WaFd Announces Quarterly Earnings Per Share of $0.65

Rhea-AI Summary

WaFd (WAFD) reported Q2 fiscal 2025 earnings of $56.25 million, representing a 19% increase from the previous quarter and a 254% increase year-over-year. The bank achieved diluted earnings per share of $0.65, up from $0.54 in Q1.

Key highlights include:

• Net interest income of $161 million with a net interest margin of 2.55%
• 20% increase in non-interest income driven by WaFd Insurance revenue
• Non-performing assets decreased to 0.26% of total assets
• 726,082 shares repurchased during the quarter
• Paid $0.27 per share quarterly dividend

The bank reported success in its business banking initiative with 382 new small business loans originated through branches and a 125% increase in merchant processing referrals quarter-over-quarter. WaFd Insurance showed 53% year-over-year profit growth.

Positive

• Net income increased 19% quarter-over-quarter to $56.25 million
• Net interest margin improved to 2.55% from 2.39% in Q1
• Non-interest income increased 20% driven by insurance revenue growth
• Non-performing assets decreased to 0.26% from 0.29% of total assets
• Successfully launched small business initiative with 382 new loans

Negative

• Net loans remained flat at $20.9 billion
• Total assets decreased to $27.6 billion from $28.1 billion
• Net charge-offs increased to $5.06 million from $231,000 in previous quarter
• Criticized loans increased to 3.32% from 2.54% of net loans

Insights

Financial Analyst

WaFd delivered impressive Q2 results with $56.25 million in net income (19% sequential increase) and diluted EPS of $0.65 (20% above Q1's $0.54). The bank's strategic pivot toward higher-margin business banking is showing early traction with 382 new small business loans originated through branches compared to none last quarter.

The net interest margin expanded significantly to 2.55% from 2.39% sequentially, driving a $5.5 million increase in net interest income to $161 million. This margin expansion occurred despite a challenging rate environment, demonstrating effective balance sheet management. Meanwhile, the efficiency ratio improved to 58.31% from 65.04%, reflecting both higher revenues and disciplined expense control.

Credit quality metrics remain solid, with non-performing assets declining to 0.26% of total assets from 0.29% in Q1, and the allowance for credit losses at 1.01% of gross loans. While net charge-offs increased to $5.06 million from $231,000 last quarter, this appears manageable given the bank's stable loan portfolio and robust reserves.

WaFd continued its shareholder-friendly capital deployment with its 168th consecutive quarterly dividend of $0.27 per share and repurchased 726,082 shares at an average price of $29.39, below tangible book value of $28.31. The bank's tangible common equity ratio stands at a healthy 9.51%, providing ample capacity for continued growth and capital returns.

SEATTLE--(BUSINESS WIRE)-- WaFd, Inc. (Nasdaq: WAFD):

Q2 Highlights
$56 Million		$0.65		0.82%		7.68%
Net Income		Diluted Earnings per Common Share		Return on Average Assets		Return on Average Common Equity

"In the second quarter of fiscal 2025 our margin bounced back, expenses declined, and bottom-line results improved for shareholders. We are enthusiastic about the shift toward business banking we implemented last quarter and are pleased to see early successes including 382 new small business loans originated through our branches (compared to none in the prior quarter), merchant processing referrals increasing 125% on a linked quarter basis, and our insurance subsidiary delivering 53% year over year growth in profit. Additionally, we have been able to hire two former executives from the Small Business Administration to assist in establishing SBA lending at WaFd. We understand that our continued evolution toward higher margin business lines will be measured in years, not quarters, but we are off to a good start.

"This quarter we were recognized by JD Power as the 2nd best for customer service among all banks doing business in the Pacific Northwest. This is a well-deserved compliment to our team of bankers that focus first on our clients."

Brent Beardall
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.		Credit Quality	•	Non-performing assets down by $8 million at 0.26% of total assets compared to 0.29% Q1.
	•	Net interest margin at 2.55% for the quarter compared to 2.39% for Q1.			•	$2.75 million provision the result of net charge-offs offset by a stable loans receivable balance.
Non-Interest Income and Expense	•	20% increase in non-interest income compared to Q1 driven by WaFd Insurance revenue increase: $1.7 million over the December quarter and $1.3 million over March 2024.		Shareholder Returns and Stock Activity	•	On March 7, 2025, the Company paid a cash dividend of $0.27 per share, 168th consecutive quarterly dividend paid.
					•	726,082 shares were repurchased during the quarter

WaFd, Inc. (Nasdaq: WAFD) (the "Company"), parent company of Washington Federal Bank ("WaFd Bank" or the "Bank"), today announced quarterly earnings of $56,252,000 for the quarter ended March 31, 2025, an increase of 19% from net earnings of $47,267,000 for the quarter ended December 31, 2024 and an increase of 254% from net earnings of $15,888,000 for the quarter ended March 31, 2024. After the effect of dividends on preferred stock, net income available for common shareholders was $0.65 per diluted share for the quarter ended March 31, 2025, compared to $0.54 per diluted share for the quarter ended December 31, 2024, an $0.11 or 20% increase, and $0.17 per diluted share for the quarter ended March 31, 2024, a $0.48 or 282% increase in fully diluted earnings per common share. The March 31, 2024 results reflected significant acquisition-related expenses and certain non-operating adjustments of $51.1 million and the December 31, 2024 results reflected one-time restructuring charges of $5.4 million.

The following table provides the Company's financial scorecard for the last five quarters:

		As of
(In thousands, except share and ratio data)		March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024
BALANCE SHEET
Cash		$	1,231,461			$	1,507,735			$	2,381,102			$	2,492,504			$	1,505,771
Loans receivable, net			20,920,001				21,060,501				20,916,354				20,873,919				20,795,259
Allowance for credit losses ("ACL")			222,709				225,022				225,253				225,324				225,077
Loans held for sale			—				—				—				468,527				2,993,658
Available-for-sale securities, at fair value			3,142,763				2,743,731				2,572,709				2,428,768				2,438,114
Held-to-maturity securities, at amortized cost			526,502				537,348				436,972				447,638				457,882
Total investments			3,669,265				3,281,079				3,009,681				2,876,406				2,895,996
Total assets			27,644,637				27,684,454				28,060,330				28,580,800				30,140,288
Transaction deposits			11,853,984				11,853,859				11,817,185				11,929,005				12,338,862
Time deposits			9,573,442				9,584,918				9,556,785				9,255,760				9,000,911
Total deposits			21,427,426				21,438,777				21,373,970				21,184,765				21,339,773
Borrowings			2,814,938				2,914,627				3,318,307				4,079,360				5,489,501
Total shareholders' equity			3,032,620				3,021,636				3,000,300				2,958,339				2,921,906
Loans to customer deposits2			97.63	%			98.24	%			97.86	%			98.53	%			97.45	%
PROFITABILITY
Net income		$	56,252			$	47,267			$	61,140			$	64,560			$	15,888
Net income to common shareholders			52,596				43,611				57,484				60,904				12,232
Earnings per common share			0.65				0.54				0.71				0.75				0.17
Return on tangible common equity1			9.18	%			7.69	%			10.24	%			11.10	%			2.47	%
Return on tangible assets1			0.84	%			0.70	%			0.89	%			0.88	%			0.26	%
Net interest margin			2.55	%			2.39	%			2.62	%			2.56	%			2.73	%
Efficiency ratio			58.31	%			65.04	%			57.21	%			56.61	%			77.74	%
FINANCIAL HIGHLIGHTS
Common shareholders' equity per share		$	33.84			$	33.45			$	33.25			$	32.76			$	32.21
Tangible common shareholders' equity per share1			28.31				27.93				27.73				27.18				26.64
Shareholders' equity to total assets			10.97	%			10.91	%			10.69	%			10.35	%			9.69	%
Tangible shareholders' equity to tangible assets1			9.51	%			9.45	%			9.24	%			8.91	%			8.31	%
Common shares outstanding			80,758,674				81,373,760				81,220,269				81,157,173				81,405,391
Preferred shares outstanding			300,000				300,000				300,000				300,000				300,000
CREDIT QUALITY2
ACL to gross loans			1.01	%			1.00	%			1.01	%			1.00	%			1.00	%
Non-accrual loans to net loans			0.29	%			0.34	%			0.33	%			0.29	%			0.29	%
Delinquencies to net loans			0.27	%			0.30	%			0.25	%			0.22	%			0.36	%
Non-performing assets to total assets			0.26	%			0.29	%			0.28	%			0.24	%			0.23	%
Criticized loans to net loans			3.32	%			2.54	%			2.41	%			3.01	%			2.59	%
Substandard loans to net loans			2.38	%			1.96	%			2.04	%			1.84	%			1.48	%

(1)		Metric is a non-GAAP Financial Measure. See page 10 for additional information on our use of non-GAAP Financial Measures.
(2)		Metrics include only loans held for investment. Loans held for sale are not included.

Balance Sheet Total assets decreased to $27.6 billion as of March 31, 2025, compared to $28.1 billion at September 30, 2024, primarily due to cash used to reduce borrowings and purchase investments during the period. Net loans were flat at $20.9 billion and cash decreased $1.1 billion, or 48.3%. Investment securities increased by $660 million, or 21.9% in the first half of FY 2025.

Customer deposits totaled $21.4 billion as of March 31, 2025, largely unchanged from September 30, 2024. Transaction accounts increased by $37 million or 0.3% during the period, while time deposits increased $17 million or 0.2%. As of March 31, 2025, 55.3% of the Company’s deposits were transaction accounts, similar to September 30, 2024. Core deposits, defined as all transaction accounts and time deposits less than $250,000, totaled 78.8% of deposits at March 31, 2025, up from 75.1% on September 30, 2024. Deposits that are uninsured or not collateralized were 25.6% as of March 31, 2025, an increase from 24.0% as of September 30, 2024.

Borrowings totaled $2.8 billion as of March 31, 2025, down from $3.3 billion at September 30, 2024. The effective weighted average interest rate of borrowings was 3.30% as of March 31, 2025, compared to 3.93% at September 30, 2024.

Loan originations totaled $1.0 billion for the second fiscal quarter of 2025, compared to $0.9 billion of originations in the prior quarter. Offsetting loan originations in each of these quarters were loan repayments of $1.3 billion and $1.0 billion, respectively. Commercial loans represented 73% of all loan originations during the second fiscal quarter of 2025 and consumer loans accounted for the remaining 27%. The period end interest yield on the loan portfolio was 5.42% as of March 31, 2025, a decrease from 5.62% as of September 30, 2024.

Tangible common equity per share is a key metric for our management team. For the March quarter, tangible book value per share grew from $27.73 as of September 30, 2024 to $28.31 at March 31, 2025. This metric is a non-GAAP Financial Measure. See page 10 for additional information on our use of non-GAAP Financial Measures. During the quarter, the Company repurchased 726,082 shares of common stock at a weighted average price of $29.39. Our share repurchase plan currently has an authorization of 10.8 million shares, which provides what we believe is a compelling investment alternative.

Credit Quality Credit quality continues to be monitored closely in light of the shifting economic and monetary environment. As of March 31, 2025, non-performing assets decreased to $71 million, or 0.26% of total assets, from $77 million, or 0.28%, at September 30, 2024. The change fiscal year to date is due primarily to non-accrual loans decreasing by $9.7 million, or 14%, since September 30, 2024. Delinquent loans were slightly increased at 0.27% of total loans at March 31, 2025, compared to 0.25% at September 30, 2024 but improved compared to 0.30% at December 31, 2024. The allowance for credit losses (including the reserve for unfunded commitments) totaled $223 million as of March 31, 2025, and was 1.01% of gross loans outstanding, as compared to $225 million, or 1.01% of gross loans outstanding, as of September 30, 2024. Net charge-offs were $5,063,000 for the second fiscal quarter of 2025, compared to $231,000 for the prior quarter.

Profitability Net interest income was $161 million for the second fiscal quarter of 2025, an increase of $5.5 million or 4% from the prior quarter. The increase in net interest income was primarily due to a 19 basis point decrease in the rate paid on interest bearing liabilities offset by a $170 million decrease in interest earning asset balances for which the yield was flat. Net interest margin was 2.55% in the second fiscal quarter of 2025 compared to 2.39% for the quarter ended December 31, 2024.

Total non-interest income was $18.9 million for the second fiscal quarter of 2025 compared to $15.7 million the prior quarter. The increase compared to the prior quarter was primarily due to increased prepayment fees earned on loans and increased commission income from the Bank's insurance subsidiary, WaFd Insurance.

Total non-interest expense was $104.8 million in the second fiscal quarter of 2025, a decrease of $6.5 million, or 5.8%, from the prior quarter. The overall decrease is the result of the $5.4 million of restructuring costs incurred in the prior quarter. Decreased expenses combined with increased net interest income resulted in a decrease in the Company’s efficiency ratio in the second fiscal quarter of 2025 to 58.3%, compared to 65.0% in the prior quarter.

The Company recorded a $2.8 million provision for credit losses in the second fiscal quarter of 2025 compared to no provision the prior quarter. The provision for loan losses in the quarter ended March 31, 2025 was primarily the result of the stable loans receivable balance offset by $5.1 million of net charge-offs taken during the quarter.

Return on common shareholders' equity for the quarter ended March 31, 2025 was 7.68% compared to 6.42% for the quarter ended December 31, 2024. Adjusted for certain non-operating items and restructuring charges, return on equity for the quarter is 7.66% compared to adjusted return on equity of 7.45% the prior quarter. Return on assets for the quarter ended March 31, 2025 was 0.82% compared to 0.69% for the previous quarter. Adjusted for certain non-operating items and restructuring charges, return on assets for the quarter is 0.82% compared to adjusted return on assets of 0.79% the prior quarter. For a reconciliation of these adjusted ratios, see the Non-GAAP Financial Measures section below.

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

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

WAFD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
		March 31, 2025				September 30, 2024
		(In thousands, except share and ratio data)
ASSETS
Cash and cash equivalents		$	1,231,461			$	2,381,102
Available-for-sale securities, at fair value			3,142,763				2,572,709
Held-to-maturity securities, at amortized cost			526,502				436,972
Loans receivable, net of allowance for loan losses of $202,709 and $203,753			20,920,001				20,916,354
Interest receivable			101,778				102,827
Premises and equipment, net			250,896				247,901
Real estate owned			7,688				4,567
FHLB stock			133,964				95,617
Bank owned life insurance			271,321				267,633
Intangible assets, including goodwill of $414,723 and $411,360			446,660				448,425
Deferred tax assets, net			122,739				119,248
Other assets			488,864				466,975
		$	27,644,637			$	28,060,330
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Transaction deposits		$	11,853,984			$	11,817,185
Time deposits			9,573,442				9,556,785
Total customer deposits			21,427,426				21,373,970
Borrowings			2,763,758				3,267,589
Junior subordinated debentures			51,180				50,718
Advance payments by borrowers for taxes and insurance			44,496				61,330
Accrued expenses and other liabilities			325,157				306,423
			24,612,017				25,060,030
Shareholders’ equity
Preferred stock, $1.00 par value, 5,000,000 shares authorized; 300,000 and 300,000 shares issued; 300,000 and 300,000 shares outstanding			300,000				300,000
Common stock, $1.00 par value, 300,000,000 shares authorized; 154,355,059 and 154,007,429 shares issued; 80,758,674 and 81,220,269 shares outstanding			154,355				154,007
Additional paid-in capital			2,158,037				2,150,675
Accumulated other comprehensive income (loss), net of taxes			51,404				55,851
Treasury stock, at cost 73,596,385 and 72,787,160 shares			(1,663,739	)			(1,639,131	)
Retained earnings			2,032,563				1,978,898
			3,032,620				3,000,300
		$	27,644,637			$	28,060,330

Yield and margin as of period end
Loans receivable1		5.42	%		5.62	%
Mortgage-backed securities		4.22			4.00
Combined cash, investments and FHLB stock		4.62			5.10
Interest-earning assets		5.22			5.44
Interest-bearing customer accounts		3.16			3.50
Borrowings1		3.30			3.93
Interest-bearing liabilities		3.17			3.56
Net interest spread		2.05			1.88
Net interest margin		2.55			2.44

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

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

WAFD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
		Three Months Ended
		March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024
		(In thousands, except share and ratio data)
INTEREST INCOME
Loans receivable		$	282,077			$	286,597			$	308,598			$	337,118			$	274,341
Mortgage-backed securities			23,926				18,337				18,088				17,523				12,905
Investment securities and cash equivalents			30,081				40,183				47,411				37,300				31,580
			336,084				345,117				374,097				391,941				318,826
INTEREST EXPENSE
Customer accounts			151,948				162,150				165,240				154,359				116,164
Borrowings, senior debt and junior subordinated debentures			23,226				27,536				36,045				60,396				44,065
			175,174				189,686				201,285				214,755				160,229
Net interest income			160,910				155,431				172,812				177,186				158,597
Provision for credit losses			2,750				—				—				1,500				16,000
Net interest income after provision			158,160				155,431				172,812				175,686				142,597
NON-INTEREST INCOME
Gain on sale of investment securities			—				20				91				80				90
Gain on termination of hedging derivatives			65				5				72				54				6
Loan fee income			1,812				1,345				757				594				550
Deposit fee income			7,057				7,046				7,047				6,960				6,698
Other income			9,947				7,286				7,911				9,567				6,048
Total non-interest income			18,881				15,702				15,878				17,255				13,392
NON-INTEREST EXPENSE
Compensation and benefits			52,710				59,927				53,983				57,169				73,155
Occupancy			11,499				10,788				10,843				10,904				10,918
FDIC insurance premiums			5,800				4,850				6,800				7,600				7,900
Product delivery			6,907				5,785				6,306				6,090				5,581
Information technology			14,481				14,192				14,129				13,428				12,883
Other expense			13,435				15,769				15,880				14,888				23,275
Total non-interest expense			104,832				111,311				107,941				110,079				133,712
Gain (loss) on real estate owned, net			(199	)			429				(83	)			(124	)			(1,315	)
Income before income taxes			72,010				60,251				80,666				82,738				20,962
Income tax provision			15,758				12,984				19,526				18,178				5,074
Net income			56,252				47,267				61,140				64,560				15,888
Dividends on preferred stock			3,656				3,656				3,656				3,656				3,656
Net income available to common shareholders		$	52,596			$	43,611			$	57,484			$	60,904			$	12,232

WAFD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
		Three Months Ended
		March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024
		(In thousands, except share and ratio data)
PER SHARE DATA
Basic earnings per common share		$	0.65			$	0.54			$	0.71			$	0.75			$	0.17
Diluted earnings per common share			0.65				0.54				0.71				0.75				0.17
Cash dividends per common share			0.27				0.26				0.26				0.26				0.26
Basic weighted average shares outstanding			81,061,206				81,294,227				81,208,683				81,374,811				70,129,072
Diluted weighted average shares outstanding			81,105,536				81,401,599				81,353,644				81,393,708				70,164,558
PERFORMANCE RATIOS
Return on average assets			0.82	%			0.69	%			0.87	%			0.87	%			0.26	%
Return on average common equity			7.68				6.42				8.53				9.20				2.09
Net interest margin			2.55				2.39				2.62				2.56				2.73
Efficiency ratio			58.31				65.04				57.21				56.61				77.74

WAFD, INC. AND 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, 2024				March 31, 2024
		(Unaudited - In thousands, except for ratio data)
Shareholders' equity - GAAP		$	3,032,620			$	3,021,636			$	3,000,300			$	2,958,339			$	2,921,906
Less intangible assets - GAAP			446,660				449,213				448,425				452,255				453,539
Tangible shareholders' equity		$	2,585,960			$	2,572,423			$	2,551,875			$	2,506,084			$	2,468,367
Less preferred stock - GAAP			300,000				300,000				300,000				300,000				300,000
Tangible common shareholders' equity		$	2,285,960			$	2,272,423			$	2,251,875			$	2,206,084			$	2,168,367
Total assets - GAAP		$	27,644,637			$	27,684,454			$	28,060,330			$	28,580,800			$	30,140,288
Less intangible assets - GAAP			446,660				449,213				448,425				452,255				453,539
Tangible assets		$	27,197,977			$	27,235,241			$	27,611,905			$	28,128,545			$	29,686,749
Tangible Metrics
Common shares outstanding - GAAP			80,758,674				81,373,760				81,220,269				81,157,173				81,405,391
Tangible common equity per share		$	28.31			$	27.93			$	27.73			$	27.18			$	26.64
Tangible equity to tangible assets			9.51	%			9.45	%			9.24	%			8.91	%			8.31	%

WAFD, INC. AND SUBSIDIARIES
NON-GAAP MEASURES
(UNAUDITED)
		Three Months Ended
Average Tangible Measures		March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024
		(Unaudited - In thousands, except for ratio data)
Average shareholders' equity - GAAP		$	3,039,021			$	3,015,197			$	2,996,093			$	2,947,056			$	2,638,483
Less average preferred stock - GAAP			300,000				300,000				300,000				300,000				300,000
Less average intangible assets - GAAP			448,272				447,754				451,204				453,142				360,251
Average tangible common equity		$	2,290,749			$	2,267,443			$	2,244,889			$	2,193,914			$	1,978,232
Average Assets - GAAP		$	27,371,320			$	27,504,576			$	28,000,482			$	29,703,337			$	24,907,376
Less average intangible assets - GAAP			448,272				447,754				451,204				453,142				360,251
Average tangible assets		$	26,923,048			$	27,056,822			$	27,549,278			$	29,250,195			$	24,547,125
Average Tangible Metrics
Net income - GAAP			56,252				47,267				61,140				64,560				15,888
Net income available to common shareholders' - GAAP			52,596				43,611				57,484				60,904				12,232
Return on tangible common equity			9.18	%			7.69	%			10.24	%			11.10	%			2.47	%
Return on tangible assets			0.84	%			0.70	%			0.89	%			0.88	%			0.26	%

WAFD, INC. AND SUBSIDIARIES
NON-GAAP MEASURES
(UNAUDITED)
		Three Months Ended
Net Income Adjusted for Acquisition Expenses and Other Non-Operating Items		March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024
		(Unaudited - In thousands, except for ratio data)
Interest income
LBC Hedge Valuation Adj		$	—			$	3,933			$	—			$	—			$	—
Non-interest income
Distribution received on LBC equity method investment		$	(257	)		$	(279	)		$	(288	)		$	(299	)		$	(287	)
(Gain)Loss on WaFd Bank equity method investment			(155	)			48				(896	)			(748	)			2,195
Total non-interest income		$	(412	)		$	(231	)		$	(1,184	)		$	(1,047	)		$	1,908
Non-interest expense
Acquisition-related expenses		$	—			$	239			$	(1,602	)		$	2,285			$	25,120
Non-operating expenses:
Restructuring Charges			—				5,390				—				—				—
FDIC Special Assessment			—				—				(216	)			—				1,800
Legal and Compliance			—				—				(182	)			—				3,000
Charitable Donation			—				—				—				—				2,000
			—				5,390				(398	)			—				6,800
Total non-interest expense		$	—			$	5,629			$	(2,000	)		$	2,285			$	31,920
Net Income - GAAP		$	56,252			$	47,267			$	61,140			$	64,560			$	15,888
Preliminary ACL provision on LBC loans			—				—				—				—				16,000
Interest income adjustments			—				3,933				—				—				—
Non-interest income adjustments			(412	)			(231	)			(1,184	)			(1,047	)			1,908
Non-interest expense adjustments			—				5,629				(2,000	)			2,285				31,920
REO adjustments			199				(429	)			83				124				1,315
Income tax adjustment			47				(1,918	)			751				(299	)			(12,274	)
Net Income - non-GAAP		$	56,086			$	54,251			$	58,790			$	65,623			$	54,757
Dividend on preferred stock			3,656				3,656				3,656				3,656				3,656
Net Income available to common shareholders' - non-GAAP		$	52,430			$	50,595			$	55,134			$	61,967			$	51,101
Basic weighted average number			81,061,206				81,294,227				81,208,683				81,374,811				70,129,072
Diluted weighted average			81,105,536				81,401,599				81,353,644				81,393,708				70,164,558
Basic EPS - non-GAAP		$	0.65			$	0.62			$	0.68			$	0.76			$	0.73
Diluted EPS - non-GAAP			0.65				0.62				0.68				0.76				0.73

WAFD, INC. AND SUBSIDIARIES
NON-GAAP MEASURES
(UNAUDITED)
		Three Months Ended
Adjusted Efficiency Ratio		March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
		(Unaudited - In thousands, except for ratio data)
Efficiency ratio - GAAP		58.3	%		65.0	%		57.2	%		56.6	%		77.7	%
Net interest income - GAAP		$ 160,910			$ 155,431			$ 172,812			$ 177,186			$ 158,597
Total interest income adjustments		—			3,933			—			—			—
Net interest income - non-GAAP		$ 160,910			$ 159,364			$ 172,812			$ 177,186			$ 158,597
Non-interest expense - GAAP		$ 104,832			$ 111,311			$ 107,941			$ 110,079			$ 133,712
Less merger related expenses		—			239			(1,602	)		2,285			25,120
Less non-operating expenses		—			5,390			(398	)		—			6,800
Non-interest Expenses - non-GAAP		$ 104,832			$ 105,682			$ 109,941			$ 107,794			$ 101,792
Non-interest income - GAAP		$ 18,881			$ 15,702			$ 15,878			$ 17,255			$ 13,392
Total other income		(412	)		(231	)		(1,184	)		(1,047	)		1,908
Non-interest income - non-GAAP		$ 18,469			$ 15,471			$ 14,694			$ 16,208			$ 15,300
Net Interest Income - non-GAAP		$ 160,910			$ 159,364			$ 172,812			$ 177,186			$ 158,597
Non-interest income - non-GAAP		18,469			15,471			14,694			16,208			15,300
Total Income - non-GAAP		$ 179,379			$ 174,835			$ 187,506			$ 193,394			$ 173,897
Adjusted Efficiency Ratio		58.4	%		60.4	%		58.6	%		55.7	%		58.5	%

WAFD, INC. AND SUBSIDIARIES
NON-GAAP MEASURES
(UNAUDITED)
		Three Months Ended
Adjusted ROA and ROE		March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024
		(Unaudited - In thousands, except for ratio data)
Reported:
Net Income - GAAP		$	56,252			$	47,267			$	61,140			$	64,560			$	15,888
Net income available to common shareholders' - GAAP		$	52,596			$	43,611			$	57,484			$	60,904			$	12,232
Average Assets			27,371,320				27,504,576				28,000,482				29,703,337				24,907,376
Return on Assets			0.82	%			0.69	%			0.87	%			0.87	%			0.26	%
Average Common Equity		$	2,739,021			$	2,715,197			$	2,696,093			$	2,647,056			$	2,338,483
Return on common equity			7.68	%			6.42	%			8.53	%			9.20	%			2.09	%
Adjusted:
Net Income - non-GAAP		$	56,086			$	54,251			$	58,790			$	65,623			$	54,757
Net income available to common shareholders' - non-GAAP		$	52,430			$	50,595			$	55,134			$	61,967			$	51,101
Average Assets			27,371,320				27,504,576				28,000,482				29,703,337				24,907,376
Adjusted Return on Assets			0.82	%			0.79	%			0.84	%			0.88	%			0.88	%
Average Common Equity			2,739,021				2,715,197				2,696,093				2,647,056				2,338,483
Adjusted Return on common equity			7.66	%			7.45	%			8.18	%			9.36	%			8.74	%

Important Cautionary Statements

The foregoing information should be read in conjunction with the financial statements, notes and other information contained in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

This press release contains statements about the Company’s future that are not statements of historical or current fact. These statements are “forward-looking statements” for purposes of applicable securities laws and are based on current information and/or management's good faith belief as to future events. Words such as “expects,” “anticipates,” “believes,” “estimates,” “intends,” “forecasts,” “may,” “potential,” “projects,” and other similar expressions or future or conditional verbs such as “will,” “should,” “would,” and “could” are intended to help identify such forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes any such statements are based on reasonable assumptions, forward-looking statements should not be read as a guarantee of future performance, and you are cautioned not to place undue reliance on any forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statement.

By their nature, forward-looking statements involve inherent risk and uncertainties including the following risks and uncertainties, and those risks and uncertainties more fully discussed under “Risk Factors” in the Company’s September 30, 2024 10-K and Quarterly Reports on Form 10-Q, which could cause actual performance to differ materially from that anticipated by any forward-looking statements. Forward-looking statements relating to our financial condition or operations are subject to risks and uncertainties related to (i) fluctuations in interest rate risk and market interest rates, including the effect on our net interest income and net interest margin; (ii) current and future economic conditions, including the effects of declines in the real estate market, tariffs, high unemployment rates, inflationary pressures, a potential recession, the monetary policies of the Federal Reserve, and slowdowns in economic growth either nationally or locally in some or all of the areas in which we conduct business; (iii) financial stress on borrowers (consumers and businesses) as a result of higher interest rates or an uncertain economic environment; (iv) changes in deposit flows or loan demands; (v) our ability to identify and address cyber-security risks, including security breaches, "denial of service attacks," "hacking" and identity theft; (vi) the Company's exit from the mortgage lending business; (vii) the effects of natural or man-made disasters, calamities, or conflicts, including terrorist events and pandemics (such as the COVID-19 pandemic) and the resulting governmental and societal responses; (viii) the results of examinations by regulatory authorities, including a "Needs to Improve" CRA rating, which may impose restrictions or penalties on the Company's activities; (ix) expectations regarding key growth initiatives and strategic priorities; (x) global economic trends, including developments related to Ukraine and Russia, and the evolving conflict in the Middle East, and related negative financial impacts on our borrowers; (xi) litigation risks resulting in significant expenses, losses and reputational damage; (xii) the impact of bank failures or adverse developments at other banks and related negative press about regional banks and the banking industry in general; and (xiii) other economic, competitive, governmental, environmental, regulatory, and technological factors affecting our operations, pricing, products and services.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250411165329/en/

WaFd, Inc.

425 Pike Street, Seattle, WA 98101

Brad Goode, SVP, Chief Marketing Officer

206-626-8178

brad.goode@wafd.com

Source: WaFd, Inc.

FAQ

What was WaFd's earnings per share for Q2 2025?

WaFd (WAFD) reported diluted earnings per share of $0.65 for Q2 2025, a 20% increase from $0.54 in Q1 2025.

How much did WaFd's net income increase in Q2 2025?

WaFd's net income increased 19% to $56.25 million from $47.27 million in the previous quarter.

What was WaFd's dividend payment in Q2 2025?

WaFd paid a cash dividend of $0.27 per share on March 7, 2025, marking its 168th consecutive quarterly dividend.

How many shares did WaFd repurchase in Q2 2025?

WaFd repurchased 726,082 shares during Q2 2025 at a weighted average price of $29.39 per share.

What was WaFd's net interest margin in Q2 2025?

WaFd's net interest margin was 2.55% in Q2 2025, up from 2.39% in Q1 2025.