Investment Securities

12 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

The tables below provide detail regarding the amortized cost and fair value of available-for-sale and held-to-maturity investment securities.


September 30, 2024	Amortized Cost		Gross Unrealized				Fair Value		Yield
			Gains		Losses
	($ in thousands)
Available-for-sale securities
U.S. government and agency securities due
Within 1 year	$	4,360	$	4	$	—	$	4,364	5.58	%
1 to 5 years	4,640		2		(124)		4,518		2.82
5 to 10 years	166,070		1,230		—		167,300		5.97
Over 10 years	137,799		394		(171)		138,022		6.29
Asset-backed securities due

1 to 5 years	11,466		—		(284)		11,182		6.04
5 to 10 years	9,631		—		(3)		9,628		6.20
Over 10 years	520,756		600		(2,041)		519,315		6.15




Corporate debt securities due
Within 1 year	45,024		—		(367)		44,657		4.61
1 to 5 years	99,244		977		—		100,221		5.39
5 to 10 years	112,029		—		(10,625)		101,404		3.87
Over 10 years	50,000		—		—		50,000		6.85
Municipal bonds due


5 to 10 years	5,689		—		(243)		5,446		3.00
Over 10 years	29,793		—		(166)		29,627		5.85
Mortgage-backed securities
Agency pass-through certificates	1,420,376		7,324		(40,675)		1,387,025		4.09

	2,616,877		10,531		(54,699)		2,572,709		4.87
Held-to-maturity securities







Mortgage-backed securities
Agency pass-through certificates	436,972		913		(36,839)		401,046		3.18

	436,972		913		(36,839)		401,046		3.18
	$	3,053,849	$	11,444	$	(91,538)	$	2,973,755	4.63	%


September 30, 2023	Amortized Cost		Gross Unrealized				Fair Value		Yield
			Gains		Losses
	($ in thousands)
Available-for-sale securities
U.S. government and agency securities due
Within 1 year	$	3,501	$	—	$	(36)	$	3,465	6.06	%
1 to 5 years	18,894		—		(563)		18,331		4.70
5 to 10 years	87,922		177		—		88,099		5.76
Over 10 years	106,340		831		(13)		107,158		5.84
Asset-backed securities due

1 to 5 years	18,579		—		(715)		17,864		6.06
5 to 10 years	36,875		2		(99)		36,778		6.11
Over 10 years	539,911		578		(7,115)		533,374		6.35




Corporate debt securities due
Within 1 year	—		—		—		—		—
1 to 5 years	151,893		895		(1,787)		151,001		5.14
5 to 10 years	113,221		—		(21,700)		91,521		3.87

Municipal bonds due


5 to 10 years	5,720		—		(701)		5,019		3.00
Over 10 years	29,832		361		(550)		29,643		5.85
Mortgage-backed securities
Agency pass-through certificates	1,005,928		66		(93,150)		912,844		3.39

	2,118,616		2,910		(126,429)		1,995,097		4.64
Held-to-maturity securities







Mortgage-backed securities
Agency pass-through certificates	423,586		—		(68,398)		355,188		2.88

	423,586		—		(68,398)		355,188		2.88
	$	2,542,202	$	2,910	$	(194,827)	$	2,350,285	4.35	%

The Company purchased $549,159,000 of available-for-sale investment securities and $47,092,000 held-to-maturity investment securities during 2024. Sales of available-for-sale securities totaled $182,682,000 and there were no sales of held-to-maturity investment securities in 2024. Substantially all mortgage-backed securities have contractual due dates that exceed 25 years.

The Company elected to exclude AIR from the amortized cost basis of debt securities disclosed throughout this footnote. For AFS securities, AIR totaled $9,311,000 and $8,641,000 as of September 30, 2024 and September 30, 2023, respectively. For HTM debt securities, AIR totaled $1,154,000 and $1,013,000 as of September 30, 2024 and September 30, 2023, respectively. AIR is included in the “interest receivable” line item on the Company’s consolidated statements of financial condition.

The following tables show the gross unrealized losses and fair value of securities as of September 30, 2024 and September 30, 2023, by length of time that individual securities in each category have been in a continuous loss position. There were 209 and 232 securities with an unrealized loss as of September 30, 2024 and September 30, 2023, 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 be impaired.


September 30, 2024	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	$	—	$	—	$	(10,993)	$	146,060	$	(10,993)	$	146,060
Municipal bonds	(15)		19,985		(394)		15,088		(409)		35,073
U.S. government and agency securities	—		—		—		—		—		—
Asset-backed securities	(249)		116,173		(2,373)		235,846		(2,622)		352,019
Mortgage-backed securities	(165)		103,283		(40,510)		728,968		(40,675)		832,251
	(429)		239,441		(54,270)		1,125,962		(54,699)		1,365,403
Held-to-maturity securities
Mortgage-backed securities	—		—		(36,839)		348,573		(36,839)		348,573
	$	(429)	$	239,441	$	(91,109)	$	1,474,535	$	(91,538)	$	1,713,976


September 30, 2023	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	$	—	$	—	$	(23,487)	$	167,452	$	(23,487)	$	167,452
Municipal bonds due	—		—		(1,250)		14,302		(1,250)		14,302
U.S. government and agency securities	(13)		14,917		(599)		21,795		(612)		36,712
Asset-backed securities	(2,142)		86,800		(5,788)		445,454		(7,930)		532,254
Mortgage-backed securities	(2,030)		142,235		(91,120)		744,010		(93,150)		886,245
	(4,185)		243,952		(122,244)		1,393,013		(126,429)		1,636,965
Held-to-maturity securities
Mortgage-backed securities	(15)		1,424		(68,383)		353,764		(68,398)		355,188
	$	(4,200)	$	245,376	$	(190,627)	$	1,746,777	$	(194,827)	$	1,992,153

Substantially all of the Company’s held-to-maturity debt securities are issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government and have a long history of zero credit loss. Therefore, the Company did not record an allowance for credit losses for these securities as of September 30, 2024 or September 30, 2023. The Company does not consider HTM investments to have any credit impairment.

The Company does not believe that the available-for-sale debt securities that were in an unrealized loss position have any credit loss impairment as of September 30, 2024 or September 30, 2023. The Company does not intend to sell the investment securities that were in an unrealized loss position and it is not more likely than not that the Company will be required to sell the investment securities before recovery of their amortized cost basis, which may be at maturity. Available-for-sale debt securities issued by U.S. government agencies or U.S. government-sponsored enterprises carry the explicit and/or implicit guarantee of the U.S. government and have a long history of zero credit loss. Corporate debt securities and municipal bonds are considered to have an issuer of high credit quality and the decline in fair value is due to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payments on the bonds. The fair value is expected to recover as the bonds approach maturity.