Core Insights - WaFd, Inc. (WAFD) reported a fourth-quarter fiscal 2025 earnings per share of 72 cents, missing the Zacks Consensus Estimate of 75 cents, but reflecting a year-over-year increase of 1.4% [1][10] - The company's full-year earnings per share of $2.63 also fell short of the Zacks Consensus Estimate of $2.73, although it grew 5.2% year over year [3] Financial Performance - Quarterly net income available to common shareholders was $56.9 million, down 1% from the prior-year quarter, slightly above the estimate of $56.8 million [2] - Full-year net income available to common shareholders was $211.4 million, up 14% from the previous year, closely aligning with the estimate of $211.3 million [3] - Quarterly net revenues were $188.3 million, a slight decline from the prior-year quarter and missing the Zacks Consensus Estimate of $190.2 million [4] - Full-year net revenues totaled $725.5 million, a marginal increase from the previous year, but also missing the Zacks Consensus Estimate of $727.4 million [4] Interest Income and Expenses - Net interest income (NII) for the quarter was $169.9 million, down 1.7% year over year, while the net interest margin (NIM) increased by 9 basis points to 2.71% [5] - Total non-interest income rose 15.8% year over year to $18.4 million, exceeding the estimate of $18 million [5] - Total non-interest expenses were $107 million, a 1% decrease year over year, attributed to lower FDIC insurance premiums and other expenses [6] Asset Quality and Loans - As of September 30, 2025, net loans receivable were $20.09 billion, down 1% from the prior quarter, while total customer deposits increased marginally to $21.44 billion [8] - The allowance for credit losses was 1.04% of gross loans outstanding, up from 1.01% in the prior-year quarter, indicating a deterioration in credit quality [11] Share Repurchase Activity - In the reported quarter, WAFD repurchased 0.97 million shares at an average price of $29.74 per share [12] Market Position and Outlook - The company is expected to benefit from relatively higher interest rates and a solid balance sheet, although it faces challenges from a tough macroeconomic environment [13]

Financial Data and Key Metrics Changes - WaFd Inc. reported net income available to common shareholders of $56.9 million or $0.72 per diluted share for Q4 2025, a slight decrease from $0.73 per share in Q3 2025 and an increase from $0.71 per share in Q4 2024 [5] - For the full fiscal year 2025, net income available to common shareholders was $211.4 million or $2.63 per diluted share, compared to $2.50 per share in fiscal 2024 [5] - Total cash decreased by $152 million in Q4, while total investments and mortgage-backed securities increased to $279 million [8] Business Line Data and Key Metrics Changes - Loans receivable decreased by $188 million during the quarter, primarily due to a decrease in inactive loan types, which fell by $216 million [6] - Loan originations for the quarter were $1.4 billion, significantly higher than $700 million in the previous quarter, marking the first time this fiscal year that originations outpaced repayments [6] - Non-interest income increased slightly to $18.4 million, with $4.6 million coming from WaFd Insurance, which saw a 12.5% revenue increase year-over-year [9] Market Data and Key Metrics Changes - Deposits increased by $51 million during the quarter, with non-interest-bearing deposits rising by $80 million or 3.2% [7] - Core deposits accounted for 78% of total deposits, up from 75% at the prior year-end [7] - The net loan-to-deposit ratio ended the quarter at 93.7% [7] Company Strategy and Development Direction - The company is transitioning from a thrift to a commercial bank, with a new strategic plan called Build 2030 aimed at increasing non-interest-bearing deposits from 11% to 20% by the end of fiscal 2030 [23] - The focus is on serving small businesses to achieve lower funding costs, with a reorganization of frontline bankers into specialized teams [24] - WaFd has launched WaFd Wealth Management, aiming to grow assets under management to $1 billion in the first two years [31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the elevated interest rate environment and economic uncertainty have impacted loan demand and credit quality [15] - The company expects to see 8% to 12% growth in the active loan portfolio in the next year, while anticipating a runoff of $200 million to $300 million per quarter in inactive loans [42] - Management remains optimistic about the future, citing improvements in technology and client engagement as key drivers for profitability [71] Other Important Information - The company has exited the single-family mortgage lending market, which has allowed for a shift towards mortgage-backed securities [6] - WaFd's liquidity and capital profile are strong, with all capital ratios exceeding regulatory well-capitalized levels [8] - The company is actively managing credit quality, with delinquent loans at 0.6% and non-performing assets at 0.54% of total assets [11][12] Q&A Session Summary Question: What are the expectations for net growth in fiscal 2026? - Management expects 8% to 12% growth in the active portfolio, with inactive loans running off about $200 million to $300 million per quarter [42] Question: Can you provide an update on rate sensitivity and margin expectations? - Management indicated that margin could expand with future rate cuts, but noted a lag in full effectiveness [46] Question: What are the drivers behind the decrease in core loan yields? - The decrease was primarily due to an increase in non-accrual loans, which had a 3 basis point impact on the margin [51] Question: What is the outlook for time deposits? - Management aims for overall growth rather than shrinking the time deposit book, expecting to break even or see slight growth in time deposits [62] Question: How is the company approaching stablecoin and potential partnerships? - Management is monitoring the situation closely and sees potential opportunities but has not announced any partnerships yet [58]

Financial Data and Key Metrics Changes - Woffett reported net income available to common shareholders of $56.9 million or $0.72 per diluted share for Q4 2025, a slight decrease from $0.73 per share in Q4 2024 [7][8] - For the full year 2025, net income available to common shareholders was $211.4 million or $2.63 per diluted share, compared to $2.50 per share in 2024 [8] - Total noninterest income increased slightly to $18.4 million, with Woffett Insurance contributing $4.6 million for the quarter and $19.5 million for the fiscal year, a 12.5% increase over the prior year [12][13] Business Line Data and Key Metrics Changes - Loans receivable decreased by $188 million during the quarter, primarily due to a decrease in inactive loan types, while loan originations increased to $1.4 billion, outpacing repayments for the first time this fiscal year [8][9] - Active loan types, including multifamily and commercial real estate, saw significant increases in production, with commercial real estate production rising from $44 million to $211 million [15][16] - The net loan to deposit ratio ended the quarter at 93.7%, with core deposits making up 78% of total deposits, up from 75% a year ago [10][11] Market Data and Key Metrics Changes - Deposits increased by $51 million during the quarter, with noninterest-bearing deposits rising by 3.2% [10] - The former Luther Burbank deposits decreased by $1 billion over the fiscal year, reflecting a strategic effort to lower the cost of funds [10] - The liquidity and capital profile remains strong, with all capital ratios exceeding regulatory well-capitalized levels [12] Company Strategy and Development Direction - The company is transitioning from a thrift to a commercial bank, focusing on becoming a digital-first bank and increasing transaction deposits [24][31] - The new strategic plan, "Build 2030," aims to increase noninterest-bearing deposits from 11% to 20% by the end of fiscal 2030 [31] - Woffett has reorganized its banking teams to better serve commercial credit needs and has expanded its product offerings, including SBA loans [33][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from rising interest rates and economic uncertainty but expressed confidence in the company's strategic direction and technology investments [21][24] - The company expects to see 8% to 12% growth in its active loan portfolio in the next year, while anticipating a runoff of $200 million to $300 million in inactive loans per quarter [56][57] - Management highlighted the importance of maintaining a disciplined approach to credit risk as the company grows [37] Other Important Information - The company successfully launched Woffett Wealth Management, aiming to grow assets under management to $1 billion within two years [42] - The company is actively involved in advocating for deposit insurance reform to create a more level playing field in the banking industry [45][46] Q&A Session Summary Question: Expectations for net growth in fiscal 2026 - Management anticipates 8% to 12% growth in the active loan portfolio, with an expected runoff of $200 million to $300 million in inactive loans per quarter [56][57] Question: Update on margin and rate sensitivity - The margin at the end of the quarter was 2.82%, and management expects it to expand with future rate cuts, although there is typically a lag in recognizing the benefits [58][60] Question: Core loan yields and impact of nonaccrual loans - The decrease in core loan yields was primarily driven by an increase in nonaccrual loans, which had a three basis point impact on the margin [66][67] Question: Outlook on deposit costs and client reactions to rate cuts - Management plans to be more aggressive with rate cuts now that the loan-to-deposit ratio is lower, and clients have not shown significant pushback against recent rate changes [89][90] Question: Plans for improving profitability and technology offerings - The focus will be on enhancing business accounts and continuously improving technology offerings based on client feedback [100][103]

Core Insights - WaFd Inc. reported an earnings per share (EPS) of $0.72, which was below the Zacks Consensus Estimate of $0.75, resulting in a 4% negative surprise, although it shows a slight improvement from the previous year's EPS of $0.70 [2] - The company's quarterly revenue was approximately $188.3 million, slightly missing the forecasted $190.6 million and showing a minor decline from $188.69 million reported in the same quarter last year [3] - WaFd's financial metrics indicate a price-to-earnings (P/E) ratio of about 9.81, a price-to-sales (P/S) ratio of around 1.51, and an enterprise value to sales ratio of approximately 2.31 [4] Financial Health Indicators - The debt-to-equity ratio stands at about 0.66, reflecting a balanced approach to leveraging debt and equity [5] - The current ratio is approximately 12.64, indicating a strong capacity to meet short-term obligations [5] - An earnings yield of about 10.19% suggests an attractive return on investment for shareholders [5]

Core Insights - WaFd reported $188.3 million in revenue for the quarter ended September 2025, reflecting a year-over-year decline of 0.2% and an EPS of $0.72 compared to $0.70 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $190.22 million, resulting in a surprise of -1.01%, while the EPS also missed the consensus estimate of $0.75 by 4% [1] Financial Performance Metrics - Efficiency Ratio stood at 56.8%, higher than the two-analyst average estimate of 55.5% [4] - Net Interest Margin was reported at 2.7%, matching the two-analyst average estimate [4] - Net charge-offs average loans were at 0%, better than the two-analyst average estimate of 0.1% [4] - Total Non-performing Assets reached $143.02 million, significantly above the two-analyst average estimate of $98.38 million [4] - Average balance of Total interest-earning assets was $24.84 billion, slightly below the two-analyst average estimate of $25.07 billion [4] - Total Non-accrual loans amounted to $128.63 million, exceeding the two-analyst average estimate of $83.91 million [4] - Total noninterest income was reported at $18.39 million, slightly above the two-analyst average estimate of $18.19 million [4] - Net Interest Income was $169.91 million, lower than the two-analyst average estimate of $172.05 million [4] Stock Performance - WaFd shares have returned -7.1% over the past month, contrasting with the Zacks S&P 500 composite's +0.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

分组1 - WaFd reported quarterly earnings of $0.72 per share, missing the Zacks Consensus Estimate of $0.75 per share, and showing an increase from $0.70 per share a year ago, resulting in an earnings surprise of -4.00% [1] - The company posted revenues of $188.3 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 1.01%, and showing a slight decrease from year-ago revenues of $188.69 million [2] - Over the last four quarters, WaFd has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] 分组2 - WaFd shares have underperformed the market, losing about 10.4% since the beginning of the year, while the S&P 500 has gained 13.4% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.74 on revenues of $191.63 million, and for the current fiscal year, it is $3.02 on revenues of $768.55 million [7] 分组3 - The Zacks Industry Rank indicates that the Banks - West industry is currently in the bottom 30% of over 250 Zacks industries, which may negatively impact stock performance [8] - Coastal Financial Corporation, another company in the same industry, is expected to report quarterly earnings of $0.89 per share, reflecting a year-over-year change of -8.3%, with revenues expected to be $129 million, down 15.3% from the previous year [9]

Core Insights - WaFd, Inc. reported a net income of $226 million for the fiscal year, with diluted earnings per common share at $2.63, a return on average assets of 0.84%, and a return on tangible common equity of 9.20% [1] - In the fourth quarter, the company achieved a net income of $61 million, with diluted earnings per common share at $0.72, a return on average assets of 0.91%, and a return on tangible common equity of 9.99% [1] - The company indicated a positive trend for Fiscal 2025, highlighting an improving margin and significant growth [1]

Core Viewpoint - WaFd (WAFD) is expected to report quarterly earnings of $0.75 per share, a 7.1% increase year-over-year, with revenues projected at $190.22 million, reflecting a 0.8% increase compared to the previous year [1] Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [2] Key Metrics Forecast - Analysts predict 'Total Non-performing Assets' to be $98.38 million, up from $77.42 million a year ago [4] - The consensus for 'Average balance - Total interest-earning assets' is $25.07 billion, down from $26.24 billion year-over-year [4] - The 'Efficiency Ratio' is expected to be 55.5%, improved from 57.2% in the same quarter last year [5] - 'Total Non-accrual loans' are forecasted at $83.91 million, compared to $69.54 million in the same quarter of the previous year [5] - 'Total noninterest income' is estimated to reach $18.19 million, up from $15.88 million a year ago [6] - The consensus for 'Net Interest Income' stands at $172.05 million, slightly down from $172.81 million reported in the same quarter last year [6] Stock Performance - Over the past month, WaFd shares have declined by 8.5%, while the Zacks S&P 500 composite has increased by 0.4% [6] - WaFd holds a Zacks Rank 3 (Hold), indicating expected performance in line with the overall market [6]

Core Points - The Consumer Financial Protection Bureau (CFPB) has terminated consent orders against Washington Federal, indicating compliance with previous obligations [1][4] - The terminations relate to violations of the Home Mortgage Disclosure Act, with one order dating back to October 2013 and the other from 2020 [2][4] - Washington Federal paid a civil penalty of $200,000 in the 2020 case and $34,000 in the 2013 case, fulfilling several obligations under the orders [3][4] Summary by Category Compliance and Regulatory Actions - The CFPB ended compliance requirements for Washington Federal five years early in the 2020 case, which involved erroneous mortgage data [4] - The 2013 order required Washington Federal to pay a penalty for inaccurate mortgage transaction data reported for 2011 [4] Related Actions by CFPB - The CFPB also terminated consent orders against U.S. Bank and Apple, indicating a trend of early terminations of compliance requirements [5][7] - U.S. Bank was ordered to pay $20.7 million for freezing unemployment benefits during the COVID-19 pandemic, and the CFPB waived over three years of compliance requirements [5][6] - Apple faced a $25 million penalty for failing to send consumer disputes to Goldman Sachs, with the CFPB terminating the order more than four years early [7]

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].