WaFd Announces Quarterly Earnings Per Share of $0.65

Business Wire

Fri, Apr 11, 2025, 5:37 PM 13 min read

"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 Income and NIM	•	Net interest margin at 2.55% for the quarter compared to 2.39% for Q1.	Credit Quality	•	$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, 168^th 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
Tangible Measures	(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
Average Tangible Measures	(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
Adjusted Efficiency Ratio	(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
Adjusted ROA and ROE	(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/

Contacts

WaFd, Inc.
425 Pike Street, Seattle, WA 98101
Brad Goode, SVP, Chief Marketing Officer
206-626-8178
brad.goode@wafd.com

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

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