- WaFd (WAFD, Financial) announces a 19% increase in net income for Q2 2025, reaching $56.25 million.
- The bank reports a 20% jump in diluted earnings per share, achieving $0.65.
- WaFd's net interest margin improves to 2.55% from 2.39% sequentially.
WaFd, Inc. (WAFD) reported a robust second fiscal quarter for 2025, with net income rising to $56.25 million, marking a 19% increase over the previous quarter and a substantial 254% year-over-year increase. The bank's diluted earnings per share reached $0.65, up 20% from $0.54 in Q1.
WaFd recorded net interest income of $161 million, benefiting from an improved net interest margin of 2.55% compared to 2.39% in the previous quarter. This increase in margin underscores the effectiveness of WaFd's strategic adjustments within a challenging rate environment.
Non-interest income saw a 20% rise, driven primarily by WaFd Insurance's revenue performance, which experienced a 53% year-over-year profit growth. Additionally, non-performing assets were reduced to 0.26% of total assets.
The bank's focus on business banking showed promising results, with 382 new small business loans originated and a 125% increase in merchant processing referrals, demonstrating significant traction in this segment compared to none last quarter.
WaFd continued to deliver value to shareholders, paying its 168th consecutive quarterly dividend of $0.27 per share and repurchasing 726,082 shares at an average price of $29.39, below its tangible book value of $28.31. The tangible common equity ratio remains solid at 9.51%.
WaFd's efforts in strategic pivoting towards higher-margin operations are beginning to yield positive outcomes, as reflected in the quarterly results. The bank remains committed to its long-term business objectives aimed at sustaining growth and enhancing shareholder returns.
