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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________
FORM 8-K
____________________________________
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 22, 2024
 ____________________________________

WAFD, INC.
(Exact name of registrant as specified in its charter)
 ____________________________________
Washington
 001-34654 91-1661606
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification No.)
425 Pike Street
Seattle
Washington
98101
(Address of Principal Executive Offices)
(Zip Code)
Registrant’s telephone number, including area code (206) 624-7930
Not Applicable
(Former name or former address, if changed since last report)
____________________________________
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Trading Symbol Name of each exchange on which registered
Common Stock, $1.00 par value per share WAFD NASDAQ Stock Market
Depositary Shares, Each Representing a 1/40th Interest in a Share of 4.875% Fixed Rate Series A Non-Cumulative Perpetual Preferred Stock WAFDP NASDAQ Stock Market



Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐




Item 2.02 Results of Operations and Financial Condition

On April 22, 2024, WaFd, Inc. (the "Company") announced by press release its earnings for the quarter ended March 31, 2024. A copy of the press release is attached to this filing as Exhibit 99.1. A copy of the March 31, 2024 Fact Sheet, which presents certain detailed financial information about the Company, is attached as Exhibit 99.2. This information is being furnished under Item 2.02 (Results of Operations and Financial Condition) of Form 8-K.

Item 9.01 Financial Statements and Exhibits

(a) Not applicable
(b) Not applicable
(c) Not applicable
(d) The following exhibits are being furnished herewith:

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, 2023 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. In particular, any forward-looking statements 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, high unemployment rates, inflationary pressures, a potential recession, the monetary policies of the Federal Reserve, and slowdowns in economic growth; (iii) risks related to the integration of the operations of Luther Burbank Corporation; (iv) financial stress on borrowers (consumers and businesses) as a result of higher interest rates or an uncertain economic environment; (v) changes in deposit flows or loan demands; (vi) the impact of bank failures or adverse developments at other banks and related negative press about regional banks and the banking industry in general; (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) global economic trends, including developments related to Ukraine and Russia, and the evolving conflict in Israel and Gaza, and related negative financial impacts on our borrowers; (ix) litigation risks resulting in significant expenses, losses and reputational damage; (x) our ability to identify and address cyber-security risks, including security breaches, “denial of service attacks,” “hacking” and identity theft; and (ix) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services.
3

4

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
April 23, 2024 WAFD, INC.
By: /s/ KELLI J. HOLZ
Kelli J. Holz
Executive Vice President
and Chief Financial Officer

5
EX-99.1 2 exhibit991_march2024earnin.htm EX-99.1 Document
Exhibit 99.1

imagea.jpg
Monday, April 22, 2024
FOR IMMEDIATE RELEASE


WaFd Reports Second Quarter Fiscal 2024 Results Following Completion of Merger of Luther Burbank Corporation

SEATTLE, WASHINGTON – WaFd, Inc. (Nasdaq: WAFD) (the "Company"), parent company of Washington Federal Bank ("WaFd Bank" or the "Bank"), today announced quarterly earnings after successfully completing the merger of California-based Luther Burbank Corporation ("LBC").
Earnings for the quarter ended March 31, 2024 were $15,888,000, a decrease of 73% from net earnings of $58,453,000 for the quarter ended December 31, 2023 and a decrease of 76% from net earnings of $65,934,000 for the quarter ended March 31, 2023. After the effect of dividends on preferred stock, net income available for common shareholders was $0.17 per diluted share for the quarter ended March 31, 2024, compared to $0.85 per diluted share for the quarter ended December 31, 2023, a $0.68 or 80% decrease, and $0.95 per diluted share for the quarter ended March 31, 2023, a $0.78 or 82% decrease in fully diluted earnings per common share. For the quarter ended March 31, 2024, return on common shareholders' equity was 2.09% and return on assets was 0.26%. These results reflect merger-related costs and certain non-operating expenses of $51.1 million for the quarter. Adjusted for these expenses, return on common shareholders' equity for the quarter ended March 31, 2024 was 8.7% compared to 10.21% for the quarter ended December 31, 2023 and 12.01% for the quarter ended March 31, 2023. Adjusted, return on assets for the quarter ended March 31, 2024 was 0.9% compared to 1.0% for the previous quarter and 1.2% for the same quarter in the prior year. For a reconciliation, see the Non-GAAP Financial Measures section below.
President and CEO Brent Beardall commented, "In the future, when we look back at the acquisition of Luther Burbank, we will see the addition of this $8 billion asset franchise in California as a transformational event for WaFd Bank. As expected, there is a lot of noise in the quarter so we have provided disclosures showing what earnings would have been without the merger costs and certain non-operating income and expenses.
1


Absent these items, net income would have been $54.8 million, a 6% decrease from the December quarter. While the continuation of the challenging interest rate environment has made strategic execution more difficult, we remain excited by the potential of this purchase.
I am especially proud of how quickly we were able to complete this acquisition once regulatory approval was granted. We closed on the acquisition of LBC on February 29, 2024. The next day, Friday March 1st, we started the systems conversions and branch re-branding and completed the work just two days later, opening our doors March 4th as WaFd branches operating on WaFd's core systems. To my knowledge this was one of, if not the fastest close-to-conversion in modern history for U.S. banking for transactions over $1 billion. Speed only matters if you are able to execute with quality and our teams, especially our front-line bankers in the California branches and the support teams in operations and technology, were remarkably successful executing the conversion plan. The best indicator of this success is the behavior of the impacted clients. From conversion until quarter end, deposit accounts are down only 1.1%.
A lot has changed since we announced the acquisition of LBC in November 2022. Importantly, we have identified a portion of the LBC multifamily loan portfolio (up to $3.2 billion) that would be attractive to potential buyers and have initiated a program to sell these loans. We have engaged a third party to facilitate this process. There has been a lot of interest in these loans, we are working through the bidding process and expect to execute on the sale in the next few months. We are mindful of the benefits of selling these loans, the resulting liquidity and the options going forward, whether to pay down debt, originate new loans or a combination of both. Ultimately, the amount of loans sold is dependent on price and certainty for execution.
An acquisition of the size of LBC is meaningful for WaFd; their assets were 34% of standalone WaFd assets. Why did we do it? Why take the risk? We believe this acquisition will accrue to the benefit of our clients, our communities, our shareholders and our employees. Now that it is substantially complete, we believe common shareholders will experience earnings per share accretion of 8% in fiscal 2025 and 16% in fiscal 2026. These estimates factor in the redeployment of the funds received in the potential loan sale into higher yielding assets.
2


Projections that lead to those returns are contained in the Non-GAAP Financial Measures section below.
We are grateful to be one of the strongest regional banks in the now nine western states in which we operate. Our value proposition is straightforward, we provide relationship banking to our clients through a platform that is large enough to be meaningful but small enough to be nimble and responsive to our clients. We are more optimistic today about our future prospects than any time in my 24 years at WaFd.
There have been significant changes in interest rates and market values of assets since the merger announcement and the table below calls out what we were expecting in November of 2022 compared to what we are expecting today."
At Announcement Nov 2022 Estimate as of March 31, 2024
EPS Accretion 7.9% accretion subsequent full fiscal year 8% accretion for FY 2025, subsequent full fiscal year
Cost savings 25% of LBC's 2023 non-interest expense. Phased in 50% in the first year. 45% or $31 million immediate savings
Merger costs - pre tax $37 million Under $30 million
Discount on LBC loans $202 million $472 million
Merger consideration value $654 million $466 million
Goodwill $108 million $106 million
December 31, 2023 March 31, 2024
Tangible Common Equity Per Share* $28.05 $26.64
*Metric is a non-GAAP Financial Measure. See page 13 for additional information on our use of Non-GAAP Financial Measures.

As a result of the merger on February 29, 2024, the Company's balances as of March 31, 2024 reflect the newly combined entity and the activity for the quarter then ended include one month of LBC-related activity. Given this, the Company's financial results are not directly comparable to prior reported periods. Total assets were $30.1 billion as of March 31, 2024, compared to $22.5 billion at September 30, 2023, primarily due to the addition of $7.7 billion of LBC assets at fair value on February 29, 2024.
3


Net loans held for investment increased by $3.3 billion, or 19.0%, from September 30, 2023 to March 31, 2024 reflecting the addition of LBC loans with a fair value of $3.2 billion. The fair value of total loans obtained in the merger was $6.2 billion. The Company has identified approximately $3.2 billion of the acquired multifamily loans to sell and has classified these as Loans Held for Sale at fair value.
Cash and cash equivalents as of March 31, 2024 increased by $525.1 million, or 53.5%, since September 30, 2023. Investment securities increased by $477.3 million during the quarter due to the addition of $529.2 million in securities obtained in the merger.
Customer deposits totaled $21.3 billion as of March 31, 2024, an increase of 32.8% since September 30, 2023 due to $5.6 billion in deposits obtained in the merger. Transaction accounts increased by $1.6 billion or 14.6% during that period, while time deposits increased $3.7 billion or 69.7% as 66% of the LBC deposit portfolio was time deposits. As a result of this mix, the percentage of the Company’s transaction accounts at March 31, 2024 decreased to 57.8% compared to 67.0% at September 30, 2023. Core deposits, defined as all transaction accounts and time deposits less than $250,000, totaled 82.1% of deposits at March 31, 2024. Deposits that are uninsured or not collateralized were 25.5% as of March 31, 2024, a slight decrease from 25.7% as of September 30, 2023.
Borrowings totaled $5.3 billion as of March 31, 2024, up from $3.7 billion at September 30, 2023 with $1.4 billion attributable to the merger. The Company also assumed additional debt in connection with the merger in the form of approximately $50 million in floating rate junior subordinated debentures, due June 2036 and June 2037, and $94 million in 6.5% senior unsecured term notes maturing September 30, 2024. The effective weighted average interest rate of the combined borrowings and debt was 4.48% as of March 31, 2024, compared to 3.98% at September 30, 2023 as a result of adding the LBC borrowings.
The Company had loan originations of $0.8 billion for the second fiscal quarter of 2024, compared to $1.0 billion of originations in the same quarter one year ago. Offsetting loan originations in each of these quarters were loan repayments of $1.0 billion and $1.1 billion, respectively.
4


The Bank has intentionally slowed new loan production to temper net loan growth. Commercial loans represented 77% of all loan originations during the second fiscal quarter of 2024 and consumer loans accounted for the remaining 23%. Commercial loans are viewed by the Bank as preferable; they generally have floating interest rates and shorter durations. The weighted average interest rate on the loan portfolio was 5.02% as of March 31, 2024, a decrease from 5.22% as of September 30, 2023, due primarily to adding the lower yielding LBC portfolio.
Credit quality continues to be monitored closely in light of the shifting economic and monetary environment. As of March 31, 2024, non-performing assets were $68 million, or 0.2% of total assets, from $58 million, or 0.3%, at September 30, 2023. The percentage of delinquent loans was 0.4% of total loans for both March 31, 2024 and September 30, 2023 as a result of the increased loan balance. The following table shows the effect the merger had on the change in non-performing assets and delinquencies.
Non-Performing Assets Delinquencies
(In thousands)
Balance at September 30, 2023 $ 57,924  $ 63,315 
Decrease in balance (2,536) (5,258)
Balance at December 31, 2023 55,388  58,057 
Merger-related additions 13,487  23,258 
Decrease in balance (514) (5,267)
Balance at March 31, 2024 $ 68,361  $ 76,048 

The allowance for credit losses including the reserve for unfunded commitments ("ACL") totaled $225 million as of March 31, 2024, and was 1.00% of gross loans outstanding, as compared to $202 million, or 1.04% of gross loans outstanding, as of September 30, 2023. The increase in the ACL reflects the $16.0 million provision recorded on LBC loans held for investment that are not credit deteriorated and the $7.4 million estimated lifetime credit losses for those that are considered purchased credit deteriorated ("PCD"). Net charge-offs were $146,000 for the second fiscal quarter of 2024, compared to net charge-offs of $6 million for the prior year same quarter.
5


The Company paid quarterly dividends on Series A preferred stock on January 15, 2024 and April 15, 2024. On March 8, 2024, the Company paid a regular cash dividend on common stock of $0.26 per share, which represented the 164th consecutive quarterly cash dividend. During the quarter, the Company repurchased 7,837 shares of common stock at a weighted average price of $30.38 per share and has authorization to repurchase 1,853,453 additional shares. Tangible common shareholders' equity per share decreased by $1.41, or 5.0%, to $26.64 since September 30, 2023. Over the past 12 months, tangible book value decreased per share by $0.21 or 0.8%. The ratio of total tangible shareholders' equity to tangible assets decreased to 8.31% as of March 31, 2024. See the reconciliation for these non-GAAP measures starting on page 13.
Net interest income was $159 million for the second fiscal quarter of 2024, a decrease of $16.4 million or 9.4% from the same quarter in the prior year. The decrease in net interest income was primarily due to the 129 basis point increase in the average rate paid on interest-bearing liabilities outpacing the 38 basis point increase in the average rate earned on interest-earning assets. Net interest income also increased by $6.4 million compared to the quarter ended December 31, 2023 due to a larger increase in the average interest earning assets than the increase in interest bearing liabilities as a result of the merger. Net interest margin was 2.73% in the second fiscal quarter of 2024 compared to 2.91% for the quarter ended December 31, 2023 and 3.51% for the prior year quarter.
Total other income was $13.4 million for the second fiscal quarter of 2024 compared to $10.1 million in the prior year same quarter. The increase is primarily due to recording $1.8 million less unrealized losses for certain equity method investments in the current quarter compared to the quarter ended March 31, 2023. Small increases in insurance agency commissions recognized by the WAFD Insurance Group and increased fees earned as a result of the merger account for the remaining change.
Total other expense was $133.7 million in the second fiscal quarter of 2024, an increase of $36.8 million, or 38.0%, from the prior year's quarter. Compensation expense increased as a result of $19 million in merger-related retention, severance and change-in-control expenses combined with a larger post-merger workforce. FDIC premiums increased $3.9 million compared to the same period last year and included a $1.8 million expense for an FDIC special assessment.
6


Total other expense also increased by $10.9 million compared to the same quarter in the prior year. This is largely due to $5.9 million in merger related expenses in the quarter as well as $5 million in non-operating expenses including a $2 million charitable donation and $3 million in accruals related to legal and compliance related items.
The Company recorded a provision for credit losses of $16.0 million in the second fiscal quarter of 2024, compared to a provision for credit losses of $3.5 million in the same quarter of fiscal 2023. The provision for loan losses in the quarter ended March 31, 2024 represents the preliminary lifetime loss estimate for the non-PCD loans obtained in the merger.
The Company’s efficiency ratio in the second fiscal quarter of 2024 was 58.5% (as adjusted, see Non-GAAP Financial Measures below), compared to 58.0% in the prior quarter and 52.3% for the same period one year ago.
Income tax expense totaled $5.1 million for the second fiscal quarter of 2024, as compared to $18.6 million for the prior year same quarter. The effective tax rate for the quarter ended March 31, 2024 was 24.21% compared to 20.81% for the year ended September 30, 2023. Although the Company’s effective tax rate may vary from the statutory rate mainly due to state taxes, tax-exempt income and tax-credit investments, much of the change in the current quarter resulted specifically from the merger and consideration of California State and Local taxes.
WaFd Bank is headquartered in Seattle, Washington, and has 210 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.
7

WAFD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
March 31, 2024 September 30, 2023
  (In thousands, except share and ratio data)
ASSETS
Cash and cash equivalents $ 1,505,771  $ 980,649 
Available-for-sale securities, at fair value 2,438,114  1,995,097 
Held-to-maturity securities, at amortized cost 457,882  423,586 
Loans receivable, net of allowance for loan losses of $201,577 and $177,207 20,795,259  17,476,550 
Loans held for sale 2,993,658  — 
Interest receivable 115,484  87,003 
Premises and equipment, net 243,465  237,011 
Real estate owned 4,245  4,149 
FHLB stock 160,817  126,820 
Bank owned life insurance 264,043  242,919 
Intangible assets, including goodwill of $411,401 and $304,750 453,539  310,619 
Federal and state income tax assets, net 146,833  8,479 
Other assets 561,178  581,793 
$ 30,140,288  $ 22,474,675 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Transaction deposits $ 12,338,862  $ 10,765,313 
Time deposits 9,000,911  5,305,016 
Total customer deposits 21,339,773  16,070,329 
Borrowings 5,345,518  3,650,000 
Junior subordinated deferrable debentures 50,254  — 
Senior debt
$95,000 face amount, 6.5% interest rate, due September 30, 2024 93,729  — 
Advance payments by borrowers for taxes and insurance 49,350  52,550 
Accrued expenses and other liabilities 339,758  275,370 
27,218,382  20,048,249 
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; 153,834,612 and 136,466,579 shares issued; 81,405,391 and 64,736,916 shares outstanding 153,835  136,467 
Additional paid-in capital 2,143,343  1,687,634 
Accumulated other comprehensive income (loss), net of taxes 51,935  46,921 
Treasury stock, at cost; 72,429,221 and 71,729,663 shares (1,629,512) (1,612,345)
Retained earnings 1,902,305  1,867,749 
2,921,906  2,426,426 
$ 30,140,288  $ 22,474,675 
CONSOLIDATED FINANCIAL HIGHLIGHTS
Common shareholders' equity per share $ 32.21  $ 32.85 
Tangible common shareholders' equity per share1
 26.64  28.05 
Shareholders' equity to total assets 9.69  % 10.80  %
Tangible shareholders' equity to tangible assets1
 8.31  % 9.55  %
Tangible shareholders' equity + allowance for credit losses to tangible assets1
 8.99  % 10.35  %
1Metric is a non-GAAP Financial Measure. See page 13 for additional information on our use of Non-GAAP Financial Measures.

8

WAFD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
As of
SUMMARY FINANCIAL DATA March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023
(In thousands, except share and ratio data)
Cash $ 1,505,771  $ 1,144,774  $ 980,649  $ 1,139,643  $ 1,118,544 
Loans receivable, net 20,795,259  17,584,622  17,476,550  17,384,188  17,271,906 
Allowance for credit losses ("ACL") 225,077  201,820  201,707  204,569  205,920 
Loans held for sale 2,993,658  —  —  —  — 
Available-for-sale securities, at fair value 2,438,114  2,018,445  1,995,097  2,036,233  2,006,286 
Held-to-maturity securities, at amortized cost 457,882  415,079  423,586  434,172  445,222 
Total assets 30,140,288  22,640,122  22,474,675  22,552,588  22,325,211 
Transaction deposits 12,338,862  10,658,064  10,765,313  11,256,575  11,880,343 
Time deposits 9,000,911  5,380,723  5,305,016  4,863,849  3,980,605 
Borrowings 5,489,501  3,875,000  3,650,000  3,750,000  3,800,000 
Total shareholders' equity 2,921,906  2,452,004  2,426,426  2,394,066  2,375,117 
FINANCIAL HIGHLIGHTS
Common shareholders' equity per share $ 32.21  $ 33.49  $ 32.85  $ 32.36  $ 31.54 
Tangible common shareholders' equity per share2
 $ 26.64  $ 28.65  $ 28.05  $ 27.58  $ 26.85 
Shareholders' equity to total assets 9.69  % 10.83  % 10.80  % 10.62  % 10.64  %
Tangible shareholders' equity to tangible assets2
 8.31  % 9.59  % 9.55  % 9.37  % 9.39  %
Tangible shareholders' equity + ACL to tangible assets2
 8.99  % 10.39  % 10.35  % 10.17  % 10.19  %
Common shares outstanding 81,405,391  64,254,700  64,736,916  64,721,190  65,793,099 
Preferred shares outstanding 300,000  300,000  300,000  300,000  300,000 
Loans to customer deposits 1
 97.45  % 109.64  % 108.75  % 107.84  % 108.90  %
CREDIT QUALITY1
ACL to gross loans 1.00  % 1.04  % 1.03  % 1.03  % 1.02  %
ACL to non-accrual loans 370.16  % 445.93  % 400.04  % 370.09  % 595.04  %
Non-accrual loans to net loans 0.29  % 0.26  % 0.29  % 0.32  % 0.20  %
Non-accrual loans $ 60,806  $ 45,258  $ 50,422  $ 55,276  $ 34,606 
Non-performing assets to total assets 0.23  % 0.24  % 0.26  % 0.30  % 0.21  %
Non-performing assets $ 68,361  $ 55,388  $ 57,924  $ 67,000  $ 46,785 
Criticized loans to net loans 2.59  % 2.27  % 2.33  % 2.42  % 2.46  %
Criticized loans $ 537,802  $ 399,895  $ 407,086  $ 421,507  $ 424,539 
Substandard loans to net loans 1.48  % 1.74  % 1.75  % 1.71  % 1.67  %
Substandard loans $ 307,412  $ 305,606  $ 305,179  $ 296,541  $ 289,259 
1Metrics include only loans held for investment. Loans held for sale are not included.
2Metric is a non-GAAP Measure. See page 13 for additional information on our use of Non-GAAP Financial Measures.
9

WAFD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

  Three Months Ended March 31, Six Months Ended March 31,
  2024 2023 2024 2023
  (In thousands, except share and ratio data)
INTEREST INCOME
Loans receivable $ 274,341  $ 222,957  $ 520,133  $ 426,903 
Mortgage-backed securities 12,905  10,422  24,171  21,035 
Investment securities and cash equivalents 31,580  21,967  61,368  40,827 
318,826  255,346  605,672  488,765 
INTEREST EXPENSE
Customer accounts 116,164  52,123  212,835  83,769 
Borrowings, senior debt and junior subordinated debentures 44,065  28,185  82,003  47,159 
160,229  80,308  294,838  130,928 
Net interest income 158,597  175,038  310,834  357,837 
Provision (release) for credit losses 16,000  3,500  16,000  6,000 
Net interest income after provision (release) 142,597  171,538  294,834  351,837 
OTHER INCOME
Gain (loss) on sale of investment securities 90  —  171  — 
Gain (loss) on termination of hedging derivatives 6  26  115  26 
Loan fee income 550  652  1,394  2,154 
Deposit fee income 6,698  6,188  13,500  12,541 
Other income 6,048  3,206  12,379  9,375 
13,392  10,072  27,559  24,096 
OTHER EXPENSE
Compensation and benefits 73,155  51,444  122,996  100,514 
Occupancy 10,918  10,918  20,289  21,020 
FDIC insurance premiums 7,900  4,000  14,470  7,675 
Product delivery 5,581  5,316  11,590  9,937 
Information technology 12,883  12,785  25,749  25,114 
Other expense 23,275  12,418  35,158  24,899 
133,712  96,881  230,252  189,159 
Gain (loss) on real estate owned, net (1,315) (199) 511  (311)
Income before income taxes 20,962  84,530  92,652  186,463 
Income tax provision 5,074  18,596  18,311  41,020 
Net income 15,888  65,934  74,341  145,443 
Dividends on preferred stock 3,656  3,656  7,312  7,312 
Net income available to common shareholders $ 12,232  $ 62,278  $ 67,029  $ 138,131 
PER SHARE DATA
Basic earnings per common share $ 0.17  $ 0.95  $ 1.00  $ 2.11 
Diluted earnings per common share 0.17  0.95  1.00  2.11 
Cash dividends per common share 0.26  0.25  0.51  0.49 
Basic weighted average shares outstanding 70,129,072  65,511,131  67,197,352  65,425,623 
Diluted weighted average shares outstanding 70,164,558  65,551,185  67,225,099  65,510,275 
PERFORMANCE RATIOS
Return on average assets 0.26  % 1.21  % 0.63  % 1.36  %
Return on average common equity 2.09  12.01  5.98  13.55 
Net interest margin 2.73  3.51  2.82  3.60 
Efficiency ratio 77.74  52.34  68.04  49.53 


10

WAFD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)


  Three Months Ended
  March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023
  (In thousands, except share and ratio data)
INTEREST INCOME
Loans receivable $ 274,341  $ 245,792  $ 240,998  $ 232,167  $ 222,957 
Mortgage-backed securities 12,905  11,266  11,695  10,454  10,422 
Investment securities and cash equivalents 31,580  29,788  29,017  29,859  21,967 
318,826  286,846  281,710  272,480  255,346 
INTEREST EXPENSE
Customer accounts 116,164  96,671  83,402  70,062  52,123 
Borrowings, senior debt and jr. subordinated debentures 44,065  37,938  34,611  33,718  28,185 
160,229  134,609  118,013  103,780  80,308 
Net interest income 158,597  152,237  163,697  168,700  175,038 
Provision (release) for credit losses 16,000  —  26,500  9,000  3,500 
Net interest income after provision (release) 142,597  152,237  137,197  159,700  171,538 
OTHER INCOME
Gain (loss) on sale of investment securities 90  81  33  —  — 
Gain (loss) on termination of hedging derivatives 6  109  33  (926) 26 
Loan fee income 550  844  731  1,000  652 
Deposit fee income 6,698  6,802  6,849  6,660  6,188 
Other income 6,048  6,331  6,688  7,037  3,206 
13,392  14,167  14,334  13,771  10,072 
OTHER EXPENSE
Compensation and benefits 73,155  49,841  45,564  50,456  51,444 
Occupancy 10,918  9,371  10,115  10,444  10,918 
FDIC insurance premiums 7,900  6,570  7,000  5,350  4,000 
Product delivery 5,581  6,009  5,819  5,217  5,316 
Information technology 12,883  12,866  12,672  11,661  12,785 
Other expense 23,275  11,883  11,007  11,571  12,418 
133,712  96,540  92,177  94,699  96,881 
Gain (loss) on real estate owned, net (1,315) 1,826  (235) 722  (199)
Income before income taxes 20,962  71,690  59,119  79,494  84,530 
Income tax provision 5,074  13,237  8,911  17,719  18,596 
Net income 15,888  58,453  50,208  61,775  65,934 
Dividends on preferred stock 3,656  3,656  3,656  3,656  3,656 
Net income available to common shareholders $ 12,232  $ 54,797  $ 46,552  $ 58,119  $ 62,278 
PER SHARE DATA
Basic earnings per common share $ 0.17  $ 0.85  $ 0.72  $ 0.89  $ 0.95 
Diluted earnings per common share 0.17  0.85  0.72  0.89  0.95 
Cash dividends per common share 0.26  0.25  0.25  0.25  0.25 
Basic weighted average shares outstanding 70,129,072  64,297,499  64,729,006  65,194,880  65,511,131 
Diluted weighted average shares outstanding 70,164,558  64,312,110  64,736,864  65,212,846  65,551,185 
PERFORMANCE RATIOS
Return on average assets 0.26  % 1.04  % 0.90  % 1.12  % 1.21  %
Return on average common equity 2.09  10.21  8.73  11.09  12.01 
Net interest margin 2.73  2.91  3.13  3.27  3.51 
Efficiency ratio 77.74  58.02  51.78  51.90  52.34 
11


Non-GAAP Financial Measures and Management Projections
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, 2024 September 30, 2023
(Unaudited - In thousands, except for ratio data)
Shareholders equity - GAAP $ 2,921,906  $ 2,426,426 
Less intangible assets - GAAP 453,539  310,619 
Tangible shareholders' equity $ 2,468,367  $ 2,115,807 
Less preferred stock - GAAP 300,000  300,000 
Tangible common shareholders' equity $ 2,168,367  $ 1,815,807 
Total assets - GAAP $ 30,140,288  $ 22,474,675 
Less intangible assets - GAAP 453,539  310,619 
Tangible assets $ 29,686,749  $ 22,164,056 
Tangible Metrics
Common shares outstanding - GAAP 81,405,391  64,736,916 
Tangible common equity per share $ 26.64  $ 28.05 
Tangible equity to tangible assets 8.31  % 9.55  %
Allowance for credit losses $ 201,577  $ 179,320 
Tangible shareholders' equity + allowance for credit losses to tangible assets 8.99  % 10.35  %
12


Net Income Adjusted for Merger Expenses and Other Non-Operating Items Three Months Ended March 31, 2024 Three Months
 Ended December 31, 2023
(Unaudited - In thousands, except for ratio data)
Other income adjustments
Distribution received on LBC equity method investment $ (287) $ — 
Loss on WaFd Bank equity method investment 2,195  693 
Total other income adjustments $ 1,908  $ 693 
Other Expense adjustments
Merger related expenses $ 25,120  $ 516 
Select non-operating expenses:
   FDIC Special Assessment 1,800  500 
   Legal and Compliance Accruals 3,000  — 
   Charitable Donation 2,000  — 
6,800  500 
Total other expense adjustments $ 31,920  $ 1,016 
Net Income - GAAP $ 15,888  $ 58,453 
Preliminary ACL provision on LBC loans 16,000  — 
Other income adjustments 1,908  693 
Other expense adjustments 31,920  1,016 
REO adjustments 1,315  (1,826)
Income tax adjustment (12,274) 22 
Net Income - non-GAAP $ 54,757  $ 58,358 
Dividend on preferred stock $ 3,656  $ 3,656 
Net Income available to common shareholders - non-GAAP $ 51,101  $ 54,702 
Basic weighted average number of shares outstanding - GAAP 70,129,072 64,297,499
Diluted weighted average number of shares outstanding - GAAP 70,164,558 64,312,110
Basic EPS - non-GAAP 0.73 0.84
Diluted EPS - non-GAAP 0.73 0.84

13


Adjusted Efficiency Ratio Three Months Ended March 31, 2024 Three Months
 Ended December 31, 2023
(Unaudited - In thousands, except for ratio data)
Efficiency ratio - GAAP 77.7  % 58.0  %
Other expense - GAAP $ 133,712  $ 96,540 
Deduct merger related expenses 25,120  516 
Deduct select non-operating expenses 6,800  500 
Other Expenses - non-GAAP $ 101,792  $ 95,524 
Other income - GAAP $ 13,392  $ 14,167 
Total other income adjustments 1,908  693 
Other income - non-GAAP $ 15,300  $ 14,860 
Net Interest Income - GAAP $ 158,597  $ 152,237 
Other income - non-GAAP 15,300  14,860 
Total Income - non-GAAP $ 173,897  $ 167,097 
Adjusted Efficiency Ratio 58.5  % 57.2  %
Adjusted ROA and ROE Three Months Ended March 31, 2024 Three Months
 Ended December 31, 2023
(Unaudited - In thousands, except for ratio data)
Net Income - GAAP $ 15,888  $ 58,453 
Net income available to common shareholders - GAAP $ 12,232  $ 54,797 
Average Assets 24,907,376 22,381,459
Return on Assets 0.26  % 1.04  %
Average Common Equity 2,338,483 2,147,580
Return on common equity 2.09  % 10.21  %
Net Income - non-GAAP $ 54,756  $ 58,358 
Net income available to common shareholders - non-GAAP $ 51,100  $ 54,702 
Average Assets 24,907,376 22,381,459
Adjusted Return on Assets 0.88  % 1.04  %
Average Common Equity 2,338,483 2,147,580
Adjusted Return on common equity 8.74  % 10.19  %
14


The Company has presented certain forward-looking statements above. The following unaudited table presents a static projection to arrive at estimates for the accretive effect of LBC on the combined entity in fiscal 2025. The projection assumes no changes other than the effect of the redeployment funds on interest-earning assets as a result a potential loan sale and is not intended to represent a full financial projection for fiscal 2025.
2025 Post Merger Projections LBC WAFD
Estimated Balance Estimated Yield Projected Interest Estimated Balance Estimated Yield Projected Interest Combined Earnings
(Unaudited - In thousands, except for per share and ratio data)
Interest Earning Assets $ 7,147,280  6.04  % $ 431,435  $ 21,204,221  5.45  % $ 1,155,981  $ 1,587,416 
Interest Bearing Liabilities 6,963,185  4.42  % 307,911  17,384,079  3.14  % 545,615  853,526 
Total estimated net interest income 184,095  123,524  3,820,142  610,366  733,890 
Estimated net noninterest income/expense/provision 40,000  360,000  400,000 
Pre Tax Income 83,524  250,366  333,890 
Income taxes 20,046  60,088  80,134 
Net income 63,478  190,278  253,756 
Dividends on preferred stock —  14,624  14,624 
Net income available to common shareholders $ 63,478  $ 175,654  $ 239,132 
WAFD shares outstanding 17,089  64,317  81,406 
Projected EPS $ 2.73  $ 2.94 
Change in EPS $ 0.21 
EPS Accretion 8  %

15


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. Such forward looking statements include, without limitation, statements related to the potential sale of approximately $3.2 billion of commercial real estate loans categorized as Held for Sale, and statements relating to the benefits to the Company and our shareholders of the LBC merger, including its anticipated effect on earnings per share. 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, 2023 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. In particular, forward-looking statements relating to the potential sale of approximately $3.2 billion of commercial real estate loans categorized as Held for Sale are subject to risks and uncertainties that affect our ability to sell the loans, the anticipated timing of the sale, and the final purchase price for the assets, including, without limitation continued fluctuations in interest rates, deteriorating economic conditions or declines in the real estate market, and regulatory limitations.
16


Other 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, high unemployment rates, inflationary pressures, a potential recession, the monetary policies of the Federal Reserve, and slowdowns in economic growth; (iii) risks related to the integration of the operations of Luther Burbank Corporation; (iv) financial stress on borrowers (consumers and businesses) as a result of higher interest rates or an uncertain economic environment; (v) changes in deposit flows or loan demands; (vi) the impact of bank failures or adverse developments at other banks and related negative press about regional banks and the banking industry in general; (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) global economic trends, including developments related to Ukraine and Russia, and the evolving conflict in Israel and Gaza, and related negative financial impacts on our borrowers; (ix) litigation risks resulting in significant expenses, losses and reputational damage; (x) our ability to identify and address cyber-security risks, including security breaches, “denial of service attacks,” “hacking” and identity theft; and (ix) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services.
# # #


Contact:

WaFd, Inc.
425 Pike Street, Seattle, WA 98101
Brad Goode, SVP, Chief Marketing Officer
206-626-8178
brad.goode@wafd.com
17

EX-99.2 3 exhibit992_march2024factsh.htm EX-99.2 Document
WaFd, Inc.
Fact Sheet
March 31, 2024
($ in Thousands)
Exhibit 99.2
As of 09/23 As of 12/23 As of 03/24
Allowance for Credit Losses (ACL) - Total $ 201,707  $ 201,820  $ 225,077 
     ACL - Loans 177,207  179,320  201,577 
     ACL - Unfunded Commitments 24,500  22,500  23,500 
     Total ACL as a % of Gross Loans 1.03  % 1.04  % 1.00  %
09/23 QTR 09/23 YTD 12/23 QTR 12/23 YTD 03/24 QTR 03/24 YTD
Loan Originations - Total $ 748,793  $ 4,702,156  $ 871,446  $ 871,446  $ 825,733  $ 1,697,179 
     Multi-Family 8,965  136,788  10,408  10,408  39,802  50,210 
     Commercial Real Estate 31,225  223,361  63,616  63,616  81,634  145,250 
     Commercial & Industrial 250,875  2,032,460  419,046  419,046  370,476  789,522 
     Construction 147,571  1,046,971  150,977  150,977  136,038  287,015 
     Land - Acquisition & Development 2,887  34,946  12,557  12,557  11,475  24,032 
     Single-Family Residential 141,103  610,130  83,514  83,514  67,506  151,020 
     Construction - Custom 81,378  346,784  46,302  46,302  50,940  97,242 
     Land - Consumer Lot Loans 5,534  21,133  3,849  3,849  3,914  7,763 
     HELOC 36,489  154,030  40,996  40,996  31,859  72,855 
     Consumer 42,766  95,553  40,181  40,181  32,089  72,270 
Purchased Loans (including acquisitions, both held for investment and held for sale) $ —  $ 80,015  $ —  $ —  $ 6,415,128  $ 6,415,128 
Net Loan Fee and Discount Accretion $ 4,689  $ 20,130  $ 4,613  $ 4,613  $ 7,127  $ 11,740 
Repayments
Loans $ 989,279  $ 4,435,269  $ 1,153,510  $ 1,153,510  $ 983,348  $ 2,136,858 
MBS 56,648  181,951  36,437  36,437  35,927  72,364 
MBS Premium Amortization (Accretion) $ (106) $ 1,266  $ (64) $ (64) $ 160  $ 96 
Efficiency
Operating Expenses/Average Assets 1.70  % 1.74  % 1.73  % 1.73  % 2.15  % 1.95  %
Efficiency Ratio (%) 51.78  % 50.65  % 58.02  % 58.02  % 77.74  % 68.04  %
Amortization of Intangibles $ 254  $ 980  $ 266  $ 266  $ 1,303  $ 1,569 
EOP Numbers
Shares Issued and Outstanding 64,736,916  64,254,700  81,405,391 
Share repurchase information
Remaining shares authorized for repurchase 2,559,183  1,861,290  1,853,453 
Shares repurchased 428  1,165,161  697,893  697,893  7,837  705,730 
Average share repurchase price $ 30.41  $ 26.14  $ 24.45  $ 24.45  $ 30.38  $ 24.52 



1
WaFd, Inc.
Fact Sheet
March 31, 2024
($ in Thousands)
Tangible Common Shareholders' Book Value As of 09/23 As of 12/23 As of 03/24
$ Amount $ 1,815,807  $ 1,840,901  $ 2,168,367 
Per Share 28.05  28.65  26.64 
# of Employees*
 2,120  2,092  2,335 
*Number of employees as of 3/31/24 includes 102 LBC that will not be retained
Investments
Available-for-sale:
     Agency MBS $ 912,844  $ 940,763  $ 1,291,648 
     Other 1,082,253  1,077,682  1,146,466 
$ 1,995,097  $ 2,018,445  $ 2,438,114 
Held-to-maturity:
     Agency MBS $ 423,586  $ 415,079  $ 457,882 
$ 423,586  $ 415,079  $ 457,882 
As of 09/23 As of 12/23 As of 03/24
Loans Receivable by Category 1
  AMOUNT  %  AMOUNT  %  AMOUNT  %
     Multi-Family $ 2,907,086  14.8% $ 3,054,426  15.8% $ 4,173,375  18.5%
     Commercial Real Estate 3,344,959  17.0 3,351,113  17.3 3,570,790  15.8
     Commercial & Industrial 2,321,717  11.8 2,371,393  12.3 2,290,452  10.0
     Construction 3,318,994  16.8 2,868,207  14.8 2,631,783  11.6
     Land - Acquisition & Development 201,538  1.0 190,732  1.0 215,831  1.0
     Single-Family Residential 6,451,270  32.8 6,535,073  33.8 8,816,039  39.0
     Construction - Custom 672,643  3.4 543,748  2.8 466,740  2.1
     Land - Consumer Lot Loans 125,723  0.6 119,735  0.7 115,022  0.5
     HELOC 234,410  1.2 243,742  1.3 243,852  1.1
     Consumer 70,164  0.4 74,884  0.4 74,269  0.3
19,648,504  100% 19,353,053  100% 22,598,153  100%
     Less:
        Allowance for Credit Losses (ACL) 177,207  179,320  201,577 
        Loans in Process 1,895,940  1,516,522  1,303,978 
        Net Deferred Fees, Costs and Discounts 98,807  72,589  297,339 
        Sub-Total 2,171,954  1,768,431  1,802,894 
$ 17,476,550  $ 17,584,622  $ 20,795,259 
Net Loan Portfolio by Category 1
  AMOUNT  %  AMOUNT  %  AMOUNT  %
     Multi-Family $ 2,873,439  16.4% $ 3,008,665  17.1% $ 4,067,739  19.6%
     Commercial Real Estate 3,281,258  18.8 3,303,286  18.8 3,511,893  16.9
     Commercial & Industrial 2,256,546  12.9 2,304,148  13.1 2,224,662  10.7
     Construction 1,809,528  10.4 1,666,643  9.5 1,596,178  7.7
     Land - Acquisition & Development 149,645  0.9 142,052  0.8 167,839  0.8
     Single-Family Residential 6,360,961  36.4 6,466,893  36.8 8,578,862  41.3
     Construction - Custom 321,670  1.8 261,377  1.5 221,460  1.1
     Land - Consumer Lot Loans 121,330  0.7 115,572  0.7 111,043  0.4
     HELOC 234,895  1.3 244,171  1.4 244,331  1.2
     Consumer 67,278  0.4 71,815  0.4 71,252  0.3
$ 17,476,550  100% $ 17,584,622  100% $ 20,795,259  100%
1 These loan disclosures are specific to those loans held for investment and exclude loans held for sale.
2
WaFd, Inc.
Fact Sheet
March 31, 2024
($ in Thousands)
As of 09/23 As of 12/23 As of 03/24
Loans by State 1
  AMOUNT %  AMOUNT %  AMOUNT %
     Washington $ 5,471,235  31.0  % $ 5,476,536  30.8  % $ 5,770,917  27.5  %
     Idaho 891,240  5.0  908,006  5.1  896,501  4.3 
     Oregon 2,350,173  13.3  2,391,543  13.5  2,441,076  11.6 
     Utah 1,939,332  11.0  1,984,396  11.2  2,013,988  9.6 
     Nevada 740,394  4.2  772,743  4.4  781,351  3.6 
     Texas 2,403,111  13.6  2,435,784  13.7  2,466,030  11.7 
     Arizona 2,455,866  13.9  2,377,491  13.4  2,386,260  11.4 
     New Mexico 735,073  4.3  745,931  4.2  750,750  3.6 
     California 268,136  1.5  257,392  1.4  3,121,531  14.9 
     Other 399,197  2.3  414,120  2.3  368,432  1.8 
     Total $ 17,653,757  100% $ 17,763,942  100% $ 20,996,836  100%
Non-Performing Assets  AMOUNT  %  AMOUNT  %  AMOUNT  %
Non-accrual loans: 1
     Multi-Family $ 5,127  10.2% $ 132  0.3% $ 8,377  13.8%
     Commercial Real Estate 23,435  46.5 24,283  53.7 27,022  44.4
     Commercial & Industrial 6,082  12.1 4,437  9.8 4,436  7.3
     Construction —  — —  — —  —
     Land - Acquisition & Development —  — —  — 112  0.2
     Single-Family Residential 14,918  29.5 15,396  34.0 20,016  32.9
     Construction - Custom 88  0.2 88  0.1 88  0.1
     Land - Consumer Lot Loans 9  — 57  0.1 —  —
     HELOC 736  1.5 603  1.3 491  0.8
     Consumer 27  0.1 262  0.5 264  0.4
        Total non-accrual loans 50,422  100% 45,258  100% 60,806  100%
Real Estate Owned 4,149  6,820  4,245 
Other Property Owned 3,353  3,310  3,310 
Total non-performing assets $ 57,924  $ 55,388  $ 68,361 
Non-accrual loans as % of total net loans 0.29  % 0.26  % 0.29  %
Non-performing assets as % of total assets 0.26  % 0.24  % 0.23  %
Net Charge-offs (Recoveries) by Category 09/23 QTR CO % (a) 12/23 QTR CO % (a) 03/24 QTR CO % (a)
Multi-Family $ —  —% $ —  —% $ —  —%
Commercial Real Estate (98) (0.01) (2) — —  —
Commercial & Industrial 29,242  5.04 30  0.01 33  0.01
Construction —  — —  — —  —
Land - Acquisition & Development (24) (0.05) (32) (0.07) (21) (0.04)
Single-Family Residential (16) — (120) (0.01) 76  —
Construction - Custom —  — —  — —  —
Land - Consumer Lot Loans (9) (0.03) (9) (0.03) (46) (0.16)
HELOC (1) — (1) — (1) —
Consumer 268  1.53 21  0.11 105  0.57
Total net charge-offs (recoveries) $ 29,362  0.60% $ (113) —% $ 146  —%
(a) Annualized Net Charge-offs (recoveries) divided by Gross Balance
1 These loan disclosures are specific to those loans held for investment and exclude loans held for sale.
3
WaFd, Inc.
Fact Sheet
March 31, 2024
($ in Thousands)
As of 09/23 As of 12/23 As of 03/24
Deposits & Branches by State  AMOUNT % #  AMOUNT % #  AMOUNT % #
     Washington $ 7,627,674  47.5  % 71  $ 7,881,675  49.1  % 71  $ 8,254,930  38.7  % 73 
     Idaho 972,424  6.1  22  921,611  5.7  22  918,143  4.3  22 
     Oregon 2,820,338  17.5  36  2,460,582  15.2  36  2,744,489  13.0  36 
     Utah 662,192  4.1  9  617,113  3.8  9  541,895  2.6  9 
     Nevada 495,794  3.1  8  504,217  3.1  8  513,980  2.4  8 
     Texas 381,576  2.3  5  566,940  3.5  5  404,120  1.9  5 
     Arizona 1,635,345  10.2  28  1,599,257  10.0  28  1,587,253  7.4  28 
     New Mexico 1,474,986  9.2  19  1,487,392  9.3  19  1,479,225  6.9  19 
     California 4,895,738  22.9  10 
     Total $ 16,070,329  100% 198  $ 16,038,787  100% 198  $ 21,339,773  100% 200 
Deposits by Type  AMOUNT %  AMOUNT %  AMOUNT %
Non-Interest Checking $ 2,706,448  16.8  % $ 2,604,281  16.2  % $ 2,482,010  11.6  %
Interest Checking 3,882,715  24.2  4,084,933  25.5  4,579,413  21.5 
Savings 817,547  5.1  777,204  4.8  771,260  3.7 
Money Market 3,358,603  20.9  3,191,646  19.9  4,506,179  21.1 
Time Deposits 5,305,016  33.0  5,380,723  33.5  9,000,911  42.2 
Total $ 16,070,329  100% $ 16,038,787  100% $ 21,339,773  100%
Deposits Uninsured &
Non-collateralized - EOP		 $ 4,124,355  25.7  % $ 4,182,289  26.1  % $ 5,436,402  25.5  %
Time Deposit Repricing Amount Rate Amount Rate Amount Rate
Within 3 months $ 2,345,588  3.84  % $ 2,150,962  4.00  % $ 1,807,709  4.16  %
From 4 to 6 months 1,517,379  3.89  % 678,257  3.64  % 1,880,835  4.38  %
From 7 to 9 months 408,399  3.84  % 407,869  3.42  % 2,093,121  4.75  %
From 10 to 12 months 323,741  3.02  % 1,189,019  4.43  % 1,966,821  4.46  %
Debt & Borrowings (Effective Maturity)2
 Amount Rate Amount Rate Amount Rate
Within 1 year $ 2,750,000  5.05  % $ 2,975,000  4.99  % $ 4,447,572  5.20  %
1 to 3 years 100,000  1.70  % 100,000  1.65  % 191,507  3.12  %
3 to 5 years —  —  % —  —  % —  —  %
More than 5 years 800,000  0.61  % 800,000  0.58  % 850,422  1.06  %
Total $ 3,650,000  $ 3,875,000  $ 5,489,501 
Interest Rate Risk
NPV post 200 bps shock3
 9.5  % 8.8  % 9.2  %
Change in NII after 200 bps shock3
 (2.0) % (1.0) % 9.3  %
2 includes FHLB and FRB borrowings, senior debt and junior subordinated debentures
3Assumes no balance sheet management actions taken.
4
WaFd, Inc.
Fact Sheet
March 31, 2024
($ in Thousands)


Historical CPR Rates (c)
Average for Quarter Ended: SFR Mortgages GSE MBS
3/31/2022 18.4  % 28.6  %
6/30/2022 13.1  % 20.9  %
9/30/2022 8.1  % 14.7  %
12/31/2022 6.3  % 12.6  %
3/31/2023 5.8  % 8.9  %
6/30/2023 7.9  % 11.8  %
9/30/2023 7.0  % 14.5  %
12/31/2023 6.6  % 9.7  %
3/31/2024 4.8  % 8.7  %
(c) The CPR Rate (conditional payment rate) is the rate that is equal to the proportion of the principal of a pool of loans that is paid off prematurely in each period.

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WaFd, Inc.
Fact Sheet
March 31, 2024
Average Balance Sheet
($ in Thousands)
Quarter Ended
September 30, 2023 December 31, 2023 March 31, 2024
Average Average Average Average Average Average
Balance Interest Rate Balance Interest Rate Balance Interest Rate
Assets
Loans receivable1
 $ 17,397,745  $ 240,998  5.50  % $ 17,533,944  $ 245,792  5.58  % $ 19,696,515  $ 274,341  5.60  %
Mortgage-backed securities 1,375,938  11,695  3.37  1,337,174  11,266  3.35  1,470,581  12,905  3.53 
Cash & investments 1,841,726  26,536  5.72  1,851,301  27,354  5.88  2,020,460  28,901  5.75 
FHLB Stock 120,005  2,481  8.20  124,019  2,434  7.81  138,452  2,679  7.78 
Total interest-earning assets 20,735,414  281,710  5.39  % 20,846,438  286,846  5.47  % 23,326,008  318,826  5.50  %
Other assets 1,498,327  1,535,021  1,581,368 
Total assets $ 22,233,741  $ 22,381,459  $ 24,907,376 
Liabilities and Shareholders' Equity
Interest-bearing customer accounts $ 13,245,484  83,402  2.50  % $ 13,248,450  96,671  2.90  % $ 15,080,002  116,164  3.10  %
Borrowings, junior debentures, senior debt 3,478,261  34,611  3.95  3,718,207  37,938  4.06  4,323,454  44,065  4.10 
Total interest-bearing liabilities 16,723,745  118,013  2.80  % 16,966,657  134,609  3.16  % 19,403,456  160,229  3.32  %
Noninterest-bearing customer accounts 2,761,622  2,654,982  2,536,757 
Other liabilities 316,528  312,240  328,680 
Total liabilities 19,801,895  19,933,879  22,268,893 
Stockholders’ equity 2,431,846  2,447,580  2,638,483 
Total liabilities and equity $ 22,233,741  $ 22,381,459  $ 24,907,376 
Net interest income/interest rate spread $ 163,697  2.59  % $ 152,237  2.32  % $ 158,597  2.18  %
Net interest margin2
 3.13  % 2.91  % 2.73  %
1 Includes loans held for sale
2Annualized net interest income divided by average interest-earning assets

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WaFd, Inc.
Fact Sheet
March 31, 2024
Delinquency Summary
($ in Thousands)
TYPE OF LOANS # OF LOANS % based % based
 #LOANS AVG Size LOANS AMORTIZED COST 30 60 90 Total on # $ Delinquent on $
March 31, 2024
     Multi-Family 1,765  2,317  $ 4,089,719  12  —  2  14  0.79  % $ 17,644  0.43  %
     Commercial Real Estate 1,287  2,754  3,544,884  —  —  7  7  0.54  24,598  0.69 
     Commercial & Industrial 1,898  1,203  2,283,922  15  —  13  28  1.48  4,575  0.20 
     Construction 450  3,608  1,623,496  2  —  —  2  0.44  760  0.05 
     Land - Acquisition & Development 87  2,020  175,704  —  —  3  3  3.45  112  0.06 
     Single-Family Residential 22,392  385  8,619,916  29  17  56  102  0.46  25,761  0.30 
     Construction - Custom 451  495  223,377  1  —  1  2  0.44  847  0.38 
     Land - Consumer Lot Loans 1,076  106  114,256  4  1  1  6  0.56  307  0.27 
     HELOC 4,318  57  247,305  5  3  10  0.23  1,009  0.41 
     Consumer 7,497  10  74,257  15  15  135  165  2.20  435  0.59 
41,221  509  $ 20,996,836  83  35  221  339  0.82  % $ 76,048  0.36  %
December 31, 2023
     Multi-Family 1,147  2,635  $ 3,022,457  —  —  1  1  0.09  % $ 132  —  %
     Commercial Real Estate 1,205  2,765  3,332,293  2  —  5  7  0.58  25,217  0.76 
     Commercial & Industrial 1,953  1,211  2,364,982  11  2  7  20  1.02  7,141  0.30 
     Construction 476  3,562  1,695,506  —  —  —  —  —  —  — 
     Land - Acquisition & Development 95  1,565  148,711  —  —  —  —  —  —  — 
     Single-Family Residential 19,713  330  6,495,449  33  19  44  96  0.49  22,143  0.34 
     Construction - Custom 538  490  263,638  1  —  1  2  0.37  847  0.32 
     Land - Consumer Lot Loans 1,106  108  118,917  2  —  1  3  0.27  393  0.33 
     HELOC 4,281  58  247,145  9  7  16  0.37  1,668  0.67 
     Consumer 7,068  11  74,844  24  10  32  66  0.93  516  0.69 
37,582  473  $ 17,763,942  82  31  98  211  0.56  % $ 58,057  0.33  %
September 30, 2023
     Multi-Family 1,134  2,545  $ 2,886,594  —  —  1  1  0.09  % $ 132  —  %
     Commercial Real Estate 1,199  2,761  3,310,101  1  1  3  5  0.42  24,428  0.74 
     Commercial & Industrial 2,000  1,158  2,315,318  2  5  18  25  1.25  8,298  0.36 
     Construction 490  3,753  1,838,936  —  —  —  —  —  —  — 
     Land - Acquisition & Development 93  1,685  156,661  —  —  —  —  —  —  — 
     Single-Family Residential 19,737  324  6,388,990  30  19  45  94  0.48  23,925  0.37 
     Construction - Custom 665  488  324,451  1  1  1  3  0.45  3,464  1.07 
     Land - Consumer Lot Loans 1,131  110  124,842  2  2  1  5  0.44  611  0.49 
     HELOC 4,229  56  237,754  11  3  6  20  0.47  2,046  0.86 
     Consumer 1,694  41  70,110  9  2  14  25  1.48  411  0.59 
32,372  545  $ 17,653,757  56  33  89  178  0.55  % $ 63,315  0.36  %

Tables above do not include loans held for sale.
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