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Washington Federal Announces 3rd Quarter Earnings of $33,169,000 and an Increase in Fiscal Year to Date Earnings SEATTLE, WA--(MARKET WIRE)--Jul 21, 2008 -- Washington Federal, Inc. (WFSL - News), parent
company of Washington Federal Savings, today announced earnings
of
$33,169,000 or $.38 per diluted share for the quarter ended
June 30, 2008,
compared to $34,265,000 or $.39 per diluted share for the
quarter ended
June 30, 2007, a 3.2% decrease in earnings. For the nine
months ended June
30, 2008 earnings were $101,669,000 or $1.16 per diluted
share, compared to
$101,132,000 or $1.15 per diluted share for the nine months
ended June 30,
2007, a .5% increase in earnings.
The third fiscal quarter produced a return on assets of 1.13%, while return on equity amounted to 9.61%. Nonperforming assets totaled $85.1 million or 0.72% of assets as of June 30, 2008. In response to the continued decline in asset quality caused by the current housing cycle, the Company recorded a provision for loan losses of $13,216,000 for the quarter. Net charge offs amounted to $6,163,000 for the quarter. During the quarter the Company also sold real estate for a gain of $3,164,000. Net interest spread increased from 2.12% at June 30, 2007 to 2.69% at June 30, 2008, contributing to the $14,245,000 increase in net interest income for the same period. Chief Executive Officer Roy M. Whitehead commented, "The current fiscal year continues to play out much as we forecasted at its beginning. Loan losses in the land and construction portfolio have increased significantly, but have been largely offset by an improved spread between asset yields and funding costs. We expect both trends to continue in the near term. In light of overall concerns about the industry, investors should also know that management has significant excess capital at its disposal to deal aggressively and proactively with asset quality issues. Washington Federal will continue to be one of the strongest financial institutions in the U.S." On July 25, 2008, Washington Federal will pay a cash dividend of $.21 per share to common stockholders of record on July 11, 2008. This will be the Company's 102nd consecutive quarterly cash dividend. On July 14, 2008, Washington Federal opened a new branch in Redmond, Oregon. The Company expects to open a second branch in Bothell, Washington during its 4th fiscal quarter. Washington Federal Savings, with headquarters in Seattle, Washington, has 147 offices in eight western states.
WASHINGTON FEDERAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
June 30, September 30,
2008 2007
------------ ------------
(In thousands, except per
share data)
ASSETS
Cash and cash equivalents $ 70,071 $ 61,378
Available-for-sale securities, including
mortgage-backed securities of $1,454,404 1,582,663 1,515,688
Held-to-maturity securities, including
mortgage-backed securities of $119,392 127,177 138,373
Loans receivable, net 9,425,874 8,188,278
Interest receivable 54,084 49,611
Premises and equipment, net 117,734 74,807
Real estate held for sale 20,902 4,873
FHLB stock 144,841 132,397
Intangible assets, net 222,248 107,245
Other assets 29,653 12,767
------------ ------------
$ 11,795,247 $ 10,285,417
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Customer accounts
Savings and demand accounts $ 7,160,466 $ 5,979,049
Repurchase agreements with customers 13,536 17,736
------------ ------------
7,174,002 5,996,785
FHLB advances 2,001,146 1,760,979
Other borrowings 1,115,600 1,075,000
Advance payments by borrowers for taxes and
insurance 22,028 31,824
Federal and state income taxes 31,670 38,032
Accrued expenses and other liabilities 82,407 64,670
------------ ------------
10,426,853 8,967,290
Stockholders' equity
Common stock, $1.00 par value, 300,000,000
shares authorized; 105,056,998 and 104,921,450
shares issued; 87,828,584 and 87,441,750 shares
outstanding 105,057 104,921
Paid-in capital 1,259,312 1,254,490
Accumulated other comprehensive income (loss),
net of taxes (17,193) (13,033)
Treasury stock, at cost; 17,228,414 and
17,479,700 shares (210,881) (213,934)
Retained earnings 232,099 185,683
------------ ------------
1,368,394 1,318,127
------------ ------------
$ 11,795,247 $ 10,285,417
============ ============
CONSOLIDATED FINANCIAL HIGHLIGHTS
Stockholders' equity per share $ 15.58 $ 15.07
Stockholders' equity to total assets 11.60% 12.82%
Tangible stockholders' equity to tangible
assets 9.90 11.90
Weighted average rates at period end
Loans and mortgage-backed securities 6.35% 6.57%
Investment securities* 4.35 4.61
Combined loans, mortgage-backed securities
and investment securities 6.30 6.50
Customer accounts 3.52 4.36
Borrowings 3.83 4.64
Combined cost of customer accounts and
borrowings 3.61 4.45
Interest rate spread 2.69 2.05
* Includes municipal bonds at tax equivalent yields and cash equivalents
WASHINGTON FEDERAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Quarter Ended Nine Months Ended
June 30, June 30,
---------------------- ------------------------
2008 2007 2008 2007
---------- ---------- ----------- -----------
(In thousands, except per share data)
INTEREST INCOME
Loans $ 155,008 $ 135,458 $ 446,702 $ 387,929
Mortgage-backed securities 22,407 18,677 66,187 56,216
Investment securities and
cash equivalents 3,066 4,485 11,035 11,952
---------- ---------- ----------- -----------
180,481 158,620 523,924 456,097
INTEREST EXPENSE
Customer accounts 66,195 63,712 200,240 178,697
FHLB advances and other
borrowings 33,622 28,489 104,154 83,399
---------- ---------- ----------- -----------
99,817 92,201 304,394 262,096
---------- ---------- ----------- -----------
Net interest income 80,664 66,419 219,530 194,001
Provision for loan losses 13,216 1,000 23,716 1,200
---------- ---------- ----------- -----------
Net interest income after
provision for loan losses 67,448 65,419 195,814 192,801
OTHER INCOME
Gain on sale of loans 32 - 433 -
Gain on sale of real
estate 3,164 - 11,876 -
Other 4,364 5,230 12,579 11,655
---------- ---------- ----------- -----------
7,560 5,230 24,888 11,655
OTHER EXPENSE
Compensation and fringe
benefits 14,127 11,577 38,252 31,991
Occupancy 2,916 2,300 7,992 6,454
Other 6,610 3,340 16,478 8,779
---------- ---------- ----------- -----------
23,653 17,217 62,722 47,224
Gain (loss) on real estate
acquired through
foreclosure, net 72 (17) (182) 139
---------- ---------- ----------- -----------
Income before income taxes 51,427 53,415 157,798 157,371
Income taxes 18,258 19,150 56,129 56,239
---------- ---------- ----------- -----------
NET INCOME $ 33,169 $ 34,265 $ 101,669 $ 101,132
========== ========== =========== ===========
PER SHARE DATA
Basic earnings $ .38 $ .39 $ 1.16 $ 1.16
Diluted earnings .38 .39 1.16 1.15
Cash dividends .210 .210 .630 .620
Weighted average number of
shares outstanding,
including dilutive stock
options 87,811,275 87,514,339 87,756,491 87,602,549
PERFORMANCE RATIOS
Return on average assets 1.13% 1.38% 1.22% 1.42%
Return on average
stockholders' equity 9.61% 10.55% 10.01% 10.49%
Net interest margin 2.85% 2.77% 2.71% 2.80%Contact: Contact:
Cathy Cooper
(206) 777-8246
Washington Federal, Inc.
425 Pike Street
Seattle, WA 98101
Source: Washington Federal Savings
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