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Derivative Instruments and Hedging Activities | 3 Months Ended
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Sep. 30, 2019
Derivative Instruments And Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities | 15. 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 September 30, 2019 and June 30, 2019:
| September 30, 2019 |
| Asset Derivatives |  |  | Liability Derivatives |
| Location |  | Fair Value |  |  | Location |  | Fair Value |
| (In Thousands) |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | Other assets |  | $ | 1,012 |  |  | Other liabilities |  | $ | 369 |
Interest rate caps | Other assets |  |  | 1,418 |  |  | Other liabilities |  |  | - |
Total |  |  | $ | 2,430 |  |  |  |  | $ | 369 |
| June 30, 2019 |
| Asset Derivatives |  |  | Liability Derivatives |
| Location |  | Fair Value |  |  | Location |  | Fair Value |
| (In Thousands) |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | Other assets |  | $ | 3,856 |  |  | Other liabilities |  | $ | 140 |
Total |  |  | $ | 3,856 |  |  |  |  | $ | 140 |
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 and caps as part of its interest rate risk management strategy. These interest rate products are designated as cash flow hedges. As of September 30, 2019, the Company had a total of 15 interest rate swaps and caps with a total notional amount of $1.0 billion hedging rolling three-month fixed-rate borrowings. 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 months ended September 30, 2019, the Company had $1.4 million of reclassifications to interest expense. During the next twelve months, the Company estimates that $1.2 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 months ended September 30, 2019 and 2018:
| Three Months Ended September 30, 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 | $ | (1,702 | ) |  | Interest expense |  | $ | 1,371 |
Interest rate caps |  | (57 | ) |  | Interest expense |  |  | - |
Total | $ | (1,759 | ) |  |  |  | $ | 1,371 |
| Three Months Ended September 30, 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 | $ | 3,079 |  |  | Interest expense |  | $ | 1,236 |
Total | $ | 3,079 |  |  |  |  | $ | 1,236 |
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 September 30, 2019 and June 30, 2019, 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.
| September 30, 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 | $ | 2,716 |  |  | $ | (1,704 | ) |  | $ | 1,012 |  |  | $ | - |  |  | $ | - |  |  | $ | 1,012 |
Interest rate caps |  | 1,418 |  |  |  | - |  |  |  | 1,418 |  |  |  | - |  |  |  | - |  |  |  | 1,418 |
Total | $ | 4,134 |  |  | $ | (1,704 | ) |  | $ | 2,430 |  |  | $ | - |  |  | $ | - |  |  | $ | 2,430 |
|  |  |  |  |  |  |  |  |  |  |  |  | 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 | $ | 2,073 |  |  | $ | (1,704 | ) |  | $ | 369 |  |  | $ | - |  |  | $ | (150 | ) |  | $ | 219 |
Total | $ | 2,073 |  |  | $ | (1,704 | ) |  | $ | 369 |  |  | $ | - |  |  | $ | (150 | ) |  | $ | 219 |
| June 30, 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 | $ | 5,334 |  |  | $ | (1,478 | ) |  | $ | 3,856 |  |  | $ | - |  |  | $ | - |  |  | $ | 3,856 |
Total | $ | 5,334 |  |  | $ | (1,478 | ) |  | $ | 3,856 |  |  | $ | - |  |  | $ | - |  |  | $ | 3,856 |
|  |  |  |  |  |  |  |  |  |  |  |  | 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 | $ | 1,618 |  |  | $ | (1,478 | ) |  | $ | 140 |  |  | $ | - |  |  | $ | - |  |  | $ | 140 |
Total | $ | 1,618 |  |  | $ | (1,478 | ) |  | $ | 140 |  |  | $ | - |  |  | $ | - |  |  | $ | 140 |
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 September 30, 2019, the Company posted financial collateral of $150,000 that was not included as offsetting amount. In addition to the derivative instruments noted above, the Company’s pipeline of loans held for sale at September 30, 2019 and June 30, 2019, included $65.9 million and $46.2 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.

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- 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
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