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Fair Value of Financial Instruments (Tables) | 3 Months Ended
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Sep. 30, 2013
Fair Value Disclosures [Abstract] |
Schedule of Aggregate Fair Value and Aggregate Unpaid Principal Balance of Loans Held for Sale | The following table describes the difference at the dates indicated between the aggregate fair value and the aggregate unpaid principal balance of loans held for sale at fair value.
(In Thousands) | Aggregate Fair Value | Aggregate Unpaid Principal Balance | Net Unrealized Gain (Loss)
As of September 30, 2013: |  |  |
Loans held for sale, measured at fair value | $ | 183,765 |  | $ | 176,541 |  | $ | 7,224 |
As of June 30, 2013: |  |  |
Loans held for sale, measured at fair value | $ | 188,050 |  | $ | 188,545 |  | $ | (495 | )
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following fair value hierarchy table presents information at the dates indicated about the Corporation’s assets measured at fair value on a recurring basis:
| Fair Value Measurement at September 30, 2013 Using:
(In Thousands) | Level 1 | Level 2 | Level 3 | Total
Assets: |  |  |  |
Investment securities: |  |  |  |
U.S. government agency MBS | $ | — |  | $ | 10,241 |  | $ | — |  | $ | 10,241 |
U.S. government sponsored enterprise MBS | — |  | 7,370 |  | — |  | 7,370 |
Private issue CMO | — |  | — |  | 953 |  | 953 |
Investment securities | — |  | 17,611 |  | 953 |  | 18,564 |
Loans held for sale, at fair value | — |  | 183,765 |  | — |  | 183,765 |
Interest-only strips | — |  | — |  | 103 |  | 103 |
Derivative assets: |  |  |  |
Commitments to extend credit on loans to be held for sale | — |  | — |  | 3,367 |  | 3,367 |
Mandatory loan sale commitments | — |  | — |  | 51 |  | 51 |
TBA MBS trades | — |  | 3 |  | — |  | 3 |
Option contracts | — |  | — |  | 82 |  | 82 |
Derivative assets | — |  | 3 |  | 3,500 |  | 3,503 |
Total assets | $ | — |  | $ | 201,379 |  | $ | 4,556 |  | $ | 205,935 |
Liabilities: |  |  |  |
Derivative liabilities: |  |  |  |
Commitments to extend credit on loans to be held for sale | $ | — |  | $ | — |  | $ | 2 |  | $ | 2 |
Mandatory loan sale commitments | — |  | — |  | 192 |  | 192 |
TBA MBS trades | — |  | 4,305 |  | — |  | 4,305 |
Derivative liabilities | — |  | 4,305 |  | 194 |  | 4,499 |
Total liabilities | $ | — |  | $ | 4,305 |  | $ | 194 |  | $ | 4,499 |
| Fair Value Measurement at June 30, 2013 Using:
(In Thousands) | Level 1 | Level 2 | Level 3 | Total
Assets: |  |  |  |
Investment securities: |  |  |  |
U.S. government agency MBS | $ | — |  | $ | 10,816 |  | $ | — |  | $ | 10,816 |
U.S. government sponsored enterprise MBS | — |  | 7,675 |  | — |  | 7,675 |
Private issue CMO | — |  | — |  | 1,019 |  | 1,019 |
Investment securities | — |  | 18,491 |  | 1,019 |  | 19,510 |
Loans held for sale, at fair value | — |  | 188,050 |  | — |  | 188,050 |
Interest-only strips | — |  | — |  | 98 |  | 98 |
Derivative assets: |  |  |  |
Commitments to extend credit on loans to be held for sale | — |  | — |  | 1,338 |  | 1,338 |
Mandatory loan sale commitments | — |  | — |  | 405 |  | 405 |
TBA MBS trades | — |  | 7,251 |  | — |  | 7,251 |
Option contracts | — |  | — |  | 589 |  | 589 |
Derivative assets | — |  | 7,251 |  | 2,332 |  | 9,583 |
Total assets | $ | — |  | $ | 213,792 |  | $ | 3,449 |  | $ | 217,241 |
Liabilities: |  |  |  |
Derivative liabilities: |  |  |  |
Commitments to extend credit on loans to be held for sale | $ | — |  | $ | — |  | $ | 2,370 |  | $ | 2,370 |
Mandatory loan sale commitments | — |  | — |  | 322 |  | 322 |
TBA MBS trades | — |  | 529 |  | — |  | 529 |
Derivative liabilities | — |  | 529 |  | 2,692 |  | 3,221 |
Total liabilities | $ | — |  | $ | 529 |  | $ | 2,692 |  | $ | 3,221 |
Schedule for Reconciliation of Recurring Fair Value Measurements Using Level 3 Inputs | The following is a reconciliation of the beginning and ending balances during the periods shown of recurring fair value measurements recognized in the Condensed Consolidated Statements of Financial Condition using Level 3 inputs:
| Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3)
(In Thousands) | Private Issue CMO | Interest- Only Strips | Loan Commit- ments to Originate (1) | Manda- tory Commit- ments (2) | Option Contracts | Total
Beginning balance at June 30, 2013 | $ | 1,019 |  | $ | 98 |  | $ | (1,032 | ) | $ | 83 |  | $ | 589 |  | $ | 757 |
Total gains or losses (realized/unrealized): |  |  |  |  |  |
Included in earnings | — |  | — |  | 6,502 |  | (230 | ) | 107 |  | 6,379 |
Included in other comprehensive loss | — |  | 5 |  | — |  | — |  | — |  | 5 |
Purchases | — |  | — |  | — |  | (141 | ) | 216 |  | 75 |
Issuances | — |  | — |  | 3,365 |  | — |  | — |  | 3,365 |
Settlements | (66 | ) | — |  | (5,470 | ) | 147 |  | (830 | ) | (6,219 | )
Transfers in and/or out of Level 3 | — |  | — |  | — |  | — |  | — |  | — |
Ending balance at September 30, 2013 | $ | 953 |  | $ | 103 |  | $ | 3,365 |  | $ | (141 | ) | $ | 82 |  | $ | 4,362 |
(1) | Consists of commitments to extend credit on loans to be held for sale.
(2) | Consists of mandatory loan sale commitments.
| Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3)
(In Thousands) | Private Issue CMO | Interest- Only Strips | Loan Commit- ments to Originate (1) | Manda- tory Commit- ments (2) | Option Contracts | Total
Beginning balance at June 30, 2012 | $ | 1,242 |  | $ | 130 |  | $ | 3,981 |  | $ | (163 | ) | $ | 36 |  | $ | 5,226 |
Total gains or losses (realized/unrealized): |  |  |  |  |  |
Included in earnings | — |  | — |  | (3,981 | ) | 163 |  | (36 | ) | (3,854 | )
Included in other comprehensive loss | 1 |  | (13 | ) | — |  | — |  | — |  | (12 | )
Purchases | — |  | — |  | — |  | (1,114 | ) | 65 |  | (1,049 | )
Issuances | — |  | — |  | 8,370 |  | — |  | — |  | 8,370 |
Settlements | (45 | ) | — |  | — |  | — |  | — |  | (45 | )
Transfers in and/or out of Level 3 | — |  | — |  | — |  | — |  | — |  | — |
Ending balance at September 30, 2012 | $ | 1,198 |  | $ | 117 |  | $ | 8,370 |  | $ | (1,114 | ) | $ | 65 |  | $ | 8,636 |
(1) | Consists of commitments to extend credit on loans to be held for sale.
(2) | Consists of mandatory loan sale commitments.
Schedule of Fair Value Assets Measured on Nonrecurring Basis | The following fair value hierarchy table presents information about the Corporation’s assets measured at fair value at the dates indicated on a nonrecurring basis:
| Fair Value Measurement at September 30, 2013 Using:
(In Thousands) | Level 1 | Level 2 | Level 3 | Total
Non-performing loans | $ | — |  | $ | 12,761 |  | $ | 5,791 |  | $ | 18,552 |
MSA | — |  | — |  | 187 |  | 187 |
Real estate owned, net | — |  | 3,172 |  | — |  | 3,172 |
Total | $ | — |  | $ | 15,933 |  | $ | 5,978 |  | $ | 21,911 |
| Fair Value Measurement at June 30, 2013 Using:
(In Thousands) | Level 1 | Level 2 | Level 3 | Total
Non-performing loans | $ | — |  | $ | 11,650 |  | $ | 10,032 |  | $ | 21,682 |
MSA | — |  | — |  | 174 |  | 174 |
Real estate owned, net | — |  | 2,296 |  | — |  | 2,296 |
Total | $ | — |  | $ | 13,946 |  | $ | 10,206 |  | $ | 24,152 |
Schedule of Additional Information About Valuation Techniques and Inputs Used for Assets and Liabilities | The following table presents additional information about valuation techniques and inputs used for assets and liabilities, including derivative financial instruments, which are measured at fair value and categorized within Level 3 as of September 30, 2013:
(Dollars In Thousands) | Fair Value As of September 30, 2013 | Valuation Techniques | Unobservable Inputs | Range (1) (Weighted Average) | Impact to Valuation from an Increase in Inputs (2)
Assets: |  |  |  |  |
Securities available-for sale: Private issue CMO | $ | 953 |  | Discounted cash flow | Probability of default Loss severity Prepayment speed | 1.2% – 3.0% (2.8%) 35.4% - 37.5% (37.2%) 7.7% – 22.6% (10.9%) | Decrease Decrease Decrease
Non-performing loans | $ | 85 |  | Discounted cash flow | Default rates | 0.0% - 30.0% (14.3%) | Decrease
Non-performing loans | $ | 5,706 |  | Relative value analysis | Loss severity | 15.0% - 60.0% (21.1%) | Decrease
MSA | $ | 187 |  | Discounted cash flow | Prepayment speed (CPR) Discount rate | 24.2% - 60.0% (29.9%) 9.0% - 10.5% (9.2%) | Decrease Decrease
Interest-only strips | $ | 103 |  | Discounted cash flow | Prepayment speed (CPR) Discount rate | 0.0% - 31.1% (16.1%) 9.0% | Decrease Decrease
Commitments to extend credit on loans to be held for sale | $ | 3,367 |  | Relative value analysis | TBA-MBS broker quotes Fall-out ratio (3) | 97.8% – 104.5% (102.0%) of par 22.0% - 26.8% (26.6%) | Decrease Decrease
Mandatory loan sale commitments | $ | 51 |  | Relative value analysis | Investor quotes TBA MBS broker quotes Roll-forward costs (4) | 99.1% of par 105.2% - 107.5% (106.2%) of par 0.002% | Decrease Decrease Decrease
Option contracts | $ | 82 |  | Relative value analysis | Broker quotes | 104.6% of par | Increase
Liabilities: |  |  |  |  |
Commitments to extend credit on loans to be held for sale | $ | 2 |  | Relative value analysis | TBA-MBS broker quotes Fall-out ratio (3) | 99.8% – 102.9% (100.5%) of par 22.0% - 26.8% (26.6%) | Decrease Decrease
Mandatory loan sale commitments | $ | 192 |  | Relative value analysis | Investor quotes TBA MBS broker quotes Roll-forward costs (4) | 102.9% - 104.0% (103.9%) of par 100.6% - 107.8% (104.8%) of par 0.002% | Decrease Decrease Decrease
(1) | The range is based on the historical estimated fair values and management estimates.
(2) | Unless otherwise noted, this column represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs in isolation could result in significantly higher or lower fair value measurements.
(3) | The percentage of commitments to extend credit on loans to be held for sale which management has estimated may not fund.
(4) | An estimated cost to roll forward the mandatory loan sale commitments which management has estimated may not be delivered to the corresponding investors in a timely manner.
Schedule of Carrying Amount and Fair Value of Financial Instruments | The carrying amount and fair value of the Corporation’s other financial instruments as of September 30, 2013 and June 30, 2013 were as follows:
| September 30, 2013
(In Thousands) | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3
Financial assets: |  |  |  |  |
Loans held for investment, net | $ | 748,956 |  | $ | 738,940 |  | — |  | — |  | $ | 738,940 |
FHLB – San Francisco stock | $ | 13,308 |  | $ | 13,308 |  | — |  | $ | 13,308 |  | — |
Financial liabilities: |  |  |  |  |
Deposits | $ | 919,095 |  | $ | 899,302 |  | — |  | — |  | $ | 899,302 |
Borrowings | $ | 56,476 |  | $ | 59,702 |  | — |  | — |  | $ | 59,702 |
| June 30, 2013
(In Thousands) | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3
Financial assets: |  |  |  |  |
Loans held for investment, net | $ | 748,397 |  | $ | 742,256 |  | — |  | — |  | $ | 742,256 |
FHLB – San Francisco stock | $ | 15,273 |  | $ | 15,273 |  | — |  | $ | 15,273 |  | — |
Financial liabilities: |  |  |  |  |
Deposits | $ | 923,010 |  | $ | 903,654 |  | — |  | — |  | $ | 903,654 |
Borrowings | $ | 106,491 |  | $ | 110,404 |  | — |  | — |  | $ | 110,404 |

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- Definition Tabular disclosure of the inputs and valuation techniques used to measure fair value, and a discussion of changes in valuation techniques and related inputs, if any, applied during the period to each separate class of assets, liabilities, and financial instruments classified in shareholders' equity that are measured on a recurring and/or nonrecurring basis. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 33 -Subparagraph a, b -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19296-110258 + Details
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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19279-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32 -Subparagraph c -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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- Definition Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15 -Subparagraph b-d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 18 -Subparagraph c(2), d, e, f -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32 -Subparagraph a, c(1), c(2), c(3), d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13467-108611 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13476-108611 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 10 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 14 -Subparagraph a -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 19 -Subparagraph a, b, c(1), d(1) -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19190-110258 + Details
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