FAIR VALUE MEASUREMENTS

12 Months Ended

Sep. 30, 2025

FASB ASC 820, Fair Value Measurement ("ASC 820") defines fair value as the exchange price that would be received for an asset

or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly

transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an

entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The

standard describes three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active exchange markets that the entity has the

ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities,

quoted prices in markets that are not active and other inputs that are observable or can be corroborated by observable

market data.

Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market

participants would use in pricing an asset or liability.

The Company has established and documented the process for determining the fair values of its assets and liabilities, where

applicable. Fair value is based on quoted market prices, when available, for identical or similar assets or liabilities. In the absence of

quoted market prices, fair value is determined using valuation models or third-party appraisals. The following is a description of the

valuation methodologies used to measure and report the fair value of financial assets and liabilities on a recurring or nonrecurring

basis.

Measured on a Recurring Basis

Available-for-sale investment securities and derivative contracts

Securities available for sale are recorded at fair value on a recurring basis. The fair value of debt securities are priced using model

pricing based on the securities' relationship to other benchmark quoted prices as provided by an independent third party, and under

GAAP are considered a Level 2 input method. Securities that are traded on active exchanges, including the Company's equity

securities, are measured using the closing price in an active market and are considered a Level 1 input method.

The Company offers interest rate swaps to its variable rate borrowers who want to manage their interest rate risk. At the same time,

the Company enters into the opposite trade with a counterparty to offset its interest rate risk. The Company has also entered various

forms of fair value hedges and cash flow hedges using interest rate swaps. The fair value of these interest rate swaps are estimated

by a third party pricing service using a discounted cash flow technique. These are considered a Level 2 input method.

The following tables present the balance and level in the fair value hierarchy for assets and liabilities that are measured at fair value

on a recurring basis (with the exception of those measured using the NAV practical expedient).


	September 30, 2025
	Level 1	Level 2	Level 3	Total
	(In thousands)
Available-for-sale securities
U.S. government and agency securities	$—	$235,919	$—	$235,919
Asset-backed securities	—	506,334		506,334
Municipal bonds	—	35,258	—	35,258
Corporate debt securities	—	152,537	—	152,537
Mortgage-backed securities
Agency pass-through certificates	—	2,603,153	—	2,603,153
Total Available-for-sale securities	—	3,533,201	—	3,533,201
Client swap program hedges	—	37,347	—	37,347
Commercial loan hedges	—	1,611	—	1,611
Mortgage loan fair value hedges	—	13,082	—	13,082
Borrowings cash flow hedges	—	99,231	—	99,231
Total Financial Assets	$—	$3,684,472	$—	$3,684,472

Financial Liabilities
Client swap program hedges	$—	$37,818	$—	$37,818
Mortgage backed securities fair value hedges	—	15,086	—	15,086
Mortgage loan fair value hedges	—	20,426	—	20,426
Total Financial Liabilities	$—	$73,330	$—	$73,330


	September 30, 2024
	Level 1	Level 2	Level 3	Total
	(In thousands)
Available-for-sale securities
U.S. government and agency securities	$—	$314,204	$—	$314,204
Asset-backed securities	—	540,125	—	540,125
Municipal bonds	—	35,073	—	35,073
Corporate debt securities	—	296,282	—	296,282
Mortgage-backed securities
Agency pass-through certificates	—	1,387,025	—	1,387,025
Total Available-for-sale securities	—	2,572,709	—	2,572,709
Client swap program hedges	—	46,758	—	46,758
Commercial loan fair value hedges	—	1,595	—	1,595
Borrowings cash flow hedges	—	117,271	—	117,271
Total Financial Assets	$—	$2,738,333	$—	$2,738,333

Financial Liabilities
Client swap program hedges	$—	$47,388	$—	$47,388
Mortgage loan fair value hedges	—	667	—	667
Total Financial Liabilities	$—	$48,055	$—	$48,055

There were no transfers between, into and/or out of Level 1, 2 or 3 during the year ended September 30, 2025 or September 30,

2024.

Measured on a Nonrecurring Basis

Certain assets and liabilities are measured at fair value on a nonrecurring basis after initial recognition such as collateral dependent

loans and real estate owned ("REO"). REO consists principally of properties acquired through foreclosure. From time to time, and

on a nonrecurring basis, adjustments using fair value measurements are recorded to reflect increases or decreases based on the

discounted cash flows, the current appraisal or estimated value of the collateral or REO property.

When management determines that the fair value of the collateral or the REO requires additional adjustments, either as a result of an

updated appraised value or when there is no observable market price, the Company classifies the collateral dependent loan or real

estate owned as Level 3. Level 3 assets recorded at fair value on a nonrecurring basis includes loans for which an allowance was

established or a partial charge-off was recorded based on the fair value of collateral, as well as real estate owned where the fair value

of the property was less than the cost basis.

The following tables present the aggregated balance of assets that were measured at fair value on a nonrecurring basis for the

periods presented, and the total losses resulting from those fair value adjustments during the respective periods. The estimated fair

value measurements are shown gross of estimated selling costs.


	September 30, 2025					Twelve Months Ended September 30, 2025
	Level 1	Level 2	Level 3	Total	Total Gains (Losses)
	(In thousands)
Loans receivable (1)	$—	$—	$32,748	$32,748		$(12,056)
Real estate owned (2)	—	—	4,810	4,810		(670)
Balance at end of period	$—	$—	$37,558	$37,558		$(12,726)

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

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


	September 30, 2024					Twelve Months Ended September 30, 2024
	Level 1	Level 2	Level 3	Total	Total Gains (Losses)
	(In thousands)
Loans receivable (1)	$—	$—	$4,345	$4,345		$(3,225)
Real estate owned (2)	—	—	1,460	1,460		(1,910)
Balance at end of period	$—	$—	$5,805	$5,805		$(5,135)

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

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

At September 30, 2025, there was $290,000 in foreclosed residential real estate properties held as REO. The recorded investment of

consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process was

$4,090,000.

Fair Values of Financial Instruments

U. S. GAAP requires disclosure of fair value information about financial instruments, whether or not recognized on the statement of

financial condition, for which it is practicable to estimate those values. Certain financial instruments and all non-financial

instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value estimates presented do not reflect

the underlying fair value of the Company. 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.


		September 30, 2025		September 30, 2024
	Level	Carrying Amount	Estimated Fair Value	Carrying Amount	Estimated Fair Value
		(In thousands)
Financial assets
Cash and cash equivalents	1	$657,310	$657,310	$2,381,102	$2,381,102
Available-for-sale securities:
U.S. government and agency securities	2	235,919	235,919	314,204	314,204
Asset-backed securities	2	506,334	506,334	540,125	540,125
Municipal bonds	2	35,258	35,258	35,073	35,073
Corporate debt securities	2	152,537	152,537	296,282	296,282
Mortgage-backed securities
Agency pass-through certificates	2	2,603,153	2,603,153	1,387,025	1,387,025
Total available-for-sale securities		3,533,201	3,533,201	2,572,709	2,572,709
Held-to-maturity securities:
Mortgage-backed securities
Agency pass-through certificates	2	645,802	612,739	436,972	401,046
Total held-to-maturity securities		645,802	612,739	436,972	401,046

Loans receivable	3	20,088,618	19,681,909	20,916,354	20,269,059
FHLB stock	2	88,068	88,068	95,617	95,617
Other assets - client swap program hedges	2	37,347	37,347	46,758	46,758
Other assets - commercial loan fair value hedges	2	1,611	1,611	1,595	1,595
Other assets - mortgage loan fair value hedges	2	13,082	13,082	—	—
Other assets - borrowings cash flow hedges	2	99,231	99,231	117,271	117,271

Financial liabilities
Time deposits	2	9,131,104	9,121,470	9,556,785	9,787,187
Borrowings	2	1,765,604	1,755,130	3,267,589	3,276,122
Junior subordinated deferrable interest debentures	3	51,645	50,925	50,718	50,240
Other liabilities - client swap program hedges	2	37,818	37,818	47,388	47,388
Other liabilities - mortgage backed securities fair value hedges	2	15,086	15,086	—	—
Other liabilities - mortgage loan fair value hedges	2	20,426	20,426	667	667

The following methods and assumptions were used to estimate the fair value of financial instruments:

Cash and cash equivalents – The carrying amount of these items is a reasonable estimate of their fair value.

Available-for-sale securities and held-to-maturity securities – Securities at fair value are primarily priced using model pricing based

on the securities' relationship to other benchmark quoted prices as provided by an independent third party and are considered a

Level 2 input method.

Loans receivable – Fair values are estimated first by stratifying the portfolios of loans with similar financial characteristics. Loans

are segregated by type such as multi-family real estate, residential mortgage, construction, commercial, consumer and land loans.

Each loan category is further segmented into fixed- and adjustable-rate interest terms. For residential mortgages and multi-family

loans, the bank determined that its best exit price was by securitization. MBS benchmark prices are used as a base price, with further

loan level pricing adjustments made based on individual loan characteristics such as FICO score, LTV, Property Type and

occupancy. For all other loan categories an estimate of fair value is then calculated based on discounted cash flows using a discount

rate offered and observed in the market on similar products, plus an adjustment for liquidity to reflect the non-homogeneous nature

of the loans, as well as an annual loss rate based on historical losses to arrive at an estimated exit price fair value. Fair value for

impaired loans is also based on recent appraisals or estimated cash flows discounted using rates commensurate with risk associated

with the estimated cash flows. Assumptions regarding credit risk, cash flows and discount rates are judgmentally determined using

available market information and specific borrower information.

FHLB stock – The fair value is based upon the par value of the stock which equates to its carrying value.

Time deposits – The fair value of fixed-maturity time deposits is estimated by discounting the estimated future cash flows using the

rates currently offered for deposits with similar remaining maturities.

Borrowings – The fair value of FHLB advances and FRB borrowings is estimated by discounting the estimated future cash flows

using rates currently available to the Company for debt with similar remaining maturities.

Junior subordinated deferrable interest debentures - The fair value of junior subordinated debentures is estimated using an income

approach valuation technique. The significant unobservable input utilized in the estimation of fair value of these instruments is the

credit risk adjusted spread. The credit risk adjusted spread represents the nonperformance risk of the liability, contemplating the

inherent risk of the obligation. The ending carrying (fair) value of the junior subordinated debentures measured at fair value

represents the estimated amount that would be paid to transfer these liabilities in an orderly transaction amongst market participants.

Due to credit concerns in the capital markets and inactivity in the trust preferred markets that have limited the observability of

market spreads, the Company has classified this as a Level 3 fair value measurement.

Interest rate swaps – The Company offers interest rate swaps to its variable rate borrowers who want to manage their interest rate

risk. At the same time, the Bank enters into the opposite trade with a counterparty to offset its interest rate risk. The Company also

uses interest rate swaps for various fair value hedges and cash flow hedges. The fair value of interest rate swaps are estimated by a

third-party pricing service using a discounted cash flow technique.