WaFd Announces Quarterly Earnings Per Share Of $0.84

WaFd Announces Quarterly Earnings Per Share Of $0.84 SEATTLE--( BUSINESS WIRE)--WaFd, Inc. (Nasdaq: WAFD):

WaFd Announces Quarterly Earnings Per Share of $0.84

Q3 Highlights

$66 Million

$0.84

0.96%

11.0%

Net Income

Diluted Earnings

per Common Share

Return on Average

Assets

Return on Tangible

Common Equity 1

"WaFd delivered strong results in the third quarter of fiscal 2026, with healthy growth in earnings, loans, and equity. Earnings per share increased 15% year-over-year and 2% compared to the March quarter. While overall loans outstanding grew modestly for the quarter, net loans in our active loan portfolios grew at an annualized rate of 10.4%. Growth in net interest income, combined with disciplined expense management, drove our efficiency ratio to 53.7%, and we delivered an 11.0% return on tangible common equity for the quarter. We believe that the market is beginning to recognize WaFd's consistent earnings power — our stock price is up 19% from March 31, with 4.7 million shares repurchased in the first two quarter of the fiscal year. I want to thank our team of bankers for their continued dedication to delivering for our clients and shareholders."

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

1 Metric is a non-GAAP Financial Measure. See page 10 for additional information on our use of non-GAAP Financial Measures

WaFd, Inc. (Nasdaq: WAFD) (the "Company"), parent company of WaFd Bank (or the "Bank"), today announced quarterly earnings of $66,130,000 for the quarter ended June 30, 2026, an increase of 1% from net earnings of $65,548,000 for the quarter ended March 31, 2026 and an increase of 7% from net earnings of $61,952,000 for the quarter ended June 30, 2025. After the effect of dividends on preferred stock, net income available for common shareholders was $0.84 per diluted share for the quarter ended June 30, 2026, compared to $0.82 per diluted share for the quarter ended March 31, 2026, and $0.73 per diluted share for the quarter ended June 30, 2025, an $0.11 or 15% increase in fully diluted earnings per common share.

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

As of

(In thousands, except share and ratio data)

June 30,

2026

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

BALANCE SHEET

Cash

676,467

669,799

734,915

657,310

809,252

Loans receivable, net

20,017,876

19,966,983

19,848,156

20,088,618

20,277,164

Allowance for credit losses ("ACL")

233,831

224,450

221,039

221,220

219,268

Available-for-sale securities, at fair value

4,190,263

4,352,258

4,142,285

3,533,201

3,387,497

Held-to-maturity securities, at amortized cost

858,261

745,727

764,794

645,802

512,854

Total investments

5,048,524

5,097,985

4,907,079

4,179,003

3,900,351

Total assets

27,596,970

27,568,785

27,285,744

26,699,699

26,731,915

Transaction deposits

12,745,791

12,746,921

12,865,974

12,306,532

11,969,124

Time deposits

8,186,284

8,377,230

8,550,996

9,131,104

9,417,447

Total deposits

20,932,075

21,124,151

21,416,970

21,437,636

21,386,571

Borrowings and junior subordinated debentures

3,315,697

3,114,548

2,488,411

1,817,249

1,991,087

Total shareholders' equity

3,022,569

2,981,283

3,029,407

3,039,575

3,014,325

Loans to customer deposits

95.63

94.52

92.67

93.71

94.81

PROFITABILITY

Net income

66,130

65,548

64,196

60,597

61,952

Net income to common shareholders

62,474

61,892

60,540

56,941

58,296

Diluted earnings per common share

0.84

0.82

0.79

0.72

0.73

Return on tangible common equity 1

11.04

10.82

10.57

9.99

10.20

Return on tangible assets 1

0.97

0.93

0.94

Net interest margin

2.81

2.70

2.71

2.69

Efficiency ratio

53.69

55.66

55.25

56.82

56.01

FINANCIAL HIGHLIGHTS

Common shareholders' equity per share

36.81

36.30

35.70

35.04

34.30

Tangible common shareholders' equity per share 1

30.82

30.27

29.91

29.38

28.69

Shareholders' equity to total assets

10.95

10.81

11.10

11.38

11.28

Tangible shareholders' equity to tangible assets 1

9.50

9.35

9.64

9.89

9.78

Common shares outstanding

73,954,133

73,855,919

76,448,351

78,186,520

79,130,276

Preferred shares outstanding

300,000

CREDIT QUALITY

ACL to gross loans

1.08

1.05

1.04

1.03

Non-accrual loans to net loans

0.64

0.62

0.96

0.64

0.41

Delinquencies to net loans

0.75

0.78

1.07

0.60

0.26

Non-performing assets to total assets

0.49

0.48

0.75

0.54

0.36

Total criticized loans to net loans

4.93

4.24

4.60

4.39

4.07

Total adversely classified loans to net loans

2.59

2.60

2.94

3.16

3.54

1Metric is a non-GAAP Financial Measure. See page 10 for additional information on our use of non-GAAP Financial Measures.

Balance Sheet Total assets increased to $27.6 billion as of June 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 $870 million, or 20.8% in the nine months ended June 30, 2026, a result of $1.4 billion of purchases, primarily discount-priced 30-year mortgage backed securities at an expected yield to maturity of 5%. Net loans decreased $71 million to $20.0 billion and cash increased $19 million, or 2.9% during same period.

Customer deposits totaled $20.9 billion as of June 30, 2026, compared to $21.4 billion at September 30, 2025. The effective weighted average interest rate, including non-interest-bearing deposits, was 2.39% as of June 30, 2026, compared to 2.69% at September 30, 2025. Transaction accounts increased by $439 million or 3.6% during the nine months ended June 30, 2026, while time deposits decreased $945 million or 10.3%. As of June 30, 2026, 60.9% of the Company’s deposits were transaction accounts, an increase from 57.4% at September 30, 2025. Core deposits, defined as all transaction accounts and time deposits less than $250,000, totaled 80.6% of deposits at June 30, 2026, up from 77.9% on September 30, 2025. Deposits that are uninsured or not collateralized were 25.4% of total deposits as of June 30, 2026, an increase from 24.7% as of September 30, 2025.

Borrowings totaled $3.3 billion as of June 30, 2026, up from $1.8 billion at September 30, 2025. The effective weighted average interest rate of borrowings was 3.08% as of June 30, 2026, compared to 2.50% at September 30, 2025.

Loan originations for active loan types totaled $1.5 billion for both the second and third fiscal quarters of 2026. Offsetting loan originations for these loan types in each of these quarters were loan repayments of $1.0 billion and $0.9 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 $299 million during the quarter. Commercial loans represented 96% of all loan originations during the third fiscal quarter of 2026 and consumer loans accounted for the remaining 4%. The period end interest yield on the loan portfolio was 5.33% as of June 30, 2026, a decrease from 5.38% at September 30, 2025.

Tangible common equity per share is a key metric for our management team. For the nine months ended June 30, 2026, tangible book value per share grew to $30.82 at June 30, 2026 from $29.38 as of September 30, 2025. This metric is a non-GAAP Financial Measure. See page 10 for additional information on our use of non-GAAP Financial Measures. During the quarter, the Company repurchased 8,806 shares of common stock at a weighted average price of $36.20 as a result of option exercise activity. Our share repurchase plan currently has a remaining authorization of 8.0 million shares which, depending on share price, may provide a compelling investment alternative.

Return on common shareholders' equity for the quarter ended June 30, 2026 was 9.23% compared to 9.05% for the quarter ended March 31, 2026. Adjusted for certain non-operating items, return on equity for the quarter was 8.80% compared to adjusted return on equity of 9.12% the prior quarter. Return on assets for the quarter ended June 30, 2026 was 0.96%, unchanged from the previous quarter. Adjusted for certain non-operating items, return on assets for the quarter was 0.92% compared to adjusted return on assets of 0.97% the prior quarter. For a reconciliation of these adjusted ratios, see the Non-GAAP Financial Measures section below.

WaFd’s capital ratios are expected to be in line with the March 2026 results which showed the total risk-based capital ratio at 14.4% and common equity tier 1 risk-based capital ratio at 11.4%. All ratios remain above current “well-capitalized” regulatory minimums. In March 2026, federal banking regulators re-proposed revisions to the Basel III Endgame capital framework, which remains subject to finalization following the close of the industry comment period in June 2026. Based on management’s review and analysis, using March 31, 2026 data, WaFd estimates that opting into the revised framework, once finalized, could reduce risk-weighted assets by approximately 12.5%, representing an estimated $317 million of total risk-based capital relief. We will continue to evaluate this opportunity as the rule is finalized.

Credit Quality Considering the shifting economic and monetary environment, further impacted by recent global developments, credit quality continues to be monitored closely. As of June 30, 2026, non-performing assets increased to $136 million, or 0.49% of total assets, from $132 million, or 0.48%, at March 31, 2026 and decreased from $143 million, or 0.54%, at September 30, 2025. The decrease compared to September is the result of non-accrual loans decreasing by $1.1 million, or 1%, since September 30, 2025 combined with decreases in real estate owned ("REO") of $2.9 million and other property owned of $3.3 million during the same time frame. Delinquent loans increased to 0.75% of total loans at June 30, 2026, compared to 0.60% at September 30, 2025 but decreased compared to 0.78% at March 31, 2026.

The allowance for credit losses (including the reserve for unfunded commitments) totaled $234 million as of June 30, 2026, and was 1.08% of gross loans outstanding, as compared to $221 million, or 1.04% of gross loans outstanding, as of September 30, 2025. This increase was the result in growth in the active loan portfolio, specifically C&I and Construction loans, in addition to concerns related to possible losses on adversely classified loans. Net charge-offs were $1.6 million for the third fiscal quarter of 2026, compared to $0.6 million for the prior quarter.

Profitability Net interest income was $181 million for the third fiscal quarter of 2026, an increase of $3.8 million or 2% from the prior quarter. The increase in net interest income was primarily due to a basis point increase in the rate earned on interest earning assets combined with a basis point decrease in the rate paid on interest bearing liabilities. As a result of these minor changes, the net interest margin held steady at 2.81% for the third fiscal quarter of 2026.

Total non-interest income was $24.2 million for the third fiscal quarter of 2026 compared to $19.8 million the prior quarter. The increase compared to the prior quarter was primarily due to $3.2 million of gains recognized on the sale of bank real estate combined with lower losses recognized on equity method investments.

Total non-interest expense was $110.3 million in the third fiscal quarter of 2026, an increase of $0.5 million, or 0.4%, from the prior quarter. The increase is the result of small increases in compensation, FDIC insurance and technology expenses.

The Company recorded an $11.0 million provision for credit losses in the third fiscal quarter of 2026 compared to a provision of $4.0 million the prior quarter. The provision for loan losses in the quarter ended June 30, 2026 was the result of growth in the active loan portfolio, specifically C&I and Construction loans, in addition to concerns related to possible losses on adversely classified loans. $1.6 million of net charge-offs were taken during the quarter.

Income tax expense totaled $18.2 million in the third fiscal quarter of 2026, as compared to $18.3 million for the prior quarter. The effective tax rate for the quarter ended June 30, 2026 was 21.6% compared to 21.8% for the quarter ended March 31, 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 7:00 am Pacific Time on Friday July 17, 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/BI9ff2eae6a533436b9e0084f615323197). 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)

June 30,

2026

September 30,

2025

(In thousands, except share and ratio data)

ASSETS

Cash and cash equivalents

676,467

657,310

Available-for-sale securities, at fair value

4,190,263

3,533,201

Held-to-maturity securities, at amortized cost

858,261

645,802

Loans receivable, net of allowance for loan losses of $214,831 and $199,720

20,017,876

20,088,618

Interest receivable

99,120

98,589

Premises and equipment, net

291,606

261,271

Real estate owned

8,179

11,084

FHLB stock

155,392

88,068

Bank owned life insurance

281,131

275,159

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

443,670

442,093

Federal and state income tax assets

110,616

112,784

Other assets

464,389

485,720

27,596,970

26,699,699

LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities

Transaction deposits

12,745,791

12,306,532

Time deposits

8,186,284

9,131,104

Total customer deposits

20,932,075

21,437,636

Borrowings

3,263,359

1,765,604

Junior subordinated debentures

52,338

51,645

Advance payments by borrowers for taxes and insurance

36,094

59,845

Federal and state income tax liabilities

158

—

Accrued expenses and other liabilities

290,377

345,394

24,574,401

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; 154,862,525 and 154,408,001 shares issued; 73,954,133 and 78,186,520 shares outstanding

154,863

154,408

Additional paid-in capital

2,175,267

2,163,276

Accumulated other comprehensive income (loss), net of taxes

48,087

56,950

Treasury stock, at cost 80,908,392 and 76,221,481 shares

(1,886,075

)

(1,740,761

)

Retained earnings

2,230,427

2,105,702

3,022,569

3,039,575

27,596,970

26,699,699

Yield and margin as of period end

Loans receivable 1

5.33

5.38

Mortgage-backed securities

4.51

4.44

Combined cash, investments and FHLB stock

4.22

4.96

Interest-earning assets

5.12

5.23

Interest-bearing customer accounts

2.71

2.95

Borrowings 1

3.08

2.50

Interest-bearing liabilities

2.77

2.91

Net interest spread

2.35

2.32

Net interest margin

2.82

1Accretion 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 June 30,

Nine Months Ended June 30,

2026

2025

2026

2025

(In thousands, except share and ratio data)

INTEREST INCOME

Loans receivable

267,243

279,476

793,598

848,150

Mortgage-backed securities

46,569

27,855

129,812

70,118

Investment securities and cash equivalents

18,313

24,383

55,945

94,647

332,125

331,714

979,355

1,012,915

INTEREST EXPENSE

Customer accounts

123,079

146,735

385,292

460,833

Borrowings and junior subordinated debentures

27,708

16,991

64,044

67,753

150,787

163,726

449,336

528,586

Net interest income

181,338

167,988

530,019

484,329

Provision (release) for credit losses

11,000

2,000

18,500

4,750

Net interest income after provision (release)

170,338

165,988

511,519

479,579

NON-INTEREST INCOME

Gain (loss) on sale of investment securities

112

—

112

Gain (loss) on termination of hedging derivatives

(12

)

438

126

Loan fee income

2,181

1,650

5,751

4,807

Deposit fee income

8,142

7,588

23,674

21,691

Other income

13,755

8,979

34,271

26,212

Total non-interest income

24,178

18,273

64,246

52,856

NON-INTEREST EXPENSE

Compensation and benefits

57,399

53,481

168,709

166,118

Occupancy

11,842

11,755

34,723

34,042

FDIC insurance premiums

5,542

5,150

15,992

15,800

Product delivery

7,067

6,621

20,751

19,313

Information technology

16,157

15,022

46,460

43,695

Other expense

12,327

12,298

39,277

41,502

Total non-interest expense

110,334

104,327

325,912

320,470

Gain (loss) on real estate owned, net

167

(176

)

603

Income before income taxes

84,349

79,758

250,456

212,019

Income tax provision

18,219

17,806

54,582

46,548

Net income

66,130

61,952

195,874

165,471

Dividends on preferred stock

3,656

10,969

10,968

Net income available to common shareholders

62,474

58,296

184,905

154,503

PER SHARE DATA

Basic earnings per common share

0.85

0.73

2.45

1.91

Diluted earnings per common share

0.84

0.73

2.45

1.91

Cash dividends per common share

0.27

0.81

0.80

Basic weighted average shares outstanding

73,901,725

79,888,520

75,458,381

80,748,838

Diluted weighted average shares outstanding

74,046,838

79,907,672

75,553,798

80,821,807

PERFORMANCE RATIOS

Return on average assets

0.96

0.92

0.96

0.81

Return on average common equity

9.23

8.54

9.05

7.55

WAFD, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three Months Ended

June 30,

2026

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

(In thousands, except share and ratio data)

INTEREST INCOME

Loans receivable

267,243

262,148

264,207

271,787

279,476

Mortgage-backed securities

46,569

44,341

38,902

32,953

27,855

Investment securities and cash equivalents

18,313

18,245

19,387

21,794

24,383

332,125

324,734

322,496

326,534

331,714

INTEREST EXPENSE

Customer accounts

123,079

125,999

136,214

143,874

146,735

Borrowings and junior subordinated debentures

27,708

21,165

15,171

12,754

16,991

150,787

147,164

151,385

156,628

163,726

Net interest income

181,338

177,570

171,111

169,906

167,988

Provision for credit losses

11,000

4,000

3,500

3,000

2,000

Net interest income after provision

170,338

173,570

167,611

166,906

165,988

NON-INTEREST INCOME

Gain (loss) on sale of investment securities

112

—

Gain (loss) on termination of hedging derivatives

(12

)

426

Loan fee income

2,181

2,216

1,354

2,081

1,650

Deposit fee income

8,142

7,674

7,858

7,959

7,588

Other income

13,755

9,497

11,019

8,319

8,979

Total non-interest income

24,178

19,813

20,255

18,391

18,273

NON-INTEREST EXPENSE

Compensation and benefits

57,399

57,120

54,190

56,028

53,481

Occupancy

11,842

11,711

11,170

10,895

11,755

FDIC insurance premiums

5,542

5,050

5,400

4,400

5,150

Product delivery

7,067

7,110

6,574

6,558

6,621

Information technology

16,157

15,919

14,384

16,406

15,022

Other expense

12,327

12,947

14,003

12,706

12,298

Total non-interest expense

110,334

109,857

105,721

106,993

104,327

Gain (loss) on real estate owned, net

167

280

156

(681

)

(176

)

Income before income taxes

84,349

83,806

82,301

77,623

79,758

Income tax provision

18,219

18,258

18,105

17,026

17,806

Net income

66,130

65,548

64,196

60,597

61,952

Dividends on preferred stock

3,656

Net income available to common shareholders

62,474

61,892

60,540

56,941

58,296

WAFD, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three Months Ended

June 30,

2026

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

(In thousands, except share and ratio data)

PER SHARE DATA

Basic earnings per common share

0.85

0.82

0.79

0.73

Diluted earnings per common share

0.84

0.82

0.79

0.72

0.73

Cash dividends per common share

0.27

Basic weighted average shares outstanding

73,901,725

75,487,399

76,969,729

78,509,472

79,888,520

Diluted weighted average shares outstanding

74,046,838

75,574,228

77,015,554

78,573,457

79,907,672

PERFORMANCE RATIOS

Return on average assets

0.96

0.91

0.92

Return on average common equity

9.23

9.05

8.86

8.36

8.54

Net interest margin

2.81

2.70

2.71

2.69

Efficiency ratio

53.69

55.66

55.25

56.82

56.01

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 that 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

June 30,

2026

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

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

Shareholders' equity - GAAP

3,022,569

2,981,283

3,029,407

3,039,575

3,014,325

Less intangible assets - GAAP

443,670

445,511

443,085

442,093

444,291

Tangible shareholders' equity

2,578,899

2,535,772

2,586,322

2,597,482

2,570,034

Less preferred stock - GAAP

300,000

Tangible common shareholders' equity

2,278,899

2,235,772

2,286,322

2,297,482

2,270,034

Total assets - GAAP

27,596,970

27,568,785

27,285,744

26,699,699

26,731,915

Less intangible assets - GAAP

443,670

445,511

443,085

442,093

444,291

Tangible assets

27,153,300

27,123,274

26,842,659

26,257,606

26,287,624

Tangible Metrics

Common shares outstanding - GAAP

73,954,133

73,855,919

76,448,351

78,186,520

79,130,276

Tangible common equity per share

30.82

30.27

29.91

29.38

28.69

Tangible equity to tangible assets

9.50

9.35

9.64

9.89

9.78

WAFD, INC. AND SUBSIDIARIES

NON-GAAP MEASURES

(UNAUDITED)

Three Months Ended

Average Tangible Measures

June 30,

2026

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

(Unaudited - In thousands, except for ratio data)

Average shareholders' equity - GAAP

3,008,370

3,034,123

3,033,933

3,023,098

3,030,745

Less average preferred stock - GAAP

300,000

Less average intangible assets - GAAP

444,665

445,155

442,226

443,382

445,733

Average tangible common equity

2,263,705

2,288,968

2,291,707

2,279,716

2,285,012

Average Assets - GAAP

27,612,152

27,350,614

26,852,389

26,540,782

26,813,500

Less average intangible assets - GAAP

444,665

445,155

442,226

443,382

445,733

Average tangible assets

27,167,487

26,905,459

26,410,163

26,097,400

26,367,767

Average Tangible Metrics

Net income - GAAP

66,130

65,548

64,196

60,597

61,952

Net income available to common shareholders - GAAP

62,474

61,892

60,540

56,941

58,296

Return on tangible common equity

11.04

10.82

10.57

9.99

10.20

Return on tangible assets

0.97

0.93

0.94

WAFD, INC. AND SUBSIDIARIES

NON-GAAP MEASURES

(UNAUDITED)

Three Months Ended

Net Income Adjusted for Non-Operating Items

June 30,

2026

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

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

Non-interest income

(Gain)Loss on sale of branch property

(3,205

)

(3,214

)

467

Distribution received on LBC equity method investment

(225

)

(225

)

(237

)

(251

)

(255

)

(Gain)Loss on WaFd Bank equity method investment

(48

)

1,072

408

(815

)

304

Total non-interest income

(3,478

)

874

(3,043

)

(599

)

Net Income - GAAP

66,130

65,548

64,196

60,597

61,952

Non-interest income adjustments

(3,478

)

874

(3,043

)

(599

)

REO adjustments

(167

)

(280

)

(156

)

681

176

Income tax adjustment

787

(129

)

704

(18

)

(51

)

Net Income - non-GAAP

63,272

66,013

61,701

60,661

62,130

Dividend on preferred stock

3,656

Net Income available to common shareholders - non-GAAP

59,616

62,357

58,045

57,005

58,474

Basic weighted average number

73,901,725

75,487,399

76,969,729

78,509,472

79,888,520

Diluted weighted average

74,046,838

75,574,228

77,015,554

78,573,457

79,907,672

Basic EPS - non-GAAP

0.81

0.83

0.75

0.73

Diluted EPS - non-GAAP

0.81

0.83

0.75

0.73

WAFD, INC. AND SUBSIDIARIES

NON-GAAP MEASURES

(UNAUDITED)

Three Months Ended

Adjusted Efficiency Ratio

June 30,

2026

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

(Unaudited - In thousands, except for ratio data)

Efficiency ratio - GAAP

53.7

55.7

55.3

56.8

56.0

Net interest income - GAAP

$ 181,338

$ 177,570

$ 171,111

$ 169,906

$ 167,988

Total interest income adjustments

—

Net interest income - non-GAAP

$ 181,338

$ 177,570

$ 171,111

$ 169,906

$ 167,988

Non-interest expense - GAAP

$ 110,334

$ 109,857

$ 105,721

$ 106,993

$ 104,327

Less non-operating expenses

—

Non-interest Expenses - non-GAAP

$ 110,334

$ 109,857

$ 105,721

$ 106,993

$ 104,327

Non-interest income - GAAP

$ 24,178

$ 19,813

$ 20,255

$ 18,391

$ 18,273

Total other income

(3,478)

874

(3,043)

(599)

Non-interest income - non-GAAP

$ 20,700

$ 20,687

$ 17,212

$ 17,792

$ 18,326

Net Interest Income - non-GAAP

$ 181,338

$ 177,570

$ 171,111

$ 169,906

$ 167,988

Non-interest income - non-GAAP

20,700

20,687

17,212

17,792

18,326

Total Income - non-GAAP

$ 202,038

$ 198,257

$ 188,323

$ 187,698

$ 186,314

Adjusted Efficiency Ratio

54.6

55.4

56.1

57.0

56.0

WAFD, INC. AND SUBSIDIARIES

NON-GAAP MEASURES

(UNAUDITED)

Three Months Ended

Adjusted ROA and ROE

June 30,

2026

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

(Unaudited - In thousands, except for ratio data)

Reported:

Net Income - GAAP

66,130

65,548

64,196

60,597

61,952

Net income available to common shareholders - GAAP

62,474

61,892

60,540

56,941

58,296

Average Assets

27,612,152

27,350,614

26,852,389

26,540,782

26,813,500

Return on Assets

0.96

0.91

0.92

Average Common Equity

2,708,370

2,734,123

2,733,933

2,723,098

2,730,745

Return on Common Equity

9.23

9.05

8.86

8.36

8.54

Adjusted:

Net Income - non-GAAP

63,272

66,013

61,701

60,661

62,130

Net income available to common shareholders - non-GAAP

59,616

62,357

58,045

57,005

58,474

Average Assets

27,612,152

27,350,614

26,852,389

26,540,782

26,813,500

Adjusted Return on Assets

0.92

0.97

0.92

0.91

0.93

Average Common Equity

2,708,370

2,734,123

2,733,933

2,723,098

2,730,745

Adjusted Return on Common Equity

8.80

9.12

8.49

8.37

8.57

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.