WaFd Announces Quarterly Earnings Per Share Of $0.82

WaFd Announces Quarterly Earnings Per Share Of $0.82 SEATTLE--( BUSINESS WIRE)--WaFd, Inc. (Nasdaq: WAFD):

Q2 Highlights

$66 Million

$0.82

0.96%

10.8%

Net Income

Diluted Earnings per Common Share

Return on Average Assets

Return on Tangible Common Equity 1

"Uncertainty seems to be our new reality, not just in the banking sector, but also in the broader global context. Our strong foundation enabled us to deliver for our customers even during uncertain times. During the quarter, we executed on our strategic plan and grew our active loan segments by 12% annualized. Given our growth in loans, notable improvements in asset quality metrics, and a widening margin, we see a bright future in spite of current uncertainties. Our stock was trading near tangible book value for the majority of the quarter, so we aggressively bought back shares at less than 1.1x tangible book value. We were able to buy back 3.6% of total outstanding shares during the quarter. Our return on tangible common equity was 10.8% making it one of the best investment alternatives available to us. Credit goes to our amazing team of bankers that is working hard to deliver for our clients."

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 10 for additional information on our use of non-GAAP Financial Measures

WaFd, Inc. (Nasdaq: WAFD) (the "Company"), parent company of WaFd Bank (or the "Bank"), today announced quarterly earnings of $65,548,000 for the quarter ended March 31, 2026, an increase of 2% from net earnings of $64,196,000 for the quarter ended December 31, 2025 and an increase of 17% from net earnings of $56,252,000 for the quarter ended March 31, 2025. After the effect of dividends on preferred stock, net income available for common shareholders was $0.82 per diluted share for the quarter ended March 31, 2026, compared to $0.79 per diluted share for the quarter ended December 31, 2025, and $0.65 per diluted share for the quarter ended March 31, 2025, a $0.17 or 26% increase in fully diluted earnings per common share.

The following table provides the Company's financial scorecard for the last five quarters:

As of

(In thousands, except share and ratio data)

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

BALANCE SHEET

Cash

669,799

734,915

657,310

809,252

1,231,461

Loans receivable, net

19,966,983

19,848,156

20,088,618

20,277,164

20,920,001

Allowance for credit losses ("ACL")

224,450

221,039

221,220

219,268

222,709

Available-for-sale securities, at fair value

4,352,258

4,142,285

3,533,201

3,387,497

3,142,763

Held-to-maturity securities, at amortized cost

745,727

764,794

645,802

512,854

526,502

Total investments

5,097,985

4,907,079

4,179,003

3,900,351

3,669,265

Total assets

27,568,785

27,285,744

26,699,699

26,731,915

27,644,637

Transaction deposits

12,746,921

12,865,974

12,306,532

11,969,124

11,853,984

Time deposits

8,377,230

8,550,996

9,131,104

9,417,447

9,573,442

Total deposits

21,124,151

21,416,970

21,437,636

21,386,571

21,427,426

Borrowings and junior subordinated debentures

3,114,548

2,488,411

1,817,249

1,991,087

2,814,938

Total shareholders' equity

2,981,283

3,029,407

3,039,575

3,014,325

3,032,620

Loans to customer deposits

94.52

92.67

93.71

94.81

97.63

PROFITABILITY

Net income

65,548

64,196

60,597

61,952

56,252

Net income to common shareholders

61,892

60,540

56,941

58,296

52,596

Earnings per common share

0.82

0.79

0.72

0.73

0.65

Return on tangible common equity 1

10.82

10.57

9.99

10.20

9.18

Return on tangible assets 1

0.97

0.93

0.94

0.84

Net interest margin

2.81

2.70

2.71

2.69

2.55

Efficiency ratio

55.66

55.25

56.82

56.01

58.31

FINANCIAL HIGHLIGHTS

Common shareholders' equity per share

36.30

35.70

35.04

34.30

33.84

Tangible common shareholders' equity per share 1

30.27

29.91

29.38

28.69

28.31

Shareholders' equity to total assets

10.81

11.10

11.38

11.28

10.97

Tangible shareholders' equity to tangible assets 1

9.35

9.64

9.89

9.78

9.51

Common shares outstanding

73,855,919

76,448,351

78,186,520

79,130,276

80,758,674

Preferred shares outstanding

300,000

CREDIT QUALITY

ACL to gross loans

1.05

1.04

1.03

1.01

Non-accrual loans to net loans

0.62

0.96

0.64

0.41

0.29

Delinquencies to net loans

0.78

1.07

0.60

0.26

0.27

Non-performing assets to total assets

0.48

0.75

0.54

0.36

0.26

Total criticized loans to net loans

4.24

4.60

4.39

4.07

3.32

Total adversely classified loans to net loans

2.60

2.94

3.16

3.54

2.53

1Metric is a non-GAAP Financial Measure. See page 10 for additional information on our use of non-GAAP Financial Measures.

Balance Sheet Total assets increased to $27.6 billion as of March 31, 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 $919 million, or 22.0% in the six months ended March 31, 2026, a result of $1.2 billion of purchases, primarily discount-priced 30-year mortgage backed securities at an expected yield to maturity of 4.87%. Net loans decreased $122 million to $20.0 billion and cash increased $12 million, or 1.9% during same period.

Customer deposits totaled $21.1 billion as of March 31, 2026, compared to $21.4 billion at September 30, 2025. The effective weighted average interest rate, including non-interest-bearing deposits, was 2.41% as of March 31, 2026, compared to 2.69% at September 30, 2025. Transaction accounts increased by $440 million or 3.6% during the six months ended March 31, 2026, while time deposits decreased $754 million or 8.3%. As of March 31, 2026, 60.3% of the Company’s deposits were transaction accounts, an increase from 57.4% at September 30, 2025. Core deposits, defined as all transaction accounts and time deposits less than $250,000, totaled 80.4% of deposits at March 31, 2026, up from 77.9% on September 30, 2025. Deposits that are uninsured or not collateralized were 25.2% of total deposits as of March 31, 2026, a decrease from 26.2% as of September 30, 2025.

Borrowings totaled $3.1 billion as of March 31, 2026, up from $1.8 billion at September 30, 2025. The effective weighted average interest rate of borrowings was 3.01% as of March 31, 2026, compared to 2.50% at September 30, 2025.

Loan originations for active loan types totaled $1.5 billion for the second fiscal quarter of 2026, compared to $1.1 billion of originations in the prior quarter. Offsetting loan originations for these loan types in each of these quarters were loan repayments of $0.9 billion and $1.0 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 $0.3 billion during the quarter. Commercial loans represented 96% of all loan originations during the second fiscal quarter of 2026 and consumer loans accounted for the remaining 4%. The period end interest yield on the loan portfolio was 5.26% as of March 31, 2026, a decrease from 5.38% at September 30, 2025.

Tangible common equity per share is a key metric for our management team. For the six months ended March 31, 2026, tangible book value per share grew to $30.27 at March 31, 2026 from $29.38 as of September 30, 2025. This metric is a non-GAAP Financial Measure. See page 10 for additional information on our use of non-GAAP Financial Measures. During the quarter, the Company repurchased 2,738,096 shares of common stock at a weighted average price of $31.85. In February, the WaFd, Inc. Board of Directors authorized an increase in shares available to be repurchased to a total of 10 million shares. Our share repurchase plan currently has a remaining authorization of 8.0 million shares which, depending on share price, provides a compelling investment alternative.

Credit Quality Considering the shifting economic and monetary environment, further impacted by recent global developments, credit quality continues to be monitored closely. As of March 31, 2026, non-performing assets decreased to $132 million, or 0.48% of total assets, from $203 million, or 0.75%, at December 31, 2025 and from $143 million, or 0.54%, at September 30, 2025. The change is due to non-accrual loans decreasing by $4.8 million, or 4%, since September 30, 2025 combined with decreases in real estate owned ("REO") of $3.0 million and other property owned of $3.3 million during the same time frame. Delinquent loans increased to 0.78% of total loans at March 31, 2026, compared to 0.60% at September 30, 2025 but decreased compared to 1.07% at December 31, 2025.

The allowance for credit losses (including the reserve for unfunded commitments) totaled $224 million as of March 31, 2026, and was 1.05% of gross loans outstanding, as compared to $221 million, or 1.04% of gross loans outstanding, as of September 30, 2025. Net charge-offs were $0.6 million for the second fiscal quarter of 2026, compared to $3.7 million for the prior quarter.

Profitability Net interest income was $178 million for the second fiscal quarter of 2026, an increase of $6.5 million or 4% from the prior quarter. The increase in net interest income was primarily due to an 5 basis point increase in the rate earned on interest earning assets combined with a 9 basis point decrease in the rate paid on interest bearing liabilities. As a result of these changes, net interest margin increased to 2.81% in the second fiscal quarter of 2026 compared to 2.70% for the quarter ended December 31, 2025.

Total non-interest income was $19.8 million for the second fiscal quarter of 2026 compared to $20.3 million the prior quarter. The decrease compared to the prior quarter was primarily due to losses taken on certain equity method investments in the quarter offset by increased commission income from the Bank's insurance subsidiary, WaFd Insurance.

Total non-interest expense was $109.9 million in the second fiscal quarter of 2026, an increase of $4.1 million, or 3.9%, from the prior quarter. The increase is the result of increased compensation and technology expenses, reflecting annual merit increases and continued investment in operational efficiency.

The Company recorded a $4.0 million provision for credit losses in the second fiscal quarter of 2026 compared to a provision of $3.5 million the prior quarter. The provision for loan losses in the quarter ended March 31, 2026 was the net result of increased commercial loan originations. $0.6 million of net charge-offs were taken during the quarter.

Return on common shareholders' equity for the quarter ended March 31, 2026 was 9.05% compared to 8.86% for the quarter ended December 31, 2025. Adjusted for certain non-operating items, return on equity for the quarter was 9.12% compared to adjusted return on equity of 8.49% the prior quarter. Return on assets for the quarter ended March 31, 2026 was 0.96%, unchanged from the previous quarter. Adjusted for certain non-operating items, return on assets for the quarter was 0.97% compared to adjusted return on assets of 0.92% the prior quarter. For a reconciliation of these adjusted ratios, see the Non-GAAP Financial Measures section below.

Income tax expense totaled $18.3 million the second fiscal quarter of 2026, as compared to $18.1 million for the prior quarter. The effective tax rate for the quarter ended March 31, 2026 was 21.8% compared to 22.0% for the quarter ended December 31, 2025. 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 208 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 7:00 am Pacific Time on Friday, April 17, 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/BI3742b47b9d1546a6a24d982d3a85576b). 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)

March 31, 2026

September 30, 2025

(In thousands, except share and ratio data)

ASSETS

Cash and cash equivalents

669,799

657,310

Available-for-sale securities, at fair value

4,352,258

3,533,201

Held-to-maturity securities, at amortized cost

745,727

645,802

Loans receivable, net of allowance for loan losses of $201,950 and $199,720

19,966,983

20,088,618

Interest receivable

98,856

98,589

Premises and equipment, net

294,033

261,271

Real estate owned

8,125

11,084

FHLB stock

146,351

88,068

Bank owned life insurance

279,097

275,159

Intangible assets, including goodwill of $418,447 and $414,722

445,511

442,093

Federal and state income tax assets

106,063

112,784

Other assets

455,982

485,720

27,568,785

26,699,699

LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities

Transaction deposits

12,746,921

12,306,532

Time deposits

8,377,230

9,131,104

Total customer deposits

21,124,151

21,437,636

Borrowings

3,062,441

1,765,604

Junior subordinated debentures

52,107

51,645

Advance payments by borrowers for taxes and insurance

45,356

59,845

Federal and state income tax liabilities

470

—

Accrued expenses and other liabilities

302,977

345,394

24,587,502

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

Common stock, $1.00 par value, 300,000,000 shares authorized; 154,758,612 and 154,408,001 shares issued; 73,855,919 and 78,186,520 shares outstanding

154,759

154,408

Additional paid-in capital

2,169,653

2,163,276

Accumulated other comprehensive income (loss), net of taxes

55,085

56,950

Treasury stock, at cost 80,902,693 and 76,221,481 shares

(1,885,828

)

(1,740,761

)

Retained earnings

2,187,614

2,105,702

2,981,283

3,039,575

27,568,785

26,699,699

Yield and margin as of period end

Loans receivable 1

5.26

5.38

Mortgage-backed securities

4.45

4.44

Combined cash, investments and FHLB stock

4.22

4.96

Interest-earning assets

5.06

5.23

Interest-bearing customer accounts

2.74

2.95

Borrowings 1

3.01

2.50

Interest-bearing liabilities

2.78

2.91

Net interest spread

2.28

2.32

Net interest margin

2.81

2.82

1Accretion 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 March 31,

Six Months Ended March 31,

2026

2025

2026

2025

(In thousands, except share and ratio data)

INTEREST INCOME

Loans receivable

262,148

282,077

526,355

568,674

Mortgage-backed securities

44,341

23,926

83,243

42,263

Investment securities and cash equivalents

18,245

30,081

37,632

70,264

324,734

336,084

647,230

681,201

INTEREST EXPENSE

Customer accounts

125,999

151,948

262,213

314,098

Borrowings and junior subordinated debentures

21,165

23,226

36,336

50,762

147,164

175,174

298,549

364,860

Net interest income

177,570

160,910

348,681

316,341

Provision (release) for credit losses

4,000

2,750

7,500

2,750

Net interest income after provision (release)

173,570

158,160

341,181

313,591

NON-INTEREST INCOME

Gain (loss) on sale of investment securities

—

Gain (loss) on termination of hedging derivatives

426

450

Loan fee income

2,216

1,812

3,570

3,157

Deposit fee income

7,674

7,057

15,532

14,103

Other income

9,497

9,947

20,516

17,233

Total non-interest income

19,813

18,881

40,068

34,583

NON-INTEREST EXPENSE

Compensation and benefits

57,120

52,710

111,310

112,637

Occupancy

11,711

11,499

22,881

22,287

FDIC insurance premiums

5,050

5,800

10,450

10,650

Product delivery

7,110

6,907

13,684

12,692

Information technology

15,919

14,481

30,303

28,673

Other expense

12,947

13,435

26,950

29,204

Total non-interest expense

109,857

104,832

215,578

216,143

Gain (loss) on real estate owned, net

280

(199

)

436

230

Income before income taxes

83,806

72,010

166,107

132,261

Income tax provision

18,258

15,758

36,363

28,742

Net income

65,548

56,252

129,744

103,519

Dividends on preferred stock

3,656

7,312

Net income available to common shareholders

61,892

52,596

122,432

96,207

PER SHARE DATA

Basic earnings per common share

0.82

0.65

1.61

1.19

Diluted earnings per common share

0.82

0.65

1.60

1.18

Cash dividends per common share

0.27

0.54

0.53

Basic weighted average shares outstanding

75,487,399

81,061,206

76,236,709

81,178,997

Diluted weighted average shares outstanding

75,574,228

81,105,536

76,315,090

81,278,102

PERFORMANCE RATIOS

Return on average assets

0.96

0.82

0.96

0.75

Return on average common equity

9.05

7.68

8.96

7.06

WAFD, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three Months Ended

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

(In thousands, except share and ratio data)

INTEREST INCOME

Loans receivable

262,148

264,207

271,787

279,476

282,077

Mortgage-backed securities

44,341

38,902

32,953

27,855

23,926

Investment securities and cash equivalents

18,245

19,387

21,794

24,383

30,081

324,734

322,496

326,534

331,714

336,084

INTEREST EXPENSE

Customer accounts

125,999

136,214

143,874

146,735

151,948

Borrowings and junior subordinated debentures

21,165

15,171

12,754

16,991

23,226

147,164

151,385

156,628

163,726

175,174

Net interest income

177,570

171,111

169,906

167,988

160,910

Provision for credit losses

4,000

3,500

3,000

2,000

2,750

Net interest income after provision

173,570

167,611

166,906

165,988

158,160

NON-INTEREST INCOME

Gain on sale of investment securities

—

Gain on termination of hedging derivatives

426

Loan fee income

2,216

1,354

2,081

1,650

1,812

Deposit fee income

7,674

7,858

7,959

7,588

7,057

Other income

9,497

11,019

8,319

8,979

9,947

Total non-interest income

19,813

20,255

18,391

18,273

18,881

NON-INTEREST EXPENSE

Compensation and benefits

57,120

54,190

56,028

53,481

52,710

Occupancy

11,711

11,170

10,895

11,755

11,499

FDIC insurance premiums

5,050

5,400

4,400

5,150

5,800

Product delivery

7,110

6,574

6,558

6,621

6,907

Information technology

15,919

14,384

16,406

15,022

14,481

Other expense

12,947

14,003

12,706

12,298

13,435

Total non-interest expense

109,857

105,721

106,993

104,327

104,832

Gain (loss) on real estate owned, net

280

156

(681

)

(176

)

(199

)

Income before income taxes

83,806

82,301

77,623

79,758

72,010

Income tax provision

18,258

18,105

17,026

17,806

15,758

Net income

65,548

64,196

60,597

61,952

56,252

Dividends on preferred stock

3,656

Net income available to common shareholders

61,892

60,540

56,941

58,296

52,596

WAFD, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three Months Ended

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

(In thousands, except share and ratio data)

PER SHARE DATA

Basic earnings per common share

0.82

0.79

0.73

0.65

Diluted earnings per common share

0.82

0.79

0.72

0.73

0.65

Cash dividends per common share

0.27

Basic weighted average shares outstanding

75,487,399

76,969,729

78,509,472

79,888,520

81,061,206

Diluted weighted average shares outstanding

75,574,228

77,015,554

78,573,457

79,907,672

81,105,536

PERFORMANCE RATIOS

Return on average assets

0.96

0.91

0.92

0.82

Return on average common equity

9.05

8.86

8.36

8.54

7.68

Net interest margin

2.81

2.70

2.71

2.69

2.55

Efficiency ratio

55.66

55.25

56.82

56.01

58.31

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 that 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

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

(Unaudited - In thousands, except for share and ratio data)

Shareholders' equity - GAAP

2,981,283

3,029,407

3,039,575

3,014,325

3,032,620

Less intangible assets - GAAP

445,511

443,085

442,093

444,291

446,660

Tangible shareholders' equity

2,535,772

2,586,322

2,597,482

2,570,034

2,585,960

Less preferred stock - GAAP

300,000

Tangible common shareholders' equity

2,235,772

2,286,322

2,297,482

2,270,034

2,285,960

Total assets - GAAP

27,568,785

27,285,744

26,699,699

26,731,915

27,644,637

Less intangible assets - GAAP

445,511

443,085

442,093

444,291

446,660

Tangible assets

27,123,274

26,842,659

26,257,606

26,287,624

27,197,977

Tangible Metrics

Common shares outstanding - GAAP

73,855,919

76,448,351

78,186,520

79,130,276

80,758,674

Tangible common equity per share

30.27

29.91

29.38

28.69

28.31

Tangible equity to tangible assets

9.35

9.64

9.89

9.78

9.51

WAFD, INC. AND SUBSIDIARIES

NON-GAAP MEASURES

(UNAUDITED)

Three Months Ended

Average Tangible Measures

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

(Unaudited - In thousands, except for ratio data)

Average shareholders' equity - GAAP

3,034,123

3,033,933

3,023,098

3,030,745

3,039,021

Less average preferred stock

- GAAP

300,000

Less average intangible assets - GAAP

445,155

442,226

443,382

445,733

448,272

Average tangible common equity

2,288,968

2,291,707

2,279,716

2,285,012

2,290,749

Average Assets - GAAP

27,350,614

26,852,389

26,540,782

26,813,500

27,371,320

Less average intangible assets - GAAP

445,155

442,226

443,382

445,733

448,272

Average tangible assets

26,905,459

26,410,163

26,097,400

26,367,767

26,923,048

Average Tangible Metrics

Net income - GAAP

65,548

64,196

60,597

61,952

56,252

Net income available to common shareholders' - GAAP

61,892

60,540

56,941

58,296

52,596

Return on tangible common equity

10.82

10.57

9.99

10.20

9.18

Return on tangible assets

0.97

0.93

0.94

0.84

WAFD, INC. AND SUBSIDIARIES

NON-GAAP MEASURES

(UNAUDITED)

Three Months Ended

Net Income Adjusted for Acquisition Expenses and Other Non-Operating Items

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

(Unaudited - In thousands, except for share and ratio data)

Non-interest income

(Gain)Loss on sale of branch property

(3,214

)

467

—

Distribution received on LBC equity method investment

(225

)

(237

)

(251

)

(255

)

(257

)

(Gain)Loss on WaFd Bank equity method investment

1,072

408

(815

)

304

(155

)

Total non-interest income

874

(3,043

)

(599

)

(412

)

Net Income - GAAP

65,548

64,196

60,597

61,952

56,252

Interest income adjustments

—

Non-interest income adjustments

874

(3,043

)

(599

)

(412

)

Non-interest expense adjustments

—

REO adjustments

(280

)

(156

)

681

176

199

Income tax adjustment

(129

)

704

(18

)

(51

)

Net Income - non-GAAP

66,013

61,701

60,661

62,130

56,086

Dividend on preferred stock

3,656

Net Income available to common shareholders' - non-GAAP

62,357

58,045

57,005

58,474

52,430

Basic weighted average number

75,487,399

76,969,729

78,509,472

79,888,520

81,061,206

Diluted weighted average

75,574,228

77,015,554

78,573,457

79,907,672

81,105,536

Basic EPS - non-GAAP

0.83

0.75

0.73

0.65

Diluted EPS - non-GAAP

0.83

0.75

0.73

0.65

WAFD, INC. AND SUBSIDIARIES

NON-GAAP MEASURES

(UNAUDITED)

Three Months Ended

Adjusted Efficiency Ratio

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

(Unaudited - In thousands, except for ratio data)

Efficiency ratio - GAAP

55.7

55.3

56.8

56.0

58.3

Net interest income - GAAP

177,570

171,111

169,906

167,988

160,910

Total interest income adjustments

—

Net interest income - non-GAAP

177,570

171,111

169,906

167,988

160,910

Non-interest expense - GAAP

109,857

105,721

106,993

104,327

104,832

Less non-operating expenses

—

Non-interest Expenses -

non-GAAP

109,857

105,721

106,993

104,327

104,832

Non-interest income - GAAP

19,813

20,255

18,391

18,273

18,881

Total other income

874

(3,043

)

(599

)

(412

)

Non-interest income -

non-GAAP

20,687

17,212

17,792

18,326

18,469

Net Interest Income -

non-GAAP

177,570

171,111

169,906

167,988

160,910

Non-interest income -

non-GAAP

20,687

17,212

17,792

18,326

18,469

Total Income - non-GAAP

198,257

188,323

187,698

186,314

179,379

Adjusted Efficiency Ratio

55.4

56.1

57.0

56.0

58.4

WAFD, INC. AND SUBSIDIARIES

NON-GAAP MEASURES

(UNAUDITED)

Three Months Ended

Adjusted ROA and ROE

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

(Unaudited - In thousands, except for ratio data)

Reported:

Net Income - GAAP

65,548

64,196

60,597

61,952

56,252

Net income available to common shareholders - GAAP

61,892

60,540

56,941

58,296

52,596

Average Assets

27,350,614

26,852,389

26,540,782

26,813,500

27,371,320

Return on Assets

0.96

0.91

0.92

0.82

Average Common Equity

2,734,123

2,733,933

2,723,098

2,730,745

2,739,021

Return on Common Equity

9.05

8.86

8.36

8.54

7.68

Adjusted:

Net Income - non-GAAP

66,013

61,701

60,661

62,130

56,086

Net income available to common shareholders - non-GAAP

62,357

58,045

57,005

58,474

52,430

Average Assets

27,350,614

26,852,389

26,540,782

26,813,500

27,371,320

Adjusted Return on Assets

0.97

0.92

0.91

0.93

0.82

Average Common Equity

2,734,123

2,733,933

2,723,098

2,730,745

2,739,021

Adjusted Return on Common Equity

9.12

8.49

8.37

8.57

7.66

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.