WASHINGTON FEDERAL INC. Management’s Discussion and Analysis of Financial Position and Operating Results (Form 10-K)

This discussion should be read in conjunction with our Consolidated Financial
Statements and related notes in "Item 8. Financial Statements and Supplementary
Data" of this report. In the following discussion, unless otherwise noted,
references to increases or decreases in average balances in items of income and
expense for a particular period and balances at a particular date refer to the
comparison with corresponding amounts for the period or date for the previous
year.


                                       37

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL POSITION AND RESULTS OF

                                   OPERATIONS

CRITICAL ACCOUNTING POLICIES AND ESTIMATES
The Company has determined that the only accounting policy critical to an
understanding of its consolidated financial statements relates to the
methodology for determining the amount of the allowance for credit losses
("ACL").
Management's determination of the amount of the ACL is a critical accounting
estimate as it requires significant reliance on the credit risk we ascribe to
individual borrowers, the use of estimates and significant judgment as to the
amount and timing of expected future cash flows on individually evaluated loans,
significant reliance on historical loss rates on homogenous portfolios,
consideration of our quantitative and qualitative evaluation of past events,
current conditions, and reasonable and supportable forecasts that affect the
collectability of the reported amounts.

Going forward, the methodology used to calculate the ACL will be significantly
influenced by the composition, characteristics and quality of our loan
portfolio, as well as the prevailing economic conditions and forecasts utilized.
Material changes to these and other relevant factors may result in greater
volatility to the allowance for credit losses, and therefore, greater volatility
in our reported earnings.
Select information regarding the ACL is below in "Allowance for Credit Losses."
For further details, see   Note    s     A and     E to the Consolidated
Financial Statements in "Item 8. Financial Statements and Supplementary
Data    .    "


                                       38

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL POSITION AND RESULTS OF

                                   OPERATIONS
ALLOWANCE FOR CREDIT LOSSES
The following table provides detail regarding the Company's allowance for credit
losses.
Twelve Months Ended September 30,         2021               2020               2019               2018               2017
                                                                           (In thousands)
Beginning balance                     $ 166,955          $ 131,534          $ 129,257          $ 123,073          $ 113,494
Charge-offs:
Commercial loans
Multi-Family                                  -                  -                  -                  -                  -
Commercial Real Estate                        -                111                428                 36                 11
Commercial & Industrial Loans                31              4,196              5,782              3,574                173
Construction                                  -                  -                  -                  -                  -
Land - Acquisition & Development              2                 11                107                 13                280
  Total commercial loans                     33              4,318              6,317              3,623                464
Consumer loans
Single-Family Residential                   106                131                268              1,142              1,229
Construction - Custom                         -                  -              1,973                 50                 16
Land - Consumer Lot Loans                     -                237                804                 67                 17
HELOC                                         -                  -              1,086                668                 90
Consumer                                    286              1,069              1,028                382                884
  Total consumer loans                      392              1,437              5,159              2,309              2,236
                                            425              5,755             11,476              5,932              2,700
Recoveries:
Commercial loans
Multi-Family                                  -                498                  -                  -                  -
Commercial Real Estate                    2,789              2,447              1,102                189              1,684
Commercial & Industrial Loans                92                443              3,443                714              1,833
Construction                                  -                188                 99                  -                  -
Land - Acquisition & Development            622              2,070              7,457             14,223             11,038
  Total commercial loans                  3,503              5,646             12,101             15,126             14,555
Consumer loans
Single-Family Residential                 2,026              1,394              1,020                757                653
Construction - Custom                         -                  -                  -                  -                  -
Land - Consumer Lot Loans                   168                639                719                 35                481
HELOC                                        52                 95                 46                 71                 21
Consumer                                  1,021              1,252              1,167                993              1,297
  Total consumer loans                    3,267              3,380              2,952              1,856              2,452
                                          6,770              9,026             15,053             16,982             17,007
Net charge-offs (recoveries)             (6,345)            (3,271)            (3,577)           (11,050)           (14,307)
ASC 326 Adoption Impact                       -             17,750                  -                  -                  -
Provision (release) for loan losses
and transfers                            (2,000)            14,400             (1,300)            (4,866)            (4,728)
Ending balance (1)                    $ 171,300          $ 166,955          $ 131,534          $ 129,257          $ 123,073
Ratio of net charge-offs (recoveries)
to average loans outstanding              (0.05) %           (0.03) %           (0.03) %           (0.10) %           (0.14) %


__________________

(1) This does not include a reserve for unfunded commitments of $27,500,000,
$25,000,000, $6,900,000, $7,250,000 and $7,750,000 as of September 30, 2021,
2020, 2019, 2018 and 2017 respectively.

                                       39

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL POSITION AND RESULTS OF

                                   OPERATIONS

The following table shows the changes in the Company’s allowance for bad debts since the previous year.

                                   September 30, 2021          September 30, 2020             $ Change                % Change
(In thousands)
Allowance for credit losses:
Commercial loans
  Multi-family                    $           16,949          $           13,853          $        3,096                      22  %
  Commercial real estate                      23,437                      22,516                     921                       4  %
  Commercial & industrial                     45,957                      38,665                   7,292                      19  %
  Construction                                25,585                      24,156                   1,429                       6  %
  Land - acquisition &
development                                   13,447                      10,733                   2,714                      25  %
   Total commercial loans                    125,375                     109,923                  15,452                      14  %

Consumer loans

  Single-family residential                   30,978                      45,186                 (14,208)                    (31) %
  Construction - custom                        4,907                       3,555                   1,352                      38  %
  Land - consumer lot loans                    4,939                       2,729                   2,210                      81  %
  HELOC                                        2,390                       2,571                    (181)                     (7) %
  Consumer                                     2,711                       2,991                    (280)                     (9) %
   Total consumer loans                       45,925                      57,032                 (11,107)                    (19) %
Total allowance for loan losses              171,300                     166,955                   4,345                       3  %
Reserve for unfunded commitments              27,500                      25,000                   2,500                      10  %

Total allowance for credit losses $ 198,800 $ 191,955 $ 6,845

                       4  %



The allowance for loan losses increased by $4,345,000, or 2.60%, from
$166,955,000 as of September 30, 2020, to $171,300,000 at September 30, 2021. As
of September 30, 2021, the allowance of $171,300,000 is for loans that are
evaluated on a pooled basis, which was comprised of $120,357,000 related to the
quantitative component and $50,943,000 related to management's qualitative
overlays.
The Company recorded a provision for credit losses of $500,000 in 2021, compared
to a provision of $21,750,000 for 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. For the year ended September 30, 2021, net recoveries
were $6,345,000, compared to $3,271,000 in the prior year. 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. The ratio of the total ACL to total gross loans decreased to 1.22% as
of September 30, 2021, as compared to 1.33% as of September 30, 2020. The
decrease was primarily related to improvements in macroeconomic variables used
in the forecast component of the ACL.
The reserve for unfunded loan commitments was $27,500,000 as of September 30,
2021, compared to $25,000,000 as of September 30, 2020.
Management believes the total ACL is sufficient to absorb estimated losses
inherent in the portfolio of loans and unfunded commitments.


                                       40

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL POSITION AND RESULTS OF

                                   OPERATIONS

The following table shows the amount of the Company’s allowance for loan losses by portfolio and loan category.


September 30,                                    2021                                               2020                                               2019                                               2018                                               2017
                                                 Loans to                                           Loans to                                           Loans to                                           Loans to                                           Loans to
                                                Total Loans   Coverage                             Total Loans   Coverage                             Total Loans   Coverage                             Total Loans   Coverage                             Total Loans   Coverage
                              Allowance             (1)       Ratio (2)          Allowance             (1)       Ratio (2)          Allowance             (1)       Ratio (2)          Allowance             (1)       Ratio (2)          Allowance             (1)       Ratio (2)
                                                                                                                                          ($ in thousands)
Commercial loans
Multi-family                 $  16,949              16.3  %        0.8  %       $  13,853              11.8  %        0.9  %       $   7,391              11.7  %        0.5  %       $   8,329              11.9  %        0.6  %       $   7,862              11.8  %        0.6  %
Commercial real estate          23,437              17.4           1.0             22,516              14.4           1.2             13,170              13.5           0.8             11,852              12.5           0.8             11,818              12.8           0.8
Commercial & industrial         45,957              16.3           2.0             38,665              16.5           1.8             31,450              10.5           2.5             28,702               9.8           2.5             28,524               9.9           2.6
Construction                    25,585               7.9           2.3             24,156              10.5           1.8             32,304               9.6           2.8             31,317               9.1           3.0             24,556               7.2           3.1
Land - acquisition &
development                     13,447               1.3           7.5             10,733               1.2           7.0              9,155               1.3           5.7              7,978               1.1           6.5              6,829               1.0           6.5
  Total commercial loans       125,375                                            109,923                                             93,470                                             88,178                                             79,589
Consumer loans
Single-family residential       30,978              35.5           0.6     
       45,186              40.8           0.9             30,988              48.2           0.5             33,033              49.7           0.6             36,892              51.8           0.6
Construction - custom            4,907               2.5           1.4              3,555               2.3           1.2              1,369               2.1           0.5              1,842               2.5           0.6              1,944               2.5           0.7
Land - consumer lot loans        4,939               1.0           3.4              2,729               0.8           2.7              2,143               0.8           2.2              2,164               0.8           2.2              2,649               0.9           2.7
HELOC                            2,390               1.2           1.5              2,571               1.1           1.8              1,103               1.2           0.8                781               1.1           0.6                855               1.3           0.6
Consumer                         2,711               0.6           3.2              2,991               0.6           3.6              2,461               1.1           1.9              3,259               1.5           1.9              1,144               0.8           1.4
  Total consumer loans          45,925                                             57,032                                             38,064                                             41,079                                             43,484
Total allowance for loan
losses (3)                   $ 171,300               100  %                     $ 166,955               100  %                     $ 131,534               100  %                     $ 129,257               100  %                     $ 123,073               100  %


 ___________________
(1)Represents the loans receivable for each respective loan class as a % of
total loans receivable.
(2)Represents the allowance for each respective loan class as a % of loans
receivable for that same loan class.
(3)This does not include a reserve for unfunded commitments of $27,500,000,
$25,000,000, $6,900,000, $7,250,000 and $7,750,000 as of September 30, 2021,
2020, 2019, 2018 and 2017, respectively.


                                       41

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL POSITION AND RESULTS OF

                                   OPERATIONS
ASSET QUALITY
Troubled debt restructured loans ("TDRs"). TDRs are reserved for under the
Company's CECL methodology. Most TDRs are performing and accruing loans where
the borrower has proactively approached the Company about modifications due to
temporary financial difficulties. Each request is individually evaluated for
merit and likelihood of success. The concession for these loans is typically a
payment reduction through a rate reduction of 100 to 200 basis points for a
specific term, usually six to twelve months. Interest-only payments may also be
approved during the modification period.
Concessions for construction, land A&D and multi-family loans are typically an
extension of maturity combined with a rate reduction of normally 100 basis
points. Before granting approval to modify a loan in a TDR, a borrower's ability
to repay is considered by evaluating current income levels, debt-to-income
ratio, credit score, loan payment history and an updated evaluation of the
secondary repayment source.
If a loan is on non-accrual status before becoming a TDR, it will stay on
non-accrual status following restructuring until it has been performing for at
least six months, at which point it may be moved to accrual status. If a loan is
on accrual status before it becomes a TDR, and it is concluded that a full
repayment is highly probable, it will remain on accrual status following
restructuring. If the homogeneous restructured loan does not perform, it is
placed in non-accrual status when it is 90 days delinquent. For commercial
loans, six consecutive payments on newly restructured loan terms are required
prior to returning the loan to accrual status. After the required six
consecutive payments are made, a management assessment may conclude that
collection of the entire principal and interest due is still in doubt. In those
instances, the loan will remain on non-accrual. A loan that defaults and is
subsequently modified would impact the Company's delinquency trend, which is
part of the qualitative risk factors component of the CECL methodology. Any
modified loan that re-defaults and is charged-off would impact the quantitative
component of the CECL methodology.

Non-Performing Assets. When a borrower violates a condition of a loan, the Bank
attempts to cure the default by contacting the borrower. In most cases, defaults
are cured promptly. If the default is not cured within an appropriate time
frame, typically 90 days, the Bank may institute appropriate action to collect
the loan, such as making demand for payment or initiating foreclosure
proceedings on the collateral. If foreclosure occurs, the collateral will
typically be sold at public auction and may be purchased by the Bank.
Loans are placed on nonaccrual status when, in the judgment of management, the
probability of collecting interest or principal is deemed to be insufficient to
warrant further accrual. When a loan is placed on nonaccrual status, previously
accrued but unpaid interest is deducted from interest income. The Bank does not
accrue interest on loans 90 days past due or more.   See Note A to the
Consolidated Financial Statements included in Item 8   hereof for additional
information.
The Bank will consider modifying the interest rate and terms of a loan if it
determines that a modification is deemed to be the best option available for
collection in full or to minimize the loss to the Bank. Most loans restructured
in TDRs are accruing and performing loans where the borrower has proactively
approached the Bank about a modification due to temporary financial
difficulties. Each request is individually evaluated for merit and likelihood of
success. The modification of these loans is typically a payment reduction
through a rate reduction of from 100 to 200 bps for a specific term, usually six
to twelve months. Interest-only payments may also be approved during the
modification period. Principal forgiveness generally is not an available option
for restructured loans. As of September 30, 2021, single-family residential
loans comprised 92.1% of restructured loans. The Bank reserves for restructured
loans within its pool based general reserve methodology, except in instances
where management considers it appropriate to evaluate individually.
Real estate acquired by foreclosure or deed-in-lieu thereof ("REO" or "Real
Estate Owned") is classified as real estate held for sale. When property is
acquired, it is recorded at the fair market value less estimated selling costs
at the date of acquisition. Interest accrual ceases on the date of acquisition
and all costs incurred in maintaining the property from that date forward are
expensed as incurred. Costs incurred for the improvement or development of such
property is capitalized. See   Note A to the Consolidated Financial Statements
included in Item 8   hereof for additional information.

                                       42

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL POSITION AND RESULTS OF

                                   OPERATIONS

The following table presents information on restructured loans and non-performing assets of the Company.


September 30,                               2021               2020               2019               2018               2017
                                                                             (In thousands)
Performing restructured loans           $  63,655          $  89,072          $ 116,659          $ 150,667          $ 202,272
Non-performing restructured loans           1,473              2,336              5,018              6,191              5,105
Total restructured loans                   65,128             91,408            121,677            156,858            207,377
Non-accrual loans:
Commercial loans
Multi-family                                  475                  -                  -             27,643             27,930
Commercial real estate                      8,038              3,771              5,835              2,427                  -
Commercial & industrial                       365                329              1,292                  -                 91
Construction                                  505              1,669                  -                920                296
Land - acquisition & development            2,340                  -                169                787                605
 Total commercial loans                    11,723              5,769              7,296             31,777             28,922
Consumer loans
Single-family residential                  19,320             22,431             25,271                  -                139
Construction - custom                           -                  -                  -              8,971             11,815
Land - consumer lot loans                     359                243                246             14,394              8,082
HELOC                                         287                553                907                523                531
Consumer                                       60                 60                 11                 21                 91
 Total consumer loans                      20,026             23,287             26,435             23,909             20,658
Total non-accrual loans (1)                31,749             29,056             33,731             55,686             49,580
Real estate owned                           8,204              4,966              6,781             11,298             20,658
Other property owned                        3,672              3,673              3,314              3,109                  -
Total non-performing assets                43,625             37,695             43,826             70,093             70,238
Total non-performing assets and
performing restructured loans           $ 107,280          $ 126,767          $ 160,485          $ 220,760          $ 272,510
Total non-performing assets and
restructured loans as a percent of
total assets                                 0.55  %            0.67  %            0.97  %            1.39  %            1.79  %
Total non-performing assets to total
assets                                       0.22  %            0.20  %            0.27  %            0.44  %            0.46  %


___________________
(1)  For the year ended September 30, 2021, the Company recognized $9,354,000 in
interest income on cash payments received from borrowers on non-accrual loans.
The Company would have recognized interest income of $1,373,000 for the same
period had these loans performed according to their original contract terms. The
recognized interest income may include more than twelve months of interest for
some of the non-accrual loans that were brought current or paid off. In addition
to the non-accrual loans reflected in the above table, the Company had
$355,151,000 of loans that were less than 90 days delinquent at September 30,
2021 but were classified as substandard for one or more reasons. If these loans
were deemed non-performing, the Company's ratio of total non-performing assets
and performing restructured loans as a percent of total assets would have
increased to 2.35% at September 30, 2021. For a discussion of the Company's
policy for placing loans on non-accrual status, see   Note A to the Consolidated
Financial Statements included in Item 8 of this report.

Non-performing assets increased 15.7% to $43,625,000, or 0.22% of total assets,
at September 30, 2021, compared to $37,695,000, or 0.20% of total assets, at
September 30, 2020. The increase was primarily a result of $2,693,000 higher
non-accrual loans and $3,238,000 higher real estate owned. Other property owned
of $3,672,000 as of September 30, 2021 is comprised of $896,000 of equipment
acquired through foreclosure on a commercial loan and a $2,776,000 government
guarantee related to that same loan.


                                       43

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL POSITION AND RESULTS OF

                                   OPERATIONS
TDRs declined to $65,128,000 as of September 30, 2021, from $91,408,000 as of
September 30, 2020. As of September 30, 2021, $63,655,000 or 97.7% of TDRs were
performing. Non-performing TDRs of $1,473,000 are included in NPAs. Total NPAs
and performing TDRs as a percent of total assets has declined to 0.55% as of
September 30, 2021, from 0.67% as of September 30, 2020. During 2021, there were
TDR additions of $1,511,000 and reductions of $27,790,000 due to prepayments and
transfers to REO. As of September 30, 2021, 92.1% of TDRs are comprised of
single-family residential loans.

As of September 30, 2021, real estate owned totaled $8,204,000, an increase of
$3,238,000, or 65.2%, from $4,966,000 as of September 30, 2020, as new REO
properties were partially offset by sales of foreclosed properties. During 2021,
the Company sold real estate owned properties for total net proceeds of
$3,340,000. The majority of REO properties are former bank premises that are
expected to be sold.
The ratio of the allowance for loan losses to non-accrual loans decreased to
540% as of September 30, 2021, from 575% as of September 30, 2020.

                                       44

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL POSITION AND RESULTS OF

                                   OPERATIONS
CHANGES IN FINANCIAL CONDITION
Cash and cash equivalents: Cash and cash equivalents increased to $2,090,809,000
at September 30, 2021, as compared to $1,702,977,000 at September 30, 2020. The
change was primarily due to the $1,762,488,000 increase in customer accounts,
the majority of which was used to fund growth in the loan portfolio and pay down
FHLB borrowings. Changes in investment securities balances discussed below also
contributed to growth in cash and cash equivalents.
Available-for-sale investment securities: Available-for-sale securities
decreased $111,233,000, or 4.9%, during the year ended September 30, 2021, to
$2,138,259,000, primarily due to principal repayments of $646,532,000 and sales
of $1,499,000, partially offset by purchases of $530,227,000. As of September
30, 2021, the Company had a net unrealized gain on available-for-sale securities
of $48,189,000, which is recorded net of tax as part of shareholders' equity.
Substantially all of the Company's available-for-sale debt securities are issued
by U.S. government agencies or U.S. government-sponsored enterprises. These
securities carry the explicit and/or implicit guarantee of the U.S. government
and have a long history of zero credit loss. The remaining securities are issued
by highly-rated municipalities or corporate borrowers. The Company does not
believe that any of its available-for-sale debt securities have credit loss
impairment as of September 30, 2021, therefore, no allowance was recorded. The
impact going forward will depend on the composition, characteristics, and credit
quality of the loan and securities portfolios as well as the economic conditions
at future reporting periods.
Held-to-maturity investment securities: Held-to-maturity securities decreased by
$339,813,000, or 48.1%, during the year ended September 30, 2021, to
$366,025,000 primarily due to principal repayments and maturities of
$332,001,000. There were no held-to-maturity securities purchased or sold during
the year ended September 30, 2021. Rising interest rates may cause these
securities to be subject to unrealized losses. As of September 30, 2021, the net
unrealized gain on held-to-maturity securities was $13,522,000, which management
attributes to the change of interest rates since acquisition.
Substantially all of the Company's held-to-maturity debt securities are issued
by U.S. government agencies or U.S. government-sponsored enterprises. These
securities carry the explicit and/or implicit guarantee of the U.S. government
and have a long history of zero credit loss. The Company did not record an
allowance for credit losses for held-to-maturity securities as of September 30,
2021 as the investment portfolio consists primarily of U.S. government agency
mortgage-backed securities that management deems to have immaterial risk of
loss. The impact going forward will depend on the composition, characteristics,
and credit quality of the loan and securities portfolios as well as the economic
conditions at future reporting periods.
The table below shows the available-for-sale and held-for-investment securities
portfolios categorized by maturity band.

                                             Amortized
      September 30, 2021                       Cost          Weighted 

Average yield

                                                       ($ in thousands)
      Due in less than 1 year              $    17,851                     

0.49%

      Due after 1 year through 5 years         292,998                     

1.33

      Due after 5 years through 10 years       177,854                     
 2.61
      Due after 10 years                     1,967,392                       1.93
                                           $ 2,456,095                       1.89  %



For further information on our investment portfolio, see   Note C to the
Consolidated Financial Statements in "Item 8. Financial Statements and
Supplementary Data"   of this report.
Loans receivable: Loans receivable, net of related contra accounts, increased
$1,041,253,000, or 8.1%, to $13,833,570,000 at September 30, 2021, from
$12,792,317,000 one year earlier. The increase resulted primarily from
originations of $8,184,733,000 and loan purchases of $488,147,000, partially
offset by loan repayments of $6,797,043,000 and a $776,764,000 increase to
loans-in-process during the year ended September 30, 2021. Commercial loan
originations accounted for 77.1% of

                                       45

————————————————– ——————————

MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL POSITION AND RESULTS OF

                                   OPERATIONS
total originations and consumer originations were 22.9% as the Company continues
to focus on commercial lending, coupled with growing economies in all major
markets in which we operate.
The following table presents loan balances by category and the year-over-year
change.
                                                 September 30, 2021                     September 30, 2020                        Change
                                                  ($ in thousands)                       ($ in thousands)                     $             %
Gross loans by category
Commercial loans
  Multi-family                            $        2,291,477       14.1  %       $        1,538,762       10.6  %       $   752,715       48.9%
  Commercial real estate                           2,443,845       15.0                   1,895,086       13.1              548,759        29.0
  Commercial & industrial (1)                      2,314,654       14.2                   2,132,160       14.7              182,494        8.6
  Construction                                     2,888,214       17.7                   2,403,276       16.6              484,938        20.2
  Land - acquisition & development                   222,457        1.4                     193,745        1.3               28,712        14.8
    Total commercial loans                        10,160,647       62.4                   8,163,029       56.4            1,997,618        24.5
Consumer loans
Single-family residential                          4,951,627       30.4                   5,304,689       36.7             (353,062)      (6.7)
Construction - custom                                783,221        4.8                     674,879        4.7              108,342        16.1
Land - consumer lot loans                            149,956        0.9                     102,263        0.7               47,693        46.6
  HELOC                                              165,989        1.0                     139,703        1.0               26,286        18.8
  Consumer                                            87,892        0.5                      83,159        0.6                4,733        5.7
    Total consumer loans                           6,138,685       37.6                   6,304,693       43.6             (166,008)      (2.6)
Total gross loans                                 16,299,332        100  %               14,467,722        100  %         1,831,610       12.7%
  Less:
   Allowance for loan losses                         171,300                                166,955                           4,345        2.6
   Loans in process                                2,232,836                              1,456,072                         776,764        53.3
   Net deferred fees, costs and discounts             61,626                                 52,378                           9,248        17.7
Total loan contra accounts                         2,465,762                              1,675,405                         790,357        47.2
Net loans                                 $       13,833,570                     $       12,792,317                     $ 1,041,253        8.1%


(1) Includes $311,795,000 of SBA Payroll Protection Program loans as of
September 30, 2021.
The following table summarizes the Company's loan portfolio, due for the periods
indicated based on contractual terms to maturity or repricing.


                                       46

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   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
                                   OPERATIONS
                                                             Less than              1 to 5              5 to 15              After 15
September 30, 2021                        Total                1 Year               Years                Years                Years
                                                                     (In thousands)
Commercial loans
 Multi-family                        $  2,273,689          $   928,690          $   747,365          $   527,430          $    70,204
 Commercial real estate                 2,429,332            1,043,359              667,138              715,710                3,125
 Commercial & industrial                2,303,927            1,592,157              461,975              177,085               72,710
 Construction                           1,117,227              900,783               90,282              115,509               10,653
 Land - acquisition & development         192,416              185,076                3,509                3,831                    -
  Total commercial loans                8,316,591            4,650,065            1,970,269            1,539,565              156,692
Consumer loans
 Single-family residential              4,937,064              184,093               66,294              374,794            4,311,883
 Construction - custom                    347,752                1,766                    -                  633              345,353
 Land - consumer lot loans                148,534               10,432               44,496               11,230               82,376
 HELOC                                    166,940              165,906                1,034                    -                    -
 Consumer                                  87,989               29,561                6,604               42,470                9,354
  Total consumer loans                  5,688,279              391,758              118,428              429,127            4,748,966
                                     $ 14,004,870          $ 5,041,823          $ 2,088,697          $ 1,968,692          $ 4,905,658



The contractual loan payment period for residential mortgage loans originated by
the Company normally ranges from 15 to 30 years. Experience during recent years
has indicated that, because of prepayments in connection with refinancing and
sales of property, residential loans typically have a weighted average life of
approximately five years.

                                       47

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL POSITION AND RESULTS OF

                                   OPERATIONS
The following tables provide information regarding loans receivable by loan
class and geography.

                                                                                                          Single -
                             Multi-       Commercial       Commercial                        Land -        Family       Construction -      Land -
   September 30, 2021        family      Real Estate     and Industrial    Construction      A & D      Residential         custom         Lot Loans     Consumer      HELOC          Total
                                                                                                     (In thousands)
Washington               $   312,233    $   514,868    $       930,177    $ 

272 345 $ 78,569 $ 2,499,009 $ 198,230 $ 82,113 $ 40,535 $ 93,159 $ 5,021,238
Oregon

                       493,481        364,476            338,552         252,503       46,982        675,791             41,302        17,254          490       22,361       2,253,192
Arizona                      517,654        324,489             87,312         128,715        1,275        535,542             38,593        20,815          437       16,976       1,671,808
Utah                         257,637        169,745             98,612         138,014       15,143        389,384             32,460         5,405       13,600        8,803       1,128,803
Texas                        235,973        475,454            342,093         196,871        7,645        146,399              2,011           161           75        1,640       1,408,322
New Mexico                   146,089        222,526             43,069          32,295       16,577        177,535              5,512         2,973          786        9,131         656,493
Idaho                        117,991        133,471             42,717          55,522       25,081        279,351             23,579        12,485           76       11,583         701,856
Nevada                        96,422        150,751             40,849          28,159        1,144        211,592              6,065         7,321       10,843        3,287         556,433
Other                         96,209         73,552            380,546          12,803            -         22,461                  -             7       21,147            -         606,725
                         $ 2,273,689    $ 2,429,332    $     2,303,927    $ 

1,117,227 $ 192,416 $ 4,937,064 $ 347,752 $ 148,534 $ 87,989 $ 166,940 $ 14,004,870




Percentage by geographic area
                                                                                                                          Single -
  September 30,       Multi-          Commercial             Commercial                                  Land -            Family             Construction -            Land -
      2021            family         Real Estate           and Industrial          Construction          A & D          Residential              
custom              Lot Loans          Consumer          HELOC           Total
                                                                                                               As % of total gross loans
Washington                2.2  %               3.7  %                   6.7  %                2.0  %         0.6  %              17.8  %                   1.5  %             0.6  %            0.3  %         0.7  %         36.1  %
Oregon                    3.5                  2.6                      2.4                   1.8            0.3                  4.8                      0.3                0.1                 -            0.1            15.9
Arizona                   3.7                  2.3                      0.6                   0.9              -                  3.8                      0.3                0.2                 -            0.1            11.9
Utah                      1.8                  1.2                      0.7                   1.0            0.1                  2.8                      0.2                  -               0.1            0.1             8.0
Texas                     1.7                  3.4                      2.5                   1.4            0.1                  1.0                        -                  -                 -              -            10.1
New Mexico                1.0                  1.6                      0.3                   0.2            0.1                  1.3                        -                  -                 -            0.1             4.6
Idaho                     0.9                  0.9                      0.3                   0.4            0.2                  2.0                      0.2                0.1                 -            0.1             5.1
Nevada                    0.7                  1.1                      0.3                   0.2              -                  1.5                        -                0.1               0.1              -             4.0
Other                     0.7                  0.5                      2.7                   0.1              -                  0.2                        -                  -               0.1              -             4.3
                         16.2  %              17.3  %                  16.5  %                8.0  %         1.4  %              35.2  %                   2.5  %             1.1  %            0.6  %         1.2  %          100  %


Percentage by geographic area in% of each type of loan

                                                                                                                          Single -
 September 30,       Multi-           Commercial            Commercial                                  Land -             Family            Construction -            Land -
      2021           family          Real Estate          and Industrial          Construction           A & D          Residential              custom
             Lot Loans          Consumer           HELOC
                                                                                                      As % of total gross loans
Washington               13.7  %              21.2  %                 40.4  %               24.4  %         40.8  %              50.6  %                 57.0  %            55.3  %           46.1  %         55.8  %
Oregon                   21.7                 15.0                    14.7                  22.6            24.4                 13.7                    11.9               11.6               0.6            13.4
Arizona                  22.8                 13.3                     3.8                  11.5             0.7                 10.8                    11.1               14.0               0.5            10.1
Utah                     11.3                  7.0                     4.3                  12.4             7.9                  7.9                     9.3                3.7              15.4             5.3
Texas                    10.4                 19.6                    14.8                  17.6             4.0                  3.0                     0.6                0.1               0.1             1.0
New Mexico                6.4                  9.2                     1.9                   2.9             8.6                  3.6                     1.6                2.0               0.9             5.5
Idaho                     5.2                  5.5                     1.8                   5.0            13.0                  5.7                     6.8                8.4               0.1             6.9
Nevada                    4.3                  6.2                     1.8                   2.5             0.6                  4.3                     1.7                4.9              12.3             2.0
Other                     4.2                  3.0                    16.5                   1.1               -                  0.4                       -                  -              24.0               -
                          100  %               100  %                  100  %                100  %          100  %               100  %                  100  %             100  %            100  %          100  %



                                       48

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL POSITION AND RESULTS OF

                                   OPERATIONS

The following table shows the evolution of the geographical distribution by state of the loan portfolio since the previous year.

                       September 30,       2021     2020    Change
                       Washington         36.1  %  40.0  %  (3.9)
                       Oregon             15.9     17.9     (2.0)
                       Arizona            11.9     11.7      0.2
                       Utah                8.0      6.5      1.5
                       Texas              10.1      8.1      2.0
                       New Mexico          4.6      5.6     (1.0)
                       Idaho               5.1      4.8      0.3
                       Nevada              4.0      3.3      0.7
                       Other (1)           4.3      2.1      2.2
                                           100  %   100  %

(1) Includes loans outside of our eight state footprint.


CARES Act and PPP Program: Pursuant to the Coronavirus Aid, Relief, and Economic
Security Act ("CARES Act") passed by Congress, the Company offered payment
deferrals on consumer loans and commercial loans. The Company also made loans to
small businesses through the Small Business Administration Paycheck Protection
Program. For further information on these activities, see   Note D to the
Consolidated Financial Statements in "Item 8. Financial Statements and
Supplementary Data"   of this report.
Allowance for credit losses: For details, see the "Allowance for Credit Losses"
section above in this report.

Non-Performing Assets: For more details, see the “Asset Quality” section above in this report.

Restructured Loans for Distressed Debt (“TOR”): For more details, see the “Asset Quality” section above in this report.

Property Owned: For more details, see the “Quality of Assets” section above in this report.


Interest receivable: Interest receivable was $50,636,000 as of September 30,
2021, a decrease of $3,163,000, or 5.9%, since September 30, 2020. The decrease
was primarily a result of payments on previously deferred amounts on CARES Act
loan modifications.

Bank Owned Life Insurance: Bank-owned life insurance increased to $233,263,000
as of September 30, 2021 from $227,749,000 as of September 30, 2020, primarily
as a result of increases in the cash surrender value of the policies. The
investments in bank-owned life insurance serve to assist in funding growing
employee benefit costs.
Intangible assets: The Company's intangible assets totaled $310,019,000 at
September 30, 2021 compared to $309,906,000 as of September 30, 2020. The
balance at September 30, 2021 is comprised of $303,457,000 of goodwill and the
unamortized balance of the core deposit and other intangibles of $6,562,000.

Accounts Receivable: To September 30, 2021, customer deposits rise
$ 15,542,112,000 compared to $ 13,779,624,000 To September 30, 2020, a
$ 1,762,488,000, or 12.8%, increases. During 2021, the Company was able to increase the trading accounts of $ 2,301,593,000 or 23.5% while term deposits decreased by $ 539,105,000 or 13.6%.

The following table shows customer deposits by type of account.

                                       49

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   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
                                   OPERATIONS
($ in thousands)                                          September 30, 2021                                                        September 30, 2020
                                   Deposit Account        As a % of Total              Weighted              Deposit Account        As a % of Total              Weighted
                                       Balance                Deposits               Average Rate                Balance                Deposits               Average Rate
Non-interest checking             $    3,122,397                   20.1  %                       -  %       $    2,164,071                   15.7  %                       -  %
Interest checking                      3,566,322                   22.9                       0.20               3,029,576                   22.0                       0.23
Savings                                1,039,336                    6.7                       0.11                 872,087                    6.3                       0.11
Money market                           4,379,970                   28.2                       0.19               3,740,698                   27.1                       0.30
Time deposits                          3,434,087                   22.1                       0.54               3,973,192                   28.8                       1.17
Total                             $   15,542,112                    100  %                    0.23  %       $   13,779,624                    100  %                    0.48  %




The following table shows the geographic distribution by state for customer
deposits.

($ in thousands)                         September 30, 2021                   September 30, 2020             $ Change         % Change
Washington                      $        6,742,208           43.4  % $        5,914,476           42.9  % $   827,732               14.0  %
Oregon                                   3,006,222           19.3             2,627,720           19.1        378,502               14.4  %
Arizona                                  1,551,671           10.0             1,481,603           10.8         70,068                4.7  %
New Mexico                               1,292,965            8.3             1,148,816            8.3        144,149               12.5  %
Idaho                                    1,067,834            6.9               949,920            6.9        117,914               12.4  %
Utah                                     1,027,317            6.6               988,498            7.2         38,819                3.9  %
Nevada                                     522,988            3.4               442,772            3.2         80,216               18.1  %
Texas                                      330,907            2.1               225,819            1.6        105,088               46.5  %
                                $       15,542,112            100  % $       13,779,624            100  % $ 1,762,488               12.8  %



The following table shows, by different interest rate categories, the amount of fixed rate term deposits maturing during the periods indicated.

                                                                                       Maturing in
                                1 to 3              4 to 6            7 to 12            13 to 24           25 to 36           37 to 60
September 30, 2021              Months              Months             Months             Months             Months             Months             

Total

                                                                                      (In thousands)
Fixed-rate time deposits:
Under 1.00%                 $ 1,083,314          $ 819,906          $ 870,801          $ 293,341          $  13,138          $  73,289          $ 3,153,789
1.00% to 1.99%                      982                  -                  -            101,548             56,380             70,683              229,593
2.00% to 2.99%                      608                  -                  -                  -             50,000                  -               50,608
3.00% to 3.99%                       97                  -                  -                  -                  -                  -                   97

Total                       $ 1,085,001          $ 819,906          $ 870,801          $ 394,889          $ 119,518          $ 143,972          $ 3,434,087



Historically, a significant number of time deposit account holders roll over
their balances into new time deposits of the same term at the Bank's then
current rate. To ensure a continuity of this trend, the Bank expects to continue
to offer market rates of interest. The ability to retain maturing time deposits
is difficult to project; however, the Bank believes that by competitively
pricing these certificates, levels deemed appropriate by management can be
achieved on a continuing basis.
At September 30, 2021, the Bank had $607,245,000 of time deposits in amounts of
$250,000 or more outstanding, maturing as follows: $200,127,000 within 3 months;
$131,401,000 over 3 months through 6 months; $139,859,000 over 6 months through
12 months; and $135,858,000 thereafter.
Time deposits with a maturity of one year or less have penalties for premature
withdrawal equal to 90 days of interest. When the maturity is greater than one
year but less than four years, the penalty is 180 days of interest. When the
maturity is

                                       50

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL POSITION AND RESULTS OF

                                   OPERATIONS
greater than four years, the penalty is 365 days of interest. Early withdrawal
penalty fee income for the years ended 2021, 2020 and 2019 amounted to $198,000,
$539,000 and $895,000, respectively.
For additional details on customer accounts, including uninsured deposits, see

Note K to the consolidated financial statements in “Section 8. Financial statements and additional data” of this report.


FHLB advances: FHLB advances declined to $1,720,000,000 as of September 30,
2021, as compared to $2,700,000,000 at September 30, 2020. Strong growth in
customer deposits allowed the Company to reduce FHLB borrowings. Since September
30, 2020, cash flow hedges totaling $600,000,000 were terminated and the
associated FHLB advances were paid off. An additional $150,000,000 of unhedged
advances were repaid prior to maturity (resulting in a prepayment fee of
$13,788,000) and the remaining $230,000,000 of unhedged borrowings were not
renewed upon maturity. The weighted average rate for FHLB borrowings was 1.51%
as of September 30, 2021, versus 1.79% at September 30, 2020, the decrease being
primarily due to repayment of advances with higher rates. The Company has
entered into interest rate swaps to hedge interest rate risk and convert certain
FHLB advances to fixed rate payments. Taking into account these hedges, the
weighted average effective maturity of FHLB advances at September 30, 2021 is
5.03 years.


                                       51

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL POSITION AND RESULTS OF

                                   OPERATIONS
RESULTS OF OPERATIONS
COMPARISON OF 2021 RESULTS WITH 2020
Net Income: Net income increased $10,177,000, or 5.9%, to $183,615,000 for the
year ended September 30, 2021, as compared to $173,438,000 for the year ended
September 30, 2020. The change was due to the factors described below.
Net Interest Income: For the year ended September 30, 2021, net interest income
was $505,109,000, an increase of $35,601,000 or 7.6% from the year ended
September 30, 2020. The increase in net interest income from the prior year was
primarily due to average interest-earning assets increasing by $1,986,044,000 or
12.37% while average interest-bearing liabilities increased by $1,017,143,000 or
7.72%. During 2021, the average balance of loans receivable increased
$943,212,000 or 7.7%, while the combined average balances of mortgage backed
securities, other investment securities and cash increased by $1,054,758,000 or
28.9%. Average noninterest-bearing deposits grew by $809,741,000 over the same
period. The change in net interest income was also impacted by the average rate
earned on interest-earning assets declining by 58 basis points while the average
rate paid on interest-bearing liabilities declined by 54 basis points.
Rate/Volume Analysis

The table below sets forth certain information regarding changes in interest
income and interest expense of the Company for the years indicated. For each
category of interest-earning asset and interest-bearing liability, information
is provided on changes attributable to: (1) changes in volume (changes in volume
multiplied by old rate) and (2) changes in rate (changes in rate multiplied by
old average volume). The change in interest income and interest expense
attributable to changes in both volume and rate has been allocated
proportionately to the change due to volume and the change due to rate.

                                                                                                  Twelve Months Ended September 30,
                                                    2021 vs. 2020                                           2020 vs. 2019                                           2019 vs. 2018
                                             Increase (Decrease) Due to                              Increase (Decrease) Due to                              Increase (Decrease) Due to
                                     Volume              Rate              Total            Volume              Rate              Total              Volume              Rate              Total
                                                   (In thousands)                                          (In thousands)                                          (In thousands)
Interest income:
Loan portfolio                    $  40,365          $ (48,413)         $ (8,048)         $ 21,197          $ (43,585)         $ (22,388)         $  28,489          $  23,800          $ 52,289
Mortgage-backed securities          (16,011)            (8,593)          (24,604)          (13,094)           (12,079)           (25,173)               298              3,780             4,078
Investments (1)                      18,824            (15,827)            2,997            19,566            (22,206)            (2,640)             3,878              4,138             8,016
All interest-earning assets          43,178            (72,833)          (29,655)           27,669            (77,870)           (50,201)            32,665             31,718            64,383
Interest expense:
Customer accounts                    11,184            (69,183)          (57,999)            9,781            (31,685)           (21,904)             3,992             45,732            49,724
FHLB advances and other
borrowings                           (6,003)            (1,254)           (7,257)              (35)           (16,710)           (16,745)             4,020              1,718             5,738
All interest-bearing liabilities      5,181            (70,437)          (65,256)            9,746            (48,395)           (38,649)             8,012             47,450            55,462
Change in net interest income     $  37,997          $  (2,396)         $ 35,601          $ 17,923          $ (29,475)         $ (11,552)         $  24,653          $ (15,732)         $  8,921


___________________

(1) Includes interest on cash equivalents and dividends on FHLB shares of
monks and FRB of San Francisco.


Provision (Release) for Credit Losses: 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

                                       52

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL POSITION AND RESULTS OF

                                   OPERATIONS

loads of $ 6,345,000 for the year ended September 30, 2021, compared to
$ 3,271,000 net recoveries for the year ended September 30, 2020.


Other Income: Other income was $60,561,000 for the year ended September 30,
2021, a decrease of $26,399,000, or 30.4%, from $86,960,000 for the year ended
September 30, 2020. The decrease is primarily due to the recognition of a net
gain of $30,700,000 in 2020 from the sale and valuation adjustments of fixed
assets, including a branch property in Bellevue, Washington. In 2021, a gain of
$4,700,000 was recorded for equity investments based on updated valuations, a
gain of $14,110,000 was recognized on the partial termination of an interest
rate swap being used to hedge a FHLB borrowing, and these amounts were partially
offset by a $13,788,000 loss on early repayment of a fixed-rate FHLB borrowing.

Other Expense: Operating expense was $332,459,000 for the year ended September
30, 2021, an increase of $16,901,000, or 5.4%, from the $315,558,000 for the
year ended September 30, 2020. Compensation and benefits costs increased
$28,510,000 or 19.3% year-over-year primarily due to annual merit increases,
higher bonus compensation accruals related to strong deposit and loan growth,
and strategic investments in top talent as well as contract staff to support
strategic projects. Information technology costs decreased by $10,165,000 in
2021, as 2020 reflected larger investments in new hardware and software as well
as a $5,900,000 impairment charge. In September 2021, the company recognized a
$2,500,000 civil money penalty paid to the Office of the Comptroller of the
Currency ("OCC") related to the previously-disclosed February 2018, Consent
Order for Anti-Money Laundering and Bank Secrecy Act ("AML/BSA") deficiencies.
The Company's efficiency ratio was 58.8% for 2021 as compared to 56.7% for the
prior year. The number of staff, including part-time employees on a full-time
equivalent basis, was 2,082 and 2,080 at September 30, 2021 and 2020,
respectively. Total operating expense for the years ended September 30, 2021,
and 2020 were 1.72% and 1.82%, respectively, of average assets.

Gain (Loss) on Real Estate Owned: Net gain on real estate owned was $427,000 for
the year ended September 30, 2021, compared to a net gain of $26,000 for the
year ended September 30, 2020. This amount includes ongoing maintenance expense,
periodic valuation adjustments, and gains (losses) on sales of REO.

Income Tax Expense: Income tax expense was $49,523,000 for the year ended
September 30, 2021, an increase of $3,775,000, or 8.3%, from the $45,748,000 for
the year ended September 30, 2020. The increase is mostly due to a 6.4% increase
in pre-tax income. The effective tax rate for 2021 was 21.24% as compared to
20.87% for the year ended September 30, 2020. The effective tax rate of 21.24%
for 2021 differs from the statutory rate mainly due to the effects of state
taxes, bank-owned life insurance, tax credit investments, tax-exempt loans to
municipal entities and other qualified borrowers as well as adjustments to
deferred tax items.


                                       53

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL POSITION AND RESULTS OF

                                   OPERATIONS

COMPARISON OF 2020 RESULTS WITH 2019


For management's review of the factors that affected our results of operations
for the years ended September 30, 2020 and 2019 refer to our Annual Report on
Form 10-K for the year ended September 30, 2020, which was filed with the
Securities and Exchange Commission on November 20, 2020.

                                       54

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE FINANCIAL POSITION AND RESULTS OF

                                   OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES


The principal sources of funds for the Company's activities are loan repayments
(including prepayments), net deposit inflows, borrowings, repayments and sales
of investments and retained earnings, if applicable. The Company's principal
sources of revenue are interest on loans and interest and dividends on
investments. Additionally, the Company earns fee income for loan, deposit,
insurance and other services.
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 1/40th
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 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.
The Company's shareholders' equity at September 30, 2021, was $2,126,064,000, or
10.82% of total assets, as compared to $2,014,133,000, or 10.72% of total
assets, at September 30, 2020. The Company's shareholders' equity was impacted
in the year by the February 8, 2021 issuance of Series A Preferred Stock and the
receipt of net proceeds, after underwriting discounts and expenses of
$293,325,000. Additionally, net income of $183,615,000, the payment of
$65,876,000 in common stock dividends, payment of $6,378,000 in preferred stock
dividends, $348,651,000 of treasury stock purchases, as well as other
comprehensive income of $52,832,000 impacted shareholders' equity. The Company
paid out 38.1% of its 2021 earnings in cash dividends to common shareholders,
compared with 38.5% last year. For the year ended September 30, 2021, the
Company returned 226% of net income to shareholders in the form of cash
dividends and share repurchases as compared to 103% for the year ended September
30, 2020. Management believes the Company's strong net worth position allows it
to manage balance sheet risk and provide the capital support needed for
controlled growth in a regulated environment. Share repurchases were temporarily
suspended during the COVID-19 pandemic but resumed in 2021. The Company's share
repurchase program may be modified, suspended or terminated at any time, and the
timing and amount of share repurchases is subject to market conditions and the
market price of the Company's common stock, as well as other factors.
The Bank has a credit line with the Federal Home Loan Bank of Des Moines
("FHLB") up to 45% of total assets depending on specific collateral eligibility.
This line provides a substantial source of additional liquidity if needed. Based
on collateral pledged as of September 30, 2021, the Bank had $2,267,319,000 of
additional borrowing capacity at the FHLB.

The Bank has entered into borrowing agreements with the FHLB to borrow funds
under a short-term floating rate cash management advance program and fixed-rate
term advance agreements. All borrowings are secured by stock of the FHLB,
deposits with the FHLB, and a blanket pledge of qualifying loans receivable as
provided in the agreements with the FHLB. The Bank is also eligible to borrow
under the Federal Reserve Bank's primary credit program.
The Company's cash and cash equivalents were $2,090,809,000 at September 30,
2021, which is a 22.8% increase from the balance of $1,702,977,000 as of
September 30, 2020. This increase was primarily due to the $1,762,488,000
increase in customer deposits, the majority of which was used to fund growth in
the loan portfolio and paydown FHLB borrowings. See "Changes in Financial
Condition" above and the "Statement of Cash Flows" included in the financial
statements for additional details regarding this change.
The following table presents the Company's significant fixed and determinable
contractual obligations, within the categories described below, by contractual
maturity or payment amount.

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   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
                                   OPERATIONS
                                                          Less than          1 to 5         Over 5
     September 30, 2021                   Total             1 Year            Years          Years
                                                              (In thousands)
     Customer accounts (1)            $ 15,542,112      $ 14,883,733      $   657,534      $   845
     Debt obligations (2)                1,720,000         1,320,000          400,000            -
     Operating lease obligations            32,270             6,197       
   17,758        8,315
                                      $ 17,294,382      $ 16,209,930      $ 1,075,292      $ 9,160



(1) Includes non-maturing customer transaction accounts.
(2) Represents contractual maturities of FHLB advances. Taking into account cash
flow hedges, the weighted average effective maturity of FHLB advances at
September 30, 2021 is 5.03 years.
These obligations are included in the Consolidated Statements of Financial
Condition. The payment amounts of the operating lease obligations represent
those amounts contractually due.

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