WAFD 3Q net interest margin 2.69%, est. 2.61%

WAFD 3Q net interest margin 2.69%, est. 2.61%

SEATTLE — WaFd, Inc. (Nasdaq: WAFD), the parent company of Washington Federal Bank, announced its quarterly earnings for the period ended June 30, 2025. The company reported a net income of $61,952,000, up 10% from the previous quarter, and a net interest margin of 2.69% [1].

The quarter saw strong core earnings driven by improved margins and resultant net interest income. The company's cost of funds in dollars decreased by 6.5% on a linked quarter basis, benefiting from lower rates on deposits and reduced borrowings as the company chose to shrink its balance sheet. Loan demand remained tepid, with many borrowers waiting for more certainty before starting new projects. Despite this, the company aggressively repurchased shares, contributing to a 12% increase in earnings per share and a 5.4% annualized increase in tangible book value per share.

WaFd's net interest income for the quarter was $168 million, compared to $161 million in the second quarter. The company's net interest margin improved to 2.69% from 2.55% in the second quarter. Delinquencies decreased to 0.26% of total loans, compared to 0.27% in the second quarter. Non-performing assets increased to $97 million, or 0.36% of total assets, up from $77 million, or 0.28% in the previous quarter.

The company's efficiency ratio decreased to 56.01% in the third quarter, compared to 58.31% in the prior quarter, reflecting increased net interest income. WaFd also repurchased 1,662,508 shares of common stock at a weighted average price of $29.08 per share during the quarter.

WaFd's net income per common share increased to $0.73, up from $0.65 in the previous quarter. The company's tangible book value per share grew from $27.73 to $28.69, a 3.4% increase. The company's balance sheet totaled $26.7 billion as of June 30, 2025, down from $28.1 billion at the end of the previous quarter, primarily due to a reduction in loans receivable and cash used to reduce borrowings and purchase investments.

References:
[1] https://www.stocktitan.net/news/WAFD/wa-fd-announces-quarterly-earnings-per-share-of-0-hssa3yn68u81.html