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LOANS & ALLOWANCE FOR CREDIT LOSSES
 12 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
LOANS & ALLOWANCE FOR CREDIT LOSSES LOANS & ALLOWANCE FOR CREDIT LOSSES
The Company categorizes the loan portfolio into five segments: Single Family - Mortgage & Warehouse, Multifamily and Commercial Mortgage, Commercial Real Estate, Commercial & Industrial - Non-Real Estate, Auto & Consumer. For further detail of the segments of the Company’s loan portfolio, refer to Note 1—“Organizations and Summary of Significant Accounting Policies.”
The following table sets forth the composition of the loan portfolio:
(Dollars in thousands)
June 30, 2025
June 30, 2024
Single Family - Mortgage & Warehouse$4,395,278 $4,178,832 
Multifamily and Commercial Mortgage
2,940,739 3,861,931 
Commercial Real Estate
6,937,187 6,088,622 
Commercial & Industrial - Non-RE6,795,497 5,241,766 
Auto & Consumer482,996 431,660 
Total gross loans21,551,697 19,802,811 
Allowance for credit losses - loans(290,049)(260,542)
Unaccreted premiums (discounts) and loan fees(212,038)(310,884)
Total net loans$21,049,610 $19,231,385 
Accrued interest receivable on loans held for investment totaled $109.6 million and $119.8 million as of June 30, 2025 and 2024, respectively.
At June 30, 2025 and 2024, the Company pledged certain loans totaling $4,284.7 million and $4,942.8 million, respectively, to the FHLB and $8,227.7 million and $8,197.2 million, respectively, to the Federal Reserve Bank of San Francisco (“FRBSF”).
The following table presents the components of the provision for credit losses:
For the Fiscal Year Ended June 30,
(Dollars in thousands)202520242023
Provision for credit losses - loans$55,077 $32,750 $24,750 
Provision for credit losses - unfunded lending commitments668 (250)(500)
    Total provision for credit losses$55,745 $32,500 $24,250 
The following tables summarize activity in the allowance for credit losses - loans by portfolio segment:
June 30, 2025
(Dollars in thousands)Single Family-Mortgage & WarehouseMultifamily and Commercial MortgageCommercial Real EstateCommercial & Industrial - Non-REAuto & ConsumerTotal
Balance at July 1, 2024
$16,943 $70,771 $87,780 $76,032 $9,016 $260,542 
Provision (benefit) for credit losses - loans(1,858)(36,655)25,934 54,432 13,224 55,077 
Charge-offs(3,036)(8,565)(165)(8,825)(9,715)(30,306)
Recoveries62 689 255 — 3,730 4,736 
Balance at June 30, 2025
$12,111 $26,240 $113,804 $121,639 $16,255 $290,049 
June 30, 2024
(Dollars in thousands)Single Family-Mortgage & WarehouseMultifamily and Commercial MortgageCommercial Real EstateCommercial & Industrial - Non-REAuto & ConsumerTotal
Balance at July 1, 2023
$17,503 $16,848 $72,755 $46,347 $13,227 $166,680 
Allowance for credit losses at acquisition of PCD loans— 58,997 11,125 — — 70,122 
Provision (benefit) for credit losses - loans(489)(4,434)3,900 29,769 4,004 32,750 
Charge-offs(172)(640)— (84)(11,013)(11,909)
Recoveries101 — — — 2,798 2,899 
Balance at June 30, 2024
$16,943 $70,771 $87,780 $76,032 $9,016 $260,542 
June 30, 2023
(Dollars in thousands)Single Family-Mortgage & WarehouseMultifamily and Commercial MortgageCommercial Real EstateCommercial & Industrial - Non-REAuto & ConsumerTotal
Balance at July 1, 2021$19,670 $14,655 $69,339 $30,808 $14,145 $148,617 
Provision (benefit) for credit losses - loans(2,302)2,193 3,416 15,521 5,922 24,750 
Charge-offs(314)— — — (9,142)(9,456)
Recoveries449 — — 18 2,302 2,769 
Balance at June 30, 2023
$17,503 $16,848 $72,755 $46,347 $13,227 $166,680 

The allowance for credit losses increased from June 30, 2024 to June 30, 2025, primarily due to the provision for credit losses, partially offset by net charge-offs. The provision for credit losses was primarily driven by the commercial & industrial - non-RE and commercial real estate portfolios, reflecting loan growth, as well as the quantitative impact of macroeconomic variables in the allowance for credit losses model, including the 5-year and 10-year U.S. Treasury rates and unemployment rates.
Loan products within each portfolio contain varying collateral types which impact the estimate of the loss given default utilized in the calculation of the allowance. For further discussion of the model method of estimating expected lifetime credit losses see Note 1—“Organizations and Summary of Significant Accounting Policies.”
The following tables present a summary of the activity in the unfunded loan commitment liabilities for the periods indicated:
For the Fiscal Year Ended June 30,
(Dollars in thousands)202520242023
BALANCE—beginning of year$10,223 $10,473 $10,973 
Provision (Benefit)668 (250)(500)
BALANCE—end of year$10,891 $10,223 $10,473 
The following table presents LTVs for the Company’s real estate loans outstanding as of June 30, 2025:
Total Real Estate LoansSingle Family - Mortgage & WarehouseMultifamily and Commercial MortgageCommercial Real Estate
Weighted-Average LTV46.2 %56.7 %49.4 %45.4 %
Median LTV51.0 %53.5 %47.9 %45.7 %
Credit Quality Disclosure. The following tables provide the composition of loans that are performing and nonaccrual by portfolio segment:
June 30, 2025
(Dollars in thousands)Single Family-Mortgage & WarehouseMultifamily and Commercial MortgageCommercial Real EstateCommercial & Industrial - Non-REAuto & ConsumerTotal
Performing$4,351,082 $2,907,702 $6,907,964 $6,733,693 $480,870 $21,381,311 
Nonaccrual44,196 33,037 29,223 61,804 2,126 170,386 
Total$4,395,278 $2,940,739 $6,937,187 $6,795,497 $482,996 $21,551,697 
Nonaccrual loans to total loans0.79 %
June 30, 2024
(Dollars in thousands)Single Family-Mortgage & WarehouseMultifamily and Commercial MortgageCommercial Real EstateCommercial & Industrial - Non-REAuto & ConsumerTotal
Performing$4,133,121 $3,826,877 $6,062,520 $5,237,746 $429,188 $19,689,452 
Nonaccrual45,711 35,054 26,102 4,020 $2,472 113,359 
Total$4,178,832 $3,861,931 $6,088,622 $5,241,766 $431,660 $19,802,811 
Nonaccrual loans to total loans0.57 %
There were no nonaccrual loans without an allowance for credit losses as of June 30, 2025 and 2024. There was no interest income recognized on nonaccrual loans in the fiscal year ended June 30, 2025 and 2024.
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. In addition to the borrower’s primary source of repayment, in its risk rating process the Company considers all available sources of repayment, including obligor guaranties and liquidations of pledged collateral, where individually or together such sources would fully repay the loan on a timely basis. The Company analyzes loans individually by classifying the loans based on credit risk. The Company uses the following internally-defined risk ratings:
Pass. Loans where repayment in full is expected through any of the borrower’s sources of repayment.
Special Mention. Loans where any credit risk is not considered significant yet require management’s attention given certain currently identified characteristics of the borrower, collateral securing the loan and the obligor’s net worth and paying capacity. If the identified credit risks are not adequately monitored or mitigated, the loan may weaken and the Company’s credit position with respect to the loan may deteriorate in the future.
Substandard. Loans where currently identified characteristics of the borrower, collateral securing the loan and the obligor’s net worth and paying capacity, taken together, could jeopardize the repayment of the debt. A loan not fully supported by at least one available source of repayment and involves a distinct possibility that the Company will sustain some loss in that loan if the weakness is not cured. A loan supported by a guaranty, collateral sufficient to incentivize a sale or refinance, or cash flow that is sufficient for timely repayment in full will not be classified as substandard even if the loan has a well-defined weakness in other sources of repayment.
Doubtful. Loans reflecting the same characteristics as those classified as substandard, but for which repayment in full in accordance with the contractual terms is currently considered highly unlikely.
The Company reviews and grades loans following a continuous 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 following tables present the composition of loans by portfolio segment, fiscal year of origination and credit quality indicator, and the amount of gross charge-offs:
June 30, 2025
Loans Held for Investment by Fiscal Year of Origination
Revolving Loans Total
(Dollars in thousands)20252024202320222021Prior
Single Family-Mortgage & Warehouse
Pass$750,357 $269,165 $451,330 $1,067,144 $434,352 $715,620 $599,406 $4,287,374 
Special Mention2,129 1,080 5,362 3,140 5,254 26,604 9,967 53,536 
Substandard— — — 7,255 6,720 40,393 — 54,368 
Doubtful— — — — — — — — 
Total752,486 270,245 456,692 1,077,539 446,326 782,617 609,373 4,395,278 
Gross charge-offs— 340 — 400 — 2,296 — 3,036 
Multifamily and Commercial Mortgage
Pass75,755 22,435 632,120 859,189 422,683 842,787 1,450 2,856,419 
Special Mention— — 3,400 — 7,255 18,272 — 28,927 
Substandard— — 8,530 13,199 — 33,664 — 55,393 
Doubtful— — — — — — — — 
Total75,755 22,435 644,050 872,388 429,938 894,723 1,450 2,940,739 
Gross charge-offs
— 375 86 5 — 8,099 — 8,565 
Commercial Real Estate
Pass3,135,530 1,342,372 679,875 575,642 152,581 47,214 960,145 6,893,359 
Special Mention— — — — — — — 
Substandard— — — 9,500 5,000 14,723 14,605 43,828 
Doubtful— — — — — — — — 
Total3,135,530 1,342,372 679,875 585,142 157,581 61,937 974,750 6,937,187 
Gross charge-offs— — — 165 — — — 165 
Commercial & Industrial - Non-RE
Pass1,231,118 809,347 310,043 120,385 38,397 28,311 3,928,415 6,466,016 
Special Mention— 45,120 — — 93 — 10,023 55,236 
Substandard3,747 10,719 9,244 135,778 2,486 2,989 99,282 264,245 
Doubtful— — — 10,000 — — — 10,000 
Total1,234,865 865,186 319,287 266,163 40,976 31,300 4,037,720 6,795,497 
Gross charge-offs— — 883 — 5,942 — 2,000 8,825 
Auto & Consumer
Pass213,318 47,587 75,120 109,228 23,084 11,448 — 479,785 
Special Mention295 52 186 270 60 10 — 873 
Substandard154 48 365 807 549 415 — 2,338 
Doubtful— — — — — — — — 
Total213,767 47,687 75,671 110,305 23,693 11,873 — 482,996 
Gross charge-offs589 813 2,363 3,340 797 1,813 — 9,715 
Total
Pass5,406,078 2,490,906 2,148,488 2,731,588 1,071,097 1,645,380 5,489,416 20,982,953 
Special Mention2,424 46,252 8,948 3,410 12,662 44,886 19,990 138,572 
Substandard3,901 10,767 18,139 166,539 14,755 92,184 113,887 420,172 
Doubtful— — — 10,000 — — — 10,000 
Total$5,412,403 $2,547,925 $2,175,575 $2,911,537 $1,098,514 $1,782,450 $5,623,293 $21,551,697 
As a % of total gross loans25.1%11.8%10.1%13.5%5.1%8.3%26.1%100.0%
Total gross charge-offs
$589 $1,528 $3,332 $3,910 $6,739 $12,208 $2,000 $30,306 
June 30, 2024
Loans Held for Investment by Fiscal Year of Origination
Revolving Loans Total
(Dollars in thousands)20242023202220212020Prior
Single Family-Mortgage & Warehouse
Pass$491,822 $590,060 $1,200,230 $487,132 $291,047 $720,049 $256,778 $4,037,118 
Special Mention31,000 — 24,489 665 6,591 26,873 — 89,618 
Substandard— 283 6,728 — 14,720 30,365 — 52,096 
Doubtful— — — — — — — — 
Total522,822 590,343 1,231,447 487,797 312,358 777,287 256,778 4,178,832 
Year-to-date gross charge-offs— — — — — 172 — 172 
Multifamily and Commercial Mortgage
Pass36,058 700,163 994,004 595,299 510,341 811,184 — 3,647,049 
Special Mention— 29,325 46,194 17,478 9,011 10,277 — 112,285 
Substandard— 13,489 12,509 15,507 41,013 20,079 — 102,597 
Doubtful— — — — — — — — 
Total36,058 742,977 1,052,707 628,284 560,365 841,540 — 3,861,931 
Year-to-date gross charge-offs— — — — 640 — — 640 
Commercial Real Estate
Pass1,952,001 1,419,399 1,456,643 221,061 7,741 53,000 866,686 5,976,531 
Special Mention— — 27,452 — — — — 27,452 
Substandard— 5,600 43,700 5,000 — 30,339 — 84,639 
Doubtful— — — — — — — — 
Total1,952,001 1,424,999 1,527,795 226,061 7,741 83,339 866,686 6,088,622 
Year-to-date gross charge-offs— — — — — — — — 
Commercial & Industrial - Non-RE
Pass991,497 458,454 238,397 44,923 10,422 12,867 3,295,425 5,051,985 
Special Mention— 1,613 731 1,818 — — 5,349 9,511 
Substandard— 34,433 122,729 1,031 — 2,988 19,089 180,270 
Doubtful— — — — — — — — 
Total991,497 494,500 361,857 47,772 10,422 15,855 3,319,863 5,241,766 
Year-to-date gross charge-offs— — — — — 84 — 84 
Auto & Consumer
Pass65,766 114,615 177,043 43,287 13,402 14,056 — 428,169 
Special Mention33 213 422 176 — 61 — 905 
Substandard142 547 1,264 410 114 109 — 2,586 
Doubtful— — — — — — — — 
Total65,941 115,375 178,729 43,873 13,516 14,226 — 431,660 
Year-to-date gross charge-offs202 3,471 5,212 1,556 303 269 — 11,013 
Total
Pass3,537,144 3,282,691 4,066,317 1,391,702 832,953 1,611,156 4,418,889 19,140,852 
Special Mention31,033 31,151 99,288 20,137 15,602 37,211 5,349 239,771 
Substandard142 54,352 186,930 21,948 55,847 83,880 19,089 422,188 
Doubtful— — — — — — — — 
Total$3,568,319 $3,368,194 $4,352,535 $1,433,787 $904,402 $1,732,247 $4,443,327 $19,802,811 
As a % of total gross loans18.0%17.1%22.0%7.2%4.6%8.7%22.4%100.0%
Total year-to-date gross charge-offs202 3,471 5,212 1,556 943 525 — 11,909 
The following tables provide the aging of loans by portfolio segment:
June 30, 2025
(Dollars in thousands)Current30-59 Days60-89 Days90+ DaysTotal
Single Family-Mortgage & Warehouse$4,322,681 $13,302 $16,395 $42,900 $4,395,278 
Multifamily and Commercial Mortgage2,870,972 36,649 549 32,569 2,940,739 
Commercial Real Estate6,900,904 — 7,060 29,223 6,937,187 
Commercial & Industrial - Non-RE6,783,440 — — 12,057 6,795,497 
Auto & Consumer
477,694 3,025 920 1,357 482,996 
Total$21,355,691 $52,976 $24,924 $118,106 $21,551,697 
As a % of total gross loans99.09 %0.25 %0.12 %0.55 %100.00 %
June 30, 2024
(Dollars in thousands)Current30-59 Days60-89 Days90+ DaysTotal
Single Family-Mortgage & Warehouse$4,070,186 $46,387 $18,401 $43,858 $4,178,832 
Multifamily and Commercial Mortgage3,795,387 13,074 8,554 44,916 3,861,931 
Commercial Real Estate6,024,470 — 25,950 38,202 6,088,622 
Commercial & Industrial - Non-RE
5,240,734 — — 1,032 5,241,766 
Auto & Consumer424,555 4,644 996 1,465 431,660 
Total$19,555,332 $64,105 $53,901 $129,473 $19,802,811 
As a % of total gross loans98.75 %0.33 %0.27 %0.65 %100.00 %
Loans reaching 90+ days past due are generally placed on nonaccrual. As of June 30, 2024, there was $20.2 million of loans over 90 days past due and still accruing interest. As of June 30, 2025 no loans were over 90 days past due and still accruing interest.
Single family mortgage loans in process of foreclosure were $30.4 million and $20.1 million as of June 30, 2025 and 2024, respectively.
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, 2025 and June 30, 2024.
At June 30, 2025, California accounted for 70.5% and New York accounted for 8.6% of loans in the Single Family loan category. California accounted for 48.5% and New York accounted for 37.1% of loans in the Multifamily loan category. New York accounted for 36.8%, Florida accounted for 19.5% and Texas accounted for 10.2% of loans in the Commercial Real Estate loan category.
At June 30, 2024, California accounted for 69.3% and New York accounted for 11.7% of loans in the Single Family loan category. California accounted for 49.6% and New York accounted for 38.9% of loans in the Multifamily loan category. New York accounted for 34.2% and Florida accounted for 10.4% of loans in the Commercial Real Estate loan category.
Related Party Loans
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, which is summarized in the following table:
At or for the Fiscal Year Ended June 30,
(Dollars in thousands)20252024
Outstanding loan balance$29,146 $29,673 
Loans originated and funded$372 $1,044 
Principal repayments$899 $552 
Loan Modifications to Borrowers Experiencing Financial Difficulty. The Company may grant certain modifications of loans to borrowers experiencing financial difficulty, which effective following the adoption of ASU 2022-02, are reported as financial difficulty modifications (“FDMs”). The Company’s modification programs provide various modifications to borrowers experiencing financial difficulty, which may include interest rate reductions, term extensions, payment delays and/or principal forgiveness. FDMs during the fiscal year ended June 30, 2025 and 2024 were not significant.