Is WAFD a Buy? What to Consider in 2026
Short answer
The bull case for WaFd (WAFD) rests on Return to loan growth: After more than a year of portfolio contraction, WaFd posted net loan growth in its March 2026 quarter, which management called the headline of the period. Revenue (TTM) is ~$751M. If you believe that thesis holds, the real questions become position sizing and overlap, not timing. The main risk to that view: As a spread lender, WaFd is highly sensitive to interest rates and the shape of the yield curve, which can compress margins and depress deposit-funding economics. Whether WAFD is a buy comes down to whether you believe the thesis. This is informational, not a recommendation, and Walnut is not an investment adviser.
WaFd, Inc. is the parent of WaFd Bank, a Washington state-chartered commercial bank founded in 1917 and headquartered in Seattle. The bank gathers consumer and commercial deposits and lends against residential mortgages, commercial real estate, and small-to-middle-market businesses, holding much of that credit on its own balance sheet as a portfolio lender. After completing the roughly $654 million all-stock acquisition of California-based Luther Burbank Savings in February 2024, WaFd operated across nine western states with total assets of about $27.6 billion, net loans near $20.0 billion, and customer deposits around $21.1 billion (as of March 2026). The investment picture is that of a traditional spread lender: WaFd earns most of its money from the gap between what it pays on deposits and what it collects on loans, so its results track net interest margin, loan growth, and credit costs. In its quarter ended March 2026 the bank returned to overall loan growth after more than a year of contraction, expanded net interest margin to about 2.81%, and kept credit losses very low, while buying back shares and paying a quarterly dividend. The stock trades at a low-double-digit price-to-earnings multiple and near tangible book value, reflecting a market that prices it as a steady, capital-returning regional bank exposed to interest rates and western real estate rather than a high-growth name.
What's the case for buying WAFD?
1. Return to loan growth
After more than a year of portfolio contraction, WaFd posted net loan growth in its March 2026 quarter, which management called the headline of the period. Renewed growth in the roughly $20 billion loan book is the main lever for expanding net interest income if it continues without loosening credit standards.
2. Net interest margin recovery
Net interest margin improved to about 2.81% as funding costs stabilized and the balance sheet repriced. Because spread income drives the bulk of earnings, further margin normalization from a lower rate environment would flow directly to net interest income, though the benefit depends on deposit competition.
3. Strong credit quality and capital returns
Non-performing assets fell to about 0.48% of total assets with net charge-offs of only about $0.6 million in the March 2026 quarter, reflecting a conservative portfolio-lender model. That credit strength supports continued share buybacks (about 2.74 million shares in the quarter) and the $0.27 quarterly dividend.
4. Luther Burbank integration and western footprint
The 2024 Luther Burbank acquisition extended WaFd into California and deepened its western US presence. Realizing cost synergies and cross-selling the enlarged branch network is a multi-year driver, while diversifying the deposit base beyond its Pacific Northwest core.
What are the risks to WAFD?
As a spread lender, WaFd is highly sensitive to interest rates and the shape of the yield curve, which can compress margins and depress deposit-funding economics. Its concentration in western-US residential and commercial real estate exposes it to regional property downturns and to office and multifamily credit stress. Deposit competition and any renewed flight to higher-yielding alternatives could raise funding costs, and integration risk from the Luther Burbank deal remains. Being a smaller regional bank, it also carries the sector-wide risks highlighted since 2023, including deposit-confidence shocks and tighter regulatory capital and liquidity expectations.
How is WAFD valued? (as of JULY 2026)
Snapshot for WAFD as of July 2026, sourced from Yahoo Finance and may be delayed. Valuation figures move with price and earnings; verify the current numbers with your broker before deciding.
- Market cap: ~$2.8B
- Revenue (TTM): ~$751M
- Net income (TTM): ~$238M
- EPS (TTM): ~$3.05
- P/E ratio: ~12x
- Dividend yield: ~2.85%
WaFd trades at a low-double-digit price-to-earnings multiple and near its tangible book value of about $29.91 per share (as of December 2025), a typical valuation for a steady regional bank. Total assets were about $27.6 billion with net loans near $20.0 billion and deposits around $21.1 billion as of March 2026. The quarterly dividend of $0.27 per share (about $1.08 annualized) reflects the bank's capital-return posture alongside ongoing buybacks.
How do you decide if WAFD is a buy?
Rather than asking whether WAFD is a buy in the abstract, it tends to help to answer four questions:
- Thesis: do you believe the case above, and is it still true today?
- Time horizon: a single stock can be volatile, so a longer horizon absorbs more of the swings.
- Position sizing: a thesis can be right and the sizing still wrong; decide how much of your portfolio one name should be.
- Overlap: check whether you already hold WAFD indirectly through an index or sector ETF before adding more.
For the full picture, see the WAFD stock guide (what the company does, the ETFs that hold it, similar stocks, and the themes it fits). In Walnut you can ask its AI about WAFD against your real portfolio and see your actual exposure before deciding.
The bottom line on WAFD
The bottom line: WaFd's story right now is Return to loan growth, with revenue (ttm) at ~$751M. If you believe that narrative continues, the call is about sizing WAFD sensibly and checking overlap with what you own; if you doubt it (the risk: as a spread lender, WaFd is highly sensitive to interest rates and the shape of the yield curve, which can compress margins and depress deposit-funding economics.), it is not for you. Decide from the thesis, not the ticker. Walnut is not an investment adviser.
Build a basket around WAFD with Walnut
Use WaFd as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
Is WAFD a good stock to buy right now?
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The case for WaFd right now is Return to loan growth, with revenue (ttm) at ~$751M. If you believe that thesis holds, WAFD is a way to own it and the real questions are sizing and overlap, not timing; the main risk to that view is as a spread lender, WaFd is highly sensitive to interest rates and the shape of the yield curve, which can compress margins and depress deposit-funding economics. So it comes down to whether you believe the thesis. Walnut is not an investment adviser and this is not a recommendation.
What does WaFd do?
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WaFd, Inc.
What are the main risks of WAFD?
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As a spread lender, WaFd is highly sensitive to interest rates and the shape of the yield curve, which can compress margins and depress deposit-funding economics. Its concentration in western-US residential and commercial real estate exposes it to regional property downturns and to office and multifamily credit stress. Deposit competition and any renewed flight to higher-yielding alternatives could raise funding costs, and integration risk from the Luther Burbank deal remains. Being a smaller regional bank, it also carries the sector-wide risks highlighted since 2023, including deposit-confidence shocks and tighter regulatory capital and liquidity expectations.
What does WaFd, Inc. do?
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WaFd, Inc. is the holding company for WaFd Bank (formerly Washington Federal), a Seattle-based commercial bank founded in 1917. It takes deposits and lends against residential mortgages, commercial real estate, and small-to-middle-market businesses across nine western US states, holding much of that credit on its own balance sheet.
How does WAFD make money?
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Like most banks, WaFd earns most of its income from net interest income, the spread between the interest it collects on loans and investments and the interest it pays on deposits and borrowings. It also earns fee income from deposit accounts, insurance products, and other services.
Is WAFD profitable?
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Yes. WaFd reported net income of about $65.5 million in its quarter ended March 2026 and roughly $238 million over the trailing twelve months, with diluted EPS around $3.05 (as of July 2026). Credit quality was strong, with non-performing assets near 0.48% of total assets.
Does WAFD pay a dividend?
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Yes. WaFd declared a quarterly dividend of $0.27 per share, or about $1.08 annualized, which works out to a yield of roughly 2.85% (as of July 2026). The bank also repurchased about 2.74 million shares in its March 2026 quarter as part of its capital-return program.
Walnut is informational and is not an investment adviser. This page is educational and not a recommendation to buy or sell WAFD; figures are approximate and dated, and your own situation, time horizon, and risk tolerance should drive any decision. Verify current data before investing.