WaFd, Inc.

What they do

WaFd Bank accepts deposits and invests in loans, including construction, land acquisition and development, multi-family, commercial real estate, and business loans, including SBA loans. The company also offers insurance brokerage through WaFd Insurance Group and wealth management through WaFd Wealth. It operates 208 branches in Washington, Oregon, Idaho, Arizona, Utah, Nevada, New Mexico, California, and Texas. Effective September 25, 2025, the bank changed its name from Washington Federal Bank to WaFd Bank.

Revenue drivers

• Net interest income — Primary revenue source; $181 million in Q3 FY2026, with net interest margin at 2.81%.
• Commercial real estate lending — Key loan category; active portfolios grew at an annualized 10.4% in Q3 FY2026.
• Business and SBA lending — Part of the loan portfolio mix, contributing to overall interest income.
• Non-interest income — Includes gains on sale of branch property and other fees; up $4.4 million in Q3 FY2026.

Recent performance

For the quarter ended June 30, 2026, WaFd reported net income of $66.1 million, up 1% from the March 2026 quarter and 7% from the June 2025 quarter. Diluted EPS was $0.84, up 15% year-over-year. Total assets were $27.6 billion, and loans receivable net were $20.0 billion. The efficiency ratio improved to 53.7%, and return on tangible common equity was 11.0%. Non-performing assets were 0.49% of total assets, and delinquencies were 0.75% of total loans.

Strategy

Management has taken steps to reduce interest rate risk by growing shorter-term loans and transaction deposit accounts. The company exited the consumer single-family home lending and home equity lines of credit origination business in January 2025. It is focusing on active loan portfolios, as evidenced by 10.4% annualized growth in those portfolios. The company repurchased 4.7 million shares in the first two quarters of fiscal 2026, returning capital to shareholders. It continues to pay quarterly dividends, with the 173rd consecutive dividend paid in June 2026.

Risks

• Interest rate risk — Fluctuating rates could reduce net interest income as floating-rate assets may reprice faster than deposit liabilities.
• Credit risk — Deterioration in borrower creditworthiness or real estate values could lead to higher loan loss provisions and charge-offs.
• Regulatory risk — Non-compliance with banking regulations, or changes in capital requirements or deposit insurance premiums, could impact operations.
• Economic downturn — Financial stress on borrowers, inflation, or a slowdown in economic growth could hurt loan performance and demand.

Outlook

Management expects continued earnings growth driven by net interest income and disciplined expense management. The company is focusing on active loan portfolios and reducing balance sheet interest rate sensitivity. It also aims to maintain strong capital returns through dividends and share repurchases. No specific forward guidance was provided in the latest release.