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FAIR VALUE
 9 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE FAIR VALUE
The following tables set forth the Company’s financial assets and liabilities measured at fair value on a recurring basis at March 31, 2025 and June 30, 2024. Assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement:
March 31, 2025
(Dollars in thousands)Significant Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
ASSETS:
Trading securities
$346 $— $346 
Available-for-sale securities:
Agency MBS46,999 — 46,999 
Non-Agency MBS— 29,301 29,301 
Municipal3,658 — 3,658 
Total—Available-for-sale securities:
$50,657 $29,301 $79,958 
Loans held for sale$15,644 $— $15,644 
Servicing rights$— $27,585 $27,585 
Other assets—Derivative instruments1
$16,155 $— $16,155 
LIABILITIES:
Accounts payable and other liabilities—Derivative instruments$72,642 $— $72,642 
1 Other assets - Derivative instruments are presented net of $63.2 million of variation margin on centrally-cleared derivatives as of March 31, 2025.
June 30, 2024
(Dollars in thousands)Significant Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
ASSETS:
Trading securities$353 $— $353 
Available-for-sale securities:
Agency MBS
27,259 — 27,259 
Non-Agency MBS
— 110,928 110,928 
Municipal3,424 — 3,424 
Total—Available-for-sale securities:$30,683 $110,928 $141,611 
Loans held for sale$16,482 $— $16,482 
Servicing rights$— $28,924 $28,924 
Other assets—Derivative instruments
$106,796 $— $106,796 
LIABILITIES:
Accounts payable and other liabilities—Derivative instruments$102,949 $— $102,949 
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, 2025
(Dollars in thousands)
Available-for-sale Securities:
Non-Agency MBS
Servicing Rights1
Total
Opening balance$47,412 $28,045 $75,457 
Total gains or losses for the period:
Included in earnings—Mortgage banking and servicing rights income— (621)(621)
Included in other comprehensive income211 — 211 
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions— 161 161 
Settlements(18,322)— (18,322)
Closing balance$29,301 $27,585 $56,886 
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period$— $(621)$(621)
For the Nine Months Ended
March 31, 2025
(Dollars in thousands)
Available-for-sale Securities:
Non-Agency MBS
Servicing Rights1
Total
Opening Balance$110,928 $28,924 $139,852 
Total gains or losses for the period:
Included in earnings—Mortgage banking and servicing rights income— (1,985)(1,985)
Included in other comprehensive income599 — 599 
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions— 646 646 
Settlements(82,226)— (82,226)
Closing balance$29,301 $27,585 $56,886 
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period$— $(1,985)$(1,985)
1 Earnings from servicing rights were attributable to: time and payoffs, representing a decrease in servicing rights 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 $0.2 million and $1.1 million for the three and nine months ended March 31, 2025, respectively, and a decrease in servicing rights value resulting from market-driven changes in interest rates of $0.4 million for the three months ended March 31, 2025 and a decrease of $0.9 million for the nine months ended March 31, 2025. Additions to servicing rights were related to purchases and servicing rights retained upon sale of loans held for sale.

For the Three Months Ended
March 31, 2024
(Dollars in thousands)
Available-for-sale Securities:
Non-Agency MBS
Servicing Rights1
Total
Opening balance$207,708 $28,043 $235,751 
Total gains or losses for the period:
Included in earnings—Mortgage banking and servicing rights income— (152)(152)
Included in other comprehensive income1,517 — 1,517 
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions— 239 239 
Settlements(32,546)— (32,546)
Closing balance$176,679 $28,130 $204,809 
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period$— $(152)$(152)
For the Nine Months Ended
March 31, 2024
(Dollars in thousands)
Available-for-sale Securities:
Non-Agency MBS
Servicing Rights1
Total
Opening Balance$205,005 $25,443 $230,448 
Total gains or losses for the period:
Included in earnings—Mortgage banking and servicing rights income— 213 213 
Included in other comprehensive income4,708 — 4,708 
Purchases, retentions, issues, sales and settlements:
Purchases/Retentions— 2,474 2,474 
Settlements(33,034)— (33,034)
Closing balance$176,679 $28,130 $204,809 
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the reporting period$— $213 $213 
1 Earnings from servicing rights were attributable to: time and payoffs, representing a decrease in servicing rights 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 $0.9 million for the three and nine months ended March 31, 2024, and an increase in servicing rights value resulting from market-driven changes in interest rates of $0.2 million for the three months ended March 31, 2024 and an increase of $1.1 million for the nine months ended March 31, 2024. Additions to servicing rights were related to purchases and servicing rights retained upon sale of loans held for sale.

The table below summarizes the quantitative information about Level 3 fair value measurements:
March 31, 2025
(Dollars in thousands)Fair ValueValuation TechniqueUnobservable Input
Range (Weighted Average)1
Available-for-sale securities: Non-Agency MBS
$29,301 Discounted Cash Flow
Projected Constant Prepayment Rate,
Projected Constant Default Rate,
Projected Loss Severity,
Discount Rate over SOFR Swaps,
Credit Enhancement
0.0 to 30.0% (15.3%)
0.0 to 3.0% (1.8%)
0.0 to 68.9% (27.2%)
2.5 to 4.9% (2.6%)
0.0 to 97.3% (23.7%)
Servicing Rights
$27,585 Discounted Cash FlowProjected Constant Prepayment Rate,
Life (in years),
Discount Rate
3.5 to 26.2% (10.6%)
2.3 to 11.6 (8.6)
9.5 to 11.2% (9.8%)
June 30, 2024
(Dollars in thousands)Fair ValueValuation TechniqueUnobservable Input
Range (Weighted Average)1
Available-for-sale securities: Non-Agency MBS$110,928 Discounted Cash Flow
Projected Constant Prepayment Rate,
Projected Constant Default Rate,
Projected Loss Severity,
Discount Rate over SOFR Swaps,
Credit Enhancement
0.0 to 72.1% (38.0%)
0.0 to 13.7% (2.8%)
0.0 to 68.9% (32.9%)
2.5 to 4.9% (2.5%)
0.0 to 64.9% (22.8%)
Servicing Rights
$28,924 Discounted Cash FlowProjected Constant Prepayment Rate,
Life (in years),
Discount Rate
5.5 to 95.2% (11.8%)
0.4 to 14.9 (7.9)
9.5 to 11.2% (9.8%)
1 The weighted average for Available-for-sale securities: Non-agency MBS is based on the relative fair value of the securities and for Servicing Rights is based on the relative unpaid principal of the loans being serviced.
For non-agency mortgage-backed securities, a significant increase (decrease) in default rate, loss severity (potentially offset by the level of credit enhancement) or discount rate in isolation would result in a significantly lower (higher) fair value measurement, while a significant increase in the voluntary prepayment rate would result in a significant increase in fair value if the security is valued below par value, or a significant decrease in fair value if the security is valued above par value. Generally, a change in the assumptions used for the default rate is accompanied by a directionally opposite change in the assumption used for the voluntary prepayment rate.
For servicing rights, significant increases in the voluntary prepayment rate or discount rate in isolation would result in a significantly lower fair value measurement, while a significant increase in expected life in isolation would result in a significantly higher fair value measurement. Generally, a change in the voluntary prepayment rate is accompanied by a directionally opposite change in expected life.
The aggregate fair value of loans held for sale, carried at fair value, the contractual balance (including accrued interest), and the unrealized gain were:
(Dollars in thousands)March 31, 2025June 30, 2024
Aggregate fair value$15,644 $16,482 
Contractual balance15,176 15,966 
Unrealized gain$468 $516 
The total interest income and amount of gains and losses from changes in fair value included in earnings for loans held for sale, carried at fair value, were:
For the Three Months Ended March 31,For the Nine Months Ended March 31,
(Dollars in thousands)2025202420252024
Interest income$212 $208 $749 $538 
Change in fair value227 118 (140)22 
Total $439 $326 $609 $560 
Fair Value of Financial Instruments
Carrying amounts and estimated fair values of financial instruments at March 31, 2025 and June 30, 2024 were:
March 31, 2025
Fair Value
(Dollars in thousands)Carrying
Amount		Level 1Level 2Level 3Total Fair Value
Financial assets:
Cash, cash equivalents and restricted cash
$2,257,694 $2,257,694 $— $— $2,257,694 
Trading securities
346 — 346 — 346 
Available-for-sale securities
79,958 — 50,657 29,301 79,958 
Stock of regulatory agencies35,299 — 35,299 — 35,299 
Loans held for sale, at fair value15,644 — 15,644 — 15,644 
Loans held for investment—net20,193,630 — — 20,410,588 20,410,588 
Securities borrowed91,915 — — 91,077 91,077 
Customer, broker-dealer and clearing receivables300,907 — — 298,983 298,983 
Servicing rights
27,585 — — 27,585 27,585 
Other assets - derivative instruments1
16,155 — 16,155 — 16,155 
Financial liabilities:
Total deposits20,136,714 — 19,826,536 — 19,826,536 
Advances from the Federal Home Loan Bank60,000 — 56,212 — 56,212 
Borrowings, subordinated notes and debentures377,427 — 346,212 — 346,212 
Securities loaned111,094 — — 110,529 110,529 
Customer, broker-dealer and clearing payables314,399 — — 314,399 314,399 
Accounts payable and other liabilities - derivative instruments
72,642 — 72,642 — 72,642 
1 Other Assets - Derivative Assets are presented net of $63.2 million of variation margin on centrally-cleared derivatives as of March 31, 2025.
June 30, 2024
Fair Value
(Dollars in thousands)Carrying
Amount		Level 1Level 2Level 3Total Fair Value
Financial assets:
Cash, cash equivalents and restricted cash
$2,185,776 $2,185,776 $— $— $2,185,776 
Trading securities
353 — 353 — 353 
Available-for-sale securities
141,611 — 30,683 110,928 141,611 
Stock of regulatory agencies
21,957 — 21,957 — 21,957 
Loans held for sale, at fair value16,482 — 16,482 — 16,482 
Loans held for investment—net19,231,385 — — 19,209,442 19,209,442 
Securities borrowed67,212 — — 71,480 71,480 
Customer, broker-dealer and clearing receivables240,028 — — 249,317 249,317 
Servicing rights
28,924 — — 28,924 28,924 
Other assets - derivative instruments
106,796 — 106,796 — 106,796 
Financial liabilities:
Total deposits19,359,217 — 19,217,281 — 19,217,281 
Advances from the Federal Home Loan Bank90,000 — 84,201 — 84,201 
Borrowings, subordinated notes and debentures325,679 — 302,487 — 302,487 
Securities loaned74,177 — — 74,021 74,021 
Customer, broker-dealer and clearing payables301,127 — — 301,127 301,127 
Accounts payable and other liabilities - derivative instruments
102,949 — 102,949 — 102,949 
The carrying amount represents the estimated fair value for cash, cash equivalents and restricted cash, stock of regulatory agencies, interest-bearing deposits, accrued interest receivable and payable, demand deposits, short-term debt, and variable rate loans or deposits that reprice frequently and fully. For fixed rate loans, deposits, borrowings or subordinated debt and for variable rate loans, deposits, borrowings or subordinated debt with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk. A discussion of the methods of valuing trading securities, available-for-sale securities, loans held for sale and derivatives can be found in Note 3—“Fair Value” in the 2024 Form 10-K. The fair value of off-balance sheet items is not considered material.