WaFd (NASDAQ:WAFD) Posts Quarterly Earnings Results, Beats Expectations By $0.01 EPS

WaFd (NASDAQ:WAFD) issued its quarterly earnings data on Friday. The bank reported $0.85 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.84 by $0.01, reports. The business had revenue of $220.44 million during the quarter, compared to the consensus estimate of $203.66 million. WaFd had a net margin of 18.47% and a return on equity of 8.98%.

Here are the key takeaways from WaFd’s conference call:

• Fiscal 2026 earnings improved: EPS rose 22% year over year to $3.21, while full-year net income reached $241.2 million, WaFd’s second-best annual result.
• Active loan production increased 56.6% year over year to $5.5 billion, and core deposits rose to 81.8% of total deposits. Management also expects modest net interest margin expansion as assets reprice faster than liabilities.
• Quarterly results were pressured by $39.2 million of net charge-offs, including a significant loss on a private-equity-owned manufacturer, lifting the quarterly provision for credit losses to $20 million. Management said the loss was unusual, although credit metrics improved overall.
• The EverBank merger remains on track to close in the first quarter of calendar 2027, pending shareholder and regulatory approvals. Management projects approximately 29% EPS accretion after full cost savings and believes the combination will improve scale, technology investment, deposit flexibility, and exposure diversification.
• Loan sales reduced receivables by roughly $1 billion, with another $429 million of multifamily loans expected to be sold in December; management acknowledged the need to offset the resulting net interest income pressure through reinvestment or other balance-sheet actions.

WaFd Stock Down 1.0%

NASDAQ WAFD traded down $0.30 during midday trading on Friday, hitting $29.15. 1,510,500 shares of the company traded hands, compared to its average volume of 725,791. The company has a market cap of $2.16 billion, a PE ratio of 9.20 and a beta of 0.89. The company has a debt-to-equity ratio of 1.20, a current ratio of 0.98 and a quick ratio of 0.98. The company’s 50-day simple moving average is $33.66 and its 200-day simple moving average is $35.04. WaFd has a 52 week low of $26.31 and a 52 week high of $39.49.

WaFd Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, September 4th. Shareholders of record on Friday, August 21st were given a dividend of $0.27 per share. The ex-dividend date of this dividend was Friday, August 21st. This represents a $1.08 dividend on an annualized basis and a yield of 3.7%. WaFd’s dividend payout ratio (DPR) is 34.07%.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on WAFD. Zacks Research raised shares of WaFd from a “hold” rating to a “strong-buy” rating in a research note on Monday, October 5th. DA Davidson decreased their price objective on shares of WaFd from $40.00 to $37.00 and set a “neutral” rating for the company in a report on Wednesday, September 9th. Weiss Ratings cut shares of WaFd from a “buy (b)” rating to a “buy (b-)” rating in a report on Thursday, September 3rd. Finally, Piper Sandler cut their price target on WaFd from $36.00 to $32.00 and set a “neutral” rating on the stock in a research note on Thursday, October 1st. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $35.25.

About WaFd

WaFd, Inc is a bank holding company headquartered in Seattle, Washington, and the parent company of WaFd Bank. Founded in 1917 as Washington Federal, the company adopted the WaFd name in 2024. WaFd Bank provides banking and financial services to individuals, families, businesses and nonprofit organizations.

The bank offers deposit accounts, residential mortgage lending, home equity financing, commercial real estate loans, commercial and industrial lending, construction financing and consumer banking products.