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Washington Federal Announces Quarterly Earnings Per Share Of $0.89

Washington Federal, Inc. (Nasdaq: WAFD) (the "Company"), parent company of Washington Federal Bank (the "Bank"), today announced quarterly earnings of $61,775,000 for the quarter ended June 30, 2023, a decrease of 2.4% from $63,295,000 for the quarter ended June 30, 2022. After the effect of dividends on preferred stock, net income available for common shareholders was $0.89 per diluted share for the quarter ended June 30, 2023, compared to $0.91 per diluted share for the quarter ended June 30, 2022, a $0.02 or 2.1% decrease in fully diluted earnings per common share. Return on common shareholders' equity for the quarter ended June 30, 2023 was 11.1% compared to 12.5% for the quarter ended June 30, 2022. Return on assets for the quarter ended June 30, 2023 was 1.1% compared to 1.3% for the same quarter in the prior year.

President and Chief Executive Officer Brent J. Beardall commented, "I am pleased to share that during the quarter we experienced net deposit inflows totaling $259 million, resulting in positive deposit growth for the fiscal year-to-date. This is a continued reflection of the confidence our clients place in WaFd. Net income is only slightly below the same quarter last year, even with the challenging interest rate environment and the turmoil in the banking industry over the last six months and we view the slowing pace of margin contraction to be a positive sign for our future. Specifically, our net interest margin contracted 42 basis points from 3.68% for the month of December 2022 compared with 3.26% for the month of March 2023. Using a consistent comparison, the contraction was only 5 basis points from March compared to 3.21% for the month of June 2023.

"After nine consecutive years of net recoveries, during the last two quarters we have experienced net loan charge-offs. It is clear the rapid rise in interest rates is causing some stress for a limited sub-set of borrowers, but taken in its entirety, credit quality remains a positive differentiator for the Bank. Over 85% of our loans are secured by real estate with an estimated average current loan to value ratio under 45%. While there will likely be further stress for certain segments, we believe the Bank's conservative underwriting will accrue to our long-term benefit.

"While we cannot directly control market forces affecting the valuation of our stock, we can effect change in tangible book value per share. Over the past 12 months, we increased tangible book value per share by $2.92 or 11.8%. As of June 30, 2023, WaFd stock was trading at 7.4 times annualized quarterly earnings, which we believe trades below our intrinsic value. Ultimately, we will need to demonstrate to investors that our margin is sustainable over the long-term. In the meantime, the current environment is shaping up to be a 'reset' for regional banks and we believe we are well positioned to capitalize on disruptions in the market."

Total assets were $22.6 billion as of June 30, 2023, compared to $20.8 billion at September 30, 2022, primarily due to the $1.3 billion, or 7.9%, increase in net loans. In addition, cash increased by $455.7 million while investment securities decreased by $43.9 million.

The Bank's held to maturity ("HTM") investments were $434 million as of June 30, 2023, with a net unrealized loss of $40 million. Although not permitted by U.S. Generally Accepted Accounting Principles ("GAAP"), including these unrealized losses in accumulated other comprehensive income would result in a ratio of shareholder's equity to total assets of 10.44% compared to 10.62%, as reported.

Customer deposits totaled $16.1 billion as of June 30, 2023, an increase of $90.9 million or 0.6% since September 30, 2022. Transaction accounts decreased by $1.4 billion or 11.3% during that period, while time deposits increased $1.5 billion or 45.7%. As of June 30, 2023, 69.8% of the Company’s deposits were held in transaction accounts, down from 79.2% at September 30, 2022. Core deposits, defined as all transaction accounts and time deposits less than $250,000, totaled 89.7% of deposits at June 30, 2023. Uninsured deposits were 25% as of June 30, 2023, a decrease from 27% as of March 31, 2023. Our focus historically has been on growing transaction accounts to lessen sensitivity to rising interest rates and manage interest expense, however, the current rate environment has resulted in increased demand for higher yielding deposits.

Borrowings totaled $3.8 billion as of June 30, 2023, an increase from $2.1 billion at September 30, 2022. The effective weighted average interest rate of borrowings was 3.93% as of June 30, 2023, an increase from 2.02% at September 30, 2022.

The Bank had loan originations of $0.9 billion for the third fiscal quarter of 2023, compared to $2.7 billion of originations in the same quarter one year ago. Offsetting loan originations in each of these quarters were loan repayments of $1.1 billion and $1.7 billion, respectively. In addition to the slowing repayments, which are directly correlated with the rapid rise in interest rates, the Bank has intentionally slowed new loan production to temper net loan growth. Even so, net loans outstanding grew for the quarter due to the funding of construction loans previously originated. Commercial loans represented 63% of all loan originations during the third fiscal quarter of 2023 and consumer loans accounted for the remaining 37%. Commercial loans are preferable as they generally have floating interest rates and shorter durations. The weighted average interest rate on the loan portfolio was 5.11% at June 30, 2023, an increase from 4.25% as of September 30, 2022, due primarily to higher rates on adjustable rate loans as well as higher rates on newly originated loans.

Credit quality continues to be monitored closely which is of particular importance in light of the shifting economic and monetary environment. As of June 30, 2023, non-performing assets increased to $67.0 million, or 0.3% of total assets as result of the deterioration of one large commercial loan. This compares to 0.3% of total assets at June 30, 2022 and 0.2% at September 30, 2022. Delinquent loans were 0.3% of total loans at June 30, 2023, compared to 0.3% at June 30, 2022 and 0.2% at September 30, 2022. The allowance for credit losses (including the reserve for unfunded commitments) totaled $204.6 million as of June 30, 2023, and was 1.03% of gross loans outstanding, as compared to $205.3 million, or 1.06% of gross loans outstanding, at September 30, 2022. Net charge-offs were $10.4 million for the third fiscal quarter of 2023, compared to net recoveries of $0.6 million for the prior year same quarter.

The Bank recorded a $9.0 million provision for credit losses in the third fiscal quarter of 2023, compared to a $1.5 million provision in the same quarter of fiscal 2022. The provision in the quarter ended June 30, 2023 was primarily due to one charge-off, offset by reduced unfunded commitment balances combined with the uncertain economic outlook amid concerns around a possible recession and recent macro-economic events.

The Company paid a quarterly dividend on the 4.875% Series A preferred stock on April 15, 2023. On June 2, 2023, the Company paid a regular cash dividend on common stock of $0.25 per share, which represented the 161st consecutive quarterly cash dividend. During the quarter, the Company repurchased 1,116,649 shares of common stock at a weighted average price of $25.62 per share and has authorization to repurchase 2,559,611 additional shares. Tangible common shareholders' equity per share increased by $2.09, or 8.2%, to $27.58 since September 30, 2022. The ratio of total tangible shareholders' equity to tangible assets was 9.4% as of June 30, 2023.

Net interest income was $168.7 million for the third fiscal quarter of 2023, an increase of $17.0 million or 11.2% from the same quarter in the prior year. The increase in net interest income was primarily due to the $2.0 billion increase in average loans outstanding during the quarter despite a decrease in the interest rate spread of 34 basis points. The decrease in the spread was the result of an increase of 209 basis points in the average rate paid on interest-bearing liabilities outpacing a 174 basis point increase in the average rate earned on interest-earning assets. Net interest margin improved to 3.27% in the third fiscal quarter of 2023 compared to 3.22% for the prior year quarter.

Total other income was $13.8 million for the third fiscal quarter of 2023 compared to $17.6 million in the prior year same quarter. Loan fee income decreased by $0.6 million when compared to the same quarter in the prior year due to a reduction in loan production. In addition, a one-time loss of $0.9 million recorded on our client rate swap program due to the LIBOR rate transition completed this quarter. Other income decreased $2.3 million due to a $2.7 million in unrealized gains on certain equity investments which were recorded in the quarter ended June 30, 2022.

Total other expense was $94.7 million in the third fiscal quarter of 2023, an increase of $7.3 million, or 8.3%, from the prior year's quarter. Compensation and benefits costs increased by $2.4 million, or 5.0%, over the prior year quarter primarily due to annual merit increases and investments in strategic initiatives combined with a reduction in capitalized compensation as loan originations have decreased. FDIC premiums increased by $3.3 million compared to the same period last year. Merger related expenses of $0.5 million were also included in total other expense. Despite these increases, the Company’s efficiency ratio in the third fiscal quarter of 2023 remained stable at 51.9%, compared to 51.6% for the same period one year ago.

Income tax expense totaled $17.7 million for the third fiscal quarter of 2023, as compared to $17.5 million for the prior year same quarter. The effective tax rate for the quarter ended June 30, 2023 was 22.29% compared to 21.70% in the prior year same quarter and 21.23% for the year ended September 30, 2022. The Company’s effective tax rate varies from the statutory rate mainly due to state taxes, tax-exempt income, tax-credit investments and miscellaneous non-deductible expenses.

WaFd Bank is headquartered in Seattle, Washington, and has 199 branches in eight western states. To find out more about WaFd Bank, please visit our website www.wafdbank.com. The Company uses its website to distribute financial and other material information about the Company.

Non-GAAP Financial Measures

The adjusted ratio of shareholders' equity to total assets on June 30, 2023, discussed above, is calculated by deducting the $40 million in unrealized losses on HTM investments from total GAAP equity of $2.4 billion, then dividing the adjusted equity by total assets of $22.6 billion to arrive at 10.44%. The unadjusted ratio as of June 30, 2023, was 10.62%.

Important Cautionary Statements

The foregoing information should be read in conjunction with the financial statements, notes and other information contained in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

This press release contains statements about the Company’s future that are not statements of historical or current fact. These statements are “forward looking statements” for purposes of applicable securities laws, and are based on current information and/or management's good faith belief as to future events. Words such as “anticipate,” “believe,” “continue,” “expect,” “goal,” “intend,” “should,” “strategy,” “will,” or similar expressions signify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance. By their nature, forward-looking statements involve inherent risk and uncertainties, including the following risks and uncertainties, and those risks and uncertainties more fully discussed under “Risk Factors” in the Company’s September 30, 2022 10-K, and Quarterly Reports on Form 10-Q which could cause actual performance to differ materially from that anticipated by any forward-looking statements. In particular, any forward-looking statements are subject to risks and uncertainties related to (i) current and future economic conditions, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, a potential recession, and slowdowns in economic growth; (ii) fluctuations in interest rate risk and market interest rates, including the effect on our net interest income and net interest margin, (iii) financial stress on borrowers (consumers and businesses) as a result of higher interest rates or an uncertain economic environment; (iv) changes in deposit flows or loan demands; (v) the effect of COVID-19 and other infectious illness outbreaks that may arise in the future and the resulting governmental and societal responses; (vi) global economic trends, including developments related to Ukraine and Russia, and related negative financial impacts on our borrowers; (vii) risks related to the proposed merger with Luther Burbank Corporation; (viii) our ability to identify and address cyber-security risks, including security breaches, “denial of service attacks,” “hacking” and identity theft; and (ix) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services. The Company undertakes no obligation to update or revise any forward-looking statement.

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(UNAUDITED)

 

 

June 30, 2023

 

September 30, 2022

 

(In thousands, except share and ratio data)

ASSETS

 

 

 

Cash and cash equivalents

$

1,139,643

 

 

$

683,965

 

Available-for-sale securities, at fair value

 

2,036,233

 

 

 

2,051,037

 

Held-to-maturity securities, at amortized cost

 

434,172

 

 

 

463,299

 

Loans receivable, net of allowance for loan losses of $178,069 and $172,808

 

17,384,188

 

 

 

16,113,564

 

Interest receivable

 

81,931

 

 

 

63,872

 

Premises and equipment, net

 

237,339

 

 

 

243,062

 

Real estate owned

 

8,371

 

 

 

6,667

 

FHLB and FRB stock

 

130,875

 

 

 

95,073

 

Bank owned life insurance

 

241,351

 

 

 

237,931

 

Intangible assets, including goodwill of $303,457 and $303,457

 

309,069

 

 

 

309,009

 

Other assets

 

549,416

 

 

 

504,652

 

 

$

22,552,588

 

 

$

20,772,131

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Liabilities

 

 

 

Transaction deposits

$

11,256,575

 

 

$

12,691,527

 

Time deposits

 

4,863,849

 

 

 

3,338,043

 

Total customer deposits

 

16,120,424

 

 

 

16,029,570

 

Borrowings

 

3,750,000

 

 

 

2,125,000

 

Advance payments by borrowers for taxes and insurance

 

33,516

 

 

 

50,051

 

Federal and state income tax liabilities, net

 

1,091

 

 

 

3,306

 

Accrued expenses and other liabilities

 

253,491

 

 

 

289,944

 

 

 

20,158,522

 

 

 

18,497,871

 

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; 136,457,717 and 136,270,886 shares issued; 64,721,190 and 65,330,126 shares outstanding

 

136,458

 

 

 

136,271

 

Additional paid-in capital

 

1,685,587

 

 

 

1,686,975

 

Accumulated other comprehensive income (loss), net of taxes

 

47,351

 

 

 

52,481

 

Treasury stock, at cost; 71,736,527 and 70,940,760 shares

 

(1,612,494

)

 

 

(1,590,207

)

Retained earnings

 

1,837,164

 

 

 

1,688,740

 

 

 

2,394,066

 

 

 

2,274,260

 

 

$

22,552,588

 

 

$

20,772,131

 

CONSOLIDATED FINANCIAL HIGHLIGHTS

 

 

 

Common shareholders' equity per share

$

32.36

 

 

$

30.22

 

Tangible common shareholders' equity per share

 

27.58

 

 

 

25.49

 

Shareholders' equity to total assets

 

10.62

%

 

 

10.95

%

Tangible shareholders' equity to tangible assets

 

9.37

%

 

 

9.60

%

Tangible shareholders' equity + allowance for credit losses to tangible assets

 

10.17

%

 

 

10.45

%

Weighted average rates at period end

 

 

 

Loans

 

5.11

%

 

 

4.25

%

Loans and mortgage-backed securities

 

4.97

 

 

 

4.13

 

Combined loans, mortgage-backed securities and investments

 

4.74

 

 

 

4.04

 

Customer accounts

 

1.82

 

 

 

0.51

 

Borrowings

 

3.93

 

 

 

2.02

 

Combined cost of customer accounts and borrowings

 

2.22

 

 

 

0.68

 

Net interest spread

 

2.72

 

 

 

3.36

 

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(UNAUDITED)

 

 

As of

SUMMARY FINANCIAL DATA

June 30,

2023

 

March 31,

2023

 

December 31,

2022

 

September 30,

2022

 

June 30,

2022

 

(In thousands, except share and ratio data)

Cash

$

1,139,643

 

 

$

1,118,544

 

 

$

645,862

 

 

$

683,965

 

 

$

607,421

 

Loans receivable, net

 

17,384,188

 

 

 

17,271,906

 

 

 

16,993,588

 

 

 

16,113,564

 

 

 

15,565,165

 

Allowance for credit losses ("ACL")

 

204,569

 

 

 

205,920

 

 

 

208,297

 

 

 

205,308

 

 

 

203,479

 

Available-for-sale securities, at fair value

 

2,036,233

 

 

 

2,006,286

 

 

 

2,059,837

 

 

 

2,051,037

 

 

 

2,150,732

 

Held-to-maturity securities, at amortized cost

 

434,172

 

 

 

445,222

 

 

 

453,443

 

 

 

463,299

 

 

 

477,884

 

Total assets

 

22,552,588

 

 

 

22,325,211

 

 

 

21,653,811

 

 

 

20,772,131

 

 

 

20,158,831

 

Transaction deposits

 

11,256,575

 

 

 

11,880,343

 

 

 

12,547,832

 

 

 

12,691,527

 

 

 

12,668,251

 

Time deposits

 

4,863,849

 

 

 

3,980,605

 

 

 

3,412,203

 

 

 

3,338,043

 

 

 

3,297,369

 

Borrowings

 

3,750,000

 

 

 

3,800,000

 

 

 

3,075,000

 

 

 

2,125,000

 

 

 

1,700,000

 

Total shareholders' equity

 

2,394,066

 

 

 

2,375,117

 

 

 

2,324,381

 

 

 

2,274,260

 

 

 

2,220,111

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL HIGHLIGHTS

 

 

 

 

 

 

 

 

 

Common shareholders' equity per share

 

32.36

 

 

 

31.54

 

 

 

30.96

 

 

 

30.22

 

 

 

29.39

 

Tangible common shareholders' equity per share

 

27.58

 

 

 

26.85

 

 

 

26.24

 

 

 

25.49

 

 

 

24.66

 

Shareholders' equity to total assets

 

10.62

%

 

 

10.64

%

 

 

10.73

%

 

 

10.95

%

 

 

11.01

%

Tangible shareholders' equity to tangible assets

 

9.37

%

 

 

9.39

%

 

 

9.44

%

 

 

9.60

%

 

 

9.63

%

Tangible shareholders' equity + ACL to tangible assets

 

10.17

%

 

 

10.19

%

 

 

10.27

%

 

 

10.45

%

 

 

10.65

%

Common shares outstanding

 

64,721,190

 

 

 

65,793,099

 

 

 

65,387,745

 

 

 

65,330,126

 

 

 

65,321,869

 

Preferred shares outstanding

 

300,000

 

 

 

300,000

 

 

 

300,000

 

 

 

300,000

 

 

 

300,000

 

Loans to customer deposits

 

107.84

%

 

 

108.90

%

 

 

106.48

%

 

 

100.52

%

 

 

97.49

%

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY

 

 

 

 

 

 

 

 

 

ACL to gross loans

 

1.0

%

 

 

1.0

%

 

 

1.0

%

 

 

1.1

%

 

 

1.1

%

ACL to non-accrual loans

 

370.09

%

 

 

595.04

%

 

 

713.83

%

 

 

594.51

%

 

 

554.76

%

Non-accrual loans to net loans

 

0.32

%

 

 

0.20

%

 

 

0.17

%

 

 

0.21

%

 

 

0.24

%

Non-accrual loans

$

55,276

 

 

$

34,606

 

 

$

29,180

 

 

$

34,534

 

 

$

36,679

 

Non-performing assets to total assets

 

0.30

%

 

 

0.21

%

 

 

0.18

%

 

 

0.21

%

 

 

0.25

%

Non-performing assets

$

67,000

 

 

$

46,785

 

 

$

38,650

 

 

$

44,554

 

 

$

50,430

 

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

Three Months Ended June 30,

 

Nine Months Ended June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

(In thousands, except share and ratio data)

 

(In thousands, except share and ratio data)

INTEREST INCOME

 

 

 

 

 

 

 

Loans receivable

$

232,167

 

 

$

149,113

 

 

$

659,070

 

 

$

426,882

 

Mortgage-backed securities

 

10,454

 

 

 

8,618

 

 

 

31,489

 

 

 

18,069

 

Investment securities and cash equivalents

 

29,859

 

 

 

9,417

 

 

 

70,686

 

 

 

23,475

 

 

 

272,480

 

 

 

167,148

 

 

 

761,245

 

 

 

468,426

 

INTEREST EXPENSE

 

 

 

 

 

 

 

Customer accounts

 

70,062

 

 

 

9,284

 

 

 

153,831

 

 

 

25,970

 

FHLB advances and other borrowings

 

33,718

 

 

 

6,118

 

 

 

80,877

 

 

 

21,486

 

 

 

103,780

 

 

 

15,402

 

 

 

234,708

 

 

 

47,456

 

Net interest income

 

168,700

 

 

 

151,746

 

 

 

526,537

 

 

 

420,970

 

Provision (release) for credit losses

 

9,000

 

 

 

1,500

 

 

 

15,000

 

 

 

1,500

 

Net interest income after provision (release)

 

159,700

 

 

 

150,246

 

 

 

511,537

 

 

 

419,470

 

OTHER INCOME

 

 

 

 

 

 

 

Gain (loss) on sale of investment securities

 

 

 

 

 

 

 

 

 

 

81

 

Gain (loss) on hedging derivatives

 

(926

)

 

 

 

 

 

(900

)

 

 

 

Prepayment penalty on long-term debt

 

 

 

 

 

 

 

 

 

 

 

Loan fee income

 

1,000

 

 

 

1,618

 

 

 

3,154

 

 

 

6,014

 

Deposit fee income

 

6,660

 

 

 

6,613

 

 

 

19,201

 

 

 

19,338

 

Other income

 

7,037

 

 

 

9,319

 

 

 

16,412

 

 

 

26,457

 

 

 

13,771

 

 

 

17,550

 

 

 

37,867

 

 

 

51,890

 

OTHER EXPENSE

 

 

 

 

 

 

 

Compensation and benefits

 

50,456

 

 

 

48,073

 

 

 

150,970

 

 

 

142,613

 

Occupancy

 

10,444

 

 

 

10,053

 

 

 

31,464

 

 

 

31,931

 

FDIC insurance premiums

 

5,350

 

 

 

2,100

 

 

 

13,025

 

 

 

7,300

 

Product delivery

 

5,217

 

 

 

4,667

 

 

 

15,154

 

 

 

14,432

 

Information technology

 

11,661

 

 

 

11,831

 

 

 

36,775

 

 

 

34,974

 

Other expense

 

11,571

 

 

 

10,679

 

 

 

36,470

 

 

 

34,183

 

 

 

94,699

 

 

 

87,403

 

 

 

283,858

 

 

 

265,433

 

Gain (loss) on real estate owned, net

 

722

 

 

 

448

 

 

 

411

 

 

 

1,139

 

Income before income taxes

 

79,494

 

 

 

80,841

 

 

 

265,957

 

 

 

207,066

 

Income tax provision

 

17,719

 

 

 

17,546

 

 

 

58,739

 

 

 

44,131

 

Net income

 

61,775

 

 

 

63,295

 

 

 

207,218

 

 

 

162,935

 

Dividends on preferred stock

 

3,656

 

 

 

3,656

 

 

 

10,969

 

 

 

10,969

 

Net income available to common shareholders

$

58,119

 

 

$

59,639

 

 

$

196,249

 

 

$

151,966

 

PER SHARE DATA

 

 

 

 

 

 

 

Basic earnings per common share

$

0.89

 

 

$

0.91

 

 

$

3.00

 

 

$

2.33

 

Diluted earnings per common share

 

0.89

 

 

 

0.91

 

 

 

3.00

 

 

 

2.32

 

Cash dividends per common share

 

0.25

 

 

 

0.24

 

 

 

0.74

 

 

 

0.71

 

Basic weighted average shares outstanding

 

65,194,880

 

 

 

65,315,481

 

 

 

65,348,709

 

 

 

65,274,488

 

Diluted weighted average shares outstanding

 

65,212,846

 

 

 

65,395,666

 

 

 

65,442,910

 

 

 

65,397,579

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

Return on average assets

 

1.12

%

 

 

1.25

%

 

 

1.28

%

 

 

1.08

%

Return on average common equity

 

11.09

 

 

 

12.50

 

 

 

12.72

 

 

 

10.82

 

Net interest margin

 

3.27

 

 

 

3.22

 

 

 

3.49

 

 

 

3.00

 

Efficiency ratio

 

51.90

 

 

 

51.63

 

 

 

50.29

 

 

 

56.13

 

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

Three Months Ended

 

June 30,

2023

 

March 31,

2023

 

December 31,

2022

 

September 30,

2022

 

June 30,

2022

 

(In thousands, except share and ratio data)

INTEREST INCOME

 

 

 

 

 

 

 

 

 

Loans receivable

$

232,167

 

 

$

222,957

 

 

$

203,946

 

 

$

174,710

 

 

$

149,113

 

Mortgage-backed securities

 

10,454

 

 

 

10,422

 

 

 

10,613

 

 

 

8,263

 

 

 

8,618

 

Investment securities and cash equivalents

 

29,859

 

 

 

21,967

 

 

 

18,860

 

 

 

14,960

 

 

 

9,417

 

 

 

272,480

 

 

 

255,346

 

 

 

233,419

 

 

 

197,933

 

 

 

167,148

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Customer accounts

 

70,062

 

 

 

52,123

 

 

 

31,646

 

 

 

17,071

 

 

 

9,284

 

FHLB advances and other borrowings

 

33,718

 

 

 

28,185

 

 

 

18,974

 

 

 

7,243

 

 

 

6,118

 

 

 

103,780

 

 

 

80,308

 

 

 

50,620

 

 

 

24,314

 

 

 

15,402

 

Net interest income

 

168,700

 

 

 

175,038

 

 

 

182,799

 

 

��

173,619

 

 

 

151,746

 

Provision (release) for credit losses

 

9,000

 

 

 

3,500

 

 

 

2,500

 

 

 

1,500

 

 

 

1,500

 

Net interest income after provision (release)

 

159,700

 

 

 

171,538

 

 

 

180,299

 

 

 

172,119

 

 

 

150,246

 

OTHER INCOME

 

 

 

 

 

 

 

 

 

Gain (loss) on sale of investment securities

 

 

 

 

 

 

 

 

 

 

18

 

 

 

 

Gain (loss) on hedging derivatives

 

(926

)

 

 

26

 

 

 

 

 

 

 

 

 

 

Loan fee income

 

1,000

 

 

 

652

 

 

 

1,502

 

 

 

1,154

 

 

 

1,618

 

Deposit fee income

 

6,660

 

 

 

6,188

 

 

 

6,353

 

 

 

6,604

 

 

 

6,613

 

Other income

 

7,037

 

 

 

3,206

 

 

 

6,169

 

 

 

6,706

 

 

 

9,319

 

 

 

13,771

 

 

 

10,072

 

 

 

14,024

 

 

 

14,482

 

 

 

17,550

 

OTHER EXPENSE

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

50,456

 

 

 

51,444

 

 

 

49,070

 

 

 

51,304

 

 

 

48,073

 

Occupancy

 

10,444

 

 

 

10,918

 

 

 

10,102

 

 

 

10,568

 

 

 

10,053

 

FDIC insurance premiums

 

5,350

 

 

 

4,000

 

 

 

3,675

 

 

 

2,231

 

 

 

2,100

 

Product delivery

 

5,217

 

 

 

5,316

 

 

 

4,621

 

 

 

5,104

 

 

 

4,667

 

Information technology

 

11,661

 

 

 

12,785

 

 

 

12,329

 

 

 

12,228

 

 

 

11,831

 

Other expense

 

11,571

 

 

 

12,418

 

 

 

12,481

 

 

 

11,707

 

 

 

10,679

 

 

 

94,699

 

 

 

96,881

 

 

 

92,278

 

 

 

93,142

 

 

 

87,403

 

Gain (loss) on real estate owned, net

 

722

 

 

 

(199

)

 

 

(112

)

 

 

(488

)

 

 

448

 

Income before income taxes

 

79,494

 

 

 

84,530

 

 

 

101,933

 

 

 

92,971

 

 

 

80,841

 

Income tax provision

 

17,719

 

 

 

18,596

 

 

 

22,424

 

 

 

19,576

 

 

 

17,546

 

Net income

 

61,775

 

 

 

65,934

 

 

 

79,509

 

 

 

73,395

 

 

 

63,295

 

Dividends on preferred stock

 

3,656

 

 

 

3,656

 

 

 

3,656

 

 

 

3,656

 

 

 

3,656

 

Net income available to common shareholders

$

58,119

 

 

$

62,278

 

 

$

75,853

 

 

$

69,739

 

 

$

59,639

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.89

 

 

$

0.95

 

 

$

1.16

 

 

$

1.07

 

 

$

0.91

 

Diluted earnings per common share

 

0.89

 

 

 

0.95

 

 

 

1.16

 

 

 

1.07

 

 

 

0.91

 

Cash dividends per common share

 

0.25

 

 

 

0.25

 

 

 

0.24

 

 

 

0.24

 

 

 

0.24

 

Basic weighted average shares outstanding

 

65,194,880

 

 

 

65,511,131

 

 

 

65,341,974

 

 

 

65,326,706

 

 

 

65,315,481

 

Diluted weighted average shares outstanding

 

65,212,846

 

 

 

65,551,185

 

 

 

65,430,690

 

 

 

65,423,817

 

 

 

65,395,666

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.12

%

 

 

1.21

%

 

 

1.50

%

 

 

1.44

%

 

 

1.25

%

Return on average common equity

 

11.09

 

 

 

12.01

 

 

 

15.15

 

 

 

14.22

 

 

 

12.50

 

Net interest margin

 

3.27

 

 

 

3.51

 

 

 

3.69

 

 

 

3.64

 

 

 

3.22

 

Efficiency ratio

 

51.90

 

 

 

52.34

 

 

 

46.78

 

 

 

49.52

 

 

 

51.63

 

 

Washington Federal Announces Quarterly Earnings Per Share of $0.89

Contacts

Washington Federal, Inc.

425 Pike Street, Seattle, WA 98101

Brad Goode, SVP, Chief Marketing Officer

206-626-8178

brad.goode@wafd.com

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