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Fair Value of Financial Instruments (Tables) | 3 Months Ended
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Sep. 30, 2015
Fair Value Disclosures [Abstract] |
Schedule of Aggregate Fair Value and Aggregate Unpaid Principal Balance of Loans Held for Sale |
(In Thousands) | Aggregate Fair Value | Aggregate Unpaid Principal Balance | Net Unrealized (Loss) Gain
As of September 30, 2015: |  |  |
Loans held for investment, at fair value | $ | 4,036 |  | $ | 4,167 |  | $ | (131 | )
Loans held for sale, measured at fair value | $ | 163,644 |  | $ | 156,901 |  | $ | 6,743 |
As of June 30, 2015: |  |  |
Loans held for investment, at fair value | $ | 4,518 |  | $ | 4,495 |  | $ | 23 |
Loans held for sale, measured at fair value | $ | 224,715 |  | $ | 219,143 |  | $ | 5,572 |
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 September 30, 2015 Using:
(In Thousands) | Level 1 | Level 2 | Level 3 | Total
Assets: |  |  |  |
Investment securities: |  |  |  |
U.S. government agency MBS | $ | — |  | $ | 7,573 |  | $ | — |  | $ | 7,573 |
U.S. government sponsored enterprise MBS | — |  | 5,046 |  | — |  | 5,046 |
Private issue CMO | — |  | — |  | 691 |  | 691 |
Common stock - community development financial institution | — |  | — |  | 151 |  | 151 |
Investment securities | — |  | 12,619 |  | 842 |  | 13,461 |
Loans held for investment, at fair value | — |  | — |  | 4,036 |  | 4,036 |
Loans held for sale, at fair value | — |  | 163,644 |  | — |  | 163,644 |
Interest-only strips | — |  | — |  | 60 |  | 60 |
Derivative assets: |  |  |  |
Commitments to extend credit on loans to be held for sale | — |  | — |  | 2,510 |  | 2,510 |
Option contracts | — |  | — |  | 57 |  | 57 |
Derivative assets | — |  | — |  | 2,567 |  | 2,567 |
Total assets | $ | — |  | $ | 176,263 |  | $ | 7,505 |  | $ | 183,768 |
Liabilities: |  |  |  |
Derivative liabilities: |  |  |  |
Commitments to extend credit on loans to be held for sale | $ | — |  | $ | — |  | $ | 6 |  | $ | 6 |
Mandatory loan sale commitments | — |  | — |  | 150 |  | 150 |
TBA MBS trades | — |  | 1,542 |  | — |  | 1,542 |
Derivative liabilities | — |  | 1,542 |  | 156 |  | 1,698 |
Total liabilities | $ | — |  | $ | 1,542 |  | $ | 156 |  | $ | 1,698 |
| Fair Value Measurement at June 30, 2015 Using:
(In Thousands) | Level 1 | Level 2 | Level 3 | Total
Assets: |  |  |  |
Investment securities: |  |  |  |
U.S. government agency MBS | $ | — |  | $ | 7,906 |  | $ | — |  | $ | 7,906 |
U.S. government sponsored enterprise MBS | — |  | 5,387 |  | — |  | 5,387 |
Private issue CMO | — |  | — |  | 717 |  | 717 |
Common stock - community development financial institution | — |  | — |  | 151 |  | 151 |
Investment securities | — |  | 13,293 |  | 868 |  | 14,161 |
Loans held for investment, at fair value | — |  | 4,518 |  | — |  | 4,518 |
Loans held for sale, at fair value | — |  | 224,715 |  | — |  | 224,715 |
Interest-only strips | — |  | — |  | 63 |  | 63 |
Derivative assets: |  |  |  |
Commitments to extend credit on loans to be held for sale | — |  | — |  | 1,636 |  | 1,636 |
TBA MBS trades | — |  | 812 |  | — |  | 812 |
Option contracts | — |  | — |  | 192 |  | 192 |
Derivative assets | — |  | 812 |  | 1,828 |  | 2,640 |
Total assets | $ | — |  | $ | 243,338 |  | $ | 2,759 |  | $ | 246,097 |
Liabilities: |  |  |  |
Derivative liabilities: |  |  |  |
Commitments to extend credit on loans to be held for sale | $ | — |  | $ | — |  | $ | 137 |  | $ | 137 |
Mandatory loan sale commitments | — |  | — |  | 71 |  | 71 |
Derivative liabilities | — |  | — |  | 208 |  | 208 |
Total liabilities | $ | — |  | $ | — |  | $ | 208 |  | $ | 208 |
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 September 30, 2015
| Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3)
(In Thousands) | Private Issue CMO | Common stock (1) | Loans Held For Investment, at fair value (2) | Interest- Only Strips | Loan Commit- ments to Originate (3) | Manda- tory Commit- ments (4) | Option Contracts | Total
Beginning balance at June 30, 2015 | $ | 717 |  | $ | 151 |  | $ | — |  | $ | 63 |  | $ | 1,499 |  | $ | (71 | ) | $ | 192 |  | $ | 2,551 |
Total gains or losses (realized/ unrealized): |  |  |  |  |  |  |  |
Included in earnings | — |  | — |  | (155 | ) | — |  | 1,005 |  | (96 | ) | (88 | ) | 666 |
Included in other comprehensive loss | (1 | ) | — |  | — |  | (3 | ) | — |  | — |  | — |  | (4 | )
Purchases | — |  | — |  | — |  | — |  | — |  | — |  | 89 |  | 89 |
Issuances | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Settlements | (25 | ) | — |  | (638 | ) | — |  | — |  | 17 |  | (136 | ) | (782 | )
Transfers in and/or out of Level 3 | — |  | — |  | 4,829 |  | — |  | — |  | — |  | — |  | 4,829 |
Ending balance at September 30, 2015 | $ | 691 |  | $ | 151 |  | $ | 4,036 |  | $ | 60 |  | $ | 2,504 |  | $ | (150 | ) | $ | 57 |  | $ | 7,349 |
(1) | Common stock of a community development financial institution.
(2) | Beginning fiscal 2016, the valuation of loans held for investment at fair value includes the management estimates of the specific credit risk attributes of each loan (Level 3), in addition to the quoted secondary-market prices which account for interest rate characteristics.
(3) | Consists of commitments to extend credit on loans to be held for sale.
(4) | Consists of mandatory loan sale commitments.
| For the Quarter Ended September 30, 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 | — |  | — |  | — |  | (781 | ) | (156 | ) | (105 | ) | (1,042 | )
Included in other comprehensive (loss) income | (1 | ) | — |  | 8 |  | — |  | — |  | — |  | 7 |
Purchases | — |  | 250 |  | — |  | — |  | — |  | 187 |  | 437 |
Issuances | — |  | — |  | — |  | — |  | — |  | — |  | — |
Settlements | (24 | ) | — |  | — |  | — |  | 4 |  | (49 | ) | (69 | )
Transfers in and/or out of Level 3 | — |  | — |  | — |  | — |  | — |  | — |  | — |
Ending balance at September 30, 2014 | $ | 828 |  | $ | 250 |  | $ | 70 |  | $ | 1,785 |  | $ | (245 | ) | $ | 33 |  | $ | 2,721 |
(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.
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 September 30, 2015 Using:
(In Thousands) | Level 1 | Level 2 | Level 3 | Total
Non-performing loans | $ | — |  | $ | 11,146 |  | $ | 3,618 |  | $ | 14,764 |
MSA | — |  | — |  | 417 |  | 417 |
Real estate owned, net | — |  | 3,674 |  | — |  | 3,674 |
Total | $ | — |  | $ | 14,820 |  | $ | 4,035 |  | $ | 18,855 |
| Fair Value Measurement at June 30, 2015 Using:
(In Thousands) | Level 1 | Level 2 | Level 3 | Total
Non-performing loans | $ | — |  | $ | 11,816 |  | $ | 2,130 |  | $ | 13,946 |
MSA | — |  | — |  | 269 |  | 269 |
Real estate owned, net | — |  | 2,398 |  | — |  | 2,398 |
Total | $ | — |  | $ | 14,214 |  | $ | 2,399 |  | $ | 16,613 |
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, 2015:
(Dollars In Thousands) | Fair Value As of September 30, 2015 | 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 | $ | 691 |  | Market comparable pricing | Comparability adjustment | 0.0% – 1.5% (1.2%) | Increase
Securities available-for sale: Common stock(3) | $ | 151 |  | Relative value analysis | Adjusted book value | $ 38.6 million | Increase
Loans held for investment, at fair value | $ | 4,036 |  | Relative value analysis | Broker quotes Credit risk factors | 99.5% – 105.8% (102.2%) of par 1.2% - 100.0% (5.3%) | Increase Decrease
Non-performing loans | $ | 87 |  | Discounted cash flow | Default rates | 5.0% | Decrease
Non-performing loans | $ | 3,531 |  | Relative value analysis | Loss severity | 20.0% - 30.0% (20.8%) | Decrease
MSA | $ | 417 |  | Discounted cash flow | Prepayment speed (CPR) Discount rate | 7.8% - 60.0% (17.2%) 9.0% - 10.5% (9.1%) | Decrease Decrease
Interest-only strips | $ | 60 |  | Discounted cash flow | Prepayment speed (CPR) Discount rate | 16.4% - 23.6% (17.7%) 9.0% | Decrease Decrease
Commitments to extend credit on loans to be held for sale | $ | 2,510 |  | Relative value analysis | TBA-MBS broker quotes Fall-out ratio (4) | 98.0% – 105.0% (102.2%) of par 19.8% - 31.7% (30.1%) | Decrease Decrease
Option contracts | $ | 57 |  | Relative value analysis | Broker quotes | 128.9% of par | Increase
Liabilities: |  |  |  |  |
Commitments to extend credit on loans to be held for sale | $ | 6 |  | Relative value analysis | TBA-MBS broker quotes Fall-out ratio (4) | 100.5% – 102.8% (101.0%) of par 19.8% - 31.7% (30.1%) | Increase Increase
Mandatory loan sale commitments | $ | 150 |  | Relative value analysis | Investor quotes TBA MBS broker quotes Roll-forward costs (5) | 104.5% - 106.6% (104.8%) of par 0.005% | 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) | Common stock of a community development financial institution.
(4) | The percentage of commitments to extend credit on loans to be held for sale which management has estimated may not fund.
(5) | 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, 2015 and June 30, 2015 were as follows:
| September 30, 2015
(In Thousands) | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3
Financial assets: |  |  |  |  |
Loans held for investment, not recorded at fair value | $ | 801,651 |  | $ | 807,570 |  | — |  | — |  | $ | 807,570 |
FHLB – San Francisco stock | $ | 8,094 |  | $ | 8,094 |  | — |  | $ | 8,094 |  | — |
Financial liabilities: |  |  |  |  |
Deposits | $ | 924,866 |  | $ | 896,555 |  | — |  | — |  | $ | 896,555 |
Borrowings | $ | 91,351 |  | $ | 94,330 |  | — |  | — |  | $ | 94,330 |
| June 30, 2015
(In Thousands) | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3
Financial assets: |  |  |  |  |
Loans held for investment, not recorded at fair value | $ | 809,716 |  | $ | 815,385 |  | — |  | — |  | $ | 815,385 |
FHLB – San Francisco stock | $ | 8,094 |  | $ | 8,094 |  | — |  | $ | 8,094 |  | — |
Financial liabilities: |  |  |  |  |
Deposits | $ | 924,086 |  | $ | 895,664 |  | — |  | — |  | $ | 895,664 |
Borrowings | $ | 91,367 |  | $ | 93,219 |  | — |  | — |  | $ | 93,219 |

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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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