WaFd (WAFD) Earnings Date & Reports

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.

Earnings Context and Why It Matters

WaFd, Inc. (NASDAQ: 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.

Reported Results

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 (the spread between what a bank earns on loans and investments and what it pays on deposits and borrowings) remained stable despite an intensely competitive deposit environment.

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 — the percentage of revenue consumed by operating expenses — 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.

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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.

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