Business Wire

Washington Federal Announces Quarterly Earnings Per Share Of $0.91

SEATTLE–(BUSINESS WIRE)–#earnings–Washington Federal, Inc. (Nasdaq: WAFD) (the “Company”), parent company of Washington Federal Bank (“WaFd Bank”), today announced quarterly earnings of $63,295,000 for the quarter ended June 30, 2022, an increase of 33.5% from $47,422,000 for the quarter ended June 30, 2021. After the effect of dividends on preferred stock, net income available for common shareholders was $0.91 per diluted share for the quarter ended June 30, 2022, compared to $0.61 per diluted share for the quarter ended June 30, 2021, a $0.30 or 49.2% increase in fully diluted earnings per common share. Return on common shareholders’ equity for the quarter ended June 30, 2022 was 12.50% compared to 8.71% for the quarter ended June 30, 2021. Return on assets for the quarter ended June 30, 2022 was 1.25% compared to 0.97% for the same quarter in the prior year.

President and Chief Executive Officer Brent J. Beardall commented, “We are pleased to report what is the best quarter in our 105-year history. Our bankers have worked diligently over the last decade to reposition our balance sheet to take advantage of rising interest rates and this quarter’s results reflect those ongoing efforts. Building our franchise by growing core deposits and expanding our commercial banking capabilities directly contributed to our net interest margin expanding from 2.82% a year ago to 3.22% this quarter, which was the primary driver of earnings growth. In addition to margin expansion, we benefited from continued growth of our loan portfolio, with net loans outstanding increasing by 15.6% since June 30, 2021. We believe that this growth rate will moderate going forward as rising costs and interest rates temper activity in the housing market.

“Inflation recently hit a 40-year high and the related cost pressures are real. We are actively managing operating expenses, including the consolidation of 25 branch locations over the last 18 months. Our efficiency ratio decreasing from 59% to 52% is tangible evidence of the operating leverage we’ve achieved over the last year by controlling expenses and growing revenue. Importantly, even as we focus on operating expenses, we continue to make strategic investments in technology. So far this year, we completed our migration from an on-premise data center to the cloud, built and launched our own internally developed consumer online banking platform and implemented the MX mobile banking solution. Couple these meaningful upgrades with future enhancements and we believe significant strides are being made toward becoming a digital first bank.

“From a macro-economic perspective, we recognize the risks on the horizon and expect future volatility as the Federal Reserve attempts to restore price stability. Given market expectations that a near-term recession is likely, we believe WaFd Bank is well positioned as our asset quality metrics remain very strong. At June 30, 2022, delinquencies totaled just 0.26% of loans outstanding, non-performing assets were only 0.25% of total assets, and net recoveries were $595,000 for the third fiscal quarter of 2022, marking eight consecutive years of net recoveries. At quarter’s end, we had credit loss reserves of $203 million and $2.2 billion of shareholders’ equity.

“Despite potential short-term challenges, the economic vitality of the markets we operate in is strong and we take pride in being a source of strength and consistent support for our clients.”

Total assets were $20.2 billion as of June 30, 2022, compared to $19.7 billion at September 30, 2021, primarily due to the $1.7 billion increase in loans receivable funded by continued growth in customer deposits (noted below) and the $1.5 billion decline in cash. Investment securities increased by $124 million since September 30, 2021.

Customer deposits totaled $16.0 billion as of June 30, 2022, an increase of $424 million or 2.7% since September 30, 2021. Transaction accounts increased by $560 million or 4.6% during that period, while time deposits decreased $137 million or 4.0%. 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 June 30, 2022, 79.3% 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 96.3% of deposits at June 30, 2022.

Borrowings from the Federal Home Loan Bank (“FHLB”) totaled $1.70 billion as of June 30, 2022, a decrease from $1.72 billion at September 30, 2021. The weighted average effective interest rate of FHLB borrowings was 1.43% as of June 30, 2022, a decrease from 1.51% at September 30, 2021. The decline in the weighted average effective interest rate was the result of replacing high-yielding, long-term FHLB borrowings with new borrowings at lower rates.

The Company had record loan originations of $2.74 billion for the third fiscal quarter of 2022, compared to $2.10 billion of originations in the same quarter one year ago. Largely offsetting loan originations in each of these quarters were loan repayments of $1.69 billion and $1.96 billion, respectively. Commercial loans represented 77% of all loan originations during the third fiscal quarter of 2022 and consumer loans accounted for the remaining 23%. 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 3.77% as of June 30, 2022, an increase from 3.47% as of September 30, 2021, due primarily to higher rates on adjustable rate loans as well as higher rates on newly originated loans.

Credit quality is being monitored closely as economic stimulus comes to an end. As of June 30, 2022, non-performing assets remained low from a historical perspective and totaled $50.4 million, or 0.25% of total assets, compared to 0.23% at March 31, 2022 and 0.22% at September 30, 2021. Delinquent loans were 0.26% of total loans at June 30, 2022, compared to 0.30% at March 31, 2022 and 0.19% at September 30, 2021. The allowance for credit losses (including the reserve for unfunded commitments) totaled $203 million as of June 30, 2022, and was 1.08% of gross loans outstanding, as compared to $199 million, or 1.22% of gross loans outstanding, at September 30, 2021. Net recoveries were $595 thousand for the third fiscal quarter of 2022, compared to net recoveries of $1.1 million for the prior year same quarter. The Company has recorded net recoveries in 34 of the last 36 quarters.

The Company recorded a $1.5 million provision for credit losses in the third fiscal quarter of 2022, compared to a $2.0 million release of allowance for credit losses in the same quarter of fiscal 2021. The provision in the quarter ended June 30, 2022 was primarily due to growth in loans receivable partially offset by improvements in the credit quality of certain loan portfolios related to strong real estate markets and collateral conditions.

The Company paid a quarterly dividend on the 4.875% Series A preferred stock on April 15, 2022. On June 3, 2022, the Company paid a regular cash dividend on common stock of $0.24 per share, which represented the 157th consecutive quarterly cash dividend. If the Board declares a cash dividend on common stock at its August 9, 2022 meeting as anticipated, the record date and payment date are likely to be August 19, 2022 and September 2, 2022, respectively. During the third fiscal quarter of 2022, the Company repurchased 2,446 shares of common stock (related to tax withholding on employee equity awards) at a weighted average price of $31.36 per share and has authorization to repurchase 3,725,874 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 $1.39, or 6.0%, to $24.66. The ratio of total tangible shareholders’ equity to tangible assets was 9.63% as of June 30, 2022.

Net interest income was $152 million for the third fiscal quarter of 2022, an increase of $23.1 million or 18.0% from the same quarter in the prior year. The increase in net interest income was due primarily to growth in average interest-earning assets outpacing growth in average interest-bearing liabilities as well as the impact of rising rates on adjustable rate assets. Average interest-earning assets increased by $684 million or 3.75% from the prior year while average interest-bearing liabilities increased $484 million or 3.44%. Average noninterest-bearing deposits grew by $387 million over the same period. The average rate earned on interest-earning assets increased by 30 basis points while the average rate paid on interest-bearing liabilities declined by 12 basis points. Net interest margin improved to 3.22% in the third fiscal quarter of 2022 compared to 2.90% for the quarter ended March 31, 2022 and 2.82% for the prior year quarter.

Total other income was $17.6 million for the third fiscal quarter of 2022 compared to $13.2 million in the prior year same quarter. The increase in other income was primarily due to an unrealized gain of $2.7 million that was recorded for certain equity investments in the quarter ended June 30, 2022.

Total other expense was $87.4 million in the third fiscal quarter of 2022, an increase of $3.8 million, or 4.5%, from the prior year’s quarter. Compensation and benefits costs increased by $4.2 million, or 9.7%, 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 third fiscal quarter of 2022 improved to 51.6%, compared to 59.0% for the same period one year ago due to income growth outpacing expense growth.

Income tax expense totaled $17.5 million for the third fiscal quarter of 2022, as compared to $12.6 million for the prior year same quarter. The effective tax rate for the quarter ended June 30, 2022 was 21.70% compared to 21.00% in the prior year same quarter and 21.24% for the full 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 209 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 higher interest rates or 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)

 

 

June 30, 2022

 

September 30, 2021

 

(In thousands, except share and ratio data)

ASSETS

 

 

 

Cash and cash equivalents

$

607,421

 

 

$

2,090,809

 

Available-for-sale securities, at fair value

 

2,150,732

 

 

 

2,138,259

 

Held-to-maturity securities, at amortized cost

 

477,884

 

 

 

366,025

 

Loans receivable, net of allowance for loan losses of $170,979 and $171,300

 

15,565,165

 

 

 

13,833,570

 

Interest receivable

 

55,985

 

 

 

50,636

 

Premises and equipment, net

 

244,232

 

 

 

255,152

 

Real estate owned

 

9,656

 

 

 

8,204

 

FHLB and FRB stock

 

78,073

 

 

 

102,863

 

Bank owned life insurance

 

237,407

 

 

 

233,263

 

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

 

309,254

 

 

 

310,019

 

Federal and state income tax assets, net

 

 

 

 

3,877

 

Other assets

 

423,022

 

 

 

257,897

 

 

$

20,158,831

 

 

$

19,650,574

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Liabilities

 

 

 

Transaction deposits

$

12,668,251

 

 

$

12,108,025

 

Time deposits

 

3,297,369

 

 

 

3,434,087

 

Total customer deposits

 

15,965,620

 

 

 

15,542,112

 

FHLB advances

 

1,700,000

 

 

 

1,720,000

 

Advance payments by borrowers for taxes and insurance

 

30,251

 

 

 

47,016

 

Federal and state income tax liabilities, net

 

4,394

 

 

 

 

Accrued expenses and other liabilities

 

238,455

 

 

 

215,382

 

 

 

17,938,720

 

 

 

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; 136,261,099 and 135,993,254 shares issued; 65,321,869 and 65,145,268 shares outstanding

 

136,261

 

 

 

135,993

 

Additional paid-in capital

 

1,685,219

 

 

 

1,678,622

 

Accumulated other comprehensive income (loss), net of taxes

 

54,227

 

 

 

69,785

 

Treasury stock, at cost; 70,939,230 and 70,847,986 shares

 

(1,590,159

)

 

 

(1,586,947

)

Retained earnings

 

1,634,563

 

 

 

1,528,611

 

 

 

2,220,111

 

 

 

2,126,064

 

 

$

20,158,831

 

 

$

19,650,574

 

CONSOLIDATED FINANCIAL HIGHLIGHTS

 

 

 

Common shareholders’ equity per share

$

29.39

 

 

$

28.03

 

Tangible common shareholders’ equity per share

 

24.66

 

 

 

23.27

 

Shareholders’ equity to total assets

 

11.01

%

 

 

10.82

%

Tangible shareholders’ equity to tangible assets

 

9.63

%

 

 

9.39

%

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

 

10.65

%

 

 

10.42

%

Weighted average rates at period end

 

 

 

Loans and mortgage-backed securities

 

3.67

%

 

 

3.37

%

Combined loans, mortgage-backed securities and investments

 

3.50

 

 

 

2.80

 

Customer accounts

 

0.32

 

 

 

0.23

 

Borrowings

 

1.43

 

 

 

1.51

 

Combined cost of customer accounts and borrowings

 

0.43

 

 

 

0.35

 

Net interest spread

 

3.07

 

 

 

2.45

 

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(UNAUDITED)

 

 

As of

SUMMARY FINANCIAL DATA

June 30,

2022

 

March 31,

2022

 

December 31,

2021

 

September 30,

2021

 

June 30,

2021

 

(In thousands, except share and ratio data)

Cash

$

607,421

 

 

$

1,947,504

 

 

$

1,880,647

 

 

$

2,090,809

 

 

$

2,251,958

 

Loans receivable, net

 

15,565,165

 

 

 

15,094,926

 

 

 

14,592,202

 

 

 

13,833,570

 

 

 

13,467,997

 

Allowance for credit losses (“ACL”)

 

203,479

 

 

 

201,384

 

 

 

201,411

 

 

 

198,800

 

 

 

198,284

 

Available-for-sale securities, at fair value

 

2,150,732

 

 

 

1,909,605

 

 

 

1,946,139

 

 

 

2,138,259

 

 

 

2,292,656

 

Held-to-maturity securities, at amortized cost

 

477,884

 

 

 

301,221

 

 

 

326,387

 

 

 

366,025

 

 

 

415,748

 

Total assets

 

20,158,831

 

 

 

20,560,279

 

 

 

19,973,171

 

 

 

19,650,574

 

 

 

19,649,509

 

Transaction deposits

 

12,668,251

 

 

 

13,139,606

 

 

 

12,550,062

 

 

 

12,108,025

 

 

 

11,700,467

 

Time deposits

 

3,297,369

 

 

 

3,251,042

 

 

 

3,351,984

 

 

 

3,434,087

 

 

 

3,537,891

 

FHLB advances

 

1,700,000

 

 

 

1,720,000

 

 

 

1,720,000

 

 

 

1,720,000

 

 

 

1,950,000

 

Total shareholders’ equity

 

2,220,111

 

 

 

2,191,701

 

 

 

2,149,126

 

 

 

2,126,064

 

 

 

2,227,240

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL HIGHLIGHTS

 

 

 

 

 

 

 

 

 

Common shareholders’ equity per share

 

29.39

 

 

 

28.97

 

 

 

28.33

 

 

 

28.03

 

 

 

27.74

 

Tangible common shareholders’ equity per share

 

24.66

 

 

 

24.23

 

 

 

23.59

 

 

 

23.27

 

 

 

23.30

 

Shareholders’ equity to total assets

 

11.01

%

 

 

10.66

%

 

 

10.76

%

 

 

10.82

%

 

 

11.33

%

Tangible shareholders’ equity to tangible assets

 

9.63

%

 

 

9.29

%

 

 

9.35

%

 

 

9.39

%

 

 

9.92

%

Tangible shareholders’ equity + ACL to tangible assets

 

10.65

%

 

 

10.29

%

 

 

10.38

%

 

 

10.42

%

 

 

10.94

%

Common shares outstanding

 

65,321,869

 

 

 

65,306,928

 

 

 

65,263,738

 

 

 

65,145,268

 

 

 

69,472,423

 

Preferred shares outstanding

 

300,000

 

 

 

300,000

 

 

 

300,000

 

 

 

300,000

 

 

 

300,000

 

Loans to customer deposits

 

97.49

%

 

 

92.09

%

 

 

91.76

%

 

 

89.01

%

 

 

88.38

%

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY

 

 

 

 

 

 

 

 

 

ACL to gross loans

 

1.08

%

 

 

1.13

%

 

 

1.18

%

 

 

1.22

%

 

 

1.26

%

ACL to non-accrual loans

 

554.76

%

 

 

598.66

%

 

 

447.99

%

 

 

626.16

%

 

 

582.40

%

Non-accrual loans to net loans

 

0.24

%

 

 

0.22

%

 

 

0.31

%

 

 

0.23

%

 

 

0.25

%

Non-accrual loans

 

36,679

 

 

 

33,639

 

 

 

44,959

 

 

 

31,749

 

 

 

34,046

 

Non-performing assets to total assets

 

0.25

%

 

 

0.23

%

 

 

0.27

%

 

 

0.22

%

 

 

0.23

%

Non-performing assets

 

50,430

 

 

 

47,243

 

 

 

54,790

 

 

 

43,625

 

 

 

45,650

 

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

Three Months Ended June 30,

 

Nine Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

(In thousands, except share and ratio data)

 

(In thousands, except share and ratio data)

INTEREST INCOME

 

 

 

 

 

 

 

Loans receivable

$

149,113

 

 

$

134,193

 

 

$

426,882

 

 

$

400,621

 

Mortgage-backed securities

 

8,618

 

 

 

5,488

 

 

 

18,069

 

 

 

19,414

 

Investment securities and cash equivalents

 

9,417

 

 

 

7,767

 

 

 

23,475

 

 

 

21,989

 

 

 

167,148

 

 

 

147,448

 

 

 

468,426

 

 

 

442,024

 

INTEREST EXPENSE

 

 

 

 

 

 

 

Customer accounts

 

9,284

 

 

 

8,906

 

 

 

25,970

 

 

 

33,745

 

FHLB advances and other borrowings

 

6,118

 

 

 

9,937

 

 

 

21,486

 

 

 

35,126

 

 

 

15,402

 

 

 

18,843

 

 

 

47,456

 

 

 

68,871

 

Net interest income

 

151,746

 

 

 

128,605

 

 

 

420,970

 

 

 

373,153

 

Provision (release) for credit losses

 

1,500

 

 

 

(2,000

)

 

 

1,500

 

 

 

1,000

 

Net interest income after provision (release)

 

150,246

 

 

 

130,605

 

 

 

419,470

 

 

 

372,153

 

OTHER INCOME

 

 

 

 

 

 

 

Gain (loss) on sale of investment securities

 

 

 

 

 

 

 

81

 

 

 

 

Gain (loss) on termination of hedging

 

 

 

 

 

 

 

 

 

 

14,110

 

Prepayment penalty on long-term debt

 

 

 

 

 

 

 

 

 

 

(13,788

)

Loan fee income

 

1,618

 

 

 

1,748

 

 

 

6,014

 

 

 

5,012

 

Deposit fee income

 

6,613

 

 

 

6,201

 

 

 

19,338

 

 

 

18,187

 

Other income

 

9,319

 

 

 

5,262

 

 

 

26,457

 

 

 

18,037

 

 

 

17,550

 

 

 

13,211

 

 

 

51,890

 

 

 

41,558

 

OTHER EXPENSE

 

 

 

 

 

 

 

Compensation and benefits

 

48,073

 

 

 

43,841

 

 

 

142,613

 

 

 

130,196

 

Occupancy

 

10,053

 

 

 

9,725

 

 

 

31,931

 

 

 

29,790

 

FDIC insurance premiums

 

2,100

 

 

 

3,900

 

 

 

7,300

 

 

 

10,918

 

Product delivery

 

4,667

 

 

 

4,075

 

 

 

14,432

 

 

 

13,413

 

Information technology

 

11,831

 

 

 

10,396

 

 

 

34,974

 

 

 

32,923

 

Other expense

 

10,679

 

 

 

11,703

 

 

 

34,183

 

 

 

29,556

 

 

 

87,403

 

 

 

83,640

 

 

 

265,433

 

 

 

246,796

 

Gain (loss) on real estate owned, net

 

448

 

 

 

(151

)

 

 

1,139

 

 

 

(566

)

Income before income taxes

 

80,841

 

 

 

60,025

 

 

 

207,066

 

 

 

166,349

 

Income tax provision

 

17,546

 

 

 

12,603

 

 

 

44,131

 

 

 

35,105

 

Net income

 

63,295

 

 

 

47,422

 

 

 

162,935

 

 

 

131,244

 

Dividends on preferred stock

 

3,656

 

 

 

3,656

 

 

 

10,969

 

 

 

6,378

 

Net income available to common shareholders

$

59,639

 

 

$

43,766

 

 

$

151,966

 

 

$

124,866

 

PER SHARE DATA

 

 

 

 

 

 

 

Basic earnings per common share

$

0.91

 

 

$

0.61

 

 

$

2.33

 

 

$

1.68

 

Diluted earnings per common share

 

0.91

 

 

 

0.61

 

 

 

2.32

 

 

 

1.68

 

Cash dividends per common share

 

0.24

 

 

 

0.23

 

 

 

0.71

 

 

 

0.68

 

Basic weighted average shares outstanding

 

65,315,481

 

 

 

71,795,157

 

 

 

65,274,488

 

 

 

74,315,911

 

Diluted weighted average shares outstanding

 

65,395,666

 

 

 

71,901,068

 

 

 

65,397,579

 

 

 

74,326,693

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

Return on average assets

 

1.25

%

 

 

0.97

%

 

 

1.08

%

 

 

0.91

%

Return on average common equity

 

12.50

 

 

 

8.71

 

 

 

10.82

 

 

 

8.17

 

Net interest margin

 

3.22

 

 

 

2.82

 

 

 

3.00

 

 

 

2.77

 

Efficiency ratio

 

51.63

 

 

 

58.98

 

 

 

56.13

 

 

 

59.51

 

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

Three Months Ended

 

June 30,

2022

 

March 31,

2022

 

December 31,

2021

 

September 30,

2021

 

June 30,

2021

 

(In thousands, except share and ratio data)

INTEREST INCOME

 

 

 

 

 

 

 

 

 

Loans receivable

$

149,113

 

 

$

139,260

 

 

$

138,509

 

 

$

137,039

 

 

$

134,193

 

Mortgage-backed securities

 

8,618

 

 

 

4,659

 

 

 

4,792

 

 

 

5,294

 

 

 

5,488

 

Investment securities and cash equivalents

 

9,417

 

 

 

6,919

 

 

 

7,139

 

 

 

7,253

 

 

 

7,767

 

 

 

167,148

 

 

 

150,838

 

 

 

150,440

 

 

 

149,586

 

 

 

147,448

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Customer accounts

 

9,284

 

 

 

8,225

 

 

 

8,461

 

 

 

8,568

 

 

 

8,906

 

FHLB advances and other borrowings

 

6,118

 

 

 

7,525

 

 

 

7,843

 

 

 

9,062

 

 

 

9,937

 

 

 

15,402

 

 

 

15,750

 

 

 

16,304

 

 

 

17,630

 

 

 

18,843

 

Net interest income

 

151,746

 

 

 

135,088

 

 

 

134,136

 

 

 

131,956

 

 

 

128,605

 

Provision (release) for credit losses

 

1,500

 

 

 

(500

)

 

 

500

 

 

 

(500

)

 

 

(2,000

)

Net interest income after provision (release)

 

150,246

 

 

 

135,588

 

 

 

133,636

 

 

 

132,456

 

 

 

130,605

 

OTHER INCOME

 

 

 

 

 

 

 

 

 

Gain (loss) on sale of investment securities

 

 

 

 

 

 

 

81

 

 

 

14

 

 

 

 

Loan fee income

 

1,618

 

 

 

2,475

 

 

 

1,921

 

 

 

1,887

 

 

 

1,748

 

Deposit fee income

 

6,613

 

 

 

6,282

 

 

 

6,443

 

 

 

6,499

 

 

 

6,201

 

Other income

 

9,319

 

 

 

6,902

 

 

 

10,236

 

 

 

10,603

 

 

 

5,262

 

 

 

17,550

 

 

 

15,659

 

 

 

18,681

 

 

 

19,003

 

 

 

13,211

 

OTHER EXPENSE

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

48,073

 

 

 

47,115

 

 

 

47,425

 

 

 

45,910

 

 

 

43,841

 

Occupancy

 

10,053

 

 

 

11,788

 

 

 

10,090

 

 

 

9,820

 

 

 

9,725

 

FDIC insurance premiums

 

2,100

 

 

 

2,100

 

 

 

3,100

 

 

 

3,450

 

 

 

3,900

 

Product delivery

 

4,667

 

 

 

5,044

 

 

 

4,721

 

 

 

5,092

 

 

 

4,075

 

Information technology

 

11,831

 

 

 

11,722

 

 

 

11,421

 

 

 

9,814

 

 

 

10,396

 

Other expense

 

10,679

 

 

 

10,648

 

 

 

12,856

 

 

 

11,577

 

 

 

11,703

 

 

 

87,403

 

 

 

88,417

 

 

 

89,613

 

 

 

85,663

 

 

 

83,640

 

Gain (loss) on real estate owned, net

 

448

 

 

 

129

 

 

 

562

 

 

 

993

 

 

 

(151

)

Income before income taxes

 

80,841

 

 

 

62,959

 

 

 

63,266

 

 

 

66,789

 

 

 

60,025

 

Income tax provision

 

17,546

 

 

 

13,600

 

 

 

12,985

 

 

 

14,418

 

 

 

12,603

 

Net income

 

63,295

 

 

 

49,359

 

 

 

50,281

 

 

 

52,371

 

 

 

47,422

 

Dividends on preferred stock

 

3,656

 

 

 

3,656

 

 

 

3,656

 

 

 

3,656

 

 

 

3,656

 

Net income available to common shareholders

$

59,639

 

 

$

45,703

 

 

$

46,625

 

 

$

48,715

 

 

$

43,766

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.91

 

 

$

0.70

 

 

$

0.72

 

 

$

0.72

 

 

$

0.61

 

Diluted earnings per common share

 

0.91

 

 

 

0.70

 

 

 

0.71

 

 

 

0.72

 

 

 

0.61

 

Cash dividends per common share

 

0.24

 

 

 

0.24

 

 

 

0.23

 

 

 

0.23

 

 

 

0.23

 

Basic weighted average shares outstanding

 

65,315,481

 

 

 

65,301,171

 

 

 

65,207,837

 

 

 

67,227,280

 

 

 

71,795,157

 

Diluted weighted average shares outstanding

 

65,395,666

 

 

 

65,445,206

 

 

 

65,350,174

 

 

 

67,235,846

 

 

 

71,901,068

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.25

%

 

 

0.98

%

 

 

1.02

%

 

 

1.07

%

 

 

0.97

%

Return on average common equity

 

12.50

 

 

 

9.80

 

 

 

10.12

 

 

 

10.36

 

 

 

8.71

 

Net interest margin

 

3.22

 

 

 

2.90

 

 

 

2.87

 

 

 

2.88

 

 

 

2.82

 

Efficiency ratio

 

51.63

 

 

 

58.65

 

 

 

58.64

 

 

 

56.75

 

 

 

58.98

 

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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