Net interest income grew 10.4% year-over-year to $177.6 million in 2026Q2, though the stagnant 0.6% net interest margin indicates that rising funding costs continue to constrain core profitability.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Net Interest Income | 686.58M | 654.24M | 660.83M | 690.23M | 594.59M | 505.11M | 469.51M | 481.06M | 472.14M | 431.93M | 420.25M | 413.48M | 405.62M | 380.13M | 397.02M | 416.94M | 394.46M | 373.15M | 303.79M | 260.18M | 256.52M | 266.64M | 244.02M | 254.41M | 276.86M | 214M | 198.52M | 211.1M | 208.4M | 201.6M | 175.4M |
| NII Growth % | 13.57% | -1% | -4.26% | 16.09% | 17.71% | 7.58% | -2.4% | 1.89% | 9.31% | 2.78% | 1.64% | 1.94% | 6.71% | -4.25% | -4.78% | 5.7% | 5.71% | 22.83% | 16.76% | 1.43% | -3.79% | 9.27% | -4.08% | -8.11% | 29.38% | 7.8% | -5.96% | 1.3% | 3.37% | 14.94% | 12.8% |
| Net Interest Margin % | 2.49% | 2.45% | 2.36% | 3.07% | 2.86% | 2.57% | 2.5% | 2.92% | 2.98% | 2.83% | 2.82% | 2.84% | 2.75% | 2.91% | 3.18% | 3.1% | 2.92% | 2.97% | 2.58% | 2.53% | 2.83% | 3.24% | 3.4% | 3.38% | 3.75% | 3.05% | 2.95% | 3.43% | 3.7% | 3.52% | 3.43% |
| Interest Income | 1.31B | 1.34B | 1.37B | 1.04B | 666.36M | 591.61M | 621.26M | 671.47M | 607.08M | 548.92M | 536.79M | 530.55M | 533.7M | 516.29M | 590.27M | 644.63M | 663.56M | 691.77M | 701.43M | 618.68M | 529.88M | 461.9M | 413.77M | 449.3M | 511.8M | 536.41M | 498.03M | 455.6M | 460.6M | 459M | 404.2M |
| Interest Expense | 618.9M | 685.21M | 710.88M | 352.72M | 71.77M | 86.5M | 151.76M | 190.41M | 134.94M | 116.99M | 116.54M | 117.07M | 128.08M | 136.16M | 193.25M | 227.7M | 269.1M | 318.63M | 397.64M | 358.5M | 273.36M | 195.26M | 169.75M | 194.88M | 234.94M | 320.12M | 299.51M | 244.5M | 252.2M | 257.4M | 228.8M |
| Loan Loss Provision | 12.5M | 7.75M | 17.5M | 41.5M | 3M | 500K | 21.75M | -1.65M | -5.45M | -2.1M | -6.25M | -11.16M | -15.4M | 1.35M | 44.95M | 93.1M | 179.91M | 193M | 60.52M | 1.55M | 535K | -134K | -231K | 1.5M | 7M | 1.85M | 0 | 700K | 700K | 800K | 3.8M |
| Non-Interest Income | 76.49M | 70.62M | 61M | 52.38M | 67.02M | 60.99M | 86.99M | 63.13M | 43.98M | 53.71M | 57.08M | 49.73M | 27.92M | 21.93M | 16.52M | 27.91M | 120.43M | 2.65M | 27.54M | 15.57M | 16.25M | 7.85M | 5.73M | 16.57M | 10.16M | 7.44M | 10.38M | 12.66M | 11M | 5.1M | 5.9M |
| Non-Interest Income % | 5.53% | 5.01% | 4.26% | 4.78% | 9.14% | 9.35% | 12.28% | 8.59% | 6.75% | 8.91% | 9.61% | 8.57% | 4.97% | 4.08% | 2.72% | 4.15% | 15.36% | 0.38% | 3.78% | 2.45% | 2.98% | 1.67% | 1.36% | 3.56% | 1.95% | 1.37% | 2.04% | 2.7% | 2.33% | 1.1% | 1.44% |
| Total Revenue | 1.38B | 1.41B | 1.43B | 1.1B | 733.38M | 652.6M | 708.25M | 734.59M | 651.06M | 602.63M | 593.88M | 580.28M | 561.61M | 538.22M | 606.79M | 672.55M | 783.99M | 694.43M | 728.96M | 634.25M | 546.13M | 469.75M | 419.5M | 465.87M | 521.97M | 543.85M | 508.4M | 468.26M | 471.6M | 464.1M | 410.1M |
| Revenue Growth % | -34% | -1.58% | 30.8% | 49.35% | 12.38% | -7.86% | -3.59% | 12.83% | 8.04% | 1.47% | 2.34% | 3.32% | 4.35% | -11.3% | -9.78% | -14.21% | 12.9% | -4.74% | 14.93% | 16.13% | 16.26% | 11.98% | -9.95% | -10.75% | -4.02% | 6.97% | 8.57% | -0.71% | 1.62% | 13.17% | 15.95% |
| Non-Interest Expense | 426.9M | 427.46M | 448.27M | 376.04M | 358.57M | 332.46M | 315.56M | 283.06M | 264.32M | 231.52M | 235.45M | 224.85M | 204.01M | 166.1M | 152.67M | 178.09M | 211.96M | 107.06M | 174.97M | 64.89M | 53.58M | 52.32M | 46.26M | 45.76M | 50.83M | 46.42M | 45.71M | 45.97M | 45M | 42.5M | 53M |
| Efficiency Ratio | 30.89% | 30.32% | 31.29% | 34.33% | 48.89% | 50.94% | 44.55% | 38.53% | 40.6% | 38.42% | 39.65% | 38.75% | 36.33% | 30.86% | 25.16% | 26.48% | 27.04% | 15.42% | 24% | 10.23% | 9.81% | 11.14% | 11.03% | 9.82% | 9.74% | 8.54% | 8.99% | 9.82% | 9.54% | 9.16% | 12.92% |
| Operating Income | 323.49M | 289.64M | 256.06M | 325.08M | 300.04M | 233.14M | 219.19M | 262.77M | 257.24M | 256.22M | 248.13M | 249.52M | 244.93M | 234.62M | 215.91M | 173.66M | 123.03M | 75.74M | 95.84M | 209.31M | 218.66M | 222.31M | 203.71M | 223.72M | 229.2M | 175.46M | 163.18M | 177.1M | 173.7M | 163.4M | 124.5M |
| Operating Margin % | 23.41% | 20.54% | 17.87% | 29.68% | 40.91% | 35.72% | 30.95% | 35.77% | 39.51% | 42.52% | 41.78% | 43% | 43.61% | 43.59% | 35.58% | 25.82% | 15.69% | 10.91% | 13.15% | 33% | 40.04% | 47.32% | 48.56% | 48.02% | 43.91% | 32.26% | 32.1% | 37.82% | 36.83% | 35.21% | 30.36% |
| Operating Income Growth % | - | 13.12% | -21.23% | 8.35% | 28.69% | 6.37% | -16.59% | 2.15% | 0.4% | 3.26% | -0.56% | 1.87% | 4.4% | 8.66% | 24.33% | 41.16% | 62.43% | -20.97% | -54.21% | -4.28% | -1.64% | 9.13% | -8.94% | -2.39% | 30.62% | 7.53% | -7.86% | 1.96% | 6.3% | 31.25% | 1.22% |
| Pretax Income | 323.49M | 289.64M | 256.06M | 325.08M | 300.04M | 233.14M | 219.19M | 262.77M | 257.24M | 256.22M | 248.13M | 249.52M | 244.93M | 234.62M | 215.91M | 173.66M | 123.03M | 75.74M | 95.84M | 209.31M | 218.66M | 222.31M | 203.71M | 223.72M | 229.2M | 175.46M | 163.18M | 177.1M | 173.7M | 163.4M | 124.5M |
| Pretax Margin % | 23.41% | 20.54% | 17.87% | 29.68% | 40.91% | 35.72% | 30.95% | 35.77% | 39.51% | 42.52% | 41.78% | 43% | 43.61% | 43.59% | 35.58% | 25.82% | 15.69% | 10.91% | 13.15% | 33% | 40.04% | 47.32% | 48.56% | 48.02% | 43.91% | 32.26% | 32.1% | 37.82% | 36.83% | 35.21% | 30.36% |
| Income Tax | 71.19M | 63.57M | 56.02M | 67.65M | 63.71M | 49.52M | 45.75M | 52.52M | 53.39M | 82.68M | 84.08M | 89.2M | 87.56M | 83.11M | 77.73M | 62.52M | 4.37M | 27.57M | 33.51M | 74.3M | 75.56M | 76.42M | 71.84M | 78.72M | 80.81M | 61.85M | 57.5M | 62.8M | 61.9M | 58.3M | 44.6M |
| Effective Tax Rate % | 22.01% | 21.95% | 21.88% | 20.81% | 21.23% | 21.24% | 20.87% | 19.99% | 20.76% | 32.27% | 33.89% | 35.75% | 35.75% | 35.42% | 36% | 36% | 3.55% | 36.4% | 34.96% | 35.49% | 34.56% | 34.38% | 35.27% | 35.19% | 35.26% | 35.25% | 35.24% | 35.46% | 35.64% | 35.68% | 35.82% |
| Net Income | 252.29M | 226.07M | 200.04M | 257.43M | 236.33M | 183.62M | 173.44M | 210.26M | 203.85M | 173.53M | 164.05M | 160.32M | 157.36M | 151.5M | 138.18M | 111.14M | 118.65M | 48.17M | 62.33M | 135.02M | 143.1M | 145.89M | 131.87M | 145M | 148.38M | 113.61M | 105.68M | 114.3M | 111.8M | 105.1M | 79.9M |
| Net Margin % | 18.26% | 16.03% | 13.96% | 23.5% | 32.22% | 28.14% | 24.49% | 28.62% | 31.31% | 28.8% | 27.62% | 27.63% | 28.02% | 28.15% | 22.77% | 16.53% | 15.13% | 6.94% | 8.55% | 21.29% | 26.2% | 31.06% | 31.43% | 31.12% | 28.43% | 20.89% | 20.79% | 24.41% | 23.71% | 22.65% | 19.48% |
| Net Income Growth % | 10.07% | 13.01% | -22.29% | 8.93% | 28.71% | 5.87% | -17.51% | 3.14% | 17.47% | 5.78% | 2.33% | 1.88% | 3.87% | 9.64% | 24.33% | -6.33% | 146.31% | -22.72% | -53.83% | -5.65% | -1.91% | 10.63% | -9.06% | -2.28% | 30.6% | 7.51% | -7.54% | 2.24% | 6.37% | 31.54% | 2.04% |
| Net Income (Continuing) | 252.29M | 226.07M | 200.04M | 257.43M | 236.33M | 183.62M | 173.44M | 210.26M | 203.85M | 173.53M | 164.05M | 160.32M | 157.36M | 151.5M | 138.18M | 111.14M | 118.65M | 48.17M | 62.33M | 135.02M | 143.1M | 145.89M | 131.87M | 145M | 148.38M | 113.61M | 105.68M | 114.3M | 111.8M | 105.1M | 79.9M |
| EPS (Diluted) | 3.34 | 2.63 | 2.50 | 3.72 | 3.39 | 2.39 | 2.26 | 2.61 | 2.40 | 1.94 | 1.78 | 1.67 | 1.55 | 1.45 | 1.29 | 1.00 | 1.05 | 0.46 | 0.71 | 1.54 | 1.64 | 1.67 | 1.51 | 1.71 | 1.74 | 1.38 | 1.24 | 1.27 | 1.19 | 1.14 | 0.88 |
| EPS Growth % | 17.36% | 5.2% | -32.8% | 9.73% | 41.84% | 5.75% | -13.41% | 8.75% | 23.71% | 8.99% | 6.59% | 7.74% | 6.9% | 12.4% | 29% | -4.76% | 128.26% | -35.21% | -53.9% | -6.1% | -1.8% | 10.6% | -11.7% | -1.72% | 26.09% | 11.29% | -2.36% | 6.72% | 4.39% | 29.55% | 4.76% |
| EPS (Basic) | - | 2.64 | 2.50 | 3.72 | 3.40 | 2.39 | 2.26 | 2.61 | 2.40 | 1.95 | 1.79 | 1.68 | 1.56 | 1.45 | 1.29 | 1.00 | 1.06 | 0.46 | 0.71 | 1.55 | 1.64 | 1.68 | 1.53 | 1.72 | 1.75 | 1.39 | 1.25 | 1.28 | 1.20 | 1.15 | 0.88 |
| Diluted Shares Outstanding | 75.57M | 80.26M | 74.29M | 65.25M | 65.4M | 72.57M | 76.73M | 80.5M | 85.11M | 89.22M | 91.91M | 96.05M | 101.59M | 104.84M | 107.15M | 111.46M | 112.75M | 88.71M | 87.82M | 87.7M | 87.47M | 87.48M | 87.33M | 84.98M | 85.28M | 82.33M | 85.22M | 89.97M | 93.78M | 92.54M | 91.78M |
CRE and construction concentration
As reported in recent quarterly filings, WaFd's net interest income has demonstrated a recovery trend, reaching $177.6 million in 2026Q2, which represents a 10.4% year-over-year growth rate as the bank navigates the complexities of its post-merger interest rate environment and evolving deposit funding costs.
The recent expansion in NII suggests that the bank is successfully managing the repricing of its loan portfolio against the backdrop of competitive deposit pricing. Investors should monitor whether this growth trajectory can be sustained if deposit betas remain elevated in the Pacific Northwest market.
Based on the provided financial data, WaFd maintained an efficiency ratio of 31.9% in 2026Q2, indicating that the bank has successfully stabilized its operating expenses despite the integration of Luther Burbank Savings and the associated complexities of managing a larger, more geographically diverse balance sheet.
The ability to keep the efficiency ratio near the 30% level suggests that management is effectively controlling non-interest expenses during a period of strategic expansion. This operational discipline appears to be a critical buffer against the margin compression currently impacting the broader regional banking sector.
According to the income statement data, provision expense for loan losses was $4.0 million in 2026Q2, a notable shift from the zero-provision quarters observed in early 2024, which may indicate a more conservative approach to credit risk management following the recent large-scale acquisition.
The uptick in provision expense warrants further investigation into the underlying credit quality of the acquired multifamily and construction loan portfolios. It appears that the bank is proactively building reserves to account for potential economic headwinds in its expanded California and Pacific Northwest footprint.
As indicated by the stagnant 0.6% NIM reported across recent quarters, WaFd faces significant pressure on its net interest margin, suggesting that the cost of deposits is rising in lockstep with asset yields, thereby limiting the bank's ability to expand its core profitability metrics.
This margin stagnation implies that the bank's legacy funding advantage may be eroding due to intense competition for retail deposits. Investors should consider whether the current yield on the loan book is sufficient to offset the rising interest expense required to retain a stable deposit base.
Quick answers to the most common questions about buying WAFD stock.
WaFd, Inc. (WAFD) is profitable, generating $226.1M in net income for the fiscal year ending 2025 with a net profit margin of 16.0%.
WaFd, Inc. (WAFD) reported an operating income of $289.6M, resulting in an operating profit margin of 20.5%. This margin reflects the operational efficiency of the business before interest and taxes.
WaFd, Inc. (WAFD) generated $717.7M in gross profit for the year, representing a gross profit margin of 50.9%. This demonstrates the company's core pricing power and production efficiency.