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Dec 31, 2023
WaFd Q1 2024 Earnings Report
Reported quarterly earnings of $0.85 per share, reflecting a decrease compared to the previous year but an increase from the prior quarter.
Key Takeaways
WaFd, Inc. reported quarterly earnings of $58.453 million, which translates to $0.85 per diluted share. While this represents a decrease compared to the same quarter last year, it is an increase compared to the previous quarter. The net interest margin decreased to 2.91%, and the company saw net recoveries for the quarter with strong credit metrics.
Net earnings for the quarter were $58,453,000, up 16% from the previous quarter but down 26% year-over-year.
Diluted earnings per common share were $0.85, an increase of $0.13 from the previous quarter but a decrease of $0.31 from the prior year.
Net interest margin decreased to 2.91% compared to 3.69% in the same quarter last year.
Delinquencies were 0.33%, and non-performing loans to total loans ratio was 0.26%.
WaFd
WaFd
Forward Guidance
WaFd anticipates the approval of the Luther Burbank Corporation acquisition and expects that potential Federal Reserve interest rate decreases will improve the Bank's profitability.
Positive Outlook
- Anticipated approval of the Luther Burbank Corporation acquisition.
- Potential decrease in Federal Reserve interest rates.
- Expected improvement in profitability due to interest rate changes.
- Decline in long-term interest rates narrows the refinance gap for borrowers.
- Strategic investments position the Bank to adopt new technologies.
Challenges Ahead
- Net interest margin dipped below 3% to 2.91%.
- Competition for deposits remains intense.
- Uncertainty regarding the potential downturn of the commercial real estate market.
- Inverted yield curve impacting interest margins.
- Increased expenses leading to a higher efficiency ratio.