NASDAQ$WAFD

WaFd Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported earnings after successfully completing the merger of California-based Luther Burbank Corporation.

WaFd's earnings for the quarter ended March 31, 2024, were $15.888 million, a decrease of 73% from the previous quarter and 76% from the same quarter last year, impacted by merger-related costs and certain non-operating expenses of $51.1 million. Adjusted for these expenses, net income would have been $54.8 million, a 6% decrease from the December quarter.

  • Completed the acquisition of Luther Burbank Corporation (LBC) on February 29, 2024, and integrated its systems and branches rapidly.
  • Identified a portion of the LBC multifamily loan portfolio (up to $3.2 billion) for potential sale and initiated a sale program.
  • Total assets reached $30.1 billion as of March 31, 2024, primarily due to the addition of $7.7 billion of LBC assets.
  • Net interest income was $159 million, a decrease of $16.4 million or 9.4% from the same quarter in the prior year.

Headline financials

Total Revenue

$172M

Previous: $185M-7.1%
EPS

$0.17

Previous: $0.95-82.1%
Net Interest Margin

2.7%

Previous: 3.5%-22.2%
Capital Expenditures

-$12.6M

Previous: $2.79M-552.1%
Free Cash Flow

$3.27M

Previous: $65.9M-95.0%
Net Income

$15.9M

Previous: $65.9M-75.9%
Operating Income

$111M

Previous: $78.4M+42.1%
Gross Profit

$172M

Previous: $179M-4.0%
Stock-Based Comp

$2.89M

Previous: $2.46M+17.5%

Revenue & EPS history

WaFd · Revenue · Quarterly

$172M

Q2 2024-7.1%vs Q2 2023
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

WaFd · $13.9M total across 3 segments · Q1 2021

  • Deposit Fee Income
    $6.03M
  • Other Income
    $5.45M
  • Loan Fee Income
    $2.39M

Forward guidance

WaFd expects earnings per share accretion of 8% in fiscal 2025 and 16% in fiscal 2026 factoring in the redeployment of funds received in the potential loan sale into higher yielding assets.

Tailwinds

  • EPS Accretion: 8% accretion for FY 2025
  • Cost savings: $31 million immediate savings
  • Sale of $3.2 billion loan portfolio
  • Strong regional bank
  • Relationship banking

Headwinds

  • Fluctuations in interest rate risk and market interest rates
  • Current and future economic conditions, including the effects of declines in the real estate market, high unemployment rates and inflationary pressures.
  • Risks related to the integration of the operations of Luther Burbank Corporation
  • Financial stress on borrowers (consumers and businesses) as a result of higher interest rates or an uncertain economic environment
  • Changes in deposit flows or loan demands

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 Q2 2024

Historical avgQ2 2024

+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

Earnings price reactions
QuarterReport dateReaction (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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