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Fair Value of Financial Instruments (Tables)

12 Months Ended

Jun. 30, 2016

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 investment at fair value and loans held for sale at fair value:

(In Thousands)	Aggregate Fair Value			Aggregate Unpaid Principal Balance			Net Unrealized (Loss) Gain
As of June 30, 2016:
Loans held for investment, at fair value	$	5,159		$	5,324		$	(165	)
Loans held for sale, at fair value	$	189,458		$	181,380		$	8,078
As of June 30, 2015:
Loans held for investment, at fair value	$	4,518		$	4,495		$	23
Loans held for sale, 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 table presents information at the dates indicated about the Corporation’s assets measured at fair value on a recurring basis:

	Fair Value Measurement at June 30, 2016 Using:
(In Thousands)	Level 1			Level 2			Level 3			Total
Assets:
Investment securities - available for sale:
U.S. government agency MBS	$	—		$	6,572		$	—		$	6,572
U.S. government sponsored enterprise MBS	—			4,223			—			4,223
Private issue CMO	—			—			601			601
Common stock - community development financial institution	—			147			—			147
Investment securities	—			10,942			601			11,543
Loans held for investment, at fair value	—			—			5,159			5,159
Loans held for sale, at fair value	—			189,458			—			189,458
Interest-only strips	—			—			47			47
Derivative assets:
Commitments to extend credit on loans to be held for sale	—			—			3,788			3,788
Derivative assets	—			—			3,788			3,788
Total assets	$	—		$	200,400		$	9,595		$	209,995
Liabilities:
Derivative liabilities:
Commitments to extend credit on loans to be held for sale	$	—		$	—		$	3		$	3
Mandatory loan sale commitments	—			—			31			31
TBA MBS trades	—			3,165			—			3,165
Derivative liabilities	—			3,165			34			3,199
Total liabilities	$	—		$	3,165		$	34		$	3,199

	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 is a reconciliation of the beginning and ending balances during the periods shown of recurring fair value measurements recognized in the Consolidated Statements of Financial Condition using Level 3 inputs:

	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	—			(103		)	(189		)	—			2,286			(8		)	(112		)	1,874
Included in other comprehensive   income	(6		)	99			—			(16		)	—			—			—			77
Purchases	—			—			—			—			—			—			307			307
Issuances	—			—			—			—			—			—			—			—
Settlements	(110		)	—			(2,331		)	—			—			48			(387		)	(2,780		)
Transfers in and/or out of Level 3	—			(147		)	7,679			—			—			—			—			7,532
Ending balance at June 30, 2016	$	601		$	—		$	5,159		$	47		$	3,785		$	(31	)	$	—		$	9,561

⁽¹⁾  Common stock - community development financial institution.

⁽²⁾  The valuation of loans held for investment at fair value includes the management estimates of the specific credit risk attributes of each loan, 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.

	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(1)			Manda- tory Commit- ments(2)			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	—			—			—			(1,067		)	(15		)	(168		)	(1,250		)
Included in other comprehensive   income	(3		)	(99		)	1			—			—			—			(101		)
Purchases	—			250			—			—			—			932			1,182
Issuances	—			—			—			—			—			—			—
Settlements	(133		)	—			—			—			37			(572		)	(668		)
Transfers in and/or out of Level 3	—			—			—			—			—			—			—
Ending balance at June 30, 2015	$	717		$	151		$	63		$	1,499		$	(71	)	$	192		$	2,551

⁽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 June 30, 2016 Using:
(In Thousands)	Level 1			Level 2			Level 3			Total
Non-performing loans	$	—		$	7,350		$	2,959		$	10,309
Mortgage servicing assets	—			—			627			627
Real estate owned, net	—			2,706			—			2,706
Total	$	—		$	10,056		$	3,586		$	13,642

	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
Mortgage servicing assets	—			—			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 June 30, 2016:

(Dollars In Thousands)	Fair Value As of June 30, 2016			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	$	601		Market comparable pricing	Comparability adjustment	(0.9)% - 0.7% (0.5%)	Increase
Loans held for investment, at fair value	$	5,159		Relative value analysis	Broker quotes Credit risk factor	98.0% - 107.1% (103.4%) of par 1.2% - 100.0% (6.3%)	Increase Decrease
Non-performing loans	$	76		Discounted cash flow	Default rates	5.0%	Decrease
Non-performing loans	$	2,883		Relative value analysis	Loss severity	20.0% - 45.0% (23.1%)	Decrease
Mortgage servicing assets	$	627		Discounted cash flow	Prepayment speed (CPR) Discount rate	15.0% - 60.0% (19.7%) 9.0% - 10.5% (9.1%)	Decrease Decrease
Interest-only strips	$	47		Discounted cash flow	Prepayment speed (CPR) Discount rate	18.0% - 23.7% (18.5%) 9.0%	Decrease Decrease
Commitments to extend credit on loans to be held for sale	$	3,788		Relative value analysis	TBA MBS broker quotes Fall-out ratio(3)	97.9% –  105.0% (102.1%) of par 19.9% - 38.5% (37.5%)	Increase   Decrease
Liabilities:
Commitments to extend credit on loans to be held for sale	$	3		Relative value analysis	TBA MBS broker quotes Fall-out ratio(3)	100.7% – 101.5% (101.0%) of par 19.9% - 38.5% (37.5%)	Increase   Decrease
Mandatory loan sale commitments	$	31		Relative value analysis	Investor quotes TBA MBS broker quotes Roll-forward costs(4)	103.7% of par 104.6% - 106.1% (104.9%) of par 0.0180%	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 June 30, 2016 and 2015 were as follows:

	June 30, 2016
(In Thousands)	Carrying Amount			Fair Value			Level 1			Level 2			Level 3
Financial assets:
Loans held for investment, not recorded at fair value	$	834,863		$	844,124		$	—		$	—		$	844,124
Investment securities - held to maturity	$	39,979		$	40,438		$	—		$	40,438		$	—
FHLB – San Francisco stock	$	8,094		$	8,094		$	—		$	8,094		$	—
Financial liabilities:
Deposits	$	926,384		$	896,033		$	—		$	—		$	896,033
Borrowings	$	91,299		$	95,898		$	—		$	—		$	95,898

	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
Investment securities - held to maturity	$	800		$	800		$	—		$	800		$	—
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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