SEATTLE, April 11, 2025--(BUSINESS WIRE)--WaFd, Inc. (Nasdaq: WAFD):

Q2 Highlights  $56 Million  $0.65  0.82%  7.68% Net Income  Diluted Earnings per Common Share  Return on Average Assets  Return on Average Common Equity

"In the second quarter of fiscal 2025 our margin bounced back, expenses declined, and bottom-line results improved for shareholders. We are enthusiastic about the shift toward business banking we implemented last quarter and are pleased to see early successes including 382 new small business loans originated through our branches (compared to none in the prior quarter), merchant processing referrals increasing 125% on a linked quarter basis, and our insurance subsidiary delivering 53% year over year growth in profit. Additionally, we have been able to hire two former executives from the Small Business Administration to assist in establishing SBA lending at WaFd. We understand that our continued evolution toward higher margin business lines will be measured in years, not quarters, but we are off to a good start.

"This quarter we were recognized by JD Power as the 2nd best for customer service among all banks doing business in the Pacific Northwest. This is a well-deserved compliment to our team of bankers that focus first on our clients."

Brent Beardall President and CEO of WaFd Bank

Net Interest Income and NIM • $161 million net interest income for the quarter compared to 155 million in Q1.  Credit Quality • Non-performing assets down by $8 million at 0.26% of total assets compared to 0.29% Q1. • Net interest margin at 2.55% for the quarter compared to 2.39% for Q1.  • $2.75 million provision the result of net charge-offs offset by a stable loans receivable balance.  Non-Interest Income and Expense • 20% increase in non-interest income compared to Q1 driven by WaFd Insurance revenue increase: $1.7 million over the December quarter and $1.3 million over March 2024.  Shareholder Returns and Stock Activity • On March 7, 2025, the Company paid a cash dividend of $0.27 per share, 168th consecutive quarterly dividend paid. • 726,082 shares were repurchased during the quarter

WaFd, Inc. (Nasdaq: WAFD) (the "Company"), parent company of Washington Federal Bank ("WaFd Bank" or the "Bank"), today announced quarterly earnings of $56,252,000 for the quarter ended March 31, 2025, an increase of 19% from net earnings of $47,267,000 for the quarter ended December 31, 2024 and an increase of 254% from net earnings of $15,888,000 for the quarter ended March 31, 2024. After the effect of dividends on preferred stock, net income available for common shareholders was $0.65 per diluted share for the quarter ended March 31, 2025, compared to $0.54 per diluted share for the quarter ended December 31, 2024, an $0.11 or 20% increase, and $0.17 per diluted share for the quarter ended March 31, 2024, a $0.48 or 282% increase in fully diluted earnings per common share. The March 31, 2024 results reflected significant acquisition-related expenses and certain non-operating adjustments of $51.1 million and the December 31, 2024 results reflected one-time restructuring charges of $5.4 million.

Story Continues

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

As of (In thousands, except share and ratio data)  March 31,
2025  December 31,
2024  September 30,
2024  June 30, 2024  March 31,
2024 BALANCE SHEET  Cash  $ 1,231,461   $ 1,507,735   $ 2,381,102   $ 2,492,504   $ 1,505,771  Loans receivable, net   20,920,001    21,060,501    20,916,354    20,873,919    20,795,259  Allowance for credit losses ("ACL")   222,709    225,022    225,253    225,324    225,077  Loans held for sale   —    —    —    468,527    2,993,658  Available-for-sale securities, at fair value   3,142,763    2,743,731    2,572,709    2,428,768    2,438,114  Held-to-maturity securities, at amortized cost   526,502    537,348    436,972    447,638    457,882  Total investments   3,669,265    3,281,079    3,009,681    2,876,406    2,895,996  Total assets   27,644,637    27,684,454    28,060,330    28,580,800    30,140,288  Transaction deposits   11,853,984    11,853,859    11,817,185    11,929,005    12,338,862  Time deposits   9,573,442    9,584,918    9,556,785    9,255,760    9,000,911  Total deposits   21,427,426    21,438,777    21,373,970    21,184,765    21,339,773  Borrowings   2,814,938    2,914,627    3,318,307    4,079,360    5,489,501  Total shareholders' equity   3,032,620    3,021,636    3,000,300    2,958,339    2,921,906  Loans to customer deposits2   97.63 %   98.24 %   97.86 %   98.53 %   97.45 % PROFITABILITY  Net income  $ 56,252   $ 47,267   $ 61,140   $ 64,560   $ 15,888  Net income to common shareholders   52,596    43,611    57,484    60,904    12,232  Earnings per common share   0.65    0.54    0.71    0.75    0.17  Return on tangible common equity1   9.18 %   7.69 %   10.24 %   11.10 %   2.47 % Return on tangible assets1   0.84 %   0.70 %   0.89 %   0.88 %   0.26 % Net interest margin   2.55 %   2.39 %   2.62 %   2.56 %   2.73 % Efficiency ratio   58.31 %   65.04 %   57.21 %   56.61 %   77.74 % FINANCIAL HIGHLIGHTS  Common shareholders' equity per share  $ 33.84   $ 33.45   $ 33.25   $ 32.76   $ 32.21  Tangible common shareholders' equity per share1   28.31    27.93    27.73    27.18    26.64  Shareholders' equity to total assets   10.97 %   10.91 %   10.69 %   10.35 %   9.69 % Tangible shareholders' equity to tangible assets1   9.51 %   9.45 %   9.24 %   8.91 %   8.31 % Common shares outstanding   80,758,674    81,373,760    81,220,269    81,157,173    81,405,391  Preferred shares outstanding   300,000    300,000    300,000    300,000    300,000  CREDIT QUALITY2  ACL to gross loans   1.01 %   1.00 %   1.01 %   1.00 %   1.00 % Non-accrual loans to net loans   0.29 %   0.34 %   0.33 %   0.29 %   0.29 % Delinquencies to net loans   0.27 %   0.30 %   0.25 %   0.22 %   0.36 % Non-performing assets to total assets   0.26 %   0.29 %   0.28 %   0.24 %   0.23 % Criticized loans to net loans   3.32 %   2.54 %   2.41 %   3.01 %   2.59 % Substandard loans to net loans   2.38 %   1.96 %   2.04 %   1.84 %   1.48 %

(1)  Metric is a non-GAAP Financial Measure. See page 10 for additional information on our use of non-GAAP Financial Measures. (2)  Metrics include only loans held for investment. Loans held for sale are not included.

Balance Sheet Total assets decreased to $27.6 billion as of March 31, 2025, compared to $28.1 billion at September 30, 2024, primarily due to cash used to reduce borrowings and purchase investments during the period. Net loans were flat at $20.9 billion and cash decreased $1.1 billion, or 48.3%. Investment securities increased by $660 million, or 21.9% in the first half of FY 2025.

Customer deposits totaled $21.4 billion as of March 31, 2025, largely unchanged from September 30, 2024. Transaction accounts increased by $37 million or 0.3% during the period, while time deposits increased $17 million or 0.2%. As of March 31, 2025, 55.3% of the Company’s deposits were transaction accounts, similar to September 30, 2024. Core deposits, defined as all transaction accounts and time deposits less than $250,000, totaled 78.8% of deposits at March 31, 2025, up from 75.1% on September 30, 2024. Deposits that are uninsured or not collateralized were 25.6% as of March 31, 2025, an increase from 24.0% as of September 30, 2024.

Borrowings totaled $2.8 billion as of March 31, 2025, down from $3.3 billion at September 30, 2024. The effective weighted average interest rate of borrowings was 3.30% as of March 31, 2025, compared to 3.93% at September 30, 2024.

Loan originations totaled $1.0 billion for the second fiscal quarter of 2025, compared to $0.9 billion of originations in the prior quarter. Offsetting loan originations in each of these quarters were loan repayments of $1.3 billion and $1.0 billion, respectively. Commercial loans represented 73% of all loan originations during the second fiscal quarter of 2025 and consumer loans accounted for the remaining 27%. The period end interest yield on the loan portfolio was 5.42% as of March 31, 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 March quarter, tangible book value per share grew from $27.73 as of September 30, 2024 to $28.31 at March 31, 2025. This metric is a non-GAAP Financial Measure. See page 10 for additional information on our use of non-GAAP Financial Measures. During the quarter, the Company repurchased 726,082 shares of common stock at a weighted average price of $29.39. Our share repurchase plan currently has an authorization of 10.8 million shares, which provides what we believe is a compelling investment alternative.

Credit Quality Credit quality continues to be monitored closely in light of the shifting economic and monetary environment. As of March 31, 2025, non-performing assets decreased to $71 million, or 0.26% of total assets, from $77 million, or 0.28%, at September 30, 2024. The change fiscal year to date is due primarily to non-accrual loans decreasing by $9.7 million, or 14%, since September 30, 2024. Delinquent loans were slightly increased at 0.27% of total loans at March 31, 2025, compared to 0.25% at September 30, 2024 but improved compared to 0.30% at December 31, 2024. The allowance for credit losses (including the reserve for unfunded commitments) totaled $223 million as of March 31, 2025, and was 1.01% of gross loans outstanding, as compared to $225 million, or 1.01% of gross loans outstanding, as of September 30, 2024. Net charge-offs were $5,063,000 for the second fiscal quarter of 2025, compared to $231,000 for the prior quarter.

Profitability Net interest income was $161 million for the second fiscal quarter of 2025, an increase of $5.5 million or 4% from the prior quarter. The increase in net interest income was primarily due to a 19 basis point decrease in the rate paid on interest bearing liabilities offset by a $170 million decrease in interest earning asset balances for which the yield was flat. Net interest margin was 2.55% in the second fiscal quarter of 2025 compared to 2.39% for the quarter ended December 31, 2024.

Total non-interest income was $18.9 million for the second fiscal quarter of 2025 compared to $15.7 million the prior quarter. The increase compared to the prior quarter was primarily due to increased prepayment fees earned on loans and increased commission income from the Bank's insurance subsidiary, WaFd Insurance.

Total non-interest expense was $104.8 million in the second fiscal quarter of 2025, a decrease of $6.5 million, or 5.8%, from the prior quarter. The overall decrease is the result of the $5.4 million of restructuring costs incurred in the prior quarter. Decreased expenses combined with increased net interest income resulted in a decrease in the Company’s efficiency ratio in the second fiscal quarter of 2025 to 58.3%, compared to 65.0% in the prior quarter.

The Company recorded a $2.8 million provision for credit losses in the second fiscal quarter of 2025 compared to no provision the prior quarter. The provision for loan losses in the quarter ended March 31, 2025 was primarily the result of the stable loans receivable balance offset by $5.1 million of net charge-offs taken during the quarter.

Return on common shareholders' equity for the quarter ended March 31, 2025 was 7.68% compared to 6.42% for the quarter ended December 31, 2024. Adjusted for certain non-operating items and restructuring charges, return on equity for the quarter is 7.66% compared to adjusted return on equity of 7.45% the prior quarter. Return on assets for the quarter ended March 31, 2025 was 0.82% compared to 0.69% for the previous quarter. Adjusted for certain non-operating items and restructuring charges, return on assets for the quarter is 0.82% compared to adjusted return on assets of 0.79% the prior quarter. For a reconciliation of these adjusted ratios, see the Non-GAAP Financial Measures section below.

Income tax expense totaled $15.8 million the second fiscal quarter of 2025, as compared to $5.1 million for the prior year same quarter. The effective tax rate for the quarter ended March 31, 2025 was 21.88% compared to 21.55% for the quarter ended December 31, 2024. 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 209 branches in nine western states. To find out more about WaFd Bank, please visit our website www.wafdbank.com. 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)  March 31, 2025  September 30, 2024 (In thousands, except share and ratio data) ASSETS  Cash and cash equivalents  $ 1,231,461   $ 2,381,102  Available-for-sale securities, at fair value   3,142,763    2,572,709  Held-to-maturity securities, at amortized cost   526,502    436,972  Loans receivable, net of allowance for loan losses of $202,709 and $203,753   20,920,001    20,916,354  Interest receivable   101,778    102,827  Premises and equipment, net   250,896    247,901  Real estate owned   7,688    4,567  FHLB stock   133,964    95,617  Bank owned life insurance   271,321    267,633  Intangible assets, including goodwill of $414,723 and $411,360   446,660    448,425  Deferred tax assets, net   122,739    119,248  Other assets   488,864    466,975  $ 27,644,637   $ 28,060,330  LIABILITIES AND SHAREHOLDERS’ EQUITY  Liabilities  Transaction deposits  $ 11,853,984   $ 11,817,185  Time deposits   9,573,442    9,556,785  Total customer deposits   21,427,426    21,373,970  Borrowings   2,763,758    3,267,589  Junior subordinated debentures   51,180    50,718  Advance payments by borrowers for taxes and insurance   44,496    61,330  Accrued expenses and other liabilities   325,157    306,423  24,612,017    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    300,000  Common stock, $1.00 par value, 300,000,000 shares authorized; 154,355,059 and 154,007,429 shares issued; 80,758,674 and 81,220,269 shares outstanding   154,355    154,007  Additional paid-in capital   2,158,037    2,150,675  Accumulated other comprehensive income (loss), net of taxes   51,404    55,851  Treasury stock, at cost 73,596,385 and 72,787,160 shares   (1,663,739 )   (1,639,131 ) Retained earnings   2,032,563    1,978,898  3,032,620    3,000,300  $ 27,644,637   $ 28,060,330

Yield and margin as of period end  Loans receivable1  5.42 %  5.62 % Mortgage-backed securities  4.22   4.00  Combined cash, investments and FHLB stock  4.62   5.10  Interest-earning assets  5.22   5.44  Interest-bearing customer accounts  3.16   3.50  Borrowings1  3.30   3.93  Interest-bearing liabilities  3.17   3.56  Net interest spread  2.05   1.88  Net interest margin  2.55   2.44

1  Accretion 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
March 31,  Six Months Ended
March 31, 2025  2024  2025  2024 (In thousands, except share and ratio data) INTEREST INCOME  Loans receivable  $ 282,077   $ 274,341   $ 568,674   $ 520,133  Mortgage-backed securities   23,926    12,905    42,263    24,171  Investment securities and cash equivalents   30,081    31,580    70,264    61,368  336,084    318,826    681,201    605,672  INTEREST EXPENSE  Customer accounts   151,948    116,164    314,098    212,835  Borrowings, senior debt and junior subordinated debentures   23,226    44,065    50,762    82,003  175,174    160,229    364,860    294,838  Net interest income   160,910    158,597    316,341    310,834  Provision (release) for credit losses   2,750    16,000    2,750    16,000  Net interest income after provision (release)   158,160    142,597    313,591    294,834  NON-INTEREST INCOME  Gain (loss) on sale of investment securities   —    90    20    171  Gain (loss) on termination of hedging derivatives   65    6    70    115  Loan fee income   1,812    550    3,157    1,394  Deposit fee income   7,057    6,698    14,103    13,500  Other income   9,947    6,048    17,233    12,379  Total non-interest income   18,881    13,392    34,583    27,559  NON-INTEREST EXPENSE  Compensation and benefits   52,710    73,155    112,637    122,996  Occupancy   11,499    10,918    22,287    20,289  FDIC insurance premiums   5,800    7,900    10,650    14,470  Product delivery   6,907    5,581    12,692    11,590  Information technology   14,481    12,883    28,673    25,749  Other expense   13,435    23,275    29,204    35,158  Total non-interest expense   104,832    133,712    216,143    230,252  Gain (loss) on real estate owned, net   (199 )   (1,315 )   230    511  Income before income taxes   72,010    20,962    132,261    92,652  Income tax provision   15,758    5,074    28,742    18,311  Net income   56,252    15,888    103,519    74,341  Dividends on preferred stock   3,656    3,656    7,312    7,312  Net income available to common shareholders  $ 52,596   $ 12,232   $ 96,207   $ 67,029

PER SHARE DATA  Basic earnings per common share  $ 0.65   $ 0.17   $ 1.19   $ 1.00  Diluted earnings per common share   0.65    0.17    1.18    1.00  Cash dividends per common share   0.27    0.26    0.53    0.51  Basic weighted average shares outstanding   81,061,206    70,129,072    81,178,997    67,197,352  Diluted weighted average shares outstanding   81,105,536    70,164,558    81,278,102    67,225,099  PERFORMANCE RATIOS  Return on average assets   0.82 %   0.26 %   0.75 %   0.63 % Return on average common equity   7.68 %   2.09 %   7.06 %   5.98 %

WAFD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)  Three Months Ended March 31,
2025  December 31,
2024  September 30,
2024  June 30,
2024  March 31,
2024 (In thousands, except share and ratio data) INTEREST INCOME  Loans receivable  $ 282,077   $ 286,597   $ 308,598   $ 337,118   $ 274,341  Mortgage-backed securities   23,926    18,337    18,088    17,523    12,905  Investment securities and cash equivalents   30,081    40,183    47,411    37,300    31,580  336,084    345,117    374,097    391,941    318,826  INTEREST EXPENSE  Customer accounts   151,948    162,150    165,240    154,359    116,164  Borrowings, senior debt and junior subordinated debentures   23,226    27,536    36,045    60,396    44,065  175,174    189,686    201,285    214,755    160,229  Net interest income   160,910    155,431    172,812    177,186    158,597  Provision for credit losses   2,750    —    —    1,500    16,000  Net interest income after provision   158,160    155,431    172,812    175,686    142,597  NON-INTEREST INCOME  Gain on sale of investment securities   —    20    91    80    90  Gain on termination of hedging derivatives   65    5    72    54    6  Loan fee income   1,812    1,345    757    594    550  Deposit fee income   7,057    7,046    7,047    6,960    6,698  Other income   9,947    7,286    7,911    9,567    6,048  Total non-interest income   18,881    15,702    15,878    17,255    13,392  NON-INTEREST EXPENSE  Compensation and benefits   52,710    59,927    53,983    57,169    73,155  Occupancy   11,499    10,788    10,843    10,904    10,918  FDIC insurance premiums   5,800    4,850    6,800    7,600    7,900  Product delivery   6,907    5,785    6,306    6,090    5,581  Information technology   14,481    14,192    14,129    13,428    12,883  Other expense   13,435    15,769    15,880    14,888    23,275  Total non-interest expense   104,832    111,311    107,941    110,079    133,712  Gain (loss) on real estate owned, net   (199 )   429    (83 )   (124 )   (1,315 ) Income before income taxes   72,010    60,251    80,666    82,738    20,962  Income tax provision   15,758    12,984    19,526    18,178    5,074  Net income   56,252    47,267    61,140    64,560    15,888  Dividends on preferred stock   3,656    3,656    3,656    3,656    3,656  Net income available to common shareholders  $ 52,596   $ 43,611   $ 57,484   $ 60,904   $ 12,232

WAFD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)  Three Months Ended March 31,
2025  December 31,
2024  September 30,
2024  June 30,
2024  March 31,
2024 (In thousands, except share and ratio data) PER SHARE DATA  Basic earnings per common share  $ 0.65   $ 0.54   $ 0.71   $ 0.75   $ 0.17  Diluted earnings per common share   0.65    0.54    0.71    0.75    0.17  Cash dividends per common share   0.27    0.26    0.26    0.26    0.26  Basic weighted average shares outstanding   81,061,206    81,294,227    81,208,683    81,374,811    70,129,072  Diluted weighted average shares outstanding   81,105,536    81,401,599    81,353,644    81,393,708    70,164,558  PERFORMANCE RATIOS  Return on average assets   0.82 %   0.69 %   0.87 %   0.87 %   0.26 % Return on average common equity   7.68    6.42    8.53    9.20    2.09  Net interest margin   2.55    2.39    2.62    2.56    2.73  Efficiency ratio   58.31    65.04    57.21    56.61    77.74

WAFD, INC. AND SUBSIDIARIES NON-GAAP MEASURES
(UNAUDITED)

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  March 31,
2025  December 31,
2024  September 30,
2024  June 30,
2024  March 31,
2024 (Unaudited - In thousands, except for ratio data) Shareholders' equity - GAAP  $ 3,032,620   $ 3,021,636   $ 3,000,300   $ 2,958,339   $ 2,921,906  Less intangible assets - GAAP   446,660    449,213    448,425    452,255    453,539  Tangible shareholders' equity  $ 2,585,960   $ 2,572,423   $ 2,551,875   $ 2,506,084   $ 2,468,367  Less preferred stock - GAAP   300,000    300,000    300,000    300,000    300,000  Tangible common shareholders' equity  $ 2,285,960   $ 2,272,423   $ 2,251,875   $ 2,206,084   $ 2,168,367   Total assets - GAAP  $ 27,644,637   $ 27,684,454   $ 28,060,330   $ 28,580,800   $ 30,140,288  Less intangible assets - GAAP   446,660    449,213    448,425    452,255    453,539  Tangible assets  $ 27,197,977   $ 27,235,241   $ 27,611,905   $ 28,128,545   $ 29,686,749   Tangible Metrics  Common shares outstanding - GAAP   80,758,674    81,373,760    81,220,269    81,157,173    81,405,391  Tangible common equity per share  $ 28.31   $ 27.93   $ 27.73   $ 27.18   $ 26.64  Tangible equity to tangible assets   9.51 %   9.45 %   9.24 %   8.91 %   8.31 %

WAFD, INC. AND SUBSIDIARIES NON-GAAP MEASURES (UNAUDITED)  Three Months Ended Average Tangible Measures  March 31,
2025  December 31,
2024  September 30,
2024  June 30, 
2024  March 31,
2024 (Unaudited - In thousands, except for ratio data) Average shareholders' equity - GAAP  $ 3,039,021   $ 3,015,197   $ 2,996,093   $ 2,947,056   $ 2,638,483  Less average preferred stock

- GAAP   300,000    300,000    300,000    300,000    300,000  Less average intangible assets - GAAP   448,272    447,754    451,204    453,142    360,251  Average tangible common equity  $ 2,290,749   $ 2,267,443   $ 2,244,889   $ 2,193,914   $ 1,978,232   Average Assets - GAAP  $ 27,371,320   $ 27,504,576   $ 28,000,482   $ 29,703,337   $ 24,907,376  Less average intangible assets - GAAP   448,272    447,754    451,204    453,142    360,251  Average tangible assets  $ 26,923,048   $ 27,056,822   $ 27,549,278   $ 29,250,195   $ 24,547,125   Average Tangible Metrics  Net income - GAAP   56,252    47,267    61,140    64,560    15,888  Net income available to common shareholders' - GAAP   52,596    43,611    57,484    60,904    12,232  Return on tangible common equity   9.18 %   7.69 %   10.24 %   11.10 %   2.47 % Return on tangible assets   0.84 %   0.70 %   0.89 %   0.88 %   0.26 %

WAFD, INC. AND SUBSIDIARIES NON-GAAP MEASURES (UNAUDITED)  Three Months Ended Net Income Adjusted for Acquisition Expenses and Other Non-Operating Items  March 31,
2025  December 31,
2024  September 30,
2024  June 30, 
2024  March 31,
2024 (Unaudited - In thousands, except for ratio data) Interest income  LBC Hedge Valuation Adj  $ —   $ 3,933   $ —   $ —   $ —   Non-interest income  Distribution received on LBC equity method investment  $ (257 )  $ (279 )  $ (288 )  $ (299 )  $ (287 ) (Gain)Loss on WaFd Bank equity method investment   (155 )   48    (896 )   (748 )   2,195  Total non-interest income  $ (412 )  $ (231 )  $ (1,184 )  $ (1,047 )  $ 1,908   Non-interest expense  Acquisition-related expenses  $ —   $ 239   $ (1,602 )  $ 2,285   $ 25,120  Non-operating expenses:  Restructuring Charges   —    5,390    —    —    —  FDIC Special Assessment   —    —    (216 )   —    1,800  Legal and Compliance   —    —    (182 )   —    3,000  Charitable Donation   —    —    —    —    2,000  —    5,390    (398 )   —    6,800  Total non-interest expense  $ —   $ 5,629   $ (2,000 )  $ 2,285   $ 31,920   Net Income - GAAP  $ 56,252   $ 47,267   $ 61,140   $ 64,560   $ 15,888  Preliminary ACL provision on LBC loans   —    —    —    —    16,000  Interest income adjustments   —    3,933    —    —    —  Non-interest income adjustments   (412 )   (231 )   (1,184 )   (1,047 )   1,908  Non-interest expense adjustments   —    5,629    (2,000 )   2,285    31,920  REO adjustments   199    (429 )   83    124    1,315  Income tax adjustment   47    (1,918 )   751    (299 )   (12,274 ) Net Income - non-GAAP  $ 56,086   $ 54,251   $ 58,790   $ 65,623   $ 54,757   Dividend on preferred stock   3,656    3,656    3,656    3,656    3,656  Net Income available to common shareholders' - non-GAAP  $ 52,430   $ 50,595   $ 55,134   $ 61,967   $ 51,101   Basic weighted average number   81,061,206    81,294,227    81,208,683    81,374,811    70,129,072  Diluted weighted average   81,105,536    81,401,599    81,353,644    81,393,708    70,164,558   Basic EPS - non-GAAP  $ 0.65   $ 0.62   $ 0.68   $ 0.76   $ 0.73  Diluted EPS - non-GAAP   0.65    0.62    0.68    0.76    0.73

WAFD, INC. AND SUBSIDIARIES NON-GAAP MEASURES (UNAUDITED)  Three Months Ended Adjusted Efficiency Ratio  March 31,
2025  December 31,
2024  September 30,
2024  June 30, 
2024  March 31,
2024 (Unaudited - In thousands, except for ratio data) Efficiency ratio - GAAP  58.3 %  65.0 %  57.2 %  56.6 %  77.7 %  Net interest income - GAAP  $ 160,910   $ 155,431   $ 172,812   $ 177,186   $ 158,597  Total interest income adjustments  —   3,933   —   —   —  Net interest income - non-GAAP  $ 160,910   $ 159,364   $ 172,812   $ 177,186   $ 158,597   Non-interest expense - GAAP  $ 104,832   $ 111,311   $ 107,941   $ 110,079   $ 133,712  Less merger related expenses  —   239   (1,602 )  2,285   25,120  Less non-operating expenses  —   5,390   (398 )  —   6,800  Non-interest Expenses -

non-GAAP  $ 104,832   $ 105,682   $ 109,941   $ 107,794   $ 101,792   Non-interest income - GAAP  $ 18,881   $ 15,702   $ 15,878   $ 17,255   $ 13,392  Total other income  (412 )  (231 )  (1,184 )  (1,047 )  1,908  Non-interest income -

non-GAAP  $ 18,469   $ 15,471   $ 14,694   $ 16,208   $ 15,300   Net Interest Income -

non-GAAP  $ 160,910   $ 159,364   $ 172,812   $ 177,186   $ 158,597  Non-interest income -

non-GAAP  18,469   15,471   14,694   16,208   15,300  Total Income - non-GAAP  $ 179,379   $ 174,835   $ 187,506   $ 193,394   $ 173,897   Adjusted Efficiency Ratio  58.4 %  60.4 %  58.6 %  55.7 %  58.5 %

WAFD, INC. AND SUBSIDIARIES NON-GAAP MEASURES (UNAUDITED)  Three Months Ended Adjusted ROA and ROE  March 31,
2025  December 31,
2024  September 30,
2024  June 30, 
2024  March 31,
2024 (Unaudited - In thousands, except for ratio data) Reported:  Net Income - GAAP  $ 56,252   $ 47,267   $ 61,140   $ 64,560   $ 15,888  Net income available to common shareholders' - GAAP  $ 52,596   $ 43,611   $ 57,484   $ 60,904   $ 12,232   Average Assets   27,371,320    27,504,576    28,000,482    29,703,337    24,907,376  Return on Assets   0.82 %   0.69 %   0.87 %   0.87 %   0.26 %  Average Common Equity  $ 2,739,021   $ 2,715,197   $ 2,696,093   $ 2,647,056   $ 2,338,483  Return on common equity   7.68 %   6.42 %   8.53 %   9.20 %   2.09 %  Adjusted:  Net Income - non-GAAP  $ 56,086   $ 54,251   $ 58,790   $ 65,623   $ 54,757  Net income available to common shareholders' - non-GAAP  $ 52,430   $ 50,595   $ 55,134   $ 61,967   $ 51,101   Average Assets   27,371,320    27,504,576    28,000,482    29,703,337    24,907,376  Adjusted Return on Assets   0.82 %   0.79 %   0.84 %   0.88 %   0.88 %  Average Common Equity   2,739,021    2,715,197    2,696,093    2,647,056    2,338,483  Adjusted Return on common equity   7.66 %   7.45 %   8.18 %   9.36 %   8.74 %

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250411165329/en/

Contacts

WaFd, Inc.
425 Pike Street, Seattle, WA 98101
Brad Goode, SVP, Chief Marketing Officer
206-626-8178
[email protected]

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