Wafd, Inc. reported fiscal 2026 net income of $255.9 million, up 13% from $226.1 million in fiscal 2025. Diluted earnings per common share rose to $3.21 from $2.63, a gain of $0.58, or 22%.
For the fiscal fourth quarter, net income was $60.0 million, down 9% from $66.1 million in the prior quarter. Diluted EPS fell to $0.76 from $0.84.
The balance sheet expanded to $27.23 billion at Sept. 30, 2026 from $26.70 billion a year earlier. That increase came with a sharp shift in assets: investment securities climbed to $4.94 billion from $4.18 billion, while net loans fell to $19.04 billion from $20.09 billion.
Deposits were little changed year over year at $21.32 billion, down slightly from $21.44 billion. But the mix moved toward transaction accounts, which increased to $12.88 billion from $12.31 billion, while time deposits dropped to $8.45 billion from $9.13 billion.
Borrowings rose to $2.49 billion from $1.77 billion a year earlier. On the liability side, the company’s effective weighted average rate on borrowings increased to 3.0% from 2.5%.
Loan production increased materially during the year. Originations for active loan types totaled $5.5 billion in fiscal 2026, up from $4.0 billion in fiscal 2025. Commercial loans accounted for 95% of that volume.
Credit quality improved sharply in the quarter. Non-performing assets dropped to $86 million, or 0.32% of total assets, from $136 million, or 0.49%, at June 30, 2026, and from $143 million, or 0.54%, a year earlier. Delinquent loans fell 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% at June 30 and 0.64% a year earlier. Total criticized loans improved to 4.66% of net loans from 4.93% in the prior quarter, while adversely classified loans fell to 2.56% from 2.59%.
The allowance for credit losses was $215 million at quarter-end, down from $234 million in the prior quarter. Net charge-offs jumped to $39.2 million in the fourth quarter from $1.6 million in the June quarter, and full-year net charge-offs totaled $45.1 million versus $11.8 million in fiscal 2025.
Net interest income in the fourth quarter was $182.4 million, up from $181.3 million in the prior quarter. Net interest margin was unchanged at 2.81%.
Non-interest income increased to $38.1 million from $24.2 million, while non-interest expense rose to $121.5 million from $110.3 million. The efficiency ratio increased to 55.12% from 53.69%.
Shareholders’ equity was $3.00 billion at Sept. 30, 2026, down slightly from $3.04 billion a year earlier. Tangible common equity per share rose to $30.51 from $29.38. The company repurchased 4.7 million shares during the year 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. If you want to know more, read the company's complete 8-K report here.
