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WaFd Reports 6.8% Revenue Growth in Q3 CY2026 as Loan Sales Boost Non-Interest Income

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WAFD$29.15 −1.02%

WaFd, Inc. (NASDAQ:WAFD) recorded calendar third-quarter 2026 revenue of $200.4 million, up 6.8% from the same period last year but slightly below Wall Street expectations of $203.7 million. Adjusted earnings per share came in at $0.85, matching analyst consensus. Non-interest income received a boost from a $16.4 million gain on the sale of $543 million in single-family residential loans, helping offset merger-related expenses and loan loss provisions.

The regional bank continued to restructure its balance sheet during the quarter, generating $1.4 billion in new core loans across commercial, real estate, and construction sectors. Additionally, the company reclassified $429 million in multifamily loans as held for sale, anticipating an approximate $7 million gain upon closing. Despite resolving a large troubled commercial loan, overall non-performing assets and delinquencies declined sequentially, showing improving credit quality alongside strategic asset repositioning.

Looking ahead, management anticipates modest expansion in net interest margins as earning assets reprice faster than liabilities. Investors will be watching the execution of the pending merger with EverBank, which is expected to triple the bank's asset base and expand its technology and deposit capabilities. Management also expects persistent credit risk from elevated interest rates and broader economic uncertainty over upcoming quarters.

Key points

  • WaFd, Inc. generated $200.4 million in revenue for calendar Q3 2026, marking a 6.8% year-over-year increase but missing analyst estimates.
  • Adjusted earnings per share reached $0.85, meeting Wall Street expectations.
  • A $16.4 million gain from selling $543 million in single-family loans boosted non-interest income during the quarter.
  • The company reclassified $429 million of multifamily loans as held for sale, with an expected gain of around $7 million upon closing.
  • A planned merger with EverBank is projected to triple the bank's asset base to improve scale and operational efficiency.

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Questions and answers

What were WaFd's financial results for Q3 2026?

WaFd reported revenue of $200.4 million, up 6.8% year over year but below expectations of $203.7 million. Adjusted earnings per share reached $0.85, matching analyst consensus estimates.

How did loan sales impact WaFd's quarterly performance?

WaFd completed a $543 million sale of single-family loans, generating a $16.4 million gain that boosted non-interest income and helped offset loan loss provisions and merger costs.

What is the significance of WaFd's planned merger with EverBank?

The EverBank merger is expected to triple WaFd's asset base, enabling expanded technology investments, improved operating efficiency, and broader portfolio diversification.