XML 60 R46.htm IDEA: XBRL DOCUMENT v3.22.2.2
Fair Value of Financial Instruments (Tables)
 12 Months Ended
Jun. 30, 2022
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

Those assets and liabilities measured at fair value on a recurring basis are summarized below:

 

 

June 30, 2022

 

 

Quoted
Prices
in Active
Markets for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

 

Total

 

 

(In Thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

Debt securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

Obligations of state and political subdivisions

$

-

 

 

$

28,435

 

 

$

-

 

 

$

28,435

 

Asset-backed securities

 

-

 

 

 

166,557

 

 

 

-

 

 

 

166,557

 

Collateralized loan obligations

 

-

 

 

 

307,813

 

 

 

-

 

 

 

307,813

 

Corporate bonds

 

-

 

 

 

153,397

 

 

 

-

 

 

 

153,397

 

Total debt securities

 

-

 

 

 

656,202

 

 

 

-

 

 

 

656,202

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

Collateralized mortgage obligations

 

-

 

 

 

7,122

 

 

 

-

 

 

 

7,122

 

Residential pass-through securities

 

-

 

 

 

514,758

 

 

 

-

 

 

 

514,758

 

Commercial pass-through securities

 

-

 

 

 

166,011

 

 

 

-

 

 

 

166,011

 

Total mortgage-backed securities

 

-

 

 

 

687,891

 

 

 

-

 

 

 

687,891

 

Total securities available for sale

$

-

 

 

$

1,344,093

 

 

$

-

 

 

$

1,344,093

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

$

-

 

 

$

41,223

 

 

$

-

 

 

$

41,223

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

-

 

 

$

1,385,316

 

 

$

-

 

 

$

1,385,316

 

 

June 30, 2021

 

 

Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

 

Total

 

 

(In Thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

Debt securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

Obligations of state and political subdivisions

$

-

 

 

$

34,603

 

 

$

-

 

 

$

34,603

 

Asset-backed securities

 

-

 

 

 

242,989

 

 

 

-

 

 

 

242,989

 

Collateralized loan obligations

 

-

 

 

 

189,880

 

 

 

-

 

 

 

189,880

 

Corporate bonds

 

-

 

 

 

158,351

 

 

 

-

 

 

 

158,351

 

Total debt securities

 

-

 

 

 

625,823

 

 

 

-

 

 

 

625,823

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

Collateralized mortgage obligations

 

-

 

 

 

13,739

 

 

 

-

 

 

 

13,739

 

Residential pass-through securities

 

-

 

 

 

744,491

 

 

 

-

 

 

 

744,491

 

Commercial pass-through securities

 

-

 

 

 

292,811

 

 

 

-

 

 

 

292,811

 

Total mortgage-backed securities

 

-

 

 

 

1,051,041

 

 

 

-

 

 

 

1,051,041

 

Total securities available for sale

$

-

 

 

$

1,676,864

 

 

$

-

 

 

$

1,676,864

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

$

-

 

 

$

1,832

 

 

$

-

 

 

$

1,832

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

-

 

 

$

1,678,696

 

 

$

-

 

 

$

1,678,696

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

$

-

 

 

$

673

 

 

$

-

 

 

$

673

 

Total liabilities

$

-

 

 

$

673

 

 

$

-

 

 

$

673

 
Schedule of Assets and Liabilities Measured at Fair Value on a Non-recurring Basis

Those assets and liabilities measured at fair value on a non-recurring basis are summarized below:

 

 

June 30, 2022

 

 

Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

 

Total

 

 

(In Thousands)

 

Collateral dependent loans:

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage

$

-

 

 

$

-

 

 

$

2,035

 

 

$

2,035

 

Multi-family mortgage

 

-

 

 

 

-

 

 

 

7,517

 

 

 

7,517

 

Nonresidential mortgage

 

-

 

 

 

-

 

 

 

11,479

 

 

 

11,479

 

Total

$

-

 

 

$

-

 

 

$

21,031

 

 

$

21,031

 

 

 

 

 

 

 

 

 

 

 

 

 

Other real estate owned, net:

 

 

 

 

 

 

 

 

 

 

 

Residential

$

-

 

 

$

-

 

 

$

178

 

 

$

178

 

Total

$

-

 

 

$

-

 

 

$

178

 

 

$

178

 

 

 

June 30, 2021

 

 

Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

 

Total

 

 

(In Thousands)

 

Collateral dependent loans:

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage

$

-

 

 

$

-

 

 

$

3,051

 

 

$

3,051

 

Multi-family mortgage

 

 

 

 

 

 

 

6,932

 

 

 

6,932

 

Nonresidential mortgage

 

-

 

 

 

-

 

 

 

8,679

 

 

 

8,679

 

Total

$

-

 

 

$

-

 

 

$

18,662

 

 

$

18,662

 

 

 

 

 

 

 

 

 

 

 

 

 

Other real estate owned, net:

 

 

 

 

 

 

 

 

 

 

 

Residential

$

-

 

 

$

-

 

 

$

178

 

 

$

178

 

Total

$

-

 

 

$

-

 

 

$

178

 

 

$

178

 

 
Schedule of Quantitative Information about Level 3 Fair Value Measurements

The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company has utilized adjusted Level 3 inputs to determine fair value:

 

 

June 30, 2022

 

 

Fair
Value

 

 

Valuation
Techniques

 

Unobservable
Input

 

Range

 

Weighted
Average

 

 

(Dollars in Thousands)

 

Collateral dependent loans:

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage

$

2,035

 

 

Market valuation of underlying collateral

(1)

Adjustments to reflect current conditions/selling costs

(2)

7% - 10%

 

 

8.97

%

Multi-family mortgage

 

7,517

 

 

Market valuation of underlying collateral

(1)

Adjustments to reflect current conditions/selling costs

(2)

10% - 12%

 

 

11.06

%

Nonresidential mortgage

 

11,479

 

 

Market valuation of underlying collateral

(1)

Adjustments to reflect current conditions/selling costs

(2)

9% - 18%

 

 

12.72

%

Total

$

21,031

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other real estate owned, net:

 

 

 

 

 

 

 

 

 

 

 

Residential

$

178

 

 

Market valuation of underlying collateral

(3)

Adjustments to reflect current conditions/selling costs

(2)

6.00%

 

 

6.00

%

Total

$

178

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2021

 

 

Fair
Value

 

 

Valuation
Techniques

 

Unobservable
Input

 

Range

 

Weighted
Average

 

 

(Dollars in Thousands)

 

Collateral dependent loans:

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage

$

3,051

 

 

Market valuation of underlying collateral

(1)

Adjustments to reflect current conditions/selling costs

(2)

7% - 13%

 

 

9.77

%

Multi-family mortgage

 

6,932

 

 

Market valuation of underlying collateral

(1)

Adjustments to reflect current conditions/selling costs

(2)

10% - 11%

 

 

10.39

%

Nonresidential mortgage

 

8,679

 

 

Market valuation of underlying collateral

(1)

Adjustments to reflect current conditions/selling costs

(2)

9% - 16%

 

 

14.48

%

Total

$

18,662

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other real estate owned, net:

 

 

 

 

 

 

 

 

 

 

 

Residential

$

178

 

 

Market valuation of underlying collateral

(3)

Adjustments to reflect current conditions/selling costs

(2)

6.00%

 

 

6.00

%

Total

$

178

 

 

 

 

 

 

 

 

 

 

 

(1)
The fair value basis of collateral dependent loans is generally determined based on an independent appraisal of the fair value of a loan’s underlying collateral.
(2)
The fair value basis of collateral dependent loans and other real estate owned is adjusted to reflect management estimates of selling costs including, but not limited to, real estate brokerage commissions and title transfer fees.
(3)
The fair value basis of other real estate owned is generally determined based upon the lower of an independent appraisal of the property’s fair value or the applicable listing price or contracted sales price.
Schedule of Carrying Amounts and Fair Values of Financial Instruments

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2022 and 2021:

 

 

June 30, 2022

 

 

Carrying
Amount

 

 

Fair
Value

 

 

Quoted
Prices
in Active
Markets for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

 

(In Thousands)

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

101,615

 

 

$

101,615

 

 

$

101,615

 

 

$

-

 

 

$

-

 

Investment securities available for sale

 

1,344,093

 

 

 

1,344,093

 

 

 

-

 

 

 

1,344,093

 

 

 

-

 

Investment securities held to maturity

 

118,291

 

 

 

108,118

 

 

 

-

 

 

 

108,118

 

 

 

-

 

Loans held-for-sale

 

28,874

 

 

 

28,831

 

 

 

-

 

 

 

28,831

 

 

 

-

 

Net loans receivable

 

5,370,787

 

 

 

5,215,079

 

 

 

-

 

 

 

-

 

 

 

5,215,079

 

FHLB Stock

 

47,144

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Interest receivable

 

20,466

 

 

 

20,466

 

 

 

2

 

 

 

5,210

 

 

 

15,254

 

Interest rate contracts

 

41,223

 

 

 

41,223

 

 

 

-

 

 

 

41,223

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

5,862,256

 

 

 

5,839,035

 

 

 

3,972,694

 

 

 

-

 

 

 

1,866,341

 

Borrowings

 

901,337

 

 

 

900,505

 

 

 

-

 

 

 

-

 

 

 

900,505

 

Interest payable on deposits

 

722

 

 

 

722

 

 

 

147

 

 

 

-

 

 

 

575

 

Interest payable on borrowings

 

1,611

 

 

 

1,611

 

 

 

-

 

 

 

-

 

 

 

1,611

 

 

Note 18 – Fair Value of Financial Instruments (continued)

 

 

June 30, 2021

 

 

Carrying
Amount

 

 

Fair
Value

 

 

Quoted
Prices
in Active
Markets for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

 

(In Thousands)

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

67,855

 

 

$

67,855

 

 

$

67,855

 

 

$

-

 

 

$

-

 

Investment securities available for sale

 

1,676,864

 

 

 

1,676,864

 

 

 

-

 

 

 

1,676,864

 

 

 

-

 

Investment securities held to maturity

 

38,138

 

 

 

39,610

 

 

 

-

 

 

 

39,610

 

 

 

-

 

Loans held-for-sale

 

16,492

 

 

 

16,934

 

 

 

-

 

 

 

16,934

 

 

 

-

 

Net loans receivable

 

4,793,229

 

 

 

4,830,136

 

 

 

-

 

 

 

-

 

 

 

4,830,136

 

FHLB Stock

 

36,615

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Interest receivable

 

19,362

 

 

 

19,362

 

 

 

1

 

 

 

4,238

 

 

 

15,123

 

Interest rate contracts

 

1,832

 

 

 

1,832

 

 

 

-

 

 

 

1,832

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

5,485,306

 

 

 

5,490,923

 

 

 

3,607,560

 

 

 

-

 

 

 

1,883,363

 

Borrowings

 

685,876

 

 

 

701,419

 

 

 

-

 

 

 

-

 

 

 

701,419

 

Interest payable on deposits

 

145

 

 

 

145

 

 

 

96

 

 

 

-

 

 

 

49

 

Interest payable on borrowings

 

1,335

 

 

 

1,335

 

 

 

-

 

 

 

-

 

 

 

1,335

 

Interest rate contracts

 

673

 

 

 

673

 

 

 

-

 

 

 

673

 

 

 

-