Loan Portfolio and Credit Losses - Total Allowance for Credit Losses (ACL) as of September 30, 2025, is $221,220, with ACL for Loans at $199,720, representing 1.04% of Gross Loans[2] - Total Loans Receivable as of September 30, 2025, amounts to $21,274,392, with Single-Family Residential loans comprising 37.9% of the total[4] - Multi-Family loan originations for Q3 2025 reached $36,386, while Commercial Real Estate originations totaled $210,650, and Commercial & Industrial loans amounted to $507,280[2] - Net Loans as of September 30, 2025, stand at $20,088,618, reflecting a slight decrease from $20,277,164 in June 2025[4] - The total amount of loans in process as of September 30, 2025, is $773,606[4] - Total loans as of September 30, 2025, amounted to $20,288,338, a decrease from $20,475,933 as of June 30, 2025[6] - Non-performing assets increased to $143,022 as of September 30, 2025, up from $97,160 as of June 30, 2025, representing a rise of 47.4%[6] - Non-accrual loans as a percentage of total net loans rose to 0.64% as of September 30, 2025, compared to 0.41% as of June 2025[6] - Total net charge-offs for the quarter ending September 30, 2025, were $1,048, representing 0.02% of gross balance[7] Loan Performance and Interest Rates - The weighted average rate on loan originations decreased to 6.87% in Q3 2025, compared to 7.22% in Q2 2025[2] - The average interest rate on loans receivable decreased from 5.44% in June 2025 to 5.35% in September 2025[16] - The average interest rate on loans receivable decreased from 5.69% in September 2024 to 5.42% in September 2025[18] Financial Performance and Ratios - The efficiency ratio improved to 56.82% for the quarter ending September 30, 2025, down from 59.66% for the quarter ending June 30, 2025[9] - The company reported a net interest income of $169,906 thousand for the quarter ended September 30, 2025[16] - The net interest margin improved from 2.69% in June 2025 to 2.71% in September 2025[16] - The net interest margin decreased from 2.69% in September 2024 to 2.58% in September 2025[18] Shareholder Equity and Stock Performance - The company repurchased 969,653 shares at an average price of $29.74 during the quarter ending September 30, 2025[9] - Tangible common shareholders' book value per share increased to $29.38 as of September 30, 2025, up from $28.69 as of June 30, 2025[9] - The company reported a total of 2,297,482 in tangible common shareholders' equity as of September 30, 2025[9] - Shareholders' equity rose from $2.76 billion to $3.03 billion, marking an increase of 9.79%[18] Deposits and Interest-Earning Assets - Total deposits as of September 30, 2025, reached $21,437,636, a slight increase from $21,386,571 as of June 30, 2025, and $21,427,426 as of March 31, 2025[11] - Non-interest checking deposits increased from $2,487,816 (11.6%) in June 2025 to $2,567,539 (12.0%) in September 2025[11] - Time deposits decreased from $9,417,447 (44.0%) in June 2025 to $9,131,104 (42.6%) in September 2025[11] - Interest-bearing customer accounts increased from $16.33 billion to $18.74 billion, a growth of 14.77%[18] - Total interest-earning assets rose from $24.56 billion to $25.34 billion, an increase of 3.16%[18] Asset and Liability Management - The total assets as of September 30, 2025, were $26,540,782 thousand, down from $26,813,500 thousand as of June 30, 2025[16] - The total liabilities decreased from $23,782,755 thousand in June 2025 to $23,517,684 thousand in September 2025[16] - Agency MBS available-for-sale increased to $2,603,153 as of September 30, 2025, up from $2,411,707 as of June 30, 2025[9] Delinquency and Loan Statistics - Delinquency rate for total loans was 0.77% as of September 30, 2025, compared to 0.66% in June 2025[20] - The total number of loans was 41,648 with a total loan size of $20.29 billion as of September 30, 2025[20] - Multi-family non-accrual loans decreased to $19,121, representing 15.0% of total non-accrual loans as of September 30, 2025[6] Conditional Payment Rate - The conditional payment rate (CPR) for WAFD mortgages was 7.5% for the quarter ended September 30, 2025, compared to 9.0% in June 2025[14]

Core Insights - Washington Federal Bank has launched a registered investment advisor, WaFd Wealth, aiming to diversify its revenue streams and provide comprehensive financial services under one roof [1][2] - John Chavez, a veteran from Merrill Lynch, has been appointed to lead WaFd Wealth and is focused on developing a technology platform for the mass affluent market [2][3] Company Strategy - The bank's strategy includes integrating wealth management, trust services, and boutique banking to enhance client offerings [2] - Chavez is collaborating with Pike Street Labs to create a financial planning technology platform that will utilize AI-generated outcomes for client scenarios [3] Future Plans - In three years, the bank anticipates that the technology solution for the affluent segment could surpass the assets under management (AUM) of its core wealth management business [3] - The bank plans to empower its staff to pursue Certified Financial Planner (CFP) designations, potentially training thousands of financial planners across its locations [4] Trust Services Development - WaFd Wealth is set to launch a trust company within the next three to four months, which will operate as a subsidiary of WaFd Wealth [4] - The trust company aims to support clients with special needs trusts and leverage recent federal estate tax law changes to enhance planning tools [5] Personal Connections - Chavez has a long-standing relationship with WaFd CEO Brent Beardall, which facilitated the discussions leading to the launch of the wealth management business [6]

Core Insights - WaFd, Inc. (WAFD) reported a fourth-quarter fiscal 2025 earnings per share of 72 cents, missing the Zacks Consensus Estimate of 75 cents, but reflecting a year-over-year increase of 1.4% [1][10] - The company's full-year earnings per share of $2.63 also fell short of the Zacks Consensus Estimate of $2.73, although it grew 5.2% year over year [3] Financial Performance - Quarterly net income available to common shareholders was $56.9 million, down 1% from the prior-year quarter, slightly above the estimate of $56.8 million [2] - Full-year net income available to common shareholders was $211.4 million, up 14% from the previous year, closely aligning with the estimate of $211.3 million [3] - Quarterly net revenues were $188.3 million, a slight decline from the prior-year quarter and missing the Zacks Consensus Estimate of $190.2 million [4] - Full-year net revenues totaled $725.5 million, a marginal increase from the previous year, but also missing the Zacks Consensus Estimate of $727.4 million [4] Interest Income and Expenses - Net interest income (NII) for the quarter was $169.9 million, down 1.7% year over year, while the net interest margin (NIM) increased by 9 basis points to 2.71% [5] - Total non-interest income rose 15.8% year over year to $18.4 million, exceeding the estimate of $18 million [5] - Total non-interest expenses were $107 million, a 1% decrease year over year, attributed to lower FDIC insurance premiums and other expenses [6] Asset Quality and Loans - As of September 30, 2025, net loans receivable were $20.09 billion, down 1% from the prior quarter, while total customer deposits increased marginally to $21.44 billion [8] - The allowance for credit losses was 1.04% of gross loans outstanding, up from 1.01% in the prior-year quarter, indicating a deterioration in credit quality [11] Share Repurchase Activity - In the reported quarter, WAFD repurchased 0.97 million shares at an average price of $29.74 per share [12] Market Position and Outlook - The company is expected to benefit from relatively higher interest rates and a solid balance sheet, although it faces challenges from a tough macroeconomic environment [13]

Financial Data and Key Metrics Changes - WaFd Inc. reported net income available to common shareholders of $56.9 million or $0.72 per diluted share for Q4 2025, a slight decrease from $0.73 per share in Q3 2025 and an increase from $0.71 per share in Q4 2024 [5] - For the full fiscal year 2025, net income available to common shareholders was $211.4 million or $2.63 per diluted share, compared to $2.50 per share in fiscal 2024 [5] - Total cash decreased by $152 million in Q4, while total investments and mortgage-backed securities increased to $279 million [8] Business Line Data and Key Metrics Changes - Loans receivable decreased by $188 million during the quarter, primarily due to a decrease in inactive loan types, which fell by $216 million [6] - Loan originations for the quarter were $1.4 billion, significantly higher than $700 million in the previous quarter, marking the first time this fiscal year that originations outpaced repayments [6] - Non-interest income increased slightly to $18.4 million, with $4.6 million coming from WaFd Insurance, which saw a 12.5% revenue increase year-over-year [9] Market Data and Key Metrics Changes - Deposits increased by $51 million during the quarter, with non-interest-bearing deposits rising by $80 million or 3.2% [7] - Core deposits accounted for 78% of total deposits, up from 75% at the prior year-end [7] - The net loan-to-deposit ratio ended the quarter at 93.7% [7] Company Strategy and Development Direction - The company is transitioning from a thrift to a commercial bank, with a new strategic plan called Build 2030 aimed at increasing non-interest-bearing deposits from 11% to 20% by the end of fiscal 2030 [23] - The focus is on serving small businesses to achieve lower funding costs, with a reorganization of frontline bankers into specialized teams [24] - WaFd has launched WaFd Wealth Management, aiming to grow assets under management to $1 billion in the first two years [31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the elevated interest rate environment and economic uncertainty have impacted loan demand and credit quality [15] - The company expects to see 8% to 12% growth in the active loan portfolio in the next year, while anticipating a runoff of $200 million to $300 million per quarter in inactive loans [42] - Management remains optimistic about the future, citing improvements in technology and client engagement as key drivers for profitability [71] Other Important Information - The company has exited the single-family mortgage lending market, which has allowed for a shift towards mortgage-backed securities [6] - WaFd's liquidity and capital profile are strong, with all capital ratios exceeding regulatory well-capitalized levels [8] - The company is actively managing credit quality, with delinquent loans at 0.6% and non-performing assets at 0.54% of total assets [11][12] Q&A Session Summary Question: What are the expectations for net growth in fiscal 2026? - Management expects 8% to 12% growth in the active portfolio, with inactive loans running off about $200 million to $300 million per quarter [42] Question: Can you provide an update on rate sensitivity and margin expectations? - Management indicated that margin could expand with future rate cuts, but noted a lag in full effectiveness [46] Question: What are the drivers behind the decrease in core loan yields? - The decrease was primarily due to an increase in non-accrual loans, which had a 3 basis point impact on the margin [51] Question: What is the outlook for time deposits? - Management aims for overall growth rather than shrinking the time deposit book, expecting to break even or see slight growth in time deposits [62] Question: How is the company approaching stablecoin and potential partnerships? - Management is monitoring the situation closely and sees potential opportunities but has not announced any partnerships yet [58]

Financial Data and Key Metrics Changes - Woffett reported net income available to common shareholders of $56.9 million or $0.72 per diluted share for Q4 2025, a slight decrease from $0.73 per share in Q4 2024 [7][8] - For the full year 2025, net income available to common shareholders was $211.4 million or $2.63 per diluted share, compared to $2.50 per share in 2024 [8] - Total noninterest income increased slightly to $18.4 million, with Woffett Insurance contributing $4.6 million for the quarter and $19.5 million for the fiscal year, a 12.5% increase over the prior year [12][13] Business Line Data and Key Metrics Changes - Loans receivable decreased by $188 million during the quarter, primarily due to a decrease in inactive loan types, while loan originations increased to $1.4 billion, outpacing repayments for the first time this fiscal year [8][9] - Active loan types, including multifamily and commercial real estate, saw significant increases in production, with commercial real estate production rising from $44 million to $211 million [15][16] - The net loan to deposit ratio ended the quarter at 93.7%, with core deposits making up 78% of total deposits, up from 75% a year ago [10][11] Market Data and Key Metrics Changes - Deposits increased by $51 million during the quarter, with noninterest-bearing deposits rising by 3.2% [10] - The former Luther Burbank deposits decreased by $1 billion over the fiscal year, reflecting a strategic effort to lower the cost of funds [10] - The liquidity and capital profile remains strong, with all capital ratios exceeding regulatory well-capitalized levels [12] Company Strategy and Development Direction - The company is transitioning from a thrift to a commercial bank, focusing on becoming a digital-first bank and increasing transaction deposits [24][31] - The new strategic plan, "Build 2030," aims to increase noninterest-bearing deposits from 11% to 20% by the end of fiscal 2030 [31] - Woffett has reorganized its banking teams to better serve commercial credit needs and has expanded its product offerings, including SBA loans [33][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from rising interest rates and economic uncertainty but expressed confidence in the company's strategic direction and technology investments [21][24] - The company expects to see 8% to 12% growth in its active loan portfolio in the next year, while anticipating a runoff of $200 million to $300 million in inactive loans per quarter [56][57] - Management highlighted the importance of maintaining a disciplined approach to credit risk as the company grows [37] Other Important Information - The company successfully launched Woffett Wealth Management, aiming to grow assets under management to $1 billion within two years [42] - The company is actively involved in advocating for deposit insurance reform to create a more level playing field in the banking industry [45][46] Q&A Session Summary Question: Expectations for net growth in fiscal 2026 - Management anticipates 8% to 12% growth in the active loan portfolio, with an expected runoff of $200 million to $300 million in inactive loans per quarter [56][57] Question: Update on margin and rate sensitivity - The margin at the end of the quarter was 2.82%, and management expects it to expand with future rate cuts, although there is typically a lag in recognizing the benefits [58][60] Question: Core loan yields and impact of nonaccrual loans - The decrease in core loan yields was primarily driven by an increase in nonaccrual loans, which had a three basis point impact on the margin [66][67] Question: Outlook on deposit costs and client reactions to rate cuts - Management plans to be more aggressive with rate cuts now that the loan-to-deposit ratio is lower, and clients have not shown significant pushback against recent rate changes [89][90] Question: Plans for improving profitability and technology offerings - The focus will be on enhancing business accounts and continuously improving technology offerings based on client feedback [100][103]

Core Insights - WaFd Inc. reported an earnings per share (EPS) of $0.72, which was below the Zacks Consensus Estimate of $0.75, resulting in a 4% negative surprise, although it shows a slight improvement from the previous year's EPS of $0.70 [2] - The company's quarterly revenue was approximately $188.3 million, slightly missing the forecasted $190.6 million and showing a minor decline from $188.69 million reported in the same quarter last year [3] - WaFd's financial metrics indicate a price-to-earnings (P/E) ratio of about 9.81, a price-to-sales (P/S) ratio of around 1.51, and an enterprise value to sales ratio of approximately 2.31 [4] Financial Health Indicators - The debt-to-equity ratio stands at about 0.66, reflecting a balanced approach to leveraging debt and equity [5] - The current ratio is approximately 12.64, indicating a strong capacity to meet short-term obligations [5] - An earnings yield of about 10.19% suggests an attractive return on investment for shareholders [5]

Core Insights - WaFd reported $188.3 million in revenue for the quarter ended September 2025, reflecting a year-over-year decline of 0.2% and an EPS of $0.72 compared to $0.70 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $190.22 million, resulting in a surprise of -1.01%, while the EPS also missed the consensus estimate of $0.75 by 4% [1] Financial Performance Metrics - Efficiency Ratio stood at 56.8%, higher than the two-analyst average estimate of 55.5% [4] - Net Interest Margin was reported at 2.7%, matching the two-analyst average estimate [4] - Net charge-offs average loans were at 0%, better than the two-analyst average estimate of 0.1% [4] - Total Non-performing Assets reached $143.02 million, significantly above the two-analyst average estimate of $98.38 million [4] - Average balance of Total interest-earning assets was $24.84 billion, slightly below the two-analyst average estimate of $25.07 billion [4] - Total Non-accrual loans amounted to $128.63 million, exceeding the two-analyst average estimate of $83.91 million [4] - Total noninterest income was reported at $18.39 million, slightly above the two-analyst average estimate of $18.19 million [4] - Net Interest Income was $169.91 million, lower than the two-analyst average estimate of $172.05 million [4] Stock Performance - WaFd shares have returned -7.1% over the past month, contrasting with the Zacks S&P 500 composite's +0.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

分组1 - WaFd reported quarterly earnings of $0.72 per share, missing the Zacks Consensus Estimate of $0.75 per share, and showing an increase from $0.70 per share a year ago, resulting in an earnings surprise of -4.00% [1] - The company posted revenues of $188.3 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 1.01%, and showing a slight decrease from year-ago revenues of $188.69 million [2] - Over the last four quarters, WaFd has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] 分组2 - WaFd shares have underperformed the market, losing about 10.4% since the beginning of the year, while the S&P 500 has gained 13.4% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.74 on revenues of $191.63 million, and for the current fiscal year, it is $3.02 on revenues of $768.55 million [7] 分组3 - The Zacks Industry Rank indicates that the Banks - West industry is currently in the bottom 30% of over 250 Zacks industries, which may negatively impact stock performance [8] - Coastal Financial Corporation, another company in the same industry, is expected to report quarterly earnings of $0.89 per share, reflecting a year-over-year change of -8.3%, with revenues expected to be $129 million, down 15.3% from the previous year [9]

Core Insights - WaFd, Inc. reported a net income of $226 million for the fiscal year, with diluted earnings per common share at $2.63, a return on average assets of 0.84%, and a return on tangible common equity of 9.20% [1] - In the fourth quarter, the company achieved a net income of $61 million, with diluted earnings per common share at $0.72, a return on average assets of 0.91%, and a return on tangible common equity of 9.99% [1] - The company indicated a positive trend for Fiscal 2025, highlighting an improving margin and significant growth [1]

Core Viewpoint - WaFd (WAFD) is expected to report quarterly earnings of $0.75 per share, a 7.1% increase year-over-year, with revenues projected at $190.22 million, reflecting a 0.8% increase compared to the previous year [1] Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [2] Key Metrics Forecast - Analysts predict 'Total Non-performing Assets' to be $98.38 million, up from $77.42 million a year ago [4] - The consensus for 'Average balance - Total interest-earning assets' is $25.07 billion, down from $26.24 billion year-over-year [4] - The 'Efficiency Ratio' is expected to be 55.5%, improved from 57.2% in the same quarter last year [5] - 'Total Non-accrual loans' are forecasted at $83.91 million, compared to $69.54 million in the same quarter of the previous year [5] - 'Total noninterest income' is estimated to reach $18.19 million, up from $15.88 million a year ago [6] - The consensus for 'Net Interest Income' stands at $172.05 million, slightly down from $172.81 million reported in the same quarter last year [6] Stock Performance - Over the past month, WaFd shares have declined by 8.5%, while the Zacks S&P 500 composite has increased by 0.4% [6] - WaFd holds a Zacks Rank 3 (Hold), indicating expected performance in line with the overall market [6]