WAFD Reports Strong Q2 Earnings with Significant EPS Growth and Substantial Share Repurchase, Despite Rising Delinquencies
summarizeSummary
WAFD Inc. reported strong Q2 earnings with significant EPS growth and a substantial share repurchase, alongside an improved CRA rating, though an increase in loan delinquencies warrants attention.
check_boxKey Events
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Strong Q2 Earnings Growth
Net income available to common shareholders increased by 17.7% year-over-year to $61.9 million, with diluted EPS rising 26.2% to $0.82 for the quarter ended March 31, 2026.
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Substantial Share Repurchase Program
The company repurchased 2,738,096 shares of its common stock for $87.2 million during the quarter, contributing to a total of 4,688,109 shares repurchased for $145.2 million over the past six months. The Board increased the authorized shares for repurchase to 10 million in February 2026, with 7,992,669 shares remaining.
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Net Interest Margin Expansion
Net interest income grew by 10.4% year-over-year to $177.6 million, and the net interest margin expanded to 2.81% for the quarter ended March 31, 2026, up from 2.55% in the prior year.
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Mixed Asset Quality Trends
Non-performing assets decreased by 7.6% to $132.0 million, representing 0.48% of total assets. However, loan delinquencies increased to 0.78% of total loans (from 0.60% at September 30, 2025), and the provision for credit losses rose to $4.0 million (from $2.75 million prior year).
auto_awesomeAnalysis
WAFD Inc. delivered robust financial results for its fiscal second quarter, highlighted by a substantial increase in net income and diluted EPS. The company also continued its significant share repurchase program, demonstrating strong capital management and confidence. While overall non-performing assets decreased, a notable rise in loan delinquencies and an increased provision for credit losses indicate potential future asset quality challenges that warrant close monitoring. The successful appeal of its CRA rating to "Satisfactory" is a positive for regulatory standing.
At the time of this filing, WAFD was trading at $35.57 on NASDAQ in the Finance sector, with a market capitalization of approximately $2.7B. The 52-week trading range was $26.31 to $36.02. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.