WaFd (WAFD) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $66 million, up 17% year-over-year and 2% sequentially, with diluted EPS of $0.82, a 26% increase from Q2 2025.

• Net interest income rose to $178 million, with net interest margin improving to 2.81% from 2.55% year-over-year.

• Loan portfolio showed renewed growth after prior contraction, with active segments up 12% annualized.

• 3.6% of outstanding shares were repurchased at less than 1.1x tangible book value, with 8 million shares remaining authorized.

• Strategic focus remains on commercial lending, CRE, and C&I growth, increasing non-interest-bearing deposits, and efficiency improvements.

Financial highlights

• Net interest income increased by $6.5 million from the prior quarter, reaching $178 million.

• Net interest margin rose to 2.81% from 2.70% sequentially and 2.55% year-over-year.

• Non-interest income was $19.8 million, with $6.7 million from insurance commissions and $1.1 million in equity investment losses.

• Non-interest expense increased by $4.1 million to $109.9 million, mainly due to compensation and technology investments.

• Efficiency ratio was 55.66%, near the top end of the target range.

Outlook and guidance

• Management expects net interest margin to remain flat near-term, targeting 3% over two years through repricing and deposit growth.

• Active loan portfolio growth targeted at 8%-12%, with strong lending and deposit pipelines.

• Fee income run rate of ~$20 million per quarter is seen as sustainable.

• Interest rate risk is actively managed with hedging strategies and a mix of fixed and variable rate assets.

• No material impact anticipated from recent federal tax law changes.