Curious about Washington Federal net worth and its financial performance? We’ll dive into its assets, liabilities, and loan portfolio, showing you how this bank stacks up in 2024.
Let Ando Money guide you through the numbers and key details that impact its net worth.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | WaFd Bank |
| Full Name | Washington Federal Bank |
| Traded as | NASDAQ: WAFD |
| ISIN | US9388241096 |
| Founded | 1917 |
| Founders | N/A |
| Country/Territory | United States |
| Headquarters | Seattle, Washington |
| Chief Executive Officer | Brent Beardall |
| Number of Employees | 2,029 |
| Market Cap | 2.86 billion USD |
| Total Assets | 28.6 billion USD |
| Total Equity | 3.0 billion USD |
| Revenue | 391.9 million USD (Interest Income, 2024) |
| Net Income | 64.6 million USD (June 2024) |
What is the Net Worth/Market Cap Of Washington Federal in 2024?
As of 2024, Washington Federal boasts a market capitalization of 2.86 billion USD. This valuation underscores the bank’s steady growth and robust financial management.
When compared to other financial institutions in the industry, WaFd holds a solid position, although it’s relatively smaller compared to the largest banks globally.
Yet, its strategic investments and consistent profitability make it a notable player in the Pacific Northwest and beyond.
Here are a few other banks in the industry related to Washington Federal:
- JPMorgan Chase
- Wells Fargo
- Bank of America
- Citibank
- U.S. Bank
- PNC Financial Services
- First Republic Bank
For a detailed look at some of the largest financial institutions, visit our page on the biggest banks in the world.
Financial Performance Overview
Breakdown of Assets and Liabilities
Washington Federal maintains a strong balance sheet with total assets amounting to 28.6 billion USD as of June 2024.
The asset base primarily consists of loans held for investment, which totaled 20.9 billion USD. The loan portfolio is diverse, covering multifamily properties, commercial real estate, and consumer loans, providing a robust foundation for income generation.
On the liabilities side, total deposits reached 21.2 billion USD, underscoring WaFd’s ability to attract and retain a diverse depositor base.
Liabilities are balanced against stockholder equity, which totals 3.0 billion USD, ensuring long-term financial stability.
This careful management of both assets and liabilities contributes significantly to the bank’s net worth and overall financial health.
Impact of Mergers and Acquisitions on Growth
A notable highlight in WaFd’s recent history is its merger with Luther Burbank, which became effective in March 2024.
The merger brought an additional 6.2 billion USD in loans and 5.6 billion USD in customer accounts. This acquisition had a direct impact on WaFd’s total assets, boosting them to over 30 billion USD by the end of the fiscal year.
The merger contributed 105 million USD in goodwill, a positive reflection of WaFd’s strategy to enhance its footprint in high-growth regions while adding new revenue streams.
The transaction also ensured that the bank remains well-capitalized and positioned for future expansion.
Loan Portfolio and Revenue Generation
WaFd’s loan portfolio plays a critical role in revenue generation. As of June 2024, the portfolio stands at 20.9 billion USD, with a focus on commercial loans, which now make up 73% of new originations.
This shift towards commercial lending from a historical focus on residential loans has allowed the bank to capture higher interest rates and improve overall profitability.
Despite rising interest rates slowing down originations, WaFd has maintained loan growth, largely through funding construction loans previously originated.
This diversified loan portfolio, including real estate and construction loans, contributes significantly to the bank’s interest income, which rose to 391.9 million USD for the period ending June 2024.
Deposits and Interest Income
Customer deposits are the foundation of WaFd’s interest income, with a total of 21.2 billion USD in deposits recorded.
The bank has been shifting its deposit base toward more favorable transaction accounts such as checking accounts, which now make up 33% of all deposits.
This shift has contributed to WaFd’s ability to weather the impact of rising interest rates, as it relies more on lower-cost deposits for lending purposes.
The bank’s ability to manage interest rate risks effectively is reflected in its net interest income, which increased by 5% year-over-year.
Despite the competitive environment, WaFd’s deposit base remains stable, and the bank has managed to grow its core deposits, further strengthening its position in the market.
Investment Strategy
Washington Federal’s investment strategy also plays a key role in its financial performance. The bank holds a high-quality securities portfolio worth 5.4 billion USD, which includes a mix of U.S. government-backed securities and high-quality bonds.
The investment portfolio represents 19% of total assets, ensuring the bank maintains ample liquidity while generating steady returns from its investments.
The investment portfolio’s yield, currently at 4.61%, contributes to WaFd’s overall profitability, offering a balance between risk and return.
The focus on low-risk securities demonstrates WaFd’s cautious approach in safeguarding its assets while maintaining profitability.
Operational Efficiency and Credit Quality
Operationally, WaFd has maintained a competitive efficiency ratio of 56.6%, a slight increase post-merger due to associated costs.
However, adjusted figures show the bank’s core operations remain efficient, ensuring that revenue growth continues to outpace expense increases.
Credit quality is another pillar of WaFd’s success. As of June 2024, non-performing assets amounted to just 0.24% of total assets, one of the lowest ratios in the industry.
The bank’s conservative lending practices and robust Allowance for Credit Losses (ACL), which stands at 204 million USD, ensure it is well-prepared for any future economic downturns.
This focus on strong credit quality has allowed the bank to minimize loan charge-offs, further boosting its financial performance.
FAQs about WaFd Bank
What is the history of the WaFd Bank?
The bank was founded in 1917 and went public in 1982. It operates across nine Western states and is one of the largest commercial banks in the Pacific Northwest.
Who is the CEO of the WaFd Bank?
It is led by Brent Beardall, who became CEO in 2017 and has been with the bank since 2001.
How many branches does it have?
It operates 210 branches across nine states, offering a variety of consumer and commercial banking services.
What types of services does WaFd Bank offer?
The bank provides full-service consumer and commercial banking. This includes personal banking, business loans, mortgages, and investment services.
How does it manage credit risk?
It manages credit risk with strong lending practices and a solid Allowance for Credit Losses of 204 million USD. Non-performing assets represent only 0.24% of total assets.
What is its loan portfolio?
The loan portfolio totals 20.9 billion USD and includes commercial real estate loans, multifamily loans, and consumer loans, with a focus on commercial loans.
What is its approach to operational efficiency?
The bank maintains an efficiency ratio of 56.6%, showing a focus on cost-effective operations and steady growth.
Does WaFd Bank pay dividends?
Yes, it has paid cash dividends for 165 consecutive quarters, reflecting a strong commitment to shareholder value.
Conclusion
Washington Federal’s strong financial standing shows its careful asset management and strategic growth.
Want to dive deeper? Check out more articles on andomoney.com and explore how major banks in the US compare. Leave a comment, share your thoughts, or explore more content on our website!
