Other Assets in the Consolidated Balance Sheets primarily comprises bank-owned life insurance, accrued interest receivable, derivatives, net deferred income tax assets, furniture, equipment and software, right-of-use lease assets, LIHTC investments and other receivables. For additional information on accrued interest receivable, see Note 5 - “Loans & Allowance for Credit Losses,” for additional information on derivatives, see Note 6 - “Derivatives” and for additional information on net deferred income tax assets, see Note 15 - “Income Taxes.” Other components of Other Assets are further detailed below.

Bank-owned Life Insurance. The following table summarizes the activity in the Company’s bank-owned life insurance (“BOLI”). Income related to bank-owned life insurance is included in “Banking and service fees” in the Consolidated Statements of Income.


(Dollars in thousands)	BOLI
Balance as of June 30, 2023	$	163,414


Change in contract value	5,360
Balance as of June 30, 2024	$	168,774
Additions	$	100,000

Change in contract value	9,405
Balance as of June 30, 2025	$	278,179
Additions	—

Change in contract value	11,498
Balance as of June 30, 2026	$	289,677

Furniture, equipment and software (not under operating lease agreements). A summary of the cost and accumulated depreciation for premises, leasehold improvements, furniture, equipment and software (not under operating lease agreements) is as follows:


	At June 30,
(Dollars in thousands)	2026		2025



Software	189,265		159,878
Computer hardware and equipment	98,757		59,995
Furniture and fixtures	13,003		11,923
Leasehold improvements	6,810		6,626
Total	$	307,835	$	238,422
Less accumulated depreciation	(163,039)		(133,341)
Furniture, equipment and software—net	$	144,796	$	105,081

Depreciation and amortization expense related to furniture, equipment and software (not under operating lease agreements) for the fiscal years ended June 30, 2026, 2025 and 2024 was $29.7 million, $21.6 million and $16.2 million, respectively.

Operating Leases-Lessee. The Company leases office space under operating lease agreements scheduled to expire at various dates. Operating lease expense for the fiscal years ended June 30, 2026, 2025 and 2024 was $12.8 million, $11.3 million, and $12.4 million, respectively.


	At June 30,
(Dollars in thousands)	2026			2025
Right-of-use assets	$	50,781		$	53,415
Lease liabilities	$	56,168		59,116
Weighted-average remaining lease term	3.83 years			4.73 years
Weighted-average discount rate	3.36		%	3.20		%


	For the Fiscal Year Ended June 30,
(Dollars in thousands)	2026		2025		2024
Cash paid for amounts included in the measurement of lease liabilities for operating leases—operating cash flows	$	14,741	$	13,318	$	11,821


(Dollars in thousands)	June 30, 2026
Within one year	$	15,986
After one year and within two years	14,729
After two years and within three years	13,223
After three years and within four years	13,044
After four years within five years	2,168
After five years	1,012
Total lease payments	60,162
Less: amount representing interest	(3,994)
Total lease liability	$	56,168

Operating Leases—Lessor. The Company operates as a lessor under operating lease agreements either as a lessor of various types of equipment or as a lessor of commercial office space in the multi-building commercial office complex it owns. For additional information on the Company as a lessor under operating lease agreements, see Note 1—“Organizations and Summary of Significant Accounting Policies.”

A summary of the cost and accumulated depreciation and amortization for premises, building improvements and equipment (under operating lease agreements) is as follows:


	At June 30,
(Dollars in thousands)	2026		2025
Land (non-depreciable)	$	29,813	$	—
Building	73,036		—
Other	3,874		—
Equipment	236,090		—



Total	$	342,813	$	—
Less accumulated depreciation	(34,268)		—
Premises, building improvements and equipment—net	$	308,545	$	—

Depreciation expense related to premises, building improvements and equipment (under operating lease agreements) for the fiscal year ended June 30, 2026 was $38.6 million. There was no depreciation expense related to assets under operating lease agreements for the fiscal years ended June 30, 2025 and 2024.

The following table summarizes operating lease income recognized by the Company as lessor under operating lease arrangements for the periods presented. Operating lease income is included in “Banking and service fees” in the Consolidated Statements of Income.

The following table presents the future undiscounted cash flows to be received over the next five fiscal years and the total thereafter where the Company operates as a lessor under operating lease agreements.


	At June 30,
(Dollars in thousands)	2026
Undiscounted cash flows to be received in fiscal year:
2027	$	74,653
2028	61,975
2029	44,456
2030	26,266
2031	9,697
Thereafter	10,687
Total	$	227,734


	For the fiscal year ended June 30,
(Dollars in thousands)	2026		2025
Tax credits recognized	$	7,833	$	5,697
Other tax benefits recognized	3,758		1,385
Amortization	(8,986)		(5,998)
Net benefit (expense) included in income tax expense	2,605		1,084


Other income (loss) included in banking and service fees	29		19
Net benefit (expense) included in the Consolidated Statements of Income	$	2,634	$	1,103


	For the fiscal year ended June 30,
(Dollars in thousands)	2026		2025
LIHTC investments	$	100,889	$	84,875
LIHTC unfunded commitments1	$	53,208	$	47,381

1LIHTC unfunded commitments are included in “Accounts Payable and Other Liabilities” on the Consolidated Balance Sheets.

For the fiscal years ended June 30, 2026 and 2025, there have been no significant modifications or events that resulted in the change in the nature of the LIHTC investments or any changes in the relationship with the underlying project.

For the fiscal years ended June 30, 2026 and 2025, there has been no impairment loss recognized from the forfeiture or ineligibility of income tax credits.