Derivatives and Hedging Activities (Tables)

6 Months Ended

Mar. 31, 2023

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, 2023 and September 30, 2022.

March 31, 2023	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	$	700,058	$	54,935	Other liabilities	$	700,058	$	54,910
Commercial loan fair value hedges	Other assets	39,661		1,854		Other liabilities	—		—
Mortgage loan fair value hedges	Other assets	670,000		27,971		Other liabilities	—		—
Borrowings cash flow hedges	Other assets	1,000,000		151,167		Other liabilities	—		—
		$	2,409,719	$	235,927		$	700,058	$	54,910

September 30, 2022	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	$	588,676	$	67,260	Other liabilities	$	588,676	$	67,260
Commercial loan fair value hedges	Other assets	42,209		2,517		Other liabilities	—		—
Mortgage loan fair value hedges	Other assets	470,000		36,765		Other liabilities	—		—
Borrowings cash flow hedges	Other assets	1,000,000		179,945		Other liabilities	—		—
		$	2,100,885	$	286,487		$	588,676	$	67,260

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, 2023 and September 30, 2022.

(In thousands)	March 31, 2023
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)	$	1,917,364	$	(29,262)
	$	1,917,364	$	(29,262)

(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 March 31, 2023, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $1,879,678,000, the cumulative basis adjustment associated with the hedging relationships was $(27,338,000), and the amount of the designated hedged items was $670,000,000.

(2) Includes the amortized cost basis of commercial loans designated in fair value hedging relationships. At March 31, 2023, the amortized cost basis of the hedged commercial loans was $37,686,000 and the cumulative basis adjustment associated with the hedging relationships was $(1,924,000).

(In thousands)	September 30, 2022
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)	$	1,159,496	$	(39,090)
	$	1,159,496	$	(39,090)

(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, 2022, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $1,119,975,000, the cumulative basis adjustment associated with the hedging relationships was $(36,458,000), and the amount of the designated hedged items was $470,000,000.

(2) Includes the amortized cost basis of commercial loans designated in fair value hedging relationships. At September 30, 2022, the amortized cost basis of the hedged commercial loans was $40 million and the cumulative basis adjustment associated with the hedging relationships was $(2,632,000).

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, 2023				Three Months Ended March 31, 2022
	Interest income on loans receivable		Interest expense on FHLB advances		Interest income on loans receivable		Interest expense on FHLB advances
	(In thousands)				(In thousands)
Interest income/(expense), including the effects of fair value and cash flow hedges	$	222,957	$	(28,185)	$	139,260	$	(7,525)
Gain/(loss) on fair value hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives	$	4,237			$	(1,199)
Recognized on derivatives	(6,608)				18,561
Recognized on hedged items	6,696				(18,586)
Net income/(expense) recognized on fair value hedges	$	4,325			$	(1,224)
Gain/(loss) on cash flow hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives			$	9,457			$	1,715
Amount of derivative gain/(loss) reclassified from AOCI into interest income/expense			—				—
Net income/(expense) recognized on cash flow hedges			$	9,457			$	1,715

	Six Months Ended March 31, 2023				Six Months Ended March 31, 2022
	Interest income on loans receivable		Interest expense on FHLB advances		Interest income on loans receivable		Interest expense on FHLB advances
	(In thousands)				(In thousands)
Interest income/(expense), including the effects of fair value and cash flow hedges	$	426,903	$	(47,159)	$	277,769	$	(15,368)
Gain/(loss) on fair value hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives	$	7,404			$	(2,570)
Recognized on derivatives	(9,457)				23,061
Recognized on hedged items	9,828				(23,061)
Net income/(expense) recognized on fair value hedges	$	7,775			$	(2,570)
Gain/(loss) on cash flow hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives			$	16,731			$	3,736
Amount of derivative gain/(loss) reclassified from AOCI into interest income/expense			—				—
Net income/(expense) recognized on cash flow hedges			$	16,731			$	3,736

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,
Amounts of gain/(loss) recognized in AOCI	2023		2022
Interest rate contracts:
Pay fixed/receive floating swaps on borrowings cash flow hedges	$	(21,972)	$	56,323
Total pre-tax gain/(loss) recognized in AOCI	$	(21,972)	$	56,323

(In thousands)	Six Months Ended March 31,
Amounts of gain/(loss) recognized in AOCI	2023		2022
Interest rate contracts:
Pay fixed/receive floating swaps on borrowings cash flow hedges	$	(28,778)	$	62,769
Total pre-tax gain/(loss) recognized in AOCI	$	(28,778)	$	62,769

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	2023		2022
Interest rate contracts:
Pay fixed/receive floating swap	Other noninterest income	$	(11,143)	$	33,298
Receive fixed/pay floating swap	Other noninterest income	11,169		(33,298)
		$	26	$	—

(In thousands)		Six Months Ended March 31,
Derivative instruments	Classification of gain/(loss) recognized in income on derivative instrument	2023		2022
Interest rate contracts:
Pay fixed/receive floating swap	Other noninterest income	$	(15,021)	$	38,337
Receive fixed/pay floating swap	Other noninterest income	15,047		(38,337)
		$	—	$	—