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Derivatives and Hedging Activities (Tables)
9 Months Ended
Jun. 30, 2020
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, 2020 and September 30, 2019.

June 30, 2020Derivative AssetsDerivative Liabilities
Interest rate contract purposeBalance Sheet LocationNotionalFair ValueBalance Sheet LocationNotionalFair Value
(In thousands)(In thousands)
Client swap program hedgesOther assets$526,301  $47,972  Other liabilities$526,301  $47,972  
Commercial loan fair value hedgesOther assets—  —  Other liabilities93,316  9,090  
Mortgage loan fair value hedgesOther assets—  —  Other liabilities500,000  17,605  
Borrowings cash flow hedgesOther assets—  —  Other liabilities1,600,000  25,235  
$526,301  $47,972  $2,719,617  $99,902  


September 30, 2019Derivative AssetsDerivative Liabilities
Interest rate contract purposeBalance Sheet LocationNotionalFair ValueBalance Sheet LocationNotionalFair Value
(In thousands)(In thousands)
Client swap program hedgesOther assets$425,607  $20,381  Other liabilities$425,607  $20,381  
Commercial loan fair value hedgesOther assets—  —  Other liabilities95,645  4,288  
Mortgage loan fair value hedgesOther assets200,000  1,608  Other liabilities—  —  
Borrowings cash flow hedgesOther assets—  —  Other liabilities700,000  7,877  
$625,607  $21,989  $1,221,252  $32,546  
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, 2020 and September 30, 2019.
June 30, 2020
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
(In thousands)
Loans receivable (1) (2)$2,855,203  $26,830  
$2,855,203  $26,830  

(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, 2020, the
amortized cost basis of the closed loan portfolios used in the hedging relationships was $2,752,843,000, the cumulative basis adjustment associated with the hedging relationships was $17,605,000, and the amount of the designated hedged items was $500,000,000.

(2) Includes the amortized cost basis of commercial loans designated in fair value hedging relationships. At June 30, 2020, the amortized cost basis of the hedged commercial loans was $102,360,000 and the cumulative basis adjustment associated with the hedging relationships was $9,225,000.

September 30, 2019
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
(In thousands)
Loans receivable (1) (2)$1,612,208  $2,680  
$1,612,208  $2,680  

(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, 2019, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $1,520,647,000, the cumulative basis adjustment associated with the hedging relationships was $(1,608,000), and the amount of the designated hedged items was $200,000,000.

(2) Includes the amortized cost basis of commercial loans designated in fair value hedging relationships. At September 30, 2019, the amortized cost basis of the hedged commercial loans was $91,561,000 and the cumulative basis adjustment associated with the hedging relationships was $4,288,000.
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.

(In thousands)Three Months Ended June 30,
Amount of gain/(loss) recognized in AOCI20202019
Interest rate contracts:
Pay fixed/receive floating swaps on borrowings cash flow hedges$(8,045) $(10,043) 
Total pre-tax gain/(loss) recognized in AOCI $(8,045) $(10,043) 
(In thousands)Nine Months Ended June 30,
Amount of gain/(loss) recognized in AOCI20202019
Interest rate contracts:
Pay fixed/receive floating swaps on borrowings cash flow hedges$(17,358) $(26,692) 
Total pre-tax gain/(loss) recognized in AOCI$(17,358) $(26,692) 
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 instrument20202019
Interest rate contracts:
Pay fixed/receive floating swapOther noninterest income$(4,815) $(11,091) 
Receive fixed/pay floating swapOther noninterest income4,815  11,091  
$—  $—  
(In thousands)Nine Months Ended June 30,
Derivative instrumentsClassification of gain/(loss) recognized in income on derivative instrument20202019
Interest rate contracts:
Pay fixed/receive floating swapOther noninterest income$(27,591) $(26,643) 
Receive fixed/pay floating swapOther noninterest income27,591  26,643  
$—  $—  
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, 2020Three Months Ended June 30, 2019
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$132,847  $(10,938) $145,490  $(17,829) 
Gain/(loss) on fair value hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives$(306) $50  
Recognized on derivatives(4,030) (2,491) 
Recognized on hedged items3,999  2,489  
Net income/(expense) recognized on fair value hedges$(337) $48  
Gain/(loss) on cash flow hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives$1,046  $(817) 
Amount of derivative gain/(loss) reclassified from AOCI into interest income/expense—  —  
Net income/(expense) recognized on cash flow hedges$1,046  $(817) 
Nine Months Ended June 30, 2020Nine Months Ended June 30, 2019
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$413,543  $(37,963) $423,616  $(52,566) 
Gain/(loss) on fair value hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives$(492) $127  
Recognized on derivatives(24,014) (6,409) 
Recognized on hedged items24,072  6,369  
Net income/(expense) recognized on fair value hedges$(434) $87  
Gain/(loss) on cash flow hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives$1,330  $(2,222) 
Amount of derivative gain/(loss) reclassified from AOCI into interest income/expense—  —  
Net income/(expense) recognized on cash flow hedges$1,330  $(2,222)