WaFd FY EPS rises 22% on higher NII, improved asset quality
WAFD•WaFd said fiscal 2026 EPS rose 22% year over year as asset quality improved. Fiscal Q4 net interest income was $182.4 million and net interest margin was 2.81%, both stable from the previous quarter.
1. Fiscal-year results
WaFd reported a 22% year-over-year increase in fiscal 2026 EPS. Asset quality metrics improved, including decreases in non-performing assets and delinquencies and the resolution of a large classified loan.
2. Fourth-quarter details
Fiscal Q4 net income and EPS declined sequentially. Net interest income was $182.4 million and net interest margin was 2.81%, both stable compared with the previous quarter. Non-interest income rose due to gains from sales of single-family residential loans, while non-interest expense increased due to strategic investments and merger-related costs.
3. Outlook
WaFd expects to benefit from rising rates as assets reprice faster than liabilities. It anticipates a net gain of about $7 million from a multifamily loan sale in fiscal Q1 2027.
