v3.26.1
LOANS & ALLOWANCE FOR CREDIT LOSSES
 12 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
LOANS & ALLOWANCE FOR CREDIT LOSSES LOANS & ALLOWANCE FOR CREDIT LOSSES
The Company categorizes the loan portfolio into five segments: Single Family - Mortgage & Warehouse, Multifamily and Commercial Mortgage, Commercial Real Estate, Commercial & Industrial - Non-Real Estate, Auto & Consumer. For further detail of the segments of the Company’s loan portfolio, refer to Note 1—“Organizations and Summary of Significant Accounting Policies.”
The following table sets forth the composition of the loan portfolio:
(Dollars in thousands)
June 30, 2026
June 30, 2025
Single Family - Mortgage & Warehouse$4,581,772 $4,395,278 
Multifamily and Commercial Mortgage
2,484,290 2,940,739 
Commercial Real Estate
8,867,851 6,937,187 
Commercial & Industrial - Non-RE9,495,647 6,795,497 
Auto & Consumer666,477 482,996 
Total gross loans26,096,037 21,551,697 
Allowance for credit losses - loans(347,375)(290,049)
Unaccreted premiums (discounts) and loan fees(153,259)(212,038)
Total net loans$25,595,403 $21,049,610 
Accrued interest receivable on loans held for investment totaled $135.6 million and $109.6 million as of June 30, 2026 and 2025, respectively.
At June 30, 2026 and 2025, the Company pledged certain loans totaling $3,761.6 million and $4,284.7 million, respectively, to the FHLB and $11,115.1 million and $8,227.7 million, respectively, to the Federal Reserve Bank of San Francisco (“FRBSF”).
The following table presents the components of the provision for credit losses:
For the Fiscal Year Ended June 30,
(Dollars in thousands)202620252024
Provision for credit losses - loans$92,719 $55,077 $32,750 
Provision for credit losses - unfunded lending commitments8,386 668 (250)
    Total provision for credit losses$101,105 $55,745 $32,500 
The following tables summarize activity in the allowance for credit losses - loans by portfolio segment:
June 30, 2026
(Dollars in thousands)Single Family-Mortgage & WarehouseMultifamily and Commercial MortgageCommercial Real EstateCommercial & Industrial - Non-REAuto & ConsumerTotal
Balance at July 1, 2025
$12,111 $26,240 $113,804 $121,639 $16,255 $290,049 
Allowance for credit losses at acquisition of PCD loans
— — — 7,946 — 7,946 
Provision (benefit) for credit losses - loans(4,809)(75)7,752 80,310 9,541 92,719 
Charge-offs(504)(5,325)(4)(34,604)(8,716)(49,153)
Recoveries558 264 — 1,793 3,199 5,814 
Balance at June 30, 2026
$7,356 $21,104 $121,552 $177,084 $20,279 $347,375 
June 30, 2025
(Dollars in thousands)Single Family-Mortgage & WarehouseMultifamily and Commercial MortgageCommercial Real EstateCommercial & Industrial - Non-REAuto & ConsumerTotal
Balance at July 1, 2024
$16,943 $70,771 $87,780 $76,032 $9,016 $260,542 
Provision (benefit) for credit losses - loans(1,858)(36,655)25,934 54,432 13,224 55,077 
Charge-offs(3,036)(8,565)(165)(8,825)(9,715)(30,306)
Recoveries62 689 255 — 3,730 4,736 
Balance at June 30, 2025
$12,111 $26,240 $113,804 $121,639 $16,255 $290,049 
June 30, 2024
(Dollars in thousands)Single Family-Mortgage & WarehouseMultifamily and Commercial MortgageCommercial Real EstateCommercial & Industrial - Non-REAuto & ConsumerTotal
Balance at July 1, 2023$17,503 $16,848 $72,755 $46,347 $13,227 $166,680 
Allowance for credit losses at acquisition of PCD loans— 58,997 11,125 — — 70,122 
Provision (benefit) for credit losses - loans(489)(4,434)3,900 29,769 4,004 32,750 
Charge-offs(172)(640)— (84)(11,013)(11,909)
Recoveries101 — — — 2,798 2,899 
Balance at June 30, 2024
$16,943 $70,771 $87,780 $76,032 $9,016 $260,542 

The allowance for credit losses increased from June 30, 2025 to June 30, 2026, primarily due to the provision for credit losses, partially offset by net charge-offs. The provision for credit losses was primarily driven by loan growth and an increase in specific reserves on individually assessed loans, partially offset by an improved macroeconomic outlook reflected in the forecast scenarios used in the allowance for credit losses model. For year ended June 30, 2026, the increase in the allowance for credit losses was also due to the Verdant acquisition, which included the acquisition of PCD assets and resulted in a post-acquisition provision for credit losses on the loans and leases acquired.
Loan products within each portfolio contain varying collateral types which impact the estimate of the loss given default utilized in the calculation of the allowance. For further discussion of the model method of estimating expected lifetime credit losses see Note 1—“Organizations and Summary of Significant Accounting Policies.”
The following tables present a summary of the activity in the unfunded loan commitment liabilities for the periods indicated:
For the Fiscal Year Ended June 30,
(Dollars in thousands)202620252024
BALANCE—beginning of year$10,891 $10,223 $10,473 
Provision (Benefit)8,386 668 (250)
BALANCE—end of year$19,277 $10,891 $10,223 
The following table presents LTVs for the Company’s real estate loans outstanding as of June 30, 2026:
Total Real Estate LoansSingle Family - Mortgage & WarehouseMultifamily and Commercial MortgageCommercial Real Estate
Weighted-Average LTV50 %55 %51 %47 %
Median LTV50 %53 %42 %46 %
Credit Quality Disclosure. The following tables provide the composition of loans that are performing and nonaccrual by portfolio segment:
June 30, 2026
(Dollars in thousands)Single Family-Mortgage & WarehouseMultifamily and Commercial MortgageCommercial Real EstateCommercial & Industrial - Non-REAuto & ConsumerTotal
Performing$4,523,065 $2,479,258 $8,853,128 $9,418,504 $664,952 $25,938,907 
Nonaccrual58,707 5,032 14,723 77,143 1,525 157,130 
Total$4,581,772 $2,484,290 $8,867,851 $9,495,647 $666,477 $26,096,037 
Nonaccrual loans to total loans0.60 %
June 30, 2025
(Dollars in thousands)Single Family-Mortgage & WarehouseMultifamily and Commercial MortgageCommercial Real EstateCommercial & Industrial - Non-REAuto & ConsumerTotal
Performing$4,351,082 $2,907,702 $6,907,964 $6,733,693 $480,870 $21,381,311 
Nonaccrual44,196 33,037 29,223 61,804 $2,126 170,386 
Total$4,395,278 $2,940,739 $6,937,187 $6,795,497 $482,996 $21,551,697 
Nonaccrual loans to total loans0.79 %
There were no nonaccrual loans without an allowance for credit losses as of June 30, 2026 and 2025. There was no interest income recognized on nonaccrual loans in the fiscal year ended June 30, 2026 and 2025.
Credit Quality Indicators. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends. In addition to the borrower’s primary source of repayment, in its risk rating process the Company considers all available sources of repayment, including obligor guaranties and liquidations of pledged collateral, where individually or together such sources would fully repay the loan on a timely basis. The Company analyzes loans individually by classifying the loans based on credit risk. The Company uses the following internally-defined risk ratings:
Pass. Loans where repayment in full is expected through any of the borrower’s sources of repayment.
Special Mention. Loans where any credit risk is not considered significant yet require management’s attention given certain currently identified characteristics of the borrower, collateral securing the loan and the obligor’s net worth and paying capacity. If the identified credit risks are not adequately monitored or mitigated, the loan may weaken and the Company’s credit position with respect to the loan may deteriorate in the future.
Substandard. Loans where currently identified characteristics of the borrower, collateral securing the loan and the obligor’s net worth and paying capacity, taken together, could jeopardize the repayment of the debt. A loan not fully supported by at least one available source of repayment and involves a distinct possibility that the Company will sustain some loss in that loan if the weakness is not cured. A loan supported by a guaranty, collateral sufficient to incentivize a sale or refinance, or cash flow that is sufficient for timely repayment in full will not be classified as substandard even if the loan has a well-defined weakness in other sources of repayment.
Doubtful. Loans reflecting the same characteristics as those classified as substandard, but for which repayment in full in accordance with the contractual terms is currently considered highly unlikely.
The Company reviews and grades loans following a continuous review process, featuring coverage of all loan types and business lines at least quarterly. Continuous reviewing provides more effective risk monitoring because it immediately tests for potential impacts caused by changes in personnel, policy, products or underwriting standards.
The following tables present the composition of loans by portfolio segment, fiscal year of origination and credit quality indicator, and the amount of gross charge-offs:
June 30, 2026
Loans Held for Investment by Fiscal Year of Origination
Revolving Loans Total
(Dollars in thousands)20262025202420232022Prior
Single Family-Mortgage & Warehouse
Pass$968,427 $419,519 $164,739 $360,370 $912,712 $834,773 $791,650 $4,452,190 
Special Mention— 2,130 — 2,475 19,317 27,748 1,132 52,802 
Substandard— 18,331 1,015 539 19,797 37,098 — 76,780 
Doubtful— — — — — — — — 
Total968,427 439,980 165,754 363,384 951,826 899,619 792,782 4,581,772 
Gross charge-offs— — 65 — 48 391 — 504 
Multifamily and Commercial Mortgage
Pass219,953 74,875 17,667 514,228 728,167 890,900 2,445,790 
Special Mention3,708 — — 2,201 9,033 — — 14,942 
Substandard— — — 2,256 18,428 2,874 — 23,558 
Doubtful— — — — — — — — 
Total223,661 74,875 17,667 518,685 755,628 893,774 — 2,484,290 
Gross charge-offs
— — — 423 — 4,902 — 5,325 
Commercial Real Estate
Pass3,236,196 2,751,766 906,348 610,616 11,170 28,958 1,261,496 8,806,550 
Special Mention— — — — 27,128 — — 27,128 
Substandard3,660 — — 1,185 — 14,723 14,605 34,173 
Doubtful— — — — — — — — 
Total3,239,856 2,751,766 906,348 611,801 38,298 43,681 1,276,101 8,867,851 
Gross charge-offs— — — — — 4 — 4 
Commercial & Industrial - Non-RE
Pass2,614,903 1,171,686 804,879 190,672 139,711 48,857 4,171,779 9,142,487 
Special Mention11,324 22,611 27,564 2,273 614 14,106 8,616 87,108 
Substandard9,044 12,485 134,367 12,537 74,218 756 22,051 265,458 
Doubtful532 — — — — 62 — 594 
Total2,635,803 1,206,782 966,810 205,482 214,543 63,781 4,202,446 9,495,647 
Gross charge-offs1,680 3,346 2,997 796 24,795 990 — 34,604 
Auto & Consumer
Pass360,417 154,924 32,374 42,577 59,571 14,465 — 664,328 
Special Mention110 170 18 78 199 20 — 595 
Substandard538 406 27 98 349 136 — 1,554 
Doubtful— — — — — — — — 
Total361,065 155,500 32,419 42,753 60,119 14,621 — 666,477 
Gross charge-offs1,096 3,200 421 1,600 1,342 1,057 — 8,716 
Total
Pass7,399,896 4,572,770 1,926,007 1,718,463 1,851,331 1,817,953 6,224,925 25,511,345 
Special Mention15,142 24,911 27,582 7,027 56,291 41,874 9,748 182,575 
Substandard13,242 31,222 135,409 16,615 112,792 55,587 36,656 401,523 
Doubtful532 — — — — 62 — 594 
Total$7,428,812 $4,628,903 $2,088,998 $1,742,105 $2,020,414 $1,915,476 $6,271,329 $26,096,037 
As a % of total gross loans28.5%17.8%8.0%6.7%7.7%7.3%24.0%100.0%
Total gross charge-offs
$2,776 $6,546 $3,483 $2,819 $26,185 $7,344 $— $49,153 
June 30, 2025
Loans Held for Investment by Fiscal Year of Origination
Revolving Loans Total
(Dollars in thousands)20252024202320222021Prior
Single Family-Mortgage & Warehouse
Pass$750,357 $269,165 $451,330 $1,067,144 $434,352 $715,620 $599,406 $4,287,374 
Special Mention2,129 1,080 5,362 3,140 5,254 26,604 9,967 53,536 
Substandard— — — 7,255 6,720 40,393 — 54,368 
Doubtful— — — — — — — — 
Total752,486 270,245 456,692 1,077,539 446,326 782,617 609,373 4,395,278 
Year-to-date gross charge-offs— 340 — 400 — 2,296 — 3,036 
Multifamily and Commercial Mortgage
Pass75,755 22,435 632,120 859,189 422,683 842,787 1,450 2,856,419 
Special Mention— — 3,400 — 7,255 18,272 — 28,927 
Substandard— — 8,530 13,199 — 33,664 — 55,393 
Doubtful— — — — — — — — 
Total75,755 22,435 644,050 872,388 429,938 894,723 1,450 2,940,739 
Year-to-date gross charge-offs— 375 86 5 — 8,099 — 8,565 
Commercial Real Estate
Pass3,135,530 1,342,372 679,875 575,642 152,581 47,214 960,145 6,893,359 
Special Mention— — — — — — — 
Substandard— — — 9,500 5,000 14,723 14,605 43,828 
Doubtful— — — — — — — — 
Total3,135,530 1,342,372 679,875 585,142 157,581 61,937 974,750 6,937,187 
Year-to-date gross charge-offs— — — 165 — — — 165 
Commercial & Industrial - Non-RE
Pass1,231,118 809,347 310,043 120,385 38,397 28,311 3,928,415 6,466,016 
Special Mention— 45,120 — — 93 — 10,023 55,236 
Substandard3,747 10,719 9,244 135,778 2,486 2,989 99,282 264,245 
Doubtful— — — 10,000 — — — 10,000 
Total1,234,865 865,186 319,287 266,163 40,976 31,300 4,037,720 6,795,497 
Year-to-date gross charge-offs— — 883 — 5,942 — 2,000 8,825 
Auto & Consumer
Pass213,318 47,587 75,120 109,228 23,084 11,448 — 479,785 
Special Mention295 52 186 270 60 10 — 873 
Substandard154 48 365 807 549 415 — 2,338 
Doubtful— — — — — — — — 
Total213,767 47,687 75,671 110,305 23,693 11,873 — 482,996 
Year-to-date gross charge-offs589 813 2,363 3,340 797 1,813 — 9,715 
Total
Pass5,406,078 2,490,906 2,148,488 2,731,588 1,071,097 1,645,380 5,489,416 20,982,953 
Special Mention2,424 46,252 8,948 3,410 12,662 44,886 19,990 138,572 
Substandard3,901 10,767 18,139 166,539 14,755 92,184 113,887 420,172 
Doubtful— — — 10,000 — — — 10,000 
Total$5,412,403 $2,547,925 $2,175,575 $2,911,537 $1,098,514 $1,782,450 $5,623,293 $21,551,697 
As a % of total gross loans25.1%11.9%10.1%13.5%5.1%8.3%26.1%100.0%
Total year-to-date gross charge-offs589 1,528 3,332 3,910 6,739 12,208 2,000 30,306 
The following tables provide the aging of loans by portfolio segment:
June 30, 2026
(Dollars in thousands)Current30-59 Days60-89 Days90+ DaysTotal
Single Family-Mortgage & Warehouse$4,517,180 $4,142 $2,755 $57,695 $4,581,772 
Multifamily and Commercial Mortgage2,476,985 3,407 — 3,898 2,484,290 
Commercial Real Estate8,853,128 — — 14,723 8,867,851 
Commercial & Industrial - Non-RE9,347,305 30,302 35,723 82,317 9,495,647 
Auto & Consumer
660,928 4,023 667 859 666,477 
Total$25,855,526 $41,874 $39,145 $159,492 $26,096,037 
As a % of total gross loans99.08 %0.16 %0.15 %0.61 %100.00 %
June 30, 2025
(Dollars in thousands)Current30-59 Days60-89 Days90+ DaysTotal
Single Family-Mortgage & Warehouse$4,322,681 $13,302 $16,395 $42,900 $4,395,278 
Multifamily and Commercial Mortgage2,870,972 36,649 549 32,569 2,940,739 
Commercial Real Estate6,900,904 — 7,060 29,223 6,937,187 
Commercial & Industrial - Non-RE
6,783,440 — — 12,057 6,795,497 
Auto & Consumer477,694 3,025 920 1,357 482,996 
Total$21,355,691 $52,976 $24,924 $118,106 $21,551,697 
As a % of total gross loans99.09 %0.25 %0.12 %0.55 %100.00 %
Loans reaching 90+ days past due are generally placed on nonaccrual. As of June 30, 2026, there were no loans over 90 days past due and still accruing interest. As of June 30, 2025 no loans were over 90 days past due and still accruing interest.
Single family mortgage loans in process of foreclosure were $47.1 million and $30.4 million as of June 30, 2026 and 2025, respectively.
Credit Risk Concentration
Concentrations of credit risk arise when a number of borrowers are engaged in similar business activities in the same geographic region, or when they have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions.
Concentrations of 10% or more existed in the Single Family, Multifamily and CRE loan categories at June 30, 2026 and June 30, 2025.
At June 30, 2026, California accounted for 67.3% of loans in the Single Family loan category. California accounted for 46.8% and New York accounted for 38.6% of loans in the Multifamily loan category. New York accounted for 52.7% of loans in the CRE loan category.
At June 30, 2025, California accounted for 70.5% and New York accounted for 8.6% of loans in the Single Family loan category. California accounted for 48.5% and New York accounted for 37.1% of loans in the Multifamily loan category. New York accounted for 36.8%, Florida accounted for 19.5% and Texas accounted for 10.2% of loans in the CRE loan category.
Related Party Loans
In the ordinary course of business, the Company has granted related party loans collateralized by real property to certain executive officers, directors and their affiliates, which is summarized in the following table:
At June 30,
(Dollars in thousands)20262025
Outstanding loan balance$28,272 $29,146 
Direct Financing Leases and Sales-Type Leases. The Company acts as a lessor in certain direct financing leases and sales-type leases, which are included in Commercial & Industrial - Non-RE in the preceding tables. The following table presents the aggregate interest income earned under direct financing and sales-type leases for the periods presented. For additional information on these leases, see Note 1—“Organizations and Summary of Significant Accounting Policies.”
For the fiscal year ended June 30,
(Dollars in thousands)202620252024
Lease interest income111,25514,46910,619
The following table presents the future undiscounted cash flows to be received over the next five fiscal years and the total thereafter and a reconciliation of direct financing and sales-type leases to the amount reflected in the in the Company’s Consolidated Balance Sheet.
At June 30,
(Dollars in thousands)2026
Undiscounted cash flows to be received in fiscal year:
2027$309,168 
2028233,249 
2029163,107 
203092,056 
203166,874 
Thereafter82,927 
Total undiscounted cash flows to be received$947,381 
Unearned income(134,011)
Estimated residual value and other19,023 
Total investment in direct financing and sales-type leases$832,393