WaFd CEO: Market is overreacting and regional banks are strong

Regional Bank Strength & Risk Management - Regional banks are in the business of taking risks, planning for credit losses with reserves against potential loan defaults [2] - Conservative lending practices are observed in the marketplace, even concerning loans to non-depository financial institutions, which represent a small segment of most portfolios [5] - Low levels of non-performing assets are currently observed [5] WAFED's Financial Position - WAFED reported net charge-offs of only 006% (six basis points) for the last fiscal year [6] - WAFED maintains a reserve of 104% (104 basis points), sufficient to cover loan losses for 17 years before impacting capital [6] - WAFED sold approximately 28% (2.8 billion) of its commercial real estate (CRE) portfolio a year ago at book value, indicating liquidity in the system [12] Market Outlook & Potential Concerns - Rising floating interest rates (up 500 basis points) may cause stress for some borrowers [8] - Overreacting and selling regional banks at the first sign of weakness could represent a buying opportunity for informed investors [10] - Investors and banks should assess exposure to non-depository financial institutions [2]