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Jun 30, 2024
WaFd Q3 2024 Earnings Report
Announced quarterly earnings with solid results post Luther Burbank Corporation acquisition.
Key Takeaways
WaFd, Inc. reported quarterly earnings of $64,560,000 for the quarter ended June 30, 2024, marking a 306% increase from the previous quarter and a 5% increase from the same quarter last year. The company successfully integrated Luther Burbank into its operations and executed a significant Commercial Real Estate (CRE) loan sale.
Reported quarterly earnings of $64,560,000, a 306% increase from the previous quarter.
Successfully integrated Luther Burbank into operations.
Executed a large Commercial Real Estate (CRE) loan sale with no loss.
Loan delinquencies decreased from 0.36% to 0.22%.
WaFd
WaFd
WaFd Revenue by Segment
Revenue by Segment
Deposit Fee Income Revenue
CapyFin.comOther Income Revenue
CapyFin.com Forward Guidance
WaFd anticipates redeploying liquidity into new loans at higher rates and expects the benefits of loan sales to be accretive to the margin. The company also plans to launch new mobile banking and online account opening apps.
Positive Outlook
- Plan to redeploy liquidity into new loans at higher rates.
- Expect loan sales to be accretive to the margin.
- Launching new mobile banking app with real-time notifications.
- Launching new online account opening app with five-minute account opening.
- Technology improvements will provide a competitive advantage.
Challenges Ahead
- Margin for the quarter was 2.56%, expected to be the lowest for this cycle.
- Acquisition resulted in some dilution in tangible book value per share.
- Non-interest expense increased by $15.4 million.
- Effective tax rate increased due to the LBC acquisition.
- Uncertain economic environment and higher interest rates could impact borrowers.
Revenue & Expenses
Visualization of income flow from segment revenue to net income