This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. The Consumer Financial Protection Bureau has terminated a pair of consent orders against Washington Federal, the bank announced this month in a filing with the Securities and Exchange Committee. The regulator backed up the disclosure with notices of its own last week – though details were sparse. The terminations each pertained to violations of the Home Mortgage Disc ...

Core Viewpoint - Washington Federal Bank (WaFd) is launching a new registered investment advisor, WaFd Wealth, in Seattle to meet the growing demand for integrated financial planning and wealth management solutions [1][4]. Company Overview - WaFd is a publicly traded consumer bank with approximately 208 branches across nine Western states, including Washington, Oregon, Arizona, California, and Nevada. It is the second-largest bank headquartered in Seattle, with total assets of $26.7 billion [5]. Leadership and Team - WaFd has appointed John Chavez, a former Merrill Lynch executive with 30 years of experience, as CEO of the new RIA. Bobby Campbell, also from Merrill Lynch with 15 years of experience, is serving as president [2]. - Additional key hires include Shane Parris as chief operating and financial officer, Danny Law as director of relationship management, Belle Jimeno as director of client services, and Liz Parris as director of executive initiatives, all of whom have backgrounds from Merrill Lynch [3]. Services Offered - The new wealth management firm will provide a comprehensive range of financial planning and consulting services, including business planning, cash flow forecasting, trust and estate planning, financial reporting, investment consulting, insurance planning, retirement planning, risk management, charitable giving, distribution planning, tax planning, and education planning [4].

Brent Beardall, WaFd Bank president and CEO, joins 'The Exchange' to discuss if financial conditions are currently restrictive, the Federal Reserve's mandate and much more. ...

Group 1 - The main question regarding the Fed's rate decision is whether financial conditions are currently restrictive, particularly for smaller banks, and the implications of a 25 basis point cut compared to a 75 basis point cut [2][3] - A 25 basis point decrease in rates is expected to benefit all banks, especially regional banks, and improve conditions for clients [3][6] - There is skepticism about the timing of a rate cut given that stocks and real estate values are at all-time highs, inflation remains above the Fed's target, and unemployment is low [4][5] Group 2 - Loan demand is anticipated to increase regardless of the Fed's decision, but a 25 basis point cut could further stimulate economic demand by making it easier for borrowers to meet debt service coverage ratios [6] - Concerns about commercial real estate have not materialized as expected, and recent rate decreases have allowed borrowers to secure better rates than nine months ago [6][7] - The housing market is experiencing stagnation, with poor housing start numbers indicating a need for lower mortgage rates to stimulate activity [8][9] Group 3 - Current mortgage rates have decreased to approximately 6.4%, down from around 7% a few months ago, but there is a need to further reduce spreads between mortgage rates and the 10-year yield [11] - The housing cost issue is primarily supply-driven, and increasing housing supply could lead to lower housing costs [11][12] - The increase in mortgage rates has not led to a decrease in residential real estate values, which is contrary to typical market behavior [12]

Core Insights - WaFd, Inc. has been designated as a Preferred Lender with the U.S. Small Business Administration (SBA), which is a significant milestone for the company [1] - This designation allows WaFd Bank to provide faster and more efficient financing solutions to small businesses [1] - The SBA Preferred Lender Program grants select financial institutions increased authority to approve, close, and service SBA-guaranteed loans [1]

Group 1 - WaFd is a large regional bank operating in the western United States, having expanded through a merger with Luther Burbank [1] - The bank offers both common shares and preferred shares as part of its investment options [1] Group 2 - The article is focused on income investing strategies, including common shares, preferred shares, and bonds [1] - The author has a background in history, political science, and an MBA with a specialization in Finance and Economics [1]

Core Insights - WaFd (NASDAQ: WAFD) is a large regional bank operating in the western United States, experiencing growth due to a merger with Luther Burbank [1] - The bank provides both common and preferred shares, indicating a diversified investment offering [1] Company Overview - WaFd has expanded its market presence through strategic mergers, enhancing its operational capacity and customer base [1] - The bank's focus on income investing through various financial instruments, including common shares, preferred shares, and bonds, reflects its commitment to providing value to investors [1] Investment Focus - The article emphasizes the importance of income investing, suggesting that WaFd's offerings may appeal to investors seeking stable returns [1] - The author has a long position in WaFd's preferred shares, indicating confidence in the bank's financial performance and growth potential [2]

Technical Analysis - WaFd, Inc. (WAFD) has recently reached a key level of support, indicated by its 50-day simple moving average crossing above its 200-day simple moving average, known as a "golden cross" [1][2] - A golden cross is a bullish chart pattern that suggests a potential breakout, typically involving the 50-day and 200-day moving averages [2] Market Performance - WAFD has moved 8.4% higher over the last four weeks, indicating positive momentum [4] - The company currently holds a 3 (Hold) rating on the Zacks Rank, suggesting a neutral outlook [4] Earnings Outlook - WAFD's earnings outlook appears positive, with no earnings estimates cut and three revisions higher in the past 60 days [4] - The Zacks Consensus Estimate for WAFD has also increased, reinforcing the bullish sentiment [4][6] Investment Consideration - Given the combination of positive earnings estimate revisions and the technical breakout signal, WAFD is positioned for potential gains in the near future [6]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-34654 WAFD, INC. (Exact name of registrant as specified in its charter) | Washington | | | 91-1661606 | | --- | --- | --- | --- | ...

```markdown [Overview and Key Financial Metrics](index=1&type=section&id=Overview%20and%20Key%20Financial%20Metrics) This section summarizes key financial metrics, including credit loss allowances, loan activity, investment portfolio, and efficiency and shareholder metrics [Allowance for Credit Losses (ACL)](index=1&type=section&id=Allowance%20for%20Credit%20Losses%20%28ACL%29) The Allowance for Credit Losses (ACL) showed a slight decrease from December 2024 to June 2025, while the ACL as a percentage of gross loans increased, indicating a higher provision relative to the loan portfolio size Allowance for Credit Losses (ACL) ($ in Thousands) | Metric | As of 12/24 | As of 03/25 | As of 06/25 | | :-------------------------- | :---------- | :---------- | :---------- | | Total ACL | $225,022 | $222,709 | $219,268 | | ACL - Loans | 204,522 | 202,709 | 198,768 | | ACL - Unfunded Commitments | 20,500 | 20,000 | 20,500 | Total ACL as a % of Gross Loans | Metric | As of 12/24 | As of 03/25 | As of 06/25 | | :-------------------------- | :---------- | :---------- | :---------- | | Total ACL as a % of Gross Loans | 1.00 % | 1.01 % | 1.03 % | [Loan Originations and Repayments](index=1&type=section&id=Loan%20Originations%20and%20Repayments) Total loan originations decreased significantly in the June 2025 quarter compared to previous quarters, while loan repayments remained substantial, leading to a net reduction in the loan portfolio. Weighted average rates on originations continued to rise Loan Originations - Total ($ in Thousands) | Period | 12/24 QTR | 12/24 YTD | 03/25 QTR | 03/25 YTD | 06/25 QTR | 06/25 YTD | | :-------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Loan Originations - Total | $930,689 | $930,689 | $913,759 | $1,844,448 | $697,031 | $2,541,479 | Loan Repayments & Payoffs - Total ($ in Thousands) | Period | 12/24 QTR | 12/24 YTD | 03/25 QTR | 03/25 YTD | 06/25 QTR | 06/25 YTD | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Loan Repayments & Payoffs - Total | $981,574 | $981,574 | $1,183,897 | $2,165,471 | $1,479,083 | $3,644,554 | Weighted Average Rates on Originations and Payoffs | Metric | 12/24 QTR | 03/25 QTR | 06/25 QTR | | :----------------------- | :-------- | :-------- | :-------- | | Weighted Average Rate on Originations | 6.91 % | 7.12 % | 7.22 % | | Weighted Average Rate on Payoffs | 6.50 % | 6.74 % | 6.25 % | [Investment Portfolio](index=4&type=section&id=Investment%20Portfolio) The company's investment portfolio, comprising available-for-sale and held-to-maturity securities, saw an increase in available-for-sale Agency MBS, while other available-for-sale investments and held-to-maturity Agency MBS decreased Available-for-Sale Investments ($ in Thousands) | Category | As of 12/24 | As of 03/25 | As of 06/25 | | :--------------- | :---------- | :---------- | :---------- | | Agency MBS | $1,600,089 | $2,074,672 | $2,411,707 | | Other | 1,143,642 | 1,068,091 | 975,790 | | Total | $2,743,731 | $3,142,763 | $3,387,497 | Held-to-Maturity Investments ($ in Thousands) | Category | As of 12/24 | As of 03/25 | As of 06/25 | | :--------------- | :---------- | :---------- | :---------- | | Agency MBS | $537,348 | $526,502 | $512,854 | | Total | $537,348 | $526,502 | $512,854 | [Efficiency and Shareholder Metrics](index=4&type=section&id=Efficiency%20and%20Shareholder%20Metrics) Efficiency ratios improved over the reported quarters, with a notable decrease in the efficiency ratio. The company actively engaged in share repurchases, reducing outstanding shares, and tangible common shareholders' book value per share increased Efficiency Ratios | Metric | 12/24 QTR | 12/24 YTD | 03/25 QTR | 03/25 YTD | 06/25 QTR | 06/25 YTD | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Operating Expenses/Average Assets | 1.62 % | 1.62 % | 1.53 % | 1.58 % | 1.56 % | 1.57 % | | Efficiency Ratio (%) | 65.04 % | 65.04 % | 58.31 % | 61.59 % | 56.01 % | 59.66 % | Share Repurchase Information | Metric | 12/24 QTR | 03/25 QTR | 06/25 QTR | | :---------------------------------- | :-------- | :-------- | :-------- | | Shares Issued and Outstanding (EOP) | 81,373,760 | 80,758,674 | 79,130,276 | | Remaining shares authorized for repurchase | 11,501,005 | 10,777,898 | 9,129,488 | | Shares repurchased (QTR) | 89,528 | 726,082 | 1,662,508 | | Average share repurchase price (QTR) | $38.09 | $29.39 | $29.08 | Tangible Common Shareholders' Book Value | Metric | As of 12/24 | As of 03/25 | As of 06/25 | | :-------------------------------- | :---------- | :---------- | :---------- | | $ Amount | $2,272,423 | $2,285,960 | $2,270,034 | | Per Share | $27.93 | $28.31 | $28.69 | - The number of employees decreased from **2,175** as of December 2024 to **2,004** as of June 2025[8](index=8&type=chunk) [Loan Portfolio Details](index=2&type=section&id=Loan%20Portfolio%20Details) This section details the loan portfolio composition by category, net loans, contractual terms to maturity or repricing, and geographic distribution by state [Loans Receivable by Category](index=2&type=section&id=Loans%20Receivable%20by%20Category) The total loans receivable decreased from December 2024 to June 2025, with Single-Family Residential remaining the largest category, followed by Multi-Family and Commercial Real Estate. Construction loans showed a significant decline Loans Receivable by Category ($ in Thousands) | Category | As of 12/24 Amount | As of 12/24 % | As of 03/25 Amount | As of 03/25 % | As of 06/25 Amount | As of 06/25 % | | :-------------------------- | :----------------- | :------------ | :----------------- | :------------ | :----------------- | :------------ | | Multi-Family | $4,829,736 | 21.5 % | $4,967,125 | 22.4 % | $4,881,996 | 22.8 % | | Commercial Real Estate | 3,637,986 | 16.2 | 3,665,363 | 16.6 | 3,615,077 | 17.0 | | Commercial & Industrial | 2,408,693 | 10.6 | 2,389,025 | 10.7 | 2,295,802 | 10.7 | | Construction | 2,062,116 | 9.2 | 1,791,886 | 8.1 | 1,540,474 | 7.2 | | Land - Acquisition & Development | 178,687 | 0.8 | 178,114 | 0.8 | 175,643 | 0.8 | | Single-Family Residential | 8,520,833 | 38.0 | 8,401,084 | 37.9 | 8,231,623 | 38.5 | | Construction - Custom | 335,715 | 1.5 | 287,461 | 1.3 | 188,109 | 0.9 | | Land - Consumer Lot Loans | 107,205 | 0.5 | 102,475 | 0.5 | 96,582 | 0.5 | | HELOC | 275,132 | 1.2 | 284,295 | 1.3 | 272,614 | 1.3 | | Consumer | 75,933 | 0.3 | 91,899 | 0.4 | 69,912 | 0.3 | | Total | $22,432,036 | 100 % | $22,158,727 | 100 % | $21,367,832 | 100 % | [Net Loan Portfolio by Category](index=2&type=section&id=Net%20Loan%20Portfolio%20by%20Category) The net loan portfolio mirrored the trends in gross loans, with a general decrease across most categories, particularly in Construction and Single-Family Residential, while Multi-Family and Commercial Real Estate maintained their relative proportions Net Loan Portfolio by Category ($ in Thousands) | Category | As of 12/24 Amount | As of 12/24 % | As of 03/25 Amount | As of 03/25 % | As of 06/25 Amount | As of 06/25 % | | :-------------------------- | :----------------- | :------------ | :----------------- | :------------ | :----------------- | :------------ | | Multi-Family | $4,714,800 | 22.4 % | $4,840,784 | 23.2 % | $4,753,223 | 23.5 % | | Commercial Real Estate | 3,572,885 | 17.0 | 3,601,008 | 17.2 | 3,550,119 | 17.5 | | Commercial & Industrial | 2,343,246 | 11.1 | 2,324,598 | 11.1 | 2,235,310 | 11.0 | | Construction | 1,362,145 | 6.5 | 1,191,930 | 5.7 | 1,018,588 | 5.0 | | Land - Acquisition & Development | 139,388 | 0.7 | 129,358 | 0.6 | 123,627 | 0.6 | | Single-Family Residential | 8,320,765 | 39.5 | 8,223,356 | 39.3 | 8,068,150 | 39.8 | | Construction - Custom | 154,495 | 0.7 | 136,424 | 0.7 | 94,625 | 0.5 | | Land - Consumer Lot Loans | 103,961 | 0.4 | 99,370 | 0.4 | 93,659 | 0.4 | | HELOC | 275,880 | 1.3 | 284,970 | 1.4 | 273,155 | 1.4 | | Consumer | 72,936 | 0.3 | 88,203 | 0.4 | 66,708 | 0.3 | | Total Net Loans | $21,060,501 | 100 % | $20,920,001 | 100 % | $20,277,164 | 100 % | [Loan Contractual Term to Maturity or Repricing](index=2&type=section&id=Loan%20Contractual%20Term%20to%20Maturity%20or%20Repricing) A significant portion of the loan portfolio has a contractual term to maturity or repricing within 3 months, with a weighted average rate of 6.92% as of June 2025. The largest segment remains loans with more than 5 years to maturity/repricing Loan Contractual Term to Maturity or Repricing ($ in Thousands) | Term | As of 12/24 Amount | As of 12/24 Rate | As of 03/25 Amount | As of 03/25 Rate | As of 06/25 Amount | As of 06/25 Rate | | :-------------------- | :----------------- | :--------------- | :----------------- | :--------------- | :----------------- | :--------------- | | Within 3 months | $5,612,092 | 7.12% | $5,577,953 | 6.98% | $5,613,535 | 6.92% | | From 4 to 6 months | 372,974 | 5.83 | 410,864 | 5.69 | 287,877 | 4.63 | | From 7 to 9 months | 328,727 | 3.19 | 341,198 | 4.70 | 401,319 | 4.77 | | From 10 to 12 months | 371,071 | 4.90 | 377,179 | 4.76 | 376,346 | 4.46 | | 1 to 3 years | 3,070,702 | 4.04 | 3,063,242 | 4.22 | 2,728,113 | 4.22 | | 3 to 5 years | 1,850,505 | 4.95 | 1,811,205 | 4.94 | 1,743,810 | 4.98 | | More than 5 years | 9,658,951 | 4.19 | 9,541,069 | 4.22 | 9,324,933 | 4.20 | | Total | $21,265,022 | 5.04 % | $21,122,710 | 5.06 % | $20,475,933 | 5.04 % | [Loans by State](index=3&type=section&id=Loans%20by%20State) Washington, California, Oregon, and Texas represent the largest states for the loan portfolio, with Washington consistently holding the highest percentage. Most states saw a slight decrease in loan amounts over the period Loans by State ($ in Thousands) | State | As of 12/24 Amount | As of 12/24 % | As of 03/25 Amount | As of 03/25 % | As of 06/25 Amount | As of 06/25 % | | :----------- | :----------------- | :------------ | :----------------- | :------------ | :----------------- | :------------ | | Washington | $5,857,840 | 27.5 % | $5,726,161 | 27.1 % | $5,590,478 | 27.3 % | | Idaho | 940,094 | 4.4 | 935,583 | 4.4 | 927,628 | 4.5 | | Oregon | 2,477,443 | 11.7 | 2,505,629 | 11.9 | 2,498,467 | 12.2 | | Utah | 2,114,388 | 9.9 | 2,129,700 | 10.1 | 1,980,098 | 9.7 | | Nevada | 773,271 | 3.6 | 786,919 | 3.6 | 774,624 | 3.8 | | Texas | 2,500,824 | 11.8 | 2,417,928 | 11.4 | 2,390,479 | 11.7 | | Arizona | 2,333,725 | 11.0 | 2,355,148 | 11.1 | 2,299,764 | 11.2 | | New Mexico | 766,170 | 3.6 | 802,884 | 3.8 | 791,212 | 3.9 | | California | 3,037,930 | 14.3 | 2,979,107 | 14.1 | 2,891,410 | 14.1 | | Other | 463,337 | 2.2 | 483,651 | 2.3 | 331,773 | 1.6 | | Total | $21,265,022 | 100 % | $21,122,710 | 100 % | $20,475,933 | 100 % | [Asset Quality and Delinquency](index=3&type=section&id=Asset%20Quality%20and%20Delinquency) This section analyzes asset quality, focusing on non-performing assets, net charge-offs and recoveries, and a detailed summary of loan delinquencies [Non-Performing Assets](index=3&type=section&id=Non-Performing%20Assets) Total non-performing assets increased significantly in the June 2025 quarter, primarily driven by a rise in non-accrual Commercial Real Estate loans. Non-accrual loans as a percentage of total net loans also increased Total Non-Accrual Loans ($ in Thousands) | Metric | As of 12/24 | As of 03/25 | As of 06/25 | | :------------------------ | :---------- | :---------- | :---------- | | Total non-accrual loans | $72,487 | $59,886 | $82,696 | | Real Estate Owned | 3,316 | 7,688 | 11,154 | | Other Property Owned | 3,310 | 3,310 | 3,310 | | Total non-performing assets | $79,113 | $70,884 | $97,160 | - Non-accrual loans as % of total net loans: - December 2024: **0.34 %** - March 2025: **0.29 %** - June 2025: **0.41 %**[6](index=6&type=chunk) - Non-performing assets as % of total assets: - December 2024: **0.29 %** - March 2025: **0.26 %** - June 2025: **0.36 %**[6](index=6&type=chunk) [Net Charge-offs (Recoveries)](index=3&type=section&id=Net%20Charge-offs%20%28Recoveries%29) Net charge-offs increased in the March and June 2025 quarters, largely due to Commercial Real Estate, while Commercial & Industrial and Single-Family Residential categories showed net recoveries or minimal charge-offs Total Net Charge-offs (Recoveries) ($ in Thousands) | Metric | 12/24 QTR | 03/25 QTR | 06/25 QTR | | :-------------------------------- | :-------- | :-------- | :-------- | | Total net charge-offs (recoveries) | $231 | $5,063 | $5,441 | | Annualized Net Charge-offs (recoveries) divided by Gross Balance | — % | 0.09 % | 0.10 % | Net Charge-offs (Recoveries) by Category ($ in Thousands) | Category | 12/24 QTR | (a) CO % | 03/25 QTR | (a) CO % | 06/25 QTR | (a) CO % | | :-------------------------- | :-------- | :------- | :-------- | :------- | :-------- | :------- | | Multi-Family | $— | — % | $— | — % | $— | — % | | Commercial Real Estate | 163 | 0.02 | 4,223 | 0.46 | 5,470 | 0.61 | | Commercial & Industrial | 353 | 0.06 | 198 | 0.03 | (89) | (0.02) | | Construction | — | — | — | — | — | — | | Land - Acquisition & Development | (12) | (0.03) | (8) | (0.02) | (6) | (0.01) | | Single-Family Residential | (456) | (0.02) | 331 | 0.02 | (105) | (0.01) | | Construction - Custom | — | — | — | — | (2) | — | | Land - Consumer Lot Loans | — | — | — | — | — | — | | HELOC | (1) | — | — | — | (1) | — | | Consumer | 184 | 0.97 | 319 | 1.39 | 174 | 1.00 | [Delinquency Summary](index=8&type=section&id=Delinquency%20Summary) The total dollar amount of delinquent loans decreased from December 2024 to June 2025, with Single-Family Residential and Multi-Family loans contributing the most to the delinquent balance. The percentage of delinquent loans based on amortized cost remained relatively stable Total Delinquent Loans ($ in Thousands) | Metric | As of 12/24 | As of 03/25 | As of 06/25 | | :-------------------------------- | :---------- | :---------- | :---------- | | Total Delinquent Loans ($) | $64,442 | $57,947 | $53,788 | | Total Delinquent Loans (% based on ) | 0.73 % | 0.66 % | 0.66 % | | Total Delinquent Loans (% based on $) | 0.30 % | 0.27 % | 0.26 % | Delinquent Loans by Type (June 30, 2025) ($ in Thousands) | Type of Loans | Loans | Amortized Cost | Total Delinquent | % Based on | $ Delinquent | % Based on $ | | :-------------------------- | :------- | :------------- | :----------------- | :----------- | :----------- | :----------- | | Multi-Family | 1,872 | $4,780,029 | 7 | 0.37 % | $9,605 | 0.20 % | | Commercial Real Estate | 1,276 | 3,592,395 | 8 | 0.63 | 4,743 | 0.13 | | Commercial & Industrial | 5,338 | 2,292,082 | 48 | 0.90 | 835 | 0.04 | | Single-Family Residential | 21,172 | 8,108,147 | 118 | 0.56 | 34,933 | 0.43 | | HELOC | 4,314 | 276,278 | 17 | 0.39 | 2,182 | 0.79 | | Consumer | 6,300 | 69,959 | 71 | 1.13 | 344 | 0.49 | [Funding and Liabilities](index=5&type=section&id=Funding%20and%20Liabilities) This section outlines the company's funding structure, including total deposits, deposit types, time deposit repricing schedules, and borrowing activities [Deposits and Branches](index=5&type=section&id=Deposits%20and%20Branches) Total deposits remained relatively stable across the quarters, with Washington state holding the largest share. The total number of branches slightly decreased from 210 to 208 Total Deposits and Branches ($ in Thousands) | Metric | As of 12/24 Amount | As of 12/24 | As of 03/25 Amount | As of 03/25 | As of 06/25 Amount | As of 06/25 | | :----------- | :----------------- | :------------ | :----------------- | :------------ | :----------------- | :------------ | | Total Deposits | $21,438,777 | 210 | $21,427,426 | 209 | $21,386,571 | 208 | Deposits and Branches by State (June 30, 2025) ($ in Thousands) | State | Amount | % | | | :----------- | :------- | :---- | :- | | Washington | $8,716,662 | 40.8 % | 73 | | Oregon | 2,779,995 | 13.0 | 36 | | California | 3,886,981 | 18.2 | 10 | | New Mexico | 1,711,722 | 8.0 | 18 | | Arizona | 1,666,381 | 7.8 | 28 | [Deposits by Type](index=5&type=section&id=Deposits%20by%20Type) Time Deposits continued to be the largest deposit category, followed by Interest Checking and Money Market accounts. Non-Interest Checking balances showed some fluctuation but ended close to the December 2024 level Deposits by Type ($ in Thousands) | Type | As of 12/24 Amount | As of 12/24 % | As of 03/25 Amount | As of 03/25 % | As of 06/25 Amount | As of 06/25 % | | :-------------------- | :----------------- | :------------ | :----------------- | :------------ | :----------------- | :------------ | | Non-Interest Checking | $2,489,394 | 11.6 % | $2,400,172 | 11.2 % | $2,487,816 | 11.6 % | | Interest Checking | 4,554,922 | 21.2 | 4,625,596 | 21.6 | 4,705,457 | 22.0 | | Savings | 714,755 | 3.4 | 715,199 | 3.4 | 703,085 | 3.4 | | Money Market | 4,094,788 | 19.1 | 4,113,017 | 19.2 | 4,072,766 | 19.0 | | Time Deposits | 9,584,918 | 44.7 | 9,573,442 | 44.7 | 9,417,447 | 44.0 | | Total | $21,438,777 | 100 % | $21,427,426 | 100 % | $21,386,571 | 100 % | - Deposits Uninsured & Non-collateralized (EOP): - As of 12/24: **$5,317,511 thousand (24.8%)** - As of 03/25: **$5,490,142 thousand (25.6%)** - As of 06/25: **$5,094,400 thousand (23.8%)**[11](index=11&type=chunk) [Time Deposit Repricing](index=5&type=section&id=Time%20Deposit%20Repricing) The largest portion of time deposits is set to reprice within 3 to 6 months, with rates generally declining across the shorter-term buckets from December 2024 to June 2025 Time Deposit Repricing ($ in Thousands) | Term | As of 12/24 Amount | As of 12/24 Rate | As of 03/25 Amount | As of 03/25 Rate | As of 06/25 Amount | As of 06/25 Rate | | :-------------------- | :----------------- | :--------------- | :----------------- | :--------------- | :----------------- | :--------------- | | Within 3 months | $3,744,158 | 4.59 % | $3,380,830 | 4.31 % | $3,287,622 | 4.21 % | | From 4 to 6 months | 2,655,054 | 4.38 % | 3,153,646 | 4.23 % | 3,340,791 | 3.79 % | | From 7 to 9 months | 1,538,725 | 4.49 % | 1,412,021 | 3.86 % | 1,157,423 | 3.73 % | | From 10 to 12 months | 836,930 | 3.41 % | 962,710 | 3.39 % | 1,253,435 | 3.73 % | [Borrowings](index=5&type=section&id=Borrowings) Total borrowings significantly decreased from December 2024 to June 2025, primarily driven by a reduction in short-term borrowings (within 3 months). The weighted average rates on borrowings also showed a downward trend Total Borrowings ($ in Thousands) | Metric | As of 12/24 | As of 03/25 | As of 06/25 | | :----------- | :---------- | :---------- | :---------- | | Total Borrowings | $2,914,627 | $2,814,938 | $1,991,087 | Borrowings by Effective Maturity ($ in Thousands) | Term | As of 12/24 Amount | As of 12/24 Rate | As of 03/25 Amount | As of 03/25 Rate | As of 06/25 Amount | As of 06/25 Rate | | :-------------------- | :----------------- | :--------------- | :----------------- | :--------------- | :----------------- | :--------------- | | Within 3 months | $1,850,825 | 4.84 % | $1,750,000 | 4.50 % | $925,000 | 4.49 % | | From 7 to 9 months | — | — % | — | — % | 100,000 | 1.60 % | | From 10 to 12 months | — | — % | 100,000 | 1.67 % | — | — % | | 1 to 3 years | 194,284 | 3.14 % | 95,193 | 4.66 % | 96,112 | 4.66 % | | More than 5 years | 851,118 | 1.15 % | 851,180 | 0.95 % | 851,411 | 0.86 % | [Interest Rate Sensitivity and Performance](index=6&type=section&id=Interest%20Rate%20Sensitivity%20and%20Performance) This section evaluates interest rate risk, historical prepayment rates, and the performance of average interest-earning assets and liabilities, including net interest income and margin [Interest Rate Risk](index=6&type=section&id=Interest%20Rate%20Risk) The company's Net Present Value (NPV) showed resilience to both upward and downward 100 bps interest rate shocks, with a positive change in NPV in all scenarios. The change in Net Interest Income (NII) after a down 100 bps shock significantly increased from 1.4% to 4.0% Interest Rate Risk (NPV and NII Sensitivity) | Metric | As of 12/24 | As of 03/25 | As of 06/25 | | :-------------------------- | :---------- | :---------- | :---------- | | NPV post up 100 bps shock | 10.2 % | 10.0 % | 10.6 % | | NPV post down 100 bps shock | 12.2 % | 12.2 % | 12.6 % | | Change in NII after up 100 bps shock | 1.4 % | 0.5 % | 1.1 % | | Change in NII after down 100 bps shock | 2.0 % | 4.4 % | 4.0 % | [Historical CPR Rates](index=6&type=section&id=Historical%20CPR%20Rates) Historical Conditional Payment Rates (CPR) for SFR Mortgages and GSE MBS fluctuated, with SFR Mortgages CPR reaching 9.0% and GSE MBS CPR at 12.5% in June 2025, indicating varying prepayment speeds Historical CPR Rates | Average for Quarter Ended: | SFR Mortgages | GSE MBS | | :------------------------- | :------------ | :-------- | | 6/30/2023 | 7.9 % | 11.8 % | | 9/30/2023 | 7.0 % | 14.5 % | | 12/31/2023 | 6.6 % | 9.7 % | | 3/31/2024 | 4.8 % | 8.7 % | | 6/30/2024 | 6.6 % | 12.0 % | | 9/30/2024 | 8.6 % | 12.9 % | | 12/31/2024 | 8.1 % | 12.7 % | | 3/31/2025 | 8.1 % | 9.1 % | | 6/30/2025 | 9.0 % | 12.5 % | [Average Balance Sheet and Net Interest Income](index=7&type=section&id=Average%20Balance%20Sheet%20and%20Net%20Interest%20Income) The average balance of interest-earning assets and interest-bearing liabilities decreased over the quarters. Net interest income and net interest margin both showed a positive trend, increasing from 1.83% to 2.17% and 2.39% to 2.69% respectively Average Interest Earning Assets ($ in Thousands) | Asset Category | Dec 31, 2024 Avg Balance | Dec 31, 2024 Avg Rate | Mar 31, 2025 Avg Balance | Mar 31, 2025 Avg Rate | Jun 30, 2025 Avg Balance | Jun 30, 2025 Avg Rate | | :-------------------- | :----------------------- | :-------------------- | :----------------------- | :-------------------- | :----------------------- | :-------------------- | | Loans receivable | $20,954,663 | 5.43 % | $20,918,986 | 5.47 % | $20,592,807 | 5.44 % | | Mortgage-backed securities | 1,882,688 | 3.86 | 2,369,535 | 4.10 | 2,708,789 | 4.12 | | Cash & investments | 2,855,030 | 5.27 | 2,216,944 | 5.05 | 1,683,378 | 5.13 | | FHLB Stock | 106,062 | 8.39 | 123,346 | 8.06 | 106,816 | 10.66 | | Total interest earning assets | $25,798,443 | 5.31 % | $25,628,811 | 5.32 % | $25,091,790 | 5.30 % | Average Interest Bearing Liabilities ($ in Thousands) | Liability Category | Dec 31, 2024 Avg Balance | Dec 31, 2024 Avg Rate | Mar 31, 2025 Avg Balance | Mar 31, 2025 Avg Rate | Jun 30, 2025 Avg Balance | Jun 30, 2025 Avg Rate | | :-------------------------- | :----------------------- | :-------------------- | :----------------------- | :-------------------- | :----------------------- | :-------------------- | | Interest-bearing customer accounts | $18,743,048 | 3.43 % | $18,881,290 | 3.26 % | $18,769,137 | 3.14 % | | Borrowings | 2,899,012 | 3.77 | 2,723,664 | 3.46 | 2,226,086 | 3.06 | | Total interest bearing liabilities | $21,642,060 | 3.48 % | $21,604,954 | 3.29 % | $20,995,223 | 3.13 % | Net Interest Income and Net Interest Margin | Metric | Dec 31, 2024 QTR | Mar 31, 2025 QTR | Jun 30, 2025 QTR | | :-------------------------- | :--------------- | :--------------- | :--------------- | | Net interest income/interest rate spread | $155,431 (1.83 %) | $160,910 (2.03 %) | $167,988 (2.17 %) | | Net interest margin | 2.39 % | 2.55 % | 2.69 % | ```