WaFd (WAFD) investor relations material

Executive summary

• Net income for Q3 2026 was $66.1 million ($0.84 per diluted share), up 15% year-over-year and 2% sequentially, with return on average assets at 0.96% and return on tangible common equity at 11.0%.

• Loan portfolio grew for the second consecutive quarter, with active loan types up 10% linked quarter and 14% including unfunded loans; commercial loans accounted for 96% of originations.

• Efficiency ratio improved to 53.7% from 55.7% in the prior quarter and 56% a year ago, reflecting disciplined expense management and higher non-interest income.

• Total shareholder return reached 23% for the quarter, with stock trading at 11.7x forward earnings and 1.25x tangible book value; stock price increased 19% since March 31.

• Tangible common equity per share grew to $30.82 from $29.38 over nine months.

Financial highlights

• Net interest income rose to $181.3 million, up $13.4 million year-over-year, with net interest margin stable at 2.81%.

• Non-interest income for the quarter was $24.2 million, including a $3.2 million gain on sale of a branch property.

• Total non-interest expense was $110.3 million, mainly due to higher compensation and technology costs.

• Loans receivable, net, decreased slightly to $20.0 billion, while investment and mortgage-backed securities rose by $869.5 million.

• Customer deposits were $20.9 billion, down from $21.4 billion at September 30, 2025; non-interest-bearing deposits rose by $69 million.

Outlook and guidance

• Net interest margin is expected to remain relatively flat next quarter, barring interest rate changes.

• Projected effective tax rate for fiscal 2026 is approximately 21.8%.

• Active loan portfolio expected to grow 8%-12% going forward; overall net loan growth likely low single digits due to inactive portfolio attrition.

• Capital ratios are expected to remain in line with March 2026, with total risk-based capital at 14.4% and CET1 at 11.4%, both above regulatory minimums.

• Management is evaluating the impact of Basel III Endgame revisions, which could reduce risk-weighted assets by 12.5%.