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FAIR VALUE (Tables)

12 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis

The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

			June 30, 2022
(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			$	—					$	1,758					$	—					$	1,758
Securities—Available-for-Sale:
Agency MBS1			—						25,325						—						25,325
Non-Agency MBS2			—						—						186,814						186,814
Municipal			—						3,248						—						3,248
Asset-backed securities and structured notes			—						47,131						—						47,131
Total—Securities—Available-for-Sale			$	—					$	75,704					$	186,814					$	262,518
Loans Held for Sale			$	—					$	4,973					$	—					$	4,973
Mortgage servicing rights			$	—					$	—					$	25,213					$	25,213
Other assets—Derivative instruments			$	—					$	—					$	464					$	464
LIABILITIES:
Other liabilities—Derivative instruments			$	—					$	—					$	—					$	—
			June 30, 2021
(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			$	—					$	1,983					$	—					$	1,983
Securities—Available-for-Sale:
Agency MBS1			$	—					$	23,913					$	—					$	23,913
Non-Agency MBS2			—						—						67,615						67,615
Municipal			—						3,565						—						3,565
Asset-backed securities and structured notes			—						92,242						—						92,242
Total—Securities—Available-for-Sale			$	—					$	119,720					$	67,615					$	187,335
Loans Held for Sale			$	—					$	29,768					$	—					$	29,768
Mortgage servicing rights			$	—					$	—					$	17,911					$	17,911
Other assets—Derivative Instruments			$	—					$	—					$	2,280					$	2,280
LIABILITIES:
Other liabilities—Derivative instruments			$	—					$	—					$	75					$	75

1Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac.

2Private sponsors of securities collateralized primarily by first - lien mortgage loans on commercial properties or by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option ARM mortgages.

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:

									Year Ended June 30, 2022
(Dollars in thousands)									Securities- Available-for- Sale: Non- Agency MBS						Mortgage Servicing Rights1						Derivative Instruments, net						Total
Assets:
Opening Balance									$	67,615					$	17,911					$	2,205					$	87,731
Transfers into Level 3									—						—						—						—
Transfers out of Level 3									—						—						—						—
Total gains or losses for the period:
Included in earnings—Mortgage banking income									—						2,278						(1,741)						537
Included in other comprehensive income									(3,244)						—						—						(3,244)
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions									131,446						5,024						—						136,470
Settlements									(9,003)						—						—						(9,003)
Closing balance									$	186,814					$	25,213					$	464					$	212,491
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period									$	—					$	2,278					$	(1,741)					$	537

1 Earnings from mortgage servicing rights were attributable to: Time and payoffs, representing a decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period of $4.1 million, and an increase in MSR value resulting from market-driven changes in interest rates of $6.4 million. Additions to mortgage servicing rights were retained upon sale of loans held for sale.

									Year Ended June 30, 2021
(Dollars in thousands)									Securities- Available-for- Sale: Non- Agency MBS						Mortgage Servicing Rights1						Derivative Instruments, net						Total
Assets:
Opening Balance									$	18,332					$	10,675					$	7,416					$	36,423
Transfers into Level 3									—						—						—						—
Transfers out of Level 3									—						—						—						—
Total gains or losses for the period:
Included in earnings—Mortgage banking income									—						(6,319)						(5,211)						(11,530)
Included in other comprehensive income									2,289						—						—						2,289
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions									49,245						13,555						—						62,800
Settlements									(2,251)						—						—						(2,251)
Closing balance									$	67,615					$	17,911					$	2,205					$	87,731
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period									$	—					$	(6,319)					$	(5,211)					$	(11,530)

1 Earnings from mortgage servicing rights were attributable to: Time and payoffs, representing a decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period of $7.2 million, and an increase in MSR value resulting from market-driven changes in interest rates of $0.9 million. Additions to mortgage servicing rights were retained upon sale of loans held for sale.

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:

June 30, 2022

(Dollars in thousands)

Fair Value

Valuation Technique

Unobservable Inputs

Range and Weighted Average

Securities – Non-agency MBS

$

186,814

Discounted Cash Flow

Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate over LIBOR

0.0 to 30.0% (21.4%) 0.0 to 7.9% (2.2%) 0.0 to 68.4% (26.7%) 2.7 to 9.3% (2.8%)

Mortgage Servicing Rights

$

25,213

Discounted Cash Flow

Projected Constant Prepayment Rate, Life (in years), Discount Rate

7.9 to 56.3% (11.0%) 1.2 to 9.9 (8.4) 9.5 to 11.5% (9.5%)

Derivative Instruments

$

464

Sales Comparison Approach

Projected Sales Profit of Underlying Loans

-3.1 to 0.8% (-1.2%)

June 30, 2021

(Dollars in thousands)

Fair Value

Valuation Technique

Unobservable Inputs

Range and Weighted Average

Securities – Non-agency MBS

$

67,615

Discounted Cash Flow

Projected Constant Prepayment Rate, Projected Constant Default Rate, Projected Loss Severity, Discount Rate over LIBOR

0.0 to 25.0% (2.7%) 0.0 to 5.6% (0.6%) 0.0 to 100.0% (19.4%) 2.7 to 7.2% (3.1%)

Mortgage Servicing Rights

$

17,911

Discounted Cash Flow

Projected Constant Prepayment Rate, Life (in years), Discount Rate

7.5 to 37.4% (11.5%) 1.7 to 7.5 (6.4) 9.5 to 13.0% (9.6%)

Derivative Instruments

$

2,205

Sales Comparison Approach

Projected Sales Profit of Underlying Loans

0.2 to 0.5% (0.3%)

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:

June 30, 2022

(Dollars in thousands)

Fair Value

Valuation Technique

Unobservable Input

Range (Weighted Average)1

Other real estate owned and foreclosed assets:

Autos and RVs

$

798

Sales comparison approach

Adjustment for differences between the comparable sales

-17.2 to 4.6% (-7.5%)

1 For 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, 2021

(Dollars in thousands)

Fair Value

Valuation Technique

Unobservable Input

Range (Weighted Average)1

Other real estate owned and foreclosed assets:

Single family real estate

$

6,547

Sales comparison approach

Adjustment for differences between the comparable sales

-1.5 to 6.1% (2.0%)

Autos & RVs

$

235

Sales comparison approach

Adjustment for differences between the comparable sales

-2.1 to 14.7% (-2.1%)

1 For 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.

Schedule of Fair Value Assets Measured for Impairment on Nonrecurring Basis

The table below summarizes the fair value of assets measured for impairment on a non-recurring basis:

			June 30, 2022
(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
Other real estate owned and foreclosed assets:
Autos & RVs			$	—					$	—					$	798					$	798
Total			$	—					$	—					$	798					$	798
			June 30, 2021
(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
Other real estate owned and foreclosed assets:
Single family real estate			$	—					$	—					$	6,547					$	6,547
Autos & RVs			—						—						235						235
Total			$	—					$	—					$	6,782					$	6,782

Schedule of Aggregate Fair Value, Contractual Balance, and Unrealized Gain of Loans Held For Sale

The aggregate fair value, contractual balance (including accrued interest), and unrealized gain for loans held for sale was as follows:

			At June 30,
(Dollars in thousands)			2022						2021						2020
Aggregate fair value			$	4,973					$	29,768					$	51,995
Contractual balance			4,881						28,940						49,700
Unrealized gain			$	92					$	828					$	2,295

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:

			At June 30,
(Dollars in thousands)			2022						2021						2020
Interest income			$	739					$	1,411					$	1,113
Change in fair value			(2,474)						(6,680)						7,531
Total			$	(1,735)					$	(5,269)					$	8,644

Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments at Year-end

The carrying amount and estimated fair values of financial instruments at year-end were as follows:

			June 30, 2022
(Dollars in thousands)			Carrying Amount						Level 1						Level 2						Level 3						Total Fair Value
Financial assets:
Cash, cash equivalents, cash segregated, and federal funds sold			$	1,574,699					$	1,574,699					$	—					$	—					$	1,574,699
Securities trading			1,758						—						1,758						—						1,758
Securities available-for-sale			262,518						—						75,704						186,814						262,518
Loans held for sale, at fair value			4,973						—						4,973						—						4,973
Loans held for sale, at lower of cost or fair value			10,938						—						—						10,985						10,985
Loans held for investment—net			14,091,061						—						—						14,015,157						14,015,157
Securities borrowed			338,980						—						—						329,963						329,963
Customer, broker-dealer and clearing receivables			417,417						—						—						414,383						414,383
Mortgage servicing rights			25,213						—						—						25,213						25,213
Financial liabilities:
Total deposits			13,946,422						—						12,812,512						—						12,812,512
Advances from the Federal Home Loan Bank			117,500						—						117,500						—						117,500
Borrowings, subordinated notes and debentures			445,244						—						416,947						—						416,947
Securities loaned			474,400						—						—						473,831						473,831
Customer, broker-dealer and clearing payables			511,654						—						—						471,859						471,859

			June 30, 2021
(Dollars in thousands)			Carrying Amount						Level 1						Level 2						Level 3						Total Fair Value
Financial assets:
Cash, cash equivalents, cash segregated, and federal funds sold			$	1,037,777					$	1,037,777					$	—					$	—					$	1,037,777
Securities trading			1,983						—						1,983						—						1,983
Securities available-for-sale			187,335						—						119,720						67,615						187,335
Loans held for sale, at fair value			29,768						—						29,768						—						29,768
Loans held for sale, at lower of cost or fair value			12,294						—						—						12,336						12,336
Loans and leases held for investment—net			11,414,814						—						—						11,833,102						11,833,102
Securities borrowed			619,088						—						—						619,274						619,274
Customer, broker-dealer and clearing receivables			369,815						—						—						369,815						369,815
Mortgage servicing rights			17,911						—						—						17,911						17,911
Financial liabilities:
Total deposits			10,815,797						—						10,297,450						—						10,297,450
Advances from the Federal Home Loan Bank			353,500						—						353,500						—						353,500
Borrowings, subordinated notes and debentures			221,358						—						210,196						—						210,196
Securities loaned			728,988						—						—						731,467						731,467
Customer, broker-dealer and clearing payables			535,425						—						—						535,425						535,425

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