WaFd FY EPS rises 22% on higher NII, improved asset quality

WaFd

16/10/2026 01:10

Overview
US regional bank's fiscal Q4 net income and EPS declined sequentially
Fiscal 2026 EPS rose 22% yr/yr, with improved asset quality metrics
Net interest income and margin were stable compared to previous quarter

Outlook
Company expects to benefit from rising rates as assets reprice faster than liabilities
WaFd anticipates a net gain of about $7 mln from multifamily loan sale in Q1 fiscal 2027

Result Drivers
LOAN SALES - WaFd said Q4 non-interest income rose due to gains from sale of single-family residential loans
ASSET QUALITY IMPROVEMENT - Co said asset quality metrics improved, citing resolution of a large classified loan and decreases in non-performing assets and delinquencies
MERGER COSTS - WaFd said Q4 non-interest expense increased due to strategic investments and merger-related costs

Company press release: ID:nBw33CHda

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Net Interest Income
 
$182.4 mln
 
Q4 Net Interest Margin
 
2.81%
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for WaFd Inc is $35.50, about 20.5% above its October 15 closing price of $29.45
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)