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FAIR VALUE (Tables)

3 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The Company’s financial assets and liabilities measured at fair value on a recurring basis at September 30, 2022 and June 30, 2022 are classified in their entirety based on the lowest level of input significant to the fair value measurement.

						September 30, 2022
(Dollars in thousands)									Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)						Total
ASSETS:
Securities—Trading: Municipal									$	75					$	—					$	75
Securities—Available-for-Sale:
Agency MBS1									23,763						—						23,763
Non-Agency MBS2									—						184,012						184,012
Municipal									2,995						—						2,995
Asset-backed securities and structured notes									46,864						—						46,864
Total—Securities—Available-for-Sale									$	73,622					$	184,012					$	257,634
Loans Held for Sale									$	9,463					$	—					$	9,463
Mortgage servicing rights									$	—					$	26,373					$	26,373
Other assets—Derivative instruments									$	—					$	897					$	897
LIABILITIES:
Other liabilities—Derivative instruments									$	—					$	362					$	362
						June 30, 2022
(Dollars in thousands)									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									$	—					$	—					$	—

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

2 Private 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

Additional information is presented below about assets measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value:

									For the Three Months Ended
									September 30, 2022
(Dollars in thousands)									Securities – Available-for-Sale: Non-Agency RMBS						Mortgage Servicing Rights1						Derivative Instruments, net												Total
Opening Balance									$	186,814					$	25,213					$	464											$	212,491
Total gains or losses for the period:
Included in earnings—Mortgage banking income									—						953						71												1,024
Included in other comprehensive income									(2,473)						—						—												(2,473)
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions									—						207						—												207
Settlements									(329)						—						—												(329)
Closing balance									$	184,012					$	26,373					$	535											$	210,920
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period									$	—					$	953					$	71											$	1,024

1 Earnings from mortgage servicing rights (“MSR”) 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 $0.4 million, and an increase in MSR value resulting from market-driven changes in interest rates of $1.4 million. Additions to mortgage servicing rights were retained upon sale of loans held for sale.

									For the Three Months Ended
									September 30, 2021
(Dollars in thousands)									Securities – Available-for-Sale: Non-Agency RMBS						Mortgage Servicing Rights1						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									—						(1,185)						21						(1,164)
Included in other comprehensive income									(112)						—						—						(112)
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions									—						1,712						—						1,712
Settlements									(7,652)						—						—						(7,652)
Closing balance									$	59,851					$	18,438					$	2,226					$	80,515
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period									$	—					$	(1,185)					$	21					$	(1,164)

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 $1.6 million, and an increase in MSR value resulting from market-driven changes in interest rates of $0.4 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:

September 30, 2022

(Dollars in thousands)

Fair Value

Valuation Technique

Unobservable Input

Range (Weighted Average)

Securities – Non-agency MBS

$

184,012

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 15.9% (2.3%) 0.0 to 68.6% (26.6%) 2.7 to 8.8% (2.7%)

Mortgage Servicing Rights

$

26,373

Discounted Cash Flow

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

3.8 to 38.0% (9.3%) 0.9 to 13.0 (9.4) 9.5 to 11.0% (9.5%)

Derivative Instruments

$

535

Sales Comparison Approach

Projected Sales Profit of Underlying Loans

-3.1 to 1.2% (-1.2%)

June 30, 2022

(Dollars in thousands)

Fair Value

Valuation Technique

Unobservable Input

Range (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%)

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:

September 30, 2022

(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

$

4,534

Sales comparison approach

Adjustment for differences between the comparable sales

3.5 to 12.1% (4.1%)

Autos and RVs

$

768

Sales comparison approach

Adjustment for differences between the comparable sales

-13.7 to -0.5% (-3.4%)

June 30, 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

$

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.

Schedule of Fair Value Assets Measured on Nonrecurring Basis

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

			September 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:
Single family real estate			$	—					$	—					$	4,534					$	4,534
Autos and RVs			$	—					$	—					$	768					$	768
Total			$	—					$	—					$	5,302					$	5,302
			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 and RVs			—						—						798						798
Total			$	—					$	—					$	798					$	798

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

As of September 30, 2022 and June 30, 2022, 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)			September 30, 2022						June 30, 2022
Aggregate fair value			$	9,463					$	4,973
Contractual balance			9,348						4,881
Unrealized gain			$	115					$	92

Gains and losses from changes in fair value included in earnings for loans held for sale for the periods indicated below were:

									For the Three Months Ended
									September 30,
(Dollars in thousands)															2022						2021
Interest income															$	50					$	200
Change in fair value															91						43
Total															$	141					$	243

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

Carrying amounts and estimated fair values of financial instruments at September 30, 2022 and June 30, 2022 were:

			September 30, 2022
									Fair Value
(Dollars in thousands)			Carrying Amount						Level 1						Level 2						Level 3						Total Fair Value
Financial assets:
Cash and cash equivalents			$	1,698,048					$	1,698,048					$	—					$	—					$	1,698,048
Securities — trading			75						—						75						—						75
Securities — available-for-sale			257,634						—						73,622						184,012						257,634
Loans held for sale, at fair value			9,463						—						9,463						—						9,463
Loans held for sale, at lower of cost or fair value			10,476						—						—						10,489						10,489
Loans held for investment—net			15,211,573						—						—						14,893,655						14,893,655
Securities borrowed			87,622						—						—						86,728						86,728
Customer, broker-dealer and clearing receivables			410,842						—						—						411,171						411,171
Mortgage servicing rights			26,373						—						—						26,373						26,373
Financial liabilities:
Total deposits			15,176,631						—						13,373,113						—						13,373,113
Advances from the Federal Home Loan Bank			112,500						—						105,387						—						105,387
Borrowings, subordinated notes and debentures			425,818						—						385,257						—						385,257
Securities loaned			206,889						—						—						206,910						206,910
Customer, broker-dealer and clearing payables			500,584						—						—						500,584						500,584

			June 30, 2022
									Fair Value
(Dollars in thousands)			Carrying Amount						Level 1						Level 2						Level 3						Total Fair Value
Financial assets:
Cash and cash equivalents			$	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

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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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