8-K
WAFD INC (WAFD)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________
FORM 8-K
____________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 13, 2022
____________________________________
WASHINGTON FEDERAL INC
(Exact name of registrant as specified in its charter)
____________________________________
| Washington | 001-34654 | 91-1661606 | |
|---|---|---|---|
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | |
| 425 Pike Street | Seattle | Washington | 98101 |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code (206) 624-7930
Not Applicable
(Former name or former address, if changed since last report)
____________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $1.00 par value per share | WAFD | NASDAQ Stock Market |
| Depositary Shares, Each Representing a 1/40th Interest in a Share of 4.875% Fixed Rate Series A Non-Cumulative Perpetual Preferred Stock | WAFDP | NASDAQ Stock Market |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x
| Item 2.02 | Results of Operations and Financial Condition |
|---|
On October 13, 2022, the Company announced by press release its earnings for the quarter and fiscal year ended September 30, 2022. A copy of the press release is attached to this filing as Exhibit 99.1. A copy of the September 30, 2022 Fact Sheet, which presents certain detailed financial information about the Company, is attached as Exhibit 99.2. This information is being furnished under Item 2.02 (Results of Operations and Financial Condition) of Form 8-K.
| Item 9.01 | Financial Statements and Exhibits |
|---|
(a) Not applicable
(b) Not applicable
(c) Not applicable
(d) The following exhibits are being furnished herewith:
99.1 Press release dated October 13, 2022
99.2 Fact Sheet as of September 30, 2022
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. Additional information will also be set forth in the Company’s Annual Report on Form 10-K for the year ended September 30, 2022.
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 June 30, 2022 10-Q, 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.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| October 14, 2022 | WASHINGTON FEDERAL, INC. | |
|---|---|---|
| By: | /s/ VINCENT L. BEATTY | |
| Vincent L. Beatty | ||
| Executive Vice President<br>and Chief Financial Officer |
4
Document
Exhibit 99.1
Thursday, October 13, 2022
FOR IMMEDIATE RELEASE
Washington Federal Reports Record Earnings Per Share Increase of 42% For 2022
SEATTLE, WASHINGTON – Washington Federal, Inc. (Nasdaq: WAFD) (the "Company"), parent company of Washington Federal Bank ("WaFd Bank"), today announced record annual earnings of $236,330,000 for the fiscal year ended September 30, 2022, an increase of $52,715,000 from earnings of $183,615,000 for the year ended September 30, 2021. After the effect of dividends on preferred stock, net income available for common shareholders was $3.39 per share for the fiscal year ended September 30, 2022, a $1.00 or 41.8% increase from $2.39 for the prior fiscal year. Return on common shareholders' equity for the fiscal year ended September 30, 2022 was 11.70% compared to 8.69% for the year ended September 30, 2021. Return on assets for the year ended September 30, 2022 was 1.17% compared to 0.95% for the prior year.
President and Chief Executive Officer Brent J. Beardall commented, "Fiscal year 2022 was the best year for WaFd Bank in our 105-year history. We broke records for net income, earnings per share, loan growth, total loans, loan production, book value per share, and tangible book value per share. Over the last several years, we worked to execute our strategic plan to position the bank to prepare for and actually benefit from rising interest rates, all while maintaining a conservative credit posture. I thank our clients and the almost 2,200 employees of WaFd Bank that made these results possible, but I also must acknowledge the role market interest rates have played. We remained patient and withstood earnings pressure as we experienced near-record low net interest margins following the Federal Reserve Bank taking interest rates to zero at the onset of the COVID-19 pandemic. Now we are benefiting from the 300 basis point increase in rates over the last seven months as the Federal Reserve Bank works to regain price stability.
"With the Fed’s moves this year, we experienced significant expansion of our net interest margin. One year ago, the Bank’s margin was 2.88% and by the end of the fourth quarter, it reached 3.64%, a 26% increase in a single year. Compounding the margin improvement, we grew loans outstanding from $13.8 billion to $16.1 billion, a 17% year over year increase. The 3.64% margin is the highest we have experienced since 2005, which bodes well for future performance.
"We learned through the years that the key to long-term success is to continue to invest in both your teams and your technology. It is difficult to grow if you cut staff or reduce your IT budget. WaFd is continuing to make significant investments in both our teams and our technology to drive growth. Even with continued investments in these areas, the Bank’s efficiency ratio, which is a measure of how many cents it costs to earn one dollar of net revenue, decreased from 57% in the fourth quarter of 2021 to 50% this quarter, the best efficiency ratio we have reported in the last five years.
"There are no guarantees as to what the future holds, but at this point in time, our credit quality is about as strong as we have ever seen it. We posted net recoveries for the ninth consecutive year, meaning for each of the last nine years we recovered more from loans that we previously charged-off during the Great Recession (2008-2010) than we charged off. To do that for nine years straight is an astounding feat. I don’t know of any other publicly traded bank that can match that record, and that is a tribute to our clients that worked though serious challenges and to our collections teams.
"Lastly, I want to call out the 9.5% year-over-year growth in tangible book value per share. This is especially gratifying, given so many banks have taken meaningful market value losses on their investment portfolios, resulting in large swings in their accumulated other comprehensive income (loss). By keeping the majority of our investments in shorter duration assets and putting in place long-term hedges over the last two years, WaFd Bank has been an outlier in that regard. We believe that WaFd Bank is well positioned to withstand the economic volatility that seems to be on the horizon and continue to be a source of strength and stability for our clients."
Total assets were $20.8 billion as of September 30, 2022, an increase of 5.7% from $19.7 billion at September 30, 2021, primarily due to record loan originations (noted below) funded by continued growth in customer deposits, increased Federal Home Loan Bank ("FHLB") advances and decreased cash. Net loans increased by $2.3 billion, or 16.5%, while deposits increased $0.5 billion, FHLB advances increased $0.4 billion and cash decreased by $1.4 billion.
Customer deposits totaled $16.0 billion as of September 30, 2022, an increase of 3.1% since September 30, 2021. Transaction accounts increased by $0.6 billion or 4.8% during the fiscal year 2022, while time deposits decreased $96 million or 2.8%. The shift in deposit mix has been a 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 September 30, 2022, 79.2% of the Company's deposits were in transaction accounts. Core deposits, defined as all transaction accounts and time deposits less than $250,000, totaled 95.2% of deposits at September 30, 2022. The loan-to-deposit ratio was 100.5% at September 30, 2022 compared to 89.0% at September 30, 2021.
Borrowings from the FHLB totaled $2.1 billion as of September 30, 2022, an increase of $405 million or 23.5% since September 30, 2021. The weighted average effective interest rate for FHLB borrowings was 2.02% as of September 30, 2022, versus 1.51% at September 30, 2021, the increase being primarily due to higher rates on new short-term borrowings. As of September 30, 2022, $1.1 billion of the $2.13 billion in outstanding FHLB advances have effective maturities greater than one year.
Record loan originations totaled $8.7 billion for fiscal year 2022 compared to $8.2 billion in fiscal year 2021. Fiscal 2022 did not contain any SBA Paycheck Protection Program ("PPP") loan originations as compared to $321.937 million originated in fiscal 2021. Partially offsetting the loan origination volume in each of these years were loan repayments of $6.2 billion and $6.8 billion, respectively. Commercial loans represented 78% of all loan originations during fiscal 2022 with consumer loans accounting 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 in this low-rate environment due to the fact they generally have floating interest rates and shorter durations. The weighted average interest rate on the loan portfolio was 4.25% as of September 30, 2022, an increase from 3.47% at September 30, 2021, due primarily to higher rates on adjustable rate loans and newly originated loans.
Credit quality is being monitored closely in light of the shifting economic and monetary environment. As of September 30, 2022, non-performing assets remained low from a historical perspective at $45 million, or 0.21% of total assets, compared to 0.22% as of September 30, 2021. Since September 30, 2021, real estate owned decreased by $1.5 million and non-accrual loans increased by $2.8 million. Delinquent loans were 0.17% of total loans at September 30, 2022 compared to 0.19% at September 30, 2021. The allowance for credit losses (including the reserve for unfunded commitments) totaled $205 million as of September 30, 2022 and was 1.06% of gross loans as compared to $199 million or 1.22% of gross loans as of September 30,
- Net recoveries were $3.5 million for fiscal year 2022 compared to net recoveries of $6.3 million in fiscal 2021. The Company has recorded net recoveries for nine consecutive years.
The Company recorded a provision for credit losses of $3 million in fiscal 2022, compared to provision of $0.5 million in fiscal 2021. In fiscal 2022, provisioning for net growth in the loan portfolio was mostly 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 July 15, 2022. On September 2, 2022, the Company paid a cash dividend of $0.24 per share to common stockholders of record on August 19, 2022, which was the Company’s 158th consecutive quarterly cash dividend. Tangible common shareholders’ equity per share increased by $2.22 or 9.54% during fiscal 2022 to $25.49. The ratio of tangible shareholders' equity to tangible assets increased to 9.60% as of September 30, 2022.
Net interest income was $595 million for fiscal 2022, an increase of $89 million or 17.7% from the prior year. The increase in net interest income from the prior year was primarily due to average interest-earning assets increasing by $776 million or 4.30% while average interest-bearing liabilities increased by $273 million or 1.92%. Average noninterest-bearing deposits grew by $569 million over the same period. The change in net interest income was also impacted by the average rate earned on interest-earning assets increasing by 26 basis points while the average rate paid on interest-bearing liabilities declined by 11 basis points. Net interest margin of 3.16% in fiscal 2022 was up from 2.80% for the prior year. Net interest margin of 3.64% in the 4th fiscal quarter of 2022 was up from 2.88% in the same quarter of the prior year. This increase in net interest margin is directly attributable to both increasing market interest rates and the intentional shift over the last several years towards transaction deposits and commercial loans mentioned above.
Total other income was $66 million for fiscal year 2022, an increase from $61 million in the prior year. The increase in other income is primarily due to unrealized gains recorded for certain equity investments being $3 million higher in fiscal 2022 versus 2021.
Total operating expenses were $359 million for fiscal 2022, an increase of $26 million or 7.9% from the prior year. Compensation and benefits costs increased $18 million or 10.11% year-over-year primarily due to annual merit increases, higher bonus compensation accruals related to strong deposit and loan growth, and strategic investments in top talent and strategic initiatives. Operating expenses were $93.1 million for the
4th fiscal quarter of 2022, an increase of $7.5 million or 8.7% from the same quarter a year ago due primarily to the compensation related changes noted above. The Company’s efficiency ratio was 54.25% for fiscal 2022 as compared to 58.77% for the prior year due to income growth outpacing expense growth. The efficiency ratio was 49.5% for the 4th fiscal quarter of 2022 compared to 56.8% for the same quarter a year ago.
For the year ended September 30, 2022, the Company recorded federal and state income tax expense of $64 million, which equates to a 21.23% effective tax rate. This compares to an effective tax rate of 21.24% for fiscal year 2021. The Company's effective tax rate for fiscal 2022 differs from the statutory federal tax rate mainly due to state taxes, tax-exempt income, tax-credit investments and certain differences in book and tax deductions.
WaFd Bank is headquartered in Seattle, Washington and has 201 branches in eight western states. To find out more, please visit our website www.wafdbank.com. The Company uses its website to distribute financial and other material information.
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. Additional information will also be set forth in the Company’s Annual Report on Form 10-K for the year ended September 30, 2022.
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 June 30, 2022 10-Q, 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.
#
Contact:
Washington Federal, Inc.
425 Pike Street, Seattle, WA 98101
Brad Goode, SVP, Chief Marketing Officer
206-626-8178
brad.goode@wafd.com
WASHINGTON FEDERAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
| September 30, 2022 | September 30, 2021 | |||||
|---|---|---|---|---|---|---|
| (In thousands, except share and ratio data) | ||||||
| ASSETS | ||||||
| Cash and cash equivalents | $ | 683,965 | $ | 2,090,809 | ||
| Available-for-sale securities, at fair value | 2,051,037 | 2,138,259 | ||||
| Held-to-maturity securities, at amortized cost | 463,299 | 366,025 | ||||
| Loans receivable, net of allowance for loan losses of $172,808 and $171,300 | 16,113,564 | 13,833,570 | ||||
| Interest receivable | 63,872 | 50,636 | ||||
| Premises and equipment, net | 243,062 | 255,152 | ||||
| Real estate owned | 6,667 | 8,204 | ||||
| FHLB and FRB stock | 95,073 | 102,863 | ||||
| Bank owned life insurance | 237,931 | 233,263 | ||||
| Intangible assets, including goodwill of $303,457 and $303,457 | 309,009 | 310,019 | ||||
| Federal and state income tax assets, net | — | 3,877 | ||||
| Other assets | 504,652 | 257,897 | ||||
| $ | 20,772,131 | $ | 19,650,574 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Liabilities | ||||||
| Transaction deposits | $ | 12,691,527 | $ | 12,108,025 | ||
| Time deposits | 3,338,043 | 3,434,087 | ||||
| Total customer deposits | 16,029,570 | 15,542,112 | ||||
| FHLB advances | 2,125,000 | 1,720,000 | ||||
| Advance payments by borrowers for taxes and insurance | 50,051 | 47,016 | ||||
| Federal and state income tax liabilities, net | 3,306 | — | ||||
| Accrued expenses and other liabilities | 289,944 | 215,382 | ||||
| 18,497,871 | 17,524,510 | |||||
| Stockholders’ equity | ||||||
| Preferred stock, $1.00 par value, 5,000,000 shares authorized; 300,000 and 0 shares issued; 300,000 and 0 shares outstanding | 300,000 | 300,000 | ||||
| Common stock, $1.00 par value, 300,000,000 shares authorized; 136,270,886 and 135,993,254 shares issued; 65,330,126 and 65,145,268 shares outstanding | 136,271 | 135,993 | ||||
| Additional paid-in capital | 1,686,975 | 1,678,622 | ||||
| Accumulated other comprehensive (loss) income, net of taxes | 52,481 | 69,785 | ||||
| Treasury stock, at cost; 70,940,760 and 70,847,986 shares | (1,590,207) | (1,586,947) | ||||
| Retained earnings | 1,688,740 | 1,528,611 | ||||
| 2,274,260 | 2,126,064 | |||||
| $ | 20,772,131 | $ | 19,650,574 | |||
| CONSOLIDATED FINANCIAL HIGHLIGHTS | ||||||
| Common shareholders' equity per share | $ | 30.22 | $ | 28.03 | ||
| Tangible common shareholders' equity per share | 25.49 | 23.27 | ||||
| Shareholders' equity to total assets | 10.95 | % | 10.82 | % | ||
| Tangible shareholders' equity (TSE) to tangible assets | 9.60 | 9.39 | ||||
| TSE + allowance for credit losses to tangible assets | 10.45 | 10.28 | ||||
| Weighted average rates at period end | ||||||
| Loans and mortgage-backed securities | 4.13 | % | 3.37 | % | ||
| Combined loans, all interest-earning assets | 4.04 | 2.80 | ||||
| Customer accounts | 0.51 | 0.23 | ||||
| Borrowings | 2.02 | 1.51 | ||||
| Combined cost of customer accounts and borrowings | 0.68 | 0.35 | ||||
| Net interest spread | 3.36 | 2.45 |
WASHINGTON FEDERAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
| As of | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SUMMARY FINANCIAL DATA | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | ||||||||||
| (In thousands, except share and ratio data) | |||||||||||||||
| Cash | $ | 683,965 | $ | 607,421 | $ | 1,947,504 | $ | 1,880,647 | $ | 2,090,809 | |||||
| Loans receivable, net | 16,113,564 | 15,565,165 | 15,094,926 | 14,592,202 | 13,833,570 | ||||||||||
| Allowance for credit losses ("ACL") | 205,308 | 203,479 | 201,384 | 201,411 | 198,800 | ||||||||||
| Available-for-sale securities, at fair value | 2,051,037 | 2,150,732 | 1,909,605 | 1,946,139 | 2,138,259 | ||||||||||
| Held-to-maturity securities, at amortized cost | 463,299 | 477,884 | 301,221 | 326,387 | 366,025 | ||||||||||
| Total assets | 20,772,131 | 20,158,831 | 20,560,279 | 19,973,171 | 19,650,574 | ||||||||||
| Transaction deposits | 12,691,527 | 12,668,251 | 13,139,606 | 12,550,062 | 12,108,025 | ||||||||||
| Time deposits | 3,338,043 | 3,297,369 | 3,251,042 | 3,351,984 | 3,434,087 | ||||||||||
| FHLB advances | 2,125,000 | 1,700,000 | 1,720,000 | 1,720,000 | 1,720,000 | ||||||||||
| Total shareholders' equity | 2,274,260 | 2,220,111 | 2,191,701 | 2,149,126 | 2,126,064 | ||||||||||
| FINANCIAL HIGHLIGHTS | |||||||||||||||
| Common shareholders' equity per share | 30.22 | 29.39 | 28.97 | 28.33 | 28.03 | ||||||||||
| Tangible common shareholders' equity per share | 25.49 | 24.66 | 24.23 | 23.59 | 23.27 | ||||||||||
| Shareholders' equity to total assets | 10.95 | % | 11.01 | % | 10.66 | % | 10.76 | % | 10.82 | % | |||||
| Tangible shareholders' equity to tangible assets | 9.60 | % | 9.63 | % | 9.29 | % | 9.35 | % | 9.39 | % | |||||
| Tangible shareholders' equity + ACL to tangible assets | 10.45 | % | 10.65 | % | 10.29 | % | 10.38 | % | 10.42 | % | |||||
| Common shares outstanding | 65,330,126 | 65,321,869 | 65,306,928 | 65,263,738 | 65,145,268 | ||||||||||
| Preferred shares outstanding | 300,000 | 300,000 | 300,000 | 300,000 | 300,000 | ||||||||||
| Loans to customer deposits | 100.52 | % | 97.49 | % | 92.09 | % | 91.76 | % | 89.01 | % | |||||
| CREDIT QUALITY | |||||||||||||||
| ACL to gross loans | 1.06 | % | 1.08 | % | 1.13 | % | 1.18 | % | 1.22 | % | |||||
| ACL to non-accrual loans | 594.51 | % | 554.76 | % | 598.66 | % | 447.99 | % | 626.16 | % | |||||
| Non-accrual loans to net loans | 0.21 | % | 0.24 | % | 0.22 | % | 0.31 | % | 0.23 | % | |||||
| Non-accrual loans | 34,534 | 36,679 | 33,639 | 44,959 | 31,749 | ||||||||||
| Non-performing assets to total assets | 0.21 | % | 0.25 | % | 0.23 | % | 0.27 | % | 0.22 | % | |||||
| Non-performing assets | 44,554 | 50,430 | 47,243 | 54,790 | 43,625 |
WASHINGTON FEDERAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| Three Months Ended September 30, | Twelve Months Ended September 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||||||||
| (In thousands, except share and ratio data) | (In thousands, except share and ratio data) | |||||||||||
| INTEREST INCOME | ||||||||||||
| Loans receivable | $ | 174,710 | $ | 137,039 | $ | 601,592 | $ | 537,660 | ||||
| Mortgage-backed securities | 8,263 | 5,294 | 26,332 | 24,708 | ||||||||
| Investment securities and cash equivalents | 14,960 | 7,253 | 38,435 | 29,242 | ||||||||
| 197,933 | 149,586 | 666,359 | 591,610 | |||||||||
| INTEREST EXPENSE | ||||||||||||
| Customer accounts | 17,071 | 8,568 | 43,041 | 42,313 | ||||||||
| FHLB advances and other borrowings | 7,243 | 9,062 | 28,729 | 44,188 | ||||||||
| 24,314 | 17,630 | 71,770 | 86,501 | |||||||||
| Net interest income | 173,619 | 131,956 | 594,589 | 505,109 | ||||||||
| Provision (release) for credit losses | 1,500 | (500) | 3,000 | 500 | ||||||||
| Net interest income after provision (release) | 172,119 | 132,456 | 591,589 | 504,609 | ||||||||
| OTHER INCOME | ||||||||||||
| Gain (loss) on sale of investment securities | 18 | 14 | 99 | 14 | ||||||||
| Gain (loss) on termination of hedging derivatives | — | — | — | 14,110 | ||||||||
| Prepayment penalty on long-term debt | — | — | — | (13,788) | ||||||||
| Loan fee income | 1,154 | 1,887 | 7,168 | 6,899 | ||||||||
| Deposit fee income | 6,604 | 6,499 | 25,942 | 24,686 | ||||||||
| Other income | 6,706 | 10,603 | 33,163 | 28,640 | ||||||||
| 14,482 | 19,003 | 66,372 | 60,561 | |||||||||
| OTHER EXPENSE | ||||||||||||
| Compensation and benefits | 51,304 | 45,910 | 193,917 | 176,106 | ||||||||
| Occupancy | 10,568 | 9,820 | 42,499 | 39,610 | ||||||||
| FDIC insurance premiums | 2,231 | 3,450 | 9,531 | 14,368 | ||||||||
| Product delivery | 5,104 | 5,092 | 19,536 | 18,505 | ||||||||
| Information technology | 12,228 | 9,814 | 47,202 | 42,737 | ||||||||
| Other expense | 11,707 | 11,577 | 45,890 | 41,133 | ||||||||
| 93,142 | 85,663 | 358,575 | 332,459 | |||||||||
| Gain (loss) on real estate owned, net | (488) | 993 | 651 | 427 | ||||||||
| Income before income taxes | 92,971 | 66,789 | 300,037 | 233,138 | ||||||||
| Income tax provision | 19,576 | 14,418 | 63,707 | 49,523 | ||||||||
| Net Income | 73,395 | 52,371 | 236,330 | 183,615 | ||||||||
| Dividends on preferred stock | 3,656 | 3,656 | 14,625 | 10,034 | ||||||||
| Net Income available to common shareholders | $ | 69,739 | $ | 48,715 | $ | 221,705 | $ | 173,581 | ||||
| PER SHARE DATA | ||||||||||||
| Basic earnings | $ | 1.07 | $ | 0.72 | $ | 3.40 | $ | 2.39 | ||||
| Diluted earnings | 1.07 | 0.72 | 3.39 | 2.39 | ||||||||
| Cash dividends per share | 0.24 | 0.23 | 0.95 | 0.91 | ||||||||
| Basic weighted average shares outstanding | 65,326,706 | 67,227,280 | 65,287,650 | 72,529,188 | ||||||||
| Diluted weighted average shares outstanding | 65,423,817 | 67,235,846 | 65,404,110 | 72,565,920 | ||||||||
| PERFORMANCE RATIOS | ||||||||||||
| Return on average assets | 1.44 | % | 1.07 | % | 1.17 | % | 0.95 | % | ||||
| Return on average common equity | 14.22 | 10.36 | 11.70 | 8.69 | ||||||||
| Net interest margin | 3.64 | 2.88 | 3.16 | 2.80 | ||||||||
| Efficiency ratio | 49.52 | 56.75 | 54.25 | 58.77 |
WASHINGTON FEDERAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| Three Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||
| (In thousands, except share and ratio data) | |||||||||||||||
| INTEREST INCOME | |||||||||||||||
| Loans receivable | $ | 174,710 | $ | 149,113 | $ | 139,260 | $ | 138,509 | $ | 137,039 | |||||
| Mortgage-backed securities | 8,263 | 8,618 | 4,659 | 4,792 | 5,294 | ||||||||||
| Investment securities and cash equivalents | 14,960 | 9,417 | 6,919 | 7,139 | 7,253 | ||||||||||
| 197,933 | 167,148 | 150,838 | 150,440 | 149,586 | |||||||||||
| INTEREST EXPENSE | |||||||||||||||
| Customer accounts | 17,071 | 9,284 | 8,225 | 8,461 | 8,568 | ||||||||||
| FHLB advances and other borrowings | 7,243 | 6,118 | 7,525 | 7,843 | 9,062 | ||||||||||
| 24,314 | 15,402 | 15,750 | 16,304 | 17,630 | |||||||||||
| Net interest income | 173,619 | 151,746 | 135,088 | 134,136 | 131,956 | ||||||||||
| Provision (release) for credit losses | 1,500 | 1,500 | (500) | 500 | (500) | ||||||||||
| Net interest income after provision (release) | 172,119 | 150,246 | 135,588 | 133,636 | 132,456 | ||||||||||
| OTHER INCOME | |||||||||||||||
| Gain (loss) on sale of investment securities | 18 | — | — | 81 | 14 | ||||||||||
| Loan fee income | 1,154 | 1,618 | 2,475 | 1,921 | 1,887 | ||||||||||
| Deposit fee income | 6,604 | 6,613 | 6,282 | 6,443 | 6,499 | ||||||||||
| Other income | 6,706 | 9,319 | 6,902 | 10,236 | 10,603 | ||||||||||
| 14,482 | 17,550 | 15,659 | 18,681 | 19,003 | |||||||||||
| OTHER EXPENSE | |||||||||||||||
| Compensation and benefits | 51,304 | 48,073 | 47,115 | 47,425 | 45,910 | ||||||||||
| Occupancy | 10,568 | 10,053 | 11,788 | 10,090 | 9,820 | ||||||||||
| FDIC insurance premiums | 2,231 | 2,100 | 2,100 | 3,100 | 3,450 | ||||||||||
| Product delivery | 5,104 | 4,667 | 5,044 | 4,721 | 5,092 | ||||||||||
| Information technology | 12,228 | 11,831 | 11,722 | 11,421 | 9,814 | ||||||||||
| Other expense | 11,707 | 10,679 | 10,648 | 12,856 | 11,577 | ||||||||||
| 93,142 | 87,403 | 88,417 | 89,613 | 85,663 | |||||||||||
| Gain (loss) on real estate owned, net | (488) | 448 | 129 | 562 | 993 | ||||||||||
| Income before income taxes | 92,971 | 80,841 | 62,959 | 63,266 | 66,789 | ||||||||||
| Income tax provision | 19,576 | 17,546 | 13,600 | 12,985 | 14,418 | ||||||||||
| Net income | 73,395 | 63,295 | 49,359 | 50,281 | 52,371 | ||||||||||
| Dividends on preferred stock | 3,656 | 3,656 | 3,656 | 3,656 | 3,656 | ||||||||||
| Net income available to common shareholders | $ | 69,739 | $ | 59,639 | $ | 45,703 | $ | 46,625 | $ | 48,715 | |||||
| PER SHARE DATA | |||||||||||||||
| Basic earnings per common share | $ | 1.07 | $ | 0.91 | $ | 0.70 | $ | 0.72 | $ | 0.72 | |||||
| Diluted earnings per common share | 1.07 | 0.91 | 0.70 | 0.71 | 0.72 | ||||||||||
| Cash dividends per common share | 0.24 | 0.24 | 0.24 | 0.23 | 0.23 | ||||||||||
| Basic weighted average shares outstanding | 65,326,706 | 65,315,481 | 65,301,171 | 65,207,837 | 67,227,280 | ||||||||||
| Diluted weighted average shares outstanding | 65,423,817 | 65,395,666 | 65,445,206 | 65,350,174 | 67,235,846 | ||||||||||
| PERFORMANCE RATIOS | |||||||||||||||
| Return on average assets | 1.44 | % | 1.25 | % | 0.98 | % | 1.02 | % | 1.07 | % | |||||
| Return on average common equity | 14.22 | 12.50 | 9.80 | 10.12 | 10.36 | ||||||||||
| Net interest margin | 3.64 | 3.22 | 2.90 | 2.87 | 2.88 | ||||||||||
| Efficiency ratio | 49.52 | 51.63 | 58.65 | 58.64 | 56.75 |
10
Document
Exhibit 99.2
Washington Federal, Inc.
Fact Sheet
September 30, 2022
($ in Thousands)
| As of 03/22 | As of 06/22 | As of 09/22 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Allowance for Credit Losses (ACL) - Total | $ | 201,384 | $ | 203,479 | $ | 205,308 | ||||||||||||
| ACL - Loans | 171,384 | 170,979 | 172,808 | |||||||||||||||
| ACL Unfunded Commitments | 30,000 | 32,500 | 32,500 | |||||||||||||||
| Total ACL as a % of Gross Loans | 1.13 | % | 1.08 | % | 1.06 | % | ||||||||||||
| 03/22 QTR | 03/22 YTD | 06/22 QTR | 06/22 YTD | 09/22 QTR | 09/22 YTD | |||||||||||||
| Loan Originations - Total | $ | 2,227,505 | $ | 4,361,843 | $ | 2,742,466 | $ | 7,104,309 | $ | 1,631,884 | $ | 8,736,193 | ||||||
| Multi-Family | 224,179 | 420,445 | 181,015 | 601,460 | 74,074 | 675,534 | ||||||||||||
| Commercial Real Estate | 173,381 | 477,961 | 196,663 | 674,624 | 206,226 | 880,850 | ||||||||||||
| Commercial & Industrial | 642,243 | 1,414,779 | 637,193 | 2,051,972 | 517,710 | 2,569,682 | ||||||||||||
| Construction | 686,847 | 1,072,294 | 1,050,981 | 2,123,275 | 363,112 | 2,486,387 | ||||||||||||
| Land - Acquisition & Development | 20,731 | 54,816 | 50,035 | 104,851 | 70,383 | 175,234 | ||||||||||||
| Single-Family Residential | 242,492 | 461,908 | 283,061 | 744,969 | 147,639 | 892,608 | ||||||||||||
| Construction - Custom | 175,733 | 338,559 | 248,518 | 587,077 | 178,619 | 765,696 | ||||||||||||
| Land - Consumer Lot Loans | 16,430 | 35,583 | 17,195 | 52,778 | 8,953 | 61,731 | ||||||||||||
| HELOC | 38,410 | 71,685 | 48,640 | 120,325 | 51,068 | 171,393 | ||||||||||||
| Consumer | 7,059 | 13,813 | 29,165 | 42,978 | 14,100 | 57,078 | ||||||||||||
| Purchased Loans (including acquisitions) | $ | 109,664 | $ | 512,483 | $ | 52,101 | $ | 564,584 | $ | — | $ | 564,584 | ||||||
| Net Loan Fee and Discount Accretion | $ | 7,679 | $ | 17,041 | $ | 6,354 | $ | 23,395 | $ | 5,761 | $ | 29,156 | ||||||
| Repayments | ||||||||||||||||||
| Loans | $ | 1,544,408 | $ | 3,377,507 | $ | 1,690,945 | $ | 5,068,452 | $ | 1,125,996 | $ | 6,194,448 | ||||||
| MBS | 70,182 | 168,457 | 70,635 | 239,092 | 55,751 | 294,843 | ||||||||||||
| MBS Net Premium Amortization | $ | 1,014 | $ | 2,319 | $ | 820 | $ | 3,139 | $ | 1,248 | $ | 4,387 | ||||||
| Efficiency | ||||||||||||||||||
| Operating Expenses/Average Assets | 1.75 | % | 1.78 | % | 1.72 | % | 1.76 | % | 1.83 | % | 1.78 | % | ||||||
| Efficiency Ratio (%) | 58.65 | % | 58.65 | % | 51.63 | % | 56.13 | % | 49.52 | % | 54.25 | % | ||||||
| Amortization of Intangibles | $ | 247 | $ | 519 | $ | 246 | $ | 765 | $ | 245 | $ | 1,010 | ||||||
| EOP Numbers | ||||||||||||||||||
| Shares Issued and Outstanding | 65,306,928 | 65,321,869 | 65,330,126 | |||||||||||||||
| Share repurchase information | ||||||||||||||||||
| Remaining shares authorized for repurchase | 3,728,320 | 3,725,874 | 3,724,344 | |||||||||||||||
| Shares repurchased | 4,684 | 88,798 | 2,446 | 91,244 | 1,530 | 92,774 | ||||||||||||
| Average share repurchase price | $ | 34.65 | $ | 35.31 | $ | 31.36 | $ | 35.20 | $ | 31.49 | $ | 35.14 |
Washington Federal, Inc.
Fact Sheet
September 30, 2022
($ in Thousands)
| Tangible Common Book Value | As of 03/22 | As of 06/22 | As of 09/22 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| $ Amount | $ | 1,582,200 | $ | 1,610,857 | $ | 1,665,251 | |||
| Per Share | 24.23 | 24.66 | 25.49 | ||||||
| # of Employees | 2,138 | 2,122 | 2,132 | ||||||
| Investments | |||||||||
| Available-For-Sale: | |||||||||
| Agency MBS | $ | 597,903 | $ | 908,082 | $ | 895,964 | |||
| Other | 1,311,702 | 1,242,650 | 1,155,073 | ||||||
| $ | 1,909,605 | $ | 2,150,732 | $ | 2,051,037 | ||||
| Held-To-Maturity: | |||||||||
| Agency MBS | $ | 301,221 | $ | 477,884 | $ | 463,299 | |||
| $ | 301,221 | $ | 477,884 | $ | 463,299 | ||||
| As of 03/31/22 | As of 06/30/22 | As of 09/30/22 | |||||||
| Loans Receivable by Category | AMOUNT | % | AMOUNT | % | AMOUNT | % | |||
| Multi-Family | $ | 2,392,810 | 13.5% | $ | 2,494,594 | 13.2% | $ | 2,645,801 | 13.6% |
| Commercial Real Estate | 2,829,946 | 15.9 | 2,899,057 | 15.3 | 3,133,660 | 16.2 | |||
| Commercial & Industrial | 2,504,442 | 14.1 | 2,351,030 | 12.4 | 2,350,984 | 12.1 | |||
| Construction | 3,136,239 | 17.6 | 3,896,740 | 20.6 | 3,784,388 | 19.5 | |||
| Land - Acquisition & Development | 236,313 | 1.3 | 245,233 | 1.3 | 291,301 | 1.5 | |||
| Single-Family Residential | 5,442,535 | 30.6 | 5,652,897 | 29.9 | 5,771,862 | 29.8 | |||
| Construction - Custom | 836,314 | 4.7 | 943,858 | 5.0 | 974,652 | 5.0 | |||
| Land - Consumer Lot Loans | 154,976 | 0.9 | 158,485 | 0.8 | 153,240 | 0.8 | |||
| HELOC | 174,367 | 1.0 | 185,427 | 1.0 | 203,528 | 1.0 | |||
| Consumer | 67,511 | 0.4 | 73,044 | 0.4 | 75,543 | 0.4 | |||
| 17,775,453 | 100% | 18,900,365 | 100% | 19,384,959 | 100% | ||||
| Less: | |||||||||
| Allowance | 171,384 | 170,979 | 172,808 | ||||||
| Loans in Process | 2,440,430 | 3,083,573 | 3,006,023 | ||||||
| Net Deferred Fees, Costs and Discounts | 68,713 | 80,648 | 92,564 | ||||||
| Sub-Total | 2,680,527 | 3,335,200 | 3,271,395 | ||||||
| $ | 15,094,926 | $ | 15,565,165 | $ | 16,113,564 | ||||
| Net Loan Portfolio by Category | AMOUNT | % | AMOUNT | % | AMOUNT | % | |||
| Multi-Family | $ | 2,363,194 | 15.7% | $ | 2,466,359 | 15.8% | $ | 2,614,466 | 16.2% |
| Commercial Real Estate | 2,783,947 | 18.4 | 2,851,695 | 18.3 | 3,085,298 | 19.1 | |||
| Commercial & Industrial | 2,443,105 | 16.2 | 2,289,122 | 14.7 | 2,286,192 | 14.2 | |||
| Construction | 1,189,395 | 7.9 | 1,381,376 | 8.9 | 1,397,731 | 8.7 | |||
| Land - Acquisition & Development | 197,375 | 1.3 | 210,747 | 1.4 | 211,337 | 1.3 | |||
| Single-Family Residential | 5,389,654 | 35.7 | 5,593,232 | 35.9 | 5,701,461 | 35.4 | |||
| Construction - Custom | 340,984 | 2.3 | 365,485 | 2.3 | 393,933 | 2.4 | |||
| Land - Consumer Lot Loans | 148,444 | 1.0 | 151,856 | 1.0 | 146,899 | 0.9 | |||
| HELOC | 173,454 | 1.1 | 184,836 | 1.2 | 203,551 | 1.3 | |||
| Consumer | 65,374 | 0.4 | 70,457 | 0.5 | 72,696 | 0.5 | |||
| $ | 15,094,926 | 100% | $ | 15,565,165 | 100% | $ | 16,113,564 | 100% |
Washington Federal, Inc.
Fact Sheet
September 30, 2022
($ in Thousands)
| As of 03/31/22 | As of 06/30/22 | As of 09/30/22 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Loans by State | AMOUNT | % | AMOUNT | % | AMOUNT | % | |||||||||
| Washington | $ | 5,316,627 | 34.8 | % | $ | 5,269,445 | 33.5 | % | $ | 5,315,013 | 32.6 | % | |||
| Idaho | 756,662 | 5.0 | 792,013 | 5.0 | 815,480 | 5.0 | |||||||||
| Oregon | 2,261,328 | 14.8 | 2,226,233 | 14.1 | 2,236,439 | 13.7 | |||||||||
| Utah | 1,324,307 | 8.7 | 1,452,601 | 9.2 | 1,558,368 | 9.6 | |||||||||
| Nevada | 587,905 | 3.9 | 644,104 | 4.0 | 685,458 | 4.2 | |||||||||
| Texas | 1,757,484 | 11.5 | 1,881,089 | 12.0 | 2,010,558 | 12.3 | |||||||||
| Arizona | 1,933,569 | 12.7 | 2,162,608 | 13.7 | 2,322,291 | 14.4 | |||||||||
| New Mexico | 676,837 | 4.4 | 686,494 | 4.4 | 699,837 | 4.3 | |||||||||
| Other | 651,591 | 4.3 | 621,557 | 3.9 | 642,928 | 3.9 | |||||||||
| Total | $ | 15,266,310 | 100% | $ | 15,736,144 | 100% | $ | 16,286,372 | 100% | ||||||
| Non-Performing Assets | AMOUNT | % | AMOUNT | % | AMOUNT | % | |||||||||
| Non-accrual loans: | |||||||||||||||
| Multi-Family | $ | — | —% | $ | 5,944 | 16.2% | $ | 5,912 | 17.1% | ||||||
| Commercial Real Estate | 6,412 | 19.1 | 5,024 | 13.7 | 4,691 | 13.6 | |||||||||
| Commercial & Industrial | 4,789 | 14.2 | 4,288 | 11.7 | 5,693 | 16.5 | |||||||||
| Construction | 343 | 1.0 | — | — | — | — | |||||||||
| Land - Acquisition & Development | 2,340 | 7.0 | — | — | — | — | |||||||||
| Single-Family Residential | 18,612 | 55.3 | 20,184 | 55.0 | 17,450 | 50.5 | |||||||||
| Construction - Custom | 465 | 1.4 | 900 | 2.5 | 435 | 1.3 | |||||||||
| Land - Consumer Lot Loans | 310 | 0.9 | 213 | 0.6 | 84 | 0.2 | |||||||||
| HELOC | 329 | 1.0 | 91 | 0.2 | 233 | 0.7 | |||||||||
| Consumer | 39 | 0.1 | 35 | 0.1 | 36 | 0.1 | |||||||||
| Total non-accrual loans | 33,639 | 100% | 36,679 | 100% | 34,534 | 100% | |||||||||
| Real Estate Owned | 9,509 | 9,656 | 6,667 | ||||||||||||
| Other Property Owned | 4,095 | 4,095 | 3,353 | ||||||||||||
| Total non-performing assets | $ | 47,243 | $ | 50,430 | $ | 44,554 | |||||||||
| Non-accrual loans as % of total net loans | 0.22 | % | 0.24 | % | 0.21 | % | |||||||||
| Non-performing assets as % of total assets | 0.23 | % | 0.25 | % | 0.21 | % | |||||||||
| Net Charge-offs (Recoveries) by Category | 03/22 QTR | CO % (a) | 06/22 QTR | CO % (a) | 09/22 QTR | CO % (a) | |||||||||
| Multi-Family | $ | — | —% | $ | — | —% | $ | — | —% | ||||||
| Commercial Real Estate | (753) | (0.11) | (23) | — | (164) | (0.02) | |||||||||
| Commercial & Industrial | 871 | 0.14 | 19 | — | 258 | 0.04 | |||||||||
| Construction | (179) | (0.02) | — | — | — | — | |||||||||
| Land - Acquisition & Development | (20) | (0.03) | (10) | (0.02) | (11) | (0.02) | |||||||||
| Single-Family Residential | (147) | (0.01) | (252) | (0.02) | (198) | (0.01) | |||||||||
| Construction - Custom | — | — | — | — | — | — | |||||||||
| Land - Consumer Lot Loans | (40) | (0.10) | (2) | (0.01) | (1) | — | |||||||||
| HELOC | (100) | (0.23) | (249) | (0.54) | (1) | — | |||||||||
| Consumer | (105) | (0.62) | (78) | (0.43) | (212) | (1.12) | |||||||||
| Total net charge-offs (recoveries) | $ | (473) | (0.01)% | $ | (595) | (0.01)% | $ | (329) | (0.01)% | ||||||
| (a) Annualized Net Charge-offs (recoveries) divided by Gross Balance |
Washington Federal, Inc.
Fact Sheet
September 30, 2022
($ in Thousands)
| As of 03/22 | As of 06/22 | As of 09/22 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Deposits & branches by State | AMOUNT | % | # | AMOUNT | % | # | AMOUNT | % | # | ||||||
| Washington | $ | 7,067,961 | 43.1 | % | 76 | $ | 7,040,668 | 44.1 | % | 76 | $ | 7,209,123 | 45.0 | % | 72 |
| Idaho | 1,122,007 | 6.8 | 22 | 1,073,221 | 6.7 | 22 | 1,052,550 | 6.6 | 22 | ||||||
| Oregon | 3,030,152 | 18.5 | 36 | 3,007,716 | 18.8 | 36 | 2,878,933 | 18.0 | 36 | ||||||
| Utah | 987,788 | 6.0 | 9 | 772,487 | 4.8 | 9 | 802,635 | 5.1 | 9 | ||||||
| Nevada | 539,805 | 3.3 | 10 | 525,675 | 3.3 | 9 | 534,655 | 3.3 | 9 | ||||||
| Texas | 622,118 | 3.8 | 6 | 553,379 | 3.5 | 6 | 562,192 | 3.5 | 6 | ||||||
| Arizona | 1,700,408 | 10.4 | 30 | 1,667,742 | 10.4 | 28 | 1,625,957 | 10.1 | 28 | ||||||
| New Mexico | 1,320,409 | 8.1 | 25 | 1,324,732 | 8.3 | 23 | 1,363,525 | 8.5 | 19 | ||||||
| Total | $ | 16,390,648 | 100% | 214 | $ | 15,965,620 | 100% | 209 | $ | 16,029,570 | 100% | 201 | |||
| Deposits by Type | AMOUNT | % | AMOUNT | % | AMOUNT | % | |||||||||
| Non-Interest Checking | $ | 3,251,603 | 19.8 | % | $ | 3,269,773 | 20.5 | % | $ | 3,266,734 | 20.4 | % | |||
| Interest Checking | 3,897,185 | 23.8 | 3,472,402 | 21.7 | 3,497,795 | 21.8 | |||||||||
| Savings | 1,078,147 | 6.6 | 1,069,801 | 6.7 | 1,059,093 | 6.6 | |||||||||
| Money Market | 4,912,671 | 30.0 | 4,856,275 | 30.4 | 4,867,905 | 30.4 | |||||||||
| Time Deposits | 3,251,042 | 19.8 | 3,297,369 | 20.7 | 3,338,043 | 20.8 | |||||||||
| Total | $ | 16,390,648 | 100% | $ | 15,965,620 | 100% | $ | 16,029,570 | 100% | ||||||
| Deposits greater than $250,000 - EOP | $ | 7,914,122 | $ | 7,463,761 | $ | 7,400,474 | |||||||||
| Time Deposit Repricing | Amount | Rate | Amount | Rate | Amount | Rate | |||||||||
| Within 3 months | $ | 530,189 | 0.45 | % | $ | 850,894 | 0.42 | % | $ | 978,004 | 0.56 | % | |||
| From 4 to 6 months | 830,454 | 0.43 | % | 894,688 | 0.40 | % | 966,800 | 0.72 | % | ||||||
| From 7 to 9 months | 722,437 | 0.45 | % | 681,182 | 0.56 | % | 353,053 | 0.56 | % | ||||||
| From 10 to 12 months | 591,916 | 0.41 | % | 327,193 | 0.53 | % | 457,627 | 0.85 | % | ||||||
| FHLB Advances (Effective Maturity) | Amount | Rate | Amount | Rate | Amount | Rate | |||||||||
| Within 1 year | $ | 320,000 | 2.08 | % | $ | 500,000 | 1.95 | % | $ | 1,025,000 | 3.06 | % | |||
| 1 to 3 years | 500,000 | 2.16 | % | 300,000 | 1.94 | % | 200,000 | 2.18 | % | ||||||
| 3 to 5 years | 100,000 | 1.82 | % | 100,000 | 1.80 | % | 100,000 | 1.92 | % | ||||||
| More than 5 years | 800,000 | 0.93 | % | 800,000 | 0.87 | % | 800,000 | 0.67 | % | ||||||
| Total | $ | 1,720,000 | $ | 1,700,000 | $ | 2,125,000 | |||||||||
| Interest Rate Risk | |||||||||||||||
| NPV post 200 bps shock (b) | 10.9 | % | 12.1 | % | 12.6 | % | |||||||||
| Change in NII after 200 bps shock (b) | 6.0 | % | 3.9 | % | 1.9 | % | |||||||||
| (b) Assumes no balance sheet management actions taken. |
Washington Federal, Inc.
Fact Sheet
September 30, 2022
($ in Thousands)
| Historical CPR Rates (c) | ||||
|---|---|---|---|---|
| WAFD | WAFD | |||
| Average for Quarter Ended: | SFR Mortgages | GSE MBS | ||
| 9/30/2020 | 31.2 | % | 42.8 | % |
| 12/31/2020 | 35.9 | % | 47.2 | % |
| 3/31/2021 | 36.0 | % | 44.1 | % |
| 6/30/2021 | 31.8 | % | 42.7 | % |
| 9/30/2021 | 28.4 | % | 38.3 | % |
| 12/31/2021 | 25.0 | % | 35.3 | % |
| 3/31/2022 | 18.4 | % | 28.6 | % |
| 6/30/2022 | 13.1 | % | 20.9 | % |
| 9/30/2022 | 8.1 | % | 14.7 | % |
| (c) The CPR Rate (conditional payment rate) is the rate that is equal to the proportion of the principal of a pool of loans that is paid off prematurely in each period. |
Washington Federal, Inc.
Fact Sheet
September 30, 2022
Average Balance Sheet
($ in Thousands)
| Quarter Ended | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, 2022 | June 30, 2022 | September 30, 2022 | ||||||||||||||||
| Average | Average | Average | Average | Average | Average | |||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||
| Assets | ||||||||||||||||||
| Loans receivable | $ | 14,869,733 | $ | 139,260 | 3.80 | % | $ | 15,350,905 | $ | 149,113 | 3.90 | % | $ | 15,812,170 | $ | 174,710 | 4.38 | % |
| Mortgage-backed securities | 852,134 | 4,659 | 2.22 | 1,416,212 | 8,618 | 2.44 | 1,369,326 | 8,263 | 2.39 | |||||||||
| Cash & investments | 3,085,239 | 5,757 | 0.76 | 2,056,387 | 8,281 | 1.62 | 1,658,428 | 13,735 | 3.29 | |||||||||
| FHLB & FRB Stock | 89,002 | 1,162 | 5.29 | 78,305 | 1,136 | 5.82 | 81,196 | 1,225 | 5.99 | |||||||||
| Total interest-earning assets | 18,896,108 | 150,838 | 3.24 | % | 18,901,809 | 167,148 | 3.55 | % | 18,921,120 | 197,933 | 4.15 | % | ||||||
| Other assets | 1,284,929 | 1,383,146 | 1,434,300 | |||||||||||||||
| Total assets | $ | 20,181,037 | $ | 20,284,955 | $ | 20,355,420 | ||||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||
| Interest-bearing customer accounts | 12,882,885 | 8,225 | 0.26 | % | 12,852,849 | 9,284 | 0.29 | % | 12,693,024 | 17,071 | 0.53 | % | ||||||
| FHLB advances | 1,720,000 | 7,525 | 1.77 | 1,705,824 | 6,118 | 1.44 | 1,778,098 | 7,243 | 1.62 | |||||||||
| Other borrowings | — | — | — | — | — | — | 38 | — | 0.0249 | |||||||||
| Total interest-bearing liabilities | 14,602,885 | 15,750 | 0.44 | % | 14,558,673 | 15,402 | 0.42 | % | 14,471,160 | 24,314 | 0.67 | % | ||||||
| Noninterest-bearing customer accounts | 3,198,052 | 3,278,346 | 3,331,065 | |||||||||||||||
| Other liabilities | 214,851 | 238,842 | 291,108 | |||||||||||||||
| Total liabilities | 18,015,788 | 18,075,861 | 18,093,333 | |||||||||||||||
| Shareholders’ equity | 2,165,249 | 2,209,094 | 2,262,087 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 20,181,037 | $ | 20,284,955 | $ | 20,355,420 | ||||||||||||
| Net interest income/interest rate spread | $ | 135,088 | 2.80 | % | $ | 151,746 | 3.12 | % | $ | 173,619 | 3.48 | % | ||||||
| Net interest margin (1) | 2.90 | % | 3.22 | % | 3.64 | % | ||||||||||||
| (1) Annualized net interest income divided by average interest-earning assets |
Washington Federal, Inc.
Fact Sheet
September 30, 2022
Delinquency Summary
($ in Thousands)
| AMOUNT OF LOANS | # OF LOANS | % based | % based | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| TYPE OF LOANS | #LOANS | AVG Size | NET OF LIP & CHG-OFFs | 30 | 60 | 90 | Total | on # | Delinquent | on | ||
| September 30, 2022 | ||||||||||||
| Multi-Family | 1,135 | 2,314 | $ | 2,626,479 | — | — | — | — | — | % | — | |
| Commercial Real Estate | 1,211 | 2,569 | 3,111,112 | 2 | 1 | 4 | 7 | 0.58 | 1,056 | 0.03 | ||
| Commercial & Industrial | 2,338 | 1,002 | 2,343,403 | 1 | 16 | 28 | 45 | 1.92 | 6,612 | 0.28 | ||
| Construction | 684 | 2,082 | 1,423,891 | — | — | — | — | — | — | — | ||
| Land - Acquisition & Development | 120 | 1,863 | 223,616 | — | — | — | — | — | — | — | ||
| Single-Family Residential | 19,218 | 298 | 5,726,979 | 19 | 8 | 60 | 87 | 0.45 | 17,983 | 0.31 | ||
| Construction - Custom | 1,233 | 322 | 397,343 | — | — | 1 | 1 | 0.08 | 435 | 0.11 | ||
| Land - Consumer Lot Loans | 1,277 | 119 | 151,945 | — | 1 | 1 | 2 | 0.16 | 199 | 0.13 | ||
| HELOC | 3,862 | 53 | 206,033 | 4 | 2 | 8 | 14 | 0.36 | 428 | 0.21 | ||
| Consumer | 2,025 | 37 | 75,571 | 14 | 3 | 11 | 28 | 1.38 | 214 | 0.28 | ||
| 33,103 | 492 | $ | 16,286,372 | 40 | 31 | 113 | 184 | 0.56 | % | 0.17 | ||
| June 30, 2022 | ||||||||||||
| Multi-Family | 1,124 | 2,205 | $ | 2,478,932 | — | — | — | — | — | % | — | |
| Commercial Real Estate | 1,183 | 2,432 | 2,876,995 | — | — | 5 | 5 | 0.42 | 351 | 0.01 | ||
| Commercial & Industrial | 2,506 | 935 | 2,344,046 | 5 | 6 | 28 | 39 | 1.56 | 16,421 | 0.70 | ||
| Construction | 719 | 1,957 | 1,407,211 | — | — | — | — | — | — | — | ||
| Land - Acquisition & Development | 125 | 1,784 | 222,974 | — | — | — | — | — | — | — | ||
| Single-Family Residential | 19,115 | 294 | 5,619,448 | 22 | 7 | 69 | 98 | 0.51 | 22,189 | 0.39 | ||
| Construction - Custom | 1,263 | 292 | 368,839 | — | — | 2 | 2 | 0.16 | 900 | 0.24 | ||
| Land - Consumer Lot Loans | 1,312 | 120 | 157,076 | 1 | — | 2 | 3 | 0.23 | 383 | 0.24 | ||
| HELOC | 3,665 | 51 | 187,469 | 3 | 3 | 4 | 10 | 0.27 | 202 | 0.11 | ||
| Consumer | 2,117 | 35 | 73,154 | 8 | 1 | 11 | 20 | 0.94 | 252 | 0.34 | ||
| 33,129 | 475 | $ | 15,736,144 | 39 | 17 | 121 | 177 | 0.53 | % | 0.26 | ||
| March 31, 2022 | ||||||||||||
| Multi-Family | 1,136 | 2,093 | $ | 2,377,657 | 1 | — | — | 1 | 0.09 | % | 0.01 | |
| Commercial Real Estate | 1,180 | 2,380 | 2,808,628 | 4 | — | 5 | 9 | 0.76 | 3,902 | 0.14 | ||
| Commercial & Industrial | 2,961 | 843 | 2,497,008 | 21 | 6 | 63 | 90 | 3.04 | 15,545 | 0.62 | ||
| Construction | 659 | 1,839 | 1,212,103 | — | — | — | — | — | — | — | ||
| Land - Acquisition & Development | 139 | 1,518 | 211,061 | — | — | 1 | 1 | 0.72 | 2,340 | 1.11 | ||
| Single-Family Residential | 18,796 | 288 | 5,418,645 | 29 | 18 | 67 | 114 | 0.61 | 21,264 | 0.39 | ||
| Construction - Custom | 1,174 | 293 | 344,113 | 1 | — | 1 | 2 | 0.17 | 900 | 0.26 | ||
| Land - Consumer Lot Loans | 1,321 | 116 | 153,549 | 2 | 1 | 5 | 8 | 0.61 | 377 | 0.25 | ||
| HELOC | 3,520 | 50 | 175,929 | 5 | 1 | 7 | 13 | 0.37 | 672 | 0.38 | ||
| Consumer | 2,201 | 31 | 67,617 | 9 | 3 | 7 | 19 | 0.86 | 96 | 0.14 | ||
| 33,087 | 461 | $ | 15,266,310 | 72 | 29 | 156 | 257 | 0.78 | % | 0.30 |
All values are in US Dollars.
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