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Derivatives and Hedging Activities (Tables) | 9 Months Ended
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Jun. 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 June 30, 2022 and September 30, 2021.
June 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 | $ | 565,380 |  | $ | 43,219 |  |  | Other liabilities | $ | 565,380 |  | $ | 43,219 |
Commercial loan fair value hedges | Other assets | 42,209 |  | 1,153 |  |  | Other liabilities | — |  | — |
Mortgage loan fair value hedges | Other assets | 470,000 |  | 26,415 |  |  | Other liabilities | — |  | — |
Borrowings cash flow hedges | Other assets | 1,000,000 |  | 136,436 |  |  | Other liabilities | — |  | — |
|  | $ | 2,077,589 |  | $ | 207,223 |  |  |  | $ | 565,380 |  | $ | 43,219 |
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 present the impact of fair value hedge accounting on the carrying value of the hedged items at June 30, 2022 and September 30, 2021.
(In thousands) | June 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) | $ | 1,210,272 |  | $ | (27,410) |
| $ | 1,210,272 |  | $ | (27,410) |
(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 June 30, 2022, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $1.2 billion, the cumulative basis adjustment associated with the hedging relationships was $(26.2) million, and the amount of the designated hedged items was $470 million. During the year ended September 30, 2021, hedge accounting was discontinued on $30 million (30%) of a $100 million last of layer hedge. At June 30, 2022, there is $1.0 million of remaining unamortized basis adjustment associated with the terminated portion of the hedge and it will be recognized 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 June 30, 2022, the amortized cost basis of the hedged commercial loans was $41 million and the cumulative basis adjustment associated with the hedging relationships was $(1.2) million.
(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 $1.5 billion, the cumulative basis adjustment associated with the hedging relationships was $1.9 million, and the amount of the designated hedged items was $470 million. During the year ended September 30, 2021, hedge accounting was discontinued on $30 million (30%) of a $100 million last of layer hedge. (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 $47 million and the cumulative basis adjustment associated with the hedging relationships was $2.4 million. During the year ended September 30, 2021, hedge accounting was discontinued on a $46 million commercial loan hedge.
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 June 30, 2022 | Three Months Ended June 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 | $ | 149,113 |  | $ | (6,118) |  | $ | 134,193 |  | $ | (9,937) |
Gain/(loss) on fair value hedging relationships: |  |  |  |
Interest rate contracts |  |  |  |
Amounts related to interest settlements on derivatives | $ | (394) |  |  | $ | (1,582) |  |
Recognized on derivatives | 8,325 |  |  | (6,262) |  |
Recognized on hedged items | (8,564) |  |  | 6,292 |  |
Net income/(expense) recognized on fair value hedges | $ | (633) |  |  | $ | (1,552) |  |
Gain/(loss) on cash flow hedging relationships: |  |  |  |
Interest rate contracts |  |  |  |
Amounts related to interest settlements on derivatives |  | $ | 21 |  |  | $ | 2,182 |
Amount of derivative gain/(loss) reclassified from AOCI into interest income/expense |  | — |  |  | — |
Net income/(expense) recognized on cash flow hedges |  | $ | 21 |  |  | $ | 2,182 |
| Nine Months Ended June 30, 2022 | Nine Months Ended June 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 | $ | 426,882 |  | $ | (21,486) |  | $ | 400,621 |  | $ | (35,126) |
Gain/(loss) on fair value hedging relationships: |  |  |  |
Interest rate contracts |  |  |  |
Amounts related to interest settlements on derivatives | $ | (2,964) |  |  | $ | (4,686) |  |
Recognized on derivatives | 31,386 |  |  | 15,816 |  |
Recognized on hedged items | (31,625) |  |  | (15,541) |  |
Net income/(expense) recognized on fair value hedges | $ | (3,203) |  |  | $ | (4,411) |  |
Gain/(loss) on cash flow hedging relationships: |  |  |  |
Interest rate contracts |  |  |  |
Amounts related to interest settlements on derivatives |  | $ | 3,757 |  |  | $ | 8,846 |
Amount of derivative gain/(loss) reclassified from AOCI into interest income/expense |  | — |  |  | 14,110 |
Net income/(expense) recognized on cash flow hedges |  | $ | 3,757 |  |  | $ | 22,956 |
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, as well as the effect of reclassification adjustments.
(In thousands) | Three Months Ended June 30,
Amounts recognized in AOCI | 2022 | 2021
Interest rate contracts: |  |
Pay fixed/receive floating swaps on borrowings cash flow hedges | $ | 31,225 |  | $ | (23,485) |
Reclassification adjustment of net (gain)/loss included in net income | — |  | — |
Total pre-tax gain/(loss) recognized in AOCI | $ | 31,225 |  | $ | (23,485) |
(In thousands) | Nine Months Ended June 30,
Amounts recognized in AOCI | 2022 | 2021
Interest rate contracts: |  |
Pay fixed/receive floating swaps on borrowings cash flow hedges | $ | 93,994 |  | $ | 67,198 |
Reclassification adjustment of net (gain)/loss included in net income | — |  | (14,110) |
Total pre-tax gain/(loss) recognized in AOCI | $ | 93,994 |  | $ | 53,088 |
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 June 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 | $ | 15,865 |  | $ | 10,814 |
Receive fixed/pay floating swap | Other noninterest income | (15,865) |  | (10,814) |
|  | $ | — |  | $ | — |

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