WaFd Announces Quarterly Earnings Per Share Of $0.79

WaFd, Inc. (Nasdaq: WAFD):

Q1 Highlights

$64 Million

 

$0.79

 

0.96%

 

10.6%

Net Income

 

Diluted Earnings
per Common Share

 

Return on Average
Assets

 

Return on Tangible
Common Equity¹

"We are off to a solid start in fiscal 2026, with a 10% increase in earnings per share on a linked quarter basis and a 46% increase compared to the same period last year. Earnings were driven by a steady margin, increases in other income and lower expenses. Increases in delinquent and non-performing loans have our full attention, yet current levels reflect normal stress in a diversified portfolio. We believe we are well reserved for any losses that may materialize. Loan demand has been modest, yet I am encouraged by recent client inquiries and believe we are poised for stronger loan production in the coming months. In the meantime, we have taken decisive action by repurchasing shares at attractive valuations—0.99 times tangible book value—which has contributed to our increased earnings per share and a 7.1% annualized growth in tangible book value per share."

Brent Beardall President and CEO of WaFd Bank

Net Interest Income and NIM

$171 million net interest income for the quarter compared to $170 million in Q4 fiscal 2025. Net interest margin at 2.70% for the quarter compared to 2.71% for Q4.

Credit Quality

Non-performing assets up $60 million at 0.75% of total assets compared to 0.54% for Q4 2025. Delinquencies up $92 million to 1.07% of total loans compared to 0.60% for Q4 2025.

Non-Interest Income and Expense	Non-interest income up $2 million and non-interest expense down $1 million compared to prior quarter. Efficiency ratio decreased to 55.25% compared to 56.82% in the prior quarter as a result of the increased net interest income and lower expenses.		Shareholder Returns and Stock Activity	On December 5, 2025, the Company paid a cash dividend of $0.27 per share, 171st consecutive quarterly dividend paid. 1,950,013 shares were repurchased during the quarter at a weighted average price of $29.75 per share.

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 $64,196,000 for the quarter ended December 31, 2025, an increase of 6% from net earnings of $60,597,000 for the quarter ended September 30, 2025 and an increase of 36% from net earnings of $47,267,000 for the quarter ended December 31, 2024. After the effect of dividends on preferred stock, net income available for common shareholders was $0.79 per diluted share for the quarter ended December 31, 2025, compared to $0.72 per diluted share for the quarter ended September 30, 2025, and $0.54 per diluted share for the quarter ended December 31, 2024, a $0.25 or 46% 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)	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
BALANCE SHEET
Cash	$	734,915			$	657,310			$	809,252			$	1,231,461			$	1,507,735
Loans receivable, net		19,848,156				20,088,618				20,277,164				20,920,001				21,060,501
Allowance for credit losses ("ACL")		221,039				221,220				219,268				222,709				225,022
Available-for-sale securities, at fair value		4,142,285				3,533,201				3,387,497				3,142,763				2,743,731
Held-to-maturity securities, at amortized cost		764,794				645,802				512,854				526,502				537,348
Total investments		4,907,079				4,179,003				3,900,351				3,669,265				3,281,079
Total assets		27,285,744				26,699,699				26,731,915				27,644,637				27,684,454
Transaction deposits		12,865,974				12,306,532				11,969,124				11,853,984				11,853,859
Time deposits		8,550,996				9,131,104				9,417,447				9,573,442				9,584,918
Total deposits		21,416,970				21,437,636				21,386,571				21,427,426				21,438,777
Borrowings and junior subordinated debentures		2,488,411				1,817,249				1,991,087				2,814,938				2,914,627
Total shareholders' equity		3,029,407				3,039,575				3,014,325				3,032,620				3,021,636
Loans to customer deposits		92.67	%			93.71	%			94.81	%			97.63	%			98.24	%
PROFITABILITY
Net income	$	64,196			$	60,597			$	61,952			$	56,252			$	47,267
Net income to common shareholders		60,540				56,941				58,296				52,596				43,611
Earnings per common share		0.79				0.72				0.73				0.65				0.54
Return on tangible common equity1		10.57	%			9.99	%			10.20	%			9.18	%			7.69	%
Return on tangible assets1		0.97	%			0.93	%			0.94	%			0.84	%			0.70	%
Net interest margin		2.70	%			2.71	%			2.69	%			2.55	%			2.39	%
Efficiency ratio		55.25	%			56.82	%			56.01	%			58.31	%			65.04	%
FINANCIAL HIGHLIGHTS
Common shareholders' equity per share	$	35.70			$	35.04			$	34.30			$	33.84			$	33.45
Tangible common shareholders' equity per share1		29.91				29.38				28.69				28.31				27.93
Shareholders' equity to total assets		11.10	%			11.38	%			11.28	%			10.97	%			10.91	%
Tangible shareholders' equity to tangible assets1		9.64	%			9.89	%			9.78	%			9.51	%			9.45	%
Common shares outstanding		76,448,351				78,186,520				79,130,276				80,758,674				81,373,760
Preferred shares outstanding		300,000				300,000				300,000				300,000				300,000
CREDIT QUALITY
ACL to gross loans		1.05	%			1.04	%			1.03	%			1.01	%			1.00	%
Non-accrual loans to net loans		0.96	%			0.64	%			0.41	%			0.29	%			0.34	%
Delinquencies to net loans		1.07	%			0.60	%			0.26	%			0.27	%			0.30	%
Non-performing assets to total assets		0.75	%			0.54	%			0.36	%			0.26	%			0.29	%
Total criticized loans to net loans		4.60	%			4.39	%			4.07	%			3.32	%			2.54	%
Total adversely classified loans to net loans		2.94	%			3.16	%			3.54	%			2.53	%			1.97	%

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 $27.3 billion as of December 31, 2025, compared to $26.7 billion at September 30, 2025, primarily due to the purchase of investment securities during the period. Investment securities increased by $728 million, or 17.4% in the three months ended December 31, 2025, a result of $866 million of purchases, primarily discount-priced agency mortgage backed securities at an effective yield of 4.93%. Net loans decreased $0.2 billion to $19.8 billion and cash increased $0.1 billion, or 11.8%.

Customer deposits totaled $21.4 billion as of December 31, 2025, largely unchanged from September 30, 2025. The effective weighted average interest rate, including non-interest-bearing deposits, was 2.56% as of December 31, 2025, compared to 2.69% at September 30, 2025. Transaction accounts increased by $559 million or 4.5% during the period, while time deposits decreased $580 million or 6.4%. As of December 31, 2025, 60.1% 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 79.7% of deposits at December 31, 2025, up from 77.9% on September 30, 2025. Deposits that are uninsured or not collateralized were 26.2% of total deposits as of December 31, 2025, an increase from 24.7% as of September 30, 2025.

Borrowings totaled $2.4 billion as of December 31, 2025, up from $1.8 billion at September 30, 2025. The effective weighted average interest rate of borrowings was 2.74% as of December 31, 2025, compared to 2.50% at September 30, 2025.

Loan originations for active loan types totaled $1.1 billion for the first fiscal quarter of 2026, compared to $1.4 billion of originations in the prior quarter. Offsetting loan originations for these loan types in each of these quarters were loan repayments of $1.0 billion and $1.2 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 $0.3 billion during the quarter. Commercial loans represented 94% of all loan originations during the first fiscal quarter of 2026 and consumer loans accounted for the remaining 6%. The period end interest yield on the loan portfolio was 5.24% as of December 31, 2025, a decrease from 5.38% as of September 30, 2025.

Tangible common equity per share is a key metric for our management team. For the three months ended December 31, 2025, tangible book value per share grew from $29.38 as of September 30, 2025 to $29.91. 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 1,950,013 shares of common stock at a weighted average price of $29.75. Our share repurchase plan currently has a remaining authorization of 6.3 million shares which, depending on share price, provides a compelling investment alternative.

Credit Quality Credit quality continues to be closely monitored with the shifting economic and monetary environment. As of December 31, 2025, non-performing assets increased to $203 million, or 0.75% of total assets, from $143 million, or 0.54%, at September 30, 2025. The change is due to non-accrual loans increasing by $62.7 million, or 49%, since September 30, 2025 offset by a decrease in real estate owned ("REO") of $2.3 million during the same time frame. Delinquent loans increased to 1.07% of total loans at December 31, 2025, compared to 0.60% at September 30, 2025. The current quarter increase in non-performing assets is primarily the result of two commercial relationships over 90 days past due. Although appropriately non-accrual based on policy, it was determined no charge-offs were needed for these credits and management is actively collaborating with the borrowers.

The allowance for credit losses (including the reserve for unfunded commitments) totaled $221 million as of December 31, 2025, and was 1.05% of gross loans outstanding, as compared to $221 million, or 1.04% of gross loans outstanding, as of September 30, 2025. Net charge-offs were $3.7 million for the first fiscal quarter of 2026, compared to $1.0 million for the prior quarter.

Profitability Net interest income was $171 million for the first fiscal quarter of 2026, an increase of $1.2 million or 1% from the prior quarter. The increase in net interest income was primarily due to a 14 basis point decrease in the rate paid on interest bearing liabilities offsetting the effect of a 12 basis point decrease in the rate earned on interest earning assets. Net interest margin was 2.70% in the first fiscal quarter of 2026 compared to 2.71% for the quarter ended September 30, 2025.

Total non-interest income was $20.3 million for the first fiscal quarter of 2026 compared to $18.4 million the prior quarter. The increase compared to the prior quarter was primarily due to a $3.2 million gain recorded on the sale of a branch property. This gain was partially offset by losses taken on certain equity method investments in the quarter which realized gains in the prior quarter.

Total non-interest expense was $105.7 million in the first fiscal quarter of 2026, a slight decrease of $1.3 million, or 1.2%, from the prior quarter. The decrease is the result of reduced Compensation and Technology expenses offset by increased other expense. Decreased expenses combined with increased income resulted in a decrease in the Company’s efficiency ratio in the first fiscal quarter of 2026 to 55.3%, compared to 56.8% in the prior quarter.

The Company recorded a $3.5 million provision for credit losses in the first fiscal quarter of 2026 compared to a provision of $3.0 million the prior quarter. The provision for loan losses in the quarter ended December 31, 2025 was the net result of decreased loan balances, mixed credit metrics, including the increasing trends in negative migration of criticized and nonperforming loans and $3.7 million of net charge-offs taken during the quarter.

Return on common shareholders' equity for the quarter ended December 31, 2025 was 8.86% compared to 8.36% for the quarter ended September 30, 2025. Adjusted for certain non-operating items, return on equity for the quarter was 8.49% compared to adjusted return on equity of 8.37% the prior quarter. Return on assets for the quarter ended December 31, 2025 was 0.96% compared to 0.91% for the previous quarter. Adjusted for certain non-operating items, return on assets for the quarter is 0.92% compared to adjusted return on assets of 0.91% the prior quarter. For a reconciliation of these adjusted ratios, see the Non-GAAP Financial Measures section below.

Income tax expense totaled $18.1 million the first fiscal quarter of 2026, as compared to $17.0 million for the prior quarter. The effective tax rate for the quarter ended December 31, 2025 was 22.00% compared to 21.93% for the quarter ended September 30, 2025. 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 208 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 Pacific Time on Friday January 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/BI3c78563caa08404080a1 ...). 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)
	December 31, 2025					September 30, 2025
	(In thousands, except share and ratio data)
ASSETS
Cash and cash equivalents		$	734,915				$	657,310
Available-for-sale securities, at fair value			4,142,285					3,533,201
Held-to-maturity securities, at amortized cost			764,794					645,802
Loans receivable, net of allowance for loan losses of $199,539 and $199,720			19,848,156					20,088,618
Interest receivable			97,650					98,589
Premises and equipment, net			270,552					261,271
Real estate owned			8,738					11,084
FHLB stock			118,218					88,068
Bank owned life insurance			277,121					275,159
Intangible assets, including goodwill of $416,247 and $414,722			443,085					442,093
Federal and state income tax assets			102,377					112,784
Other assets			477,853					485,720
		$	27,285,744				$	26,699,699
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Transaction deposits		$	12,865,974				$	12,306,532
Time deposits			8,550,996					9,131,104
Total customer deposits			21,416,970					21,437,636
Borrowings			2,436,532					1,765,604
Junior subordinated debentures			51,879					51,645
Advance payments by borrowers for taxes and insurance			20,688					59,845
Federal and state income tax liabilities			5,124					—
Accrued expenses and other liabilities			325,144					345,394
			24,256,337					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					300,000
Common stock, $1.00 par value, 300,000,000 shares authorized; 154,616,464 and 154,408,001 shares issued; 76,448,351 and 78,186,520 shares outstanding			154,616					154,408
Additional paid-in capital			2,165,709					2,163,276
Accumulated other comprehensive income (loss), net of taxes			61,904					56,950
Treasury stock, at cost 78,168,113 and 76,221,481 shares			(1,798,702	)				(1,740,761	)
Retained earnings			2,145,880					2,105,702
			3,029,407					3,039,575
		$	27,285,744				$	26,699,699

Yield and margin as of period end
Loans receivable1			5.24	%				5.38	%
Mortgage-backed securities			4.49					4.44
Combined cash, investments and FHLB stock			4.24					4.96
Interest-earning assets			5.05					5.23
Interest-bearing customer accounts			2.76					2.95
Borrowings1			2.74					2.50
Interest-bearing liabilities			2.76					2.91
Net interest spread			2.29					2.32
Net interest margin			2.77					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 December 31,
	2025					2024
	(In thousands, except share and ratio data)
INTEREST INCOME
Loans receivable		$	264,207				$	286,597
Mortgage-backed securities			38,902					18,337
Investment securities and cash equivalents			19,387					40,183
			322,496					345,117
INTEREST EXPENSE
Customer accounts			136,214					162,150
Borrowings and junior subordinated debentures			15,171					27,536
			151,385					189,686
Net interest income			171,111					155,431
Provision (release) for credit losses			3,500					—
Net interest income after provision (release)			167,611					155,431
NON-INTEREST INCOME
Gain (loss) on sale of investment securities			—					20
Gain (loss) on termination of hedging derivatives			24					5
Loan fee income			1,354					1,345
Deposit fee income			7,858					7,046
Other income			11,019					7,286
Total non-interest income			20,255					15,702
NON-INTEREST EXPENSE
Compensation and benefits			54,190					59,927
Occupancy			11,170					10,788
FDIC insurance premiums			5,400					4,850
Product delivery			6,574					5,785
Information technology			14,384					14,192
Other expense			14,003					15,769
Total non-interest expense			105,721					111,311
Gain (loss) on real estate owned, net			156					429
Income before income taxes			82,301					60,251
Income tax provision			18,105					12,984
Net income			64,196					47,267
Dividends on preferred stock			3,656					3,656
Net income available to common shareholders		$	60,540				$	43,611

PER SHARE DATA
Basic earnings per common share		$	0.79				$	0.54
Diluted earnings per common share			0.79					0.54
Cash dividends per common share			0.27					0.26
Basic weighted average shares outstanding			76,969,729					81,294,227
Diluted weighted average shares outstanding			77,015,554					81,401,599
PERFORMANCE RATIOS
Return on average assets			0.96	%				0.69	%
Return on average common equity			8.86	%				6.42	%

WAFD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
	Three Months Ended
	December 31, 2025			September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
	(In thousands, except share and ratio data)
INTEREST INCOME
Loans receivable	$	264,207		$	271,787			$	279,476			$	282,077			$	286,597
Mortgage-backed securities		38,902			32,953				27,855				23,926				18,337
Investment securities and cash equivalents		19,387			21,794				24,383				30,081				40,183
		322,496			326,534				331,714				336,084				345,117
INTEREST EXPENSE
Customer accounts		136,214			143,874				146,735				151,948				162,150
Borrowings and junior subordinated debentures		15,171			12,754				16,991				23,226				27,536
		151,385			156,628				163,726				175,174				189,686
Net interest income		171,111			169,906				167,988				160,910				155,431
Provision for credit losses		3,500			3,000				2,000				2,750				—
Net interest income after provision		167,611			166,906				165,988				158,160				155,431
NON-INTEREST INCOME
Gain on sale of investment securities		—			—				—				—				20
Gain on termination of hedging derivatives		24			32				56				65				5
Loan fee income		1,354			2,081				1,650				1,812				1,345
Deposit fee income		7,858			7,959				7,588				7,057				7,046
Other income		11,019			8,319				8,979				9,947				7,286
Total non-interest income		20,255			18,391				18,273				18,881				15,702
NON-INTEREST EXPENSE
Compensation and benefits		54,190			56,028				53,481				52,710				59,927
Occupancy		11,170			10,895				11,755				11,499				10,788
FDIC insurance premiums		5,400			4,400				5,150				5,800				4,850
Product delivery		6,574			6,558				6,621				6,907				5,785
Information technology		14,384			16,406				15,022				14,481				14,192
Other expense		14,003			12,706				12,298				13,435				15,769
Total non-interest expense		105,721			106,993				104,327				104,832				111,311
Gain (loss) on real estate owned, net		156			(681	)			(176	)			(199	)			429
Income before income taxes		82,301			77,623				79,758				72,010				60,251
Income tax provision		18,105			17,026				17,806				15,758				12,984
Net income		64,196			60,597				61,952				56,252				47,267
Dividends on preferred stock		3,656			3,656				3,656				3,656				3,656
Net income available to common shareholders	$	60,540		$	56,941			$	58,296			$	52,596			$	43,611

WAFD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
	Three Months Ended
	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
	(In thousands, except share and ratio data)
PER SHARE DATA
Basic earnings per common share	$	0.79			$	0.73			$	0.73			$	0.65			$	0.54
Diluted earnings per common share		0.79				0.72				0.73				0.65				0.54
Cash dividends per common share		0.27				0.27				0.27				0.27				0.26
Basic weighted average shares outstanding		76,969,729				78,509,472				79,888,520				81,061,206				81,294,227
Diluted weighted average shares outstanding		77,015,554				78,573,457				79,907,672				81,105,536				81,401,599
PERFORMANCE RATIOS
Return on average assets		0.96	%			0.91	%			0.92	%			0.82	%			0.69	%
Return on average common equity		8.86				8.36				8.54				7.68				6.42
Net interest margin		2.70				2.71				2.69				2.55				2.39
Efficiency ratio		55.25				56.82				56.01				58.31				65.04

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	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
	(Unaudited - In thousands, except for share and ratio data)
Shareholders' equity - GAAP	$	3,029,407			$	3,039,575			$	3,014,325			$	3,032,620			$	3,021,636
Less intangible assets - GAAP		443,085				442,093				444,291				446,660				449,213
Tangible shareholders' equity	$	2,586,322			$	2,597,482			$	2,570,034			$	2,585,960			$	2,572,423
Less preferred stock - GAAP		300,000				300,000				300,000				300,000				300,000
Tangible common shareholders' equity	$	2,286,322			$	2,297,482			$	2,270,034			$	2,285,960			$	2,272,423
Total assets - GAAP	$	27,285,744			$	26,699,699			$	26,731,915			$	27,644,637			$	27,684,454
Less intangible assets - GAAP		443,085				442,093				444,291				446,660				449,213
Tangible assets	$	26,842,659			$	26,257,606			$	26,287,624			$	27,197,977			$	27,235,241
Tangible Metrics
Common shares outstanding - GAAP		76,448,351				78,186,520				79,130,276				80,758,674				81,373,760
Tangible common equity per share	$	29.91			$	29.38			$	28.69			$	28.31			$	27.93
Tangible equity to tangible assets		9.64	%			9.89	%			9.78	%			9.51	%			9.45	%

WAFD, INC. AND SUBSIDIARIES NON-GAAP MEASURES (UNAUDITED)
	Three Months Ended
Average Tangible Measures	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
	(Unaudited - In thousands, except for ratio data)
Average shareholders' equity - GAAP	$	3,033,933			$	3,023,098			$	3,030,745			$	3,039,021			$	3,015,197
Less average preferred stock - GAAP		300,000				300,000				300,000				300,000				300,000
Less average intangible assets - GAAP		442,226				443,382				445,733				448,272				447,754
Average tangible common equity	$	2,291,707			$	2,279,716			$	2,285,012			$	2,290,749			$	2,267,443
Average Assets - GAAP	$	26,852,389			$	26,540,782			$	26,813,500			$	27,371,320			$	27,504,576
Less average intangible assets - GAAP		442,226				443,382				445,733				448,272				447,754
Average tangible assets	$	26,410,163			$	26,097,400			$	26,367,767			$	26,923,048			$	27,056,822
Average Tangible Metrics
Net income - GAAP		64,196				60,597				61,952				56,252				47,267
Net income available to common shareholders' - GAAP		60,540				56,941				58,296				52,596				43,611
Return on tangible common equity		10.57	%			9.99	%			10.20	%			9.18	%			7.69	%
Return on tangible assets		0.97	%			0.93	%			0.94	%			0.84	%			0.70	%

WAFD, INC. AND SUBSIDIARIES NON-GAAP MEASURES (UNAUDITED)
	Three Months Ended
Net Income Adjusted for Acquisition Expenses and Other Non-Operating Items	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
	(Unaudited - In thousands, except for share and ratio data)
Interest income
LBC Hedge Valuation Adj	$	—			$	—			$	—			$	—			$	3,933
Non-interest income
(Gain)Loss on sale of branch property	$	(3,214	)		$	467			$	4			$	—			$	195
Distribution received on LBC equity method investment		(237	)			(251	)			(255	)			(257	)			(279	)
(Gain)Loss on WaFd Bank equity method investment		408				(815	)			304				(155	)			48
Total non-interest income	$	(3,043	)		$	(599	)		$	53			$	(412	)		$	(36	)
Non-interest expense
Acquisition-related expenses	$	—			$	—			$	—			$	—			$	239
Non-operating expenses:
Restructuring Charges		—				—				—				—				5,390
		—				—				—				—				5,390
Total non-interest expense	$	—			$	—			$	—			$	—			$	5,629
Net Income - GAAP	$	64,196			$	60,597			$	61,952			$	56,252			$	47,267
Interest income adjustments		—				—				—				—				3,933
Non-interest income adjustments		(3,043	)			(599	)			53				(412	)			(36	)
Non-interest expense adjustments		—				—				—				—				5,629
REO adjustments		(156	)			681				176				199				(429	)
Income tax adjustment		704				(18	)			(51	)			47				(1,960	)
Net Income - non-GAAP	$	61,701			$	60,661			$	62,130			$	56,086			$	54,404
Dividend on preferred stock		3,656				3,656				3,656				3,656				3,656
Net Income available to common shareholders' - non-GAAP	$	58,045			$	57,005			$	58,474			$	52,430			$	50,748
Basic weighted average number		76,969,729				78,509,472				79,888,520				81,061,206				81,294,227
Diluted weighted average		77,015,554				78,573,457				79,907,672				81,105,536				81,401,599
Basic EPS - non-GAAP	$	0.75			$	0.73			$	0.73			$	0.65			$	0.62
Diluted EPS - non-GAAP		0.75				0.73				0.73				0.65				0.62

WAFD, INC. AND SUBSIDIARIES NON-GAAP MEASURES (UNAUDITED)
	Three Months Ended
Adjusted Efficiency Ratio	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
	(Unaudited - In thousands, except for ratio data)
Efficiency ratio - GAAP		55.3	%			56.8	%			56.0	%			58.3	%			65.0	%
Net interest income - GAAP	$	171,111			$	169,906			$	167,988			$	160,910			$	155,431
Total interest income adjustments		—				—				—				—				3,933
Net interest income - non-GAAP	$	171,111			$	169,906			$	167,988			$	160,910			$	159,364
Non-interest expense - GAAP	$	105,721			$	106,993			$	104,327			$	104,832			$	111,311
Less merger related expenses		—				—				—				—				239
Less non-operating expenses		—				—				—				—				5,390
Non-interest Expenses - non-GAAP	$	105,721			$	106,993			$	104,327			$	104,832			$	105,682
Non-interest income - GAAP	$	20,255			$	18,391			$	18,273			$	18,881			$	15,702
Total other income		(3,043	)			(599	)			53				(412	)			(36	)
Non-interest income - non-GAAP	$	17,212			$	17,792			$	18,326			$	18,469			$	15,666
Net Interest Income - non-GAAP	$	171,111			$	169,906			$	167,988			$	160,910			$	159,364
Non-interest income - non-GAAP		17,212				17,792				18,326				18,469				15,666
Total Income - non-GAAP	$	188,323			$	187,698			$	186,314			$	179,379			$	175,030
Adjusted Efficiency Ratio		56.1	%			57.0	%			56.0	%			58.4	%			60.4	%

WAFD, INC. AND SUBSIDIARIES NON-GAAP MEASURES (UNAUDITED)
		Three Months Ended
Adjusted ROA and ROE		December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
		(Unaudited - In thousands, except for ratio data)
Reported:
Net Income - GAAP		$	64,196			$	60,597			$	61,952			$	56,252			$	47,267
Net income available to common shareholders - GAAP		$	60,540			$	56,941			$	58,296			$	52,596			$	43,611
Average Assets			26,852,389				26,540,782				26,813,500				27,371,320				27,504,576
Return on Assets			0.96	%			0.91	%			0.92	%			0.82	%			0.69	%
Average Common Equity		$	2,733,933			$	2,723,098			$	2,730,745			$	2,739,021			$	2,715,197
Return on common equity			8.86	%			8.36	%			8.54	%			7.68	%			6.42	%
Adjusted:
Net Income - non-GAAP		$	61,701			$	60,661			$	62,130			$	56,086			$	54,404
Net income available to common shareholders - non-GAAP		$	58,045			$	57,005			$	58,474			$	52,430			$	50,748
Average Assets			26,852,389				26,540,782				26,813,500				27,371,320				27,504,576
Adjusted Return on Assets			0.92	%			0.91	%			0.93	%			0.82	%			0.79	%
Average Common Equity			2,733,933				2,723,098				2,730,745				2,739,021				2,715,197
Adjusted Return on common equity			8.49	%			8.37	%			8.57	%			7.66	%			7.48	%

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, including a "Needs to Improve" CRA rating, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260115526416/en/

The Washington Federal Stock at the time of publication of the news with a raise of +2,57 % to 33,89USD on Nasdaq stock exchange (15. Januar 2026, 22:37 Uhr).

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