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]

Financial Data and Key Metrics Changes - The company reported net income available to common shareholders of $1,200,000,000 or $0.90 per share, which included $0.02 of restructuring charges and $0.01 of losses from the sale of certain investment securities [6][18] - Adjusted revenue increased by 2.1% linked quarter, driven by a 2.3% growth in net interest income and a 1.8% growth in non-interest income [19] - Average loans held for investment increased by 2% on a linked quarter basis, with end of period loans increasing by $10,200,000,000 or 3.3% [20] Business Line Data and Key Metrics Changes - In consumer and small business banking, average loan balances increased by 2.8% linked quarter, with significant growth in residential mortgage and indirect auto loans [11] - Wholesale loans saw a 1.5% growth in average loans and a 2.9% increase in end of period loans, driven by new and existing clients [12] - Wealth management experienced a 27% increase in year-to-date assets under management (AUM) from wholesale and premier clients compared to the same period last year [13] Market Data and Key Metrics Changes - The company added nearly 37,000 new consumer and small business accounts, attracting younger clients with higher average balances [10] - Average deposits increased by $8,300,000,000 sequentially, or 2.1%, driven by growth in interest checking and time deposits [21] - The cumulative interest-bearing deposit beta declined from 43% to 37% on a linked quarter basis [22] Company Strategy and Development Direction - The company is focused on executing strategic growth initiatives, maintaining credit and risk discipline, and returning capital to shareholders [33] - Investments are being made in talent, technology, and risk infrastructure to enhance client experience and operational efficiency [34] - The company aims to achieve positive operating leverage in 2025 despite challenges in investment banking and trading [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of both consumer and wholesale client bases, noting good credit quality and liquidity among clients [42] - The company anticipates a recovery in investment banking and trading revenue in the second half of 2025 based on current pipelines and improved market conditions [25] - The outlook for revenue growth remains unchanged, with expectations for a 1.5% to 2.5% increase relative to 2024 adjusted revenue [29] Other Important Information - The company returned $1,400,000,000 of capital to shareholders through dividends and share repurchases during the quarter [9] - The CET1 ratio was reported at 11%, with a strong capital position allowing for balance sheet growth and capital returns [28] - The company plans to target approximately $500,000,000 of share repurchases during the third quarter [10] Q&A Session Summary Question: Overall sentiment among the customer base - Management noted strong consumer business performance and good credit quality, with new clients impressed by the company's purpose-driven focus and product capabilities [40][44] Question: Anticipated pace of share repurchase - The reduction in share repurchase target was described as opportunistic, with a focus on maintaining a balance between capital return and banking franchise growth [46] Question: Deposit competition and costs - Management indicated that deposit competition is rational, with expectations for deposit costs to stabilize and improve in the coming quarters [56][58] Question: Fee revenue growth and trading recovery - Management observed a bounce back in trading and investment banking revenue, with expectations for normalized results in the third quarter [65] Question: Trajectory towards 15% ROTCE - Management highlighted various initiatives to improve profitability, including capital-efficient revenue generation and margin improvements [72][74] Question: Restructuring charges and investments - Most restructuring charges were related to severance, not merger-related, and the company continues to invest in technology and talent while maintaining expense discipline [85][88]

Financial Data and Key Metrics Changes - The company reported earnings per share of $1.42, representing an almost 14% increase over the prior quarter [7] - Net interest income remained stable at $575 million for the third consecutive quarter, with a modest two basis point reduction in net interest margin [14] - Capitalization strength was highlighted with an estimated CET1 of 11.94%, well above the 10% strategic target [6][18] Business Line Data and Key Metrics Changes - Average loans increased almost 1% and period-end loans rose approximately 3%, driven by new loan production for new and existing customers [9] - Non-interest income increased by $20 million, with growth across most customer line items due to higher loan volumes and seasonal benefits [15] - Expenses decreased by $23 million over the prior quarter, largely due to lower litigation-related expenses and salaries [16] Market Data and Key Metrics Changes - Average deposits declined just over 1%, with the largest decreases in retail, corporate banking, and technology and life sciences [11] - Non-interest bearing deposits as a percentage of total deposits remained flat at 38% for the fourth consecutive quarter, indicating stability in the funding mix [12] - The company expects full-year average deposits to decline by 2% to 3% in 2025, with a moderate increase in the third quarter balances anticipated [19] Company Strategy and Development Direction - The company is focused on strategic investments in small business, middle market, business banking, and payments to drive responsible growth [26] - The management emphasized the importance of maintaining a conservative approach to capital while supporting customer needs and driving growth [24] - The company plans to continue share repurchases and monitor the economic environment and regulatory landscape for future capital decisions [23] Management's Comments on Operating Environment and Future Outlook - Management noted that while economic and geopolitical uncertainty persists, customers appear more confident in navigating the environment and making investments [6] - The outlook for 2025 includes projected net interest income growth of 5% to 7%, with loan trends outperforming expectations [20] - Management acknowledged the challenges in deposit pricing and anticipated upward pressure as they fund robust loan growth [21] Other Important Information - The company redeemed preferred stock, which, while beneficial for EPS, created a slight drag on net interest income due to the cash used for redemption [18] - The management expressed commitment to driving efficiency while balancing long-term growth and return objectives [22] Q&A Session Summary Question: Can you provide more color on the NII trajectory? - Management expects a slight decrease in NII in Q3 before an upward trajectory in Q4, driven by strong loan growth and deposit increases [30][31] Question: What are the expectations for expenses in Q3 and Q4? - Management indicated that expenses are expected to step up due to deferred project expenses and seasonal factors, with notable items not repeating [41][42] Question: Can you quantify the improvement in pipelines and activity? - Management noted an improvement in loan growth and positive momentum in pipelines, although quantifying it remains challenging [47][48] Question: What conditions would indicate that Comerica has not earned the right to remain independent? - Management emphasized the need to perform at an acceptable level and acknowledged the importance of protecting the company and serving clients [80][82] Question: How does the company view potential mergers and acquisitions? - Management stated that the $100 billion asset threshold is not a governor for pursuing transactions, focusing instead on organic growth opportunities [68][69] Question: What are the expectations for deposit pricing and repricing opportunities? - Management acknowledged the competitive environment for deposits and indicated that they are closely monitoring pricing strategies [100][101] Question: Can you provide more color on the increase in criticized loans? - Management described the increase as moderate, concentrated in three credits with consumer components under pressure from higher rates [103][105]

Financial Data and Key Metrics Changes - The company reported net income of $19,800,000 for Q2 2025, an increase from $17,000,000 in the same quarter last year, translating to $1.72 per share compared to $1.45 per share previously [5][12] - Net interest income rose to $51,000,000, an 8.9% increase from $46,800,000 a year ago, with an annualized net interest margin improving to 3.68%, up 25 basis points from the previous year [7][12] - Non-interest income decreased to $8,200,000, down 16.5% from the prior year, primarily due to unusual items affecting both periods [14][15] Business Line Data and Key Metrics Changes - Gross loans totaled $4,600,000,000, a decline of 3.3% from the previous year, with significant payoffs impacting the loan portfolio [7][8] - The largest loan categories remained multifamily and commercial real estate lending, with outstanding construction loans at $367,000,000 [8] - Non-performing assets were $8,100,000, representing 0.14% of total assets, with no provision for credit losses recorded [9][20] Market Data and Key Metrics Changes - Total deposits decreased by $73,900,000 or 1.6% from the previous quarter, but increased by $78,600,000 or 1.7% compared to the end of 2024 [8][19] - The company experienced a reduction in brokered deposits, which contributed to the overall decrease in total deposits [8][19] Company Strategy and Development Direction - The company emphasized maintaining strong credit quality while pursuing relationship-driven loan growth to support long-term stability [11][21] - There is a focus on prudent risk management and disciplined expense management to enhance financial resilience [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for long-term growth but acknowledged a competitive lending environment with limited opportunities [26] - The company plans to continue managing expenses carefully, with some potential increases in technology-related costs anticipated [31][32] Other Important Information - The company redeemed $75,000,000 in subordinated notes to save on future interest costs [21] - A new stock repurchase authorization for an additional 1,000,000 shares was approved, with nearly 176,000 shares repurchased in Q2 2025 [22] Q&A Session Summary Question: Loan growth outlook for the second half of the year - Management is optimistic long-term but noted a competitive environment with limited origination opportunities in the near term [26][27] Question: Expected loan payoffs - Payoffs are unpredictable, and while there was a significant payoff in Q2, future payoffs are difficult to forecast [28][29] Question: Expense control for the second half of the year - Management expects expenses to remain consistent, with some minor increases due to technology investments and potential adjustments in compensation costs [30][31] Question: Rental income expectations - Rental income increased due to a larger OREO balance, and similar levels are expected unless leases expire [39][42] Question: Margin sustainability - Management indicated that while there may be slight improvements in margin, the termination of the interest rate swap in Q4 will present challenges [43][46]

Financial Performance & Guidance - Bank of America maintained its net interest income (NII) guidance despite better-than-expected loan growth and fewer expected rate cuts [1] - Bank of America's net interest income (NII) reached $148 billion in the current quarter [3] - Bank of America projects net interest income (NII) to be between $155 billion and $157 billion by the fourth quarter [3] - Bank of America anticipates a 6-7% increase in net interest income (NII) this year compared to last year, with momentum carrying into 2026 [5] Growth Drivers - Bank of America experienced 7% loan growth and 4% deposit growth over the last 12 months [4] - Bank of America emphasizes disciplined deposit and loan pricing as contributing factors to net interest income (NII) growth [4] Macroeconomic Perspective - An independent Federal Reserve (Fed) is crucial for the stability of the global economy, particularly for a large economy like the United States with over $30 trillion in debt [8][9] - A stable central bank is very important because of the size of the US economy [8]

Core Viewpoint - Capital One (COF) is expected to report second-quarter 2025 results on July 22, with anticipated year-over-year increases in earnings and revenues [1] Financial Performance - In the last reported quarter, COF's earnings exceeded the Zacks Consensus Estimate, driven by higher net interest income (NII) and non-interest income, while provisions declined [2] - The consensus estimate for COF's second-quarter earnings is $3.82, reflecting a 21.7% increase from the prior-year quarter, with total revenues expected to rise by 28.6% to $12.22 billion [14] Key Factors and Estimates - NII is projected to grow by 19.4% year-over-year to $9.01 billion, supported by a favorable lending environment and stable interest rates [4] - The total average earning assets are estimated at $479.9 billion, indicating a 6.4% rise from the previous year [3] - Interchange fees, constituting over 60% of fee income, are expected to increase by 18.8% year-over-year to $1.48 billion [5] - Total non-interest income is estimated at $2.31 billion, suggesting a 17.8% rise from the prior year [7] Expenses and Asset Quality - Total non-interest expenses are projected to reach $7.54 billion, reflecting a significant year-over-year increase of 52.5% due to rising marketing costs and technology investments [7] - The provision for credit losses is estimated at $2.67 billion, indicating a 31.6% decrease from the previous year [8] Strategic Developments - In May, Capital One completed the acquisition of Discover Financial Services for $35 billion, enhancing its position in the credit card industry [10] - The merger is expected to generate expense synergies of $1.5 billion by 2027 and adjusted non-GAAP EPS accretion of over 15% by 2027 [12]

Core Insights - Bank of America (BAC) reported second-quarter 2025 earnings of 89 cents per share, exceeding the Zacks Consensus Estimate of 86 cents and up from 83 cents in the prior-year quarter [1][10] - The stock gained 1.3% in early trading following the earnings announcement [1] Financial Performance - Sales and trading revenues, excluding net DVA, increased by 14.9% year over year to $5.38 billion, marking the 13th consecutive quarter of improvement in trading numbers [2] - Fixed-income trading fees rose by 18.6%, while equity trading income increased by 9.6% [2] - Net interest income (NII) grew by 6.9% year over year to $14.82 billion, driven by fixed-rate asset repricing and loan growth, despite lower interest rates impacting growth [3][6] Investment Banking Performance - Investment banking (IB) fees in the Global Banking division declined by 8.1% year over year to $767 million, with equity and debt underwriting income down by 13.3% and 4.7%, respectively [4] - Advisory revenues also fell by 9.6% [4] Revenue and Expense Overview - Total net revenues were $26.46 billion, slightly missing the Zacks Consensus Estimate of $26.59 billion but up 4.3% from the prior-year quarter [6] - Non-interest income increased by 1% year over year to $11.79 billion, supported by higher fees and commissions [7] - Non-interest expenses rose by 5.4% year over year to $17.18 billion, attributed to increases in nearly all cost components except professional fees [7] Credit Quality - Provision for credit losses was $1.59 billion, up 5.6% from the prior-year quarter [9] - Net charge-offs slightly declined year over year to $1.53 billion, with non-performing loans and leases remaining unchanged at 0.52% of total loans [9] Capital Position - Book value per share increased to $37.13 from $34.39 a year ago, while tangible book value per share rose to $27.71 from $25.37 [11] - The common equity tier 1 capital ratio was 13% as of June 30, 2025, down from 13.5% a year earlier [11] Share Repurchase - The company repurchased shares worth $5.3 billion during the reported quarter [12] Strategic Outlook - Bank of America's focus on digitization, operational expansion, and decent loan growth is expected to support future growth, although elevated expenses and a challenging operating environment present significant headwinds [13]

I got to start off with the chip trade and the tech trade in general after ASML's warning. How are you viewing that warning and the impact on stocks in the pre-market. I mean we have seen a market that for you know years and years now has been dominated by the mag seven earnings and the AI story and big tech.Now some of big tech in a sense when you look at an Amazon a meta etc. although they are also big tech and the forwardlooking AI trade. So sort of the engine of growth for the future. In a sense, they'r ...

And Bank of America is out with earnings and Leslie Picker gratefully uh joins us now uh with the numbers. It's good to see you too, Joe. Uh those shares down a little bit. Bank of America beating on the top line but missing or sorry, beating on the bottom line, missing on the top line in Q2. The firm also slightly missed estimates on net interest income in Q2. You can see shares up about half a percent. They were down when those numbers first crossed. But the uh BFA reaffirming fullear guidance for the loa ...

PNC beat expectations for second-quarter net interest income, helped by an increase in loan growth https://t.co/8nOSopbheP ...