WaFd, Inc. (Nasdaq: WAFD):
Q1 Highlights
$47 Million
$0.54
0.69%
6.42%
Net Income
Diluted Earnings per Common
Share
Return on Average
Assets
Return on Average Common
Equity
Net Interest Income and NIM
- $155 million net interest income for the quarter
compared to $173 million in Q4 FY24.
- Net interest margin at 2.39% for the quarter compared to
2.62% for Q4 FY24.
Credit Quality
- Non-performing assets at 0.3% of total assets - similar
to prior quarter.
- No provision booked for the quarter and NCOs were
minimal.
Non-Interest Income and Expense
- Non-interest expense up due to $5.4 million in one-time
restructuring charges, partially offset by lower FDIC insurance
premiums due to a smaller balance sheet.
Shareholder Returns and
Stock Activity
- On December 6, 2024, the Company paid a cash dividend
of $0.26 per share, 167th consecutive quarterly
dividend paid.
WaFd, Inc. (Nasdaq: WAFD) (the "Company"), parent company of
Washington Federal Bank ("WaFd Bank" or the "Bank"), today
announced quarterly earnings of $47,267,000 for the quarter ended
December 31, 2024, a decrease of 23% from net earnings of
$61,140,000 for the quarter ended September 30, 2024 and a decrease
of 19% from net earnings of $58,453,000 for the quarter ended
December 31, 2023. After the effect of dividends on preferred
stock, net income available for common shareholders was $0.54 per
diluted share for the quarter ended December 31, 2024, compared to
$0.71 per diluted share for the quarter ended September 30, 2024, a
$0.17 or 24% decrease, and $0.85 per diluted share for the quarter
ended December 31, 2023, a $0.31 or 36% decrease in fully diluted
earnings per common share. The current quarter results reflect
one-time charges of $5,390,000 as a result of restructuring
activities described below. After adjusting for these charges and
other non-operating items, earnings per share for the quarter was
$0.62 per diluted share. For a reconciliation, see the Non-GAAP
Financial Measures section below.
"In the first quarter of fiscal 2025 our results were
impacted by greater than expected margin compression. On a linked
quarter basis our margin contracted from 2.62% to 2.39%. Excluding
a valuation adjustment to hedges obtained in the Luther Burbank
acquisition, the Q1 margin would have been 2.45%. The Federal
Reserve started reducing interest rates with a 50 basis point cut
on September 18, 2024, followed by two 25 basis point cuts in
October and December. With each cut, our variable rate assets
(loans and investments) repriced quickly, while the repricing of
our liabilities has lagged, causing margin compression. On a linked
quarter basis, the yield on earning assets declined by 36 basis
points, while the yield on paying liabilities decreased by only 14
basis points. We are pleased to report that credit quality remains
strong with minimal net charge-offs and delinquencies of only
0.30%. Capital has grown nicely over the last three quarters, with
tangible common equity to tangible assets increasing from 8.31% to
9.45% since our acquisition in March of last year.
Today we are announcing a significant shift in focus for our
business model. After over 100 years of making home loans, we are
exiting the single-family mortgage lending market and have recorded
a restructuring expense of $5.4 million this quarter. As a result,
by the end of June 2025, we anticipate annual expense savings of
approximately $17 million. Importantly, we will retain all existing
home loans and HELOC’s on our books, ensuring no disruption for our
current customers. We have come to this conclusion after thoughtful
deliberation for two primary reasons. First, home loans are seen as
a commodity with nearly 70% of originations sold to US government
sponsored enterprises like Freddie Mac and Fannie Mae, which has
caused profitability to decrease and credit risk to increase.
Second, technology has made it easy for consumers to refinance
(which is a good thing for homeowners), but it increases the
interest rate risk for banks that hold mortgages. Our aim is to
always offer products and services to our customers where WaFd Bank
can add value, and we have concluded that we no longer do so in the
mortgage sector. Exiting mortgage lending and right sizing other
support areas will result in an 8% reduction in our workforce.
While not the primary factor, but certainly a contributing
factor, the regulatory burden associated with mortgage lending also
played a role in our decision. Recently we were notified that WaFd
Bank has received an overall “Needs to Improve” rating regarding
our Community Reinvestment Act (“CRA”) compliance because we did
not make enough loans to low and moderate income ("LMI") borrowers
and communities. For the individual components of the exam, we
received a “High Satisfactory” rating in both the investment and
service tests, and a “Needs to Improve” on the lending test. We are
committed to serving all of our communities and have done so as a
portfolio lender since 1917. Today, we compete against
government-sponsored financing programs with less stringent
underwriting than we are comfortable offering as a lender that
retains all loans on our balance sheet. For example, there are
multiple government programs that require no down payment, and our
performance is being compared to lenders who offer these programs
and originate to sell. We strongly disagree with this rating and
plan to appeal this conclusion.
Through our involvement in the PPP program during the Pandemic,
we have seen just how important small business is to us, and to the
communities we serve, and how underserved many small businesses are
when it comes to their banking needs. Technology is excellent and
abundant; what small businesses need is a trusted advisor to help
them navigate complex financial matters and exercise professional
skepticism. We aim to fill that need. Going forward, in addition to
serving consumers, WaFd will concentrate its focus, offerings and
efforts on business banking and commercial real estate lending. We
will also begin offering SBA lending products that will allow us to
broaden our offerings for small businesses.
We have also re-aligned our management structure. On the
executive team, Cathy Cooper will transition to the role of Chief
Experience Officer, responsible for enhancing overall client
experience through digital channels and in person processes. James
Endrizzi will step aside from his current role and will assume
leadership responsibility for Commercial Real Estate in both Utah
and Nevada in a non-executive role. The Business Bank Division will
be led by Michelle Coons, Dan LaCoste and Doron Joseph. The
Commercial Real Estate Division will be led by Tony Barnard and Tom
Pozarycki. All five of these leaders have been promoted to the role
of Executive Director but are not deemed executive officers under
SEC rules.
Here at WaFd, we strive to be a bank with heart. That does not
mean we ignore issues or avoid difficult decisions. We firmly
believe the actions being announced today will position us to
better serve our clients and deliver solid returns to our
shareholders for years to come."
Brent Beardall President and CEO of WaFd Bank
The Company acquired Luther Burbank Corporation ("LBC") on
February 29, 2024. As such, the Company's financial results are not
directly comparable to the results of periods prior to that date.
The following table provides the Company's financial scorecard for
the last five quarters:
As of
(In thousands, except share and ratio
data)
December 31,| 2024
September 30, 2024
June 30, 2024
March 31,
2024
December 31, 2023
BALANCE SHEET
Cash
$
1,507,735
$
2,381,102
$
2,492,504
$
1,505,771
$
1,144,774
Loans receivable, net
21,060,501
20,916,354
20,873,919
20,795,259
17,584,622
Allowance for credit losses ("ACL")
225,022
225,253
225,324
225,077
201,820
Loans held for sale
—
—
468,527
2,993,658
—
Available-for-sale securities, at fair
value
2,743,731
2,572,709
2,428,768
2,438,114
2,018,445
Held-to-maturity securities, at amortized
cost
537,348
436,972
447,638
457,882
415,079
Total investments
3,281,079
3,009,681
2,876,406
2,895,996
2,433,524
Total assets
27,684,454
28,060,330
28,580,800
30,140,288
22,640,122
Transaction deposits
11,853,859
11,817,185
11,929,005
12,338,862
10,658,064
Time deposits
9,584,918
9,556,785
9,255,760
9,000,911
5,380,723
Total deposits
21,438,777
21,373,970
21,184,765
21,339,773
16,038,787
Borrowings
2,914,627
3,318,307
4,079,360
5,489,501
3,875,000
Total shareholders' equity
3,021,636
3,000,300
2,958,339
2,921,906
2,452,004
Loans to customer deposits2
98.24
%
97.86
%
98.53
%
97.45
%
109.64
%
PROFITABILITY
Net income
$
47,267
$
61,140
$
64,560
$
15,888
$
58,453
Net income to common shareholders
43,611
57,484
60,904
12,232
54,797
Earnings per common share
0.54
0.71
0.75
0.17
0.85
Return on tangible common equity1
7.69
%
10.24
%
11.10
%
2.47
%
11.93
%
Return on tangible assets1
0.70
%
0.89
%
0.88
%
0.26
%
1.06
%
Net interest margin
2.39
%
2.62
%
2.56
%
2.73
%
2.91
%
Efficiency ratio
65.04
%
57.21
%
56.61
%
77.74
%
58.02
%
FINANCIAL HIGHLIGHTS
Common shareholders' equity per share
$
33.45
$
33.25
$
32.76
$
32.21
$
33.49
Tangible common shareholders' equity per
share1
27.93
27.73
27.18
26.64
28.65
Shareholders' equity to total assets
10.91
%
10.69
%
10.35
%
9.69
%
10.83
%
Tangible shareholders' equity to tangible
assets1
9.45
%
9.24
%
8.91
%
8.31
%
9.59
%
Common shares outstanding
81,373,760
81,220,269
81,157,173
81,405,391
64,254,700
Preferred shares outstanding
300,000
300,000
300,000
300,000
300,000
CREDIT QUALITY2
ACL to gross loans
1.00
%
1.01
%
1.00
%
1.00
%
1.04
%
Non-accrual loans to net loans
0.34
%
0.33
%
0.29
%
0.29
%
0.26
%
Delinquencies to net loans
0.30
%
0.25
%
0.22
%
0.36
%
0.33
%
Non-performing assets to total assets
0.29
%
0.28
%
0.24
%
0.23
%
0.24
%
Criticized loans to net loans
2.54
%
2.41
%
3.01
%
2.59
%
2.27
%
Substandard loans to net loans
1.96
%
2.04
%
1.84
%
1.48
%
1.74
%
(1)
Metric is a non-GAAP Financial Measure.
See page 10 for additional information on our use of non-GAAP
Financial Measures.
(2)
Metrics include only loans held for
investment. Loans held for sale are not included.
Balance Sheet Total assets
were $27.7 billion as of December 31, 2024, compared to $28.1
billion at September 30, 2024, primarily due to cash used to reduce
borrowings during the quarter. Net loans increased by $144 million,
or 0.7%, and cash decreased $873 million, or 36.7%. Investment
securities increased by $271 million, or 9.0%, during the
quarter.
Customer deposits totaled $21.4 billion as of December 31, 2024,
largely unchanged from September 30, 2024. Transaction accounts
increased by $37 million or 0.3% during the quarter, while time
deposits increased $28 million, also 0.3%. As of December 31, 2024,
55.3% of the Company’s deposits were transaction accounts,
unchanged from September 30, 2024. Core deposits, defined as all
transaction accounts and time deposits less than $250,000, totaled
78.3% of deposits at December 31, 2024. Deposits that are uninsured
or not collateralized were 24.8% as of December 31, 2024, a slight
increase from 24.0% as of September 30, 2024.
Borrowings totaled $2.9 billion as of December 31, 2024, down
from $3.3 billion at September 30, 2024. The effective weighted
average interest rate of borrowings was 3.62% as of December 31,
2024, compared to 3.93% at September 30, 2024.
Loan originations totaled $0.9 billion for the first fiscal
quarter of 2025, compared to $0.9 billion of originations in the
same quarter one year ago. Offsetting loan originations in each of
these quarters were loan repayments of $1.0 billion and $1.2
billion, respectively. The Bank had intentionally slowed new loan
production to temper net loan growth. Commercial loans represented
68% of all loan originations during the first fiscal quarter of
2025 and consumer loans accounted for the remaining 32%. Commercial
loans are viewed by the Bank as preferable as they generally have
floating interest rates and shorter durations. The weighted average
period end interest rate on the loan portfolio was 5.16% as of
December 31, 2024, a decrease from 5.26% as of September 30,
2024.
Credit Quality Credit
quality continues to be monitored closely in light of the shifting
economic and monetary environment. As of December 31, 2024,
non-performing assets increased slightly to $79 million, or 0.3% of
total assets, from $77 million, or 0.3%, at September 30, 2024. The
change fiscal year to date is due primarily to non-accrual loans
increasing by $2.9 million, or 4%, since September 30, 2024.
Delinquent loans were slightly increased at 0.30% of total loans at
December 31, 2024, compared to 0.25% at September 30, 2024. The
allowance for credit losses (including the reserve for unfunded
commitments) totaled $225 million as of December 31, 2024, and was
1.00% of gross loans outstanding, as compared to $225 million, or
1.01% of gross loans outstanding, as of September 30, 2024. Net
charge-offs were $231,000 for the first fiscal quarter of 2025,
compared to $70,000 for the prior quarter.
Profitability Net interest
income was $155 million for the first fiscal quarter of 2025, a
decrease of $17.4 million or 10% from the prior quarter. The
decrease in net interest income was primarily due to a 36 basis
point decrease in the rate earned on interest earning assets offset
by a smaller 14 basis point decrease in the average rate paid on
interest bearing liabilities. Interest income was also affected by
a valuation adjustment to hedges obtained in the Luther Burbank
acquisition resulting in a reduction of $3.9 million. Net interest
margin was 2.39% in the first fiscal quarter of 2025 compared to
2.62% for the quarter ended September 30, 2024.
Total non-interest income was $15.7 million for the first fiscal
quarter of 2025 compared to $15.9 million the prior quarter. The
small decrease in other income compared to prior quarter was
primarily due to slightly decreased commission income from the
Bank's insurance subsidiary.
Total non-interest expense was $111.3 million in the first
fiscal quarter of 2025, an increase of $3.4 million, or 3.1%, from
the prior quarter. The overall increase is the result of the $5.4
million of restructuring costs incurred in the quarter offset by a
decrease in FDIC premiums of $2.0 million in the same period.
Increased expenses combined with decreased net interest income
resulted in an increase in the Company’s efficiency ratio in the
first fiscal quarter of 2025 to 65.0%, compared to 57.2% in the
prior quarter.
The Company is also in the process of restarting its wholly
owned technology subsidiary Pike Street Labs and will bring back
in-house its custom online, mobile and digital account opening
technology and teams from Archway Software. We anticipate this
transition will aid us in becoming more efficient over time.
The Company did not record a provision for credit losses in the
first fiscal quarter of 2025, consistent with the prior quarter.
The lack of provision for loan losses in the quarter ended December
31, 2024 was primarily due to a stable loans receivable balance and
stable credit performance.
Return on common shareholders' equity for the quarter ended
December 31, 2024 was 6.42% compared to 8.53% for the quarter ended
September 30, 2024. Adjusted for certain non-operating items
relating to the merger and restructuring, return on equity for the
quarter is 7.45% compared to adjusted return on equity of 8.18% the
prior quarter. Return on assets for the quarter ended December 31,
2024 was 0.7% compared to 0.9% for the previous quarter. Adjusted
for certain non-operating items relating to the merger and
restructuring, return on assets for the quarter is 0.8% compared to
adjusted return on equity of 0.8% the prior quarter. For a
reconciliation of these adjusted ratios, see the Non-GAAP Financial
Measures section below.
Income tax expense totaled $13.0 million the first fiscal
quarter of 2025, as compared to $13.2 million for the prior year
same quarter. The effective tax rate for the quarter ended December
31, 2024 was 21.55% compared to 24.21% for the quarter ended
September 30, 2024. The Company’s effective tax rate may vary from
the statutory rate mainly due to state taxes, tax-exempt income and
tax-credit investments.
WaFd Bank is headquartered in Seattle, Washington, and has 210
branches in nine western states. To find out more about WaFd Bank,
please visit our website www.wafdbank.com. The Company uses
its website to distribute financial and other material information
about the Company.
December 31, 2024
September 30, 2024
(In thousands, except share
and ratio data)
ASSETS
Cash and cash equivalents
$
1,507,735
$
2,381,102
Available-for-sale securities, at fair
value
2,743,731
2,572,709
Held-to-maturity securities, at amortized
cost
537,348
436,972
Loans receivable, net of allowance for
loan losses of $204,522 and $203,753
21,060,501
20,916,354
Interest receivable
103,147
102,827
Premises and equipment, net
248,924
247,901
Real estate owned
3,316
4,567
FHLB stock
128,396
95,617
Bank owned life insurance
269,473
267,633
Intangible assets, including goodwill of
$414,722 and $411,360
449,213
448,425
Deferred tax assets, net
111,830
119,248
Other assets
520,840
466,975
$
27,684,454
$
28,060,330
LIABILITIES AND SHAREHOLDERS’
EQUITY
Liabilities
Transaction deposits
$
11,853,859
$
11,817,185
Time deposits
9,584,918
9,556,785
Total customer deposits
21,438,777
21,373,970
Borrowings
2,863,675
3,267,589
Junior subordinated debentures
50,952
50,718
Advance payments by borrowers for taxes
and insurance
20,188
61,330
Accrued expenses and other liabilities
289,226
306,423
24,662,818
25,060,030
Shareholders’ equity
Preferred stock, $1.00 par value,
5,000,000 shares authorized; 300,000 and 300,000 shares issued;
300,000 and 300,000 shares outstanding
300,000
300,000
Common stock, $1.00 par value, 300,000,000
shares authorized; 154,247,734 and 154,007,429 shares issued;
81,373,760 and 81,220,269 shares outstanding
154,248
154,007
Additional paid-in capital
2,154,929
2,150,675
Accumulated other comprehensive income
(loss), net of taxes
53,353
55,851
Treasury stock, at cost; 72,873,974 and
72,787,160 shares
(1,642,480
)
(1,639,131
)
Retained earnings
2,001,586
1,978,898
3,021,636
3,000,300
$
27,684,454
$
28,060,330
Weighted average rates as of period
end
Loans and mortgage-backed securities
5.06
%
5.16
%
Combined loans, mortgage-backed securities
and investments
4.98
5.11
Customer accounts
2.92
3.09
Borrowings
3.62
3.93
Combined cost of customer accounts and
borrowings
3.00
3.20
Net interest spread
1.98
1.91
WAFD, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended December
31,
2024
2023
(In thousands, except share
and ratio data)
INTEREST INCOME
Loans receivable
$
286,597
$
245,792
Mortgage-backed securities
18,337
11,266
Investment securities and cash
equivalents
40,183
29,788
345,117
286,846
INTEREST EXPENSE
Customer accounts
162,150
96,671
Borrowings and junior subordinated
debentures
27,536
37,938
189,686
134,609
Net interest income
155,431
152,237
Provision (release) for credit losses
—
—
Net interest income after provision
(release)
155,431
152,237
NON-INTEREST INCOME
Gain (loss) on sale of investment
securities
20
81
Gain (loss) on termination of hedging
derivatives
5
109
Loan fee income
1,345
844
Deposit fee income
7,046
6,802
Other income
7,286
6,331
Total non-interest income
15,702
14,167
NON-INTEREST EXPENSE
Compensation and benefits
59,927
49,841
Occupancy
10,788
9,371
FDIC insurance premiums
4,850
6,570
Product delivery
5,785
6,009
Information technology
14,192
12,866
Other expense
15,769
11,883
Total non-interest expense
111,311
96,540
Gain (loss) on real estate owned, net
429
1,826
Income before income taxes
60,251
71,690
Income tax provision
12,984
13,237
Net income
47,267
58,453
Dividends on preferred stock
3,656
3,656
Net income available to common
shareholders
$
43,611
$
54,797
PER SHARE DATA
Basic earnings per common share
$
0.54
$
0.85
Diluted earnings per common share
0.54
0.85
Cash dividends per common share
0.26
0.25
Basic weighted average shares
outstanding
81,294,227
64,297,499
Diluted weighted average shares
outstanding
81,401,599
64,312,110
PERFORMANCE RATIOS
Return on average assets
0.69
%
1.04
%
Return on average common equity
6.42
%
10.21
%
WAFD, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
December 31, 2024
September 30, 2024
June 30,
2024
March 31, 2024
December 31, 2023
(In thousands, except share
and ratio data)
INTEREST INCOME
Loans receivable
$
286,597
$
308,598
$
337,118
$
274,341
$
245,792
Mortgage-backed securities
18,337
18,088
17,523
12,905
11,266
Investment securities and cash
equivalents
40,183
47,411
37,300
31,580
29,788
345,117
374,097
391,941
318,826
286,846
INTEREST EXPENSE
Customer accounts
162,150
165,240
154,359
116,164
96,671
Borrowings, senior debt and junior
subordinated debentures
27,536
36,045
60,396
44,065
37,938
189,686
201,285
214,755
160,229
134,609
Net interest income
155,431
172,812
177,186
158,597
152,237
Provision for credit losses
—
—
1,500
16,000
—
Net interest income after
provision
155,431
172,812
175,686
142,597
152,237
NON-INTEREST INCOME
Gain on sale of investment securities
20
91
80
90
81
Gain on termination of hedging
derivatives
5
72
54
6
109
Loan fee income
1,345
757
594
550
844
Deposit fee income
7,046
7,047
6,960
6,698
6,802
Other income
7,286
7,911
9,567
6,048
6,331
Total non-interest income
15,702
15,878
17,255
13,392
14,167
NON-INTEREST EXPENSE
Compensation and benefits
59,927
53,983
57,169
73,155
49,841
Occupancy
10,788
10,843
10,904
10,918
9,371
FDIC insurance premiums
4,850
6,800
7,600
7,900
6,570
Product delivery
5,785
6,306
6,090
5,581
6,009
Information technology
14,192
14,129
13,428
12,883
12,866
Other expense
15,769
15,880
14,888
23,275
11,883
Total non-interest expense
111,311
107,941
110,079
133,712
96,540
Gain (loss) on real estate owned, net
429
(83
)
(124
)
(1,315
)
1,826
Income before income taxes
60,251
80,666
82,738
20,962
71,690
Income tax provision
12,984
19,526
18,178
5,074
13,237
Net income
47,267
61,140
64,560
15,888
58,453
Dividends on preferred stock
3,656
3,656
3,656
3,656
3,656
Net income available to common
shareholders
$
43,611
$
57,484
$
60,904
$
12,232
$
54,797
WAFD, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
(In thousands, except share
and ratio data)
PER SHARE DATA
Basic earnings per common share
$
0.54
$
0.71
$
0.75
$
0.17
$
0.85
Diluted earnings per common share
0.54
0.71
0.75
0.17
0.85
Cash dividends per common share
0.26
0.26
0.26
0.26
0.25
Basic weighted average shares
outstanding
81,294,227
81,208,683
81,374,811
70,129,072
64,297,499
Diluted weighted average shares
outstanding
81,401,599
81,353,644
81,393,708
70,164,558
64,312,110
PERFORMANCE RATIOS
Return on average assets
0.69
%
0.87
%
0.87
%
0.26
%
1.04
%
Return on average common equity
6.42
8.53
9.20
2.09
10.21
Net interest margin
2.39
2.62
2.56
2.73
2.91
Efficiency ratio
65.04
57.21
56.61
77.74
58.02
WAFD, INC. AND
SUBSIDIARIES NON-GAAP MEASURES (UNAUDITED)
Non-GAAP Financial Measures
The Company has presented certain non-GAAP measures within this
document to remove the effect of certain income and expenses to
provide investors with information useful in understanding our
financial performance. The Company considers these items to be
non-operating in nature as they are items that management does not
consider indicative of the Company's on-going financial
performance. We believe that the tables presented reflect our
on-going performance in the periods presented and, accordingly, are
useful to consider in addition to our GAAP financial results. These
measures should not be considered a substitution for GAAP basis
disclosures.
Other companies may use similarly titled non-GAAP financial
measures that are calculated differently from the way they are
calculated herein. Because of this, our non-GAAP financial measures
may not be comparable to similar measures used by others. We
caution investors not to place undue reliance on such measures. See
the following unaudited tables for reconciliations of our non-GAAP
measures to the most directly comparable GAAP financial
measures.
Tangible Measures
December 31, 2024
September 30, 2024
June 30,
2024
March 31,
2024
December 31, 2023
(Unaudited - In thousands,
except for ratio data)
Shareholders equity - GAAP
$
3,021,636
$
3,000,300
$
2,958,339
$
2,921,906
$
2,452,004
Less intangible assets - GAAP
449,213
448,425
452,255
453,539
311,103
Tangible shareholders' equity
$
2,572,423
$
2,551,875
$
2,506,084
$
2,468,367
$
2,140,901
Less preferred stock - GAAP
300,000
300,000
300,000
300,000
300,000
Tangible common shareholders'
equity
$
2,272,423
$
2,251,875
$
2,206,084
$
2,168,367
$
1,840,901
Total assets - GAAP
$
27,684,454
$
28,060,330
$
28,580,800
$
30,140,288
$
22,640,122
Less intangible assets - GAAP
449,213
448,425
452,255
453,539
311,103
Tangible assets
$
27,235,241
$
27,611,905
$
28,128,545
$
29,686,749
$
22,329,019
Tangible Metrics
Common shares outstanding - GAAP
81,373,760
81,220,269
81,157,173
81,405,391
64,254,700
Tangible common equity per share
$
27.93
$
27.73
$
27.18
$
26.64
$
28.65
Tangible equity to tangible assets
9.45
%
9.24
%
8.91
%
8.31
%
9.59
%
WAFD, INC. AND
SUBSIDIARIES NON-GAAP MEASURES (UNAUDITED)
Three Months Ended
Average Tangible Measures
December 31, 2024
September 30, 2024
June 30,
2024
March 31,
2024
December 31, 2023
(Unaudited - In thousands,
except for ratio data)
Average shareholders equity - GAAP
$
3,015,197
$
2,996,093
$
2,947,056
$
2,638,483
$
2,447,580
Less average preferred stock
- GAAP
300,000
300,000
300,000
300,000
300,000
Less average intangible assets - GAAP
447,754
451,204
453,142
360,251
311,022
Average tangible common equity
$
2,267,443
$
2,244,889
$
2,193,914
$
1,978,232
$
1,836,558
Average Assets - GAAP
$
27,504,576
$
28,000,482
$
29,703,337
$
24,907,376
$
22,381,459
Less average intangible assets - GAAP
447,754
451,204
453,142
360,251
311,022
Average tangible assets
$
27,056,822
$
27,549,278
$
29,250,195
$
24,547,125
$
22,070,437
Average Tangible Metrics
Net income - GAAP
47,267
61,140
64,560
15,888
58,453
Net income available to common
shareholders - GAAP
43,611
57,484
60,904
12,232
54,797
Return on tangible common equity
7.69
%
10.24
%
11.10
%
2.47
%
11.93
%
Return on tangible assets
0.70
%
0.89
%
0.88
%
0.26
%
1.06
%
WAFD, INC. AND
SUBSIDIARIES NON-GAAP MEASURES (UNAUDITED)
Three Months Ended
Net Income Adjusted for Acquisition
Expenses and Other Non-Operating Items
December 31, 2024
September 30, 2024
June 30,
2024
March 31, 2024
December 31, 2023
(Unaudited - In thousands,
except for ratio data)
Interest income
LBC Hedge Valuation Adj
$
3,933
$
—
$
—
$
—
$
—
Non-interest income
Distribution received on LBC equity method
investment
$
(279
)
$
(288
)
$
(299
)
$
(287
)
$
—
(Gain)Loss on WaFd Bank equity method
investment
48
(896
)
(748
)
2,195
693
Total non-interest income
$
(231
)
$
(1,184
)
$
(1,047
)
$
1,908
$
693
Non-interest expense
Acquisition-related expenses
$
239
$
(1,602
)
$
2,285
$
25,120
$
516
Non-operating expenses:
Restructuring Charges
5,390
—
—
—
—
FDIC Special Assessment
—
(216
)
—
1,800
500
Legal and Compliance
—
(182
)
—
3,000
—
Charitable Donation
—
—
—
2,000
—
5,390
(398
)
—
6,800
500
Total non-interest expense
$
5,629
$
(2,000
)
$
2,285
$
31,920
$
1,016
Net Income - GAAP
$
47,267
$
61,140
$
64,560
$
15,888
$
58,453
Preliminary ACL provision on LBC loans
—
—
—
16,000
—
Interest income adjustments
3,933
—
—
—
—
Non-interest income adjustments
(231
)
(1,184
)
(1,047
)
1,908
693
Non-interest expense adjustments
5,629
(2,000
)
2,285
31,920
1,016
REO adjustments
(429
)
83
124
1,315
(1,826
)
Income tax adjustment
(1,918
)
751
(299
)
(12,274
)
22
Net Income - non-GAAP
$
54,251
$
58,790
$
65,623
$
54,757
$
58,358
Dividend on preferred stock
3,656
3,656
3,656
3,656
3,656
Net Income available to common
shareholders - non-GAAP
$
50,595
$
55,134
$
61,967
$
51,101
$
54,702
Basic weighted average number
81,294,227
81,208,683
81,374,811
70,129,072
64,297,499
Diluted weighted average
81,401,599
81,353,644
81,393,708
70,164,558
64,312,110
Basic EPS - non-GAAP
$
0.62
$
0.68
$
0.76
$
0.73
$
0.84
Diluted EPS - non-GAAP
0.62
0.68
0.76
0.73
0.84
WAFD, INC. AND
SUBSIDIARIES NON-GAAP MEASURES (UNAUDITED)
Three Months Ended
Adjusted Efficiency Ratio
December 31, 2024
September 30, 2024
June 30,
2024
March 31,
2024
December 31, 2023
(Unaudited - In thousands,
except for ratio data)
Efficiency ratio - GAAP
65.0
%
57.2
%
56.6
%
77.7
%
58.0
%
Net interest income - GAAP
$
155,431
$
172,812
$
177,186
$
158,597
$
152,237
Total interest income adjustments
3,933
—
—
—
—
Net interest income - non-GAAP
$
159,364
$
172,812
$
177,186
$
158,597
$
152,237
Non-interest expense - GAAP
$
111,311
$
107,941
$
110,079
$
133,712
$
96,540
Less merger related expenses
239
(1,602
)
2,285
25,120
516
Less non-operating expenses
5,390
(398
)
—
6,800
500
Non-interest Expenses -
non-GAAP
$
105,682
$
109,941
$
107,794
$
101,792
$
95,524
Non-interest income - GAAP
$
15,702
$
15,878
$
17,255
$
13,392
$
14,167
Total other income
(231
)
(1,184
)
(1,047
)
1,908
693
Non-interest income -
non-GAAP
$
15,471
$
14,694
$
16,208
$
15,300
$
14,860
Net Interest Income -
non-GAAP
$
159,364
$
172,812
$
177,186
$
158,597
$
152,237
Non-interest income -
non-GAAP
15,471
14,694
16,208
15,300
14,860
Total Income - non-GAAP
$
174,835
$
187,506
$
193,394
$
173,897
$
167,097
Adjusted Efficiency Ratio
60.4
%
58.6
%
55.7
%
58.5
%
57.2
%
WAFD, INC. AND
SUBSIDIARIES NON-GAAP MEASURES (UNAUDITED)
Three Months Ended
Adjusted ROA and ROE
December 31, 2024
September 30, 2024
June 30,
2024
March 31,
2024
December 31, 2023
(Unaudited - In thousands,
except for ratio data)
Reported:
Net Income - GAAP
$
47,267
$
61,140
$
64,560
$
15,888
$
58,453
Net income available to common
shareholders - GAAP
$
43,611
$
57,484
$
60,904
$
12,232
$
54,797
Average Assets
27,504,576
28,000,482
29,703,337
24,907,376
22,381,459
Return on Assets
0.69
%
0.87
%
0.87
%
0.26
%
1.04
%
Average Common Equity
$
2,715,197
$
2,696,093
$
2,647,056
$
2,338,483
$
2,147,580
Return on common equity
6.42
%
8.53
%
9.20
%
2.09
%
10.21
%
Adjusted:
Net Income - non-GAAP
$
54,251
$
58,790
$
65,623
$
54,757
$
58,358
Net income available to common
shareholders - non-GAAP
$
50,595
$
55,134
$
61,967
$
51,101
$
54,702
Average Assets
27,504,576
28,000,482
29,703,337
24,907,376
22,381,459
Adjusted Return on Assets
0.79
%
0.84
%
0.88
%
0.88
%
1.04
%
Average Common Equity
2,715,197
2,696,093
2,647,056
2,338,483
2,147,580
Adjusted Return on common
equity
7.45
%
8.18
%
9.36
%
8.74
%
10.19
%
Important Cautionary Statements
The foregoing information should be read in conjunction with the
financial statements, notes and other information contained in the
Company’s Annual Report on Form 10-K, Quarterly Reports on Form
10-Q and Current Reports on Form 8-K.
This press release contains statements about the Company’s
future that are not statements of historical or current fact. These
statements are “forward-looking statements” for purposes of
applicable securities laws and are based on current information
and/or management's good faith belief as to future events. Words
such as “expects,” “anticipates,” “believes,” “estimates,”
“intends,” “forecasts,” “may,” “potential,” “projects,” and other
similar expressions or future or conditional verbs such as “will,”
“should,” “would,” and “could” are intended to help identify such
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Although the Company
believes any such statements are based on reasonable assumptions,
forward-looking statements should not be read as a guarantee of
future performance, and you are cautioned not to place undue
reliance on any forward-looking statements. The Company undertakes
no obligation to update or revise any forward-looking
statement.
By their nature, forward-looking statements involve inherent
risk and uncertainties including the following risks and
uncertainties, and those risks and uncertainties more fully
discussed under “Risk Factors” in the Company’s September 30, 2024
10-K, and Quarterly Reports on Form 10-Q which could cause actual
performance to differ materially from that anticipated by any
forward-looking statements. Forward-looking statements relating to
our financial condition or operations are subject to risks and
uncertainties related to (i) fluctuations in interest rate risk and
market interest rates, including the effect on our net interest
income and net interest margin; (ii) current and future economic
conditions, including the effects of declines in the real estate
market, high unemployment rates, inflationary pressures, a
potential recession, the monetary policies of the Federal Reserve,
and slowdowns in economic growth either nationally or locally in
some or all of the areas in which we conduct business; (iii)
financial stress on borrowers (consumers and businesses) as a
result of higher interest rates or an uncertain economic
environment; (iv) changes in deposit flows or loan demands; (v) our
ability to identify and address cyber-security risks, including
security breaches, "denial of service attacks," "hacking" and
identity theft; (vi) the Company's exit from the mortgage lending
business; (vii) the effects of natural or man-made disasters,
calamities, or conflicts, including terrorist events and pandemics
(such as the COVID-19 pandemic) and the resulting governmental and
societal responses; (viii) the results of examinations by
regulatory authorities, including a "Needs to Improve" CRA rating,
which may impose restrictions or penalties on the Company's
activities; (ix) expectations regarding key growth initiatives and
strategic priorities; (x) global economic trends, including
developments related to Ukraine and Russia, and the evolving
conflict in the Middle East, and related negative financial impacts
on our borrowers; (xi) litigation risks resulting in significant
expenses, losses and reputational damage; (xii) the impact of bank
failures or adverse developments at other banks and related
negative press about regional banks and the banking industry in
general; and (xiii) other economic, competitive, governmental,
environmental, regulatory, and technological factors affecting our
operations, pricing, products and services.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250116903614/en/
WaFd, Inc. 425 Pike Street, Seattle, WA 98101 Brad Goode, SVP,
Chief Marketing Officer 206-626-8178 brad.goode@wafd.com
Grafico Azioni WaFd (NASDAQ:WAFD)
Storico
Da Feb 2025 a Mar 2025
Grafico Azioni WaFd (NASDAQ:WAFD)
Storico
Da Mar 2024 a Mar 2025
