What factors drove the changes in Washington Federal Pref A ADR's revenue and profit?

What were the key takeaways from Washington Federal Pref A ADR’s earnings call?

What guidance did Washington Federal Pref A ADR's management provide for the next earnings period?

What does Washington Federal Pref A ADR do and what are its main business segments?

What is Washington Federal Pref A ADR's latest dividend and current dividend yield?

What is the market's earnings forecast for Washington Federal Pref A ADR next quarter?

What is Washington Federal Pref A ADR's gross profit margin?

What is the revenue and EPS growth rate for Washington Federal Pref A ADR year over year?

- **Active Loan Growth**: Q4 originations ($1.4B) > repayments ($1.2B), with FY26 target 8-12% growth in active portfolio.
- **Margin Expansion**: Spot rate 2.82% could improve with rate cuts, but 1-2q lag for full impact.
- **Deposit Strategy**: 20% noninterest-bearing deposits by 2030 (12% now), focusing on small business relationships.
- **Wealth Management**: $1B AUM target in 2 years, enhancing noninterest income.
- **Share Buybacks**: Likely resuming as stock trades below tangible book value.
- **Credit Quality**: Delinquencies up 34bps to 0.6%, but nonperforming assets (0.54%) remain healthy.

**【CEO Opening Remarks】**
- WaFd reported net income of $56.9 million for Q4 2025, down $0.01 per share from Q4 2024 due to higher noninterest expenses.
- Loans receivable decreased $188 million, with active loan originations ($1.4B) outpacing repayments ($1.2B) for the first time in FY25.
- Deposits grew $51 million, with noninterest-bearing deposits up 3.2% and core deposits at 78% of total.
- Net loan-to-deposit ratio improved to 93.7%, and liquidity remains strong with well-capitalized ratios.

**【CFO Financial Commentary】**
- Net interest income increased $1.9 million, driven by lower liability costs outpacing asset yield declines (3bps).
- Noninterest income rose slightly to $18.4M, including $4.6M from WaFd Insurance (12.5% FY25 growth).
- Noninterest expenses rose $2.7M due to tech and talent investments, raising efficiency ratio to 56.82%.
- Net interest margin ended at 2.71%, with a spot rate of 2.82% as of Q4 end.

**【Chief Credit Officer Update】**
- Active loan production surged 100% QoQ to $1.4B, with CRE up 380%, C&I up 56%, and construction up 142%.
- Delinquencies rose 34bps to 0.6%, but nonperforming assets (0.54%) remain modest vs. peers.
- Single large CRE loan (>$90M past due) drove NPA increase, but no charge-off taken.
- Allowance for credit losses at 1.04% of loans, up from 1.01% FY24, reflecting cautious underwriting.

**【Client Experience Update】**
- Launched WaFd Wealth Management with $1B AUM target in 2 years; early momentum positive.
- Digital banking enhancements include direct deposit switching, mobile wire transfers ($10 fee), and consumer account opening in 10 mins.
- Client data platform personalizes experience, e.g., targeting small business loan applicants.
- Net Promoter Score improved to 58 from 17 in 8 years, winning 'Best Bank' in 4 states.

**【Q&A Highlights】**
- **Loan Growth**: Active portfolio expected to grow 8-12% FY26, with $200-300M Q/Q inactive runoff.
- **Margin Outlook**: Spot rate of 2.82% could expand with rate cuts, but lag 1-2 qtrs for full benefit.
- **Deposit Strategy**: Target 20% noninterest-bearing deposits by 2030 (currently 12%), focusing on small business relationships.
- **M&A**: Open to acquisitions but constrained by low valuation and CRA compliance needs.
- **Regulatory Focus**: Advocating for $10M transaction deposit insurance to level playing field vs. G-SIBs.
- **Share Buybacks**: Likely to resume given stock trading below tangible book value.

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