Washington Federal Stock Earnings Reports

WaFd reported a strong Q2 FY2026: net income available to common shareholders was $61.9 million, or $0.82 diluted EPS (up $0.03 linked quarter, +26% YoY). The quarter's standout was loan growth — active loan originations totaled $1.5 billion and net loans increased $119 million, driven by C&I, construction, CRE and multifamily. Active loan balances rose ~12% linked-quarter (20% including unfunded commitments). Deposits fell $292 million seasonally, but core deposits were 80.4% of total and noninterest-bearing deposits rose to 12.2%. Net interest margin improved to 2.81% (linked +5 bps); management expects margin to be roughly flat near-term absent rate changes, with a short-term goal of ~3% over the next two years driven by higher-yielding loan mix and lower-cost commercial deposits. Credit metrics improved: nonperforming assets declined to $132 million (0.48% of assets), criticized loans declined to 4.2% of net loans, and the allowance (incl. unfunded) covers 1.05% of gross loans. Provision expense was modest ($4 million) and charge-offs were negligible. Capital remains solid (estimated CET1 ~11.4%); management repurchased 2.7 million shares in the quarter and has authorization for ~8 million more. Management highlighted a proposed Fed rule that could lower risk-weights for low-LTV single-family loans, which they estimate could boost regulatory capital by ~ $400 million if adopted. Strategic priorities under "Build 2030" emphasize growing commercial banking (business bank, corporate, CRE), increasing noninterest-bearing deposits to 20% by 2030, expanding wealth management (AUM ~ $450 million), and technology/AI investments (new mobile app, AI call-center agent). Management remains focused on disciplined underwriting, returning capital when appropriate, and growing low-cost core deposits to drive margin and ROE improvement.