WAFD INC 10-Q

Item 1. Financial Statements WAFD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) December 31, 2025 September 30, 2025 (In thousands, except share data) ASSETS Cash and cash equivalents $ 734,915 $ 657,310 Available-for-sale securities, at fair value 4,142,285 3,533,201 Held-to-maturity securities, at amortized cost 764,794 645,802 Loans receivable, net of allowance for loan losses of $ 199,539 and $ 199,720 19,848,156 20,088,618 Interest receivable 97,650 98,589 Premises and equipment, net 270,552 261,271 Real estate owned 8,738 11,084 FHLB stock 118,218 88,068 Bank owned life insurance 277,121 275,159 Intangible assets, including goodwill of $ 416,247 and $ 414,722 443,085 442,093 Federal and state income tax assets 102,377 112,784 Other assets 477,853 485,720 $ 27,285,744 $ 26,699,699 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities Customer accounts Transaction deposit accounts $ 12,865,974 $ 12,306,532 Time deposit accounts 8,550,996 9,131,104 21,416,970 21,437,636 Borrowings 2,436,532 1,765,604 Junior subordinated debentures 51,879 51,645 Advance payments by borrowers for taxes and insurance 20,688 59,845 Federal and state income tax liabilities 5,124 — Accrued expenses and other liabilities 325,144 345,394 24,256,337 23,660,124 Commitments and contingencies (see Note I ) Shareholders’ equity Preferred stock, $ 1.00 par value, 5,000,000 shares authorized; 300,000 and 300,000 shares issued; 300,000 and 300,000 shares outstanding 300,000 300,000 Common stock, $ 1.00 par value, 300,000,000 shares authorized; 154,616,464 and 154,408,001 shares issued; 76,448,351 and 78,186,520 shares outstanding 154,616 154,408 Additional paid-in capital 2,165,709 2,163,276 Accumulated other comprehensive income (loss), net of taxes 61,904 56,950 Treasury stock, at cost; 78,168,113 and 76,221,481 shares ( 1,798,702 ) ( 1,740,761 ) Retained earnings 2,145,880 2,105,702 3,029,407 3,039,575 $ 27,285,744 $ 26,699,699 SEE NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS 3 Table of Contents WAFD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended December 31, 2025 2024 (In thousands, except share data) INTEREST INCOME Loans receivable $ 264,207 $ 286,597 Mortgage-backed securities 38,902 18,337 Investment securities and cash equivalents 19,387 40,183 322,496 345,117 INTEREST EXPENSE Customer accounts 136,214 162,150 Borrowings and junior subordinated debentures 15,171 27,536 151,385 189,686 Net interest income 171,111 155,431 Provision for credit losses 3,500 — Net interest income after provision 167,611 155,431 NON-INTEREST INCOME Gain on sale of investment securities — 20 Gain on termination of hedging derivatives 24 5 Loan fee income 1,354 1,345 Deposit fee income 7,858 7,046 Other income 11,019 7,286 Total non-interest income 20,255 15,702 NON-INTEREST EXPENSE Compensation and benefits 54,190 59,927 Occupancy 11,170 10,788 FDIC insurance premiums 5,400 4,850 Product delivery 6,574 5,785 Information technology 14,384 14,192 Other expense 14,003 15,769 Total non-interest expense 105,721 111,311 Gain (loss) on real estate owned, net 156 429 Income before income taxes 82,301 60,251 Income tax expense 18,105 12,984 Net income 64,196 47,267 Dividends on preferred stock 3,656 3,656 Net income available to common shareholders $ 60,540 $ 43,611 PER SHARE DATA Basic earnings per common share $ 0.79 $ 0.54 Diluted earnings per common share 0.79 0.54 Dividends paid on common stock per share 0.27 0.26 Basic weighted average shares outstanding 76,969,729 81,294,227 Diluted weighted average shares outstanding 77,015,554 81,401,599 SEE NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS 4 Table of Contents WAFD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended December 31, 2025 2024 (In thousands) Net income $ 64,196 $ 47,267 Other comprehensive income (loss) net of tax: Net unrealized gain (loss) during the period on available-for-sale investment securities, net of tax of $( 2,342 ) and $ 5,793 7,582 ( 18,754 ) Reclassification adjustment of net (gain) loss from sale of available-for-sale securities included in net income, net of tax of $ 5 and $ 76 ( 15 ) ( 246 ) Net unrealized gain (loss) from investment securities, net of reclassification adjustment 7,567 ( 19,000 ) Net unrealized gain (loss) during the period on borrowings cash flow hedges, net of tax of $ 1,301 and $( 5,101 ) ( 4,213 ) 16,498 Reclassification adjustment of net (gain) loss included in net income during the period from hedging derivatives, net of tax of $( 494 ) and $( 1 ) 1,600 4 Net unrealized gain (loss) in cash flow hedging instruments, net of reclassification adjustment ( 2,613 ) 16,502 Other comprehensive income (loss) 4,954 ( 2,498 ) Comprehensive income $ 69,150 $ 44,769 SEE NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS 5 Table of Contents WAFD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) (in thousands) Preferred Stock Common Stock Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total Balance at October 1, 2025 $ 300,000 $ 154,408 $ 2,163,276 $ 2,105,702 $ 56,950 $ ( 1,740,761 ) $ 3,039,575 Net income — — — 64,196 — — 64,196 Other comprehensive loss — — — — 4,954 — 4,954 Dividends on common stock ($ 0.27 per share) — — — ( 20,362 ) — — ( 20,362 ) Dividends on preferred stock ($ 12.1875 per share) — — — ( 3,656 ) — — ( 3,656 ) Proceeds from stock issuances — 24 648 — — — 672 Stock-based compensation expense — 184 1,785 — — 76 2,045 Treasury stock purchased — — — — — ( 58,017 ) ( 58,017 ) Balance at December 31, 2025 $ 300,000 $ 154,616 $ 2,165,709 $ 2,145,880 $ 61,904 $ ( 1,798,702 ) $ 3,029,407 (in thousands) Preferred Stock Common Stock Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total Balance at October 1, 2024 $ 300,000 $ 154,007 $ 2,150,675 $ 1,978,898 $ 55,851 $ ( 1,639,131 ) $ 3,000,300 Net income — — — 47,267 — — 47,267 Other comprehensive income — — — — ( 2,498 ) — ( 2,498 ) Dividends on common stock ($ 0.26 per share) — — — ( 20,923 ) — — ( 20,923 ) Dividends on preferred stock ($ 12.1875 per share) — — — ( 3,656 ) — — ( 3,656 ) Proceeds from stock issuances — 89 2,616 — — — 2,705 Stock-based compensation expense — 152 1,638 — — 61 1,851 Treasury stock purchased — — — — — ( 3,410 ) ( 3,410 ) Balance at December 31, 2024 $ 300,000 $ 154,248 $ 2,154,929 $ 2,001,586 $ 53,353 $ ( 1,642,480 ) $ 3,021,636 SEE NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS 6 Table of Contents WAFD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months Ended December 31, 2025 2024 (In thousands) CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 64,196 $ 47,267 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization, accretion and other, net ( 1,561 ) 44,350 Stock-based compensation expense 2,045 1,851 Provision (release) for credit losses 3,500 — Loss (gain) on sale of investment securities — ( 20 ) Net realized (gain) loss on sales of premises, equipment, and real estate owned ( 3,825 ) ( 433 ) Impairment loss on premises and equipment — 34 Decrease (increase) in accrued interest receivable 939 ( 320 ) Decrease (increase) in federal and state income tax receivable 8,877 8,189 Decrease (increase) in cash surrender value of bank owned life insurance ( 1,962 ) ( 1,840 ) Decrease (increase) in other assets 8,127 ( 25,136 ) Increase (decrease) in federal and state income tax liabilities 5,124 — Increase (decrease) in accrued expenses and other liabilities ( 24,980 ) ( 24,512 ) Net cash provided by (used in) operating activities 60,480 49,430 CASH FLOWS FROM INVESTING ACTIVITIES Origination of loans and principal repayments, net 253,315 ( 46,171 ) Loans purchased ( 10,198 ) ( 133,641 ) FHLB stock purchased ( 177,116 ) ( 97,944 ) FHLB stock redeemed 146,966 65,166 Available-for-sale securities purchased ( 724,749 ) ( 310,999 ) Principal payments and maturities of available-for-sale securities 128,421 114,882 Proceeds from sales of available-for-sale securities — 797 Held-to-maturity securities purchased ( 141,283 ) ( 114,182 ) Principal payments and maturities of held-to-maturity securities 22,428 13,786 Proceeds from sales of real estate owned 2,963 1,846 Equity method investments purchased — ( 3,000 ) Net cash received (paid) in business combinations ( 2,000 ) ( 360 ) Proceeds from sales of premises and equipment 6 1,689 Premises and equipment purchased and REO improvements ( 10,441 ) ( 6,446 ) Net cash provided by (used in) investing activities ( 511,688 ) ( 514,577 ) CASH FLOWS FROM FINANCING ACTIVITIES Net increase (decrease) in customer accounts ( 20,666 ) 64,807 Proceeds from borrowings 3,875,750 2,168,400 Repayments of borrowings ( 3,205,751 ) ( 2,575,001 ) Proceeds from stock-based awards 488 2,510 Dividends paid on common stock ( 20,362 ) ( 20,923 ) Dividends paid on preferred stock ( 3,656 ) ( 3,656 ) Proceeds from employee stock purchases 184 195 Treasury stock purchased ( 58,017 ) ( 3,410 ) Increase (decrease) in advances payments by borrowers for taxes and insurance ( 39,157 ) ( 41,142 ) Net cash provided by (used in) financing activities 528,813 ( 408,220 ) Increase (decrease) in cash and cash equivalents 77,605 ( 873,367 ) Cash, cash equivalents and restricted cash at beginning of period 657,310 2,381,102 Cash, cash equivalents and restricted cash at end of period $ 734,915 $ 1,507,735 (CONTINUED) SEE NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS 7 Table of Contents WAFD, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months Ended December 31, 2025 2024 (In thousands) SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Non-cash investing activities Real estate acquired through foreclosure $ 7 $ — Non-cash financing activities Preferred stock dividend payable 3,656 3,656 Cash paid (received) during the period for Interest 116,362 228,660 Income tax 125 200 SEE NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS 8 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE A – Summary of Significant Accounting Policies Company and Nature of Operations - WaFd Bank, a federally-insured Washington state chartered commercial bank (the “Bank”), was founded on April 24, 1917 in Ballard, Washington and is engaged primarily in providing lending, depository, insurance and other banking services to consumers, small, mid-sized and large businesses, and owners and developers of commercial real estate. The business of the Bank consists primarily of accepting deposits from the general public and investing these funds in loans of various types, including construction loans, land acquisition and development loans, loans on multi-family, commercial real estate and other income producing properties, and business loans, including U.S. Small Business Administration (“SBA”) loans. In January 2025, the Bank announced it will no longer originate consumer single family home loans and home equity lines of credit. Our existing consumer home loans still make up a significant portion of our loan portfolio. The Bank also invests in certain United States government and agency obligations and other investments permitted by applicable laws and regulations. Effective September 25, 2025, the Bank formally changed its name from Washington Federal Bank to WaFd Bank by filing its Second Amended and Restated Articles of Incorporation with the Washington Secretary of State. WaFd, Inc., a Washington corporation, was formed as the Bank’s holding company in November, 1994. On September 27, 2023, Articles of Amendment were filed with the Washington Secretary of State to change the name of Washington Federal, Inc. to WaFd, Inc. This change was effective on September 29, 2023. As used throughout this document, the terms “WaFd” or the “Company” or “we” or “us” and “our” refer to WaFd, Inc. and its consolidated subsidiaries, and the term “Bank” refers to the operating subsidiary, WaFd Bank. The Company is headquartered in Seattle, Washington. The Bank conducts its activities through a network of 208 bank branches located in Washington, Oregon, Idaho, Utah, Arizona, Nevada, New Mexico, California and Texas. Basis of Presentation - The Company has prepared the consolidated unaudited interim financial statements included in this report. All intercompany transactions and accounts have been eliminated in consolidation. The preparation of financial statements, in conformity with accounting principles generally accepted in the United States of America (“GAAP”), requires management to make estimates and assumptions that affect amounts reported in the financial statements. Actual results could differ from these estimates. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation are reflected in the interim financial statements. The information included in this Form 10-Q should be read in conjunction with the financial statements and related notes contained in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2025 filed with the Securities and Exchange Commission ("SEC") on November 18, 2025 ("2025 Annual Financial Statements"). Interim results are not necessarily indicative of results for a full year. Summary of Significant Accounting Policies - The significant accounting policies used in preparation of the Company's consolidated financial statements are disclosed in its 2025 Annual Financial Statements. There have not been any significant changes in the Company's significant accounting policies compared to those contained in its 2025 Annual Financial Statements. Business Combinations - The Company applies the acquisition method of accounting for business combinations. Under the acquisition method, the acquiring entity recognizes the assets acquired and liabilities assumed at their acquisition date fair values. Management utilizes prevailing valuation techniques appropriate for the asset or liability being measured in determining these fair values. This method often involves estimates based on third party valuations based on discounted cash flow analyses or other valuation techniques, all of which are inherently subjective. Any excess of the purchase price over the fair value of net assets and other identifiable intangible assets acquired is recorded as goodwill. Assets acquired and liabilities assumed from contingencies must also be recognized at fair value if the fair value can be determined during the measurement period. Acquisition-related costs, including conversion and restructuring charges, are expensed as incurred. Fair values are subject to refinement over the measurement period, not to exceed one year after the closing date. Restricted Cash Balances - The Company was not required to maintain cash reserve balances with the Federal Reserve Bank as of December 31, 2025. As of December 31, 2025 and September 30, 2025, the Company held counterparty cash collateral of $ 109,750,000 and $ 118,400,000 , respectively, related to derivative contracts. 9 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Equity Securities - The Company records equity securities within Other assets in its Consolidated Statements of Financial Condition. These equity investments are accounted for under different methods. • Low-income housing tax credit ("LIHTC") investments are accounted for under the proportional amortization method. Under this method, the initial book value (gross commitment amount) of the investment is amortized over time in proportion to the projected tax benefits to be received. This amortization is a component of income tax expense. See Note I for more information about the Company's LIHTC investments. • For equity investments where the Company has significant influence, the Company applies the equity method of accounting, which adjusts the carrying value of the investment to recognize a proportionate share of the financial results of the investment entity, regardless of whether any distribution is made. Any adjustments to the fair value of these investments are recorded in Other income in the Consolidated Statements of Operations. • For certain nonmarketable equity investments where the equity method of accounting is not applicable, the Company applies the fair value method. Any adjustments to the fair value of these investments are recorded in Other income in the Consolidated Statements of Operations. Fair value is determined by reference to readily determinable market values, if applicable. As these investments do not have readily determinable fair values, they are generally accounted for at cost minus impairment, if any, plus or minus changes resulting from observable transactions involving the same or similar investments from the same issuer. This practice is referred to as the measurement alternative. • Equity investments in qualified real estate funds can use the net asset value ("NAV") expedient for fair value measurement. Under this method, the NAV is determined by the fund as fair value for the investment. At December 31, 2025, equity investments held by the Company and recorded at NAV had a carrying amount of $ 36,477,638 and a remaining unfunded commitment of $ 11,585,741 . These NAV based investments cannot be transferred without consent and we do not have redemption rights. Equity investments measured at NAV are not classified in the fair value hierarchy. Allowance for Credit Losses (Loans Receivable) - The Company maintains an allowance for credit losses (“ACL”) for the expected credit losses of the loan portfolio as well as unfunded loan commitments. The amount of ACL is based on ongoing, quarterly assessments by management. The current expected credit loss methodology (“CECL”) requires an estimate of the credit losses expected over the life of an exposure (or pool of exposures). The ACL consists of the allowance for loan losses and the reserve for unfunded commitments. The estimate of expected credit losses under the CECL methodology is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. We then consider whether the historical loss experience should be adjusted for asset-specific risk characteristics or current conditions at the reporting date that did not exist over the period that historical experience was based for each loan type. Finally, we consider forecasts about future economic conditions or changes in collateral values that are reasonable and supportable. Portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine its ACL. The Company has designated two loan portfolio segments, commercial loans and consumer loans. These loan portfolio segments are further disaggregated into classes, which represent loans of similar type, risk characteristics, and methods for monitoring and assessing credit risk. The commercial loan portfolio segment is disaggregated into five classes: multi-family, commercial real estate, commercial and industrial, construction, and land acquisition and development. The risk of loss for the commercial loan portfolio segment is generally most indicated by the credit risk rating assigned to each borrower. Commercial loan risk ratings are determined by experienced senior credit officers based on specific facts and circumstances and are subject to periodic review by an independent internal team of credit specialists. The consumer loan portfolio segment is disaggregated into five classes: single-family-residential mortgage, custom construction, consumer lot loans, home equity lines of credit, and other consumer. The risk of loss for the consumer loan portfolio segment is generally most indicated by delinquency status and general economic factors. Each commercial and consumer loan portfolio class may also be further segmented based on risk characteristics. For most loan portfolio classes, the historical loss experience is determined using a cohort methodology. This method pools loans into groups (“cohorts”) sharing similar risk characteristics and tracks each cohort’s net charge-offs over the lives of the loans to calculate a historical loss rate. The historical loss rates for each cohort are then averaged to calculate an overall historical loss rate which is applied to the current loan balance to arrive at the quantitative baseline portion of the allowance for credit losses for the respective loan portfolio class. For certain loan portfolio classes, the Company determined there was not sufficient historical loss information to calculate a meaningful historical loss rate using the cohort methodology. For any such 10 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) loan portfolio class, the weighted-average remaining maturity (“WARM”) methodology is being utilized until sufficient historical loss data is obtained. The WARM method multiplies an average annual loss rate by the expected remaining life of the loan pool to arrive at the quantitative baseline portion of the allowance for credit losses for the respective loan portfolio class. The Company also considers qualitative adjustments to the historical loss rate for each loan portfolio class. The qualitative adjustments for each loan class consider the conditions over the period from which historical loss experience was based and are split into two components: 1) asset or class specific risk characteristics or current conditions at the reporting date related to portfolio credit quality, remaining payments, volume and nature, credit culture and management, business environment or other management factors and 2) reasonable and supportable forecast of future economic conditions and collateral values. The Company performs a quarterly asset quality review which includes a review of forecasted gross charge-offs and recoveries, nonperforming assets, criticized loans, risk rating migration, delinquencies, etc. The asset quality review is performed by management and the results are used to consider a qualitative overlay to the quantitative baseline. The second qualitative adjustment noted above, economic conditions and collateral values, encompasses a one-year reasonable and supportable forecast period. The overlay adjustment for the reasonable and supportable forecast assumes an immediate reversion after the one-year forecast period to historical loss rates for the remaining life of the respective loan pool. The Company may establish a specific reserve for individually evaluated loans that do not share similar risk characteristics with the loans included in each respective loan pool if management deems it appropriate. If this occurs, these individually evaluated loans are removed from their respective pools. These loans typically represent collateral dependent loans but may also include other non-performing loans. Allowance for Credit Losses (Held-to-Maturity Debt Securities) - For held-to-maturity (“HTM”) debt securities, the Company is required to utilize a CECL methodology to estimate expected credit losses. Substantially all of the Company’s HTM debt securities are issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government and have a long history of zero credit loss. See Note F "Fair Value Measurements" for more information about HTM debt securities. Allowance for Credit Losses (Available-for-Sale Debt Securities) - The impairment model for available-for-sale (“AFS”) debt securities differs from the CECL methodology applied for HTM debt securities because AFS debt securities are measured at fair value rather than amortized cost. For AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either criteria is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities where neither of the criteria are met, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the credit rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited to the amount that the fair value is less than the amortized cost basis. Any remaining discount that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as a provision for (or recapture of) credit losses. Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. See Note F "Fair Value Measurements" for more information about AFS debt securities. Accrued Interest Receivable - The Company made the following elections regarding accrued interest receivable (“AIR”): • Presenting accrued interest receivable balances separately from their underlying instruments within the consolidated statements of financial condition. • Excluding accrued interest receivable that is included in the amortized cost of financing receivables from related disclosure requirements. • Continuing the Company's policy to write off accrued interest receivable by reversing interest income in cases where the Company does not reasonably expect to receive payment. • Not measuring an allowance for credit losses for accrued interest receivable due to the Company’s policy of writing off uncollectible accrued interest receivable balances in a timely manner, as described above. 11 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Non-Accrual Loans - Loans are placed on non-accrual status when, in the judgment of management, the probability of collection of interest is deemed to be insufficient to warrant further accrual. When a loan is placed on non-accrual status, previously accrued but unpaid interest is deducted from interest income. The Bank does not accrue interest on loans 90 days or more past due. If payment is made on a loan so that the loan becomes less than 90 days past due, and the Bank expects full collection of principal and interest, the loan is returned to full accrual status. Any interest ultimately collected is credited to income in the period of recovery. A loan is charged-off when the loss is estimable and it is confirmed that the borrower is not expected to be able to meet contractual obligations. If a consumer loan is on non-accrual status before being modified, it will stay on non-accrual status following restructuring until it has been performing for at least six months, at which point it may be moved to accrual status. For commercial loans, six consecutive payments on newly restructured loan terms are required prior to returning the loan to accrual status. In some instances, after the required six consecutive payments are made, management will conclude that collection of the entire principal and interest due is still in doubt. In those instances, the loan will remain on non-accrual status. Collateral-Dependent Loans - A financial asset is considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of loans and leases deemed collateral-dependent, the Company elected the practical expedient to estimate expected credit losses based on the collateral’s fair value less cost to sell. In most cases, the Company records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less cost to sell. Substantially all of the collateral consists of various types of real estate including residential properties; commercial properties such as retail centers, office buildings, and lodging; agriculture land; and vacant land. Off-Balance-Sheet Credit Exposures - Off-balance-sheet credit exposures for the Company include unfunded loan commitments and letters of credit from the Federal Home Loan Banks of both Des Moines and San Francisco ("FHLB-DM" and "FHLB-SF", respectively), which may be used as collateral for public funds deposits and as confirming letters of credit on letters of credit issued by the Bank. The reserve for unfunded commitments is recognized as a liability (other liabilities in the consolidated statements of financial condition), with adjustments to the reserve recognized through provision for credit losses in the consolidated statements of income. The reserve for unfunded commitments represents the expected lifetime credit losses on off-balance sheet obligations such as commitments to extend credit and standby letters of credit. However, a liability is not recognized for commitments that are unconditionally cancellable by the Company. The reserve for unfunded commitments is determined by estimating future draws, including the effects of risk mitigation actions, and applying the expected loss rates on those draws. Loss rates are estimated by utilizing the same loss rates calculated for the allowance for credit losses related to the respective loan portfolio class. See Note I “Commitments and Contingencies” for more information. Intangible Assets - Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. Other intangibles, including core deposit intangibles, are acquired assets that lack physical substance but can be distinguished from goodwill. Goodwill is not amortized but is evaluated for potential impairment on an annual basis and between tests if there are applicable circumstances such as material adverse changes in legal, business, regulatory and economic factors. We have determined our goodwill balance is all related to a single reporting unit and perform a quantitative impairment assessment. An impairment loss is recorded when the carrying amount of goodwill exceeds its implied fair value. If circumstances indicate that the carrying value of the assets may not be recoverable, an impairment charge could be recorded. Other intangible assets are amortized over their estimated lives and are subject to impairment testing when events or circumstances change. The Company performs a goodwill impairment assessment annually and continuously monitors for triggering events and circumstances that could negatively impact the key assumptions in determining the fair value of goodwill. Apart from the impacts of larger transactions, the Company might experience minor increases in intangibles due to acquisitions carried out by its subsidiary, WAFD Insurance Group, Inc. 12 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) The table below provides detail regarding the Company's intangible assets. Goodwill Core Deposit and Other Intangibles Total (In thousands) Balance at September 30, 2025 $ 414,722 $ 27,371 $ 442,093 Additions 1,525 1,525 3,050 Amortization — ( 2,058 ) ( 2,058 ) Balance at December 31, 2025 $ 416,247 $ 26,838 $ 443,085 The table below presents the estimated future amortization expense of other intangibles for the next five years as of December 31, 2025. Fiscal Year Expected Expense (In thousands) 2026 $ 5,389 2027 5,709 2028 5,347 2029 5,254 2030 2,470 Thereafter 2,669 Total Intangible Assets $ 26,838 Subsequent Events - The Company has evaluated events and transactions through the date the consolidated financial statements were issued for potential recognition or disclosure and determined that there have been no events or transactions that have occurred that would require disclosure. NOTE B – New Accounting Pronouncements In October 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-06 Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative to clarify or improve disclosure and presentation requirements on a variety of topics and align the requirements in the FASB accounting standard codification with the Securities and Exchange Commission regulations. The amendments will be effective for the Company only if the SEC removes the related disclosure requirement from its existing regulations no later than June 30, 2027. If the SEC timely removes such a related requirement from its existing regulations, the corresponding amendments within the ASU will become effective for the Company on the same date with early adoption permitted. The Company does not expect the amendments in this update to have a material impact on our consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses . This accounting standards update will require public companies to disclose, in the notes to financial statements, specified information about certain costs and expenses at each interim and annual reporting period. As clarified by the FASB in ASU 2025-01, the amendments of ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and for quarterly reporting beginning after December 15, 2027. Early adoption is permitted. The Company does not expect this ASU to have a material effect on our consolidated financial statements. 13 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE C – Dividends and Share Repurchases On December 5, 2025, the Company paid a regular dividend on its common stock of $ 0.27 per share, which represented the 171st consecutive quarterly cash dividend. Dividends per share were $ 0.27 and $ 0.26 for the quarters ended December 31, 2025 and 2024, respectively. For the three months ended December 31, 2025, the Company repurchased 1,950,013 shares of its common stock at an average per share price of $ 29.75 . Purchases were made both under the Company's Board of Directors (“Board”) approved publicly announced stock repurchase program, and outside the repurchase program, primarily consisting of the forfeiture and cancellation of shares upon vesting of restricted stock awards to pay required tax withholding obligations, and shares underlying stock options surrendered in payment of the exercise price and to pay required tax withholding obligations. As of December 31, 2025, there are 6,256,136 remaining shares authorized to be repurchased under the current Board approved stock repurchase program. The Company pays a cash dividend, if declared by the Board, of $ 12.1875 per share on its Series A Preferred Stock quarterly on January 15, April 15, July 15 and October 15. This dividend equals $ 0.30468750 per depositary share (each dividend, a "Series A Preferred Dividend"). 14 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE D – Loans Receivable For a detailed discussion of loans and credit quality, including accounting policies and the CECL methodology used to estimate the allowance for credit losses, see Note A "Summary of Significant Accounting Policies" above. The Company's loans held for investment are divided into two portfolio segments, commercial loans and consumer loans, with each of those segments further split into loan classes for purposes of estimating the allowance for credit losses. The following table is a summary of loans receivable by loan portfolio segment and class. December 31, 2025 September 30, 2025 Gross loans by category (In thousands) (In thousands) Commercial loans Multi-family $ 4,698,342 22.4 % $ 4,718,480 22.2 % Commercial real estate 3,561,865 16.9 3,604,600 16.9 Commercial & industrial 2,530,666 12.0 2,392,685 11.3 Construction 1,742,158 8.3 1,756,890 8.3 Land - acquisition & development 177,768 0.8 179,099 0.8 Total commercial loans 12,710,799 60.4 12,651,754 59.5 Consumer loans Single-family residential 7,823,718 37.2 8,053,771 37.8 Construction - custom 105,576 0.5 150,237 0.7 Land - consumer lot loans 83,046 0.4 89,298 0.4 HELOC 261,240 1.2 267,871 1.3 Consumer 52,701 0.3 61,461 0.3 Total consumer loans 8,326,281 39.6 8,622,638 40.5 Total gross loans 21,037,080 100 % 21,274,392 100 % Less: Allowance for credit losses on loans 199,539 199,720 Loans in process 783,233 773,606 Net deferred fees, costs and discounts 206,152 212,448 Total loan contra accounts 1,188,924 1,185,774 Net loans $ 19,848,156 $ 20,088,618 The Company elected to exclude accrued interest receivable from the amortized cost basis of loans for disclosure purposes and from the calculations of estimated credit losses. As of December 31, 2025 and September 30, 2025, AIR for loans totaled $ 80,736,000 and $ 85,444,000 , respectively, and is included in the Interest receivable line item balance on the Company’s consolidated statements of financial condition. As of December 31, 2025, loans in the amount of $ 13,699,000,000 were pledged to secure borrowings and available lines of credit. None of the agencies to which we have pledged loans have the right to sell or re-pledge them. 15 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) The following table sets forth the amortized cost basis of non-accrual loans and loans 90 days or more past due and accruing. December 31, 2025 September 30, 2025 (In thousands, except ratio data) Non-accrual Non-accrual with no ACL 90 days or more past due and accruing Non-accrual Non-accrual with no ACL 90 days or more past due and accruing Commercial loans Multi-family $ 31,710 $ — $ — $ 19,121 $ — $ — Commercial real estate 68,501 — — 69,972 — — Commercial & industrial 58,180 — — 11,047 — — Construction 3,400 — — 3,400 — — Land - acquisition & development — — — — — — Total commercial loans 161,791 — — 103,540 — — Consumer loans Single-family residential 26,579 — — 23,741 — — Construction - custom 2,054 — — 760 — — Land - consumer lot loans 270 — — 23 — — HELOC 481 — — 412 — — Consumer 173 — — 152 — — Total consumer loans 29,557 — — 25,088 — — Total non-accrual loans $ 191,348 $ — $ — $ 128,628 $ — $ — % of total loans 0.95 % 0.63 % The Company recognized interest income on non-accrual loans of approximately $ 540,000 in the three months ended December 31, 2025 as a result of the collection of past due amounts. If these loans had been on accrual status and performed according to their original contract terms, the Company would have recognized interest income of approximately $ 2,124,000 for the three months ended December 31, 2025. Interest cash flows collected on non-accrual loans vary from period to period as those loans are brought current or are paid off. 16 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) The following tables provide details regarding loan delinquencies by loan portfolio and class. December 31, 2025 Days Delinquent Based on $ Amount of Loans % based on $ Type of Loan Loans Receivable (Amortized Cost) Current 30 60 90+ Total Delinquent (In thousands, except ratio data) Commercial Loans Multi-family $ 4,617,085 $ 4,579,476 $ 9,171 $ 7,685 $ 20,753 $ 37,609 0.81 % Commercial real estate 3,547,626 3,480,995 86 372 66,173 66,631 1.88 Commercial & industrial 2,524,486 2,463,687 6,148 2,684 51,967 60,799 2.41 Construction 1,043,910 1,040,237 273 — 3,400 3,673 0.35 Land - acquisition & development 146,548 146,548 — — — — — Total commercial loans 11,879,655 11,710,943 15,678 10,741 142,293 168,712 1.42 Consumer Loans Single-family residential 7,709,942 7,669,230 10,631 4,892 25,189 40,712 0.53 Construction - custom 58,371 56,316 — — 2,055 2,055 3.52 Land - consumer lot loans 82,490 82,075 89 56 270 415 0.50 HELOC 264,462 262,372 1,463 189 438 2,090 0.79 Consumer 52,775 52,369 156 71 179 406 0.77 Total consumer loans 8,168,040 8,122,362 12,339 5,208 28,131 45,678 0.56 Total Loans $ 20,047,695 $ 19,833,305 $ 28,017 $ 15,949 $ 170,424 $ 214,390 1.07 % Delinquency % 98.93 % 0.14 % 0.07 % 0.86 % 1.07 % September 30, 2025 Days Delinquent Based on $ Amount of Loans % based on $ Type of Loan Loans Receivable (Amortized Cost) Current 30 60 90+ Total Delinquent (In thousands, except ratio data) Commercial Loans Multi-family $ 4,631,321 $ 4,610,677 $ — $ 12,482 $ 8,162 $ 20,644 0.45 % Commercial real estate 3,588,950 3,537,909 87 912 50,042 51,041 1.42 Commercial & industrial 2,386,363 2,385,178 52 1,088 45 1,185 0.05 Construction 1,105,101 1,105,101 — — — — — Land - acquisition & development 139,922 139,922 — — — — — Total commercial loans 11,851,657 11,778,787 139 14,482 58,249 72,870 0.61 Consumer Loans Single-family residential 7,936,931 7,890,843 16,639 6,176 23,273 46,088 0.58 Construction - custom 78,243 77,483 — — 760 760 0.97 Land - consumer lot loans 88,696 88,364 249 60 23 332 0.37 HELOC 271,286 269,104 1,432 384 366 2,182 0.80 Consumer 61,525 61,172 99 102 152 353 0.57 Total consumer loans 8,436,681 8,386,966 18,419 6,722 24,574 49,715 0.59 Total Loans $ 20,288,338 $ 20,165,753 $ 18,558 $ 21,204 $ 82,823 $ 122,585 0.60 % Delinquency % 99.40 % 0.09 % 0.10 % 0.41 % 0.60 % 17 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Loans are considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. The following table presents the amortized basis of collateral-dependent loans by loan class and collateral type as of December 31, 2025. Loan type Residential Real Estate Commercial Real Estate General Business Assets ($ in thousands) Commercial loans Multi-Family $ — $ 36,488 $ — Commercial Real Estate — 69,461 — Commercial & Industrial — — 56,871 Construction — 3,400 — Land - Acquisition & Development — — — Total commercial loans — 109,349 56,871 Consumer loans Single-Family Residential 3,185 — — Construction - Custom 2,054 — — Land - Consumer Lot Loans 16 — — HELOC 324 — — Consumer — — — Total consumer loans 5,579 — — Total Loans $ 5,579 $ 109,349 $ 56,871 Loans may be modified as the result of borrowers experiencing financial difficulty needing relief from the contractual terms of their loan. Most loan modifications to borrowers experiencing financial difficulty are accruing and performing loans where the borrower has approached the Company about modification due to temporary financial difficulties. Each request for modification is individually evaluated for merit and likelihood of success. Often a term extension is needed in the short term in order to evaluate the need for further corrective action. Payment delays and interest-only payments may also be approved during the modification period. Principal forgiveness is not an available option for restructured loans. For commercial loans, modifications could be any of the above-listed modification types available or a mix thereof. Modifications to extend the term, lower the payment amount or delay payment are made for the purposes of providing borrowers additional time to return to compliance with the terms of their loans. Renewals of commercial lines to borrowers experiencing financial difficulty are included within the disclosures below though many of these are made in the normal course of business. For consumer loans, modifications typically consist of minor payment delays or deferrals and may include a modification of the existing contractual rate or extension of the maturity date, or both, when it is determined the borrowers are likely to successfully maintain compliance with these modified loan terms. The following tables present the amortized basis of loans that were modified to borrowers experiencing financial difficulty during the three month period ending December 31, 2025 by loan class and modification type. Modifications during the periods presented were term extensions or payment deferrals. 18 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Three Months Ended December 31, 2025 Loan Class Term Extension Payment Deferral % of Total Loan Class Balance Wtd. Avg. Term Extension Deferral Amount ( in thousands) (in months) ( in thousands) Multi-family $ — $ — — % 0 Commercial real estate 31,616 — 0.89 9 Commercial & industrial 29,312 — 1.16 11 Construction — — — 0 Total commercial loans 60,928 — 0.51 10 Single-Family Residential — 1,040 0.01 $ 21 Total consumer loans — 1,040 0.01 $ 21 Total Loans $ 60,928 $ 1,040 0.31 % Three Months Ended December 31, 2024 Loan Class Term Extension Payment Deferral % of Total Loan Class Balance Wtd. Avg. Term Extension Deferral Amount ( in thousands) (in months) Commercial real estate $ — $ — — 0 Commercial & industrial 9,396 — 0.39 14 Construction — — — 0 Total commercial loans 9,396 — 0.08 14 Single-Family Residential 455 — 0.01 % 6 Total consumer loans 455 — 0.01 6 Total Loans $ 9,851 $ — 0.05 % The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of modification efforts. Loans are considered to be in default at 90 or more days past due. The following table presents the performance of such loans that have been modified for the twelve months ended December 31, 2025 and December 31, 2024, respectively. December 31, 2025 Days Delinquent Current 30 60 90+ Total Commercial loans Multi-family $ 21,235 $ — $ — $ — $ 21,235 Commercial real estate 46,616 — — 17,560 64,176 Commercial & industrial 33,520 2,855 — 29,864 66,239 Construction 19,232 — — 3,400 22,632 Total commercial loans 120,603 2,855 — 50,824 174,282 Consumer loans Single-family residential 9,313 — — — 9,313 Total consumer loans 9,313 — — — 9,313 Total Loans $ 129,916 $ 2,855 $ — $ 50,824 $ 183,595 19 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) December 31, 2024 Days Delinquent Current 30 60 90+ Total Commercial loans Commercial real estate $ 23,329 $ — $ — $ — $ 23,329 Commercial & industrial 49,542 — — 992 50,534 Construction 19,232 — — — 19,232 Total commercial loans 92,103 — — 992 93,095 Consumer loans Single-family residential 776 557 — — 1,333 Total consumer loans 776 557 — — 1,333 Total Loans $ 92,879 $ 557 $ — $ 992 $ 94,428 Of those loans modified in the twelve months ended December 31, 2025 for borrowers experiencing financial difficulties, $ 29,864,000 of Commercial & Industrial loans, $ 17,560,000 of Commercial Real Estate loans and $ 3,400,000 of Construction loans experienced subsequent default during the three months ended December 31, 2025. These loans were provided term extensions prior to default. None of the other loans modified for borrowers experiencing financial difficulties in the twelve months ended December 31, 2024 experienced subsequent default after modification. The Company evaluates the credit quality of its loans based on regulatory risk ratings and also considers other factors. Based on this evaluation, the loans are assigned a grade and classified as follows: • Pass – the credit does not meet one of the definitions below. • Watch – A watch designation is one that deserves a higher level of scrutiny and monitoring due to either an event that has occurred or is expected to occur in the near future that will likely lead to further change in risk rating (either favorably or unfavorably). Watch loans possess some credit deficiency or potential weakness that deserve close attention but which do not yet appear to jeopardize repayment. The key distinctions of a watch designation are that the credit is performing normally, but there is an uncertain level of risk due to such factors as (1) lack of or slow generation/receipt of financial information, (2) a documentation defect that could jeopardize repayment in the future, (3) construction delays or delays in lease up / stabilization, (4) declining market trends, (5) global cash flow deficiency of guarantors, or (6) management deficiencies/turnover. A loan designated as a “watch” is not considered criticized. • Special mention – A special mention credit is considered to be currently protected from loss but is potentially weak. No loss of principal or interest is foreseen; however, proper supervision and management attention is required to deter further deterioration in the credit. Assets in this category constitute some undue and unwarranted credit risk but not to the point of justifying a risk rating of substandard. The credit risk may be relatively minor yet constitutes an unwarranted risk in light of the circumstances surrounding a specific asset. • Substandard – A substandard credit is an unacceptable credit. Additionally, repayment in the normal course is in jeopardy due to the existence of one or more well defined weaknesses. In these situations, loss of principal is likely if the weakness is not corrected. A substandard asset is inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Assets so classified will have a well-defined weakness or weaknesses that jeopardize the collection or liquidation of the debt. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets risk rated substandard. • Doubtful – A credit classified doubtful has all the weaknesses inherent in one classified substandard with the added characteristic that the weakness makes collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The probability of loss is high, but because of certain important and reasonably specific pending factors that may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans. 20 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) • Loss – Credits classified loss are considered uncollectible and of such little value that their continuance as a bankable asset is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset even though partial recovery may be affected in the future. Losses should be taken in the period in which they are identified as uncollectible. Partial charge-off versus full charge-off may be taken if the collateral offers some identifiable protection. The watch rating was implemented by the bank for fiscal 2026 on a prospective basis. The following tables present by primary credit quality indicator, loan class, and year of origination, the amortized cost basis of loans receivable as of December 31, 2025 and September 30, 2025. 21 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) December 31, 2025 Term Loans Amortized Cost Basis by Origination Year YTD 2026 2025 2024 2023 2022 Prior to 2022 Revolving Loans Revolving to Term Loans Total Loans Commercial loans Multi-family Pass $ 91,165 $ 65,273 $ 91,009 $ 478,105 $ 1,419,433 $ 2,005,070 $ 26,262 $ — $ 4,176,317 Watch — — 1,329 3,019 67,325 28,537 — — 100,210 Special Mention — — — 12,985 44,659 118,637 — — 176,281 Substandard — 2,193 — 9,167 61,276 88,285 1,002 — 161,923 Doubtful — — — — — 2,354 — — 2,354 Total $ 91,165 $ 67,466 $ 92,338 $ 503,276 $ 1,592,693 $ 2,242,883 $ 27,264 $ — $ 4,617,085 Commercial real estate Pass $ 121,554 $ 314,253 $ 226,323 $ 217,383 $ 940,426 $ 1,460,458 $ 15,317 $ 17,829 $ 3,313,543 Watch — — — — — 32,395 — — 32,395 Special Mention — — — 317 20,569 10,147 — — 31,033 Substandard — — — 15,487 10,341 144,827 — — 170,655 Total $ 121,554 $ 314,253 $ 226,323 $ 233,187 $ 971,336 $ 1,647,827 $ 15,317 $ 17,829 $ 3,547,626 Commercial & industrial Pass $ 185,767 $ 244,233 $ 63,130 $ 113,168 $ 153,742 $ 439,402 $ 1,054,290 $ 324 $ 2,254,056 Special Mention — 266 — — 2,572 — 57,583 — 60,421 Substandard — 29,552 6,814 23,184 24,335 37,098 81,351 7,675 210,009 Total $ 185,767 $ 274,051 $ 69,944 $ 136,352 $ 180,649 $ 476,500 $ 1,193,224 $ 7,999 $ 2,524,486 Gross Charge-offs — 34 — — — — 109 4,053 4,196 Construction Pass $ 16,169 $ 229,059 $ 167,244 $ 170,594 $ 240,288 $ 40,933 $ 109,521 $ — $ 973,808 Special Mention — — — — 61,318 — — — 61,318 Substandard — — — — 5,384 3,400 — — 8,784 Total $ 16,169 $ 229,059 $ 167,244 $ 170,594 $ 306,990 $ 44,333 $ 109,521 $ — $ 1,043,910 Land - acquisition & development Pass $ 11,737 $ 53,456 $ 17,075 $ 10,622 $ 18,563 $ 34,852 $ — $ — $ 146,305 Substandard — — — — — 243 — — 243 Total $ 11,737 $ 53,456 $ 17,075 $ 10,622 $ 18,563 $ 35,095 $ — $ — $ 146,548 Total commercial loans Pass $ 426,392 $ 906,274 $ 564,781 $ 989,872 $ 2,772,452 $ 3,980,715 $ 1,205,390 $ 18,153 $ 10,864,029 Watch — — 1,329 3,019 67,325 60,932 — — 132,605 Special Mention — 266 — 13,302 129,118 128,784 57,583 — 329,053 Substandard — 31,745 6,814 47,838 101,336 273,853 82,353 7,675 551,614 Doubtful — — — — — 2,354 — — 2,354 Total $ 426,392 $ 938,285 $ 572,924 $ 1,054,031 $ 3,070,231 $ 4,446,638 $ 1,345,326 $ 25,828 $ 11,879,655 Gross Charge-offs $ — $ 34 $ — $ — $ — $ — $ 109 $ 4,053 $ 4,196 22 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) December 31, 2025 Term Loans Amortized Cost Basis by Origination Year YTD 2026 2025 2024 2023 2022 Prior to 2022 Revolving Loans Revolving to Term Loans Total Loans Consumer loans Single-family residential Current $ 14,829 $ 186,204 $ 331,732 $ 751,372 $ 2,093,234 $ 4,291,859 $ — $ — $ 7,669,230 30 days past due — — — 1,748 1,407 7,476 — — 10,631 60 days past due — — 343 713 221 3,615 — — 4,892 90+ days past due — 339 1,374 813 3,538 19,125 — — 25,189 Total $ 14,829 $ 186,543 $ 333,449 $ 754,646 $ 2,098,400 $ 4,322,075 $ — $ — $ 7,709,942 Gross Charge-offs — — — — — 51 — — 51 Construction - custom Current $ — $ 34,143 $ 16,878 $ 829 $ 4,466 $ — $ — $ — $ 56,316 90+ days past due — — — 1,295 760 — — — 2,055 Total $ — $ 34,143 $ 16,878 $ 2,124 $ 5,226 $ — $ — $ — $ 58,371 Land - consumer lot loans Current $ — $ 6,124 $ 12,137 $ 8,086 $ 18,277 $ 37,451 $ — $ — $ 82,075 30 days past due — — — — — 89 — — 89 60 days past due — — — — — 56 — — 56 90+ days past due — — — 60 — 210 — — 270 Total $ — $ 6,124 $ 12,137 $ 8,146 $ 18,277 $ 37,806 $ — $ — $ 82,490 HELOC Current $ — $ — $ — $ — $ — $ 5,451 $ 256,699 $ 222 $ 262,372 30 days past due — — — — — 492 971 — 1,463 60 days past due — — — — — 45 144 — 189 90+ days past due — — — — — — 438 — 438 Total $ — $ — $ — $ — $ — $ 5,988 $ 258,252 $ 222 $ 264,462 Consumer Current $ 429 $ 147 $ 21 $ 17 $ — $ 28,930 $ 22,825 $ — $ 52,369 30 days past due — — — — — 14 142 — 156 60 days past due — — — — — — 71 — 71 90+ days past due — — — — — 30 143 6 179 Total $ 429 $ 147 $ 21 $ 17 $ — $ 28,974 $ 23,181 $ 6 $ 52,775 Gross Charge-offs — — — — — — 273 — 273 Total consumer loans Current $ 15,258 $ 226,618 $ 360,768 $ 760,304 $ 2,115,977 $ 4,363,691 $ 279,524 $ 222 $ 8,122,362 30 days past due — — — 1,748 1,407 8,071 1,113 — 12,339 60 days past due — — 343 713 221 3,716 215 — 5,208 90+ days past due — 339 1,374 2,168 4,298 19,365 581 6 28,131 Total $ 15,258 $ 226,957 $ 362,485 $ 764,933 $ 2,121,903 $ 4,394,843 $ 281,433 $ 228 $ 8,168,040 Gross Charge-offs $ — $ — $ — $ — $ — $ 51 $ 273 $ — $ 324 23 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2025 Term Loans Amortized Cost Basis by Origination Year 2025 2024 2023 2022 2021 Prior to 2021 Revolving Loans Revolving to Term Loans Total Loans Commercial loans Multi-family Pass $ 51,779 $ 91,285 $ 431,401 $ 1,521,149 $ 1,154,189 $ 1,066,496 $ 21,048 $ — $ 4,337,347 Special Mention — — 8,225 44,350 13,686 70,556 — — 136,817 Substandard 2,334 — 9,166 51,486 12,661 78,158 1,002 — 154,807 Doubtful — — — — — 2,350 — — 2,350 Total $ 54,113 $ 91,285 $ 448,792 $ 1,616,985 $ 1,180,536 $ 1,217,560 $ 22,050 $ — $ 4,631,321 Gross Charge-offs 182 — — — 271 102 — — 555 Commercial real estate Pass $ 311,687 $ 226,269 $ 231,132 $ 997,347 $ 550,234 $ 987,607 $ 33,688 $ 1,098 $ 3,339,062 Special Mention — — — 27,900 21,928 11,752 — — 61,580 Substandard — — 15,484 15,035 83,665 71,343 — — 185,527 Doubtful — — — — — 2,781 — — 2,781 Total $ 311,687 $ 226,269 $ 246,616 $ 1,040,282 $ 655,827 $ 1,073,483 $ 33,688 $ 1,098 $ 3,588,950 Gross Charge-offs — — — 163 — 9,489 — — 9,652 Commercial & industrial Pass $ 263,637 $ 46,817 $ 113,824 $ 147,522 $ 227,043 $ 184,325 $ 1,066,532 $ 37,050 $ 2,086,750 Special Mention — 1,975 — 16,396 — 16,176 10,451 — 44,998 Substandard 35,490 3,042 21,527 24,733 1,725 32,281 130,613 5,180 254,591 Loss — — 10 — — 3 — 11 24 Total $ 299,127 $ 51,834 $ 135,361 $ 188,651 $ 228,768 $ 232,785 $ 1,207,596 $ 42,241 $ 2,386,363 Gross Charge-offs 199 307 — — — 621 — 164 1,291 Construction Pass $ 169,743 $ 171,558 $ 221,207 $ 346,051 $ 66,878 $ — $ 116,245 $ — $ 1,091,682 Special Mention — — — 4,435 — — — — 4,435 Substandard — 204 — 5,380 3,400 — — — 8,984 Total $ 169,743 $ 171,762 $ 221,207 $ 355,866 $ 70,278 $ — $ 116,245 $ — $ 1,105,101 Land - acquisition & development Pass $ 48,379 $ 18,650 $ 11,026 $ 27,172 $ 33,060 $ 1,376 $ — $ — $ 139,663 Substandard — — — — — 259 — — 259 Total $ 48,379 $ 18,650 $ 11,026 $ 27,172 $ 33,060 $ 1,635 $ — $ — $ 139,922 Total commercial loans Pass $ 845,225 $ 554,579 $ 1,008,590 $ 3,039,241 $ 2,031,404 $ 2,239,804 $ 1,237,513 $ 38,148 $ 10,994,504 Special Mention — 1,975 8,225 93,081 35,614 98,484 10,451 — 247,830 Substandard 37,824 3,246 46,177 96,634 101,451 182,041 131,615 5,180 604,168 Doubtful — — — — — 5,131 — — 5,131 Loss — — 10 — — 3 — 11 24 Total $ 883,049 $ 559,800 $ 1,063,002 $ 3,228,956 $ 2,168,469 $ 2,525,463 $ 1,379,579 $ 43,339 $ 11,851,657 Gross Charge-offs $ 381 $ 307 $ — $ 163 $ 271 $ 10,212 $ — $ 164 $ 11,498 24 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2025 Term Loans Amortized Cost Basis by Origination Year 2025 2024 2023 2022 2021 Prior to 2021 Revolving Loans Revolving to Term Loans Total Loans Consumer loans Single-family residential Current $ 202,919 $ 353,679 $ 786,634 $ 2,143,244 $ 1,912,465 $ 2,491,902 $ — $ — $ 7,890,843 30 days past due 402 949 1,751 1,061 7,107 5,369 — — 16,639 60 days past due — 376 965 692 339 3,804 — — 6,176 90+ days past due — 998 813 3,711 4,414 13,337 — — 23,273 Total $ 203,321 $ 356,002 $ 790,163 $ 2,148,708 $ 1,924,325 $ 2,514,412 $ — $ — $ 7,936,931 Gross Charge-offs — — — — — 338 — — 338 Construction - custom Current $ 34,932 $ 33,380 $ 5,256 $ 3,915 $ — $ — $ — $ — $ 77,483 90+ days past due — — — 760 — — — — 760 Total $ 34,932 $ 33,380 $ 5,256 $ 4,675 $ — $ — $ — $ — $ 78,243 Land - consumer lot loans Current $ 6,175 $ 14,686 $ 9,091 $ 19,489 $ 20,373 $ 18,550 $ — $ — $ 88,364 30 days past due — — — 55 194 — — — 249 60 days past due — — 60 — — — — — 60 90+ days past due — — — — — 23 — — 23 Total $ 6,175 $ 14,686 $ 9,151 $ 19,544 $ 20,567 $ 18,573 $ — $ — $ 88,696 HELOC Current $ — $ — $ — $ — $ — $ 4,276 $ 262,581 $ 2,247 $ 269,104 30 days past due — — — — — 145 1,183 104 1,432 60 days past due — — — — — 181 203 — 384 90+ days past due — — — — — — 366 — 366 Total $ — $ — $ — $ — $ — $ 4,602 $ 264,333 $ 2,351 $ 271,286 Consumer Current $ 158 $ 30 $ 17 $ — $ 7,507 $ 22,365 $ 31,095 $ — $ 61,172 30 days past due — — — — — — 99 — 99 60 days past due — — — — — 52 50 — 102 90+ days past due — — — — — 44 108 — 152 Total $ 158 $ 30 $ 17 $ — $ 7,507 $ 22,461 $ 31,352 $ — $ 61,525 Gross Charge-offs — 2 — — — 62 1,252 18 1,334 Total consumer loans Current $ 244,184 $ 401,775 $ 800,998 $ 2,166,648 $ 1,940,345 $ 2,537,093 $ 293,676 $ 2,247 $ 8,386,966 30 days past due 402 949 1,751 1,116 7,301 5,514 1,282 104 18,419 60 days past due — 376 1,025 692 339 4,037 253 — 6,722 90+ days past due — 998 813 4,471 4,414 13,404 474 — 24,574 Total $ 244,586 $ 404,098 $ 804,587 $ 2,172,927 $ 1,952,399 $ 2,560,048 $ 295,685 $ 2,351 $ 8,436,681 Gross Charge-offs $ — $ 2 $ — $ — $ — $ 400 $ 1,252 $ 18 $ 1,672 25 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE E – Allowance for Losses on Loans For a detailed discussion of loans and credit quality, including accounting policies and the CECL methodology used to estimate the allowance for credit losses, see Note A "Summary of Significant Accounting Policies." The following tables summarize the activity in the allowance for loan losses by loan portfolio segment and class. Three Months Ended December 31, 2025 Beginning Allowance Charge-offs Recoveries Provision & Transfers Ending Allowance (In thousands) Commercial loans Multi-family $ 25,953 $ — $ — $ ( 110 ) $ 25,843 Commercial real estate 41,988 — 648 ( 531 ) 42,105 Commercial & industrial 59,163 ( 4,196 ) 5 7,130 62,102 Construction 18,136 — — 339 18,475 Land - acquisition & development 6,894 — 109 219 7,222 Total commercial loans 152,134 ( 4,196 ) 762 7,047 155,747 Consumer loans Single-family residential 38,880 ( 51 ) 6 ( 2,988 ) 35,847 Construction - custom 610 — 2 ( 157 ) 455 Land - consumer lot loans 2,104 — — ( 147 ) 1,957 HELOC 3,069 — — ( 118 ) 2,951 Consumer 2,923 ( 273 ) 69 ( 137 ) 2,582 Total consumer loans 47,586 ( 324 ) 77 ( 3,547 ) 43,792 Total ACL - loans $ 199,720 $ ( 4,520 ) $ 839 $ 3,500 $ 199,539 Three Months Ended December 31, 2024 Beginning Allowance Charge-offs Recoveries Provision & Transfers 1 Ending Allowance (In thousands) Commercial loans Multi-family $ 25,248 $ — $ — $ 749 $ 25,997 Commercial real estate 39,210 ( 163 ) — ( 1,174 ) 37,873 Commercial & industrial 58,748 ( 357 ) 4 2,079 60,474 Construction 22,267 — — ( 1,364 ) 20,903 Land - acquisition & development 7,900 — 12 ( 691 ) 7,221 Total commercial loans 153,373 ( 520 ) 16 ( 401 ) 152,468 Consumer loans Single-family residential 40,523 — 456 1,138 42,117 Construction - custom 1,427 — — ( 208 ) 1,219 Land - consumer lot loans 2,564 — — ( 37 ) 2,527 HELOC 3,049 — 1 108 3,158 Consumer 2,817 ( 265 ) 81 400 3,033 Total consumer loans 50,380 ( 265 ) 538 1,401 52,054 Total ACL - Loans $ 203,753 $ ( 785 ) $ 554 $ 1,000 $ 204,522 1 Provision & transfer amounts within the table do not include the provision recapture on unfunded commitments of $ 1,000,000 . 26 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) The Company recorded a $ 3,500,000 provision for credit losses for the three months ended December 31, 2025, compared with no provision for the three months ended December 31, 2024. The provision in the three months ended December 31, 2025 was the result of mixed credit metrics, including the increasing trends in negative migration of criticized and nonperforming loans, and net charge-offs taken during the quarter, partially offset by decreased loan balances. Net charge-offs totaled $ 3,681,000 for the three months ended December 31, 2025, compared to $ 231,000 of net charge-offs during the three months ended December 31, 2024. Non-performing assets were $ 203,396,000 , or 0.75 % of total assets, at December 31, 2025, compared to $ 143,022,000 , or 0.54 % of total assets, at September 30, 2025. Non-accrual loans were $ 191,348,000 , or 0.95 % of total loans at amortized cost, at December 31, 2025, compared to $ 128,628,000 , or 0.63 %, at September 30, 2025. Delinquencies, as a percent of total loans, were 1.07 % at December 31, 2025, compared to 0.60 % at September 30, 2025. The Company has an asset quality review function that analyzes its loan portfolio and reports the results of the review to its Board of Directors on a quarterly basis. The single-family residential, HELOC and consumer portfolios are evaluated based on their performance as a pool of loans, since no single loan is individually significant or judged by its risk rating, size or potential risk of loss. The construction, land, multi-family, commercial real estate and commercial and industrial loans are risk rated on a loan by loan basis to determine the relative risk inherent in specific borrowers or loans. Based on that risk rating, the loans are assigned a grade and classified as described in Note D "Loans Receivable." The following tables provide the amortized cost of loans receivable based on risk rating categories as previously defined. December 31, 2025 Internally Assigned Grade Pass Watch Special Mention Substandard Doubtful Total (In thousands, except ratio data) Loan type Commercial loans Multi-family $ 4,176,317 100,210 $ 176,281 $ 161,923 $ 2,354 $ 4,617,085 Commercial real estate 3,313,543 32,395 31,033 170,655 — 3,547,626 Commercial & industrial 2,254,056 — 60,421 210,009 — 2,524,486 Construction 973,808 — 61,318 8,784 — 1,043,910 Land - acquisition & development 146,305 — — 243 — 146,548 Total commercial loans 10,864,029 $ 132,605 329,053 551,614 2,354 11,879,655 Consumer loans Single-family residential 7,683,363 $ — — 26,579 — 7,709,942 Construction - custom 56,316 — 2,055 — 58,371 Land - consumer lot loans 82,220 — 270 — 82,490 HELOC 263,981 — 481 — 264,462 Consumer 52,621 — 154 — 52,775 Total consumer loans 8,138,501 $ — — 29,539 — 8,168,040 Total $ 19,002,530 $ 132,605 $ 329,053 $ 581,153 $ 2,354 $ 20,047,695 Total grade as a % of total loans 94.79 % 0.66 % 1.64 % 2.90 % 0.01 % 27 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2025 Internally Assigned Grade Pass Special Mention Substandard Doubtful Loss Total Gross Loans (In thousands, except ratio data) Loan type Commercial loans Multi-family $ 4,337,347 $ 136,817 $ 154,807 $ 2,350 $ — $ 4,631,321 Commercial real estate 3,339,062 61,580 185,527 2,781 — 3,588,950 Commercial & industrial 2,086,750 44,998 254,591 — 24 2,386,363 Construction 1,091,682 4,435 8,984 — — 1,105,101 Land - acquisition & development 139,663 — 259 — — 139,922 Total commercial loans 10,994,504 247,830 604,168 5,131 24 11,851,657 Consumer loans Single-family residential 7,913,120 — 23,811 — — 7,936,931 Construction - custom 77,483 — 760 — — 78,243 Land - consumer lot loans 88,613 — 83 — — 88,696 HELOC 270,874 — 412 — — 271,286 Consumer 61,406 — 119 — — 61,525 Total consumer loans 8,411,496 — 25,185 — — 8,436,681 Total loans $ 19,406,000 $ 247,830 $ 629,353 $ 5,131 $ 24 $ 20,288,338 Total grade as a % of total gross loans 95.7 % 1.2 % 3.1 % — % — % The following tables provide information on the amortized cost of loans receivable based on borrower payment activity. December 31, 2025 Performing Loans Non-Performing Loans Amount % of Total Loans Amount % of Total Loans (In thousands, except ratio data) Commercial loans Multi-family $ 4,585,375 99.3 % $ 31,710 0.7 % Commercial real estate 3,479,125 98.1 68,501 1.9 Commercial & industrial 2,466,306 97.7 58,180 2.3 Construction 1,040,510 99.7 3,400 0.3 Land - acquisition & development 146,548 100.0 — — Total commercial loans 11,717,864 98.6 161,791 1.4 Consumer loans Single-family residential 7,683,363 99.7 26,579 0.3 Construction - custom 56,317 96.5 2,054 3.5 Land - consumer lot loans 82,220 99.7 270 0.3 HELOC 263,981 99.8 481 0.2 Consumer 52,602 99.7 173 0.3 Total consumer loans 8,138,483 99.6 29,557 0.4 Total loans $ 19,856,347 99.0 % $ 191,348 1.0 % 28 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2025 Performing Loans Non-Performing Loans Amount % of Total Loans Amount % of Total Loans (In thousands, except ratio data) Commercial loans Multi-family $ 4,612,200 99.6 % $ 19,121 0.4 % Commercial real estate 3,518,978 98.1 69,972 1.9 Commercial & industrial 2,375,316 99.5 11,047 0.5 Construction 1,101,701 99.7 3,400 0.3 Land - acquisition & development 139,922 100.0 — — Total commercial loans 11,748,117 99.1 103,540 0.9 Consumer loans Single-family residential 7,913,190 99.7 23,741 0.3 Construction - custom 77,483 99.0 760 1.0 Land - consumer lot loans 88,673 100.0 23 — HELOC 270,874 99.8 412 0.2 Consumer 61,373 99.8 152 0.2 Total consumer loans 8,411,593 99.7 25,088 0.3 Total loans $ 20,159,710 99.4 % $ 128,628 0.6 % NOTE F – Fair Value Measurements FASB ASC 820, Fair Value Measurement ("ASC 820") defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active exchange markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active and other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company has established and documented the process for determining the fair values of its assets and liabilities, where applicable. Fair value is based on quoted market prices, when available, for identical or similar assets or liabilities. In the absence of quoted market prices, fair value is determined using valuation models or third-party appraisals. The following is a description of the valuation methodologies used to measure and report the fair value of financial assets and liabilities on a recurring or nonrecurring basis. 29 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Measured on a Recurring Basis Available-for-Sale Investment Securities and Derivative Contracts Securities available for sale are recorded at fair value on a recurring basis. The fair value of debt securities are priced using model pricing based on the securities' relationship to other benchmark quoted prices as provided by an independent third party, and under GAAP are considered a Level 2 input method. Securities that are traded on active exchanges are measured using the closing price in an active market and are considered a Level 1 input method. The Company offers interest rate swaps to its variable rate borrowers who want to manage their interest rate risk. At the same time, the Company enters into the opposite trade with a counter party to offset its interest rate risk. The Company has also entered into commercial loan hedges, mortgage pool hedges and borrowings hedges using interest rate swaps. The fair value of these interest rate swaps are estimated by a third-party pricing service using a discounted cash flow technique. These are considered a Level 2 input method. The following tables present the balance and level in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis (with the exception of those measured using the NAV practical expedient). December 31, 2025 Level 1 Level 2 Level 3 Total (In thousands) Financial Assets Available-for-sale securities: U.S. government and agency securities $ — $ 216,922 $ — $ 216,922 Asset-backed securities — 491,177 — 491,177 Municipal bonds — 35,104 — 35,104 Corporate debt securities — 162,689 — 162,689 Mortgage-backed securities Agency pass-through certificates — 3,236,393 — 3,236,393 Total available-for-sale securities — 4,142,285 — 4,142,285 Client swap program hedges — 34,682 — 34,682 Commercial loan fair value hedges — 1,607 — 1,607 Mortgage loan fair value hedges — 11,098 — 11,098 Borrowings cash flow hedges — 94,529 — 94,529 Total financial assets $ — $ 4,284,201 $ — $ 4,284,201 Financial Liabilities Client swap program hedges $ — $ 35,128 $ — $ 35,128 Mortgage loan fair value hedges — 17,910 — 17,910 Mortgage backed securities fair value hedges — 13,024 — 13,024 Borrowings cash flow hedges — 813 — 813 Total financial liabilities $ — $ 66,875 $ — $ 66,875 30 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2025 Level 1 Level 2 Level 3 Total (In thousands) Financial Assets Available-for-sale securities: U.S. government and agency securities $ — $ 235,919 $ — $ 235,919 Asset-backed securities — 506,334 506,334 Municipal bonds — 35,258 — 35,258 Corporate debt securities — 152,537 — 152,537 Mortgage-backed securities Agency pass-through certificates — 2,603,153 — 2,603,153 Total available-for-sale securities — 3,533,201 — 3,533,201 Client swap program hedges — 37,347 — 37,347 Commercial loan fair value hedges — 1,611 — 1,611 Mortgage loan fair value hedges — 13,082 — 13,082 Borrowings cash flow hedges — 99,231 — 99,231 Total financial assets $ — $ 3,684,472 $ — $ 3,684,472 Financial Liabilities Client swap program hedges $ — $ 37,818 $ — $ 37,818 Mortgage backed securities fair value hedges — 15,086 — 15,086 Mortgage loan fair value hedges — 20,426 — 20,426 Total financial liabilities $ — $ 73,330 $ — $ 73,330 31 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Measured on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis after initial recognition such as collateral dependent loans and real estate owned ("REO"). REO consists principally of properties acquired through foreclosure and branch properties no longer in use. From time to time, and on a nonrecurring basis, adjustments using fair value measurements are recorded to reflect increases or decreases in the carrying balances based on the discounted cash flows, the current appraisal or estimated value of the collateral or REO property. When management determines that the fair value of the collateral or the REO requires additional adjustments, either as a result of an updated appraised value or when there is no observable market price, the Company classifies the collateral dependent loan or real estate owned as Level 3. Level 3 assets recorded at fair value on a nonrecurring basis at December 31, 2025 included loans for which an allowance was established or a partial charge-off was recorded based on the fair value of collateral, as well as real estate owned where the fair value of the property was less than the cost basis. The following tables present the aggregated balance of assets that were measured at fair value on a nonrecurring basis at December 31, 2025 and December 31, 2024, and the total gains (losses) resulting from those fair value adjustments during the respective periods. The estimated fair value measurements are shown gross of estimated selling costs. December 31, 2025 Three Months Ended December 31, 2025 Level 1 Level 2 Level 3 Total Total Gains (Losses) (In thousands) (In thousands) Collateral Dependent Loans $ — $ — $ 9,059 $ 9,059 $ ( 4,510 ) Real estate owned — — 390 390 69 Balance at end of period $ — $ — $ 9,449 $ 9,449 $ ( 4,441 ) December 31, 2024 Three Months Ended December 31, 2024 Level 1 Level 2 Level 3 Total Total Gains (Losses) (In thousands) (In thousands) Collateral Dependent Loans $ — $ — $ 596 $ 596 $ ( 271 ) Real estate owned — — — — — Balance at end of period $ — $ — $ 596 $ 596 $ ( 271 ) At December 31, 2025, there was $ 854,000 in foreclosed residential real estate properties held as REO. The recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process was $ 5,620,000 . Fair Values of Financial Instruments FASB ASC 825, Financial Instruments ("ASC 825") requires disclosure of fair value information about financial instruments, whether or not recognized on the statement of financial condition, for which it is practicable to estimate those values. Certain financial instruments and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value estimates presented do not reflect the underlying fair value of the Company. Although management is not aware of any factors that would materially affect the estimated fair value amounts presented below, such amounts have not been comprehensively revalued for purposes of these financial statements since the dates shown, and therefore, estimates of fair value subsequent to those dates may differ significantly from the amounts presented below. 32 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) December 31, 2025 September 30, 2025 Level in Fair Value Hierarchy Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value ($ in thousands) Financial assets Cash and cash equivalents 1 $ 734,915 $ 734,915 $ 657,310 $ 657,310 Available-for-sale securities U.S. government and agency securities 2 216,922 216,922 235,919 235,919 Asset-backed securities 2 491,177 491,177 506,334 506,334 Municipal bonds 2 35,104 35,104 35,258 35,258 Corporate debt securities 2 162,689 162,689 152,537 152,537 Mortgage-backed securities Agency pass-through certificates 2 3,236,393 3,236,393 2,603,153 2,603,153 Total available-for-sale securities 4,142,285 4,142,285 3,533,201 3,533,201 Held-to-maturity securities Mortgage-backed securities Agency pass-through certificates 2 764,794 735,361 645,802 612,739 Total held-to-maturity securities 764,794 735,361 645,802 612,739 Loans receivable 3 19,848,156 19,543,946 20,088,618 19,681,909 FHLB stock 2 118,218 118,218 88,068 88,068 Other assets - client swap program hedges 2 34,682 34,682 37,347 37,347 Other assets - commercial fair value loan hedges 2 1,607 1,607 1,611 1,611 Other assets - mortgage loan fair value hedges 2 11,098 11,098 13,082 13,082 Other assets - borrowings cash flow hedges 2 94,529 94,529 99,231 99,231 Financial liabilities Time deposits 2 8,550,996 8,542,121 9,131,104 9,121,470 Borrowings 2 2,436,532 2,434,479 1,765,604 1,755,130 Junior subordinated debentures 3 51,879 51,832 51,645 50,925 Other liabilities - client swap program hedges 2 35,128 35,128 37,818 37,818 Other liabilities - mortgage loan fair value hedges 2 17,910 17,910 20,426 20,426 Other liabilities - mortgage backed securities fair value hedges 2 13,024 13,024 15,086 15,086 Other liabilities - borrowings cash flow hedges 2 813 813 — — The following methods and assumptions were used to estimate the fair value of financial instruments: Cash and cash equivalents – The carrying amount of these items is a reasonable estimate of their fair value. Available-for-sale securities and held-to-maturity securities – Securities at fair value are primarily priced using model pricing based on the securities' relationship to other benchmark quoted prices as provided by an independent third party, and are considered a Level 2 input method. Equity securities that are exchange traded are considered a Level 1 input method. Loans receivable – Fair values are estimated first by stratifying the portfolios of loans with similar financial characteristics. Loans are segregated by type such as multi-family real estate, residential mortgage, construction, commercial, consumer and land loans. Each loan category is further segmented into fixed- and adjustable-rate interest terms. For residential mortgages and multi-family loans, the Company determined that its best exit price was by securitization. Mortgage backed securities ("MBS") 33 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) benchmark prices are used as a base price, with further loan level pricing adjustments made based on individual loan characteristics such as FICO score, loan to value ratio, property type and occupancy. For all other loan categories an estimate of fair value is then calculated based on discounted cash flows using a discount rate offered and observed in the market on similar products, plus an adjustment for liquidity to reflect the non-homogeneous nature of the loans, as well as an annual loss rate based on historical losses to arrive at an estimated exit price fair value. Fair value for impaired loans is also based on recent appraisals or estimated cash flows discounted using rates commensurate with risk associated with the estimated cash flows. Assumptions regarding credit risk, cash flows and discount rates are judgmentally determined using available market information and specific borrower information. FHLB stock – The fair value is based upon the par value of the stock that equates to its carrying value. Time deposits – The fair value of time deposits is estimated by discounting the estimated future cash flows using rates offered for deposits with similar remaining maturities. Borrowings – The fair value of FHLB advances and Federal Reserve Bank ("FRB") borrowings is estimated by discounting the estimated future cash flows using rates currently available to the Company for debt with similar remaining maturities. Junior subordinated deferrable interest debentures - The fair value of junior subordinated debentures is estimated using an income approach valuation technique. The significant unobservable input utilized in the estimation of fair value of these instruments is the credit risk adjusted spread. The credit risk adjusted spread represents the nonperformance risk of the liability, contemplating the inherent risk of the obligation. The ending carrying (fair) value of the junior subordinated debentures measured at fair value represents the estimated amount that would be paid to transfer these liabilities in an orderly transaction amongst market participants. Due to credit concerns in the capital markets and inactivity in the trust preferred markets that have limited the observability of market spreads, the Company has classified this as a Level 3 fair value measurement. Interest rate swaps – The Company offers interest rate swaps to its variable rate borrowers who want to manage their interest rate risk. At the same time, the Company enters into the opposite trade with a counterparty to offset its interest rate risk. The Company also uses interest rate swaps for various fair value hedges and cash flow hedges. The fair value of these interest rate swaps is estimated by a third-party pricing service using a discounted cash flow technique. 34 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) The following tables provide details about the amortized cost and fair value of available-for-sale and held-to-maturity securities. December 31, 2025 Amortized Cost Gross Unrealized Fair Value Yield Gains Losses ($ in thousands) Available-for-sale securities U.S. government and agency securities due Within 1 year $ 1,687 $ — $ ( 24 ) $ 1,663 2.05 % 1 to 5 years 504 — — 504 4.75 5 to 10 years 145,592 163 ( 288 ) 145,467 4.70 Over 10 years 69,304 173 ( 189 ) 69,288 5.28 Asset-backed securities Within 1 year 10,239 — ( 189 ) 10,050 4.64 5 to 10 years 2,585 — ( 1 ) 2,584 4.79 Over 10 years 478,867 1,452 ( 1,776 ) 478,543 4.89 Corporate debt securities due 1 to 5 years 32,664 — ( 1,895 ) 30,769 4.95 5 to 10 years 137,874 293 ( 6,247 ) 131,920 4.41 Municipal bonds due 1 to 5 years 5,651 — ( 150 ) 5,501 3.00 5 to 10 years 20,000 73 — 20,073 6.45 Over 10 years 9,745 — ( 215 ) 9,530 4.57 Mortgage-backed securities Agency pass-through certificates 3,226,906 45,563 ( 36,076 ) 3,236,393 3.91 4,141,618 47,717 ( 47,050 ) 4,142,285 4.11 Held-to-maturity securities Mortgage-backed securities Agency pass-through certificates 764,794 5,420 ( 34,853 ) 735,361 4.05 $ 4,906,412 $ 53,137 $ ( 81,903 ) $ 4,877,646 4.10 % 35 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2025 Amortized Cost Gross Unrealized Fair Value Yield Gains Losses ($ in thousands) Available-for-sale securities U.S. government and agency securities due Within 1 year $ 1,687 $ — $ ( 29 ) $ 1,658 2.05 % 1 to 5 years 545 — — 545 5.00 5 to 10 years 158,026 162 ( 295 ) 157,893 4.95 Over 10 years 75,887 163 ( 227 ) 75,823 5.52 Asset-backed securities Within 1 year 10,492 — ( 163 ) 10,329 5.12 5 to 10 years 3,945 7 — 3,952 5.27 Over 10 years 491,734 1,702 ( 1,383 ) 492,053 5.36 Corporate debt securities due 1 to 5 years 32,821 — ( 2,047 ) 30,774 4.95 5 to 10 years 128,015 314 ( 6,566 ) 121,763 4.37 Municipal bonds due 5 to 10 years 25,659 250 ( 179 ) 25,730 5.71 Over 10 years 9,754 — ( 226 ) 9,528 4.57 Mortgage-backed securities Agency pass-through certificates 2,603,873 38,399 ( 39,119 ) 2,603,153 3.83 3,542,438 40,997 ( 50,234 ) 3,533,201 4.17 Held-to-maturity securities Mortgage-backed securities Agency pass-through certificates 645,802 4,073 ( 37,136 ) 612,739 3.85 $ 4,188,240 $ 45,070 $ ( 87,370 ) $ 4,145,940 4.12 % The Company purchased $ 724,749,000 of AFS investment securities during the three months ended December 31, 2025 and purchased $ 310,999,000 of AFS securities during the three months ended December 31, 2024. There were no sales of AFS securities during the three months ended December 31, 2025 compared to $ 797,000 during the prior year's same period. For HTM investment securities, there were $ 141,283,000 in purchases during the three months ended December 31, 2025 and $ 114,182,000 in purchases during the three months ended December 31, 2024. There were no sales of HTM investment securities during the three months ended December 31, 2025 or December 31, 2024. Substantially all of the agency mortgage-backed securities have contractual maturity dates that exceed 25 years. The Company elected to exclude AIR from the amortized cost basis of debt securities disclosed throughout this note. For AFS securities, AIR totaled $ 14,316,000 and $ 11,057,000 as of December 31, 2025 and September 30, 2025, respectively. For HTM debt securities, AIR totaled $ 2,598,000 and $ 2,089,000 as of December 31, 2025 and September 30, 2025, respectively. AIR for securities is included in the Interest receivable line item balance on the Company’s consolidated statements of financial condition. The following tables show the gross unrealized losses and fair value of securities as of December 31, 2025 and September 30, 2025, by length of time that individual securities in each category have been in a continuous loss position. There were 224 and 213 securities with an unrealized loss as of December 31, 2025 and September 30, 2025, respectively. 36 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) December 31, 2025 Less than 12 months 12 months or more Total Unrealized Gross Losses Fair Value Unrealized Gross Losses Fair Value Unrealized Gross Losses Fair Value (In thousands) Available-for-sale securities Corporate debt securities $ ( 191 ) $ 19,809 $ ( 7,952 ) $ 102,586 $ ( 8,143 ) $ 122,395 Municipal bonds — — ( 365 ) 15,031 ( 365 ) 15,031 U.S. government and agency securities ( 519 ) 161,123 ( 215 ) 20,981 ( 734 ) 182,104 Asset-backed securities ( 195 ) 51,135 ( 1,537 ) 151,951 ( 1,732 ) 203,086 Mortgage-backed securities ( 1,008 ) 221,028 ( 35,068 ) 622,055 ( 36,076 ) 843,083 ( 1,913 ) 453,095 ( 45,137 ) 912,604 ( 47,050 ) 1,365,699 Held-to-maturity securities Mortgage-backed securities ( 58 ) 7,241 ( 34,795 ) 304,982 ( 34,853 ) 312,223 $ ( 1,971 ) $ 460,336 $ ( 79,932 ) $ 1,217,586 $ ( 81,903 ) $ 1,677,922 September 30, 2025 Less than 12 months 12 months or more Total Unrealized Gross Losses Fair Value Unrealized Gross Losses Fair Value Unrealized Gross Losses Fair Value (In thousands) Available-for-sale securities Corporate debt securities $ ( 119 ) $ 19,881 $ ( 8,495 ) $ 102,342 $ ( 8,614 ) $ 122,223 Municipal bonds due — — ( 405 ) 15,008 ( 405 ) 15,008 U.S. government and agency securities ( 483 ) 143,444 ( 127 ) 35,211 ( 610 ) 178,655 Asset-backed securities ( 62 ) 34,932 ( 1,424 ) 135,315 ( 1,486 ) 170,247 Mortgage-backed securities ( 782 ) 81,025 ( 38,337 ) 653,800 ( 39,119 ) 734,825 ( 1,446 ) 279,282 ( 48,788 ) 941,676 ( 50,234 ) 1,220,958 Held-to-maturity securities Mortgage-backed securities — — ( 37,136 ) 310,597 ( 37,136 ) 310,597 $ ( 1,446 ) $ 279,282 $ ( 85,924 ) $ 1,252,273 $ ( 87,370 ) $ 1,531,555 Substantially all of the Company’s HTM debt securities are issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government and have a long history of zero credit loss. Therefore, the Company did not record an allowance for credit losses for these securities as of December 31, 2025 or September 30, 2025. The Company does not consider HTM investments to have any credit impairment. The Company does not believe that the AFS debt securities that were in an unrealized loss position have any credit loss impairment as of December 31, 2025 or September 30, 2025. The Company does not intend to sell the investment securities that were in an unrealized loss position and it is more likely than not that the Company will not be required to sell the investment securities before recovery of their amortized cost basis, which may be at maturity. AFS debt securities issued by U.S. government agencies or U.S. government-sponsored enterprises carry the explicit and/or implicit guarantee of the U.S. government and have a long history of zero credit loss. Corporate debt securities and municipal bonds are considered to have an issuer of high credit quality and the decline in fair value is due to changes in interest rates and other market conditions. The issuer continues to make timely principal and interest payments on the bonds. The fair value is expected to recover as the bonds approach maturity. 37 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE G – Derivatives and Hedging Activities The following tables present the fair value, notional amount and balance sheet classification of derivative assets and liabilities at December 31, 2025 and September 30, 2025. December 31, 2025 Derivative Assets Derivative Liabilities Interest rate contract purpose Balance Sheet Location Notional Fair Value Balance Sheet Location Notional Fair Value (In thousands) (In thousands) Client swap program hedges Other assets $ 925,229 $ 34,682 Other liabilities $ 925,229 $ 35,128 Commercial loan fair value hedges Other assets 31,562 1,607 Other liabilities — — Mortgage loan fair value hedges Other assets 270,000 11,098 Other liabilities 1,100,000 17,910 Mortgage backed securities fair value hedges Other assets — — Other liabilities 610,000 13,024 Borrowings cash flow hedges Other assets 1,050,000 94,529 Other liabilities 400,000 813 $ 2,276,791 $ 141,916 $ 3,035,229 $ 66,875 September 30, 2025 Derivative Assets Derivative Liabilities Interest rate contract purpose Balance Sheet Location Notional Fair Value Balance Sheet Location Notional Fair Value (In thousands) (In thousands) Client swap program hedges Other assets $ 977,017 $ 37,347 Other liabilities $ 977,017 $ 37,818 Commercial loan fair value hedges Other assets 34,341 1,611 Other liabilities — — Mortgage backed securities fair value hedges Other assets — — Other liabilities 610,000 15,086 Mortgage loan fair value hedges Other assets 470,000 13,082 Other liabilities 1,100,000 20,426 Borrowings cash flow hedges Other assets 900,000 99,231 Other liabilities — — $ 2,381,358 $ 151,271 $ 2,687,017 $ 73,330 The Company enters into interest rate swaps to hedge interest rate risk. These arrangements include hedges of individual fixed rate commercial loans and also hedges of a specified portion of pools of prepayable fixed rate mortgage loans and mortgage backed securities under the "portfolio layer" method. These relationships qualify as fair value hedges under FASB ASC 815, Derivatives and Hedging ("ASC 815"), which provides for offsetting of the recognition of gains and losses of the respective interest rate swap and the hedged items. Gains and losses on interest rate swaps designated in these hedge relationships, along with the offsetting gains and losses on the hedged items attributable to the hedged risk, are recognized in current earnings within the same income statement line item. Upon electing to apply ASC 815 fair value hedge accounting, the carrying value of the hedged item is adjusted to reflect the cumulative impact of changes in fair value attributable to the hedged risk. The hedge basis adjustment remains with the hedged item until the hedged item is de-recognized from the balance sheet. The following tables present the impact of fair value hedge accounting on the carrying value of the hedged items at December 31, 2025 and September 30, 2025. (In thousands) December 31, 2025 Balance sheet line item in which hedged item is recorded Carrying value of hedged items Cumulative gain (loss) fair value hedge adjustment included in carrying amount of hedged items Loans receivable (1) (2) $ 5,280,844 $ 6,249 Available-for-sale securities, at fair value (3) $ 927,438 $ 13,359 $ 6,208,282 $ 19,608 38 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (1) Includes the amortized cost basis of the closed mortgage loan portfolios used to designate the hedging relationships in which the hedged items are a portfolio layer expected to be remaining at the end of the hedging relationships. At December 31, 2025, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $ 5,250,782,000 , the cumulative basis adjustment associated with the hedging relationships was $ 7,705,000 , and the amount of the designated hedged items was $ 270,000,000 . (2) Includes the amortized cost basis of commercial loans designated in fair value hedging relationships. At December 31, 2025, the amortized cost basis of the hedged commercial loans was $ 30,062,000 and the cumulative basis adjustment associated with the hedging relationships was $( 1,456,000 ). (3) Includes the fair value basis of mortgage backed securities designated in fair value hedging relationships. At December 31, 2025, the fair value of the hedged mortgage based securities was $ 927,438,000 , the cumulative basis adjustment associated with the hedging relationships was $ 13,359,000 , and the amount of the designated hedged items was $ 610,000,000 . (In thousands) September 30, 2025 Balance sheet line item in which hedged item is recorded Carrying value of hedged items Cumulative gain (loss) fair value hedge adjustment included in carrying amount of hedged items Loans receivable (1) (2) $ 5,426,086 $ 6,794 Available-for-sale securities, at fair value (3) 940,110 15,452 $ 6,366,196 $ 22,246 (1) Includes the amortized cost basis of the closed mortgage loan portfolios used to designate the hedging relationships in which the hedged items are the last layer expected to be remaining at the end of the hedging relationships. At September 30, 2025, the amortized cost basis of the closed loan portfolios used in the hedging relationships was $ 5,393,257,000 , the cumulative basis adjustment associated with the hedging relationships was $ 8,262,000 , and the amount of the designated hedged items was $ 1,570,000,000 . During fiscal 2025, hedge accounting was discontinued on a $ 1,600,000,000 last of layer hedge. A basis adjustment of $ 4,016,668 associated with the terminated portion of the hedge was deferred and is being amortized over the remaining life of the associated pool of loans. (2) Includes the amortized cost basis of commercial loans designated in fair value hedging relationships. At September 30, 2025, the amortized cost basis of the hedged commercial loans was $ 32,829,000 and the cumulative basis adjustment associated with the hedging relationships was $( 1,468,000 ). (3) Includes the fair value basis of mortgage backed securities designated in fair value hedging relationships. At September 30, 2025, the fair value of the hedged mortgage backed securities was $ 940,110,000 , the cumulative basis adjustment associated with the hedging relationships was $ 15,452,000 , and the amount of the designated hedged items was $ 610,000,000 . The Company has entered into interest rate swaps to convert certain short-term borrowings to fixed rate payments. The primary purpose of these hedges is to mitigate the risk of changes in future cash flows resulting from increasing interest rates. For qualifying cash flow hedges under ASC 815, gains and losses on the interest rate swaps are recorded in accumulated other comprehensive income ("AOCI") and then reclassified into earnings in the same period the hedged cash flows affect earnings and within the same income statement line item as the hedged cash flows. As of December 31, 2025, the maturities for hedges of adjustable rate borrowings ranged from one year to seven years , with the weighted average being 3.8 years. 39 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) The following tables present the impact of derivative instruments (cash flow hedges on borrowings) on AOCI for the periods presented. (In thousands) Three Months Ended December 31, Amount of gain/(loss) recognized in AOCI on derivatives in cash flow hedging relationships 2025 2024 Interest rate contracts: Pay fixed/receive floating swaps on borrowings cash flow hedges $ ( 5,514 ) $ 21,594 Reclassification adjustment of net (gain)/loss included in net income — 5 Total pre-tax gain/(loss) recognized in AOCI $ ( 5,514 ) $ 21,599 The following tables present the gain (loss) on derivative instruments in fair value and cash flow accounting hedging relationships under ASC 815 for the periods presented. Three Months Ended December 31, 2025 Three Months Ended December 31, 2024 Interest income on loans receivable Interest on Mortgage-backed securities Interest expense on FHLB advances Interest income on loans receivable Interest on Mortgage-backed securities Interest expense on FHLB advances (In thousands) (In thousands) Interest income/(expense), including the effects of fair value and cash flow hedges $ 264,207 $ 38,902 $ ( 15,171 ) $ 286,597 $ — $ ( 27,536 ) Gain/(loss) on fair value hedging relationships: Interest rate contracts Amounts related to interest settlements on derivatives $ 2,754 $ 95 $ 7,993 $ — Recognized on derivatives 528 $ 2,062 37,593 — Recognized on hedged items ( 545 ) ( 2,093 ) ( 43,418 ) — Net income/(expense) recognized on fair value hedges $ 2,737 $ 64 $ 2,168 $ — Gain/(loss) on cash flow hedging relationships: Interest rate contracts Amounts related to interest settlements on derivatives $ 8,329 $ 9,480 Amount of derivative gain/(loss) reclassified from AOCI into interest income/expense — ( 5 ) Net income/(expense) recognized on cash flow hedges $ 8,329 $ 9,475 40 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) The Company periodically enters into certain interest rate swap agreements in order to provide commercial loan customers the ability to convert from variable to fixed interest rate payments, while the Company retains a variable rate loan. Under these agreements, the Company enters into a variable rate loan agreement and a swap agreement with the client. The swap agreement effectively converts the client’s variable rate loan into a fixed rate. The Company enters into a corresponding swap agreement with a third party in order to offset its exposure on the variable and fixed components of the client's swap agreement. The interest rate swaps are derivatives under ASC 815, with changes in fair value recorded in earnings. The impact to the statement of operations for the three months ended December 31, 2025 was an increase in other income of $ 24,000 and an increase of $ 5,000 for the three months ended December 31, 2024. The following tables present the impact of derivative instruments (client swap program) that are not designated in accounting hedges under ASC 815 for the periods presented. (In thousands) Three Months Ended December 31, Derivative instruments Classification of gain/(loss) recognized in income on derivative instrument 2025 2024 Interest rate contracts: Pay fixed/receive floating swap Other noninterest income $ ( 1,934 ) $ 20,185 Receive fixed/pay floating swap Other noninterest income 1,958 ( 20,180 ) $ 24 $ 5 NOTE H – Revenue from Contracts with Customers Since net interest income on financial assets and liabilities is outside the scope of ASU No. 2014-09, Revenue from Contracts with Customers ("ASC 606"), a significant majority of Company revenues are not subject to that guidance. Revenue streams that are within the scope of ASC 606 are presented within non-interest income and are, in general, recognized as revenue at the same time the Company's obligation to the customer is satisfied. Most of the Company's customer contracts that are within the scope of ASC 606 are cancelable by either party without penalty and are short-term in nature. These sources of revenue include depositor and other consumer and business banking fees, commission income, as well as debit and credit card interchange fees. In scope revenue streams represented approximately 3.6 % of Company total revenue for the three months ended December 31, 2025, compared to 3.2 % for the three months ended December 31, 2024. As this standard is immaterial to the consolidated financial statements, the Company has omitted certain disclosures in ASC 606, including the disaggregation of revenue table. Sources of non-interest income within the scope of the guidance include the following: Deposit Related and Other Service Charges (recognized in Deposit fee income) - The Company's deposit accounts are governed by standardized contracts customary in the industry. Revenues are earned at a point in time or over time (monthly) from account maintenance fees and charges for specific transactions such as wire transfers, stop payment orders, overdrafts, debit card replacements, check orders and cashier’s checks. The Company’s performance obligation related to each of these fees is generally satisfied, and the related revenue recognized, at the time the service is provided (point in time or monthly). The Company is principal in each of these contracts. Debit and Credit Card Interchange Fees (recognized in Deposit fee income) - The Company receives interchange fees from the debit card or credit card payment network based on transactions involving debit or credit cards issued by the Company, generally measured as a percentage of the underlying transaction. Interchange fees from debit and credit card transactions are recognized as the transaction processing services are provided by the network. The Company acts as an agent in the card payment network arrangement, so the interchange fees are recorded net of any expenses paid to the principal (the card payment network in this case). Insurance Agency Commissions (recognized in Other income) - WAFD Insurance Group, Inc. is a wholly owned subsidiary of WaFd Bank that operates as an insurance agency, selling and marketing property and casualty insurance policies for a small 41 Table of Contents WAFD, INC. AND SUBSIDIARIES NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) number of high-quality insurance carriers. WAFD Insurance Group, Inc. earns revenue in the form of commissions paid by the insurance carriers for policies that have been sold. In addition to the origination commission, WAFD Insurance Group, Inc. may also receive contingent incentive fees based on the volume of business generated for the insurance carrier and based on policy renewal rates. NOTE I – Commitments and Contingencies Lease Commitments - The Company’s lease commitments consist primarily of real estate property for branches and office space under various non-cancellable operating leases that expire between 2026 and 2070. The majority of the leases contain renewal options and provisions for increases in rental rates based on a predetermined schedule or an agreed upon index. Financial Instruments with Off-Balance Sheet Risk - Off-balance-sheet credit exposures for the Company include unfunded loan commitments and letters of credit from the FHLB of Des Moines and the FHLB of San Francisco. As of December 31, 2025, the Bank was obligated on FHLB letters of credit totaling $ 62,606,000 and unfunded loan commitments had a balance of $ 2,785,642,000 . These amounts are decreased compared to September 30, 2025 when the bank was obligated on FHLB letters of credit totaling $ 62,606,000 and had unfunded commitments of $ 2,841,596,000 . The reserve for unfunded commitments was $ 21,500,000 as of December 31, 2025, which is unchanged from September 30, 2025. See Note A "Summary of Significant Accounting Policies" for details regarding the reserve methodology. Legal Proceedings - The Company and its subsidiaries are from time to time defendants in and are threatened with various legal proceedings arising from regular business activities. Management, after consulting with legal counsel, is of the opinion that the ultimate liability, if any, resulting from these pending or threatened actions and proceedings will not have a material effect on the financial statements of the Company. LIHTC Investments - The Company has equity investments as limited partners in LIHTC investment funds which are designed to promote qualified affordable housing projects. These investments provide a return through the generation of income tax credits and other income tax benefits and support the Company's regulatory compliance with the Community Reinvestment Act. The Company has evaluated its LIHTC investments and determined it does not have the ability to exercise significant influence over the operating or financial decisions of the funds. This lack of significant influence due to the Company's role as a limited partners allows the Company to account for its LIHTC investments using the proportional amortization method. The Company records the investments in affordable housing partnerships of $ 153,232,000 and $ 157,249,000 as of December 31, 2025 and September 30, 2025, respectively, as a component of other assets on the Consolidated Statements of Financial Condition and uses the proportional amortization method to account for the investments. The Company's unfunded contribution commitments to these investments were $ 69,443,000 and $ 73,123,000 as of December 31, 2025 and September 30, 2025, respectively, which are recorded as a component of other liabilities on the Consolidated Statements of Financial Condition. Both the tax benefits and the amortization expense related to these investments are reflected in the provision for income taxes on the Condensed Consolidated Statements of Operations. 42 Table of Contents WAFD, INC. AND SUBSIDIARIES PART I – Financial Information