WaFd Inc. Reports Strong Q2 Earnings, 26% EPS Growth, Improved Asset Quality, and Substantial Share Buyback
WAFD sits 33% above its 52-week low of $26.31.
Summary
WaFd Inc. announced strong fiscal second-quarter results, with diluted EPS surging 26% year-over-year, significant improvements in asset quality, and a substantial share repurchase program.
Key Events · Earnings and Guidance · WAFD
-
Strong Q2 Financial Performance
Diluted earnings per common share increased 26% year-over-year to $0.82 for the quarter ended March 31, 2026, with net income rising 17% to $65.5 million compared to the prior year.
-
Significant Improvement in Asset Quality
Non-performing assets decreased by $71 million to 0.48% of total assets, down from 0.75% in the prior quarter. Delinquencies also fell by $58 million to 0.78% of total loans.
-
Substantial Share Repurchase Activity
The company repurchased 2,738,096 shares of common stock during the quarter at a weighted average price of $31.85 per share, representing approximately $87.2 million in buybacks. A remaining authorization of 8.0 million shares is in place.
-
Increased Net Interest Margin
Net interest income for the quarter was $178 million, an increase of 4% from the prior quarter, with the net interest margin expanding to 2.81% from 2.70%.
Analysis · WAFD · Finance
WaFd Inc. delivered a robust second-quarter performance, marked by significant year-over-year EPS growth and substantial improvements in credit quality. The reduction in non-performing assets and delinquencies signals a healthier loan portfolio, which is a critical positive for a financial institution. Furthermore, the company's aggressive share repurchase program, buying back over 3% of outstanding shares during the quarter, demonstrates management's confidence in the company's valuation and future prospects. These strong results, coupled with an expanding net interest margin, provide a solid foundation and justify the stock trading near its 52-week high.
At the time of this filing, WAFD was trading at $35.06 on NASDAQ in the Finance sector, with a market capitalization of approximately $2.7B. The 52-week trading range was $26.31 to $35.11. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.