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 % | ```

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]

Core Viewpoint - WaFd (WAFD) is anticipated to report a year-over-year decline in earnings due to lower revenues, with a consensus EPS estimate of $0.67, reflecting an 11.8% decrease compared to the previous year, and revenues expected to be $188.7 million, down 3% from the same quarter last year [1][3]. Earnings Expectations - The earnings report could lead to a stock price increase if the actual results exceed expectations, while a miss could result in a decline [2]. - Management's discussion during the earnings call will significantly influence the sustainability of any immediate price changes and future earnings expectations [2]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - WaFd's Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +2.00%, suggesting a bullish sentiment among analysts [12]. Historical Performance - In the last reported quarter, WaFd was expected to post earnings of $0.60 per share but actually delivered $0.65, resulting in a positive surprise of +8.33% [13]. - Over the past four quarters, WaFd has beaten consensus EPS estimates three times [14]. Investment Considerations - While WaFd is seen as a compelling earnings-beat candidate, investors should consider other factors that may influence stock performance beyond earnings results [17]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 indicates a likelihood of beating the consensus EPS estimate [12].

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]