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WAFD Inc Reports 13% Increase in Net Income

Wafd, Inc. reported fiscal 2026 net income of $255.9 million, up 13% from $226.1 million in fiscal 2025, while diluted earnings per share rose 22% to $3.21 from $2.63.

Fourth-quarter net income was $60.0 million, down 9% from $66.1 million in the June quarter. Diluted EPS fell to $0.76 from $0.84.

Revenue and margin were steadier in the quarter. Net interest income increased to $182.4 million from $181.3 million, while net interest margin held at 2.81%, unchanged from the prior quarter and up from 2.70% in the December quarter.

Non-interest income climbed to $38.1 million from $24.2 million, driven by a $16.4 million gain on the sale of single-family loans. Non-interest expense rose to $121.5 million from $110.3 million, pushing the efficiency ratio to 55.12% from 53.69%.

Credit quality improved sharply by period-end. Non-performing assets fell to $86 million, or 0.32% of total assets, from $136 million, or 0.49%, in the June quarter and from $143 million, or 0.54%, a year earlier. Delinquent loans dropped to 0.50% of total loans from 0.75% in the prior quarter and 0.60% a year earlier. Non-accrual loans declined to 0.40% of net loans from 0.64% in June and 0.64% a year earlier.

The company recorded $39.2 million in net charge-offs in the quarter, compared with $1.6 million in the prior quarter. For the full year, net charge-offs were $45.1 million, up from $11.8 million in fiscal 2025.

Total assets ended the year at $27.23 billion, up from $26.70 billion a year earlier. That increase came even as net loans declined to $19.04 billion from $20.09 billion, while investment securities rose to $4.94 billion from $4.18 billion.

Customer deposits were $21.32 billion at year-end, down slightly from $21.44 billion a year earlier. Transaction deposits increased to $12.88 billion from $12.31 billion, while time deposits fell to $8.45 billion from $9.13 billion.

Borrowings increased to $2.49 billion from $1.77 billion a year earlier. The company said loan origination volume for active loan types reached $5.5 billion in fiscal 2026, up from $4.0 billion in fiscal 2025, while the loan portfolio yield increased to 5.44% from 5.38%.

Tangible common equity per share rose to $30.51 from $29.38 a year earlier. During the year, the company repurchased 4.7 million shares at a weighted average price of $31.00. Following these announcements, the company's shares moved 1.87%, and are now trading at a price of $29.45. For the full picture, make sure to review WAFD INC's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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