Investor Presentaiton
Creating a Leading Western U.S. Franchise...
Washington Federal, Inc. (NASDAQ: WAFD) upon closing will enter into desirable and fast-growing California metro markets by merging with Luther
Burbank Corporation (NASDAQ: LBC), the bank holding company of Luther Burbank Savings, a community bank headquartered in Santa Rosa, California
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Luther Burbank is a $7.9 billion asset bank, operating in California, Washington, and Oregon through its 11 full service branches and 7 LPOS
Top 25 multifamily originator in the US with $1.3 billion in multifamily loan originations in 2021
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The majority of Luther Burbank's multifamily loans are in low- and moderate-income communities, and WAFD intends to continue the
commitment to serve these communities
Luther Burbank has an “Outstanding" Community Reinvestment Act rating from the FDIC
Excellent credit quality that has weathered numerous economic cycles in its 39 year history while simultaneously maintaining profitability
Efficient operating platform with a 34% efficiency ratio (1) and 0.80% noninterest expense / average assets for the quarter ended 9/30/2022
Pricing metrics, deal structure, and conservative assumptions are reflective of WAFD's disciplined approach
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Immediately accretive to tangible book value per share, CET1 capital ratio and forward estimated earnings per share
Margin expansion opportunities by reducing reliance on high-cost deposits and wholesale borrowing (not factored into the model)
Revenue synergy opportunities by enhancing product offerings (i.e. Treasury Management) and lending limits to current customers (not factored
into the model)
Combined company's goal will be to accelerate Luther Burbank's migration towards a commercial bank balance sheet and a neutral interest rate
risk profile over time
WAFD is focused on long-term value creation, and believes this is a unique opportunity to purchase a high-quality balance sheet
(1)
See LBC's Form 8K filed with the SEC on October 25, 2022 for the non-GAAP reconciliation of this measure.
WaFd Bank
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