WaFd Announces Fiscal 2026 Earnings and 22% Increase in EPS Fiscal Year
WAFD INC (WAFD) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Thursday, October 15, 2026 FOR IMMEDIATE RELEASE WaFd Announces Fiscal 2026 Earnings and 22% Increase in EPS Fiscal Year Highlights $256 Million $3.21 0.94% 10.68% Net Income Diluted Earnings per Common Share Return on Average Assets Return on Tangible Common Equity
How this was made
The 30-second read
Why it matters
The earnings beat and EPS growth are likely to lift the stock, though credit‑quality concerns and loan charge‑offs provide downside risk.
Market read
First‑report earnings release with material financial improvements; expected short‑term price upside for WAFD.
What to watch
Charge‑off of a large loan and declining loan balances may temper long‑term outlook.
WaFd Announces Fiscal 2026 Earnings and 22% Increase in EPS
Fiscal 2026 net income increased to $255,865,000 and diluted earnings per common share increased to $3.21, while fourth-quarter net income declined to $59,991,000 from $66,130,000 in the prior quarter as provision for credit losses and non-interest expense increased.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q4 2026 total interest income (in thousands)GAAP | $336.5M | – | – |
| Q4 2026 interest expense (in thousands)GAAP | $154.1M | – | – |
| Q4 2026 net interest income (in thousands)GAAP | $182.4M | $1 million or 0.6% | – |
| Q4 2026 net interest marginGAAP | 2.81 % | the same as the quarter ended June 30, 2026 | – |
| Q4 2026 provision for credit losses (in thousands)GAAP | $20M | – | – |
| Q4 2026 total non-interest income (in thousands)GAAP | $38.08M | – | – |
| Q4 2026 gain on sale of loans (in thousands)GAAP | $16.41M | – | – |
| Q4 2026 total non-interest expense (in thousands)GAAP | $121.5M | $11.2 million, or 10.1% | – |
| Q4 2026 income before income taxes (in thousands)GAAP | $77.08M | – | – |
| Q4 2026 income tax provision (in thousands)GAAP | $17.09M | – | – |
| Q4 2026 effective tax rateGAAP | 22.17% | – | – |
| Q4 2026 net income (in thousands)GAAP | $59.99M | decrease of 9% | – |
| Q4 2026 net income available to common shareholders (in thousands)GAAP | $56.34M | – | – |
| Q4 2026 diluted earnings per common shareGAAP | 0.76 | – | – |
| Q4 2026 basic earnings per common shareGAAP | $ 0.76 | – | – |
| Q4 2026 net income (in thousands)non-GAAP | $66.42M | – | – |
| Q4 2026 diluted EPSnon-GAAP | 0.85 | – | – |
| Q4 2026 adjusted efficiency rationon-GAAP | 52.3 % | – | – |
| Q4 2026 return on average assetsGAAP | 0.87 % | – | – |
| Q4 2026 return on tangible assetsnon-GAAP | 0.89 % | – | – |
| Q4 2026 return on tangible common equitynon-GAAP | 9.85 % | – | – |
| Q4 2026 efficiency ratioGAAP | 55.12 % | – | – |
| Fiscal 2026 total interest income (in thousands)GAAP | $1.32B | – | – |
| Fiscal 2026 net interest income (in thousands)GAAP | $712.4M | – | – |
| Fiscal 2026 provision for credit losses (in thousands)GAAP | $38.5M | – | – |
| Fiscal 2026 total non-interest income (in thousands)GAAP | $102.3M | – | – |
| Fiscal 2026 total non-interest expense (in thousands)GAAP | $447.4M | – | – |
| Fiscal 2026 net income (in thousands)GAAP | $255.9M | – | increase of 13% |
| Fiscal 2026 net income available to common shareholders (in thousands)GAAP | $241.2M | – | – |
| Fiscal 2026 diluted earnings per common shareGAAP | 3.21 | – | $0.58 or 22% increase in fully diluted earnings per common share |
| Fiscal 2026 basic earnings per common shareGAAP | $ 3.21 | – | – |
| Fiscal 2026 return on average assetsGAAP | 0.94 % | – | – |
| Fiscal 2026 return on average common equityGAAP | 8.85 % | – | – |
| September 30, 2026 total assets (in thousands)GAAP | $27.23B | – | – |
| September 30, 2026 cash and cash equivalents (in thousands)GAAP | $749.7M | – | – |
| September 30, 2026 loans receivable, net (in thousands)GAAP | $19.04B | – | – |
| September 30, 2026 loans held for sale (in thousands)GAAP | $428.9M | – | – |
| September 30, 2026 total investments (in thousands)GAAP | $4.94B | – | 18.1% |
| September 30, 2026 total customer deposits (in thousands)GAAP | $21.32B | – | – |
| September 30, 2026 transaction deposits (in thousands)GAAP | $12.88B | – | $569 million or 4.6% |
| September 30, 2026 time deposits (in thousands)GAAP | $8.45B | – | $686 million or 7.5% decrease |
| September 30, 2026 borrowings, senior debt and junior subordinated debentures (in thousands)GAAP | $2.55B | – | – |
| September 30, 2026 total shareholders' equity (in thousands)GAAP | $3.00B | – | – |
| September 30, 2026 tangible common equity per sharenon-GAAP | $ 30.51 | – | – |
| September 30, 2026 non-performing assetsother | $86 million, or 0.32% of total assets | – | – |
| September 30, 2026 delinquencies to net loansother | 0.50 % | – | – |
| Q4 2026 net charge-offsother | $39.2M | – | – |
| Fiscal 2026 net charge-offsother | $45.1M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- On September 4, 2026, the Company paid a cash dividend of $0.27 per share, 174th consecutive quarterly dividend paid.
- During the year, the Company repurchased 4,703,844 shares of common stock at a weighted average price of $31.00.
- Our share repurchase plan currently has an authorization of 7,992,669 shares.
- Fiscal 2026 cash dividends per common share were 1.08, compared to 1.07 for fiscal 2025.
What drove it
- Loan originations for active loan types totaled $5.5 billion for fiscal year 2026, compared to $4.0 billion of originations in fiscal year 2025.
- Commercial loans represented 95% of all loan originations during fiscal 2026 and consumer loans accounted for the remaining 5%.
- Fourth-quarter non-interest income increased primarily because of a $16.4 million gain on the sale of single family loans.
- Fourth-quarter non-interest expense reflected continued investments in people and technologies and $6 million in merger related costs.
- Asset quality improved primarily through resolution of a $53 million loan relationship, resulting in a $36 million charge-off.
- EverBank Merger announced on September 7, 2026.
Concerns
- Net income declined from $66,130,000 in the prior quarter to $59,991,000 in the fourth fiscal quarter.
- The fourth-quarter provision for credit losses was $20.0 million, compared to $11.0 million in the prior quarter.
- Net charge-offs were $39.2 million for the quarter and $45.1 million for fiscal 2026, compared to $11.8 million for fiscal 2025.
- Fourth-quarter total non-interest expense increased $11.2 million, or 10.1%, from the prior quarter.
- Borrowings totaled $2.5 billion as of September 30, 2026, up from $1.8 billion at September 30, 2025, while the effective weighted average interest rate of borrowings was 3.0%, compared to 2.5%.
- The Company disclosed risks relating to completion, cost and integration of the proposed transaction between WaFd and EverBank.
What to watch
- Finalization of the agreement to sell $429 million of multifamily loans in the first quarter of fiscal 2027 and the expected net gain of approximately $7 million.
- The outlook for credit quality following the $36 million charge-off associated with the resolved loan relationship.
- Net interest margin after it was 2.81% in both the fourth fiscal quarter and the quarter ended June 30, 2026.
- Expense levels and merger-related costs following $6 million incurred in the fourth quarter.
- Deposit composition, including transaction accounts at 60.4% of deposits and uninsured or not collateralized deposits at 25.7% of total deposits as of September 30, 2026.
Balance sheet and cash flow
- Total assets were $27.2 billion as of September 30, 2026, compared to $26.7 billion at September 30, 2025.
- Investment securities increased by $0.8 billion, or 18.1% in the year ended September 30, 2026, following $1.4 billion in purchases, primarily discount-priced 30-year mortgage backed securities at an expected yield to maturity of 5%.
- Net loans decreased $1.0 billion to $19.0 billion as a result of loan sale related activity.
- The Company sold $543 million of single-family residential loans during the September quarter and entered into an agreement to sell $429 million of multifamily loans in the first quarter of fiscal 2027.
- The Company expects to realize a net gain of approximately $7 million when the multifamily-loan sale is finalized.
- Customer deposits totaled $21.3 billion as of September 30, 2026, compared to $21.4 billion at September 30, 2025.
- Operating cash flow, investing cash flow, financing cash flow, and free cash flow were not reported.
Analysis
WaFd reported fiscal 2026 net income of $255,865,000, up 13% from $226,068,000, while diluted earnings per common share increased $0.58, or 22%, to $3.21. Annual net interest income increased to $712,372 thousand from $654,235 thousand and total non-interest income increased to $102,330 thousand from $71,247 thousand. Return on average assets was 0.94%, compared with 0.84%, and return on average common equity was 8.85%, compared with 7.75%.
Fourth-quarter earnings moderated. Net income was $59,991 thousand, compared with $66,130 thousand in the prior quarter, and diluted earnings per common share were 0.76, compared with 0.84. Net interest income increased modestly to $182,353 thousand from $181,338 thousand, while net interest margin was unchanged at 2.81%. A $16,412 thousand gain on sale of loans raised fourth-quarter non-interest income to $38,084 thousand from $24,178 thousand in the prior quarter.
Credit costs and expenses were the principal fourth-quarter offsets. Provision for credit losses was $20,000 thousand, versus $11,000 thousand in the prior quarter, and net charge-offs were $39.2 million versus $1.6 million. The company tied the quarter's credit developments to resolution of a $53 million loan relationship resulting in a $36 million charge-off. At the same time, non-performing assets declined to $86 million, or 0.32% of total assets, and delinquencies declined to 0.50% of total loans. Total non-interest expense increased to $121,495 thousand from $110,334 thousand, including $6 million in merger related costs, and the GAAP efficiency ratio rose to 55.12% from 53.69%.
The balance sheet shifted toward securities and a more transaction-oriented deposit mix. Investment securities increased $0.8 billion, or 18.1%, during fiscal 2026 following $1.4 billion of purchases. Net loans decreased $1.0 billion to $19.0 billion because of loan-sale activity, including $543 million of single-family residential loans sold in the September quarter. Transaction accounts increased $569 million, or 4.6%, while time deposits decreased $686 million, or 7.5%. Borrowings rose to $2.5 billion from $1.8 billion year over year.
Capital allocation included repurchase of 4,703,844 shares at a weighted average price of $31.00 and a $0.27 per-share quarterly cash dividend. The filing provides no formal financial outlook. Its disclosed forward items are the planned $429 million multifamily-loan sale in the first quarter of fiscal 2027, an expected net gain of approximately $7 million upon finalization, and the announced EverBank merger, which adds transaction completion and integration considerations.
Management, verbatim
We are pleased to report the results for our fiscal year end 2026, including increasing earnings per share by 22%, increasing our transaction deposit balances by 4.6%, and growing our active loan segments by 7.9% along with seeing significant improvements in asset quality measures.
Brent Beardall, President and CEO of WaFd Bank
Not in the filing
stated, not guessed- Formal forward guidance for revenue, gross margin, operating expenses, tax rate, earnings, net interest income, net interest margin, loans, deposits, or credit costs was not provided.
- Previous-release outlook was not provided.
- Segment revenue and segment profitability were not reported.
- Gross margin was not reported.
- Operating income was not reported.
- Cash flow from operations, investing activities, financing activities, and free cash flow were not reported.
- A separate CFO commentary was not provided.
- Consensus estimates, analyst expectations, price targets, and share-price reaction were not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
WaFd Inc. (Nasdaq: WAFD) released its FY2026 earnings via a Form 8‑K, reporting a 22% increase in diluted EPS and a 13% rise in net income.
Ticker impact
WaFd Inc. disclosed FY2026 earnings with EPS up 22% and annual net income up 13% in its 8‑K filing.
likely upside as investors price in the earnings beat and higher EPS
The filing provides fresh, material earnings numbers that were not public before; the 22% EPS rise and 13% net income increase are sizable for a regional bank.
Market effects
Regional banking sector may see modest rally on earnings beat.
Pacific Northwest banks could benefit from higher interest‑rate environment highlighted by WaFd.
Limited; impact confined to U.S. regional banking niche.
Counterpoint
Higher interest rates could pressure loan growth despite earnings beat.
Key entities
- companyWaFd Inc.
Regional bank reporting FY2026 earnings.
- executiveBrent Beardall
President and CEO of WaFd who commented on earnings.
