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Derivatives and Hedging Activities (Tables)

12 Months Ended

Sep. 30, 2022

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 September 30, 2022 and September 30, 2021.

September 30, 2022			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			$	588,676		$	67,260					Other liabilities			$	588,676		$	67,260
Commercial loan fair value hedges			Other assets			42,209			2,517						Other liabilities			—			—
Mortgage loan fair value hedges			Other assets			470,000			36,765						Other liabilities			—			—
Borrowings cash flow hedges			Other assets			1,000,000			179,945						Other liabilities			—			—
						$	2,100,885		$	286,487								$	588,676		$	67,260

September 30, 2021			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			$	644,355		$	10,983					Other liabilities			$	644,355		$	10,983
Commercial loan fair value hedges			Other assets			—			—						Other liabilities			44,678			2,177
Mortgage loan fair value hedges			Other assets			—			—						Other liabilities			470,000			1,641
Borrowings cash flow hedges			Other assets			1,000,000			42,442						Other liabilities			—			—
						$	1,644,355		$	53,425								$	1,159,033		$	14,801

Schedule of fair value hedge accounting on carrying value of hedged items

The following tables presents the impact of fair value hedge accounting on the carrying value of the hedged items at September 30, 2022 and September 30, 2021.

(In thousands)			September 30, 2022
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)			$	1,159,496		$	(39,090)
			$	1,159,496		$	(39,090)

(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, 2022, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $1,119,975,000, the cumulative basis adjustment associated with the hedging relationships was $(36,458,000), and the amount of the designated hedged items was $470,000,000.

(2) Includes the amortized cost basis of commercial loans designated in fair value hedging relationships. At September 30, 2022, the amortized cost basis of the hedged commercial loans was $39,521,000 and the cumulative basis adjustment associated with the hedging relationships was $(2,632,000).

(In thousands)			September 30, 2021
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)			$	1,515,487		$	4,215
			$	1,515,487		$	4,215

(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, 2021, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $1,468,517,000, the cumulative basis adjustment associated with the hedging relationships was $1,864,000, and the amount of the designated hedged items was 470,000,000. During the year ended September 30, 2021, hedge accounting was discontinued on $30,000,000 (30%) of a $100,000,000 last of layer hedge. The $1,238,000 unamortized discount associated with the terminated portion of the hedge is being amortized over the remaining life of the associated pool of loans.

(2) Includes the amortized cost basis of commercial loans designated in fair value hedging relationships. At September 30, 2021, the amortized cost basis of the hedged commercial loans was $46,970,000 and the cumulative basis adjustment associated with the hedging relationships was $2,351,000. During the year ended September 30, 2021, hedge accounting was discontinued on a $46,240,000 commercial loan hedge.

Schedule of impact of derivative instruments

The following table presents the impact of derivative instruments (cash flow hedges on borrowings) on AOCI for the periods presented.

(In thousands)			Twelve Months Ended September 30,
Amount of gain/(loss) recognized in AOCI on derivatives in cash flow hedging relationships			2022			2021
Interest rate contracts:
Pay fixed/receive floating swaps on cash flow hedges of borrowings			$	137,502		$	59,817
Total pre-tax gain/(loss) recognized in AOCI			$	137,502		$	59,817

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

(In thousands)						Twelve Months Ended September 30,
Derivative instruments			Classification of gain/(loss) recognized in income on derivative instrument			2022			2021
Interest rate contracts:
Pay fixed/receive floating swap			Other noninterest income			$	78,244		$	37,218
Receive fixed/pay floating swap			Other noninterest income			(78,244)			(37,218)
						$	—		$	—

Schedule of derivatives instruments statements of financial performance and financial position, location

The following table presents the gains/(losses) on derivative instruments in fair value and cash flow accounting hedging relationships under ASC 815 for the period presented.

			Twelve Months Ended September 30, 2022						Twelve Months Ended September 30, 2021
			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			$	601,592		$	(28,729)		$	537,660		$	(44,188)
Gain/(loss) on fair value hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives			$	(1,782)					$	(6,320)
Recognized on derivatives			43,100						20,736
Recognized on hedged items			(43,305)						(20,449)
Net income/(expense) recognized on fair value hedges			$	(1,987)					$	(6,033)
Gain/(loss) on cash flow hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives						$	(408)					$	10,846
Amount of derivative gain/(loss) reclassified from AOCI into interest income/expense						—						14,110
Net income/(expense) recognized on cash flow hedges						$	(408)					$	24,956

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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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-SubTopic 10
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Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

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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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