WaFd Announces Fiscal 2026 Earnings and 22% Increase in EPS

WaFd Announces Fiscal 2026 Earnings and 22% Increase in EPS SEATTLE--( BUSINESS WIRE)--WaFd, Inc. (Nasdaq: WAFD):

Fiscal Year Highlights

$256 Million

$3.21

0.94%

10.68%

Net Income

Diluted Earnings per

Common Share

Return on Average

Assets

Return on Tangible

Common Equity (1)

Fourth Quarter Highlights

$60 Million

$0.76

0.87%

9.85%

Net Income

Diluted Earnings per

Common Share

Return on Average

Assets

Return on Tangible

Common Equity (1)

“We are pleased to report the results for our fiscal year end 2026, including increasing earnings per share by 22%, increasing our transaction deposit balances by 4.6%, and growing our active loan segments by 7.9% along with seeing significant improvements in asset quality measures. Specifically, both non-performing assets and delinquencies decreased by 37% since the June 30th quarter end. Asset quality measures improved primarily through the resolution of a large previously classified loan during the quarter resulting in a $36 million charge-off. Our balance sheet strength and resiliency were demonstrated this quarter, allowing us to handle the classified loan, while still delivering meaningful improvement in earnings to shareholders. In spite of the recent surge in interest rates to their highest level in the last twenty years, with the 10 year bond at levels above 5.20%, WaFd is well positioned to benefit from rising rates as our assets are expected to reprice more quickly than our liabilities resulting in expansion of our margin over the short term.”

Brent Beardall

President and CEO of WaFd Bank

Net Interest Income and NIM

Credit Quality

Non-Interest Income and Expense

Shareholder Returns and Stock Activity

Metric is a non-GAAP Financial Measure. See page 9 for additional information on our use of non-GAAP Financial Measures.

The following table provides the Company's financial scorecard for the last five quarters:

As of

(In thousands, except share and ratio data)

September 30,

2026

June 30,

2026

March 31,

2026

December 31,

2025

September 30,

2025

BALANCE SHEET

Cash

749,696

676,467

669,799

734,915

657,310

Loans receivable, net

19,041,263

20,017,876

19,966,983

19,848,156

20,088,618

Allowance for credit losses ("ACL")

214,594

233,831

224,450

221,039

221,220

Loans held for sale

428,944

—

Available-for-sale securities, at fair value

4,048,405

4,190,263

4,352,258

4,142,285

3,533,201

Held-to-maturity securities, at amortized cost

886,881

858,261

745,727

764,794

645,802

Total investments

4,935,286

5,048,524

5,097,985

4,907,079

4,179,003

Total assets

27,230,636

27,596,970

27,568,785

27,285,744

26,699,699

Transaction deposits

12,875,849

12,745,791

12,746,921

12,865,974

12,306,532

Time deposits

8,445,118

8,186,284

8,377,230

8,550,996

9,131,104

Total deposits

21,320,967

20,932,075

21,124,151

21,416,970

21,437,636

Borrowings, senior debt and junior subordinated debentures

2,545,972

3,315,697

3,114,548

2,488,411

1,817,249

Total shareholders' equity

3,000,469

3,022,569

2,981,283

3,029,407

3,039,575

Loans to customer deposits 2

89.31

95.63

94.52

92.67

93.71

PROFITABILITY

Net income

59,991

66,130

65,548

64,196

60,597

Net income to common shareholders

56,335

62,474

61,892

60,540

56,941

Earnings per common share

0.76

0.84

0.82

0.79

0.72

Return on tangible common equity 1

9.85

11.04

10.82

10.57

9.99

Return on tangible assets 1

0.89

0.97

0.93

Net interest margin

2.81

2.70

2.71

Efficiency ratio

55.12

53.69

55.66

55.25

56.82

FINANCIAL HIGHLIGHTS

Common shareholders' equity per share

36.48

36.81

36.30

35.70

35.04

Tangible common shareholders' equity per share 1

30.51

30.82

30.27

29.91

29.38

Shareholders' equity to total assets

11.02

10.95

10.81

11.10

11.38

Tangible shareholders' equity to tangible assets 1

9.55

9.50

9.35

9.64

9.89

Common shares outstanding

74,016,318

73,954,133

73,855,919

76,448,351

78,186,520

Preferred shares outstanding

300,000

CREDIT QUALITY 2

ACL to gross loans

1.04

1.08

1.05

1.04

Non-accrual loans to net loans

0.40

0.64

0.62

0.96

0.64

Delinquencies to net loans

0.50

0.75

0.78

1.07

0.60

Non-performing assets to total assets

0.32

0.49

0.48

0.75

0.54

Total criticized loans to net loans

4.66

4.93

4.24

4.60

4.39

Total adversely classified loans to net loans

2.56

2.59

2.60

2.94

3.16

(1)

Metric is a non-GAAP Financial Measure. See page 9 for additional information on our use of non-GAAP Financial Measures.

(2)

Metrics include only loans held for investment. Loans held for sale are not included.

WaFd, Inc. (Nasdaq: WAFD) (the “Company”), parent company of WaFd Bank (the “Bank”), today announced quarterly earnings of $59,991,000, a decrease of 9% compared to the quarter ended June 30, 2026. After the effect of dividends on preferred stock, net income available for common shareholders was $0.76 per diluted share for the quarter ended September 30, 2026 compared to $0.84 the prior quarter.

Annual earnings were $255,865,000 for fiscal year ended September 30, 2026, an increase of 13% from earnings of $226,068,000 for the year ended September 30, 2025. After the effect of dividends on preferred stock, net income available for common shareholders was $3.21 per diluted share for the year ended September 30, 2026, compared to $2.63 per diluted share for the year ended September 30, 2025, a $0.58 or 22% increase in fully diluted earnings per common share.

Balance Sheet Total assets increased to $27.2 billion as of September 30, 2026, compared to $26.7 billion at September 30, 2025, primarily due to the purchase of investment securities during the period. Investment securities increased by $0.8 billion, or 18.1% in the year ended September 30, 2026, a result of the $1.4 billion in purchases, primarily discount-priced 30-year mortgage backed securities at an expected yield to maturity of 5%. Net loans decreased $1.0 billion to $19.0 billion as a result of loan sale related activity. The Company sold $543 million of single-family residential loans during the September quarter and has entered into an agreement to sell $429 million of multifamily loans in the first quarter of fiscal 2027. These multifamily loans have been reclassified as Held for Sale as of September 30, 2026. We expect to realize a net gain of approximately $7 million when the sale is finalized.

Customer deposits totaled $21.3 billion as of September 30, 2026, compared to $21.4 billion at September 30, 2025. The effective weighted average interest rate, including non-interest bearing deposits, was 2.49% as of September 30, 2026, compared to 2.60% at September 30, 2025. Transaction accounts increased by $569 million or 4.6% during the period, while time deposits decreased $686 million or 7.5%. As of September 30, 2026, 60.4% of the Company’s deposits were transaction accounts, a slight increase from 57.4% at September 30, 2025. Core deposits, defined as all transaction accounts and time deposits less than $250,000, totaled 81.8% of deposits at September 30, 2026, up from 77.9% on September 30, 2025. Deposits that are uninsured or not collateralized were 25.7% of total deposits as of September 30, 2026, a small increase from 24.7% as of September 30, 2025.

Borrowings totaled $2.5 billion as of September 30, 2026, up from $1.8 billion at September 30, 2025. The effective weighted average interest rate of borrowings was 3.0% as of September 30, 2026, compared to 2.5% at September 30, 2025.

Loan originations for active loan types totaled $5.5 billion for fiscal year 2026, compared to $4.0 billion of originations in fiscal year 2025. Offsetting loan originations in each year were loan repayments of $3.9 billion and $5.1 billion, respectively. Active loan types include the commercial segment and the consumer portfolio. Inactive loan types include all consumer residential portfolios. These loan types had repayments of $1.1 billion during fiscal 2026. Commercial loans represented 95% of all loan originations during fiscal 2026 and consumer loans accounted for the remaining 5%. The period end interest yield on the loan portfolio was 5.44% as of September 30, 2026, an increase from 5.38% as of September 30, 2025.

Tangible common equity per share is a key metric for our management team. For the year ended September 30, 2026, tangible common equity per share grew from $29.38 as of September 30, 2025 to $30.51 at September 30, 2026. This metric is a non-GAAP Financial Measure. See page 9 for additional information on our use of non-GAAP Financial Measures. During the year, the Company repurchased 4,703,844 shares of common stock at a weighted average price of $31.00. Our share repurchase plan currently has an authorization of 7,992,669 shares.

Credit Quality Considering the shifting economic and monetary environment, further impacted by on-going global developments, credit quality continues to be monitored closely. Asset quality metrics improved as of September 30, 2026, primarily a result of a $53 million loan relationship being resolved during the quarter resulting in a $36 million charge-off. Non-performing assets decreased to $86 million, or 0.32% of total assets, from $136 million, or 0.49%, at June 30, 2026 and from $143 million, or 0.54%, at September 30, 2025. Non-accrual loans decreased by $52 million, or 40%, compared to June 30 2026 and by $53 million, or 40.95%, since September 30, 2025. Delinquent loans decreased to 0.50% of total loans at September 30, 2026, compared to 0.75% at June 30, 2026 and 0.60% at September 30, 2025.

The allowance for credit losses (including the reserve for unfunded commitments) totaled $215 million as of September 30, 2026, and was 1.04% of gross loans outstanding, as compared to 1.08% and 1.04% of gross loans outstanding as of June 30, 2026 and September 30, 2025, respectively. The decrease compared to the prior quarter was the result of improved outlook on credit quality combined with a reduction in adversely classified loans. Net charge-offs were $39.2 million for the quarter ended September 30, 2026, compared to $1.6 million the prior quarter. Net charge-offs were $45.1 million for fiscal year 2026, compared to $11.8 million for fiscal 2025.

Profitability Net interest income was $182.4 million for the fourth fiscal quarter of 2026, a small increase of $1 million or 0.6% from the prior quarter. This minor change was the result of a flat net interest margin. Net interest margin was 2.81% in the fourth fiscal quarter 2026, the same as the quarter ended June 30, 2026.

Total non-interest income was $38.1 million for the fourth fiscal quarter of 2026 compared to $24.2 million the prior quarter. The increase was primarily driven by a $16.4 million gain on the sale of single family loans during the quarter. This gain was partially offset by the quarter-over-quarter reduction in non-interest income attributable to the $3 million gain on the sale of bank real estate recognized in the third quarter.

Total non-interest expense was $121.5 million for the fourth fiscal quarter of 2026, an increase of $11.2 million, or 10.1%, from the prior quarter. This was the result of continued investments in our people and technologies combined with $6 million in merger related costs incurred during the fourth quarter. The Company’s efficiency ratio increased in the fourth fiscal quarter of 2026 to 55.12%, compared to 53.69% in the prior quarter as a result of the increase in expenses related to the merger.

The Company recorded a $20.0 million provision for credit losses for the quarter ended September 30, 2026 compared to a provision of $11.0 million the prior quarter. The provision for loan losses for the fourth fiscal quarter of 2026 was the result of growth in the active loan portfolio and increased charge-offs during the quarter.

Income tax expense totaled $17.1 million for the fourth fiscal quarter of 2026, as compared to $18.2 million for the prior quarter. The effective tax rate for the quarter ended September 30, 2026 was 22.17%, compared to 21.60% for the quarter ended June 30, 2026. The Company’s effective tax rate may vary from the statutory rate mainly due to state taxes, tax-exempt income and tax-credit investments.

WaFd Bank is headquartered in Seattle, Washington, and has 210 branches in nine western states. To find out more about WaFd Bank, please visit our website www.wafdbank.com. The Company will host a conference call for investors and analysts at 7:00am PDT on Friday, October 16, 2026. Participants may register for the call from a link on the Company's investor relations site ( https://www.wafdbank.com/about-us/investor-relations) or through a direct link ( https://register-conf.media-server.com/register/BI55bf810431ac4687be8738dd899c7d6d). The Company uses its website to distribute financial and other material information about the Company.

WAFD, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(UNAUDITED)

September 30, 2026

September 30, 2025

(In thousands, except share and ratio data)

ASSETS

Cash and cash equivalents

749,696

657,310

Available-for-sale securities, at fair value

4,048,405

3,533,201

Held-to-maturity securities, at amortized cost

886,881

645,802

Loans receivable, net of allowance for loan losses of $199,594 and $199,720

19,041,263

20,088,618

Loans held for sale

428,944

—

Interest receivable

101,923

98,589

Premises and equipment, net

291,695

261,271

Real estate owned

10,202

11,084

FHLB stock

122,568

88,068

Bank owned life insurance

383,934

275,159

Intangible assets, including goodwill of $418,447 and $414,722

441,958

442,093

Federal and state income tax assets, net

127,425

112,784

Other assets

595,742

485,720

27,230,636

26,699,699

LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities

Transaction deposits

12,875,849

12,306,532

Time deposits

8,445,118

9,131,104

Total customer deposits

21,320,967

21,437,636

Borrowings

2,493,400

1,765,604

Junior subordinated debentures

52,572

51,645

Advance payments by borrowers for taxes and insurance

61,099

59,845

Accrued expenses and other liabilities

302,129

345,394

24,230,167

23,660,124

Shareholders’ equity

Preferred stock, $1.00 par value, 5,000,000 shares authorized; 300,000 and 300,000 shares issued; 300,000 and 300,000 shares outstanding

300,000

Common stock, $1.00 par value, 300,000,000 shares authorized; 154,928,571 and 154,408,001 shares issued; 74,016,318 and 78,186,520 shares outstanding

154,929

154,408

Additional paid-in capital

2,179,512

2,163,276

Accumulated other comprehensive income (loss), net of taxes

(14,781

)

56,950

Treasury stock, at cost; 80,912,253 and 76,221,481 shares

(1,886,265

)

(1,740,761

)

Retained earnings

2,267,074

2,105,702

3,000,469

3,039,575

27,230,636

26,699,699

Yield and margin as of period end

Loans receivable 1

5.44

5.38

Mortgage-backed securities

4.52

4.44

Combined cash, investments and FHLB stock

4.23

4.96

Interest-earning assets

5.21

5.23

Interest-bearing customer accounts

2.85

2.95

Borrowings 1

2.97

2.50

Interest-bearing liabilities

2.87

2.91

Net interest spread

2.34

2.32

Net interest margin

2.81

2.82

Accretion and amortization assumed to be same as prior quarter. Also includes the impact of derivatives.

WAFD, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three months ended September 30,

Twelve months ended September 30,

2026

2025

2026

2025

(In thousands, except share and ratio data)

INTEREST INCOME

Loans receivable

270,935

271,787

1,064,533

1,119,937

Mortgage-backed securities

47,463

32,953

177,275

103,071

Investment securities and cash equivalents

18,095

21,794

74,040

116,441

336,493

326,534

1,315,848

1,339,449

INTEREST EXPENSE

Customer accounts

129,921

143,874

515,213

604,707

Borrowings, and junior subordinated debentures

24,219

12,754

88,263

80,507

154,140

156,628

603,476

685,214

Net interest income

182,353

169,906

712,372

654,235

Provision (release) for credit losses

20,000

3,000

38,500

7,750

Net interest income after provision (release)

162,353

166,906

673,872

646,485

NON-INTEREST INCOME

Gain on sale of investment securities

—

112

Gain on termination of hedging derivatives

(19

)

419

158

Gain on sale of loans

16,412

—

16,412

Loan fee income

2,731

2,081

8,482

6,888

Deposit fee income

8,253

7,959

31,927

29,650

Other income

10,707

8,319

44,978

34,531

Total non-interest income

38,084

18,391

102,330

71,247

NON-INTEREST EXPENSE

Compensation and benefits

59,985

56,028

228,694

222,146

Occupancy

13,064

10,895

47,787

44,937

FDIC insurance premiums

6,360

4,400

22,352

20,200

Product delivery

6,370

6,558

27,121

25,871

Information technology

17,441

16,406

63,901

60,101

Other expense

18,275

12,706

57,552

54,208

Total non-interest expense

121,495

106,993

447,407

427,463

Gain (loss) on real estate owned, net

(1,863

)

(681

)

(1,260

)

(627

)

Income before income taxes

77,079

77,623

327,535

289,642

Income tax provision

17,088

17,026

71,670

63,574

Net income

59,991

60,597

255,865

226,068

Dividends on preferred stock

3,656

14,625

Net income available to common shareholders

56,335

56,941

241,240

211,443

PER SHARE DATA

Basic earnings per common share

0.76

0.73

3.21

2.64

Diluted earnings per common share

0.76

0.72

3.21

2.63

Cash dividends per common share

0.27

1.08

1.07

Basic weighted average shares outstanding

74,001,170

78,509,472

75,091,220

80,184,395

Diluted weighted average shares outstanding

74,157,143

78,573,457

75,198,789

80,255,189

PERFORMANCE RATIOS

Return on average assets

0.87

0.91

0.94

0.84

Return on average common equity

8.25

8.36

8.85

7.75

WAFD, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three Months Ended

September 30, 2026

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

(In thousands, except share and ratio data)

INTEREST INCOME

Loans receivable

270,935

267,243

262,148

264,207

271,787

Mortgage-backed securities

47,463

46,569

44,341

38,902

32,953

Investment securities and cash equivalents

18,095

18,313

18,245

19,387

21,794

336,493

332,125

324,734

322,496

326,534

INTEREST EXPENSE

Customer accounts

129,921

123,079

125,999

136,214

143,874

Borrowings and junior subordinated debentures

24,219

27,708

21,165

15,171

12,754

154,140

150,787

147,164

151,385

156,628

Net interest income

182,353

181,338

177,570

171,111

169,906

Provision for credit losses

20,000

11,000

4,000

3,500

3,000

Net interest income after provision

162,353

170,338

173,570

167,611

166,906

NON-INTEREST INCOME

Gain on sale of investment securities

—

112

—

Gain on termination of hedging derivatives

(19

)

(12

)

426

Gain on sale of loans

16,412

—

Loan fee income

2,731

2,181

2,216

1,354

2,081

Deposit fee income

8,253

8,142

7,674

7,858

7,959

Other income

10,707

13,755

9,497

11,019

8,319

Total non-interest income

38,084

24,178

19,813

20,255

18,391

NON-INTEREST EXPENSE

Compensation and benefits

59,985

57,399

57,120

54,190

56,028

Occupancy

13,064

11,842

11,711

11,170

10,895

FDIC insurance premiums

6,360

5,542

5,050

5,400

4,400

Product delivery

6,370

7,067

7,110

6,574

6,558

Information technology

17,441

16,157

15,919

14,384

16,406

Other expense

18,275

12,327

12,947

14,003

12,706

Total non-interest expense

121,495

110,334

109,857

105,721

106,993

Gain (loss) on real estate owned, net

(1,863

)

167

280

156

(681

)

Income before income taxes

77,079

84,349

83,806

82,301

77,623

Income tax provision

17,088

18,219

18,258

18,105

17,026

Net income

59,991

66,130

65,548

64,196

60,597

Dividends on preferred stock

3,656

Net income available to common shareholders

56,335

62,474

61,892

60,540

56,941

PER SHARE DATA

Basic earnings per common share

0.76

0.85

0.82

0.79

0.73

Diluted earnings per common share

0.76

0.84

0.82

0.79

0.72

Cash dividends per common share

0.27

Basic weighted average shares outstanding

74,001,170

73,901,725

75,487,399

76,969,729

78,509,472

Diluted weighted average shares outstanding

74,157,143

74,046,838

75,574,228

77,015,554

78,573,457

PERFORMANCE RATIOS

Return on average assets

0.87

0.96

0.91

Return on average common equity

8.25

9.23

9.05

8.86

8.36

Net interest margin

2.81

2.70

2.71

Efficiency ratio

55.12

53.69

55.66

55.25

56.82

WAFD, INC. AND SUBSIDIARIES

NON-GAAP MEASURES

(UNAUDITED)

Non-GAAP Financial Measures

The Company has presented certain non-GAAP measures within this document to remove the effect of certain income and expenses to provide investors with information useful in understanding our financial performance. The Company considers these items to be non-operating in nature as they are items that management does not consider indicative of the Company's on-going financial performance. We believe the tables presented reflect our on-going performance in the periods presented and, accordingly, are useful to consider in addition to our GAAP financial results. These measures should not be considered a substitution for GAAP basis disclosures.

Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way they are calculated herein. Because of this, our non-GAAP financial measures may not be comparable to similar measures used by others. We caution investors not to place undue reliance on such measures. See the following unaudited tables for reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures.

Tangible Measures

September 30, 2026

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

(Unaudited - In thousands, except for share and ratio data)

Shareholders' equity - GAAP

3,000,469

3,022,569

2,981,283

3,029,407

3,039,575

Less intangible assets - GAAP

441,958

443,670

445,511

443,085

442,093

Tangible shareholders' equity

2,558,511

2,578,899

2,535,772

2,586,322

2,597,482

Less preferred stock - GAAP

300,000

Tangible common shareholders' equity

2,258,511

2,278,899

2,235,772

2,286,322

2,297,482

Total assets - GAAP

27,230,636

27,596,970

27,568,785

27,285,744

26,699,699

Less intangible assets - GAAP

441,958

443,670

445,511

443,085

442,093

Tangible assets

26,788,678

27,153,300

27,123,274

26,842,659

26,257,606

Tangible Metrics

Common shares outstanding - GAAP

74,016,318

73,954,133

73,855,919

76,448,351

78,186,520

Tangible common equity per share

30.51

30.82

30.27

29.91

29.38

Tangible equity to tangible assets

9.55

9.50

9.35

9.64

9.89

Three Months Ended

Average Tangible Measures

September 30, 2026

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

(Unaudited - In thousands, except for ratio data)

Average shareholders' equity - GAAP

3,030,562

3,008,370

3,034,123

3,033,933

3,023,098

Less average preferred stock

- GAAP

300,000

Less average intangible assets - GAAP

442,951

444,665

445,155

442,226

443,382

Average tangible common equity

2,287,611

2,263,705

2,288,968

2,291,707

2,279,716

Average Assets - GAAP

27,555,960

27,612,152

27,350,614

26,852,389

26,540,782

Less average intangible assets - GAAP

442,951

444,665

445,155

442,226

443,382

Average tangible assets

27,113,009

27,167,487

26,905,459

26,410,163

26,097,400

Average Tangible Metrics

Net income - GAAP

59,991

66,130

65,548

64,196

60,597

Net income available to common shareholders - GAAP

56,335

62,474

61,892

60,540

56,941

Return on tangible common equity

9.85

11.04

10.82

10.57

9.99

Return on tangible assets

0.89

0.97

0.93

Three Months Ended

Net Income Adjusted for Acquisition Expenses and Other Non-Operating Items

September 30, 2026

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

(Unaudited - In thousands, except for share and ratio data)

Non-interest income adjustments

(Gain)Loss on sale of branch property

(3,205

)

(3,214

)

467

Distribution received on LBC equity method investment

(210

)

(225

)

(225

)

(237

)

(251

)

(Gain)Loss on WaFd Bank equity method investment

422

(48

)

1,072

408

(815

)

Total non-interest income adjustments

234

(3,478

)

874

(3,043

)

(599

)

Non-interest expense adjustments

Merger-related expenses

6,168

—

Total non-interest expense adjustments

6,168

—

Net Income - GAAP

59,991

66,130

65,548

64,196

60,597

Non-interest income adjustments

234

(3,478

)

874

(3,043

)

(599

)

Non-interest expense adjustments

6,168

—

REO adjustments

1,863

(167

)

(280

)

(156

)

681

Income tax adjustment

(1,832

)

787

(129

)

704

(18

)

Net Income - non-GAAP

66,424

63,272

66,013

61,701

60,661

Dividend on preferred stock

3,656

Net Income available to common shareholders - non-GAAP

62,768

59,616

62,357

58,045

57,005

Basic weighted average number of shares outstanding - GAAP

74,001,170

73,901,725

75,487,399

76,969,729

78,509,472

Diluted weighted average number of shares outstanding - GAAP

74,157,143

74,046,838

75,574,228

77,015,554

78,573,457

Basic EPS - non-GAAP

0.85

0.81

0.83

0.75

0.73

Diluted EPS - non-GAAP

0.85

0.81

0.83

0.75

0.73

Three Months Ended

Adjusted Efficiency Ratio

September 30, 2026

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

(Unaudited - In thousands, except for ratio data)

Efficiency ratio - GAAP

55.1

53.7

55.7

55.3

56.8

Net interest income - GAAP

182,353

181,338

177,570

171,111

169,906

Total interest income adjustments

—

Net interest income - non-GAAP

182,353

181,338

177,570

171,111

169,906

Non-interest expense - GAAP

121,495

110,334

109,857

105,721

106,993

Less merger related expenses

6,168

—

Non-interest Expenses - non-GAAP

115,327

110,334

109,857

105,721

106,993

Non-interest income - GAAP

38,084

24,178

19,813

20,255

18,391

Total other income adjustments

234

(3,478

)

874

(3,043

)

(599

)

Non-interest income - non-GAAP

38,318

20,700

20,687

17,212

17,792

Net Interest Income - non-GAAP

182,353

181,338

177,570

171,111

169,906

Non-interest income - non-GAAP

38,318

20,700

20,687

17,212

17,792

Total Income - non-GAAP

220,671

202,038

198,257

188,323

187,698

Adjusted Efficiency Ratio

52.3

54.6

55.4

56.1

57.0

Three Months Ended

Adjusted ROA and ROE

September 30, 2026

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

(Unaudited - In thousands, except for ratio data)

Reported:

Net Income - GAAP

59,991

66,130

65,548

64,196

60,597

Net income available to common shareholders - GAAP

56,335

62,474

61,892

60,540

56,941

Average Assets

27,555,960

27,612,152

27,350,614

26,852,389

26,540,782

Return on Assets

0.87

0.96

0.91

Average Common Equity

2,730,562

2,708,370

2,734,123

2,733,933

2,723,098

Return on common equity

8.25

9.23

9.05

8.86

8.36

Adjusted:

Net Income - non-GAAP

66,424

63,272

66,013

61,701

60,661

Net income available to common shareholders - non-GAAP

62,768

59,616

62,357

58,045

57,005

Average Assets

27,555,960

27,612,152

27,350,614

26,852,389

26,540,782

Adjusted Return on Assets

0.96

0.92

0.97

0.92

0.91

Average Common Equity

2,730,562

2,708,370

2,734,123

2,733,933

2,723,098

Adjusted Return on common equity

9.19

8.80

9.12

8.49

8.37

Important Cautionary Statements

The foregoing information should be read in conjunction with the financial statements, notes and other information contained in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

This press release contains statements about the Company’s future that are not statements of historical or current fact. These statements are “forward-looking statements” for purposes of applicable securities laws and are based on current information and/or management's good faith belief as to future events. Words such as “expects,” “anticipates,” “believes,” “estimates,” “intends,” “forecasts,” “may,” “potential,” “projects,” and other similar expressions or future or conditional verbs such as “will,” “should,” “would,” and “could” are intended to help identify such forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes any such statements are based on reasonable assumptions, forward-looking statements should not be read as a guarantee of future performance, and you are cautioned not to place undue reliance on any forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statement.

By their nature, forward-looking statements involve inherent risk and uncertainties including the following risks and uncertainties, and those risks and uncertainties more fully discussed under “Risk Factors” in the Company’s September 30, 2025 10-K and Quarterly Reports on Form 10-Q, which could cause actual performance to differ materially from that anticipated by any forward-looking statements. Forward-looking statements relating to our financial condition or operations are subject to risks and uncertainties related to (i) fluctuations in interest rate risk and market interest rates, including the effect on our net interest income and net interest margin; (ii) current and future economic conditions, including the effects of declines in the real estate market, tariffs, high unemployment rates, inflationary pressures, a potential recession, the monetary policies of the Federal Reserve, and slowdowns in economic growth either nationally or locally in some or all of the areas in which we conduct business; (iii) financial stress on borrowers (consumers and businesses) as a result of higher interest rates or an uncertain economic environment; (iv) changes in deposit flows or loan demands; (v) our ability to identify and address cyber-security risks, including through the use of artificial intelligence, such as security breaches, "denial of service attacks," "hacking" and identity theft; (vi) the Company's exit from the mortgage lending business; (vii) the effects of natural or man-made disasters, calamities, or conflicts, including terrorist events and pandemics (such as the COVID-19 pandemic) and the resulting governmental and societal responses; (viii) the results of examinations by regulatory authorities, which may impose restrictions or penalties on the Company's activities and changes in laws, regulations, or government policies; (ix) expectations regarding key growth initiatives and strategic priorities; (x) our reliance on third party provided technology and developments related to artificial intelligence; (xi) global economic trends, including developments related to Ukraine and Russia, and the evolving conflict in the Middle East, and related negative financial impacts on our borrowers; (xii) litigation risks resulting in significant expenses, losses and reputational damage; (xiii) the impact of bank failures or adverse developments at other banks and related negative press about regional banks and the banking industry in general; and (xiv) other economic, competitive, governmental, environmental, regulatory, and technological factors affecting our operations, pricing, products and services; (xv) the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between WaFd and EverBank, (xvi) the timing and completion of the transaction between WaFd and EverBank, including the possibility that the proposed transaction will not close when expected or at all because required regulatory, shareholder or other approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all, or are obtained subject to conditions that are not anticipated; (xvii) the possibility that the anticipated benefits of the transaction will not be realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies; (xviii) the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, and (xix) the outcome of any legal proceedings that may be instituted against WaFd or EverBank, including potential litigation that may be instituted against WaFd or its directors or officers related to the proposed transaction or the definitive merger agreement between WaFd and EverBank.