We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
WaFd Inc | NASDAQ:WAFD | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.41 | 1.46% | 28.45 | 23.15 | 30.03 | 28.70 | 28.205 | 28.50 | 220,092 | 05:00:09 |
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
View source version on businesswire.com: https://www.businesswire.com/news/home/20220413005854/en/
Washington Federal, Inc. 425 Pike Street, Seattle, WA 98101 Brad Goode, SVP, Chief Marketing Officer 206-626-8178 brad.goode@wafd.com
1 Year WaFd Chart |
1 Month WaFd Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions