WaFd Inc. (Nasdaq: WAFD) announced that it ended its fiscal year on September 30 with more than $200 million in annual profit, nearly a quarter of its reported net income in fiscal 2023.

Net profit of the Seattle-based financial institution which acquired Santa Rosa-based Luther Burbank Savings earlier this year stood at $61.14 million for the third calendar quarter. That’s down more than $3 million from the previous quarter, but up about $11 million year-over-year.

Chairman and CEO Brent Beardall called the numbers “excellent” for the year-end results, considering the period presented as “one of the most challenging macroeconomic environments.” The term refers to banks that play a key role in the overall economy through their simple management of withdrawals, granting loans and holding deposits for communities.

WaFd customer deposits totaled $21.37 billion for the quarter ending September 30, up slightly from the previous three-month period and a 33% year-over-year increase . Part of the increase in deposits over the past two quarters was attributable to the gain from the Luther Burbank Corp. buyout. for $654 million in February.

In other financial barometers, net interest income for the past quarter stood at $172.81 million. Although that figure increased by about $10 million quarter over quarter, the revenue level fell for the fiscal year ending last month to $660.83 million, a drop of more than 4% compared to the previous year. Net interest income marks the difference between the income generated by interest-bearing accounts and the costs of servicing debts.

Total non-interest income increased by about $1 million to $15.87 million, quarter-on-quarter. For the fiscal year ending September 30, 2024, fee revenue resulted in a 16% increase from $52.2 million the previous year.

In lending, WaFd Bank reported a provision for credit losses amounting to $17.5 million for the financial year. This accounting charge was partially provisioned to cover possible losses on loans originating from Luther Burbank Savings, which specializes in multifamily housing.

The other factor influencing reported provisions looms domestically, as inflationary pressures have intensified borrowers’ sensitivity to high interest rates.

Beardall summed up the bank’s cautious optimism by saying: “Perhaps our greatest concern is the possibility of unexpected events. »

Despite the challenges, the WaFd leader sees promise on the horizon.

“WaFd sees significant growth opportunities in each of our nine Western states, where we believe economic growth will outpace overall U.S. growth,” he said.

Founded in 1917, WaFd Bank manages $28 billion in assets, an increase of nearly $6 billion year over year since the Luther Burbank acquisition. It employs more than 2,400 people and operates 210 branches in nine Western states. This includes two locations in North Bay: Santa Rosa and San Rafael.

Susan Wood covers agriculture, law, cannabis, manufacturing, transportation, and banking and finance. She can be reached at 530-545-8662 or [email protected]