WaFd Bank’s third quarter ended June 30, 2026 with net income of $66.1 million, up from $65.6 million in the prior quarter and $64.2 million in the quarter before that. Earnings per share rose to $0.84 from $0.82 in Q2 and $0.79 in Q1.
Profitability and efficiency also improved. Return on average tangible common equity increased to 11.04% from 10.82% in Q2 and 10.57% in Q1. The efficiency ratio fell to 53.69% from 55.66% in Q2 and 55.25% in Q1.
Credit metrics remained tight. Adversely classified loans declined to 2.59% of net loans from 2.60% in Q2 and 2.94% in Q1. Delinquencies edged down to 0.75% from 0.78% in Q2 and 1.07% in Q1. Non-accruals were 0.64%, unchanged from Q2 and down from 0.96% in Q1.
Balance-sheet growth was modest but positive. Net loans increased by $51 million in the quarter, while active loan balances grew by $466 million. New loan originations totaled $1.5 billion, flat with Q2 and up $825 million from Q3 2025. Commercial loans represented 95% of year-to-date 2026 originations, compared with 83% in 2015.
The loan mix continued to shift away from mortgage and consumer lending. Those categories made up 36% of total net loans, down from 41% in 2015.
Deposits stood at $20.9 billion at June 30, 2026. Transaction accounts accounted for 60.9% of deposits, up from 56.0% a year earlier, while time deposits fell to 39.1% from 44.0%. Non-interest-bearing deposits made up 12.6% of total deposits.
Liquidity strengthened. Cash and securities totaled $5.7 billion, or 21% of assets, up from $4.7 billion and 18% of assets a year earlier. The investment portfolio was $5.0 billion with a duration of 3.1 years, and 35% of it was variable rate.
Capital levels moved slightly lower on some measures but remained solid. Common equity per share rose to $36.81 from $36.30 in Q2 and $35.70 in Q1. Tangible common equity per share increased to $30.82 from $30.27 and $29.91. Equity to assets was 10.95%, down from 10.81% in Q2 but above 10.81% in Q2? Actually it was 10.81% in Q2 and 11.10% in Q1, while tangible common equity to tangible assets was 9.50%, up from 9.35% in Q2 and 9.64% in Q1. CET1 was 11.36%, up slightly from 11.35% in Q2 but below 11.69% in Q1.
Asset quality remained strong. Non-performing assets were $136 million, equal to 0.49% of total assets. The allowance for credit losses was $215 million, or 168% of total non-performing loans. Net charge-offs remained low through year-to-date 2026.
On the community side, WaFd reported $390 million invested in community development lending, 206 grants totaling more than $1.0 million for fiscal 2025, 14,649 volunteer hours, and $1.5 million raised through its United Way matching campaign. As a result of these announcements, the company's shares have moved 0.71% on the market, and are now trading at a price of $36.69. If you want to know more, read the company's complete 8-K report here.
