Business Combination (Tables)

9 Months Ended

Jun. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Schedule of Business Acquisition

The purchase price for purposes of the transaction accounting adjustments is calculated based on the number of shares of WaFd stock issued to LBC shareholders and the closing share price on the Merger Date as shown in the following table (amounts in thousands except share and per share data).

Number of WaFd shares issued to LBC shareholders	17,089
WaFd market price per share on February 29, 2024	$	27.24
Purchase price of shares issued to LBC shareholders	$	465,501
Cash in lieu of fractional shares	$	3
Purchase price consideration	$	465,504

The following table shows the impact of merger-related expenses for the three and nine months ended June 30, 2024.

Merger-Related Expenses	Three Months Ended June 30, 2024		Nine Months Ended June 30, 2024
	(in thousands)
Severance and employee-related	$	1,400	$	21,666
Legal and Professional	505		4,487
Charitable contributions	—		1,000
System conversion and integration	380		768
	$	2,285	$	27,921

Schedule of Assets Acquired and Liabilities Assumed

The table below displays the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed:

	March 1, 2024
	(in thousands)
Total merger consideration			$	465,504
Fair value of assets acquired
Cash and cash equivalents	$	627,403
Investment securities	518,878
Loans receivable	3,116,899
Loans held for sale	3,089,442
Interest receivable	25,697
Premises and equipment	6,436
FHLB stock	35,831
Bank owned life insurance	17,781
Intangible assets	37,022
Deferred tax asset, net	125,452
Other assets	75,645
Total assets acquired	$	7,676,486
Fair value of liabilities assumed
Customer accounts	$	5,640,440
Borrowings	1,432,138
Junior subordinated deferrable interest debentures	50,175
Senior Debt	93,514
Accrued expenses and other liabilities	100,275
Total liabilities assumed	$	7,316,542
Net Assets Acquired			$	359,944
Goodwill			$	105,560

Schedule of Financing Receivables Acquired

The following table provides a summary of these PCD loans at acquisition:

	March 1, 2024
	(In thousands)
Principal of PCD loans acquired	$	293,204
PCD ACL at acquisition	(7,403)
Non-credit discount on PCD loans	(45,869)
Fair value of PCD loans	$	239,932

Schedule of Pro Forma Information

The pro forma amounts below do not reflect the Company's expectations as of the date of the pro forma information of further operating cost savings and other business synergies expected to be achieved, including revenue growth as a result of the Merger. As a result, actual amounts differed from the unaudited pro forma information presented.

	Unaudited Pro Forma for the Nine Months Ended
	June 30, 2024		June 30, 2023
	(in thousands)
Net-interest income	$	531,398	$	646,731
Non-interest income	$	47,493	$	40,965
Net income	$	142,921	$	238,473