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Fair Value Measurements
 3 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
FASB ASC 820, Fair Value Measurement ("ASC 820") defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active exchange markets that the entity has the ability to access as of the measurement date.
Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active and other inputs that are observable or can be corroborated by observable market data.
Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company has established and documented the process for determining the fair values of its assets and liabilities, where applicable. Fair value is based on quoted market prices, when available, for identical or similar assets or liabilities. In the absence of quoted market prices, fair value is determined using valuation models or third-party appraisals. The following is a description of the valuation methodologies used to measure and report the fair value of financial assets and liabilities on a recurring or nonrecurring basis.
Measured on a Recurring Basis
Available-for-Sale Securities and Derivative Contracts
Securities available for sale are recorded at fair value on a recurring basis. The fair value of debt securities are priced using model pricing based on the securities' relationship to other benchmark quoted prices as provided by an independent third party, and under GAAP are considered a Level 2 input method. Securities that are traded on active exchanges are measured using the closing price in an active market and are considered a Level 1 input method.
The Company offers interest rate swaps to its variable rate borrowers who want to manage their interest rate risk. At the same time, the Company enters into the opposite trade with a counter party to offset its interest rate risk. The Company has also entered into commercial loan hedges, mortgage pool hedges and borrowings hedges using interest rate swaps. The fair value of these interest rate swaps are estimated by a third party pricing service using a discounted cash flow technique. These are considered a Level 2 input method.
 
The following tables present the balance of assets and liabilities measured at fair value on a recurring basis.

 December 31, 2019
 Level 1Level 2Level 3Total
 (In thousands)
Financial Assets
Available-for-sale securities:
U.S. government and agency securities$—  $333,514  $—  $333,514  
Municipal bonds—  22,490  —  22,490  
Corporate debt securities—  210,649  —  210,649  
Mortgage-backed securities
Agency pass-through certificates—  928,933  —  928,933  
Total available-for-sale securities—  1,495,586  —  1,495,586  
Client swap program hedges—  14,973  —  14,973  
Mortgage loan fair value hedges—  4,765  —  4,765  
Total financial assets$—  $1,515,324  $—  $1,515,324  
Financial Liabilities
Client swap program hedges$—  $14,973  $—  $14,973  
Commercial loan fair value hedges—  2,753  —  2,753  
Borrowings cash flow hedges—  4,762  —  4,762  
Total financial liabilities$—  $22,488  $—  $22,488  

 September 30, 2019
 Level 1Level 2Level 3Total
 (In thousands)
Financial Assets
Available-for-sale securities:
U.S. government and agency securities$—  $270,778  $—  $270,778  
Municipal bonds—  22,642  —  22,642  
Corporate debt securities—  209,763  —  209,763  
Mortgage-backed securities
Agency pass-through certificates—  982,559  —  982,559  
Total available-for-sale securities—  1,485,742  —  1,485,742  
Client swap program hedges—  20,381  —  20,381  
Mortgage loan fair value hedges—  1,608  —  1,608  
Total financial assets$—  $1,507,731  $—  $1,507,731  
Financial Liabilities
Client swap program hedges$—  $20,381  $—  $20,381  
Commercial loan fair value hedges—  4,288  —  4,288  
Borrowings cash flow hedges—  7,877  —  7,877  
Total financial liabilities$—  $32,546  $—  $32,546  
Measured on a Nonrecurring Basis

Certain assets and liabilities are measured at fair value on a nonrecurring basis after initial recognition such as loans measured for impairment and real estate owned ("REO"). REO consists principally of properties acquired through foreclosure. From time to time, and on a nonrecurring basis, adjustments using fair value measurements are recorded to reflect increases or decreases based on the discounted cash flows, the current appraisal or estimated value of the collateral or REO property.

When management determines that the fair value of the collateral or the real estate owned requires additional adjustments, either as a result of an updated appraised value or when there is no observable market price, the Company classifies the impaired loan or real estate owned as Level 3. Level 3 assets recorded at fair value on a nonrecurring basis at December 31, 2019 included loans for which a specific reserve allowance was established or a partial charge-off was recorded based on the fair value of collateral, as well as real estate owned where the fair value of the property was less than the cost basis.

The following tables present the aggregated balance of assets that were measured at fair value on a nonrecurring basis at December 31, 2019 and December 31, 2018, and the total gains (losses) resulting from those fair value adjustments during the respective periods. The estimated fair value measurements are shown gross of estimated selling costs.
 
 December 31, 2019Three Months Ended December 31, 2019
 Level 1Level  2Level  3TotalTotal Gains (Losses)
 (In thousands)(In thousands)
Impaired loans (1)$—  $—  $70  $70  $(299) 
Real estate owned (2)—  —  976  976  (2) 
Balance at end of period$—  $—  $1,046  $1,046  $(301) 

(1)The gains (losses) represent remeasurements of collateral-dependent loans.
(2)The gains (losses) represent remeasurements of REO.

December 31, 2018Three Months Ended December 31, 2018
Level 1Level  2Level  3TotalTotal Gains (Losses)
(In thousands)(In thousands)
Impaired loans (1)$—  $—  $1,970  $1,970  $(726) 
Real estate owned (2)—  —  520  520  (32) 
Balance at end of period$—  $—  $2,490  $2,490  $(758) 

(1)The gains (losses) represent remeasurements of collateral-dependent loans.
(2)The gains (losses) represent remeasurements of REO.

Fair Values of Financial Instruments
FASB ASC 825, Financial Instruments ("ASC 825") requires disclosure of fair value information about financial instruments, whether or not recognized on the statement of financial condition, for which it is practicable to estimate those values. Certain financial instruments and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value estimates presented do not reflect the underlying fair value of the Company. Although management is not aware of any factors that would materially affect the estimated fair value amounts presented below, such amounts have not been comprehensively revalued for purposes of these financial statements since the dates shown, and therefore, estimates of fair value subsequent to those dates may differ significantly from the amounts presented below. 
 December 31, 2019September 30, 2019
 Level in Fair Value HierarchyCarrying
Amount		Estimated
Fair Value		Carrying
Amount		Estimated
Fair Value
 ($ in thousands)
Financial assets
Cash and cash equivalents1  $483,805  $483,805  $419,158  $419,158  
Available-for-sale securities
U.S. government and agency securities2  333,514  333,514  270,778  270,778  
Municipal bonds2  22,490  22,490  22,642  22,642  
Corporate debt securities2  210,649  210,649  209,763  209,763  
Mortgage-backed securities
Agency pass-through certificates2  928,933  928,933  982,559  982,559  
Total available-for-sale securities1,495,586  1,495,586  1,485,742  1,485,742  
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates2  1,348,594  1,368,314  1,428,480  1,448,088  
                           Commercial MBS2  12,100  12,106  15,000  15,007  
Total held-to-maturity securities1,360,694  1,380,420  1,443,480  1,463,095  
Loans receivable3  11,904,861  12,479,483  11,930,575  12,617,600  
FHLB and FRB stock2  123,990  123,990  123,990  123,990  
        Other assets - client swap program hedges2  14,973  14,973  20,381  20,381  
        Other assets - mortgage loan fair value hedges2  4,765  4,765  1,608  1,608  
Financial liabilities
Time deposits2  4,617,017  4,642,830  4,906,963  4,937,847  
FHLB advances2  2,250,000  2,279,222  2,250,000  2,282,887  
        Other liabilities - client swap program hedges2  14,973  14,973  20,381  20,381  
Other liabilities - commercial loan fair value hedges2  2,753  2,753  4,288  4,288  
        Other liabilities - borrowings cash flow hedges2  4,762  4,762  7,877  7,877  

The following methods and assumptions were used to estimate the fair value of financial instruments:
Cash and cash equivalents – The carrying amount of these items is a reasonable estimate of their fair value. 
Available-for-sale securities and held-to-maturity securities – Securities at fair value are primarily priced using model pricing based on the securities' relationship to other benchmark quoted prices as provided by an independent third party, and are considered a Level 2 input method. Equity securities that are exchange traded are considered a Level 1 input method.
Loans receivable – Fair values are estimated first by stratifying the portfolios of loans with similar financial characteristics. Loans are segregated by type such as multi-family real estate, residential mortgage, construction, commercial, consumer and land loans. Each loan category is further segmented into fixed- and adjustable-rate interest terms. For residential mortgages and multi-family loans, the bank determined that its best exit price was by securitization. MBS benchmark prices are used as a base price, with further loan level pricing adjustments made based on individual loan characteristics such as FICO score, LTV, Property Type and occupancy. For all other loan categories an estimate of fair value is then calculated based on discounted cash flows using a discount rate offered and observed in the market on similar products, plus an adjustment for liquidity to reflect the non-homogeneous nature of the loans, as well as, a annual loss rate based on historical losses to arrive at an estimated exit price fair value. Fair value for impaired loans is also based on recent appraisals or estimated cash flows discounted using rates
commensurate with risk associated with the estimated cash flows. Assumptions regarding credit risk, cash flows and discount rates are judgmentally determined using available market information and specific borrower information.
FHLB and FRB stock – The fair value is based upon the par value of the stock that equates to its carrying value.
Time deposits – The fair value of time deposits is estimated by discounting the estimated future cash flows using rates offered for deposits with similar remaining maturities.
FHLB advances – The fair value of FHLB advances and other borrowings is estimated by discounting the estimated future cash flows using rates currently available to the Company for debt with similar remaining maturities.
Interest rate swaps – The Company offers interest rate swaps to its variable rate borrowers who want to manage their interest rate risk. At the same time, the Company enters into the opposite trade with a counterparty to offset its interest rate risk. The Company also uses interest rate swaps for various fair value hedges and cash flow hedges. The fair value of these interest rate swaps is estimated by a third party pricing service using a discounted cash flow technique.
The following tables provide details about the amortized cost and fair value of available-for-sale and held-to-maturity securities.
 December 31, 2019
 Amortized
Cost		Gross UnrealizedFair
Value		Yield
 GainsLosses
 ($ in thousands)
Available-for-sale securities
U.S. government and agency securities due
5 to 10 years$63,512  $2  $(979) $62,535  2.27 %
Over 10 years272,314  14  (1,349) 270,979  2.82  
Corporate debt securities due
Within 1 year43,938  307  —  44,245  3.41  
1 to 5 years70,000  977  —  70,977  3.01  
5 to 10 years93,008  2,419  —  95,427  2.95  
Municipal bonds due
1 to 5 years1,437  23  —  1,460  1.95  
Over 10 years20,298  732  —  21,030  6.45  
Mortgage-backed securities
Agency pass-through certificates905,556  24,998  (1,621) 928,933  3.19  
1,470,063  29,472  (3,949) 1,495,586  3.11  
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates1,348,594  20,018  (298) 1,368,314  3.15  
Commercial MBS12,100  6  —  12,106  2.61  
1,360,694  20,024  (298) 1,380,420  3.14  
$2,830,757  $49,496  $(4,247) $2,876,006  3.12 %
 
 September 30, 2019
 Amortized
Cost		Gross UnrealizedFair
Value		Yield
 GainsLosses
 ($ in thousands)
Available-for-sale securities
U.S. government and agency securities due
5 to 10 years$65,287  $39  $(629) $64,697  2.43 %
Over 10 years207,067  1  (987) 206,081  3.02  
Corporate debt securities due
Within 1 year43,903  411  —  44,314  3.65  
1 to 5 years70,000  689  (50) 70,639  3.29  
5 to 10 years92,931  1,879  —  94,810  3.27  
Municipal bonds due
1 to 5 years1,430  14  —  1,444  1.94  
Over 10 years20,303  895  —  21,198  6.45  
Mortgage-backed securities
Agency pass-through certificates957,150  26,533  (1,124) 982,559  3.29  
1,458,071  30,461  (2,790) 1,485,742  3.27  
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates1,428,480  19,945  (337) 1,448,088  3.15  
Commercial MBS15,000  7  —  15,007  2.89  
1,443,480  19,952  (337) 1,463,095  3.15  
$2,901,551  $50,413  $(3,127) $2,948,837  3.21 %

For available-for-sale investment securities, there were purchases of $82,028,000 during the three months ended December 31, 2019 and purchases of $172,076,000 during the three months ended December 31, 2018. There were no sales of available-for-sale investment securities during the three months ended December 31, 2019 and sales of $491,000 during the three months ended December 31, 2018. For held-to-maturity investment securities, there were no purchases during the three months ended December 31, 2019 and no purchases during the three months ended December 31, 2018. There were no sales of held-to-maturity investment securities during either period. Substantially all of the agency mortgage-backed securities have contractual due dates that exceed 10 years.
The following tables show the gross unrealized losses and fair value of securities as of December 31, 2019 and September 30, 2019, by length of time that individual securities in each category have been in a continuous loss position. The decline in fair value since purchase is attributable to changes in interest rates. Because the Company does not intend to sell these securities and does not consider it more likely than not that it will be required to sell these securities before the recovery of amortized cost basis, which may be upon maturity, the Company does not consider these investments to be other-than-temporarily impaired.
 
December 31, 2019Less than 12 months12 months or moreTotal
 Unrealized
Gross Losses		Fair
Value		Unrealized
Gross Losses		Fair
Value		Unrealized
Gross Losses		Fair
Value
 (In thousands)
U.S. government and agency securities$(701) $156,068  $(1,627) $122,155  $(2,328) $278,223  
Mortgage-backed securities(660) 125,407  (1,259) 209,355  (1,919) 334,762  
$(1,361) $281,475  $(2,886) $331,510  $(4,247) $612,985  
September 30, 2019Less than 12 months12 months or moreTotal
 Unrealized
Gross Losses		Fair
Value		Unrealized
Gross Losses		Fair
Value		Unrealized
Gross Losses		Fair
Value
 (In thousands)
Corporate debt securities$—  $—  $(50) $24,950  $(50) $24,950  
U.S. government and agency securities(656) 152,715  (960) 77,391  (1,616) 230,106  
Mortgage-backed securities(148) 87,895  (1,313) 270,802  (1,461) 358,697  
$(804) $240,610  $(2,323) $373,143  $(3,127) $613,753