WaFd Q1 Earnings Call Highlights

3 weeks ago 9

MarketBeat

Fri, January 16, 2026 astatine 10:35 AM CST 9 min read

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WaFd reported Q1 fiscal 2026 nett income of $60.5 million, oregon $0.79 per diluted stock (up from $0.54 a twelvemonth agone and $0.72 anterior quarter), driven by modestly higher nett involvement and non‑interest income, little expenses, and stock repurchases that helped assistance EPS; the ratio ratio improved to 55.3%.
Loans declined $240 cardinal arsenic single‑family, customized operation and batch indebtedness runoff was partially replaced by $728 cardinal of mortgage‑backed securities purchases funded mostly with $671 cardinal of borrowings, a strategy absorption says could boost net but volition apt use downward unit connected nett involvement margin.
Credit metrics weakened: non‑performing assets roseate to $203 cardinal (0.75% of assets) and delinquencies were mostly driven by 2 commercialized relationships totaling ~$58 million; the institution recorded a $3.5 cardinal proviso and the allowance covers astir 1.05% of gross loans.
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WaFd (NASDAQ:WAFD) reported fiscal first-quarter 2026 nett income disposable to communal shareholders of $60.5 million, oregon $0.79 per diluted share, for the 4th ended December 31, 2025. The effect compared with $0.54 per stock successful the year-ago 4th and $0.72 per stock successful the anterior quarter.

Management attributed the linked-quarter net betterment to some higher income and little expenses, including a humble summation successful nett involvement income, higher non-interest income, and a alteration successful full non-interest expense. The institution besides highlighted stock repurchases during the 4th arsenic a contributor to per-share results.

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Chief Financial Officer Kelli Holz said loans receivable decreased $240 cardinal during the quarter, chiefly driven by runoff successful what the institution calls its “inactive” indebtedness types—single-family residential (SFR), customized construction, and user batch loans—which declined by $256 cardinal combined. In the “active” portfolio categories (multifamily, commercialized existent estate, C&I, construction, onshore A&D, and user loans), originations and advances totaled $1.1 cardinal portion repayments and payoffs were $1.0 billion.

WaFd accrued investments and mortgage-backed securities (MBS) by $728 million, funded chiefly done a $671 cardinal summation successful borrowings. Holz said purchases were chiefly discount-priced bureau MBS with an effectual output of 4.93%, describing the determination arsenic portion of a strategy to regenerate single-family indebtedness equilibrium runoff. In effect to a aboriginal expert question, Holz added the institution “accelerate[d] some” MBS purchases this 4th successful excess of runoff “to get a caput start,” and said that absent meaningful indebtedness growth, WaFd could usage borrowings and deposit maturation to proceed adding investments “if they marque consciousness for us.”