WaFd, Inc. has received regulatory approval for its acquisition of Luther Burbank Corporation, the parent company of Luther Burbank Savings. The approval comes from the Federal Deposit Insurance Corporation, the Washington State Department of Financial Institutions, and the Board of Governors of the Federal Reserve System. The merger will see Luther Burbank Savings being merged into Washington Federal Bank, expanding its footprint to nine western states with the addition of ten California branches of Luther Burbank.
Brent Beardall, President, and Chief Executive Officer of WaFd Bank, expressed his confidence in the merger, stating, "Regulatory approval of this merger with Luther Burbank affirms WaFd Bank's position as an important financial resource for the communities we serve." He further added, "The more we have worked with the Luther Burbank team, the more convinced we are our combined bank will create significant opportunities for current and future customers and shareholders."
The merger is expected to be completed by February 29, 2024, subject to the satisfaction or waiver of the remaining closing conditions set forth in the Merger Agreement. System and brand integration efforts are anticipated to be finalized in the first week of March 2024.
As a part of the merger, WaFd, Inc. will be welcoming two directors from Luther Burbank to join its Boards of Directors. Mr. Brad Shuster and Mr. Max Yzaguirre will join the Boards following the closing.
Simone Lagomarsino, President and Chief Executive Officer of Luther Burbank Savings, emphasized the alignment of values between the two entities, stating, "We believe we have found a long-term partner in WaFd whose values align with ours, can offer our customers a wider range of technology-enabled financial solutions and expanded geographic footprint that will help our customers thrive."
On the market front, the company's shares have moved -1.9%, and are now trading at a price of $30.11.
WaFd, Inc. is the parent company of Washington Federal Bank, operating in Washington, Oregon, Idaho, Utah, Nevada, Arizona, Texas, and New Mexico. Luther Burbank Corporation, headquartered in Santa Rosa, California, operates 10 full-service branches in California and one full-service branch in Washington.
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $607 | $671 | $621 | $25 | $666 | $1,043 |
| Revenue Growth | n/a | 10.61% | -7.48% | -96.03% | 2599.34% | 56.52% |
| Interest Income (MM) | $472 | $481 | $470 | $505 | $595 | $353 |
| Net Margins | 34% | 31% | 28% | 744% | 35% | 23% |
| Net Income (MM) | $204 | $210 | $173 | $184 | $236 | $243 |
| Depreciation & Amort. (MM) | $2 | $2 | $2 | $1 | $1 | $1 |
| Earnings Per Share | $2.4 | $2.61 | $2.26 | $2.39 | $3.39 | $3.72 |
| EPS Growth | n/a | 8.75% | -13.41% | 5.75% | 41.84% | 9.73% |
| Diluted Shares (MM) | 82 | 79 | 76 | 65 | 65 | 65 |
| Free Cash Flow (MM) | $164 | $199 | $135 | $285 | $257 | $199 |
| Capital Expenditures (MM) | $27 | $36 | $32 | $29 | $12 | $15 |
