• In January 2026, WaFd, Inc. reported first-quarter fiscal 2026 results showing higher net interest income of US$171.11 million and net income of US$64.2 million, alongside increased net charge-offs of US$3.7 million and progress on a long-running share repurchase program totaling about US$1.83 billion since 1995.
• Separately, the FDIC’s Supervision Appeals Review Committee upgraded WaFd Bank’s Community Reinvestment Act rating to “Satisfactory,” easing a regulatory overhang that had raised questions about the bank’s ability to expand its branch footprint and pursue mergers.
• With this backdrop of stronger earnings and a lifted CRA constraint, we will examine how the regulatory upgrade influences WaFd’s investment narrative.

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What Is WaFd's Investment Narrative?

To own WaFd today, you need to be comfortable with a fairly traditional regional bank story that leans on steady net interest income, disciplined costs and ongoing capital returns. The latest quarter delivered higher net interest income of US$171.11 million and net income of US$64.2 million, which helps underpin that thesis, even as net charge‑offs ticked up to US$3.7 million and credit quality stays in focus. The long-running buyback, now totaling about US$1.83 billion since 1995, continues to support per-share metrics but is not, on its own, a game changer. What feels more important in the near term is the FDIC’s upgrade of WaFd Bank’s CRA rating to “Satisfactory,” which lifts a regulatory constraint that had cast doubt on future branch growth and merger activity. That shift could reframe both the upside catalysts and the regulatory risk investors worry about most.

However, one key credit trend may matter more than the headline CRA upgrade. Despite retreating, WaFd's shares might still be trading 13% above their fair value. Discover the potential downside here.

Exploring Other Perspectives

Four Simply Wall St Community estimates span roughly US$22 to about US$37.70 per share, underlining how far apart individual views can be. Set that against rising net charge offs and a recently lifted CRA overhang, and you start to see why different investors may read WaFd’s earnings strength and risk profile in very different ways.

Explore 4 other fair value estimates on WaFd - why the stock might be worth 33% less than the current price!

Build Your Own WaFd Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your WaFd research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free WaFd research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate WaFd's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.