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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 a year earlier. Diluted earnings per common share rose to $3.21 from $2.63, a gain of 22%.

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.

Total assets increased to $27.23 billion at Sept. 30, 2026 from $26.70 billion a year earlier. The company added $1.4 billion of securities during the year, lifting investment securities to $4.94 billion from $4.18 billion, while net loans declined to $19.04 billion from $20.09 billion.

Deposits totaled $21.32 billion, down slightly from $21.44 billion a year earlier. Transaction deposits increased to $12.88 billion from $12.31 billion, a 4.6% gain, while time deposits fell to $8.45 billion from $9.13 billion.

Borrowings rose to $2.49 billion from $1.77 billion a year earlier. The company said the weighted average rate on borrowings was 3.0% versus 2.5% a year ago.

Loan originations for active loan types were $5.5 billion in fiscal 2026, up from $4.0 billion in fiscal 2025. Loan repayments were $3.9 billion, compared with $5.1 billion the prior year. Commercial loans accounted for 95% of originations.

Net interest income in the fourth quarter was $182.4 million, up from $181.3 million in the prior quarter. Net interest margin held at 2.81%, unchanged from the June quarter and up from 2.70% a year earlier.

Non-interest income increased to $38.1 million from $24.2 million in the prior quarter. 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 from the June quarter. Non-performing assets fell to $86 million, or 0.32% of total assets, from $136 million, or 0.49%. Delinquencies dropped to 0.50% of total loans from 0.75%. Non-accrual loans declined to $52 million from $104 million.

The allowance for credit losses was $215 million at Sept. 30, 2026, down from $234 million at June 30, 2026. Net charge-offs were $39.2 million in the quarter, up from $1.6 million in the prior quarter, and $45.1 million for the full year, compared with $11.8 million in fiscal 2025.

Tangible common equity per share rose to $30.51 from $29.38 a year earlier. Common shares outstanding fell to 74.0 million from 78.2 million. The company repurchased 4.7 million shares during the year at a weighted average price of $31.00. The market has reacted to these announcements by moving the company's shares 1.87% to a price of $29.45. Check out the company's full 8-K submission here.

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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