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]

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Net income of $16.9 million and $35.1 million for the three and six months ended June 30, 2025, respectively Earnings per common share of $1.71 and $3.53 for the three and six months ended June 30, 2025, respectively Annualized return on average assets of 1.54% and 1.59% for the three and six months ended June 30, 2025, respectively Quarterly cash dividend of $0.45 per share declared, matching the prior quarter and 12.5% higher than the prior-year second quarterMANITOWOC, Wis., July 18, 2025 /PRNewswire/ - ...

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]

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Federal Reserve Governor Christopher Waller said worries about hiring in the private sector have driven his call for the central bank to cut rates this month https://t.co/12Wo7vgCjS ...

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How should we interpret these comments from uh Waller. Uh you know Fed governor of course we have a meeting coming up in July. Also Waller has been floated as a potential successor to J Pal.How do you view it as someone who's a market participant. We are certainly getting mixed signals u as far as you know where what the Fed is thinking and where the path of interest rates may go from here. Uh we saw a little bit of a tick up this week in CPI.So, but overall inflation has been relatively tame in spite of th ...