v3.26.3
FAIR VALUE
 3 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE FAIR VALUE
The following tables set forth the Company’s financial assets and liabilities measured at fair value on a recurring basis at September 30, 2026 and June 30, 2026. Assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement:
September 30, 2026
(Dollars in thousands)Significant Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
ASSETS:
Trading securities$402 $— $402 
Available-for-sale securities:
United States Treasury securities$712,025 $— $712,025 
Agency MBS64,466 — 64,466 
Non-Agency MBS— 4,094 4,094 
Total—Available-for-sale securities:$776,491 $4,094 $780,585 
Loans held for sale$14,659 $— $14,659 
Servicing rights$— $26,469 $26,469 
Other assets—Derivative instruments1
$29,751 $— $29,751 
Other assets—Loans held for investment at fair value$— $11,000 $11,000 
Other assets—Equity instruments$— $8,700 $8,700 
LIABILITIES:
Accounts payable and other liabilities—Derivative instruments$75,911 $— $75,911 
Accounts payable and other liabilities—Contingent Consideration$— $29,685 $29,685 
June 30, 2026
(Dollars in thousands)Significant Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
ASSETS:
Trading securities$661 $— $661 
Available-for-sale securities:
United States Treasury securities $732,422 $— $732,422 
Agency MBS66,972 — 66,972 
Non-Agency MBS— 4,273 4,273 
Total—Available-for-sale securities:$799,394 $4,273 $803,667 
Loans held for sale$14,937 $— $14,937 
Servicing rights$— $25,653 $25,653 
Other assets—Derivative instruments1
$16,941 $— $16,941 
Other assets—Loans held for investment at fair value $— $10,000 $10,000 
LIABILITIES:
Accounts payable and other liabilities—Derivative instruments$52,509 $— $52,509 
Accounts payable and other liabilities—Contingent Consideration$— $30,810 $30,810 
1 Other assets - Derivative instruments are presented net of $83.9 million and $52.3 million of variation margin on centrally-cleared derivatives as of September 30, 2026 and June 30, 2026, respectively.

For information on the valuation methodologies used by the Company, see Note 3—“Fair Value” in the 2026 Form 10-K.
The following tables present additional information about assets measured at fair value on a recurring basis and for which the Company has utilized Level 3 inputs to determine fair value. There were no transfers in or out of Level 3 during the three months ended September 30, 2026 and the three months ended September 30, 2025.
For the Three Months Ended
September 30, 2026
(Dollars in thousands)Available-for-sale Securities:
Non-Agency MBS
Servicing Rights1
Other assets—Loans held for investment at fair valueOther assets—Equity instrumentsAccounts payable and other liabilities—Contingent ConsiderationTotal
Opening balance$4,273 $25,653 $10,000 $— $30,810 $70,736 
Total gains or losses for the period:
Included in earnings—Banking and service fees2
— — 1,000 — — 1,000 
Included in earnings—Mortgage banking and servicing rights income— 621 — — — 621 
Included in earnings—General and administrative expense— — — — (1,125)(1,125)
Included in other comprehensive income(89)— — — — (89)
Purchases, retentions, issues, exchanges, sales and settlements:
Purchases/Issuances/Exchanges/Retentions— 195 — 8,700 — 8,895 
Settlements/Sales(90)— — — — (90)
Closing balance$4,094 $26,469 $11,000 $8,700 $29,685 $79,948 
Change in unrealized gains or losses for the period included in earnings for assets and liabilities held at the end of the reporting period$— $621 $1,000 $— $(1,125)$496 
1 Earnings from servicing rights were attributable to: time and payoffs, representing a decrease in servicing rights value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period of $0.7 million for the three months ended September 30, 2026 and an increase in servicing rights value resulting from market-driven changes in interest rates of $1.3 million for the three months ended September 30, 2026. Additions to servicing rights were related to purchases and servicing rights retained upon sale of loans held for sale.
2 The amount included in earnings for the three months ended September 30, 2026, is considered attributable to instrument-specific credit risk.
For the Three Months Ended
September 30, 2025
(Dollars in thousands)Available-for-sale Securities:
Non-Agency MBS
Servicing Rights1
Accounts payable and other liabilities—Contingent ConsiderationTotal
Opening Balance$15,569 $27,218 $— $42,787 
Total gains or losses for the period:
Included in earnings—Mortgage banking and servicing rights income— (1,189)— (1,189)
Included in other comprehensive income116 — — 116 
Purchases, retentions, issues, exchanges, sales and settlements:
Purchases/Issuances/Exchanges/Retentions— 214 30,810 31,024 
Settlements/Sales(4,493)— — (4,493)
Closing balance$11,192 $26,243 $30,810 $68,245 
Change in unrealized gains or losses for the period included in earnings for assets and liabilities held at the end of the reporting period$— $(1,189)$— $(1,189)
1 Earnings from servicing rights were attributable to: time and payoffs, representing a decrease in servicing rights value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period of $0.4 million for the three months ended September 30, 2025 and a decrease in servicing rights value resulting from market-driven changes in interest rates of $0.8 million for the three months ended September 30, 2025. Additions to servicing rights were related to purchases and servicing rights retained upon sale of loans held for sale.
The table below presents the quantitative information about Level 3 fair value measurements:
September 30, 2026
(Dollars in thousands)Fair ValueValuation TechniqueUnobservable Input
Range (Weighted Average)1
Available-for-sale securities: Non-Agency MBS$4,094 Discounted Cash FlowProjected Constant Prepayment Rate,
Projected Constant Default Rate,
Projected Loss Severity,
Discount Rate over SOFR Swaps,
Credit Enhancement
2.5 to 8.3% (3.8%)
1.5 to 1.9% (1.5%)
40.0 to 68.9% (61.2%)
2.5 to 4.5% (3.2%)
0.0 to 78.0% (13.1%)
Servicing Rights$26,469 Discounted Cash FlowProjected Constant Prepayment Rate,
Life (in years),
Discount Rate
2.5 to 32.9% (10.0%)
2.5 to 14.2 (8.8)
9.5 to 11.2% (9.7%)
Other assets—Loans held for investment at fair value$11,000 Discounted Cash FlowDiscount rate,
Probability,
Recovery Rate
9.2 to 9.3% (9.2%)
40.0 to 60.0% (41.3%)
10.0 to 25.0% (16.3%)

Other assets—Equity instruments$8,700 Discounted Cash FlowDiscount Rate,
Terminal Growth Rate
11.5 to 13.0% (12.8%)
0.9 to 2.2% (2.0%)
Accounts payable and other liabilities—Contingent Consideration$29,685 Nelson-Siegel Stochastic ModelMonthly Asset Growth,
Credit Spread
-7.4 to 14.5% (3.6%)
2.9 to 2.9% (2.9%)
June 30, 2026
(Dollars in thousands)Fair ValueValuation TechniqueUnobservable Input
Range (Weighted Average)1
Available-for-sale securities: Non-Agency MBS$4,273 Discounted Cash FlowProjected Constant Prepayment Rate,
Projected Constant Default Rate,
Projected Loss Severity,
Discount Rate over SOFR Swaps,
Credit Enhancement
2.5 to 15.7% (4.0%)
1.5 to 1.9% (1.5%)
40.0 to 68.9% (61.0%)
2.5 to 4.7% (3.2%)
0.0 to 78.2% (13.2%)
Servicing Rights$25,653 Discounted Cash FlowProjected Constant Prepayment Rate,
Life (in years),
Discount Rate
4.1 to 30.7% (10.2%)
2.7 to 14.2 (8.6)
9.5 to 11.2% (9.8%)
Other assets—Loans held for investment at fair value$10,000 Discounted Cash FlowDiscount Rate,
Terminal Growth Rate,
EBITDA Multiple
28.0 to 28.0% (28.0%)
3.0 to 3.0% (3.0%)
1.0 times to 1.0 times (1.0 times)
Accounts payable and other liabilities—Contingent Consideration$30,810 Nelson-Siegel Stochastic ModelMonthly Asset Growth,
Credit Spread
-7.4 to 14.5% (3.6%)
2.9 to 2.9% (2.9%)
1 The weighted averages for Available-for-sale securities: Non-Agency MBS, Other assets—Loans held for investment at fair value and Other assets—Equity instruments are based on the relative fair value, for Servicing Rights are based on the relative unpaid principal of the loans being serviced and for Accounts payable and other liabilities—Contingent Consideration are based on annual projected consideration.
For non-agency mortgage-backed securities, a significant increase (decrease) in default rate, loss severity (potentially offset by the level of credit enhancement) or discount rate in isolation would result in a significantly lower (higher) fair value measurement, while a significant increase in the voluntary prepayment rate would result in a significant increase in fair value if the security is valued below par value, or a significant decrease in fair value if the security is valued above par value. Generally, a change in the assumptions used for the default rate is accompanied by a directionally opposite change in the assumption used for the voluntary prepayment rate.
For servicing rights, significant increases in the voluntary prepayment rate or discount rate in isolation would result in a significantly lower fair value measurement, while a significant increase in expected life in isolation would result in a significantly higher fair value measurement. Generally, a change in the voluntary prepayment rate is accompanied by a directionally opposite change in expected life.
For loans held for investment at fair value, a significant increase (decrease) to the growth rate and EBITDA multiple in isolation would result in significantly higher (lower) fair value measurement, and a significant increase (decrease) in the discount rate in isolation would result in a significantly lower (higher) fair value measurement. In addition, a significant increase (decrease) in the recovery rate in isolation would result in a significantly higher (lower) fair value measurement. Changes in the probability of resolution outcomes are generally accompanied by changes in the other valuation inputs, which may move in either direction.
For equity instruments, a significant increase (decrease) in the terminal growth rate in isolation would result in a significantly higher (lower) fair value measurement, and a significant increase (decrease) in the discount rate in isolation would result in a significantly lower (higher) fair value measurement.
For the Contingent Consideration, a significant increase (decrease) in the asset growth in isolation would result in a significantly higher (lower) fair value measurement, and a significant increase (decrease) in the credit spread in isolation would result in a significantly lower (higher) fair value measurement.
The aggregate fair value of loans held for sale, carried at fair value, and the contractual balance (including accrued interest) were:
(Dollars in thousands)September 30, 2026June 30, 2026
Aggregate fair value$14,659 $14,937 
Unpaid principal balance$14,327 $14,476 
The total interest income and amount of gains and losses from changes in fair value included in earnings for loans held for sale, carried at fair value, were:
For the Three Months Ended September 30,
(Dollars in thousands)20262025
Interest income$169 $181 
Change in fair value(203)540 
Total $(34)$721 
The Company measures certain loans held for investment at fair value. As of September 30, 2026, and June 30, 2026, the aggregate fair value of loans held for investment carried at fair value was $11.0 million and $10.0 million, respectively, and the related unpaid principal balance was $133.7 million and $133.4 million, respectively. As of September 30, 2026 and June 30, 2026, the loans held for investment at fair value are more than 90 days past due and on nonaccrual status. The Company did not recognize any interest income on loans held for investment at fair value during the three months ended September 30, 2026 and 2025.
Fair Value of Financial Instruments
Carrying amounts and estimated fair values of financial instruments at September 30, 2026 and June 30, 2026 were:
September 30, 2026
Fair Value
(Dollars in thousands)Carrying
Amount		Level 1Level 2Level 3Total Fair Value
Financial assets:
Cash, cash equivalents and restricted cash
$1,876,623 $1,876,623 $— $— $1,876,623 
Trading securities
402 — 402 — 402 
Available-for-sale securities
780,585 — 776,491 4,094 780,585 
Stock of regulatory agencies36,293 — 36,293 — 36,293 
Loans held for sale, at fair value14,659 — 14,659 — 14,659 
Loans held for sale, at lower of cost or fair value3,298 — — 3,331 3,331 
Loans held for investment—net25,912,024 — — 25,962,440 25,962,440 
Securities borrowed190,831 — — 189,097 189,097 
Customer, broker-dealer and clearing receivables320,416 — — 318,602 318,602 
Servicing rights
26,469 — — 26,469 26,469 
Other assets - derivative instruments1
29,751 — 29,751 — 29,751 
Other assets - loans held for investment at fair value11,000 — — 11,000 11,000 
Other assets - equity instruments2
8,700 — — 8,700 8,700 
Financial liabilities:
Total deposits25,413,197 — 25,037,438 — 25,037,438 
Advances from the Federal Home Loan Bank60,000 — 55,660 — 55,660 
Secured financings
511,647 — 501,205 — 501,205 
Borrowings, subordinated notes and debentures343,166 — 335,754 — 335,754 
Securities loaned238,502 — — 236,988 236,988 
Customer, broker-dealer and clearing payables386,792 — — 386,792 386,792 
Accounts payable and other liabilities - derivative instruments
75,911 — 75,911 — 75,911 
Accounts payable and other liabilities - Contingent Consideration29,685 — — 29,685 29,685 
June 30, 2026
Fair Value
(Dollars in thousands)Carrying
Amount		Level 1Level 2Level 3Total Fair Value
Financial assets:
Cash, cash equivalents and restricted cash
$1,307,802 $1,307,802 $— $— $1,307,802 
Trading securities
661 — 661 — 661 
Available-for-sale securities
803,667 — 799,394 4,273 803,667 
Stock of regulatory agencies
36,166 — 36,166 — 36,166 
Loans held for sale, at fair value14,937 — 14,937 — 14,937 
Loans held for sale, at lower of cost or fair value5,129 — — 5,303 5,303 
Loans held for investment—net25,595,403 — — 25,789,184 25,789,184 
Securities borrowed163,462 — — 161,870 161,870 
Customer, broker-dealer and clearing receivables347,944 — — 345,800 345,800 
Servicing rights
25,653 — — 25,653 25,653 
Other assets - derivative instruments1
16,941 — 16,941 — 16,941 
Other assets - loans held for investment at fair value10,000 — — 10,000 10,000 
Financial liabilities:
Total deposits24,565,392 — 24,427,010 — 24,427,010 
Advances from the Federal Home Loan Bank154,000 — 150,677 — 150,677 
Secured financings576,680 — 568,019 — 568,019 
Borrowings, subordinated notes and debentures342,915 — 343,891 — 343,891 
Securities loaned194,729 — — 193,717 193,717 
Customer, broker-dealer and clearing payables365,792 — — 365,792 365,792 
Accounts payable and other liabilities - derivative instruments
52,509 — 52,509 — 52,509 
Accounts payable and other liabilities - Contingent Consideration30,810 — — 30,810 30,810 
1 Other assets - derivative assets are presented net of $83.9 million and $52.3 million of variation margin on centrally-cleared derivatives as of September 30, 2026 and June 30, 2026, respectively.
2 Other assets—Equity instruments excludes certain investments that are measured based on net asset value (“NAV”) per share, which are not classified in the fair value hierarchy. For additional information on the Company’s commitments to contribute capital to its investments, see Note 10—“Commitments and Contingencies.”
The carrying amount represents the estimated fair value for cash, cash equivalents and restricted cash, stock of regulatory agencies, interest-bearing deposits, accrued interest receivable and payable, demand deposits, short-term debt, and variable rate loans or deposits that reprice frequently and fully. For fixed rate loans, deposits, borrowings or subordinated debt and for variable rate loans, deposits, borrowings, secured financings, or subordinated debt with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk. A discussion of the methods of valuing trading securities, available-for-sale securities, loans held for sale and derivatives can be found in Note 3—“Fair Value” in the 2026 Form 10-K. The fair value of off-balance sheet items is not considered material.