Washington Federal Stock Earnings Reports

WaFd reported fiscal Q1 2026 net income available to common shareholders of $60.5 million, or $0.79 diluted EPS, up $0.07 sequentially and up 40% year-over-year. Net interest income was roughly flat sequentially with NIM of 2.7% (spot margin 2.77%) and modest net interest income growth was offset by margin pressure from increased nonaccruals and accelerated mortgage-backed security (MBS) purchases to replace single-family loan runoff. Loans decreased $240 million primarily from runoff in inactive loan types (SFR, custom construction, consumer lot), while originations in active loan types were $1.1 billion. Investments and MBS grew $728 million funded largely by $671 million of borrowings. Deposits were essentially flat (down $21 million), with core deposits at 79.7% and noninterest-bearing deposits rising to 12.6% of total. Liquidity and capital remain strong and well above regulatory well-capitalized levels. Credit trends showed rising NPAs and delinquencies—nonperforming assets rose to $203 million (0.75% of assets) driven by a 49% increase in nonaccrual loans—though management attributes a meaningful portion of the move to two commercial relationships totalling $58 million. The allowance for credit losses (including unfunded commitments) covered 1.05% of gross loans. Management reiterated strategic Build 2030 shift toward business banking (C&I, CRE, SBA) with goals to increase noninterest-bearing deposits to 20% by 2030, grow active loan portfolios ~8%–12% over the next 1–2 years, and target a near-term NIM of 3%. Share repurchases remain active (1.95M shares repurchased this quarter; ~6.3M shares remaining authorization) with management viewing buybacks as attractive relative to tangible book value.