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LOANS & ALLOWANCE FOR CREDIT LOSSES-LOANS | 12 Months Ended
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Jun. 30, 2022
Receivables [Abstract] |
LOANS & ALLOWANCE FOR CREDIT LOSSES-LOANS | LOANS & ALLOWANCE FOR CREDIT LOSSES-LOANS In conjunction with the adoption of ASC 326 on July 1, 2020, the Company updated categorization of the loan portfolio. The Company categorizes the loan portfolio into six segments: Single Family - Mortgage & Warehouse, Multifamily and Commercial Mortgage, Commercial Real Estate, Commercial & Industrial - Non Real Estate, Auto & Consumer and Other (for further detail of the change in accounting principle and detail of the segments and classes within of the Company’s loan portfolio, refer to Note 1 - “Summary of Significant Accounting Policies”). The following table sets forth the composition of the loan portfolio as of the dates indicated:
| At June 30,
(Dollars in thousands) | 2022 |  | 2021
Single Family - Mortgage & Warehouse | $ | 3,988,462 |  |  | $ | 4,359,472 |
Multifamily and Commercial Mortgage | 2,877,680 |  |  | 2,470,454 |
Commercial Real Estate | 4,781,044 |  |  | 3,180,453 |
Commercial & Industrial - Non-RE | 2,028,128 |  |  | 1,123,869 |
Auto & Consumer | 567,228 |  |  | 362,180 |
Other | 11,134 |  |  | 58,316 |
Total gross loans | 14,253,676 |  |  | 11,554,744 |
Allowance for credit losses - loans | (148,617) |  |  | (132,958) |
Unaccreted premiums (discounts) and loan fees | (13,998) |  |  | (6,972) |
Total net loans | $ | 14,091,061 |  |  | $ | 11,414,814 |
The following table summarizes activity in the allowance for credit losses - loans for the periods indicated:
| At June 30,
(Dollars in thousands) | 2022 |  | 2021 |  | 2020
Balance—beginning of period | $ | 132,958 |  |  | $ | 75,807 |  |  | $ | 57,085 |
Effect of Adoption of ASC 326 | — |  |  | 47,300 |  |  | — |
Provision for loan and lease loss | 18,500 |  |  | 23,750 |  |  | 42,200 |
Charged off | (4,428) |  |  | (16,558) |  |  | (25,833) |
Recoveries | 1,587 |  |  | 2,659 |  |  | 2,355 |
Balance—end of period | $ | 148,617 |  |  | $ | 132,958 |  |  | $ | 75,807 |
In the ordinary course of business, the Company has granted related party loans collateralized by real property to certain executive officers, directors and their affiliates. There were no refinances of related party loans in the fiscal year ended June 30, 2022. There was one refinance of a related party loan in the amount of $1.4 million during the fiscal year ended June 30, 2021. There were no new loans originated for related parties during the fiscal year ended June 30, 2022. There were four new loans originated for related parties in the amount of $10.0 million during the fiscal year ended June 30, 2021. Total principal payments on related party loans were $3.0 million and $7.0 million during the years ended June 30, 2022 and 2021, respectively. At June 30, 2022 and 2021, these loans amounted to $25.6 million and $23.8 million, respectively, and are included in loans held for investment. Interest earned on these loans was $0.1 million and $0.1 million during the years ended June 30, 2022 and 2021, respectively. The Company’s loan portfolio consisted of approximately 9.4% fixed interest rate loans and 90.6% adjustable interest rate loans as of June 30, 2022. The Company’s adjustable rate loans are primarily based upon indices using LIBOR, SOFR and Ameribor. The Company’s loan portfolio consisted of approximately 14.90% fixed interest rate loans and 85.10% adjustable interest rate loans as of June 30, 2021. At June 30, 2022 and 2021, portfolio loans serviced by others were $37.3 million, or 0.26%, and $44.7 million, or 0.39%, respectively, of the loan portfolio. As of June 30, 2022, the Company had $1,197.4 million of interest-only loans and $7.0 million of option adjustable-rate mortgage loans. Through June 30, 2022, the net amount of deferred interest on these loan types was not material to the financial position or operating results of the Company. As of June 30, 2021, the Company had $1,074.3 million of interest-only loans and $0.9 million of option adjustable-rate mortgage loans. Through June 30, 2021, the net amount of deferred interest on these loan types was not material to the financial position or operating results of the Company. The following tables summarize activity in the allowance for credit losses - loans by portfolio classes for the periods indicated:
| June 30, 2022
(Dollars in thousands) | Single Family - Mortgage & Warehouse |  | Multifamily and Commercial Mortgage |  | Commercial Real Estate |  | Commercial & Industrial - Non-RE |  | Auto & Consumer |  | Other |  | Total
Balance at July 1, 2021 | $ | 26,604 |  |  | $ | 13,146 |  |  | $ | 57,928 |  |  | $ | 28,460 |  |  | $ | 6,519 |  |  | $ | 301 |  |  | $ | 132,958 |
Provision for credit losses - loans | (7,009) |  |  | 1,332 |  |  | 11,411 |  |  | 2,544 |  |  | 10,492 |  |  | (270) |  |  | 18,500 |
Charge-offs | (82) |  |  | — |  |  | — |  |  | (322) |  |  | (4,024) |  |  | — |  |  | (4,428) |
Recoveries | 157 |  |  | 177 |  |  | — |  |  | 126 |  |  | 1,127 |  |  | — |  |  | 1,587 |
Balance at June 30, 2022 | $ | 19,670 |  |  | $ | 14,655 |  |  | $ | 69,339 |  |  | $ | 30,808 |  |  | $ | 14,114 |  |  | $ | 31 |  |  | $ | 148,617 |
| June 30, 2021
(Dollars in thousands) | Single Family - Mortgage & Warehouse |  | Multifamily and Commercial Mortgage |  | Commercial Real Estate |  | Commercial & Industrial - Non-RE |  | Auto & Consumer |  | Other |  |  |  | Total
Balance at July 1, 2020 | $ | 25,899 |  |  | $ | 4,719 |  |  | $ | 21,052 |  |  | $ | 9,954 |  |  | $ | 9,462 |  |  | $ | 4,721 |  |  |  |  | $ | 75,807 |
Effect of Adoption of ASC 326 | 6,318 |  |  | 7,408 |  |  | 25,893 |  |  | 7,042 |  |  | 610 |  |  | 29 |  |  |  |  | 47,300 |
Provision for credit losses - loans | (3,242) |  |  | 1,196 |  |  | 11,238 |  |  | 14,251 |  |  | (1,354) |  |  | 1,661 |  |  |  |  | 23,750 |
Charge-offs | (2,502) |  |  | (177) |  |  | (255) |  |  | (2,833) |  |  | (3,517) |  |  | (7,274) |  |  |  |  | (16,558) |
Recoveries | 131 |  |  | — |  |  | — |  |  | 46 |  |  | 1,318 |  |  | 1,164 |  |  |  |  | 2,659 |
Balance at June 30, 2021 | $ | 26,604 |  |  | $ | 13,146 |  |  | $ | 57,928 |  |  | $ | 28,460 |  |  | $ | 6,519 |  |  | $ | 301 |  |  |  |  | $ | 132,958 |
| June 30, 2020
(Dollars in thousands) | Single Family - Mortgage & Warehouse |  | Multifamily and Commercial Mortgage |  | Commercial Real Estate |  | Commercial & Industrial - Non-RE |  | Auto & Consumer |  | Other |  | Total
Balance at July 1, 2019 | $ | 22,290 |  |  | $ | 3,807 |  |  | $ | 14,632 |  |  | $ | 9,544 |  |  | $ | 6,339 |  |  | $ | 473 |  |  | $ | 57,085 |
Provision for credit losses - loans | 3,546 |  |  | 793 |  |  | 6,420 |  |  | 4,542 |  |  | 7,429 |  |  | 19,470 |  |  | 42,200 |
Charge-offs | (203) |  |  | — |  |  | — |  |  | (4,132) |  |  | (5,047) |  |  | (16,451) |  |  | (25,833) |
Recoveries | 266 |  |  | 119 |  |  | — |  |  | — |  |  | 741 |  |  | 1,229 |  |  | 2,355 |
Balance at June 30, 2020 | $ | 25,899 |  |  | $ | 4,719 |  |  | $ | 21,052 |  |  | $ | 9,954 |  |  | $ | 9,462 |  |  | $ | 4,721 |  |  | $ | 75,807 |
Credit Quality Disclosure. Nonaccrual loans consisted of the following as of the dates indicated:
| As of June 30, 2022
(Dollars in thousands) | With Allowance |  | With No Allowance |  | Total
Single Family - Mortgage & Warehouse | $ | 66,424 |  |  | $ | — |  |  | $ | 66,424 |
Multifamily and Commercial Mortgage | 33,410 |  |  | — |  |  | 33,410 |
Commercial Real Estate | 14,852 |  |  | — |  |  | 14,852 |
Commercial & Industrial - Non-RE | 2,989 |  |  | — |  |  | 2,989 |
Auto & Consumer | 439 |  |  | — |  |  | 439 |
Other | 80 |  |  | — |  |  | 80 |
Total nonaccrual loans | $ | 118,194 |  |  | $ | — |  |  | $ | 118,194 |
Nonaccrual loans to total loans |  |  |  |  | 0.83 | %
| As of June 30, 2021
(Dollars in thousands) | With Allowance |  | With No Allowance |  | Total
Single Family - Mortgage & Warehouse | $ | 45,951 |  |  | $ | 59,757 |  |  | $ | 105,708 |
Multifamily and Commercial Mortgage | 2,916 |  |  | 17,512 |  |  | 20,428 |
Commercial Real Estate | 15,839 |  |  | — |  |  | 15,839 |
Commercial & Industrial - Non-RE | 2,942 |  |  | — |  |  | 2,942 |
Auto & Consumer | 230 |  |  | 48 |  |  | 278 |
Total nonaccrual loans | $ | 67,878 |  |  | $ | 77,317 |  |  | $ | 145,195 |
Nonaccrual loans to total loans |  |  |  |  | 1.26 | %
Approximately 1.18% of our nonaccrual loans at June 30, 2022 were considered TDRs, compared to 0.55% at June 30, 2021. Borrowers who 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 nonaccrual loan category to performing and return to accrual status. Approximately 56.20% of the Bank’s nonaccrual loans are single family first mortgages. The following tables provide the outstanding unpaid balance of loans that are performing and nonaccrual by portfolio class as of the dates indicated:
| June 30, 2022
(Dollars in thousands) | Single Family - Mortgage & Warehouse |  | Multifamily and Commercial Mortgage |  | Commercial Real Estate |  | Commercial & Industrial - Non-RE |  | Auto & Consumer |  | Other |  | Total
Performing | $ | 3,922,038 |  |  | $ | 2,844,270 |  |  | $ | 4,766,192 |  |  | $ | 2,025,139 |  |  | $ | 566,789 |  |  | $ | 11,054 |  |  | $ | 14,135,482 |
Nonaccrual | 66,424 |  |  | 33,410 |  |  | 14,852 |  |  | 2,989 |  |  | 439 |  |  | 80 |  |  | 118,194 |
Total | $ | 3,988,462 |  |  | $ | 2,877,680 |  |  | $ | 4,781,044 |  |  | $ | 2,028,128 |  |  | $ | 567,228 |  |  | $ | 11,134 |  |  | $ | 14,253,676 |
| June 30, 2021
(Dollars in thousands) | Single Family - Mortgage & Warehouse |  | Multifamily and Commercial Mortgage |  | Commercial Real Estate |  | Commercial & Industrial - Non-RE |  | Auto & Consumer |  | Other |  | Total
Performing | $ | 4,253,764 |  |  | $ | 2,450,026 |  |  | $ | 3,164,614 |  |  | $ | 1,120,927 |  |  | $ | 361,902 |  |  | $ | 58,316 |  |  | $ | 11,409,549 |
Nonaccrual | 105,708 |  |  | 20,428 |  |  | 15,839 |  |  | 2,942 |  |  | 278 |  |  | — |  |  | 145,195 |
Total | $ | 4,359,472 |  |  | $ | 2,470,454 |  |  | $ | 3,180,453 |  |  | $ | 1,123,869 |  |  | $ | 362,180 |  |  | $ | 58,316 |  |  | $ | 11,554,744 |
There was no interest recognized on loans that were TDRs for the years ended June 30, 2022, 2021 and 2020 respectively. The average balances of nonaccrual loans was $136.4 million, $142.0 million and $60.6 million for the years ended June 30, 2022, 2021 and 2020, respectively. There was no amount in performing TDRs for each of the years ended June 30, 2022, 2021 and 2020. There was no interest income recognized on non-accrual loans for the years ended June 30, 2022, 2021 and 2020. The Company had no TDRs classified as performing loans at June 30, 2022 or 2021. Credit Quality Indicators. The Company categorizes loans 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 individually by classifying the loans as to credit risk. The Company uses the following definitions for risk ratings. Pass. Loans 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 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 of the institution’s credit position at some future date. Substandard. Loans 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 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 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 following a continuous loan review process, featuring coverage of all loan 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 amortized cost basis by fiscal year of origination and credit quality indicator of the Company’s loan as of June 30, 2022 was as follows:
| Loans Held for Investment Origination Year |  | Revolving Loans |  | Revolving Loans Converted to Loans HFI |  |  |  | Total
(Dollars in thousands) | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior |  |  |  |
Single Family-Mortgage & Warehouse |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 1,484,027 |  |  | $ | 600,054 |  |  | $ | 402,712 |  |  | $ | 303,999 |  |  | $ | 279,248 |  |  | $548,703 |  | $ | 241,925 |  |  | $ | — |  |  |  |  | $3,860,668
Special Mention | — |  | — |  | 4,790 |  | 2,505 |  | 4,125 |  | 10,971 |  | 38,637 |  | — |  |  |  | 61,028
Substandard | — |  | 2,288 |  | 3,928 |  | 18,407 |  | 5,955 |  | 36,188 |  | — |  | — |  |  |  | 66,766
Doubtful | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |  |  | —
Total | 1,484,027 |  | 602,342 |  | 411,430 |  | 324,911 |  | 289,328 |  | 595,862 |  | 280,562 |  | — |  |  |  | 3,988,462
Multifamily and Commercial Mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 999,819 |  | 569,486 |  | 429,247 |  | 259,161 |  | 219,548 |  | 316,013 |  | — |  | — |  |  |  | 2,793,274
Special Mention | 1,200 |  | — |  | 534 |  | 539 |  | — |  | 968 |  | — |  | — |  |  |  | 3,241
Substandard | — |  | 5,772 |  | 34,343 |  | 9,613 |  | 7,308 |  | 24,129 |  | — |  | — |  |  |  | 81,165
Doubtful | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |  |  | —
Total | 1,001,019 |  | 575,258 |  | 464,124 |  | 269,313 |  | 226,856 |  | 341,110 |  | — |  | — |  |  |  | 2,877,680
Commercial Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 2,482,366 |  | 990,887 |  | 358,422 |  | 186,800 |  | 28,758 |  | — |  | 602,412 |  | — |  |  |  | 4,649,645
Special Mention | — |  | 32,351 |  | 12,138 |  | 16,487 |  | 15,000 |  | — |  | — |  | — |  |  |  | 75,976
Substandard | — |  | — |  | 12,575 |  | 18,043 |  | 23,507 |  | — |  | 1,298 |  | — |  |  |  | 55,423
Doubtful | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |  |  | —
Total | 2,482,366 |  | 1,023,238 |  | 383,135 |  | 221,330 |  | 67,265 |  | — |  | 603,710 |  | — |  |  |  | 4,781,044
Commercial & Industrial - Non-RE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 435,228 |  | 66,226 |  | 25,629 |  | 61,932 |  | 9,268 |  | — |  | 1,388,435 |  | — |  |  |  | 1,986,718
Special Mention | 13 |  | — |  | — |  | 186 |  | 710 |  | — |  | — |  | — |  |  |  | 909
Substandard | 2,988 |  | 28,359 |  | 9,154 |  | — |  | — |  | — |  | — |  | — |  |  |  | 40,501
Doubtful | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |  |  | —
Total | 438,229 |  | 94,585 |  | 34,783 |  | 62,118 |  | 9,978 |  | — |  | 1,388,435 |  | — |  |  |  | 2,028,128
Auto & Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 352,468 |  | 107,882 |  | 43,377 |  | 37,008 |  | 16,147 |  | 8,891 |  | — |  | — |  |  |  | 565,773
Special Mention | 204 |  | 188 |  | 24 |  | 110 |  | — |  | 1 |  | — |  | — |  |  |  | 527
Substandard | 157 |  | 311 |  | 224 |  | 205 |  | 25 |  | 6 |  | — |  | — |  |  |  | 928
Doubtful | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |  |  | —
Total | 352,829 |  | 108,381 |  | 43,625 |  | 37,323 |  | 16,172 |  | 8,898 |  | — |  | — |  |  |  | 567,228
Other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 3,057 |  | 6,185 |  | — |  | — |  | 1,091 |  | 721 |  | — |  | — |  |  |  | 11,054
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |  |  | —
Substandard | — |  | — |  | 46 |  | — |  | — |  | 34 |  | — |  | — |  |  |  | 80
Doubtful | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |  |  | —
Total | 3,057 |  | 6,185 |  | 46 |  | — |  | 1,091 |  | 755 |  | — |  | — |  |  |  | 11,134
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 5,756,965 |  | 2,340,720 |  | 1,259,387 |  | 848,900 |  | 554,060 |  | 874,328 |  | 2,232,772 |  | — |  |  |  | 13,867,132
Special Mention | 1,417 |  | 32,539 |  | 17,486 |  | 19,827 |  | 19,835 |  | 11,940 |  | 38,637 |  | — |  |  |  | 141,681
Substandard | 3,145 |  | 36,730 |  | 60,270 |  | 46,268 |  | 36,795 |  | 60,357 |  | 1,298 |  | — |  |  |  | 244,863
Doubtful | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |  |  | —
Total | $ | 5,761,527 |  |  | $ | 2,409,989 |  |  | $ | 1,337,143 |  |  | $ | 914,995 |  |  | $ | 610,690 |  |  | $946,625 |  | $2,272,707 |  | $ | — |  |  |  |  | $14,253,676
As a % of total gross loans | 40.42% |  | 16.91% |  | 9.38% |  | 6.42% |  | 4.28% |  | 6.64% |  | 15.95% |  | —% |  |  |  | 100.0%
The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. The Company also evaluates credit quality based on the aging status of its loans. During the year, the Company holds 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 Company took proactive measures to manage loans that became delinquent during the economic downturn as a result of the COVID-19 pandemic. As of June 30, 2022, no loans were on forbearance status for forbearance granted as a result of COVID-19. Any forbearance granted as a result of COVID-19 was for six months or less. The following tables provide the outstanding unpaid balance of loans and leases that are past due 30 days or more by portfolio class as of the dates indicated:
| June 30, 2022
(Dollars in thousands) | 30-59 Days |  | 60-89 Days |  | 90+ Days |  | Total
Single Family-Mortgage & Warehouse | $ | 5,167 |  |  | $ | 1,518 |  |  | $ | 63,286 |  |  | $ | 69,971 |
Multifamily and Commercial Mortgage | 9,455 |  |  | 2,115 |  |  | 26,556 |  |  | 38,126 |
Commercial Real Estate | — |  |  | 14,852 |  |  | — |  |  | 14,852 |
Commercial & Industrial - Non-RE | — |  |  | — |  |  | — |  |  | — |
Auto & Consumer | 4,865 |  |  | 1,009 |  |  | 466 |  |  | 6,340 |
Other | 413 |  |  | — |  |  | 193 |  |  | 606 |
Total | $ | 19,900 |  |  | $ | 19,494 |  |  | $ | 90,501 |  |  | $ | 129,895 |
As a % of gross loans | 0.14 | % |  | 0.14 | % |  | 0.63 | % |  | 0.91 | %
| June 30, 2021
(Dollars in thousands) | 30-59 Days |  | 60-89 Days |  | 90+ Days |  | Total
Single Family-Mortgage & Warehouse | $ | 24,150 |  |  | $ | 46,552 |  |  | $ | 69,169 |  |  | $ | 139,871 |
Multifamily and Commercial Mortgage | 7,991 |  |  | 1,816 |  |  | 12,122 |  |  | 21,929 |
Commercial Real Estate | 36,786 |  |  | — |  |  | — |  |  | 36,786 |
Commercial & Industrial - Non-RE | — |  |  | — |  |  | 2,960 |  |  | 2,960 |
Auto & Consumer | 601 |  |  | 306 |  |  | 235 |  |  | 1,142 |
Other | — |  |  | — |  |  | — |  |  | — |
Total | $ | 69,528 |  |  | $ | 48,674 |  |  | $ | 84,486 |  |  | $ | 202,688 |
As a % of gross loans | 0.60 | % |  | 0.42 | % |  | 0.73 | % |  | 1.75 | %
Loans reaching 90+ days past due are placed on non-accrual as required under Company policy. No loans 90+ days past due were still accruing interest as of June 30, 2022 and June 30, 2021. Credit Risk Concentration Concentrations of credit risk arise when a number of borrowers are engaged in similar business activities in the same geographic region, or when they have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. Concentrations of 10% or more existed in the Single Family, Multifamily and Commercial Real Estate loan categories at June 30, 2022 and June 30, 2021. At June 30, 2022, California accounted for 70.6% and New York accounted for 13.0% of loans in the Single Family loan category. California accounted for 68.3% and New York accounted for 18.8% of loans in the Multifamily loan category. California accounted for 11.9% and New York accounted for 40.5% of loans in the Commercial Real Estate loan category. At June 30, 2021, California accounted for 72.4% and New York accounted for 12.8% of loans in the Single Family loan category. California accounted for 72.5% and New York accounted for 14.5% of loans in the Multifamily loan category. California accounted for 12.4% and New York accounted for 54.2% of loans in the Commercial Real Estate loan category. Unfunded Loan Commitment Liabilities Unfunded loan commitment liabilities are included in “Accounts payable, accrued liabilities and other liabilities” in the Consolidated Balance Sheets. Provisions for the unfunded loan commitments are included in the Consolidated Statements of Income in “General and administrative expenses”. The following tables present a summary of the activity in the unfunded loan commitment liabilities for the periods indicated:
| Year Ended June 30,
(Dollars in thousands) | 2022 |  | 2021 |  | 2020
BALANCE—beginning of year | $ | 5,723 |  |  | $ | 323 |  |  | $ | 227 |
Effect of Adoption of ASC 326 | — |  |  | 5,700 |  |  | — |
Provision | 5,250 |  |  | (300) |  |  | 96 |
BALANCE—end of year | $ | 10,973 |  |  | $ | 5,723 |  |  | $ | 323 |

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI https://asc.fasb.org/subtopic&trid=2196772 + Details
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- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration