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‐looking statements in this presentation speak only as of the date of the presentation, and Washington Federal assumes no duty, and does not undertake, to update them. Actual results or future events could differ, possibly materially, from those that we anticipated in these forward‐looking statements. 1 Investor Presentation As of December 31, 2024
Overview of WaFd Bank 2 • 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 states • Full‐service consumer & commercial bank • Strong capital, high asset quality, consistent results • Portfolio mortgage lender • Profitable every year since 1965 • Interest rate risk management – well controlled • 167 consecutive quarterly cash dividends • 14,561% Total shareholder return since IPO Adjusted Efficiency Ratio 60.4% Efficiency Ratio 65.04% Stockholder Equity $3.0Bn Total Deposits $21.4Bn Total Loans HFI $21.1Bn Total Assets $27.7Bn 1 As of or for the quarter‐ended 12/31/2024 Overview Geographic Overview Company Highlights1 2
WaFd Bank Executive Management Committee 3 Kelli Holz SEVP Chief Financial Officer Brent Beardall President and Chief Executive Officer 3 Ryan Mauer EVP Chief Credit Officer Cathy Cooper EEVP Chief Experience Officer Kim Robison EVP Chief Operating Officer
4 WaFd Bank Demographics Our markets are among the most desirable in the US and create a foundation for loan growth without excessive risk State Number of Branches Company Deposits in Market ($000) Deposit Market Share (%) Percent of National Franchise (%) Total Population 2025 (Actual) Population Change 2020‐2025 (%) Projected Population Change 2025‐2030 (%) Median HH Income 2025 ($) Projected HH Income Change 2025‐2030 (%) Washington 73 8,589,398 3.95 40.1 7,876,848 2.23 2.87 96,120 10.09 California 10 4,211,964 0.27 19.6 38,870,482 (1.69) (0.27) 95,065 7.65 Oregon 36 2,704,966 2.73 12.6 4,232,181 (0.12) 0.53 80,356 9.15 Arizona 28 1,628,742 0.76 7.6 7,560,739 5.72 4.40 78,786 11.67 New Mexico 19 1,568,788 3.65 7.3 2,117,805 0.01 0.89 64,393 8.62 Idaho 22 946,554 2.53 4.4 2,015,909 9.61 6.54 77,609 12.30 Utah 9 573,469 0.45 2.7 3,484,888 6.52 4.92 95,601 13.03 Nevada 8 531,383 0.53 2.5 3,234,542 4.18 3.42 74,821 8.01 Texas 5 683,513 0.03 3.2 31,245,372 7.20 5.64 76,585 10.10 Totals: 210 21,438,777 100 100,638,766 Weighted Average 1.75 2.13 88,495 9.58 Aggregate: National 337,643,652 1.87 2.40 78,770 8.82 Deposit market share and percent of national franchise are from the FDIC's Summary of Deposit reports and is as of 09/30/2024. All other data is as of 12/31/2024.
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 the business by delivering credit and treasury solutions that allow our clients to prosper. Build 2030 5
Evolution of Our Franchise Thrift Consumer deposits and home loans. Commercial Add systems and expertise to bank businesses Serving Businesses Concierge level service for all clients –serving businesses wholistically alongside consumers, both in‐person and digitally 1917‐2007 Build 2030 6 15 years of investment in our evolution to a commercial bank 6 Digital Focus Evolve from analog to digital delivery channels
4 6 7 19 31 52 55 Net Promoter Score Approaching World Class 7 Our investments in customer service, usability and technology are translating into high customer satisfaction levels Source: CustomerGauge.com and Comparably.com WaFdaa Net Promoter Score 1 17 34 48 51 48 44 57 55 2017 2018 2019 2020 2021 2022 2023 2024 Peer Net Promoter Score 1 1 2024 Financial Services Banking Benchmarks A Score of 70 or higher is considered world class. A Score of 50 or higher is considered excellent. A score of 30 or higher is considered very good. A score of 0‐30 is considered good 7
Web Traffic to Wafdbank.com 8 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
9 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 ESG & Diversity Policy Highlights Our Corporate Social and Environmental Responsibility Policy flows from WaFd Bank’s core principles, which are: To provide common‐ sense banking that helps neighborhoods flourish Adhere to the primary corporate value of integrity Exercise prudent risk management Maintain transparency in its business practices Resolve to create long‐term value for all stakeholders 1 2 3 4 5 Community Development Over $125 million dollars invested towards community development lending including and affordable housing investments Washington Federal Foundation The Washington Federal Foundation awarded 242 grants to local community organizations totaling over $1.1 million for the fiscal year Volunteerism WaFd employees participated in 11,870 volunteer hours in support of 755 community organizations and initiatives United Way Matching Campaign WaFd Bank matches employee contributions made to United Way agencies in all nine states. In fiscal year 2024 pledges from colleagues were $375,525. WaFdmatched $375,495 and $750,000 matched by FHLB for a total of $1,501,020 MaleFemaleGender Identity 92Directors Demographic Background 2African American or Black 11Hispanic or Latinx 1Asian 51White
10 5 Year Change by Percentage in Each Geographical Area 1 From September 30, 2019, to December 31, 2024 1 Wafd entered the California market with the LBC merger 3/1/24. 5 Year percentage change in Loans by Geographical Area 5 Year percentage change in Deposits by Geographical Area
11 Loan and Deposit Balances by Geographical Area As of December 31, 2024 $ In Millions
12 Loan Growth – Through Different Interest Rate Environments • Although originations have slowed, they are keeping up with repayments largely through funding of construction loans previously originated. • Mortgage and Consumer loans currently make up 42% of total net loans compared to 74% in 2014 as a result in the origination trend noted at left Loan GrowthNew Loan Originations $ in millions. • Originations overall are reduced due to both rising interest rates and an intentional slowing to temper growth • Commercial loans make up a greater portion of all originations over time, making up 73% of all originations in 2024 compared to 49% in 2014
Non‐Performing Assets Near Record Lows 13 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 3.22% 2.76% 2.18% 1.63% 1.00% 0.88% 0.48% 0.46% 0.44% 0.27% 0.20% 0.22% 0.21% 0.26% 0.28% 0.29% 1.79% 1.85% 1.69% 1.47% 1.36% 1.15% 1.13% 1.12% 1.11% 1.09% 1.29% 1.22% 1.06% 1.01% 1.01% 1.00% FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Q1 2025 Non‐Performing Assets to Total Assets ACL to Total Loans Non‐Performing Assets to Total Assets and ACL to Total Loans 1 1 ACL to Total Loans does not include ACL related to unfunded commitments of $20.5 million. 2 Effective October 1, 2020, the Company implemented FASB’s Current Expected Credit Loss (CECL) Standard 2
0.27% 0.44% WAFD Peer Average Strong Credit Quality 14 2.08% 1.21% 0.91% 0.24% (0.19%) (0.06%) (0.14%) (0.10%) (0.03%) (0.02%) 0.26% 0.01% Net Loan Charge‐offs (recoveries) Average NCOs Per Year – Last 20 Years Source: S&P Global, Company Filings 1 Peers represent Proxy Peers as specified in the Company’s latest Proxy Statement (1) 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 result of one large charge‐off rather than a more widespread issue within the overall portfolio. Charge‐off and recovery activity was minimal in FY 2024.
Net Loan Portfolio Average Current LTV 15 As of December 31, 2024 $ In Thousands Net Balance % of Loans WTD Avg Current LTV % Delinquent 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% 0.00% CRE Construction ‐ Other 501,819 2% 42% 0.90% C&I 2,343,246 11% NA 0.10% SFR 8,320,765 40% 38% 0.36% SFR Custom Construction 154,495 1% 50% 0.55% Other 592,165 3% NA 0.52% 21,060,501$ 100% 0.31%
Other CRE Property Types as % of Total Net Loans 16 As of December 31, 2024
Significant Liquidity and High‐Quality Securities Portfolio 17 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 Total Cash and Securities: $4.8Bn Cash and Securities / Total Assets: 17% Cash & Securities / Total Assets1 US Govt Backed, 34% Cash, 44% High Quality Bonds, 22% As of 12/31/2024, WAFD maintains over $5.3bn of balance sheet Liquidity. • Cash and Securities is 19% of assets • Investment Portfolio targets low credit risk / moderate duration • 76% Cash and US Government‐backed Agency Bonds and MBS • Current Yield on Cash and Investments Portfolio is 4.53% Liquidity is tested quarterly through utilizing various scenarios to determine their affect on available liquidity. Whether minor or extreme, these tests show strong liquidity as a result of deposits and borrowing capacity from reliable collateralized sources. Source: SNL Financial, Company Filings 1 Peers represent Banks similar to WaFd in size, geography and operations Total Cash and Securities: $3.6Bn Cash and Securities / Total Assets: 16% Dec 31, 2023 Dec 31, 2024
Investment Portfolio 18 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 1,600,089$ (56,089)$ 5.32 4.30% Agency and Student Loan Bonds 840,975 1,149 13.6 5.60% Corporate Bonds 267,873 (13,425) 4.6 4.40% Municipal Bonds 34,794 (671) 10.5 5.20% 2,743,731$ (69,036)$ Hedges Gain/Loss WAL Borrowing Cash Flow Hedges 138,870$
Highly Diversified Deposit Base ‐ % of Deposits by Industry 19 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.
20 Deposit Trends Shifting away from time deposits in favor of transaction accounts. Checking accounts now make up 33% of all deposits
21 Deposit Flows *(Balances $ in thousands) • Deposit balances increased in FY24 as a result of the LBC merger. The merger added $3.7 billion in time deposits and $1.9 billion in transaction accounts. • 75% of deposits are collateralized or insured. Overall changes by quarter and balances by type Customer Deposit Accounts 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 Checking ‐ Noninterest Bearing 3 ,269 ,773 3,266,734 3,070,895 2,856 ,165 2,729 ,888 2,604,281 2,482,010 2,514 ,310 2,500,467 2,489 ,394 Checking ‐ Interest Bearing 3 ,472 ,402 3,497,795 3,971,814 4,125 ,554 4,124 ,463 4,084,933 4,579,413 4,481 ,465 4,486,444 4,554 ,922 Savings 1 ,069 ,801 1,059,093 1,002,034 943,915 817,547 777,204 771,260 733,973 718,560 714,755 Money Market 4 ,856 ,275 4,867,905 4,503,090 3,954 ,709 3,358 ,603 3,191,646 4,506,179 4,199 ,257 4,111,714 4,094 ,788 CDs 3 ,297 ,369 3,338,043 3,412,203 3,980 ,605 4,863 ,849 5,380,723 9,000,911 9,255 ,760 9,556,785 9,584 ,918 Total 15 ,965 ,620 16,029,570 15,960,035 15,860 ,948 16,120 ,424 16,038,787 21,339,773 21,184 ,765 21,373,970 21,438 ,777 Quarter % Change ‐2.6% 0.4% ‐0.4% ‐0.6% 1.6% 1.1% 33.1% ‐0.7% 0.9% 0.3% Quarter $ Change (425 ,028) 63,950 (69,534) (99 ,088) 259,477 177,839 5,300,986 (155 ,008) 189,205 64,807 Uninsured & Uncollateral ized Deposits 4 ,856 ,149 4,876,840 4,238,629 4,033 ,174 4,124 ,355 4,182,289 5,436,402 5,238 ,217 5,134,192 5,317 ,511 % of Total Deposits 30.4% 30.4% 26.6% 25.4% 25.6% 26.1% 25.5% 24.7% 24.0% 24.8%
Borrowings and Debt Outstanding & Weighted Rate 22 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. Increase in borrowings for 2020 was from locking in $1 billion of funding at a fixed rate of 66 bps for 10 years. More recent increases served to ensure sufficient balance sheet liquidity. Effective Maturity Schedule Amount $ million Rate Within 1 year: $1,850 4.84% 1 to 3 years: $ 194 3.14% 3 to 5 years: $ 18 0.00 % 5+ years: $ 851 1.15%
Cost of Deposits in the Rising Rate Environment 23
AOCI vs our Peers 24
25 Income Statement Comparison 25 $ In thousands 12/31/2024 12/31/2023 $ Change % Change INTEREST INCOME Loans.............................................................................................. 286,597$ 245,792$ 40,805$ 17% Mortgage‐backed securities.......................................................... 18,337 11,266 7,071 63% Investment securities and cash equivalents.................................. 40,183 29,788 10,395 35% 345,117 286,846 58,271 20% INTEREST EXPENSE Customer accounts......................................................................... 162,150 96,671 65,479 68% FHLB advances and other borrowings............................................ 27,536 37,938 (10,402) ‐27% 189,686 134,609 55,077 41% NET INTEREST INCOME ............................................................... 155,431 152,237 3,194 2.1% Provision (release) for credit losses.............................................. 0 0 0 Net interest income after provision(reversal)........................... 155,431$ 152,237$ 3,194$ 2.1% Three Months Ended,
26 Income Statement Comparison Efficiency Ratio of 65.0% for the quarter ending 12/31/2024 up from 58.02% for the quarter ending 12/31/2023 as a result of restructuring costs recognized in the current quarter. Effective tax rate for the quarter ending 12/31/2024 is 21.55% compared to 18.46% for the quarter ending 12/31/2023. In thousands 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...................................................................................... 10,788 9,371 1,417 15.1% FDIC insurance............................................................................... 4,850 6,570 (1,720) ‐26.2% Product delivery.............................................................................. 5,785 6,009 (224) ‐3.7% Information technology.................................................................. 14,192 12,866 1,326 10.3% Other expense................................................................................ 15,769 11,883 3,886 32.7% 111,311 96,540 14,771 15.3% Gain (loss) on REO......................................................................... 429 1,826 (1,397) ‐77% Income before income taxes.......................................................... 60,251 71,690 (11,439) ‐16.0% Income taxes.................................................................................. 12,984 13,237 (253) ‐1.9% NET INCOME.................................................................................. 47,267$ 58,453$ (11,186)$ ‐19.1% Dividends on preferred stock......................................................... 3,656 3,656 0 Net Income available to common shareholders........................ 43,611$ 54,797$ (11,186)$ ‐20.4% Three Months Ended,
27 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) after +200bps shock is 28.4% lower ($848mm) and at $2.135 billion would be 8.52% of total assets NPV after ‐200bps shock is 16.8% higher ($501 mm) and at $3.485 billion would be 12.6% of total assets.
28 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 $16 million.
Non‐Interest Income 29 Diverse sources of Non‐Interest Income provide steady growth and balance our revenue profile Non‐Interest Income for Quarter‐Ended 12/31/2024 Non‐Interest Income Over Time ($MM) Non‐Interest Income / Total Loan Revenue Other Income includes: • BOLI income • Rental income • Gains on property sales • WAFD Insurance Income • Income on equity method investments Loan Fees 8.6% Deposit Fees 46.5% Other Income 44.9% 11% 9% 11% 16% 12% 10% 6% 5% FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 $4.3 $3.8 $3.9 $7.3 $6.9 $7.2 $3.9 2.7 $22.6 $25.9 $24.9 $23.7 $24.7 $25.9 $26.1 $27.5 $23.2 $14.7 $23.3 $24.1 $28.6 $33.2 $23.1 $29.9 $10.1 $30.7 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Loan Fees Deposit Fees Other Income Gain on Sale of Investments Gain on Sale of Buildings
30 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 expenses. If removed, the adjusted efficiency ratio for 2024 would be 57.5%. See additional details for ‘other’ expenses within Other Non‐Interest Expense on the next page.
31 Breakout of Non‐Interest Expense Non‐Interest Expense includes: • FDIC Premiums • Product Delivery • Information Technology • ‘Other expense’ line‐item include professional services, marketing and administrative costs. Expenses in millions
32 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
Net Income Stock Buyback & Dividends Percent of Income returned to Shareholders 2016 $164,049 $137,808 84% 2017 $173,532 $172,892 100% 2018 $203,850 $220,246 108% 2019 $210,256 $187,163 89% 2020 $173,438 $178,629 103% 2021 $173,581 $414,527 239% * 2022 $221,705 $64,837 29% 2023 $242,801 $94,255 39% 2024 $185,416 $101,355 55% * Preferred stock issuance proceeds were used to repurchase 8 million shares Returning Capital to Shareholders Recent Capital Activities • Current cash dividend of $0.26 provides a yield of 3.42% based on the current stock price (Feb 5th) • 1,070,207 shares were repurchased in fiscal 2024 with a weighted price of $25.29 • Since 2013, 49 million shares repurchased which is 46% of total outstanding shares as of 9/30/2012 • During the fiscal year the Board of Directors authorized an additional 10 million shares for repurchase. • 11.5 million shares remain in buyback authorization 33 Common Dividend as a % of Net Income 42.9% 27.5% 30.1% 38.3% 38.0% 27.8% 26.3% 40.1% 2017 2018 2019 2020 2021 2022 2023 2024 Return of Income to Common Shareholders Share Repurchases # of Shares Wtd Price Paid % Outstanding at beginning of the year 2016 3,867,563 $22.72 4% 2017 3,137,178 $31.36 3% 2018 4,865,357 $33.74 6% 2019 4,065,352 $30.46 5% 2020 3,339,530 $33.58 4% 2021 10,810,113 $32.25 14% 2022 92,774 $35.14 0.1% 2023 1,165,161 $26.14 2% 2024 1,070,207 $25.29 1.6%
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 Stock Price & Book Value Per Share 34
Managing Capital Text Text Text Tex 35 Perspective through the last Credit Cycle
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‐looking statements in this presentation speak only as of the date of the presentation, and Washington Federal assumes no duty, and does not undertake, to update them. Actual results or future events could differ, possibly materially, from those that we anticipated in these forward‐looking statements.
