Shrink the share count by roughly seven out of every hundred, and a 6.7% profit increase turns into a 15.1% EPS increase. That is the cleanest first read of WaFd’s latest report, and it makes the bank’s per-share growth look much stronger than its underlying earnings growth.
For the three months ended June 30, revenue rose from $7.6 million to $8.1 million, while net income reached $66.1 million from $62.0 million a year earlier. Diluted shares fell from 79.9 million to 74.0 million. WaFd does not say in the supplied filing digest why the diluted count declined.
The more complicated part sits inside the earnings mix. Net interest margin, the spread between what a bank earns on assets and pays for funding, improved to 2.77% from 2.54%. But management also tied pressure on asset yields to falling interest rates, and the bank’s cash balance declined to $676.5 million from $809.3 million.
WaFd connected the larger balance sheet primarily to buying investments. Total assets increased by $897.3 million from September 30, 2025, while held-to-maturity securities rose by $212.5 million during the period.
The bank’s own explanation for the margin picture is blunt:
"The lower yield on interest-earning assets was primarily due to falling interest rates affecting adjustable rate loans, lower net cash settlements on our loan and securities fair value hedge programs and interest-bearing cash deposits."
10-Q 2026-08-04
In plain English, the spread improved even as some rate-sensitive pieces of the asset base earned less. That leaves the three-month period with two different operating signals: a higher NIM on one hand, and lower yields tied to rates on the other.
Non-interest expense also rose by $6.0 million to $110.3 million. WaFd attributed that increase to compensation and technology costs, including annual merit increases and continued investment in operational efficiency. The expense growth did not prevent net income from rising, but it narrowed the room between modest business growth and stronger per-share growth.
A separate contribution came from a property sale and other non-interest items:
"The increase was primarily due to approximately $3,200,000 of gain recognized on the sale of bank real estate combined with lower losses recognized on equity method investments and increased fee income recognized on loan and deposit accounts."
10-Q 2026-08-04
That is not a pure interest-spread story. The three-month period’s higher income also included a $3.2 million gain on bank real estate, lower equity-method losses, and more fee income. The filing gives the ingredients, but not a clean split showing how much of the earnings increase came from each one.
The balance-sheet scale matters because this is a bank adding investments while holding less cash. The report shows those facts together, not a stated cause-and-effect chain. It also leaves a rate-sensitive business exposed to the same falling-rate pressure management has described across its filings.
At the latest close, WaFd shares were $37.38, up 1.7% on August 3. The stock’s P/E was 13.3x using the latest annual facts, a market snapshot that says less about the quarter’s accounting mix than the per-share figure does.
WaFd’s next quarterly report needs to separate the earnings contribution from interest income, fees, investment losses, and bank real estate sales. The unanswered question is simple: how much of the next per-share increase, if there is one, will come from the business rather than a smaller denominator or another non-interest item?
WaFd’s June 30 10-Q reports higher NIM, lower cash, a $3.2 million bank-real-estate gain, and a 7.3% decline in diluted shares.