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Derivatives and Hedging Activities (Tables)

9 Months Ended

Jun. 30, 2023

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, 2023 and September 30, 2022.

June 30, 2023			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			$	819,094		$	64,869					Other liabilities			$	819,094		$	65,772
Commercial loan fair value hedges			Other assets			39,661			2,341						Other liabilities			—			—
Mortgage loan fair value hedges			Other assets			670,000			40,707						Other liabilities			—			—
Borrowings cash flow hedges			Other assets			1,000,000			165,924						Other liabilities			—			—
						$	2,528,755		$	273,841								$	819,094		$	65,772

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

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, 2023 and September 30, 2022.

(In thousands)			June 30, 2023
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)			$	1,859,032		$	(42,457)
			$	1,859,032		$	(42,457)

(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, 2023, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $1,821,860,000, the cumulative basis adjustment associated with the hedging relationships was $(40,021,000), and the amount of the designated hedged items was $670,000,000.

(2) Includes the amortized cost basis of commercial loans designated in fair value hedging relationships. At June 30, 2023, the amortized cost basis of the hedged commercial loans was $37,172,000 and the cumulative basis adjustment associated with the hedging relationships was $(2,436,000).

(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).

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, 2023						Three Months Ended June 30, 2022
			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			$	232,167		$	(33,718)		$	149,113		$	(6,118)
Gain/(loss) on fair value hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives			$	4,348					$	(394)
Recognized on derivatives			13,223						8,325
Recognized on hedged items			(13,195)						(8,564)
Net income/(expense) recognized on fair value hedges			$	4,376					$	(633)
Gain/(loss) on cash flow hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives						$	10,639					$	21
Amount of derivative gain/(loss) reclassified from AOCI into interest income/expense						—						—
Net income/(expense) recognized on cash flow hedges						$	10,639					$	21

			Nine Months Ended June 30, 2023						Nine Months Ended June 30, 2022
			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			$	659,070		$	(80,877)		$	426,882		$	(21,486)
Gain/(loss) on fair value hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives			$	11,753					$	(2,964)
Recognized on derivatives			3,766						31,386
Recognized on hedged items			(3,367)						(31,625)
Net income/(expense) recognized on fair value hedges			$	12,152					$	(3,203)
Gain/(loss) on cash flow hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives						$	27,370					$	3,757
Amount of derivative gain/(loss) reclassified from AOCI into interest income/expense						—						—
Net income/(expense) recognized on cash flow hedges						$	27,370					$	3,757

Schedule of Impact of Derivative Instruments

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

(In thousands)			Three Months Ended June 30,
Amounts of gain/(loss) recognized in AOCI			2023			2022
Interest rate contracts:
Pay fixed/receive floating swaps on borrowings cash flow hedges			$	14,757		$	31,225
Total pre-tax gain/(loss) recognized in AOCI			$	14,757		$	31,225

(In thousands)			Nine Months Ended June 30,
Amounts of gain/(loss) recognized in AOCI			2023			2022
Interest rate contracts:
Pay fixed/receive floating swaps on borrowings cash flow hedges			$	(14,021)		$	93,994
Total pre-tax gain/(loss) recognized in AOCI			$	(14,021)		$	93,994

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			2023			2022
Interest rate contracts:
Pay fixed/receive floating swap			Other noninterest income			$	12,612		$	15,865
Receive fixed/pay floating swap			Other noninterest income			(13,538)			(15,865)
						$	(926)		$	—

(In thousands)						Nine Months Ended June 30,
Derivative instruments			Classification of gain/(loss) recognized in income on derivative instrument			2023			2022
Interest rate contracts:
Pay fixed/receive floating swap			Other noninterest income			$	(2,409)		$	54,202
Receive fixed/pay floating swap			Other noninterest income			1,509			(54,202)
						$	(900)		$	—

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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
-Section 50
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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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