NASDAQ$WAFD
WaFd Inc · Q1 2025 earnings
Q1 2025 earnings · · Investor relations
Briefing
WaFd reported quarterly earnings with a net income of $47.3 million and an EPS of $0.54, impacted by margin compression and restructuring charges.
WaFd Inc. reported a net income of $47.3 million, or $0.54 per diluted share, for the quarter ended December 31, 2024. Results were impacted by greater than expected margin compression and $5.4 million in one-time restructuring charges related to exiting the single-family mortgage lending market. The company is shifting its focus to business banking and commercial real estate lending.
- Net income for the quarter was $47.3 million, a decrease of 23% compared to the previous quarter and 19% year-over-year.
- Diluted earnings per share were $0.54, down from $0.71 in the previous quarter and $0.85 year-over-year.
- Net interest margin contracted to 2.39% from 2.62% in the previous quarter due to variable rate assets repricing quickly while liabilities repriced slower.
- The company is exiting the single-family mortgage lending market, resulting in $5.4 million in restructuring charges this quarter but anticipates $17 million in annual expense savings by the end of June 2025.
Headline financials
Revenue & EPS history
WaFd · Revenue · Quarterly
$171M
Revenue by segment
WaFd · $13.9M total across 3 segments · Q1 2021
- Deposit Fee Income$6.03M—43.4%
- Other Income$5.45M—39.3%
- Loan Fee Income$2.39M—17.2%
Forward guidance
WaFd is focusing on business banking and commercial real estate lending after exiting the single-family mortgage market, expecting annual expense savings of approximately $17 million by the end of June 2025.
Tailwinds
- Focusing on business banking and commercial real estate lending.
- Anticipating annual expense savings of approximately $17 million by the end of June 2025.
- Retaining all existing home loans and HELOC’s on the books, ensuring no disruption for current customers.
- Capital has grown nicely over the last three quarters, with tangible common equity to tangible assets increasing from 8.31% to 9.45% since acquisition in March of last year.
- Offering SBA lending products to broaden offerings for small businesses.
Headwinds
- Exiting the single-family mortgage lending market, resulting in restructuring expense of $5.4 million this quarter.
- Margin compression impacting results due to Federal Reserve interest rate cuts.
- Received a “Needs to Improve” rating regarding Community Reinvestment Act (“CRA”) compliance.
- Delinquent loans were slightly increased at 0.30% of total loans at December 31, 2024, compared to 0.25% at September 30, 2024.
- Exiting mortgage lending and right sizing other support areas will result in an 8% reduction in our workforce.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2025
+0.2%
Avg return
Earnings day
+1.5%
Avg return
5 days after
+2.2%
Avg return
30 days after
51%
35 / 69 earnings
Positive
+9.9%
Q4 2022
Best reaction
-5.7%
Q1 2024
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q2 2026 | -1.4% | +7.8% | +5.5% | |
| Q1 2026 | -4.0% | -1.8% | -7.9% | |
| Q4 2025 | +0.9% | +4.6% | +9.8% | |
| Q3 2025 | -1.6% | -1.3% | +0.6% | |
| Q2 2025 | +0.1% | +1.3% | +0.9% | |
| Q1 2025 | -5.7% | -6.9% | -7.2% | |
| Q4 2024 | -1.6% | -7.7% | +0.5% | |
| Q3 2024 | +7.8% | +9.1% | +8.6% | |
| Q2 2024 | +2.5% | +0.0% | +2.9% | |
| Q1 2024 | -5.7% | -3.5% | -5.1% | |
| Q4 2023 | -3.3% | -5.5% | +5.4% | |
| Q3 2023 | +2.0% | +9.6% | +8.5% | |
| Q2 2023 | -2.4% | -0.1% | -14.0% | |
| Q1 2023 | +4.5% | +3.5% | +2.8% | |
| Q4 2022 | +9.9% | +17.9% | +19.7% | |
| Q3 2022 | +1.1% | +5.0% | +15.6% | |
| Q2 2022 | +1.8% | +3.1% | -0.7% | |
| Q1 2022 | +3.5% | +3.2% | -1.9% | |
| Q4 2021 | +3.7% | +2.6% | +2.6% | |
| Q3 2021 | +0.5% | +1.9% | +7.2% | |
| Q2 2021 | +1.1% | +5.2% | +6.5% | |
| Q1 2021 | +1.3% | +2.6% | +6.7% | |
| Q4 2020 | -0.8% | -3.7% | +5.6% | |
| Q3 2020 | -0.5% | -6.7% | -3.9% | |
| Q2 2020 | -0.6% | +1.3% | +1.5% | |
| Q1 2020 | +0.2% | -0.1% | -2.1% | |
| Q4 2019 | -2.2% | -1.5% | +0.5% | |
| Q3 2019 | +0.5% | +1.1% | -1.9% | |
| Q2 2019 | +4.3% | +6.2% | +3.6% | |
| Q1 2019 | +2.2% | +6.2% | +6.6% | |
| Q4 2018 | +0.6% | -0.9% | -5.7% | |
| Q3 2018 | +1.4% | +3.6% | +5.5% | |
| Q2 2018 | -4.7% | -4.2% | -5.3% | |
| Q1 2018 | +2.9% | +4.9% | +2.1% | |
| Q4 2017 | +2.6% | +2.6% | -1.3% | |
| Q3 2017 | +0.6% | +1.1% | -4.7% | |
| Q2 2017 | +1.5% | +1.4% | -1.1% | |
| Q1 2017 | -2.5% | -1.8% | +1.0% | |
| Q4 2016 | +2.2% | +2.5% | +18.4% | |
| Q3 2016 | -0.4% | -1.3% | +0.5% | |
| Q2 2016 | +2.6% | — | — | |
| Q1 2016 | -1.9% | — | — | |
| Q4 2015 | +4.2% | — | — | |
| Q3 2015 | -0.5% | — | — | |
| Q2 2015 | +2.6% | — | — | |
| Q4 2014 | -4.5% | — | — | |
| Q1 2015 | -4.5% | — | — | |
| Q3 2014 | -1.7% | — | — | |
| Q2 2014 | -2.4% | — | — | |
| Q1 2014 | -2.5% | — | — | |
| Q4 2013 | +5.2% | — | — | |
| Q3 2013 | +6.9% | — | — | |
| Q2 2013 | -2.5% | — | — | |
| Q1 2013 | +0.5% | — | — | |
| Q4 2012 | +3.1% | — | — | |
| Q3 2012 | -3.4% | — | — | |
| Q2 2012 | -0.2% | — | — | |
| Q1 2012 | +3.4% | — | — | |
| Q4 2011 | -2.9% | — | — | |
| Q3 2011 | +0.6% | — | — | |
| Q4 2010 | +0.6% | — | — | |
| Q2 2011 | -0.2% | — | — | |
| Q1 2010 | -0.5% | — | — | |
| Q1 2011 | -0.6% | — | — | |
| Q2 2010 | -1.2% | — | — | |
| Q4 2008 | -1.2% | — | — | |
| Q3 2009 | -3.6% | — | — | |
| Q4 2009 | -3.6% | — | — | |
| Q3 2010 | -3.6% | — | — |
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