SEATTLE, January 16, 2025--(BUSINESS WIRE)--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.

Story Continues

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/

Contacts

WaFd, Inc.
425 Pike Street, Seattle, WA 98101
Brad Goode, SVP, Chief Marketing Officer
206-626-8178
[email protected]

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