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Derivatives and Hedging Activities (Tables)

3 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Value, Notional Amount and Balance Sheet Classification

The following tables present the fair value, notional amount and balance sheet classification of derivative assets and liabilities at December 31, 2020 and September 30, 2020.

December 31, 2020			Derivative Assets												Derivative Liabilities
Interest rate contract purpose			Balance Sheet Location			Notional			Fair Value						Balance Sheet Location			Notional			Fair Value
			(In thousands)												(In thousands)
Client swap program hedges			Other assets			$	637,633		$	35,825					Other liabilities			$	637,633		$	35,825
Commercial loan fair value hedges			Other assets			—			—						Other liabilities			90,918			7,508
Mortgage loan fair value hedges			Other assets			—			—						Other liabilities			500,000			12,459
Borrowings cash flow hedges			Other assets			1,500,000			2,743						Other liabilities			—			—
						$	2,137,633		$	38,568								$	1,228,551		$	55,792

September 30, 2020			Derivative Assets												Derivative Liabilities
Interest rate contract purpose			Balance Sheet Location			Notional			Fair Value						Balance Sheet Location			Notional			Fair Value
			(In thousands)												(In thousands)
Client swap program hedges			Other assets			$	656,074		$	48,201					Other liabilities			$	656,074		$	48,201
Commercial loan fair value hedges			Other assets			—			—						Other liabilities			93,316			8,492
Mortgage loan fair value hedges			Other assets			—			—						Other liabilities			500,000			16,061
Borrowings cash flow hedges			Other assets			—			—						Other liabilities			1,600,000			17,375
						$	656,074		$	48,201								$	2,849,390		$	90,129

Schedule of Fair Value Hedge Accounting on Carrying Value of Hedged Items

The following tables present the impact of fair value hedge accounting on the carrying value of the hedged items at December 31, 2020 and September 30, 2020.

(In thousands)			December 31, 2020
Balance sheet line item in which hedged item is recorded			Carrying value of hedged items			Cumulative gain (loss) fair value hedge adjustment included in carrying amount of hedged items
Loans receivable (1) (2)			$	2,242,120		$	20,208
			$	2,242,120		$	20,208

(1) Includes the amortized cost basis of the closed mortgage loan portfolios used to designate the hedging relationships in which the hedged items are the last layer expected to be remaining at the end of the hedging relationships. At December 31, 2020, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $2,143,675,000, the cumulative basis adjustment associated with the hedging relationships was $12,515,000, and the amount of the designated hedged items was $500,000,000.

(2) Includes the amortized cost basis of commercial loans designated in fair value hedging relationships. At December 31, 2020, the amortized cost basis of the hedged commercial loans was $98,445,000 and the cumulative basis adjustment associated with the hedging relationships was $7,693,000.

(In thousands)			September 30, 2020
Balance sheet line item in which hedged item is recorded			Carrying value of hedged items			Cumulative gain (loss) fair value hedge adjustment included in carrying amount of hedged items
Loans receivable (1) (2)			$	2,562,765		$	24,664
			$	2,562,765		$	24,664

(1) Includes the amortized cost basis of the closed mortgage loan portfolios used to designate the hedging relationships in which the hedged items are the last layer expected to be remaining at the end of the hedging relationships. At September 30, 2020, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $2,461,008,000, the cumulative basis adjustment associated with the hedging relationships was $16,049,000, and the amount of the designated hedged items was $500,000,000.

(2) Includes the amortized cost basis of commercial loans designated in fair value hedging relationships. At September 30, 2020, the amortized cost basis of the hedged commercial loans was $101,757,000 and the cumulative basis adjustment associated with the hedging relationships was $8,615,000.

Schedule of Impact of Derivative Instruments

The following tables present the gain (loss) recognized in AOCI on derivative instruments related to cash flow hedges on borrowings for the periods presented.

(In thousands)			Three Months Ended December 31,
Amount of gain/(loss) recognized in AOCI			2020			2019
Interest rate contracts:
Pay fixed/receive floating swaps on borrowings cash flow hedges			$	20,118		$	3,115
Total pre-tax gain/(loss) recognized in AOCI			$	20,118		$	3,115

The following tables present the impact of derivative instruments (client swap program) that are not designated in accounting hedges under ASC 815 for the periods presented.

(In thousands)						Three Months Ended December 31,
Derivative instruments			Classification of gain/(loss) recognized in income on derivative instrument			2020			2019
Interest rate contracts:
Pay fixed/receive floating swap			Other noninterest income			$	12,376		$	5,408
Receive fixed/pay floating swap			Other noninterest income			(12,376)			(5,408)
						$	—		$	—

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location

The following tables present the gain (loss) on derivative instruments in fair value and cash flow accounting hedging relationships under ASC 815 for the periods presented.

			Three Months Ended December 31, 2020						Three Months Ended December 31, 2019
			Interest income on loans receivable			Interest expense on FHLB advances			Interest income on loans receivable			Interest expense on FHLB advances
			(In thousands)						(In thousands)
Interest income/(expense), including the effects of fair value and cash flow hedges			$	133,671		$	(13,198)		$	142,146		$	(13,658)
Gain/(loss) on fair value hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives			$	(1,541)					$	(7)
Recognized on derivatives			4,587						4,692
Recognized on hedged items			(4,456)						(4,593)
Net income/(expense) recognized on fair value hedges			$	(1,410)					$	92
Gain/(loss) on cash flow hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives						$	3,597					$	(214)
Amount of derivative gain/(loss) reclassified from AOCI into interest income/expense						—						—
Net income/(expense) recognized on cash flow hedges						$	3,597					$	(214)

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Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments.

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-Name Accounting Standards Codification
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Tabular disclosure of derivative instruments (including nonderivative instruments that are designated and qualify as hedging instruments) of (a) the location and amount of gains and losses reported in the statement of financial performance and (b) the location and fair value amounts of the instruments reported in the statement of financial position.

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Tabular disclosure for fair value hedging instruments of (a) the location and amount of gains and losses reported in the statement of financial performance and (b) the location and fair value amounts of the instruments reported in the statement of financial position.

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