• A regional version of Bank of America.
• Like Wells Fargo, but concentrated in the Western U.S.

• Deposit Accounts: Offering various checking, savings, money market, and certificate of deposit accounts for individuals and businesses.
• Residential Mortgage Loans: Providing financing for the purchase or refinancing of homes.
• Commercial Real Estate Loans: Offering loans for the acquisition, development, and refinancing of commercial properties.
• Commercial and Industrial Loans: Extending credit to businesses for operating capital, equipment purchases, and other business needs.
• Consumer Loans: Providing personal loans, auto loans, and other forms of credit to individuals.
• Business Banking Services: Offering treasury management, merchant services, and other financial solutions tailored for businesses.

WaFd (WAFD) Major Customers

WaFd sells primarily to both individuals and businesses, with its services tailored to the following customer categories:

• Consumers/Individuals

  This category includes general consumers who utilize WaFd's personal banking services such as checking and savings accounts, mortgages, home equity lines of credit, auto loans, and other personal financial products.

• Small to Medium-sized Businesses (SMBs)

  WaFd provides banking and lending services to a wide range of small and medium-sized businesses across various industries. These services typically include business checking and savings accounts, commercial loans (e.g., lines of credit, term loans), treasury management services, and merchant services.

• Commercial Real Estate (CRE) Investors and Developers

  A significant portion of WaFd's lending is focused on commercial real estate. This customer category includes individuals, partnerships, and companies (often small to medium-sized entities) involved in the acquisition, development, construction, and refinancing of income-producing properties such as multi-family residential, office, retail, and industrial spaces.

• Fiserv (FI)
• Q2 Holdings (QTWO)
• Visa (V)
• Mastercard (MA)

Brent J. Beardall President & Chief Executive Officer, Vice Chairman

Mr. Beardall joined WaFd Bank in 2001 as Vice President & Controller. He was promoted to Chief Financial Officer in 2003, a position he held for eleven years. He became President in 2016 and assumed the role of Chief Executive Officer on April 1, 2017, becoming the sixth CEO in the bank's history. In January 2022, he was appointed Vice Chairman of the Board. Prior to joining WaFd Bank, he worked as a Manager at Deloitte, starting in 1995. Mr. Beardall holds a Master's degree in Professional Accounting from Brigham Young University and is a Certified Public Accountant. He also completed Stanford University's Executive Program.

Kelli Holz Executive Vice President and Chief Financial Officer

Ms. Holz is a seasoned financial executive with over 35 years of experience in risk management, finance, and accounting. In her role, she leads the bank's finance, human resources, and data governance functions, and provides oversight for WaFd Insurance, a bank subsidiary. She plays a significant role in strategic decision-making and governance processes.

Kim Robison Executive Vice President and Chief Operating Officer

Ms. Robison joined WaFd Bank in 2008 and brings over 35 years of experience to the banking industry. In 2024, she led the operational execution of two significant milestones in U.S. banking history: the largest non-FDIC assisted sale of a CRE portfolio and the fastest bank acquisition close to conversion. She is recognized as the Bank's foremost expert in M&A integration and organizational transformation. Her responsibilities include Information Technology, consumer deposit and treasury operations, consumer and commercial loan operations and servicing, branch physical security, the Bank's ATM and cash recycler fleet, and payment operations.

Cathy Cooper Executive Vice President and Chief Experience Officer

Ms. Cooper serves as an Executive Vice President and is also identified as the Chief Consumer Banker.

Ryan Mauer Executive Vice President and Chief Credit Officer

Mr. Mauer holds the position of Executive Vice President and Chief Credit Officer at WaFd Bank.

1. Interest Rate Risk: WaFd faces significant risks from fluctuating interest rates, which directly impact its net interest income and overall profitability. Rapid changes in interest rates can negatively affect the balance of its loan and deposit portfolios, potentially reducing asset yields or increasing borrowing costs for customers. The company's market risk profile is further influenced by changes in Federal Reserve policies and global economic conditions. Some borrowers are already experiencing stress due to a substantial increase in floating interest rates, which affects their cash flow.
2. Technological Adaptation and Cybersecurity Threats: The company identifies the need to continuously adapt to technological changes and enhance its digital offerings to meet evolving customer demands. There is a risk that investments in technology may not yield the anticipated benefits, and new features can become outdated quickly due to the rapid pace of innovation. Furthermore, cybersecurity threats and fraud, including those leveraging AI technologies, pose significant risks to WaFd's operations and reputation.
3. Credit Risk and Loan Quality: While WaFd has historically maintained a disciplined credit culture and strong loan quality, evidenced by periods of net loan loss recoveries, there are ongoing credit risks. Some borrowers are experiencing financial stress due to higher interest rates, which can pinch their cash flow. Additionally, credit risk associated with commercial real estate (CRE) loans is noted, particularly due to the concentration of principal in these loans. A declining net interest margin also suggests that the loan book is becoming less profitable, indicating potential pressure on future earnings.

The following clear emerging threats have been identified for WaFd (WAFD):

• Rise of Digital-Only Banks and Fintech Lenders: Digital-first neobanks and specialized fintech companies are increasingly offering compelling alternatives for both deposits and loans. These competitors leverage technology to provide superior digital experiences, often lower fees, and competitive interest rates, attracting customers who traditionally relied on regional banks like WaFd. This ongoing shift threatens WaFd's ability to acquire and retain customers by disrupting traditional banking service delivery models.
• Intensified Competition for Deposits: In a dynamic interest rate environment, competition for deposits has significantly intensified. Digital platforms and the ease of online banking make it simple for customers to compare rates and move their funds to institutions offering higher yields, including online-only banks and money market funds. This trend directly pressures WaFd's ability to maintain a stable and low-cost deposit base, which is fundamental to its profitability and lending capacity.

WaFd Bank (symbol: WAFD) operates primarily as a community bank offering a range of financial products and services, predominantly within the U.S. across nine states: Washington, Oregon, Idaho, Utah, Nevada, Arizona, Texas, New Mexico, and California.

The addressable markets for its main products and services in the U.S. are as follows:

• Retail Banking Services (Consumer and Commercial Deposit Accounts): The United States retail banking market is valued at approximately $0.87 trillion in 2025. This market is projected to reach $1.08 trillion by 2030, growing at a compound annual growth rate (CAGR) of 4.22% during 2025-2030.
• Small Business Lending: The estimated total lending volume to small businesses in the U.S. for 2025 is approximately $760 billion.
• Commercial Real Estate (CRE) Lending: The total commercial and multifamily mortgage debt outstanding in the U.S. increased to approximately $4.79 trillion in the fourth quarter of 2024.
• Residential Mortgage Lending: Americans owe an estimated $12.94 trillion on mortgages as of the second quarter of 2025 in the U.S.

Information regarding the specific addressable market size for WaFd's insurance products offered through a subsidiary was not readily available.

Expected Drivers of Future Revenue Growth for WaFd (WAFD)

• Growth in Active Loan Portfolio: WaFd anticipates an 8%-12% growth in its active loan portfolio in fiscal 2026. This expansion in lending activities is a primary driver for increasing net interest income.
• Strategic Shift to Business Banking: The company is undergoing a strategic transition from its historical focus on mortgage lending towards business banking. This pivot has already resulted in a significant increase in new loan originations and is expected to continue to boost revenue as the business banking segment expands.
• Expansion into Wealth Management: WaFd has recently launched WaFd Wealth Management, with an ambitious goal to grow assets under management to $1 billion within the initial two years. This diversification into wealth management services aims to generate new streams of non-interest income.
• Margin Expansion from Future Rate Cuts: The company expects its net interest margin to expand with anticipated future interest rate cuts. This expansion, while potentially occurring with a quarter-long lag for full impact, would improve profitability on its interest-earning assets.
• Increase in Non-Interest-Bearing Deposits: As part of its "Build 2030" strategic plan, WaFd aims to increase non-interest-bearing deposits to 20% of its total deposits. Achieving this goal would reduce the overall cost of funds, thereby enhancing net interest income and supporting revenue growth.

Share Repurchases

• WaFd repurchased 12.7 million shares at a weighted average price of $31.32 over the last three fiscal years (up to March 31, 2024), representing 17% of shares outstanding on October 1, 2020.
• As of May 2024, the board authorized an additional 10 million shares for repurchase, bringing the total authorized amount to 11.8 million shares.
• In the third quarter of fiscal year 2025, the company repurchased over 1.66 million shares.

Share Issuance

• WaFd's basic shares outstanding increased by 26.56% in Q4 2024 and by 15.71% in Q1 2025, aligning with the timing of the Luther Burbank Corporation acquisition in February 2024.

Outbound Investments

• WaFd acquired Luther Burbank Corporation (LBC) in February 2024, which expanded its presence into the California market.
• This acquisition is anticipated to be approximately 8% accretive to WaFd's earnings in fiscal year 2025.

Capital Expenditures

• Annual capital expenditures ranged from $10 million in 2022 to $40 million in 2024.
• Non-interest expense increased in the fourth quarter of fiscal year 2025, partly due to investments in talent and technology.
• The company has invested over $125 million in community development lending, including affordable housing initiatives.