What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2022-11-18 compared with 2021-11-19 · 176 added, 154 removed, 1671 unchanged (16% of the section changed)

Financial Statements and Supplementary Data

Index to financial statements and financial statement schedules:

Report of Independent Registered Public Accounting Firm (PCAOB ID:

Financial statements and supplementary data:

Consolidated Statements of Financial Condition

Consolidated Statements of Operations

Consolidated Statements of Comprehensive Income

Consolidated Statements of Shareholders' Equity

Consolidated Statements of Cash Flows

Notes to Consolidated Financial Statements

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

To the Shareholders and Board of Directors of

Washington Federal, Inc.

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We have audited the accompanying consolidated statements of financial condition of Washington Federal, Inc.

and subsidiaries (the “Company”) as of September 30, 2021 and 2020, and the related consolidated statements of operations, comprehensive income, shareholders' equity, and cash flows for each of the three years in the period ended September 30, 2021, and the related notes (collectively referred to as the "financial statements").

and subsidiaries (the “Company”) as of September 30, 2022 and 2021, the related consolidated statements of operations, comprehensive income, shareholders' equity, and cash flows for each of the three years in the period ended September 30, 2022, and the related notes (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2022, and 2021, and the results of its operations and its cash flows for each of the three years in the period ended September 30, 2022, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of September 30, 2021, based on the criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated November 19, 2021, expressed an unqualified opinion on the Company's internal control over financial reporting.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of September 30, 2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated November 18, 2022, expressed an unqualified opinion on the Company's internal control over financial reporting.

Basis for Opinion

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The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Allowance for Credit Losses - Refer to Notes A and E to the financial statements

Allowance for Loan Losses - Refer to Notes A and E to the financial statements

Critical Audit Matter Description

Estimates of expected credit losses under the current expected credit loss (“CECL”) methodology required under Financial Accounting Standards Board (FASB) Accounting Standards Codification No.

Estimates of expected credit losses on loans under the current expected credit loss (“CECL”) methodology required under Financial Accounting Standards Board ("FASB") Accounting Standards Codification No.

326, Financial Instruments - Credit Losses ("ASC 326") are based on relevant information about current conditions, past events, and reasonable and supportable forward-looking forecasts regarding collectability of the reported amounts.

In order to estimate the expected credit losses for loans and unfunded loan commitments, the Company used either a cohort or weighted average remaining maturities (“WARM”) methodology to determine the historical loss rate, by loan portfolio class, then considered whether qualitative adjustments to those historical loss rates were warranted.

As of September 30, 2021, the allowance for credit losses (“ACL”) was $171,300,000.

In order to estimate the allowance for loan losses ("ALL"), the Company used either a cohort or weighted average remaining maturities (“WARM”) methodology to determine the historical loss rate, by loan portfolio class, then considered whether qualitative adjustments to those historical loss rates were warranted.

As of September 30, 2022, the ALL was $172,808,000.

Significant management judgments are required in determining whether, and to what extent, qualitative adjustments for each portfolio loan class are required.

These adjustments are made after considering the conditions over the period from which historical loss

experience was based and are split into two components:

1) asset or class specific risk characteristics or current conditions at the reporting date related to portfolio credit quality, remaining payments, volume and nature, credit culture and management, business environment or other management factors, not captured in the historical loss rates and 2) reasonable and supportable forecasts of future economic conditions and collateral values.

Given the significance of the ACL, reliance on historical loss rates and the management judgments required for quantitative and qualitative evaluation of past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts, performing audit procedures to evaluate the ACL requires a high degree of auditor judgment and increased extent of effort, including the need to involve our credit specialists.

These adjustments are made after considering the conditions over the period from which historical loss experience was based and are split into two components:

environment or other management factors, not captured in the historical loss rates and 2) reasonable and supportable forecasts of future economic conditions and collateral values.

Given the significance of the ALL, reliance on historical loss rates and the management judgments required for quantitative and qualitative evaluation of past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts, performing audit procedures to evaluate the ALL requires a high degree of auditor judgment and increased extent of effort.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the ACL, included the following, among others:

Our audit procedures related to the ALL, included the following, among others:

• We tested the effectiveness of management’s controls over (1) key assumptions and judgments, (2) the CECL estimation model for loan portfolios, (3) the qualitative adjustments determined by management including the reasonable and supportable forecast adjustment selected by management, (4) and disclosures.

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• We assessed management’s determination whether, and to what extent, a qualitative adjustment was warranted to certain loan portfolio classes to account for specific risk characteristics or current conditions that differ from the period over which the historical loss rate was determined.

/s/ Deloitte & Touche LLP

Seattle, Washington

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Advance payments by borrowers for taxes and insurance 50,051 47,016

Federal and state income tax liabilities, net 3,306 —

Accrued expenses and other liabilities 289,944 215,382

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300,000 and 300,000 shares outstanding

300,000 300,000

Common stock, $ 1.00 par value, 300,000,000 shares authorized;

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Balance at September 30, 2019 $ — $ 135,540 $ 1,672,417 $ 1,335,909 $ 15,292 $ ( 1,126,163 ) $ 2,032,995

Adjustment pursuant to adoption of ASU 2016-13 — — — ( 21,945 ) — — ( 21,945 )

Net income — — — 173,438 — — 173,438

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Stock-based compensation expense — 179 6,290 — — — 6,469

Repurchase of stock warrants — 39 ( 39 ) — — — —

Treasury stock purchased — — — — — ( 112,133 ) ( 112,133 )

Balance at September 30, 2020 — 135,727 1,678,843 1,420,906 16,953 ( 1,238,296 ) 2,014,133

Adjustment pursuant to adoption of ASU 2016-13 — — — ( 21,945 ) — — ( 21,945 )

Net income — — — 183,615 — — 183,615

Other comprehensive income (loss) — — — 52,832 — 52,832

Issuance of preferred stock, net 300,000 — ( 6,675 ) — — — 293,325

Dividends on common stock ($ 0.91 per share)

— — — ( 65,876 ) — — ( 65,876 )

Dividends on preferred stock ($ 33.45 per share)

— — — ( 10,034 ) — — ( 10,034 )

Proceeds from stock-based awards — 20 319 — — — 339

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Other comprehensive income (loss) — — — — ( 17,304 ) — ( 17,304 )

Issuance of preferred stock, net 300,000 — ( 6,675 ) — — — 293,325

Dividends on common stock ($ 0.95 per share)

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Gain on early termination of long term borrowing hedge — ( 14,110 ) —

Gain on settlements of bank owned life insurance ( 1,385 ) — —

Impairment loss on premises and equipment — 944 6,431

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Proceeds from sales of available-for-sale investment securities 5,020 1,499 204,351

Held-to-maturity securities purchased ( 195,357 ) — —

Principal payments and maturities of held-to-maturity securities 95,326 332,001 356,532

Proceeds from sales of real estate owned 6,978 3,340 5,022

Purchase of strategic investments — — ( 5,000 )

Proceeds from settlements of bank owned life insurance 2,266 — —

Net cash received (paid) in business combinations — ( 1,500 ) ( 2,810 )

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Non-cash financing activities

Stock issued upon exercise of warrants — — 1,082

Preferred stock dividend payable 3,656 3,656

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Company and nature of operations.

Washington Federal Bank, National Association, a federally-insured national bank dba WaFd Bank (the “Bank” or “WaFd Bank”), was founded on April 24, 1917 in Ballard, Washington and is engaged primarily in providing lending, depository, insurance and other banking services to consumers, mid-sized to large businesses, and owners and developers of commercial real estate.

Washington Federal, Inc., a Washington corporation (the “Company”), was formed as the Bank’s holding company in November, 1994.

As used throughout this document, the terms “Washington Federal” or the “Company” refer to the Company and its consolidated subsidiaries, and the term “Bank” refers to the operating subsidiary, Washington Federal Bank, National Association.

Washington Federal Bank, a federally-insured Washington state chartered commercial bank dba WaFd Bank (the “Bank” or “WaFd Bank”), was founded on April 24, 1917 in Ballard, Washington and is engaged primarily in providing lending, depository, insurance and other banking services to consumers, mid-sized to large businesses, and owners and developers of commercial real estate.

Washington Federal, Inc., a Washington corporation was formed as the Bank’s holding company in November, 1994.

As used throughout this document, the terms “Washington Federal,” the “Company” or "we" or "us" and "our" refer to the Washington Federal, Inc.

and its consolidated subsidiaries, and the term “Bank” refers to the operating subsidiary, Washington Federal Bank.

The Company is headquartered in Seattle, Washington.

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Restricted cash balances - Based on the level of vault cash on hand, the Company was not required to maintain cash reserve balances with the Federal Reserve Bank as of September 30, 2022.

As of September 30, 2021 and September 30, 2020, the Company pledged cash collateral related to derivative contracts of $ 1,500,000 and $ 97,600,000 , respectively.

As of September 30, 2022 and September 30, 2021, the Company held counterparty cash collateral of $ 284,400,000 and pledged cash collateral of $ 1,500,000 , respectively, related to derivative contracts.

Equity securities - The Company records equity securities within Other assets in its Consolidated Statements of Financial Condition.

Investments in equity securities with readily determinable fair values (marketable) are measured at fair value, with changes in the fair value recognized as a component of Other income in the Consolidated Statements of Operations.

Investments in equity investments that do not have readily determinable fair values (non-marketable) are accounted for at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer, also referred to as the measurement alternative.

Any adjustments to the carrying value of these investments are recorded in Other income in the Consolidated Statements of Operations.

Debt securities, including mortgage-backed securities.

The Company accounts for debt securities in two categories:

held-to-maturity and available-for-sale.

Premiums and discounts on debt securities are deferred and recognized into income over the contractual life of the asset using the effective interest method.

These equity investments are accounted for under different methods.

• Low-income housing tax credit investments are accounted for under the proportional amortization method in accordance with ASU 2014-1.

• For other equity investments where the Company has significant influence, the Company applies the equity method of accounting, which adjusts the carrying value of the investment to recognize a proportionate share of the financial results of the investment entity, regardless of whether any distribution is made.

Any adjustments to the fair value of these investments are recorded in Other income in the Consolidated Statements of Operations.

• For other equity investments where neither ASU 2014-1 nor the equity method of accounting is applicable, the Company applies the fair value adjustment method of ASU 2016-1.

Any adjustments to the fair value of these investments are recorded in Other income in the Consolidated Statements of Operations.

Fair value is determined by reference to readily determinable market values if applicable.

Equity investments that do not have readily determinable

WASHINGTON FEDERAL, INC.

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YEARS ENDED SEPTEMBER 30, 2022, 2021, AND 2020

fair values (non-marketable) are generally accounted for at cost minus impairment, if any, plus or minus changes resulting from observable transactions involving the same or similar investments from the same issuer, also referred to as the measurement alternative.

Under the NAV expedient for fair value measurement, equity investments in qualified real estate funds can use the net asset value (NAV) determined by the fund as fair value for the investment.

At September 30, 2022, equity investments held by the Company and recorded at NAV had a carrying amount of $ 41,476,000 and a remaining unfunded commitment of $ 7,511,000 .

These NAV based investments cannot be transferred without consent and we do not have redemption rights.

Equity investments measured at NAV are not classified in the fair value hierarchy.

Debt securities, including mortgage-backed securities.

The Company accounts for debt securities in two categories:

held-to-maturity and available-for-sale.

Premiums and discounts on debt securities are deferred and recognized into income over the contractual life of the asset using the effective interest method.

Held-to-maturity securities are accounted for at amortized cost, but the Company must have both the positive intent and the ability to hold those securities to maturity.

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Loans that are performing in accordance with their contractual terms are carried at the unpaid principal balance, net of premiums, discounts and net deferred loan fees.

Net deferred loan fees include nonrefundable loan origination fees less direct loan origination costs.

Net deferred loan fees include nonrefundable loan origination

WASHINGTON FEDERAL, INC.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2022, 2021, AND 2020

fees less direct loan origination costs.

Net deferred loan fees, premiums and discounts are amortized into interest income using either the interest method or straight-line method over the terms of the loans, adjusted for actual prepayments.

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Allowance for Credit Losses (Loans Receivable).

Effective October 1, 2019, the Company has applied FASB ASU 2016-13, Financial Instruments - Credit Losses ("ASC 326"), so the allowance calculation is based on current expected credit loss methodology ("CECL").

Prior to October 1, 2019, the calculation was based on incurred loss methodology.

WASHINGTON FEDERAL, INC.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2021, 2020, AND 2019

maintains an allowance for credit losses (“ACL”) for the expected credit losses of the loan portfolio as well as unfunded loan commitments.

The Company applies FASB ASU 2016-13, Financial Instruments - Credit Losses ("ASC 326"), so the allowance calculation is based on current expected credit loss methodology ("CECL").

The Company maintains an allowance for credit losses (“ACL”) for the expected credit losses of the loan portfolio as well as unfunded loan commitments.

The amount of ACL is based on ongoing, quarterly assessments by management.

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1) asset or class specific risk characteristics or current conditions at the reporting date related to portfolio credit quality, remaining payments, volume and nature, credit culture and management, business environment or other management factors and 2) reasonable and supportable forecast of future economic conditions and collateral values.

WASHINGTON FEDERAL, INC.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2022, 2021, AND 2020

The Company performs a quarterly asset quality review which includes a review of forecasted gross charge-offs and recoveries, nonperforming assets, criticized loans, risk rating migration, delinquencies, etc.

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These individually evaluated loans are removed from their respective pools and typically represent collateral dependent loans but may also include other non-performing loans or troubled debt restructurings (“TDRs”).

In addition, the Company individually evaluates “reasonably

WASHINGTON FEDERAL, INC.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2021, 2020, AND 2019

expected” TDRs, which are identified by the Company as a loan expected to be classified as a TDR within the next six months.

In addition, the Company individually evaluates “reasonably expected” TDRs, which are identified by the Company as a loan expected to be classified as a TDR within the next six months.

Management judgment is utilized to make this determination.

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Accrued interest receivable.

Upon adoption of ASC 326, the Company made the following elections regarding accrued interest receivable ("AIR"):

The Company has made the following elections regarding accrued interest receivable ("AIR"):

• Presenting accrued interest receivable balances separately from their underlying instruments within the consolidated statements of financial condition.

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We believe accrued interest receivable recorded as of September 30, 2022 is collectible.

WASHINGTON FEDERAL, INC.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2022, 2021, AND 2020

Off-balance-sheet credit exposures.

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See Note M "Commitments and Contingencies" for details.

WASHINGTON FEDERAL, INC.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2021, 2020, AND 2019

Client swap program hedges.

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The Bank amortizes the core deposit intangibles over their estimated lives using an accelerated method.

WASHINGTON FEDERAL, INC.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2022, 2021, AND 2020

The table below provides detail regarding the Company's intangible assets.

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The table below presents the estimated future amortization expense of core deposit and other intangibles for the next five years.

WASHINGTON FEDERAL, INC.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2021, 2020, AND 2019

Fiscal Year Expense

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Regulatory matters.

On February 28, 2018, pursuant to a Stipulation and Consent to the Issuance of a Consent Order (the “Consent Order”), the Office of the Comptroller of the Currency issued a Consent Order relating to the Bank, the terms of which are intended to further enhance its Bank Secrecy Act ("BSA") program.

The Consent Order requires the Bank to create a BSA-focused action plan, supplement existing customer due diligence policies and procedures, perform a BSA risk assessment, perform a transaction activity look-back, enhance training, and complete independent testing.

On September 30, 2021, the Bank announced it agreed to a $ 2,500,000 civil money penalty relating to the Consent Order, without admitting to the alleged violations.

The Consent Order remains in place.

The Bank is working cooperatively with the OCC to implement the necessary changes to comply with the provisions of the Consent Order.

The Bank was previously subject to a Consent Order from the OCC for its BSA program that was issued in February 2018 (the “BSA Consent Order”).

The BSA Consent Order resulted in the Bank incurring significant expenses to

WASHINGTON FEDERAL, INC.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2022, 2021, AND 2020

comply with it, including payment of a $ 2,500,000 civil money penalty.

The OCC terminated the BSA Consent Order in December 2021.

On October 9, 2013, the CFPB entered a Consent Order against the Bank that required the Bank to pay a civil money penalty of $ 34,000 , and to adopt an enhanced compliance program related to reporting Home Mortgage Disclosure Act ("HMDA") data.

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The 2020 Consent Order required the Bank to pay a $ 200,000 civil money penalty and develop and implement a HMDA compliance management system.

Both HMDA Consent Orders remain in place.

Subsequent events.

The Company has evaluated subsequent events for adjustment to or disclosure in the Company’s consolidated financial statements through the date of this report, and the Company has not identified any recordable or disclosable events, not otherwise reported in these consolidated financial statements or the notes thereto.

WASHINGTON FEDERAL, INC.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2021, 2020, AND 2019

On November 13, 2022, the Company announced that it had entered into a definitive merger agreement pursuant to which it will acquire Luther Burbank Corporation (NASDAQ:

LBC, “Luther Burbank”) and its wholly-owned subsidiary, Luther Burbank Savings, in an all-stock transaction valued at approximately $ 654 million based upon the closing price of Washington Federal’s common stock on November 11, 2022.

Upon closing of the transaction, which was unanimously approved by the boards of directors of each of Washington Federal and Luther Burbank, and is subject to shareholder and regulatory approval and other customary closing conditions, Luther Burbank shareholders will be entitled to receive 0.3353 shares of Washington Federal common stock for each share of Luther Burbank common stock they own.

The transaction, which is anticipated to close as early as the second calendar quarter of 2023, will expand Washington Federal’s franchise into California.

The Company has evaluated subsequent events for adjustment to or disclosure in the Company’s consolidated financial statements through the date of this report and has not identified any other recordable or disclosable events.

NOTE B - NEW ACCOUNTING PRONOUNCEMENTS

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This guidance is effective immediately and the amendments may be applied prospectively through December 31, 2022.

The Company is currently in the process of evaluating the amendments and determining the impact to its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract .

The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software.

The amendments also require the entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement, including reasonably certain renewal periods.

The amendments in the ASU are effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years.

The Company adopted this ASU beginning October 1, 2020 and it did not have a material impact on its consolidated financial statements.

The Company has evaluated the regulatory requirements to cease the use of LIBOR and has put in place systems and capabilities for this purpose.

The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements.

In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815) .

The amendments in this ASU clarify the guidance on ASC 815 on fair value hedge accounting of interest rate risk for portfolios and financial assets.

Among other things, the amended guidance establishes the "last-of-layer" method for making the fair value hedge accounting for these portfolios more accessible and renames that method the "portfolio layer" method.

The amendments in this ASU are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years.

We do not expect the amendments to have a material effect on our consolidated financial statements.

In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326) .

The amendments in this ASU eliminate the guidance on troubled debt restructurings while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors made to borrowers experiencing financial difficulties.

The ASU also requires that entities disclose current-period gross charge-offs by year of origination for loans and leases.

The amendments in this ASU are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years.

We do not expect the amendments to have a material effect on our consolidated financial statements.

WASHINGTON FEDERAL, INC.

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1 to 5 years $ 40,403 $ — $ ( 1,049 ) $ 39,354 3.03 %

5 to 10 years 14,064 136 — 14,200 2.05

Asset-backed securities

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Municipal bonds due

Within 1 year 1,493 17 — 1,510 —

5 to 10 years 5,751 — ( 361 ) 5,390 3.00

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1 to 5 years 47,339 240 — 47,579 0.44 %

5 to 10 years $ 14,064 $ 136 $ — $ 14,200 2.05

Asset-backed securities

1 to 5 years 19,730 — ( 434 ) 19,296 0.52

5 to 10 years 71,207 412 ( 97 ) 71,522 0.57

Over 10 years 973,892 14,069 ( 98 ) 987,863 0.94

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Municipal bonds due

Within 1 year 1,493 17 — 1,510 —

5 to 10 years 5,781 294 — 6,075 0.22

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Agency pass-through certificates 366,025 13,522 — 379,547 3.17

Commercial MBS 6,904 — ( 52 ) 6,852 1.02

366,025 13,522 — 379,547 3.17

$ 2,456,095 $ 64,351 $ ( 2,640 ) $ 2,517,806 1.89 %

During fiscal year 2020, as permitted in conjunction with the adoption of ASU 2019-04, the Company reclassified $ 374,680,000 of prepayable debt securities from held-to-maturity to available-for-sale.

The Company purchased $ 530,227,000 of available-for-sale investment securities and no held-to-maturity investment securities during 2021.

The Company purchased $ 587,942,000 of available-for-sale investment securities and $ 195,357,000 held-to-maturity investment securities during 2022.

Sales of available-for-sale securities totaled $ 5,020,000 and there were no sales of held-to-maturity investment securities in 2022.

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Available-for-sale securities

Corporate debt securities $ ( 27,072 ) $ 288,753 $ — $ — $ ( 27,072 ) $ 288,753

Municipal bonds ( 1,061 ) 14,561 — — ( 1,061 ) 14,561

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

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Available-for-sale securities

Corporate debt securities $ ( 74 ) $ 45,875 $ ( 405 ) $ 24,596 $ ( 479 ) $ 70,471

Asset-backed securities $ ( 15 ) $ 4,639 $ ( 614 ) $ 70,058 $ ( 629 ) $ 74,697

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The following summary breaks down the Company's fixed rate and adjustable rate loans by time to maturity or to rate adjustment.

See Note G for details regarding fair value hedges of individual fixed rate commercial loans and also hedges of a specified portion of pools of prepayable fixed rate mortgage loans under the "last of layer" method.

September 30, 2022

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As of September 30, 2022, all of these loans were performing in accordance with contractual terms.

WASHINGTON FEDERAL, INC.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2021, 2020, AND 2019

The following table sets forth the amortized cost basis of loans receivable for non-accrual loans and loans 90 days or more past due and still accruing.

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% of total loans 0.21 % 0.23 %

WASHINGTON FEDERAL, INC.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2022, 2021, AND 2020

The following tables break down loan delinquencies by loan portfolio segment and class.

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Delinquency % 99.83 % 0.02 % 0.02 % 0.13 % 0.17 %

WASHINGTON FEDERAL, INC.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2021, 2020, AND 2019

September 30, 2021 Days Delinquent Based on $ Amount of Loans % based

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In total, 1,472 consumer loans and 221 commercial loans were approved for deferrals.

As of September 30, 2021, 18 mortgage loans totaling $ 5,600,000 and no commercial loans that had been modified remain in deferral.

As of September 30, 2022, 1 mortgage loan

WASHINGTON FEDERAL, INC.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2022, 2021, AND 2020

totaling $ 64,000 and no commercial loans that had been modified remain in deferral.

These loans are not considered past due until after the deferral period is over and scheduled payments have resumed.

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This program came about through the CARES Act to help small businesses keep their employees employed through the COVID-19 shelter in place orders.

In 2020, the Company assisted over 6,500 businesses with more than $ 780,000,000 in PPP loan originations.

In 2021 we assisted over 2,500 small businesses with $ 320,000,000 in PPP loans.

As of September 30, 2021, approximately 7,000 PPP loans totaling $ 773,000,000 have been forgiven by the SBA.

The Company assisted over 9,000 businesses with approximately $ 1,085,000,000 in PPP loan originations.

As of September 30, 2022, approximately 8,800 PPP loans totaling $ 1,075,000,000 have been forgiven by the SBA and we continued to hold PPP loans receivable with an amortized cost of $ 10,141,000 .

Most TDRs are accruing and performing loans where the borrower has proactively approached the Company about modifications due to temporary financial difficulties.

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• Pass – the credit does not meet one of the definitions below.

WASHINGTON FEDERAL, INC.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2021, 2020, AND 2019

• Special mention – A special mention credit is considered to be currently protected from loss but is potentially weak.

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Partial charge-off versus full charge-off may be taken if the collateral offers some identifiable protection.

The following tables present by credit quality indicator, loan class, and year of origination, the amortized cost basis of loans receivable as of September 30, 2021 and September 30, 2020.

WASHINGTON FEDERAL, INC.

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YEARS ENDED SEPTEMBER 30, 2022, 2021, AND 2020

The following tables present by credit quality indicator, loan class, and year of origination, the amortized cost basis of loans receivable as of September 30, 2022 and September 30, 2021.

September 30, 2022 Term Loans Amortized Cost Basis by Origination Year

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Pass $ 657,144 $ 778,936 $ 500,917 $ 168,568 $ 157,144 $ 315,858 $ 34,102 $ — $ 2,612,669

Special Mention — 1,763 — 3,111 — — — — 4,874

Substandard 3,951 — 1,729 — 6,560 1,570 — — 13,810

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Pass $ 510,764 $ 671,611 $ 142,816 $ 27,260 $ 375 $ — $ 68,808 $ — $ 1,421,634

Special Mention 931 — — — — — — — 931

Substandard — 2,257 — — — — — — 2,257

2 unchanged sentences

Pass $ 100,022 $ 64,539 $ 16,934 $ 3,391 $ 8,175 $ 27,955 $ 2,600 $ — $ 223,616

Substandard — — — — 2,340 — — — 2,340

Total $ 100,022 $ 64,539 $ 16,934 $ 3,391 $ 8,175 $ 27,955 $ 2,600 $ — $ 223,616

19 unchanged sentences

Current $ 235,030 $ 150,434 $ 9,811 $ 1,155 $ 478 $ — $ — $ — $ 396,908

90+ days past due — 435 — — — — — — 435

Total $ 235,030 $ 150,869 $ 9,811 $ 1,155 $ 478 $ — $ — $ — $ 397,343

3 unchanged sentences

90+ days past due — — — — — 60 — — 60

90+ days past due — — — — 116 154 — — 270

Total $ 53,396 $ 60,454 $ 16,015 $ 5,399 $ 3,433 $ 13,248 $ — $ — $ 151,945

2 unchanged sentences

60 days past due — — — — — 29 17 — 46

90+ days past due — — — — — — 227 — 227

Total $ — $ — $ — $ — $ — $ 4,473 $ 200,571 $ 989 $ 206,033

37 unchanged sentences

Pass $ 89,770 $ 37,773 $ 14,070 $ 15,835 $ 13,635 $ 16,393 $ 2,600 $ — $ 190,076

Special Mention — — — — — 15,573 — — 15,573

Substandard — — — — 2,340 — — — 2,340

Total $ 89,770 $ 37,773 $ 14,070 $ 15,835 $ 15,975 $ 16,393 $ 2,600 $ — $ 192,416

24 unchanged sentences

60 days past due — 142 — — — 165 — — 307

90+ days past due — — — — 116 154 — — 270

Total $ 85,342 $ 28,557 $ 9,012 $ 4,454 $ 5,520 $ 15,649 $ — $ — $ 148,534

2 unchanged sentences

90+ days past due — — — — — 30 236 — 266

90+ days past due — — — — — 30 350 — 380

Total $ — $ — $ — $ — $ — $ 4,825 $ 160,435 $ 1,680 $ 166,940

35 unchanged sentences

$ 171,300 $ ( 2,139 ) $ 5,647 $ ( 2,000 ) $ 172,808

Twelve Months Ended September 30, 2020 Beginning Allowance

(Before ASC 326 Adoption) Impact of ASC 326 Adoption Charge-offs Recoveries Provision &

Transfers Ending Allowance (Before ASC 326 Adoption)

Twelve Months Ended September 30, 2021 Beginning Allowance Charge-offs Recoveries Provision &

Transfers Ending Allowance

(In thousands)

18 unchanged sentences

YEARS ENDED SEPTEMBER 30, 2022, 2021, AND 2020

The Company recorded a provision for credit losses of $ 500,000 in fiscal 2021, compared to provision of $ 21,750,000 in 2020.

The significant provision in 2020 was due to higher expected losses with the onset of the global pandemic.

In 2021, provisioning for net growth in the loan portfolio was mostly offset by releases related to improvements in macroeconomic variables used in the forecast component of the reserve.

The Company had recoveries, net of charge-offs, of $ 6,345,000 for the year ended September 30, 2021, compared with $ 3,271,000 of net recoveries for the year ended September 30, 2020.

The Company recorded a provision for credit losses of $ 3,000,000 in 2022, compared to a provision of $ 500,000 for 2021.

In 2022, provisioning for net growth in the loan portfolio was mostly offset by improvements in the credit quality of certain loan portfolios related to strong real estate markets and collateral conditions.

For the year ended September 30, 2022, net recoveries were $ 3,508,000 , compared to $ 6,345,000 in the prior year.

A loan is charged-off when the loss is estimable and it is confirmed that the borrower is not expected to be able to meet its contractual obligations.

No allowance was recorded as of September 30, 2021 for the $ 305,162,000 of PPP loans, which are included in the commercial & industrial loan category, due to the government guarantee.

No allowance was recorded as of September 30, 2022 or September 30, 2021 for the PPP loans, which are included in the commercial & industrial loan category, due to the government guarantee.

Non-accrual loans increased to $ 34,534,000 as of September 30, 2022, from $ 31,749,000 as of September 30, 2021.

118 unchanged sentences

YEARS ENDED SEPTEMBER 30, 2022, 2021, AND 2020

The following tables present the balance and level in the fair value hierarchy for assets and liabilities that are measured at fair value on a recurring basis.

The following tables present the balance and level in the fair value hierarchy for assets and liabilities that are measured at fair value on a recurring basis (with the exception of those measured using the NAV practical expedient).

September 30, 2022

10 unchanged sentences

Client swap program hedges — 67,260 — 67,260

Commercial loan hedges — 2,517 — 2,517

Mortgage loan fair value hedges — 36,765 — 36,765

Borrowings cash flow hedges — 179,945 — 179,945

2 unchanged sentences

Client swap program hedges $ — $ 67,260 $ — $ 67,260

Commercial loan fair value hedges — 2,177 — 2,177

Mortgage loan fair value hedges — 1,641 — 1,641

Total Financial Liabilities $ — $ 67,260 $ — $ 67,260

WASHINGTON FEDERAL, INC.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2021, 2020, AND 2019

September 30, 2021

10 unchanged sentences

Client swap program hedges — 10,983 — 10,983

Borrowings cash flow hedges — 42,442 — 42,442

Total Financial Assets $ — $ 2,191,684 $ — $ 2,191,684

3 unchanged sentences

Mortgage loan fair value hedges — 1,641 — 1,641

Borrowing hedges — 17,375 — 17,375

Total Financial Liabilities $ — $ 14,801 $ — $ 14,801

WASHINGTON FEDERAL, INC.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2022, 2021, AND 2020

There were no transfers between, into and/or out of Level 1, 2 or 3 during the year ended September 30, 2022 or September 30, 2021.

5 unchanged sentences

Level 3 assets recorded at fair value on a nonrecurring basis includes loans for which an allowance was established or a partial charge-off was recorded based on the fair value of collateral, as well as real estate owned where the fair value of the property was less than the cost basis.

WASHINGTON FEDERAL, INC.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2021, 2020, AND 2019

The following tables present the aggregated balance of assets that were measured at fair value on a nonrecurring basis for the periods presented, and the total gains (losses) resulting from those fair value adjustments during the respective periods.

16 unchanged sentences

(2) The gains (losses) represent aggregate write-downs and charge-offs on real estate owned.

At September 30, 2021, there was $ 152,000 in foreclosed residential real estate properties held as REO.

At September 30, 2022, there were no foreclosed residential real estate properties held as REO.

The recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process was $ 3,627,000 .

WASHINGTON FEDERAL, INC.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2022, 2021, AND 2020

Fair Values of Financial Instruments

3 unchanged sentences

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.

WASHINGTON FEDERAL, INC.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2021, 2020, AND 2019

September 30, 2022 September 30, 2021

17 unchanged sentences

Agency pass-through certificates 2 463,299 406,860 366,025 379,547

Commercial MBS 2 — — 6,904 6,852

Total held-to-maturity securities 463,299 406,860 366,025 379,547

2 unchanged sentences

Other assets - client swap program hedges 2 67,260 67,260 10,983 10,983

Other assets - commercial loan fair value hedges 2 2,517 2,517 — —

Other assets - mortgage loan fair value hedges 2 36,765 36,765 — —

Other assets - borrowings cash flow hedges 2 179,945 179,945 42,442 42,442

5 unchanged sentences

Other liabilities - mortgage loan fair value hedges 2 — — 1,641 1,641

Other liabilities - borrowings cash flow hedges 2 — — 17,375 17,375

The following methods and assumptions were used to estimate the fair value of financial instruments:

2 unchanged sentences

Equity securities which are exchange traded are considered a Level 1 input method.

WASHINGTON FEDERAL, INC.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2022, 2021, AND 2020

Loans receivable – Fair values are estimated first by stratifying the portfolios of loans with similar financial characteristics.

3 unchanged sentences

MBS benchmark prices are used as a base price, with further loan level pricing adjustments made based on individual loan characteristics such as FICO score, LTV, Property Type and occupancy.

For all other loan categories an estimate of fair value is then calculated based on discounted cash flows using a discount

WASHINGTON FEDERAL, INC.

AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2021, 2020, AND 2019

rate offered and observed in the market on similar products, plus an adjustment for liquidity to reflect the non-homogeneous nature of the loans, as well as, an annual loss rate based on historical losses to arrive at an estimated exit price fair value.

For all other loan categories an estimate of fair value is then calculated based on discounted cash flows using a discount rate offered and observed in the market on similar products, plus an adjustment for liquidity to reflect the non-homogeneous nature of the loans, as well as, an annual loss rate based on historical losses to arrive at an estimated exit price fair value.

Fair value for impaired loans is also based on recent appraisals or estimated cash flows discounted using rates commensurate with risk associated with the estimated cash flows.

25 unchanged sentences

$ 1,644,355 $ 53,425 $ 1,159,033 $ 14,801

The Company enters into interest rate swaps to hedge interest rate risk.

These arrangements include hedges of individual fixed rate commercial loans and also hedges of a specified portion of pools of prepayable fixed rate mortgage loans under the "last of layer" method.

These relationships qualify as fair value hedges under FASB ASC 815, Derivatives and Hedging ("ASC 815"), which provides for offsetting of the recognition of gains and losses of the respective interest rate swap and the hedged items.

Gains and losses on interest rate swaps designated in these hedge relationships, along with the offsetting gains and losses on the hedged items attributable to the hedged risk, are recognized in current earnings within the same income statement line item.

WASHINGTON FEDERAL, INC.

2 unchanged sentences

YEARS ENDED SEPTEMBER 30, 2022, 2021, AND 2020

The Company enters into interest rate swaps to hedge interest rate risk.

These arrangements include hedges of individual fixed rate commercial loans and also hedges of a specified portion of pools of prepayable fixed rate mortgage loans under the "last of layer" method.

Upon electing to apply ASC 815 fair value hedge accounting, the carrying value of the hedged items are adjusted to reflect the cumulative impact of changes in fair value attributable to the hedged risk.

7 unchanged sentences

At September 30, 2022, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $ 1,119,975,000 , the cumulative basis adjustment associated with the hedging relationships was $( 36,458,000 ), and the amount of the designated hedged items was $ 470,000,000 .

During the year ended September 30, 2021, hedge accounting was discontinued on $ 30,000,000 ( 30 %) of a $ 100,000,000 last of layer hedge.

The $ 1,238,000 unamortized discount associated with the terminated portion of the hedge 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, 2022, the amortized cost basis of the hedged commercial loans was $ 39,521,000 and the cumulative basis adjustment associated with the hedging relationships was $( 2,632,000 ).

During the year ended September 30, 2021, hedge accounting was discontinued on a $ 46,240,000 commercial loan hedge.

(In thousands) September 30, 2021

4 unchanged sentences

At September 30, 2021, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $ 1,468,517,000 , the cumulative basis adjustment associated with the hedging relationships was $ 1,864,000 , and the amount of the designated hedged items was 470,000,000 .

During the year ended September 30, 2021, hedge accounting was discontinued on $ 30,000,000 ( 30 %) of a $ 100,000,000 last of layer hedge.

The $ 1,238,000 unamortized discount associated with the terminated portion of the hedge 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, 2021, the amortized cost basis of the hedged commercial loans was $ 46,970,000 and the cumulative basis adjustment associated with the hedging relationships was $ 2,351,000 .

During the year ended September 30, 2021, hedge accounting was discontinued on a $ 46,240,000 commercial loan hedge.

The Company has entered into interest rate swaps to convert certain short-term borrowings to fixed rate payments.

The primary purpose of these hedges is to mitigate the risk of changes in future cash flows resulting from increasing interest rates.

For qualifying cash flow hedges under ASC 815, gains and losses on the interest rate swaps are recorded in accumulated other comprehensive income ("AOCI") and then reclassified into earnings in the same period the hedged cash flows affect earnings and within the same income statement line item as the hedged cash flows.

As of September 30, 2021, the maturities for hedges of adjustable rate borrowings ranged from less than three years to nine years , with the weighted average being 7.5 years.

For qualifying

WASHINGTON FEDERAL, INC.

2 unchanged sentences

YEARS ENDED SEPTEMBER 30, 2022, 2021, AND 2020

cash flow hedges under ASC 815, gains and losses on the interest rate swaps are recorded in accumulated other comprehensive income ("AOCI") and then reclassified into earnings in the same period the hedged cash flows affect earnings and within the same income statement line item as the hedged cash flows.

As of September 30, 2022, the maturities for hedges of adjustable rate borrowings ranged from less than two years to eight years , with the weighted average being 6.5 years.

The following table presents the impact of derivative instruments (cash flow hedges on borrowings) on AOCI for the periods presented.

26 unchanged sentences

There was no net impact to the statement of operations for the years ended September 30, 2022 and 2021 as the changes in fair value of the receive fixed swap and pay fixed swap offset each other.

As of September 30, 2021, $ 28,828,000 of the outstanding notional balance is associated with a related party loan.

As of September 30, 2022, none of the outstanding notional balance is associated with related party loans.

WASHINGTON FEDERAL, INC.

29 unchanged sentences

WAFD Insurance Group, Inc.

is a wholly-owned subsidiary of Washington Federal Bank, N.A.

that operates as an insurance agency, selling and marketing property and casualty insurance policies for a small number of high-quality insurance carriers.

is a wholly-owned subsidiary of Washington Federal Bank that operates as an insurance agency, selling and marketing property and casualty insurance policies for a small number of high-quality insurance carriers.

WAFD Insurance Group, Inc.

80 unchanged sentences

1 to 3 years 100,000 400,000

3 to 5 years — 350,000

More than 5 years — —

$ 2,125,000 $ 1,720,000

As of September 30, 2022, there are no advances that are callable by the FHLB.

Taking into account cash flow hedges, the weighted average effective maturity of FHLB advances at September 30, 2022 is 3.25 years.

WASHINGTON FEDERAL, INC.

2 unchanged sentences

YEARS ENDED SEPTEMBER 30, 2022, 2021, AND 2020

As of September 30, 2021, there is a $ 100,000,000 advance that is callable quarterly by the FHLB.

Taking into account cash flow hedges, the weighted average effective maturity of FHLB advances at September 30, 2021 is 5.03 years.

Financial information pertaining to the weighted-average cost and the amount of FHLB advances were as follows.

78 unchanged sentences

Lease right-of-use assets 5,992 6,249

Equity investments 5,323 2,982

Other 4,141 6,157

47 unchanged sentences

This provides plan participants more investment flexibility.

The Company anticipates that all eligible employees, regardless of personal plan participation, will continue to receive an annual discretionary profit sharing contribution from the Company, now capped at 7 % of eligible compensation with this change.

Additionally, the Company anticipates that all eligible employees, regardless of personal plan participation, will continue to receive an annual discretionary profit sharing contribution from the Company.

Company contributions to the Plan amounted to $ 10,559,000 , $ 9,905,000 and $ 8,333,000 for the years ended 2022, 2021 and 2020, respectively.

14 unchanged sentences

Stock Option Awards:

There were no stock options granted under the incentive plans during 2021, compared to 1,043,349 stock options granted in 2020 and 356,343 stock options granted in 2019 under the previous plan.

There were 352,043 stock options granted under the incentive plans during 2022, compared to no stock options granted in 2021 and 1,043,349 stock options granted in 2020 under the previous plan.

WASHINGTON FEDERAL, INC.

8 unchanged sentences

Outstanding at September 30, 2020 1,229,724 $ 28.93 9 $ —

Granted 1,043,349 29.53

Exercised ( 19,846 ) 17.06

1 unchanged sentence

Outstanding at September 30, 2021 1,030,323 29.14 8 5,330

Granted 352,043 32.49

Exercised ( 64,415 ) 28.16

24 unchanged sentences

The restricted stock grants are subject to a service condition and vest over a period of one to seven years .

Certain grants of restricted stock to executive officers are also subject to additional market and performance conditions based upon meeting certain total shareholder return targets pre-established by the Board.

The Company had a total of 489,777 shares of restricted stock outstanding as of September 30, 2022, with a total grant date fair value of $ 10,598,774 .

WASHINGTON FEDERAL, INC.

2 unchanged sentences

YEARS ENDED SEPTEMBER 30, 2022, 2021, AND 2020

The Company had a total of 522,991 shares of restricted stock outstanding as of September 30, 2021, with a total grant date fair value of $ 10,438,900 .

The following table summarizes information about unvested restricted stock activity.

19 unchanged sentences

The depositary shares are traded on the NASDAQ Global Select Market under the symbol "WAFDP." The Series A Preferred Stock is redeemable at the option of the Company, subject to all applicable regulatory approvals, on or after April 15, 2026.

As of September 30, 2021, and 2020, the Company and the Bank met all capital adequacy requirements to which they are subject, and the OCC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action.

As of September 30, 2022, and 2021, the Company and the Bank met all capital adequacy requirements to which they are subject, and the Bank's regulators categorized it as well capitalized under the regulatory framework for prompt corrective action.

To be categorized as well capitalized, the Bank must maintain minimum Common Equity Tier 1, Tier 1 risk-based, Total risk-based and Tier 1 leverage ratios as set forth in the following table.

34 unchanged sentences

The Bank 1,717,014 8.92 4.00 5.00

At periodic intervals, the Federal Reserve, the OCC and the FDIC routinely examine the Company's and the Bank's financial statements as part of their oversight.

At periodic intervals, the Federal Reserve, the WDFI and the FDIC examine the Company's and the Bank's financial statements as part of their oversight.

Based on their examinations, these regulators can direct that the Company's or Bank's financial statements be adjusted in accordance with their findings.

10 unchanged sentences

Weighted average shares outstanding 65,287,650 72,529,188 76,721,969

Weighted average dilutive warrants — — 4,448

Weighted average dilutive options 116,460 36,732 9,495

43 unchanged sentences

Adjustments to reconcile net income to net cash provided by operating activities:

Equity in undistributed net income (loss) of subsidiaries ( 91,697 ) 17,055 ( 2,213 )

Undistributed earnings from investments in subsidiaries ( 63,956 ) ( 91,697 ) —

Distributions in excess of earnings from investments in subsidiaries — — 17,055

Stock based compensation expense 6,808 6,381 6,469

16 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data