DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

9 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Values of Derivative Financial Instruments as well as Their Classification on Statement of Financial Condition

The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the Statements of Financial Condition as of March 31, 2023 and June 30, 2022:

	March 31, 2023
	Asset Derivatives			Liability Derivatives
	Location	Fair Value		Location	Fair Value
	(In Thousands)
Derivatives designated as hedging instruments:
Interest rate contracts	Other assets	$	47,816	Other liabilities	$	7,847
Total		$	47,816		$	7,847

	June 30, 2022
	Asset Derivatives			Liability Derivatives
	Location	Fair Value		Location	Fair Value
	(In Thousands)
Derivatives designated as hedging instruments:
Interest rate contracts	Other assets	$	41,223	Other liabilities	$	—
Total		$	41,223		$	—

As of March 31, 2023, the following amounts were recorded on the Statement of Financial Condition related to cumulative basis adjustment for fair value hedges. There were no fair value hedges at June 30, 2022:

	March 31, 2023
	(In Thousands)
Loans receivable:
Carrying amount of the hedged assets(1)	$	500,653
Fair value hedging adjustment included in the carrying amount of the hedged assets	653

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(1)This amount includes the amortized cost basis of the closed portfolios of loans receivable used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolios anticipated to be outstanding for the designated hedge period. At March 31, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $845.5 million.

Pre-tax Effects of Derivative Instruments on Consolidated Statements of Income

The table below presents the pre-tax effects of the Company’s derivative instruments designated as cash flow hedges on the Consolidated Statements of Income for the three months and nine months ended March 31, 2023 and 2022:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2023		2022		2023		2022
	(In Thousands)
Amount of (loss) gain recognized in other comprehensive income	$	(8,936)	$	23,343	$	11,051	$	28,607
Amount of gain (loss) reclassified from accumulated other comprehensive income to interest expense	6,461		(1,268)		12,185		(4,271)

Derivative Instruments, Gain (Loss)

The table below presents the effects of the Company’s derivative instruments designated as fair value hedges on the Consolidated Statements of Income for the three months and nine months ended March 31, 2023. There were no fair value hedges for the three months and nine months ended March 31, 2022:

	Three Months Ended March 31,		Nine Months Ended March 31,
	2023		2023
	(In Thousands)
Gain on hedged items recorded in interest income on loans	$	5,681	$	653
(Loss) gain on hedge recorded in interest income on loans	(4,521)		589

Offsetting Derivatives

The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives in the Consolidated Statements of Financial Condition as of March 31, 2023 and June 30, 2022, respectively. The net amounts presented for derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Consolidated Statements of Financial Condition.

	March 31, 2023
							Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amounts Offset		Net Amounts Presented		Financial Instruments		Cash Collateral Received (Posted)		Net Amount
	(In Thousands)
Assets:
Interest rate contracts	$	50,397	$	(2,581)	$	47,816	$	—	$	—	$	47,816
Total	$	50,397	$	(2,581)	$	47,816	$	—	$	—	$	47,816
Liabilities:
Interest rate contracts	$	10,428	$	(2,581)	$	7,847	$	—	$	(6,130)	$	1,717
Total	$	10,428	$	(2,581)	$	7,847	$	—	$	(6,130)	$	1,717

	June 30, 2022
							Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amounts Offset		Net Amounts Presented		Financial Instruments		Cash Collateral Received (Posted)		Net Amount
	(In Thousands)
Assets:
Interest rate contracts	$	41,223	$	—	$	41,223	$	—	$	—	$	41,223
Total	$	41,223	$	—	$	41,223	$	—	$	—	$	41,223