WaFd (WAFD) Delivers +22% Full-Year EPS Growth Ahead of EverBank Merger
Key Takeaways
- WaFd reported fiscal 2026 results on October 15, 2026, with full-year diluted earnings per share (EPS) up 22% from the prior year.
- Fourth-quarter net interest income reached $182.4 million, while net interest margin (NIM) held steady at 2.81%.
- Non-interest income climbed to $38.1 million, lifted by a $16.4 million gain on the sale of single-family loans.
- Net charge-offs jumped to $39.2 million in the quarter, up sharply from $1.6 million in the prior quarter.
- Non-interest expense rose 10.1% to $121.5 million, including roughly $6 million in costs tied to the pending EverBank combination.
- The efficiency ratio increased to 55.12%, compared with 53.69% in the previous quarter.
Putting the Earnings in Context
WaFd, Inc. (WAFD), the parent company of WaFd Bank, operates across the western United States and reports on a fiscal year ending September 30. Its fourth-quarter results therefore close out the full 2026 fiscal year, giving investors a complete picture of profitability, credit quality, and efficiency. The report carries added weight because of the September 2026 announcement that EverBank would combine with WaFd in a $3.9 billion reverse merger. Management flagged merger-related costs within the quarter, making the efficiency ratio and expense trend a focal point. Meanwhile, a notable rise in charge-offs puts credit quality back in the spotlight heading into the pending transaction.
The Numbers Behind the Report
For the full fiscal year 2026, WaFd reported diluted EPS of $2.63, a 22% increase from fiscal 2025. For the fourth quarter ended September 30, 2026, net interest income was $182.4 million, a modest 0.6% increase from the prior quarter, driven by a net interest margin that held flat at 2.81%. NIM remained stable despite an intensely competitive deposit environment. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Total non-interest income rose to $38.1 million from $24.2 million in the prior quarter, primarily reflecting a $16.4 million gain on the sale of single-family loans. Non-interest expense increased 10.1% to $121.5 million, with continued investment in talent and technology plus about $6 million in merger-related costs. As a result, the efficiency ratio climbed to 55.12% from 53.69%.
On credit, the company recorded a $20.0 million provision for credit losses, up from $11.0 million in the prior quarter, reflecting portfolio growth and higher charge-offs. Net charge-offs were $39.2 million for the quarter, compared with $1.6 million in the prior quarter, while fiscal-year net charge-offs totaled $45.1 million versus $11.8 million in fiscal 2025. Even so, delinquent loans improved to 0.50% of total loans from 0.75%, and the allowance for credit losses stood at $215 million, or 1.04% of gross loans.
Market Reaction and Investor Sentiment
WaFd shares entered the report under pressure, trading below their 50-day and 200-day moving averages after a notable decline during September. Sentiment has also been shaped by the pending EverBank reverse merger, which prompted shareholder-investigation notices from law firms questioning whether investors are receiving fair value in the deal. The combination of a sharp rise in net charge-offs, higher merger-related expenses, and a rising efficiency ratio gives investors several items to weigh against an otherwise solid full-year EPS gain. The earnings call’s forward commentary on credit and integration costs will likely remain a key driver of near-term price action.
Forward Outlook and Key Factors to Monitor
Looking ahead, the central variable for WaFd is the completion and integration of the EverBank combination. Merger-related costs already surfaced in the fourth quarter, and investors will want clarity on expected cost synergies, the timing of any restructuring, and how the combined balance sheet reshapes the company’s geographic and product footprint.
Credit quality is another area to watch closely. Although delinquencies improved, the jump in net charge-offs to $39.2 million signals that certain credits are being resolved at a loss. Monitoring whether charge-offs normalize or remain elevated will be essential for gauging the trajectory of future provisions for credit losses.
Finally, profitability metrics remain in focus. The net interest margin held at 2.81% despite intense deposit competition, but sustaining that level will depend on the path of interest rates and the company’s ability to reprice loans faster than deposits. Investors should also track the efficiency ratio once one-time merger costs fade, as a lower ratio would indicate improving operating leverage across the enlarged franchise.
Using AI Tools in My Research Process
From what I see, tools like Tickeron’s AI Screener help cut through the noise when comparing bank stocks on fundamentals and technical signals. I pull up the screener after earnings releases to quickly benchmark names like WaFd against peers on metrics such as NIM stability and efficiency trends. It keeps the analysis focused without replacing the deeper dive into the 10-Q.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
WAFD's Indicator enters downward trend
The Aroon Indicator for WAFD entered a downward trend on October 14, 2026. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 233 similar instances where the Aroon Indicator formed such a pattern. In 153 of the 233 cases the stock moved lower. This puts the odds of a downward move at 66%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 50-day moving average for WAFD moved below the 200-day moving average on October 14, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WAFD declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 63%.
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 7 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The Moving Average Convergence Divergence (MACD) for WAFD just turned positive on October 09, 2026. Looking at past instances where WAFD's MACD turned positive, the stock continued to rise in 27 of 42 cases over the following month. The odds of a continued upward trend are 64%.
Following a +2.91% 3-day Advance, the price is estimated to grow further. Considering data from situations where WAFD advanced for three days, in 164 of 280 cases, the price rose further within the following month. The odds of a continued upward trend are 59%.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 14 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 28 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.839) is normal, around the industry mean (1.323). P/E Ratio (9.741) is within average values for comparable stocks, (23.509). Projected Growth (PEG Ratio) (1.550) is also within normal values, averaging (1.190). Dividend Yield (0.035) settles around the average of (0.030) among similar stocks. P/S Ratio (3.197) is also within normal values, averaging (3.738).
The Tickeron PE Growth Rating for this company is 58 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 63 (best 1 - 100 worst), indicating fairly steady price growth. WAFD’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is 92 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. WAFD’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 57, placing this stock worse than average.
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a savings bank
Industry RegionalBanks
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