What changed in this filing

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Item 1. Financial Statements

2024-08-02 compared with 2024-05-03 · 163 added, 150 removed, 1357 unchanged (19% of the section changed)

Financial statements

March 31, 2024 September 30, 2023

June 30, 2024 September 30, 2023

(In thousands, except share data)

39 unchanged sentences

Additional paid-in capital 2,146,149 1,687,634

Accumulated other comprehensive income (loss), net of taxes 51,935 46,921

Accumulated other comprehensive income, net of taxes 54,916 46,921

Treasury stock, at cost;

7 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended March 31, Six Months Ended March 31,

Three Months Ended June 30, Nine Months Ended June 30,

2024 2023 2024 2023

11 unchanged sentences

Provision for credit losses 1,500 9,000 17,500 15,000

Net interest income after provision (release) 142,597 171,538 294,834 351,837

Net interest income after provision 175,686 159,700 470,520 511,537

NON-INTEREST INCOME

Gain (loss) on sale of investment securities 80 — 251 —

4 unchanged sentences

17,255 13,771 44,814 37,867

OTHER EXPENSE

NON-INTEREST EXPENSE

Compensation and benefits 57,169 50,456 180,165 150,970

21 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended March 31,

Three Months Ended June 30,

(In thousands)

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Comprehensive income $ 67,541 $ 65,304

Six Months Ended March 31,

Nine Months Ended June 30,

(In thousands)

2 unchanged sentences

Net unrealized gain (loss) during the period on available-for-sale investment securities, net of tax of $( 9,476 ) and $( 1,697 )

29,546 13,471

Reclassification adjustment of net (gain) loss from sale of available-for-sale securities included in net income, net of tax of $( 57 ) and $( 1 )

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(in thousands) Preferred Stock Common Stock Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total

Balance at January 1, 2024 $ 300,000 $ 136,679 $ 1,691,102 $ 1,906,557 $ 47,014 $ ( 1,629,348 ) $ 2,452,004

Balance at April 1, 2024 $ 300,000 $ 153,835 $ 2,143,343 $ 1,902,305 $ 51,935 $ ( 1,629,512 ) $ 2,921,906

Net income — — — 64,560 — — 64,560

5 unchanged sentences

— — — ( 3,656 ) — — ( 3,656 )

Stock issued in merger — 17,089 448,415 — — — 465,504

Proceeds from stock issuances — 27 711 — — — 738

1 unchanged sentence

Treasury stock purchased — — — — — ( 9,515 ) ( 9,515 )

Balance at March 31, 2024 $ 300,000 $ 153,835 $ 2,143,343 $ 1,902,305 $ 51,935 $ ( 1,629,512 ) $ 2,921,906

Balance at June 30, 2024 $ 300,000 $ 153,940 $ 2,146,149 $ 1,942,277 $ 54,916 $ ( 1,638,943 ) $ 2,958,339

(in thousands) Preferred Stock Common Stock Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total

Balance at January 1, 2023 $ 300,000 $ 136,373 $ 1,689,209 $ 1,749,008 $ 41,726 $ ( 1,591,935 ) $ 2,324,381

Balance at April 1, 2023 $ 300,000 $ 136,413 $ 1,683,720 $ 1,795,042 $ 43,822 $ ( 1,583,880 ) $ 2,375,117

Net income — — — 61,775 — — 61,775

8 unchanged sentences

Treasury stock purchased — — — — — ( 28,614 ) ( 28,614 )

Balance at March 31, 2023 $ 300,000 $ 136,413 $ 1,683,720 $ 1,795,042 $ 43,822 $ ( 1,583,880 ) $ 2,375,117

Balance at June 30, 2023 $ 300,000 $ 136,458 $ 1,685,587 $ 1,837,164 $ 47,351 $ ( 1,612,494 ) $ 2,394,066

SEE NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

13 unchanged sentences

Treasury stock purchased — — — — — ( 26,819 ) ( 26,819 )

Balance at March 31, 2024 $ 300,000 $ 153,835 $ 2,143,343 $ 1,902,305 $ 51,935 $ ( 1,629,512 ) $ 2,921,906

Balance at June 30, 2024 $ 300,000 $ 153,940 $ 2,146,149 $ 1,942,277 $ 54,916 $ ( 1,638,943 ) $ 2,958,339

(in thousands) Preferred Stock Common Stock Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total

10 unchanged sentences

Treasury stock purchased — — — — — ( 30,450 ) ( 30,450 )

Balance at March 31, 2023 $ 300,000 $ 136,413 $ 1,683,720 $ 1,795,042 $ 43,822 $ ( 1,583,880 ) $ 2,375,117

Balance at June 30, 2023 $ 300,000 $ 136,458 $ 1,685,587 $ 1,837,164 $ 47,351 $ ( 1,612,494 ) $ 2,394,066

SEE NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended March 31,

Nine Months Ended June 30,

(In thousands)

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Loans purchased — ( 79,965 )

Loans held for sale — —

FHLB stock purchased ( 517,575 ) ( 510,805 )

9 unchanged sentences

Net cash received (paid) in business combinations 623,583 ( 785 )

Proceeds from sales of loans 2,564,791 —

Proceeds from sales of premises and equipment 1,341 947

5 unchanged sentences

Repayments of borrowings ( 17,072,226 ) ( 11,950,000 )

Proceeds from the early termination of long term borrowing hedge

Proceeds from stock-based awards 2,488 1,039

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CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended March 31,

Nine Months Ended June 30,

(In thousands)

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NOTE A – Summary of Significant Accounting Policies

Company and Nature of Operations - 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.

Company and Nature of Operations - 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, small to mid-sized 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.

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Pursuant to the Merger Agreement, at the Effective Time Luther Burbank merged with and into the Company (the “Corporate Merger”), with the Company surviving the Corporate Merger.

Promptly following the Corporate Merger, Luther Burbank’s wholly-owned bank subsidiary, Luther Burbank Savings, merged with and into WaFd Bank with the WaFd Bank as the surviving institution (the “Bank Merger”).

The Corporate Merger and the Bank Merger are collectively referred to in this Current Report on Form 10-Q as the “Merger.”

Promptly following the Corporate Merger, Luther Burbank’s wholly-owned bank subsidiary, Luther Burbank Savings, merged with and into WaFd Bank with WaFd Bank as the surviving institution (the “Bank Merger”).

The Corporate Merger and the Bank Merger are collectively referred to in this Quarterly Report on Form 10-Q as the “Merger.”

The Merger was accounted for using the acquisition method of accounting and was effectively an all-stock transaction accounted for as a business combination.

The Company's financial results for any periods ended prior to February 29, 2024 reflect WaFd results only on a standalone basis.

As a result, financial results for the second quarter of 2024 may not be directly comparable to prior reported periods.

The Company's financial results for any periods ended on and prior to February 29, 2024 reflect WaFd results only on a standalone basis.

As a result, financial results for the third quarter of 2024, and the nine months ended may not be directly comparable to prior reported periods.

Refer to Note B - Business Combination for further details.

The information included in this Form 10-Q should be read in conjunction with the financial statements and related notes contained in the Company's 2023 Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on November 17, 2023 ("2023 Annual Financial Statements").

Interim results are not necessarily indicative of results for a full year.

Summary of Significant Accounting Policies - The significant accounting policies used in preparation of the Company's consolidated financial statements are disclosed in its 2023 Annual Financial Statements.

There have not been any significant changes in the Company's significant accounting policies compared to those contained in its 2023 Annual Financial Statements.

There have not been any material changes in the Company's significant accounting policies compared to those contained in its 2023 Annual Financial Statements.

Business Combinations - The Company applies the acquisition method of accounting for business combinations.

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Preferred Stock - On February 8, 2021, in connection with an underwritten public offering, the Company issued 300,000 shares of 4.875 % Noncumulative Perpetual Series A Preferred Stock (“Series A Preferred Stock”).

Net proceeds, after underwriting discounts and expenses, were $ 293,325,000 .

The public offering consisted of the issuance and sale of 12,000,000 depositary shares, each representing a 1/40 th interest in a share of the Series A Preferred Stock, at a public offering price of $ 25.00 per depositary share.

Holders of the depositary shares are entitled to all proportional rights and preferences of the Series A Preferred Stock (including dividend, voting, redemption and liquidation rights).

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.

Restricted Cash Balances - The Company was not required to maintain cash reserve balances with the Federal Reserve Bank as of March 31, 2024.

As of March 31, 2024 and September 30, 2023, the Company held counterparty cash collateral of $ 282,700,000 and $ 326,750,000 , respectively, related to derivative contracts.

Restricted Cash Balances - The Company was not required to maintain cash reserve balances with the Federal Reserve Bank as of June 30, 2024.

As of June 30, 2024 and September 30, 2023, the Company held counterparty cash collateral of $ 276,450,000 and $ 326,750,000 , respectively, related to derivative contracts.

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

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Under this method, the net asset value (NAV) determined by the fund is used as fair value for the investment.

At March 31, 2024, equity investments held by the Company and recorded at NAV had a carrying amount of $ 36,703,000 and a remaining unfunded commitment of $ 3,280,000 .

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

At June 30, 2024, equity investments held by the Company and recorded at NAV had a carrying amount of $ 37,057,000 and a remaining unfunded commitment of $ 3,280,000 .

These NAV based investments cannot be transferred without consent and we do not have redemption rights except in certain transformational events.

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

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The consumer loan portfolio segment is disaggregated into five classes:

single-family-residential mortgage, custom construction, consumer lot loans, home equity lines of credit, and

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

other consumer.

single-family-residential mortgage, custom construction, consumer lot loans, home equity lines of credit, and other consumer.

The risk of loss for the consumer loan portfolio segment is generally most indicated by delinquency status and general economic factors.

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This method pools loans into groups (“cohorts”) sharing similar risk characteristics and tracks each cohort’s net charge-offs over the lives of the loans to calculate a historical loss rate.

The historical loss rates for each cohort are then averaged to calculate an overall historical loss rate which is applied to the current loan balance to arrive at the quantitative baseline portion of the allowance for credit losses for the respective loan portfolio class.

The historical loss rates for each cohort are then

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

averaged to calculate an overall historical loss rate which is applied to the current loan balance to arrive at the quantitative baseline portion of the allowance for credit losses for the respective loan portfolio class.

For certain loan portfolio classes, the Company determined there was not sufficient historical loss information to calculate a meaningful historical loss rate using the cohort methodology.

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See Note F "Fair Value Measurements" for more information about AFS debt securities.

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Accrued Interest Receivable - The Company made the following elections regarding accrued interest receivable (“AIR”):

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• Excluding accrued interest receivable that is included in the amortized cost of financing receivables from related disclosure requirements.

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

• Continuing the Company's policy to write off accrued interest receivable by reversing interest income in cases where the Company does not reasonably expect to receive payment.

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and vacant land.

Off-balance-sheet credit exposures - Off-balance-sheet credit exposures for the Company include unfunded loan commitments and letters of credit from the Federal Home Loan Banks of both Des Moines and San Francisco, which had a combined balance of $ 3,859,416,000 and $ 3,625,333,000 at March 31, 2024 and September 30, 2023, respectively.

Off-balance-sheet exposures - Off-balance-sheet credit exposures for the Company include unfunded loan commitments and letters of credit from the Federal Home Loan Banks of both Des Moines and San Francisco ("FHLB-DM" and "FHLB-SF", respectively), which are used as collateral for public funds deposits.

The reserve for unfunded commitments is recognized as a liability (other liabilities in the consolidated statements of financial condition), with adjustments to the reserve recognized through provision for credit losses in the consolidated statements of income.

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Other intangibles, including core deposit intangibles, are acquired assets that lack physical substance but can be distinguished from goodwill.

Goodwill is not amortized but is evaluated for potential impairment on an annual basis and between tests if circumstances such as material adverse changes in legal, business, regulatory and economic factors exist.

Goodwill is not amortized but is evaluated for potential impairment on an annual basis and between tests if there are applicable circumstances such as material adverse changes in legal, business, regulatory and economic factors.

We have determined our goodwill balance is all related to a single reporting unit and perform a quantitative impairment assessment.

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Other intangible assets are amortized over their estimated lives and are subject to impairment testing when events or circumstances change.

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The Company performs a goodwill impairment assessment annually and continuously monitors for events and circumstances that could negatively impact the key assumptions in determining the fair value of goodwill.

The Company performs a goodwill impairment assessment annually and continuously monitors for triggering events and circumstances that could negatively impact the key assumptions in determining the fair value of goodwill.

As a result of the Merger, the Company recorded $ 105,560,000 in goodwill and $ 37,022,000 in core deposit intangible assets.

Additional information on the Merger and purchase price allocation is provided in Note B "Business Combination".

The core deposit intangible asset value was determined by an analysis of the cost differential between the core deposits acquired, inclusive of estimated servicing costs, and alternative funding sources for those deposits.

The core deposit intangible asset value was determined by an analysis of the cost differential between the core deposits acquired,

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

inclusive of estimated servicing costs, and alternative funding sources for those deposits.

The core deposit intangible asset recorded is amortized on an accelerated basis over 6 years.

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Balance at March 31, 2024 411,401 42,138 453,539

The table below presents the estimated future amortization expense of other intangibles for the next five years as of March 31, 2024.

Additions 812 1,102 1,914

Amortization — ( 3,198 ) ( 3,198 )

Balance at June 30, 2024 $ 412,213 $ 40,042 $ 452,255

The table below presents the estimated future amortization expense of other intangibles for the next five years as of June 30, 2024.

Fiscal Year Expected Expense

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The amendments will be effective for the Company only if the SEC removes the related disclosure requirement from its existing regulations no later than June 30, 2027.

If the SEC timely removes such a related requirement from its existing regulations, the corresponding amendments within the ASU will become effective

If the SEC timely removes such a related requirement from its existing regulations, the corresponding amendments within the ASU will become effective for the Company on the same date with early adoption permitted.

The Company does not expect the amendments in this update to have a material impact on our consolidated financial statements.

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

for the Company on the same date with early adoption permitted.

The Company does not expect the amendments in this update to have a material impact on our consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting - Improvements to Reportable Segment Disclosures (Topic 280) to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses.

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The acquisition was accounted for under the acquisition method of accounting.

Assets acquired and liabilities assumed in the Merger were recorded at their respective acquisition date estimated fair values.

These estimates were recorded based on initial valuations available at the Merger Date, and these estimates, including initial accounting for deferred taxes, are considered preliminary as of March 31, 2024, and subject to adjustment for up to one year after the Merger Date.

Assets acquired and liabilities assumed in the Merger were recorded at their respective acquisition date estimated fair values and have been adjusted in the current quarter based on new information.

These estimates were recorded based on initial valuations available at the Merger Date, and these estimates, including initial accounting for deferred taxes, are considered preliminary as of June 30, 2024, and subject to adjustment for up to one year after the Merger Date.

In many cases, the determination of fair value required management to make estimates about discount rates, expected future cash flows, market conditions and other future events that are highly subjective in nature and subject to change.

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Goodwill represents the excess of the purchase price over the fair value of the assets acquired net of fair value of liabilities assumed.

Information regarding the carrying amount and amortization of intangible assets are provided in Note A.

During the quarter ended June 30, 2024, goodwill decreased by $ 276,000 primarily due to adjustments to loan valuations offset by the adjustment of the deferred tax asset.

The loan adjustments were the result of the revaluation of LBC single-family loans transitioned to held for sale and the final terms of the multifamily loan sale that closed during the current quarter.

Information regarding goodwill and the carrying amount and amortization of intangible assets are provided in Note A.

The following is a description of the methods used to determine the fair values of significant assets and liabilities presented above.

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The loans were valued at the pool level using a discounted cash flow methodology.

The methodology included projecting cash flows based on the contractual terms of the loans and the cash flows were adjusted to reflect credit loss expectations along with prepayments.

Discount rates were developed based on the relative risk of the cash flows, taking into consideration the loan type, market rates as of the valuation date, recent originations in the portfolio, credit

The methodology included projecting cash flows based on the contractual terms of the loans and the cash flows were adjusted

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

loss expectations, and liquidity expectations.

to reflect credit loss expectations along with prepayments.

Lastly, cash flows adjusted for credit loss expectations were discounted to present value and summed to arrive at the fair value of the loans.

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Borrowings – The fair value of Federal Home Loan Bank ("FHLB") advances and Federal Reserve Bank ("FRB") borrowings is estimated by discounting the estimated future cash flows using rates currently available to the Company for debt with similar remaining maturities.

The operating results of the Company include the operating results produced by the acquired assets and assumed liabilities in the Merger for the period March 1, 2024 to March 31, 2024.

The following table shows the impact of merger-related expenses for the three and six months ended March 31, 2024.

The operating results of the Company include the operating results produced by the acquired assets and assumed liabilities in the Merger for the period March 1, 2024 to June 30, 2024.

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

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Merger-Related Expenses Three Months Ended March 31, 2024 Six Months Ended March 31, 2024

Merger-Related Expenses Three Months Ended June 30, 2024 Nine Months Ended June 30, 2024

(in thousands)

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Unaudited Pro Forma for the

Six Months Ended

March 31, 2024 March 31, 2023

Nine Months Ended

June 30, 2024 June 30, 2023

(in thousands)

1 unchanged sentence

Non-interest income $ 47,493 $ 40,965

$ 120,116 $ 145,277

1 The 2024 pro forma net income was adjusted to exclude $ 40,000,000 of merger-related costs, inclusive of historical LBC merger-related costs, incurred in 2024 and the 2023 pro forma net income was adjusted to include these costs.

Net income $ 142,921 $ 238,473

NOTE C – Dividends and Share Repurchases

On March 8, 2024, the Company paid a regular dividend on common stock of $ 0.26 per share, which represented the 164 th consecutive quarterly cash dividend.

Dividends per share were $ 0.26 and $ 0.25 for the quarters ended March 31, 2024 and 2023, respectively.

For the three months ended March 31, 2024, the Company repurchased 7,837 shares at an average price of $ 30.38 .

As of March 31, 2024, there are 1,853,453 remaining shares authorized to be repurchased under the current Board approved share repurchase program.

On June 7, 2024, the Company paid a regular dividend on common stock of $ 0.26 per share, which represented the 165 th consecutive quarterly cash dividend.

Dividends per share were $ 0.26 and $ 0.25 for the quarters ended June 30, 2024 and 2023, respectively.

For the three months ended June 30, 2024, the Company repurchased 357,303 shares of common stock at an average price of $ 26.63 .

During the third quarter, the Company's Board of Directors increased the number of shares authorized for repurchase under its share repurchase program by 10,000,000 shares.

As of June 30, 2024, there were 11,501,005 remaining shares authorized to be repurchased under the current Board approved share repurchase program.

The Company pays a cash dividend, if declared by the Board, of $ 12.1875 per share on its Series A Preferred Stock quarterly on January 15, April 15, July 15 and October 15.

This dividend equals $ 0.30468750 per depositary share (each dividend, a "Series A Preferred Dividend").

The Company paid a Series A Preferred Dividend on January 15, 2024 and April 15, 2024.

The Company paid a Series A Preferred Dividend on April 15, 2024 and July 15, 2024.

NOTE D – Loans Receivable

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Loans held for sale of approximately $ 0.5 billion are excluded from the following tables.

March 31, 2024 September 30, 2023

June 30, 2024 September 30, 2023

Gross loans by category (In thousands) (In thousands)

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The Company elected to exclude accrued interest receivable from the amortized cost basis of loans for disclosure purposes and from the calculations of estimated credit losses.

As of March 31, 2024, and September 30, 2023, AIR for loans totaled $ 103,137,000 and $ 77,349,000 , respectively, and is included in the Interest receivable line item balance on the Company’s consolidated statements of financial condition.

Loans in the amount of $ 9,131,125,000 and $ 8,941,201,000 at March 31, 2024 and September 30, 2023, respectively, were pledged to secure borrowings from the FHLB of Des Moines ("FHLB - DM") as part of the Company's liquidity management strategy.

During the quarter ended March 31, 2024, the Company entered into two new pledge agreements.

The first new pledge agreement was with the FHLB of San Francisco ("FHLB - SF") where $ 1,757,206,000 of loans were pledged to secure legacy LBC borrowings from the FHLB-SF.

The second new pledge agreement was with the FRB where $ 3,681,859,000 of loans were pledged via the Borrower-in-Custody program to support contingent liquidity.

At March 31, 2024 there were no outstanding borrowings under this program.

None of these agencies to which we have pledged loans have the right to sell or re-pledge these loans.

As of June 30, 2024, and September 30, 2023, AIR for loans totaled $ 92,457,000 and $ 77,349,000 , respectively, and is included in the Interest receivable line item balance on the Company’s consolidated statements of financial condition.

As of June 30, 2024, loans totaling $ 17,407,607,000 were pledged to secure borrowings and available lines of credit.

None of the agencies to which we have pledged loans have the right to sell or re-pledge them.

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

March 31, 2024 September 30, 2023

June 30, 2024 September 30, 2023

(In thousands, except ratio data)

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% of total net loans 0.29 % 0.29 %

The Company recognized interest income on non-accrual loans of approximately $ 435,000 in the six months ended March 31, 2024 as a result of the collection of past due amounts.

If these loans had been on accrual status and performed according to their original contract terms, the Company would have recognized interest income of approximately $ 1,347,000 for the six months ended March 31, 2024.

The Company recognized interest income on non-accrual loans of approximately $ 706,000 in the nine months ended June 30, 2024 as a result of the collection of past due amounts.

If these loans had been on accrual status and performed according to their original contract terms, the Company would have recognized interest income of approximately $ 2,121,000 for the nine months ended June 30, 2024.

Interest cash flows collected on non-accrual loans vary from period to period as those loans are brought current or are paid off.

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The following tables provide details regarding loan delinquencies by loan portfolio and class.

March 31, 2024 Days Delinquent Based on $ Amount of Loans % based

June 30, 2024 Days Delinquent Based on $ Amount of Loans % based

Type of Loan Loans Receivable (Amortized Cost) Current 30 60 90 Total Delinquent

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All such modifications during the quarter were term extensions.

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Loan Class Term Extension % of Total Loan Class Balance Wtd.

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( in thousands) (in months)

Commercial real estate $ 23,435 0.63 % 36

Commercial & industrial 24,233 1.01 9

Construction 13,138 0.81 15

Total commercial loans 47,668 0.20

Single-family residential 563 0.01 6

Total consumer loans 563 0.01

Total Loans $ 48,231 0.23 %

Six Months Ended March 31, 2024

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Nine Months Ended June 30, 2024

Loan Class Term Extension % of Total Loan Class Balance Wtd.

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Total commercial loans 93,546 0.76

Single-family residential 563 0.01 6

Total commercial loans 563 0.01 %

Total Loans $ 94,109 0.45 %

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of modification efforts.

None of the loans modified in the six months ended March 31, 2024 was past due as of March 31, 2024.

None of the loans modified in the nine months ended June 30, 2024 was past due as of June 30, 2024.

None of the loans above have defaulted after modification.

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The Company evaluates the credit quality of its loans based on regulatory risk ratings and also consider other factors.

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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 primary credit quality indicator, loan class, and year of origination, the amortized cost basis of loans receivable as of March 31, 2024 and September 30, 2023.

The following tables present by primary credit quality indicator, loan class, and year of origination, the amortized cost basis of loans receivable as of June 30, 2024 and September 30, 2023.

There were no commercial loans classified as Doubtful or Loss as of either date.

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024 Term Loans Amortized Cost Basis by Origination Year

June 30, 2024 Term Loans Amortized Cost Basis by Origination Year

YTD 2024 2023 2022 2021 2020 Prior to 2020 Revolving Loans Revolving to Term Loans Total Loans

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Total $ 173,108 $ 246,217 $ 1,126,164 $ 751,731 $ 512,242 $ 920,974 $ 16,509 $ — $ 3,746,945

Gross Charge-offs — — — — — 203 — 203

Commercial & industrial

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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024 Term Loans Amortized Cost Basis by Origination Year

June 30, 2024 Term Loans Amortized Cost Basis by Origination Year

YTD 2024 2023 2022 2021 2020 Prior to 2020 Revolving Loans Revolving to Term Loans Total Loans

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30 days past due — — 182 72 — — — — 254

60 days past due — — — 213 — — — — 213

90+ days past due — — 105 131 — — — — 236

Total $ 13,385 $ 16,245 $ 32,294 $ 25,540 $ 9,747 $ 14,363 $ — $ — $ 111,574

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90+ days past due — 820 3,687 2,706 453 8,938 716 — 17,320

Total past due — 2,132 7,873 5,810 716 17,866 1,791 — 36,188

Total $ 265,617 $ 902,646 $ 2,342,650 $ 2,141,817 $ 842,530 $ 2,036,308 $ 299,131 $ 964 $ 8,831,663

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The following tables summarize the activity in the allowance for loan losses by loan portfolio segment and class.

Three Months Ended March 31, 2024 Beginning Allowance Charge-offs Recoveries Provision &

Three Months Ended June 30, 2024 Beginning Allowance Charge-offs Recoveries Provision &

Ending Allowance

15 unchanged sentences

Total ACL - loans $ 201,577 $ ( 2,713 ) $ 1,460 $ 3,500 $ 203,824

1 Provision & transfer amounts within the table include the $ 16,000,000 initial provision related to non-PCD loans acquired during the quarter and the $ 7,403,000 PCD ACL amount included in the Merger purchase price allocation but do not include provision for unfunded commitments of $ 1,000,000 .

Three Months Ended March 31, 2023 Beginning Allowance Charge-offs Recoveries Provision &

1 Provision & transfer amounts within the table do not reflect a provision recapture from unfunded commitments of $ 2,000,000 .

Three Months Ended June 30, 2023 Beginning Allowance Charge-offs Recoveries Provision &

Ending Allowance

15 unchanged sentences

Total loans $ 177,420 $ ( 10,543 ) $ 192 $ 11,000 $ 178,069

1 Provision & transfer amounts within the table do not include provision recapture from unfunded commitments of $ 3,000,000 .

1 Provision & transfer amounts within the table do not reflect a provision recapture from unfunded commitments of $ 2,000,000 .

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Six Months Ended March 31, 2024 Beginning Allowance Charge-offs Recoveries Provision &

Nine Months Ended June 30, 2024 Beginning Allowance Charge-offs Recoveries Provision &

Ending Allowance

15 unchanged sentences

Total ACL - loans $ 177,207 $ ( 3,351 ) $ 2,065 $ 27,903 $ 203,824

Six Months Ended March 31, 2023 Beginning Allowance Charge-offs Recoveries Provision &

1 Provision & transfer amounts within the table include the $ 16,000,000 initial provision related to non-PCD loans acquired during the quarter and the $ 7,403,000 PCD ACL amount included in the Merger purchase price allocation but do not reflect a provision recapture from unfunded commitments of $ 3,000,000 .

Nine Months Ended June 30, 2023 Beginning Allowance Charge-offs Recoveries Provision &

Ending Allowance

15 unchanged sentences

Total loans $ 172,808 $ ( 16,897 ) $ 1,158 $ 21,000 $ 178,069

1 Provision & transfer amounts within the table do not include provision recapture from unfunded commitments of $ 4,000,000 .

The Company recorded a $ 16,000,000 provision for credit losses for the three months ended March 31, 2024, compared with a provision for credit losses of $ 3,500,000 for the three months ended March 31, 2023.

The provision in the three months ended March 31, 2024 was primarily due to the initial reserve needed for the acquired LBC non-PCD loans.

The increase in the overall ACL was a combination of the provision recorded and the reserve for LBC PCD loans booked in purchase accounting.

1 Provision & transfer amounts within the table do not reflect a provision recapture from unfunded commitments of $ 6,000,000 .

The Company recorded a $ 1,500,000 provision for credit losses for the three months ended June 30, 2024, compared with a provision for credit losses of $ 9,000,000 for the three months ended June 30, 2023.

The provision in the three months ended June 30, 2024 was primarily due to prolonged and increased borrower sensitivity to high interest rates and operating costs resulting from inflationary pressures in the commercial portfolio.

This was offset by a reduction in balance resulting from

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The provision for the three months ended March 31, 2023 was primarily due to growth in net loans receivable combined with the changing economic outlook amid concerns around a looming recession and recent macro-economic events.

The Company recorded a $ 16,000,000 provision for credit losses for the six months ended March 31, 2024, compared with a provision for credit losses of $ 6,000,000 for the six months ended March 31, 2023.

Charge-offs, net of recoveries, totaled $ 146,000 for the three months ended March 31, 2024, compared to $ 5,877,000 during the three months ended March 31, 2023.

Charge-offs, net of recoveries, totaled $ 33,000 for the six months ended March 31, 2024, compared to $ 5,388,000 during the six months ended March 31, 2023.

Non-performing assets were $ 68,361,000 , or 0.23 % of total assets, at March 31, 2024, compared to $ 57,924,000 , or 0.26 % of total assets, at September 30, 2023.

Non-accrual loans were $ 60,806,000 at March 31, 2024, compared to $ 50,422,000 at September 30, 2023.

Delinquencies, as a percent of total loans, were 0.36 % at March 31, 2024, compared to 0.36 % at September 30, 2023.

reclassifying a portion of the LBC single-family loans as Held for Sale.

The provision for the three months ended June 30, 2023 was primarily due to growth in net loans receivable combined with the changing economic outlook amid concerns around a looming recession and recent macro-economic events.

The Company recorded a $ 17,500,000 provision for credit losses for the nine months ended June 30, 2024, compared with a provision for credit losses of $ 15,000,000 for the nine months ended June 30, 2023.

The June 30, 2024 year-to-date provision included the initial reserve needed for the acquired LBC non-PCD loans.

The increase in the overall ACL was a combination of the provision recorded and the reserve for LBC PCD loans booked in purchase accounting.

Charge-offs, net of recoveries, totaled $ 1,253,000 for the three months ended June 30, 2024, compared to $ 10,351,000 during the three months ended June 30, 2023.

Charge-offs, net of recoveries, totaled $ 1,286,000 for the nine months ended June 30, 2024, compared to $ 15,739,000 during the nine months ended June 30, 2023.

Non-performing assets were $ 68,787,000 , or 0.24 % of total assets, at June 30, 2024, compared to $ 57,924,000 , or 0.26 % of total assets, at September 30, 2023.

Non-accrual loans were $ 61,268,000 at June 30, 2024, compared to $ 50,422,000 at September 30, 2023.

Delinquencies, as a percent of total loans, were 0.22 % at June 30, 2024, compared to 0.36 % at September 30, 2023.

The Company has an asset quality review function that analyzes its loan portfolio and reports the results of the review to its Board of Directors on a quarterly basis.

3 unchanged sentences

The following tables provide the amortized cost of loans receivable based on risk rating categories as previously defined.

March 31, 2024 Internally Assigned Grade

June 30, 2024 Internally Assigned Grade

Pass Special mention Substandard Doubtful Loss Total

38 unchanged sentences

The following tables provide information on the amortized cost of loans receivable based on borrower payment activity.

March 31, 2024 Performing Loans Non-Performing Loans

June 30, 2024 Performing Loans Non-Performing Loans

Amount % of Total

66 unchanged sentences

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

June 30, 2024

Level 1 Level 2 Level 3 Total

45 unchanged sentences

When management determines that the fair value of the collateral or the REO requires additional adjustments, either as a result of an updated appraised value or when there is no observable market price, the Company classifies the collateral dependent loan or real estate owned as Level 3.

Level 3 assets recorded at fair value on a nonrecurring basis at March 31, 2024 included 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.

The following tables present the aggregated balance of assets that were measured at fair value on a nonrecurring basis at March 31, 2024 and March 31, 2023, and the total gains (losses) resulting from those fair value adjustments during the respective periods.

Level 3 assets recorded at fair value on a nonrecurring basis at June 30, 2024 included 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.

The following tables present the aggregated balance of assets that were measured at fair value on a nonrecurring basis at June 30, 2024 and June 30, 2023, 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, 2024 Three Months Ended March 31, 2024 Six Months Ended March 31, 2024

June 30, 2024 Three Months Ended June 30, 2024 Nine Months Ended June 30, 2024

Level 1 Level 2 Level 3 Total Total Gains (Losses)

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

March 31, 2023 Three Months Ended March 31, 2023 Six Months Ended March 31, 2023

June 30, 2023 Three Months Ended June 30, 2023 Nine Months Ended June 30, 2023

Level 1 Level 2 Level 3 Total Total Gains (Losses)

5 unchanged sentences

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

At March 31, 2024, there was $ 28,000 in foreclosed residential real estate properties held as REO.

At June 30, 2024, there was $ 28,000 in 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 $ 6,134,000 .

6 unchanged sentences

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024 September 30, 2023

June 30, 2024 September 30, 2023

Level in Fair Value Hierarchy Carrying

62 unchanged sentences

The following tables provide details about the amortized cost and fair value of available-for-sale and held-to-maturity securities.

March 31, 2024

June 30, 2024

Cost Gross Unrealized Fair

54 unchanged sentences

$ 2,542,202 $ 2,910 $ ( 194,827 ) $ 2,350,285 4.35 %

The Company purchased $ 214,707,000 of AFS investment securities during the six months ended March 31, 2024 and purchased $ 115,931,000 of AFS securities during the six months ended March 31, 2023.

The Company purchased $ 321,308,000 of AFS investment securities during the nine months ended June 30, 2024 and purchased $ 317,027,000 of AFS securities during the nine months ended June 30, 2023.

The Company also obtained $ 516,308,000 in AFS securities in the Merger.

Sales of AFS securities totaled $ 176,402,000 during the six months ended March 31, 2024 compared to no sales during the prior year same period.

Sales of AFS securities totaled $ 179,215,000 during the nine months ended June 30, 2024 compared to sales of $ 94,000 during the prior year same period.

The Company sold approximately $ 171,000,000 of AFS securities obtained in the Merger to rebalance the overall portfolio.

Realized gains and losses from the sale were included in purchase accounting adjustments to reflect the acquisition date fair value as the sales took place close to the Merger date.

For HTM investment securities, there were $ 47,670,000 in purchases during the six months ended March 31, 2024 and no purchases during the six months ended March 31, 2023.

For HTM investment securities, there were $ 47,092,000 in purchases during the nine months ended June 30, 2024 and no purchases during the nine months ended June 30, 2023.

$ 2,570,000 of HTM securities were obtained in the Merger.

There were no sales of HTM investment securities during the six months ended March 31, 2024 or March 31, 2023.

There were no sales of HTM investment securities during the nine months ended June 30, 2024 or June 30, 2023.

Substantially all of the agency mortgage-backed securities have contractual due dates that exceed 25 years.

The Company elected to exclude AIR from the amortized cost basis of debt securities disclosed throughout this footnote.

For AFS securities, AIR totaled $ 11,141,000 and $ 8,641,000 as of March 31, 2024 and September 30, 2023, respectively.

For HTM debt securities, AIR totaled $ 1,206,000 and $ 1,013,000 as of March 31, 2024 and September 30, 2023, respectively.

For AFS securities, AIR totaled $ 9,772,000 and $ 8,641,000 as of June 30, 2024 and September 30, 2023, respectively.

For HTM debt securities, AIR totaled $ 1,181,000 and $ 1,013,000 as of June 30, 2024 and September 30, 2023, respectively.

AIR for securities is included in the Interest receivable line item balance on the Company’s consolidated statements of financial condition.

1 unchanged sentence

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The following tables show the gross unrealized losses and fair value of securities as of March 31, 2024 and September 30, 2023, by length of time that individual securities in each category have been in a continuous loss position.

There were 253 and 231 securities with an unrealized loss as of March 31, 2024 and September 30, 2023, respectively.

March 31, 2024 Less than 12 months 12 months or more Total

The following tables show the gross unrealized losses and fair value of securities as of June 30, 2024 and September 30, 2023, by length of time that individual securities in each category have been in a continuous loss position.

There were 227 and 231 securities with an unrealized loss as of June 30, 2024 and September 30, 2023, respectively.

June 30, 2024 Less than 12 months 12 months or more Total

Gross Losses Fair

36 unchanged sentences

government and have a long history of zero credit loss.

Therefore, the Company did not record an allowance for credit losses for these securities as of March 31, 2024 or September 30, 2023.

Therefore, the Company did not record an allowance for credit losses for these securities as of June 30, 2024 or September 30, 2023.

The Company does not consider AFS or HTM investments to have any credit impairment.

The Company does not believe that the AFS debt securities that were in an unrealized loss position have any credit loss impairment as of March 31, 2024 or September 30, 2023.

The Company does not believe that the AFS debt securities that were in an unrealized loss position have any credit loss impairment as of June 30, 2024 or September 30, 2023.

The Company does not intend to sell the investment securities that were in an unrealized loss position and it is more likely than not the Company will not be required to sell the investment securities before recovery of their amortized cost basis, which may be at maturity.

4 unchanged sentences

Corporate debt securities and municipal bonds are considered to have an issuer of high credit quality and the decline in fair value is due to changes in interest rates and other market conditions.

The issuer continues to make timely principal and interest payments on the bonds.

The fair value is expected to recover as the bonds approach maturity.

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

issuer continues to make timely principal and interest payments on the bonds.

The fair value is expected to recover as the bonds approach maturity.

NOTE G – Derivatives and Hedging Activities

The following tables present the fair value, notional amount and balance sheet classification of derivative assets and liabilities at March 31, 2024 and September 30, 2023.

March 31, 2024 Derivative Assets Derivative Liabilities

The following tables present the fair value, notional amount and balance sheet classification of derivative assets and liabilities at June 30, 2024 and September 30, 2023.

June 30, 2024 Derivative Assets Derivative Liabilities

Interest rate contract purpose Balance Sheet Location Notional Fair Value Balance Sheet Location Notional Fair Value

19 unchanged sentences

The hedge basis adjustment remains with the hedged item until the hedged item is de-recognized from the balance sheet.

The following tables present the impact of fair value hedge accounting on the carrying value of the hedged items at March 31, 2024 and September 30, 2023.

(In thousands) March 31, 2024

The following tables present the impact of fair value hedge accounting on the carrying value of the hedged items at June 30, 2024 and September 30, 2023.

(In thousands) June 30, 2024

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

1 unchanged sentence

$ 7,385,202 $ ( 40,379 )

(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, 2024, the amortized cost basis of the closed loan portfolios used in the hedging relationships was

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

At March 31, 2024, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $ 8,006,330,000 , the cumulative basis adjustment associated with the hedging relationships was $( 37,192,000 ), and the amount of the designated hedged items was $ 3,070,000,000 .

$ 7,350,681,000 , the cumulative basis adjustment associated with the hedging relationships was $( 37,908,000 ), and the amount of the designated hedged items was $ 2,670,000,000 .

During the three and nine months ended June 30, 2024, hedge accounting was discontinued on a $ 300,000,000 last of layer hedge.

A basis adjustment of $ 1,232,211 associated with the terminated portion of the hedge will be accreted 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 March 31, 2024, the amortized cost basis of the hedged commercial loans was $ 34,544,000 and the cumulative basis adjustment associated with the hedging relationships was $( 2,447,000 ).

At June 30, 2024, the amortized cost basis of the hedged commercial loans was $ 34,521,000 and the cumulative basis adjustment associated with the hedging relationships was $( 2,471,000 ).

(In thousands) September 30, 2023

9 unchanged sentences

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 March 31, 2024, the maturities for hedges of adjustable-rate borrowings ranged from one year to six years , with the weighted average being 5.0 years.

As of June 30, 2024, the maturities for hedges of adjustable-rate borrowings ranged from four months to six years , with the weighted average being 5 years.

AND SUBSIDIARIES

1 unchanged sentence

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 March 31,

(In thousands) Three Months Ended June 30,

Amount of gain/(loss) recognized in AOCI on derivatives in cash flow hedging relationships 2024 2023

2 unchanged sentences

Total pre-tax gain/(loss) recognized in AOCI $ ( 3,256 ) $ 14,757

(In thousands) Six Months Ended March 31,

(In thousands) Nine Months Ended June 30,

Amount of gain/(loss) recognized in AOCI on derivatives in cash flow hedging relationships 2024 2023

3 unchanged sentences

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 March 31, 2024 Three Months Ended March 31, 2023

Three Months Ended June 30, 2024 Three Months Ended June 30, 2023

Interest income on loans receivable Interest expense on FHLB advances Interest income on loans receivable Interest expense on FHLB advances

14 unchanged sentences

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Six Months Ended March 31, 2024 Six Months Ended March 31, 2023

Nine Months Ended June 30, 2024 Nine Months Ended June 30, 2023

Interest income on loans receivable Interest expense on FHLB advances Interest income on loans receivable Interest expense on FHLB advances

17 unchanged sentences

The interest rate swaps are derivatives under ASC 815, with changes in fair value recorded in earnings.

The impact to the statement of operations was an increase in other income of $ 114,000 for the six months ended March 31, 2024 and an increase of $ 26,000 for the six months ended March 31, 2023.

The impact to the statement of operations was an increase in other income of $ 169,000 for the nine months ended June 30, 2024 and a decrease of $ 900,000 for the nine months ended June 30, 2023.

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 March 31,

(In thousands) Three Months Ended June 30,

Derivative instruments Classification of gain/(loss) recognized in income on derivative instrument 2024 2023

2 unchanged sentences

Receive fixed/pay floating swap Other noninterest income 770 ( 13,538 )

$ 55 $ ( 926 )

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(In thousands) Six Months Ended March 31,

(In thousands) Nine Months Ended June 30,

Derivative instruments Classification of gain/(loss) recognized in income on derivative instrument 2024 2023

2 unchanged sentences

Receive fixed/pay floating swap Other noninterest income 18,579 1,509

$ 169 $ ( 900 )

NOTE H – Revenue from Contracts with Customers

4 unchanged sentences

These sources of revenue include depositor and other consumer and business banking fees, commission income, as well as debit and credit card interchange fees.

In scope revenue streams represented approximately 3.5 % of Company total revenue for the six months ended March 31, 2024, compared to 4.0 % for the six months ended March 31, 2023.

In scope revenue streams represented approximately 3.3 % of Company total revenue for the nine months ended June 30, 2024, compared to 4.0 % for the nine months ended June 30, 2023.

As this standard is immaterial to the consolidated financial statements, the Company has omitted certain disclosures in ASC 606, including the disaggregation of revenue table.

16 unchanged sentences

The majority of the leases contain renewal options and provisions for increases in rental rates based on a predetermined schedule or an agreed upon index.

Financial Instruments with Off-Balance Sheet Risk - The only material off-balance-sheet credit exposures are unfunded loan commitments, which had a combined balance of $ 3,859,416,000 and $ 3,625,333,000 at March 31, 2024 and September 30,

Financial Instruments with Off-Balance Sheet Risk - Off-balance-sheet credit exposures for the Company include unfunded loan commitments and letters of credit from the FHLB-DM and the FHLB-SF.

As of June 30, 2024, the Bank was obligated on FHLB letters of credit totaling $ 867,606,000 and unfunded loan commitments had a balance of $ 2,990,744,000 .

The reserve for

AND SUBSIDIARIES

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

2023, respectively.

The reserve was $ 23,500,000 as of March 31, 2024, which is a decrease from $ 24,500,000 at September 30, 2023.

unfunded commitments was $ 21,500,000 as of June 30, 2024, which is a decrease from $ 24,500,000 at September 30, 2023.

See Note A "Summary of Significant Accounting Policies" for details regarding the reserve methodology.

3 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-Q

Item 1. Financial Statements