Document

Net Interest Income and NIM

■$155 million net interest income for the quarter compared to $173 million in Q4 FY24.

■Net interest margin at 2.39% for the quarter compared to 2.62% for Q4 FY24.

Credit Quality

■Non-performing assets at 0.3% of total assets - similar to prior quarter.

■No provision booked for the quarter and NCOs were minimal.

Non-Interest Income and Expense

■Non-interest expense up due to $5.4 million in one-time restructuring charges, partially offset by lower FDIC insurance premiums due to a smaller balance sheet.

Shareholder Returns and Stock Activity

■On December 6, 2024, the Company paid a cash dividend of $0.26 per share, 167th consecutive quarterly dividend paid.

SEATTLE, WASHINGTON – WaFd, Inc. (Nasdaq: WAFD) (the "Company"), parent company of Washington Federal Bank ("WaFd Bank" or the "Bank"), today announced quarterly earnings of $47,267,000 for the quarter ended December 31, 2024, a decrease of 23% from net earnings of $61,140,000 for the quarter ended September 30, 2024 and a decrease of 19% from net earnings of $58,453,000 for the quarter ended December 31, 2023. After the effect of dividends on preferred stock, net income available for common shareholders was $0.54 per diluted share for the quarter ended December 31, 2024, compared to $0.71 per diluted share for the quarter ended September 30, 2024, a $0.17 or 24% decrease, and $0.85 per diluted share for the quarter ended December 31, 2023, a $0.31 or 36% decrease in fully diluted earnings per common share. The current quarter results reflect one-time charges of $5,390,000 as a result of restructuring activities described below. After adjusting for these charges and other non-operating items, earnings per share for the quarter was $0.62 per diluted share. For a reconciliation, see the Non-GAAP Financial Measures section below.



In the first quarter of fiscal 2025 our results were impacted by greater than expected margin compression. On a linked quarter basis our margin contracted from 2.62% to 2.39%. Excluding a valuation adjustment to hedges obtained in the Luther Burbank acquisition, the Q1 margin would have been 2.45%. The Federal Reserve started reducing interest rates with a 50 basis point cut on September 18, 2024, followed by two 25 basis point cuts in October and December. With each cut, our variable rate assets (loans and investments) repriced quickly, while the repricing of our liabilities has lagged, causing margin compression. On a linked quarter basis, the yield on earning assets declined by 36 basis points, while the yield on paying liabilities decreased by only 14 basis points. We are pleased to report that credit quality remains strong with minimal net charge-offs and delinquencies of only 0.30%. Capital has grown nicely over the last three quarters, with tangible common equity to tangible assets increasing from 8.31% to 9.45% since our acquisition in March of last year.

Today we are announcing a significant shift in focus for our business model. After over 100 years of making home loans, we are exiting the single-family mortgage lending market and have recorded a restructuring expense of $5.4 million this quarter. As a result, by the end of June 2025, we anticipate annual expense savings of approximately $17 million. Importantly, we will retain all existing home loans and HELOC’s on our books, ensuring no disruption for our current customers. We have come to this conclusion after thoughtful deliberation for two primary reasons. First, home loans are seen as a commodity with nearly 70% of originations sold to US government sponsored enterprises like Freddie Mac and Fannie Mae, which has caused profitability to decrease and credit risk to increase. Second, technology has made it easy for consumers to refinance (which is a good thing for homeowners), but it increases the interest rate risk for banks that hold mortgages. Our aim is to always offer products and services to our customers where WaFd Bank can add value, and we have concluded that we no longer do so in the mortgage sector. Exiting mortgage lending and right sizing other support areas will result in an 8% reduction in our workforce.

While not the primary factor, but certainly a contributing factor, the regulatory burden associated with mortgage lending also played a role in our decision. Recently we were notified that WaFd Bank has received an overall “Needs to Improve” rating regarding our Community Reinvestment Act (“CRA”) compliance because we did not make enough loans to low and moderate income ("LMI") borrowers and communities. For the individual components of the exam, we received a “High Satisfactory” rating in both the investment and service tests, and a “Needs to Improve” on the lending test. We are committed to serving all of our communities and have done so as a portfolio lender since 1917. Today, we compete against government-sponsored financing programs with less stringent underwriting than we are comfortable offering as a lender that retains all loans on our balance sheet. For example, there are multiple government programs that require no down payment, and our performance is being compared to lenders who offer these programs and originate to sell. We strongly disagree with this rating and plan to appeal this conclusion.

Through our involvement in the PPP program during the Pandemic, we have seen just how important small business is to us, and to the communities we serve, and how underserved many small businesses are when it comes to their banking needs. Technology is excellent and abundant; what small businesses need is a trusted advisor to help them navigate complex financial matters and exercise professional skepticism. We aim to fill that need. Going forward, in addition to serving consumers, WaFd will concentrate its focus, offerings and efforts on business banking and commercial real estate lending. We will also begin offering SBA lending products that will allow us to broaden our offerings for small businesses.

We have also re-aligned our management structure. On the executive team, Cathy Cooper will transition to the role of Chief Experience Officer, responsible for enhancing overall client experience through digital channels and in person processes. James Endrizzi will step aside from his current role and will assume leadership responsibility for Commercial Real Estate in both Utah and Nevada in a non-executive role. The Business Bank Division will be led by Michelle Coons, Dan LaCoste and Doron Joseph. The Commercial Real Estate Division will be led by Tony Barnard and Tom Pozarycki. All five of these leaders have been promoted to the role of Executive Director but are not deemed executive officers under SEC rules.


	As of
(In thousands, except share and ratio data)	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
BALANCE SHEET
Cash	$	1,507,735		$	2,381,102		$	2,492,504		$	1,505,771		$	1,144,774
Loans receivable, net	21,060,501			20,916,354			20,873,919			20,795,259			17,584,622
Allowance for credit losses ("ACL")	225,022			225,253			225,324			225,077			201,820
Loans held for sale	—			—			468,527			2,993,658			—
Available-for-sale securities, at fair value	2,743,731			2,572,709			2,428,768			2,438,114			2,018,445
Held-to-maturity securities, at amortized cost	537,348			436,972			447,638			457,882			415,079
Total investments	3,281,079			3,009,681			2,876,406			2,895,996			2,433,524
Total assets	27,684,454			28,060,330			28,580,800			30,140,288			22,640,122
Transaction deposits	11,853,859			11,817,185			11,929,005			12,338,862			10,658,064
Time deposits	9,584,918			9,556,785			9,255,760			9,000,911			5,380,723
Total deposits	21,438,777			21,373,970			21,184,765			21,339,773			16,038,787
Borrowings	2,914,627			3,318,307			4,079,360			5,489,501			3,875,000
Total shareholders' equity	3,021,636			3,000,300			2,958,339			2,921,906			2,452,004
Loans to customer deposits2	98.24		%	97.86		%	98.53		%	97.45		%	109.64		%

PROFITABILITY
Net income	$	47,267		$	61,140		$	64,560		$	15,888		$	58,453
Net income to common shareholders	43,611			57,484			60,904			12,232			54,797
Earnings per common share	0.54			0.71			0.75			0.17			0.85
Return on tangible common equity1	7.69		%	10.24		%	11.10		%	2.47		%	11.93		%
Return on tangible assets1	0.70		%	0.89		%	0.88		%	0.26		%	1.06		%
Net interest margin	2.39		%	2.62		%	2.56		%	2.73		%	2.91		%
Efficiency ratio	65.04		%	57.21		%	56.61		%	77.74		%	58.02		%

FINANCIAL HIGHLIGHTS
Common shareholders' equity per share	$	33.45		$	33.25		$	32.76		$	32.21		$	33.49
Tangible common shareholders' equity per share1	27.93			27.73			27.18			26.64			28.65
Shareholders' equity to total assets	10.91		%	10.69		%	10.35		%	9.69		%	10.83		%
Tangible shareholders' equity to tangible assets1	9.45		%	9.24		%	8.91		%	8.31		%	9.59		%
Common shares outstanding	81,373,760			81,220,269			81,157,173			81,405,391			64,254,700
Preferred shares outstanding	300,000			300,000			300,000			300,000			300,000

CREDIT QUALITY2
ACL to gross loans	1.00		%	1.01		%	1.00		%	1.00		%	1.04		%
Non-accrual loans to net loans	0.34		%	0.33		%	0.29		%	0.29		%	0.26		%
Delinquencies to net loans	0.30		%	0.25		%	0.22		%	0.36		%	0.33		%
Non-performing assets to total assets	0.29		%	0.28		%	0.24		%	0.23		%	0.24		%

Criticized loans to net loans	2.54		%	2.41		%	3.01		%	2.59		%	2.27		%

Substandard loans to net loans	1.96		%	2.04		%	1.84		%	1.48		%	1.74		%

Customer deposits totaled $21.4 billion as of December 31, 2024, largely unchanged from September 30, 2024. Transaction accounts increased by $37 million or 0.3% during the quarter, while time deposits increased $28 million, also 0.3%. As of December 31, 2024, 55.3% of the Company’s deposits were transaction accounts, unchanged from September 30, 2024. Core deposits, defined as all transaction accounts and time deposits less than $250,000, totaled 78.3% of deposits at December 31, 2024. Deposits that are uninsured or not collateralized were 24.8% as of December 31, 2024, a slight increase from 24.0% as of September 30, 2024.

Loan originations totaled $0.9 billion for the first fiscal quarter of 2025, compared to $0.9 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 $1.2 billion, respectively. The Bank had intentionally slowed new loan production to temper net loan growth. Commercial loans represented 68% of all loan originations during the first fiscal quarter of 2025 and consumer loans accounted for the remaining 32%. Commercial loans are viewed by the Bank as preferable as they generally have floating interest rates and shorter durations. The period end interest yield on the loan portfolio was 5.44% as of December 31, 2024, a decrease from 5.62% as of September 30, 2024.

Credit Quality Credit quality continues to be monitored closely in light of the shifting economic and monetary environment. As of December 31, 2024, non-performing assets increased slightly to $79 million, or 0.3% of total assets, from $77 million, or 0.3%, at September 30, 2024. The change fiscal year to date is due primarily to non-accrual loans increasing by $2.9 million, or 4%, since September 30, 2024. Delinquent loans were slightly increased at 0.30% of total loans at December 31, 2024, compared to 0.25% at September 30, 2024. The allowance for credit losses (including the reserve for unfunded commitments) totaled $225 million as of December 31, 2024, and was 1.00% 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 $231,000 for the first fiscal quarter of 2025, compared to $70,000 for the prior quarter.

Profitability Net interest income was $155 million for the first fiscal quarter of 2025, a decrease of $17.4 million or 10% from the prior quarter. The decrease in net interest income was primarily due to a 36 basis point decrease in the rate earned on interest earning assets offset by a smaller 14 basis point decrease in the average rate paid on interest bearing liabilities. Interest income was also affected by a valuation adjustment to hedges obtained in the Luther Burbank acquisition resulting in a reduction of $3.9 million. Net interest margin was 2.39% in the first fiscal quarter of 2025 compared to 2.62% for the quarter ended September 30, 2024.

Total non-interest expense was $111.3 million in the first fiscal quarter of 2025, an increase of $3.4 million, or 3.1%, from the prior quarter. The overall increase is the result of the $5.4 million of restructuring costs incurred in the quarter offset by a decrease in FDIC premiums of $2.0 million in the same period. Increased expenses combined with decreased net interest income resulted in an increase in the Company’s efficiency ratio in the first fiscal quarter of 2025 to 65.0%, compared to 57.2% in the prior quarter.


	December 31, 2024			September 30, 2024
	(In thousands, except share and ratio data)
ASSETS
Cash and cash equivalents		$	1,507,735		$	2,381,102
Available-for-sale securities, at fair value		2,743,731			2,572,709
Held-to-maturity securities, at amortized cost		537,348			436,972
Loans receivable, net of allowance for loan losses of $204,522 and $203,753		21,060,501			20,916,354
Interest receivable		103,147			102,827
Premises and equipment, net		248,924			247,901
Real estate owned		3,316			4,567
FHLB stock		128,396			95,617
Bank owned life insurance		269,473			267,633
Intangible assets, including goodwill of $414,722 and $411,360		449,213			448,425
Deferred tax assets, net		111,830			119,248
Other assets		520,840			466,975
		$	27,684,454		$	28,060,330
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Transaction deposits		$	11,853,859		$	11,817,185
Time deposits		9,584,918			9,556,785
Total customer deposits		21,438,777			21,373,970
Borrowings		2,863,675			3,267,589
Junior subordinated debentures		50,952			50,718
Advance payments by borrowers for taxes and insurance		20,188			61,330

Accrued expenses and other liabilities		289,226			306,423
		24,662,818			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; 154,247,734 and 154,007,429 shares issued; 81,373,760 and 81,220,269 shares outstanding		154,248			154,007
Additional paid-in capital		2,154,929			2,150,675
Accumulated other comprehensive income (loss), net of taxes		53,353			55,851
Treasury stock, at cost; 72,873,974 and 72,787,160 shares		(1,642,480)			(1,639,131)
Retained earnings		2,001,586			1,978,898
		3,021,636			3,000,300
		$	27,684,454		$	28,060,330


	Three Months Ended December 31,
	2024			2023
	(In thousands, except share and ratio data)
INTEREST INCOME
Loans receivable		$	286,597		$	245,792
Mortgage-backed securities		18,337			11,266
Investment securities and cash equivalents		40,183			29,788
		345,117			286,846
INTEREST EXPENSE
Customer accounts		162,150			96,671
Borrowings and junior subordinated debentures		27,536			37,938
		189,686			134,609
Net interest income		155,431			152,237
Provision (release) for credit losses		—			—
Net interest income after provision (release)		155,431			152,237
NON-INTEREST INCOME
Gain (loss) on sale of investment securities		20			81
Gain (loss) on termination of hedging derivatives		5			109

Loan fee income		1,345			844
Deposit fee income		7,046			6,802
Other income		7,286			6,331
Total non-interest income		15,702			14,167
NON-INTEREST EXPENSE
Compensation and benefits		59,927			49,841
Occupancy		10,788			9,371
FDIC insurance premiums		4,850			6,570
Product delivery		5,785			6,009
Information technology		14,192			12,866
Other expense		15,769			11,883
Total non-interest expense		111,311			96,540
Gain (loss) on real estate owned, net		429			1,826
Income before income taxes		60,251			71,690
Income tax provision		12,984			13,237
Net income		47,267			58,453
Dividends on preferred stock		3,656			3,656
Net income available to common shareholders		$	43,611		$	54,797


	Three Months Ended
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
		(In thousands, except share and ratio data)
INTEREST INCOME
Loans receivable		$	286,597		$	308,598		$	337,118		$	274,341		$	245,792
Mortgage-backed securities		18,337			18,088			17,523			12,905			11,266
Investment securities and cash equivalents		40,183			47,411			37,300			31,580			29,788
		345,117			374,097			391,941			318,826			286,846
INTEREST EXPENSE
Customer accounts		162,150			165,240			154,359			116,164			96,671
Borrowings, senior debt and junior subordinated debentures		27,536			36,045			60,396			44,065			37,938
		189,686			201,285			214,755			160,229			134,609
Net interest income		155,431			172,812			177,186			158,597			152,237
Provision for credit losses		—			—			1,500			16,000			—
Net interest income after provision		155,431			172,812			175,686			142,597			152,237
NON-INTEREST INCOME
Gain on sale of investment securities		20			91			80			90			81
Gain on termination of hedging derivatives		5			72			54			6			109

Loan fee income		1,345			757			594			550			844
Deposit fee income		7,046			7,047			6,960			6,698			6,802
Other income		7,286			7,911			9,567			6,048			6,331
Total non-interest income		15,702			15,878			17,255			13,392			14,167
NON-INTEREST EXPENSE
Compensation and benefits		59,927			53,983			57,169			73,155			49,841
Occupancy		10,788			10,843			10,904			10,918			9,371
FDIC insurance premiums		4,850			6,800			7,600			7,900			6,570
Product delivery		5,785			6,306			6,090			5,581			6,009
Information technology		14,192			14,129			13,428			12,883			12,866
Other expense		15,769			15,880			14,888			23,275			11,883
Total non-interest expense		111,311			107,941			110,079			133,712			96,540
Gain (loss) on real estate owned, net		429			(83)			(124)			(1,315)			1,826
Income before income taxes		60,251			80,666			82,738			20,962			71,690
Income tax provision		12,984			19,526			18,178			5,074			13,237
Net income		47,267			61,140			64,560			15,888			58,453
Dividends on preferred stock		3,656			3,656			3,656			3,656			3,656
Net income available to common shareholders		$	43,611		$	57,484		$	60,904		$	12,232		$	54,797


	Three Months Ended
	December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024				December 31, 2023
		(In thousands, except share and ratio data)
PER SHARE DATA
Basic earnings per common share		$	0.54			$	0.71			$	0.75			$	0.17			$	0.85
Diluted earnings per common share		0.54				0.71				0.75				0.17				0.85
Cash dividends per common share		0.26				0.26				0.26				0.26				0.25
Basic weighted average shares outstanding		81,294,227				81,208,683				81,374,811				70,129,072				64,297,499
Diluted weighted average shares outstanding		81,401,599				81,353,644				81,393,708				70,164,558				64,312,110
PERFORMANCE RATIOS
Return on average assets		0.69		%		0.87		%		0.87		%		0.26		%		1.04		%
Return on average common equity		6.42				8.53				9.20				2.09				10.21
Net interest margin		2.39				2.62				2.56				2.73				2.91
Efficiency ratio		65.04				57.21				56.61				77.74				58.02

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.


Tangible Measures	December 31, 2024				September 30, 2024				June 30, 2024			March 31, 2024				December 31, 2023
	(Unaudited - In thousands, except for ratio data)
Shareholders equity - GAAP		$	3,021,636			$	3,000,300		$	2,958,339			$	2,921,906			$	2,452,004
Less intangible assets - GAAP		449,213				448,425			452,255				453,539				311,103
Tangible shareholders' equity		$	2,572,423			$	2,551,875		$	2,506,084			$	2,468,367			$	2,140,901
Less preferred stock - GAAP		300,000				300,000			300,000				300,000				300,000
Tangible common shareholders' equity		$	2,272,423			$	2,251,875		$	2,206,084			$	2,168,367			$	1,840,901

Total assets - GAAP		$	27,684,454			$	28,060,330		$	28,580,800			$	30,140,288			$	22,640,122
Less intangible assets - GAAP		449,213				448,425			452,255				453,539				311,103
Tangible assets		$	27,235,241			$	27,611,905		$	28,128,545			$	29,686,749			$	22,329,019

Tangible Metrics
Common shares outstanding - GAAP		81,373,760				81,220,269			81,157,173				81,405,391				64,254,700
Tangible common equity per share		$	27.93			$	27.73		$	27.18			$	26.64			$	28.65
Tangible equity to tangible assets		9.45		%		9.24		%	8.91		%		8.31		%		9.59		%


		Three Months Ended
Average Tangible Measures	December 31, 2024				September 30, 2024				June 30, 2024			March 31, 2024				December 31, 2023
		(Unaudited - In thousands, except for ratio data)
Average shareholders equity - GAAP		$	3,015,197			$	2,996,093		$	2,947,056			$	2,638,483			$	2,447,580
Less average preferred stock - GAAP		300,000				300,000			300,000				300,000				300,000
Less average intangible assets - GAAP		447,754				451,204			453,142				360,251				311,022
Average tangible common equity		$	2,267,443			$	2,244,889		$	2,193,914			$	1,978,232			$	1,836,558

Average Assets - GAAP		$	27,504,576			$	28,000,482		$	29,703,337			$	24,907,376			$	22,381,459
Less average intangible assets - GAAP		447,754				451,204			453,142				360,251				311,022
Average tangible assets		$	27,056,822			$	27,549,278		$	29,250,195			$	24,547,125			$	22,070,437

Average Tangible Metrics
Net income - GAAP		47,267				61,140			64,560				15,888				58,453
Net income available to common shareholders - GAAP		43,611				57,484			60,904				12,232				54,797
Return on tangible common equity		7.69		%		10.24		%	11.10		%		2.47		%		11.93		%
Return on tangible assets		0.70		%		0.89		%	0.88		%		0.26		%		1.06		%


		Three Months Ended
Net Income Adjusted for Acquisition Expenses and Other Non-Operating Items	December 31, 2024			September 30, 2024			June 30, 2024		March 31, 2024			December 31, 2023
		(Unaudited - In thousands, except for ratio data)
Interest income
LBC Hedge Valuation Adj		$	3,933		$	—	$	—		$	—		$	—

Non-interest income adjustments
Distribution received on LBC equity method investment		$	(279)		$	(288)	$	(299)		$	(287)		$	—
(Gain)Loss on WaFd Bank equity method investment		48			(896)		(748)			2,195			693
Total non-interest income adjustments		$	(231)		$	(1,184)	$	(1,047)		$	1,908		$	693

Non-interest expense adjustments
Acquisition-related expenses		$	239		$	(1,602)	$	2,285		$	25,120		$	516
Non-operating expenses:
Restructuring Charges		5,390			—		—			—			—
FDIC Special Assessment		—			(216)		—			1,800			500
Legal and Compliance Accruals		—			(182)		—			3,000			—
Charitable Donation		—			—		—			2,000			—
		5,390			(398)		—			6,800			500
Total non-interest expense adjustments		$	5,629		$	(2,000)	$	2,285		$	31,920		$	1,016

Net Income - GAAP		$	47,267		$	61,140	$	64,560		$	15,888		$	58,453
Preliminary ACL provision on LBC loans		—			—		—			16,000			—
Interest income adjustments		3,933			—		—			—			—
Non-interest income adjustments		(231)			(1,184)		(1,047)			1,908			693
Non-interest expense adjustments		5,629			(2,000)		2,285			31,920			1,016
REO adjustments		(429)			83		124			1,315			(1,826)
Income tax adjustment		(1,918)			751		(299)			(12,274)			22
Net Income - non-GAAP		$	54,251		$	58,790	$	65,623		$	54,757		$	58,358

Dividend on preferred stock		3,656			3,656		3,656			3,656			3,656
Net Income available to common shareholders - non-GAAP		$	50,595		$	55,134	$	61,967		$	51,101		$	54,702

Basic weighted average number of shares outstanding - GAAP		81,294,227			81,208,683		81,374,811			70,129,072			64,297,499
Diluted weighted average number of shares outstanding - GAAP		81,401,599			81,353,644		81,393,708			70,164,558			64,312,110

Basic EPS - non-GAAP		$	0.62		$	0.68	$	0.76		$	0.73		$	0.84
Diluted EPS - non-GAAP		0.62			0.68		0.76			0.73			0.84


		Three Months Ended
Adjusted Efficiency Ratio	December 31, 2024				September 30, 2024				June 30, 2024			March 31, 2024				December 31, 2023
		(Unaudited - In thousands, except for ratio data)
Efficiency ratio - GAAP		65.0		%		57.2		%	56.6		%		77.7		%		58.0		%

Net interest income - GAAP		$	155,431			$	172,812		$	177,186			$	158,597			$	152,237
Total interest income adjustments		3,933				—			—				—				—
Net interest income - non-GAAP		$	159,364			$	172,812		$	177,186			$	158,597			$	152,237

Non-interest expense - GAAP		$	111,311			$	107,941		$	110,079			$	133,712			$	96,540
Less merger related expenses		239				(1,602)			2,285				25,120				516
Less non-operating expenses		5,390				(398)			—				6,800				500
Non-interest Expenses - non-GAAP		$	105,682			$	109,941		$	107,794			$	101,792			$	95,524

Non-interest income - GAAP		$	15,702			$	15,878		$	17,255			$	13,392			$	14,167
Total other income adjustments		(231)				(1,184)			(1,047)				1,908				693
Non-interest income - non-GAAP		$	15,471			$	14,694		$	16,208			$	15,300			$	14,860

Net Interest Income - non-GAAP		$	159,364			$	172,812		$	177,186			$	158,597			$	152,237
Non-interest income - non-GAAP		15,471				14,694			16,208				15,300				14,860
Total Income - non-GAAP		$	174,835			$	187,506		$	193,394			$	173,897			$	167,097

Adjusted Efficiency Ratio		60.4		%		58.6		%	55.7		%		58.5		%		57.2		%


		Three Months Ended
Adjusted ROA and ROE	December 31, 2024				September 30, 2024				June 30, 2024			March 31, 2024				December 31, 2023
		(Unaudited - In thousands, except for ratio data)
Reported:
Net Income - GAAP		$	47,267			$	61,140		$	64,560			$	15,888			$	58,453
Net income available to common shareholders - GAAP		$	43,611			$	57,484		$	60,904			$	12,232			$	54,797

Average Assets		27,504,576				28,000,482			29,703,337				24,907,376				22,381,459
Return on Assets		0.69		%		0.87		%	0.87		%		0.26		%		1.04		%

Average Common Equity		$	2,715,197			$	2,696,093		$	2,647,056			$	2,338,483			$	2,147,580
Return on common equity		6.42		%		8.53		%	9.20		%		2.09		%		10.21		%

Adjusted:
Net Income - non-GAAP		$	54,251			$	58,790		$	65,623			$	54,757			$	58,358
Net income available to common shareholders - non-GAAP		$	50,595			$	55,134		$	61,967			$	51,101			$	54,702

Average Assets		27,504,576				28,000,482			29,703,337				24,907,376				22,381,459
Adjusted Return on Assets		0.79		%		0.84		%	0.88		%		0.88		%		1.04		%

Average Common Equity		2,715,197				2,696,093			2,647,056				2,338,483				2,147,580
Adjusted Return on common equity		7.45		%		8.18		%	9.36		%		8.74		%		10.19		%

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, 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.










Yield and margin as of period end
Loans receivable1	5.44	%	5.62	%
Mortgage-backed securities	4.12		4.00
Combined cash, investments and FHLB stock	4.77		5.10
Interest-earning assets	5.26		5.44
Interest-bearing customer accounts	3.30		3.50
Borrowings1	3.62		3.93
Interest-bearing liabilities	3.34		3.56
Net interest spread	1.92		1.88
Net interest margin	2.45		2.44


			Thursday, January 16, 2025 FOR IMMEDIATE RELEASE