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Fair Value of Financial Instruments (Tables) | 3 Months Ended
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Sep. 30, 2016
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, 2016: |  |  |
Loans held for investment, at fair value | $ | 5,529 |  | $ | 5,657 |  | $ | (128 | )
Loans held for sale, at fair value | $ | 264,379 |  | $ | 254,779 |  | $ | 9,600 |
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 |
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, 2016 Using:
(In Thousands) | Level 1 | Level 2 | Level 3 | Total
Assets: |  |  |  |
Investment securities - available for sale: |  |  |  |
U.S. government agency MBS | $ | — |  | $ | 6,131 |  | $ | — |  | $ | 6,131 |
U.S. government sponsored enterprise MBS | — |  | 4,087 |  | — |  | 4,087 |
Private issue CMO | — |  | — |  | 560 |  | 560 |
Investment securities - available for sale | — |  | 10,218 |  | 560 |  | 10,778 |
Loans held for investment, at fair value | — |  | — |  | 5,529 |  | 5,529 |
Loans held for sale, at fair value | — |  | 264,379 |  | — |  | 264,379 |
Interest-only strips | — |  | — |  | 42 |  | 42 |
Derivative assets: |  |  |  |
Commitments to extend credit on loans to be held for sale | — |  | — |  | 2,598 |  | 2,598 |
Mandatory loan sale commitments | — |  | — |  | 30 |  | 30 |
Option contracts | — |  | — |  | 22 |  | 22 |
Derivative assets | — |  | — |  | 2,650 |  | 2,650 |
Total assets | $ | — |  | $ | 274,597 |  | $ | 8,781 |  | $ | 283,378 |
Liabilities: |  |  |  |
Derivative liabilities: |  |  |  |
Commitments to extend credit on loans to be held for sale | $ | — |  | $ | — |  | $ | 24 |  | $ | 24 |
Mandatory loan sale commitments | — |  | — |  | 54 |  | 54 |
TBA MBS trades | — |  | 1,375 |  | — |  | 1,375 |
Derivative liabilities | — |  | 1,375 |  | 78 |  | 1,453 |
Total liabilities | $ | — |  | $ | 1,375 |  | $ | 78 |  | $ | 1,453 |
| 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 - available for sale | — |  | 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 |
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, 2016
| Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3)
(In Thousands) | Private Issue CMO | Loans Held For Investment, at fair value (1) | Interest- Only Strips | Loan Commit- ments to Originate (2) | Manda- tory Commit- ments (3) | Option Contracts | Total
Beginning balance at June 30, 2016 | $ | 601 |  | $ | 5,159 |  | $ | 47 |  | $ | 3,785 |  | $ | (31 | ) | $ | — |  | $ | 9,561 |
Total gains or losses (realized/unrealized): |  |  |  |  |  |  |
Included in earnings | — |  | 38 |  | — |  | (1,211 | ) | (5 | ) | (22 | ) | (1,200 | )
Included in other comprehensive income (loss) | 1 |  | — |  | (5 | ) | — |  | — |  | — |  | (4 | )
Purchases | — |  | — |  | — |  | — |  | — |  | 44 |  | 44 |
Issuances | — |  | — |  | — |  | — |  | — |  | — |  | — |
Settlements | (42 | ) | (428 | ) | — |  | — |  | 12 |  | — |  | (458 | )
Transfers in and/or out of Level 3 | — |  | 760 |  | — |  | — |  | — |  | — |  | 760 |
Ending balance at September 30, 2016 | $ | 560 |  | $ | 5,529 |  | $ | 42 |  | $ | 2,574 |  | $ | (24 | ) | $ | 22 |  | $ | 8,703 |
(1) | 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.
(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 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) income | (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) | 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.
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, 2016 Using:
(In Thousands) | Level 1 | Level 2 | Level 3 | Total
Non-performing loans | $ | — |  | $ | 7,012 |  | $ | 3,001 |  | $ | 10,013 |
MSA | — |  | — |  | 588 |  | 588 |
Real estate owned, net | — |  | 3,496 |  | — |  | 3,496 |
Total | $ | — |  | $ | 10,508 |  | $ | 3,589 |  | $ | 14,097 |
| 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 |
MSA | — |  | — |  | 627 |  | 627 |
Real estate owned, net | — |  | 2,706 |  | — |  | 2,706 |
Total | $ | — |  | $ | 10,056 |  | $ | 3,586 |  | $ | 13,642 |
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, 2016:
(Dollars In Thousands) | Fair Value As of September 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 | $ | 560 |  | Market comparable pricing | Comparability adjustment | 0% – 0.9% (0.7%) | Increase
Loans held for investment, at fair value | $ | 5,529 |  | Relative value analysis | Broker quotes Credit risk factors | 100.0% – 107.1% (103.8%) of par 1.2% - 100.0% (5.9%) | Increase Decrease
Non-performing loans | $ | 74 |  | Discounted cash flow | Default rates | 5.0% | Decrease
Non-performing loans | $ | 2,927 |  | Relative value analysis | Loss severity | 20.0% - 45.0% (22.9%) | Decrease
MSA | $ | 588 |  | Discounted cash flow | Prepayment speed (CPR) Discount rate | 13.4% - 60.0% (19.7%) 9.0% - 10.5% (9.1%) | Decrease Decrease
Interest-only strips | $ | 42 |  | Discounted cash flow | Prepayment speed (CPR) Discount rate | 15.8% - 21.3% (20.5%) 9.0% | Decrease Decrease
Commitments to extend credit on loans to be held for sale | $ | 2,598 |  | Relative value analysis | TBA-MBS broker quotes Fall-out ratio (3) | 98.9% – 105.0% (102.2%) of par 20.2% - 33.5% (32.6%) | Increase Decrease
Mandatory loan sale commitments | $ | 30 |  | Relative value analysis | TBA MBS broker quotes Roll-forward costs (4) | 104.8% - 106.2% (104.9%) of par 0.006% | Decrease Decrease
Option contracts | $ | 22 |  | Relative value analysis | Broker quotes | 131.1% of par | Increase
Liabilities: |  |  |  |  |
Commitments to extend credit on loans to be held for sale | $ | 24 |  | Relative value analysis | TBA-MBS broker quotes Fall-out ratio (3) | 100.4% – 103.0% (100.7%) of par 20.2% - 33.5% (32.6%) | Increase Decrease
Mandatory loan sale commitments | $ | 54 |  | Relative value analysis | TBA MBS broker quotes Roll-forward costs (4) | 100.7% - 107.1% (104.2%) of par 0.006% | Decrease Decrease
(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 September 30, 2016 and June 30, 2016 was as follows:
| September 30, 2016
(In Thousands) | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3
Financial assets: |  |  |  |  |
Investment securities - held to maturity | $ | 36,290 |  | $ | 36,749 |  | — |  | $ | 36,749 |  | $ | — |
Loans held for investment, not recorded at fair value | $ | 848,429 |  | $ | 854,095 |  | — |  | — |  | $ | 854,095 |
FHLB – San Francisco stock | $ | 8,094 |  | $ | 8,094 |  | — |  | $ | 8,094 |  | — |
Financial liabilities: |  |  |  |  |
Deposits | $ | 943,502 |  | $ | 910,815 |  | — |  | — |  | $ | 910,815 |
Borrowings | $ | 146,281 |  | $ | 149,528 |  | — |  | — |  | $ | 149,528 |
| June 30, 2016
(In Thousands) | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3
Financial assets: |  |  |  |  |
Investment securities - held to maturity | $ | 39,979 |  | $ | 40,438 |  | — |  | $ | 40,438 |  | — |
Loans held for investment, not recorded at fair value | $ | 834,863 |  | $ | 844,124 |  | — |  | — |  | $ | 844,124 |
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 |

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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=66048111&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 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=66048111&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 1 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19190-110258 Reference 3: 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=66048111&loc=d3e19207-110258 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 + 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=66048111&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=66048111&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=66048111&loc=d3e19190-110258 + Details
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