Latest news with #WaFdBank
Yahoo
18-05-2025
- Business
- Yahoo
If the cost of food spikes, blame Washington Democrats
When Democratic lawmakers last December accidentally leaked their plans to increase taxes this legislative session, they said they needed to 'identify the villain' — a villain they assured Washingtonians was the ultrawealthy and some of 'the biggest, most profitable corporations on the planet.' Now that Democrats have passed their $9.4 billion tax increase — the largest in state history — it's clear who their villain is, but it's not the ultrawealthy or big business as advertised. After all the Democrats' talk about who needs to pay what they owe, it turns out they were talking about you. At a time when Washingtonians cite the unaffordability of housing, gas, child care, health care and groceries as their top concern in poll after poll, Democrats' new taxes will increase the cost of housing, fuel, child care, hospital care – and will add $100 million to the cost of Washingtonians' food. Making food more expensive is especially cruel: Essentials like food cannot be cut from household budgets. That's why, as representatives of local grocers and restaurant owners, we strongly urge Gov. Bob Ferguson to veto the Democrats' tax increase on food, which will be devastating to lower-income households. It represents an unfathomable abdication of concern for working families on the part of the governor's Democratic colleagues. How did this happen? Democrats said they intended to 'make our extremely bad, regressive tax system better than it is now,' using chart after chart to show how little Washington taxes wealthy individuals, broadcasting data from the Institute of Taxation and Economic Policy. Yet when it came time to evaluate who would bear the burden of their tax proposals — those at the top or the bottom of the income scale — Democrats quickly turned a deaf ear to their friends at the Institute of Taxation and Economic Policy. A recent post reminded Democrats not to 'settle for a more regressive revenue raiser,' warning that, with unwise choices, 'the state risks backsliding … and moving further away from a tax system designed with equity and sustainability in mind.' So what were Democrats' tax equity ideas? Achieving tax fairness by taxing wealth greater than $50 million? Democrats abandoned that idea. Achieving tax fairness by adding a payroll tax on income for employees at large companies who earn more than $176,100? They abandoned that idea, too. Both ideas were rejected after an intense lobbying campaign on the part of Washington's corporate leaders, including from Amazon, WaFd Bank, Weyerhaeuser and dozens more. Microsoft, leading the way, even pledged $1 million to defeat a payroll tax at the ballot. Democrats then said they could achieve tax fairness by raising the B&O tax on businesses large and small — including more than doubling the tax on business with revenues over $250 million per year. The Institute of Economic Tax Policy called this idea 'fundamentally different from a tax fairness perspective' from the payroll tax proposal, which would only impact the top 20% of income earners. The B&O tax proposal would burden the bottom 80% of income earners. Democrats chose this one. Now (paying close attention to the corporations mentioned above), Democrats did create some exemptions in their plan. These include computing, financial services and timber — as well as airplane sales and the sale of oil. Democrats declined to clarify their rationale for these exemptions. But, for the very same reasons cited by the Institute of Economic Tax Policy — namely, that the B&O tax is 'a sales tax by another name' — we urged Democrats to exempt food wholesalers and distributors, too, offering amendments on five separate occasions. Democrats rejected them. Restaurants and independent grocers play a vital role in ensuring access to fresh food for Washington's communities. But we cannot pledge $1 million to beat this tax increase at the ballot. When suppliers' costs go up, our members' costs go up, and they simply don't have the margins to absorb these costs themselves. The average restaurant in Washington operates on a 1.5% margin, while the average independent grocer operates on a 1.1% margin. Washington's menu prices are 12% higher than the national average. Our grocery costs are the fourth highest in the nation. Democrats' tax increase on our industries represents one-third of the average restaurant's margin and nearly half of the average independent grocer's margin. This is neither equitable nor sustainable. Lawmakers missed their chance this year to rein in runaway spending, choosing instead to add to out-of-control costs already overburdening Washington families. Yet it's not too late to undo their most unconscionable decision of all making food more expensive for Washingtonians. Gov. Ferguson, please act. Anthony Anton, of Tacoma, is president and CEO of the Washington Hospitality Association. Tammie Hetrick, of Olympia, is president and CEO of the Washington Food Industry Association.
Business Wire
13-05-2025
- Business
- Business Wire
WaFd, Inc. Announces Cash Dividend of 27 cents per share
SEATTLE--(BUSINESS WIRE)--Today, the Board of Directors of WaFd, Inc. (Nasdaq: WAFD) (the 'Company'), announced a regular quarterly cash dividend of 27 cents per share. The dividend will be paid June 6, 2025, to common shareholders of record as of May 23, 2025. This will be the Company's 169 th consecutive quarterly cash dividend. WaFd, Inc. Announces Cash Dividend of 27 cents per share Share WaFd, Inc. is the parent company of Washington Federal Bank, a federally insured Washington state chartered commercial bank dba WaFd Bank that operates branches in Washington, Oregon, Idaho, Utah, Nevada, Arizona, Texas, New Mexico, and California. Established in 1917, the bank provides consumer and commercial deposit accounts, financing for small- to middle-market businesses, commercial real estate, residential real estate, and insurance products through a subsidiary. As of March 31, 2025, the Company operated 209 branches and reported $27.6 billion in assets, $21.4 billion in deposits and $3.0 billion in shareholders' equity. 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. Statements in this press release that speak to the Company's future performance or financial condition constitute 'forward-looking statements' as defined by federal law. Such statements are based on present information the Company has related to its present business circumstances. Although the Company believes any such statements are based on reasonable assumptions, there is no assurance that actual or future outcomes will not be materially different. Any such statements are made in reliance on the 'safe harbor' protections provided under the Private Securities Litigation Reform Act of 1995. Additional information about risks and additional matters that could lead to material changes in the Company's performance or financial condition are contained in the Company's annual and quarterly reports filed with the SEC, including under 'Risk Factors' in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended September 30, 2024. To find out more about WaFd Bank, or to find a copy of our 10-K or our other SEC filings, please visit our website
Yahoo
12-04-2025
- Business
- Yahoo
WaFd Announces Quarterly Earnings Per Share of $0.65
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 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 Contacts WaFd, Inc.425 Pike Street, Seattle, WA 98101Brad Goode, SVP, Chief Marketing
