Question · Q4 2025
Andrew Tyrrell asked about WaFd's strategy to achieve 20% non-interest-bearing deposits by 2030, specifically whether it would be driven by shrinking time deposits or absolute growth in non-interest-bearing accounts. He also inquired about client reactions to recent rate cuts and WaFd's approach to adjusting deposit rates, comparing it to previous rate cycles.
Answer
Brent Beardall, President and CEO, emphasized that the 20% non-interest-bearing deposit target would be achieved through overall growth, not by shrinking the balance sheet. He expects the Luther Burbank time deposit runoff to be nearing its end, with future growth primarily from non-interest-bearing and checking accounts. He stated WaFd would be more aggressive with deposit rate cuts due to an improved loan-to-deposit ratio, noting that clients generally expect these adjustments without significant pushback. He also expressed personal skepticism about further Fed rate cuts given current economic conditions.