Washington Federal Stock Earnings Reports

WaFd reported Q2 FY2026 EPS of $0.82 (up $0.03 linked quarter, +26% YoY) driven by modest net interest income improvement, controlled expenses and 2.7M shares repurchased. Loan activity was the quarter's headline: $1.5B of originations in active loan types drove a $119M quarter-over-quarter increase in total loans (active portfolio +12% linked quarter; gross active loans +20% when including unfunded). Net interest margin was 2.81% (spot yield on earning assets 5.06%, cost of interest-bearing liabilities 2.78%). Deposits decreased $292M seasonally, but core deposits rose to 80.4% of total; noninterest-bearing deposits are 12.2% (management target: 20% by 2030). Capital and liquidity remain strong (estimated CET1 11.4%, total risk-based 14.4%, $4.2B on-balance liquidity). Credit trends improved: NPAs down to $132M (0.48% of assets), criticized loans and delinquencies decreased, allowance for credit losses 1.05% of gross loans. Management repurchased shares aggressively (2.7M at $31.85; remaining authorization ~8M shares) and reiterated capital-return and loan-growth priorities. Strategic initiatives: Build 2030 to shift focus to business banking/CRE/C&I, wealth management (AUM ~$450M), technology investments including next-gen mobile app and AI call center. Potential regulatory tailwind: a proposed Fed rule change could reduce risk weights on low-LTV single-family loans and—if adopted—might lift WaFd’s regulatory capital by ~ $400M, giving the bank more capacity for lending, buybacks or M&A. Key risks noted: competitive pressure for low-cost deposits (including new entrants like X Money), elevated rates and macro/ geopolitical uncertainty as headwinds to credit and funding.