XML 33 R22.htm IDEA: XBRL DOCUMENT
v3.19.1

Derivative Instruments and Hedging Activities | 9 Months Ended
--- | ---
Mar. 31, 2019
Derivative Instruments And Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities | 14. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives The Company uses various financial instruments, including derivatives, to manage its exposure to interest rate risk. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to specific wholesale funding positions. Fair Values of Derivative Instruments on the Statement of Financial Condition The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the Statement of Financial Condition as of March 31, 2019 and June 30, 2018:
| March 31, 2019 |
| Asset Derivatives |  |  | Liability Derivatives |
| Location |  | Fair Value |  |  | Location |  | Fair Value |
| (In Thousands) |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | Other assets |  | $ | 14,968 |  |  | Other liabilities |  | $ | - |
Total |  |  | $ | 14,968 |  |  |  |  | $ | - |
| June 30, 2018 |
| Asset Derivatives |  |  | Liability Derivatives |
| Location |  | Fair Value |  |  | Location |  | Fair Value |
| (In Thousands) |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | Other assets |  | $ | 31,881 |  |  | Other liabilities |  | $ | - |
Total |  |  | $ | 31,881 |  |  |  |  | $ | - |
Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using derivatives are primarily to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company has entered into interest rate swaps as part of its interest rate risk management strategy. These interest rate products are designated as cash flow hedges. As of March 31, 2019, the Company had a total of 11 interest rate swaps with a total notional amount of $825.0 million hedging certain FHLB advances. For derivatives designated as cash flow hedges, the gain or loss on the derivative is recorded in other comprehensive income, net of tax, and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable rate wholesale funding positions. During the three and nine months ended March 31, 2019, the Company had $2.2 million and $4.9 million, respectively, of reclassifications to interest expense. During the next twelve months, the Company estimates that $6.7 million will be reclassified as a reduction in interest expense. The tables below present the pre-tax effects of the Company’s derivative instruments on the Consolidated Statements of Income and Comprehensive Income for the three and nine months ended March 31, 2019 and 2018:
| Three Months Ended March 31, 2019 |
| Amount of Gain (Loss) Recognized in OCI on Derivatives |  |  | Location of Gain (Loss) Reclassified from Accumulated OCI into Income |  | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income |
| (In Thousands) |
Derivatives in cash flow hedging relationships: |  |  |  |  |  |  |  |  |
Interest rate swaps | $ | (4,982 | ) |  | Interest expense |  | $ | 2,159 |
Total | $ | (4,982 | ) |  |  |  | $ | 2,159 |
| Nine Months Ended March 31, 2019 |
| Amount of Gain (Loss) Recognized in OCI on Derivatives |  |  | Location of Gain (Loss) Reclassified from Accumulated OCI into Income |  | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income |
| (In Thousands) |
Derivatives in cash flow hedging relationships: |  |  |  |  |  |  |  |  |
Interest rate swaps | $ | (12,058 | ) |  | Interest expense |  | $ | 4,855 |
Total | $ | (12,058 | ) |  |  |  | $ | 4,855 |
| Three Months Ended March 31, 2018 |
| Amount of Gain (Loss) Recognized in OCI on Derivatives |  |  | Location of Gain (Loss) Reclassified from Accumulated OCI into Income |  | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income |
| (In Thousands) |
Derivatives in cash flow hedging relationships: |  |  |  |  |  |  |  |  |
Interest rate swaps | $ | 11,672 |  |  | Interest expense |  | $ | (352 | )
Interest rate caps |  | 50 |  |  | Interest expense |  |  | (247 | )
Total | $ | 11,722 |  |  |  |  | $ | (599 | )
| Nine Months Ended March 31, 2018 |
| Amount of Gain (Loss) Recognized in OCI on Derivatives |  |  | Location of Gain (Loss) Reclassified from Accumulated OCI into Income |  | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income |
| (In Thousands) |
Derivatives in cash flow hedging relationships: |  |  |  |  |  |  |  |  |
Interest rate swaps | $ | 18,099 |  |  | Interest expense |  | $ | (2,475 | )
Interest rate caps |  | 77 |  |  | Interest expense |  |  | (806 | )
Total | $ | 18,176 |  |  |  |  | $ | (3,281 | )
Offsetting Derivatives The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives in the Consolidated Statements of Financial Condition as of March 31, 2019 and June 30, 2018, respectively. The net amounts presented for derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Consolidated Statements of Financial Condition.
| March 31, 2019 |
|  |  |  |  |  |  |  |  |  |  |  |  | Gross Amounts Not Offset |  |  |  |  |
| Gross Amount Recognized |  |  | Gross Amounts Offset |  |  | Net Amounts Presented |  |  | Financial Instruments |  |  | Cash Collateral Received |  |  | Net Amount |
| (In Thousands) |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | $ | 15,204 |  |  | $ | (236 | ) |  | $ | 14,968 |  |  | $ | - |  |  | $ | (14,968 | ) |  | $ | - |
Total | $ | 15,204 |  |  | $ | (236 | ) |  | $ | 14,968 |  |  | $ | - |  |  | $ | (14,968 | ) |  | $ | - |
|  |  |  |  |  |  |  |  |  |  |  |  | Gross Amounts Not Offset |  |  |  |  |
| Gross Amount Recognized |  |  | Gross Amounts Offset |  |  | Net Amounts Presented |  |  | Financial Instruments |  |  | Cash Collateral Posted |  |  | Net Amount |
| (In Thousands) |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | $ | 236 |  |  | $ | (236 | ) |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Total | $ | 236 |  |  | $ | (236 | ) |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
| June 30, 2018 |
|  |  |  |  |  |  |  |  |  |  |  |  | Gross Amounts Not Offset |  |  |  |  |
| Gross Amount Recognized |  |  | Gross Amounts Offset |  |  | Net Amounts Presented |  |  | Financial Instruments |  |  | Cash Collateral Received |  |  | Net Amount |
| (In Thousands) |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | $ | 31,881 |  |  | $ | - |  |  | $ | 31,881 |  |  | $ | - |  |  | $ | (31,620 | ) |  | $ | 261 |
Total | $ | 31,881 |  |  | $ | - |  |  | $ | 31,881 |  |  | $ | - |  |  | $ | (31,620 | ) |  | $ | 261 |
|  |  |  |  |  |  |  |  |  |  |  |  | Gross Amounts Not Offset |  |  |  |  |
| Gross Amount Recognized |  |  | Gross Amounts Offset |  |  | Net Amounts Presented |  |  | Financial Instruments |  |  | Cash Collateral Posted |  |  | Net Amount |
| (In Thousands) |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Total | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Credit-risk-related Contingent Features The Company has agreements with each of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, then the Company could also be declared in default on its derivative obligations and could be required to terminate its derivative positions with the counterparty. The Company also has agreements with its derivative counterparties that contain a provision where if the Company fails to maintain its status as a well-capitalized institution, then the Company could be required to terminate its derivative positions with the counterparty. As required under the enforceable master netting arrangement with its derivatives counterparties, at March 31, 2019, the Company received financial collateral of $15.0 million that was not included as an offsetting amount. By comparison, at June 30, 2018, the Company received financial collateral of $31.6 million that was not included as an offsetting amount. In addition to the derivative instruments noted above, the Company’s pipeline of loans held for sale at March 31, 2019 and June 30, 2018, included $15.4 million and $10.8 million, respectively, of in process loans whose terms included interest rate locks to borrowers, which are considered free-standing derivative instruments whose fair values are not material to our financial condition or results of operations.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration