XML 63 R22.htm IDEA: XBRL DOCUMENT v3.22.4
Fair Value Measurements (Tables)
 3 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value of Assets Measured on Recurring Basis
The following tables present the balance and level in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis.
 December 31, 2022
 Level 1Level 2Level 3Total
 (In thousands)
Financial Assets
Available-for-sale securities:
U.S. government and agency securities$— $99,889 $— $99,889 
Asset-backed securities— 696,572 — 696,572 
Municipal bonds— 35,054 — 35,054 
Corporate debt securities— 316,487 — 316,487 
Mortgage-backed securities
Agency pass-through certificates— 911,835 — 911,835 
Total available-for-sale securities— 2,059,837 — 2,059,837 
Client swap program hedges— 63,383 — 63,383 
Commercial loan fair value hedges— 2,446 — 2,446 
Mortgage loan fair value hedges— 33,986 — 33,986 
Borrowings cash flow hedges— 173,139 — 173,139 
Total financial assets$— $2,332,791 $— $2,332,791 
Financial Liabilities
Client swap program hedges$— $63,383 $— $63,383 
Total financial liabilities$— $63,383 $— $63,383 
 September 30, 2022
 Level 1Level 2Level 3Total
 (In thousands)
Financial Assets
Available-for-sale securities:
U.S. government and agency securities$— $39,354 $— $39,354 
Asset-backed securities— 767,001 767,001 
Municipal bonds— 34,962 — 34,962 
Corporate debt securities— 313,757 — 313,757 
Mortgage-backed securities
Agency pass-through certificates— 895,963 — 895,963 
Total available-for-sale securities— 2,051,037 — 2,051,037 
Client swap program hedges— 67,260 — 67,260 
Commercial loan fair value hedges— 2,517 — 2,517 
Mortgage loan fair value hedges— 36,765 — 36,765 
Borrowings cash flow hedges— 179,945 — 179,945 
Total financial assets$— $2,337,524 $— $2,337,524 
Financial Liabilities
Client swap program hedges$— $67,260 $— $67,260 
Total financial liabilities$— $67,260 $— $67,260 
Fair Value of Assets Measured on Nonrecurring Basis
The following tables present the aggregated balance of assets that were measured at fair value on a nonrecurring basis at December 31, 2022 and December 31, 2021, and the total gains (losses) resulting from those fair value adjustments during the respective periods. The estimated fair value measurements are shown gross of estimated selling costs.
 
 December 31, 2022Three Months Ended December 31, 2022
 Level 1Level  2Level  3TotalTotal Gains (Losses)
 (In thousands)(In thousands)
Loans (1)$— $— $— $— $(123)
Real estate owned (2)— — — — — 
Balance at end of period$— $— $— $— $(123)

(1)The gains (losses) represent re-measurements of collateral-dependent loans.
(2)The gains (losses) represent aggregate write-downs and charge-offs on real estate owned.
December 31, 2021Three Months Ended December 31, 2021
Level 1Level  2Level  3TotalTotal Gains (Losses)
(In thousands)(In thousands)
Loans (1)$— $— $202 $202 $(89)
Real estate owned (2)— — 1,390 1,390 (504)
Balance at end of period$— $— $1,592 $1,592 $(593)

(1)The gains (losses) represent re-measurements of collateral-dependent loans.
(2)The gains (losses) represent aggregate write-downs and charge-offs on real estate owned.
Fair Value of Financial Instruments by Balance Sheet Grouping 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.
 December 31, 2022September 30, 2022
 Level in Fair Value HierarchyCarrying
Amount		Estimated
Fair Value		Carrying
Amount		Estimated
Fair Value
 ($ in thousands)
Financial assets
Cash and cash equivalents1$645,862 $645,862 $683,965 $683,965 
Available-for-sale securities
U.S. government and agency securities299,889 99,889 39,354 39,354 
Asset-backed securities2696,572 696,572 767,001 767,001 
Municipal bonds235,054 35,054 34,962 34,962 
Corporate debt securities2316,487 316,487 313,757 313,757 
Mortgage-backed securities
Agency pass-through certificates2911,835 911,835 895,963 895,963 
Total available-for-sale securities2,059,837 2,059,837 2,051,037 2,051,037 
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates2453,443 402,055 463,299 406,860 
Total held-to-maturity securities453,443 402,055 463,299 406,860 
Loans receivable316,993,588 16,310,687 16,113,564 15,417,635 
FHLB and FRB stock2133,073 133,073 95,073 95,073 
        Other assets - client swap program hedges263,383 63,383 67,260 67,260 
        Other assets - commercial fair value loan hedges22,446 2,446 2,517 2,517 
        Other assets - mortgage loan fair value hedges233,986 33,986 36,765 36,765 
        Other assets - borrowings cash flow hedges2173,139 173,139 179,945 179,945 
Financial liabilities
Time deposits23,412,203 3,329,708 3,338,043 3,249,169 
FHLB advances23,075,000 3,067,487 2,125,000 1,940,813 
        Other liabilities - client swap program hedges263,383 63,383 67,260 67,260 
Reconciliation of Amortized Cost to Fair Value of Available-for-Sale and Held-to-Maturity Securities The following tables provide details about the amortized cost and fair value of available-for-sale and held-to-maturity securities.
 December 31, 2022
 Amortized
Cost		Gross UnrealizedFair
Value		Yield
 GainsLosses
 ($ in thousands)
Available-for-sale securities
U.S. government and agency securities due
1 to 5 years$36,531 $— $(925)$35,606 4.33 %
Over 10 years64,060 223 — 64,283 3.90 
Asset-backed securities
1 to 5 years21,033 — (1,524)19,509 4.58 
5 to 10 years67,783 — (1,025)66,758 5.01 
Over 10 years627,579 365 (17,639)610,305 5.12 
Corporate debt securities due
Within 1 year75,000 29 (212)74,817 5.08 
1 to 5 years151,531 232 (3,435)148,328 4.49 
5 to 10 years114,116 — (20,774)93,342 3.87 
Municipal bonds due
5 to 10 years5,743 — (360)5,383 3.00 
Over 10 years29,861 350 (540)29,671 5.85 
Mortgage-backed securities
Agency pass-through certificates985,480 11 (73,656)911,835 2.98 
2,178,717 1,210 (120,090)2,059,837 3.99 
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates453,443 23 (51,411)402,055 2.88 
453,443 23 (51,411)402,055 2.88 
$2,632,160 $1,233 $(171,501)$2,461,892 3.80 %
 
 September 30, 2022
 Amortized
Cost		Gross UnrealizedFair
Value		Yield
 GainsLosses
 ($ in thousands)
Available-for-sale securities
U.S. government and agency securities due
1 to 5 years$40,403 $— $(1,049)$39,354 3.03 %
Asset-backed securities
1 to 5 years22,527 — (1,141)21,386 3.27 
5 to 10 years82,962 4 (547)82,419 3.53 
Over 10 years668,482 783 (6,069)663,196 3.86 
Corporate debt securities due
Within 1 year75,000 4 (200)74,804 3.74 
1 to 5 years151,411 — (2,748)148,663 3.59 
5 to 10 years114,414 — (24,124)90,290 3.87 
Municipal bonds due
5 to 10 years5,751 — (361)5,390 3.00 
Over 10 years29,871 400 (699)29,572 5.85 
Mortgage-backed securities
Agency pass-through certificates971,916 117 (76,070)895,963 2.81 
2,162,737 1,308 (113,008)2,051,037 3.36 
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates463,299 22 (56,461)406,860 2.88 
463,299 22 (56,461)406,860 2.88 
$2,626,036 $1,330 $(169,469)$2,457,897 3.28 %
Schedule of Debt Securities, Available-for-Sale The following tables show the gross unrealized losses and fair value of securities as of December 31, 2022 and September 30, 2022, by length of time that individual securities in each category have been in a continuous loss position. There were 227 and 223 securities with an unrealized loss as of December 31, 2022 and September 30, 2022, respectively. The decline in fair value since purchase is attributable to changes in interest rates. Because the Company does not intend to sell these securities and does not consider it more likely than not that it will be required to sell these securities before the recovery of amortized cost basis, which may be upon maturity, the Company does not consider these investments to have any credit impairment.
 
December 31, 2022Less than 12 months12 months or moreTotal
 Unrealized
Gross Losses		Fair
Value		Unrealized
Gross Losses		Fair
Value		Unrealized
Gross Losses		Fair
Value
 (In thousands)
Available-for-sale securities
Corporate debt securities$(24,421)$217,278 $— $— $(24,421)$217,278 
Municipal bonds(900)14,704 — — (900)14,704 
U.S. government and agency securities$(120)$28,002 $(805)$7,604 $(925)$35,606 
Asset-backed securities(16,304)593,310 (3,884)72,112 (20,188)665,422 
Mortgage-backed securities(59,338)833,728 (14,318)77,584 (73,656)911,312 
(101,083)1,687,022 (19,007)157,300 (120,090)1,844,322 
Held-to-maturity securities
Mortgage-backed securities(51,411)400,422 — — (51,411)400,422 
$(152,494)$2,087,444 $(19,007)$157,300 $(171,501)$2,244,744 

September 30, 2022Less than 12 months12 months or moreTotal
 Unrealized
Gross Losses		Fair
Value		Unrealized
Gross Losses		Fair
Value		Unrealized
Gross Losses		Fair
Value
 (In thousands)
Available-for-sale securities
Corporate debt securities$(27,072)$288,753 $— $— $(27,072)$288,753 
Municipal bonds due(1,061)14,561 — — (1,061)14,561 
U.S. government and agency securities(1,049)39,354 — — (1,049)39,354 
Asset-backed securities$(6,374)$601,248 $(1,383)$50,070 $(7,757)$651,318 
Mortgage-backed securities(63,738)833,683 (12,331)53,533 (76,069)887,216 
(99,294)1,777,599 (13,714)103,603 (113,008)1,881,202 
Held-to-maturity securities
Mortgage-backed securities(56,461)405,166 — — (56,461)405,166 
$(155,755)$2,182,765 $(13,714)$103,603 $(169,469)$2,286,368