WaFd, Inc.

GE Aerospace said Tuesday it agreed to acquire Consolidated Precision Products for $11.75 billion, expanding its control over the supply of specialized castings used in commercial aircraft engines, military equipment and industrial gas turbines. The deal headlines a busy week of M&A across sectors. Copart agreed to acquire ACV Auctions for $10.50 a share in cash, an implied equity value of about $1.9 billion, while Analog Devices will acquire Alif Semiconductor in an all-cash transaction for $1.35 billion. Bending Spoons agreed to acquire collaborative-workspace company Miro at an enterprise value of $1.355 billion in an all-cash deal expected to close in the fourth quarter of 2026. Tamarack Valley Energy agreed to acquire Headwater Exploration in an all-stock deal valued at C$10B, about US$7.25B, creating the largest publicly traded oil producer focused on Alberta's Clearwater formation, and EverBank Financial agreed to acquire Pacific Northwest bank WaFd in a $3.9B reverse merger creating a regional bank with about $75B in assets. Meta Platforms purchased Swedish AI startup Stilla.ai, Apple acquired Sonera Magnetics in a deal disclosed by the European Commission, Grab Holdings is said to be in talks for a majority stake in Atome Financial, and ARC Group Acquisition I agreed to acquire Malaysian licensed financing company Firstborn Top Capital.

EverBank Financial has agreed to merge with WaFd, Inc. in a $3.9 billion reverse merger that will create a regional bank with about $75 billion in assets. Under the deal, EverBank will merge into WaFd, which will remain the publicly traded company but take the EverBank Financial Corp. name and trade on Nasdaq under the EVBK ticker. EverBank shareholders will own about 59.2% of the combined company, while WaFd shareholders will hold roughly 40.8%, and the merger is expected to lift WaFd shareholders' 2027 earnings per share by about 29%. More than 40% of EverBank's roughly $37 billion loan portfolio is currently linked to nonbank financial companies, a figure that would fall to about 28% after the merger, and management expects the combined company to eventually generate a pro forma return on tangible common equity of around 15% once synergies are fully realized. The transaction still requires regulatory and shareholder approval.

WaFd has declared a quarterly cash dividend of $0.27 per share, in line with the previous payout. The dividend is payable on September 4 to shareholders of record as of August 21, with the ex-dividend date also set for August 21. The forward yield is 2.84%, and the company has now announced a dividend of $0.27 for seven consecutive quarters.

WaFd, Inc. reported net income available to common shareholders of $62.5 million or $0.84 per diluted share for the quarter ended June 30, 2026, and said it is targeting 8% to 12% growth in its active loan portfolio going forward. President, CEO and Vice Chairman Brent Beardall highlighted that loan growth was concentrated in business lending, with commercial and industrial loans being the biggest contributor from a percentage standpoint, and tied the strategy to the company's Build 2030 plan. Executive Vice President and CFO Kelli Holz stated that absent any changes in interest rates, the net interest margin is expected to be relatively flat for the next quarter, while noting that $160 million of deferred income from the Luther Burbank acquisition is being accreted into income at a rate of $6 million to $7 million per quarter. Nonperforming assets increased slightly to $136 million or 0.49% of total assets from $132 million or 0.48% at March 31, 2026, and the net provision for credit losses in the quarter was $11 million. Management also discussed potential capital relief from proposed Basel III Endgame revisions, which could reduce risk-weighted assets by approximately 12.5% and represent an estimated $300 million of total risk-based capital relief, with implementation possible by the end of this calendar year.

WaFd posted stronger fiscal third-quarter earnings with net income of $62.5 million, or $0.84 per diluted share, up from $0.73 a year earlier. The improvement was driven by modestly higher net interest income and non-interest income, along with controlled expenses. Loan growth returned for a second straight quarter, with active portfolios up 10% sequentially and C&I lending leading the way. Loan growth outpaced repayments, even as deposit competition remained intense and total deposits fell by $192 million. Credit quality showed some pressure but remained manageable, as criticized loans rose to 4.9% of net loans and the bank booked an $11 million provision for credit losses. WaFd also highlighted strong capital levels and said it remains disciplined on buybacks and M&A while pursuing its Build 2030 deposit and business-lending goals.

WaFd Bank reported first-quarter revenues of $198.3 million, up 10.5% year on year and 4% above analyst expectations, with beats on net interest income and EPS. The broader group of 12 thrifts and mortgage finance stocks tracked delivered mixed results, with aggregate revenues beating consensus by 4.2% but next-quarter guidance coming in 6.6% below estimates. Rocket Companies posted the fastest revenue growth at 108% to $2.82 billion, while Franklin BSP Realty Trust had the weakest quarter, missing revenue estimates by 17.4%. Ellington Financial achieved the largest analyst estimate beat at 55.1% on revenues of $171.3 million, and Northwest Bancshares edged past expectations with a 0.8% revenue beat to $175.1 million.