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Derivatives and Hedging Activities (Tables)
 9 Months Ended
Jun. 30, 2022
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 June 30, 2022 and September 30, 2021.

June 30, 2022Derivative AssetsDerivative Liabilities
Interest rate contract purposeBalance Sheet LocationNotionalFair ValueBalance Sheet LocationNotionalFair Value
(In thousands)(In thousands)
Client swap program hedgesOther assets$565,380 $43,219 Other liabilities$565,380 $43,219 
Commercial loan fair value hedgesOther assets42,209 1,153 Other liabilities— — 
Mortgage loan fair value hedgesOther assets470,000 26,415 Other liabilities— — 
Borrowings cash flow hedgesOther assets1,000,000 136,436 Other liabilities— — 
$2,077,589 $207,223 $565,380 $43,219 

September 30, 2021Derivative AssetsDerivative Liabilities
Interest rate contract purposeBalance Sheet LocationNotionalFair ValueBalance Sheet LocationNotionalFair Value
(In thousands)(In thousands)
Client swap program hedgesOther assets$644,355 $10,983 Other liabilities$644,355 $10,983 
Commercial loan fair value hedgesOther assets— — Other liabilities44,678 2,177 
Mortgage loan fair value hedgesOther assets— — Other liabilities470,000 1,641 
Borrowings cash flow hedgesOther assets1,000,000 42,442 Other liabilities— — 
$1,644,355 $53,425 $1,159,033 $14,801 
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 June 30, 2022 and September 30, 2021.
(In thousands)June 30, 2022
Balance sheet line item in which hedged item is recordedCarrying value of hedged itemsCumulative gain (loss) fair value hedge adjustment included in carrying amount of hedged items
Loans receivable (1) (2)$1,210,272 $(27,410)
$1,210,272 $(27,410)

(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 June 30, 2022, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $1.2 billion, the cumulative basis adjustment associated with the hedging relationships was $(26.2) million, and the amount of the designated hedged items was $470 million. During the year ended September 30, 2021, hedge accounting was discontinued on $30 million (30%) of a $100
million last of layer hedge. At June 30, 2022, there is $1.0 million of remaining unamortized basis adjustment associated with the terminated portion of the hedge and it will be recognized 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 June 30, 2022, the amortized cost basis of the hedged commercial loans was $41 million and the cumulative basis adjustment associated with the hedging relationships was $(1.2) million.


(In thousands)September 30, 2021
Balance sheet line item in which hedged item is recordedCarrying value of hedged itemsCumulative gain (loss) fair value hedge adjustment included in carrying amount of hedged items
Loans receivable (1) (2)$1,515,487 $4,215 
$1,515,487 $4,215 

(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, 2021, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $1.5 billion, the cumulative basis adjustment associated with the hedging relationships was $1.9 million, and the amount of the designated hedged items was $470 million. During the year ended September 30, 2021, hedge accounting was discontinued on $30 million (30%) of a $100 million last of layer hedge.

(2) Includes the amortized cost basis of commercial loans designated in fair value hedging relationships. At September 30, 2021, the amortized cost basis of the hedged commercial loans was $47 million and the cumulative basis adjustment associated with the hedging relationships was $2.4 million. During the year ended September 30, 2021, hedge accounting was discontinued on a $46 million commercial loan hedge.
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 June 30, 2022Three Months Ended June 30, 2021
Interest income on loans receivableInterest expense on FHLB advancesInterest income on loans receivableInterest expense on FHLB advances
(In thousands)(In thousands)
Interest income/(expense), including the effects of fair value and cash flow hedges$149,113 $(6,118)$134,193 $(9,937)
Gain/(loss) on fair value hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives$(394)$(1,582)
Recognized on derivatives8,325 (6,262)
Recognized on hedged items(8,564)6,292 
Net income/(expense) recognized on fair value hedges$(633)$(1,552)
Gain/(loss) on cash flow hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives$21 $2,182 
Amount of derivative gain/(loss) reclassified from AOCI into interest income/expense— — 
Net income/(expense) recognized on cash flow hedges$21 $2,182 
Nine Months Ended June 30, 2022Nine Months Ended June 30, 2021
Interest income on loans receivableInterest expense on FHLB advancesInterest income on loans receivableInterest expense on FHLB advances
(In thousands)(In thousands)
Interest income/(expense), including the effects of fair value and cash flow hedges$426,882 $(21,486)$400,621 $(35,126)
Gain/(loss) on fair value hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives$(2,964)$(4,686)
Recognized on derivatives31,386 15,816 
Recognized on hedged items(31,625)(15,541)
Net income/(expense) recognized on fair value hedges$(3,203)$(4,411)
Gain/(loss) on cash flow hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives$3,757 $8,846 
Amount of derivative gain/(loss) reclassified from AOCI into interest income/expense— 14,110 
Net income/(expense) recognized on cash flow hedges$3,757 $22,956 
Schedule of Impact of Derivative Instruments
The following tables present the gain (loss) recognized in AOCI on derivative instruments related to cash flow hedges on borrowings for the periods presented, as well as the effect of reclassification adjustments.

(In thousands)Three Months Ended June 30,
Amounts recognized in AOCI20222021
Interest rate contracts:
Pay fixed/receive floating swaps on borrowings cash flow hedges$31,225 $(23,485)
Reclassification adjustment of net (gain)/loss included in net income— — 
Total pre-tax gain/(loss) recognized in AOCI $31,225 $(23,485)

(In thousands)Nine Months Ended June 30,
Amounts recognized in AOCI20222021
Interest rate contracts:
Pay fixed/receive floating swaps on borrowings cash flow hedges$93,994 $67,198 
Reclassification adjustment of net (gain)/loss included in net income— (14,110)
Total pre-tax gain/(loss) recognized in AOCI $93,994 $53,088 
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 June 30,
Derivative instrumentsClassification of gain/(loss) recognized in income on derivative instrument20222021
Interest rate contracts:
Pay fixed/receive floating swapOther noninterest income$15,865 $10,814 
Receive fixed/pay floating swapOther noninterest income(15,865)(10,814)
$— $—