Investor Presentaiton
Why is WAFD Comfortable Buying an $8 billion CA Bank Heading into a Potential
Recession?
After thorough due diligence, we believe the Luther Burbank loan portfolio is pristine and the yields are
reflective of the low risk
Markets:
Multifamily Residential Loans
High barrier to entry for new development; little land to develop
Limited supply of new housing
High variance between cost to own and rent
Deals:
Stabilized and seasoned assets
Older, smaller properties with rents at/below market levels,
catering to lower and middle income renters
Sponsors:
➤ Experienced real estate professionals who desire regular
income/cash flow streams and are focused on building wealth
steadily over time
Occupancy Types:
Single Family Residential Loans
➤ Both owner-occupied and investor owned
Broker Network:
➤ Primarily third party mortgage brokers
Organizations:
Portfolio lender
➤ Purchase and refinance transactions
Underwriting Focus:
Debt ratios
Loan to value
Credit scores
Borrower's liquidity and cash reserves
Multifamily Portfolio Highlights
1.7 million average loan balance
13.7 average units
57% average loan to value ratio
1.50x average debt service coverage ratio
L
Single Family Portfolio Highlights
$903 thousand average loan balance
64% average loan to value ratio
759 average credit score
0.05% NPAs/Assets
0.06% NPLs/Loans
Note: Loan highlights and financial data per LBC's Investor Presentation for the quarter ended 9/30/2022.
WaFd Bank
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