WaFd, Inc. reported second‑quarter 2026 results with net income of $65.5 million and diluted earnings per share of $0.82, surpassing the consensus estimate of $0.74–$0.75. Net revenue reached $197.4 million, exceeding the analyst expectation of $190.5 million.
The quarter’s earnings reflected a 17% year‑over‑year increase in net income and a 2% sequential rise. Diluted EPS climbed from $0.65 in the same quarter a year ago and from $0.79 in the prior quarter. Net interest income grew to $177.57 million, up from $160.91 million a year earlier, while the net interest margin expanded to 2.81% from 2.55% in the year‑ago period.
Margin expansion was driven by higher asset yields and lower funding costs, which lifted the net interest margin. Loan growth resumed, with active loan segments expanding 12% on an annualized basis, and asset quality improved, as non‑performing assets fell to 0.48%. Share repurchases of 3.6% of outstanding shares at an average price of $31.85 further supported earnings.
The results come as WaFd continues its Build 2030 transformation, which focuses on increasing non‑interest‑bearing deposits to lower funding costs and on technology upgrades such as a new mobile app and AI‑powered call‑center tools to enhance customer engagement.
Brent Beardall, President and CEO, said, “Uncertainty seems to be our new reality, not just in the banking sector, but also in the broader global context. Our strong foundation enabled us to deliver for our customers even during uncertain times. During the quarter, we executed on our strategic plan and grew our active loan segments by 12% annualized. Given our growth in loans, notable improvements in asset quality metrics, and a widening margin, we see a bright future in spite of current uncertainties.”
Analysts responded to the earnings beat by raising their price targets for WaFd, with Keefe, Bruyette & Woods increasing the target to $34.00 from $31.00 and later to $35.00, reflecting confidence in the bank’s margin expansion and loan growth trajectory.
With earnings surpassing expectations and margin expansion continuing, WaFd’s Q2 2026 results reinforce the bank’s strategic shift toward commercial banking and its Build 2030 transformation, positioning it for sustained profitability amid a challenging macro environment.
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