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Sep 30, 2023
WaFd Q4 2023 Earnings Report
Annual earnings per share increased even after net interest margin contraction and outsized provision for credit losses.
Key Takeaways
WaFd, Inc. announced record annual earnings, with a notable increase in net income and earnings per share. Despite challenges in the banking industry, the company saw growth in total deposits and a decrease in the percentage of uninsured deposits. The bank experienced its first material net charge-off in a decade, but overall credit quality remained closely monitored.
Record annual earnings achieved despite industry challenges.
Total deposits increased and uninsured deposits decreased.
Net interest margin experienced compression throughout the fiscal year.
Tangible book value per share grew by 10%.
Forward Guidance
Management remains confident in the strategic and economic merits of the proposed merger with Luther Burbank Corporation, despite market turbulence. Regulatory approval is pending.
Positive Outlook
- Merger expected to enhance market presence in California
- Shareholders of both entities have approved the transaction
- Washington State Department of Financial Institutions granted approval
- Strategic and economic benefits anticipated from the merger
- Focus on combining a strong balance sheet with technology to simplify banking
Challenges Ahead
- Merger depends on approval from the FDIC and the Federal Reserve Bank
- Market turbulence poses challenges to the merger's success
- Potential delays or roadblocks in obtaining regulatory approvals
- Integration risks associated with combining two financial institutions
Historical Earnings Impact
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Avg. Return Before/After Earnings
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