v3.26.1
DERIVATIVES
 12 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES DERIVATIVES
The following table presents the fair values and notional amounts of the Company’s derivative instruments. While the notional amounts give an indication of the volume of the Company’s derivatives activity, the notional amounts significantly exceed, in the Company’s view, the possible losses that could arise from such transactions. For most derivative contracts, the notional amount is not exchanged, rather it is a reference amount used to calculate payments.
June 30, 2026
June 30, 2025
Fair ValueFair Value
(Dollars in thousands)Notional AmountDerivative AssetsDerivative LiabilitiesNotional AmountDerivative AssetsDerivative Liabilities
Derivatives designated as hedging instruments
Interest rate contracts$750,000 $14,731 $— $400,000 $1,950 $— 
Derivatives not designated as hedging instruments
Interest rate contracts1
2,448,757 2,087 52,287 2,761,021 15,782 68,427 
Foreign exchange contracts131,812 123 222 9,570 2 71 
Total derivatives$3,330,569 $16,941 $52,509 $3,170,591 $17,734 $68,498 
1 Derivative Assets are presented net of $52.3 million and $55.4 million of variation margin on centrally-cleared derivatives as of June 30, 2026 and June 30, 2025, respectively.
Derivatives designated as fair value hedging instruments
The following table presents pre-tax fair value gains/(losses) on derivative instruments used in fair value hedge accounting relationships and the change in fair value of the hedged item. For additional information on the Company’s designated fair value hedges, see Note 1 —“Organizations and Summary of Significant Accounting Policies.”

For the Year Ended June 30,
(Dollars in thousands)202620252024
Change in fair value of derivative instruments$14,439 $— $— 
Change in fair value of hedged items$(14,439)$— $— 
The following table presents the carrying amount of available-for-sale securities in designated fair value hedge relationships and the cumulative amount of fair value hedge basis adjustments.

As of June 30, 2026
As of June 30, 2025
(Dollars in thousands)Amortized Cost
Cumulative Amount of Basis Adjustments1
Amortized Cost
Cumulative Amount of Basis Adjustments1
Available-for-sale securities—United States Treasury securities$732,118 $(14,439)$— $— 
1 The cumulative amount of basis adjustments relates to active fair value hedges.
Derivatives designated as cash flow hedging instruments
The following table presents pre-tax gains/(losses) on derivative instruments used in cash flow hedge accounting relationships.
For the Fiscal Year Ended June 30,
(Dollars in thousands)202620252024
Amounts recorded in OCI$10,417 $5,448 $— 
Amounts reclassified from AOCI to income(5,662)(3,749)— 
Total change in OCI for period$4,755 $1,699 $— 
The Company did not experience any forecasted transactions that failed to occur during the fiscal years ended June 30, 2026, 2025 or 2024. There are no amounts excluded from the assessment of hedge effectiveness.
As of June 30, 2026, the Company no longer has any active cash flow hedge relationships and expects that approximately $5.2 million of pre-tax net gains related to its terminated cash flow hedges recorded in AOCI will be recognized in income over the next 12 months, and an additional $1.3 million of pre-tax net gains thereafter. For the terminated cash flow hedges, the maximum length of time over which forecasted transactions will be recognized is approximately 1.3 years.
Derivatives not designated as hedging instruments
The following table presents the gains (losses) related to the Company’s derivative instrument activity recognized in the Consolidated Statements of Income:
For the Fiscal Year Ended June 30,
(Dollars in thousands)202620252024
Interest rate contracts
Banking and service fees$(2,190)$(2,463)$470 
Mortgage banking and servicing rights income$406 $(431)$782 
Foreign exchange contracts
Banking and service fees$(30)(92)$—