XML 47 R22.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Derivative and Other Financial Instruments with Off-Balance Sheet Risks | 12 Months Ended
--- | ---
Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative and Other Financial Instruments with Off-Balance Sheet Risks | Derivative and Other Financial Instruments with Off-Balance Sheet Risks The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit in the form of originating loans or providing funds under existing lines of credit, loan sale commitments to third parties and option contracts. These instruments involve, to varying degrees, elements of credit and interest-rate risk in excess of the amount recognized in the accompanying Consolidated Statements of Financial Condition. The Corporation’s exposure to credit loss, in the event of non-performance by the counterparty to these financial instruments, is represented by the contractual amount of these instruments. The Corporation uses the same credit policies in entering into financial instruments with off-balance sheet risk as it does for on-balance sheet instruments. As of June 30, 2018 and 2017, the Corporation had commitments to extend credit (on loans to be held for investment and loans to be held for sale) of $66.3 million and $111.8 million, respectively. The following table provides information at the dates indicated regarding undisbursed funds to borrowers on existing lines of credit with the Corporation as well as commitments to originate loans to be held for investment at the dates indicated below:
Commitments | June 30, 2018 | June 30, 2017
(Dollars In Thousands) |  |
Undisbursed loan funds – Construction loans | $ | 4,302 |  | $ | 9,015 |
Undisbursed lines of credit – Commercial business loans | 495 |  | 646 |
Undisbursed lines of credit – Consumer loans | 503 |  | 562 |
Commitments to extend credit on loans to be held for investment | 9,352 |  | 19,119 |
Total | $ | 14,652 |  | $ | 29,342 |
The following table provides information regarding the allowance for loan losses for the undisbursed funds and commitments to extend credit on loans to be held for investment for the years ended June 30, 2018 and 2017 :
| For the Year Ended June 30,
(In Thousands) | 2018 | 2017
Balance, beginning of the year | $ | 277 |  | $ | 204 |
(Recovery) provision | (120 | ) | 73 |
Balance, end of the year | $ | 157 |  | $ | 277 |
In accordance with ASC 815, “Derivatives and Hedging,” and interpretations of the Derivatives Implementation Group of the FASB, the fair value of the commitments to extend credit on loans to be held for sale, loan sale commitments, TBA MBS trades, put option contracts and call option contracts are recorded at fair value on the Consolidated Statements of Financial Condition. At June 30, 2018, $849,000 was included in other assets and $464,000 was included in other liabilities. At June 30, 2017, $1.5 million was included in other assets and $38,000 was included in other liabilities. The Corporation does not apply hedge accounting to its derivative financial instruments; therefore, all changes in fair value are recorded in the Consolidated Statements of Operations. The net impact of derivative financial instruments on the gain on sale of loans contained in the Consolidated Statements of Operations for the years ended June 30, 2018, 2017 and 2016 was as follows:
(In Thousands) | For the Year Ended June 30,
Derivative Financial Instruments | 2018 | 2017 | 2016
Commitments to extend credit on loans to be held for sale | $ | 16 |  | $ | (2,976 | ) | $ | 2,286 |
Mandatory loan sale commitments and TBA MBS trades | (1,026 | ) | 3,782 |  | (3,937 | )
Option contracts | (37 | ) | 260 |  | (112 | )
Total net (loss) gain | $ | (1,047 | ) | $ | 1,066 |  | $ | (1,763 | )
The outstanding derivative financial instruments at the dates indicated were as follows:
(In Thousands) | June 30, 2018 |  | June 30, 2017
Derivative Financial Instruments | Amount | Fair Value |  | Amount | Fair Value
Commitments to extend credit on loans to be held for sale(1) | $ | 56,906 |  | $ | 825 |  |  | $ | 92,726 |  | $ | 809 |
Best efforts loan sale commitments | (29,502 | ) | — |  |  | (17,225 | ) | — |
Mandatory loan sale commitments and TBA MBS trades | (117,759 | ) | (440 | ) |  | (179,777 | ) | 586 |
Option contracts | — |  | — |  |  | (3,000 | ) | 37 |
Total | $ | (90,355 | ) | $ | 385 |  |  | $ | (107,276 | ) | $ | 1,432 |
(1) | Net of 24.7% at June 30, 2018 and 25.7% at June 30, 2017 of commitments, which management has estimated may not fund.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration