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Business Combination (Tables)
 6 Months Ended
Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]  
Schedule of Business Acquisition
The purchase price for purposes of the transaction accounting adjustments is calculated based on the number of shares of WaFd stock issued to LBC shareholders and the closing share price on the Merger Date as shown in the following table (amounts in thousands except share and per share data).

Number of WaFd shares issued to LBC shareholders17,089 
WaFd market price per share on February 29, 2024$27.24 
Purchase price of shares issued to LBC shareholders$465,501 
Cash in lieu of fractional shares$3 
Purchase price consideration$465,504 
The following table shows the impact of merger-related expenses for the three and six months ended March 31, 2024.
Merger-Related ExpensesThree Months Ended March 31, 2024Six Months Ended March 31, 2024
(in thousands)
Severance and employee-related$20,266 $20,266 
Legal and Professional3,793 3,982 
Charitable contributions1,000 1,000 
System conversion and integration60 388 
$25,119 $25,636 
Schedule of Assets Acquired and Liabilities Assumed
The table below displays the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed:
March 1, 2024
(in thousands)
Total merger consideration$465,504 
Fair value of assets acquired
Cash and cash equivalents$627,403 
Investment securities518,878 
Loans receivable3,205,350 
Loans held for sale2,993,223 
Interest receivable25,697 
Premises and equipment6,436 
FHLB stock35,831 
Bank owned life insurance17,781 
Intangible assets37,022 
Deferred tax asset, net132,837 
Other assets75,885 
Total assets acquired$7,676,343 
Fair value of liabilities assumed
Customer accounts$5,640,440 
Borrowings1,432,138 
Junior subordinated deferrable interest debentures50,175 
Senior Debt93,514 
Accrued expenses and other liabilities100,408 
Total liabilities assumed$7,316,675 
Net Assets Acquired$359,668 
Goodwill$105,836 
Schedule of Financing Receivables Acquired The following table provides a summary of these PCD loans at acquisition:
March 1, 2024
(In thousands)
Principal of PCD loans acquired$293,204 
PCD ACL at acquisition(7,403)
Non-credit discount on PCD loans(45,869)
Fair value of PCD loans$239,932 
Schedule of Pro Forma Information The pro forma amounts below do not reflect the Company's expectations as of the date of the pro forma information of further operating cost savings and other business synergies expected to be achieved, including revenue growth as a result of the Merger. As a result, actual amounts differed from the unaudited pro forma information presented.
Unaudited Pro Forma for the
Six Months Ended
March 31, 2024March 31, 2023
(in thousands)
Net-interest income$351,263 $447,902 
Non-interest income$30,238 $26,302 
Net income1
$120,116 $145,277 
1The 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.