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 | | --- | --- | --- | --- | ...

WaFd Inc. Announces Third Quarter 2025 Results WaFd, Inc. Fact Sheet June 30, 2025 ($ in Thousands) Exhibit 99.2 | | | As of 12/24 | | | | As of 03/25 | | | | As of 06/25 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Allowance for Credit Losses (ACL) - | | | | | | | | | | | | | | Total | $ | 225,022 | | | $ | 222,709 | | | $ | 219,268 | | | | ACL - Loans | | 204,522 | | | | 202,709 | | | | 198,768 | | | | ACL - Unfunded Commitments | | 20,500 | | | | 20,000 | | | | ...

Core Viewpoint - WaFd, Inc. (WAFD) reported better-than-expected quarterly results, with adjusted earnings of 73 cents per share, surpassing the Zacks Consensus Estimate of 67 cents, although this represented a 3.9% year-over-year decline [1][9] Financial Performance - The company's net income available to common shareholders was $58.3 million, down 4.3% from the prior-year quarter, while the estimate was $51.9 million [2] - Quarterly net revenues were $186.261 million, a decrease of 4.2% year over year, but exceeded the Zacks Consensus Estimate of $185.7 million [3] - Net interest income (NII) was $160.9 million, declining 5.2% year over year, primarily due to a lower loan balance, while net interest margin (NIM) increased by 13 basis points to 2.69% [3] - Total non-interest income rose 5.9% to $18.3 million, surpassing the estimate of $17.2 million, while total non-interest expenses fell 5.2% to $104.3 million [4] Efficiency and Returns - The efficiency ratio improved to 56.01%, down from 56.61% in the prior-year quarter, indicating enhanced profitability [5] - Return on average common equity was 8.54%, down from 9.20%, while return on average assets increased to 0.92% from 0.87% [5] Loans and Deposits - As of June 30, 2025, net loans receivable were $20.28 billion, down 3.1% from the prior quarter, while total customer deposits were $21.39 billion, showing a slight decline [6] Credit Quality - The allowance for credit losses increased to 1.03% of gross loans outstanding, up from 1.00% in the prior-year quarter, with non-performing assets to total assets ratio rising to 0.36% from 0.24% [7] - Provision for credit losses was $2 million, a significant increase of 33.3% from the year-ago quarter [7] Share Repurchase Activity - During the reported quarter, WAFD repurchased 1.66 million shares at an average price of $29.08 per share [10] Strategic Outlook - The company is expected to benefit from relatively higher interest rates, business restructuring, and a strong balance sheet, with the acquisition of Luther Burbank Corporation enhancing its presence in California [11]

WaFd (WAFD) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move ...

Company Overview - As of March 31, 2025, WaFd Bank has total assets of $27.6 billion, total loans held for investment (HFI) of $20.9 billion, total deposits of $21.4 billion, and stockholder equity of $3.0 billion[7] - The bank's efficiency ratio is 58.3%, and the adjusted efficiency ratio is 58.4%[7] - WaFd Bank has 209 branches across 9 western states[7] Market Demographics - WaFd Bank's deposit market share in Washington is 3.97% with deposits of $8,723,693,000[12] - In California, the deposit market share is 0.27% with deposits of $4,073,942,000[12] - The total deposits across all states amount to $21,427,426,000[12] Loan Portfolio - As of March 31, 2025, multifamily loans constitute 23% of the net loan portfolio, with a net balance of $4,840,784,000 and a weighted average current loan-to-value (LTV) of 56%[52] - Single-family residence (SFR) loans make up 39% of the net loan portfolio, with a net balance of $8,223,356,000 and a weighted average current LTV of 38%[52] - Commercial Real Estate (CRE) - Office loans represent 4% of the net loan portfolio, with a net balance of $775,564,000 and a weighted average current LTV of 69%[52] Financial Performance - For the quarter ended March 31, 2025, net income available to common shareholders was $52,596,000, a 330% increase compared to $12,232,000 for the quarter ended March 31, 2024[76] - Net interest income for the quarter ended March 31, 2025, was $160,910,000, a 1% increase compared to $158,597,000 for the quarter ended March 31, 2024[75] - Non-interest income for the quarter ended March 31, 2025, was $18,881,000, a 41% increase compared to $13,392,000 for the quarter ended March 31, 2024[76] Capital Management - In 2025 YTD, $67,293,000 was returned to shareholders through dividends, representing 70% of net income[106] - 815,610 shares were repurchased in 2025 YTD at a weighted price of $30.35, representing 1.3% of outstanding shares at the beginning of the year[108] - The current cash dividend of $0.27 provides a yield of 3.79% based on the current stock price as of April 30[112]

Financial Position - As of March 31, 2025, the company reported total assets of $27,644,637,000, a decrease of $415,693,000 from $28,060,330,000 at September 30, 2024[221]. - Cash and cash equivalents amounted to $1,231,461,000 as of March 31, 2025, providing management with flexibility in managing interest rate risk[222]. - Total borrowings decreased to $2,763,758,000 as of March 31, 2025, down from $3,267,589,000 at September 30, 2024[227]. - Cash and cash equivalents decreased by $1,149,641,000, or 48.3%, to $1,231,461,000 at March 31, 2025[236]. - The Company's shareholders' equity increased by $32,320,000 to $3,032,620,000, or 10.97% of total assets, as of March 31, 2025[228]. - The ratio of tangible capital to tangible assets was 9.51% as of March 31, 2025, indicating a strong equity position[228]. Loan and Asset Performance - The average balance of loans receivable increased to $20,918,986,000 for the three months ended March 31, 2025, compared to $19,696,515,000 for the same period in 2024[219]. - Total gross loans reached $21,122,710,000 as of March 31, 2025, with significant contributions from Washington ($4,867,340,000) and California ($2,979,107,000)[245]. - Loans receivable increased by $3,647,000 to $20,920,001,000 at March 31, 2025, compared to $20,916,354,000 at September 30, 2024[240]. - Non-performing assets decreased by $6,534,000 to $70,884,000, representing 0.26% of total assets, down from 0.28%[249]. - Non-accrual loans totaled $59,886,000, with the largest share in commercial real estate at $29,320,000, accounting for 49.0% of non-accrual loans[251]. - Loans less than 90 days delinquent amounted to $506,938,000, which, if classified as non-performing, would increase the non-performing assets ratio to 2.09%[253]. - The company’s single-family residential loans accounted for 39.1% of total gross loans, indicating a strong focus on this segment[246]. Income and Expenses - The company recorded net income of $56,252,000 for the three months ended March 31, 2025, compared to $15,888,000 for the same period last year, reflecting significant growth due to the effects of the merger[263]. - Net interest income for the three months ended March 31, 2025, was $160,910,000, an increase of $2,313,000 from the prior year, with a net interest margin of 2.55% compared to 2.73% in the same quarter last year[264]. - Non-interest income for the three months ended March 31, 2025, was $18,881,000, an increase of $5,489,000 from the same period last year, primarily due to higher prepayment fees and commission income[270]. - Non-interest expense decreased to $104,832,000 for the three months ended March 31, 2025, down by $28,880,000 from $133,712,000 in the prior year quarter, largely due to reduced merger-related expenses[271]. Capital and Risk Management - The common equity tier 1 capital ratio for the Company was 11.51% as of March 31, 2025, exceeding the minimum requirement of 4.50%[235]. - The total risk-based capital ratio for the Company was 14.49% as of March 31, 2025, above the minimum requirement of 8.00%[235]. - The provision for credit losses was $2,750,000 for the three months ended March 31, 2025, compared to $16,000,000 for the same period last year, reflecting a stable loan receivable balance[269]. - Total allowance for credit losses decreased to $222,709,000 as of March 31, 2025, from $225,253,000 as of September 30, 2024, representing a decline of 1.1%[257]. - The company’s allowance for credit losses composition reflects a proactive approach to managing credit risk amid changing market conditions[256]. Market and Operational Insights - The net interest margin for the quarter ended March 31, 2025, was 2.55%, down from 2.73% for the same quarter in 2024[216]. - The yield on interest-earning assets decreased by 18 basis points to 5.32% for the quarter ended March 31, 2025[216]. - The conditional payment rate (CPR) for single-family mortgages increased to 8.10% as of March 31, 2025, up from 4.80% the previous year[215]. - Commercial loan originations accounted for 74% of total originations during the period[240]. - The effective tax rate for the three months ended March 31, 2025, was 21.88%, down from 24.21% for the same period last year[273]. Legal and Regulatory Matters - There have been no material changes in the Company's quantitative and qualitative information about market risk since September 30, 2024[278]. - No changes in the Company's internal control over financial reporting that have materially affected, or are likely to materially affect, such controls[280]. - The Company and its consolidated subsidiaries are involved in legal proceedings that are believed to be immaterial to the financial statements[282].

Loan Originations and Portfolio - Total loan originations for Q1 2025 reached $1,008,874,000, a year-to-date total of $1,939,563,000[2] - The net loan portfolio as of March 2025 is $20,920,001,000, with single-family residential loans comprising 39.3% of the total[4] - Multi-family loans increased to $4,967,125,000, accounting for 22.4% of the total loan receivables as of March 2025[4] - The total loans receivable as of March 2025 is $22,158,727,000[4] - Total loans as of March 2025 amount to $21,122,710, with a slight decrease from $21,265,022 in December 2024[6] - As of March 31, 2025, the total number of loans reached 41,380 with an average size of $510, resulting in an amortized cost of $21,122,710[17] - The total number of loans decreased from 40,825 on December 31, 2024, to 41,380 on March 31, 2025[17] Loan Performance and Delinquency - The allowance for credit losses (ACL) for loans as of March 2025 is $202,709,000, representing 1.01% of gross loans[2] - Non-performing assets total $70,884, representing 0.26% of total assets as of March 2025, down from 0.29% in December 2024[6] - Total non-accrual loans decreased to $59,886 in March 2025, down from $72,487 in December 2024[6] - Non-accrual loans as a percentage of total net loans decreased to 0.29% in March 2025, compared to 0.34% in December 2024[6] - The delinquency rate for the total loan portfolio was 0.66%, with $57,947 classified as delinquent[17] - The overall delinquency amount increased from $64,442 on December 31, 2024, to $57,947 on March 31, 2025[17] Financial Metrics and Ratios - The weighted average rate on loan originations for Q1 2025 is 7.12%[2] - Efficiency ratio improved to 58.31% in March 2025, compared to 65.04% in December 2024[8] - Tangible common shareholders' book value per share increased to $28.31 as of March 2025, up from $27.93 in December 2024[8] - Operating expenses as a percentage of average assets improved to 1.53% in March 2025, down from 1.62% in December 2024[8] - The net interest margin for the quarter ended March 31, 2025, was 2.55%, compared to 2.39% for the previous quarter[15] - The company reported a net interest income of $160,910 for the quarter ended March 31, 2025[15] Deposits and Funding - Total deposits as of March 31, 2025, amounted to $21,427,426, a slight decrease from $21,438,777 as of December 31, 2024, and $21,373,970 as of September 30, 2024[11] - Non-interest checking deposits were $2,400,172, representing 11.2% of total deposits as of March 31, 2025, down from 11.6% in December 2024[11] - Interest checking deposits increased to $4,625,596, accounting for 21.6% of total deposits, up from 21.2% in December 2024[11] - The company’s uninsured and non-collateralized deposits at the end of the period were $5,490,142, representing 25.6% of total deposits[11] Shareholder Actions and Company Operations - The company repurchased 726,082 shares at an average price of $29.39 during the quarter ending March 2025[8] - The number of employees decreased to 2,018 as of March 2025, down from 2,175 in December 2024[8] Asset Management - The total assets as of March 31, 2025, were $27,371,320, a decrease from $27,504,576 as of December 31, 2024[15] - Agency MBS investments increased to $2,074,672 as of March 2025, up from $1,600,089 in December 2024[9] - The company’s NPV post a 100 bps shock was 9.4% as of March 31, 2025, down from 9.5% in December 2024[13] Loan Segmentation - Single-Family Residential loans accounted for 21,516 loans, averaging $384, with a total amortized cost of $8,264,318[17] - The Commercial & Industrial loan segment had 2,057 loans, averaging $1,159, with a delinquency rate of 1.02%[17] - The Multi-Family loan segment saw an increase in loans to 1,901, with an average size of $2,560 and a delinquency rate of 0.79%[17] - The total number of HELOC loans was 4,473, with an average size of $64 and a delinquency rate of 0.54%[17] - The total amortized cost for Commercial Real Estate loans was $3,639,477, with a delinquency rate of 0.39%[17] - The Consumer loan segment had 8,463 loans, averaging $11, with a delinquency rate of 0.97%[17]

Core Viewpoint - WaFd, Inc. reported strong adjusted earnings for the second quarter of fiscal 2025, exceeding expectations and showing significant year-over-year growth [1][3]. Financial Performance - Adjusted earnings per share were 65 cents, surpassing the Zacks Consensus Estimate of 60 cents, and up from 17 cents in the prior-year quarter [1][3]. - Quarterly net revenues reached $179.8 million, a 4.5% increase from the previous year, although below the consensus estimate of $184 million [4]. - Net interest income (NII) was $160.9 million, growing 1.5% year over year, while the net interest margin (NIM) contracted by 18 basis points to 2.55% [4]. - Total non-interest income rose significantly by 41% to $18.9 million, exceeding the estimate of $16.6 million [4]. Expense Management - Total non-interest expenses decreased by 21.6% year over year to $104.8 million, attributed to reductions across most components [5]. - The efficiency ratio improved to 58.31%, down from 77.74% in the prior-year quarter, indicating enhanced profitability [5]. Credit Quality - The allowance for credit losses was 1.01% of gross loans, slightly up from 1.00% year over year, while the ratio of non-performing assets to total assets increased to 0.26% [8]. - The provision for credit losses was $2.8 million, significantly lower than $16 million in the year-ago quarter [8]. Loan and Deposit Trends - As of March 31, 2025, net loans receivable were $20.92 billion, a slight decline from the previous quarter, while total customer deposits remained stable at $21.43 billion [7]. Share Repurchase Activity - During the reported quarter, the company repurchased 0.73 million shares at an average price of $29.39 per share [9]. Strategic Outlook - The company is expected to benefit from relatively higher interest rates, business restructuring, and a strong balance sheet, with the acquisition of Luther Burbank Corporation enhancing its presence in California [11].

Financial Performance - For the quarter ended March 2025, WaFd reported revenue of $179.79 million, which is an increase of 4.5% compared to the same period last year [1] - The EPS for the quarter was $0.65, down from $0.73 in the year-ago quarter [1] - The reported revenue was below the Zacks Consensus Estimate of $184.17 million, resulting in a surprise of -2.38% [1] - The company delivered an EPS surprise of +8.33%, with the consensus EPS estimate being $0.60 [1] Key Metrics - Total Non-performing Assets were reported at $70.88 million, which is better than the two-analyst average estimate of $85.18 million [4] - The average balance of Total interest-earning assets was $25.63 billion, slightly below the estimated $25.64 billion [4] - The Efficiency Ratio was 58.3%, outperforming the average estimate of 61.4% [4] - The Net Interest Margin was reported at 2.6%, matching the average estimate [4] - Total Non-accrual loans were $59.89 million, significantly lower than the average estimate of $78.56 million [4] - Total noninterest income was $18.88 million, exceeding the average estimate of $16.06 million [4] - Net Interest Income was $160.91 million, slightly below the average estimate of $164.28 million [4] Stock Performance - Shares of WaFd have returned -11.9% over the past month, compared to the Zacks S&P 500 composite's -6.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it may perform in line with the broader market in the near term [3]

Company Performance - WaFd reported quarterly earnings of $0.65 per share, exceeding the Zacks Consensus Estimate of $0.60 per share, but down from $0.73 per share a year ago, representing an earnings surprise of 8.33% [1] - The company posted revenues of $179.79 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 2.38%, compared to year-ago revenues of $171.99 million [2] - Over the last four quarters, WaFd has surpassed consensus EPS estimates three times and topped consensus revenue estimates only once [2] Stock Performance - WaFd shares have declined approximately 24.1% since the beginning of the year, while the S&P 500 has decreased by 10.4% [3] - The current consensus EPS estimate for the upcoming quarter is $0.64 on revenues of $194.36 million, and for the current fiscal year, it is $2.48 on revenues of $755.03 million [7] Industry Outlook - The Zacks Industry Rank for Banks - West is currently in the bottom 46% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]