The Institutional Risk Analyst

The first point to make is that neither of these banks is a particularly good financial performer. WAFD is a bottom quartile performer vs Peer Group One and has reported a lot of noise of late in areas like securities losses. WAFD makes its way in life as a small regional bank by keeping low expenses. When we visited the bank years ago during our time leading bank ratings at KBRA, the CEO talked about his predecessor turning off every other lightbulb in the bank’s Seattle of

If you figure that the seven year portion of the Treasury curve is around 4% today, a nearly 7% yield on EverBank's NDFI loan book seems pretty risky. But in fact the average yield on this loan category was over 10% for all 100 plus banks in Peer Group 1. So while EverBank certainly has a concentration in NDFI lending, it is not the highest yield. JPMorgan (JPM) was 5.9% in Q3, putting the House of Morgan in the 80th percentile of Peer Group 1.