WaFd Inc Delivers Strong Q2 2026 Earnings: Net Income Jumps to $61.9 Million
WaFd Inc, a leading financial institution, has reported impressive second-quarter earnings for 2026, beating market expectations and solidifying its position in the industry.
The company's net income available to common shareholders jumped to $61.9 million, or $0.82 per diluted share, representing a notable increase from $0.65 per share in the same period last year and $0.79 per share in the December 2025 quarter.
"I thought we had an outstanding second quarter," said Brent Beardall, President and CEO of WaFd Inc, during a conference call with investors. "We are excited to elaborate on the results."
The company's strong performance was driven by a modest increase in net interest income, controlled expenses, and a strategic share repurchase plan that saw 2.7 million shares bought back at a weighted average price of $31.85 per share or 1.05x tangible book value.
WaFd Inc's loan receivable balance increased by $119 million during the quarter, primarily due to growth in commercial real estate, multifamily, construction, land A&D, C&I, and consumer loans, which combined increased by $359 million. The weighted average rate on originations was 6.22%, while the weighted average rate on repayments and payoffs was 6.12%.
Total investments and mortgage-backed securities also saw a significant increase of $191 million during the quarter, funded by borrowings that rose to $626 million. Investment purchases were primarily discount-priced agency mortgage-backed securities with an effective yield of 4.8%, part of the company's overall investment strategy.
However, total deposits decreased by $292 million in the quarter, with non-interest-bearing deposits decreasing by $115 million or 4.3%, interest-bearing deposits remaining stable, and time deposits declining by $174 million or 2%. This decrease reflects predictable seasonal patterns, including annual distributions, tax payments, and bonus disbursements.
"Our share repurchase plan currently has a remaining authorization of 8 million shares," said Kelli Holz, Chief Financial Officer. "Depending on share price, this provides a compelling investment alternative."
WaFd Inc's strong Q2 earnings demonstrate its ability to navigate the complexities of the financial industry and deliver solid returns for shareholders.
