1 | $ | — |
| | $ | 1,700 |
| | $ | — |
| | $ | 1,700 |
| Agency RMBS1 | — |
| | 14,443 |
| | — |
| | 14,443 |
| Non-Agency RMBS2 | — |
| | — |
| | 11,706 |
| | 11,706 |
| Municipal | — |
| | 10,389 |
| | — |
| | 10,389 |
| Asset-backed securities and structured notes | — |
| | 153,150 |
| | — |
| | 153,150 |
| Total—Securities—Available-for-Sale | $ | — |
| | $ | 179,682 |
| | $ | 11,706 |
| | $ | 191,388 |
| Loans Held for Sale | $ | — |
| | $ | 40,236 |
| | $ | — |
| | $ | 40,236 |
| Mortgage servicing rights | $ | — |
| | $ | — |
| | $ | 9,962 |
| | $ | 9,962 |
| Other assets—Derivative instruments | $ | — |
| | $ | — |
| | $ | 5,626 |
| | $ | 5,626 |
| LIABILITIES: | | | | | | | | Other liabilities—Derivative instruments | $ | — |
| | $ | — |
| | $ | 2,978 |
| | $ | 2,978 |
| | | | | | | | | | June 30, 2019 | (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—Available-for-Sale: | | | | | | | | Agency Debt1 | $ | — |
| | $ | 1,685 |
| | $ | — |
| | $ | 1,685 |
| Agency RMBS1 | — |
| | 9,586 |
| | — |
| | 9,586 |
| Non-Agency RMBS2 | — |
| | — |
| | 13,025 |
| | 13,025 |
| Municipal | — |
| | 21,162 |
| | — |
| | 21,162 |
| Asset-backed securities and structured notes | — |
| | 182,055 |
| | — |
| | 182,055 |
| Total—Securities—Available-for-Sale | $ | — |
| | $ | 214,488 |
| | $ | 13,025 |
| | $ | 227,513 |
| Loans Held for Sale | $ | — |
| | $ | 33,260 |
| | $ | — |
| | $ | 33,260 |
| Mortgage servicing rights | $ | — |
| | $ | — |
| | $ | 9,784 |
| | $ | 9,784 |
| Other assets—Derivative instruments | $ | — |
| | $ | — |
| | $ | 1,978 |
| | $ | 1,978 |
| LIABILITIES: | | | | | | | | Other liabilities—Derivative instruments | $ | — |
| | $ | — |
| | $ | 732 |
| | $ | 732 |
|
| | 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 Alt-A or pay-option ARM mortgages.
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| Schedule of 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: | | | | | | | | | | | | | | | | | | For the Three Months Ended | | March 31, 2020 | (Dollars in thousands) | Securities – Available-for-Sale: Non-Agency RMBS | | Mortgage Servicing Rights | | Derivative Instruments, net | | Total | | | | | | | | | Opening balance | $ | 12,787 |
| | $ | 11,262 |
| | $ | 1,017 |
| | $ | 25,066 |
| Total gains or losses for the period: | | | | | | | | Included in earnings—Mortgage banking income | — |
| | (2,597 | ) | | 1,631 |
| | (966 | ) | Included in other comprehensive income | (548 | ) | | — |
| | — |
| | (548 | ) | Purchases/originations | — |
| | 1,297 |
| | — |
| | 1,297 |
| Settlements | (533 | ) | | — |
| | — |
| | (533 | ) | Closing balance | $ | 11,706 |
| | $ | 9,962 |
| | $ | 2,648 |
| | $ | 24,316 |
| | | | | | | | | Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | $ | — |
| | $ | (2,597 | ) | | $ | 1,631 |
| | $ | (966 | ) | | | | | | | | | | For the Nine Months Ended | | March 31, 2020 | (Dollars in thousands) | Securities – Available-for-Sale: Non-Agency RMBS | | Mortgage Servicing Rights | | Derivative Instruments, net | | Total | | | | | | | | | Opening Balance | $ | 13,025 |
| | $ | 9,784 |
| | $ | 1,246 |
| | $ | 24,055 |
| Total gains or losses for the period: | | | | | | |
|
| Included in earnings—Mortgage banking income | — |
| | (3,869 | ) | | 1,402 |
| | (2,467 | ) | Included in other comprehensive income | 292 |
| | — |
| | — |
| | 292 |
| Purchases | — |
| | 4,047 |
| | — |
| | 4,047 |
| Settlements | (1,611 | ) | | — |
| | — |
| | (1,611 | ) | Closing balance | $ | 11,706 |
| | $ | 9,962 |
| | $ | 2,648 |
| | $ | 24,316 |
| | | | | | | | | Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | $ | — |
| | $ | (3,869 | ) | | $ | 1,402 |
| | $ | (2,467 | ) |
| | | | | | | | | | | | | | | | | | For the Three Months Ended | | March 31, 2019 | (Dollars in thousands) | Securities – Available-for-Sale: Non-Agency RMBS | | Mortgage Servicing Rights | | Derivative Instruments, net | | Total | | | | | | | | | Opening balance | $ | 14,421 |
| | $ | 11,215 |
| | $ | 469 |
| | $ | 26,105 |
| Total gains or losses for the period: | | | | | | | | Included in earnings—Mortgage banking income | — |
| | (1,199 | ) | | 153 |
| | (1,046 | ) | Included in other comprehensive income | (108 | ) | | — |
| | — |
| | (108 | ) | Purchases/originations | — |
| | 339 |
| | — |
| | 339 |
| Settlements | (370 | ) | | — |
| | — |
| | (370 | ) | Other-than-temporary impairment | (821 | ) | | — |
| | — |
| | (821 | ) | Closing balance | $ | 13,122 |
| | $ | 10,355 |
| | $ | 622 |
| | $ | 24,099 |
| | | | | | | | | Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | $ | — |
| | $ | (1,199 | ) | | $ | 153 |
| | $ | (1,046 | ) | | | | | | | | | | For the Nine Months Ended | | March 31, 2019 | (Dollars in thousands) | Securities – Available-for-Sale: Non-Agency RMBS | | Mortgage Servicing Rights | | Derivative Instruments, net | | Total | | | | | | | | | Opening Balance | $ | 17,443 |
| | $ | 10,752 |
| | $ | 953 |
| | $ | 29,148 |
| Total gains or losses for the period: | | | | | | | | Included in earnings—Sale of securities | (133 | ) | | — |
| | — |
| | (133 | ) | Included in earnings—Mortgage banking income | — |
| | (2,053 | ) | | (331 | ) | | (2,384 | ) | Included in other comprehensive income | 442 |
| | — |
| | — |
| | 442 |
| Purchases | — |
| | 1,656 |
| | — |
| | 1,656 |
| Sales | (2,058 | ) | | — |
| | — |
| | (2,058 | ) | Settlements | (1,751 | ) | | — |
| | — |
| | (1,751 | ) | Other-than-temporary impairment | (821 | ) | | — |
| | — |
| | (821 | ) | Closing balance | $ | 13,122 |
| | $ | 10,355 |
| | $ | 622 |
| | $ | 24,099 |
| | | | | | | | | Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period | $ | (133 | ) | | $ | (2,053 | ) | | $ | (331 | ) | | $ | (2,517 | ) |
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| Schedule of Quantitative Information About Level 3 Fair Value Measurements |
The table below summarizes the quantitative information about level 3 fair value measurements as of the dates indicated: | | | | | | | | | March 31, 2020 | (Dollars in thousands) | Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | Securities – Non-agency RMBS | $ | 11,706 |
| Discounted Cash Flow | Projected Constant Prepayment Rate,
Projected Constant Default Rate,
Projected Loss Severity,
Discount Rate over LIBOR | 1.0 to 25.6% (8.9%) 1.5 to 20.0% (4.8%)
40.0 to 68.4% (59.5%)
3.1 to 9.4% (5.1%) | Mortgage Servicing Rights | $ | 9,962 |
| Discounted Cash Flow | Projected Constant Prepayment Rate,
Life (in years),
Discount Rate | 4.9 to 29.4% (10.9%) 1.9 to 8.3 (6.3)
9.5 to 13.0% (9.8%) | Derivative Instruments | $ | 2,648 |
| Sales Comparison Approach | Projected Sales Profit of Underlying Loans | 0.0 to 0.8% (0.4%) |
| | | | | | | | | June 30, 2019 | (Dollars in thousands) | Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | Securities – Non-agency RMBS | $ | 13,025 |
| Discounted Cash Flow | Projected Constant Prepayment Rate,
Projected Constant Default Rate,
Projected Loss Severity,
Discount Rate over LIBOR | 2.9 to 32.5% (10.0%) 1.5 to 10.2% (4.4%)
40.0 to 68.3% (59.4%)
2.7 to 6.9% (4.1%) | Mortgage Servicing Rights | $ | 9,784 |
| Discounted Cash Flow | Projected Constant Prepayment Rate,
Life (in years),
Discount Rate | 4.7 to 33.7% (10.1%) 1.9 to 8.8 (6.4)
9.5 to 13.0% (9.8%) | Derivative Instruments | $ | 1,246 |
| Sales Comparison Approach | Projected Sales Profit of Underlying Loans | 0.4 to 0.8% (0.6%) |
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: | | | | | | | | | March 31, 2020 | (Dollars in thousands) | Fair Value | Valuation Technique(s) | Unobservable Input | Range (Weighted Average) 1 | Impaired loans and leases: | | | | | Single family real estate secured: | | | | | Mortgage | $ | 54,106 |
| Sales comparison approach | Adjustment for differences between the comparable sales | -15.3 to 18.5% (-0.4%) | Multifamily real estate secured | $ | 1,176 |
| Sales comparison approach, income approach, Discounted cash flows | Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, capitalization rate | 4.5 to 15.0% (9.3%) | Commercial real estate secured | $ | 1,909 |
| Sales comparison approach and income approach | Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations | 1.5 to 1.5% (1.5%) | Auto and RV secured | $ | 339 |
| Sales comparison approach | Adjustment for differences between the comparable sales | -63.2 to 13.2% (-15.4%) | Other | $ | 406 |
| 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%)
-3.3 to 2.2% (-0.5%) | Other real estate owned and foreclosed assets: | | | | Single family real estate | $ | 7,010 |
| Sales comparison approach | Adjustment for differences between the comparable sales | 8.8 to 18.7% (16.7%) | Autos and RVs | $ | 297 |
| Sales comparison approach | Adjustment for differences between the comparable sales | -30.2 to 2.2% (-3.4%) |
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.
| | | | | | | | | June 30, 2019 | (Dollars in thousands) | Fair Value | Valuation Technique(s) | Unobservable Input | Range (Weighted Average) 1 | Impaired loans and leases: | | | | | Single family real estate secured: | | | | | Mortgage | $ | 46,005 |
| Sales comparison approach | Adjustment for differences between the comparable sales | -83.2 to 80% (-2.0%) | Multifamily real estate secured | $ | 2,108 |
| Sales comparison approach and income approach | Adjustment for differences between the comparable sales and adjustments for differences in net operating income expectations, capitalization rate | -87.9 to 102.7% (-0.1%) | Auto and RV secured | $ | 115 |
| Sales comparison approach | Adjustment for differences between the comparable sales | -49.0 to 24.0% (2.6%) | Other | $ | 216 |
| 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%) -2.2 to 1.1% (-0.6%) | Other real estate owned and foreclosed assets:
| | | | Single family real estate | $ | 7,449 |
| Sales comparison approach | Adjustment for differences between the comparable sales | -46.3 to 53.0% (5.3%) | Autos and RVs | $ | 36 |
| Sales comparison approach | Adjustment for differences between the comparable sales | -13.6 to 56.3% (8.0%) |
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.
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| Schedule of Fair Value Assets Measured on Nonrecurring Basis |
The table below summarizes assets measured for impairment on a non-recurring basis: | | | | | | | | | | | | | | | | | | March 31, 2020 | (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 and Leases: | | | | | | | | Single family real estate secured: | | | | | | | | Mortgage | $ | — |
| | $ | — |
| | $ | 54,106 |
| | $ | 54,106 |
| Multifamily real estate secured | — |
| | — |
| | 1,176 |
| | 1,176 |
| Commercial real estate secured | — |
| | — |
| | 1,909 |
| | 1,909 |
| Auto and RV secured | — |
| | — |
| | 339 |
| | 339 |
| Other | — |
| | — |
| | 406 |
| | 406 |
| Total | $ | — |
| | $ | — |
| | $ | 57,936 |
| | $ | 57,936 |
| Other real estate owned and foreclosed assets: | | | | | | | | Single family real estate | $ | — |
| | $ | — |
| | $ | 7,010 |
| | $ | 7,010 |
| Autos and RVs | — |
| | — |
| | 297 |
| | 297 |
| Total | $ | — |
| | $ | — |
| | $ | 7,307 |
| | $ | 7,307 |
| | | | | | | | | | June 30, 2019 | (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 and Leases: | | | | | | | | Single family real estate secured: | | | | | | | | Mortgage | $ | — |
| | $ | — |
| | $ | 46,005 |
| | $ | 46,005 |
| Multifamily real estate secured | — |
| | — |
| | 2,108 |
| | 2,108 |
| Auto and RV secured | — |
| | — |
| | 115 |
| | 115 |
| Other | — |
| | — |
| | 216 |
| | 216 |
| Total | $ | — |
| | $ | — |
| | $ | 48,444 |
| | $ | 48,444 |
| Other real estate owned and foreclosed assets: | | | | | | | | Single family real estate | $ | — |
| | $ | — |
| | $ | 7,449 |
| | $ | 7,449 |
| Autos and RVs | — |
| | — |
| | 36 |
| | 36 |
| Total | $ | — |
| | $ | — |
| | $ | 7,485 |
| | $ | 7,485 |
|
|
| Schedule of Aggregate Fair Value, Contractual Balance, and Gains of Loans Held For Sale |
As of March 31, 2020 and June 30, 2019, the aggregate fair value of loans held for sale, carried at fair value, contractual balance (including accrued interest), and unrealized gain was as follows: | | | | | | | | | (Dollars in thousands) | March 31, 2020 | | June 30, 2019 | Aggregate fair value | $ | 40,236 |
| | $ | 33,260 |
| Contractual balance | 38,724 |
| | 32,342 |
| Unrealized gain | $ | 1,512 |
| | $ | 918 |
|
The total amount of gains and losses from changes in fair value included in earnings for the period indicated below for loans held for sale were: | | | | | | | | | | | | | | | | | | For the Three Months Ended | | For the Nine Months Ended | | March 31, | | March 31, | (Dollars in thousands) | 2020 | | 2019 | | 2020 | | 2019 | Interest income | $ | 216 |
| | $ | 258 |
| | $ | 812 |
| | $ | 824 |
| Change in fair value | 2,228 |
| | 134 |
| | 1,976 |
| | (577 | ) | Total | $ | 2,444 |
| | $ | 392 |
| | $ | 2,788 |
| | $ | 247 |
|
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| Schedule of 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, 2020 and June 30, 2019 were as follows: | | | | | | | | | | | | | | | | | | | | | | March 31, 2020 | | | | Fair Value | | | (Dollars in thousands) | Carrying
Amount | | Level 1 | | Level 2 | | Level 3 | | Total Fair Value | Financial assets: | | | | | | | | | | Cash and cash equivalents | $ | 854,199 |
| | $ | 854,199 |
| | $ | — |
| | $ | — |
| | $ | 854,199 |
| Securities trading | 919 |
| | — |
| | 919 |
| | — |
| | 919 |
| Securities available-for-sale | 191,388 |
| | — |
| | 179,682 |
| | 11,706 |
| | 191,388 |
| Loans held for sale, at fair value | 40,236 |
| | — |
| | 40,236 |
| | — |
| | 40,236 |
| Loans held for sale, at lower of cost or fair value | 29 |
| | — |
| | — |
| | 29 |
| | 29 |
| Loans and leases held for investment—net | 10,372,921 |
| | — |
| | — |
| | 10,926,375 |
| | 10,926,375 |
| Securities borrowed | 53,816 |
| | — |
| | — |
| | 53,827 |
| | 53,827 |
| Customer, broker-dealer and clearing receivables | 187,353 |
| | — |
| | — |
| | 187,447 |
| | 187,447 |
| Mortgage servicing rights | 9,962 |
| | — |
| | — |
| | 9,962 |
| | 9,962 |
| Financial liabilities: | | | | | | | | |
|
| Total deposits | 9,567,338 |
| | — |
| | 9,312,380 |
| | — |
| | 9,312,380 |
| Advances from the Federal Home Loan Bank | 770,500 |
| | — |
| | 780,580 |
| | — |
| | 780,580 |
| Borrowings, subordinated notes and debentures | 76,285 |
| | — |
| | 77,104 |
| | — |
| | 77,104 |
| Securities loaned | 76,587 |
| | — |
| | — |
| | 76,587 |
| | 76,587 |
| Customer, broker-dealer and clearing payables | 318,100 |
| | — |
| | — |
| | 291,679 |
| | 291,679 |
|
| | | | | | | | | | | | | | | | | | | | | | June 30, 2019 | |
| | Fair Value | | | (Dollars in thousands) | Carrying
Amount | | Level 1 | | Level 2 | | Level 3 | | Total Fair Value | Financial assets: | | | | | | | | | | Cash and cash equivalents | $ | 857,368 |
| | $ | 857,368 |
| | $ | — |
| | $ | — |
| | $ | 857,368 |
| Securities available-for-sale | 227,513 |
| | — |
| | 214,488 |
| | 13,025 |
| | 227,513 |
| Loans held for sale, at fair value | 33,260 |
| | — |
| | 33,260 |
| | — |
| | 33,260 |
| Loans held for sale, at lower of cost or fair value | 4,800 |
| | — |
| | — |
| | 4,990 |
| | 4,990 |
| Loans and leases held for investment—net | 9,382,124 |
| | — |
| | — |
| | 9,630,061 |
| | 9,630,061 |
| Securities borrowed | 144,706 |
| | — |
| | — |
| | 144,720 |
| | 144,720 |
| Customer, broker-dealer and clearing receivables | 203,192 |
| | — |
| | — |
| | 203,355 |
| | 203,355 |
| Mortgage servicing rights | 9,784 |
| | — |
| | — |
| | 9,784 |
| | 9,784 |
| Financial liabilities: |
| | | | | | | |
| Total deposits | 8,983,173 |
| | — |
| | 8,758,861 |
| | — |
| | 8,758,861 |
| Advances from the Federal Home Loan Bank | 458,500 |
| | — |
| | 461,156 |
| | — |
| | 461,156 |
| Borrowings, subordinated notes and debentures | 168,929 |
| | — |
| | 169,212 |
| | — |
| | 169,212 |
| Securities loaned | 198,356 |
| | — |
| | — |
| | 198,197 |
| | 198,197 |
| Customer, broker-dealer and clearing payables | 238,604 |
| | — |
| | — |
| | 229,987 |
| | 229,987 |
|
|