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Fair Value of Financial Instruments (Tables) | 6 Months Ended
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Dec. 31, 2014
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
As of December 31, 2014: |  |  |
Loans held for sale, measured at fair value | $ | 228,783 |  | $ | 219,859 |  | $ | 8,924 |
As of June 30, 2014: |  |  |
Loans held for sale, measured at fair value | $ | 158,883 |  | $ | 152,192 |  | $ | 6,691 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following fair value hierarchy tables present information at the dates indicated about the Corporation’s assets measured at fair value on a recurring basis:
| Fair Value Measurement at December 31, 2014 Using:
(In Thousands) | Level 1 | Level 2 | Level 3 | Total
Assets: |  |  |  |
Investment securities: |  |  |  |
U.S. government agency MBS | $ | — |  | $ | 8,491 |  | $ | — |  | $ | 8,491 |
U.S. government sponsored enterprise MBS | — |  | 5,837 |  | — |  | 5,837 |
Private issue CMO | — |  | — |  | 799 |  | 799 |
Common stock - community development financial institution | — |  | — |  | 250 |  | 250 |
Investment securities | — |  | 14,328 |  | 1,049 |  | 15,377 |
Loans held for sale, at fair value | — |  | 228,783 |  | — |  | 228,783 |
Interest-only strips | — |  | — |  | 64 |  | 64 |
Derivative assets: |  |  |  |
Commitments to extend credit on loans to be held for sale | — |  | — |  | 2,134 |  | 2,134 |
Option contracts | — |  | — |  | 110 |  | 110 |
Derivative assets | — |  | — |  | 2,244 |  | 2,244 |
Total assets | $ | — |  | $ | 243,111 |  | $ | 3,357 |  | $ | 246,468 |
Liabilities: |  |  |  |
Derivative liabilities: |  |  |  |
Commitments to extend credit on loans to be held for sale | $ | — |  | $ | — |  | $ | 5 |  | $ | 5 |
Mandatory loan sale commitments | — |  | — |  | 86 |  | 86 |
TBA MBS trades | — |  | 2,019 |  | — |  | 2,019 |
Derivative liabilities | — |  | 2,019 |  | 91 |  | 2,110 |
Total liabilities | $ | — |  | $ | 2,019 |  | $ | 91 |  | $ | 2,110 |
| Fair Value Measurement at June 30, 2014 Using:
(In Thousands) | Level 1 | Level 2 | Level 3 | Total
Assets: |  |  |  |
Investment securities: |  |  |  |
U.S. government agency MBS | $ | — |  | $ | 9,109 |  | $ | — |  | $ | 9,109 |
U.S. government sponsored enterprise MBS | — |  | 6,385 |  | — |  | 6,385 |
Private issue CMO | — |  | — |  | 853 |  | 853 |
Investment securities | — |  | 15,494 |  | 853 |  | 16,347 |
Loans held for sale, at fair value | — |  | 158,883 |  | — |  | 158,883 |
Interest-only strips | — |  | — |  | 62 |  | 62 |
Derivative assets: |  |  |  |
Commitments to extend credit on loans to be held for sale | — |  | — |  | 2,570 |  | 2,570 |
Derivative assets | — |  | — |  | 2,570 |  | 2,570 |
Total assets | $ | — |  | $ | 174,377 |  | $ | 3,485 |  | $ | 177,862 |
Liabilities: |  |  |  |
Derivative liabilities: |  |  |  |
Commitments to extend credit on loans to be held for sale | $ | — |  | $ | — |  | $ | 4 |  | $ | 4 |
Mandatory loan sale commitments | — |  | — |  | 93 |  | 93 |
TBA MBS trades | — |  | 1,335 |  | — |  | 1,335 |
Derivative liabilities | — |  | 1,335 |  | 97 |  | 1,432 |
Total liabilities | $ | — |  | $ | 1,335 |  | $ | 97 |  | $ | 1,432 |
Schedule for Reconciliation of Recurring Fair Value Measurements Using Level 3 Inputs | The following tables summarize reconciliations 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:
| For the Quarter Ended December 31, 2014
| Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3)
(In Thousands) | Private Issue CMO | Common stock (1) | Interest- Only Strips | Loan Commit- ments to Originate (2) | Manda- tory Commit- ments (3) | Option Contracts | Total
Beginning balance at September 30, 2014 | $ | 828 |  | $ | 250 |  | $ | 70 |  | $ | 1,785 |  | $ | (245 | ) | $ | 33 |  | $ | 2,721 |
Total gains or losses (realized/ unrealized): |  |  |  |  |  |  |
Included in earnings | — |  | — |  | — |  | 344 |  | 149 |  | (57 | ) | 436 |
Included in other comprehensive loss | (4 | ) | — |  | (6 | ) | — |  | — |  | — |  | (10 | )
Purchases | — |  | — |  | — |  | — |  | — |  | 134 |  | 134 |
Issuances | — |  | — |  | — |  | — |  | — |  | — |  | — |
Settlements | (25 | ) | — |  | — |  | — |  | 10 |  | — |  | (15 | )
Transfers in and/or out of Level 3 | — |  | — |  | — |  | — |  | — |  | — |  | — |
Ending balance at December 31, 2014 | $ | 799 |  | $ | 250 |  | $ | 64 |  | $ | 2,129 |  | $ | (86 | ) | $ | 110 |  | $ | 3,266 |
(1) | Common stock of a community development financial institution.
(2) | Consists of commitments to extend credit on loans to be held for sale.
(3) | Consists of mandatory loan sale commitments.
| For the Quarter Ended December 31, 2013
| 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 September 30, 2013 | $ | 953 |  | $ | 103 |  | $ | 3,365 |  | $ | (141 | ) | $ | 82 |  | $ | 4,362 |
Total gains or losses (realized/unrealized): |  |  |  |  |  |
Included in earnings | — |  | — |  | (3,117 | ) | 329 |  | 158 |  | (2,630 | )
Included in other comprehensive loss | 19 |  | (15 | ) | — |  | — |  | — |  | 4 |
Purchases | — |  | — |  | — |  | — |  | 155 |  | 155 |
Issuances | — |  | — |  | — |  | — |  | — |  | — |
Settlements | (47 | ) | — |  | — |  | 8 |  | (64 | ) | (103 | )
Transfers in and/or out of Level 3 | — |  | — |  | — |  | — |  | — |  | — |
Ending balance at December 31, 2013 | $ | 925 |  | $ | 88 |  | $ | 248 |  | $ | 196 |  | $ | 331 |  | $ | 1,788 |
(1) | Consists of commitments to extend credit on loans to be held for sale.
(2) | Consists of mandatory loan sale commitments.
| For the Six Months Ended December 31, 2014
| Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3)
(In Thousands) | Private Issue CMO | Common stock (1) | Interest- Only Strips | Loan Commit- ments to Originate (2) | Manda- tory Commit- ments (3) | Option Contracts | Total
Beginning balance at June 30, 2014 | $ | 853 |  | $ | — |  | $ | 62 |  | $ | 2,566 |  | $ | (93 | ) | $ | — |  | $ | 3,388 |
Total gains or losses (realized/ unrealized): |  |  |  |  |  |  |
Included in earnings | — |  | — |  | — |  | (437 | ) | (7 | ) | (162 | ) | (606 | )
Included in other comprehensive loss | (5 | ) | — |  | 2 |  | — |  | — |  | — |  | (3 | )
Purchases | — |  | 250 |  | — |  | — |  | — |  | 321 |  | 571 |
Issuances | — |  | — |  | — |  | — |  | — |  | — |  | — |
Settlements | (49 | ) | — |  | — |  | — |  | 14 |  | (49 | ) | (84 | )
Transfers in and/or out of Level 3 | — |  | — |  | — |  | — |  | — |  | — |  | — |
Ending balance at December 31, 2014 | $ | 799 |  | $ | 250 |  | $ | 64 |  | $ | 2,129 |  | $ | (86 | ) | $ | 110 |  | $ | 3,266 |
(1) | Common stock of a community development financial institution.
(2) | Consists of commitments to extend credit on loans to be held for sale.
(3) | Consists of mandatory loan sale commitments.
| For the Six Months Ended December 31, 2013
| 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 | — |  | — |  | 1,280 |  | 99 |  | 266 |  | 1,645 |
Included in other comprehensive loss | 19 |  | (10 | ) | — |  | — |  | — |  | 9 |
Purchases | — |  | — |  | — |  | — |  | 370 |  | 370 |
Issuances | — |  | — |  | — |  | — |  | — |  | — |
Settlements | (113 | ) | — |  | — |  | 14 |  | (894 | ) | (993 | )
Transfers in and/or out of Level 3 | — |  | — |  | — |  | — |  | — |  | — |
Ending balance at December 31, 2013 | $ | 925 |  | $ | 88 |  | $ | 248 |  | $ | 196 |  | $ | 331 |  | $ | 1,788 |
Schedule of Fair Value Assets Measured on Nonrecurring Basis | The following fair value hierarchy tables present information about the Corporation’s assets measured at fair value at the dates indicated on a nonrecurring basis:
| Fair Value Measurement at December 31, 2014 Using:
(In Thousands) | Level 1 | Level 2 | Level 3 | Total
Non-performing loans | $ | — |  | $ | 9,138 |  | $ | 2,013 |  | $ | 11,151 |
MSA | — |  | — |  | 208 |  | 208 |
Real estate owned, net | — |  | 3,496 |  | — |  | 3,496 |
Total | $ | — |  | $ | 12,634 |  | $ | 2,221 |  | $ | 14,855 |
| Fair Value Measurement at June 30, 2014 Using:
(In Thousands) | Level 1 | Level 2 | Level 3 | Total
Non-performing loans | $ | — |  | $ | 10,910 |  | $ | 5,026 |  | $ | 15,936 |
MSA | — |  | — |  | 241 |  | 241 |
Real estate owned, net | — |  | 2,467 |  | — |  | 2,467 |
Total | $ | — |  | $ | 13,377 |  | $ | 5,267 |  | $ | 18,644 |
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 December 31, 2014:
(Dollars In Thousands) | Fair Value As of December 31, 2014 | 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 | $ | 799 |  | Market comparable pricing | Comparability adjustment | (0.4)% – 1.1% (0.9%) | Increase
Common stock of community development financial institution | $ | 250 |  | Market pricing | Pricing indications from recent transactions | $0.00 - $0.14 ($0.05) | Increase
Non-performing loans | $ | 92 |  | Discounted cash flow | Default rates | 0.0% - 30.0% (0.0%) | Decrease
Non-performing loans | $ | 1,921 |  | Relative value analysis | Loss severity | 20.0% - 30.0% (21.9%) | Decrease
MSA | $ | 208 |  | Discounted cash flow | Prepayment speed (CPR) Discount rate | 19.5% - 60.0% (31.0%) 9.0% - 10.5% (9.2%) | Decrease Decrease
Interest-only strips | $ | 64 |  | Discounted cash flow | Prepayment speed (CPR) Discount rate | 20.2% - 39.2% (25.7%) 9.0% | Decrease Decrease
Commitments to extend credit on loans to be held for sale | $ | 2,134 |  | Relative value analysis | TBA-MBS broker quotes Fall-out ratio (3) | 99.1% – 106.2% (102.3%) of par 22.5% - 30.3% (29.3%) | Decrease Decrease
Option contracts | $ | 110 |  | Relative value analysis | Broker quotes | 126.8% of par | Increase
Liabilities: |  |  |  |  |
Commitments to extend credit on loans to be held for sale | $ | 5 |  | Relative value analysis | TBA-MBS broker quotes Fall-out ratio (3) | 101.4% – 103.9% (102.3%) of par 22.5% - 30.3% (29.3%) | Increase Increase
Mandatory loan sale commitments | $ | 86 |  | Relative value analysis | TBA MBS broker quotes Roll-forward costs (4) | 101.2% - 105.0% (104.3%) of par 0.007% | Increase Increase
(1) | The range is based on the 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 December 31, 2014 and June 30, 2014 were as follows:
| December 31, 2014
(In Thousands) | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3
Financial assets: |  |  |  |  |
Loans held for investment, net | $ | 797,783 |  | $ | 804,707 |  | — |  | — |  | $ | 804,707 |
FHLB – San Francisco stock | $ | 7,056 |  | $ | 7,056 |  | — |  | $ | 7,056 |  | — |
Financial liabilities: |  |  |  |  |
Deposits | $ | 905,512 |  | $ | 882,526 |  | — |  | — |  | $ | 882,526 |
Borrowings | $ | 41,400 |  | $ | 44,440 |  | — |  | — |  | $ | 44,440 |
| June 30, 2014
(In Thousands) | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3
Financial assets: |  |  |  |  |
Loans held for investment, net | $ | 772,141 |  | $ | 778,851 |  | — |  | — |  | $ | 778,851 |
FHLB – San Francisco stock | $ | 7,056 |  | $ | 7,056 |  | — |  | $ | 7,056 |  | — |
Financial liabilities: |  |  |  |  |
Deposits | $ | 897,870 |  | $ | 875,440 |  | — |  | — |  | $ | 875,440 |
Borrowings | $ | 41,431 |  | $ | 44,424 |  | — |  | — |  | $ | 44,424 |

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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=36462937&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 Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=36462937&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=36462937&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=36462937&loc=d3e19279-110258 + 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=36462937&loc=d3e19190-110258 + Details
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