WaFd Bank Completes Sale of $2.8 Billion in Multi-Family Loans
21 Junho 2024 - 6:00PM
Business Wire
Washington Federal Bank ("WaFd Bank" or the "Bank"), the wholly
owned subsidiary of WaFd, Inc. (Nasdaq: WAFD) (the "Company"),
today announced the consummation of the sale of approximately $2.8
billion of multifamily commercial real estate loans (“CRE”) to Bank
of America, which in turn is selling the loans to funds managed by
Pacific Investment Management Company LLC (“PIMCO”). To our
knowledge, this represents the largest non-FDIC assisted CRE loan
sale ever. The sale of the multi-family loans was executed at no
loss to WaFd and provides immediate liquidity going forward.
WaFd Bank President and CEO Brent Beardall stated, “This should
prove to the investment community that the sky is not falling when
it comes to CRE loans. These are high quality loans and we believe
the purchase price is reflective of the low amount of credit risk
in the portfolio. Further, this sale was executed at 92-percent of
principal balance. That discount is almost entirely attributable to
changes in interest rates not the quality of these CRE loans. CRE
is a broad category which includes: multifamily, owner occupied,
industrial, hospitality, storage and office. When evaluating CRE
risk it is very important to understand the type of CRE, the
location and sponsor equity.”
Mr. Beardall continued, “These packaged loans all came from
Luther Burbank Savings in the acquisition by WaFd Bank in March of
this year. The sale of CRE loans was not a condition of the merger.
WaFd Bank has previously disclosed this loan sale gives the Bank
several immediate options including the option to either buy down
debt, originate new loans, buyback stock or a combination of all
three.”
Washington Federal Bank, a Washington state-chartered bank with
headquarters in Seattle, Washington, has 210 branches in nine
western states. To find out more about WaFd Bank, please visit our
website www.wafdbank.com. The Company uses its website to
distribute financial and other material information about the
Company.
Important Cautionary
Statements
The foregoing information should be read in conjunction with the
financial statements, notes and other information contained in the
Company’s Annual Report on Form 10-K, Quarterly Reports on Form
10-Q and Current Reports on Form 8-K.
This press release contains statements about the Company’s
future that are not statements of historical or current fact. These
statements are “forward looking statements” for purposes of
applicable securities laws and are based on current information
and/or management's good faith belief as to future events. Words
such as “expects,” “anticipates,” “believes,” “estimates,”
“intends,” “forecasts,” “may,” “potential,” “projects,” and other
similar expressions or future or conditional verbs such as “will,”
“should,” “would,” and “could” are intended to help identify such
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Although the Company
believes any such statements are based on reasonable assumptions,
forward-looking statements should not be read as a guarantee of
future performance, and you are cautioned not to place undue
reliance on any forward-looking statements. The Company undertakes
no obligation to update or revise any forward-looking
statement.
By their nature, forward-looking statements involve inherent
risk and uncertainties including the following risks and
uncertainties, and those risks and uncertainties more fully
discussed under “Risk Factors” in the Company’s September 30, 2023
10-K, and Quarterly Reports on Form 10-Q which could cause actual
performance to differ materially from that anticipated by any
forward-looking statements. In particular, forward-looking
statements are subject to risks and uncertainties related to (i)
fluctuations in interest rate risk and market interest rates,
including the effect on our net interest income and net interest
margin; (ii) current and future economic conditions, including the
effects of declines in the real estate market, high unemployment
rates, inflationary pressures, a potential recession, the monetary
policies of the Federal Reserve, and slowdowns in economic growth;
(iii) risks related to the integration of the operations of Luther
Burbank Corporation; (iv) financial stress on borrowers (consumers
and businesses) as a result of higher interest rates or an
uncertain economic environment; (v) changes in deposit flows or
loan demands; (vi) the impact of bank failures or adverse
developments at other banks and related negative press about
regional banks and the banking industry in general; (vii) the
effects of natural or man-made disasters, calamities, or conflicts,
including terrorist events and pandemics (such as the COVID-19
pandemic) and the resulting governmental and societal responses;
(viii) global economic trends, including developments related to
Ukraine and Russia, and the evolving conflict in Israel and Gaza,
and related negative financial impacts on our borrowers; (ix)
litigation risks resulting in significant expenses, losses and
reputational damage; (x) our ability to identify and address
cyber-security risks, including security breaches, “denial of
service attacks,” “hacking” and identity theft; and (xi) other
economic, competitive, governmental, regulatory, and technological
factors affecting our operations, pricing, products and
services.
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version on businesswire.com: https://www.businesswire.com/news/home/20240621636804/en/
Brad Goode WaFd, Inc. 425 Pike Street, Seattle, WA 98101
Brad.Goode@wfd.com (206) 626-8178
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