Wafd, Inc. · NASDAQ:WAFD
Wafd — Washington Federal — Merger or Acquisition (November 2022)
18 slides from Wafd's merger presentation, Nov 13, 2022
Slide 1: Washington Federal to Enter California Through the Acquisition of Luther Burbank
November 13, 2022 Seattle, WA to Enter California Through the Acquisition of Santa Rosa, CA
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the financial
Slide 3: Additional Information
Additional Information Important Information About the Proposed Transaction and Where to Find It In connection with the proposed transaction, a registration statement on Form S-4 will be filed by WAFD with the Securities and Exchange Commission (“SEC”) that will include a joint proxy statement/prosp
Slide 4: Today's Presenters
Today’s Presenters Brent Beardall Vincent Beatty Kelli Holz Simone Lagomarsino Laura Tarantino President, Executive Vice President and Senior Vice President and President and Executive Vice President and Chief Executive Officer, and Chief Financial Officer Chief Risk Officer Chief Executive Officer
Slide 5: Creating a Leading Western U.S. Franchise…
Creating a Leading Western U.S. Franchise… Washington Federal, Inc. (NASDAQ: WAFD) upon closing will enter into desirable and fast-growing California metro markets by merging with Luther Burbank Corporation (NASDAQ: LBC), the bank holding company of Luther Burbank Savings, a community bank headquart
Slide 6: …Utilizing Technology Initiatives for Long-Term Growth
…Utilizing Technology Initiatives for Long-Term Growth Technology stack at WAFD provides a unique opportunity with Luther Burbank merger • WAFD has invested heavily over the last three years to build differentiating technology • Fastest website in US Banking, per Google analytics; the website is you
Slide 7: Overview of Luther Burbank Corporation
Overview of Luther Burbank Corporation Company Branch Footprint • NASDAQ Listed: LBC • LBC (11) • Headquarters: Santa Rosa, CA • Locations: 10 full service branches in California, 1 full service branch in Washington, 6 loan production offices in California and Washington 1 loan production office in
Slide 8: Why is WAFD Comfortable Buying an $8 billion CA Bank Heading into a Potential Recession?
Why is WAFD Comfortable Buying an $8 billion CA Bank Heading into a Potential Recession? After thorough due diligence, we believe the Luther Burbank loan portfolio is pristine and the yields are reflective of the low risk Multifamily Residential Loans Single Family Residential Loans Markets: Occupan
Slide 9: Entrance into Attractive California Metro Markets
Entrance into Attractive California Metro Markets Indicates MSA LBC operates in Top 10 CA MSAs by Population (000s) Top 10 CA MSAs by 2022 – 2027 Population Growth #1 #2 #6 #6 #8 13,208 3.6% 3.1% 3.1% 3.0% 2.7% 2.6% 2.5% 2.5% 2.5% 2.4% 4,746 4,723 3,363 2,404 1,998 1,020 914 842 783 Los Angeles San
Slide 10: WAFD's Loan Growth History
WAFD’s Loan Growth History $ in millions New Loan Originations Loan Growth $10,000 $18,000 $16,000 $8,000 $14,000 $12,000 $6,000 $10,000 $8,000 $4,000 $6,000 $2,000 $4,000 $2,000 $- $0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2014 2015 2016 2017 2018 2019 2020 2021 2022 Mortgage & Consumer Comme
Slide 11: WAFD's Evolution from Thrift to Bank Funding
WAFD’s Evolution from Thrift to Bank Funding $ in millions $16,030 $10,835 $8,577 $5,979 2007Y 2012Y 2017Y 2022Y Time Deposits Money Market Savings Checking Note: Balances as of fiscal year ending September 30. Note: Balances shown as of fiscal year ended September 30. 11
Slide 12: Pro Forma Loan and Deposit Composition
Pro Forma Loan and Deposit Composition WAFD LBC Pro Forma(1) Consumer & Consumer & Other Consumer & Other Other C&D 1.8% 2.5% C&D C&D 0.0% 0.3% Multifamily 13.6% 9.6% 16.1% Res. RE C&I 31.5% 7.6% Multifamily C&I 30.8% Loans 10.8% NOO CRE 15.8% $16.3B $6.9B $23.1B OO CRE 0.0% Multifamily NOO CRE NOO
Slide 13: Pro Forma Transaction Highlights
Pro Forma Transaction Highlights Attractive Western Region Footprint $29B $23B $22B Pro Forma Assets Pro Forma Loans Pro Forma Deposits Deposit Concentration by State(5) Standalone Pro Forma Total WAFD WAFD + LBC Dep. Top 50 #7 1 of Only 2 Deals(3) Dep. % of Dep. % of in State Accretive to TBVPS S
Slide 14: Transaction Summary
Transaction Summary Transaction • Washington Federal, Inc. (WAFD) will acquire 100% of Luther Burbank Corporation’s (LBC) outstanding common stock Consideration Mix • 100% Stock(1) Fixed Exchange Ratio • 0.3353 shares of WAFD common stock per share Per Share Merger • $12.79 total consideration per s
Slide 15: Key Assumptions
Key Assumptions • WAFD’s earnings per Street consensus estimates Earnings Assumptions • LBC’s earnings per Street consensus estimates less 30% given Luther Burbank’s liability-sensitive balance sheet and adjusted for a September 30 fiscal year end Merger Costs • One-time merger expenses: $37.0 milli
Slide 16: Illustrative Loan Interest Rate Mark Sensitivity – Impact to Capital
Illustrative Loan Interest Rate Mark Sensitivity – Impact to Capital The pro forma impact reflects a loan interest rate mark of ($202) million, or (2.95%) of gross Luther Burbank loans; even if rates were to dramatically increase between announcement and close, the pro forma company would remain ver
Slide 17: Nationwide Bank Transactions: TBVPS, EPS and CET1 Accretion
Nationwide Bank Transactions: TBVPS, EPS and CET1 Accretion Includes nationwide bank transactions with deal values between $500 million and $1 billion since 1/1/2017 with publicly disclosed TBVPS, EPS and CET1 accretion metrics; data as of the date of this presentation Deal P ay to Announc e Value T
Slide 18: Forward-looking statements notice
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Washington Federal’s management and are subject to significant risks and uncertainties. The forward
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