WAFD Stock Falls as Q4 Earnings Miss Estimates, Revenues Decline Y/Y

Core Insights - WaFd, Inc. (WAFD) reported a fourth-quarter fiscal 2025 earnings per share of 72 cents, missing the Zacks Consensus Estimate of 75 cents, but reflecting a year-over-year increase of 1.4% [1][10] - The company's full-year earnings per share of $2.63 also fell short of the Zacks Consensus Estimate of $2.73, although it grew 5.2% year over year [3] Financial Performance - Quarterly net income available to common shareholders was $56.9 million, down 1% from the prior-year quarter, slightly above the estimate of $56.8 million [2] - Full-year net income available to common shareholders was $211.4 million, up 14% from the previous year, closely aligning with the estimate of $211.3 million [3] - Quarterly net revenues were $188.3 million, a slight decline from the prior-year quarter and missing the Zacks Consensus Estimate of $190.2 million [4] - Full-year net revenues totaled $725.5 million, a marginal increase from the previous year, but also missing the Zacks Consensus Estimate of $727.4 million [4] Interest Income and Expenses - Net interest income (NII) for the quarter was $169.9 million, down 1.7% year over year, while the net interest margin (NIM) increased by 9 basis points to 2.71% [5] - Total non-interest income rose 15.8% year over year to $18.4 million, exceeding the estimate of $18 million [5] - Total non-interest expenses were $107 million, a 1% decrease year over year, attributed to lower FDIC insurance premiums and other expenses [6] Asset Quality and Loans - As of September 30, 2025, net loans receivable were $20.09 billion, down 1% from the prior quarter, while total customer deposits increased marginally to $21.44 billion [8] - The allowance for credit losses was 1.04% of gross loans outstanding, up from 1.01% in the prior-year quarter, indicating a deterioration in credit quality [11] Share Repurchase Activity - In the reported quarter, WAFD repurchased 0.97 million shares at an average price of $29.74 per share [12] Market Position and Outlook - The company is expected to benefit from relatively higher interest rates and a solid balance sheet, although it faces challenges from a tough macroeconomic environment [13]