WaFd Inc. Q1 2026 Earnings Report

WaFd Inc., the parent company of WaFd Bank, has released its quarterly earnings report for the first fiscal quarter of 2026. The company has shown a solid performance with significant growth in key financial metrics, despite some challenges in credit quality. Financial Highlights For the quarter ended December 31, 2025, WaFd Inc. reported a net income of $64.2 million, a 6% increase from the previous quarter and a 36% increase from the same period last year. The diluted earnings per share (EPS) stood at $0.79, up from $0.72 in the previous quarter and $0.54 in the same quarter last year, marking a 46% year-over-year increase.Net interest income for the quarter was $171 million, slightly up from $170 million in Q4 fiscal 2025. The net interest margin (NIM) was 2.70%, a slight decrease from 2.71% in the previous quarter. Non-interest income increased by $2 million, while non-interest expenses decreased by $1 million, leading to an improved efficiency ratio of 55.25% compared to 56.82% in the prior quarter. Business and Operational Highlights WaFd Bank's total assets increased to $27.3 billion as of December 31, 2025, primarily due to the purchase of investment securities. The bank's investment securities grew by $728 million, or 17.4%, during the quarter. However, net loans decreased by $0.2 billion to $19.8 billion, and cash increased by $0.1 billion, or 11.8%.Customer deposits remained largely unchanged at $21.4 billion, with transaction accounts increasing by $559 million or 4.5%, while time deposits decreased by $580 million or 6.4%. The effective weighted average interest rate on deposits was 2.56%, down from 2.69% in the previous quarter. Strategic Initiatives and Corporate Developments During the quarter, WaFd Inc. repurchased 1,950,013 shares of common stock at a weighted average price of $29.75 per share. The company also paid a cash dividend of $0.27 per share on December 5, 2025, marking the 171st consecutive quarterly dividend.Loan originations for active loan types totaled $1.1 billion, compared to $1.4 billion in the prior quarter. The period-end interest yield on the loan portfolio was 5.24%, a decrease from 5.38% in the previous quarter. Management's Perspective Brent Beardall, President and CEO of WaFd Bank, commented, "We are off to a solid start in fiscal 2026, with a 10% increase in earnings per share on a linked quarter basis and a 46% increase compared to the same period last year. Earnings were driven by a steady margin, increases in other income, and lower expenses. Increases in delinquent and non-performing loans have our full attention, yet current levels reflect normal stress in a diversified portfolio. We believe we are well reserved for any losses that may materialize." Future Outlook WaFd Inc. remains optimistic about its future performance, with expectations of stronger loan production in the coming months. The company is also focused on maintaining its strong financial position and continuing to deliver value to its shareholders through strategic share repurchases and consistent dividend payments.Original SEC Filing: WAFD INC [ WAFD ] - 8-K - Jan. 16, 2026DisclaimerThis is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.