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LOANS & ALLOWANCE FOR CREDIT LOSSES
 9 Months Ended
Mar. 31, 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 (“Non-RE”) and Auto & Consumer. For further detail of the segments of the Company’s loan portfolio, see Note 1—“Organizations and Summary of Significant Accounting Policies” in the 2024 Form 10-K.
The following table sets forth the composition of the loan portfolio:
(Dollars in thousands)March 31, 2025June 30, 2024
Single Family - Mortgage & Warehouse$4,194,821 $4,178,832 
Multifamily and Commercial Mortgage1
3,340,618 3,861,931 
Commercial Real Estate1
6,356,559 6,088,622 
Commercial & Industrial - Non-RE6,389,964 5,241,766 
Auto & Consumer447,294 431,660 
Total gross loans20,729,256 19,802,811 
Allowance for credit losses - loans(279,950)(260,542)
Unaccreted premiums (discounts) and loan fees(255,676)(310,884)
Total net loans$20,193,630 $19,231,385 
1 Includes purchased credit deteriorated (“PCD”) loans of $280.0 million and $284.0 million in Multifamily and Commercial Mortgage and $44.5 million and $44.5 million in Commercial Real Estate as of March 31, 2025 and June 30, 2024, respectively. For further detail on PCD loans, see Note 1—“Organizations and Summary of Significant Accounting Policies” in the 2024 Form 10-K.
Accrued interest receivable on loans held for investments totaled $113.6 million and $119.8 million as of March 31, 2025 and June 30, 2024, respectively.
At March 31, 2025 and June 30, 2024, the Company pledged certain loans totaling $4,272.6 million and $4,942.8 million, respectively, to the FHLB and $8,771.8 million and $8,197.2 million, respectively, to the Federal Reserve Bank of San Francisco (“FRBSF”).
The following table presents loan-to-value (“LTV”) for the Company’s real estate loans outstanding as of March 31, 2025:
Total Real Estate LoansSingle Family - Mortgage & WarehouseMultifamily and Commercial MortgageCommercial Real Estate
Weighted-Average LTV48.4 %56.2 %50.3 %42.2 %
Median LTV51.2 %53.5 %48.4 %43.9 %
The following table presents the components of the provision for credit losses:
For the Three Months Ended March 31,
For the Nine Months Ended March 31,
(Dollars in thousands)
2025202420252024
Provision for credit losses - loans
$13,750 $9,000 $36,998 $27,250 
Provision for credit losses - unfunded lending commitments
750 (3,000)3,750 (750)
    Total provision for credit losses
$14,500 $6,000 $40,748 $26,500 
The following tables summarize activity in the allowance for credit losses - loans by portfolio segment:
For the Three Months Ended March 31, 2025
(Dollars in thousands)Single Family-Mortgage & WarehouseMultifamily and Commercial MortgageCommercial Real EstateCommercial & Industrial - Non-REAuto & ConsumerTotal
Balance at January 1, 2025
$16,104 $56,077 $102,454 $84,455 $11,515 $270,605 
Provision (benefit) for credit losses - loans1,593 (7,976)(12,870)29,921 3,082 13,750 
Charge-offs(2,297)(1,131)— (753)(2,026)(6,207)
Recoveries4 689 255 — 854 1,802 
Balance at March 31, 2025
$15,404 $47,659 $89,839 $113,623 $13,425 $279,950 
For the Three Months Ended March 31, 2024
(Dollars in thousands)Single Family-Mortgage & WarehouseMultifamily and Commercial MortgageCommercial Real EstateCommercial & Industrial - Non-REAuto & ConsumerTotal
Balance at January 1, 2024
$15,356 $78,353 $77,778 $69,201 $11,061 $251,749 
Provision (benefit) for credit losses - loans1,629 (1,856)5,064 2,809 1,354 9,000 
Charge-offs(90)(139)— — (3,776)(4,005)
Recoveries70 — — — 708 778 
Balance at March 31, 2024
$16,965 $76,358 $82,842 $72,010 $9,347 $257,522 
For the Nine Months Ended March 31, 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 - loans702 (16,116)1,804 41,506 9,102 36,998 
Charge-offs(2,297)(7,685)— (3,915)(7,370)(21,267)
Recoveries56 689 255 — 2,677 3,677 
Balance at March 31, 2025
$15,404 $47,659 $89,839 $113,623 $13,425 $279,950 
For the Nine Months Ended March 31, 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— 58,972 11,125 — — 70,097 
Provision (benefit) for credit losses - loans(461)677 (1,038)25,749 2,323 27,250 
Charge-offs(170)(139)— (86)(8,378)(8,773)
Recoveries93 — — — 2,175 2,268 
Balance at March 31, 2024
$16,965 $76,358 $82,842 $72,010 $9,347 $257,522 
For the three and nine months ended March 31, 2025, the allowance for credit losses for loans increased as a result of 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 portfolio, 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. The provision was also impacted by increases in specific reserves and certain qualitative adjustments.
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 credit losses for loans. For further discussion of the model method of estimating expected lifetime credit losses, see Note 1—“Organizations and Summary of Significant Accounting Policies” in the 2024 Form 10-K.
The following tables present a summary of the activity in the allowance for credit losses for off-balance sheet lending commitments:
Three Months Ended March 31,
(Dollars in thousands)20252024
Balance at January 1,
$13,223 $12,723 
Provision (benefit) for credit losses - unfunded lending commitments750 (3,000)
Balance at March 31,
$13,973 $9,723 
Nine Months Ended March 31,
(Dollars in thousands)20252024
Balance at July 1,
$10,223 $10,473 
Provision (benefit) for credit losses - unfunded lending commitments3,750 (750)
Balance at March 31,
$13,973 $9,723 
The increase in the allowance for off-balance sheet lending commitments for the three and nine months ended March 31, 2025, was primarily driven by unfunded lending commitment growth, primarily in the commercial real estate and commercial & industrial - non-RE portfolios.
Credit Quality Disclosures. The following tables provide the composition of loans that are performing and nonaccrual by portfolio segment:
March 31, 2025
(Dollars in thousands)Single Family-Mortgage & WarehouseMultifamily and Commercial MortgageCommercial Real EstateCommercial & Industrial - Non-REAuto & ConsumerTotal
Performing$4,151,274 $3,306,746 $6,322,424 $6,318,810 $444,942 $20,544,196 
Nonaccrual43,547 33,872 34,135 71,154 2,352 185,060 
Total$4,194,821 $3,340,618 $6,356,559 $6,389,964 $447,294 $20,729,256 
Nonaccrual loans to total loans0.89 %
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 March 31, 2025 and June 30, 2024. There was no interest income recognized on nonaccrual loans in the three and nine months ended March 31, 2025 and 2024. Loans reaching 90 days past due are generally placed on nonaccrual status and risk rated as substandard or doubtful. Loans not yet reaching 90 days past due may be placed on nonaccrual status based on management’s assessment of the aging of contractual principal amounts due, among other factors.
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 year-to-date gross charge-offs.
March 31, 2025
Loans Held for Investment by Fiscal Year of Origination
Revolving Loans Total
(Dollars in thousands)20252024202320222021Prior
Single Family-Mortgage & Warehouse
Pass$487,621 $319,582 $473,700 $1,086,704 $453,658 $785,879 $490,429 $4,097,573 
Special Mention— — — 4,100 9,051 24,670 7,602 45,423 
Substandard— — — 12,579 1,100 38,146 — 51,825 
Doubtful— — — — — — — — 
Total487,621 319,582 473,700 1,103,383 463,809 848,695 498,031 4,194,821 
Year-to-date gross charge-offs— — — — — 2,297 — 2,297 
Multifamily and Commercial Mortgage
Pass43,011 26,655 642,262 952,205 464,138 1,070,737 — 3,199,008 
Special Mention— — 5,296 41,474 3,150 18,293 — 68,213 
Substandard— — 18,530 13,262 — 41,605 — 73,397 
Doubtful— — — — — — — — 
Total43,011 26,655 666,088 1,006,941 467,288 1,130,635 — 3,340,618 
Year-to-date gross charge-offs— — — — — 7,685 — 7,685 
Commercial Real Estate
Pass2,154,798 1,486,552 816,851 732,780 146,817 44,812 925,206 6,307,816 
Special Mention— — — — — — — — 
Substandard— — — 14,324 5,000 14,810 14,609 48,743 
Doubtful— — — — — — — — 
Total2,154,798 1,486,552 816,851 747,104 151,817 59,622 939,815 6,356,559 
Year-to-date gross charge-offs— — — — — — — — 
Commercial & Industrial - Non-RE
Pass667,082 820,277 384,897 87,383 36,981 98,110 3,911,588 6,006,318 
Special Mention— 16,188 — 45,774 — — 20,831 82,793 
Substandard— 12,233 32,642 131,250 2,745 2,989 104,084 285,943 
Doubtful— — — 10,000 — — 4,910 14,910 
Total667,082 848,698 417,539 274,407 39,726 101,099 4,041,413 6,389,964 
Year-to-date gross charge-offs— — 884 — 1,031 — 2,000 3,915 
Auto & Consumer
Pass140,872 52,184 84,250 124,438 27,697 14,449 — 443,890 
Special Mention48 51 250 329 157 51 — 886 
Substandard375 257 448 833 125 480 — 2,518 
Doubtful— — — — — — — — 
Total141,295 52,492 84,948 125,600 27,979 14,980 — 447,294 
Year-to-date gross charge-offs18 403 1,818 2,663 713 1,755 — 7,370 
Total
Pass3,493,384 2,705,250 2,401,960 2,983,510 1,129,291 2,013,987 5,327,223 20,054,605 
Special Mention48 16,239 5,546 91,677 12,358 43,014 28,433 197,315 
Substandard375 12,490 51,620 172,248 8,970 98,030 118,693 462,426 
Doubtful— — — 10,000 — — 4,910 14,910 
Total$3,493,807 $2,733,979 $2,459,126 $3,257,435 $1,150,619 $2,155,031 $5,479,259 $20,729,256 
As a % of total gross loans16.9%13.2%11.9%15.7%5.6%10.4%26.3%100%
Year-to-date gross charge-offs$18 $403 $2,702 $2,663 $1,744 $11,737 $2,000 $21,267 
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%17.0%22.0%7.2%4.6%8.8%22.4%100%
Total year-to-date gross charge-offs$202 $3,471 $5,212 $1,556 $943 $525 $— $11,909 
The following tables provide the aging of loans by portfolio segment:
March 31, 2025
(Dollars in thousands)Current30-59 Days60-89 Days90+ DaysTotal
Single Family-Mortgage & Warehouse$4,130,060 $13,951 $8,619 $42,191 $4,194,821 
Multifamily and Commercial Mortgage3,261,631 31,955 13,697 33,335 3,340,618 
Commercial Real Estate6,319,579 — 2,932 34,048 6,356,559 
Commercial & Industrial - Non-RE6,375,665 — 38 14,261 6,389,964 
Auto & Consumer441,716 3,456 913 1,209 447,294 
Total$20,528,651 $49,362 $26,199 $125,044 $20,729,256 
As a % of total gross loans99.03 %0.24 %0.13 %0.60 %100 %
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 %
Loans reaching 90 or more days past due are generally placed on nonaccrual. As of March 31, 2025 and June 30, 2024, there were loans of $2.3 million and $20.2 million, respectively, over 90 days past due and still accruing interest as the Company expects to collect the principal and interest amounts due.
Single family mortgage loans in process of foreclosure were $34.8 million and $20.1 million as of March 31, 2025 and June 30, 2024, respectively.
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. For the three and nine months ended March 31, 2025 and 2024, there were no FDMs.