OTHER ASSETS

12 Months Ended

Jun. 30, 2024

Other Assets in the Consolidated Balance Sheets primarily comprises bank-owned life insurance, accrued interest receivable, derivatives, net deferred income tax assets, furniture, equipment and software, right-of-use lease assets, LIHTC investments and other receivables. For additional information on accrued interest receivable, see Note 5 - “Loans & Allowance for Credit Losses,” for additional information on derivatives, see Note 6 - “Derivatives” and for additional information on net deferred income tax assets, see Note 14 - “Income Taxes.” Other components of Other Assets are further detailed below.

Bank-owned Life Insurance. The following table summarizes the activity in the Company’s bank-owned life insurance (“BOLI”). Income related to bank-owned life insurance is included in “Banking and service fees” in the Consolidated Statements of Income.


(Dollars in thousands)	BOLI
Balance as of June 30, 2021	$	56,555
Additions	100,000

Change in contract value	4,220
Balance as of June 30, 2022	$	160,775

Death benefits	(1,805)
Change in contract value	4,444
Balance as of June 30, 2023	$	163,414


Change in contract value	5,360
Balance as of June 30, 2024	$	168,774

Furniture, equipment and software. A summary of the cost and accumulated depreciation and amortization for leasehold improvements, furniture, equipment and software is as follows:


	At June 30,
(Dollars in thousands)	2024		2023
Software	$	134,311	$	105,687
Computer hardware and equipment	32,195		26,685
Furniture and fixtures	11,788		10,689
Leasehold improvements	6,281		5,963
Total	$	184,575	$	149,024
Less accumulated depreciation and amortization	(111,956)		(95,660)
Furniture, equipment and software—net	$	72,619	$	53,364

Depreciation and amortization expense related to leasehold improvements, furniture, equipment and software for the fiscal years ended June 30, 2024, 2023 and 2022 was $16.2 million, $12.2 million and $13.1 million, respectively.

Operating Leases. The Company leases office space under operating lease agreements scheduled to expire at various dates. Operating lease expense for the fiscal years ended June 30, 2024, 2023 and 2022 was $12.4 million, $11.4 million, and $10.8 million, respectively.

Supplemental information related to the Company’s operating leases is as follows:


	At June 30,
(Dollars in thousands)	2024			2023
Right-of-use assets	$	59,989		$	63,565
Lease liabilities	$	65,923		69,630
Weighted-average remaining lease term	5.66 years			6.57 years
Weighted-average discount rate	3.09		%	3.00		%

Supplemental cash flow information related to leases is as follows:


	For the Fiscal Year Ended June 30,
(Dollars in thousands)	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities for operating leases—operating cash flows	$	11,821	$	10,658	$	9,888

The following table represents maturities of lease liabilities:


(Dollars in thousands)	June 30, 2024
Within one year	$	12,746
After one year and within two years	12,464
After two years and within three years	12,591
After three years and within four years	11,341
After four years within five years	10,465
After five years	12,135
Total lease payments	71,742
Less: amount representing interest	(5,819)
Total lease liability	$	65,923

As of June 30, 2024, the Company is in compliance with all covenants contained in lease agreements.

LIHTC Investments. The Company recognized the following income and tax benefits for its LIHTC investments.


	For the fiscal year ended June 30,
(Dollars in thousands)	2024		2023
Tax credits recognized	$	3,394	$	2,780
Other tax benefits recognized	1,466		759
Amortization	(3,574)		(2,697)
Net benefit (expense) included in income tax expense	1,286		842


Other income (loss) included in banking and service fees	2		5
Net benefit (expense) included in the Consolidated Statements of Income	$	1,288	$	847

The Company recognized the following investments on its balance sheets.


	For the fiscal year ended June 30,
(Dollars in thousands)	2024		2023
LIHTC investments	$	65,873	$	33,284
LIHTC unfunded commitments1	$	40,617	$	13,514

1LIHTC unfunded commitments are included in “Accounts Payable and Other Liabilities” on the Consolidated Balance Sheets.

For the fiscal years ended June 30, 2024 and 2023, there have been no significant modifications or events that resulted in the change in the nature of the LIHTC investments or any changes in the relationship with the underlying project.

For the fiscal years ended June 30, 2024 and 2023, there has been no impairment loss recognized from the forfeiture or ineligibility of income tax credits.