INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2026

The provision for income taxes is as follows:


	Fiscal Year Ended June 30,
(Dollars in thousands)	2026		2025		2024
Current:
Federal	$	18,024	$	130,062	$	98,814
State	45,065		78,381		53,525

	63,089		208,443		152,339
Deferred:
Federal	99,192		(25,702)		17,501
State	(5,983)		(2,254)		15,633
	93,209		(27,956)		33,134
Total1	$	156,298	$	180,487	$	185,473

1 There was no foreign income before income taxes or foreign income taxes for the fiscal years ended June 30, 2026, 2025 and 2024.

Schedule of Effective Income Tax Rate Reconciliation

The differences between the statutory federal income tax rates and amounts and the effective tax rates are summarized as follows:


	Fiscal Year Ended June 30,
	2026				2025				2024
(Dollars in thousands)	Rate		Amount		Rate		Amount		Rate		Amount
Statutory federal tax	21.00	%	$	135,801	21.00	%	$	128,813	21.00	%	$	133,451
Increase (decrease) resulting from:
State and local income tax-net of federal benefit1	4.30	%	27,794		8.90	%	54,568		8.19	%	52,050

Effect of cross-border tax laws	(0.01)	%	(45)		(0.01)	%	(48)		(0.02)	%	(118)

Tax credits	(1.23)	%	(7,964)		(0.46)	%	(2,803)		(0.62)	%	(3,930)


Nontaxable or nondeductible items	0.17	%	1,118		0.06	%	342		0.06	%	409
Changes in unrecognized tax benefits	0.51	%	3,325		1.29	%	7,931		0.91	%	5,776
Other adjustments	(0.57)	%	(3,731)		(1.36)	%	(8,316)		(0.33)	%	(2,165)
Effective tax	24.17	%	$	156,298	29.42	%	$	180,487	29.19	%	$	185,473

1 State and local jurisdictions that make up the majority (greater than 50 percent) of the tax effect in this category include California, New York State, and New York City for 2026, 2025, and 2024.

Schedule of Net Deferred Tax Asset

The components of the net deferred tax asset are as follows:


	At June 30,
(Dollars in thousands)	2026		2025
Deferred tax assets:
Allowance for credit losses	$	110,648	$	91,922
Lease liability	15,896		16,650
Accrued compensation	2,051		3,306
Stock-based compensation expense	8,579		8,134
Litigation accrual	8,061		—
Nonaccrual loan interest income	4,777		8,419

Depreciation and amortization	—		5,090
Net operating loss carryforward	897		1,021
State taxes	—		5,967
Securities impaired	236		236
Other deferred tax assets	—		37
Total deferred tax assets	$	151,145	$	140,782
Valuation allowance	(74)		(70)
Deferred tax asset, net of valuation allowance	$	151,071	$	140,712

Deferred tax liabilities:
Basis difference in acquired loans	(26,789)		(43,773)
Operating lease right-of-use asset	(14,335)		(15,002)
Depreciation and amortization	(26,003)		—
State taxes	(909)		—
Other assets—prepaids	(5,097)		(2,532)

Lease basis difference	(91,709)		—
FHLB stock dividend	(737)		(738)
Unrealized net gains on securities	(1,539)		(160)
Other deferred tax liabilities	(17)		—
Total deferred tax liabilities	$	(167,135)	$	(62,205)
Net deferred tax asset (liability), net of valuation allowance1	$	(16,064)	$	78,507

1 Net deferred tax asset, net of valuation allowance, is included in “Other Assets” in the Consolidated Balance Sheets, and net deferred tax liability is included in "Accounts payable and other liabilities" in the Consolidated Balance Sheets.

Schedule of Unrecognized Tax Benefits

The reconciliation of the gross beginning and ending amount of unrecognized tax positions are as follows:


(Dollars in thousands)	2026		2025
Balance—beginning of period	$	23,612	$	14,089
Additions—current year tax positions	95,564		11,156
Additions—prior year tax positions	3,008		—
Reductions—prior year tax positions	(249)		(1,633)
Total liability for unrecognized tax positions—end of period	$	121,935	$	23,612

Schedule of Income Taxes Paid (Net of Refunds Received)

The following table presents income taxes paid (net of refunds received) by jurisdiction:


	Fiscal Year Ended June 30,
(Dollars in thousands)	2026		2025		2024
Cash paid for federal income taxes	$	50,000	$	84,000	$	126,000
Cash paid for California state income taxes	22,005		28,537		41,903
Cash paid for New York state income taxes	11,337		14,065		9,101
Cash paid for New York City income taxes	12,034		12,440		10,776
Cash paid for other income taxes1	10,077		14,629		12,711
Total cash paid for income taxes	$	105,453	$	153,671	$	200,491

1 The amount of income taxes paid, net of refunds received, during the year does not meet the five percent disaggregation threshold, and the applicable amount is included in this line for disclosure purposes.