WaFd Bank receives SBA Preferred Lender designation

Published 16/09/2025, 18:06
WaFd Bank receives SBA Preferred Lender designation

SEATTLE - WaFd, Inc. (NASDAQ:WAFD), parent company of Washington Federal Bank and a consistently profitable institution with a market capitalization of $2.4 billion, announced Tuesday it has been designated as a Preferred Lender by the U.S. Small Business Administration (SBA). According to InvestingPro data, the bank maintains strong financial metrics with a P/E ratio of 11.7 and has demonstrated its commitment to shareholder returns by maintaining dividend payments for 43 consecutive years.

The designation allows WaFd Bank to approve, close, and service SBA-guaranteed loans with greater autonomy, reducing processing times for small business borrowers. The Preferred Lender Program status is granted to financial institutions that demonstrate a consistent track record in SBA lending. InvestingPro analysis shows the bank’s solid financial foundation, with a healthy return on equity of 8% and revenue growth of 8.14% over the last twelve months.

"Earning Preferred Lender status with the SBA means we can help in a more efficient way without waiting on the SBA to bless our approvals," said Scott Bossom, SBA Program Manager at WaFd Bank. "This designation allows us to serve our customers with faster turn times."

With this new status, WaFd Bank can offer expedited approvals for SBA-backed loans, including 7(a) and 504 loan programs. The bank will provide small business customers with a more streamlined application process and access to financing that may require less collateral than traditional loans.

WaFd Bank, established in 1917, operates branches across nine states including Washington, Oregon, Idaho, Utah, Nevada, Arizona, Texas, New Mexico, and California. The bank provides consumer and commercial deposit accounts and financing services for small to middle-market businesses. With a current dividend yield of 3.49% and six consecutive years of dividend increases, WaFd demonstrates strong commitment to shareholder value. Discover more financial insights and metrics with InvestingPro, which offers additional ProTips and detailed analysis for informed investment decisions.

The announcement was made in a press release statement from the company.

In other recent news, Washington Federal reported a strong performance in its second quarter, with operating earnings per share of $0.73, surpassing estimates from Stephens, which had projected $0.67. This earnings beat led Stephens to raise its price target for Washington Federal to $33.00 from $32.00, while maintaining an Equal Weight rating. Similarly, DA Davidson also adjusted its price target for the company, increasing it to $33.00 from $29.00, and maintained a Neutral rating. The firm noted the company’s improved net interest margin despite slower growth. Additionally, Washington Federal announced its 170th consecutive quarterly cash dividend of 27 cents per share, continuing its tradition of returning value to shareholders. This dividend is payable on September 5, 2025, to shareholders of record as of August 22, 2025. These developments reflect the company’s ongoing financial stability and commitment to its investors.

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