Wafd, Inc. · NASDAQ:WAFD
Wafd — Investor Presentation (February 2025)
36 slides from Wafd's investor presentation, Feb 11, 2025
Slide 1: Investor Presentation As of December 31, 2024
Investor Presentation As of December 31, 2024 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 si
Slide 2: Overview of WaFd Bank
Overview of WaFd Bank Overview Geographic Overview • Established in 1917; IPO in 1982 • Washington State Charter Commercial Bank – WA DFI, FDIC, FRB, CFPB Regulated • Headquartered in Seattle, WA; is the second largest bank headquartered in the Pacific Northwest • 210 branches across 9 western state
Slide 3: WaFd Bank Executive Management Committee
WaFd Bank Executive Management Committee Brent Beardall Kelli Holz Cathy Cooper President and Chief Executive Officer SEVP Chief Financial Officer EEVP Chief Experience Officer Kim Robison Ryan Mauer EVP Chief Operating Officer EVP Chief Credit Officer 3 3
Slide 4: WaFd Bank Demographics
WaFd Bank Demographics Our markets are among the most desirable in the US and create a foundation for loan growth without excessive risk Projected Median Projected Company Deposit Percent of Total Population Population HH HH Income Number Deposits Market National Population Change Change Income Chan
Slide 5: Build 2030
Build 2030 Organizational Structure & Objectives: Business Banking and Commercial Real Estate Banking Divisions have two primary objectives as a trusted advisor: 1. Deliver phenomenal, concierge‐level customer service to all our clients – “everyone and every business deserves a WaFd banker”. 2. Grow
Slide 6: Evolution of Our Franchise
Evolution of Our Franchise 15 years of investment in our evolution to a commercial bank Build 2030 Serving Businesses Concierge level service for all 1917‐2007 Digital Focus clients –serving Evolve from businesses analog to wholistically Commercial digital delivery alongside Add systems channels con
Slide 7: Net Promoter Score Approaching World Class
Net Promoter Score Approaching World Class Our investments in customer service, usability and technology are translating into high customer satisfaction levels Peer Net Promoter Score 1 WaFdaa Net Promoter Score 1 57 55 51 55 48 48 52 44 34 31 19 17 6 7 4 2017 2018 2019 2020 2021 2022 2023 2024 Sour
Slide 8: Web Traffic to Wafdbank.com
Web Traffic to Wafdbank.com WaFd Bank's online growth of traffic to its website is due to our technology efforts. Now averaging more than 200,000 new website visitors a month 8
Slide 9: Commitment to ESG & Diversity
Commitment to ESG & Diversity We believe our enduring franchise comes from core principles focused on helping the neighborhoods we serve and creating long‐ term value for all stakeholders led by a Board, management and employee base that bring together a diversity of backgrounds Board Composition Ge
Slide 10: 5 Year Change by Percentage in Each Geographical Area
5 Year Change by Percentage in Each Geographical Area 1 From September 30, 2019, to December 31, 2024 5 Year percentage change in Loans by Geographical Area 5 Year percentage change in Deposits by Geographical Area 1 Wafd entered the California market with the LBC merger 3/1/24. 10
Slide 11: Loan and Deposit Balances by Geographical Area
Loan and Deposit Balances by Geographical Area As of December 31, 2024 $ In Millions 11
Slide 12: Loan Growth – Through Different Interest Rate Environments
Loan Growth – Through Different Interest Rate Environments $ in millions. New Loan Originations Loan Growth • Originations overall are reduced due to both rising • Although originations have slowed, they are interest rates and an intentional slowing to temper keeping up with repayments largely throu
Slide 13: Non‐Performing Assets Near Record Lows
Non‐Performing Assets Near Record Lows We have retained a strong ACL while NPAs have declined since 2010 • ACL at 12/31/2024 amounted to $204 million, representing 259% of total NPAs 1 • Non‐performing assets $79 million as of 12/31/2024, 0.29% of Total Assets Non‐Performing Assets to Total Assets a
Slide 14: Strong Credit Quality
Strong Credit Quality Strong Credit Quality Characterized by Limited Charge‐Offs The Bank experienced nine consecutive years of net recoveries, fiscal 2014 through fiscal 2022, during which net recoveries totaled $74.8 million. Although we experienced net charge‐offs in fiscal 2023, those were the r
Slide 15: Net Loan Portfolio Average Current LTV
Net Loan Portfolio Average Current LTV As of December 31, 2024 $ In Thousands % of WTD Avg % Delinquent Net Balance Loans Current LTV based on $ Multifamily $ 4,714,800 22% 58% 0.50% CRE ‐ Office 783,196 4% 65% 0.00% CRE ‐ Other 2,789,689 13% 48% 0.02% CRE Construction ‐ Multifamily 860,326 4% 51% 0
Slide 16: Other CRE Property Types as % of Total Net Loans
Other CRE Property Types as % of Total Net Loans As of December 31, 2024 16
Slide 17: Significant Liquidity and High‐Quality Securities Portfolio
Significant Liquidity and High‐Quality Securities Portfolio High quality, $4.8 billion cash and investment portfolio with $7.7 billion remaining collateral and lines as a source of additional potential liquidity Cash and Securities Composition Cash & Securities / Total Assets1 Dec 31, 2024 High Qual
Slide 18: Investment Portfolio
Investment Portfolio High quality, $3.2 Billion investment portfolio with a duration of 2.9 years. Portfolio is 54% variable rate. HTM Investments Fair Value Gain/Loss WAL Expected Yield Agency MBS $ 485,106 $ (52,242) 7.4 3.58% AFS Investments Fair Value Gain/Loss WAL Expected Yield Agency MBS $ 1,
Slide 19: Highly Diversified Deposit Base ‐ % of Deposits by Industry
Highly Diversified Deposit Base ‐ % of Deposits by Industry Top 20 depositors make up 9.7% of total deposits. 24.8% of total deposits are uninsured and not collateralized as of December 31, 2024. 19
Slide 20: Deposit Trends
Deposit Trends Shifting away from time deposits in favor of transaction accounts. Checking accounts now make up 33% of all deposits 20
Slide 21: Deposit Flows
Deposit Flows Overall changes by quarter and balances by type Customer Deposit Ac c ounts 9 /3 0 /2 0 2 2 1 2 /3 1 / 2 0 2 2 3 /3 1 / 2 0 2 3 6 / 3 0 /2 0 2 3 9 / 3 0 /2 0 2 3 1 2 /3 1 / 2 0 2 3 3 /3 1 / 2 0 2 4 6 /3 0 / 2 0 2 4 9 /3 0 / 2 0 2 4 1 2 / 3 1 /2 0 2 4 Chec king ‐ Noninterest Bearing 3 ,
Slide 22: Borrowings and Debt Outstanding & Weighted Rate
Borrowings and Debt Outstanding & Weighted Rate Total Debt is 98.3% FHLB and 1.7% Junior Subordinated debentures and is used in part to manage interest rate risk. Current period decrease reflects the $1.0 billion in Fed’s Term Funding borrowings paid off with the proceeds from the LBC loan sales. In
Slide 23: Cost of Deposits in the Rising Rate Environment
Cost of Deposits in the Rising Rate Environment 23
Slide 24: AOCI vs our Peers
AOCI vs our Peers Total Accumulated Other Comprehensive Income as a percent of Equity 20% 2 > OS 72 48 49 SS » DS 1D 1D 1D DN D? ” ” be be bc be ae ee x av ys ie ee « ae yy ot oe w a ye oo ee w gr ye is oe Rad yr op oe WAFD ‘OLB WAL BANR ZION WaFd Bank
Slide 25: Income Statement Comparison
Income Statement Comparison $ In thousands Three Months Ended, 12/31/2024 12/31/2023 $ Change % Change INTEREST INCOME Loans.............................................................................................. $ 286,597 $ 245,792 $ 40,805 17% Mortgage‐backed securities......................
Slide 26: Income Statement Comparison
Income Statement Comparison In thousands Three Months Ended, 12/31/2024 12/31/2023 $ Change % Change OTHER INCOME $ 15,702 $ 14,167 $ 1,535 10.8% OTHER EXPENSE Compensation and benefits........................................................... 59,927 49,841 10,086 20.2% Occupancy...................
Slide 27: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin Net interest income in thousands. IRR measures as of Dec 31, 2024: • Net Interest Income (NII) would increase by 3.2% in +200 bps immediate and parallel shock and would increase by 3.5% in a ‐200 bps immediate parallel shock. • Net Portfolio Value (NPV) af
Slide 28: Net Income and Common Earnings Per Share
Net Income and Common Earnings Per Share Annual Quarterly March 31, 2024 Net Income and EPS reflect merger‐related expenses of $25 million and the preliminary ACL provision of $16 million. 28
Slide 29: Non‐Interest Income
Non‐Interest Income Diverse sources of Non‐Interest Income provide steady growth and balance our revenue profile Non‐Interest Income for Quarter‐Ended 12/31/2024 Non‐Interest Income Over Time ($MM) Loan Fees $30.7 8.6% $10.1 $33.2 Other $24.1 $28.6 $29.9 $23.2 $23.3 $23.1 Income $14.7 44.9% Deposit
Slide 30: Non‐Interest Expense Over Time
Non‐Interest Expense Over Time Annual and Quarterly ‐ Expenses in thousands Annual Quarterly Non‐interest expense includes FDIC premiums, product delivery & IT related costs and other miscellaneous expenses. The quarter‐ended March 31, 2024 includes merger related expenses and other non‐operating ex
Slide 31: Breakout of Non‐Interest Expense
Breakout of Non‐Interest Expense Expenses in millions Non‐Interest Expense includes: • FDIC Premiums • Product Delivery • Information Technology • ‘Other expense’ line‐item include professional services, marketing and administrative costs. 31
Slide 32: Capital Ratios
Capital Ratios WAFD does not seek to maximize leverage. Rather, we aspire to be the bank that can best weather the next storm on the horizon. • Source: S&P Global, Company Filings 32
Slide 33: Returning Capital to Shareholders
Returning Capital to Shareholders Return of Income to Common Shareholders Common Dividend as a % of Net Income Percent of Income Stock Buyback & returned to 42.9% 40.1% 38.3% 38.0% Net Income Dividends Shareholders 2016 $164,049 $137,808 84% 30.1% 2017 $173,532 $172,892 100% 27.5% 27.8% 26.3% 2018 $
Slide 34: Stock Price & Book Value Per Share
Stock Price & Book Value Per Share As of 12/31/2024: Book Value per Share $33.45 Tangible Book Value per Share $27.93 Price to BV: .964 Price to TBV: 1.15 34
Slide 35: Perspective through the last Credit Cycle
Perspective through the last Credit Cycle Managing Capital Text Text Text Tex 35
Slide 36: This presentation contains forward‐looking statements within the meaning of the Private Securities Litigation Reform
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