WaFd (NASDAQ:WAFD) Issues Quarterly Earnings Results

WaFd (NASDAQ:WAFD) released its earnings results on Friday, October 16th. The bank reported $0.85 EPS for the quarter, topping the consensus estimate of $0.84 by $0.01, reports. WaFd had a return on equity of 9.37% and a net margin of 18.04%. The business had revenue of $220.44 million for the quarter, compared to the consensus estimate of $203.66 million.

Here are the key takeaways from WaFd’s conference call:

• Fiscal 2026 earnings improved: EPS rose 22% year over year to $3.21, while full-year net income reached $241.2 million, WaFd’s second-best annual result.
• Active loan production increased 56.6% year over year to $5.5 billion, and core deposits rose to 81.8% of total deposits. Management also expects modest net interest margin expansion as assets reprice faster than liabilities.
• Quarterly results were pressured by $39.2 million of net charge-offs, including a significant loss on a private-equity-owned manufacturer, lifting the quarterly provision for credit losses to $20 million. Management said the loss was unusual, although credit metrics improved overall.
• The EverBank merger remains on track to close in the first quarter of calendar 2027, pending shareholder and regulatory approvals. Management projects approximately 29% EPS accretion after full cost savings and believes the combination will improve scale, technology investment, deposit flexibility, and exposure diversification.
• Loan sales reduced receivables by roughly $1 billion, with another $429 million of multifamily loans expected to be sold in December; management acknowledged the need to offset the resulting net interest income pressure through reinvestment or other balance-sheet actions.

WaFd Stock Performance

Shares of WaFd stock traded down $0.24 during trading on Tuesday, hitting $29.44. 466,566 shares of the company’s stock traded hands, compared to its average volume of 730,894. The company has a debt-to-equity ratio of 0.92, a current ratio of 0.94 and a quick ratio of 0.92. WaFd has a 1 year low of $28.10 and a 1 year high of $39.49. The stock has a market capitalization of $2.18 billion, a P/E ratio of 9.17 and a beta of 0.90. The business has a 50-day simple moving average of $31.08 and a 200-day simple moving average of $33.85.

Analysts Set New Price Targets

WAFD has been the subject of several recent analyst reports. Zacks Research lowered WaFd from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, November 3rd. Keefe, Bruyette & Woods cut their price objective on shares of WaFd from $40.00 to $34.00 and set a “market perform” rating on the stock in a research report on Monday, October 19th. DA Davidson set a $31.00 price objective on shares of WaFd in a research note on Monday, October 19th. Piper Sandler decreased their target price on shares of WaFd from $32.00 to $31.00 and set a “neutral” rating for the company in a report on Monday, October 19th. Finally, Weiss Ratings downgraded shares of WaFd from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday, October 19th. Five investment analysts have rated the stock with a Hold rating. Based on data from MarketBeat, WaFd has a consensus rating of “Hold” and a consensus target price of $32.50.

WaFd Company Profile

WaFd, Inc. is the bank holding company for WaFd Bank, a regional financial institution serving individuals, businesses and organizations. The bank offers deposit accounts, including checking and savings, as well as consumer and commercial lending, mortgage services and cash management. Its lending activities include residential mortgages and loans to businesses, including commercial real estate financing. WaFd Bank operates across the western United States, with a presence in states including Washington, Oregon, Idaho, Arizona, Nevada, Utah, New Mexico and Texas.