WaFd (WAFD) Fiscal Q4 2026 Earnings Call: Loan Sales, Credit Charge-Off and EverBank Merger
Source Tradingkey
Key Takeaways
- WaFd, Inc. (NASDAQ: WAFD) reported fiscal Q4 2026 net income available to common shareholders of $56.3 million, or $0.76 per diluted share, compared with $0.84 in fiscal Q3 2026 and $0.72 a year earlier.
- Full-year diluted EPS increased 22% to $3.21 from $2.63 in fiscal 2025. Net income available to common shareholders reached $241.2 million.
- Net interest margin held at 2.81%. Management expects modest margin expansion over the next one or two quarters as assets reprice faster than liabilities.
- Net charge-offs rose to $39.2 million following the resolution of a large private equity-owned manufacturing credit. The fiscal-year loss rate was 22 basis points, or 4 basis points excluding that relationship.
- WaFd sold $543 million of single-family residential loans and agreed to sell $429 million of multifamily loans. The latter transaction is expected to generate an approximately $7 million net gain when completed.
- The proposed EverBank merger remains on track to close in the first calendar quarter of 2027, subject to shareholder and regulatory approvals.
Core Financial Data
| Metric | Fiscal Q4 2026 | Comparison / Commentary |
|---|---|---|
| Net income available to common shareholders | $56.3 million | Full-year total was $241.2 million |
| Diluted EPS | $0.76 | $0.84 in fiscal Q3 2026; $0.72 in fiscal Q4 2025 |
| Full-year diluted EPS | $3.21 | $2.63 in fiscal 2025 |
| Net interest margin | 2.81% | Unchanged sequentially |
| Noninterest income | $38.1 million | Up from $24.2 million, primarily due to a $16.4 million loan-sale gain |
| Noninterest expense | $121.5 million | Up from $110.3 million; included $6.2 million of merger costs |
| Efficiency ratio | 55.12% | 53.7% in the prior quarter |
| Net provision for credit losses | $20.0 million | $11.0 million in the prior quarter |
| Net charge-offs | $39.2 million | Included the resolved large C&I relationship |
| Nonperforming assets | $86 million, or 0.32% of assets | Down from $136 million, or 0.49%, at June 30, 2026 |
| Loan-to-deposit ratio | 89.3% | Declined primarily because of loan-sale activity |
| On-balance-sheet liquidity | $4.2 billion | Supported by additional off-balance-sheet borrowing capacity |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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