-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GgsdpwxkvbU+rnRMzVkf6jiJvjodIc43mdUA+umWQHlS5vDjpjkUFQnD97s9OPc8 nXdjN5KsThrTJ01UqSsQPg== 0000936528-04-000011.txt : 20041026 0000936528-04-000011.hdr.sgml : 20041026 20041025195255 ACCESSION NUMBER: 0000936528-04-000011 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20041021 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041026 DATE AS OF CHANGE: 20041025 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WASHINGTON FEDERAL INC CENTRAL INDEX KEY: 0000936528 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 911661606 STATE OF INCORPORATION: WA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-25454 FILM NUMBER: 041095081 BUSINESS ADDRESS: STREET 1: 425 PIKE STREET CITY: SEATTLE STATE: WA ZIP: 98101 BUSINESS PHONE: 2066247930 MAIL ADDRESS: STREET 1: 425 PIKE ST CITY: SEATTLE STATE: WA ZIP: 98101 8-K 1 oct21_8k.txt OCTOBER 21 2004 FORM 8-K 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 21, 2004 ------------------------------ Washington Federal, Inc. - ------------------------------------------------------------------------------ (Exact name of registrant as specified in its charter) Washington 0-25454 91-1661606 - ------------------------------------------------------------------------------ (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) 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, former address and former fiscal year, 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: [ ] 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)) Item 2.02. Results of Operations and Financial Condition ------------- On October 21, 2004, Washington Federal, Inc. (the "Company") announced by press release its earnings for the year ended September 30, 2004. A copy of the press release is attached hereto as Exhibit 99.1. A copy of the September 30, 2004 Fact Sheet which presents certain detailed financial information about the Company is attached hereto as Exhibit 99.2. Item 7.01. Regulation FD Disclosure ------------- A copy of the September 30, 2004 Fact Sheet which presents certain detailed financial information about the Company is attached hereto as Exhibit 99.2. Item 9.01. Financial Statements and Exhibits ------------- (a) Not applicable. (b) Not applicable. (c) Exhibits: 99.1 Press release dated October 21, 2004. 99.2 Fact Sheet as of September 30, 2004. 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 hereunto duly authorized. WASHINGTON FEDERAL, INC. Dated: October 21, 2004 By: /s/ Brent J. Beardall --------------------- Brent J. Beardall Senior Vice President and Chief Financial Officer EX-99 2 oct21_x991.txt OCTOBER 21 2004 EXHIBIT 99.1 1 Washington Federal, Inc. 425 Pike Street Seattle, WA 98101 Contact: Cathy Cooper (206) 777-8246 Thursday, October 21, 2004 FOR IMMEDIATE RELEASE Washington Federal Reports Annual Earnings SEATTLE - Washington Federal, Inc. (Nasdaq: WFSL), parent company of Washington Federal Savings, today announced earnings of $131,868,000 or $1.66 per diluted share for the year ended September 30, 2004, compared to $144,999,000 or $1.88 per diluted share for the same period one year ago, a 9% decrease. Earnings for the fourth fiscal quarter amounted to $31,493,000 or $.40 per diluted share, including a one-time pre-tax charge of $5,191,000 related to the extinguishment of debt, compared to $34,747,000 or $.45 per diluted share for the same period one year ago, a 9% decrease. Net interest income declined by $10.4 million in fiscal 2004 due to lower asset yields that were only partially offset by a reduction in interest expense. Other income in 2004 included the one-time charge of $5 million mentioned above, compared to a gain on sale of real estate of $3 million reported in fiscal 2003. The company experienced record loan production during the year, resulting in a 5.7% net increase in loans outstanding. High cost debt obligations of $450 million were repaid during the year and capital grew to 15.62% of assets, the highest ratio in our history. Asset quality continued to be very strong due to the robust housing market. Roy M. Whitehead, President & CEO, commented, "Although down from the prior year, we are pleased to report solid operating results again this year. Net interest spread improved to 3.00% at year end from 2.47% last year, which gives us good reason to be optimistic about future earnings." The year produced a return on assets of 1.78%, while return on equity amounted to 12.12%. The company's efficiency ratio of 18.57% remains among the best in the industry. On October 19, 2004, Washington Federal announced a restatement of financial results for the fiscal years 2001 through 2003 due to a review of its accounting for derivatives under FAS 133. The review resulted in an adjustment that increased after-tax net income in those years by a cumulative $7,734,000, or 1.92% of previously reported net income. On October 22, 2004, Washington Federal will pay a cash dividend of $.21 per share to common stockholders of record on October 8, 2004. This will be the company's 87th consecutive quarterly cash dividend. Washington Federal Savings, with headquarters in Seattle, Washington, has 120 offices in eight western states. -1- 2 WASHINGTON FEDERAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
September 30, 2004 September 30, 2003 ------------------ ------------------------------- as previously restated reported -------- ----------- (In thousands, except per share data) ASSETS Cash and cash equivalents ......................................... $ 508,361 $ 1,437,208 $ 1,437,208 Securities purchased under agreements to resell ................... 200,000 - - Available-for-sale securities, including mortgage-backed securities of $522,145 ......................................... 899,525 781,798 804,186 Held-to-maturity securities, including mortgage-backed securities of $119,312 ......................................... 156,373 154,178 154,178 Securitized assets subject to repurchase, net ..................... 110,607 210,782 210,782 Loans receivable, net ............................................. 4,982,836 4,606,726 4,606,726 Interest receivable ............................................... 29,832 29,489 29,489 Premises and equipment, net ....................................... 63,049 60,942 60,942 Real estate held for sale ......................................... 8,630 16,204 16,204 FHLB stock ........................................................ 137,274 143,851 143,851 Intangible assets ................................................. 58,939 60,336 60,336 Other assets ...................................................... 13,779 34,461 12,073 ----------- ----------- ----------- $ 7,169,205 $ 7,535,975 $ 7,535,975 =========== =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Customer accounts Savings and demand accounts .................................... $ 4,569,245 $ 4,520,051 $ 4,520,051 Repurchase agreements with customers ........................... 41,113 57,547 57,547 ----------- ----------- ----------- 4,610,358 4,577,598 4,577,598 FHLB advances ..................................................... 1,200,000 1,650,000 1,650,000 Other borrowings................................................... 100,000 100,000 100,000 Advance payments by borrowers for taxes and insurance ............. 25,226 23,281 23,281 Federal and state income taxes .................................... 62,081 70,011 70,011 Accrued expenses and other liabilities ............................ 51,352 59,489 59,489 ----------- ----------- ----------- 6,049,017 6,480,379 6,480,379 STOCKHOLDERS' EQUITY Common stock, $1.00 par value, 100,000,000 shares authorized; 94,383,496 and 94,109,168 shares issued; 78,679,597 and 78,290,836 shares outstanding .............................. 94,383 85,554 85,554 Paid-in capital ................................................... 1,161,627 1,085,650 1,085,650 Accumulated other comprehensive income, net of taxes .............. 17,107 26,890 34,624 Treasury stock, at cost; 15,703,899 and 15,818,332 shares ......... (206,666) (207,337) (207,337) Retained earnings ................................................. 53,737 64,839 57,105 ----------- ----------- ----------- 1,120,188 1,055,596 1,055,596 ----------- ----------- ----------- $ 7,169,205 $ 7,535,975 $ 7,535,975 =========== =========== =========== CONSOLIDATED FINANCIAL HIGHLIGHTS Stockholders' equity per share .................................... $ 14.24 $ 13.48 $ 13.48 Stockholders' equity to total assets .............................. 15.62% 14.01% 14.01% Weighted average rates at period end Loans and mortgage-backed securities* ........................... 6.17% 6.40% 6.40% Investment securities** ......................................... 3.01 1.98 1.98 Combined loans, mortgage-backed securities and investment securities .................................... 5.62 5.28 5.28 Customer accounts ............................................... 1.96 1.96 1.96 Borrowings ...................................................... 4.96 5.03 5.03 Combined cost of customer accounts and borrowings ............... 2.62 2.81 2.81 Interest rate spread ............................................ 3.00 2.47 2.47
* Includes securitized assets subject to repurchase **Includes municipal bonds at tax equivalent yields and cash equivalents -2- 3 WASHINGTON FEDERAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Quarter Ended September 30, Year Ended September 30, ------------------------------ -------------------------------- 2004 2003 2003 2004 2003 2003 -------- -------- -------- -------- -------- -------- as previously as previously restated reported restated reported -------- ----------- -------- ----------- (In thousands, except per share data) INTEREST INCOME Loans and securitized assets subject to repurchase ........ $ 83,533 $ 82,053 $ 82,053 $330,967 $353,286 $353,286 Mortgage-backed securities ................................. 12,781 13,583 13,151 48,554 62,021 62,911 Investment securities and cash equivalents.................. 8,883 8,626 8,626 34,251 33,988 33,988 -------- -------- -------- -------- -------- -------- 105,197 104,262 103,830 413,772 449,295 450,185 INTEREST EXPENSE Customer accounts .......................................... 22,128 22,279 22,279 86,099 105,919 105,919 FHLB advances and other borrowings ......................... 19,124 22,420 22,420 83,654 88,965 88,965 -------- -------- -------- -------- -------- -------- 41,252 44,699 44,699 169,753 194,884 194,884 -------- -------- -------- -------- -------- -------- NET INTEREST INCOME ........................................ 63,945 59,563 59,131 244,019 254,411 255,301 Provision (reversal of reserve) for loan losses ............ --- --- --- (231) 1,500 1,500 -------- -------- -------- -------- -------- -------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES ........ 63,945 59,563 59,131 244,250 252,911 253,801 OTHER INCOME Gain (loss) on sale of securities, net ..................... (171) 746 504 (890) 1,039 992 Gain on sale of real estate ................................ --- --- --- --- 3,382 3,382 Loss on extinguishment of debt ............................. (5,191) --- --- (5,191) --- --- Other ...................................................... 2,653 3,914 3,396 11,224 12,343 10,643 -------- -------- -------- -------- -------- -------- (2,709) 4,660 3,900 5,143 16,764 15,017 OTHER EXPENSE Compensation and fringe benefits ........................... 8,202 7,547 7,547 31,411 30,846 30,846 Occupancy .................................................. 2,323 1,696 1,178 7,813 6,798 5,098 Other ...................................................... 2,068 1,403 1,403 7,040 8,115 8,115 -------- -------- -------- -------- -------- -------- 12,593 10,646 10,128 46,264 45,759 44,059 Gain (loss) on real estate acquired through foreclosure, net 28 84 84 583 (194) (194) -------- -------- -------- -------- -------- -------- Income before income taxes ................................. 48,671 53,661 52,987 203,712 223,722 224,565 Income taxes ............................................... 17,178 18,914 18,676 71,844 78,723 79,021 -------- -------- -------- -------- -------- -------- NET INCOME ................................................. $ 31,493 $ 34,747 $ 34,311 $131,868 $144,999 $145,544 ======== ======== ======== ======== ======== ======== PER SHARE DATA Basic earnings ............................................. $ .40 $ .45 $ .45 $ 1.68 $ 1.89 $ 1.89 Diluted earnings ........................................... .40 .45 .44 1.66 1.88 1.88 Cash dividends ............................................. .21 .20 .20 .82 .78 .78 Weighted average number of shares outstanding, including dilutive stock options ........................ 79,314,820 77,639,585 77,639,585 79,209,806 77,255,964 77,255,964 Return on average assets ................................... 1.73% 1.90% 1.90% 1.78% 1.98% 1.98%
-3- EX-99 3 oct21_x992.txt OCTOBER 21 2004 EXHIBIT 99.2 1 Washington Federal, Inc. Fact Sheet September 30, 2004 ($ in Thousands) 3/04 QTR 6/04 QTR 9/04 QTR -------- -------- --------- Loan Loss Reserve - Total $ 25,462 $ 25,194 $ 25,140 - General 24,075 24,491 24,374 - Specific 1,388 703 766 Net Charge-offs (Recoveries) for the Qtr 168 38 54 Nonperforming Assets - Total 25,216 14,441 14,946 - REO 8,567 4,282 3,817 - Nonaccrual 16,649 10,159 11,129 Troubled Debt Restructuring 1,465 1,450 803 Capital Ratios - Tangible 990,996 13.36% 1,009,374 14.05% 1,036,851 14.65% - Core 990,996 13.36 1,009,374 14.05 1,036,851 14.65 - Risk Based 1,008,351 25.81 1,027,225 26.46 1,054,160 26.85 3/04 QTR 3/04 YTD 6/04 QTR 6/04 YTD 9/04 QTR 9/04 YTD -------- -------- -------- -------- --------- -------- Loan Originations - Total $ 429,564 $ 912,824 $ 603,460 $1,516,284 $ 554,700 $2,070,984 - Construction 127,989 242,649 163,292 405,941 165,888 571,829 - Land 56,966 120,402 62,568 182,970 70,167 253,137 - Permanent 223,002 506,907 348,506 855,413 304,346 1,159,759 - Refinances 21,607 42,866 29,094 71,960 14,299 86,259 3/04 QTR 3/04 YTD 6/04 QTR 6/04 YTD 9/04 QTR 9/04 YTD -------- -------- -------- -------- -------- -------- Loan Servicing Fee Income $ 1,223 $ 2,796 $ 2,066 $ 4,862 $ 1,384 $ 6,246 Other Fee Income 237 457 247 704 358 1,062 -------- -------- -------- -------- -------- -------- Total Fee Income $ 1,460 $ 3,253 $ 2,313 $ 5,566 $ 1,742 $ 7,308 ======== ======== ======== ======== ======== ======== 3/04 QTR 3/04 YTD 6/04 QTR 6/04 YTD 9/04 QTR 9/04 YTD -------- -------- -------- -------- -------- -------- Average Loans $4,874,013 $4,852,020 $4,926,018 $4,876,596 $5,018,103 $4,912,166 Average Earning Assets 7,264,724 7,245,950 7,082,071 7,191,523 7,078,265 7,163,054 Average Assets 7,537,758 7,536,417 7,355,213 7,463,268 7,283,121 7,421,597 Operating Expenses/Average Assets 0.61% 0.60% 0.60% 0.60% 0.69% 0.62% Efficiency Ratio 18.64 18.36 17.07 17.92 20.56 18.57 Amortization of Intangibles $ 355 $ 723 $ 343 $ 1,066 $ 331 $ 1,397 Repayments 3/04 QTR 3/04 YTD 6/04 QTR 6/04 YTD 9/04 QTR 9/04 YTD - ---------- -------- -------- -------- -------- -------- -------- Loans $ 348,201 $ 789,354 $ 498,569 $1,287,923 $ 394,494 $1,682,417 MBS 55,189 139,923 78,882 218,805 53,896 272,701 EOP Numbers 3/04 QTR 6/04 QTR 9/04 QTR - ----------- -------- -------- --------- Shares Issued and Outstanding 78,498,545 78,443,825 78,679,597 Share repurchase information 3/04 QTR 3/04 YTD 6/04 QTR 6/04 YTD 9/04 QTR 9/04 YTD - ---------------------------- -------- -------- -------- -------- -------- -------- Remaining shares auth. for repurchase 3,094,103 3,094,103 3,009,103 3,009,103 3,009,103 3,009,103 Shares repurchased --- --- 85,000 85,000 --- 85,000 Average share repurchase price $ --- $ --- $ 22.81 $ 22.81 $ --- $ 22.81 -1- 2 Tangible Book Value 3/04 QTR 6/04 QTR 9/04 QTR - ------------------- -------- -------- -------- $ Amount $1,032,727 $1,037,463 $1,061,249 Per Share 13.16 13.23 13.49 # of Employees 754 757 754 Tax Rate - Going Forward 35.25% 35.25% 35.25% 3/04 QTR 6/04 QTR 9/04 QTR ---------------- ---------------- ---------------- Loan Portfolio by Category AMOUNT % AMOUNT % AMOUNT % - -------------------------- ------ - ------ - ------ - Permanent 1-4 Family Loans $3,852,130 72.6% $3,878,029 71.8% $3,982,632 71.2% Multi-Family 490,865 9.3 470,832 8.7 467,354 8.4 Construction 705,726 13.3 784,078 14.5 845,259 15.1 Land 254,610 4.8 272,249 5.0 297,351 5.3 ---------- ---- ---------- ---- ---------- ---- Gross Loans (before ALL, Deferrals and LIP) $5,303,331 100% $5,405,188 100% $5,592,596 100% ========== ==== ========== ==== ========== ==== 3/04 QTR 6/04 QTR 9/04 QTR ----------------------- ----------------------- ----------------------- Deposits by State AMOUNT % # AMOUNT % # AMOUNT % # - ----------------- ------ - - ------ - - ------ - - WA $2,222,699 48.8% 44 $2,207,650 48.3% 44 $2,210,427 47.9% 44 ID 483,037 10.6 16 481,019 10.5 16 487,963 10.6 16 OR 774,609 17.0 24 796,426 17.4 25 805,667 17.5 25 UT 270,082 5.9 11 279,912 6.1 11 282,612 6.1 11 NV 61,534 1.3 2 61,929 1.4 2 63,790 1.4 2 TX 23,275 0.5 1 21,090 0.5 2 30,967 0.7 2 AZ 725,510 15.9 20 724,473 15.8 20 728,933 15.8 20 ---------- ---- --- ---------- ---- --- ---------- ---- --- Total $4,560,746 100% 118 $4,572,499 100% 120 $4,610,359 100% 120 ========== ==== === ========== ==== === ========== ==== === 3/04 QTR 6/04 QTR 9/04 QTR ---------------- ---------------- ---------------- Deposits by Type AMOUNT % AMOUNT % AMOUNT % - ---------------- ------ - ------ - ------ - Checking (Noninterest) $ 18,625 0.4% $ 15,712 0.3% $ 13,351 0.3% Now (interest) 169,947 3.7 183,816 4.0 182,805 4.0 Savings (passbook/stmt) 228,712 5.0 226,121 4.9 224,989 4.9 Money Market 963,632 21.1 947,979 20.7 929,952 20.2 C.D.'s 3,179,830 69.8 3,198,871 70.1 3,259,262 70.6 ---------- ---- ---------- ---- ---------- ---- Total $4,560,746 100% $4,572,499 100% $4,610,359 100% ========== ==== ========== ==== ========== ==== Deposits greater than $100,000 - EOP $1,145,097 $1,154,100 $1,199,447 Brokered Deposits $ --- $ --- $ --- -2-
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