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Derivatives and Hedging Activities (Tables)

6 Months Ended

Mar. 31, 2025

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, 2025 and September 30, 2024.

March 31, 2025			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			$	1,027,728		$	47,257					Other liabilities			$	1,027,728		$	47,816
Commercial loan fair value hedges			Other assets			34,341			1,989						Other liabilities			—			—
Mortgage loan fair value hedges			Other assets			1,570,000			6,876						Other liabilities						—
Mortgage backed securities fair value hedges			Other assets			—			—						Other liabilities			400,000			8,682
Borrowings cash flow hedges			Other assets			900,000			120,666						Other liabilities			—			—
						$	3,532,069		$	176,788								$	1,427,728		$	56,498

September 30, 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			$	1,044,512		$	46,758					Other liabilities			$	1,044,512		$	47,388
Commercial loan fair value hedges			Other assets			37,042			1,595						Other liabilities			—			—
Mortgage loan fair value hedges			Other assets			—			—						Other liabilities			2,570,000			667
Borrowings cash flow hedges			Other assets			900,000			117,271						Other liabilities			—			—
						$	1,981,554		$	165,624								$	3,614,512		$	48,055

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, 2025 and September 30, 2024.

(In thousands)			March 31, 2025
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)			$	5,674,948		$	(7,814)
Available-for-sale securities, at fair value (3)			$	590,587		$	8,901
			$	6,265,535		$	1,087

(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, 2025, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $5,642,530,000, the cumulative basis adjustment associated with the hedging relationships was $(5,937,000), and the amount of the designated hedged items was $1,570,000,000.

(2) Includes the amortized cost basis of commercial loans designated in fair value hedging relationships. At March 31, 2025, the amortized cost basis of the hedged commercial loans was $32,418,000 and the cumulative basis adjustment associated with the hedging relationships was $(1,877,000).

(3) Includes the fair value basis of mortgage backed securities designated in fair value hedging relationships. At March 31, 2025, the fair value of the hedged mortgage based securities was $590,587,000, the cumulative basis adjustment associated with the hedging relationships was $8,901,000, and the amount of the designated hedged items was $400,000,000.

(In thousands)			September 30, 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)			$	7,287,540		$	20,005
			$	7,287,540		$	20,005

(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, 2024, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $7,252,017,000, the cumulative basis adjustment associated with the hedging relationships was $21,476,000, and the amount of the designated hedged items was $2,570,000,000. During fiscal 2024, hedge accounting was discontinued on a $300,000,000 last of layer hedge. A basis adjustment of $1,232,211 associated with the terminated portion of the hedge was deferred and is being accreted over the remaining life of the associated pool of loans.

(2) Includes the amortized cost basis of commercial loans designated in fair value hedging relationships. At September 30, 2024, the amortized cost basis of the hedged commercial loans was $35,523,000 and the cumulative basis adjustment associated with the hedging relationships was $(1,471,000).

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 March 31,
Amount of gain/(loss) recognized in AOCI on derivatives in cash flow hedging relationships			2025			2024
Interest rate contracts:
Pay fixed/receive floating swaps on borrowings cash flow hedges			$	(18,270)		$	10,742
Reclassification adjustment of net (gain)/loss included in net income			65			—
Total pre-tax gain/(loss) recognized in AOCI			$	(18,205)		$	10,742

(In thousands)			Six Months Ended March 31,
Amount of gain/(loss) recognized in AOCI on derivatives in cash flow hedging relationships			2025			2024
Interest rate contracts:
Pay fixed/receive floating swaps on borrowings cash flow hedges			$	3,325		$	(29,785)
Reclassification adjustment of net (gain)/loss included in net income			70			—
Total pre-tax gain/(loss) recognized in AOCI			$	3,395		$	(29,785)

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			2025			2024
Interest rate contracts:
Pay fixed/receive floating swap			Other noninterest income			$	(11,496)		$	11,014
Receive fixed/pay floating swap			Other noninterest income			11,561			(11,008)
						$	65		$	6

(In thousands)						Six Months Ended March 31,
Derivative instruments			Classification of gain/(loss) recognized in income on derivative instrument			2025			2024
Interest rate contracts:
Pay fixed/receive floating swap			Other noninterest income			$	8,689		$	(17,695)
Receive fixed/pay floating swap			Other noninterest income			(8,619)			17,809
						$	70		$	114

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, 2025									Three Months Ended March 31, 2024
			Interest income on loans receivable			Interest on Mortgage-backed securities			Interest expense on FHLB advances			Interest income on loans receivable			Interest on Mortgage-backed securities			Interest expense on FHLB advances
			(In thousands)									(In thousands)
Interest income/(expense), including the effects of fair value and cash flow hedges			$	282,077		$	23,926		$	(23,226)		$	274,341		$	12,905		$	(44,065)
Gain/(loss) on fair value hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives			$	4,988		$	116					$	8,517		$	—
Recognized on derivatives			(20,773)			$	(8,682)					15,515			—
Recognized on hedged items			19,616			8,901						(16,385)			—
Net income/(expense) recognized on fair value hedges			$	3,831		$	335					$	7,647		$	—
Gain/(loss) on cash flow hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives									$	8,573								$	11,714
Amount of derivative gain/(loss) reclassified from AOCI into interest income/expense									—									—
Net income/(expense) recognized on cash flow hedges									$	8,573								$	11,714

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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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