Washington Federal Announces Quarterly Earnings Per Share Of $0.70

SEATTLE--()--Washington Federal, Inc. (Nasdaq: WAFD) (the "Company"), parent company of Washington Federal Bank ("WaFd Bank"), today announced quarterly earnings of $49,359,000 for the quarter ended March 31, 2022, an increase of 10.0% from $44,871,000 for the quarter ended March 31, 2021. After the effect of dividends on preferred stock, net income available for common shareholders was $0.70 per diluted share for the quarter ended March 31, 2022, compared to $0.56 per diluted share for the quarter ended March 31, 2021, a $0.14 or 25% increase in fully diluted earnings per common share. Return on common shareholders' equity for the quarter ended March 31, 2022 was 9.80% compared to 8.17% for the quarter ended March 31, 2021. Return on assets for the quarter ended March 31, 2022 was 0.98% compared to 0.93% for the same quarter in the prior year.

President and Chief Executive Officer Brent J. Beardall commented, "This was the first full quarter since our exit from the 2018 Bank Secrecy Act ("BSA") Consent Order and we are grateful for the hard work of WaFd bankers throughout our eight western states that made these results possible. In the last year, net loans grew by $2 billion, or 16%, which is even more impressive when you consider that for the majority of that period loan prepayments occurred at record levels. Couple the record loan growth with increasing customer deposits by $1.6 billion, or 11%, over the last year and we see tangible results from the ongoing investments we are making in our bankers, technology and processes. Importantly, our net interest margin improved this quarter and credit quality continues to improve with decreases in non-performing loans, delinquencies and yet another quarter of net recoveries from previously charged off loans.

"While our operating results are strong there are macro-economic factors that give us reason for concern. Inflation is at a 40-year high and it appears the Federal Reserve’s initial assessment that inflation was transitory was incorrect. As a result, interest rates are surging, with the average 30 year mortgage rate increasing to above 5%, up from 2.75% a year ago. This will likely cause mortgage refinancings to dwindle to a fraction of what they have recently been and unfortunately, will exacerbate the housing affordability issues we are facing as a country. In addition, there is the geopolitical risk of the war in Ukraine and impact of related sanctions on commodity prices.

"While one never hopes for a credit cycle, we are realistic that they will periodically occur. It has been twelve years since the last credit cycle so it is just a matter of time. As of March 31, 2022, 83% of our loans are secured by real estate and, based on the significant increase in real estate values over the last two years, we believe we have substantial protection should values decline and borrowers experience financial difficulty.

"Our goal is to operate WaFd Bank in a way to be prepared for the next credit cycle, so we can once again be a source of strength to our clients if needed. Based on everything we know today we are optimistic that we are well positioned to withstand potential market volatility and continue our organic growth."

Total assets were $20.6 billion as of March 31, 2022, compared to $19.7 billion at September 30, 2021, primarily due to the $1.3 billion increase in loans receivable funded by continued growth in customer deposits (noted below) and cash. Investment securities decreased by $293 million since September 30, 2021.

Customer deposits totaled $16.4 billion as of March 31, 2022, an increase of $849 million or 5.5% since September 30, 2021. Transaction accounts increased by $1.0 billion or 8.5% during that period, while time deposits decreased $183 million or 5.3%. The shift in deposit mix has been the result of a deliberate deposit pricing and customer growth strategy. The focus on transaction accounts is intended to lessen sensitivity to rising interest rates and manage interest expense. As of March 31, 2022, 80.2% of the Company’s deposits were transaction accounts, up from 77.9% at September 30, 2021. Core deposits, defined as all transaction accounts and time deposits less than $250,000, totaled 97.0% of deposits at March 31, 2022.

Borrowings from the Federal Home Loan Bank ("FHLB") totaled $1.72 billion as of March 31, 2022, unchanged since September 30, 2021. The weighted average interest rate of FHLB borrowings was 1.55% as of March 31, 2022, an increase from 1.51% at September 30, 2021.

The Company had strong loan originations of $2.23 billion for the second fiscal quarter of 2022, compared to $1.98 billion of originations in the same quarter one year ago. Largely offsetting loan originations in each of these quarters were loan repayments of $1.54 billion and $1.55 billion, respectively. Commercial loans represented 78% of all loan originations during the second fiscal quarter of 2022 and consumer loans accounted for the remaining 22%. The Company views organic loan growth funded by low-cost core deposits as the highest and best use of its capital. Commercial loans are preferable as they generally have floating interest rates and shorter durations. The weighted average interest rate on the loan portfolio was 3.44% as of March 31, 2022, a decrease from 3.47% as of September 30, 2021, due primarily to payoffs of loans at higher than current market interest rates and new loans originated at current market rates.

Credit quality is being monitored closely as economic stimulus comes to an end. As of March 31, 2022, non-performing assets remained low from a historical perspective and totaled $47.2 million, or 0.23% of total assets, compared to 0.22% at September 30, 2021. Delinquent loans were 0.30% of total loans at March 31, 2022, compared to 0.31% at December 31, 2021 and 0.19% at September 30, 2021. The allowance for credit losses (including the reserve for unfunded commitments) totaled $201 million as of March 31, 2022, and was 1.13% of gross loans outstanding (1.14% when excluding PPP loans for which it was determined that no allowance was necessary due to the government guarantee), as compared to $199 million, or 1.22% of gross loans outstanding, at September 30, 2021. Net recoveries were $473 thousand for the second fiscal quarter of 2022, compared to net recoveries of $2.5 million for the prior year same quarter. The Company has recorded net recoveries in 33 of the last 35 quarters.

The Company recorded a $500 thousand release of allowance for credit losses in the second fiscal quarter of 2022, compared to no provision or release in the same quarter of fiscal 2021. The release of allowance in the quarter ended March 31, 2022 was primarily due to improvements in the credit quality of certain loan portfolios related to strong real estate markets and collateral conditions mostly offset by growth in loans receivable.

The Company paid a quarterly dividend on the 4.875% Series A preferred stock on January 15, 2022. On February 18, 2022, the Company paid a regular cash dividend on common stock of $0.24 per share, which represented the 156th consecutive quarterly cash dividend. If the Board declares a cash dividend on common stock at its May 10, 2022 meeting as anticipated, the record date and payment date are likely to be May 20, 2022 and June 3, 2022, respectively. During the second fiscal quarter of 2022, the Company repurchased 4,684 shares of common stock (related to tax withholding on employee equity awards) at a weighted average price of $34.65 per share and has authorization to repurchase 3,728,320 additional shares. The Company varies the size and pace of share repurchases depending on several factors, including share price, lending opportunities and capital levels. Since September 30, 2021, tangible common shareholders' equity per share increased by $0.96, or 4.1%, to $24.23. The ratio of total tangible shareholders' equity to tangible assets was 9.29% as of March 31, 2022.

Net interest income was $135 million for the second fiscal quarter of 2022, an increase of $11.1 million or 8.9% from the same quarter in the prior year. The increase in net interest income was primarily due to average interest-earning assets increasing by $861 million or 4.77% from the prior year while average interest-bearing liabilities increased $374 million or 2.63%. Average noninterest-bearing deposits grew by $619 million over the same period. The change in net interest income was also impacted by a 6 basis point decline in the average rate earned on interest-earning assets while the average rate paid on interest-bearing liabilities declined by 21 basis points. Net interest margin improved to 2.90% in the second fiscal quarter of 2022 compared to 2.87% for the quarter ended December 31, 2021 and 2.75% for the prior year quarter.

Total other income was $15.7 million for the second fiscal quarter of 2022 compared to $14.5 million in the prior year same quarter. The increase in other income was primarily due to loan fee income being $1.6 million higher in the quarter ended March 31, 2022 due largely to fees collected on loan early repayments.

Total other expense was $88.4 million in the second fiscal quarter of 2022, an increase of $6.7 million, or 8.2%, from the prior year's quarter. Compensation and benefits costs increased by $3.5 million, or 8.0%, over the prior year quarter primarily due to annual merit increases, higher bonus compensation accruals related to strong deposit and loan growth and investments in top talent and contract staff to support strategic initiatives. The Company’s efficiency ratio in the second fiscal quarter of 2022 was 58.7%, compared to 59.0% for the same period one year ago.

Income tax expense totaled $13.6 million for the second fiscal quarter of 2022, as compared to $11.9 million for the prior year same quarter. The effective tax rate for the quarter ended March 31, 2022 was 21.60% compared to 21.24% for the year ended September 30, 2021. The Company’s effective tax rate may vary from the statutory rate mainly due to state taxes, tax-exempt income and tax-credit investments.

WaFd Bank is headquartered in Seattle, Washington, and has 214 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.

Important Cautionary Statements

The foregoing information should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2021 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 2021 10-K, 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) the COVID-19 pandemic and the resulting governmental and societal responses; (ii) current and future economic conditions, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, and slowdowns in economic growth; (iii) financial stress on borrowers (consumers and businesses) as a result of an uncertain economic environment; (iv) global economic trends, including developments related to Ukraine and Russia, and related negative financial impacts on our borrowers; and (v) fluctuations in interest rate risk and market interest rates, including the effect on our net interest income and net interest margin. The Company undertakes no obligation to update or revise any forward-looking statement.

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(UNAUDITED)

 

 

March 31, 2022

 

September 30, 2021

 

(In thousands, except share and ratio data)

ASSETS

 

 

 

Cash and cash equivalents

$

1,947,504

 

 

$

2,090,809

 

Available-for-sale securities, at fair value

 

1,909,605

 

 

 

2,138,259

 

Held-to-maturity securities, at amortized cost

 

301,221

 

 

 

366,025

 

Loans receivable, net of allowance for loan losses of $171,384 and $171,300

 

15,094,926

 

 

 

13,833,570

 

Interest receivable

 

51,440

 

 

 

50,636

 

Premises and equipment, net

 

247,166

 

 

 

255,152

 

Real estate owned

 

9,509

 

 

 

8,204

 

FHLB and FRB stock

 

78,873

 

 

 

102,863

 

Bank owned life insurance

 

236,024

 

 

 

233,263

 

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

 

309,501

 

 

 

310,019

 

Federal and state income tax assets, net

 

3,821

 

 

 

3,877

 

Other assets

 

370,689

 

 

 

257,897

 

 

$

20,560,279

 

 

$

19,650,574

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Liabilities

 

 

 

Transaction deposits

$

13,139,606

 

 

$

12,108,025

 

Time deposits

 

3,251,042

 

 

 

3,434,087

 

Total customer deposits

 

16,390,648

 

 

 

15,542,112

 

FHLB advances

 

1,720,000

 

 

 

1,720,000

 

Advance payments by borrowers for taxes and insurance

 

39,426

 

 

 

47,016

 

Federal and state income tax liabilities, net

 

 

 

 

 

Accrued expenses and other liabilities

 

218,504

 

 

 

215,382

 

 

 

18,368,578

 

 

 

17,524,510

 

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; 136,243,712 and 135,993,254 shares issued; 65,306,928 and 65,145,268 shares outstanding

 

136,244

 

 

 

135,993

 

Additional paid-in capital

 

1,683,578

 

 

 

1,678,622

 

Accumulated other comprehensive income (loss), net of taxes

 

71,478

 

 

 

69,785

 

Treasury stock, at cost; 70,936,784 and 70,847,986 shares

 

(1,590,082

)

 

 

(1,586,947

)

Retained earnings

 

1,590,483

 

 

 

1,528,611

 

 

 

2,191,701

 

 

 

2,126,064

 

 

$

20,560,279

 

 

$

19,650,574

 

CONSOLIDATED FINANCIAL HIGHLIGHTS

 

 

 

Common shareholders' equity per share

$

28.97

 

 

$

28.03

 

Tangible common shareholders' equity per share

 

24.23

 

 

 

23.27

 

Shareholders' equity to total assets

 

10.66

%

 

 

10.82

%

Tangible shareholders' equity to tangible assets

 

9.29

%

 

 

9.39

%

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

 

10.29

%

 

 

10.42

%

Weighted average rates at period end

 

 

 

Loans and mortgage-backed securities

 

3.37

%

 

 

3.37

%

Combined loans, mortgage-backed securities and investments

 

2.93

 

 

 

2.80

 

Customer accounts

 

0.24

 

 

 

0.23

 

Borrowings

 

1.55

 

 

 

1.51

 

Combined cost of customer accounts and borrowings

 

0.36

 

 

 

0.35

 

Net interest spread

 

2.57

 

 

 

2.45

 

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(UNAUDITED)

 

 

As of

SUMMARY FINANCIAL DATA

March 31, 2022

 

December 31, 2021

 

September 30, 2021

 

June 30, 2021

 

March 31, 2021

 

(In thousands, except share and ratio data)

Cash

1,947,504

 

 

1,880,647

 

 

2,090,809

 

 

2,251,958

 

 

2,318,447

 

Loans receivable, net

15,094,926

 

 

14,592,202

 

 

13,833,570

 

 

13,467,997

 

 

13,035,423

 

Allowance for credit losses ("ACL")

201,384

 

 

201,411

 

 

198,800

 

 

198,284

 

 

199,153

 

Available-for-sale securities, at fair value

1,909,605

 

 

1,946,139

 

 

2,138,259

 

 

2,292,656

 

 

2,438,902

 

Held-to-maturity securities, at amortized cost

301,221

 

 

326,387

 

 

366,025

 

 

415,748

 

 

494,089

 

Total assets

20,560,279

 

 

19,973,171

 

 

19,650,574

 

 

19,649,509

 

 

19,533,581

 

Transaction deposits

13,139,606

 

 

12,550,062

 

 

12,108,025

 

 

11,700,467

 

 

11,228,666

 

Time deposits

3,251,042

 

 

3,351,984

 

 

3,434,087

 

 

3,537,891

 

 

3,590,755

 

FHLB advances

1,720,000

 

 

1,720,000

 

 

1,720,000

 

 

1,950,000

 

 

2,150,000

 

Total shareholders' equity

2,191,701

 

 

2,149,126

 

 

2,126,064

 

 

2,227,240

 

 

2,332,953

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL HIGHLIGHTS

 

 

 

 

 

 

 

 

 

Common shareholders' equity per share

28.97

 

 

28.33

 

 

28.03

 

 

27.74

 

 

27.82

 

Tangible common shareholders' equity per share

24.23

 

 

23.59

 

 

23.27

 

 

23.30

 

 

23.59

 

Shareholders' equity to total assets

10.66

%

 

10.76

%

 

10.82

%

 

11.33

%

 

11.94

%

Tangible shareholders' equity to tangible assets

9.29

%

 

9.35

%

 

9.39

%

 

9.92

%

 

10.53

%

Tangible shareholders' equity + ACL to tangible assets

10.29

%

 

10.38

%

 

10.42

%

 

10.94

%

 

11.56

%

Common shares outstanding

65,306,928

 

 

65,263,738

 

 

65,145,268

 

 

69,472,423

 

 

73,084,591

 

Preferred shares outstanding

300,000

 

 

300,000

 

 

300,000

 

 

300,000

 

 

300,000

 

Loans to customer deposits

92.09

%

 

91.76

%

 

89.01

%

 

88.38

%

 

87.96

%

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY

 

 

 

 

 

 

 

 

 

ACL to gross loans

1.13

%

 

1.18

%

 

1.22

%

 

1.26

%

 

1.30

%

ACL to non-accrual loans

598.66

%

 

447.99

%

 

626.16

%

 

582.40

%

 

498.44

%

Non-accrual loans to net loans

0.22

%

 

0.31

%

 

0.23

%

 

0.25

%

 

0.31

%

Non-accrual loans

33,639

 

 

44,959

 

 

31,749

 

 

34,046

 

 

39,955

 

Non-performing assets to total assets

0.23

%

 

0.27

%

 

0.22

%

 

0.23

%

 

0.25

%

Non-performing assets

47,243

 

 

54,790

 

 

43,625

 

 

45,650

 

 

48,943

 

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

 

 

 

Three Months Ended March 31,

 

Six Months Ended March 31,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

(In thousands, except share and ratio data)

 

(In thousands, except share and ratio data)

INTEREST INCOME

 

 

 

 

 

 

 

Loans receivable

$

139,260

 

 

$

132,757

 

 

$

277,769

 

 

$

266,428

 

Mortgage-backed securities

 

4,659

 

 

 

6,696

 

 

 

9,451

 

 

 

13,926

 

Investment securities and cash equivalents

 

6,919

 

 

 

7,301

 

 

 

14,058

 

 

 

14,222

 

 

 

150,838

 

 

 

146,754

 

 

 

301,278

 

 

 

294,576

 

INTEREST EXPENSE

 

 

 

 

 

 

 

Customer accounts

 

8,225

 

 

 

10,729

 

 

 

16,686

 

 

 

24,839

 

FHLB advances and other borrowings

 

7,525

 

 

 

11,991

 

 

 

15,368

 

 

 

25,189

 

 

 

15,750

 

 

 

22,720

 

 

 

32,054

 

 

 

50,028

 

Net interest income

 

135,088

 

 

 

124,034

 

 

 

269,224

 

 

 

244,548

 

Provision (release) for credit losses

 

(500

)

 

 

 

 

 

 

 

 

3,000

 

Net interest income after provision (release)

 

135,588

 

 

 

124,034

 

 

 

269,224

 

 

 

241,548

 

OTHER INCOME

 

 

 

 

 

 

 

Gain (loss) on sale of investment securities

 

 

 

 

 

 

 

81

 

 

 

 

Gain (loss) on termination of hedging

 

 

 

 

14,110

 

 

 

 

 

 

14,110

 

Prepayment penalty on long-term debt

 

 

 

 

(13,788

)

 

 

 

 

 

(13,788

)

Loan fee income

 

2,475

 

 

 

872

 

 

 

4,396

 

 

 

3,264

 

Deposit fee income

 

6,282

 

 

 

5,960

 

 

 

12,725

 

 

 

11,986

 

Other Income

 

6,902

 

 

 

7,323

 

 

 

17,138

 

 

 

12,775

 

 

 

15,659

 

 

 

14,477

 

 

 

34,340

 

 

 

28,347

 

OTHER EXPENSE

 

 

 

 

 

 

 

Compensation and benefits

 

47,115

 

 

 

43,632

 

 

 

94,540

 

 

 

86,355

 

Occupancy

 

11,788

 

 

 

10,473

 

 

 

21,878

 

 

 

20,065

 

FDIC insurance premiums

 

2,100

 

 

 

3,755

 

 

 

5,200

 

 

 

7,018

 

Product delivery

 

5,044

 

 

 

4,401

 

 

 

9,765

 

 

 

9,338

 

Information technology

 

11,722

 

 

 

10,696

 

 

 

23,143

 

 

 

22,527

 

Other

 

10,648

 

 

 

8,789

 

 

 

23,504

 

 

 

17,853

 

 

 

88,417

 

 

 

81,746

 

 

 

178,030

 

 

 

163,156

 

Gain (loss) on real estate owned, net

 

129

 

 

 

34

 

 

 

691

 

 

 

(415

)

Income before income taxes

 

62,959

 

 

 

56,799

 

 

 

126,225

 

 

 

106,324

 

Income tax provision

 

13,600

 

 

 

11,928

 

 

 

26,585

 

 

 

22,502

 

Net income

 

49,359

 

 

 

44,871

 

 

 

99,640

 

 

 

83,822

 

Dividends on preferred stock

 

3,656

 

 

 

2,722

 

 

 

7,312

 

 

 

2,722

 

Net income available to common shareholders

$

45,703

 

 

$

42,149

 

 

$

92,328

 

 

$

81,100

 

PER SHARE DATA

 

 

 

 

 

 

 

Basic earnings per common share

$

0.70

 

 

$

0.56

 

 

$

1.41

 

 

$

1.07

 

Diluted earnings per common share

 

0.70

 

 

 

0.56

 

 

 

1.41

 

 

 

1.07

 

Cash dividends per common share

 

0.24

 

 

 

0.23

 

 

 

0.47

 

 

 

0.45

 

Basic weighted average shares outstanding

 

65,301,171

 

 

 

75,354,765

 

 

 

65,253,991

 

 

 

75,576,288

 

Diluted weighted average shares outstanding

 

65,445,206

 

 

 

75,393,464

 

 

 

65,397,601

 

 

 

75,582,426

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

Return on average assets

 

0.98

%

 

 

0.93

%

 

 

1.00

%

 

 

0.88

%

Return on average common equity

 

9.80

 

 

 

8.17

 

 

 

9.96

 

 

 

7.91

 

Net interest margin

 

2.90

 

 

 

2.75

 

 

 

2.89

 

 

 

2.75

 

Efficiency ratio

 

58.65

 

 

 

59.02

 

 

 

58.65

 

 

 

59.79

 

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

Three Months Ended

 

March 31, 2022

 

December 31, 2021

 

September 30, 2021

 

June 30, 2021

 

March 31, 2021

 

(In thousands, except share and ratio data)

INTEREST INCOME

 

 

 

 

 

 

 

 

 

Loans receivable

$

139,260

 

 

$

138,509

 

 

$

137,039

 

 

$

134,193

 

 

$

132,757

 

Mortgage-backed securities

 

4,659

 

 

 

4,792

 

 

 

5,294

 

 

 

5,488

 

 

 

6,696

 

Investment securities and cash equivalents

 

6,919

 

 

 

7,139

 

 

 

7,253

 

 

 

7,767

 

 

 

7,301

 

 

 

150,838

 

 

 

150,440

 

 

 

149,586

 

 

 

147,448

 

 

 

146,754

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Customer accounts

 

8,225

 

 

 

8,461

 

 

 

8,568

 

 

 

8,906

 

 

 

10,729

 

FHLB advances and other borrowings

 

7,525

 

 

 

7,843

 

 

 

9,062

 

 

 

9,937

 

 

 

11,991

 

 

 

15,750

 

 

 

16,304

 

 

 

17,630

 

 

 

18,843

 

 

 

22,720

 

Net interest income

 

135,088

 

 

 

134,136

 

 

 

131,956

 

 

 

128,605

 

 

 

124,034

 

Provision (release) for credit losses

 

(500

)

 

 

500

 

 

 

(500

)

 

 

(2,000

)

 

 

 

Net interest income after provision (release)

 

135,588

 

 

 

133,636

 

 

 

132,456

 

 

 

130,605

 

 

 

124,034

 

OTHER INCOME

 

 

 

 

 

 

 

 

 

Gain (loss) on sale of investment securities

 

 

 

 

81

 

 

 

14

 

 

 

 

 

 

 

Gain (loss) on termination of hedging derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

14,110

 

Prepayment penalty on long-term debt

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,788

)

Loan fee income

 

2,475

 

 

 

1,921

 

 

 

1,887

 

 

 

1,748

 

 

 

872

 

Deposit fee income

 

6,282

 

 

 

6,443

 

 

 

6,499

 

 

 

6,201

 

 

 

5,960

 

Other Income

 

6,902

 

 

 

10,236

 

 

 

10,603

 

 

 

5,262

 

 

 

7,323

 

 

 

15,659

 

 

 

18,681

 

 

 

19,003

 

 

 

13,211

 

 

 

14,477

 

OTHER EXPENSE

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

47,115

 

 

 

47,425

 

 

 

45,910

 

 

 

43,841

 

 

 

43,632

 

Occupancy

 

11,788

 

 

 

10,090

 

 

 

9,820

 

 

 

9,725

 

 

 

10,473

 

FDIC insurance premiums

 

2,100

 

 

 

3,100

 

 

 

3,450

 

 

 

3,900

 

 

 

3,755

 

Product delivery

 

5,044

 

 

 

4,721

 

 

 

5,092

 

 

 

4,075

 

 

 

4,401

 

Information technology

 

11,722

 

 

 

11,421

 

 

 

9,814

 

 

 

10,396

 

 

 

10,696

 

Other

 

10,648

 

 

 

12,856

 

 

 

11,577

 

 

 

11,703

 

 

 

8,789

 

 

 

88,417

 

 

 

89,613

 

 

 

85,663

 

 

 

83,640

 

 

 

81,746

 

Gain (loss) on real estate owned, net

 

129

 

 

 

562

 

 

 

993

 

 

 

(151

)

 

 

34

 

Income before income taxes

 

62,959

 

 

 

63,266

 

 

 

66,789

 

 

 

60,025

 

 

 

56,799

 

Income tax provision

 

13,600

 

 

 

12,985

 

 

 

14,418

 

 

 

12,603

 

 

 

11,928

 

Net income

 

49,359

 

 

 

50,281

 

 

 

52,371

 

 

 

47,422

 

 

 

44,871

 

Dividends on preferred stock

 

3,656

 

 

 

3,656

 

 

 

3,656

 

 

 

3,656

 

 

 

2,722

 

Net income available to common shareholders

$

45,703

 

 

$

46,625

 

 

$

48,715

 

 

$

43,766

 

 

$

42,149

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.70

 

 

$

0.72

 

 

$

0.72

 

 

$

0.61

 

 

$

0.56

 

Diluted earnings per common share

 

0.70

 

 

 

0.71

 

 

 

0.72

 

 

 

0.61

 

 

 

0.56

 

Cash dividends per common share

 

0.24

 

 

 

0.23

 

 

 

0.23

 

 

 

0.23

 

 

 

0.23

 

Basic weighted average shares outstanding

 

65,301,171

 

 

 

65,207,837

 

 

 

67,227,280

 

 

 

71,795,157

 

 

 

75,354,765

 

Diluted weighted average shares outstanding

 

65,445,206

 

 

 

65,350,174

 

 

 

67,235,846

 

 

 

71,901,068

 

 

 

75,393,464

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

Return on average assets

 

0.98

%

 

 

1.02

%

 

 

1.07

%

 

 

0.97

%

 

 

0.93

%

Return on average common equity

 

9.80

 

 

 

10.12

 

 

 

10.36

 

 

 

8.71

 

 

 

8.17

 

Net interest margin

 

2.90

 

 

 

2.87

 

 

 

2.88

 

 

 

2.82

 

 

 

2.75

 

Efficiency ratio

 

58.65

 

 

 

58.64

 

 

 

56.75

 

 

 

58.98

 

 

 

59.02

 

 

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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Contacts

Washington Federal, Inc.
425 Pike Street, Seattle, WA 98101
Brad Goode, SVP, Chief Marketing Officer
206-626-8178
brad.goode@wafd.com