Company Profile
WaFd, Inc. (NASDAQ: WAFD) (“the company”) is the BHC for main subsidiary, Washington Federal Bank (“the bank”), which operates 210 branches across a 9-state footprint in the Western U.S., with the most prominent market being the Pacific Northwest, in which WAFD reflects the 2nd largest deposit market share among locally headquartered institutions.
The company has not been overly aggressive with M&A historically (3 completed transactions since 2008), though recently closed the sizable deal of Luther Burbank Corporation in 1Q24, which added $8 billion in assets and expanded WAFD into CA. Despite management opting to sell a considerable portion of assets, including $2.8 billion of multifamily loans in 2Q24 (sold at 92% of UPB; covered by marks with no losses realized), the LBC deal appears to be a relatively economical entrance into attractive markets that should provide solid growth…