Loan Production and Growth - The company reported robust overall loan growth, with $374 million in new loans originated for the full year, which is 79% higher than the prior year [1][6] - In the fourth quarter, total loan originations were $141 million, including $106 million funded, with over 90% of that in commercial loans [2][6] - The loan pipeline is approximately 30% larger than a year ago, with expectations for consistent mid-single-digit production in 2026 [6][7] Financial Performance - The company experienced a GAAP net loss of $39.5 million in the fourth quarter due to a $69 million loss from a securities portfolio repositioning, but non-GAAP net income was $9.4 million [3][5][15] - Core earnings and net interest margin improved, with net interest margin reaching 3.42% in December, reflecting a 30 basis point expansion [4][16][17] - Non-interest income remained consistent with the prior quarter, while non-interest expense increased slightly [18] Credit Quality and Management - Classified loans decreased by 35% to 1.5% of total loans, and non-accrual loans fell to 1.3% [4][20] - The allowance for credit losses stood at 1.42% of total loans, with a minor provision for credit losses recorded in the fourth quarter [22] Deposit Dynamics - Total deposits increased in the fourth quarter, driven by higher balances from long-term clients and new relationships, with a total deposit cost of 1.17% [8][9] - The bank opened nearly 1,000 accounts during the period, with about 45% being new to the bank, contributing to a growing deposit base [11] Capital Actions and Future Outlook - The company plans to target a mid-single-digit loan growth in 2026, with potential for better performance depending on payoffs [7] - Management expects approximately $0.40 of EPS accretion and about a 25-basis-point lift in net interest margin over the next 12 months following capital replenishment [5][13]

Core Insights - WaFd reported a fiscal first-quarter 2026 net income of $60.5 million, or $0.79 per diluted share, an increase from $0.54 per share in the same quarter last year and $0.72 per share in the previous quarter [3][6] - The company increased investments in mortgage-backed securities (MBS) by $728 million, primarily funded through a $671 million increase in borrowings, as part of a strategy to replace single-family loan balance runoff [1][5] - Management indicated that credit metrics weakened, with non-performing assets rising to $203 million, or 0.75% of total assets, and delinquencies increasing to 1.07% of total loans [4][13] Financial Performance - The linked-quarter earnings improvement was attributed to higher income and lower expenses, including a modest increase in net interest income and a decrease in total non-interest expense [2] - Non-interest income increased by $1.9 million to $20.3 million, aided by a $3.2 million gain on the sale of a branch property [10] - Non-interest expense declined by $1.3 million, or 1.2%, leading to an improved efficiency ratio of 55.3% [11] Loan and Deposit Trends - Loans receivable decreased by $240 million, primarily due to runoff in inactive loan types, while originations and advances in active portfolio categories totaled $1.1 billion [1][5] - Deposits decreased by $21 million for the quarter, with non-interest-bearing deposits increasing by $125 million (up 4.9%) and interest-bearing deposits increasing by $434 million (up 4.5%) [6] Credit Quality - Non-performing assets increased by $62.7 million (up 49%) since September 30, 2025, largely due to two commercial relationships totaling approximately $58 million [13][14] - The company recorded a $3.5 million provision for credit losses, reflecting decreased loan balances and mixed credit metrics [15] Strategic Initiatives - WaFd's BUILD 2030 strategic plan aims to shift focus toward business banking, with a goal of raising non-interest-bearing deposits to 20% of total deposits by 2030 [16] - The company expects to grow its active loan portfolios by 8% to 12% over the next one to two years, with a lending pipeline increase of $697 million (28%) from $2.5 billion to $3.2 billion [18] - WaFd Wealth Management was launched with a goal to reach $1 billion in assets under management within two years, currently at just over $400 million [18] Regulatory and Compliance - The company is appealing an FDIC Community Reinvestment Act (CRA) "needs to improve" rating, which could affect branching logistics and mergers and acquisitions [19]

Core Viewpoint - Ottawa Bancorp, Inc. has successfully completed its stock repurchase program, acquiring 120,996 shares at an average price of $15.01 per share [1]. Company Overview - Ottawa Bancorp, Inc. serves as the holding company for OSB Community Bank, which offers a range of financial services to both individual and corporate clients in the United States [2]. - OSB Community Bank provides various deposit accounts, including checking, money market, regular savings, club savings, certificates, and retirement accounts [2]. - The bank's loan portfolio encompasses one-to-four family residential mortgages, multi-family and non-residential real estate loans, commercial and construction loans, as well as auto loans and home equity lines of credit [2]. - Established in 1871, OSB Community Bank is headquartered in Ottawa, Illinois [2].