WaFd Inc

Latest Results (27.02.2026):

WaFd Inc. reported results for the fourth quarter of fiscal 2025 (Q4 2025). For the quarter ended September 30, 2025, WaFd Inc. recorded net income of $60.6 million ($0.72 diluted EPS) and finished the fiscal year with $226.1 million in net income ($2.63 diluted EPS). The company reported a modestly improving net interest margin, stable deposit funding, higher loan originations for the year, an increase in non‑performing assets in Q4, and continued share buybacks and a cash dividend.

Earnings & EPS

Q4 2025 net income was $60.6M, down ~2% from Q3; diluted earnings per common share were $0.72 (vs. $0.73 prior quarter). Full fiscal 2025 net income was $226.1M, up 13% year‑over‑year, with diluted EPS of $2.63 (up $0.13 or 5.2% vs. FY2024).

Net interest income & margin

Net interest income in Q4 2025 was $169.9M (up $1.9M QoQ). Net interest margin increased to 2.71% in Q4 (2.69% in Q3), driven by lower funding costs as borrowings and deposit costs declined.

Balance sheet & deposits

Total assets were $26.7B and total customer deposits were $21.44B at Sept. 30, 2025 (largely unchanged year‑over‑year). Net loans decreased to $20.09B. Transaction accounts and core deposits rose (transaction accounts ~57.4% of deposits; core deposits 77.9%). Investment securities grew ~38.9% year‑over‑year as cash and borrowings were reduced.

Credit quality

Non‑performing assets rose to $143M (0.54% of assets) at quarter end, driven by one commercial real estate loan moving >90 days past due; delinquencies increased to 0.60% of loans. Allowance for credit losses (including unfunded commitments) was $221M, ~1.04% of gross loans. Net charge‑offs were modest: $1.0M in the quarter and $11.8M for the year.

Expenses, efficiency & income mix

Total non‑interest income was flat at $18.4M in Q4; non‑interest expense rose to $107.0M (up $2.7M QoQ) due to strategic investments in staff and technology. The efficiency ratio increased to 56.82% (from 56.01% in Q3).

Capital return & shareholder actions

WaFd paid a $0.27 per share quarterly cash dividend on September 5, 2025 (170th consecutive quarter). The company repurchased 969,653 shares in Q4 at a weighted average price of $29.74; FY2025 buybacks totaled 3,447,771 shares. Tangible common book value rose to $29.38 per share at Sept. 30, 2025.

Strategy & outlook

Management emphasized a strategic shift away from mortgage lending toward commercial/business solutions, noting a 103% increase in new loan originations over Q3, a three‑quarter build in the loan pipeline, and a slight improvement in deposit mix (checking increased from 33% to 35% of deposits over the year) as evidence of early traction.