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Derivatives and Hedging Activities (Tables)

6 Months Ended

Mar. 31, 2024

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 March 31, 2024 and September 30, 2023.

March 31, 2024			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			$	938,116		$	63,264					Other liabilities			$	938,116		$	64,020
Commercial loan fair value hedges			Other assets			37,042			2,509						Other liabilities			—			—
Mortgage loan fair value hedges			Other assets			3,070,000			56,093						Other liabilities			—			—
Borrowings cash flow hedges			Other assets			1,000,000			154,588						Other liabilities			—			—
						$	5,045,158		$	276,454								$	938,116		$	64,020

September 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			$	806,744		$	78,797					Other liabilities			$	806,744		$	79,668
Commercial loan fair value hedges			Other assets			39,661			3,405						Other liabilities			—			—
Mortgage loan fair value hedges			Other assets			670,000			46,396						Other liabilities			—			—
Borrowings cash flow hedges			Other assets			1,000,000			184,373						Other liabilities			—			—
						$	2,516,405		$	312,971								$	806,744		$	79,668

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 March 31, 2024 and September 30, 2023.

(In thousands)			March 31, 2024
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)			$	8,040,874		$	(39,639)
			$	8,040,874		$	(39,639)

(1) Includes the amortized cost basis of the closed mortgage loan portfolios used to designate the hedging relationships in which the hedged items are a portfolio layer expected to be remaining at the end of the hedging relationships. At March 31, 2024, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $8,006,330,000, the cumulative basis adjustment associated with the hedging relationships was $(37,192,000), and the amount of the designated hedged items was $3,070,000,000.

(2) Includes the amortized cost basis of commercial loans designated in fair value hedging relationships. At March 31, 2024, the amortized cost basis of the hedged commercial loans was $34,544,000 and the cumulative basis adjustment associated with the hedging relationships was $(2,447,000).

(In thousands)			September 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)			$	1,816,870		$	(48,865)
			$	1,816,870		$	(48,865)

(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, 2023, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $1,780,503,000, the cumulative basis adjustment associated with the hedging relationships was $(45,622,000), 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 September 30, 2023, the amortized cost basis of the hedged commercial loans was $36,367,000 and the cumulative basis adjustment associated with the hedging relationships was $(3,243,000).

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)			Three Months Ended March 31,
Amount of gain/(loss) recognized in AOCI on derivatives in cash flow hedging relationships			2024			2023
Interest rate contracts:
Pay fixed/receive floating swaps on borrowings cash flow hedges			$	10,742		$	(21,972)
Total pre-tax gain/(loss) recognized in AOCI			$	10,742		$	(21,972)

(In thousands)			Six Months Ended March 31,
Amount of gain/(loss) recognized in AOCI on derivatives in cash flow hedging relationships			2024			2023
Interest rate contracts:
Pay fixed/receive floating swaps on borrowings cash flow hedges			$	(29,785)		$	(28,778)
Total pre-tax gain/(loss) recognized in AOCI			$	(29,785)		$	(28,778)

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 March 31,
Derivative instruments			Classification of gain/(loss) recognized in income on derivative instrument			2024			2023
Interest rate contracts:
Pay fixed/receive floating swap			Other noninterest income			$	11,014		$	(11,143)
Receive fixed/pay floating swap			Other noninterest income			(11,008)			11,169
						$	6		$	26

(In thousands)						Six Months Ended March 31,
Derivative instruments			Classification of gain/(loss) recognized in income on derivative instrument			2024			2023
Interest rate contracts:
Pay fixed/receive floating swap			Other noninterest income			$	(17,695)		$	(15,021)
Receive fixed/pay floating swap			Other noninterest income			17,809			15,047
						$	114		$	26

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 March 31, 2024						Three Months Ended March 31, 2023
			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			$	274,341		$	(44,065)		$	222,957		$	(28,185)
Gain/(loss) on fair value hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives			$	8,517					$	4,237
Recognized on derivatives			15,515						(6,608)
Recognized on hedged items			(16,385)						6,696
Net income/(expense) recognized on fair value hedges			$	7,647					$	4,325
Gain/(loss) on cash flow hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives						$	11,714					$	9,457
Amount of derivative gain/(loss) reclassified from AOCI into interest income/expense						—						—
Net income/(expense) recognized on cash flow hedges						$	11,714					$	9,457

			Six Months Ended March 31, 2024						Six Months Ended March 31, 2023
			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			$	520,133		$	(82,003)		$	426,903		$	(47,159)
Gain/(loss) on fair value hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives			$	14,010					$	7,404
Recognized on derivatives			(9,981)						(9,457)
Recognized on hedged items			9,225						9,828
Net income/(expense) recognized on fair value hedges			$	13,254					$	7,775
Gain/(loss) on cash flow hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives						$	23,561					$	16,731
Amount of derivative gain/(loss) reclassified from AOCI into interest income/expense						—						—
Net income/(expense) recognized on cash flow hedges						$	23,561					$	16,731

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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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-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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