XML 31 R22.htm IDEA: XBRL DOCUMENT v3.23.1
Fair Value Measurements (Tables)
6 Months Ended
Mar. 31, 2023
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.
 March 31, 2023
 Level 1Level 2Level 3Total
 (In thousands)
Financial Assets
Available-for-sale securities:
U.S. government and agency securities$— $94,772 $— $94,772 
Asset-backed securities— 654,070 — 654,070 
Municipal bonds— 35,297 — 35,297 
Corporate debt securities— 322,403 — 322,403 
Mortgage-backed securities
Agency pass-through certificates— 899,744 — 899,744 
Total available-for-sale securities— 2,006,286 — 2,006,286 
Client swap program hedges— 54,935 — 54,935 
Commercial loan fair value hedges— 1,854 — 1,854 
Mortgage loan fair value hedges— 27,971 — 27,971 
Borrowings cash flow hedges— 151,167 — 151,167 
Total financial assets$— $2,242,213 $— $2,242,213 
Financial Liabilities
Client swap program hedges$— $54,910 $— $54,910 
Total financial liabilities$— $54,910 $— $54,910 
 September 30, 2022
 Level 1Level 2Level 3Total
 (In thousands)
Financial Assets
Available-for-sale securities:
U.S. government and agency securities$— $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 March 31, 2023 and March 31, 2022, 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.
 
 March 31, 2023Three Months Ended March 31, 2023Six Months Ended March 31, 2023
 Level 1Level  2Level  3TotalTotal Gains (Losses)
 (In thousands)(In thousands)
Loans (1)$— $— $3,313 $3,313 $(6,120)$(6,243)
Real estate owned (2)— — 372 372 22 22 
Balance at end of period$— $— $3,685 $3,685 $(6,098)$(6,221)

(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.
March 31, 2022Three Months Ended March 31, 2022Six Months Ended March 31, 2022
Level 1Level  2Level  3TotalTotal Gains (Losses)
(In thousands)(In thousands)
Loans (1)$— $— $3,816 $3,816 $(896)$(985)
Real estate owned (2)— — 1,571 1,571 32 (472)
Balance at end of period$— $— $5,387 $5,387 $(864)$(1,457)

(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.
 March 31, 2023September 30, 2022
 Level in Fair Value HierarchyCarrying
Amount
Estimated
Fair Value
Carrying
Amount
Estimated
Fair Value
 ($ in thousands)
Financial assets
Cash and cash equivalents1$1,118,544 $1,118,544 $683,965 $683,965 
Available-for-sale securities
U.S. government and agency securities294,772 94,772 39,354 39,354 
Asset-backed securities2654,070 654,070 767,001 767,001 
Municipal bonds235,297 35,297 34,962 34,962 
Corporate debt securities2322,403 322,403 313,757 313,757 
Mortgage-backed securities
Agency pass-through certificates2899,744 899,744 895,963 895,963 
Total available-for-sale securities2,006,286 2,006,286 2,051,037 2,051,037 
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates2445,222 401,076 463,299 406,860 
Total held-to-maturity securities445,222 401,076 463,299 406,860 
Loans receivable317,271,906 16,632,415 16,113,564 15,417,635 
FHLB stock2147,078 147,078 95,073 95,073 
        Other assets - client swap program hedges254,935 54,935 67,260 67,260 
        Other assets - commercial fair value loan hedges21,854 1,854 2,517 2,517 
        Other assets - mortgage loan fair value hedges227,971 27,971 36,765 36,765 
        Other assets - borrowings cash flow hedges2151,167 151,167 179,945 179,945 
Financial liabilities
Time deposits23,980,605 3,902,413 3,338,043 3,249,169 
Borrowings23,800,000 3,789,250 2,125,000 1,940,813 
        Other liabilities - client swap program hedges254,910 54,910 67,260 67,260 
Other liabilities - commercial loan fair value hedges2— — — — 
Other liabilities - mortgage loan fair value hedges2— — — — 
Reconciliation of Amortized Cost to Fair Value of Available-for-Sale and Held-to-Maturity Securities
The following tables provide details about the amortized cost and fair value of available-for-sale and held-to-maturity securities.
 March 31, 2023
 Amortized
Cost
Gross UnrealizedFair
Value
Yield
 GainsLosses
 ($ in thousands)
Available-for-sale securities
U.S. government and agency securities due
Within 1 year$7,003 $— $(39)$6,964 5.29 %
1 to 5 years24,228 — (604)23,624 4.29 
Over 10 years63,740 444 — 64,184 5.15 
Asset-backed securities
1 to 5 years20,059 — (763)19,296 5.48 
5 to 10 years49,023 (280)48,747 5.51 
Over 10 years600,080 753 (14,806)586,027 5.52 
Corporate debt securities due
Within 1 year75,023 (107)74,918 5.36 
1 to 5 years151,652 793 (1,683)150,762 4.75 
5 to 10 years113,817 — (17,094)96,723 3.87 
Municipal bonds due
5 to 10 years5,735 — (201)5,534 3.00 
Over 10 years29,851 275 (363)29,763 5.85 
Mortgage-backed securities
Agency pass-through certificates960,254 532 (61,042)899,744 3.02 
2,100,465 2,803 (96,982)2,006,286 4.18 
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates445,222 55 (44,201)401,076 2.88 
445,222 55 (44,201)401,076 2.88 
$2,545,687 $2,858 $(141,183)$2,407,362 3.97 %
 September 30, 2022
 Amortized
Cost
Gross UnrealizedFair
Value
Yield
 GainsLosses
 ($ 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 (547)82,419 3.53 
Over 10 years668,482 783 (6,069)663,196 3.86 
Corporate debt securities due
Within 1 year75,000 (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 Unrealized Losses and Fair Value of Securities The following tables show the gross unrealized losses and fair value of securities as of March 31, 2023 and September 30, 2022, by length of time that individual securities in each category have been in a continuous loss position. There were 220 and 223 securities with an unrealized loss as of March 31, 2023 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.
 
March 31, 2023Less 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$(1,790)$136,214 $(17,094)$96,723 $(18,884)$232,937 
Municipal bonds(363)9,488 (201)5,534 (564)15,022 
U.S. government and agency securities(15)10,126 (628)20,463 (643)30,589 
Asset-backed securities(8,353)387,918 (7,496)231,114 (15,849)619,032 
Mortgage-backed securities(30,101)577,018 (30,941)271,694 (61,042)848,712 
(40,622)1,120,764 (56,360)625,528 (96,982)1,746,292 
Held-to-maturity securities
Mortgage-backed securities(18,843)165,224 (25,358)233,935 (44,201)399,159 
$(59,465)$1,285,988 $(81,718)$859,463 $(141,183)$2,145,451 

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