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Derivatives and Hedging Activities | 6 Months Ended
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Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives and Hedging Activities | Derivatives and Hedging Activities The Company periodically enters into certain interest rate swap agreements in order to provide commercial loan customers the ability to convert from variable to fixed interest rate payments, while the Company retains a variable rate loan. Under these agreements, the Company enters into a variable rate loan agreement and a swap agreement with the client. The swap agreement effectively converts the client’s variable rate loan into a fixed rate. The Company enters into a corresponding swap agreement with a third party in order to offset its exposure on the variable and fixed components of the client's swap agreement. The Company had $808,981,000 and $1,035,573,000 notional in interest rate swaps to hedge this exposure as of March 31, 2018 and September 30, 2017, respectively. The interest rate swaps are derivatives under FASB ASC 815, Derivatives and Hedging, with changes in fair value recorded in earnings. There was no net impact to the statement of operations for the six months ended March 31, 2018 and 2017 as the changes in value for the asset and liability side of the swaps offset each other. The Company has entered into interest rate swaps to convert certain existing and future short-term borrowings to fixed rate payments. The primary purpose of these hedges is to mitigate the risk of rising interest rates, specifically LIBOR rates, which are a benchmark for the short-term borrowings. The hedging program qualifies as a cash flow hedge under ASC 815, which provides for offsetting of the recognition of gains and losses of the interest rate swaps and the hedged items. The hedged item is the LIBOR portion of the series of existing or future short-term fixed rate borrowings over the term of the interest rate swap. The change in the fair value of the interest rate swaps is recorded in other comprehensive income. The Company had $700,000,000 notional in interest rate swaps to hedge existing and anticipated future borrowings as of March 31, 2018 and September 30, 2017. The Company also enters into interest rate swaps to hedge the interest rate risk of individual fixed rate commercial loans and these relationships qualify as fair value hedges under ASC 815, which provides for offsetting of the recognition of gains and losses of the respective interest rate swap and the hedged item. The interest rate swaps in these hedging relationships had a notional amount of $97,927,000 and $52,936,000 as of March 31, 2018 and September 30, 2017, respectively. The following table presents the fair value and balance sheet classification of derivatives at March 31, 2018 and September 30, 2017:
|  | Asset Derivatives |  | Liability Derivatives
|  | March 31, 2018 |  | September 30, 2017 |  | March 31, 2018 |  | September 30, 2017
|  | Balance Sheet |  |  |  | Balance Sheet |  |  |  | Balance Sheet |  |  |  | Balance Sheet |  |
|  | Location |  | Fair Value |  | Location |  | Fair Value |  | Location |  | Fair Value |  | Location |  | Fair Value
|  | (In thousands)
Interest rate contracts |  | Other assets |  | $ | 8,617 |  |  | Other assets |  | $ | 1,139 |  |  | Other liabilities |  | $ | 8,617 |  |  | Other liabilities |  | $ | 1,139 |
Commercial loan hedges |  | Other assets |  | 2,217 |  |  | Other assets |  | — |  |  | Other liabilities |  | — |  |  | Other liabilities |  | 174 |
Borrowings hedges |  | Other assets |  | 15,328 |  |  | Other assets |  | — |  |  | Other liabilities |  | — |  |  | Other liabilities |  | 1,693 |
|  |  |  | $ | 26,162 |  |  |  |  | $ | 1,139 |  |  |  |  | $ | 8,617 |  |  |  |  | $ | 3,006 |

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- References No definition available. + Details
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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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