WaFd Announces Fourth Quarter and Fiscal 2025 Results

SEATTLE--( BUSINESS WIRE)--WaFd, Inc. (Nasdaq: WAFD):

Fiscal Year Highlights

$226 Million

$2.63

0.84%

9.20%

Net Income

Diluted Earnings per Common Share

Return on Average Assets

Return on Tangible Common Equity (1)

Fourth Quarter Highlights

$61 Million

$0.72

0.91%

9.99%

Net Income

Diluted Earnings per Common Share

Return on Average Assets

Return on Tangible Common Equity (1)

"We finished Fiscal 2025 trending in the right direction with an improving margin, a significant increase in loan originations and an improving deposit mix. The margin increased to 2.71% from 2.69% in the 3rd quarter and 2.62% in the same quarter one year ago, driven by decreasing cost of deposits and borrowings. Importantly, we experienced a 103% increase in new loan originations over the 3rd quarter, signaling that our clients are now starting to come off of the sidelines. Our loan pipeline has now been building in each of the last three quarters, a promising sign for growth over the next year. It would be hard to overstate the magnitude of the shift in our business model undertaken in 2025, moving from mortgage lending to providing solutions for businesses. While this is a long-term shift we are very pleased with the early results, specifically the changing mix of our deposits with checking accounts going from 33% of deposits up to 35% of deposits over the year. We are convinced that focusing on businesses will increase the relevancy of our branches and improve long-term shareholder returns."

Net Interest Income and NIM

Credit Quality

Non-Interest Income and Expense

Shareholder Returns and Stock Activity

(1)

Metric is a non-GAAP Financial Measure. See page 11 for additional information on our use of non-GAAP Financial Measures.

The following table provides the Company's financial scorecard for the last five quarters:

As of

(In thousands, except share and ratio data)

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

September 30, 2024

BALANCE SHEET

Cash

657,310

809,252

1,231,461

1,507,735

2,381,102

Loans receivable, net

20,088,618

20,277,164

20,920,001

21,060,501

20,916,354

Allowance for credit losses ("ACL")

221,220

219,268

222,709

225,022

225,253

Available-for-sale securities, at fair value

3,533,201

3,387,497

3,142,763

2,743,731

2,572,709

Held-to-maturity securities, at amortized cost

645,802

512,854

526,502

537,348

436,972

Total investments

4,179,003

3,900,351

3,669,265

3,281,079

3,009,681

Total assets

26,699,699

26,731,915

27,644,637

27,684,454

28,060,330

Transaction deposits

12,306,532

11,969,124

11,853,984

11,853,859

11,817,185

Time deposits

9,131,104

9,417,447

9,573,442

9,584,918

9,556,785

Total deposits

21,437,636

21,386,571

21,427,426

21,438,777

21,373,970

Borrowings, senior debt and junior subordinated debentures

1,817,249

1,991,087

2,814,938

2,914,627

3,318,307

Total shareholders' equity

3,039,575

3,014,325

3,032,620

3,021,636

3,000,300

Loans to customer deposits 2

93.71

94.81

97.63

98.24

97.86

PROFITABILITY

Net income

60,597

61,952

56,252

47,267

61,140

Net income to common shareholders

56,941

58,296

52,596

43,611

57,484

Earnings per common share

0.73

0.65

0.54

0.71

Return on tangible common equity 1

9.99

10.20

9.18

7.69

10.24

Return on tangible assets 1

0.93

0.94

0.84

0.70

0.89

Net interest margin

2.71

2.69

2.55

2.39

2.62

Efficiency ratio

56.82

56.01

58.31

65.04

57.21

FINANCIAL HIGHLIGHTS

Common shareholders' equity per share

35.04

34.30

33.84

33.45

33.25

Tangible common shareholders' equity per share 1

29.38

28.69

28.31

27.93

27.73

Shareholders' equity to total assets

11.38

11.28

10.97

10.91

10.69

Tangible shareholders' equity to tangible assets 1

9.89

9.78

9.51

9.45

9.24

Common shares outstanding

78,186,520

79,130,276

80,758,674

81,373,760

81,220,269

Preferred shares outstanding

300,000

CREDIT QUALITY 2

ACL to gross loans

1.04

1.03

1.01

1.00

1.01

Non-accrual loans to net loans

0.64

0.41

0.29

0.34

0.33

Delinquencies to net loans

0.60

0.26

0.27

0.30

0.25

Non-performing assets to total assets

0.54

0.36

0.26

0.29

0.28

Total criticized loans to net loans

4.39

4.07

3.32

2.54

2.41

Total adversely classified loans to net loans

3.16

3.54

2.53

1.97

2.04

Metric is a non-GAAP Financial Measure. See page 11 for additional information on our use of non-GAAP Financial Measures.

Metrics include only loans held for investment. Loans held for sale are not included.

WaFd, Inc. (Nasdaq: WAFD) (the "Company"), parent company of WaFd Bank (the "Bank"), today announced quarterly earnings of $60,597,000, a decrease of 2% compared to the quarter ended June 30, 2025. After the effect of dividends on preferred stock, net income available for common shareholders was $0.72 per diluted share for the quarter ended September 30, 2025 compared to $0.73 the prior quarter.

Annual earnings were $226,068,000 for fiscal year ended September 30, 2025, an increase of 13% from net earnings of $200,041,000 for the year ended September 30, 2024. After the effect of dividends on preferred stock, net income available for common shareholders was $2.63 per diluted share for the year ended September 30, 2025, compared to $2.50 per diluted share for the year ended September 30, 2024, a $0.13 or 5.20% increase in fully diluted earnings per common share. Fiscal year 2024 results include the effects of the acquisition of Luther Burbank Corporation.

Balance Sheet Total assets decreased to $26.7 billion as of September 30, 2025, compared to $28.1 billion at September 30, 2024, primarily due to a reduction in loans receivable and cash used to reduce borrowings and purchase investments during the year. Net loans decreased $0.8 billion to $20.1 billion and cash decreased $1.7 billion, or 72.4%. Investment securities increased by $1.2 billion, or 38.9% in the year ended September 30, 2025.

Customer deposits totaled $21.4 billion as of September 30, 2025, largely unchanged from September 30, 2024. Transaction accounts increased by $0.5 billion or 4.1% during the period, while time deposits decreased $0.4 billion or 4.5%. As of September 30, 2025, 57.4% of the Company’s deposits were transaction accounts, a slight increase from 55.3% at September 30, 2024. Core deposits, defined as all transaction accounts and time deposits less than $250,000, totaled 77.9% of deposits at September 30, 2025, up from 75.1% on September 30, 2024. Deposits that are uninsured or not collateralized were 24.7% of total deposits as of September 30, 2025, a small increase from 23.8% as of September 30, 2024.

Borrowings totaled $1.8 billion as of September 30, 2025, down from $3.3 billion at September 30, 2024. The effective weighted average interest rate of borrowings was 2.5% as of September 30, 2025, compared to 3.9% at September 30, 2024.

Loan originations totaled $4.0 billion for fiscal year 2025, compared to $3.6 billion of originations in fiscal year 2024. Offsetting loan originations in each year were loan repayments of $5.1 billion and $4.3 billion, respectively. Commercial loans represented 83% of all loan originations during fiscal 2025 and consumer loans accounted for the remaining 17%. The period end interest yield on the loan portfolio was 5.38% as of September 30, 2025, a decrease from 5.62% as of September 30, 2024.

Tangible common equity per share is a key metric for our management team. For the year ended September 30, 2025, tangible book value per share grew from $27.73 as of September 30, 2024 to $29.38 at September 30, 2025. This metric is a non-GAAP Financial Measure. See page 11 for additional information on our use of non-GAAP Financial Measures. During the year, the Company repurchased 3,447,771 shares of common stock at a weighted average price of $29.56. Our share repurchase plan currently has an authorization of 8,162,654 shares, which provides what we believe is a compelling investment alternative.

Credit Quality Credit quality continues to be closely monitored with the shifting economic and monetary environment. As of September 30, 2025, non-performing assets increased to $143 million, or 0.54% of total assets, from $97 million, or 0.36%, at June 30, 2025 and from $77 million, or 0.28%, at September 30, 2024. The change is due to non-accrual loans increasing by $46 million, or 47.20%, since June 30 2025 and by $59 million, or 84.97%, since September 30, 2024. REO also increased during the year as a result of the Company's continued branch optimization plan. Delinquent loans were 0.60% of total loans at September 30, 2025, compared to 0.26% at June 30, 2025 and 0.25% at September 30, 2024. The Q4 increase in non-performing assets is the result of one commercial real estate loan over 90 days past due. Although appropriately non-accrual based on policy, it was determined no charge-off was needed for this credit. Management is actively collaborating with the borrower and recent developments indicate positive momentum.

The allowance for credit losses (including the reserve for unfunded commitments) totaled $221 million as of September 30, 2025, and was 1.04% of gross loans outstanding, as compared to 1.03% or 1.01% of gross loans outstanding as of June 30, 2025 and September 30, 2024, respectively. Net charge-offs were $1.0 million for the quarter ended September 30, 2025 compared to $5.4 million the prior quarter. Net charge-offs were $11.8 million for fiscal year 2025, compared to $1.4 million for fiscal 2024.

Profitability Net interest income was $169.9 million for the fourth fiscal quarter of 2025, an increase of $1.9 million or 1.1% from the prior quarter. The increase was the net effect of the reduction in interest paid on liabilities outpacing the reduction in interest earned on assets by 3 basis points. Net interest margin was 2.71% in the fourth fiscal quarter 2025 compared to 2.69% for the quarter ended June 30, 2025.

Total non-interest income was flat at $18.4 million for the fourth fiscal quarter of 2025 compared to $18.3 million the prior quarter.

Total non-interest expense was $107.0 million for the fourth fiscal quarter of 2025, an increase of $2.7 million, or 2.6%, from the prior quarter resulting from strategic investments in our people and technologies. This drove increases in Compensation and Information Technology expenses which resulted in a small increase in the Company’s efficiency ratio in the fourth fiscal quarter of 2025 to 56.82%, compared to 56.01% in the prior quarter.

The Company recorded a $3.0 million provision for credit losses for the quarter ended September 30, 2025 compared to a provision of $2.0 million the prior quarter. The provision for loan losses for the fourth fiscal quarter of 2025 was the net result of mixed credit metrics, including the increasing trends in negative migration of delinquent and nonperforming loans during the quarter.

Return on common shareholders' equity for the quarter ended September 30, 2025 was 8.36% compared to 8.54% for the quarter ended June 30, 2025. Return on assets for the quarter ended September 30, 2025 was 0.91% compared to 0.92% for the previous quarter.

Income tax expense totaled $17.0 million for the fourth fiscal quarter of 2025, as compared to $17.8 million for the prior quarter. The effective tax rate for the quarter ended September 30, 2025 was 21.93% compared to 22.33% for the quarter ended June 30, 2025. The Company’s effective tax rate may vary from the statutory rate mainly due to state taxes, tax-exempt income and tax-credit investments.

WaFd Bank is headquartered in Seattle, Washington, and has 208 branches in nine western states. To find out more about WaFd Bank, please visit our website www.wafdbank.com. The Company will host a conference call for investors and analysts at 7:00am PDT on Friday October 17, 2025. Participants may register for the call from a link on the Company's investor relations site ( https://www.wafdbank.com/about-us/investor-relations) or through a direct link ( https://register-conf.media-server.com/register/BIce57cc298b024b9b9446805d5613f404). The Company uses its website to distribute financial and other material information about the Company.

WAFD, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(UNAUDITED)

September 30, 2025

September 30, 2024

(In thousands, except share and ratio data)

ASSETS

Cash and cash equivalents

657,310

2,381,102

Available-for-sale securities, at fair value

3,533,201

2,572,709

Held-to-maturity securities, at amortized cost

645,802

436,972

Loans receivable, net of allowance for loan losses of $199,720 and $203,753

20,088,618

20,916,354

Interest receivable

98,589

102,827

Premises and equipment, net

261,271

247,901

Real estate owned

11,084

4,567

FHLB stock

88,068

95,617

Bank owned life insurance

275,159

267,633

Intangible assets, including goodwill of $414,722 and $411,360

442,093

448,425

Federal and state income tax assets, net

112,784

119,248

Other assets

485,720

466,975

26,699,699

28,060,330

LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities

Transaction deposits

12,306,532

11,817,185

Time deposits

9,131,104

9,556,785

Total customer deposits

21,437,636

21,373,970

Borrowings

1,765,604

3,267,589

Junior subordinated debentures

51,645

50,718

Advance payments by borrowers for taxes and insurance

59,845

61,330

Accrued expenses and other liabilities

345,394

306,423

23,660,124

25,060,030

Shareholders’ equity

Preferred stock, $1.00 par value, 5,000,000 shares authorized; 300,000 and 300,000 shares issued; 300,000 and 300,000 shares outstanding

300,000

Common stock, $1.00 par value, 300,000,000 shares authorized; 154,408,001 and 154,007,429 shares issued; 78,186,520 and 81,220,269 shares outstanding

154,408

154,007

Additional paid-in capital

2,163,276

2,150,675

Accumulated other comprehensive income (loss), net of taxes

56,950

55,851

Treasury stock, at cost; 76,221,481 and 72,787,160 shares

(1,740,761

)

(1,639,131

)

Retained earnings

2,105,702

1,978,898

3,039,575

3,000,300

26,699,699

28,060,330

Yield and margin as of period end

Loans receivable 1

5.38

5.62

Mortgage-backed securities

4.44

4.00

Combined cash, investments and FHLB stock

4.96

5.10

Interest-earning assets

5.23

5.44

Interest-bearing customer accounts

2.95

3.50

Borrowings 1

2.50

3.93

Interest-bearing liabilities

2.91

3.56

Net interest spread

2.32

1.88

Net interest margin

2.82

2.44

1Accretion and amortization assumed to be same as prior quarter. Also includes the impact of derivatives.

WAFD, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three Months Ended September 30, 2025

Twelve Months Ended September 30, 2025

2025

2024

2025

2024

(In thousands, except share and ratio data)

INTEREST INCOME

Loans receivable

271,787

308,598

1,119,937

1,165,849

Mortgage-backed securities

32,953

18,088

103,071

59,782

Investment securities and cash equivalents

21,794

47,411

116,441

146,079

326,534

374,097

1,339,449

1,371,710

INTEREST EXPENSE

Customer accounts

143,874

165,240

604,707

532,434

Borrowings, senior debt and junior subordinated debentures

12,754

36,045

80,507

178,444

156,628

201,285

685,214

710,878

Net interest income

169,906

172,812

654,235

660,832

Provision (release) for credit losses

3,000

—

7,750

17,500

Net interest income after provision (release)

166,906

172,812

646,485

643,332

NON-INTEREST INCOME

Gain on sale of investment securities

—

342

Gain on termination of hedging derivatives

158

241

Loan fee income

2,081

757

6,888

2,745

Deposit fee income

7,959

7,047

29,650

27,507

Other income

8,319

7,911

34,531

29,857

Total non-interest income

18,391

15,878

71,247

60,692

NON-INTEREST EXPENSE

Compensation and benefits

56,028

53,983

222,146

234,148

Occupancy

10,895

10,843

44,937

42,036

FDIC insurance premiums

4,400

6,800

20,200

28,870

Product delivery

6,558

6,306

25,871

23,986

Information technology

16,406

14,129

60,101

53,306

Other expense

12,706

15,880

54,208

65,926

Total non-interest expense

106,993

107,941

427,463

448,272

Gain (loss) on real estate owned, net

(681

)

(83

)

(627

)

304

Income before income taxes

77,623

80,666

289,642

256,056

Income tax provision

17,026

19,526

63,574

56,015

Net income

60,597

61,140

226,068

200,041

Dividends on preferred stock

3,656

14,625

Net income available to common shareholders

56,941

57,484

211,443

185,416

PER SHARE DATA

Basic earnings per common share

0.73

0.71

2.64

2.50

Diluted earnings per common share

0.72

0.71

2.63

2.50

Cash dividends per common share

0.27

0.26

1.07

1.03

Basic weighted average shares outstanding

78,509,472

81,208,683

80,184,395

74,244,323

Diluted weighted average shares outstanding

78,573,457

81,353,644

80,255,189

74,290,568

PERFORMANCE RATIOS

Return on average assets

0.91

0.87

0.84

0.76

Return on average common equity

8.36

8.53

7.75

7.55

WAFD, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three Months Ended

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

September 30, 2024

(In thousands, except share and ratio data)

INTEREST INCOME

Loans receivable

271,787

279,476

282,077

286,597

308,598

Mortgage-backed securities

32,953

27,855

23,926

18,337

18,088

Investment securities and cash equivalents

21,794

24,383

30,081

40,183

47,411

326,534

331,714

336,084

345,117

374,097

INTEREST EXPENSE

Customer accounts

143,874

146,735

151,948

162,150

165,240

Borrowings, senior debt and junior subordinated debentures

12,754

16,991

23,226

27,536

36,045

156,628

163,726

175,174

189,686

201,285

Net interest income

169,906

167,988

160,910

155,431

172,812

Provision for credit losses

3,000

2,000

2,750

—

Net interest income after provision

166,906

165,988

158,160

155,431

172,812

NON-INTEREST INCOME

Gain on sale of investment securities

—

Gain on termination of hedging derivatives

Loan fee income

2,081

1,650

1,812

1,345

757

Deposit fee income

7,959

7,588

7,057

7,046

7,047

Other income

8,319

8,979

9,947

7,286

7,911

Total non-interest income

18,391

18,273

18,881

15,702

15,878

NON-INTEREST EXPENSE

Compensation and benefits

56,028

53,481

52,710

59,927

53,983

Occupancy

10,895

11,755

11,499

10,788

10,843

FDIC insurance premiums

4,400

5,150

5,800

4,850

6,800

Product delivery

6,558

6,621

6,907

5,785

6,306

Information technology

16,406

15,022

14,481

14,192

14,129

Other expense

12,706

12,298

13,435

15,769

15,880

Total non-interest expense

106,993

104,327

104,832

111,311

107,941

Gain (loss) on real estate owned, net

(681

)

(176

)

(199

)

429

(83

)

Income before income taxes

77,623

79,758

72,010

60,251

80,666

Income tax provision

17,026

17,806

15,758

12,984

19,526

Net income

60,597

61,952

56,252

47,267

61,140

Dividends on preferred stock

3,656

Net income available to common shareholders

56,941

58,296

52,596

43,611

57,484

WAFD, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three Months Ended

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

September 30, 2024

(In thousands, except share and ratio data)

PER SHARE DATA

Basic earnings per common share

0.73

0.65

0.54

0.71

Diluted earnings per common share

0.72

0.73

0.65

0.54

0.71

Cash dividends per common share

0.27

0.26

Basic weighted average shares outstanding

78,509,472

79,888,520

81,061,206

81,294,227

81,208,683

Diluted weighted average shares outstanding

78,573,457

79,907,672

81,105,536

81,401,599

81,353,644

PERFORMANCE RATIOS

Return on average assets

0.91

0.92

0.82

0.69

0.87

Return on average common equity

8.36

8.54

7.68

6.42

8.53

Net interest margin

2.71

2.69

2.55

2.39

2.62

Efficiency ratio

56.82

56.01

58.31

65.04

57.21

Non-GAAP Financial Measures

The Company has presented certain non-GAAP measures within this document to remove the effect of certain income and expenses to provide investors with information useful in understanding our financial performance. The Company considers these items to be non-operating in nature as they are items that management does not consider indicative of the Company's on-going financial performance. We believe that the tables presented reflect our on-going performance in the periods presented and, accordingly, are useful to consider in addition to our GAAP financial results. These measures should not be considered a substitution for GAAP basis disclosures.

Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way they are calculated herein. Because of this, our non-GAAP financial measures may not be comparable to similar measures used by others. We caution investors not to place undue reliance on such measures. See the following unaudited tables for reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures.

Tangible Measures

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

September 30, 2024

(Unaudited - In thousands, except for share and ratio data)

Shareholders' equity - GAAP

3,039,575

3,014,325

3,032,620

3,021,636

3,000,300

Less intangible assets - GAAP

442,093

444,291

446,660

449,213

448,425

Tangible shareholders' equity

2,597,482

2,570,034

2,585,960

2,572,423

2,551,875

Less preferred stock - GAAP

300,000

Tangible common shareholders' equity

2,297,482

2,270,034

2,285,960

2,272,423

2,251,875

Total assets - GAAP

26,699,699

26,731,915

27,644,637

27,684,454

28,060,330

Less intangible assets - GAAP

442,093

444,291

446,660

449,213

448,425

Tangible assets

26,257,606

26,287,624

27,197,977

27,235,241

27,611,905

Tangible Metrics

Common shares outstanding - GAAP

78,186,520

79,130,276

80,758,674

81,373,760

81,220,269

Tangible common equity per share

29.38

28.69

28.31

27.93

27.73

Tangible equity to tangible assets

9.89

9.78

9.51

9.45

9.24

WAFD, INC. AND SUBSIDIARIES

NON-GAAP MEASURES

(UNAUDITED)

Three Months Ended

Average Tangible Measures

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

September 30, 2024

(Unaudited - In thousands, except for ratio data)

Average shareholders' equity - GAAP

3,023,098

3,030,745

3,039,021

3,015,197

2,996,093

Less average preferred stock

- GAAP

300,000

Less average intangible assets - GAAP

443,382

445,733

448,272

447,754

451,204

Average tangible common equity

2,279,716

2,285,012

2,290,749

2,267,443

2,244,889

Average Assets - GAAP

26,540,782

26,813,500

27,371,320

27,504,576

28,000,482

Less average intangible assets - GAAP

443,382

445,733

448,272

447,754

451,204

Average tangible assets

26,097,400

26,367,767

26,923,048

27,056,822

27,549,278

Average Tangible Metrics

Net income - GAAP

60,597

61,952

56,252

47,267

61,140

Net income available to common shareholders - GAAP

56,941

58,296

52,596

43,611

57,484

Return on tangible common equity

9.99

10.20

9.18

7.69

10.24

Return on tangible assets

0.93

0.94

0.84

0.70

0.89

WAFD, INC. AND SUBSIDIARIES

NON-GAAP MEASURES

(UNAUDITED)

Three Months Ended

Net Income Adjusted for Acquisition Expenses and Other Non-Operating Items

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

September 30, 2024

(Unaudited - In thousands, except for share and ratio data)

Interest income

LBC Hedge Valuation Adj

—

3,933

—

Non-interest income

Distribution received on LBC equity method investment

(251

)

(255

)

(257

)

(279

)

(288

)

(Gain)Loss on WaFd Bank equity method investment

(815

)

304

(155

)

(896

)

Total non-interest income

(1,066

)

(412

)

(231

)

(1,184

)

Non-interest expense

Acquisition-related expenses

—

239

(1,602

)

Non-operating expenses:

Restructuring Charges

—

5,390

—

FDIC Special Assessment

—

(216

)

Legal and Compliance

—

(182

)

—

5,390

(398

)

Total non-interest expense

—

5,629

(2,000

)

Net Income - GAAP

60,597

61,952

56,252

47,267

61,140

Interest income adjustments

—

3,933

—

Non-interest income adjustments

(1,066

)

(412

)

(231

)

(1,184

)

Non-interest expense adjustments

—

5,629

(2,000

)

REO adjustments

681

176

199

(429

)

Income tax adjustment

(50

)

(1,918

)

751

Net Income - non-GAAP

60,296

62,127

56,086

54,251

58,790

Dividend on preferred stock

3,656

Net Income available to common shareholders - non-GAAP

56,640

58,471

52,430

50,595

55,134

Basic weighted average number

78,509,472

79,888,520

81,061,206

81,294,227

81,208,683

Diluted weighted average

78,573,457

79,907,672

81,105,536

81,401,599

81,353,644

Basic EPS - non-GAAP

0.72

0.73

0.65

0.62

0.68

Diluted EPS - non-GAAP

0.72

0.73

0.65

0.62

0.68

WAFD, INC. AND SUBSIDIARIES

NON-GAAP MEASURES

(UNAUDITED)

Three Months Ended

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

September 30, 2024

(Unaudited - In thousands, except for ratio data)

Efficiency ratio - GAAP

56.8

56.0

58.3

65.0

57.2

Net interest income - GAAP

169,906

167,988

160,910

155,431

172,812

Total interest income adjustments

—

3,933

—

Net interest income - non-GAAP

169,906

167,988

160,910

159,364

172,812

Non-interest expense - GAAP

106,993

104,327

104,832

111,311

107,941

Less merger related expenses

—

239

(1,602

)

Less non-operating expenses

—

5,390

(398

)

Non-interest Expenses -

non-GAAP

106,993

104,327

104,832

105,682

109,941

Non-interest income - GAAP

18,391

18,273

18,881

15,702

15,878

Total other income

(1,066

)

(412

)

(231

)

(1,184

)

Non-interest income -

non-GAAP

17,325

18,322

18,469

15,471

14,694

Net Interest Income -

non-GAAP

169,906

167,988

160,910

159,364

172,812

Non-interest income -

non-GAAP

17,325

18,322

18,469

15,471

14,694

Total Income - non-GAAP

187,231

186,310

179,379

174,835

187,506

Adjusted Efficiency Ratio

57.1

56.0

58.4

60.4

58.6

WAFD, INC. AND SUBSIDIARIES

NON-GAAP MEASURES

(UNAUDITED)

Three Months Ended

Adjusted ROA and ROE

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

September 30,

2024

(Unaudited - In thousands, except for ratio data)

Reported:

Net Income - GAAP

60,597

61,952

56,252

47,267

61,140

Net income available to common shareholders - GAAP

56,941

58,296

52,596

43,611

57,484

Average Assets

26,540,782

26,813,500

27,371,320

27,504,576

28,000,482

Return on Assets

0.91

0.92

0.82

0.69

0.87

Average Common Equity

2,723,098

2,730,745

2,739,021

2,715,197

2,696,093

Return on common equity

8.36

8.54

7.68

6.42

8.53

Adjusted:

Net Income - non-GAAP

60,296

62,127

56,086

54,251

58,790

Net income available to common shareholders - non-GAAP

56,640

58,471

52,430

50,595

55,134

Average Assets

26,540,782

26,813,500

27,371,320

27,504,576

28,000,482

Adjusted Return on Assets

0.91

0.93

0.82

0.79

0.84

Average Common Equity

2,723,098

2,730,745

2,739,021

2,715,197

2,696,093

Adjusted Return on common equity

8.32

8.56

7.66

7.45

8.18

Important Cautionary Statements

The foregoing information should be read in conjunction with the financial statements, notes and other information contained in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

This press release contains statements about the Company’s future that are not statements of historical or current fact. These statements are “forward-looking statements” for purposes of applicable securities laws and are based on current information and/or management's good faith belief as to future events. Words such as “expects,” “anticipates,” “believes,” “estimates,” “intends,” “forecasts,” “may,” “potential,” “projects,” and other similar expressions or future or conditional verbs such as “will,” “should,” “would,” and “could” are intended to help identify such forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes any such statements are based on reasonable assumptions, forward-looking statements should not be read as a guarantee of future performance, and you are cautioned not to place undue reliance on any forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statement.

By their nature, forward-looking statements involve inherent risk and uncertainties including the following risks and uncertainties, and those risks and uncertainties more fully discussed under “Risk Factors” in the Company’s September 30, 2024 10-K and Quarterly Reports on Form 10-Q, which could cause actual performance to differ materially from that anticipated by any forward-looking statements. Forward-looking statements relating to our financial condition or operations are subject to risks and uncertainties related to (i) fluctuations in interest rate risk and market interest rates, including the effect on our net interest income and net interest margin; (ii) current and future economic conditions, including the effects of declines in the real estate market, tariffs, high unemployment rates, inflationary pressures, a potential recession, the monetary policies of the Federal Reserve, and slowdowns in economic growth either nationally or locally in some or all of the areas in which we conduct business; (iii) financial stress on borrowers (consumers and businesses) as a result of higher interest rates or an uncertain economic environment; (iv) changes in deposit flows or loan demands; (v) our ability to identify and address cyber-security risks, including security breaches, "denial of service attacks," "hacking" and identity theft; (vi) the Company's exit from the mortgage lending business; (vii) the effects of natural or man-made disasters, calamities, or conflicts, including terrorist events and pandemics (such as the COVID-19 pandemic) and the resulting governmental and societal responses; (viii) the results of examinations by regulatory authorities, including a "Needs to Improve" CRA rating, which may impose restrictions or penalties on the Company's activities; (ix) expectations regarding key growth initiatives and strategic priorities; (x) global economic trends, including developments related to Ukraine and Russia, and the evolving conflict in the Middle East, and related negative financial impacts on our borrowers; (xi) litigation risks resulting in significant expenses, losses and reputational damage; (xii) the impact of bank failures or adverse developments at other banks and related negative press about regional banks and the banking industry in general; and (xiii) other economic, competitive, governmental, environmental, regulatory, and technological factors affecting our operations, pricing, products and services.