WaFd, Inc. Announces Cash Dividend of 26 Cents Per Share and Increase in Share Repurchase Authorization

Rhea-AI Summary

Today, WaFd announced a regular cash dividend of 26 cents per share, payable on June 7, 2024, to shareholders of record as of May 24, 2024. This marks the 165th consecutive quarterly cash dividend for the company. Additionally, the Board has increased the share repurchase authorization by 10 million shares, raising the total authorized amount to 11.8 million shares. Over the past three fiscal years, WaFd has repurchased 12.7 million shares at an average price of $31.32, equating to 17% of the shares outstanding as of October 1, 2020. WaFd is a parent company of Washington Federal Bank, which operates 210 branches across nine states and reported $30.1 billion in assets, $21.3 billion in deposits, and $2.9 billion in shareholders' equity as of March 31, 2024.

Positive

• Regular cash dividend of 26 cents per share for shareholders.
• 165th consecutive quarterly cash dividend.
• Increased share repurchase authorization by 10 million shares.
• Total authorized share repurchase now at 11.8 million shares.
• Repurchased 12.7 million shares over the past three fiscal years.
• Weighted average repurchase price of $31.32 per share.
• Repurchases represent 17% of shares outstanding as of October 1, 2020.
• Reported $30.1 billion in assets as of March 31, 2024.
• Reported $21.3 billion in deposits.
• Reported $2.9 billion in shareholders' equity.

Negative

• No new financial performance metrics reported beyond March 31, 2024.
• Increased share repurchase may indicate a lack of better investment opportunities.
• Potential shareholder dilution risk if share repurchases are not executed wisely.

Insights

Financial Analyst

The announcement of a cash dividend of 26 cents per share and the increase in share repurchase authorization are signals of WaFd, Inc.'s strong financial health and management's confidence in the company's future performance. The dividend's consistency, marking the 165th consecutive quarterly cash dividend, highlights WaFd's commitment to returning value to shareholders.

This stability can be reassuring to investors, especially those seeking steady income from dividends. Additionally, the increased share repurchase authorization by 10 million shares reflects a strategic move to enhance shareholder value by potentially reducing the number of shares outstanding, thereby increasing earnings per share (EPS).

For retail investors, both actions indicate that WaFd has sufficient liquidity and capital to support such initiatives without compromising its financial stability. However, it's also important to consider the potential opportunity cost. Funds used for dividends and share buybacks could alternatively be reinvested into growth opportunities. Monitoring WaFd's future financial performance and strategic investments will be important to assessing the long-term impact of these actions.

Additionally, WaFd's performance with a reported $30.1 billion in assets and $2.9 billion in shareholders' equity indicates a solid balance sheet. This makes their financial health robust in the current economic environment, potentially providing a cushion against future uncertainties.

Market Research Analyst

WaFd, Inc.'s decision to announce a regular cash dividend and increase share repurchase authorization aligns with prevalent market trends among established financial institutions aiming to optimize shareholder returns. These actions often boost investor confidence and can lead to positive market perception, particularly among retail investors who favor predictable income streams and value enhancement strategies.

The 17% reduction in shares outstanding over the past three fiscal years underscores a proactive approach in managing capital structure and improving per-share metrics. By repurchasing shares at a weighted average price of $31.32, WaFd strategically capitalized on market conditions to repurchase shares at a potentially favorable valuation.

Investors should, however, remain cognizant of broader market conditions and the banking sector's regulatory landscape, which can impact the efficacy of these strategies. Given the current economic volatility, WaFd's ability to maintain its dividend payments and share repurchase program reflects well on its resilience and operational robustness. Assessing the sustainability of these actions in the context of emerging market trends and economic indicators will be vital for long-term investment decisions.

SEATTLE--(BUSINESS WIRE)-- Today, the Board of Directors of WaFd, Inc. (Nasdaq: WAFD) (the “Company”), announced a regular cash dividend of 26 cents per share. The dividend will be paid June 7, 2024, to common shareholders of record as of May 24, 2024. This will be the Company’s 165^th consecutive quarterly cash dividend.

The Board also increased the number of shares authorized for repurchase by 10 million, bringing the currently authorized amount up to 11.8 million shares. Over the last three fiscal years the Company has repurchased 12.7 million shares at a weighted average price of $31.32, this represents 17% of the shares outstanding on October 1, 2020.

President and Chief Executive Officer, Brent J. Beardall commented, “the Board’s actions today express its confidence in WaFd, Inc’s future.”

WaFd, Inc. is the parent company of Washington Federal Bank, a federally insured Washington state chartered commercial bank dba WaFd Bank that operates branches in Washington, Oregon, Idaho, Utah, Nevada, Arizona, Texas, New Mexico, and California. Established in 1917, the bank provides consumer and commercial deposit accounts, financing for small- to middle-market businesses, commercial real estate and residential real estate, including consumer mortgages, home equity lines of credit and insurance products through a subsidiary. As of March 31, 2024, the Company operated 210 branches and reported $30.1 billion in assets, $21.3 billion in deposits and $2.9 billion in shareholders’ equity.

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.

Statements in this press release that speak to the Company’s future performance or financial condition constitute “forward-looking statements” as defined by federal law. Such statements are based on present information the Company has related to its present business circumstances. Although the Company believes any such statements are based on reasonable assumptions, there is no assurance that actual or future outcomes will not be materially different.

Any such statements are made in reliance on the “safe harbor” protections provided under the Private Securities Litigation Reform Act of 1995. Additional information about risks and additional matters that could lead to material changes in the Company’s performance or financial condition are contained in the Company’s annual and quarterly reports filed with the SEC, including under “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended September 30, 2023.

To find out more about WaFd Bank, or to find a copy of our 10-K or our other SEC filings, please visit our website www.wafdbank.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240514132876/en/

WaFd, Inc.

425 Pike Street, Seattle, WA 98101

Brad Goode, SVP, Chief Marketing Officer

206-626-8178

Brad.Goode@wafd.com

Source: WaFd, Inc.

FAQ

What dividend did WaFd announce?

WaFd announced a regular cash dividend of 26 cents per share.

When will the WaFd dividend be paid?

The dividend will be paid on June 7, 2024.

What is the record date for WaFd's dividend?

The record date for the dividend is May 24, 2024.

How many consecutive quarterly cash dividends has WaFd announced?

This marks the 165th consecutive quarterly cash dividend for WaFd.

How many shares has WaFd authorized for repurchase?

WaFd has increased the share repurchase authorization by 10 million shares, bringing the total to 11.8 million shares.

What was the average price of WaFd's share repurchases over the past three years?

The weighted average price of share repurchases was $31.32 per share.

How many shares has WaFd repurchased over the past three fiscal years?

WaFd has repurchased 12.7 million shares over the past three fiscal years.

What percentage of shares outstanding did WaFd's repurchases represent?

The share repurchases represented 17% of the shares outstanding as of October 1, 2020.

As of March 31, 2024, what are WaFd's reported assets?

As of March 31, 2024, WaFd reported $30.1 billion in assets.

As of March 31, 2024, what are WaFd's reported deposits?

As of March 31, 2024, WaFd reported $21.3 billion in deposits.

As of March 31, 2024, what is WaFd's shareholders' equity?

As of March 31, 2024, WaFd reported $2.9 billion in shareholders' equity.