From our President and CEO
As we reflect on the past fiscal year, I am proud to share with you the progress, challenges, and achievements that have defined WaFd, Inc. in 2025. Our commitment to serving our customers, strengthening our communities, and delivering value to our shareholders remains as strong as ever.
Financial Performance and Growth
This year, WaFd, Inc. continued to demonstrate resilience and adaptability in a dynamic economic environment. Despite market volatility, decreasing short-term interest rates and ongoing changes in regulatory requirements, we delivered consistent financial results. Net Income increased 12% year-over-year from $200 million to $225 million, asset quality remained strong, capital increased, and we managed the bank within our board approved risk thresholds. These results do not fully reflect the significant changes we are methodically implementing in our balance sheet. For example, total loans receivable decreased just 4.0% even though we stopped making mortgage loans in January, eliminating new originations within our largest asset segment--single family residential loans. Also, during the year we saw our time deposits decrease by $426 million, or 4.5%, but were able to grow total deposits slightly. Lastly, we grew our investments by 39% during the year, an increase of $1.2 billion. Our balance sheet priorities are straightforward: more variable-rate commercial loans, more low-cost deposits, and more highly liquid, high-quality investments. Given the economic uncertainties, including interest rates, tariffs, and geo-political risks, we made solid progress toward our aim to provide maximum flexibility within our balance sheet while still earning a reasonable return for our shareholders.
Strategic Initiatives
We advanced several key initiatives aimed at positioning WaFd, Inc. for long-term success. As I mentioned above, after careful deliberation, we decided to exit the mortgage origination business, ceasing new loan originations of single-family mortgages. This was done for multiple reasons, the most important being the U.S. government's role in making mortgage lending a commodity. We had to accept that our customers could effectively get a subsidized mortgage rate from our competitors at a lower cost than getting the loan from WaFd. We believe doing what is best for our customers will ultimately be what’s best for the bank. Technology also plays a role in commoditizing lending. For many years, consumers looked to their local banker to help them with their home lending needs, but with the incredible technology that is prevalent today, it is literally as easy as spending five minutes on your phone to apply for a mortgage. Our thesis is that generative AI is only going to accelerate this trend and further squeeze profit margins for originators. Exiting mortgage lending gave us an opportunity to redirect our focus on launching a robust small business suite of products, including SBA (Small Business Administration) lending. We recognize that business owners need the assistance of a banker to help ramp up their operations. We believe our focus on being the bank “built for business” will drive long-term value for both our clients and shareholders. Our continued investment in digital banking platforms and automation has improved the customer experience and enhanced operational efficiency. We strategically expanded our team of business bankers in core markets, added or relocated branches, and invested time to deepen our relationships with local businesses and families. These efforts are central to our strategy of growing responsibly while maintaining the highest standards of service.
Commitment to Our Customers and Communities
At the heart of WaFd, Inc. is our dedication to making a positive impact in the communities we serve. Dear Shareholders, I want to share an experience that exemplifies why we believe “everyone deserves a banker”. A long-term, elderly client came into her branch, where she was greeted by two WaFd bankers--both with over thirty years of experience. Our bankers noticed right away that something was off. After asking how she was doing and largely being dismissed about their concerns, the client said, “I just want to wire out the money.” This was unusual, and our caring bankers pressed as to why. The client became more agitated, at which point our bankers insisted, “Something is wrong and we are concerned.” The client said again, “Nothing is wrong just send out the wire.” Our bankers were bold enough to demand to see the client’s phone, and after the client finally acquiesced, saw that sure enough, there were bad actors on phone that had compromised her personal computer and were now extorting our client. Our bankers picked up the phone and told the extortionists that they were WaFd Bank employees, that our customer is now safe and that they were calling the FBI. As CEO, I could not be more proud. That is caring. That is knowing your client and making a difference. Technology is a beautiful thing, but it will never be a substitute for a fellow human being who knows you and cares. This year, we increased our support for affordable housing, small business lending, and financial literacy programs. Our employees volunteered thousands of hours, and our philanthropic contributions helped address critical needs in education, healthcare, and social services.
Risk Management and Governance
Strong governance and risk management remain foundational to our approach. We continually monitor and adjust our practices to ensure compliance with evolving regulations and to safeguard our customers' assets. Our Board of Directors and executive team are committed to transparency and accountability in all aspects of our operations.
Looking Ahead
As we look to the future, we remain focused on innovation, operational excellence, and profitable growth. We are investing in emerging technologies to better serve our clients, reduce fraud, attract top talent, and adapt to changing market demands. Our vision is to be the bank of choice in every community we serve, offering people, products and services that empower our customers to achieve their financial goals.
Gratitude and Appreciation
I want to thank our employees for their hard work and dedication, our customers for their trust and loyalty, and you, our shareholders, for your continued support. Together, we are building a stronger WaFd, Inc. and laying the foundation for many years of success.
Respectfully,
Brent Beardall
President & Chief Executive Officer
Financial Literacy
We believe in providing people with financial education programs that make their lives better. Financial education can help foster stability for individuals, families and entire communities; the more people know about money management, the more likely they are to improve and maintain their financial well-being.
WaFd invests in the following literacy programs
Save at School program
Our Save at Schools program helps middle and elementary school students learn the habit of saving by making deposits during our “bank days.” We match the initial $5 opening deposit and students can earn 5% on their first $100 deposit. Email ask@wafd.com to launch a Save at Schools program in your area.
Junior Achievement
We aspire to help young people succeed and positively impact the communities we serve. That's why we partner with Junior Achievement to provide financial support and employee volunteers to help youth learn financial wellness and build the skills they need to launch successful futures.
Financial Literacy
We partner with Banzai, an award-winning, interactive financial content platform to provide free financial literacy and education to Title One schools across out nine-state footprint. We help all ages from 8 to 88 learn to create a budget, get out of debt, buy a home, save for college, learn about inflation, save for retirement, build credit, navigate online security and more! We also offer Banzai to our non-profit partners through the WaFd Bank Foundation ensuring the communities we support have the tools they need for a brighter future. If your school or non-profit is looking to include this curriculum in your organization, please contact us!
Community Development
We recognize the impact of our activities on the lives of people around us. We are continuously committed to serving our communities, clients, and employees. Throughout our history, we have focused on giving back to our communities and have developed a variety of programs to help make a difference in the lives of those around us.
In Housing and Community Development
In 2024 we boosted community development lending to $121.2 million with $72.9 million invested in affordable housing.
Through a renewed focus on community lending, we hired a Community Lending Officer who committed to building relationships with affordable housing organizations such as Habitat for Humanity and Community Land Trust Organizations. Through these efforts we are purchasing loans (a total of over $20M) from Habitat for Humanity and affiliates through funds from the Federal Home Loan Bank. This direct injection of capital will help fund future development of affordable housing opportunities in those communities.
In 2023, WaFd invested over $76 million in community development loans. Of this, over $49 million was invested toward affordable housing across our nine state footprint.
2022, WaFd Bank devoted $203,425,455 toward community development lending. In addition, $102,100,000 in housing tax credits were provided along with $61,800,000 in investments made to other affordable housing projects, totaling $367,325,455.
In 2021, over $289,000,000 was invested toward community development lending and affordable housing investments. This resulted in 47 loans totaling $165,000,000 to support affordable home ownership for low-income borrowers within our nine states.
In 2020 we created the Small Business Flex Fund that aided 365 small businesses with lifeline loans totaling $12,500,000 to ensure these business owners could bridge the gap between the beginning of the pandemic and when government assistance became available.
Diversity, Equity, and Inclusion
We are committed to supporting a diverse employee base, creating a culture of inclusion, equity, and empowerment, and bringing our full selves to work. Diversity can take many forms, including race, nationality, ethnicity, sexual orientation, religion, disability, gender, age, protected veteran status, or other distinguishing characteristics.
Our mission is clear: "We are committed to building diverse teams and creating a culture of inclusion, empowerment, and belonging."
To advance this mission, we've restructured our DEI program. Each region will have 5-6 members, with the Regional President as the executive sponsor. A dedicated council for our corporate support areas, sponsored by the Chief Financial Officer and Chief Commercial Banker, with direct involvement from our D&I Officer. Our D&I Officer works closely with the Chief Financial Officer, Chief Commercial Banker, and Chief People Officer to align efforts across all areas of the Bank.
This structure ensures DEI initiatives are integrated across the nine states we serve.
Key Focus Areas
- Partnered with a DEI Consultant to build inclusive mindsets and sustainable strategies
- Enhanced recruitment, hiring, and retention to foster a more diverse workforce
- Launched Employee Resource Groups (ERGs) to promote belonging. Initial ERGs include:
- BIPOC (Black, Indigenous, People of Color)
- Emerging Leaders
- Working Parents
- LGBTQ+
- Military Service Members
Global Diversity and Inclusion Advisory Council
Senior leaders, alongside the D&I Officer, guide enterprise-wide DEI efforts through the Global Diversity and Inclusion Advisory Council, ensuring alignment between regional and corporate initiatives. The Advisory Council:
- Provides strategic guidance to regional and corporate councils
- Facilitates enterprise-wide DEI strategies
- Supports local and corporate DEI efforts
- Defines council membership requirements, including appointed and volunteer roles
With this structure, WaFd Bank reaffirms its belief that "diversity, equity, and inclusion drive innovation and productivity, allowing us to better serve our communities and each other."
Governance
We are committed to strong corporate governance principles and practices which begins with our Board of Directors. Our Board endorses the view that one of its primary functions is to protect stakeholder interests by providing oversight of management, including the Chief Executive Officer.
The Board is made up of members with a wealth of experience and knowledge from a variety of industries including finance, technology, real estate, investments, and risk management. Our Board is committed to independence and the majority of Board members are independent pursuant to the listing requirements of the Nasdaq Stock Market. WaFd Bank Leadership Team
We maintain a variety of corporate governance documents and policies which can be found on our website.
| Board Diversity Matrix | ||
|---|---|---|
| Total Number of Directors: 11 | ||
| Part I: Gender Identity | Female | Male |
| Directors | 3 | 8 |
| Part II: Demographic Background | ||
| African American or Black | 0 | 2 |
| Hispanic or Latinx | 1 | 1 |
| Asian | 0 | 1 |
| White | 2 | 4 |
WaFd Bank Foundation and Community Giving
Founded in 2009, the WaFd Bank Foundation's purpose is to facilitate direct giving to community-based nonprofits serving the needs of people with low-and moderate-incomes. Each year we commit over $1 million to the communities we serve.
WaFd Bank Foundation
As a bank dedicated to serving the community and those around us, we give over $1 Million annually to nonprofits and causes that support the needs of low-income families and individuals.
We direct giving to the following areas:
- Housing and community development
- Social services and basic needs for seniors, youth and low-income families
- Financial literacy
Average grants range from $1,000-$5,000
Since its inception, the Foundation has given nearly $8.1M to local charities across our nine-state footprint.
Please visit our Foundation page for more information.
United Way
WaFd Bank matches employee contributions made to United Way agencies in all nine states: In Fiscal 2024, pledges and donations for United Way totaled $847,000. This is over $100,000 more than the prior year.
Community Partnerships
At WaFd, we align with partners that share and exhibit the same vales as we do. Our partners complement our passions and strengths and help us build stronger and more vibrant communities. Each partnership includes donations to community-based organizations and foundations that enrich the communities we serve.
Seattle Kraken
We have joined the Seattle Kraken as a Founding Partner as both organizations share the fundamentals of integrity, hard work, and innovation. We are excited to help bring hockey back to Seattle and give back through their One Roof Foundation in efforts to continue to build the most diverse and inclusive hockey culture in the country, if not the world.
Seattle Storm
In 2023, WaFd and the Seattle Storm launched Fit Futures, a community initiative providing kids with equal access to physical activity and financial education. Each year, three Title One schools will receive $5,000 each towards the purchase of new PE equipment and supplies in a celebratory ceremony to include the presence of Storm mascot Doppler and a Storm VIP guest. Each of these three schools will also receive 300 tickets to a regular season Storm game for kids and their families. Additionally, WaFd sponsors a half court shootaround challenge with Storm players benefitting a local BIPOC non-profit.
Seattle Seawolves
We support Seattle Compassion Services through the Seawolves by volunteering in the community and through financial donations to further their mission to house the unhoused, alleviate suffering and bring the community together to solve homelessness.
WaFd Workforce
At WaFd Bank, we've taken the same long-term perspective with our employees as we have with our clients. We value each of our employees and invest in their development and wellbeing.
A career at WaFd Bank
We value our employees by investing in a healthy work/life balance, competitive compensation packages, a vibrant team-oriented environment centered on professional service, and 360-degree, open communication with your colleagues.
A Career at WaFd Bank Offers:
- Paid time off and sick days
- Health benefits
- Stock options
- Bonus program
- Generous 401(k) match
- Life and AD&D insurance
- Long-term disability
- Employee assistance program
- Pre-tax health and dependent-care spending plans
- Four weeks parental leave
- $5,000 per year in tuition reimbursement, up to $40,000 total
We love coming to work and it shows!
In 2026, WaFd Bank was awarded America's Most Admired Workplaces by Newsweek. We're proud of our employees and all that they do.
Environmental Responsibility and Social Risk Management
WaFd Bank's corporate social and environmental responsibility commitment arises from the impact of our activities on people's lives and society. To fulfill this commitment, WaFd Bank integrates social, environmental and ethical concerns, as well as those regarding human rights and the needs of its stakeholders, into its daily business activities and approach to stakeholder relationships.
Through all our interactions, WaFd Bank will:
- Carry out its banking activities in a responsible manner, placing the financial needs of its clients and economic health of its communities at the core of its strategic focus.
- Maximize the creation of sustainable and shared value for its shareholders, employees and stakeholders, including contributing to the broader benefit of society.
We acknowledge the impact of climate change, which may lead to new regulations as well as financial and reputational risks. We also realize there are new opportunities to find ways to mitigate those risks and open new doors to offsetting carbon footprints. We will embrace these opportunities and seek out new ways to invest in change to a lower carbon economy and a better future for us all.
Environmental Stewardship
WaFd strives to focus on efficiency and long-term sustainability in our business processes through prudent use of resources, including renewable energy and waste reduction efforts. We also offer the following services and benefits to employees at our corporate headquarters in downtown Seattle:
- Free transit passes for all employees to encourage mass transit, including train, ferry, bus and light rail.
- Secure, onsite bike storage and shower facilities for our biking community.
- Improved air quality through bi-polar ionization in our HVAC system to remove bacteria, viruses and pollutants.
- Flexible work policies that allow for a hybrid approach between office hoteling and work-from-home, reducing physical commutes and carbon footprints.
- Working to reduce total square footage of corporate and branch real estate across our footprint to save on energy costs and shrink our physical carbon footprint.
Volunteerism
WaFd employees are invested in their communities and giving back. We support this by giving them time to volunteer with the organizations they are passionate about. In 2025, WaFd employees participated in 14,649 volunteer hours to 1,136 organizations and initiatives across our regional footprint.
United Way Day of Caring (Arizona)
Fire Relief Efforts (California)
Idaho Food Bank (Idaho)
Piece Coalition (New Mexico)
Toys for Tots Drive (Nevada)
Food Drive (Oregon)
Metrocrest Services (Texas)
Project Homeless Connect (Utah)
