WaFd, Inc.

WaFd Inc. reported net income available to common shareholders of $62.5 million, or $0.84 per diluted share, for the quarter ended June 30, 2026. That compared with $0.73 per share in the third quarter of fiscal 2025 and $0.82 per share in the March 2026 quarter. Net interest income increased $3.8 million sequentially, and net interest margin held steady at 2.81% (spot margin 2.82%). Non-interest income rose $4.4 million to $24.2 million, non-interest expense was flat at $110 million, and the efficiency ratio improved to 53.7% from 55.7% last quarter. Loans receivable increased $51 million; originations were $1.5 billion and repayments/payoffs were $1.0 billion. Total deposits declined $192 million, and loan-to-deposit ratio ended at 95.6%. Management estimated CET1 at 11.4% and total risk-based capital at 14.4%, with on-balance-sheet liquidity of $4.8 billion. For guidance, management expects margin to be relatively flat next quarter if rates do not change, effective tax rate around 21.8% for fiscal 2026, and active loan portfolio growth of 8%-12% going forward.

Brent Beardall framed the quarter as a continuation of WaFd’s shift toward business banking, with loan growth again the main headline. He emphasized strong active loan growth, especially C&I, and said the strategic plan, Build 2030, is aimed at improving the deposit mix, lowering funding costs, and growing the business banking franchise over time. His tone was confident but pragmatic: he acknowledged intense deposit competition, a challenging M&A environment, and that the bank would remain disciplined rather than overpay for deals.

Kelli Holz focused on the quarter’s operating and balance-sheet details, highlighting $62.5 million of net income, $0.84 EPS, $3.8 million of sequential net interest income growth, and a stable 2.81% margin. She noted total deposits fell $192 million while non-interest-bearing deposits rose $69 million, and said the company’s capital remained strong with CET1 at 11.4% and total risk-based capital at 14.4%. She also said WaFd sold $77 million of securities at a net gain of $110,000, expects the Luther Burbank accretion to continue at $6 million to $7 million per quarter, and set fiscal 2026 effective tax rate guidance at about 21.8%.

Analysts pressed on loan growth durability, margin path, deposit costs, buybacks, and M&A. Management said net loan growth in the near term could be in the low single digits on a net basis, margin guidance already includes Luther Burbank accretion and securities actions, and higher rates would likely help margin if they occur. On capital deployment, management said the priorities are organic growth first, then strategic M&A if the economics work, and only then repurchases; it also said buybacks will likely be less aggressive near current trading levels.