Fair Value Measurements (Tables)
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6 Months Ended |
Mar. 31, 2019 |
|---|
| Fair Value Disclosures [Abstract] |
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| 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 |
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| 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. |
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| 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 |
| | — |
| | — |
|
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| 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 | % |
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| 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 |
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| | | | | | | | | | | | | | | | | | | | | | | | | 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 |
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