WaFd (NASDAQ:WAFD), the parent company of Washington Federal Savings Bank, reported fiscal first-quarter net income of $64.2 million on Thursday, reflecting a resilient performance in a tightening credit environment.
The bank posted diluted earnings of $0.79 per share, surpassing the Zacks Investment Research consensus estimate of $0.76 per share.
The bottom-line beat provided a silver lining for the Seattle-based lender, as total revenue for the period ending December 31, 2025, hit $342.8 million.
However, revenue net of interest expense—the core engine of bank profitability—totaled $191.4 million, narrowly missing the Street’s forecast of $192.8 million.
The miss highlights the persistent pressure that elevated interest rates have placed on regional banks, as the cost of retaining deposits continues to eat into the yield generated from long-term loans.
Despite the revenue headwind, WaFd managed to improve its operational profile.
The bank's efficiency ratio—a measure of how much it spends to earn every dollar—came in at 55.3%, a slight beat against the projected 56.1%.
This improvement was driven by disciplined expense management and a shift toward higher-yielding commercial originations.