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Derivatives and Hedging Activities (Tables)
 3 Months Ended
Dec. 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 December 31, 2023 and September 30, 2023.

December 31, 2023Derivative AssetsDerivative Liabilities
Interest rate contract purposeBalance Sheet LocationNotionalFair ValueBalance Sheet LocationNotionalFair Value
(In thousands)(In thousands)
Client swap program hedgesOther assets$896,485 $55,631 Other liabilities$896,485 $56,392 
Commercial loan fair value hedgesOther assets37,042 2,061 Other liabilities— — 
Mortgage loan fair value hedgesOther assets970,000 22,244 Other liabilities— — 
Borrowings cash flow hedgesOther assets1,000,000 143,846 Other liabilities— — 
$2,903,527 $223,782 $896,485 $56,392 

September 30, 2023Derivative AssetsDerivative Liabilities
Interest rate contract purposeBalance Sheet LocationNotionalFair ValueBalance Sheet LocationNotionalFair Value
(In thousands)(In thousands)
Client swap program hedgesOther assets$806,744 $78,797 Other liabilities$806,744 $79,668 
Commercial loan fair value hedgesOther assets39,661 3,405 Other liabilities— — 
Mortgage loan fair value hedgesOther assets670,000 46,396 Other liabilities— — 
Borrowings cash flow hedgesOther assets1,000,000 184,373 Other liabilities— — 
$2,516,405 $312,971 $806,744 $79,668 
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 December 31, 2023 and September 30, 2023.
(In thousands)December 31, 2023
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
Loans receivable (1) (2)$6,246,208 $(23,255)
$6,246,208 $(23,255)

(1) Includes the amortized cost basis of the closed mortgage loan portfolios used to designate the hedging relationships in which the hedged items are a portfolio layer expected to be remaining at the end of the hedging relationships. At December 31, 2023, the amortized cost basis of the closed loan portfolios used in the hedging relationships was
$6,211,195,000, the cumulative basis adjustment associated with the hedging relationships was $(21,277,000), and the amount of the designated hedged items was $970,000,000.

(2) Includes the amortized cost basis of commercial loans designated in fair value hedging relationships. At December 31, 2023, the amortized cost basis of the hedged commercial loans was $35,013,000 and the cumulative basis adjustment associated with the hedging relationships was $(1,978,000).


(In thousands)September 30, 2023
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
Loans receivable (1) (2)$1,816,870 $(48,865)
$1,816,870 $(48,865)

(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, 2023, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $1,780,503,000, the cumulative basis adjustment associated with the hedging relationships was $(45,622,000), 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 September 30, 2023, the amortized cost basis of the hedged commercial loans was $36,367,000 and the cumulative basis adjustment associated with the hedging relationships was $(3,243,000).
Schedule of Impact of Derivative Instruments
The following table presents the impact of derivative instruments (cash flow hedges on borrowings) on AOCI for the periods presented.

(In thousands)Three Months Ended December 31,
Amount of gain/(loss) recognized in AOCI on derivatives in cash flow hedging relationships20232022
Interest rate contracts:
Pay fixed/receive floating swaps on borrowings cash flow hedges$(40,527)$(6,806)
Total pre-tax gain/(loss) recognized in AOCI $(40,527)$(6,806)
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 December 31,
Derivative instrumentsClassification of gain/(loss) recognized in income on derivative instrument20232022
Interest rate contracts:
Pay fixed/receive floating swapOther noninterest income$(28,709)$(3,878)
Receive fixed/pay floating swapOther noninterest income28,818 3,878 
$109 $— 
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 December 31, 2023Three Months Ended December 31, 2022
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$245,792 $(37,938)$203,946 $(18,974)
Gain/(loss) on fair value hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives$5,493 $3,167 
Recognized on derivatives(25,496)(2,849)
Recognized on hedged items25,610 3,132 
Net income/(expense) recognized on fair value hedges$5,607 $3,450 
Gain/(loss) on cash flow hedging relationships:
Interest rate contracts
Amounts related to interest settlements on derivatives$11,847 $7,274 
Amount of derivative gain/(loss) reclassified from AOCI into interest income/expense— — 
Net income/(expense) recognized on cash flow hedges$11,847 $7,274