v3.26.3
LOANS & ALLOWANCE FOR CREDIT LOSSES
 3 Months Ended
Sep. 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 (“Non-RE”) and Auto & Consumer. For further detail of the segments of the Company’s loan portfolio, see Note 1—“Organizations and Summary of Significant Accounting Policies” in the 2026 Form 10-K.
The following table sets forth the composition of the loan portfolio:
(Dollars in thousands)September 30, 2026June 30, 2026
Single Family - Mortgage & Warehouse$4,446,687 $4,581,772 
Multifamily and Commercial Mortgage
2,373,026 2,484,290 
Commercial Real Estate
9,657,946 8,867,851 
Commercial & Industrial - Non-RE9,160,723 9,495,647 
Auto & Consumer720,079 666,477 
Total gross loans26,358,461 26,096,037 
Allowance for credit losses - loans(304,361)(347,375)
Unaccreted premiums (discounts) and loan fees(142,076)(153,259)
Total net loans$25,912,024 $25,595,403 

Accrued interest receivable on loans held for investment totaled $135.5 million and $135.6 million as of September 30, 2026 and June 30, 2026, respectively.
At September 30, 2026 and June 30, 2026, the Company pledged certain loans totaling $3,635.8 million and $3,761.6 million, respectively, to the Federal Home Loan Bank (“FHLB”) and $11,553.3 million and $11,115.1 million, respectively, to the Federal Reserve Bank of San Francisco (“FRBSF”).
The following table presents loan-to-value (“LTV”) for the Company’s real estate loans outstanding as of September 30, 2026:
Total Real Estate LoansSingle Family - Mortgage & WarehouseMultifamily and Commercial MortgageCommercial Real Estate
Weighted-Average LTV50 %55 %50 %48 %
Median LTV50 %52 %44 %46 %
The following table presents the components of the provision for credit losses:
For the Three Months Ended September 30,
(Dollars in thousands)
20262025
Provision for credit losses - loans
$27,687 $15,255 
Provision for credit losses - unfunded lending commitments
(3,187)2,000 
    Total provision for credit losses
$24,500 $17,255 

The following tables summarize activity in the allowance for credit losses - loans by portfolio segment:
For the Three Months Ended September 30, 2026
(Dollars in thousands)Single Family-Mortgage & WarehouseMultifamily and Commercial MortgageCommercial Real EstateCommercial & Industrial - Non-REAuto & ConsumerTotal
Balance at July 1, 2026
$7,356 $21,104 $121,552 $177,084 $20,279 $347,375 
Provision (benefit) for credit losses - loans920 (769)(3,861)28,031 3,366 27,687 
Charge-offs(1,390)— — (70,290)(2,226)(73,906)
Recoveries19 103 — 2,259 824 3,205 
Balance at September 30, 2026
$6,905 $20,438 $117,691 $137,084 $22,243 $304,361 
For the Three Months Ended September 30, 2025
(Dollars in thousands)Single Family-Mortgage & WarehouseMultifamily and Commercial MortgageCommercial Real EstateCommercial & Industrial - Non-REAuto & ConsumerTotal
Balance at July 1, 2025
$12,109 $26,238 $113,804 $121,641 $16,257 $290,049 
Allowance for credit losses at acquisition of PCD loans— — — 7,795 — 7,795 
Provision (benefit) for credit losses - loans(1,571)(1,037)6,549 8,856 2,458 15,255 
Charge-offs(395)(3,918)(4)(255)(1,786)(6,358)
Recoveries28 — — — 662 690 
Balance at September 30, 2025
$10,171 $21,283 $120,349 $138,037 $17,591 $307,431 
For the three months ended September 30, 2026, the allowance for credit losses for loans decreased primarily due to charge-offs in the commercial and industrial - non-RE portfolio, partially offset by the provision for credit losses. The charge-offs in the commercial and industrial - non-RE portfolio were predominantly related to two borrowers. The provision for credit losses for the three months ended September 30, 2026 was primarily driven by specific reserves on certain individually assessed loans primarily in the commercial and industrial - non-RE portfolio, partially offset by a benefit in the Commercial Real Estate portfolio resulting from an improved macroeconomic outlook in the forecast scenarios used in the allowance for credit losses model.
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 credit losses for loans. For further discussion of the model method of estimating expected lifetime credit losses, see Note 1—“Organizations and Summary of Significant Accounting Policies” in the 2026 Form 10-K.
As part of its lending activities, the Company makes certain off-balance lending commitments. For additional information on these and other commitments, see Note 10—“Commitments and Contingencies.” The following tables present a summary of the activity in the allowance for credit losses for off-balance sheet lending commitments:
Three Months Ended September 30,
(Dollars in thousands)20262025
Balance at July 1,
$19,277 $10,891 
Provision (benefit) for credit losses - unfunded lending commitments(3,187)2,000 
Balance at September 30,
$16,090 $12,891 
The decrease in the allowance for off-balance sheet lending commitments for the three months ended September 30, 2026, was primarily driven by lower expected losses resulting from an improved macroeconomic outlook in the forecast scenarios used in the allowance for credit losses model.
Credit Quality Disclosures. The following tables provide the composition of loans that are performing and nonaccrual by portfolio segment:
September 30, 2026
(Dollars in thousands)Single Family-Mortgage & WarehouseMultifamily and Commercial MortgageCommercial Real EstateCommercial & Industrial - Non-REAuto & ConsumerTotal
Performing$4,386,849 $2,366,745 $9,642,038 $9,088,766 $718,611 $26,203,009 
Nonaccrual59,838 6,281 15,908 71,957 1,468 155,452 
Total$4,446,687 $2,373,026 $9,657,946 $9,160,723 $720,079 $26,358,461 
Nonaccrual loans to total loans0.59 %
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 %
There were no nonaccrual loans without an allowance for credit losses as of September 30, 2026 and June 30, 2026. There was no interest income recognized on nonaccrual loans in the three months ended September 30, 2026 and 2025. Loans reaching 90 days past due are generally placed on nonaccrual status and risk rated as substandard or doubtful. Loans not yet reaching 90 days past due may be placed on nonaccrual status based on management’s assessment of the aging of contractual principal amounts due, among other factors.
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 year-to-date gross charge-offs.
September 30, 2026
Loans Held for Investment by Fiscal Year of Origination
Revolving Loans Total
(Dollars in thousands)20272026202520242023Prior
Single Family-Mortgage & Warehouse
Pass$257,341 $863,818 $388,085 $139,748 $349,889 $1,635,542 $668,280 $4,302,703 
Special Mention— — — — 1,585 29,001 34,560 65,146 
Substandard— — 17,035 — 537 61,266 — 78,838 
Doubtful— — — — — — — — 
Total257,341 863,818 405,120 139,748 352,011 1,725,809 702,840 4,446,687 
Year-to-date gross charge-offs— — 1,296 94 — — — 1,390 
Multifamily and Commercial Mortgage
Pass71,143 221,498 74,699 17,633 422,919 1,533,495 2,341,387 
Special Mention— — — — — 6,899 — 6,899 
Substandard— — — — — 24,740 — 24,740 
Doubtful— — — — — — — — 
Total71,143 221,498 74,699 17,633 422,919 1,565,134 — 2,373,026 
Year-to-date gross charge-offs— — — — — — — — 
Commercial Real Estate
Pass401,506 3,355,479 2,852,094 872,186 618,687 41,170 1,459,184 9,600,306 
Special Mention— — — — — 27,128 — 27,128 
Substandard— — — — 1,185 14,722 14,605 30,512 
Doubtful— — — — — — — — 
Total401,506 3,355,479 2,852,094 872,186 619,872 83,020 1,473,789 9,657,946 
Year-to-date gross charge-offs— — — — — — — — 
Commercial & Industrial - Non-RE
Pass556,466 2,195,292 1,022,565 771,179 160,999 190,987 3,963,300 8,860,788 
Special Mention753 33,529 23,720 21,078 2,107 14,508 19,868 115,563 
Substandard861 15,045 7,505 44,849 5,229 55,662 54,831 183,982 
Doubtful— 158 — — — 232 — 390 
Total558,080 2,244,024 1,053,790 837,106 168,335 261,389 4,037,999 9,160,723 
Year-to-date gross charge-offs78 1,656 1,367 66,200 571 418 — 70,290 
Auto & Consumer
Pass113,867 336,000 141,196 29,401 36,035 61,044 — 717,543 
Special Mention— 329 353 37 175 153 — 1,047 
Substandard— 353 412 27 227 470 — 1,489 
Doubtful— — — — — — — — 
Total113,867 336,682 141,961 29,465 36,437 61,667 — 720,079 
Year-to-date gross charge-offs— 983 635 133 7 468 — 2,226 
Total
Pass1,400,323 6,972,087 4,478,639 1,830,147 1,588,529 3,462,238 6,090,764 25,822,727 
Special Mention753 33,858 24,073 21,115 3,867 77,689 54,428 215,783 
Substandard861 15,398 24,952 44,876 7,178 156,860 69,436 319,561 
Doubtful— 158 — — — 232 — 390 
Total$1,401,937 $7,021,501 $4,527,664 $1,896,138 $1,599,574 $3,697,019 $6,214,628 $26,358,461 
As a % of total gross loans5.3%26.6%17.2%7.2%6.1%14.0%23.6%100%
Year-to-date gross charge-offs$78 $2,639 $3,298 $66,427 $578 $886 $— $73,906 
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 
Year-to-date 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 
Year-to-date 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 
Year-to-date 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 
Year-to-date 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 
Year-to-date 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%17.7%8.0%6.7%7.7%7.3%24.0%100%
Total year-to-date gross charge-offs$2,776 $6,546 $3,483 $2,819 $26,185 $7,344 $— $49,153 
The following tables provide the aging of loans by portfolio segment:
September 30, 2026
(Dollars in thousands)Current30-59 Days60-89 Days90+ DaysTotal
Single Family-Mortgage & Warehouse$4,354,919 $19,117 $17,793 $54,858 $4,446,687 
Multifamily and Commercial Mortgage2,368,423 — 2,305 2,298 2,373,026 
Commercial Real Estate9,642,038 — 1,185 14,723 9,657,946 
Commercial & Industrial - Non-RE9,076,122 18,460 5,646 60,495 9,160,723 
Auto & Consumer715,269 2,884 1,159 767 720,079 
Total$26,156,771 $40,461 $28,088 $133,141 $26,358,461 
As a % of total gross loans99.23 %0.15 %0.11 %0.51 %100 %
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-RE
9,347,305 30,302 35,723 82,317 9,495,647 
Auto & Consumer660,928 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 %
Loans reaching 90 or more days past due are generally placed on nonaccrual. As of both September 30, 2026 and June 30, 2026 there were no loans over 90 days past due and still accruing interest.
Single family mortgage loans in process of foreclosure were $45.0 million and $47.1 million as of September 30, 2026 and June 30, 2026, respectively.
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” in the 2026 Form 10-K.

For the Three Months Ended
September 30,
(Dollars in thousands)20262025
Lease interest income$36,457 $6,156