WaFd Bank(WAFD) - 2025 Q1 - Quarterly Report

Financial Performance - For the three months ended December 31, 2024, the company recorded net income of $47,267,000, a decrease from$58,453,000 in the prior year quarter[256]. - Net interest income for the same period was $155,431,000, which is$3,194,000 lower than the same quarter of the prior year, with a net interest margin of 2.39% compared to 2.91% a year ago[257]. - Total non-interest income rose to $15,702,000, an increase of$1,535,000 from $14,167,000 in the same period last year[261]. - Total non-interest expense for the three months ended December 31, 2024, was$111,311,000, an increase of $14,771,000 from$96,540,000 in the prior year quarter, primarily due to increased occupancy and compensation costs post-merger[262]. - The effective tax rate for the three months ended December 31, 2024, was 21.55%, compared to 18.46% for the prior year quarter[264]. Interest Rates and Margins - As of December 31, 2024, the net interest margin was 2.39%, down from 2.91% for the same quarter in 2023[210]. - The yield on interest-earning assets decreased by 16 basis points to 5.31%, while the cost of interest-bearing liabilities decreased by 32 basis points to 3.48%[210]. - The potential increase in net interest income for a 200 basis point decrease in interest rates is estimated at $26,825,000 as of December 31, 2024[208]. - The potential decrease in net present value (NPV) for a 200 basis point increase in interest rates is estimated at$(848,408,000) as of December 31, 2024[209]. Assets and Liabilities - Total assets decreased by $375,876,000 to$27,684,454,000 from $28,060,330,000 at September 30, 2024[213]. - Cash and cash equivalents decreased by$873,367,000, or 36.7%, to $1,507,735,000 since September 30, 2024[229]. - Total borrowings decreased to$2,863,675,000 from $3,267,589,000 at September 30, 2024[219]. - The Company has$537,348,000 of mortgage-backed securities designated as HTM, with a net unrealized loss of $52,242,000 as of December 31, 2024[203]. - The Company has$2,743,731,000 of AFS securities carried at fair value, with a net unrealized loss of $69,036,000 as of December 31, 2024[203]. Loans and Credit Quality - Loans receivable increased by$144,147,000 to $21,060,501,000 at December 31, 2024, with commercial loans accounting for 68$72,640,000, reaching $22,432,036,000, a growth of 0.3$1,695,000 to $79,113,000, with non-performing assets as a percentage of total assets at 0.29$204,522,000, a slight increase of $769,000 from the previous quarter[235]. - Total non-accrual loans increased to$72,487,000, representing 0.29% of total assets, up from $69,541,000 or 0.28$21,336,000 to $3,021,636,000, representing 10.91$64,807,000, or 0.3%, to $21,438,777,000 at December 31, 2024[252]. - The net gain on real estate owned (REO) for the three months ended December 31, 2024, was$429,000, down from a net gain of $1,826,000 in the prior year quarter[263]. - The estimated total amount of tax benefits from LIHTC investments for the fiscal year is approximately$19.7 million[265]. - The expected total amount of amortization expense recognized during the fiscal year related to LIHTC investments is about $16.1 million[266].