WaFd Reports 22% Gain in Full-Year Earnings per Share Despite Fourth-Quarter Dip

WaFd, Inc. (NASDAQ:WAFD) reported annual net income available to common shareholders of $3.21 per diluted share for fiscal year 2026, representing a 22% increase from $2.63 per share in fiscal year 2025. Total annual net income reached $255.87 million, up 13% year-over-year. However, fourth-quarter net income declined 9% sequentially to $59.99 million, or $0.76 per diluted share, down from $0.84 per share in the third quarter.

The quarterly decline was driven by higher non-interest expenses, which reached $121.5 million due to ongoing spending on personnel and technology, alongside $6 million in merger-related costs. In addition, credit quality measures reflected a $36 million charge-off resulting from the resolution of a $53 million loan relationship. Despite the charge-off, overall asset quality metrics improved, with non-performing assets dropping 37% during the fourth quarter to $86 million. Fourth-quarter non-interest income rose to $38.1 million, supported by a $16.4 million gain on the sale of single-family residential loans.

Looking ahead, the company has entered into an agreement to sell $429 million in multifamily loans in the first quarter of fiscal 2027, expecting a net gain of approximately $7 million upon completion. Executive leadership noted that assets are anticipated to reprice faster than liabilities, positioning the bank to benefit from expanding net interest margins as interest rates remain elevated.