WaFd, Inc. Reports Significant Increase in Net Income to $56.3 Million for Quarter Ending March 31, 2025

WaFd, Inc. reported a significant increase in financial performance for the quarter ending March 31, 2025, with net income reaching $56.3 million, compared to $15.9 million in the same period last year. This translates to a diluted earnings per share of $0.65, up from $0.17 a year earlier. The company's net interest income also rose to $160.9 million, a slight increase from $158.6 million in the prior year, driven by a growth in interest-earning assets, despite a decrease in net interest margin from 2.73% to 2.55%.

The company’s total assets decreased to $27.6 billion from $28.1 billion at the end of the previous fiscal year, primarily due to a significant drop in cash and cash equivalents, which fell by 48.3% to $1.2 billion. However, loans receivable remained stable, increasing marginally to $20.9 billion, while available-for-sale securities rose to $3.1 billion, reflecting a strategic focus on investment securities. The company’s customer accounts also showed a slight increase of 0.3%, totaling $21.4 billion.

WaFd's operational developments included the completion of its merger with Luther Burbank Corporation, which was finalized on March 1, 2024. This merger has had a lasting impact on the company's financial results, making year-over-year comparisons challenging. The company recorded approximately $107.9 million in goodwill and $37 million in other intangibles as a result of the merger. Additionally, WaFd has exited the single-family mortgage lending market, a strategic decision aimed at reducing credit risk and improving profitability.

In terms of credit quality, the allowance for credit losses decreased slightly to $202.7 million, reflecting a stable loan portfolio. Non-performing assets decreased to $70.9 million, or 0.26% of total assets, down from 0.28% at the end of the previous fiscal year. The company reported net charge-offs of $5.1 million for the quarter, compared to $146,000 in the same period last year, indicating a more cautious approach to credit risk management.

Looking ahead, WaFd remains focused on maintaining its capital position, with shareholders' equity increasing to $3.0 billion, or 10.97% of total assets. The company is well-capitalized under regulatory standards and plans to continue leveraging its strong equity position to support growth and manage balance sheet risks effectively. The outlook remains cautiously optimistic, with management emphasizing the importance of navigating the current economic environment and interest rate fluctuations.