Investor Presentaiton
Transaction Summary
Transaction
• Washington Federal, Inc. (WAFD) will acquire 100% of Luther Burbank Corporation's (LBC) outstanding common stock
Consideration Mix
• 100% Stock (1)
Fixed Exchange Ratio
• 0.3353 shares of WAFD common stock per share
Per Share Merger
Consideration
• $12.79 total consideration per share of LBC common stock, based on WAFD's closing price on November 11, 2022
Merger Consideration
$654 million
•
Price/TBVPS: 0.97x
•
Price/2023e EPS (3): 14.8x
Implied Metrics(2)
•
•
Pro Forma Ownership
Price/2024e EPS (3): 15.4x
• Pay-to-Trade Ratio: 0.65x
• Core Deposit Premium: (0.5)%
• WAFD: 79.2% / LBC: 20.8%
Board of Directors
Timing & Approval
WAFD to expand the size of its Board of Directors by two directors; pro forma board of 12 members
• WAFD and LBC shareholder approval
Customary regulatory approvals
Anticipated to close as early as the second calendar quarter of 2023
(1)
Includes 51,155,830 LBC common shares at close.
(2)
(3)
Based on WAFD closing price of $38.15 as of 11/11/2022.
Price/earnings multiples based on fiscal year ending September 30.
WaFd Bank
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