WaFd (WAFD) Q4 2026 earnings summary

Executive summary

• FY2026 diluted EPS was $3.21, up 22% YoY; net income was $255.9M, while net income available to common shareholders was $241.2M.

• Q4 net income was $60.0M and diluted EPS was $0.76; adjusted for $6.2M of merger costs, diluted EPS was $0.85.

• Transaction deposits grew 4.6% and active loan segments grew 7.9%; nonperforming assets and delinquencies declined 37% from June 30 after a large classified loan resolution and $36M charge-off.

• EverBank merger remained targeted for Q1 calendar 2027, subject to approvals; management cited scale, technology investment and earnings potential as expected benefits.

Financial highlights

• FY2026 net interest income was $712.4M vs. $654.2M in FY2025; net income was $255.9M vs. $226.1M.

• Q4 net interest income was $182.4M, up 0.6% QoQ; net income was $60.0M vs. $66.1M in Q3, and diluted EPS was $0.76 vs. $0.84.

• Q4 non-interest income was $38.1M, including a $16.4M gain on single-family loan sales; non-interest expense rose 10.1% QoQ to $121.5M, including $6.2M of merger costs.

• FY2026 investment securities increased $0.8B, or 18.1%; net loans declined $1.0B to $19.0B, primarily from loan-sale activity.

Outlook and guidance

• Management expects modest near-term NIM expansion as assets reprice faster than liabilities; higher short-term rates and a recent rise in market rates may support expansion.

• After the single-family sale, earning assets are expected to be flat to modestly higher through loan growth; investment purchases remain an option to support net interest income.

• Underlying quarterly expenses near $115M were described as a reasonable modeling run rate; next-quarter expenses could be flat after year-end cleanup, excluding merger costs.

• A $429M multifamily loan sale was expected to close in December 2026/Q1 FY2027, with an estimated $7M net gain; FY2026 rate sensitivity showed NII up 4.0% after +100 bps and 1.9% after -100 bps.