WAFD

WaFd's results for the third quarter reflected a combination of robust loan production in key segments and significant loan sale activity, with revenue growth of 6.8% year-over-year but a modest miss of Wall Street's top-line expectations. Management attributed performance to strong origination in commercial and industrial loans, as well as a noteworthy gain from the sale of single-family loans. CFO Kelli Holz highlighted that non-interest income rose due to the $16.4 million gain from these loan sales, though this was partially offset by higher loan loss provisions and merger expenses. CEO Brent Beardall pointed to the resolution of a large problematic loan, noting, "Credit quality measures are strong," following the impairment. Is now the time to buy WAFD? Find out in our full research report (it's free). - Revenue: $200.4 million vs analyst estimates of $203.7 million (6.8% year-on-year growth, 1.6% miss) - Adjusted EPS: $0.85 vs analyst estimates of $0.84 (in line) - Market Capitalization: $2.16 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. - Jeff Rulis (D.A. Davidson) asked about the timing and yields of the recent loan sales and whether more sales are likely. CFO Kelli Holz detailed the closing dates and average yields, while CEO Brent Beardall said future sales would be evaluated opportunistically. - Matthew Clark (Piper Sandler) questioned offset strategies for the decline in earning assets from loan sales and their impact on net interest income. Beardall indicated that higher-yielding investments could partially offset the effect, and noted no definitive expense changes yet. - Clark further inquired about the expense run rate and expectations for core expenses post-merger charges. Beardall explained that year-end "cleanup" inflated expenses, but a stable core run rate is expected going forward. - Andrew Terrell (Stephens) sought clarification on accretion from purchased loans and the impact on future margins. Holz explained that accretion will decrease slightly after the sales, but remaining balances are still significant and will amortize over time. - Kelly Motta (KBW) asked about how merger discussions have affected employee sentiment and the balance sheet strategy for loan sale proceeds. Beardall described optimism among staff and flexibility in reinvesting or paying down borrowings to defend net interest income. In the coming quarters, the StockStory team will monitor (1) progress on closing the EverBank merger and the speed of regulatory approvals, (2) WaFd's ability to reinvest loan sale proceeds efficiently while defending margins, and (3) developments in credit quality, especially as economic headwinds and elevated rates persist. Execution on expense control and technology investment will also be closely watched. WaFd Bank currently trades at $29.15, down from $29.45 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it's flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

This article first appeared on GuruFocus. Release Date: October 16, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - WaFd Inc (NASDAQ:WAFD) reported fiscal 2026 EPS of $3.21, up 22% year-over-year, and net income of $241 million, the second-best year in company history. - Active loan portfolio grew 8% with production of $5.5 billion in fiscal 2026, a 56.6% increase from the prior year, driven by commercial and industrial, commercial real estate, and construction loans. - Credit quality improved with adversely classified loans decreasing to 2.56% of net loans from 2.59% in the prior quarter, and non-performing assets falling to 0.32% of total assets from 0.49%. - Net interest margin held steady at 2.81% and is expected to expand modestly over the next quarter or two as assets reprice faster than liabilities in a rising rate environment. - The proposed merger with EverBank is expected to triple asset size, provide 29% EPS accretion to WaFd Inc (NASDAQ:WAFD) shareholders once cost saves are fully realized, and only 8% dilution at close, with a pro forma CET1 ratio of 9.8%. - WaFd Inc (NASDAQ:WAFD) incurred a $39.2 million net charge-off in the quarter, including a $54 million problem loan relationship that resulted in a loss well outside historical norms, raising concerns about credit underwriting. - Non-interest expense increased to $121.5 million from $110.3 million in the prior quarter, including $6.2 million in merger-related costs, and the efficiency ratio worsened to 55.12% from 53.7%. - The company sold $543 million of single-family loans and agreed to sell $429 million of multifamily loans, which will reduce earning assets and require defense of net interest income. - Criticized loans remain elevated at 4.7% of net loans, and management noted that economic uncertainty, inflation, energy supply shocks, tariffs, and high interest rates will continue to pressure credit quality. - WaFd Inc (NASDAQ:WAFD) stock has declined 18.9% since the merger announcement, underperforming the NASDAQ Regional Bank Index by about 10%, reflecting market skepticism about the deal. - Warning! GuruFocus has detected 5 Warning Signs with WAFD. - Is WAFD fairly valued? Test your thesis with our free DCF calculator. Q: How are conversations with stakeholders going since the Everbank deal was announced, and what has been the feedback from the front lines? A: CEO Brent Beardall stated that meetings have been characterized by optimism. While there was initial shock, stakeholders are increasingly understanding how the two banks are stronger together. He noted that the combined entity will offset WAFD's commercial real estate concentration with Everbank's NDFI concentration, creating a formidable competitor. Beardall added he is more excited about the deal today than when it was announced. Q: With roughly $1 billion in loan sales occurring last quarter and this upcoming quarter, how will the balance sheet be managed? Will proceeds pay down borrowings or be reinvested? A: CEO Brent Beardall explained that final determinations have not been made, but the company will work to defend net interest income (NII). He noted that higher rates mean investments now yield more than the loans being sold, making reinvestment a viable option to replace the income rather than shrinking earnings. Q: Can you provide an update on credit quality, specifically regarding the large charge-off this quarter and the remaining non-accrual levels? A: Chief Credit Officer Ryan Maurer reported that the large $54 million C&I problem relationship was resolved, resulting in a significant impairment but bringing non-performing assets down to 0.32% of total assets. Regarding the remaining $76 million in non-accruals, Maurer noted there is one larger $40 million real estate loan anticipated to be sold with a full payoff, but he does not expect any further losses of the magnitude seen this quarter. Q: What is the outlook for the net interest margin (NIM) given the recent rate environment and the loan sales? A: CFO Kelly Holtz stated that the margin held steady at 2.81% for the quarter. Looking forward, absent rate changes, the company expects the margin to expand modestly over the next quarter or two. This is driven by earning assets repricing more quickly than liabilities in a rising rate environment, despite the reduction in earning assets from loan sales. Q: What is the expected run rate for non-interest expenses going forward, excluding merger costs? A: CEO Brent Beardall indicated that the current quarter included some year-end cleanup items. Excluding $6.2 million in merger-related expenses, he expects the expense run rate to be flat to slightly up next quarter. He noted the company continues to be opportunistic in bringing on talent, so the $115 million core run rate is a fair number to use for modeling. Q: Can you provide details on the timing and yields of the single-family and multifamily loan sales? A: CFO Kelly Holtz confirmed the single-family sale closed at the end of September, while the multifamily sale agreement was signed on September 30, 2026, with closing expected in December. The single-family loans had an average rate in the 4.30% to 4.40% range, and the multifamily loans held for sale are at approximately 4.8%. Q: How should we think about the impact of the loan sales on purchase accounting accretion going forward? A: CFO Kelly Holtz explained that the single-family sale accelerated the recognition of about $18 million of the discount. Following both sales, the quarterly purchase accounting accretion is expected to decrease by approximately $500,000 per quarter. CEO Brent Beardall added that even after the sales, $119 million will remain in accretable yield on the balance sheet. Q: What are the current CD repricing dynamics and the assumed deposit beta for future rate hikes? A: CFO Kelly Holtz noted that current CD special rates are running at 4.1% for a 13-month CD. CEO Brent Beardall added that deposit costs were somewhat front-loaded as the market anticipated rate hikes, so the pace of increase may fade. Holtz estimated a deposit beta of about 50% assuming one or two more rate hikes. Q: Is there any appetite to buy back shares given the current valuation? A: CEO Brent Beardall stated there is certainly an appetite for buybacks, but given the company's current position with the proxy filing and the pending merger, they are not in a position to buy back shares today. Q: What is the floating rate loan portfolio mix, and how are swaps positioned for potential rate hikes? A: CEO Brent Beardall directed attention to page 2 of the fact sheet, which details contractual terms of maturity or repricing. He highlighted that $7.1 billion of the portfolio reprices within a quarter, which includes the impact of swaps. Q: Have there been any changes to the credit mark assumptions for the WAFD portfolio since the deal was announced? A: CEO Brent Beardall stated there have been no significant changes to the credit mark assumptions since the deal announcement. While interest rates have changed, the company has taken proactive measures to hedge interest rate risk on both the WAFD and Everbank sides, but the credit mark assumptions remain the same as those published in early September. Q: What is the outlook for earning asset levels at year-end relative to the September 30 balance? A: CEO Brent Beardall stated that aside from the known single-family loans held for sale, he expects earning assets to be relatively flat to modestly up, driven by loan growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

- WaFd reported fourth quarter 2026 net interest income of US$182.35 million and net income of US$59.99 million, with full year net interest income of US$712.37 million and net income of US$255.87 million, alongside a sharp rise in quarterly net charge offs to US$39.2 million. - The bank combined strong earnings per share from continuing operations, at US$0.76 for the quarter and US$3.21 for the year, with heavier credit costs and merger related spending, giving investors a mixed picture of profitability strength and credit strain. - This section reviews how WaFd's solid earnings, alongside a spike in net charge offs, could influence the investment narrative. Spot fresh banking ideas facing similar credit and earnings crosswinds by scanning our hand picked 32 resilient stocks with low risk scores, which still clear tough balance sheet and profitability checks. To stay interested in WaFd, you need to believe the Build 2030 shift toward higher yielding commercial and small business banking still holds together, even with credit costs flaring up. The jump in quarterly net charge offs to US$39.2 million puts the focus squarely on whether credit issues stay contained or start pressuring capital and growth plans. The key near term catalyst is operational execution on that commercial mix shift and on keeping the deposit base stable while loan books are reshaped. The biggest risk now is that elevated charge offs persist or broaden into other portfolios. If that happens, more earnings could be absorbed by provisions instead of funding expansion. The fourth quarter 2026 earnings release is the cleanest lens for thinking about those trade offs. WaFd reported quarterly net interest income of US$182.35 million and net income of US$59.99 million, with full year net interest income of US$712.37 million and net income of US$255.87 million. That profit base is what funds Build 2030, digital platforms and merger integration work. Credit costs and merger related spending now sit right beside that earnings power as moving parts for the story. For you as a shareholder, the question is how resilient WaFd's core profitability remains if credit expenses stay higher and integration work around the planned EverBank combination adds more non recurring items. Execution on these fronts will shape how quickly management can pursue balance sheet reshaping and fee income initiatives. Analysts project that WaFd could reach about US$3.3 billion of revenue and US$963.6 million of earnings by 2029, based on current forecasts. This outlook suggests annual revenue growth of 63.1% and an increase in earnings of roughly US$721.8 million from the current US$241.8 million base. Uncover why WaFd's fair value indicates an 18% potential upside to its current price that could close sooner than you expect. The three fair value views from the Simply Wall St Community cluster tightly between about US$32.75 and US$34.50 per share, so you are seeing a narrow band rather than wild outliers. Set that beside the sharp rise in recent net charge offs and the pending EverBank merger, and you get a reminder that WaFd can attract very different opinions. Use these contrasting views as a prompt to test several angles before forming your own stance. Explore 2 other WaFd fair value estimates, including one that suggests it could be worth just $32.75. Don't just follow the ticker. Dig into the data and build a conviction that's truly your own. - A great starting point for your WaFd research is our analysis highlighting 3 key rewards that could impact your investment decision. - See our latest analysis for WaFd. The report includes a comprehensive fundamental analysis summarized in a single visual, the Snowflake, making it easy to evaluate WaFd's overall financial health at a glance. Once you have formed a view on WaFd, it can help to cross check that thinking against other opportunities that pass similar quality filters. The Simply Wall St Screener lets you quickly scan for different types of opportunities, so you can compare this bank with businesses that have very different risk and income profiles. - For investors who want income plus resilience, filter for companies with stronger yield profiles and balance sheet quality through the 8 dividend fortresses. - If capital preservation sits higher on your list, focus on companies that pass tougher risk checks using the 32 resilient stocks with low risk scores. - To widen your net and find potential future leaders with solid fundamentals, sort the market with the 20 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include WAFD. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

WaFd (WAFD) shares are reacting to fresh quarterly results as the bank reported Q4 and full year earnings, along with a sharp jump in net charge offs that gives investors new credit risk data to assess. Recent trading suggests that investors are still processing that information. WaFd's share price has slipped roughly 11% over the past month and around 24% over 90 days. However, the 1 year total shareholder return of 7.21% and 3 year total shareholder return of 31.76% indicate that longer term holders have still come out ahead, even as near term momentum has cooled. Spot 32 resilient stocks with low risk scores that, like WaFd, give you fresh information on credit quality and earnings so you can compare how different balance sheets handle rising charge offs. With WaFd now trading around $29 after a sharp pullback, the real puzzle is whether that credit hit is already reflected in the price or whether patience will be rewarded with a cheaper entry as the story unfolds. WaFd's most followed narrative pegs fair value at $34.50, which compares to the recent $29.15 close and frames the pullback as a discount that hinges on how its long term banking shift plays out. The Build 2030 shift toward true commercial banking and small business relationships, including reorganized business, corporate and commercial real estate banking teams, positions WaFd to grow higher yielding C&I and CRE loans, supporting faster revenue and earnings growth. Ongoing runoff of low yielding single family mortgage loans and redeployment into higher yielding agency mortgage backed securities with no credit risk should structurally lift asset yields and net interest margin over time, improving net income. See why 6 investors see WaFd as 16% undervalued. Result: Fair Value of $34.50 (UNDERVALUED) Still, this narrative can crack if credit costs keep rising from the recent jump in net charge offs, or if merger integration with EverBank introduces unexpected execution risk. Find out about the key risks to this WaFd narrative. If WaFd's mix of credit questions and potential rewards feels finely balanced, you can review the data yourself and analyze the assumptions investors are using. To see what others are optimistic about, review the 3 key rewards. WaFd gives you one angle on credit and earnings, but building a resilient portfolio means lining up several clear, data backed opportunities side by side. - Target potential upside by scanning a curated set of 33 high quality undervalued stocks that combine attractive pricing signals with solid underlying fundamentals. - Strengthen your income stream by reviewing 8 dividend fortresses that aim to pair higher yields with more durable payout profiles. - Prioritise resilience by comparing a list of solid balance sheet and fundamentals (25 results) so you are not caught off guard when conditions get tougher. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include WAFD. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Friday, Oct. 16, 2026 - Chief Marketing Officer and Investor Relations Manager - Brad Goode - President and CEO - Brent Beardall - Chief Financial Officer - Kelli Holz - Chief Credit Officer - Ryan Mauer Operator: Good day, and thank you for standing by. Welcome to the WaFd, Inc. fourth quarter and fiscal year 2026 earnings call. At this time, all participants are in a listen only mode. After the speaker's presentation, we'll open up for questions. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's call is being recorded. I would now like to hand it over to our first speaker, Brad Goode, Chief Marketing Officer and Investor Relations Manager. Please go ahead. Brad Goode: Victor, thank you. Good morning, everybody. Happy Friday. Let's dive into our 2026 fourth quarter and full year earnings report. You can find that earnings press release, along with our detailed fact sheet and investor scorecard on our website at wafdbank.com. During today's call, we'll make forward-looking statements which are subject to risks and uncertainties and are intended to be covered by the safe harbor provisions of Federal securities law. Information on risk factors that could cause actual results to differ are available from the earnings press release that was released yesterday and the Form 10-K for the fiscal year ended September 30, 2025. Forward-looking statements are effective only as of the date they are made, and WaFd assumes no obligation to update information concerning its expectations. We will also reference non-GAAP financial measures, and I encourage you to review the non-GAAP reconciliations provided in our earnings materials. Joining us this morning are President and CEO, Brent Beardall, Chief Financial Officer, Kelli Holz, and Chief Credit Officer, Ryan Mauer. I'd now like to hand the call over to Mr. Beardall. Brent Beardall: Good morning and thank you for joining us. It has certainly been an eventful quarter and year for WaFd. During this call, we will focus primarily on the WaFd standalone results, and at the end of the call, I will provide my comments on the merger with EverBank that we announced on September 7 of this year. We closed out our fiscal year 2026 on a high note with earnings per share up 22% over the prior year. Adjusting for non-operating items, specifically the $6.2 million of merger expenses in the quarter, EPS would have been up by 5% on a linked quarter basis and up by 10% on the same quarter one year ago. In what is likely to be our final fiscal year before we merge with EverBank, we are proud to deliver our second-best year ever in terms of after-tax net income of $241 million. This morning, we will cover four areas. First, Kelli Holz, our CFO, will provide you with a detailed review of the balance sheet and income statement for the quarter and year-end. Next, Ryan Mauer, our Chief Credit Officer, will provide comments on the current status of our loan portfolio and credit quality trends, including a detailed discussion of the large charge-off incurred this quarter. Then I will provide my thoughts on the quarter, the short-term outlook on earnings, and our long-term prospects partnering with EverBank. Finally, we will answer any questions you have. Kelly, please walk us through the quarter and fiscal year-end results we published yesterday. Kelli Holz: Thank you, Brent. As announced, WaFd, Inc. reported net income available to common shareholders of $56.3 million or $0.76 per diluted share for the quarter ended September 30, 2026. This compares to net income to common shareholders of $0.72 per share for the fourth quarter of fiscal 2025 and $0.84 per share for the June 2026 quarter. The decrease in EPS for the quarter was a result of a modest increase in net interest income, increased non-interest income from the loan sale activity, offset by an increased provision for loan losses and merger-related expenses. For the full year ended September 30, 2026, WaFd reported net income available to common shareholders of $241.2 million or $3.21 per diluted share. This compares to net income to common shareholders of $2.63 per diluted share for fiscal year 2025. For the balance sheet, loans receivable decreased $977 million during the quarter as a result of the loan sale-related activity. The company sold $543 million of single-family residential loans during the quarter and has entered into an agreement to sell $429 million of multifamily loans in the first quarter of fiscal 2027. These multifamily loans have been reclassified as held for sale at September 30, 2026. We expect to realize a net gain of approximately $7 million when this sale is finalized. Outside of the loan sale, active loan types, commercial real estate, multifamily, construction, land A&D, C&I, and consumer combined increased by $237 million for the quarter, while our inactive loan types decreased by $267 million. Loan originations and advances for the quarter outpaced repayments and payoffs for our active loan types, with originations of $1.4 billion and repayments and payoffs of $1 billion. For the inactive loan types, advances were $24 million, and repayments and payoffs were $249 million. The weighted average rate at origination was 6.87% for the quarter, and the weighted average rate on repayments and payoffs was 6.35%. Please see the tables in our fact sheet that provide a breakdown between our active and inactive loan types. Total investments and mortgage-backed securities decreased $113 million during the quarter, a result of our shifting strategy, replacing the single family runoff in the loan portfolio from mortgage-backed securities to funding our higher yielding loan origination pipeline. Total deposits increased by $389 million during the quarter, with non-interest bearing deposits increasing $39 million or 1.5%, interest-bearing deposits increasing $91 million or 0.9%, and time deposits increasing $259 million or 3.2%. Core deposits ended the quarter at 81.8%, compared to the June quarter at 80.6% of total deposits, and up from September 2025 at 77.9%. Non-interest bearing deposits ended the quarter at 12.6% of total deposits. The loan to deposit ratio decreased for the quarter ended September 2026 to 89.3%, primarily as a result of the loan sale activity. WaFd's capital profile remains strong. We expect our capital ratios to be in line with the prior quarter ratios, which was 11.4% for CET1, and 14.4% for the total risk-based capital ratio. Liquidity is strong with $4.2 billion of on-balance sheet liquidity, a robust core funding base, and significant off-balance sheet borrowing capacity. For the income statement, net interest income increased $1 million from the prior quarter. The effect of a 4 basis point improvement on the interest earned on assets, offset by a 7-point increase in the cost of interest paid on liabilities. As a result, the net interest margin held steady at 2.81%, no change from the June 30, 2026 quarter. On a linked quarter comparison, the margin was benefited from a 2 basis point improvement with loan rates, a 3 basis point improvement with investment yields, a 1 basis point decrease with borrowing rates, and then impacted by a 6 basis point increase in the cost of deposits and 3 basis points for day count. The 92-day quarter compared to 91 days in June. 50% of our loans and 75% of our securities are on a 30/360 basis. For the spot rate as of the September quarter end, the yield on interest earning assets was 5.21%, while the cost of interest-bearing liabilities was 2.87%, and the margin ended at 2.81%, the same as the margin for the September quarter. Absent any changes in interest rates, we expect our margin to expand modestly over the next quarter or two with the reduction in earning assets due to the loan sales, in addition to our earning assets repricing more quickly than our liabilities in the short term in a rising rate environment. As of September 30, the balance of deferred income on the interest rate mark for the Luther Burbank portfolio was $137 million. During the September quarter, we recognized approximately $17 million of the discount through non-interest income with the sale of the single-family loan portfolio pool. Total non-interest income was $38.1 million for the September 2026 quarter, compared to $24.2 million for the prior quarter. This increase was primarily driven by a $16.4 million gain on the sale of single family loans during the quarter. This gain was partially offset by the quarter-over-quarter reduction in non-interest income attributable to the $3 million gain on the sale of bank real estate we recognized in the third quarter. Total non-interest expense was $121.5 million compared to $110.3 million for the June quarter. This was the result of continued investments in our people and technologies, combined with $6.2 million in merger related costs incurred in the fourth quarter. The company's efficiency ratio for the September quarter was 55.12%, compared to 53.7% in the prior quarter. Income tax expense totaled $17.1 million for the September 2026 quarter, compared to $18.2 million for the June quarter. The effective tax rate for the September quarter was 22.17%, compared to 21.6% for the quarter ended June 30, 2026. The increase in the effective tax rate from the prior quarter was the result of merger related expenses incurred, which are not deductible for tax and create a discrete tax expense. The effective tax rate for the fiscal year 2026 was 21.88%. I will now turn the call over to Ryan to share his comments on WaFd's credit quality. Ryan Mauer: Thank you, Kelli, and good morning, everyone. As reflected in our earnings release, we had a solid quarter of new loan production along multiple product lines. As Kelli indicated, total production in our active portfolio was $1.4 billion for the September quarter. This loan production was centered in commercial and industrial of 44%, commercial real estate of 20%, and construction of 23%. We were able to achieve this level of loan production utilizing a consistent approach to underwriting and managing to a moderate risk profile. Total loan production in our active portfolio for fiscal year 2026 was $5.5 billion compared to $3.5 billion for the fiscal year 2025, a 56.6% increase year-over-year. I would like to acknowledge the significant efforts of our WaFd colleagues in generating that level of growth in a challenging and highly competitive environment. Adversely classified loans during the quarter decreased to 2.56% of net loans, compared to 2.59% as of the June quarter 2026, and 3.16% as of September 2025. Total criticized loans decreased by $99 million to 4.7% of net loans, compared to 4.9% as of the June quarter, and 4.4% as of September 2025. The decrease in criticized loans is the result of an improvement of a large C&I relationship, as well as the resolution of a significant $54 million C&I problem relationship during the quarter. This problem relationship was noted in our previous call with anticipation that the business would be sold prior to fiscal year-end. Ultimately, this relationship resulted in a large impairment well outside of our historical loss results. The loans in question were provided to a large private equity-owned manufacturer, and at the time of the issuance in 2021, the underwriting credit metrics for the borrower in terms of revenue, earnings, and cash flow all represented strong and stable growth. Further, pro forma leverage, a measure of funded debt to EBITDA, was very modest, well over one to one. However, operating results saw a material decline in 2023 and 2024 due to unfavorable operating conditions and the challenging economic environment. This decline, coupled with the inability of ownership to contribute or raise additional capital, caused a negative spiral in working capital in 2025 and 2026, which in turn further impacted operating results. In the end, the company was unable to recover from this spiral and had to be sold to new ownership, resulting in a large impairment to the bank. It should be noted that this loss was significant for the bank and is well outside of our normalized loss history. Inclusive of this loss, the loss rate for fiscal year ending 9/30/2026 was 22 basis points. Adjusting for or excluding this loss at 9/30/2026 would have resulted in a loss rate of four basis points. This compares with loss rates from prior two years ending 9/30/2025 and 9/30/2024 of six basis points and one basis point respectively. Going forward, we anticipate the loss rates to return to the norm historically. Non-performing assets decreased to $86 million, or 0.32% of total assets from $136 million or 0.49% at June 30, 2026. This change is centered in the resolution of the $54 million problem loan relationship noted previously. Delinquent loans decreased to 0.5% of total loans at September 30, 2026, compared to 0.75% at June 30, 2026 and 0.6% at September 30, 2025. The net provision for credit losses in the quarter was $20 million, compared to a provision of $11 million in the prior quarter. The provision for loan losses in the fourth fiscal quarter of 2026 was the result of growth in the active loan portfolio and increased charge-offs during the quarter. $39.2 million of net charge-offs were taken during the quarter, inclusive of the problem loan mentioned previously. The allowance for credit losses, including the reserve for unfunded commitments, provides coverage of 1.04% of gross loans at September 30, 2026 and 2025. For the commercial loan portion of the portfolio, the allowance represents 1.37% of net loans, compared to 1.3% as of September 2025. Overall, we saw quarter-over-quarter improvements in adversely classified loans, criticized loans, non-performing assets, and delinquencies in the quarter. While these metrics remain elevated when compared to historic norms, they remain at moderate levels overall and continue to be impacted by two primary drivers. First, the economic uncertainty driven by continued inflationary pressures, energy supply shocks driven by the war in the Middle East, and tariffs will continue to impact the borrower's top-line revenue results as well as operating costs. Second, the elevated interest rate environment has impacted the borrower's cost of debt. Looking forward, these factors will remain headwinds for credit quality in the industry. With that, I will turn the call over to Brent for his comments. Brent Beardall: As you have just heard, the fundamentals of our business are doing very well. We produced almost 8% growth in our active loan segments, which is impressive to me considering the overall economy is growing at just 2.5%. Having resolved the large C&I credit quality measures are strong. Our loan and deposit pipelines are robust with $3 billion of loans, a 5% increase from the June quarter, and $240 million of deposits in our pipeline, a 6% decline from the June quarter. Our net promoter score remains in the top quartile of all banks at a 55. Given the recent increase in short-term rates, we would expect our margin to expand over the next couple of quarters as assets will reprice more quickly than liabilities. We are likely to receive a significant bump in our risk-based capital ratios when the new Basel rules get approved. With all of that for context, the question I receive most often now is why did WaFd decide to partner with EverBank? I answer that question with a philosophical retort. How much is enough? WaFd has had a remarkable run in the last 44 years as a public company, with total shareholder return of approximately 36,000% when the stock was at $36 a share, which is where we were trading immediately prior to the announcement. But just as we can look back with a great deal of pride, we need to guard ourselves and not let that turn into hubris going forward. There are plenty of examples of companies that failed to adapt or made the wrong changes, both inside of banking, think WaMu or First Republic, and outside of banking, for example, Sears, Blockbuster, or Palm. Those did not adjust to the market. The reality from my perspective is the banking world has fundamentally changed over the last decade. Let me give three examples. First, today we operate in a hyper-competitive market for deposits where the playing field is imbalanced towards the largest banks. Evidence for this is in the Federal Reserve's H.8 data, which I've mentioned earlier, which shows that year-to-date, the largest 25 banks in the U.S. have grown deposits organically by 6.8%. The rest of us, and that's roughly 4,300 banks for those of you that are counting, have been unable to grow net deposits. That is a problem, and I don't see it changing, unfortunately. Additionally, non-interest-bearing deposits, which have historically been the lifeblood of banks from a profitability standpoint, have declined in totality, and I believe will continue to decline as it is easier and easier to move funds to higher-yielding alternatives. Second, technology and scale matters. Primarily because scale allows you to invest more money in technology. This is great for our customers, but certainly favors larger banks that can spread the cost over a larger base. Third, more and more traditional banking is done outside of the banking system. If you look, the vast majority of bank C&I growth over the last decade has been in loans to these so-called non-depository financial institutions, NDFIs. I am convinced that this trend will continue. Based on that perspective, how can WaFd not just compete, but compete and win going forward? I think the partnership with EverBank makes us stronger in addressing each of these three areas noted above. First, we are changing our business model so that we are not solely reliant on non-interest-bearing deposit growth to hit our return goals. Our pro forma bank, as shown in the investor presentation published on September 7th, shows that with a 3% margin, which would be in the lowest quartile of the peer group, we can achieve just shy of a 15% return on tangible common equity. To me, this is a game changer. We can pay a fair rate for deposits and still deliver the needed returns to our shareholders, and we can do this through improved margins on our assets and operating in the top quartile of all banks from an efficiency standpoint. That is a long-term differentiator that I want to be a part of. Second, coming together with EverBank will make us approximately three times the size from an asset perspective that we are today and will enable us to use that scale to invest more in technology for both our clients and our teams. We already have a very strong digital offering, but I am convinced we will make further improvements. Third, EverBank has built a very strong team to serve the NDFI market and do it in a way that we believe is well controlled from both an underwriting perspective and from an ongoing controls and monitoring. What today is our competition will become clients for us going forward. With this partnership, we will be able to address these fundamental risks and turn what was a weakness into a strength. Let me share one further why and how it relates to what WaFd has done historically. If you go way back to 1982, before we went public, WaFd made the bold decision to restructure its balance sheet and sell a large portion of its single-family loans that were underwater from a rate perspective. Crazy to think that 8.75% mortgages at that time were underwater, but that was the case in 1982. They did this to position the bank for profitable growth going forward. At the time, we realized a loss that amounted to $44 million on those loan sales. To put that in perspective for WaFd today, $44 million was the equivalent of four years' earnings back then. Looking at the last four years today for WaFd, that would equate to $1.1 billion. It was a bold move, but it paid off. WaFd in 1982 turned below-market-yielding assets into market-yielding assets, and the results were phenomenal. For the next decade, as WaFd significantly outperformed its peers, including ROAs up to 3%. While I am not forecasting that kind of ROA in our future, through this merger, we will be able to fair value the WaFd balance sheet, including the $6.6 billion of single-family residential loans that are today earning only 4.25%, and mark those loans to market rates. What was a weakness will become a strength. Importantly, we were able to do it with the following metrics. 9.8% pro forma CET1 at close, only 8% dilution to WaFd existing shareholders, and 29% EPS accretion to WaFd shareholders once the cost saves are fully realized. I believe this is a unique opportunity to make WaFd stronger and EverBank stronger. Most importantly, from my perspective, is we will do this without losing what makes WaFd great, our bankers and the ethos we have created over the last 109 years, believing we can make a difference one customer at a time. So where do we stand on the merger? Earlier this month, we filed our regulatory applications, and we expect to file our proxy within the next two weeks. Our previously announced expected closing timeframe of the first calendar quarter 2027 remains on track. All of this is, of course, pending receipt of the requisite approvals from both shareholders and regulators. You have likely heard me say before that our research shows that roughly two-thirds of bank M&A is destructive to capital of the acquiring firm. Since we announced our deal, our stock is down 18.9%, while the Nasdaq Regional Bank Index is down 8.3%, roughly a 10% delta. You cannot argue with the market. We look forward to the opportunity to execute on our plan and demonstrate that we are part of the one-third of bank deals that are accretive to shareholder value. Finally, I want to acknowledge all of the incredible bankers that call WaFd Bank home that make these results for the fiscal year 2026 possible. Our most valuable asset is our team. We have bankers that care and want to serve our clients. Thank you to our bankers. With that, we will move to Q&A. Operator: Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star 1 on your telephone and wait for a name to be announced. To withdraw your question, please press star 1 again. Please stand by while we compile the Q&A roster. Our first question will come from the line of Jeff Rulis from D.A. Davidson. Your line is open. Jeff Rulis: Thanks. Good morning. Brent Beardall: Good morning, Jeff. Jeff Rulis: Appreciate the strategic kind of overview there, Brent. Helpful. Maybe if I could hop into the loan sales. What timing of that in the quarter when those were completed or the multifamily moved to held for sale, and then the average yield on those buckets of the sale? Brent Beardall: Sure. Kelly, do you want to handle that? Kelli Holz: Certainly. We closed on the single-family sale towards the end of September. So right at the end of the quarter. And we signed our purchase and sale agreement on the multifamily sale actually on the last day of the quarter, 9/30/2026. The single family is reflective of a rate in the 4.25%, 4.30%, 4.40% range on average, and the single multifamily bucket that is held for sale is in about 4.8% today. Brent Beardall: And we expect the multifamily sale to close in December. Is that correct? Kelli Holz: Correct. Jeff Rulis: Perfect. Thanks. I guess, those buckets of loans, was there anything particular about could get premium pricing or good execution on those? Was there a selection process of maybe why those? The follow-up question is, any more coming that you see within those portfolios? Brent Beardall: Yeah. I will take that. Obviously, these came from the Luther Burbank portfolio, the portfolios that were marked previously with purchase accounting. So that gave us the opportunity for the gain. Certainly, if we are just looking at the market overall and what our opportunities are. We do not have immediate plans, but we will continue to think about what the future is with EverBank and nothing further to announce now, but we will continue to be opportunistic is the way I would describe it. Jeff Rulis: Okay. Then maybe just a question on the kind of a preliminary thought on earning asset levels at year-end relative to the 9/30 balance. Is the expectation, I guess any color of that, just given the moving pieces, do you expect it to be largely flat, up, down? Any look into the earning asset level at year-end? Brent Beardall: Yeah. So the only thing we know is that sale of the single family that are held for sale. But besides that, I would expect relatively flat to modest growth with loan growth. Jeff Rulis: Okay. Maybe just squeeze in one more for Ryan. The remaining, call it $76 million on nonaccrual. Any more sort of sizable credits or relationships there as that number comes down? Just trying to peg if there's anything kind of lumpy in there, if there's a significant one or two credits or relationships remaining. Ryan Mauer: Yeah. Thank you, Jeff. There are still some larger credits. We have one larger real estate loan that we do actually anticipate will be sold. We have a property that is in the process of being sold, anticipating a full payoff. So we do still have some larger credits that are adversely classified, but nothing that, from my perspective, would represent anything as a significant loss, like what we incurred with the other relationship that we discussed. Jeff Rulis: Sure. Ryan, what's the balance of that, maybe that large real estate loan? Ryan Mauer: The other, that one's a $40 million balance. Jeff Rulis: 40 million. Okay. Ryan Mauer: Yeah. Jeff Rulis: Little over half of the remaining balance. Okay. I will step back. Thank you. Ryan Mauer: Yep. Operator: Thank you. One moment for our next question. Our next question will come from the line of Matthew Clark from Piper Sandler. Your line is open. Matthew Clark: Hey, good morning. Thanks for the questions. Just want to touch on the earning assets a little further there. Loans are going to be down roughly $1 billion with the multifamily loan sale later this year. I guess, do you anticipate any offset to the weaker NII that is going to unfold from that? Is there something you plan to do on the expense side, or just want to make sure we are thinking about it correctly? Brent Beardall: Yeah. We haven't made definitive plans. Nothing to announce. Clearly, we've got levers to pull from an investment side. One of the nice things about higher rates is the investments now yield higher than these loans that we got rid of, so we could replace those loans with investments. As I think we called out, we're expecting our margin to go up, and we'll work to defend the NII. Matthew Clark: Okay. Just on the expense run rate this quarter, $117 million, ex the merger charges. Thoughts on that run rate going forward? Brent Beardall: Yeah, I would say typically this quarter is a little bit hotter with kind of year-end cleanup items. So you take out those merger-related expenses, and I think we'll probably be there to a little bit flat on the next quarter. Matthew Clark: Okay. Just on CD repricing, can you remind us, I think it's in your actually, I think it's in your fact sheet, so I apologize. Maybe the roll-on rate of new CDs, kind of the blended average, where you anticipate those CDs to migrate to. Brent Beardall: Yeah, I will let Kelli talk about where our new pricing is at right now. What I would say is we kind of saw the market front run the latest Fed increase, where you saw rates start to go up. So we have kind of been getting squeezed the last couple of quarters. Now with the actual rates going up, that helps us on the asset side. So my expectation is that it will kind of fade out in terms of the increasing on the deposit costs just because it kind of front-loaded a little bit. Kelli, do you want to share where our current special rates are? Kelli Holz: Yeah. We are currently in our CD special rates. We are running 4.1% for a 13-month CD. So, and we are seeing most of our CD renewals and CD dollars coming through just the specials at this point. Matthew Clark: Okay. What is the beta you are assuming on interest-bearing deposits, assuming we get one or two more rate hikes? Kelli Holz: I think about 50%. Matthew Clark: Okay. Got it. Last one from me. Just on the buyback, is there any appetite to buy back shares here given where you're trading on a pro forma tangible book basis? Brent Beardall: There's certainly appetite, but given where we're at with the proxy and so forth, we're not in a position to be buying back shares today. Matthew Clark: Understood. Thank you. Operator: Thank you. Our next question will come from the line of Andrew Terrell from Stephens. Your line is open. Andrew Terrell: Hey, good morning. Brent Beardall: Andrew, welcome back. We missed you. Andrew Terrell: Thank you. Good to be back. Hey, I wanted to just clarify on the expenses. When you back out the merger charges, it looks like the core number was about $115 million. This quarter was a pretty big step-up from the prior quarter, and I know the release called out some strategic investments. Maybe there was some year-end cleanup. But should we expect expenses moderate from here, or is $115 million kind of the true run rate organically going forward? Brent Beardall: Yeah, no, I would stick with what I just said there. We had some cleanup there. But we're continuing to be opportunistic in terms of bringing on talent, in terms of teams. So don't want to preclude that. So I think that number is a fair number to use in your models. Andrew Terrell: Okay, great. Just to clarify on the margin. The single-family and multifamily yields, I think you said like 430, 440 for the single family and 480 for the multifamily. Does that include the since they are marked assets from Luther, does that include the accretable, or is that just the book yield? Kelli Holz: That is the book yield. Andrew Terrell: Okay. Brent Beardall: Yeah. The accretable comes over the life of the loan. By taking the sale, we accelerated that accretable with the sale. Kelli Holz: With the single-family sale, we recognized about $18 million of the discount that was the fair value mark that was out there for that group of loans. Brent Beardall: But even after both sales are complete, we will have $119 million left in the accretable yield on the balance sheet. Andrew Terrell: Okay. Got it. Is it fair to think that the quarterly rate of purchase accounting accretion comes down, though? Kelli Holz: It will come down a little bit, yes, with both loan sales, taking about in total $35 million or so out of the balance that was there at June 30. About a half a million a quarter. Andrew Terrell: Okay. Got it. Kelli Holz: Correct. Andrew Terrell: That's helpful. I appreciate it. Just last, just to kind of put a bow on the model for the margin, can you just remind us the floating rate loan portfolio mix? What's floating versus what's fixed? I know you guys have put some swaps on over time. Just want to make sure as we're thinking about this curve moves around a lot, but as we're thinking about maybe more rate hikes, just want to make sure we've got floating mixes set appropriately. Brent Beardall: Yeah, I think we do a really nice job on the fact sheet, if you will. If you looked on page 2 of the fact sheet where we do contractual term of maturity or repricing. So we have $7.1 billion that reprice within a quarter. Andrew Terrell: That includes swaps? Brent Beardall: Correct. Andrew Terrell: Okay, great. Thank you. Operator: Thank you. As a reminder, that is star 11 for questions, star 11. Our next question will come from the line of Kelly Motta from KBW. Your line is open. Kelly Motta: Hey, good morning. Thanks for the question. I would like to kick it off on a high level. It has been about a month since your EverBank deal call, and in that time, I am sure you have been out and meeting with people on the front lines. Just wondering how those conversations are going. Any insight that you can share that has come out of meeting with the people who drive your business and EverBank's business? Thank you. Brent Beardall: Yeah, Kelly, great question. Thank you so much. I would say the meetings are characterized with optimism. There was certainly some shock. A lot of people did not expect this coming, and understandably so. But as people really got in and understood how the two banks are stronger together and what the levers that they provide us that we did not have on our own, and then how they offset our concentration in CRE loans and how we offset their concentration in NDFI loans, I think the light bulb kind of goes off and people are like, "Wow, we will be formidable going forward." The optimism level is high. Sincerely, I am more excited about the deal today than when we announced it a month ago. So, thank you for that question. Kelly Motta: Great. That's great color. I hate to beat a dead horse, but I would love to circle back to NII and the margin. Obviously, you have about $1 billion of loan sales last quarter and this upcoming quarter. As we think about the balance sheet size, how much is going to be used to pay down borrowings versus reinvestment into the investment portfolio? I'm just asking because borrowings did come down this quarter with some de-levering there. Thanks. Brent Beardall: Yeah. Good question, Kelly, and we haven't made those final determinations yet, so can't give you any. But as I said, we will work to defend the NII number. If that means that we're going to make some investment purchases, certainly can do that. But we're not looking to shrink our income. Kelly Motta: Got it. That's helpful. The spot loans, Kelly, at it looks like 5.44% for the quarter. I was surprised to see that up a bit given the gain you had taken on those loans, which were marked. I know you usually do that assuming a similar amount of accretion. Did you make that adjustment for just a lower amount of accretion on a go-forward basis? Or we should kind of take that five four and make our own appropriate assumptions around the accretion contribution going forward as a build-off? Thanks. Kelli Holz: Yeah, we did factor in the drag that I mentioned with Andrew of about half a million dollars a quarter on the accretion change given the loan sales. Kelly Motta: Got it. That is helpful. Then I really appreciate all the color on the credit that was cleaned up during the quarter. I know at deal announcement, you projected about 1.45 times the reserve as the credit mark for the WaFd portfolio. I would imagine that would include some cleanup such as this. So it is not too unexpected based on the run rate, but I was hoping you could offer any additional color on any changes since the deal was announced there. Thank you. Brent Beardall: Yeah, I would say no significant changes from the deal announcement. Obviously, the biggest changes have happened in the interest rates, so those would be the biggest changes. But we also took some proactive measures both on the WaFd side and the EverBank side to try to hedge some of that risk from interest rates and feel really good about those activities. But from a credit mark standpoint, we will stay with the same assumptions that we put out in early September. Kelly Motta: Thanks so much. Brent Beardall: Thank you, Kelly. Appreciate it. Operator: Thank you. I am not showing any further questions in the queue. I would like to turn it back over to Brad for any closing remarks. Brad. Brent Beardall: Not hearing Brad, I will go ahead and say thank you very much, everyone, for joining us this morning. Have a wonderful rest of your day, and we look forward to speaking to you next quarter. Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Everyone, have a great day. Before you buy stock in WaFd, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and WaFd wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. WaFd (WAFD) Q4 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Achieved the second-best fiscal year in company history with $241 million in net income, driven by 8% growth in active loan segments despite a broader economic growth rate of only 2.5%. - Executed a strategic pivot by selling $543 million in single-family loans and reclassifying $429 million in multifamily loans as held-for-sale to replace lower-yielding runoff with higher-yielding originations. - Attributed the quarter's EPS decrease to a resolution of a significant $54 million C&I problem loan relationship, which contributed to $39.2 million in total net charge-offs for the quarter involving a private equity-owned manufacturer that suffered from a negative working capital spiral. - Maintained a steady net interest margin of 2.81% as a 4 basis point improvement in asset yields was offset by a 7 basis point increase in liability costs. - Justified the EverBank merger as a necessary shift to reduce reliance on non-interest-bearing deposits, which management believes are structurally declining across the industry. - Emphasized that the pro forma bank will utilize EverBank's expertise in the Non-Depository Financial Institution (NDFI) market to turn competitive threats into client opportunities. - Expects modest margin expansion over the next two quarters as assets are projected to reprice more quickly than liabilities in the current rising rate environment. - Anticipates the multifamily loan sale to close in December 2026, resulting in a projected net gain of approximately $7 million. - Projects a significant increase in risk-based capital ratios following the anticipated approval of new Basel rules. - Maintains a target closing timeframe for the EverBank merger in the first calendar quarter of 2027, pending shareholder and regulatory approvals. - Assumes a 50% beta on interest-bearing deposits for future modeling, assuming one or two additional interest rate hikes occur. - Incurred $6.2 million in merger-related expenses during the quarter, which impacted the effective tax rate as these costs are non-deductible. - Recognized $17 million of deferred income discount through non-interest income following the sale of the single-family loan portfolio. - Identified a $40 million non-performing real estate loan currently in the process of being sold, with management anticipating a full payoff. - Flagged ongoing headwinds for credit quality including inflationary pressures, energy supply shocks from Middle East conflicts, and elevated interest rates impacting borrower debt costs. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management explained that the sold loans were sourced from the Luther Burbank portfolio, allowing for gain realization due to previous purchase accounting marks. - Confirmed that while no immediate further sales are planned, the bank will remain opportunistic regarding portfolio optimization ahead of the merger. - Management acknowledged a potential $1 billion reduction in loans but plans to defend NII by reinvesting proceeds into higher-yielding investment securities. - Noted that current investment yields now exceed the rates on the legacy loans being removed from the balance sheet. - Characterized the current $115 million core expense level as a fair run rate for future models, despite some one-time year-end cleanup items. - Stated a commitment to remain opportunistic in hiring talent and teams, which may prevent significant near-term expense moderation. - Management expressed a theoretical appetite for buybacks given current trading levels relative to tangible book value. - Explicitly stated they are currently restricted from buying back shares due to the pending merger proxy and regulatory status.

Regional banking company WaFd (NASDAQ:WAFD) missed Wall Street's revenue expectations in calendar Q3 2026 (fiscal Q4 2026), but sales rose 6.8% year on year to $200.4 million. Its non-GAAP profit of $0.85 per share was in line with analysts' consensus estimates. Is now the time to buy WaFd Bank? Find out in our full research report. - Net Interest Income: $182.4 million vs analyst estimates of $182.9 million (9.3% year-on-year growth, in line) - Net Interest Margin: 2.8% vs analyst estimates of 2.8% (3.3 basis point beat) - Revenue: $200.4 million vs analyst estimates of $203.7 million (6.8% year-on-year growth, 1.6% miss) - Efficiency Ratio: 55.1% vs analyst estimates of 54.6% (52 basis point miss) - Adjusted EPS: $0.85 vs analyst estimates of $0.84 (in line) - Tangible Book Value per Share: $30.51 vs analyst estimates of $31.27 (3.8% year-on-year growth, 2.4% miss) - Market Capitalization: $2.18 billion - Revenue is defined as net interest income plus non-interest income, less the provision for credit losses. Provision for credit losses: $20.0 million Founded in 1917 and rebranded from Washington Federal in 2023, WaFd (NASDAQ:WAFD) is a bank holding company that provides lending, deposit services, and insurance through its Washington Federal Bank subsidiary across eight western states. In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investment banking, and trading fees. Regrettably, WaFd Bank's revenue grew at a tepid 7% compounded annual growth rate over the last five years. This was below our standard for the banking sector and is a rough starting point for our analysis. Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. WaFd Bank's recent performance shows its demand has slowed as its annualized revenue growth of 4.5% over the last two years was below its five-year trend. We're wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. This quarter, WaFd Bank's revenue grew 8.2% year on year to $200.4 million, missing Wall Street's estimates. Revenue is defined as net interest income plus non-interest income, less $20.0 million provision for credit losses. Net interest income made up 90.9% of the company's total revenue during the last five years, meaning WaFd Bank lives and dies by its lending activities because non-interest income barely moves the needle. Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams. ALSO WORTH WATCHING: Nvidia's Quiet Partner. Nvidia's chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all. Every AI server needs specialized infrastructure the chip companies don't make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE. Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability. Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation. WaFd Bank's TBVPS grew at a decent 5.6% annual clip over the last five years. The last two years show a similar trajectory as TBVPS grew by 4.9% annually from $27.73 to $30.51 per share. Over the next 12 months, Consensus estimates call for WaFd Bank's TBVPS to remain flat at roughly $30.69, a disappointing projection. We struggled to find many positives in these results. Its revenue missed and its tangible book value per share fell short of Wall Street's estimates. Overall, this quarter could have been better. The stock remained flat at $29.63 immediately following the results. Should you buy the stock or not? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free.

- Interested in WaFd, Inc.? Here are five stocks we like better. - WaFd reported strong fiscal 2026 results, with full-year diluted EPS rising 22% to $3.21, although fourth-quarter earnings were pressured by higher credit provisions and $6.2 million in merger-related expenses. - The bank reshaped its balance sheet through loan sales, reducing loans receivable by $977 million while increasing deposits by $389 million. Active loan production remained strong, reaching $5.5 billion for the fiscal year, up 56.6%. - Credit costs spiked after a $54 million commercial and industrial problem loan led to $39.2 million in net charge-offs, but broader credit metrics improved. WaFd's proposed EverBank merger remains targeted for the first quarter of 2027 and is expected to generate 29% EPS accretion after cost savings. WaFd (NASDAQ:WAFD) reported fourth-quarter fiscal 2026 net income available to common shareholders of $56.3 million, or $0.76 per diluted share, as loan-sale gains and modest net interest income growth were offset by higher credit provisions and merger-related expenses. For the full fiscal year ended Sept. 30, the bank earned $241.2 million, or $3.21 per diluted share, compared with $2.63 per diluted share in fiscal 2025. President and CEO Brent Beardall said earnings per share increased 22% from the prior year. Excluding $6.2 million in fourth-quarter merger expenses, he said adjusted EPS would have risen 5% from the prior quarter and 10% from a year earlier. → Don't Get NVIDIA's Reflection AI Interest Wrong: Its Moat Could Deepen Beardall characterized fiscal 2026 as WaFd's second-best year for after-tax net income, while the company prepares for its proposed merger with EverBank. Loans receivable declined by $977 million during the quarter, primarily due to loan-sale activity. WaFd sold $543 million of single-family residential loans in the quarter and entered an agreement to sell $429 million of multifamily loans during the first quarter of fiscal 2027. The multifamily portfolio was reclassified as held for sale as of Sept. 30, and the company expects the transaction to generate a net gain of about $7 million when completed. → Tesla Wants to Make Its Own Chips—What Could Go Wrong? CFO Kelli Holz said the single-family sale closed near the end of September and carried average loan yields in the 4.25% to 4.40% range. The multifamily loans being sold had a yield of about 4.8%, and management expects that sale to close in December. Excluding loan sales, WaFd's active loan categories increased by $237 million in the quarter, while inactive categories declined by $267 million. Active categories include commercial real estate, multifamily, construction, land acquisition and development, commercial and industrial lending, and consumer loans. → Birkenstock's Strong Growth Creates a Buying Opportunity Originations and advances in active loan categories totaled $1.4 billion during the quarter, exceeding $1 billion in repayments and payoffs. For fiscal 2026, active-portfolio production rose 56.6% to $5.5 billion. The company's deposits increased $389 million during the quarter. Core deposits represented 81.8% of total deposits at quarter-end, up from 80.6% in June and 77.9% a year earlier. The loan-to-deposit ratio declined to 89.3%, largely because of the loan sales. Net interest income increased by $1 million from the prior quarter, while net interest margin remained unchanged at 2.81%. Holz said a four-basis-point improvement in asset yields was offset by a seven-basis-point increase in the cost of interest-bearing liabilities. At Sept. 30, the yield on interest-earning assets was 5.21%, while the cost of interest-bearing liabilities was 2.87%. Management expects modest margin expansion over the next quarter or two if interest rates remain unchanged, citing loan-sale-related reductions in earning assets and faster near-term asset repricing relative to liabilities in a rising-rate environment. Non-interest income rose to $38.1 million from $24.2 million in the previous quarter, driven mainly by a $16.4 million gain on the single-family loan sale. The company also recognized about $17 million of deferred income related to the Luther Burbank interest-rate mark through non-interest income during the sale. Non-interest expense rose to $121.5 million from $110.3 million, reflecting investments in personnel and technology as well as the $6.2 million of merger costs. Beardall told analysts that quarterly expenses excluding merger costs were elevated by year-end cleanup items and could be flat to modestly lower next quarter, although the company remains open to hiring opportunities. Credit costs increased during the quarter after WaFd resolved a $54 million commercial and industrial problem relationship involving a private equity-owned manufacturer. Chief Credit Officer Ryan Mauer said the borrower had demonstrated strong underwriting metrics when the loans were issued in 2021, but operating results deteriorated materially in 2023 and 2024. The borrower was ultimately sold to new ownership, resulting in a large impairment for WaFd. The bank recorded $39.2 million of net charge-offs in the fourth quarter, including the C&I relationship, and a $20 million provision for credit losses, compared with an $11 million provision in the prior quarter. Mauer said the fiscal 2026 loss rate was 22 basis points including the loss, but would have been 4 basis points excluding it. He said management expects loss rates to return toward historical norms. - Adversely classified loans declined to 2.56% of net loans from 2.59% in June. - Criticized loans fell by $99 million to 4.7% of net loans. - Nonperforming assets declined to $86 million, or 0.32% of total assets, from $136 million, or 0.49%, in the prior quarter. - Delinquent loans decreased to 0.5% of total loans from 0.75% in June. Mauer said economic uncertainty, inflationary pressures, energy supply shocks related to the war in the Middle East, tariffs, and elevated borrowing costs remain headwinds for borrowers and industry credit quality. Beardall said WaFd filed regulatory applications for its merger with EverBank earlier in October and expects to file its proxy statement within two weeks. The anticipated closing timeframe of the first calendar quarter of 2027 remains on track, subject to shareholder and regulatory approvals. He said the transaction would make the combined company about three times WaFd's current size by assets and provide greater capacity to invest in technology. Beardall also said the combination would diversify WaFd's commercial real estate concentration and add EverBank's capabilities in serving non-depository financial institutions. According to Beardall, the transaction is expected to result in a 9.8% pro forma common equity tier 1 ratio at closing, 8% dilution for existing WaFd shareholders, and 29% EPS accretion once projected cost savings are fully realized. "We look forward to the opportunity to execute on our plan and demonstrate that we are part of the one-third of bank deals that are accretive to shareholder value," Beardall said. WaFd, Inc is a bank holding company headquartered in Seattle, Washington, and the parent company of WaFd Bank. Founded in 1917 as Washington Federal, the company adopted the WaFd name in 2024. WaFd Bank provides banking and financial services to individuals, families, businesses and nonprofit organizations. The bank offers deposit accounts, residential mortgage lending, home equity financing, commercial real estate loans, commercial and industrial lending, construction financing and consumer banking products. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "What WaFd (WAFD) Said on Its Q4 Earnings Call" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

SEATTLE, October 16, 2026--(BUSINESS WIRE)--WaFd, Inc. (Nasdaq: WAFD): Fiscal Year Highlights $256 Million | | $3.21 | | 0.94% | | 10.68% Net Income | | Diluted Earnings perCommon Share | | Return on AverageAssets | | Return on TangibleCommon Equity (1) Fourth Quarter Highlights $60 Million | | $0.76 | | 0.87% | | 9.85% Net Income | | Diluted Earnings perCommon Share | | Return on AverageAssets | | Return on TangibleCommon Equity (1) "We are pleased to report the results for our fiscal year end 2026, including increasing earnings per share by 22%, increasing our transaction deposit balances by 4.6%, and growing our active loan segments by 7.9% along with seeing significant improvements in asset quality measures. Specifically, both non-performing assets and delinquencies decreased by 37% since the June 30th quarter end. Asset quality measures improved primarily through the resolution of a large previously classified loan during the quarter resulting in a $36 million charge-off. Our balance sheet strength and resiliency were demonstrated this quarter, allowing us to handle the classified loan, while still delivering meaningful improvement in earnings to shareholders. In spite of the recent surge in interest rates to their highest level in the last twenty years, with the 10 year bond at levels above 5.20%, WaFd is well positioned to benefit from rising rates as our assets are expected to reprice more quickly than our liabilities resulting in expansion of our margin over the short term." Brent Beardall President and CEO of WaFd Bank | | | | Net Interest Income and NIM | $182.4 million net interest income for the quarter compared to $181.3 million in Q3.Net interest margin at 2.81% for the quarter compared to 2.81% for Q3. | | Credit Quality | Non-performing assets down $57 million at 0.32% of total assets compared to 0.49% as of June 2026.Delinquencies down $56 million to 0.50% of total loans compared to 0.75% as of June 2026.Net Charge-offs of $39 million taken in Q4. | | | | Non-Interest Income and Expense | Non-interest income up $13.9 million compared to Q3 due to SFR loan sale.Non-interest expense up $11.2 million compared to Q3 due to strategic investments and merger related expenses.Efficiency ratio increased to 55.12% as a result. | | Shareholder Returns and Stock Activity | On September 4, 2026, the Company paid a cash dividend of $0.27 per share, 174th consecutive quarterly dividend paid.EverBank Merger announced on September 7, 2026 1 | | Metric is a non-GAAP Financial Measure. See page 9 for additional information on our use of non-GAAP Financial Measures. The following table provides the Company's financial scorecard for the last five quarters: | | As of (In thousands, except share and ratio data) | September 30,2026 | | June 30,2026 | | March 31,2026 | | December 31,2025 | | September 30,2025 BALANCE SHEET | Cash | $ | 749,696 | | | $ | 676,467 | | | $ | 669,799 | | | $ | 734,915 | | | $ | 657,310 | Loans receivable, net | | 19,041,263 | | | | 20,017,876 | | | | 19,966,983 | | | | 19,848,156 | | | | 20,088,618 | Allowance for credit losses ("ACL") | | 214,594 | | | | 233,831 | | | | 224,450 | | | | 221,039 | | | | 221,220 | Loans held for sale | | 428,944 | | | | — | | | | — | | | | — | | | | — | Available-for-sale securities, at fair value | | 4,048,405 | | | | 4,190,263 | | | | 4,352,258 | | | | 4,142,285 | | | | 3,533,201 | Held-to-maturity securities, at amortized cost | | 886,881 | | | | 858,261 | | | | 745,727 | | | | 764,794 | | | | 645,802 | Total investments | | 4,935,286 | | | | 5,048,524 | | | | 5,097,985 | | | | 4,907,079 | | | | 4,179,003 | Total assets | | 27,230,636 | | | | 27,596,970 | | | | 27,568,785 | | | | 27,285,744 | | | | 26,699,699 | Transaction deposits | | 12,875,849 | | | | 12,745,791 | | | | 12,746,921 | | | | 12,865,974 | | | | 12,306,532 | Time deposits | | 8,445,118 | | | | 8,186,284 | | | | 8,377,230 | | | | 8,550,996 | | | | 9,131,104 | Total deposits | | 21,320,967 | | | | 20,932,075 | | | | 21,124,151 | | | | 21,416,970 | | | | 21,437,636 | Borrowings, senior debt and junior subordinated debentures | | 2,545,972 | | | | 3,315,697 | | | | 3,114,548 | | | | 2,488,411 | | | | 1,817,249 | Total shareholders' equity | | 3,000,469 | | | | 3,022,569 | | | | 2,981,283 | | | | 3,029,407 | | | | 3,039,575 | Loans to customer deposits2 | | 89.31 | % | | | 95.63 | % | | | 94.52 | % | | | 92.67 | % | | | 93.71 | % | | | | | | | | | PROFITABILITY | | | | | | | | | Net income | $ | 59,991 | | | $ | 66,130 | | | $ | 65,548 | | | $ | 64,196 | | | $ | 60,597 | Net income to common shareholders | | 56,335 | | | | 62,474 | | | | 61,892 | | | | 60,540 | | | | 56,941 | Earnings per common share | | 0.76 | | | | 0.84 | | | | 0.82 | | | | 0.79 | | | | 0.72 | Return on tangible common equity1 | | 9.85 | % | | | 11.04 | % | | | 10.82 | % | | | 10.57 | % | | | 9.99 | % Return on tangible assets1 | | 0.89 | % | | | 0.97 | % | | | 0.97 | % | | | 0.97 | % | | | 0.93 | % Net interest margin | | 2.81 | % | | | 2.81 | % | | | 2.81 | % | | | 2.70 | % | | | 2.71 | % Efficiency ratio | | 55.12 | % | | | 53.69 | % | | | 55.66 | % | | | 55.25 | % | | | 56.82 | % | | | | | | | | | FINANCIAL HIGHLIGHTS | | | | | | | | | Common shareholders' equity per share | $ | 36.48 | | | $ | 36.81 | | | $ | 36.30 | | | $ | 35.70 | | | $ | 35.04 | Tangible common shareholders' equity per share1 | | 30.51 | | | | 30.82 | | | | 30.27 | | | | 29.91 | | | | 29.38 | Shareholders' equity to total assets | | 11.02 | % | | | 10.95 | % | | | 10.81 | % | | | 11.10 | % | | | 11.38 | % Tangible shareholders' equity to tangible assets1 | | 9.55 | % | | | 9.50 | % | | | 9.35 | % | | | 9.64 | % | | | 9.89 | % Common shares outstanding | | 74,016,318 | | | | 73,954,133 | | | | 73,855,919 | | | | 76,448,351 | | | | 78,186,520 | Preferred shares outstanding | | 300,000 | | | | 300,000 | | | | 300,000 | | | | 300,000 | | | | 300,000 | | | | | | | | | | CREDIT QUALITY2 | | | | | | | | | ACL to gross loans | | 1.04 | % | | | 1.08 | % | | | 1.05 | % | | | 1.05 | % | | | 1.04 | % Non-accrual loans to net loans | | 0.40 | % | | | 0.64 | % | | | 0.62 | % | | | 0.96 | % | | | 0.64 | % Delinquencies to net loans | | 0.50 | % | | | 0.75 | % | | | 0.78 | % | | | 1.07 | % | | | 0.60 | % Non-performing assets to total assets | | 0.32 | % | | | 0.49 | % | | | 0.48 | % | | | 0.75 | % | | | 0.54 | % Total criticized loans to net loans | | 4.66 | % | | | 4.93 | % | | | 4.24 | % | | | 4.60 | % | | | 4.39 | % Total adversely classified loans to net loans | | 2.56 | % | | | 2.59 | % | | | 2.60 | % | | | 2.94 | % | | | 3.16 | % (1) | | Metric is a non-GAAP Financial Measure. See page 9 for additional information on our use of non-GAAP Financial Measures. (2) | | Metrics include only loans held for investment. Loans held for sale are not included. WaFd, Inc. (Nasdaq: WAFD) (the "Company"), parent company of WaFd Bank (the "Bank"), today announced quarterly earnings of $59,991,000, a decrease of 9% compared to the quarter ended June 30, 2026. After the effect of dividends on preferred stock, net income available for common shareholders was $0.76 per diluted share for the quarter ended September 30, 2026 compared to $0.84 the prior quarter. Annual earnings were $255,865,000 for fiscal year ended September 30, 2026, an increase of 13% from earnings of $226,068,000 for the year ended September 30, 2025. After the effect of dividends on preferred stock, net income available for common shareholders was $3.21 per diluted share for the year ended September 30, 2026, compared to $2.63 per diluted share for the year ended September 30, 2025, a $0.58 or 22% increase in fully diluted earnings per common share. Balance Sheet Total assets increased to $27.2 billion as of September 30, 2026, compared to $26.7 billion at September 30, 2025, primarily due to the purchase of investment securities during the period. Investment securities increased by $0.8 billion, or 18.1% in the year ended September 30, 2026, a result of the $1.4 billion in purchases, primarily discount-priced 30-year mortgage backed securities at an expected yield to maturity of 5%. Net loans decreased $1.0 billion to $19.0 billion as a result of loan sale related activity. The Company sold $543 million of single-family residential loans during the September quarter and has entered into an agreement to sell $429 million of multifamily loans in the first quarter of fiscal 2027. These multifamily loans have been reclassified as Held for Sale as of September 30, 2026. We expect to realize a net gain of approximately $7 million when the sale is finalized. Customer deposits totaled $21.3 billion as of September 30, 2026, compared to $21.4 billion at September 30, 2025. The effective weighted average interest rate, including non-interest bearing deposits, was 2.49% as of September 30, 2026, compared to 2.60% at September 30, 2025. Transaction accounts increased by $569 million or 4.6% during the period, while time deposits decreased $686 million or 7.5%. As of September 30, 2026, 60.4% of the Company's deposits were transaction accounts, a slight increase from 57.4% at September 30, 2025. Core deposits, defined as all transaction accounts and time deposits less than $250,000, totaled 81.8% of deposits at September 30, 2026, up from 77.9% on September 30, 2025. Deposits that are uninsured or not collateralized were 25.7% of total deposits as of September 30, 2026, a small increase from 24.7% as of September 30, 2025. Borrowings totaled $2.5 billion as of September 30, 2026, up from $1.8 billion at September 30, 2025. The effective weighted average interest rate of borrowings was 3.0% as of September 30, 2026, compared to 2.5% at September 30, 2025. Loan originations for active loan types totaled $5.5 billion for fiscal year 2026, compared to $4.0 billion of originations in fiscal year 2025. Offsetting loan originations in each year were loan repayments of $3.9 billion and $5.1 billion, respectively. Active loan types include the commercial segment and the consumer portfolio. Inactive loan types include all consumer residential portfolios. These loan types had repayments of $1.1 billion during fiscal 2026. Commercial loans represented 95% of all loan originations during fiscal 2026 and consumer loans accounted for the remaining 5%. The period end interest yield on the loan portfolio was 5.44% as of September 30, 2026, an increase from 5.38% as of September 30, 2025. Tangible common equity per share is a key metric for our management team. For the year ended September 30, 2026, tangible common equity per share grew from $29.38 as of September 30, 2025 to $30.51 at September 30, 2026. This metric is a non-GAAP Financial Measure. See page 9 for additional information on our use of non-GAAP Financial Measures. During the year, the Company repurchased 4,703,844 shares of common stock at a weighted average price of $31.00. Our share repurchase plan currently has an authorization of 7,992,669 shares. Credit Quality Considering the shifting economic and monetary environment, further impacted by on-going global developments, credit quality continues to be monitored closely. Asset quality metrics improved as of September 30, 2026, primarily a result of a $53 million loan relationship being resolved during the quarter resulting in a $36 million charge-off. Non-performing assets decreased 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%, at September 30, 2025. Non-accrual loans decreased by $52 million, or 40%, compared to June 30 2026 and by $53 million, or 40.95%, since September 30, 2025. Delinquent loans decreased to 0.50% of total loans at September 30, 2026, compared to 0.75% at June 30, 2026 and 0.60% at September 30, 2025. The allowance for credit losses (including the reserve for unfunded commitments) totaled $215 million as of September 30, 2026, and was 1.04% of gross loans outstanding, as compared to 1.08% and 1.04% of gross loans outstanding as of June 30, 2026 and September 30, 2025, respectively. The decrease compared to the prior quarter was the result of improved outlook on credit quality combined with a reduction in adversely classified loans. Net charge-offs were $39.2 million for the quarter ended September 30, 2026, compared to $1.6 million the prior quarter. Net charge-offs were $45.1 million for fiscal year 2026, compared to $11.8 million for fiscal 2025. Profitability Net interest income was $182.4 million for the fourth fiscal quarter of 2026, a small increase of $1 million or 0.6% from the prior quarter. This minor change was the result of a flat net interest margin. Net interest margin was 2.81% in the fourth fiscal quarter 2026, the same as the quarter ended June 30, 2026. Total non-interest income was $38.1 million for the fourth fiscal quarter of 2026 compared to $24.2 million the prior quarter. The increase was primarily driven by a $16.4 million gain on the sale of single family loans during the quarter. This gain was partially offset by the quarter-over-quarter reduction in non-interest income attributable to the $3 million gain on the sale of bank real estate recognized in the third quarter. Total non-interest expense was $121.5 million for the fourth fiscal quarter of 2026, an increase of $11.2 million, or 10.1%, from the prior quarter. This was the result of continued investments in our people and technologies combined with $6 million in merger related costs incurred during the fourth quarter. The Company's efficiency ratio increased in the fourth fiscal quarter of 2026 to 55.12%, compared to 53.69% in the prior quarter as a result of the increase in expenses related to the merger. The Company recorded a $20.0 million provision for credit losses for the quarter ended September 30, 2026 compared to a provision of $11.0 million the prior quarter. The provision for loan losses for the fourth fiscal quarter of 2026 was the result of growth in the active loan portfolio and increased charge-offs during the quarter. Income tax expense totaled $17.1 million for the fourth fiscal quarter of 2026, as compared to $18.2 million for the prior quarter. The effective tax rate for the quarter ended September 30, 2026 was 22.17%, compared to 21.60% for the quarter ended June 30, 2026. The Company's effective tax rate may vary from the statutory rate mainly due to state taxes, tax-exempt income and tax-credit investments. WaFd Bank is headquartered in Seattle, Washington, and has 210 branches in nine western states. To find out more about WaFd Bank, please visit our website www.wafdbank.com. The Company will host a conference call for investors and analysts at 7:00am PDT on Friday, October 16, 2026. Participants may register for the call from a link on the Company's investor relations site (https://www.wafdbank.com/about-us/investor-relations) or through a direct link ( https://register-conf.media-server.com/register/BI55bf810431ac4687be8738dd899c7d6d). The Company uses its website to distribute financial and other material information about the Company. WAFD, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF FINANCIAL CONDITION(UNAUDITED) | | | | September 30, 2026 | | September 30, 2025 | (In thousands, except share and ratio data) ASSETS | | | Cash and cash equivalents | $ | 749,696 | | | $ | 657,310 | Available-for-sale securities, at fair value | | 4,048,405 | | | | 3,533,201 | Held-to-maturity securities, at amortized cost | | 886,881 | | | | 645,802 | Loans receivable, net of allowance for loan losses of $199,594 and $199,720 | | 19,041,263 | | | | 20,088,618 | Loans held for sale | | 428,944 | | | | — | Interest receivable | | 101,923 | | | | 98,589 | Premises and equipment, net | | 291,695 | | | | 261,271 | Real estate owned | | 10,202 | | | | 11,084 | FHLB stock | | 122,568 | | | | 88,068 | Bank owned life insurance | | 383,934 | | | | 275,159 | Intangible assets, including goodwill of $418,447 and $414,722 | | 441,958 | | | | 442,093 | Federal and state income tax assets, net | | 127,425 | | | | 112,784 | Other assets | | 595,742 | | | | 485,720 | | $ | 27,230,636 | | | $ | 26,699,699 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | Liabilities | | | Transaction deposits | $ | 12,875,849 | | | $ | 12,306,532 | Time deposits | | 8,445,118 | | | | 9,131,104 | Total customer deposits | | 21,320,967 | | | | 21,437,636 | Borrowings | | 2,493,400 | | | | 1,765,604 | Junior subordinated debentures | | 52,572 | | | | 51,645 | Advance payments by borrowers for taxes and insurance | | 61,099 | | | | 59,845 | Accrued expenses and other liabilities | | 302,129 | | | | 345,394 | | | 24,230,167 | | | | 23,660,124 | Shareholders' equity | | | Preferred stock, $1.00 par value, 5,000,000 shares authorized; 300,000 and 300,000 shares issued; 300,000 and 300,000 shares outstanding | | 300,000 | | | | 300,000 | Common stock, $1.00 par value, 300,000,000 shares authorized; 154,928,571 and 154,408,001 shares issued; 74,016,318 and 78,186,520 shares outstanding | | 154,929 | | | | 154,408 | Additional paid-in capital | | 2,179,512 | | | | 2,163,276 | Accumulated other comprehensive income (loss), net of taxes | | (14,781 | ) | | | 56,950 | Treasury stock, at cost; 80,912,253 and 76,221,481 shares | | (1,886,265 | ) | | | (1,740,761 | ) Retained earnings | | 2,267,074 | | | | 2,105,702 | | | 3,000,469 | | | | 3,039,575 | | $ | 27,230,636 | | | $ | 26,699,699 | Yield and margin as of period end | | | Loans receivable1 | | 5.44 | % | | | 5.38 | % Mortgage-backed securities | | 4.52 | | | | 4.44 | Combined cash, investments and FHLB stock | | 4.23 | | | | 4.96 | Interest-earning assets | | 5.21 | | | | 5.23 | Interest-bearing customer accounts | | 2.85 | | | | 2.95 | Borrowings1 | | 2.97 | | | | 2.50 | Interest-bearing liabilities | | 2.87 | | | | 2.91 | Net interest spread | | 2.34 | | | | 2.32 | Net interest margin | | 2.81 | | | | 2.82 | 1 | | Accretion and amortization assumed to be same as prior quarter. Also includes the impact of derivatives. | | WAFD, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED) | | | | Three months ended September 30, | | Twelve months ended September 30, | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | | (In thousands, except share and ratio data) INTEREST INCOME | | | | | | | Loans receivable | $ | 270,935 | | | $ | 271,787 | | | $ | 1,064,533 | | | $ | 1,119,937 | Mortgage-backed securities | | 47,463 | | | | 32,953 | | | | 177,275 | | | | 103,071 | Investment securities and cash equivalents | | 18,095 | | | | 21,794 | | | | 74,040 | | | | 116,441 | | | 336,493 | | | | 326,534 | | | | 1,315,848 | | | | 1,339,449 | INTEREST EXPENSE | | | | | | | Customer accounts | | 129,921 | | | | 143,874 | | | | 515,213 | | | | 604,707 | Borrowings, and junior subordinated debentures | | 24,219 | | | | 12,754 | | | | 88,263 | | | | 80,507 | | | 154,140 | | | | 156,628 | | | | 603,476 | | | | 685,214 | Net interest income | | 182,353 | | | | 169,906 | | | | 712,372 | | | | 654,235 | Provision (release) for credit losses | | 20,000 | | | | 3,000 | | | | 38,500 | | | | 7,750 | Net interest income after provision (release) | | 162,353 | | | | 166,906 | | | | 673,872 | | | | 646,485 | NON-INTEREST INCOME | | | | | | | Gain on sale of investment securities | | — | | | | — | | | | 112 | | | | 20 | Gain on termination of hedging derivatives | | (19 | ) | | | 32 | | | | 419 | | | | 158 | Gain on sale of loans | | 16,412 | | | | — | | | | 16,412 | | | | 0 | Loan fee income | | 2,731 | | | | 2,081 | | | | 8,482 | | | | 6,888 | Deposit fee income | | 8,253 | | | | 7,959 | | | | 31,927 | | | | 29,650 | Other income | | 10,707 | | | | 8,319 | | | | 44,978 | | | | 34,531 | Total non-interest income | | 38,084 | | | | 18,391 | | | | 102,330 | | | | 71,247 | NON-INTEREST EXPENSE | | | | | | | Compensation and benefits | | 59,985 | | | | 56,028 | | | | 228,694 | | | | 222,146 | Occupancy | | 13,064 | | | | 10,895 | | | | 47,787 | | | | 44,937 | FDIC insurance premiums | | 6,360 | | | | 4,400 | | | | 22,352 | | | | 20,200 | Product delivery | | 6,370 | | | | 6,558 | | | | 27,121 | | | | 25,871 | Information technology | | 17,441 | | | | 16,406 | | | | 63,901 | | | | 60,101 | Other expense | | 18,275 | | | | 12,706 | | | | 57,552 | | | | 54,208 | Total non-interest expense | | 121,495 | | | | 106,993 | | | | 447,407 | | | | 427,463 | Gain (loss) on real estate owned, net | | (1,863 | ) | | | (681 | ) | | | (1,260 | ) | | | (627 | ) Income before income taxes | | 77,079 | | | | 77,623 | | | | 327,535 | | | | 289,642 | Income tax provision | | 17,088 | | | | 17,026 | | | | 71,670 | | | | 63,574 | Net income | | 59,991 | | | | 60,597 | | | | 255,865 | | | | 226,068 | Dividends on preferred stock | | 3,656 | | | | 3,656 | | | | 14,625 | | | | 14,625 | Net income available to common shareholders | $ | 56,335 | | | $ | 56,941 | | | $ | 241,240 | | | $ | 211,443 | PER SHARE DATA | | | | | | | Basic earnings per common share | $ | 0.76 | | | $ | 0.73 | | | $ | 3.21 | | | $ | 2.64 | Diluted earnings per common share | | 0.76 | | | | 0.72 | | | | 3.21 | | | | 2.63 | Cash dividends per common share | | 0.27 | | | | 0.27 | | | | 1.08 | | | | 1.07 | Basic weighted average shares outstanding | | 74,001,170 | | | | 78,509,472 | | | | 75,091,220 | | | | 80,184,395 | Diluted weighted average shares outstanding | | 74,157,143 | | | | 78,573,457 | | | | 75,198,789 | | | | 80,255,189 | PERFORMANCE RATIOS | | | | | | | Return on average assets | | 0.87 | % | | | 0.91 | % | | | 0.94 | % | | | 0.84 | % Return on average common equity | | 8.25 | % | | | 8.36 | % | | | 8.85 | % | | | 7.75 | % | | | | | | | | | | | | | | | WAFD, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED) | | Three Months Ended | September 30, 2026 | | June 30, 2026 | | March 31, 2026 | | December 31, 2025 | | September 30, 2025 | (In thousands, except share and ratio data) INTEREST INCOME | | | | | | | | | Loans receivable | $ | 270,935 | | | $ | 267,243 | | | $ | 262,148 | | | $ | 264,207 | | | $ | 271,787 | Mortgage-backed securities | | 47,463 | | | | 46,569 | | | | 44,341 | | | | 38,902 | | | | 32,953 | Investment securities and cash equivalents | | 18,095 | | | | 18,313 | | | | 18,245 | | | | 19,387 | | | | 21,794 | | | 336,493 | | | | 332,125 | | | | 324,734 | | | | 322,496 | | | | 326,534 | INTEREST EXPENSE | | | | | | | | | Customer accounts | | 129,921 | | | | 123,079 | | | | 125,999 | | | | 136,214 | | | | 143,874 | Borrowings and junior subordinated debentures | | 24,219 | | | | 27,708 | | | | 21,165 | | | | 15,171 | | | | 12,754 | | | 154,140 | | | | 150,787 | | | | 147,164 | | | | 151,385 | | | | 156,628 | Net interest income | | 182,353 | | | | 181,338 | | | | 177,570 | | | | 171,111 | | | | 169,906 | Provision for credit losses | | 20,000 | | | | 11,000 | | | | 4,000 | | | | 3,500 | | | | 3,000 | Net interest income after provision | | 162,353 | | | | 170,338 | | | | 173,570 | | | | 167,611 | | | | 166,906 | NON-INTEREST INCOME | | | | | | | | | Gain on sale of investment securities | | — | | | | 112 | | | | — | | | | — | | | | — | Gain on termination of hedging derivatives | | (19 | ) | | | (12 | ) | | | 426 | | | | 24 | | | | 32 | Gain on sale of loans | | 16,412 | | | | — | | | | — | | | | — | | | | — | Loan fee income | | 2,731 | | | | 2,181 | | | | 2,216 | | | | 1,354 | | | | 2,081 | Deposit fee income | | 8,253 | | | | 8,142 | | | | 7,674 | | | | 7,858 | | | | 7,959 | Other income | | 10,707 | | | | 13,755 | | | | 9,497 | | | | 11,019 | | | | 8,319 | Total non-interest income | | 38,084 | | | | 24,178 | | | | 19,813 | | | | 20,255 | | | | 18,391 | NON-INTEREST EXPENSE | | | | | | | | | Compensation and benefits | | 59,985 | | | | 57,399 | | | | 57,120 | | | | 54,190 | | | | 56,028 | Occupancy | | 13,064 | | | | 11,842 | | | | 11,711 | | | | 11,170 | | | | 10,895 | FDIC insurance premiums | | 6,360 | | | | 5,542 | | | | 5,050 | | | | 5,400 | | | | 4,400 | Product delivery | | 6,370 | | | | 7,067 | | | | 7,110 | | | | 6,574 | | | | 6,558 | Information technology | | 17,441 | | | | 16,157 | | | | 15,919 | | | | 14,384 | | | | 16,406 | Other expense | | 18,275 | | | | 12,327 | | | | 12,947 | | | | 14,003 | | | | 12,706 | Total non-interest expense | | 121,495 | | | | 110,334 | | | | 109,857 | | | | 105,721 | | | | 106,993 | Gain (loss) on real estate owned, net | | (1,863 | ) | | | 167 | | | | 280 | | | | 156 | | | | (681 | ) Income before income taxes | | 77,079 | | | | 84,349 | | | | 83,806 | | | | 82,301 | | | | 77,623 | Income tax provision | | 17,088 | | | | 18,219 | | | | 18,258 | | | | 18,105 | | | | 17,026 | Net income | | 59,991 | | | | 66,130 | | | | 65,548 | | | | 64,196 | | | | 60,597 | Dividends on preferred stock | | 3,656 | | | | 3,656 | | | | 3,656 | | | | 3,656 | | | | 3,656 | Net income available to common shareholders | $ | 56,335 | | | $ | 62,474 | | | $ | 61,892 | | | $ | 60,540 | | | $ | 56,941 | PER SHARE DATA | | | | | | | | | Basic earnings per common share | $ | 0.76 | | | $ | 0.85 | | | $ | 0.82 | | | $ | 0.79 | | | $ | 0.73 | Diluted earnings per common share | | 0.76 | | | | 0.84 | | | | 0.82 | | | | 0.79 | | | | 0.72 | Cash dividends per common share | | 0.27 | | | | 0.27 | | | | 0.27 | | | | 0.27 | | | | 0.27 | Basic weighted average shares outstanding | | 74,001,170 | | | | 73,901,725 | | | | 75,487,399 | | | | 76,969,729 | | | | 78,509,472 | Diluted weighted average shares outstanding | | 74,157,143 | | | | 74,046,838 | | | | 75,574,228 | | | | 77,015,554 | | | | 78,573,457 | PERFORMANCE RATIOS | | | | | | | | | Return on average assets | | 0.87 | % | | | 0.96 | % | | | 0.96 | % | | | 0.96 | % | | | 0.91 | % Return on average common equity | | 8.25 | | | | 9.23 | | | | 9.05 | | | | 8.86 | | | | 8.36 | Net interest margin | | 2.81 | | | | 2.81 | | | | 2.81 | | | | 2.70 | | | | 2.71 | Efficiency ratio | | 55.12 | | | | 53.69 | | | | 55.66 | | | | 55.25 | | | | 56.82 | | | | | | | | | | | | | | | | | | | | WAFD, INC. AND SUBSIDIARIESNON-GAAP MEASURES(UNAUDITED) Non-GAAP Financial Measures The Company has presented certain non-GAAP measures within this document to remove the effect of certain income and expenses to provide investors with information useful in understanding our financial performance. The Company considers these items to be non-operating in nature as they are items that management does not consider indicative of the Company's on-going financial performance. We believe the tables presented reflect our on-going performance in the periods presented and, accordingly, are useful to consider in addition to our GAAP financial results. These measures should not be considered a substitution for GAAP basis disclosures. Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way they are calculated herein. Because of this, our non-GAAP financial measures may not be comparable to similar measures used by others. We caution investors not to place undue reliance on such measures. See the following unaudited tables for reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures. Tangible Measures | September 30, 2026 | | June 30, 2026 | | March 31, 2026 | | December 31, 2025 | | | September 30, 2025 (Unaudited - In thousands, except for share and ratio data) | Shareholders' equity - GAAP | $ | 3,000,469 | | | $ | 3,022,569 | | | $ | 2,981,283 | | | $ | 3,029,407 | | | $ | 3,039,575 | Less intangible assets - GAAP | | 441,958 | | | | 443,670 | | | | 445,511 | | | | 443,085 | | | | 442,093 | Tangible shareholders' equity | $ | 2,558,511 | | | $ | 2,578,899 | | | $ | 2,535,772 | | | $ | 2,586,322 | | | $ | 2,597,482 | Less preferred stock - GAAP | | 300,000 | | | | 300,000 | | | | 300,000 | | | | 300,000 | | | | 300,000 | Tangible common shareholders' equity | $ | 2,258,511 | | | $ | 2,278,899 | | | $ | 2,235,772 | | | $ | 2,286,322 | | | $ | 2,297,482 | | | | | | | | | | | Total assets - GAAP | $ | 27,230,636 | | | $ | 27,596,970 | | | $ | 27,568,785 | | | $ | 27,285,744 | | | $ | 26,699,699 | Less intangible assets - GAAP | | 441,958 | | | | 443,670 | | | | 445,511 | | | | 443,085 | | | | 442,093 | Tangible assets | $ | 26,788,678 | | | $ | 27,153,300 | | | $ | 27,123,274 | | | $ | 26,842,659 | | | $ | 26,257,606 | | | | | | | | | | | Tangible Metrics | | | | | | | | | | Common shares outstanding - GAAP | | 74,016,318 | | | | 73,954,133 | | | | 73,855,919 | | | | 76,448,351 | | | | 78,186,520 | Tangible common equity per share | $ | 30.51 | | | $ | 30.82 | | | $ | 30.27 | | | $ | 29.91 | | | $ | 29.38 | Tangible equity to tangible assets | | 9.55 | % | | | 9.50 | % | | | 9.35 | % | | | 9.64 | % | | | 9.89 | % | Three Months Ended Average Tangible Measures | September 30, 2026 | | June 30, 2026 | | March 31, 2026 | | December 31, 2025 | | September 30, 2025 (Unaudited - In thousands, except for ratio data) Average shareholders' equity - GAAP | $ | 3,030,562 | | | $ | 3,008,370 | | | $ | 3,034,123 | | | $ | 3,033,933 | | | $ | 3,023,098 | Less average preferred stock- GAAP | | 300,000 | | | | 300,000 | | | | 300,000 | | | | 300,000 | | | | 300,000 | Less average intangible assets - GAAP | | 442,951 | | | | 444,665 | | | | 445,155 | | | | 442,226 | | | | 443,382 | Average tangible common equity | $ | 2,287,611 | | | $ | 2,263,705 | | | $ | 2,288,968 | | | $ | 2,291,707 | | | $ | 2,279,716 | | | | | | | | | | Average Assets - GAAP | $ | 27,555,960 | | | $ | 27,612,152 | | | $ | 27,350,614 | | | $ | 26,852,389 | | | $ | 26,540,782 | Less average intangible assets - GAAP | | 442,951 | | | | 444,665 | | | | 445,155 | | | | 442,226 | | | | 443,382 | Average tangible assets | $ | 27,113,009 | | | $ | 27,167,487 | | | $ | 26,905,459 | | | $ | 26,410,163 | | | $ | 26,097,400 | | | | | | | | | | Average Tangible Metrics | | | | | | | | | Net income - GAAP | | 59,991 | | | | 66,130 | | | | 65,548 | | | | 64,196 | | | | 60,597 | Net income available to common shareholders - GAAP | | 56,335 | | | | 62,474 | | | | 61,892 | | | | 60,540 | | | | 56,941 | Return on tangible common equity | | 9.85 | % | | | 11.04 | % | | | 10.82 | % | | | 10.57 | % | | | 9.99 | % Return on tangible assets | | 0.89 | % | | | 0.97 | % | | | 0.97 | % | | | 0.97 | % | | | 0.93 | % | Three Months Ended Net Income Adjusted for Acquisition Expenses and Other Non-Operating Items | September 30, 2026 | | June 30, 2026 | | March 31, 2026 | | December 31, 2025 | | September 30, 2025 (Unaudited - In thousands, except for share and ratio data) Non-interest income adjustments | | | | | | | | | (Gain)Loss on sale of branch property | $ | 22 | | | $ | (3,205 | ) | | $ | 27 | | | $ | (3,214 | ) | | $ | 467 | Distribution received on LBC equity method investment | | (210 | ) | | | (225 | ) | | | (225 | ) | | | (237 | ) | | | (251 | ) (Gain)Loss on WaFd Bank equity method investment | | 422 | | | | (48 | ) | | | 1,072 | | | | 408 | | | | (815 | ) Total non-interest income adjustments | $ | 234 | | | $ | (3,478 | ) | | $ | 874 | | | $ | (3,043 | ) | | $ | (599 | ) | | | | | | | | | Non-interest expense adjustments | | | | | | | | | Merger-related expenses | $ | 6,168 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | Total non-interest expense adjustments | $ | 6,168 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | | | | | | Net Income - GAAP | $ | 59,991 | | | $ | 66,130 | | | $ | 65,548 | | | $ | 64,196 | | | $ | 60,597 | Non-interest income adjustments | | 234 | | | | (3,478 | ) | | | 874 | | | | (3,043 | ) | | | (599 | ) Non-interest expense adjustments | | 6,168 | | | | — | | | | — | | | | — | | | | — | REO adjustments | | 1,863 | | | | (167 | ) | | | (280 | ) | | | (156 | ) | | | 681 | Income tax adjustment | | (1,832 | ) | | | 787 | | | | (129 | ) | | | 704 | | | | (18 | ) Net Income - non-GAAP | $ | 66,424 | | | $ | 63,272 | | | $ | 66,013 | | | $ | 61,701 | | | $ | 60,661 | | | | | | | | | | Dividend on preferred stock | | 3,656 | | | | 3,656 | | | | 3,656 | | | | 3,656 | | | | 3,656 | Net Income available to common shareholders - non-GAAP | $ | 62,768 | | | $ | 59,616 | | | $ | 62,357 | | | $ | 58,045 | | | $ | 57,005 | | | | | | | | | | Basic weighted average number of shares outstanding - GAAP | | 74,001,170 | | | | 73,901,725 | | | | 75,487,399 | | | | 76,969,729 | | | | 78,509,472 | Diluted weighted average number of shares outstanding - GAAP | | 74,157,143 | | | | 74,046,838 | | | | 75,574,228 | | | | 77,015,554 | | | | 78,573,457 | | | | | | | | | | Basic EPS - non-GAAP | $ | 0.85 | | | $ | 0.81 | | | $ | 0.83 | | | $ | 0.75 | | | $ | 0.73 | Diluted EPS - non-GAAP | | 0.85 | | | | 0.81 | | | | 0.83 | | | | 0.75 | | | | 0.73 | | Three Months Ended Adjusted Efficiency Ratio | September 30, 2026 | | June 30, 2026 | | March 31, 2026 | | December 31, 2025 | | September 30, 2025 (Unaudited - In thousands, except for ratio data) Efficiency ratio - GAAP | | 55.1 | % | | | 53.7 | % | | | 55.7 | % | | | 55.3 | % | | | 56.8 | % | | | | | | | | | Net interest income - GAAP | $ | 182,353 | | | $ | 181,338 | | | $ | 177,570 | | | $ | 171,111 | | | $ | 169,906 | Total interest income adjustments | | — | | | | — | | | | — | | | | — | | | | — | Net interest income - non-GAAP | $ | 182,353 | | | $ | 181,338 | | | $ | 177,570 | | | $ | 171,111 | | | $ | 169,906 | | | | | | | | | | Non-interest expense - GAAP | $ | 121,495 | | | $ | 110,334 | | | $ | 109,857 | | | $ | 105,721 | | | $ | 106,993 | Less merger related expenses | | 6,168 | | | | — | | | | — | | | | — | | | | — | Non-interest Expenses - non-GAAP | $ | 115,327 | | | $ | 110,334 | | | $ | 109,857 | | | $ | 105,721 | | | $ | 106,993 | | | | | | | | | | Non-interest income - GAAP | $ | 38,084 | | | $ | 24,178 | | | $ | 19,813 | | | $ | 20,255 | | | $ | 18,391 | Total other income adjustments | | 234 | | | | (3,478 | ) | | | 874 | | | | (3,043 | ) | | | (599 | ) Non-interest income - non-GAAP | $ | 38,318 | | | $ | 20,700 | | | $ | 20,687 | | | $ | 17,212 | | | $ | 17,792 | | | | | | | | | | Net Interest Income - non-GAAP | $ | 182,353 | | | $ | 181,338 | | | $ | 177,570 | | | $ | 171,111 | | | $ | 169,906 | Non-interest income - non-GAAP | | 38,318 | | | | 20,700 | | | | 20,687 | | | | 17,212 | | | | 17,792 | Total Income - non-GAAP | $ | 220,671 | | | $ | 202,038 | | | $ | 198,257 | | | $ | 188,323 | | | $ | 187,698 | | | | | | | | | | Adjusted Efficiency Ratio | | 52.3 | % | | | 54.6 | % | | | 55.4 | % | | | 56.1 | % | | | 57.0 | % | Three Months Ended Adjusted ROA and ROE | September 30, 2026 | | June 30, 2026 | | March 31, 2026 | | December 31, 2025 | | September 30, 2025 (Unaudited - In thousands, except for ratio data) Reported: | | | | | | | | | Net Income - GAAP | $ | 59,991 | | | $ | 66,130 | | | $ | 65,548 | | | $ | 64,196 | | | $ | 60,597 | Net income available to common shareholders - GAAP | $ | 56,335 | | | $ | 62,474 | | | $ | 61,892 | | | $ | 60,540 | | | $ | 56,941 | | | | | | | | | | Average Assets | | 27,555,960 | | | | 27,612,152 | | | | 27,350,614 | | | | 26,852,389 | | | | 26,540,782 | Return on Assets | | 0.87 | % | | | 0.96 | % | | | 0.96 | % | | | 0.96 | % | | | 0.91 | % | | | | | | | | | Average Common Equity | $ | 2,730,562 | | | $ | 2,708,370 | | | $ | 2,734,123 | | | $ | 2,733,933 | | | $ | 2,723,098 | Return on common equity | | 8.25 | % | | | 9.23 | % | | | 9.05 | % | | | 8.86 | % | | | 8.36 | % | | | | | | | | | Adjusted: | | | | | | | | | Net Income - non-GAAP | $ | 66,424 | | | $ | 63,272 | | | $ | 66,013 | | | $ | 61,701 | | | $ | 60,661 | Net income available to common shareholders - non-GAAP | $ | 62,768 | | | $ | 59,616 | | | $ | 62,357 | | | $ | 58,045 | | | $ | 57,005 | | | | | | | | | | Average Assets | | 27,555,960 | | | | 27,612,152 | | | | 27,350,614 | | | | 26,852,389 | | | | 26,540,782 | Adjusted Return on Assets | | 0.96 | % | | | 0.92 | % | | | 0.97 | % | | | 0.92 | % | | | 0.91 | % | | | | | | | | | Average Common Equity | | 2,730,562 | | | | 2,708,370 | | | | 2,734,123 | | | | 2,733,933 | | | | 2,723,098 | Adjusted Return on common equity | | 9.19 | % | | | 8.80 | % | | | 9.12 | % | | | 8.49 | % | | | 8.37 | % Important Cautionary Statements The foregoing information should be read in conjunction with the financial statements, notes and other information contained in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. This press release contains statements about the Company's future that are not statements of historical or current fact. These statements are "forward-looking statements" for purposes of applicable securities laws and are based on current information and/or management's good faith belief as to future events. Words such as "expects," "anticipates," "believes," "estimates," "intends," "forecasts," "may," "potential," "projects," and other similar expressions or future or conditional verbs such as "will," "should," "would," and "could" are intended to help identify such forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes any such statements are based on reasonable assumptions, forward-looking statements should not be read as a guarantee of future performance, and you are cautioned not to place undue reliance on any forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statement. By their nature, forward-looking statements involve inherent risk and uncertainties including the following risks and uncertainties, and those risks and uncertainties more fully discussed under "Risk Factors" in the Company's September 30, 2025 10-K and Quarterly Reports on Form 10-Q, which could cause actual performance to differ materially from that anticipated by any forward-looking statements. Forward-looking statements relating to our financial condition or operations are subject to risks and uncertainties related to (i) fluctuations in interest rate risk and market interest rates, including the effect on our net interest income and net interest margin; (ii) current and future economic conditions, including the effects of declines in the real estate market, tariffs, high unemployment rates, inflationary pressures, a potential recession, the monetary policies of the Federal Reserve, and slowdowns in economic growth either nationally or locally in some or all of the areas in which we conduct business; (iii) financial stress on borrowers (consumers and businesses) as a result of higher interest rates or an uncertain economic environment; (iv) changes in deposit flows or loan demands; (v) our ability to identify and address cyber-security risks, including through the use of artificial intelligence, such as security breaches, "denial of service attacks," "hacking" and identity theft; (vi) the Company's exit from the mortgage lending business; (vii) the effects of natural or man-made disasters, calamities, or conflicts, including terrorist events and pandemics (such as the COVID-19 pandemic) and the resulting governmental and societal responses; (viii) the results of examinations by regulatory authorities, which may impose restrictions or penalties on the Company's activities and changes in laws, regulations, or government policies; (ix) expectations regarding key growth initiatives and strategic priorities; (x) our reliance on third party provided technology and developments related to artificial intelligence; (xi) global economic trends, including developments related to Ukraine and Russia, and the evolving conflict in the Middle East, and related negative financial impacts on our borrowers; (xii) litigation risks resulting in significant expenses, losses and reputational damage; (xiii) the impact of bank failures or adverse developments at other banks and related negative press about regional banks and the banking industry in general; and (xiv) other economic, competitive, governmental, environmental, regulatory, and technological factors affecting our operations, pricing, products and services; (xv) the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between WaFd and EverBank, (xvi) the timing and completion of the transaction between WaFd and EverBank, including the possibility that the proposed transaction will not close when expected or at all because required regulatory, shareholder or other approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all, or are obtained subject to conditions that are not anticipated; (xvii) the possibility that the anticipated benefits of the transaction will not be realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies; (xviii) the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, and (xix) the outcome of any legal proceedings that may be instituted against WaFd or EverBank, including potential litigation that may be instituted against WaFd or its directors or officers related to the proposed transaction or the definitive merger agreement between WaFd and EverBank. View source version on businesswire.com: https://www.businesswire.com/news/home/20261015483998/en/ Contacts WaFd, Inc. 425 Pike Street, Seattle, WA 98101 Brad Goode, SVP, Chief Marketing Officer 206-626-8178 [email protected]