Wafd, Inc. reported third-quarter fiscal 2026 net income of $66.1 million, up from $65.5 million in the March quarter and $62.0 million a year earlier.
Diluted earnings per share rose to $0.84 from $0.82 in the prior quarter and $0.73 in the same quarter last year, a 2% increase quarter over quarter and 15% year over year.
Net interest income increased to $181 million from $178 million in the March quarter, while net interest margin held at 2.81%, unchanged from the prior quarter.
Non-interest income climbed to $24.2 million from $19.8 million, helped by gains on the sale of bank real estate and lower losses on equity method investments. Non-interest expense was essentially flat at $110.3 million, up just $0.5 million, or 0.4%, from the prior quarter.
That combination pushed the efficiency ratio down to 53.69% from 55.66% in the March quarter.
Return on tangible common equity improved to 11.04% from 10.82%, while return on assets was 0.96%, unchanged from the prior quarter.
On the balance sheet, total assets edged up to $27.6 billion from $27.57 billion in March and $26.70 billion at the end of September. The biggest shift was in investments: total securities rose to $5.05 billion from $4.91 billion at the start of the fiscal year, including a jump in available-for-sale securities to $4.19 billion from $3.53 billion.
Loans receivable, net, were $20.02 billion, up slightly from $19.97 billion in March but down from $20.09 billion at the end of September. Cash increased to $676 million from $670 million in March. Total deposits slipped to $20.93 billion from $21.12 billion in March and $21.44 billion at the end of September.
Transaction deposits were $12.75 billion, essentially unchanged from March but up from $12.31 billion in September. Time deposits fell to $8.19 billion from $8.38 billion in March and $9.13 billion in September.
Borrowings rose to $3.32 billion from $3.11 billion in March and $1.77 billion at the end of September.
Shareholders’ equity increased to $3.02 billion from $2.98 billion in March, while common shareholders’ equity per share rose to $36.81 from $36.30. Tangible book value per share increased to $30.82 from $29.38 at the end of September.
Credit metrics moved modestly. Non-performing assets rose to $136 million, or 0.49% of total assets, from $132 million, or 0.48%, in March, but were down from $143 million, or 0.54%, at the end of September. Delinquencies improved to 0.75% of total loans from 0.78% in March, though they were above the 0.26% reported a year earlier. Net charge-offs were $1.6 million, up from $0.6 million in the prior quarter.
The allowance for credit losses increased to $234 million from $221 million at the end of September, and the ratio of allowance to gross loans rose to 1.08% from 1.04%.
The company repurchased 8,806 shares during the quarter at a weighted average price of $36.20. Shares outstanding fell to 73.95 million from 78.19 million a year earlier.
Wafd paid a quarterly cash dividend of $0.27 per share during the period, marking its 173rd consecutive quarterly dividend. Following these announcements, the company's shares moved -3.31%, and are now trading at a price of $38.02. For the full picture, make sure to review WAFD INC's 8-K report.
