Washington Federal Reports Quarterly Net Income of $30.7 Million and $111.1 Million for the Fiscal Year
(firmenpresse) - SEATTLE, WA -- (Marketwire) -- 10/20/11 -- Washington Federal, Inc. (NASDAQ: WFSL),
parent company of Washington Federal, today announced earnings of
$30,666,000 or $.28 per diluted share for the quarter ended September 30,
2011, compared to $15,963,000 or $.14 per diluted share for the same period
one year ago, a $14.7 million or 92% increase. Earnings for the fiscal year
ended September 30, 2011 of $111,141,000 decreased $7,512,000 or 6% from
the prior year due to two non-recurring items in 2010, an $85.6 million
pre-tax gain resulting from the acquisition of certain assets and
liabilities of the former Horizon Bank, and a $39 million recovery
resulting from the settlement of a contingent federal tax liability.
Excluding these two non-recurring items from the prior year, net income
increased by $86.3 million or 347%. The Company's ratio of tangible common
equity to tangible assets ended the quarter at 12.52% and continues to be
among the best of large regional financial institutions in the U.S.
Chairman, President & CEO Roy M. Whitehead commented, "We are very pleased
to complete the fiscal year in a strong and healthy financial condition.
Earnings from core business operations improved considerably over last
year, and are attributed primarily to improved asset quality and reduced
loan losses. Management expects that results in fiscal 2012 will be largely
consistent with 2011, and that a material improvement in earnings can occur
only after the overall economy, housing values and household incomes
improve."
Non-performing assets amounted to $370 million or 2.76% of total assets at
quarter-end, a $64.2 million or 14.8% decrease from September 30, 2010.
Non-performing assets peaked at $606 million or 5.03% of total assets, on
June 30, 2009 and have since decreased by $236 million or 38.9%.
Non-performing loans decreased from $246 million at the Company's September
30, 2010 fiscal year-end, to $210 million as of September 30, 2011, a 14.3%
decrease. Total loan delinquencies were 3.43% as of September 30, 2011, a
decrease from the 3.53% at September 30, 2010. Delinquencies on single
family mortgage loans, the largest component of the loan portfolio,
increased to 3.25% from 3.11% as of September 30, 2010. Delinquencies on
single family mortgage loans, decreased by 18 basis points on a linked
quarter basis to 3.25% from 3.43% as of June 30, 2011. The Company's single
family mortgage loan delinquency ratio of 3.25% is significantly better
than the national average of 12.0%(i).
Net loan charge-offs decreased from $183 million in the year ended
September 30, 2010 to $98 million in the current year, an $85 million or
46.4% decrease. Net charge offs were centered in the residential land
acquisition and development and speculative construction portfolios.
Real estate held for sale decreased by $29.1 million or 15.4% from
September 30, 2010 as the Company continues to liquidate foreclosed
properties. During the year the Company sold 570 properties for net
proceeds of $110.4 million and a net loss on sale of $0.3 million. The
total net loss on sale of real estate, measured against the original loan
balance of $190.8 million, was $80.4 million or 42.1% for properties sold
in fiscal 2011. As of September 30, 2011, real estate held for sale
consisted of 566 properties totaling $159.8 million. Land represents $95.2
million or 60% of total real estate held for sale. Net loss on real estate
acquired through foreclosure, which includes gains and losses on sale,
ongoing maintenance expense and periodic write-downs from lower valuations,
decreased by 50% from the prior year to $40.1 million.
Asset quality trends during the quarter and year were generally positive as
noted above with non-performing loans, real estate owned, delinquencies and
net charge-offs all decreasing; however, real estate values remain weak in
many of the Company's primary markets due to macroeconomic factors
including high unemployment and weak gross domestic product (GDP) growth.
Consistent with these uncertain conditions, the Company increased its
general loan loss reserve. As of September 30, 2011, the general allowance
totaled 1.44% of loans, an increase of 27 basis points from the 1.17% as of
September 30, 2010. As of September 30, 2011, the total allowance for loan
losses, including the general and specific reserves was $157 million or
1.94% of loans.
Total assets decreased by $45.6 million or 0.3% to $13.44 billion from
$13.49 billion at September 30, 2010. Specifically, loans decreased by $488
million, loans covered by an FDIC loss sharing agreement decreased by $152
million and cash and cash equivalents decreased by $73 million. These three
decreases were partially offset by a $741 million increase in investment
securities, primarily mortgage backed securities. The Company sought to
diminish the impact of decreasing loan balances by increasing its
investment portfolio. The loan portfolio decreased as a result of higher
loan prepayments stemming from record low interest rates available on 30
year fixed-rate mortgages in the market. Competition for the Company's
primary asset class, single-family mortgage loans, remains strong. As of
September 30, 2011, the Company's investment portfolio had net unrealized
gains of $139 million.
Customer deposits decreased $187 million or 2.1% during the year, however
the Company was able to grow transaction accounts by $107 million or 4.2%,
while time deposits decreased by $294 million or 4.7%. The weighted average
rate paid on customer deposits during the year was 1.32%, a decrease of 37
basis points from the previous year, as a result of the low interest rate
environment.
During the year, the company had an average balance of $712 million in cash
and cash equivalents invested overnight at a yield of approximately .25%.
The Company is maintaining higher than normal amounts of liquidity due to
concern about potentially rising interest rates in the future. The period
end spread was 3.13% as of September 30, 2011, an increase from 3.09% as of
September 30, 2010.
Net interest income for the year was $416.9 million, a $22.5 million
increase from last year. Net interest margin was 3.35% for the year,
compared to 3.17% for the prior year. The margin benefited from the lower
deposit costs, partially offset by lower asset yields.
During the quarter ended September 30, 2011, net interest income was $104.5
million, a decrease of $1.6 million from the June 30, 2011 quarter. While
deposit costs decreased by $1.5 million in the quarter, interest income on
mortgage backed securities decreased by $2.7 million as higher pre-payments
resulted in accelerated premium amortization.
The Company's efficiency ratio of 31.3% for the year remains among the
lowest in the industry. The year produced a return on assets of .83%, while
return on equity amounted to 5.99%.
On October 17, 2011, Washington Federal completed its acquisition and
integration of six branches from Charter Bank in New Mexico and $254
million of deposits, including $70 million of transaction accounts. As this
occurred subsequent to the fiscal year end, these deposits are not included
in the Company's financial results.
On October 21, 2011, Washington Federal will pay a cash dividend of $.06
per share to common stockholders of record on October 7, 2011. This will be
the Company's 115th consecutive quarterly cash dividend. During the quarter
ended September 30, 2011, Washington Federal repurchased 1,500,000 shares
at a weighted average price of $15.37. For the fiscal year Washington
Federal repurchased 3,804,800 shares at a weighted average price of $15.68.
The Company has an authorization to repurchase up to an additional
9,083,514 shares.
Washington Federal, with headquarters in Seattle, Washington, has 166
offices in eight western states.
To find out more about the Company, please visit our website. The Company
uses its website to distribute financial and other material information
about the Company, which is routinely posted on and accessible at .
Important Cautionary Statements
The foregoing information should be read in conjunction with the financial
statements, notes and other information contained in the Company's 2010
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 Washington Federal's future
that are not statements of historical 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. The words "believe," "expect," "anticipate,"
"project," and similar expressions signify forward-looking statements.
Forward-looking statements include projections and estimates of loan
demand, revenue growth, credit costs, levels of problem assets, earnings,
interest rates, regulatory actions or other financial or business items;
statements of management's plans, strategies and objectives for future
operations, and statements regarding future economic, industry or market
conditions or performance. Forward-looking statements of this type speak
only as of the date of this press release. Washington Federal cautions
against placing undue reliance on forward-looking statements, which reflect
its good faith beliefs with respect to future events and are based on
information currently available to it as of the date the forward-looking
statement is made. Forward-looking statements should not be read as a
guarantee of future performance or results and will not necessarily be
accurate indications of the timing when, or by which, such performance or
results will be achieved.
By their nature, forward-looking statements involve inherent risk and
uncertainties, which change over time, and actual performance or results,
could differ materially from those anticipated by any forward-looking
statements. Washington Federal undertakes no obligation to update or revise
any forward-looking statement. If Washington Federal does update any
forward-looking statement, no inference should be drawn that Washington
Federal will make additional updates with respect to that statement or any
other forward-looking statements. The following important factors, in
addition to those discussed or referenced in Washington Federal's periodic
reports filed with the SEC, may cause actual results to differ materially
from those contemplated by any forward-looking statements: including, but
not limited to, general economic conditions; legislative and regulatory
changes, including without limitation the potential effect of the
Dodd-Frank Wall Street Reform and Consumer Protection Act and regulations
to be promulgated thereunder; monetary fiscal policies of the federal
government; changes in tax policies; rates and regulations of federal,
state and local tax authorities; changes in interest rates; deposit flows;
cost of funds; the level of success of the Company's asset/liability
management strategies; demand for loan products; demand for financial
services; competition; changes in the quality or composition of the
Company's loan and investment portfolios; adequacy of the reserve for loan
losses; the level of success in disposing of foreclosed real estate and
reducing nonperforming assets; changes in accounting principles; policies
or guidelines and other economic, competitive, governmental and
technological factors affecting the Company's operations, markets,
products, services and fees, including without limitation the Bank's
ability to comply in a timely and satisfactory manner with the requirements
of the Memorandum of Understanding (MOU) entered into with the Office of
Thrift Supervision (OTS) and being monitored by the Office of Comptroller
of the Currency (OCC), the Company's new primary regulator.
(i) OCC Mortgage Metrics Report, 2nd Quarter 2011
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Datum: 20.10.2011 - 12:00 Uhr
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News-ID 78355
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Town:
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Kategorie:
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