WaFd Announces Fiscal 2026 Earnings and 22% Increase in EPS
SEATTLE--( BUSINESS WIRE)--WaFd, Inc. (Nasdaq: WAFD):
WaFd Announces Fiscal 2026 Earnings and 22% Increase in EPS
Fiscal Year Highlights
$256 Million
$3.21
0.94%
10.68%
Net Income
Diluted Earnings per
Common Share
Return on Average
Assets
Return on Tangible
Common Equity (1)
Fourth Quarter Highlights
$60 Million
$0.76
0.87%
9.85%
Net Income
Diluted Earnings per
Common Share
Return on Average
Assets
Return on Tangible
Common 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
Credit Quality
Non-Interest Income and Expense
Shareholder Returns and Stock Activity
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 deposits 2
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 equity 1
9.85
%
11.04
%
10.82
%
10.57
%
9.99
%
Return on tangible assets 1
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 share 1
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 assets 1
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 QUALITY 2
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 SUBSIDIARIES
CONSOLIDATED 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 receivable 1
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
Borrowings 1
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 SUBSIDIARIES
CONSOLIDATED 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 SUBSIDIARIES
CONSOLIDATED 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 SUBSIDIARIES
NON-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.