WaFd Announces Quarterly Earnings Per Share of $0.65

Yahoo

12-04-2025

SEATTLE, April 11, 2025--(BUSINESS WIRE)--WaFd, Inc. (Nasdaq: WAFD):
Q2 Highlights
$56 Million
$0.65
0.82%
7.68%
Net Income
Diluted Earnings per Common Share
Return on Average Assets
Return on Average Common Equity
"In the second quarter of fiscal 2025 our margin bounced back, expenses declined, and bottom-line results improved for shareholders. We are enthusiastic about the shift toward business banking we implemented last quarter and are pleased to see early successes including 382 new small business loans originated through our branches (compared to none in the prior quarter), merchant processing referrals increasing 125% on a linked quarter basis, and our insurance subsidiary delivering 53% year over year growth in profit. Additionally, we have been able to hire two former executives from the Small Business Administration to assist in establishing SBA lending at WaFd. We understand that our continued evolution toward higher margin business lines will be measured in years, not quarters, but we are off to a good start.
"This quarter we were recognized by JD Power as the 2nd best for customer service among all banks doing business in the Pacific Northwest. This is a well-deserved compliment to our team of bankers that focus first on our clients."
Brent BeardallPresident and CEO of WaFd Bank
Net Interest Income and NIM
•
$161 million net interest income for the quarter compared to 155 million in Q1.
Credit Quality
•
Non-performing assets down by $8 million at 0.26% of total assets compared to 0.29% Q1.
•
Net interest margin at 2.55% for the quarter compared to 2.39% for Q1.
•
$2.75 million provision the result of net charge-offs offset by a stable loans receivable balance.
Non-Interest Income and Expense
•
20% increase in non-interest income compared to Q1 driven by WaFd Insurance revenue increase: $1.7 million over the December quarter and $1.3 million over March 2024.
Shareholder Returns and Stock Activity
•
On March 7, 2025, the Company paid a cash dividend of $0.27 per share, 168th consecutive quarterly dividend paid.
•
726,082 shares were repurchased during the quarter
WaFd, Inc. (Nasdaq: WAFD) (the "Company"), parent company of Washington Federal Bank ("WaFd Bank" or the "Bank"), today announced quarterly earnings of $56,252,000 for the quarter ended March 31, 2025, an increase of 19% from net earnings of $47,267,000 for the quarter ended December 31, 2024 and an increase of 254% from net earnings of $15,888,000 for the quarter ended March 31, 2024. After the effect of dividends on preferred stock, net income available for common shareholders was $0.65 per diluted share for the quarter ended March 31, 2025, compared to $0.54 per diluted share for the quarter ended December 31, 2024, an $0.11 or 20% increase, and $0.17 per diluted share for the quarter ended March 31, 2024, a $0.48 or 282% increase in fully diluted earnings per common share. The March 31, 2024 results reflected significant acquisition-related expenses and certain non-operating adjustments of $51.1 million and the December 31, 2024 results reflected one-time restructuring charges of $5.4 million.
The following table provides the Company's financial scorecard for the last five quarters:
As of
(In thousands, except share and ratio data)
March 31,2025
December 31,2024
September 30,2024
June 30,2024
March 31,2024
BALANCE SHEET
Cash
$
1,231,461
$
1,507,735
$
2,381,102
$
2,492,504
$
1,505,771
Loans receivable, net
20,920,001
21,060,501
20,916,354
20,873,919
20,795,259
Allowance for credit losses ("ACL")
222,709
225,022
225,253
225,324
225,077
Loans held for sale
—
—
—
468,527
2,993,658
Available-for-sale securities, at fair value
3,142,763
2,743,731
2,572,709
2,428,768
2,438,114
Held-to-maturity securities, at amortized cost
526,502
537,348
436,972
447,638
457,882
Total investments
3,669,265
3,281,079
3,009,681
2,876,406
2,895,996
Total assets
27,644,637
27,684,454
28,060,330
28,580,800
30,140,288
Transaction deposits
11,853,984
11,853,859
11,817,185
11,929,005
12,338,862
Time deposits
9,573,442
9,584,918
9,556,785
9,255,760
9,000,911
Total deposits
21,427,426
21,438,777
21,373,970
21,184,765
21,339,773
Borrowings
2,814,938
2,914,627
3,318,307
4,079,360
5,489,501
Total shareholders' equity
3,032,620
3,021,636
3,000,300
2,958,339
2,921,906
Loans to customer deposits2
97.63
%
98.24
%
97.86
%
98.53
%
97.45
%
PROFITABILITY
Net income
$
56,252
$
47,267
$
61,140
$
64,560
$
15,888
Net income to common shareholders
52,596
43,611
57,484
60,904
12,232
Earnings per common share
0.65
0.54
0.71
0.75
0.17
Return on tangible common equity1
9.18
%
7.69
%
10.24
%
11.10
%
2.47
%
Return on tangible assets1
0.84
%
0.70
%
0.89
%
0.88
%
0.26
%
Net interest margin
2.55
%
2.39
%
2.62
%
2.56
%
2.73
%
Efficiency ratio
58.31
%
65.04
%
57.21
%
56.61
%
77.74
%
FINANCIAL HIGHLIGHTS
Common shareholders' equity per share
$
33.84
$
33.45
$
33.25
$
32.76
$
32.21
Tangible common shareholders' equity per share1
28.31
27.93
27.73
27.18
26.64
Shareholders' equity to total assets
10.97
%
10.91
%
10.69
%
10.35
%
9.69
%
Tangible shareholders' equity to tangible assets1
9.51
%
9.45
%
9.24
%
8.91
%
8.31
%
Common shares outstanding
80,758,674
81,373,760
81,220,269
81,157,173
81,405,391
Preferred shares outstanding
300,000
300,000
300,000
300,000
300,000
CREDIT QUALITY2
ACL to gross loans
1.01
%
1.00
%
1.01
%
1.00
%
1.00
%
Non-accrual loans to net loans
0.29
%
0.34
%
0.33
%
0.29
%
0.29
%
Delinquencies to net loans
0.27
%
0.30
%
0.25
%
0.22
%
0.36
%
Non-performing assets to total assets
0.26
%
0.29
%
0.28
%
0.24
%
0.23
%
Criticized loans to net loans
3.32
%
2.54
%
2.41
%
3.01
%
2.59
%
Substandard loans to net loans
2.38
%
1.96
%
2.04
%
1.84
%
1.48
%
(1)
Metric is a non-GAAP Financial Measure. See page 10 for additional information on our use of non-GAAP Financial Measures.
(2)
Metrics include only loans held for investment. Loans held for sale are not included.
Balance Sheet Total assets decreased to $27.6 billion as of March 31, 2025, compared to $28.1 billion at September 30, 2024, primarily due to cash used to reduce borrowings and purchase investments during the period. Net loans were flat at $20.9 billion and cash decreased $1.1 billion, or 48.3%. Investment securities increased by $660 million, or 21.9% in the first half of FY 2025.
Customer deposits totaled $21.4 billion as of March 31, 2025, largely unchanged from September 30, 2024. Transaction accounts increased by $37 million or 0.3% during the period, while time deposits increased $17 million or 0.2%. As of March 31, 2025, 55.3% of the Company's deposits were transaction accounts, similar to September 30, 2024. Core deposits, defined as all transaction accounts and time deposits less than $250,000, totaled 78.8% of deposits at March 31, 2025, up from 75.1% on September 30, 2024. Deposits that are uninsured or not collateralized were 25.6% as of March 31, 2025, an increase from 24.0% as of September 30, 2024.
Borrowings totaled $2.8 billion as of March 31, 2025, down from $3.3 billion at September 30, 2024. The effective weighted average interest rate of borrowings was 3.30% as of March 31, 2025, compared to 3.93% at September 30, 2024.
Loan originations totaled $1.0 billion for the second fiscal quarter of 2025, compared to $0.9 billion of originations in the prior quarter. Offsetting loan originations in each of these quarters were loan repayments of $1.3 billion and $1.0 billion, respectively. Commercial loans represented 73% of all loan originations during the second fiscal quarter of 2025 and consumer loans accounted for the remaining 27%. The period end interest yield on the loan portfolio was 5.42% as of March 31, 2025, a decrease from 5.62% as of September 30, 2024.
Tangible common equity per share is a key metric for our management team. For the March quarter, tangible book value per share grew from $27.73 as of September 30, 2024 to $28.31 at March 31, 2025. This metric is a non-GAAP Financial Measure. See page 10 for additional information on our use of non-GAAP Financial Measures. During the quarter, the Company repurchased 726,082 shares of common stock at a weighted average price of $29.39. Our share repurchase plan currently has an authorization of 10.8 million shares, which provides what we believe is a compelling investment alternative.
Credit Quality Credit quality continues to be monitored closely in light of the shifting economic and monetary environment. As of March 31, 2025, non-performing assets decreased to $71 million, or 0.26% of total assets, from $77 million, or 0.28%, at September 30, 2024. The change fiscal year to date is due primarily to non-accrual loans decreasing by $9.7 million, or 14%, since September 30, 2024. Delinquent loans were slightly increased at 0.27% of total loans at March 31, 2025, compared to 0.25% at September 30, 2024 but improved compared to 0.30% at December 31, 2024. The allowance for credit losses (including the reserve for unfunded commitments) totaled $223 million as of March 31, 2025, and was 1.01% of gross loans outstanding, as compared to $225 million, or 1.01% of gross loans outstanding, as of September 30, 2024. Net charge-offs were $5,063,000 for the second fiscal quarter of 2025, compared to $231,000 for the prior quarter.
Profitability Net interest income was $161 million for the second fiscal quarter of 2025, an increase of $5.5 million or 4% from the prior quarter. The increase in net interest income was primarily due to a 19 basis point decrease in the rate paid on interest bearing liabilities offset by a $170 million decrease in interest earning asset balances for which the yield was flat. Net interest margin was 2.55% in the second fiscal quarter of 2025 compared to 2.39% for the quarter ended December 31, 2024.
Total non-interest income was $18.9 million for the second fiscal quarter of 2025 compared to $15.7 million the prior quarter. The increase compared to the prior quarter was primarily due to increased prepayment fees earned on loans and increased commission income from the Bank's insurance subsidiary, WaFd Insurance.
Total non-interest expense was $104.8 million in the second fiscal quarter of 2025, a decrease of $6.5 million, or 5.8%, from the prior quarter. The overall decrease is the result of the $5.4 million of restructuring costs incurred in the prior quarter. Decreased expenses combined with increased net interest income resulted in a decrease in the Company's efficiency ratio in the second fiscal quarter of 2025 to 58.3%, compared to 65.0% in the prior quarter.
The Company recorded a $2.8 million provision for credit losses in the second fiscal quarter of 2025 compared to no provision the prior quarter. The provision for loan losses in the quarter ended March 31, 2025 was primarily the result of the stable loans receivable balance offset by $5.1 million of net charge-offs taken during the quarter.
Return on common shareholders' equity for the quarter ended March 31, 2025 was 7.68% compared to 6.42% for the quarter ended December 31, 2024. Adjusted for certain non-operating items and restructuring charges, return on equity for the quarter is 7.66% compared to adjusted return on equity of 7.45% the prior quarter. Return on assets for the quarter ended March 31, 2025 was 0.82% compared to 0.69% for the previous quarter. Adjusted for certain non-operating items and restructuring charges, return on assets for the quarter is 0.82% compared to adjusted return on assets of 0.79% the prior quarter. For a reconciliation of these adjusted ratios, see the Non-GAAP Financial Measures section below.
Income tax expense totaled $15.8 million the second fiscal quarter of 2025, as compared to $5.1 million for the prior year same quarter. The effective tax rate for the quarter ended March 31, 2025 was 21.88% compared to 21.55% for the quarter ended December 31, 2024. The Company's effective tax rate may vary from the statutory rate mainly due to state taxes, tax-exempt income and tax-credit investments.
WaFd Bank is headquartered in Seattle, Washington, and has 209 branches in nine western states. To find out more about WaFd Bank, please visit our website www.wafdbank.com. The Company uses its website to distribute financial and other material information about the Company.
WAFD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
March 31, 2025
September 30, 2024
(In thousands, except share and ratio data)
ASSETS
Cash and cash equivalents
$
1,231,461
$
2,381,102
Available-for-sale securities, at fair value
3,142,763
2,572,709
Held-to-maturity securities, at amortized cost
526,502
436,972
Loans receivable, net of allowance for loan losses of $202,709 and $203,753
20,920,001
20,916,354
Interest receivable
101,778
102,827
Premises and equipment, net
250,896
247,901
Real estate owned
7,688
4,567
FHLB stock
133,964
95,617
Bank owned life insurance
271,321
267,633
Intangible assets, including goodwill of $414,723 and $411,360
446,660
448,425
Deferred tax assets, net
122,739
119,248
Other assets
488,864
466,975
$
27,644,637
$
28,060,330
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Transaction deposits
$
11,853,984
$
11,817,185
Time deposits
9,573,442
9,556,785
Total customer deposits
21,427,426
21,373,970
Borrowings
2,763,758
3,267,589
Junior subordinated debentures
51,180
50,718
Advance payments by borrowers for taxes and insurance
44,496
61,330
Accrued expenses and other liabilities
325,157
306,423
24,612,017
25,060,030
Shareholders' equity
Preferred stock, $1.00 par value, 5,000,000 shares authorized; 300,000 and 300,000 shares issued; 300,000 and 300,000 shares outstanding
300,000
300,000
Common stock, $1.00 par value, 300,000,000 shares authorized; 154,355,059 and 154,007,429 shares issued; 80,758,674 and 81,220,269 shares outstanding
154,355
154,007
Additional paid-in capital
2,158,037
2,150,675
Accumulated other comprehensive income (loss), net of taxes
51,404
55,851
Treasury stock, at cost 73,596,385 and 72,787,160 shares
(1,663,739
)
(1,639,131
)
Retained earnings
2,032,563
1,978,898
3,032,620
3,000,300
$
27,644,637
$
28,060,330
Yield and margin as of period end
Loans receivable1
5.42
%
5.62
%
Mortgage-backed securities
4.22
4.00
Combined cash, investments and FHLB stock
4.62
5.10
Interest-earning assets
5.22
5.44
Interest-bearing customer accounts
3.16
3.50
Borrowings1
3.30
3.93
Interest-bearing liabilities
3.17
3.56
Net interest spread
2.05
1.88
Net interest margin
2.55
2.44
1
Accretion and amortization assumed to be same as prior quarter. Also includes the impact of derivatives.
WAFD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months EndedMarch 31,
Six Months EndedMarch 31,
2025
2024
2025
2024
(In thousands, except share and ratio data)
INTEREST INCOME
Loans receivable
$
282,077
$
274,341
$
568,674
$
520,133
Mortgage-backed securities
23,926
12,905
42,263
24,171
Investment securities and cash equivalents
30,081
31,580
70,264
61,368
336,084
318,826
681,201
605,672
INTEREST EXPENSE
Customer accounts
151,948
116,164
314,098
212,835
Borrowings, senior debt and junior subordinated debentures
23,226
44,065
50,762
82,003
175,174
160,229
364,860
294,838
Net interest income
160,910
158,597
316,341
310,834
Provision (release) for credit losses
2,750
16,000
2,750
16,000
Net interest income after provision (release)
158,160
142,597
313,591
294,834
NON-INTEREST INCOME
Gain (loss) on sale of investment securities
—
90
20
171
Gain (loss) on termination of hedging derivatives
65
6
70
115
Loan fee income
1,812
550
3,157
1,394
Deposit fee income
7,057
6,698
14,103
13,500
Other income
9,947
6,048
17,233
12,379
Total non-interest income
18,881
13,392
34,583
27,559
NON-INTEREST EXPENSE
Compensation and benefits
52,710
73,155
112,637
122,996
Occupancy
11,499
10,918
22,287
20,289
FDIC insurance premiums
5,800
7,900
10,650
14,470
Product delivery
6,907
5,581
12,692
11,590
Information technology
14,481
12,883
28,673
25,749
Other expense
13,435
23,275
29,204
35,158
Total non-interest expense
104,832
133,712
216,143
230,252
Gain (loss) on real estate owned, net
(199
)
(1,315
)
230
511
Income before income taxes
72,010
20,962
132,261
92,652
Income tax provision
15,758
5,074
28,742
18,311
Net income
56,252
15,888
103,519
74,341
Dividends on preferred stock
3,656
3,656
7,312
7,312
Net income available to common shareholders
$
52,596
$
12,232
$
96,207
$
67,029
PER SHARE DATA
Basic earnings per common share
$
0.65
$
0.17
$
1.19
$
1.00
Diluted earnings per common share
0.65
0.17
1.18
1.00
Cash dividends per common share
0.27
0.26
0.53
0.51
Basic weighted average shares outstanding
81,061,206
70,129,072
81,178,997
67,197,352
Diluted weighted average shares outstanding
81,105,536
70,164,558
81,278,102
67,225,099
PERFORMANCE RATIOS
Return on average assets
0.82
%
0.26
%
0.75
%
0.63
%
Return on average common equity
7.68
%
2.09
%
7.06
%
5.98
%
WAFD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
March 31,2025
December 31,2024
September 30,2024
June 30,2024
March 31,2024
(In thousands, except share and ratio data)
INTEREST INCOME
Loans receivable
$
282,077
$
286,597
$
308,598
$
337,118
$
274,341
Mortgage-backed securities
23,926
18,337
18,088
17,523
12,905
Investment securities and cash equivalents
30,081
40,183
47,411
37,300
31,580
336,084
345,117
374,097
391,941
318,826
INTEREST EXPENSE
Customer accounts
151,948
162,150
165,240
154,359
116,164
Borrowings, senior debt and junior subordinated debentures
23,226
27,536
36,045
60,396
44,065
175,174
189,686
201,285
214,755
160,229
Net interest income
160,910
155,431
172,812
177,186
158,597
Provision for credit losses
2,750
—
—
1,500
16,000
Net interest income after provision
158,160
155,431
172,812
175,686
142,597
NON-INTEREST INCOME
Gain on sale of investment securities
—
20
91
80
90
Gain on termination of hedging derivatives
65
5
72
54
6
Loan fee income
1,812
1,345
757
594
550
Deposit fee income
7,057
7,046
7,047
6,960
6,698
Other income
9,947
7,286
7,911
9,567
6,048
Total non-interest income
18,881
15,702
15,878
17,255
13,392
NON-INTEREST EXPENSE
Compensation and benefits
52,710
59,927
53,983
57,169
73,155
Occupancy
11,499
10,788
10,843
10,904
10,918
FDIC insurance premiums
5,800
4,850
6,800
7,600
7,900
Product delivery
6,907
5,785
6,306
6,090
5,581
Information technology
14,481
14,192
14,129
13,428
12,883
Other expense
13,435
15,769
15,880
14,888
23,275
Total non-interest expense
104,832
111,311
107,941
110,079
133,712
Gain (loss) on real estate owned, net
(199
)
429
(83
)
(124
)
(1,315
)
Income before income taxes
72,010
60,251
80,666
82,738
20,962
Income tax provision
15,758
12,984
19,526
18,178
5,074
Net income
56,252
47,267
61,140
64,560
15,888
Dividends on preferred stock
3,656
3,656
3,656
3,656
3,656
Net income available to common shareholders
$
52,596
$
43,611
$
57,484
$
60,904
$
12,232
WAFD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
March 31,2025
December 31,2024
September 30,2024
June 30,2024
March 31,2024
(In thousands, except share and ratio data)
PER SHARE DATA
Basic earnings per common share
$
0.65
$
0.54
$
0.71
$
0.75
$
0.17
Diluted earnings per common share
0.65
0.54
0.71
0.75
0.17
Cash dividends per common share
0.27
0.26
0.26
0.26
0.26
Basic weighted average shares outstanding
81,061,206
81,294,227
81,208,683
81,374,811
70,129,072
Diluted weighted average shares outstanding
81,105,536
81,401,599
81,353,644
81,393,708
70,164,558
PERFORMANCE RATIOS
Return on average assets
0.82
%
0.69
%
0.87
%
0.87
%
0.26
%
Return on average common equity
7.68
6.42
8.53
9.20
2.09
Net interest margin
2.55
2.39
2.62
2.56
2.73
Efficiency ratio
58.31
65.04
57.21
56.61
77.74
WAFD, INC. AND SUBSIDIARIESNON-GAAP MEASURES(UNAUDITED)
Non-GAAP Financial Measures
The Company has presented certain non-GAAP measures within this document to remove the effect of certain income and expenses to provide investors with information useful in understanding our financial performance. The Company considers these items to be non-operating in nature as they are items that management does not consider indicative of the Company's on-going financial performance. We believe that the tables presented reflect our on-going performance in the periods presented and, accordingly, are useful to consider in addition to our GAAP financial results. These measures should not be considered a substitution for GAAP basis disclosures.
Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way they are calculated herein. Because of this, our non-GAAP financial measures may not be comparable to similar measures used by others. We caution investors not to place undue reliance on such measures. See the following unaudited tables for reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures.
Tangible Measures
March 31,2025
December 31,2024
September 30,2024
June 30,2024
March 31,2024
(Unaudited - In thousands, except for ratio data)
Shareholders' equity - GAAP
$
3,032,620
$
3,021,636
$
3,000,300
$
2,958,339
$
2,921,906
Less intangible assets - GAAP
446,660
449,213
448,425
452,255
453,539
Tangible shareholders' equity
$
2,585,960
$
2,572,423
$
2,551,875
$
2,506,084
$
2,468,367
Less preferred stock - GAAP
300,000
300,000
300,000
300,000
300,000
Tangible common shareholders' equity
$
2,285,960
$
2,272,423
$
2,251,875
$
2,206,084
$
2,168,367
Total assets - GAAP
$
27,644,637
$
27,684,454
$
28,060,330
$
28,580,800
$
30,140,288
Less intangible assets - GAAP
446,660
449,213
448,425
452,255
453,539
Tangible assets
$
27,197,977
$
27,235,241
$
27,611,905
$
28,128,545
$
29,686,749
Tangible Metrics
Common shares outstanding - GAAP
80,758,674
81,373,760
81,220,269
81,157,173
81,405,391
Tangible common equity per share
$
28.31
$
27.93
$
27.73
$
27.18
$
26.64
Tangible equity to tangible assets
9.51
%
9.45
%
9.24
%
8.91
%
8.31
%
WAFD, INC. AND SUBSIDIARIES
NON-GAAP MEASURES
(UNAUDITED)
Three Months Ended
Average Tangible Measures
March 31,2025
December 31,2024
September 30,2024
June 30, 2024
March 31,2024
(Unaudited - In thousands, except for ratio data)
Average shareholders' equity - GAAP
$
3,039,021
$
3,015,197
$
2,996,093
$
2,947,056
$
2,638,483
Less average preferred stock
- GAAP
300,000
300,000
300,000
300,000
300,000
Less average intangible assets - GAAP
448,272
447,754
451,204
453,142
360,251
Average tangible common equity
$
2,290,749
$
2,267,443
$
2,244,889
$
2,193,914
$
1,978,232
Average Assets - GAAP
$
27,371,320
$
27,504,576
$
28,000,482
$
29,703,337
$
24,907,376
Less average intangible assets - GAAP
448,272
447,754
451,204
453,142
360,251
Average tangible assets
$
26,923,048
$
27,056,822
$
27,549,278
$
29,250,195
$
24,547,125
Average Tangible Metrics
Net income - GAAP
56,252
47,267
61,140
64,560
15,888
Net income available to common shareholders' - GAAP
52,596
43,611
57,484
60,904
12,232
Return on tangible common equity
9.18
%
7.69
%
10.24
%
11.10
%
2.47
%
Return on tangible assets
0.84
%
0.70
%
0.89
%
0.88
%
0.26
%
WAFD, INC. AND SUBSIDIARIES
NON-GAAP MEASURES
(UNAUDITED)
Three Months Ended
Net Income Adjusted for Acquisition Expenses and Other Non-Operating Items
March 31,2025
December 31,2024
September 30,2024
June 30, 2024
March 31,2024
(Unaudited - In thousands, except for ratio data)
Interest income
LBC Hedge Valuation Adj
$
—
$
3,933
$
—
$
—
$
—
Non-interest income
Distribution received on LBC equity method investment
$
(257
)
$
(279
)
$
(288
)
$
(299
)
$
(287
)
(Gain)Loss on WaFd Bank equity method investment
(155
)
48
(896
)
(748
)
2,195
Total non-interest income
$
(412
)
$
(231
)
$
(1,184
)
$
(1,047
)
$
1,908
Non-interest expense
Acquisition-related expenses
$
—
$
239
$
(1,602
)
$
2,285
$
25,120
Non-operating expenses:
Restructuring Charges
—
5,390
—
—
—
FDIC Special Assessment
—
—
(216
)
—
1,800
Legal and Compliance
—
—
(182
)
—
3,000
Charitable Donation
—
—
—
—
2,000
—
5,390
(398
)
—
6,800
Total non-interest expense
$
—
$
5,629
$
(2,000
)
$
2,285
$
31,920
Net Income - GAAP
$
56,252
$
47,267
$
61,140
$
64,560
$
15,888
Preliminary ACL provision on LBC loans
—
—
—
—
16,000
Interest income adjustments
—
3,933
—
—
—
Non-interest income adjustments
(412
)
(231
)
(1,184
)
(1,047
)
1,908
Non-interest expense adjustments
—
5,629
(2,000
)
2,285
31,920
REO adjustments
199
(429
)
83
124
1,315
Income tax adjustment
47
(1,918
)
751
(299
)
(12,274
)
Net Income - non-GAAP
$
56,086
$
54,251
$
58,790
$
65,623
$
54,757
Dividend on preferred stock
3,656
3,656
3,656
3,656
3,656
Net Income available to common shareholders' - non-GAAP
$
52,430
$
50,595
$
55,134
$
61,967
$
51,101
Basic weighted average number
81,061,206
81,294,227
81,208,683
81,374,811
70,129,072
Diluted weighted average
81,105,536
81,401,599
81,353,644
81,393,708
70,164,558
Basic EPS - non-GAAP
$
0.65
$
0.62
$
0.68
$
0.76
$
0.73
Diluted EPS - non-GAAP
0.65
0.62
0.68
0.76
0.73
WAFD, INC. AND SUBSIDIARIES
NON-GAAP MEASURES
(UNAUDITED)
Three Months Ended
Adjusted Efficiency Ratio
March 31,2025
December 31,2024
September 30,2024
June 30, 2024
March 31,2024
(Unaudited - In thousands, except for ratio data)
Efficiency ratio - GAAP
58.3
%
65.0
%
57.2
%
56.6
%
77.7
%
Net interest income - GAAP
$ 160,910
$ 155,431
$ 172,812
$ 177,186
$ 158,597
Total interest income adjustments
—
3,933
—
—
—
Net interest income - non-GAAP
$ 160,910
$ 159,364
$ 172,812
$ 177,186
$ 158,597
Non-interest expense - GAAP
$ 104,832
$ 111,311
$ 107,941
$ 110,079
$ 133,712
Less merger related expenses
—
239
(1,602
)
2,285
25,120
Less non-operating expenses
—
5,390
(398
)
—
6,800
Non-interest Expenses -
non-GAAP
$ 104,832
$ 105,682
$ 109,941
$ 107,794
$ 101,792
Non-interest income - GAAP
$ 18,881
$ 15,702
$ 15,878
$ 17,255
$ 13,392
Total other income
(412
)
(231
)
(1,184
)
(1,047
)
1,908
Non-interest income -
non-GAAP
$ 18,469
$ 15,471
$ 14,694
$ 16,208
$ 15,300
Net Interest Income -
non-GAAP
$ 160,910
$ 159,364
$ 172,812
$ 177,186
$ 158,597
Non-interest income -
non-GAAP
18,469
15,471
14,694
16,208
15,300
Total Income - non-GAAP
$ 179,379
$ 174,835
$ 187,506
$ 193,394
$ 173,897
Adjusted Efficiency Ratio
58.4
%
60.4
%
58.6
%
55.7
%
58.5
%
WAFD, INC. AND SUBSIDIARIES
NON-GAAP MEASURES
(UNAUDITED)
Three Months Ended
Adjusted ROA and ROE
March 31,2025
December 31,2024
September 30,2024
June 30, 2024
March 31,2024
(Unaudited - In thousands, except for ratio data)
Reported:
Net Income - GAAP
$
56,252
$
47,267
$
61,140
$
64,560
$
15,888
Net income available to common shareholders' - GAAP
$
52,596
$
43,611
$
57,484
$
60,904
$
12,232
Average Assets
27,371,320
27,504,576
28,000,482
29,703,337
24,907,376
Return on Assets
0.82
%
0.69
%
0.87
%
0.87
%
0.26
%
Average Common Equity
$
2,739,021
$
2,715,197
$
2,696,093
$
2,647,056
$
2,338,483
Return on common equity
7.68
%
6.42
%
8.53
%
9.20
%
2.09
%
Adjusted:
Net Income - non-GAAP
$
56,086
$
54,251
$
58,790
$
65,623
$
54,757
Net income available to common shareholders' - non-GAAP
$
52,430
$
50,595
$
55,134
$
61,967
$
51,101
Average Assets
27,371,320
27,504,576
28,000,482
29,703,337
24,907,376
Adjusted Return on Assets
0.82
%
0.79
%
0.84
%
0.88
%
0.88
%
Average Common Equity
2,739,021
2,715,197
2,696,093
2,647,056
2,338,483
Adjusted Return on common equity
7.66
%
7.45
%
8.18
%
9.36
%
8.74
%
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.
This press release contains statements about the Company's future that are not statements of historical or current fact. These statements are "forward-looking statements" for purposes of applicable securities laws and are based on current information and/or management's good faith belief as to future events. Words such as "expects," "anticipates," "believes," "estimates," "intends," "forecasts," "may," "potential," "projects," and other similar expressions or future or conditional verbs such as "will," "should," "would," and "could" are intended to help identify such forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes any such statements are based on reasonable assumptions, forward-looking statements should not be read as a guarantee of future performance, and you are cautioned not to place undue reliance on any forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statement.
By their nature, forward-looking statements involve inherent risk and uncertainties including the following risks and uncertainties, and those risks and uncertainties more fully discussed under "Risk Factors" in the Company's September 30, 2024 10-K and Quarterly Reports on Form 10-Q, which could cause actual performance to differ materially from that anticipated by any forward-looking statements. Forward-looking statements relating to our financial condition or operations are subject to risks and uncertainties related to (i) fluctuations in interest rate risk and market interest rates, including the effect on our net interest income and net interest margin; (ii) current and future economic conditions, including the effects of declines in the real estate market, tariffs, high unemployment rates, inflationary pressures, a potential recession, the monetary policies of the Federal Reserve, and slowdowns in economic growth either nationally or locally in some or all of the areas in which we conduct business; (iii) financial stress on borrowers (consumers and businesses) as a result of higher interest rates or an uncertain economic environment; (iv) changes in deposit flows or loan demands; (v) our ability to identify and address cyber-security risks, including security breaches, "denial of service attacks," "hacking" and identity theft; (vi) the Company's exit from the mortgage lending business; (vii) the effects of natural or man-made disasters, calamities, or conflicts, including terrorist events and pandemics (such as the COVID-19 pandemic) and the resulting governmental and societal responses; (viii) the results of examinations by regulatory authorities, including a "Needs to Improve" CRA rating, which may impose restrictions or penalties on the Company's activities; (ix) expectations regarding key growth initiatives and strategic priorities; (x) global economic trends, including developments related to Ukraine and Russia, and the evolving conflict in the Middle East, and related negative financial impacts on our borrowers; (xi) litigation risks resulting in significant expenses, losses and reputational damage; (xii) the impact of bank failures or adverse developments at other banks and related negative press about regional banks and the banking industry in general; and (xiii) other economic, competitive, governmental, environmental, regulatory, and technological factors affecting our operations, pricing, products and services.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250411165329/en/
Contacts
WaFd, Inc.425 Pike Street, Seattle, WA 98101Brad Goode, SVP, Chief Marketing [e-mail]