WAFD INC

WAFD INC Annual Report - Plain English Investor Summary

Let’s cut through the noise and see how WAFD Inc. really performed this year – and what it means for your wallet.

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1. The Big Picture

WAFD (your neighborhood bank in the Western U.S.) held steady in 2023 despite economic headwinds. They’re not growing explosively, but they’re not collapsing either. Think of them as the reliable sedan of banking – safe, predictable, but no Tesla acceleration.

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2. By the Numbers

• Revenue: $750 million (↑5% from 2022)
• Profit: $200 million (↓3%) – Higher borrowing costs bit into earnings
• Deposits: $20 billion (↑4%)
• Loans: $15 billion (↑6%)

What’s new:

• Spent $710 million on interest costs (↑3.7%) – a major profit drag
• Mortgage fees crashed to $3.9 million (↓44%) as homebuyers vanished
• Set aside $41.5 million for bad loans (↑435%) – their "oh crap" fund quintupled

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3. Wins vs. Worries

👍 Bright spots:

• Opened 10 new branches in hot markets (Texas, Arizona)
• Digital banking users grew 15% after a $60M tech upgrade
• Kept dividends steady – shareholders get paid

👎 Rough patches:

• Mortgage business slumped (↓44% fees)
• FDIC insurance costs spiked 44% ($28.9M total)
• Employee costs hit $234M (↑5.4%) from hiring

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4. Financial Health Check

• Cash: $2.1 billion reserves (plenty for emergencies)
• Debt: Lower than competitors (not over-leveraged)
• Safety cushion (CET1 ratio): 12% (above regulatory minimum)

Red flag 🚩: That $41.5M for potential loan defaults is 5X last year’s amount. Translation: they’re nervous customers might stop paying.

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5. Competition Check

• Tech spending: 2X higher than big banks (relative to size)
• Loan growth: Beat most regional rivals
• Mortgage rates: Still pricier than credit unions

Verdict: Middle of the pack – not a standout, not a disaster.

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6. Leadership Moves

New CEO Brent Beardall is pushing digital tools and small-business loans, while trimming underperforming branches.

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7. What’s Next?

• Growth: Slow and steady unless the economy tanks
• Opportunity: Lower interest rates in 2024 could revive mortgages
• Expansion: Betting big on Texas/Nevada markets

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Should You Invest?

👍 For:

• Steady dividends
• Conservative debt management
• Growing deposits/loans

👎 Against:

• Rising costs (FDIC fees up 44%, tech spend at $60M)
• Mortgage slump could continue
• That $41.5M "bad loan" fund might balloon

Best for: Investors who want slow-growth stability over flashy returns. Watch their tech investments closely – if the $60M upgrade doesn’t attract younger customers, it’s wasted cash.

Final thought: WAFD feels like a "hold" unless you’re bullish on their Southwest expansion. Not exciting, but unlikely to implode.

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Coffee’s on us if you need help digging deeper! ☕