WaFd, Inc. Reports $65.5 Million Net Income for Q1 2026, 16.5% Increase Year-Over-Year

WaFd, Inc. reported a net income of $65.5 million for the three months ended March 31, 2026, reflecting a 16.5% increase from $56.3 million in the same period last year. For the six months ended March 31, 2026, net income reached $129.7 million, up from $103.5 million in the prior year. The company's total revenue for the quarter was $324.7 million, slightly down from $336.1 million year-over-year, primarily due to a decrease in interest income from loans receivable, which fell to $262.1 million from $282.1 million. The net interest margin improved to 2.81% from 2.55% a year earlier, driven by a reduction in the cost of interest-bearing liabilities.

In terms of significant changes, WaFd's total assets increased by $869.1 million to $27.6 billion as of March 31, 2026, compared to $26.7 billion at the end of the previous fiscal year. This growth was largely attributed to a $919 million increase in available-for-sale and held-to-maturity investment securities. However, loans receivable decreased by $121.6 million to $20 billion, with commercial loans accounting for 95% of total originations during the quarter. The company continues to focus on commercial lending, which is evident in the growth of its commercial loan portfolio.

Operationally, WaFd Bank, which operates 208 branches across several states, has seen a decrease in customer accounts, which fell by $313.5 million to $21.1 billion. The decline was primarily in time deposits, which decreased by 8.3%, while transaction accounts increased by 3.6%. The company also repurchased 2.7 million shares of its common stock during the quarter at an average price of $31.85, with 7.99 million shares remaining authorized for repurchase under its stock buyback program.

The provision for credit losses increased to $4 million for the quarter, compared to $2.75 million in the same period last year, reflecting increased commercial loan originations and changes in credit quality. Non-performing assets decreased to $132 million, or 0.48% of total assets, down from $143 million, or 0.54%, at the end of the previous fiscal year. The allowance for credit losses stood at $202 million, representing 1.05% of gross loans, indicating management's confidence in the quality of its loan portfolio.

Looking ahead, WaFd's management remains optimistic about its growth trajectory, particularly in commercial lending, while also navigating the challenges posed by fluctuating interest rates and economic conditions. The company is well-capitalized, with a Tier 1 leverage ratio of 9.10% as of March 31, 2026, and continues to focus on maintaining strong liquidity and capital adequacy to support its operations and strategic initiatives.