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Fair Value Measurements (Tables)

9 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value of Assets Measured on Recurring Basis

The following tables present the balance and level in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis.

			June 30, 2022
			Level 1						Level 2						Level 3						Total
			(In thousands)
Financial Assets
Available-for-sale securities:
U.S. government and agency securities			$	—					$	45,462					$	—					$	45,462
Asset-backed securities			—						838,033						—						838,033
Municipal bonds			—						37,231						—						37,231
Corporate debt securities			—						321,924						—						321,924
Mortgage-backed securities
Agency pass-through certificates			—						908,082						—						908,082
Total available-for-sale securities			—						2,150,732						—						2,150,732
Client swap program hedges			—						43,219						—						43,219
Commercial loan fair value hedges			—						1,153						—						1,153
Mortgage loan fair value hedges			—						26,415						—						26,415
Borrowings cash flow hedges			—						136,436						—						136,436
Total financial assets			$	—					$	2,357,955					$	—					$	2,357,955
Financial Liabilities
Client swap program hedges			$	—					$	43,219					$	—					$	43,219
Total financial liabilities			$	—					$	43,219					$	—					$	43,219

			September 30, 2021
			Level 1						Level 2						Level 3						Total
			(In thousands)
Financial Assets
Available-for-sale securities:
U.S. government and agency securities			$	—					$	61,779					$	—					$	61,779
Asset-backed securities			—						1,078,681												1,078,681
Municipal bonds			—						39,984						—						39,984
Corporate debt securities			—						350,988						—						350,988
Mortgage-backed securities
Agency pass-through certificates			—						606,827						—						606,827
Total available-for-sale securities			—						2,138,259						—						2,138,259
Client swap program hedges			—						10,983						—						10,983
Borrowings cash flow hedges			—						42,442						—						42,442
Total financial assets			$	—					$	2,191,684					$	—					$	2,191,684
Financial Liabilities
Client swap program hedges			$	—					$	10,983					$	—					$	10,983
Commercial loan fair value hedges			—						2,177						—						2,177
Mortgage loan fair value hedges									1,641												1,641
Total financial liabilities			$	—					$	14,801					$	—					$	14,801

Fair Value of Assets Measured on Nonrecurring Basis

The following tables present the aggregated balance of assets that were measured at fair value on a nonrecurring basis at June 30, 2022 and June 30, 2021, 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.

 

			June 30, 2022																								Three Months Ended June 30, 2022						Nine Months Ended June 30, 2022
			Level 1						Level  2						Level  3						Total						Total Gains (Losses)
			(In thousands)																								(In thousands)
Loans (1)			$	—					$	—					$	4,182					$	4,182					$	(40)					$	(1,025)
Real estate owned (2)			—						—						1,848						1,848						196						(276)
Balance at end of period			$	—					$	—					$	6,030					$	6,030					$	156					$	(1,301)

(1)The gains (losses) represent re-measurements of collateral-dependent loans.

(2)The gains (losses) represent aggregate write-downs and charge-offs on real estate owned.

			June 30, 2021																								Three Months Ended June 30, 2021						Nine Months Ended June 30, 2021
			Level 1						Level  2						Level  3						Total						Total Gains (Losses)
			(In thousands)																								(In thousands)
Loans (1)			$	—					$	—					$	—					$	—					$	(19)					$	(88)
Real estate owned (2)			—						—						1,542						1,542						(460)						(359)
Balance at end of period			$	—					$	—					$	1,542					$	1,542					$	(479)					$	(447)

(1)The gains (losses) represent re-measurements of collateral-dependent loans.

(2)The gains (losses) represent aggregate write-downs and charge-offs on real estate owned.

Fair Value of Financial Instruments by Balance Sheet Grouping

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.

												June 30, 2022												September 30, 2021
						Level in Fair Value Hierarchy						Carrying Amount						Estimated Fair Value						Carrying Amount						Estimated Fair Value
												($ in thousands)
Financial assets
Cash and cash equivalents						1						$	607,421					$	607,421					$	2,090,809					$	2,090,809
Available-for-sale securities
U.S. government and agency securities						2						45,462						45,462						61,779						61,779
Asset-backed securities						2						838,033						838,033						1,078,681						1,078,681
Municipal bonds						2						37,231						37,231						39,984						39,984
Corporate debt securities						2						321,924						321,924						350,988						350,988
Mortgage-backed securities
Agency pass-through certificates						2						908,082						908,082						606,827						606,827
Total available-for-sale securities												2,150,732						2,150,732						2,138,259						2,138,259
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates						2						477,884						447,829						366,025						379,547
Total held-to-maturity securities												477,884						447,829						366,025						379,547
Loans receivable						3						15,565,165						15,395,375						13,833,570						14,279,725
FHLB and FRB stock						2						78,073						78,073						102,863						102,863
Other assets - client swap program hedges						2						43,219						43,219						10,983						10,983
Other assets - commercial fair value loan hedges						2						1,153						1,153						—						—
Other assets - mortgage loan fair value hedges						2						26,415						26,415						—						—
Other assets - borrowings cash flow hedges						2						136,436						136,436						42,442						42,442
Financial liabilities
Time deposits						2						3,297,369						3,212,617						3,434,087						3,382,206
FHLB advances						2						1,700,000						1,558,021						1,720,000						1,692,412
Other liabilities - client swap program hedges						2						43,219						43,219						10,983						10,983
Other liabilities - commercial loan fair value hedges						2						—						—						2,177						2,177
Other liabilities - mortgage loan fair value hedges						2						—						—						1,641						1,641

Reconciliation of Amortized Cost to Fair Value of Available-for-Sale and Held-to-Maturity Securities

The following tables provide details about the amortized cost and fair value of available-for-sale and held-to-maturity securities.

			June 30, 2022
			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			$	46,584					$	—					$	(1,122)					$	45,462					1.87		%
Asset-backed securities
1 to 5 years			23,396						—						(1,066)						22,330						2.00
5 to 10 years			94,022						61						(376)						93,707						2.01
Over 10 years			731,942						780						(10,726)						721,996						2.35
Corporate debt securities due
Within 1 year			75,000						83						—						75,083						2.44
1 to 5 years			151,290						77						(1,667)						149,700						2.68
5 to 10 years			114,712						—						(17,571)						97,141						3.87
Municipal bonds due
Within 1 year			1,515						—						—						1,515						—
5 to 10 years			5,758						—						(246)						5,512						0.16
Over 10 years			29,880						756						(432)						30,204						5.85
Mortgage-backed securities
Agency pass-through certificates			942,552						855						(35,325)						908,082						2.60
			2,216,651						2,612						(68,531)						2,150,732						2.49
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates			477,884						115						(30,170)						447,829						2.89
			477,884						115						(30,170)						447,829						2.89
			$	2,694,535					$	2,727					$	(98,701)					$	2,598,561					2.63		%

			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		%

Schedule of Unrealized Losses and Fair Value of Securities

The following tables show the gross unrealized losses and fair value of securities as of June 30, 2022 and September 30, 2021, by length of time that individual securities in each category have been in a continuous loss position. There were 149 and 31 securities with an unrealized loss as of June 30, 2022 and September 30, 2021, 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 have any credit impairment.

 

June 30, 2022			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			$	(19,238)					$	226,780					$	—					$	—					$	(19,238)					$	226,780
Municipal bonds			(679)						14,960						—						—						(679)						14,960
U.S. government and agency securities			(1,122)						45,462						—						—						(1,122)						45,462
Asset-backed securities			(10,232)						651,065						(1,935)						77,426						(12,167)						728,491
Mortgage-backed securities			(29,207)						781,357						(6,118)						57,878						(35,325)						839,235
			(60,478)						1,719,624						(8,053)						135,304						(68,531)						1,854,928
Held-to-maturity securities
Mortgage-backed securities			(30,170)						445,576						—						—						(30,170)						445,576
			$	(90,648)					$	2,165,200					$	(8,053)					$	135,304					$	(98,701)					$	2,300,504

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

X

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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For all investments in an unrealized loss position, including those for which other-than-temporary impairments have not been recognized in earnings (including investments for which a portion of an other-than-temporary impairment has been recognized in other comprehensive income), a tabular disclosure of the aggregate related fair value of investments with unrealized losses and the aggregate amount of unrealized losses (that is, the amount by which amortized cost basis exceeds fair value).

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