8-K

WAFD INC (WAFD)

8-K 2025-04-15 For: 2025-04-11
View Original
Added on April 05, 2026

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): April 11, 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 April 11, 2025, WaFd, Inc. (the "Company") announced by press release its earnings for the quarter ended March 31, 2025. A copy of the press release is attached to this filing as Exhibit 99.1. A copy of the March 31, 2025 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 9.01 Financial Statements and Exhibits
99.1 Press release dated April 11, 2025
--- ---
99.2 Fact Sheet as of March 31, 2025

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.

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.

April 15, 2025 WAFD, INC.
By: /s/ KELLI J. HOLZ
Kelli J. Holz
Executive Vice President<br>and Chief Financial Officer

5

Document

Exhibit 99.1

Friday, April 11, 2025<br><br>FOR IMMEDIATE RELEASE

WaFd Announces Quarterly Earnings Per Share Of $0.65

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.<br><br>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 Beardall<br><br>President and CEO of WaFd Bank Net Interest Income and NIM ■$161 million net interest income for the quarter compared to 155 million in Q1.<br><br>■Net interest margin at 2.55% for the quarter compared to 2.39% for Q1. Credit Quality ■Non-performing assets down by $8 million at 0.26% of total assets compared to 0.29% Q1.<br><br>■$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.<br><br>■726,082 shares were repurchased during the quarter

SEATTLE, WASHINGTON – 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.

Quarterly Earnings Release Q2 2025 1

WaFd Inc. Announces Second Quarter Results

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,<br><br>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 9 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 Q2 2025 2

WaFd Inc. Announces Second Quarter Results

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 9 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

Quarterly Earnings Release Q2 2025 3

WaFd Inc. Announces Second Quarter Results

and restructuring charges, return on assets for the quarter is 0.82% compared to adjusted return on assets of 0.79% the prior quarter. For a reconciliation of these adjusted ratios, see the Non-GAAP Financial Measures section below.

Income tax expense totaled $15.8 million the second fiscal quarter of 2025, as compared to $5.1 million for the prior year same quarter. The effective tax rate for the quarter ended March 31, 2025 was 21.88% compared to 21.55% for the quarter ended December 31, 2024. The Company’s effective tax rate may vary from the statutory rate mainly due to state taxes, tax-exempt income and tax-credit investments.

WaFd Bank is headquartered in Seattle, Washington, and has 209 branches in nine western states. To find out more about WaFd Bank, please visit our website www.wafdbank.com. The Company uses its website to distribute financial and other material information about the Company.

#

Quarterly Earnings Release Q2 2025 4

WAFD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)

September 30, 2024
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

All values are in US Dollars.

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

1Accretion and amortization assumed to be same as prior quarter. Also includes the impact of derivatives.

Quarterly Earnings Release Q2 2025 5

WAFD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended March 31, Six Months Ended March 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 % Quarterly Earnings Release Q2 2025 6
--- ---

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
Quarterly Earnings Release Q2 2025 7
--- ---

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 Quarterly Earnings Release Q2 2025 8
--- ---

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 March 31, 2025 December 31, 2024 September 30, 2024 June 30,<br><br>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 % Quarterly Earnings Release Q2 2025 9
--- ---

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,<br>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<br> - 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 % Quarterly Earnings Release Q2 2025 10
--- ---

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,<br>2024 March 31, 2024
(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 $ (257) $ (279) $ (288) $ (299) $ (287)
(Gain)Loss on WaFd Bank equity method investment (155) 48 (896) (748) 2,195
Total non-interest income adjustments $ (412) $ (231) $ (1,184) $ (1,047) $ 1,908
Non-interest expense adjustments
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 Accruals (182) 3,000
Charitable Donation 2,000
5,390 (398) 6,800
Total non-interest expense adjustments $ $ 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 of shares outstanding - GAAP 81,061,206 81,294,227 81,208,683 81,374,811 70,129,072
Diluted weighted average number of shares outstanding - GAAP 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 Quarterly Earnings Release Q2 2025 11
--- ---

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,<br>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 - <br>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 adjustments (412) (231) (1,184) (1,047) 1,908
Non-interest income - <br>non-GAAP $ 18,469 $ 15,471 $ 14,694 $ 16,208 $ 15,300
Net Interest Income - <br>non-GAAP $ 160,910 $ 159,364 $ 172,812 $ 177,186 $ 158,597
Non-interest income - <br>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 % Quarterly Earnings Release Q2 2025 12
--- ---

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,<br>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 % Quarterly Earnings Release Q2 2025 13
--- ---

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.

#

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 Q2 2025 14

Document

WaFd Inc. Announces Second Quarter 2025 Results

WaFd, Inc.

Fact Sheet

March 31, 2025

($ in Thousands)

Exhibit 99.2

As of 09/24 As of 12/24 As of 03/25
Allowance for Credit Losses (ACL) - Total $ 225,253 $ 225,022 $ 222,709
ACL - Loans 203,753 204,522 202,709
ACL - Unfunded Commitments 21,500 20,500 20,000
Total ACL as a % of Gross Loans 1.01 % 1.00 % 1.01 %
09/24 QTR 09/24 YTD 12/24 QTR 12/24 YTD 03/25 QTR 03/25 YTD
Loan Originations - Total $ 962,393 $ 3,632,072 $ 930,689 $ 930,689 $ 1,008,874 $ 1,939,563
Multi-Family 1,997 60,730 6,388 6,388 24,464 30,852
Commercial Real Estate 43,724 246,930 47,726 47,726 82,295 130,021
Commercial & Industrial 431,498 1,677,371 405,877 405,877 429,009 834,886
Construction 191,837 603,829 162,662 162,661 171,344 334,005
Land - Acquisition & Development 15,275 45,406 7,934 7,934 24,474 32,408
Single-Family Residential 138,234 430,272 156,117 156,117 143,203 299,320
Construction - Custom 54,049 209,781 51,009 51,009 28,986 79,995
Land - Consumer Lot Loans 6,946 21,187 4,968 4,968 2,372 7,340
HELOC 42,816 161,917 43,030 43,030 41,897 84,927
Consumer 36,017 174,648 44,978 44,978 60,830 105,808
Purchased Loans (including acquisitions) $ $ 6,207,393 $ 102,016 $ 102,016 $ 3,847 $ 105,863
Loan Repayments & Payoffs - Total $ 1,129,986 $ 4,302,359 $ 981,574 $ 981,574 $ 1,279,011 $ 2,260,585
Multi-Family 48,998 164,139 63,136 63,136 80,455 143,591
Commercial Real Estate 47,456 287,398 114,179 114,179 106,057 220,236
Commercial & Industrial 465,350 1,658,384 338,005 338,005 476,377 814,382
Construction 197,283 969,672 116,331 116,331 164,167 280,498
Land - Acquisition & Development 11,174 72,148 29,960 29,960 25,047 55,007
Single-Family Residential 241,570 738,340 214,726 214,726 327,561 542,287
Construction - Custom 29,210 73,178 21,526 21,526 14,704 36,230
Land - Consumer Lot Loans 10,474 38,088 6,556 6,556 7,104 13,660
HELOC 31,934 130,176 34,048 34,048 32,659 66,707
Consumer 46,537 170,836 43,107 43,107 44,880 87,987
Weighted Average Rate on Originations 7.77 % 6.91 % 7.12 %
Weighted Average Rate on Payoffs 6.65 % 6.50 % 6.74 %
Net Loan Fee Accretion $ 4,118 $ 17,208 $ 3,070 $ 3,070 $ 3,192 $ 6,262
Net Discount Accretion on Acquired Loans $ 6,824 $ 20,281 $ 6,930 $ 6,930 $ 6,447 $ 13,377
MBS Repayments 64,885 195,831 68,287 68,287 59,306 127,593
MBS Net Premium Amortization $ 403 $ 1,060 $ 434 $ 434 $ 877 $ 1,311
WaFd Fact Sheet Q2 2025 1
--- ---

WaFd Inc. Announces Second Quarter 2025 Results

WaFd, Inc.

Fact Sheet

March 31, 2025

($ in Thousands)

As of 09/24 As of 12/24 As of 03/25
Loans Receivable by Category1 Amount % Amount % Amount %
Multi-Family $ 4,658,119 20.8 % $ 4,829,736 21.5 % $ 4,967,125 22.4 %
Commercial Real Estate 3,757,040 16.8 3,637,986 16.2 3,665,363 16.6
Commercial & Industrial 2,337,139 10.5 2,408,693 10.6 2,389,025 10.7
Construction 2,174,254 9.7 2,062,116 9.2 1,791,886 8.1
Land - Acquisition & Development 200,713 0.9 178,687 0.8 178,114 0.8
Single-Family Residential 8,399,030 37.6 8,520,833 38.0 8,401,084 37.9
Construction - Custom 384,161 1.7 335,715 1.5 287,461 1.3
Land - Consumer Lot Loans 108,791 0.6 107,205 0.5 102,475 0.5
HELOC 266,151 1.2 275,132 1.2 284,295 1.3
Consumer 73,998 0.3 75,933 0.3 91,899 0.4
22,359,396 100 % 22,432,036 100 % 22,158,727 100 %
Less:
Loans in Process 1,009,798 903,253 798,996
Net Deferred Fees, Costs and Discounts 229,491 263,760 237,021
Loans at Amortized Cost 21,120,107 21,265,023 21,122,710
Less:
Allowance for Credit Losses (ACL) 203,753 204,522 202,709
Net Loans $ 20,916,354 $ 21,060,501 $ 20,920,001
Net Loan Portfolio by Category1 Amount % Amount % Amount %
Multi-Family $ 4,530,951 21.7 % $ 4,714,800 22.4 % $ 4,840,784 23.2 %
Commercial Real Estate 3,692,946 17.7 3,572,885 17.0 3,601,008 17.2
Commercial & Industrial 2,273,984 10.9 2,343,246 11.1 2,324,598 11.1
Construction 1,401,748 6.7 1,362,145 6.5 1,191,930 5.7
Land - Acquisition & Development 152,416 0.7 139,388 0.7 129,358 0.6
Single-Family Residential 8,239,778 39.4 8,320,765 39.5 8,223,356 39.3
Construction - Custom 180,988 0.9 154,495 0.7 136,424 0.7
Land - Consumer Lot Loans 105,496 0.5 103,961 0.4 99,370 0.4
HELOC 266,808 1.3 275,880 1.3 284,970 1.4
Consumer 71,239 0.3 72,936 0.3 88,203 0.4
$ 20,916,354 100 % $ 21,060,501 100 % $ 20,920,001 100 %
1These loan disclosures are specific to those loans held for investment and exclude loans held for sale. Loan Contractual Term to Maturity or Repricing2 Amount Rate Amount Rate Amount Rate
--- --- --- --- --- --- --- --- --- --- --- --- ---
Within 3 months $ 5,338,837 7.74% $ 5,612,092 7.12% $ 5,577,953 6.98%
From 4 to 6 months 461,449 5.74 372,974 5.83 410,864 5.69
From 7 to 9 months 194,824 5.14 328,727 3.19 341,198 4.70
From 10 to 12 months 261,503 4.95 371,071 4.90 377,179 4.76
1 to 3 years 3,064,601 3.91 3,070,702 4.04 3,063,242 4.22
3 to 5 years 1,973,078 5.06 1,850,505 4.95 1,811,205 4.94
More than 5 years 9,825,815 4.16 9,658,951 4.19 9,541,069 4.22
Total $ 21,120,107 5.17 % $ 21,265,022 5.04 % $ 21,122,710 5.06 %
2Includes the effect of derivatives. WaFd Fact Sheet Q2 2025 2
--- ---

WaFd Inc. Announces Second Quarter 2025 Results

WaFd, Inc.

Fact Sheet

March 31, 2025

($ in Thousands)

As of 09/24 As of 12/24 As of 03/25
Loans by State1 Amount % Amount % Amount %
Washington $ 5,771,729 27.3 % $ 5,857,840 27.5 % $ 5,726,161 27.1 %
Idaho 924,573 4.4 940,094 4.4 935,583 4.4
Oregon 2,463,530 11.7 2,477,443 11.7 2,505,629 11.9
Utah 2,085,051 9.9 2,114,388 9.9 2,129,700 10.1
Nevada 783,600 3.7 773,271 3.5 786,919 3.6
Texas 2,495,541 11.8 2,500,824 11.8 2,417,928 11.4
Arizona 2,319,106 11.0 2,333,725 11.0 2,355,148 11.1
New Mexico 761,853 3.6 766,170 3.6 802,884 3.8
California 3,037,606 14.4 3,037,930 14.3 2,979,107 14.1
Other 477,518 2.3 463,337 2.2 483,651 2.3
Total $ 21,120,107 100 % $ 21,265,022 100 % $ 21,122,710 100 %
Non-Performing Assets Amount % Amount % Amount %
Non-accrual loans1:
Multi-Family $ 18,743 27.0 % $ 24,077 33.2 % $ 10,477 17.5 %
Commercial Real Estate 26,362 37.9 26,292 36.3 29,320 49.0
Commercial & Industrial 1,963 2.7
Construction 1,120 1.6 624 0.9
Land - Acquisition & Development 74 0.1
Single-Family Residential 21,488 30.9 17,440 24.1 18,734 31.3
Construction - Custom 848 1.1 848 1.2 847 1.4
Land - Consumer Lot Loans 8 8
HELOC 596 0.9 786 1.1 300 0.5
Consumer 310 0.3 449 0.6 200 0.3
Total non-accrual loans 69,541 100 % 72,487 100 % 59,886 100 %
Real Estate Owned 4,567 3,316 7,688
Other Property Owned 3,310 3,310 3,310
Total non-performing assets $ 77,418 $ 79,113 $ 70,884
Non-accrual loans as % of total net loans 0.33 % 0.34 % 0.29 %
Non-performing assets as % of total assets 0.28 % 0.29 % 0.26 %
Net Charge-offs (Recoveries) by Category 09/24 QTR CO % (a) 12/24 QTR CO % (a) 03/25 QTR CO % (a)
Multi-Family $ % $ % $ %
Commercial Real Estate 163 0.02 4,223 0.46
Commercial & Industrial 136 0.02 353 0.06 198 0.03
Construction
Land - Acquisition & Development 114 0.23 (12) (0.03) (8) (0.02)
Single-Family Residential (88) (456) (0.02) 331 0.02
Construction - Custom (1)
Land - Consumer Lot Loans (1)
HELOC (1) (1)
Consumer (89) (0.48) 184 0.97 319 1.39
Total net charge-offs (recoveries) $ 70 % $ 231 % $ 5,063 0.09 %

(a)Annualized Net Charge-offs (recoveries) divided by Gross Balance

1 These loan disclosures are specific to those loans held for investment and exclude loans held for sale.

WaFd Fact Sheet Q2 2025 3

WaFd Inc. Announces Second Quarter 2025 Results

WaFd, Inc.

Fact Sheet

March 31, 2025

($ in Thousands)

09/24 QTR 09/24 YTD 12/24 QTR 12/24 YTD 03/25 QTR 03/25 YTD
Efficiency
Operating Expenses/Average Assets 1.54 % 1.71 % 1.62 % 1.62 % 1.53 % 1.58 %
Efficiency Ratio (%) 57.21 % 62.13 % 65.04 % 65.04 % 58.31 % 61.59 %
Amortization of Intangibles $ 2,977 $ 7,743 $ 2,755 $ 2,755 $ 2,553 $ 5,308
EOP Numbers
Shares Issued and Outstanding 81,220,269 81,373,760 80,758,674
Share repurchase information
Remaining shares authorized for repurchase 11,501,005 11,501,005 10,777,898
Shares repurchased 7,174 1,070,207 89,528 89,528 726,082 815,610
Average share repurchase price $ 34.82 $ 25.29 $ 38.09 $ 38.09 $ 29.39 $ 30.35
Tangible Common Shareholders' Book Value As of 09/24 As of 12/24 As of 03/25
--- --- --- --- --- --- ---
$ Amount $ 2,251,875 $ 2,272,423 $ 2,285,960
Per Share 27.73 27.93 28.31
# of Employees 2,208 2,175 2,018
Investments
Available-for-sale:
Agency MBS $ 1,387,025 $ 1,600,089 $ 2,074,672
Other 1,185,684 1,143,642 1,068,091
$ 2,572,709 $ 2,743,731 $ 3,142,763
Held-to-maturity:
Agency MBS $ 436,972 $ 537,348 $ 526,502
$ 436,972 $ 537,348 $ 526,502 WaFd Fact Sheet Q2 2025 4
--- ---

WaFd Inc. Announces Second Quarter 2025 Results

WaFd, Inc.

Fact Sheet

March 31, 2025

($ in Thousands)

As of 09/24 As of 12/24 As of 03/25
Deposits & Branches by State Amount % # Amount % # Amount % #
Washington $ 8,528,608 39.9 % 73 $ 8,589,398 40.1 % 73 $ 8,723,693 40.7 % 73
Idaho 949,025 4.4 22 946,554 4.4 22 949,570 4.4 21
Oregon 2,696,243 12.6 36 2,704,966 12.6 36 2,798,850 13.1 36
Utah 584,001 2.7 9 573,469 2.7 9 601,503 2.8 9
Nevada 527,704 2.5 8 531,383 2.5 8 538,439 2.5 8
Texas 398,736 1.8 5 683,513 3.2 5 398,210 1.9 5
Arizona 1,619,101 7.6 28 1,628,742 7.6 28 1,676,939 7.8 28
New Mexico 1,622,534 7.6 19 1,568,788 7.3 19 1,666,280 7.8 19
California 4,448,018 20.8 10 4,211,964 19.6 10 4,073,942 19.0 10
Total $ 21,373,970 100 % 210 $ 21,438,777 100 % 210 $ 21,427,426 100 % 209
Deposits by Type Amount % Amount % Amount %
Non-Interest Checking $ 2,500,467 11.7 % $ 2,489,394 11.6 % $ 2,400,172 11.2 %
Interest Checking 4,486,444 21.0 4,554,922 21.2 4,625,596 21.6
Savings 718,560 3.4 714,755 3.4 715,199 3.3
Money Market 4,111,714 19.2 4,094,788 19.1 4,113,017 19.2
Time Deposits 9,556,785 44.7 9,584,918 44.7 9,573,442 44.7
Total $ 21,373,970 100 % $ 21,438,777 100 % $ 21,427,426 100 %
Deposits Uninsured & <br>Non-collateralized - EOP $ 5,134,192 24.0 % $ 5,317,511 24.8 % $ 5,490,142 25.6 %
Time Deposit Repricing Amount Rate Amount Rate Amount Rate
Within 3 months $ 2,923,299 4.72 % $ 3,744,158 4.59 % $ 3,380,830 4.31 %
From 4 to 6 months 3,140,278 4.65 % 2,655,054 4.38 % 3,153,646 4.23 %
From 7 to 9 months 1,236,201 4.49 % 1,538,725 4.49 % 1,412,021 3.86 %
From 10 to 12 months 1,307,000 4.37 % 836,930 3.41 % 962,710 3.39 %
Borrowings (Effective Maturity) Amount Rate Amount Rate Amount Rate
Within 3 months $ 449,584 5.39 % $ 1,850,825 4.84 % $ 1,750,000 4.50 %
From 4 to 6 months 1,824,483 4.91 % % %
From 7 to 9 months % % %
From 10 to 12 months % % 100,000 1.67 %
1 to 3 years 193,355 3.17 % 194,284 3.14 % 95,193 4.66 %
3 to 5 years % 18,400 % 18,565 0.04 %
More than 5 years 850,885 1.23 % 851,118 1.15 % 851,180 0.95 %
Total $ 3,318,307 $ 2,914,627 $ 2,814,938
09/24 QTR 09/24 YTD 12/24 QTR 12/24 YTD 03/25 QTR 03/25 YTD
--- --- --- --- --- --- --- --- --- --- --- --- ---
Net Premium(Discount) Amortization on Acquired Deposits and Borrowings $ 305 $ (185) $ (2,920) $ (2,920) $ (1,811) $ (4,731) WaFd Fact Sheet Q2 2025 5
--- ---

WaFd Inc. Announces Second Quarter 2025 Results

WaFd, Inc.

Fact Sheet

March 31, 2025

($ in Thousands)

Interest Rate Risk(b) As of 09/24 As of 12/24 As of 03/25
NPV post up 100 bps shock 8.7 % 9.5 % 9.4 %
NPV post down 100 bps shock 10.2 % 11.6 % 11.6 %
Change in NII after up 100 bps shock 0.2 % 1.3 % 1.0 %
Change in NII after down 100 bps shock 0.4 % 2.0 % 1.3 %
(b)Assumes no balance sheet management actions taken.
Historical CPR Rates (c)
--- --- --- --- ---
Average for Quarter Ended: WAFD<br>SFR Mortgages WAFD<br>GSE MBS
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 %
3/31/2025 8.1 % 9.1 %

(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 Q2 2025 6

WaFd Inc. Announces Second Quarter 2025 Results

WaFd, Inc.

Fact Sheet

March 31, 2025

Average Balance Sheet

($ in Thousands)

Quarter Ended
September 30, 2024 December 31, 2024 March 31, 2025
Average Balance Interest Average Rate Average Balance Interest Average Rate Average Balance Interest Average Rate
Assets
Loans receivable $ 21,258,400 $ 308,598 5.78 % $ 20,954,663 $ 286,597 5.43 % $ 20,918,986 $ 282,077 5.47 %
Mortgage-backed securities 1,817,639 18,088 3.96 1,882,688 18,337 3.86 2,369,535 23,926 4.10
Cash & investments 3,061,063 43,661 5.67 2,855,030 37,941 5.27 2,216,944 27,631 5.05
FHLB Stock 99,195 3,750 15.04 106,062 2,242 8.39 123,346 2,450 8.06
Total interest-earning assets 26,236,297 374,097 5.67 % 25,798,443 345,117 5.31 % 25,628,811 336,084 5.32 %
Other assets 1,764,185 1,706,133 1,742,509
Total assets $ 28,000,482 $ 27,504,576 $ 27,371,320
Liabilities and Shareholders' Equity
Interest-bearing customer accounts $ 18,590,638 165,240 3.54 % $ 18,743,048 162,150 3.43 % $ 18,881,290 151,948 3.26 %
Borrowings 3,535,015 36,045 4.05 2,899,012 27,536 3.77 2,723,664 23,226 3.46
Total interest-bearing liabilities 22,125,653 201,285 3.62 % 21,642,060 189,686 3.48 % 21,604,954 175,174 3.29 %
Noninterest-bearing customer accounts 2,588,528 2,523,510 2,448,965
Other liabilities 290,208 323,809 278,380
Total liabilities 25,004,389 24,489,379 24,332,299
Stockholders’ equity 2,996,093 3,015,197 3,039,021
Total liabilities and equity $ 28,000,482 $ 27,504,576 $ 27,371,320
Net interest income/interest rate spread $ 172,812 2.05 % $ 155,431 1.83 % $ 160,910 2.03 %
Net interest margin(1) 2.62 % 2.39 % 2.55 %

(1)Annualized net interest income divided by average interest-earning assets

WaFd Fact Sheet Q1 2025 7

WaFd Inc. Announces Second Quarter 2025 Results

WaFd, Inc.

Fact Sheet

March 31, 2025

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 #
March 31, 2025
Multi-Family 1,901 2,560 $ 4,867,340 12 3 15 0.79 % 15,220 0.31 %
Commercial Real Estate 1,288 2,826 3,639,477 2 1 2 5 0.39 0.10
Commercial & Industrial 2,057 1,159 2,384,745 10 1 10 21 1.02
Construction 370 3,274 1,211,336
Land - Acquisition & Development 70 1,944 136,061
Single-Family Residential 21,516 384 8,264,318 46 15 60 121 0.56 0.42
Construction - Custom 266 517 137,501 2 2 0.75 0.62
Land - Consumer Lot Loans 976 104 101,784 1 2 3 0.31 0.17
HELOC 4,473 64 288,228 12 6 24 0.54 0.98
Consumer 8,463 11 91,920 22 18 42 82 0.97 0.74
41,380 510 $ 21,122,710 105 41 127 273 0.66 % 57,947 0.27 %
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 3 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 %

All values are in US Dollars.

WaFd Fact Sheet Q1 2025 8