8-K
WAFD INC (WAFD)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________
FORM 8-K
____________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 16, 2025
____________________________________
WAFD, INC.
(Exact name of registrant as specified in its charter)
____________________________________
| Washington | 001-34654 | 91-1661606 | |
|---|---|---|---|
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | |
| 425 Pike Street | Seattle | Washington | 98101 |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code (206) 624-7930
Not Applicable
(Former name or former address, if changed since last report)
____________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $1.00 par value per share | WAFD | NASDAQ Stock Market |
| Depositary Shares, Each Representing a 1/40th Interest in a Share of 4.875% Fixed Rate Series A Non-Cumulative Perpetual Preferred Stock | WAFDP | NASDAQ Stock Market |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x
| Item 2.02 | Results of Operations and Financial Condition |
|---|
On January 16, 2025, WaFd, Inc. (the "Company") announced by press release its earnings for the quarter ended December 31, 2024. A copy of the press release is attached to this filing as Exhibit 99.1. A copy of the December 31, 2024 Fact Sheet, which presents certain detailed financial information about the Company, is attached as Exhibit 99.2. This information is being furnished under Item 2.02 (Results of Operations and Financial Condition) of Form 8-K.
| Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers |
|---|
Effective January 16, 2025, Mr. James Endrizzi, Executive Vice President and Chief Commercial Banker of WaFd, Inc. and its banking subsidiary, WaFd Bank, will be transitioning to a new role as the Senior Vice President and Regional Director of Commercial Real Estate Banking for Utah and Idaho, where he will focus on commercial real estate lending in the Utah and Idaho regions. In connection with this change, Mr. Endrizzi will no longer sit on the Executive Management Committee of the Company and will no longer be an executive officer. Mr. Endrizzi’s duties as Chief Commercial Banker have been reassigned to other officers of the Bank.
In connection with Mr. Endrizzi’s change in duties, and pursuant to a Transition Agreement entered into by Mr. Endrizzi and the Company, he will no longer be a participant in the short-term or long-term incentive plans applicable to executive officers. Mr. Endrizzi will additionally forfeit his right to receive any bonus payout under the short-term incentive plan applicable to executive officers for fiscal 2025, and will forfeit unvested awards of 37,841 shares of restricted stock and performance shares granted under the Company’s 2020 Incentive Plan. Mr. Endrizzi’s Change in Control Agreement with the Company and his Indemnification Agreements with the Company and WaFd Bank have also been terminated. Mr. Endrizzi will remain a participant in the WaFd Bank Supplemental Executive Retirement Plan (“SERP”) and continue to hold the units previously awarded to him under the SERP, subject to the vesting and other requirements of the SERP. In connection with his new role, Mr. Endrizzi’s base salary will be adjusted to be consistent with other non-executives in similar positions at the Bank, and he will be entitled to participate in the same benefit programs as are available to other non-executives of the Company.
The foregoing description of the Transition Agreement is qualified in its entirety by reference to the full text of the Transition Agreement, a copy of which is filed herewith as Exhibit 10.1 and is incorporated herein by reference.
| Item 7.01 | Regulation FD Disclosure |
|---|
As described in the Company’s January 16, 2025 press release, the Company announced that its wholly owned banking subsidiary Washington Federal Bank (the “Bank”) will no longer originate single family mortgages and home equity lines of credit (“HELOCs”). The Bank will continue to hold its existing single family mortgages and HELOCs. The information set forth in this Item 7.01 and in the press release is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended.
| Item 9.01 | Financial Statements and Exhibits |
|---|---|
| 10.1 | Transition Agreement and General Release |
| --- | --- |
| 99.1 | Press release dated January 16, 2025 |
| 99.2 | Fact Sheet as of December 31, 2024 |
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, 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.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| January 17, 2024 | WAFD, INC. | |
|---|---|---|
| By: | /s/ KELLI J. HOLZ | |
| Kelli J. Holz | ||
| Executive Vice President<br>and Chief Financial Officer |
5
transitionagreementandge
Transition Agreement Employee’s Initials __JE_______ Page 1 of 3 TRANSITION AGREEMENT AND GENERAL RELEASE This Transition Agreement and General Release (“Agreement”) is between James Endrizzi (“Employee”), Washington Federal Bank dba WaFd Bank (the “Bank”) and WaFd, Inc. (the Bank and WaFd., Inc. are collectively referred to as the “Company”). Employee and the Company are collectively referred to as the “Parties”. • Employee is the Company’s Executive Vice President and Chief Commercial Banker. • Company and Employee have determined it is in the best interests of the Parties for Employee to voluntarily transition to the non-executive role with the Company (the “Transition”). • Employee wishes to continue his employment with the Company and Company wishes to retain Employee in a non-executive role with different responsibilities. • Both Employee and the Company desire to resolve all matters, known or unknown, arising out of the Transition according to the terms, conditions and consideration included in the Agreement. • This Agreement is dated January 16, 2025. Agreement Now, therefore, in consideration of the mutual promises, obligations, covenants and benefits herein contained, and intending to be legally bound by the terms of this Agreement, the Parties agree as follows: 1.1 Recitals. The Recitals set forth above are true and correct, incorporated as part of this Agreement, and shall be binding on the Parties upon mutual execution of this Agreement. 1.2. Transition. The Parties have agreed that Employee will transition to a new non-executive role of Senior Vice President and Senior Managing Director of Commercial Real Estate Banking for Utah and Idaho, (the “Position”) effective January 16, 2024 (the “Transition Date”). The terms of Employee’s employment in the Position, including compensation and benefits, will be set forth in a separate offer of employment letter delivered to Employee by Company. 1.3. Supplemental Executive Retirement Plan (“SERP”). For so long as Employee remains in the Position or is otherwise employed by the Company, Employee shall remain a participant in the Company’s SERP subject to the terms and conditions of the SERP plan document in effect as of the effective date of this Agreement. 1.4. Forfeiture of Unvested Stock. Employee will forfeit 15,191 shares of unvested Company restricted stock and 22,652 shares of unvested restricted performance stock grants. 1.5. Cancellation of Change in Control Agreement. Effective January 16, 2025, the Parties agree to mutually terminate and cancel Employee’s Change in Control Agreement with the Company, which will be of no further force or effect, and the rights and obligations of each of the Parties thereunder shall terminate. Employee acknowledges and agrees that neither the Transition nor the Position do not
Transition Agreement Employee’s Initials __JE_______ Page 2 of 3 constitute a termination for “Good Reason” or a termination without “Cause” and/or any other term with any similar meaning or import under the Employee’s Change in Control Agreement. 1.6. Cancellation of Indemnification Agreements. Effective, January 16, 2025, the Parties agree to mutually terminate and cancel the Indemnification Agreements between the Employee and the Company, which will be of no further force or effect, and the rights and obligations of each of the Parties thereunder shall terminate. 1.7. Employee’s Waiver and General Release. (a) Employee hereby releases and forever discharges any and all of the “Released Parties” (defined below) from any and all claims of any kind, known or unknown, which arose on or before the date that he signed the Agreement, to the fullest extent allowed by law, including, without limitation, claims for: • wrongful termination or constructive discharge, including claims based on violation of public policy or an implied covenant of good faith and fair dealing; promissory estoppel or detrimental reliance; breach of fiduciary duty; breach of agreements, representations, policies or practices related to Employee’s relationship with any Released Party or based on any legal obligation owed by any Released Party; • violation of federal, state, or local laws, ordinances, or executive orders prohibiting discrimination, harassment or retaliation, or requiring accommodation, on the basis of any legally protected characteristic or activity; • compensation of any kind whatsoever, including, but not limited to, claims for salary, wages, overtime, bonuses, commissions, incentive compensation, severance, sick or other leave, vacation, or other paid time off; • monetary or equitable relief; • violations of all federal, state and local laws. (b) “Released Party” or “Released Parties” means Washington Federal Bank, dba WaFd Bank, and WaFd, Inc., any partnerships or joint ventures of such entities; the benefit plans of each such entities; and with respect to each such entity, all past, present and future employees, managers, supervisors, fiduciaries, directors, trustees, officers, owners, shareholders, partners, members, representatives, agents, contractors, attorneys, successors, assigns, insurers, whether acting in their individual or official capacities, and any other persons acting by, through, under, or in concert with any of the persons or entities listed in this paragraph; and with respect to each such entity and individual, all predecessors, successors and assigns. 1.8. Non-Admission. This Agreement shall not be construed as an admission by Employee or any Released Party of any liability, breach of any agreement, or violation of any statute, law, or regulation, nor shall it be construed as an admission of any deficient performance or breach of any professional obligation. 1.9. Governing Law. The Agreement is governed by the laws of the State of Idaho, without giving effect to the rules governing the conflicts of laws, and without the aid of any canon, custom, or rule of law requiring construction against the drafter.
Transition Agreement Employee’s Initials __JE_______ Page 3 of 3 1.10. Headings Not Controlling. The headings in the Agreement are for convenience only and shall not affect the meaning of the terms as set out in the text. 1.11. Attorney’s Fees. In any dispute involving the Agreement, each Party shall be responsible for their own attorney’s fees and costs. 1.12 Severability. It is further understood and agreed that if any of the provisions of the Agreement are held to be invalid or unenforceable, the remaining provisions shall nevertheless continue to be valid and enforceable. 1.13. Complete Agreement. This Agreement represents and contains the entire understanding between the Parties in connection with the subject matter of this Agreement. It is expressly acknowledged and recognized by all Parties that there are no oral or written collateral agreements, understandings or representations between the Parties other than as contained in this document. Any modifications to the Agreement must be in writing and signed by both Parties to be effective. 1.14. Counterparts & E-Signature. This Agreement may be executed in one or more counterparts, each of which is deemed an original and equally admissible in evidence. All counterparts may be consolidated into one agreement, binding on all parties. If any party is signing this document electronically via DocuSign, or other mutually secure document-signing software, the Parties agree that each such electronic signature is intended to have the same force and effect as if it was hand-written and signed in ink. Agreed by: WASHINGTON FEDERAL BANK; WAFD, INC. /s/ Brent Beardall Brent J. Beardall President & CEO Date: 1/16/2025 EMPLOYEE /s/ James Endrizzi James Endrizzi Date: 1/16/2025
Document
Exhibit 99.1
| Thursday, January 16, 2025<br><br>FOR IMMEDIATE RELEASE |
|---|
WaFd Announces Quarterly Earnings Per Share Of $0.54
Q1 Highlights
| $47 Million | $0.54 | 0.69% | 6.42% | |||||
|---|---|---|---|---|---|---|---|---|
| Net Income | Diluted Earnings per Common Share | Return on Average Assets | Return on Average Common Equity | Net Interest Income and NIM | ■$155 million net interest income for the quarter compared to $173 million in Q4 FY24.<br><br>■Net interest margin at 2.39% for the quarter compared to 2.62% for Q4 FY24. | Credit Quality | ■Non-performing assets at 0.3% of total assets - similar to prior quarter.<br><br>■No provision booked for the quarter and NCOs were minimal. | |
| --- | --- | --- | --- | |||||
| Non-Interest Income and Expense | ■Non-interest expense up due to $5.4 million in one-time restructuring charges, partially offset by lower FDIC insurance premiums due to a smaller balance sheet. | Shareholder Returns and Stock Activity | ■On December 6, 2024, the Company paid a cash dividend of $0.26 per share, 167th consecutive quarterly dividend paid. |
SEATTLE, WASHINGTON – WaFd, Inc. (Nasdaq: WAFD) (the "Company"), parent company of Washington Federal Bank ("WaFd Bank" or the "Bank"), today announced quarterly earnings of $47,267,000 for the quarter ended December 31, 2024, a decrease of 23% from net earnings of $61,140,000 for the quarter ended September 30, 2024 and a decrease of 19% from net earnings of $58,453,000 for the quarter ended December 31, 2023. After the effect of dividends on preferred stock, net income available for common shareholders was $0.54 per diluted share for the quarter ended December 31, 2024, compared to $0.71 per diluted share for the quarter ended September 30, 2024, a $0.17 or 24% decrease, and $0.85 per diluted share for the quarter ended December 31, 2023, a $0.31 or 36% decrease in fully diluted earnings per common share. The current quarter results reflect one-time charges of $5,390,000 as a result of restructuring activities described below. After adjusting for these charges and other non-operating items, earnings per share for the quarter was $0.62 per diluted share. For a reconciliation, see the Non-GAAP Financial Measures section below.
| In the first quarter of fiscal 2025 our results were impacted by greater than expected margin compression. On a linked quarter basis our margin contracted from 2.62% to 2.39%. Excluding a valuation adjustment to hedges obtained in the Luther Burbank acquisition, the Q1 margin would have been 2.45%. The Federal Reserve started reducing interest rates with a 50 basis point cut on September 18, 2024, followed by two 25 basis point cuts in October and December. With each cut, our variable rate assets (loans and investments) repriced quickly, while the repricing of our liabilities has lagged, causing margin compression. On a linked quarter basis, the yield on earning assets declined by 36 basis points, while the yield on paying liabilities decreased by only 14 basis points. We are pleased to report that credit quality remains strong with minimal net charge-offs and delinquencies of only 0.30%. Capital has grown nicely over the last three quarters, with tangible common equity to tangible assets increasing from 8.31% to 9.45% since our acquisition in March of last year. | | --- || Quarterly Earnings Release Q1 2025 | 1 | | --- | --- |
WaFd Inc. Announces First Quarter Results
Today we are announcing a significant shift in focus for our business model. After over 100 years of making home loans, we are exiting the single-family mortgage lending market and have recorded a restructuring expense of $5.4 million this quarter. As a result, by the end of June 2025, we anticipate annual expense savings of approximately $17 million. Importantly, we will retain all existing home loans and HELOC’s on our books, ensuring no disruption for our current customers. We have come to this conclusion after thoughtful deliberation for two primary reasons. First, home loans are seen as a commodity with nearly 70% of originations sold to US government sponsored enterprises like Freddie Mac and Fannie Mae, which has caused profitability to decrease and credit risk to increase. Second, technology has made it easy for consumers to refinance (which is a good thing for homeowners), but it increases the interest rate risk for banks that hold mortgages. Our aim is to always offer products and services to our customers where WaFd Bank can add value, and we have concluded that we no longer do so in the mortgage sector. Exiting mortgage lending and right sizing other support areas will result in an 8% reduction in our workforce.
While not the primary factor, but certainly a contributing factor, the regulatory burden associated with mortgage lending also played a role in our decision. Recently we were notified that WaFd Bank has received an overall “Needs to Improve” rating regarding our Community Reinvestment Act (“CRA”) compliance because we did not make enough loans to low and moderate income ("LMI") borrowers and communities. For the individual components of the exam, we received a “High Satisfactory” rating in both the investment and service tests, and a “Needs to Improve” on the lending test. We are committed to serving all of our communities and have done so as a portfolio lender since 1917. Today, we compete against government-sponsored financing programs with less stringent underwriting than we are comfortable offering as a lender that retains all loans on our balance sheet. For example, there are multiple government programs that require no down payment, and our performance is being compared to lenders who offer these programs and originate to sell. We strongly disagree with this rating and plan to appeal this conclusion.
Through our involvement in the PPP program during the Pandemic, we have seen just how important small business is to us, and to the communities we serve, and how underserved many small businesses are when it comes to their banking needs. Technology is excellent and abundant; what small businesses need is a trusted advisor to help them navigate complex financial matters and exercise professional skepticism. We aim to fill that need. Going forward, in addition to serving consumers, WaFd will concentrate its focus, offerings and efforts on business banking and commercial real estate lending. We will also begin offering SBA lending products that will allow us to broaden our offerings for small businesses.
We have also re-aligned our management structure. On the executive team, Cathy Cooper will transition to the role of Chief Experience Officer, responsible for enhancing overall client experience through digital channels and in person processes. James Endrizzi will step aside from his current role and will assume leadership responsibility for Commercial Real Estate in both Utah and Nevada in a non-executive role. The Business Bank Division will be led by Michelle Coons, Dan LaCoste and Doron Joseph. The Commercial Real Estate Division will be led by Tony Barnard and Tom Pozarycki. All five of these leaders have been promoted to the role of Executive Director but are not deemed executive officers under SEC rules.
Here at WaFd, we strive to be a bank with heart. That does not mean we ignore issues or avoid difficult decisions. We firmly believe the actions being announced today will position us to better serve our clients and deliver solid returns to our shareholders for years to come."
Brent Beardall
President and CEO of WaFd Bank
The Company acquired Luther Burbank Corporation ("LBC") on February 29, 2024. As such, the Company's financial results are not directly comparable to the results of periods prior to that date. The following table provides the Company's financial scorecard for the last five quarters:
| Quarterly Earnings Release Q1 2025 | 2 |
|---|
WaFd Inc. Announces First Quarter Results
| As of | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (In thousands, except share and ratio data) | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | ||||||||||
| BALANCE SHEET | |||||||||||||||
| Cash | $ | 1,507,735 | $ | 2,381,102 | $ | 2,492,504 | $ | 1,505,771 | $ | 1,144,774 | |||||
| Loans receivable, net | 21,060,501 | 20,916,354 | 20,873,919 | 20,795,259 | 17,584,622 | ||||||||||
| Allowance for credit losses ("ACL") | 225,022 | 225,253 | 225,324 | 225,077 | 201,820 | ||||||||||
| Loans held for sale | — | — | 468,527 | 2,993,658 | — | ||||||||||
| Available-for-sale securities, at fair value | 2,743,731 | 2,572,709 | 2,428,768 | 2,438,114 | 2,018,445 | ||||||||||
| Held-to-maturity securities, at amortized cost | 537,348 | 436,972 | 447,638 | 457,882 | 415,079 | ||||||||||
| Total investments | 3,281,079 | 3,009,681 | 2,876,406 | 2,895,996 | 2,433,524 | ||||||||||
| Total assets | 27,684,454 | 28,060,330 | 28,580,800 | 30,140,288 | 22,640,122 | ||||||||||
| Transaction deposits | 11,853,859 | 11,817,185 | 11,929,005 | 12,338,862 | 10,658,064 | ||||||||||
| Time deposits | 9,584,918 | 9,556,785 | 9,255,760 | 9,000,911 | 5,380,723 | ||||||||||
| Total deposits | 21,438,777 | 21,373,970 | 21,184,765 | 21,339,773 | 16,038,787 | ||||||||||
| Borrowings | 2,914,627 | 3,318,307 | 4,079,360 | 5,489,501 | 3,875,000 | ||||||||||
| Total shareholders' equity | 3,021,636 | 3,000,300 | 2,958,339 | 2,921,906 | 2,452,004 | ||||||||||
| Loans to customer deposits2 | 98.24 | % | 97.86 | % | 98.53 | % | 97.45 | % | 109.64 | % | |||||
| PROFITABILITY | |||||||||||||||
| Net income | $ | 47,267 | $ | 61,140 | $ | 64,560 | $ | 15,888 | $ | 58,453 | |||||
| Net income to common shareholders | 43,611 | 57,484 | 60,904 | 12,232 | 54,797 | ||||||||||
| Earnings per common share | 0.54 | 0.71 | 0.75 | 0.17 | 0.85 | ||||||||||
| Return on tangible common equity1 | 7.69 | % | 10.24 | % | 11.10 | % | 2.47 | % | 11.93 | % | |||||
| Return on tangible assets1 | 0.70 | % | 0.89 | % | 0.88 | % | 0.26 | % | 1.06 | % | |||||
| Net interest margin | 2.39 | % | 2.62 | % | 2.56 | % | 2.73 | % | 2.91 | % | |||||
| Efficiency ratio | 65.04 | % | 57.21 | % | 56.61 | % | 77.74 | % | 58.02 | % | |||||
| FINANCIAL HIGHLIGHTS | |||||||||||||||
| Common shareholders' equity per share | $ | 33.45 | $ | 33.25 | $ | 32.76 | $ | 32.21 | $ | 33.49 | |||||
| Tangible common shareholders' equity per share1 | 27.93 | 27.73 | 27.18 | 26.64 | 28.65 | ||||||||||
| Shareholders' equity to total assets | 10.91 | % | 10.69 | % | 10.35 | % | 9.69 | % | 10.83 | % | |||||
| Tangible shareholders' equity to tangible assets1 | 9.45 | % | 9.24 | % | 8.91 | % | 8.31 | % | 9.59 | % | |||||
| Common shares outstanding | 81,373,760 | 81,220,269 | 81,157,173 | 81,405,391 | 64,254,700 | ||||||||||
| Preferred shares outstanding | 300,000 | 300,000 | 300,000 | 300,000 | 300,000 | ||||||||||
| CREDIT QUALITY2 | |||||||||||||||
| ACL to gross loans | 1.00 | % | 1.01 | % | 1.00 | % | 1.00 | % | 1.04 | % | |||||
| Non-accrual loans to net loans | 0.34 | % | 0.33 | % | 0.29 | % | 0.29 | % | 0.26 | % | |||||
| Delinquencies to net loans | 0.30 | % | 0.25 | % | 0.22 | % | 0.36 | % | 0.33 | % | |||||
| Non-performing assets to total assets | 0.29 | % | 0.28 | % | 0.24 | % | 0.23 | % | 0.24 | % | |||||
| Criticized loans to net loans | 2.54 | % | 2.41 | % | 3.01 | % | 2.59 | % | 2.27 | % | |||||
| Substandard loans to net loans | 1.96 | % | 2.04 | % | 1.84 | % | 1.48 | % | 1.74 | % |
(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.
| Quarterly Earnings Release Q1 2025 | 3 |
|---|
WaFd Inc. Announces First Quarter Results
Balance Sheet Total assets were $27.7 billion as of December 31, 2024, compared to $28.1 billion at September 30, 2024, primarily due to cash used to reduce borrowings during the quarter. Net loans increased by $144 million, or 0.7%, and cash decreased $873 million, or 36.7%. Investment securities increased by $271 million, or 9.0%, during the quarter.
Customer deposits totaled $21.4 billion as of December 31, 2024, largely unchanged from September 30, 2024. Transaction accounts increased by $37 million or 0.3% during the quarter, while time deposits increased $28 million, also 0.3%. As of December 31, 2024, 55.3% of the Company’s deposits were transaction accounts, unchanged from September 30, 2024. Core deposits, defined as all transaction accounts and time deposits less than $250,000, totaled 78.3% of deposits at December 31, 2024. Deposits that are uninsured or not collateralized were 24.8% as of December 31, 2024, a slight increase from 24.0% as of September 30, 2024.
Borrowings totaled $2.9 billion as of December 31, 2024, down from $3.3 billion at September 30, 2024. The effective weighted average interest rate of borrowings was 3.62% as of December 31, 2024, compared to 3.93% at September 30, 2024.
Loan originations totaled $0.9 billion for the first fiscal quarter of 2025, compared to $0.9 billion of originations in the same quarter one year ago. Offsetting loan originations in each of these quarters were loan repayments of $1.0 billion and $1.2 billion, respectively. The Bank had intentionally slowed new loan production to temper net loan growth. Commercial loans represented 68% of all loan originations during the first fiscal quarter of 2025 and consumer loans accounted for the remaining 32%. Commercial loans are viewed by the Bank as preferable as they generally have floating interest rates and shorter durations. The period end interest yield on the loan portfolio was 5.44% as of December 31, 2024, a decrease from 5.62% as of September 30, 2024.
Credit Quality Credit quality continues to be monitored closely in light of the shifting economic and monetary environment. As of December 31, 2024, non-performing assets increased slightly to $79 million, or 0.3% of total assets, from $77 million, or 0.3%, at September 30, 2024. The change fiscal year to date is due primarily to non-accrual loans increasing by $2.9 million, or 4%, since September 30, 2024. Delinquent loans were slightly increased at 0.30% of total loans at December 31, 2024, compared to 0.25% at September 30, 2024. The allowance for credit losses (including the reserve for unfunded commitments) totaled $225 million as of December 31, 2024, and was 1.00% 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 $231,000 for the first fiscal quarter of 2025, compared to $70,000 for the prior quarter.
Profitability Net interest income was $155 million for the first fiscal quarter of 2025, a decrease of $17.4 million or 10% from the prior quarter. The decrease in net interest income was primarily due to a 36 basis point decrease in the rate earned on interest earning assets offset by a smaller 14 basis point decrease in the average rate paid on interest bearing liabilities. Interest income was also affected by a valuation adjustment to hedges obtained in the Luther Burbank acquisition resulting in a reduction of $3.9 million. Net interest margin was 2.39% in the first fiscal quarter of 2025 compared to 2.62% for the quarter ended September 30, 2024.
Total non-interest income was $15.7 million for the first fiscal quarter of 2025 compared to $15.9 million the prior quarter. The small decrease in other income compared to prior quarter was primarily due to slightly decreased commission income from the Bank's insurance subsidiary.
Total non-interest expense was $111.3 million in the first fiscal quarter of 2025, an increase of $3.4 million, or 3.1%, from the prior quarter. The overall increase is the result of the $5.4 million of restructuring costs incurred in the quarter offset by a decrease in FDIC premiums of $2.0 million in the same period. Increased expenses combined with decreased net interest income resulted in an increase in the Company’s efficiency ratio in the first fiscal quarter of 2025 to 65.0%, compared to 57.2% in the prior quarter.
The Company is also in the process of restarting its wholly owned technology subsidiary Pike Street Labs and will bring back in-house its custom online, mobile and digital account opening technology and teams from Archway Software. We anticipate this transition will aid us in becoming more efficient over time.
The Company did not record a provision for credit losses in the first fiscal quarter of 2025, consistent with the prior quarter. The lack of provision for loan losses in the quarter ended December 31, 2024 was primarily due to a stable loans receivable balance and stable credit performance.
Return on common shareholders' equity for the quarter ended December 31, 2024 was 6.42% compared to 8.53% for the quarter ended September 30, 2024. Adjusted for certain non-operating items relating to the merger and restructuring, return on equity for the quarter is 7.45% compared to adjusted return on equity of 8.18% the prior quarter. Return on
| Quarterly Earnings Release Q1 2025 | 4 |
|---|
WaFd Inc. Announces First Quarter Results
assets for the quarter ended December 31, 2024 was 0.7% compared to 0.9% for the previous quarter. Adjusted for certain non-operating items relating to the merger and restructuring, return on assets for the quarter is 0.8% compared to adjusted return on equity of 0.8% the prior quarter. For a reconciliation of these adjusted ratios, see the Non-GAAP Financial Measures section below.
Income tax expense totaled $13.0 million the first fiscal quarter of 2025, as compared to $13.2 million for the prior year same quarter. The effective tax rate for the quarter ended December 31, 2024 was 21.55% compared to 24.21% for the quarter ended September 30, 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 210 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.
#
| Quarterly Earnings Release Q1 2025 | 5 | ||||
|---|---|---|---|---|---|
| September 30, 2024 | |||||
| --- | --- | --- | --- | --- | --- |
| ASSETS | |||||
| Cash and cash equivalents | $ | 1,507,735 | $ | 2,381,102 | |
| Available-for-sale securities, at fair value | 2,743,731 | 2,572,709 | |||
| Held-to-maturity securities, at amortized cost | 537,348 | 436,972 | |||
| Loans receivable, net of allowance for loan losses of 204,522 and 203,753 | 21,060,501 | 20,916,354 | |||
| Interest receivable | 103,147 | 102,827 | |||
| Premises and equipment, net | 248,924 | 247,901 | |||
| Real estate owned | 3,316 | 4,567 | |||
| FHLB stock | 128,396 | 95,617 | |||
| Bank owned life insurance | 269,473 | 267,633 | |||
| Intangible assets, including goodwill of 414,722 and 411,360 | 449,213 | 448,425 | |||
| Deferred tax assets, net | 111,830 | 119,248 | |||
| Other assets | 520,840 | 466,975 | |||
| $ | 27,684,454 | $ | 28,060,330 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
| Liabilities | |||||
| Transaction deposits | $ | 11,853,859 | $ | 11,817,185 | |
| Time deposits | 9,584,918 | 9,556,785 | |||
| Total customer deposits | 21,438,777 | 21,373,970 | |||
| Borrowings | 2,863,675 | 3,267,589 | |||
| Junior subordinated debentures | 50,952 | 50,718 | |||
| Advance payments by borrowers for taxes and insurance | 20,188 | 61,330 | |||
| Accrued expenses and other liabilities | 289,226 | 306,423 | |||
| 24,662,818 | 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; 154,247,734 and 154,007,429 shares issued; 81,373,760 and 81,220,269 shares outstanding | 154,248 | 154,007 | |||
| Additional paid-in capital | 2,154,929 | 2,150,675 | |||
| Accumulated other comprehensive income (loss), net of taxes | 53,353 | 55,851 | |||
| Treasury stock, at cost; 72,873,974 and 72,787,160 shares | (1,642,480) | (1,639,131) | |||
| Retained earnings | 2,001,586 | 1,978,898 | |||
| 3,021,636 | 3,000,300 | ||||
| $ | 27,684,454 | $ | 28,060,330 |
All values are in US Dollars.
| Yield and margin as of period end | ||||
|---|---|---|---|---|
| Loans receivable1 | 5.44 | % | 5.62 | % |
| Mortgage-backed securities | 4.12 | 4.00 | ||
| Combined cash, investments and FHLB stock | 4.77 | 5.10 | ||
| Interest-earning assets | 5.26 | 5.44 | ||
| Interest-bearing customer accounts | 3.30 | 3.50 | ||
| Borrowings1 | 3.62 | 3.93 | ||
| Interest-bearing liabilities | 3.34 | 3.56 | ||
| Net interest spread | 1.92 | 1.88 | ||
| Net interest margin | 2.45 | 2.44 |
1Accretion and amortization assumed to be same as prior quarter. Also includes the impact of derivatives.
| Quarterly Earnings Release Q1 2025 | 6 |
|---|
WAFD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
| Three Months Ended December 31, | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | |||||||||||||
| (In thousands, except share and ratio data) | ||||||||||||||
| INTEREST INCOME | ||||||||||||||
| Loans receivable | $ | 286,597 | $ | 245,792 | ||||||||||
| Mortgage-backed securities | 18,337 | 11,266 | ||||||||||||
| Investment securities and cash equivalents | 40,183 | 29,788 | ||||||||||||
| 345,117 | 286,846 | |||||||||||||
| INTEREST EXPENSE | ||||||||||||||
| Customer accounts | 162,150 | 96,671 | ||||||||||||
| Borrowings and junior subordinated debentures | 27,536 | 37,938 | ||||||||||||
| 189,686 | 134,609 | |||||||||||||
| Net interest income | 155,431 | 152,237 | ||||||||||||
| Provision (release) for credit losses | — | — | ||||||||||||
| Net interest income after provision (release) | 155,431 | 152,237 | ||||||||||||
| NON-INTEREST INCOME | ||||||||||||||
| Gain (loss) on sale of investment securities | 20 | 81 | ||||||||||||
| Gain (loss) on termination of hedging derivatives | 5 | 109 | ||||||||||||
| Loan fee income | 1,345 | 844 | ||||||||||||
| Deposit fee income | 7,046 | 6,802 | ||||||||||||
| Other income | 7,286 | 6,331 | ||||||||||||
| Total non-interest income | 15,702 | 14,167 | ||||||||||||
| NON-INTEREST EXPENSE | ||||||||||||||
| Compensation and benefits | 59,927 | 49,841 | ||||||||||||
| Occupancy | 10,788 | 9,371 | ||||||||||||
| FDIC insurance premiums | 4,850 | 6,570 | ||||||||||||
| Product delivery | 5,785 | 6,009 | ||||||||||||
| Information technology | 14,192 | 12,866 | ||||||||||||
| Other expense | 15,769 | 11,883 | ||||||||||||
| Total non-interest expense | 111,311 | 96,540 | ||||||||||||
| Gain (loss) on real estate owned, net | 429 | 1,826 | ||||||||||||
| Income before income taxes | 60,251 | 71,690 | ||||||||||||
| Income tax provision | 12,984 | 13,237 | ||||||||||||
| Net income | 47,267 | 58,453 | ||||||||||||
| Dividends on preferred stock | 3,656 | 3,656 | ||||||||||||
| Net income available to common shareholders | $ | 43,611 | $ | 54,797 | PER SHARE DATA | |||||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||
| Basic earnings per common share | $ | 0.54 | $ | 0.85 | ||||||||||
| Diluted earnings per common share | 0.54 | 0.85 | ||||||||||||
| Cash dividends per common share | 0.26 | 0.25 | ||||||||||||
| Basic weighted average shares outstanding | 81,294,227 | 64,297,499 | ||||||||||||
| Diluted weighted average shares outstanding | 81,401,599 | 64,312,110 | ||||||||||||
| PERFORMANCE RATIOS | ||||||||||||||
| Return on average assets | 0.69 | % | 1.04 | % | ||||||||||
| Return on average common equity | 6.42 | % | 10.21 | % | Quarterly Earnings Release Q1 2025 | 7 | ||||||||
| --- | --- |
WAFD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
| Three Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | |||||||||||
| (In thousands, except share and ratio data) | |||||||||||||||
| INTEREST INCOME | |||||||||||||||
| Loans receivable | $ | 286,597 | $ | 308,598 | $ | 337,118 | $ | 274,341 | $ | 245,792 | |||||
| Mortgage-backed securities | 18,337 | 18,088 | 17,523 | 12,905 | 11,266 | ||||||||||
| Investment securities and cash equivalents | 40,183 | 47,411 | 37,300 | 31,580 | 29,788 | ||||||||||
| 345,117 | 374,097 | 391,941 | 318,826 | 286,846 | |||||||||||
| INTEREST EXPENSE | |||||||||||||||
| Customer accounts | 162,150 | 165,240 | 154,359 | 116,164 | 96,671 | ||||||||||
| Borrowings, senior debt and junior subordinated debentures | 27,536 | 36,045 | 60,396 | 44,065 | 37,938 | ||||||||||
| 189,686 | 201,285 | 214,755 | 160,229 | 134,609 | |||||||||||
| Net interest income | 155,431 | 172,812 | 177,186 | 158,597 | 152,237 | ||||||||||
| Provision for credit losses | — | — | 1,500 | 16,000 | — | ||||||||||
| Net interest income after provision | 155,431 | 172,812 | 175,686 | 142,597 | 152,237 | ||||||||||
| NON-INTEREST INCOME | |||||||||||||||
| Gain on sale of investment securities | 20 | 91 | 80 | 90 | 81 | ||||||||||
| Gain on termination of hedging derivatives | 5 | 72 | 54 | 6 | 109 | ||||||||||
| Loan fee income | 1,345 | 757 | 594 | 550 | 844 | ||||||||||
| Deposit fee income | 7,046 | 7,047 | 6,960 | 6,698 | 6,802 | ||||||||||
| Other income | 7,286 | 7,911 | 9,567 | 6,048 | 6,331 | ||||||||||
| Total non-interest income | 15,702 | 15,878 | 17,255 | 13,392 | 14,167 | ||||||||||
| NON-INTEREST EXPENSE | |||||||||||||||
| Compensation and benefits | 59,927 | 53,983 | 57,169 | 73,155 | 49,841 | ||||||||||
| Occupancy | 10,788 | 10,843 | 10,904 | 10,918 | 9,371 | ||||||||||
| FDIC insurance premiums | 4,850 | 6,800 | 7,600 | 7,900 | 6,570 | ||||||||||
| Product delivery | 5,785 | 6,306 | 6,090 | 5,581 | 6,009 | ||||||||||
| Information technology | 14,192 | 14,129 | 13,428 | 12,883 | 12,866 | ||||||||||
| Other expense | 15,769 | 15,880 | 14,888 | 23,275 | 11,883 | ||||||||||
| Total non-interest expense | 111,311 | 107,941 | 110,079 | 133,712 | 96,540 | ||||||||||
| Gain (loss) on real estate owned, net | 429 | (83) | (124) | (1,315) | 1,826 | ||||||||||
| Income before income taxes | 60,251 | 80,666 | 82,738 | 20,962 | 71,690 | ||||||||||
| Income tax provision | 12,984 | 19,526 | 18,178 | 5,074 | 13,237 | ||||||||||
| Net income | 47,267 | 61,140 | 64,560 | 15,888 | 58,453 | ||||||||||
| Dividends on preferred stock | 3,656 | 3,656 | 3,656 | 3,656 | 3,656 | ||||||||||
| Net income available to common shareholders | $ | 43,611 | $ | 57,484 | $ | 60,904 | $ | 12,232 | $ | 54,797 | |||||
| Quarterly Earnings Release Q1 2025 | 8 | ||||||||||||||
| --- | --- |
WAFD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
| Three Months Ended | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | |||||||||||||||||||
| (In thousands, except share and ratio data) | |||||||||||||||||||||||
| PER SHARE DATA | |||||||||||||||||||||||
| Basic earnings per common share | $ | 0.54 | $ | 0.71 | $ | 0.75 | $ | 0.17 | $ | 0.85 | |||||||||||||
| Diluted earnings per common share | 0.54 | 0.71 | 0.75 | 0.17 | 0.85 | ||||||||||||||||||
| Cash dividends per common share | 0.26 | 0.26 | 0.26 | 0.26 | 0.25 | ||||||||||||||||||
| Basic weighted average shares outstanding | 81,294,227 | 81,208,683 | 81,374,811 | 70,129,072 | 64,297,499 | ||||||||||||||||||
| Diluted weighted average shares outstanding | 81,401,599 | 81,353,644 | 81,393,708 | 70,164,558 | 64,312,110 | ||||||||||||||||||
| PERFORMANCE RATIOS | |||||||||||||||||||||||
| Return on average assets | 0.69 | % | 0.87 | % | 0.87 | % | 0.26 | % | 1.04 | % | |||||||||||||
| Return on average common equity | 6.42 | 8.53 | 9.20 | 2.09 | 10.21 | ||||||||||||||||||
| Net interest margin | 2.39 | 2.62 | 2.56 | 2.73 | 2.91 | ||||||||||||||||||
| Efficiency ratio | 65.04 | 57.21 | 56.61 | 77.74 | 58.02 | Quarterly Earnings Release Q1 2025 | 9 | ||||||||||||||||
| --- | --- |
WAFD, INC. AND SUBSIDIARIES NON-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 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Unaudited - In thousands, except for ratio data) | |||||||||||||||||||||||
| Shareholders equity - GAAP | $ | 3,021,636 | $ | 3,000,300 | $ | 2,958,339 | $ | 2,921,906 | $ | 2,452,004 | |||||||||||||
| Less intangible assets - GAAP | 449,213 | 448,425 | 452,255 | 453,539 | 311,103 | ||||||||||||||||||
| Tangible shareholders' equity | $ | 2,572,423 | $ | 2,551,875 | $ | 2,506,084 | $ | 2,468,367 | $ | 2,140,901 | |||||||||||||
| Less preferred stock - GAAP | 300,000 | 300,000 | 300,000 | 300,000 | 300,000 | ||||||||||||||||||
| Tangible common shareholders' equity | $ | 2,272,423 | $ | 2,251,875 | $ | 2,206,084 | $ | 2,168,367 | $ | 1,840,901 | |||||||||||||
| Total assets - GAAP | $ | 27,684,454 | $ | 28,060,330 | $ | 28,580,800 | $ | 30,140,288 | $ | 22,640,122 | |||||||||||||
| Less intangible assets - GAAP | 449,213 | 448,425 | 452,255 | 453,539 | 311,103 | ||||||||||||||||||
| Tangible assets | $ | 27,235,241 | $ | 27,611,905 | $ | 28,128,545 | $ | 29,686,749 | $ | 22,329,019 | |||||||||||||
| Tangible Metrics | |||||||||||||||||||||||
| Common shares outstanding - GAAP | 81,373,760 | 81,220,269 | 81,157,173 | 81,405,391 | 64,254,700 | ||||||||||||||||||
| Tangible common equity per share | $ | 27.93 | $ | 27.73 | $ | 27.18 | $ | 26.64 | $ | 28.65 | |||||||||||||
| Tangible equity to tangible assets | 9.45 | % | 9.24 | % | 8.91 | % | 8.31 | % | 9.59 | % | Quarterly Earnings Release Q1 2025 | 10 | |||||||||||
| --- | --- |
WAFD, INC. AND SUBSIDIARIES NON-GAAP MEASURES (UNAUDITED)
| Three Months Ended | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Average Tangible Measures | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | ||||||||||||||||||
| (Unaudited - In thousands, except for ratio data) | |||||||||||||||||||||||
| Average shareholders equity - GAAP | $ | 3,015,197 | $ | 2,996,093 | $ | 2,947,056 | $ | 2,638,483 | $ | 2,447,580 | |||||||||||||
| Less average preferred stock<br> - GAAP | 300,000 | 300,000 | 300,000 | 300,000 | 300,000 | ||||||||||||||||||
| Less average intangible assets - GAAP | 447,754 | 451,204 | 453,142 | 360,251 | 311,022 | ||||||||||||||||||
| Average tangible common equity | $ | 2,267,443 | $ | 2,244,889 | $ | 2,193,914 | $ | 1,978,232 | $ | 1,836,558 | |||||||||||||
| Average Assets - GAAP | $ | 27,504,576 | $ | 28,000,482 | $ | 29,703,337 | $ | 24,907,376 | $ | 22,381,459 | |||||||||||||
| Less average intangible assets - GAAP | 447,754 | 451,204 | 453,142 | 360,251 | 311,022 | ||||||||||||||||||
| Average tangible assets | $ | 27,056,822 | $ | 27,549,278 | $ | 29,250,195 | $ | 24,547,125 | $ | 22,070,437 | |||||||||||||
| Average Tangible Metrics | |||||||||||||||||||||||
| Net income - GAAP | 47,267 | 61,140 | 64,560 | 15,888 | 58,453 | ||||||||||||||||||
| Net income available to common shareholders - GAAP | 43,611 | 57,484 | 60,904 | 12,232 | 54,797 | ||||||||||||||||||
| Return on tangible common equity | 7.69 | % | 10.24 | % | 11.10 | % | 2.47 | % | 11.93 | % | |||||||||||||
| Return on tangible assets | 0.70 | % | 0.89 | % | 0.88 | % | 0.26 | % | 1.06 | % | Quarterly Earnings Release Q1 2025 | 11 | |||||||||||
| --- | --- |
WAFD, INC. AND SUBSIDIARIES NON-GAAP MEASURES (UNAUDITED)
| Three Months Ended | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Income Adjusted for Acquisition Expenses and Other Non-Operating Items | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | |||||||||||||
| (Unaudited - In thousands, except for ratio data) | ||||||||||||||||||
| Interest income | ||||||||||||||||||
| LBC Hedge Valuation Adj | $ | 3,933 | $ | — | $ | — | $ | — | $ | — | ||||||||
| Non-interest income adjustments | ||||||||||||||||||
| Distribution received on LBC equity method investment | $ | (279) | $ | (288) | $ | (299) | $ | (287) | $ | — | ||||||||
| (Gain)Loss on WaFd Bank equity method investment | 48 | (896) | (748) | 2,195 | 693 | |||||||||||||
| Total non-interest income adjustments | $ | (231) | $ | (1,184) | $ | (1,047) | $ | 1,908 | $ | 693 | ||||||||
| Non-interest expense adjustments | ||||||||||||||||||
| Acquisition-related expenses | $ | 239 | $ | (1,602) | $ | 2,285 | $ | 25,120 | $ | 516 | ||||||||
| Non-operating expenses: | ||||||||||||||||||
| Restructuring Charges | 5,390 | — | — | — | — | |||||||||||||
| FDIC Special Assessment | — | (216) | — | 1,800 | 500 | |||||||||||||
| Legal and Compliance Accruals | — | (182) | — | 3,000 | — | |||||||||||||
| Charitable Donation | — | — | — | 2,000 | — | |||||||||||||
| 5,390 | (398) | — | 6,800 | 500 | ||||||||||||||
| Total non-interest expense adjustments | $ | 5,629 | $ | (2,000) | $ | 2,285 | $ | 31,920 | $ | 1,016 | ||||||||
| Net Income - GAAP | $ | 47,267 | $ | 61,140 | $ | 64,560 | $ | 15,888 | $ | 58,453 | ||||||||
| Preliminary ACL provision on LBC loans | — | — | — | 16,000 | — | |||||||||||||
| Interest income adjustments | 3,933 | — | — | — | — | |||||||||||||
| Non-interest income adjustments | (231) | (1,184) | (1,047) | 1,908 | 693 | |||||||||||||
| Non-interest expense adjustments | 5,629 | (2,000) | 2,285 | 31,920 | 1,016 | |||||||||||||
| REO adjustments | (429) | 83 | 124 | 1,315 | (1,826) | |||||||||||||
| Income tax adjustment | (1,918) | 751 | (299) | (12,274) | 22 | |||||||||||||
| Net Income - non-GAAP | $ | 54,251 | $ | 58,790 | $ | 65,623 | $ | 54,757 | $ | 58,358 | ||||||||
| Dividend on preferred stock | 3,656 | 3,656 | 3,656 | 3,656 | 3,656 | |||||||||||||
| Net Income available to common shareholders - non-GAAP | $ | 50,595 | $ | 55,134 | $ | 61,967 | $ | 51,101 | $ | 54,702 | ||||||||
| Basic weighted average number of shares outstanding - GAAP | 81,294,227 | 81,208,683 | 81,374,811 | 70,129,072 | 64,297,499 | |||||||||||||
| Diluted weighted average number of shares outstanding - GAAP | 81,401,599 | 81,353,644 | 81,393,708 | 70,164,558 | 64,312,110 | |||||||||||||
| Basic EPS - non-GAAP | $ | 0.62 | $ | 0.68 | $ | 0.76 | $ | 0.73 | $ | 0.84 | ||||||||
| Diluted EPS - non-GAAP | 0.62 | 0.68 | 0.76 | 0.73 | 0.84 | Quarterly Earnings Release Q1 2025 | 12 | |||||||||||
| --- | --- |
WAFD, INC. AND SUBSIDIARIES NON-GAAP MEASURES (UNAUDITED)
| Three Months Ended | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Adjusted Efficiency Ratio | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | ||||||||||||||||||
| (Unaudited - In thousands, except for ratio data) | |||||||||||||||||||||||
| Efficiency ratio - GAAP | 65.0 | % | 57.2 | % | 56.6 | % | 77.7 | % | 58.0 | % | |||||||||||||
| Net interest income - GAAP | $ | 155,431 | $ | 172,812 | $ | 177,186 | $ | 158,597 | $ | 152,237 | |||||||||||||
| Total interest income adjustments | 3,933 | — | — | — | — | ||||||||||||||||||
| Net interest income - non-GAAP | $ | 159,364 | $ | 172,812 | $ | 177,186 | $ | 158,597 | $ | 152,237 | |||||||||||||
| Non-interest expense - GAAP | $ | 111,311 | $ | 107,941 | $ | 110,079 | $ | 133,712 | $ | 96,540 | |||||||||||||
| Less merger related expenses | 239 | (1,602) | 2,285 | 25,120 | 516 | ||||||||||||||||||
| Less non-operating expenses | 5,390 | (398) | — | 6,800 | 500 | ||||||||||||||||||
| Non-interest Expenses - <br>non-GAAP | $ | 105,682 | $ | 109,941 | $ | 107,794 | $ | 101,792 | $ | 95,524 | |||||||||||||
| Non-interest income - GAAP | $ | 15,702 | $ | 15,878 | $ | 17,255 | $ | 13,392 | $ | 14,167 | |||||||||||||
| Total other income adjustments | (231) | (1,184) | (1,047) | 1,908 | 693 | ||||||||||||||||||
| Non-interest income - <br>non-GAAP | $ | 15,471 | $ | 14,694 | $ | 16,208 | $ | 15,300 | $ | 14,860 | |||||||||||||
| Net Interest Income - <br>non-GAAP | $ | 159,364 | $ | 172,812 | $ | 177,186 | $ | 158,597 | $ | 152,237 | |||||||||||||
| Non-interest income - <br>non-GAAP | 15,471 | 14,694 | 16,208 | 15,300 | 14,860 | ||||||||||||||||||
| Total Income - non-GAAP | $ | 174,835 | $ | 187,506 | $ | 193,394 | $ | 173,897 | $ | 167,097 | |||||||||||||
| Adjusted Efficiency Ratio | 60.4 | % | 58.6 | % | 55.7 | % | 58.5 | % | 57.2 | % | Quarterly Earnings Release Q1 2025 | 13 | |||||||||||
| --- | --- |
WAFD, INC. AND SUBSIDIARIES NON-GAAP MEASURES (UNAUDITED)
| Three Months Ended | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Adjusted ROA and ROE | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | ||||||||||||||||||
| (Unaudited - In thousands, except for ratio data) | |||||||||||||||||||||||
| Reported: | |||||||||||||||||||||||
| Net Income - GAAP | $ | 47,267 | $ | 61,140 | $ | 64,560 | $ | 15,888 | $ | 58,453 | |||||||||||||
| Net income available to common shareholders - GAAP | $ | 43,611 | $ | 57,484 | $ | 60,904 | $ | 12,232 | $ | 54,797 | |||||||||||||
| Average Assets | 27,504,576 | 28,000,482 | 29,703,337 | 24,907,376 | 22,381,459 | ||||||||||||||||||
| Return on Assets | 0.69 | % | 0.87 | % | 0.87 | % | 0.26 | % | 1.04 | % | |||||||||||||
| Average Common Equity | $ | 2,715,197 | $ | 2,696,093 | $ | 2,647,056 | $ | 2,338,483 | $ | 2,147,580 | |||||||||||||
| Return on common equity | 6.42 | % | 8.53 | % | 9.20 | % | 2.09 | % | 10.21 | % | |||||||||||||
| Adjusted: | |||||||||||||||||||||||
| Net Income - non-GAAP | $ | 54,251 | $ | 58,790 | $ | 65,623 | $ | 54,757 | $ | 58,358 | |||||||||||||
| Net income available to common shareholders - non-GAAP | $ | 50,595 | $ | 55,134 | $ | 61,967 | $ | 51,101 | $ | 54,702 | |||||||||||||
| Average Assets | 27,504,576 | 28,000,482 | 29,703,337 | 24,907,376 | 22,381,459 | ||||||||||||||||||
| Adjusted Return on Assets | 0.79 | % | 0.84 | % | 0.88 | % | 0.88 | % | 1.04 | % | |||||||||||||
| Average Common Equity | 2,715,197 | 2,696,093 | 2,647,056 | 2,338,483 | 2,147,580 | ||||||||||||||||||
| Adjusted Return on common equity | 7.45 | % | 8.18 | % | 9.36 | % | 8.74 | % | 10.19 | % | Quarterly Earnings Release Q1 2025 | 14 | |||||||||||
| --- | --- |
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, 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.
#
CONTACT: WaFd, Inc. 425 Pike Street, Seattle, WA 98101 Brad Goode, SVP, Chief Marketing Officer 206-626-8178 brad.goode@wafd.com
| Quarterly Earnings Release Q1 2025 | 15 |
|---|
Document
WaFd Inc. Announces First Quarter 2025 Results
WaFd, Inc.
Fact Sheet
December 31, 2024
($ in Thousands)
Exhibit 99.2
| As of 06/24 | As of 09/24 | As of 12/24 | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Allowance for Credit Losses (ACL) - Total | $ | 225,324 | $ | 225,253 | $ | 225,022 | |||||||||||||||
| ACL - Loans | 203,824 | 203,753 | 204,522 | ||||||||||||||||||
| ACL - Unfunded Commitments | 21,500 | 21,500 | 20,500 | ||||||||||||||||||
| Total ACL as a % of Gross Loans | 1.00 | % | 1.01 | % | 1.00 | % | |||||||||||||||
| 06/24 QTR | 06/24 YTD | 09/24 QTR | 09/24 YTD | 12/24 QTR | 12/24 YTD | ||||||||||||||||
| Loan Originations - Total | $ | 972,500 | $ | 2,669,679 | $ | 962,393 | $ | 3,632,072 | $ | 930,789 | $ | 930,789 | |||||||||
| Multi-Family | 8,523 | 58,733 | 1,997 | 60,730 | 6,388 | 6,388 | |||||||||||||||
| Commercial Real Estate | 57,956 | 203,206 | 43,724 | 246,930 | 47,826 | 47,826 | |||||||||||||||
| Commercial & Industrial | 456,351 | 1,245,873 | 431,498 | 1,677,371 | 405,877 | 405,877 | |||||||||||||||
| Construction | 124,978 | 411,993 | 191,837 | 603,829 | 162,662 | 162,662 | |||||||||||||||
| Land - Acquisition & Development | 6,099 | 30,131 | 15,275 | 45,406 | 7,934 | 7,934 | |||||||||||||||
| Single-Family Residential | 141,018 | 292,038 | 138,234 | 430,272 | 156,117 | 156,117 | |||||||||||||||
| Construction - Custom | 58,490 | 155,732 | 54,049 | 209,781 | 51,009 | 51,009 | |||||||||||||||
| Land - Consumer Lot Loans | 6,478 | 14,241 | 6,946 | 21,187 | 4,968 | 4,968 | |||||||||||||||
| HELOC | 46,246 | 119,101 | 42,816 | 161,917 | 43,030 | 43,030 | |||||||||||||||
| Consumer | 66,361 | 138,631 | 36,017 | 174,648 | 44,978 | 44,978 | |||||||||||||||
| Purchased Loans (including acquisitions) | $ | — | $ | 6,207,393 | $ | — | $ | 6,207,393 | $ | 102,016 | $ | 102,016 | |||||||||
| Net Loan Fee and Discount Accretion | $ | 14,807 | $ | 26,547 | $ | 10,942 | $ | 37,489 | $ | 10,000 | $ | 10,000 | |||||||||
| Repayments | |||||||||||||||||||||
| Loans | $ | 1,035,515 | $ | 3,172,373 | $ | 1,129,986 | $ | 4,302,359 | $ | 981,574 | $ | 981,574 | |||||||||
| MBS | 58,582 | 130,946 | 64,885 | 195,831 | 68,287 | 68,287 | |||||||||||||||
| MBS Net Premium Amortization | $ | 561 | $ | 657 | $ | 403 | $ | 1,060 | $ | 434 | $ | 434 | |||||||||
| Efficiency | |||||||||||||||||||||
| Operating Expenses/Average Assets | 1.48 | % | 1.77 | % | 1.54 | % | 1.71 | % | 1.62 | % | 1.62 | % | |||||||||
| Efficiency Ratio (%) | 56.61 | % | 63.87 | % | 57.21 | % | 62.13 | % | 65.04 | % | 65.04 | % | |||||||||
| Amortization of Intangibles | $ | 3,197 | $ | 4,766 | $ | 2,977 | $ | 7,743 | $ | 2,755 | $ | 2,755 | |||||||||
| EOP Numbers | |||||||||||||||||||||
| Shares Issued and Outstanding | 81,157,173 | 81,220,269 | 81,373,760 | ||||||||||||||||||
| Share repurchase information | |||||||||||||||||||||
| Remaining shares authorized for repurchase | 11,501,005 | 11,501,005 | 11,501,005 | ||||||||||||||||||
| Shares repurchased | 357,303 | 1,063,033 | 7,174 | 1,070,207 | 89,528 | 89,528 | |||||||||||||||
| Average share repurchase price | $ | 26.63 | $ | 25.23 | $ | 34.82 | $ | 25.29 | $ | 38.09 | $ | 38.09 | WaFd Fact Sheet Q1 2025 | 1 | |||||||
| --- | --- |
WaFd Inc. Announces First Quarter 2025 Results
WaFd, Inc.
Fact Sheet
December 31, 2024
($ in Thousands)
| Tangible Common Shareholders' Book Value | As of 06/24 | As of 09/24 | As of 12/24 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| $ Amount | $ | 2,206,084 | $ | 2,251,875 | $ | 2,272,423 | |||||||||
| Per Share | 27.18 | 27.73 | 27.93 | ||||||||||||
| # of Employees | 2,204 | 2,208 | 2,175 | ||||||||||||
| Investments | |||||||||||||||
| Available-for-sale: | |||||||||||||||
| Agency MBS | $ | 1,351,997 | $ | 1,387,025 | $ | 1,600,089 | |||||||||
| Other | 1,076,771 | 1,185,684 | 1,143,642 | ||||||||||||
| $ | 2,428,768 | $ | 2,572,709 | $ | 2,743,731 | ||||||||||
| Held-to-maturity: | |||||||||||||||
| Agency MBS | $ | 447,638 | $ | 436,972 | $ | 537,348 | |||||||||
| $ | 447,638 | $ | 436,972 | $ | 537,348 | ||||||||||
| As of 06/24 | As of 09/24 | As of 12/24 | |||||||||||||
| Loans Receivable by Category1 | Amount | % | Amount | % | Amount | % | |||||||||
| Multi-Family | $ | 4,616,359 | 20.5 | % | $ | 4,658,119 | 20.8 | % | $ | 4,829,736 | 21.5 | % | |||
| Commercial Real Estate | 3,781,247 | 16.8 | 3,757,040 | 16.8 | 3,637,986 | 16.2 | |||||||||
| Commercial & Industrial | 2,394,978 | 10.7 | 2,337,139 | 10.5 | 2,408,693 | 10.6 | |||||||||
| Construction | 2,247,530 | 9.9 | 2,174,254 | 9.7 | 2,062,116 | 9.2 | |||||||||
| Land - Acquisition & Development | 195,796 | 0.9 | 200,713 | 0.9 | 178,687 | 0.8 | |||||||||
| Single-Family Residential | 8,364,415 | 37.2 | 8,399,030 | 37.6 | 8,520,833 | 38.0 | |||||||||
| Construction - Custom | 414,483 | 1.8 | 384,161 | 1.7 | 335,715 | 1.5 | |||||||||
| Land - Consumer Lot Loans | 112,317 | 0.5 | 108,791 | 0.6 | 107,205 | 0.5 | |||||||||
| HELOC | 255,271 | 1.1 | 266,151 | 1.2 | 275,132 | 1.2 | |||||||||
| Consumer | 84,445 | 0.4 | 73,998 | 0.3 | 75,933 | 0.3 | |||||||||
| 22,466,841 | 100 | % | 22,359,396 | 100 | % | 22,432,036 | 100 | % | |||||||
| Less: | |||||||||||||||
| Allowance for Credit Losses (ACL) | 203,824 | 203,753 | 204,522 | ||||||||||||
| Loans in Process | 1,094,956 | 1,009,798 | 903,253 | ||||||||||||
| Net Deferred Fees, Costs and Discounts | 294,142 | 229,491 | 263,760 | ||||||||||||
| Sub-Total | 1,592,922 | 1,443,042 | 1,371,535 | ||||||||||||
| $ | 20,873,919 | $ | 20,916,354 | $ | 21,060,501 | ||||||||||
| Net Loan Portfolio by Category1 | Amount | % | Amount | % | Amount | % | |||||||||
| Multi-Family | $ | 4,488,124 | 21.5 | % | $ | 4,530,951 | 21.7 | % | $ | 4,714,800 | 22.4 | % | |||
| Commercial Real Estate | 3,707,189 | 17.8 | 3,692,946 | 17.7 | 3,572,885 | 17.0 | |||||||||
| Commercial & Industrial | 2,331,403 | 11.2 | 2,273,984 | 10.9 | 2,343,246 | 11.1 | |||||||||
| Construction | 1,417,444 | 6.8 | 1,401,748 | 6.7 | 1,362,145 | 6.5 | |||||||||
| Land - Acquisition & Development | 148,724 | 0.7 | 152,416 | 0.7 | 139,388 | 0.7 | |||||||||
| Single-Family Residential | 8,146,045 | 39.0 | 8,239,778 | 39.4 | 8,320,765 | 39.5 | |||||||||
| Construction - Custom | 188,940 | 0.9 | 180,988 | 0.9 | 154,495 | 0.7 | |||||||||
| Land - Consumer Lot Loans | 108,927 | 0.5 | 105,496 | 0.5 | 103,961 | 0.4 | |||||||||
| HELOC | 255,908 | 1.2 | 266,808 | 1.3 | 275,880 | 1.3 | |||||||||
| Consumer | 81,215 | 0.4 | 71,239 | 0.3 | 72,936 | 0.3 | |||||||||
| $ | 20,873,919 | 100 | % | $ | 20,916,354 | 100 | % | $ | 21,060,501 | 100 | % | ||||
| 1These loan disclosures are specific to those loans held for investment and exclude loans held for sale. | WaFd Fact Sheet Q1 2025 | 2 | |||||||||||||
| --- | --- |
WaFd Inc. Announces First Quarter 2025 Results
WaFd, Inc.
Fact Sheet
December 31, 2024
($ in Thousands)
| As of 06/24 | As of 09/24 | As of 12/24 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Loans by State1 | Amount | % | Amount | % | Amount | % | |||||||||
| Washington | $ | 5,771,422 | 27.4 | % | $ | 5,771,729 | 27.3 | % | $ | 5,857,840 | 27.5 | % | |||
| Idaho | 917,733 | 4.4 | 924,573 | 4.4 | 940,094 | 4.4 | |||||||||
| Oregon | 2,486,762 | 11.8 | 2,463,530 | 11.7 | 2,477,443 | 11.7 | |||||||||
| Utah | 2,084,601 | 9.9 | 2,085,051 | 9.9 | 2,114,388 | 9.9 | |||||||||
| Nevada | 776,656 | 3.7 | 783,600 | 3.7 | 773,271 | 3.5 | |||||||||
| Texas | 2,526,689 | 12.0 | 2,495,541 | 11.8 | 2,500,824 | 11.8 | |||||||||
| Arizona | 2,314,192 | 11.0 | 2,319,106 | 11.0 | 2,333,725 | 11.0 | |||||||||
| New Mexico | 750,935 | 3.7 | 761,853 | 3.6 | 766,170 | 3.6 | |||||||||
| California | 3,027,699 | 14.4 | 3,037,606 | 14.4 | 3,037,930 | 14.3 | |||||||||
| Other | 421,054 | 2.0 | 477,518 | 2.3 | 463,337 | 2.2 | |||||||||
| Total | $ | 21,077,743 | 100 | % | $ | 21,120,107 | 100 | % | $ | 21,265,022 | 100 | % | |||
| Non-Performing Assets | Amount | % | Amount | % | Amount | % | |||||||||
| Non-accrual loans1: | |||||||||||||||
| Multi-Family | $ | 9,984 | 16.3 | % | $ | 18,743 | 27.0 | % | $ | 24,077 | 33.2 | % | |||
| Commercial Real Estate | 26,408 | 43.1 | 26,362 | 37.9 | 26,292 | 36.3 | |||||||||
| Commercial & Industrial | 2,138 | 3.5 | — | — | 1,963 | 2.7 | |||||||||
| Construction | 1,120 | 1.8 | 1,120 | 1.6 | 624 | 0.9 | |||||||||
| Land - Acquisition & Development | 74 | 0.1 | 74 | 0.1 | — | — | |||||||||
| Single-Family Residential | 20,422 | 33.2 | 21,488 | 30.9 | 17,440 | 24.1 | |||||||||
| Construction - Custom | 88 | 0.1 | 848 | 1.1 | 848 | 1.2 | |||||||||
| Land - Consumer Lot Loans | 236 | 0.4 | — | — | 8 | — | |||||||||
| HELOC | 758 | 1.2 | 596 | 0.9 | 786 | 1.1 | |||||||||
| Consumer | 40 | 0.1 | 310 | 0.3 | 449 | 0.6 | |||||||||
| Total non-accrual loans | 61,268 | 100 | % | 69,541 | 100 | % | 72,487 | 100 | % | ||||||
| Real Estate Owned | 4,209 | 4,567 | 3,316 | ||||||||||||
| Other Property Owned | 3,310 | 3,310 | 3,310 | ||||||||||||
| Total non-performing assets | $ | 68,787 | $ | 77,418 | $ | 79,113 | |||||||||
| Non-accrual loans as % of total net loans | 0.29 | % | 0.33 | % | 0.34 | % | |||||||||
| Non-performing assets as % of total assets | 0.24 | % | 0.28 | % | 0.29 | % | |||||||||
| Net Charge-offs (Recoveries) by Category | 06/24 QTR | CO % (a) | 09/24 QTR | CO % (a) | 12/24 QTR | CO % (a) | |||||||||
| Multi-Family | $ | — | — | % | $ | — | — | % | $ | — | — | % | |||
| Commercial Real Estate | 201 | 0.02 | — | — | 163 | 0.02 | |||||||||
| Commercial & Industrial | 1,343 | 0.22 | 136 | 0.02 | 353 | 0.06 | |||||||||
| Construction | — | — | — | — | — | — | |||||||||
| Land - Acquisition & Development | (17) | (0.03) | 114 | 0.23 | (12) | (0.03) | |||||||||
| Single-Family Residential | (105) | (0.01) | (88) | — | (456) | (0.02) | |||||||||
| Construction - Custom | — | — | (1) | — | — | — | |||||||||
| Land - Consumer Lot Loans | (2) | (0.01) | (1) | — | — | — | |||||||||
| HELOC | (1) | — | (1) | — | (1) | — | |||||||||
| Consumer | (166) | (0.79) | (89) | (0.48) | 184 | 0.97 | |||||||||
| Total net charge-offs (recoveries) | $ | 1,253 | 0.02 | % | $ | 70 | — | % | $ | 231 | — | % |
(a)Annualized Net Charge-offs (recoveries) divided by Gross Balance
1These loan disclosures are specific to those loans held for investment and exclude loans held for sale.
| WaFd Fact Sheet Q1 2025 | 3 |
|---|
WaFd Inc. Announces First Quarter 2025 Results
WaFd, Inc.
Fact Sheet
December 31, 2024
($ in Thousands)
| As of 06/24 | As of 09/24 | As of 12/24 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Deposits & Branches by State | Amount | % | # | Amount | % | # | Amount | % | # | ||||||
| Washington | $ | 8,302,664 | 39.2 | % | 73 | $ | 8,528,608 | 39.9 | % | 73 | $ | 8,589,398 | 40.1 | % | 73 |
| Idaho | 922,547 | 4.4 | 22 | 949,025 | 4.4 | 22 | 946,554 | 4.4 | 22 | ||||||
| Oregon | 2,711,175 | 12.8 | 36 | 2,696,243 | 12.6 | 36 | 2,704,966 | 12.6 | 36 | ||||||
| Utah | 549,876 | 2.6 | 9 | 584,001 | 2.7 | 9 | 573,469 | 2.7 | 9 | ||||||
| Nevada | 508,648 | 2.4 | 8 | 527,704 | 2.5 | 8 | 531,383 | 2.5 | 8 | ||||||
| Texas | 371,539 | 1.7 | 5 | 398,736 | 1.9 | 5 | 683,513 | 3.2 | 5 | ||||||
| Arizona | 1,610,523 | 7.6 | 28 | 1,619,101 | 7.6 | 28 | 1,628,742 | 7.6 | 28 | ||||||
| New Mexico | 1,555,373 | 7.3 | 19 | 1,622,534 | 7.6 | 19 | 1,568,788 | 7.3 | 19 | ||||||
| California | 4,652,420 | 22.0 | 10 | 4,448,018 | 20.8 | 10 | 4,211,964 | 19.6 | 10 | ||||||
| Total | $ | 21,184,765 | 100 | % | 210 | $ | 21,373,970 | 100 | % | 210 | $ | 21,438,777 | 100 | % | 210 |
| Deposits by Type | Amount | % | Amount | % | Amount | % | |||||||||
| Non-Interest Checking | $ | 2,514,310 | 11.9 | % | $ | 2,500,467 | 11.7 | % | $ | 2,489,394 | 11.6 | % | |||
| Interest Checking | 4,481,465 | 21.2 | 4,486,444 | 21.0 | 4,554,922 | 21.2 | |||||||||
| Savings | 733,973 | 3.5 | 718,560 | 3.4 | 714,755 | 3.4 | |||||||||
| Money Market | 4,199,257 | 19.8 | 4,111,714 | 19.2 | 4,094,788 | 19.1 | |||||||||
| Time Deposits | 9,255,760 | 43.7 | 9,556,785 | 44.7 | 9,584,918 | 44.7 | |||||||||
| Total | $ | 21,184,765 | 100 | % | $ | 21,373,970 | 100 | % | $ | 21,438,777 | 100 | % | |||
| Deposits Uninsured & <br>Non-collateralized - EOP | $ | 5,238,217 | 24.7 | % | $ | 5,134,192 | 24.0 | % | $ | 5,317,511 | 24.8 | % | |||
| Time Deposit Repricing | Amount | Rate | Amount | Rate | Amount | Rate | |||||||||
| Within 3 months | $ | 2,300,304 | 4.37 | % | $ | 2,923,299 | 4.72 | % | $ | 3,744,158 | 4.59 | % | |||
| From 4 to 6 months | 2,586,273 | 4.76 | % | 3,140,278 | 4.65 | % | 2,655,054 | 4.38 | % | ||||||
| From 7 to 9 months | 1,953,833 | 4.63 | % | 1,236,201 | 4.49 | % | 1,538,725 | 4.49 | % | ||||||
| From 10 to 12 months | 1,071,346 | 4.26 | % | 1,307,000 | 4.37 | % | 836,930 | 3.41 | % | ||||||
| Borrowings (Effective Maturity) | Amount | Rate | Amount | Rate | Amount | Rate | |||||||||
| Within 1 year | $ | 3,036,283 | 5.01 | % | $ | 2,274,067 | 5.00 | % | $ | 1,850,825 | 4.84 | % | |||
| 1 to 3 years | 192,425 | 3.13 | % | 193,355 | 3.17 | % | 194,284 | 3.14 | % | ||||||
| 3 to 5 years | — | — | % | — | — | % | 18,400 | — | % | ||||||
| More than 5 years | 850,652 | 1.04 | % | 850,885 | 1.23 | % | 851,118 | 1.15 | % | ||||||
| Total | $ | 4,079,360 | $ | 3,318,307 | $ | 2,914,627 | |||||||||
| Interest Rate Risk(b) | |||||||||||||||
| NPV post up 100 bps shock | 8.9 | % | 8.7 | % | 9.5 | % | |||||||||
| NPV post down 100 bps shock | 10.7 | % | 10.2 | % | 11.6 | % | |||||||||
| Change in NII after up 100 bps shock | 3.0 | % | 0.2 | % | 1.3 | % | |||||||||
| Change in NII after down 100 bps shock | 1.6 | % | 0.4 | % | 2.0 | % |
(b)Assumes no balance sheet management actions taken.
| WaFd Fact Sheet Q1 2025 | 4 |
|---|
WaFd Inc. Announces First Quarter 2025 Results
WaFd, Inc.
Fact Sheet
December 31, 2024
($ in Thousands)
| Historical CPR Rates (c) | ||||
|---|---|---|---|---|
| Average for Quarter Ended: | WAFD<br>SFR Mortgages | WAFD<br>GSE MBS | ||
| 12/31/2022 | 6.3 | % | 12.6 | % |
| 3/31/2023 | 5.8 | % | 8.9 | % |
| 6/30/2023 | 7.9 | % | 11.8 | % |
| 9/30/2023 | 7.0 | % | 14.5 | % |
| 12/31/2023 | 6.6 | % | 9.7 | % |
| 3/31/2024 | 4.8 | % | 8.7 | % |
| 6/30/2024 | 6.6 | % | 12.0 | % |
| 9/30/2024 | 8.6 | % | 12.9 | % |
| 12/31/2024 | 8.1 | % | 12.7 | % |
(c)The CPR Rate (conditional payment rate) is the rate that is equal to the proportion of the principal of a pool of loans that is paid off prematurely in each period.
| WaFd Fact Sheet Q1 2025 | 5 |
|---|
WaFd Inc. Announces First Quarter 2025 Results
WaFd, Inc.
Fact Sheet
December 31, 2024
Average Balance Sheet
($ in Thousands)
| Quarter Ended | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30, 2024 | September 30, 2024 | December 31, 2024 | ||||||||||||||||
| Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||
| Assets | ||||||||||||||||||
| Loans receivable | $ | 23,536,530 | $ | 337,118 | 5.76 | % | $ | 21,258,400 | $ | 308,598 | 5.78 | % | $ | 20,954,663 | $ | 286,597 | 5.43 | % |
| Mortgage-backed securities | 1,765,314 | 17,523 | 3.99 | 1,817,639 | 18,088 | 3.96 | 1,882,688 | 18,337 | 3.86 | |||||||||
| Cash & investments | 2,386,434 | 33,693 | 5.68 | 3,061,063 | 43,661 | 5.67 | 2,855,030 | 37,941 | 5.27 | |||||||||
| FHLB Stock | 164,018 | 3,608 | 8.85 | 99,195 | 3,750 | 15.04 | 106,062 | 2,242 | 8.39 | |||||||||
| Total interest-earning assets | 27,852,296 | 391,942 | 5.66 | % | 26,236,297 | 374,097 | 5.67 | % | 25,798,443 | 345,117 | 5.31 | % | ||||||
| Other assets | 1,851,041 | 1,764,185 | 1,706,133 | |||||||||||||||
| Total assets | $ | 29,703,337 | $ | 28,000,482 | $ | 27,504,576 | ||||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||
| Interest-bearing customer accounts | $ | 18,398,704 | 154,359 | 3.37 | % | $ | 18,590,638 | 165,240 | 3.54 | % | $ | 18,743,048 | 162,150 | 3.43 | % | |||
| Borrowings | 5,406,585 | 60,397 | 4.49 | 3,535,015 | 36,045 | 4.05 | 2,899,012 | 27,536 | 3.77 | |||||||||
| Total interest-bearing liabilities | 23,805,289 | 214,756 | 3.63 | % | 22,125,653 | 201,285 | 3.62 | % | 21,642,060 | 189,686 | 3.48 | % | ||||||
| Noninterest-bearing customer accounts | 2,593,381 | 2,588,528 | 2,523,510 | |||||||||||||||
| Other liabilities | 357,611 | 290,208 | 323,809 | |||||||||||||||
| Total liabilities | 26,756,281 | 25,004,389 | 24,489,379 | |||||||||||||||
| Stockholders’ equity | 2,947,056 | 2,996,093 | 3,015,197 | |||||||||||||||
| Total liabilities and equity | $ | 29,703,337 | $ | 28,000,482 | $ | 27,504,576 | ||||||||||||
| Net interest income/interest rate spread | $ | 177,186 | 2.03 | % | $ | 172,812 | 2.05 | % | $ | 155,431 | 1.83 | % | ||||||
| Net interest margin(1) | 2.56 | % | 2.62 | % | 2.39 | % |
(1)Annualized net interest income divided by average interest-earning assets
| WaFd Fact Sheet Q1 2025 | 6 |
|---|
WaFd Inc. Announces First Quarter 2025 Results
WaFd, Inc.
Fact Sheet
December 31, 2024
Delinquency Summary
($ in Thousands)
| # of Loans | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Type of Loans | #Loans | AVG Size | Loans<br>Amortized<br>Cost | 30 | 60 | 90 | Total | % Based on # | Delinquent | % Based on # | |||||
| December 31, 2024 | |||||||||||||||
| Multi-Family | 1,922 | 2,467 | $ | 4,740,797 | 10 | 3 | 10 | 23 | 1.20 | % | 23,504 | 0.50 | % | ||
| Commercial Real Estate | 1,282 | 2,817 | 3,610,758 | 1 | 1 | 3 | 5 | 0.39 | 0.02 | ||||||
| Commercial & Industrial | 1,792 | 1,341 | 2,403,719 | 12 | 5 | 9 | 26 | 1.45 | 0.09 | ||||||
| Construction | 389 | 3,555 | 1,383,048 | 2 | 1 | 2 | 5 | 1.29 | 0.33 | ||||||
| Land - Acquisition & Development | 78 | 1,880 | 146,609 | — | — | — | — | — | — | ||||||
| Single-Family Residential | 21,643 | 386 | 8,362,881 | 34 | 17 | 59 | 110 | 0.51 | 0.35 | ||||||
| Construction - Custom | 308 | 506 | 155,714 | — | — | 2 | 2 | 0.65 | 0.54 | ||||||
| Land - Consumer Lot Loans | 998 | 107 | 106,489 | 2 | — | 2 | 4 | 0.40 | 0.31 | ||||||
| HELOC | 4,466 | 62 | 279,039 | 9 | 10 | 22 | 0.49 | 0.73 | |||||||
| Consumer | 7,947 | 10 | 75,969 | 16 | 15 | 70 | 101 | 1.27 | 0.94 | ||||||
| 40,825 | 521 | $ | 21,265,023 | 86 | 45 | 167 | 298 | 0.73 | % | 64,442 | 0.30 | % | |||
| September 30, 2024 | |||||||||||||||
| Multi-Family | 1,938 | 2,351 | $ | 4,556,200 | — | 3 | 5 | 8 | 0.41 | % | 14,673 | 0.32 | % | ||
| Commercial Real Estate | 1,295 | 2,882 | 3,732,155 | 1 | — | 3 | 4 | 0.31 | 0.02 | ||||||
| Commercial & Industrial | 1,827 | 1,277 | 2,332,732 | 1 | 4 | 8 | 13 | 0.71 | 0.09 | ||||||
| Construction | 406 | 3,507 | 1,424,016 | 1 | — | 3 | 4 | 0.99 | 0.14 | ||||||
| Land - Acquisition & Development | 81 | 1,979 | 160,317 | — | — | 2 | 2 | 2.47 | 0.05 | ||||||
| Single-Family Residential | 22,141 | 374 | 8,280,300 | 28 | 19 | 52 | 99 | 0.45 | 0.36 | ||||||
| Construction - Custom | 364 | 501 | 182,415 | — | — | 2 | 2 | 0.55 | 0.46 | ||||||
| Land - Consumer Lot Loans | 1,017 | 106 | 108,060 | — | — | 1 | 1 | 0.10 | — | ||||||
| HELOC | 4,400 | 61 | 269,857 | 13 | 6 | 6 | 25 | 0.57 | 0.93 | ||||||
| Consumer | 7,677 | 10 | 74,055 | 35 | 27 | 64 | 126 | 1.64 | 1.03 | ||||||
| 41,146 | 513 | $ | 21,120,107 | 79 | 59 | 146 | 284 | 0.69 | % | 53,338 | 0.25 | % | |||
| June 30, 2024 | |||||||||||||||
| Multi-Family | 1,951 | 2,313 | $ | 4,513,323 | — | 1 | 2 | 3 | 0.15 | % | 6,612 | 0.15 | % | ||
| Commercial Real Estate | 1,302 | 2,878 | 3,746,945 | — | 2 | 2 | 4 | 0.31 | 0.02 | ||||||
| Commercial & Industrial | 1,871 | 1,277 | 2,389,236 | 2 | — | 9 | 11 | 0.59 | 0.09 | ||||||
| Construction | 404 | 3,565 | 1,440,152 | — | 1 | 2 | 3 | 0.74 | 0.08 | ||||||
| Land - Acquisition & Development | 82 | 1,908 | 156,424 | — | — | 2 | 2 | 2.44 | 0.05 | ||||||
| Single-Family Residential | 21,789 | 376 | 8,186,361 | 35 | 16 | 56 | 107 | 0.49 | 0.39 | ||||||
| Construction - Custom | 400 | 476 | 190,433 | 1 | — | 1 | 2 | 0.50 | 0.45 | ||||||
| Land - Consumer Lot Loans | 1,037 | 108 | 111,574 | 2 | 1 | 4 | 7 | 0.68 | 0.63 | ||||||
| HELOC | 4,360 | 59 | 258,833 | 10 | 3 | 5 | 18 | 0.41 | 0.87 | ||||||
| Consumer | 7,110 | 12 | 84,462 | 32 | 17 | 48 | 97 | 1.36 | 0.33 | ||||||
| 40,306 | 523 | $ | 21,077,743 | 82 | 41 | 131 | 254 | 0.63 | % | 46,721 | 0.22 | % |
All values are in US Dollars.
| WaFd Fact Sheet Q1 2025 | 7 |
|---|