WaFd, Inc. (WAFD) Posts 22% Rise in Full-Year Earnings Despite Soft Q4
WaFd, Inc. (WAFD) reported full-year net income of $255.9 million for fiscal 2026, delivering diluted earnings per share of $3.21. That represents a 22% increase compared to the prior year. However, performance cooled in the final three months, with fourth-quarter earnings coming in at $0.76 per share, down from $0.84 per share in the third quarter as quarterly net charge-offs climbed to $39.2 million.
Despite the quarter-over-quarter earnings dip, the bank maintained profitability stability across key operational metrics. Net interest margin held steady at 2.81% from the previous quarter. WaFd also continued reshaping its balance sheet by selling $543 million in single-family residential loans and classifying $429 million in multi-family loans as held for sale, a move anticipated to generate a $7 million gain. Meanwhile, tangible book value per share rose to $30.51 from $29.38, demonstrating steady capital growth.
Looking ahead, investors will be monitoring the normalization of credit loss trends following the fourth-quarter bump in charge-offs. Key catalysts include the execution and closing of the EverBank transaction and whether ongoing loan portfolio sales successfully enhance return on assets without eroding interest margins.
Key points
- Full-year fiscal 2026 earnings per share grew 22% year over year to $3.21, with net income reaching $255.9 million.
- Fourth-quarter earnings per share declined to $0.76 from $0.84 in the third quarter as net charge-offs rose to $39.2 million.
- Net interest margin remained steady at 2.81% quarter over quarter, while tangible book value increased to $30.51 per share.
- Balance sheet repositioning included selling $543 million in single-family residential loans, expected to yield a $7 million gain.
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What were WaFd's full-year earnings for fiscal 2026?
WaFd reported fiscal 2026 net income of $255.9 million, resulting in earnings per share of $3.21, which is a 22% increase from the prior year.
Why did WaFd's fourth-quarter earnings decline?
Fourth-quarter earnings per share fell to $0.76 from $0.84 in the third quarter, largely driven by an increase in net charge-offs to $39.2 million.
What changes is WaFd making to its balance sheet?
WaFd sold $543 million in single-family residential loans and designated $429 million in multi-family loans as held for sale, anticipating a $7 million gain.