Investment Securities

12 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

The tables below provide detail regarding the amortized cost and fair value of available-for-sale and held-to-maturity investment securities.


September 30, 2021	Amortized Cost		Gross Unrealized				Fair Value		Yield
			Gains		Losses
	($ in thousands)
Available-for-sale securities
U.S. government and agency securities due

1 to 5 years	$	47,339	$	240	$	—	$	47,579	0.44	%
5 to 10 years	14,064		136		—		14,200		2.05

Asset-backed securities

1 to 5 years	19,730		—		(434)		19,296		0.52
5 to 10 years	71,207		412		(97)		71,522		0.57
Over 10 years	973,892		14,069		(98)		987,863		0.94




Corporate debt securities due
Within 1 year	225,928		7,860		—		233,788		1.57
1 to 5 years	86,802		1,345		—		88,147		4.64
5 to 10 years	28,804		249		—		29,053		1.95

Municipal bonds due
Within 1 year	1,493		17		—		1,510		—

5 to 10 years	5,781		294		—		6,075		0.22
Over 10 years	29,909		2,490		—		32,399		5.85
Mortgage-backed securities
Agency pass-through certificates	585,121		23,717		(2,011)		606,827		2.60

	2,090,070		50,829		(2,640)		2,138,259		1.69
Held-to-maturity securities







Mortgage-backed securities
Agency pass-through certificates	366,025		13,522		—		379,547		3.17

	366,025		13,522		—		379,547		3.17
	$	2,456,095	$	64,351	$	(2,640)	$	2,517,806	1.89	%


September 30, 2020	Amortized Cost		Gross Unrealized				Fair Value		Yield
			Gains		Losses
	($ in thousands)
Available-for-sale securities
U.S. government and agency securities due


5 to 10 years	$	18,448	$	376	$	—	$	18,824	2.05	%

Asset-backed securities


5 to 10 years	38,289		—		(1,600)		36,689		0.83
Over 10 years	906,489		647		(6,908)		900,228		1.14




Corporate debt securities due
Within 1 year	54,209		337		(51)		54,495		1.22
1 to 5 years	128,289		3,366		(428)		131,227		1.78
5 to 10 years	97,157		4,305		—		101,462		1.50

Municipal bonds due

1 to 5 years	1,461		36		—		1,497		—

Over 10 years	36,044		774		—		36,818		5.40
Mortgage-backed securities
Agency pass-through certificates	929,713		39,166		(627)		968,252		2.82

	2,210,099		49,007		(9,614)		2,249,492		1.97
Held-to-maturity securities







Mortgage-backed securities
Agency pass-through certificates	698,934		21,582		—		720,516		3.16
Commercial MBS	6,904		—		(52)		6,852		1.02
	705,838		21,582		(52)		727,368		3.14
	$	2,915,937	$	70,589	$	(9,666)	$	2,976,860	2.25	%

During fiscal year 2020, as permitted in conjunction with the adoption of ASU 2019-04, the Company reclassified $374,680,000 of prepayable debt securities from held-to-maturity to available-for-sale. The Company purchased $530,227,000 of available-for-sale investment securities and no held-to-maturity investment securities during 2021. Sales of available-for-sale securities totaled $1,499,000 and there were no sales of held-to-maturity investment securities in 2021. Substantially all mortgage-backed securities have contractual due dates that exceed 25 years.

The Company elected to exclude AIR from the amortized cost basis of debt securities disclosed throughout this footnote. For AFS securities, AIR totaled $3,459,000 and $3,285,000 as of September 30, 2021 and September 30, 2020, respectively. For HTM debt securities, AIR totaled $944,000 and $1,811,000 as of September 30, 2021 and September 30, 2020, respectively. AIR is included in the “interest receivable” line item on the Company’s consolidated statements of financial condition.

The following tables show the gross unrealized losses and fair value of securities as of September 30, 2021 and September 30, 2020, by length of time that individual securities in each category have been in a continuous loss position. There were 31 and 51 securities with an unrealized loss as of September 30, 2021 and September 30, 2020, respectively. 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 impaired.


September 30, 2021	Less than 12 months				12 months or more				Total
	Unrealized Gross Losses		Fair Value		Unrealized Gross Losses		Fair Value		Unrealized Gross Losses		Fair Value
	(In thousands)
Available-for-sale securities



Asset-backed securities	$	(15)	$	4,639	$	(614)	$	70,058	$	(629)	$	74,697
Mortgage-backed securities	(1,569)		47,758		(442)		32,266		(2,011)		80,024
	(1,584)		52,397		(1,056)		102,324		(2,640)		154,721
Held-to-maturity securities
Mortgage-backed securities	—		—		—		—		—		—
	$	(1,584)	$	52,397	$	(1,056)	$	102,324	$	(2,640)	$	154,721


September 30, 2020	Less than 12 months				12 months or more				Total
	Unrealized Gross Losses		Fair Value		Unrealized Gross Losses		Fair Value		Unrealized Gross Losses		Fair Value
	(In thousands)
Available-for-sale securities
Corporate debt securities	$	(74)	$	45,875	$	(405)	$	24,596	$	(479)	$	70,471


Asset-backed securities	(5,481)		587,746		(3,027)		204,369		(8,508)		792,115
Mortgage-backed securities	(278)		41,897		(349)		56,196		(627)		98,093
	(5,833)		675,518		(3,781)		285,161		(9,614)		960,679
Held-to-maturity securities
Mortgage-backed securities	(52)		6,853		—		—		(52)		6,853
	$	(5,885)	$	682,371	$	(3,781)	$	285,161	$	(9,666)	$	967,532

Substantially all of the Company’s held-to-maturity debt securities are issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government and have a long history of zero credit loss. Therefore, the Company did not record an allowance for credit losses for these securities as of September 30, 2021 or September 30, 2020.

The Company does not believe that the available-for-sale debt securities that were in an unrealized loss position have any credit loss impairment as of September 30, 2021 or September 30, 2020. The Company does not intend to sell the investment securities that were in an unrealized loss position and it is not more likely than not that the Company will be required to sell the investment securities before recovery of their amortized cost basis, which may be at maturity. Available-for-sale debt securities issued by U.S. government agencies or U.S. government-sponsored enterprises carry the explicit and/or implicit guarantee of the U.S. government and have a long history of zero credit loss. The issuers of the corporate debt securities and municipal bonds held are considered to be of high credit quality (rated AA or higher) and the decline in fair value is due to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payments on the bonds. The fair value is expected to recover as the bonds approach maturity.