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, compared to $0.73 per share in Q3 2025 and $0.82 in Q2 2026.

• Return on average assets held steady at 0.96%, and return on tangible common equity reached 11.0% for the quarter.

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

• 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.

• Stock price increased 19% since March 31, with 4.7 million shares repurchased in the first two quarters.

Financial highlights

• Net interest income rose to $181 million, up $3.8 million sequentially; net interest margin steady at 2.81%.

• Non-interest income rose $4.4 million to $24.2 million, including a $3.2 million gain on sale of a branch property.

• Total non-interest expense stable at $110 million; effective tax rate at 21.6%.

• Total assets grew to $27.6 billion, up from $26.7 billion at September 30, 2025, driven by $870 million in investment securities purchases.

• Customer deposits were $20.9 billion, down from $21.4 billion at September 30, 2025; core deposits rose to 80.6% of total deposits.

Outlook and guidance

• 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.

• Expect net interest margin 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.

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