WaFd (WAFD) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 net income rose 13% year-over-year to $226 million ($2.63 per share), with Q4 net income at $61 million ($0.72 per share); both up year-over-year.

• Strategic shift from mortgage lending to business banking and digital transformation continues, driving a 103% increase in new loan originations over Q3.

• Exited single-family mortgage lending, reallocating runoff to agency MBS for higher yield and lower risk.

• Tangible book value per share increased to $29.38 from $27.73 year-over-year.

• Launched WaFd Wealth Management and closed out HMDA consent orders.

Financial highlights

• Net interest income for Q4 was $169.9 million, up 1.1% sequentially; net interest margin improved to 2.71% from 2.69% in Q3 and 2.62% a year ago.

• Non-interest income for Q4 was $18.4 million; insurance subsidiary revenue up 12.5% year-over-year.

• Non-interest expense increased 2.6% sequentially, mainly due to investments in talent and technology.

• Efficiency ratio for Q4 was 56.82%, up from 56.01% in the prior quarter.

• Annual loan originations reached $4.0 billion, up from $3.6 billion in 2024.

Outlook and guidance

• Active loan portfolio expected to grow 8%-12% in fiscal 2026.

• Inactive loan portfolio (mainly single-family) expected to run off $200-$300 million per quarter.

• Margin expected to expand with future rate cuts, with a lag of about one quarter for full effect.

• Focus on growing non-interest-bearing deposits to 20% of total by 2030.

• Loan pipeline has grown for three consecutive quarters, indicating positive momentum for 2026.