About Washington Federal Inc

WaFd, Inc. operates as the bank holding company for Washington Federal Bank, a federally insured Washington state chartered commercial bank dba WaFd Bank that provides lending, depository, insurance, and other banking services to consumers, mid-sized to large businesses, and owners and developers of commercial real estate. The business of the company consists primarily of accepting deposits from the general public and investing these funds in loans of various types, including first lien mortgages on single-family dwellings, construction loans, land acquisition and development loans, loans on multi-family, commercial real estate and other income producing properties, home equity loans and business loans. The company also invests in certain United States government and agency obligations and other investments permitted by applicable laws and regulations. The company also engages in insurance brokerage activities. Lending The company's lending activities include commercial and consumer loans. Multi-Family Residential Loans: Multi-family residential (five or more dwelling units) loans generally are secured by multi-family rental properties, such as apartment buildings. In underwriting multi-family residential loans, the company considers a number of factors. Multi-family residential loans are originated in amounts up to 80% of the appraised value of the property securing the loan. Loans secured by multi-family residential real estate generally involve different credit risk than single-family residential loans and carry larger loan balances. Repayment of loans secured by multi-family mortgages typically depends upon the successful operation of the related real estate property. It is the company's policy to obtain title insurance ensuring that it has a valid first lien on the mortgaged real estate serving as collateral for the loan. Commercial and Industrial Loans: The company makes various types of business loans to customers in its market area for working capital, acquiring real estate, equipment or other business purposes, such as acquisitions. The terms of these loans generally range from less than one year to a maximum of ten years. The loans are either negotiated on a fixed-rate basis or carry adjustable interest rates indexed to the LIBOR rate, Secured Overnight Funding Rate (SOFR) rate, Prime Rate or another market rate. Commercial loans are made based upon assessment of the borrower's ability and willingness to repay along with an evaluation of secondary repayment sources, such as the value and marketability of collateral. The company provides a full line of treasury management products to support the depository needs of its clients. Construction Loans: The company originates construction loans to finance construction of single-family and multi-family residences, as well as commercial properties. Loans made to builders are generally tied to an interest rate index and normally have maturities of two years or less or are structured such that they convert to a permanent loan after the completion of construction or stabilization of the property. Loans made to individuals for construction of their home generally are 30-year fixed rate loans. The company's policies provide that for residential construction loans, loans may be made for 85% or less of the construction cost or 80% of the appraised value of the property upon completion. Land Development Loans: The company's land development loans are of a short-term nature and are generally made for 75% or less of the appraised value of the unimproved property. Funds are disbursed periodically at various stages of completion as authorized by the company's personnel. Land development loans involve a higher degree of credit risk than long-term financing on owner-occupied real estate. Permanent Land Loans: The company's permanent land loans (also called consumer lot loans) are generally made on improved and, with the intent of building a primary or secondary residence. These loans are limited to 70% or less of the appraised value of the property, up to a maximum loan amount of $700,000. The interest rate on permanent land loans is generally fixed for 20 years. Single-Family Residential Loans: The company originates 30 year fixed-rate mortgage loans secured by single-family residences. Moreover, it is the company's general policy to include in the documentation evidencing its conventional mortgage loans a due-on-sale clause, which facilitates adjustment of interest rates on such loans when the property securing the loan is sold or transferred. Consumer Loans: The company's non-mortgage consumer loan portfolio consists of prime quality student loans acquired from an independent financial investment firm that retains 1% of each loan, plus various other non-mortgage consumer loans, including personal lines of credit and credit cards. Home Equity Loans: The company extends revolving lines of credit to consumers that are secured by a first or second mortgage on a single-family residence. The interest rate on these loans adjusts monthly indexed to prime. Origination and Purchase of Loans: The company has general authority to lend anywhere in the United States; however, its primary lending areas are within the states of Washington, Oregon, Idaho, Arizona, Utah, Nevada, New Mexico and Texas. Loan originations come from a variety of sources. Residential loan originations result from referrals from real estate brokers, walk-in customers, purchasers of property in connection with builder projects that are financed by the company, mortgage brokers and refinance activity for existing customers. Business purpose loans are obtained primarily by direct solicitation of borrowers and ongoing relationships. The company also purchases loans and mortgage-backed securities when lending rates and mortgage volume for new loan originations in its market area do not fulfill its needs. Investment Activities The company is obligated by its regulators to maintain adequate liquidity and does so by holding cash and cash equivalents and by investing in securities. These investments may include, among other things, certain certificates of deposit, repurchase agreements, bankers' acceptances, loans to financial institutions whose deposits are federally-insured, federal funds, United States government and agency obligations and mortgage-backed securities. Deposits The company relies on a mix of deposit types, including business and personal checking accounts, term certificates of deposit, and other savings deposit alternatives that have no fixed term, such as money market accounts and passbook savings accounts. The company offers several consumer checking account products, both interest bearing and non-interest bearing and three business checking accounts, two of which target small businesses with relatively simple and straightforward banking needs and one for larger, more complex business depositors with an account that prices monthly based on the volume and type of activity. Savings and money market accounts are offered to both businesses and consumers, with interest paid after certain threshold amounts are exceeded. The company's deposits are obtained primarily from residents of Washington, Oregon, Idaho, Arizona, Utah, Nevada, New Mexico, and Texas. Subsidiaries The company is a bank holding company that conducts its primary business through its only directly-owned subsidiary, WaFd Bank. The bank has three active wholly-owned subsidiaries, discussed further below. WAFD Insurance Group, Inc. is incorporated under the laws of the state of Washington and is an insurance agency that offers a full line of individual and business insurance policies to customers of the bank, as well as to the general public. Statewide Mortgage Services Company is incorporated under the laws of the state of Washington and it holds and markets real estate owned. Washington Services, Inc. is incorporated under the laws of the state of Washington. It acts as a trustee under deeds of trust as to which the bank is beneficiary. The company also holds a 33.98% interest in Archway Software, Inc. (Archway) focuses on the business of developing and selling technology and software products and services for financial institutions, including it. Archway was conceived in November 2022 as a joint venture between the company and certain subsidiaries of Madrona Venture Group. Regulation The company is registered as a bank holding company and is subject to regulation, examination, supervision, and reporting requirements of the Board of Governors of the Federal Reserve System. The company is a member of the FDIC and its deposits are insured up to applicable limits of the Depository Insurance Fund (DIF), which is administered by the Federal Deposit Insurance Corporation (FDIC). As a result, the FDIC has certain regulatory and examination authority over the bank. The WDFI and FDIC have extensive authority over the operations of the company. As part of this authority, the company is required to file periodic reports with the Washington State Department of Financial Institutions (WDFI) and FDIC and is subject to periodic examinations by the WDFI and FDIC. As a Washington state chartered commercial bank with branches in the states of Washington, Oregon, Idaho, Utah, Nevada, Arizona, New Mexico and Texas, the bank is subject not only to the applicable laws and regulations of Washington state but is also subject to the applicable laws and regulations of these other states in which it does business. The bank is a member of the Federal Home Loan Bank (FHLB) of Des Moines, which is one of 11 regional FHLBs that provide funding to their members for making home mortgage loans, as well as loans for affordable housing and community development. The company is subject to extensive regulation, supervision and examination by the Washington State Department of Financial Institutions (the WDFI), its primary state regulator, the Consumer Financial Protection Bureau (the CFPB) and the Federal Deposit Insurance Corporation (FDIC), which insures its deposits up to applicable limits. The company, as a bank holding company, is subject to extensive regulation, supervision and examination by the Board of Governors of the Federal Reserve System (Federal Reserve). The regulatory structure gives the regulatory authorities extensive discretion in connection with their supervisory and enforcement activities. Any change in such regulation, whether by the WDFI, the FDIC, the Federal Reserve, the CFPB or the U.S. Congress, could have a significant impact on the company and its operations. History The company was founded in 1917. The company was incorporated in 1994. It was formerly known as Washington Federal, Inc. and changed its name to WaFd, Inc. in September 2023.