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Get filing alertsWaFd reports Q3 FY2026 EPS of $0.84, up 15% YoY, with 11.0% ROTCE and improved efficiency
Filed July 17, 2026 · Period ending July 16, 2026 · ~2 min read
Key Changes
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Q3 FY2026 net income of $66.1M translates to $0.84 per diluted share, up 15% from $0.73 in Q3 FY2025 and 2% from $0.82 in Q2 FY2026. Return on tangible common equity reached 11.0% with efficiency ratio improving to 53.7%.
Exhibit 99.1 view on EDGAR → -
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Net interest income rose to $181M from $178M in Q2 while net interest margin held steady at 2.81%. Asset yields increased and deposit costs declined, with interest-bearing customer account costs falling from 2.89% to 2.71%.
Exhibit 99.1 view on EDGAR → -
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Active loan portfolios (commercial and consumer) grew at 10.4% annualized rate. Commercial & Industrial loans increased from $2.53B to $3.11B and Construction loans rose from $1.74B to $2.14B during the nine months ended June 30, 2026.
Exhibit 99.2 view on EDGAR → -
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Provision for credit losses increased to $11.0M from $4.0M in Q2, driven by growth in C&I and construction loans and concerns about adversely classified loans. Net charge-offs were $1.6M. Allowance for credit losses rose to 1.08% of gross loans from 1.04% at September 30, 2025.
Exhibit 99.1 view on EDGAR → -
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Repurchased 4.7M shares in first two quarters of FY2026 at average price of $30.99. Stock price up 19% from March 31. Tangible book value per share grew to $30.82 from $29.38 at September 30, 2025. 8.0M shares remain authorized for repurchase.
Exhibit 99.1 view on EDGAR →
Summary
WaFd delivered solid Q3 FY2026 results with net income of $66.1 million, or $0.84 per diluted share, representing 15% year-over-year EPS growth. The company achieved an 11.0% return on tangible common equity while improving its efficiency ratio to 53.7%. Net interest income increased to $181 million as the margin held at 2.81%, benefiting from higher asset yields and declining deposit costs.
The company's active loan portfolios grew at a 10.4% annualized rate, driven by commercial and industrial lending ($2.53 billion to $3.11 billion) and construction loans ($1.74 billion to $2.14 billion).
The provision for credit losses increased to $11.0 million from $4.0 million in the prior quarter, reflecting this growth and concerns about adversely classified loans, though net charge-offs remained modest at $1.6 million and non-performing assets stable at 0.49% of total assets. WaFd repurchased 4.7 million shares in the first half of fiscal 2026 at an average price of $30.99, with tangible book value per share growing to $30.82. The stock price appreciated 19% from March 31, 2026. With 8.0 million shares remaining under authorization and improving profitability metrics, the company continues to return capital to shareholders while funding commercial loan growth.
Section-by-Section Diff
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
quarterly earnings of $66,130,000 for the quarter ended June 30, 2026, an increase of 1% from net earnings of $65,548,000 for the quarter ended March 31, 2026 and an increase of 7% from net earnings of $61,952,000 for the quarter ended June 30, 2025. After the effect of dividends on preferred stock, net income available for common shareholders was $0.84 per diluted share for the quarter ended June 30, 2026, compared to $0.82 per diluted share for the quarter ended March 31, 2026, and $0.73 per diluted share for the quarter ended June 30, 2025, an $0.11 or 15% increase in fully diluted earnings per common share.
WaFd reported net income of $66.1 million for Q3 FY2026, translating to $0.84 per diluted share. This represents a 15% increase in EPS compared to the same quarter last year and a 2% increase from the prior quarter. The company delivered a return on average assets of 0.96% and an 11.0% return on tangible common equity.
Added in current filing · view on EDGAR →
While overall loans outstanding grew modestly for the quarter, net loans in our active loan portfolios grew at an annualized rate of 10.4%.
Active loan portfolios (commercial segment and consumer portfolio) grew at a 10.4% annualized rate, though overall net loans decreased $71 million to $20.0 billion during the nine months ended June 30, 2026. Loan originations for active loan types totaled $1.5 billion for the quarter, with commercial loans representing 96% of originations.
Event · Exhibit 99.2
WaFd Inc. disclosed Q3 2026 financial results showing loan growth, improved net interest margin, and stable credit quality.
Added in current filing · view on EDGAR →
Loans at Amortized Cost 20,047,695 20,168,933 20,232,707
WaFd's loan portfolio at amortized cost grew from $20.05 billion at December 31, 2025 to $20.23 billion at June 30, 2026. The growth was driven by active loan categories, particularly Commercial & Industrial loans which increased from $2.53 billion to $3.11 billion, and Construction loans which rose from $1.74 billion to $2.14 billion. Inactive loan categories (primarily single-family residential mortgages) continued to run off as expected.
Added in current filing · view on EDGAR →
Net interest margin(1) 2.70 % 2.81 % 2.81 %
WaFd's net interest margin improved from 2.70% in Q1 2026 (quarter ended December 31, 2025) to 2.81% in both Q2 and Q3 2026. The expansion reflects a widening interest rate spread from 2.21% to 2.36% over the same period, as the company's asset yields increased while deposit costs declined. The weighted average rate on loan originations rose to 6.31% in Q3 2026 while interest-bearing customer account costs fell from 2.89% to 2.71%.
Added in current filing · view on EDGAR →
Allowance for Credit Losses (ACL) - Total $ 221,039 $ 224,450 $ 233,831
ACL - Loans 199,539 201,950 214,831
ACL - Unfunded Commitments 21,500 22,500 19,000
Total ACL as a % of Gross Loans 1.05 % 1.05 % 1.08 %
WaFd increased its total allowance for credit losses from $221.0 million at December 31, 2025 to $233.8 million at June 30, 2026. The loan loss allowance rose from $199.5 million to $214.8 million, bringing the ACL-to-gross-loans ratio to 1.08% from 1.05%. Net charge-offs remained low at 0.03% annualized in Q3 2026. Non-accrual loans decreased from $191.3 million (0.96% of net loans) at year-end 2025 to $127.6 million (0.64% of net loans) at June 30, 2026.
Added in current filing · view on EDGAR →
Total $ 21,416,970 100 % $ 21,124,151 100 % $ 20,932,075 100 %
Total deposits declined modestly from $21.1M at December 31, 2025 to $21.4M at June 30, 2026. The deposit mix shifted toward lower-cost categories: time deposits fell from 39.9% to 39.1% of total deposits, while money market accounts increased from 19.9% to 21.0%. The cost of interest-bearing customer accounts declined from 2.89% in Q1 2026 to 2.71% in Q3 2026. Uninsured and non-collateralized deposits represented 25.4% of total deposits at quarter-end.
Added in current filing · view on EDGAR →
Shares repurchased 1,950,013 1,950,013 2,738,096 4,688,109 8,806 4,696,915
Average share repurchase price $ 29.75 $ 29.75 $ 31.85 $ 30.98 $ 36.20 $ 30.99
WaFd repurchased 4.70 million shares year-to-date through June 30, 2026 at an average price of $30.99 per share. Q3 2026 repurchase activity was minimal with only 8,806 shares bought at an average price of $36.20. Shares outstanding declined from 76.45 million at December 31, 2025 to 73.95 million at June 30, 2026. The company has 7.99 million shares remaining authorized for repurchase.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 19, 2026 · How we verify