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1. Company Snapshot

1.a. Company Description

Washington Federal, Inc.operates as the bank holding company for Washington Federal Bank, National Association that provides lending, depository, insurance, and other banking services in the United States.The company offers deposit products, including business and personal checking accounts, and term certificates of deposit, as well as money market accounts and passbook savings accounts.


It also provides single-family residential, construction, land acquisition and development, consumer lot, multi-family residential, commercial and industrial, commercial real estate, home equity, business and consumer loans.In addition, the company offers insurance brokerage services, such as individual and business insurance policies; holds and markets real estate properties; mobile and internet banking services; and debit and credit cards, as well as acts as the trustee.It serves consumers, mid-sized and large businesses, and owners and developers of commercial real estate.


As of September 30, 2021, the company had 219 branches located in Washington, Oregon, Idaho, Arizona, Utah, Nevada, New Mexico, and Texas.Washington Federal, Inc.was founded in 1917 and is headquartered in Seattle, Washington.

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1.b. Last Insights on WAFD

Breaking News: WaFd Inc reported Q2 2026 earnings on April 17 beating estimates with strong year-over-year growth in net interest income and fee income. The company announced earnings of $0.75. Despite the earnings beat, the bank experienced declines in loans and deposits, rising expenses, and weaker credit quality. The stock reached a new 52-week high of $34.42 on April 18 following the better-than-expected earnings announcement. Some analysts recommend a hold rating on the stock. WaFd Inc has not provided guidance for the current fiscal year.

1.c. Company Highlights

2. WaFd's Earnings: Strong Growth, Tech Boost, and Shareholder Value

WaFd Inc. delivered a robust quarter, reporting net income of $61.9 million or $0.82 per diluted share—up from $0.65 in the same period last year and surpassing the $0.79 of the preceding quarter. Net interest income rose $6.5 million, lifting the net interest margin to 3.22%. The bank’s earnings beat analyst consensus, with EPS of $0.83 versus estimates of $0.74, supported by a $20 million fee run‑rate and a solid 3.06% dividend yield.

Publication Date: Apr -18

📋 Highlights
  • EPS Growth: Net income per diluted share rose to $0.82 in Q1 2026, up from $0.79 in Q4 2025 and $0.65 in Q2 2025.
  • Share Repurchase: Reduced shares by 2.7 million at $31.85/share, 105% of tangible book value, representing 3.6% of shares outstanding.
  • Loan Growth: Loans receivable increased $119 million, with a weighted average origination rate of 6.22%, driven by Commercial Real Estate and C&I growth.
  • Deposit Decline: Deposits fell $292 million, with core deposits at 80.4% of total, and a loan-to-deposit ratio of 94.5%.
  • Capital Strength: Maintained CET1 ratio of 11.4% and total risk-based capital of 14.4%, with potential $400M boost from proposed regulatory changes.

Financial Highlights

Revenue momentum continued with net interest income increasing by $6.5 million, while the net interest margin improved to 3.22%. The bank’s efficiency ratio tightened to 55.7%, reflecting disciplined cost management. With a 4.1% revenue growth forecast for next year, WaFd’s financials remain resilient and well‑capitalized.

Loan Growth and Asset Quality

Loans receivable grew $119 million, driven by expansion in Commercial Real Estate, Multifamily, Construction, and Consumer segments. The weighted average origination rate stood at 6.22%. Adversely classified loans fell $65 million and nonperforming assets dropped to 0.48% of total assets, underscoring strong asset quality.

Capital Strength and Share Repurchase

The bank’s CET1 ratio held at 11.4% and total risk‑based capital at 14.4%. Share repurchases of 2.7 million at $31.85—105% of tangible book value—reduced shares outstanding by 3.6%. Proposed regulatory changes could boost capital by $400 million, enhancing the bank’s resilience.

Technology Innovations

WaFd Labs, a new subsidiary, is developing customer‑benefit software, while the next‑gen mobile app cuts balance‑check time by over 50%. AI‑driven tools double development speed, and an AI Call Center Agent offers 24/7 customer support, positioning the bank at the forefront of fintech.

Fee Income and Deposits

Fee income reached a $20 million run‑rate, sustained by insurance commissions, wealth management, and SBA gains. Deposits fell $292 million, yet core deposits remain at 80.4% of total, and the loan‑to‑deposit ratio sits at 94.5%, providing a solid funding base.

Expense Management

Operating expenses rose mainly due to merit increases and taxes, but the bank views this as a healthy run‑rate. The 55.7% efficiency ratio suggests that future expense growth will be manageable as earnings expand.

Valuation Snapshot

At a P/E of 10.54 and a dividend yield of 3.06%, WaFd trades at a modest premium to earnings. The EV/EBITDA of 9.0 and a ROE of 11.11% reflect solid profitability, while the negative Net Debt/EBITDA of –2.98 indicates ample liquidity.

Outlook and Shareholder Focus

WaFd targets 8%–12% active portfolio growth, a 3% net interest margin in a few years, and a 20 million fee run‑rate sustainability. With a growing deposit pipeline and continued tech investments, the bank remains committed to delivering shareholder value and maintaining a robust capital profile.

3. NewsRoom

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WaFd (NASDAQ:WAFD) Hits New 52-Week High on Earnings Beat

Apr -18

Source: defenseworld.net

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WaFd, Inc. (WAFD) Q2 2026 Earnings Call Transcript

Apr -17

Source: seekingalpha.com

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WAFD Q2 Earnings Beat Estimates on Strong Y/Y NII & Fee Income Growth

Apr -17

Source: zacks.com

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WaFd (WAFD) Surpasses Q2 Earnings and Revenue Estimates

Apr -16

Source: zacks.com

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WaFd Announces Quarterly Earnings Per Share Of $0.82

Apr -16

Source: businesswire.com

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SG Americas Securities LLC Grows Holdings in WaFd, Inc. $WAFD

Apr -06

Source: defenseworld.net

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WaFd Bank Named Official Banking Partner of Network of Giving Foundation Across the United States

Apr -02

Source: businesswire.com

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WaFd, Inc. (NASDAQ:WAFD) Receives $32.90 Average PT from Brokerages

Mar -30

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.00%)

6. Segments

Banking and Related Activities

Expected Growth: 10.0%

Washington Federal, Inc.'s 10.0% growth in Banking and Related Activities is driven by increasing loan demand, expansion of commercial banking services, and strategic acquisitions. Additionally, the company's focus on digital transformation, cost savings initiatives, and a strong capital position have contributed to its growth momentum.

7. Detailed Products

Consumer Banking

Washington Federal, Inc. offers a range of consumer banking products and services, including checking and savings accounts, credit cards, personal loans, and home loans.

Commercial Banking

The company provides commercial banking services, including business checking and savings accounts, commercial loans, and cash management services.

Home Loans

Washington Federal, Inc. offers a range of home loan products, including fixed-rate and adjustable-rate mortgages, refinancing options, and home equity loans.

Wealth Management

The company provides wealth management services, including investment management, financial planning, and retirement planning.

Insurance Services

Washington Federal, Inc. offers insurance services, including life insurance, disability insurance, and long-term care insurance.

8. Washington Federal, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Washington Federal, Inc. operates in a highly competitive industry, with many substitutes available to customers. However, the company's strong brand reputation and customer loyalty help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Washington Federal, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often customized to meet specific customer needs, making it difficult for customers to switch to alternative providers.

Bargaining Power Of Suppliers

Washington Federal, Inc. relies on a network of suppliers to provide goods and services. While the company has some bargaining power due to its size and scale, suppliers still have some negotiating power, particularly in industries where there are few alternative suppliers.

Threat Of New Entrants

The banking and financial services industry has high barriers to entry, including regulatory hurdles and significant capital requirements. This makes it difficult for new entrants to enter the market and compete with established players like Washington Federal, Inc.

Intensity Of Rivalry

The banking and financial services industry is highly competitive, with many established players competing for market share. Washington Federal, Inc. faces intense competition from other banks and financial institutions, which can lead to pricing pressure and reduced profitability.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 75.06%
Debt Cost 8.10%
Equity Weight 24.94%
Equity Cost 8.10%
WACC 8.10%
Leverage 300.93%

11. Quality Control: Washington Federal, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

35.24$

Current Price

35.24$

Potential

-0.00%

Expected Cash-Flows