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FAIR VALUE (Tables)

9 Months Ended

Mar. 31, 2022

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, 2022 and June 30, 2021. 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, 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			$	—					$	366					$	—					$	366
Securities—Available-for-Sale:
Agency MBS1			—						27,203						—						27,203
Non-Agency MBS2			—						—						151,479						151,479
Municipal			—						3,311						—						3,311
Asset-backed securities and structured notes			—						47,517						—						47,517
Total—Securities—Available-for-Sale			$	—					$	78,031					$	151,479					$	229,510
Loans Held for Sale			$	—					$	19,611					$	—					$	19,611
Mortgage servicing rights			$	—					$	—					$	23,519					$	23,519
Other assets—Derivative instruments			$	—					$	—					$	2,154					$	2,154
LIABILITIES:
Other liabilities—Derivative instruments			$	—					$	—					$	1,004					$	1,004
			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:

									For the Three Months Ended
									March 31, 2022
(Dollars in thousands)									Securities – Available-for-Sale: Non-Agency MBS						Mortgage Servicing Rights						Derivative Instruments, net												Total
Opening balance									$	58,752					$	20,110					$	1,377											$	80,239
Total gains or losses for the period:
Included in earnings—Mortgage banking income									—						2,316						(227)												2,089
Included in other comprehensive income									(1,841)						—						—												(1,841)
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions									95,000						1,093						—												96,093
Settlements									(432)						—						—												(432)
Closing balance									$	151,479					$	23,519					$	1,150											$	176,148
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period									$	—					$	2,316					$	(227)											$	2,089
									For the Nine Months Ended
									March 31, 2022
(Dollars in thousands)									Securities – Available-for-Sale: Non-Agency RMBS						Mortgage Servicing Rights						Derivative Instruments, net												Total
Opening Balance									$	67,615					$	17,911					$	2,205											$	87,731
Total gains or losses for the period:
Included in earnings—Mortgage banking income									—						1,229						(1,055)												174
Included in other comprehensive income									(2,480)						—						—												(2,480)
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions									95,000						4,379						—												99,379
Settlements									(8,656)						—						—												(8,656)
Closing balance									$	151,479					$	23,519					$	1,150											$	176,148
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period									$	—					$	1,229					$	(1,055)											$	174

									For the Three Months Ended
									March 31, 2021
(Dollars in thousands)									Securities – Available-for-Sale: Non-Agency MBS						Mortgage Servicing Rights						Derivative Instruments, net						Total
Opening balance									$	17,135					$	14,314					$	7,979					$	39,428
Total gains or losses for the period:
Included in earnings—Mortgage banking income									—						(1,221)						(1,151)						(2,372)
Included in other comprehensive income									913						—						—						913
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions									—						3,538						—						3,538
Settlements									(671)						—						—						(671)
Closing balance									$	17,377					$	16,631					$	6,828					$	40,836
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period									$	—					$	(1,221)					$	(1,151)					$	(2,372)
									For the Nine Months Ended
									March 31, 2021
(Dollars in thousands)									Securities – Available-for-Sale: Non-Agency RMBS						Mortgage Servicing Rights						Derivative Instruments, net						Total
Opening Balance									$	18,332					$	10,675					$	7,416					$	36,423
Total gains or losses for the period:
Included in earnings—Mortgage banking income									—						(5,266)						(588)						(5,854)
Included in other comprehensive income									607						—						—						607
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions									—						11,222						—						11,222
Settlements									(1,562)						—						—						(1,562)
Closing balance									$	17,377					$	16,631					$	6,828					$	40,836
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period									$	—					$	(5,266)					$	(588)					$	(5,854)

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, 2022

(Dollars in thousands)

Fair Value

Valuation Technique

Unobservable Input

Range (Weighted Average)

Securities – Non-agency MBS

$

151,479

Discounted Cash Flow

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

0.0 to 30.0% (19.3%) 0.0 to 6.7% (2.0%) 0.0 to 68.3% (24.9%) 2.7 to 6.5% (2.8%)

Mortgage Servicing Rights

$

23,519

Discounted Cash Flow

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

9.8 to 51.0% (13.4%) 1.4 to 8.6 (7.2) 9.5 to 11.3% (9.5%)

Derivative Instruments

$

1,150

Sales Comparison Approach

Projected Sales Profit of Underlying Loans

(1.0) to 0.2% ((0.2)%)

June 30, 2021

(Dollars in thousands)

Fair Value

Valuation Technique

Unobservable Input

Range (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:

March 31, 2022

(Dollars in thousands)

Fair Value

Valuation Technique(s)

Unobservable Input

Range (Weighted Average) 1

Other real estate owned and foreclosed assets:

Autos and RVs

$

564

Sales comparison approach

Adjustment for differences between the comparable sales

(10.6) to 15.5% ((2.7)%)

June 30, 2021

(Dollars in thousands)

Fair Value

Valuation Technique(s)

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 and 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 on Nonrecurring Basis

The table below summarizes assets measured for impairment on a non-recurring basis:

			March 31, 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 and RVs			$	—					$	—					$	564					$	564
Total			$	—					$	—					$	564					$	564
			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 and RVs			—						—						235						235
Total			$	—					$	—					$	6,782					$	6,782

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

As of March 31, 2022 and June 30, 2021, the aggregate fair value of loans held for sale, carried at fair value, contractual balance (including accrued interest), and unrealized gain (loss) was as follows:

(Dollars in thousands)			March 31, 2022						June 30, 2021
Aggregate fair value			$	19,611					$	29,768
Contractual balance			19,749						28,940
Unrealized gain (loss)			$	(138)					$	828

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)			2022						2021						2022						2021
Interest income			$	204					$	387					$	598					$	1,189
Change in fair value			(1,041)						(1,829)						(2,019)						(1,369)
Total			$	(837)					$	(1,442)					$	(1,421)					$	(180)

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, 2022 and June 30, 2021 were as follows:

			March 31, 2022
									Fair Value
(Dollars in thousands)			Carrying Amount						Level 1						Level 2						Level 3						Total Fair Value
Financial assets:
Cash and cash equivalents			$	1,249,314					$	1,249,314					$	—					$	—					$	1,249,314
Securities — trading			366						—						366						—						366
Securities — available-for-sale			229,510						—						78,031						151,479						229,510
Loans held for sale, at fair value			19,611						—						19,611						—						19,611
Loans held for sale, at lower of cost or fair value			11,182						—						—						11,255						11,255
Loans held for investment—net			13,093,603						—						—						13,149,215						13,149,215
Securities borrowed			274,644						—						—						263,274						263,274
Customer, broker-dealer and clearing receivables			510,561						—						—						502,086						502,086
Mortgage servicing rights			23,519						—						—						23,519						23,519
Financial liabilities:
Total deposits			12,733,002						—						11,750,900						—						11,750,900
Advances from the Federal Home Loan Bank			152,500						—						151,017						—						151,017
Borrowings, subordinated notes and debentures			381,682						—						358,541						—						358,541
Securities loaned			447,748						—						—						449,181						449,181
Customer, broker-dealer and clearing payables			543,905						—						—						532,854						532,854

			June 30, 2021
									Fair Value
(Dollars in thousands)			Carrying Amount						Level 1						Level 2						Level 3						Total Fair Value
Financial assets:
Cash and cash equivalents			$	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 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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