WaFd (WAFD) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $61.95M, down from $64.56M year-over-year but up 10% sequentially; nine-month net income was $165.47M, up from $138.90M.

• Diluted EPS was $0.73, a 12% increase from Q2 2025 and a 3% decrease from Q3 2024.

• The company completed the merger with Luther Burbank Corporation on March 1, 2024, impacting year-to-date comparability.

• Exited the single-family mortgage lending market in January 2025, expecting $17M in annual expense savings but incurring a $5.4M restructuring charge.

• Core earnings were strong, driven by improved net interest margin and lower cost of funds.

Financial highlights

• Net interest income for the quarter was $168M, up $7.1M sequentially but down $9.20M year-over-year; net interest margin rose to 2.69% from 2.56%.

• Total assets decreased to $26.73B at June 30, 2025 from $28.06B at September 30, 2024, mainly due to lower loans receivable and cash.

• Non-interest income for the quarter was $18.27M, up $1.02M year-over-year; non-interest expense fell to $104.33M from $110.08M.

• Efficiency ratio decreased to 56.01% from 58.31% sequentially.

• Tangible book value per share increased to $28.69, up from $27.73 at September 30, 2024.

Outlook and guidance

• Management expects continued focus on commercial lending, cost control, and capital returns via share repurchases.

• Loan demand remains subdued as borrowers delay projects amid economic uncertainty.

• The company is evaluating the impact of recent federal tax law changes but anticipates no significant effect.