WaFd, Inc. reports strong Q3 earnings on back of Luther Burbank Corp. acquisition, eyes future growth

WaFd, Inc.’s WAFD reported better-than-expected earnings for the third quarter of fiscal 2024, with adjusted earnings of 76 cents per share exceeding the Zacks Consensus Estimate of 59 cents. The acquisition of Luther Burbank Corporation (LBC) contributed to the positive results, boosting net interest income (NII) and other income levels. Despite a rise in expenses and a slight decrease in deposit balance, the company’s net income available to common shareholders significantly increased to $60.9 million or 75 cents per share, marking a notable improvement from the prior quarter.

The total adjusted net revenues for WaFd in the reported quarter reached $193.4 million, surpassing the Zacks Consensus Estimate. Net interest margin stood at 2.56%, slightly contracting, while total customer deposits experienced a small decline. Looking ahead, the company remains optimistic about its financial outlook, with expectations of continued growth fueled by increased loan activity, higher interest rates, and a strengthened balance sheet. The recent LBC acquisition is also anticipated to enhance earnings in fiscal 2025, further expanding WaFd’s presence in the California market.

In related news, BankUnited (BKU) and Commerce Bancshares (CBSH) are set to report their second-quarter 2024 earnings on July 18. The Zacks Consensus Estimate for BKU indicates a 16.7% decline from the previous year’s numbers, while CBSH’s estimate suggests a 6.2% decrease. These upcoming reports will provide further insights into the financial performance of these banking institutions and how they navigate challenges such as rising expenses and economic uncertainties.