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Fair Value Measurements (Tables)
 6 Months Ended
Mar. 31, 2019
Fair Value Disclosures [Abstract]  
Fair Value of Assets Measured on Recurring Basis
The following tables present the balance of assets and liabilities measured at fair value on a recurring basis.
 
March 31, 2019
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Financial Assets
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
U.S. government and agency securities
$
—

 
$
235,280

 
$
—

 
$
235,280

Municipal bonds
—

 
22,408

 
—

 
22,408

Corporate debt securities
—

 
257,981

 
—

 
257,981

Mortgage-backed securities
 
 
 
 
 
 
 
Agency pass-through certificates
—

 
1,029,937

 
—

 
1,029,937

Total available-for-sale securities
—

 
1,545,606

 
—

 
1,545,606

Interest rate contracts
—

 
2,822

 
—

 
2,822

Borrowings hedges
—

 
5,600

 
—

 
5,600

Total financial assets
$
—

 
$
1,554,028

 
$
—

 
$
1,554,028

 
 
 
 
 
 
 
 
Financial Liabilities
 
 
 
 
 
 
 
Interest rate contracts
$
—

 
$
2,822

 
$
—

 
$
2,822

Commercial loan hedges
—

 
94

 
—

 
94

Total financial liabilities
$
—

 
$
2,916

 
$
—

 
$
2,916


There were no transfers between, into and/or out of Levels 1, 2 or 3 during the six months ended March 31, 2019.
 
September 30, 2018
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Financial Assets
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
Equity securities
$
488

 
$
—

 
$
—

 
$
488

U.S. government and agency securities
—

 
207,293

 
—

 
207,293

Municipal bonds
—

 
22,978

 
—

 
22,978

Corporate debt securities
—

 
184,695

 
—

 
184,695

Mortgage-backed securities
 
 
 
 
 
 
 
Agency pass-through certificates
—

 
896,041

 
—

 
896,041

Commercial MBS
—

 
3,462

 
—

 
3,462

Total available-for-sale securities
488

 
1,314,469

 
—

 
1,314,957

Interest rate contracts
—

 
12,731

 
—

 
12,731

Commercial loan hedges
—

 
3,857

 
—

 
3,857

Borrowings hedges
—

 
22,250

 
—

 
22,250

Total financial assets
$
488

 
$
1,353,307

 
$
—

 
$
1,353,795

 
 
 
 
 
 
 
 
Financial Liabilities
 
 
 
 
 
 
 
Interest rate contracts
$
—

 
$
12,731

 
$
—

 
$
12,731

Total financial liabilities
$
—

 
$
12,731

 
$
—

 
$
12,731
Aggregated Balance of Assets Measured at Estimated Fair Value on a Nonrecurring Basis and Total Losses Resulting from Those Fair Value Adjustments
The following tables present the aggregated balance of assets that were measured at fair value on a nonrecurring basis at March 31, 2019 and March 31, 2018, and the total gains (losses) resulting from those fair value adjustments for the three and six months ended March 31, 2019 and March 31, 2018. The estimated fair value measurements are shown gross of estimated selling costs.
 
 
March 31, 2019
 
Three Months Ended March 31, 2019
 
Six Months Ended March 31, 2019
 
Level 1
 
Level  2
 
Level  3
 
Total
 
Total Gains (Losses)
 
(In thousands)
 
(In thousands)
Impaired loans (1)
$
—

 
$
—

 
$
3,316

 
$
3,316

 
$
(511
)
 
$
(1,237
)
Real estate owned (2)
—

 
—

 
2,550

 
2,550

 
431

 
399

Balance at end of period
$
—

 
$
—

 
$
5,866

 
$
5,866

 
$
(80
)
 
$
(838
)

(1)
The gains (losses) represent remeasurements of collateral-dependent loans.
(2)
The gains (losses) represent remeasurements of REO.

 
March 31, 2018
 
Three Months Ended March 31, 2018
 
Six Months Ended March 31, 2018
 
Level 1
 
Level  2
 
Level  3
 
Total
 
Total Gains (Losses)
 
(In thousands)
 
(In thousands)
Impaired loans (1)
$
—

 
$
—

 
$
7,343

 
$
7,343

 
$
(466
)
 
$
(973
)
Real estate owned (2)
—

 
—

 
5,520

 
5,520

 
(379
)
 
(559
)
Balance at end of period
$
—

 
$
—

 
$
12,863

 
$
12,863

 
$
(845
)
 
$
(1,532
)

(1)
The gains (losses) represent remeasurements of collateral-dependent loans.
(2)
The gains (losses) represent remeasurements of REO.
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. 
 
 
 
 
March 31, 2019
 
September 30, 2018
 
 
Level in Fair Value Hierarchy
 
Carrying
Amount
 
Estimated
Fair Value
 
Carrying
Amount
 
Estimated
Fair Value
 
 
 
 
($ in thousands)
Financial assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
1
 
$
279,554

 
$
279,554

 
$
268,650

 
$
268,650

Available-for-sale securities
 
 
 
 
 
 
 
 
 
 
Equity securities
 
1
 
—

 
—

 
488

 
488

U.S. government and agency securities
 
2
 
235,280

 
235,280

 
207,293

 
207,293

Municipal bonds
 
2
 
22,408

 
22,408

 
22,978

 
22,978

Corporate debt securities
 
2
 
257,981

 
257,981

 
184,695

 
184,695

Mortgage-backed securities
 
 
 
 
 
 
 
 
 
 
Agency pass-through certificates
 
2
 
1,029,937

 
1,029,937

 
896,041

 
896,041

Commercial MBS
 
2
 
—

 
—

 
3,462

 
3,462

Total available-for-sale securities
 
 
 
1,545,606

 
1,545,606

 
1,314,957

 
1,314,957

Held-to-maturity securities
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
 
 
 
 
 
 
 
 
Agency pass-through certificates
 
2
 
1,538,683

 
1,520,608

 
1,610,420

 
1,533,742

                           Commercial MBS
 
2
 
15,000

 
14,944

 
15,000

 
15,028

Total held-to-maturity securities
 
 
 
1,553,683

 
1,535,552

 
1,625,420

 
1,548,770

 
 
 
 
 
 
 
 
 
 
 
Loans receivable
 
3
 
11,894,836

 
12,234,924

 
11,477,081

 
11,556,326

FHLB and FRB stock
 
2
 
138,390

 
138,390

 
127,190

 
127,190

        Other assets - interest rate contracts
 
2
 
2,822

 
2,822

 
12,731

 
12,731

        Other assets - commercial loan hedges
 
2
 
—

 
—

 
3,857

 
3,857

        Other assets - borrowings hedges
 
2
 
5,600

 
5,600

 
22,250

 
22,250

 
 
 
 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
 
 
 
Time deposit accounts
 
2
 
4,939,365

 
4,942,666

 
4,804,803

 
4,779,040

FHLB advances
 
2
 
2,610,000

 
2,590,365

 
2,330,000

 
2,316,964

        Other liabilities - interest rate contracts
 
2
 
2,822

 
2,822

 
12,731

 
12,731

Other liabilities - commercial loan hedges
 
2
 
94

 
94

 
—

 
—
Reconciliation of Amortized Cost to Fair Value of Available-for-Sale and Held-to-Maturity Securities
The following tables provide a reconciliation of amortized cost to fair value of available-for-sale and held-to-maturity securities.
 
March 31, 2019
 
Amortized
Cost
 
Gross Unrealized
 
Fair
Value
 
Yield
 
Gains
 
Losses
 
 
($ in thousands)
Available-for-sale securities

 
 
 
 
 
 
 
 
U.S. government and agency securities due
 
 
 
 
 
 
 
 
 
5 to 10 years
$
70,806

 
$
2

 
$
(1,182
)
 
$
69,626

 
2.75
%
Over 10 years
166,674

 
38

 
(1,058
)
 
165,654

 
3.55

Corporate debt securities due
 
 
 
 
 
 
 
 
 
1 to 5 years
113,832

 
1,402

 
(263
)
 
114,971

 
3.92

5 to 10 years
142,776

 
808

 
(574
)
 
143,010

 
3.49

Municipal bonds due
 
 
 
 
 
 
 
 
 
1 to 5 years
1,414

 
12

 
—

 
1,426

 
1.92

Over 10 years
20,313

 
669

 
—

 
20,982

 
6.45

Mortgage-backed securities
 
 
 
 
 
 
 
 
 
Agency pass-through certificates
1,024,213

 
10,337

 
(4,613
)
 
1,029,937

 
3.36

 
1,540,028

 
13,268

 
(7,690
)
 
1,545,606

 
3.44

Held-to-maturity securities
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
 
 
 
 
 
 
 
Agency pass-through certificates
1,538,683

 
3,599

 
(21,674
)
 
1,520,608

 
3.16

Commercial MBS
15,000

 
—

 
(56
)
 
14,944

 
3.35

 
1,553,683

 
3,599

 
(21,730
)
 
1,535,552

 
3.16

 
$
3,093,711

 
$
16,867

 
$
(29,420
)
 
$
3,081,158

 
3.30
%
 
 
September 30, 2018
 
Amortized
Cost
 
Gross Unrealized
 
Fair
Value
 
Yield
 
Gains
Losses
 
 
($ in thousands)
Available-for-sale securities
 
 
 
 
 
 
 
 
 
U.S. government and agency securities due
 
 
 
 
 
 
 
 
 
5 to 10 years
$
60,872

 
$
—

 
$
(1,473
)
 
$
59,399

 
2.55
%
Over 10 years
148,099

 
109

 
(314
)
 
147,894

 
3.05

Equity securities
 
 
 
 
 
 
 
 
 
1 to 5 years
500

 
—

 
(12
)
 
488

 
1.80

Corporate bonds due
 
 
 
 
 
 
 
 
 
1 to 5 years
113,762

 
1,875

 
(13
)
 
115,624

 
3.59

5 to 10 years
69,965

 
35

 
(929
)
 
69,071

 
3.23

Municipal bonds due
 
 
 
 
 
 
 
 
 
1 to 5 years
1,398

 
—

 
(24
)
 
1,374

 
2.05

Over 10 years
20,323

 
1,281

 
—

 
21,604

 
6.45

Mortgage-backed securities
 
 
 
 
 
 
 
 
 
Agency pass-through certificates
908,092

 
1,383

 
(13,434
)
 
896,041

 
3.29

Commercial MBS
3,460

 
2

 
—

 
3,462

 
4.36

 
1,326,471

 
4,685

 
(16,199
)
 
1,314,957

 
3.30

Held-to-maturity securities
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
 
 
 
 
 
 
 
Agency pass-through certificates
1,610,420

 
305

 
(76,983
)
 
1,533,742

 
3.16

Other Commercial MBS
15,000

 
28

 
—

 
15,028

 
3.03

 
1,625,420

 
333

 
(76,983
)
 
1,548,770

 
3.16

 
$
2,951,891

 
$
5,018

 
$
(93,182
)
 
$
2,863,727

 
3.22
%
Schedule of Unrealized Losses and Fair Value of Securities
The following tables show the unrealized gross losses and fair value of securities as of March 31, 2019 and September 30, 2018, by length of time that individual securities in each category have been in a continuous loss position. 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 be other than temporarily impaired.
 
March 31, 2019
Less than 12 months
 
12 months or more
 
Total
 
Unrealized
Gross Losses
 
Fair
Value
 
Unrealized
Gross Losses
 
Fair
Value
 
Unrealized
Gross Losses
 
Fair
Value
 
(In thousands)
 
 
Corporate debt securities
$
(574
)
 
$
49,521

 
$
(263
)
 
$
49,737

 
$
(837
)
 
99,258

U.S. government and agency securities
(621
)
 
84,101

 
(1,619
)
 
129,356

 
(2,240
)
 
213,457

Mortgage-backed securities
(418
)
 
160,772

 
(25,925
)
 
1,621,708

 
(26,343
)
 
1,782,480

 
$
(1,613
)
 
$
294,394

 
$
(27,807
)
 
$
1,800,801

 
$
(29,420
)
 
$
2,095,195



September 30, 2018
Less than 12 months
 
12 months or more
 
Total
 
Unrealized
Gross Losses
 
Fair
Value
 
Unrealized
Gross Losses
 
Fair
Value
 
Unrealized
Gross Losses
 
Fair
Value
 
(In thousands)
 
 
Corporate debt securities
$
(929
)
 
$
49,072

 
$
(14
)
 
$
24,988

 
$
(943
)
 
$
74,060

Municipal bonds due
(24
)
 
1,374

 
—

 
—

 
(24
)
 
1,374

U.S. government and agency securities
(141
)
 
37,565

 
(1,645
)
 
76,499

 
(1,786
)
 
114,064

Equity securities
(12
)
 
488

 
—

 
—

 
(12
)
 
488

Mortgage-backed securities
(28,748
)
 
1,035,754

 
(61,669
)
 
1,183,017

 
(90,417
)
 
2,218,771

 
$
(29,854
)
 
$
1,124,253

 
$
(63,328
)
 
$
1,284,504

 
$
(93,182
)
 
$
2,408,757