WaFd Bank(WAFD)2025-02-04 22:15Financial Performance - For the three months ended December 31, 2024, the company recorded net income of $47,267,000, a decrease from $58,453,000 in the prior year quarter[256]. - Net interest income for the same period was $155,431,000, which is $3,194,000 lower than the same quarter of the prior year, with a net interest margin of 2.39% compared to 2.91% a year ago[257]. - Total non-interest income rose to $15,702,000, an increase of $1,535,000 from $14,167,000 in the same period last year[261]. - Total non-interest expense for the three months ended December 31, 2024, was $111,311,000, an increase of $14,771,000 from $96,540,000 in the prior year quarter, primarily due to increased occupancy and compensation costs post-merger[262]. - The effective tax rate for the three months ended December 31, 2024, was 21.55%, compared to 18.46% for the prior year quarter[264]. Interest Rates and Margins - As of December 31, 2024, the net interest margin was 2.39%, down from 2.91% for the same quarter in 2023[210]. - The yield on interest-earning assets decreased by 16 basis points to 5.31%, while the cost of interest-bearing liabilities decreased by 32 basis points to 3.48%[210]. - The potential increase in net interest income for a 200 basis point decrease in interest rates is estimated at $26,825,000 as of December 31, 2024[208]. - The potential decrease in net present value (NPV) for a 200 basis point increase in interest rates is estimated at $(848,408,000) as of December 31, 2024[209]. Assets and Liabilities - Total assets decreased by $375,876,000 to $27,684,454,000 from $28,060,330,000 at September 30, 2024[213]. - Cash and cash equivalents decreased by $873,367,000, or 36.7%, to $1,507,735,000 since September 30, 2024[229]. - Total borrowings decreased to $2,863,675,000 from $3,267,589,000 at September 30, 2024[219]. - The Company has $537,348,000 of mortgage-backed securities designated as HTM, with a net unrealized loss of $52,242,000 as of December 31, 2024[203]. - The Company has $2,743,731,000 of AFS securities carried at fair value, with a net unrealized loss of $69,036,000 as of December 31, 2024[203]. Loans and Credit Quality - Loans receivable increased by $144,147,000 to $21,060,501,000 at December 31, 2024, with commercial loans accounting for 68% of total originations[233]. - Total gross loans increased by $72,640,000, reaching $22,432,036,000, a growth of 0.3% from the previous quarter[235]. - Non-performing assets increased by $1,695,000 to $79,113,000, with non-performing assets as a percentage of total assets at 0.29%[242]. - The allowance for credit losses on loans was $204,522,000, a slight increase of $769,000 from the previous quarter[235]. - Total non-accrual loans increased to $72,487,000, representing 0.29% of total assets, up from $69,541,000 or 0.28% in the previous quarter[245]. Capital and Equity - Shareholders' equity increased by $21,336,000 to $3,021,636,000, representing 10.91% of total assets[221]. - The common equity tier 1 capital ratio for the Company was 11.45% as of December 31, 2024, exceeding the minimum requirement of 4.50%[228]. - The ratio of tangible capital to tangible assets was 9.45% at December 31, 2024, indicating a strong equity position[221]. Operational Changes and Corporate Actions - The Company filed Articles of Amendment to change its name from Washington Federal, Inc. to WaFd, Inc. effective September 29, 2023[200]. - There have been no material changes in the company's internal control over financial reporting during the reporting period[269]. - The company is involved in legal proceedings that are believed to be immaterial to its financial statements[271]. - Management believes there have been no material changes in the company's quantitative and qualitative information about market risk since September 30, 2024[267]. Other Financial Metrics - The geographic distribution of loans shows Washington at 27.7%, Oregon at 11.7%, and California at 14.4%[241]. - Customer accounts increased by $64,807,000, or 0.3%, to $21,438,777,000 at December 31, 2024[252]. - The net gain on real estate owned (REO) for the three months ended December 31, 2024, was $429,000, down from a net gain of $1,826,000 in the prior year quarter[263]. - The estimated total amount of tax benefits from LIHTC investments for the fiscal year is approximately $19.7 million[265]. - The expected total amount of amortization expense recognized during the fiscal year related to LIHTC investments is about $16.1 million[266].