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WaFd Q2 2025 Earnings Report
WaFd, Inc. reported a significant increase in net income for the three months ended March 31, 2025, primarily driven by the effects of a merger in the prior year and reduced compensation costs.
Key Takeaways
WaFd, Inc. reported net income of $56,252,000 for the three months ended March 31, 2025, a substantial increase from $15,888,000 in the prior year quarter. This improvement was largely attributed to the impact of a merger in the prior year and a reduction in compensation expenses due to restructuring. Net interest income also saw a modest increase, while total assets experienced a decrease.
Net income for the three months ended March 31, 2025, was $56,252,000, a significant increase from $15,888,000 in the prior year quarter.
Net interest income increased by $2,313,000 to $160,910,000 for the three months ended March 31, 2025, compared to the same period last year.
Total non-interest expense decreased by $28,880,000 to $104,832,000, primarily due to merger-related expenses booked in the prior year and reduced compensation costs.
Total assets decreased by $415,693,000 to $27,644,637,000 as of March 31, 2025, compared to September 30, 2024.
WaFd
WaFd
WaFd Revenue by Segment
WaFd Revenue by Geographic Location
Revenue by Segment
Loan Fee Income Revenue
CapyFin.comDeposit Fee Income Revenue
CapyFin.comOther Income Revenue
CapyFin.comGain on Termination of Hedging Derivatives Revenue
CapyFin.comRevenue by Geographic Location
Washington Revenue
CapyFin.comOregon Revenue
CapyFin.comArizona Revenue
CapyFin.comUtah Revenue
CapyFin.comTexas Revenue
CapyFin.comNew Mexico Revenue
CapyFin.comIdaho Revenue
CapyFin.comNevada Revenue
CapyFin.comCalifornia Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
WaFd, Inc. anticipates continued efforts to manage interest rate risk and maintain a strong capital position. The company expects to realize annual expense savings from exiting the single-family mortgage lending market, but acknowledges potential risks related to this strategic shift.
Positive Outlook
- The company's strong equity position allows it to manage balance sheet risk and provide capital support for controlled growth.
- Anticipated annual expense savings of approximately $17 million from exiting the single-family mortgage business.
- The company continues to focus on commercial lending, which is expected to benefit from growing economies in its major markets.
- Management believes the allowance for credit losses is sufficient to absorb estimated losses inherent in the loan portfolio.
- The company's cash and cash equivalents provide flexibility in managing interest rate risk.
Challenges Ahead
- The 'Needs to Improve' CRA rating may restrict expansionary activity, including mergers and acquisitions, and establishment/relocation of bank branches.
- The 'Needs to Improve' CRA rating could lead to a loss of expedited processing for certain activities and negatively affect the company's reputation and business relationships.
- Exiting the single-family mortgage business involves risks such as significant costs and expenses, potential loss of customer relationships, and decreased revenues and earnings.
- The company's effective tax rate varies from the statutory rate due to various factors, which could impact future tax expenses.
- Fluctuating interest rates and the impact of inflation continue to pose risks to the company's business and financial results.