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

- URL: https://stocks.freetheai.org/news/wafd-reports-22-gain-in-full-year-earnings-per-share-despite-fourth-quarter-dip-f42aa3
- Published: 2026-10-16T00:00:00Z
- Category: earnings; sentiment: mixed; impact: medium
- Symbols: [NASDAQ:WAFD](https://stocks.freetheai.org/symbols/NASDAQ-WAFD)
- Written by our AI from expert market sources across the web for FreeTheAI Stocks, built by Vibhek Soni
- How write-ups are made: https://stocks.freetheai.org/how-we-write
- Not financial advice: https://stocks.freetheai.org/disclaimer

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.

## Key points

- WaFd, Inc. (NASDAQ:WAFD) recorded full-year fiscal 2026 diluted earnings per share of $3.21, a 22% increase over fiscal 2025.
- Fourth-quarter net income fell 9% quarter-over-quarter to $59.99 million, or $0.76 per share, impacted by $6 million in merger costs.
- Non-performing assets dropped 37% during the fourth quarter to $86 million following the resolution of a major classified loan.
- The company agreed to sell $429 million in multifamily loans in early fiscal 2027, projecting a $7 million net gain upon finalization.

## Questions and answers

### What were WaFd fiscal 2026 full-year earnings per share?

WaFd reported full-year diluted earnings per share of $3.21 for fiscal 2026, up 22% from $2.63 in fiscal 2025.

### Why did WaFd fourth-quarter earnings decline sequentially?

Fourth-quarter earnings dropped 9% due to higher operating costs, $6 million in merger expenses, and a $36 million loan charge-off.

### What is WaFd outlook on loan sales and margins?

WaFd expects a $7 million net gain from selling $429 million in multifamily loans in fiscal 2027 and foresees margin expansion from rising interest rates.