| 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, 2026 and September 30, 2025.
| | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | Derivative Assets | | Derivative Liabilities | | Interest rate contract purpose | Balance Sheet Location | Notional | Fair Value | | Balance Sheet Location | Notional | Fair Value | | (In thousands) | | (In thousands) | | Client swap program hedges | Other assets | $ | 959,875 | | $ | 37,009 | | | Other liabilities | $ | 959,875 | | $ | 37,088 | | | | | | | | | | | Mortgage loan fair value hedges | Other assets | 670,000 | | 10,034 | | | Other liabilities | 700,000 | | 2,825 | | | Mortgage backed securities fair value hedges | Other assets | 210,000 | | 1,947 | | | Other liabilities | 400,000 | | 3,727 | | | Borrowings cash flow hedges | Other assets | 1,350,000 | | 104,446 | | | Other liabilities | — | | — | | | | $ | 3,189,875 | | $ | 153,436 | | | | $ | 2,059,875 | | $ | 43,640 | |
| | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2025 | Derivative Assets | | Derivative Liabilities | | Interest rate contract purpose | Balance Sheet Location | Notional | Fair Value | | Balance Sheet Location | Notional | Fair Value | | (In thousands) | | (In thousands) | | Client swap program hedges | Other assets | $ | 977,017 | | $ | 37,347 | | | Other liabilities | $ | 977,017 | | $ | 37,818 | | | Commercial loan fair value hedges | Other assets | 34,341 | | 1,611 | | | Other liabilities | — | | — | | | Mortgage backed securities fair value hedges | Other assets | — | | — | | | Other liabilities | 610,000 | | 15,086 | | | Mortgage loan fair value hedges | Other assets | 470,000 | | 13,082 | | | Other liabilities | 1,100,000 | | 20,426 | | | Borrowings cash flow hedges | Other assets | 900,000 | | 99,231 | | | Other liabilities | — | | — | | | | $ | 2,381,358 | | $ | 151,271 | | | | $ | 2,687,017 | | $ | 73,330 | |
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| 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, 2026 and September 30, 2025. | | | | | | | | | | (In thousands) | June 30, 2026 | | Balance sheet line item in which hedged item is recorded | Carrying value of hedged items | Cumulative gain (loss) fair value hedge adjustment included in carrying amount of hedged items | | Loans receivable (1) | $ | 5,003,997 | | $ | (6,486) | | Available-for-sale securities, at fair value (2) | $ | 882,040 | | $ | 2,022 | | | $ | 5,886,037 | | $ | (4,464) | |
(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 June 30, 2026, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $5,003,997,000, the cumulative basis adjustment associated with the hedging relationships was $(6,486,000), and the amount of the designated hedged items was $1,370,000,000.
(2) Includes the fair value basis of mortgage backed securities designated in fair value hedging relationships. At June 30, 2026, the fair value of the hedged mortgage backed securities was $882,040,000, the cumulative basis adjustment associated with the hedging relationships was $2,022,000, and the amount of the designated hedged items was $610,000,000.
| | | | | | | | | | (In thousands) | September 30, 2025 | | Balance sheet line item in which hedged item is recorded | Carrying value of hedged items | Cumulative gain (loss) fair value hedge adjustment included in carrying amount of hedged items | | Loans receivable (1) (2) | $ | 5,426,086 | | $ | 6,794 | | Available-for-sale securities, at fair value (3) | 940,110 | | 15,452 | | | $ | 6,366,196 | | $ | 22,246 | |
(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, 2025, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $5,393,257,000, the cumulative basis adjustment associated with the hedging relationships was $8,262,000, and the amount of the designated hedged items was $1,570,000,000. During fiscal 2025, hedge accounting was discontinued on a $1,600,000,000 last of layer hedge. A basis adjustment of $4,016,668 associated with the terminated portion of the hedge was deferred and is being amortized over the remaining life of the associated pool of loans.
(2) Includes the amortized cost basis of commercial loans designated in fair value hedging relationships. At September 30, 2025, the amortized cost basis of the hedged commercial loans was $32,829,000 and the cumulative basis adjustment associated with the hedging relationships was $(1,468,000).
(3) Includes the fair value basis of mortgage backed securities designated in fair value hedging relationships. At September 30, 2025, the fair value of the hedged mortgage backed securities was $940,110,000, the cumulative basis adjustment associated with the hedging relationships was $15,452,000, and the amount of the designated hedged items was $610,000,000.
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| Schedule of Impact of Derivative Instruments |
The following tables present the impact of derivative instruments (cash flow hedges on borrowings) on AOCI for the periods presented.
| | | | | | | | | | (In thousands) | Three Months Ended June 30, | | Amount of gain/(loss) recognized in AOCI on derivatives in cash flow hedging relationships | 2026 | 2025 | | Interest rate contracts: | | | | Pay fixed/receive floating swaps on borrowings cash flow hedges | $ | 7,068 | | $ | (14,040) | | | Reclassification adjustment of net (gain)/loss included in net income | — | | (70) | | | Total pre-tax gain/(loss) recognized in AOCI | $ | 7,068 | | $ | (14,110) | |
| | | | | | | | | | | | | (In thousands) | Nine Months Ended June 30, | | Amount of gain/(loss) recognized in AOCI on derivatives in cash flow hedging relationships | 2026 | 2025 | | Interest rate contracts: | | | | Pay fixed/receive floating swaps on borrowings cash flow hedges | $ | 5,216 | | $ | (10,716) | | | Reclassification adjustment of net (gain)/loss included in net income | — | | — | | | Total pre-tax gain/(loss) recognized in AOCI | $ | 5,216 | | $ | (10,716) | |
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 instruments | Classification of gain/(loss) recognized in income on derivative instrument | 2026 | 2025 | | Interest rate contracts: | | | | Pay fixed/receive floating swap | Other non-interest income | $ | 5,105 | | $ | (7,677) | | | Receive fixed/pay floating swap | Other non-interest income | (5,117) | | 7,733 | | | | $ | (12) | | $ | 56 | |
| | | | | | | | | | | | | | | | | (In thousands) | | Nine Months Ended June 30, | | Derivative instruments | Classification of gain/(loss) recognized in income on derivative instrument | 2026 | 2025 | | Interest rate contracts: | | | | | Pay fixed/receive floating swap | Other non-interest income | $ | 4,389 | | $ | 1,013 | | | Receive fixed/pay floating swap | Other non-interest income | (3,997) | | (887) | | | | $ | 392 | | $ | 126 | |
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| Schedule of Gains/(Losses) on Derivative Instruments in Fair Value and Cash Flow Accounting Hedging Relationships |
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, 2026 | Three Months Ended June 30, 2025 | | Interest income on loans receivable | Interest on Mortgage-backed securities | Interest expense on FHLB advances | Interest income on loans receivable | Interest on Mortgage-backed securities | Interest expense on FHLB advances | | (In thousands) | (In thousands) | | Interest income/(expense), including the effects of fair value and cash flow hedges | $ | 267,243 | | $ | 46,569 | | $ | (27,708) | | $ | 279,476 | | $ | 27,855 | | $ | (16,991) | | | | | | | | | | Gain/(loss) on fair value hedging relationships: | | | | | | | | Interest rate contracts | | | | | | | | Amounts related to interest settlements on derivatives | $ | 1,366 | | $ | (500) | | | $ | 3,780 | | $ | 314 | | | | Recognized on derivatives | 7,736 | | $ | 6,393 | | | (10,789) | | (4,822) | | | | Recognized on hedged items | (7,791) | | (6,442) | | | 10,800 | | 4,927 | | | | Net income/(expense) recognized on fair value hedges | $ | 1,311 | | $ | (549) | | | $ | 3,791 | | $ | 419 | | | | | | | | | | | Gain/(loss) on cash flow hedging relationships: | | | | | | | | Interest rate contracts | | | | | | | | Amounts related to interest settlements on derivatives | | | $ | 6,841 | | | | $ | 8,649 | | | Amount of derivative gain/(loss) reclassified from AOCI into interest income/expense | | | — | | | | — | | | Net income/(expense) recognized on cash flow hedges | | | $ | 6,841 | | | | $ | 8,649 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended June 30, 2026 | Nine Months Ended June 30, 2025 | | Interest income on loans receivable | Interest on Mortgage-backed securities | Interest expense on FHLB advances | Interest income on loans receivable | Interest on Mortgage-backed securities | Interest expense on FHLB advances | | (In thousands) | (In thousands) | | Interest income/(expense), including the effects of fair value and cash flow hedges | $ | 793,598 | | $ | 129,812 | | $ | (64,044) | | $ | 848,150 | | $ | 70,118 | | $ | (67,753) | | | | | | | | | | Gain/(loss) on fair value hedging relationships: | | | | | | | | Interest rate contracts | | | | | | | | Amounts related to interest settlements on derivatives | $ | 5,735 | | $ | (832) | | | $ | 16,762 | | $ | 430 | | | | Recognized on derivatives | 14,600 | | 13,305 | | | 6,031 | | (13,504) | | | | Recognized on hedged items | (14,783) | | (13,431) | | | (13,002) | | 13,828 | | | | Net income/(expense) recognized on fair value hedges | $ | 5,552 | | $ | (958) | | | $ | 9,791 | | $ | 754 | | | | | | | | | | | Gain/(loss) on cash flow hedging relationships: | | | | | | | | Interest rate contracts | | | | | | | | Amounts related to interest settlements on derivatives | | | $ | 22,492 | | | | $ | 26,702 | | | Amount of derivative gain/(loss) reclassified from AOCI into interest income/expense | | | — | | | | — | | | Net income/(expense) recognized on cash flow hedges | | | $ | 22,492 | | | | $ | 26,702 | |
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