-----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, WKiwPqULIj6vExOu3s2ITEHrVRSvpDYJBm2BwZQtyfjAGCqPXo3Wwu02hoWZULH/ mO6uNGl72jnnuh1aLO8Xog== 0000936528-06-000003.txt : 20060414 0000936528-06-000003.hdr.sgml : 20060414 20060414164035 ACCESSION NUMBER: 0000936528-06-000003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20060413 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060414 DATE AS OF CHANGE: 20060414 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: 06760865 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 apr13_8k.txt APRIL 13, 2006 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) April 13, 2006 ------------------------------ 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 April 13, 2006, Washington Federal, Inc. (the "Company") announced by press release its earnings for the quarter ended March 31, 2006. A copy of the press release is attached hereto as Exhibit 99.1. A copy of the March 31, 2006 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 March 31, 2006 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 April 13, 2006. 99.2 Fact Sheet as of March 31, 2006. 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: April 14, 2006 By: /s/ Brent J. Beardall --------------------- Brent J. Beardall Senior Vice President and Chief Financial Officer EX-99 2 apr13_x991.txt APRIL 13, 2006 FORM 8-K EXHIBIT 99.1 1 Washington Federal, Inc. 425 Pike Street Seattle, WA 98101 Contact: Cathy Cooper (206) 777-8246 Thursday, April 13, 2006 FOR IMMEDIATE RELEASE Washington Federal Reports 2nd Quarter Earnings SEATTLE - Washington Federal, Inc. (Nasdaq: WFSL), parent company of Washington Federal Savings, today announced earnings of $36,340,000 or $.42 per diluted share for the quarter ended March 31, 2006, compared to $40,961,000 or $.47 per diluted share for the quarter ended March 31, 2005. The quarter ended March 31, 2005 included a net adjustment for derivatives that increased after tax earnings by $4,328,000 or $.05 per diluted share. Excluding the derivatives adjustment, operating results for the quarters ended March 31, 2006 and 2005 respectively, totaled $.42 per diluted share. For the six months ended March 31, 2006 earnings were $72,486,000 or $.83 per diluted share, compared to $77,219,000 or $.88 per diluted share for the six months ended March 31, 2005. Excluding the derivatives adjustment, earnings for the six months ended March 31, 2005 would have been $72,591,000 or $.83 per diluted share. The second fiscal quarter produced a return on assets of 1.73%, while return on equity amounted to 12.02% for the quarter. Year-to-date, return on assets measured 1.74% and return on equity was 12.05%. Chief Executive Officer Roy M. Whitehead commented, "The company's flat earnings are attributable to higher deposit costs, which increased 59% over the same period last year. We are pleased that the balance sheet positioning undertaken in prior periods enabled us to offset this extraordinary increase in funding costs. Asset quality continues to be very strong, with non-performing assets amounting to less than 1/10th of 1% of total assets. In light of the flat-to-inverted yield curve and a slowing housing sector, it was a solid quarter." Washington Federal Savings, with headquarters in Seattle, Washington, has 122 offices in seven western states. -1- 2 WASHINGTON FEDERAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
March 31, 2006 September 30, 2005 -------------- ------------------ (In thousands, except per share data) ASSETS Cash and cash equivalents ......................................... $ 383,317 $ 637,791 Available-for-sale securities, including mortgage-backed securities of $984,984 ......................................... 1,159,869 1,077,856 Held-to-maturity securities, including mortgage-backed securities of $161,921 ......................................... 196,955 212,479 Loans receivable, net ............................................. 6,543,126 6,008,932 Interest receivable ............................................... 36,975 34,048 Premises and equipment, net ....................................... 63,498 63,287 Real estate held for sale ......................................... 4,388 5,631 FHLB stock ........................................................ 129,453 129,453 Intangible assets, net ............................................ 56,734 57,259 Other assets ...................................................... 13,237 7,714 ----------- ----------- $ 8,587,552 $ 8,234,450 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Customer accounts Savings and demand accounts .................................... $ 5,130,275 $ 5,002,172 Repurchase agreements with customers ........................... 30,107 29,333 ----------- ----------- 5,160,382 5,031,505 FHLB advances ..................................................... 1,500,000 1,230,000 Other borrowings................................................... 600,000 655,000 Advance payments by borrowers for taxes and insurance ............. 22,410 27,533 Federal and state income taxes .................................... 37,116 44,617 Accrued expenses and other liabilities ............................ 52,204 58,487 ----------- ----------- 7,372,112 7,047,142 STOCKHOLDERS' EQUITY Common stock, $1.00 par value, 300,000,000 shares authorized; 104,336,960 and 104,140,966 shares issued; 87,187,699 and 86,933,294 shares outstanding .................................. 104,337 104,141 Paid-in capital ................................................... 1,242,806 1,240,310 Accumulated other comprehensive loss, net of taxes ................ (14,868) (704) Treasury stock, at cost; 17,149,261 shares ........................ (205,178) (205,874) Retained earnings ................................................. 88,343 49,435 ----------- ----------- 1,215,440 1,187,308 ----------- ----------- $ 8,587,552 $ 8,234,450 =========== =========== CONSOLIDATED FINANCIAL HIGHLIGHTS Stockholders' equity per share .................................... $ 13.94 $ 13.66 Stockholders' equity to total assets .............................. 14.15% 14.42% Weighted average rates at period end Loans and mortgage-backed securities* ........................... 6.32% 6.19% Investment securities** ......................................... 4.28 3.74 Combined loans, mortgage-backed securities and investment securities .................................... 6.15 5.91 Customer accounts ............................................... 3.38 2.94 Borrowings ...................................................... 4.48 4.51 Combined cost of customer accounts and borrowings ............... 3.70 3.37 Interest rate spread ............................................ 2.45 2.54
* 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 March 31, Six Months Ended March 31, ----------------------- -------------------------- 2006 2005 2006 2005 -------- -------- --------- --------- (In thousands, except per share data) INTEREST INCOME Loans ...................................................... $ 106,274 $ 90,321 $ 208,679 $ 177,206 Mortgage-backed securities ................................. 15,725 23,568 30,093 36,402 Investment securities and cash equivalents ................. 6,660 8,291 14,449 16,115 -------- -------- -------- -------- 128,659 122,180 253,221 229,723 INTEREST EXPENSE Customer accounts .......................................... 41,459 26,622 80,308 50,514 FHLB advances and other borrowings ......................... 21,724 18,941 43,374 37,195 -------- -------- -------- -------- 63,183 45,563 123,682 87,709 -------- -------- -------- -------- NET INTEREST INCOME ........................................ 65,476 76,617 129,539 142,014 Provision for loan losses .................................. 85 - 85 - -------- -------- -------- -------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES ........ 65,391 76,617 129,454 142,014 OTHER INCOME Gain (loss) on securities, net ............................. - (3,476) - (3,412) Other ...................................................... 3,404 3,746 6,796 6,260 -------- -------- -------- -------- 3,404 270 6,796 2,848 OTHER EXPENSE Compensation and fringe benefits ........................... 9,040 8,733 17,275 17,067 Occupancy .................................................. 2,017 3,124 3,930 4,960 Other ...................................................... 2,458 2,106 4,981 3,914 -------- -------- -------- -------- 13,515 13,963 26,186 25,941 Gain on real estate acquired through foreclosure, net ...... 5 581 144 799 -------- -------- -------- -------- Income before income taxes ................................. 55,285 63,505 110,208 119,720 Income taxes ............................................... 18,945 22,544 37,722 42,501 -------- -------- -------- -------- NET INCOME ................................................. $ 36,340 $ 40,961 $ 72,486 $ 77,219 ======== ======== ======== ======== PER SHARE DATA Basic earnings ............................................. $ .42 $ .47 $ .83 $ .89 Diluted earnings ........................................... .42 .47 .83 .88 Cash dividends ............................................. .20 .19 .40 .38 Weighted average number of shares outstanding, including dilutive stock options ........................ 87,363,894 87,464,540 87,378,631 87,452,362 PERFORMANCE RATIOS Return on average assets ................................... 1.73% 2.16% 1.74% 2.07% Return on average stockholders' equity ..................... 12.02% 14.29% 12.05% 13.57% Net interest margin ........................................ 3.18% 4.15% 3.18% 3.91%
-3- EX-99 3 apr13_x992.txt APRIL 13, 2006 FORM 8-K EXHIBIT 99.2 1 Washington Federal, Inc. Fact Sheet March 31, 2006 ($ in Thousands) 9/05 QTR 12/05 QTR 3/06 QTR -------- -------- --------- Loan Loss Reserve - Total $ 24,756 $ 24,736 $ 24,810 - General 24,259 24,410 24,484 - Specific 497 327 326 Net Charge-offs (Recoveries) for the Qtr 112 20 12 Nonperforming Assets - Total 7,344 7,779 6,957 - REO 756 410 0 - Nonaccrual 6,588 7,369 6,957 Troubled Debt Restructuring 573 281 284 Regulatory Capital Ratios - Tangible 1,123,485 13.75% 1,144,708 13.86% 1,166,993 13.65% - Core 1,123,485 13.75 1,144,708 13.86 1,166,993 13.65 - Risk Based 1,140,877 26.75 1,163,041 25.65 1,184,961 25.21 9/05 QTR 9/05 YTD 12/05 QTR 3/06 QTR 3/06 YTD -------- -------- -------- -------- -------- Loan Originations - Total $ 693,563 $2,436,826 $ 597,101 $ 561,884 $1,158,985 - Single-Family 354,156 1,209,557 297,693 221,636 519,329 - Multi-Family 52,850 151,839 32,792 37,965 70,757 - Land 89,314 358,862 91,146 108,073 199,219 - Construction 197,243 716,568 175,470 194,210 369,680 9/05 QTR 9/05 YTD 12/05 QTR 3/06 QTR 3/06 YTD -------- -------- -------- ------- -------- Loan Servicing Fee Income $ 1,910 $ 6,827 $ 1,722 $ 1,362 $ 3,084 Other Fee Income 341 1,046 221 220 441 -------- -------- -------- -------- -------- Total Fee Income $ 2,251 $ 7,873 $ 1,943 $ 1,582 $ 3,525 ======== ======== ======== ======== ======== 9/05 QTR 9/05 YTD 12/05 QTR 3/06 QTR 3/06 YTD -------- -------- -------- -------- -------- Average Loans $5,856,081 $5,531,687 $6,146,050 $6,362,119 $6,252,897 Average Earning Assets 7,794,351 7,473,204 8,077,990 8,225,619 8,150,993 Average Assets 8,031,363 7,697,085 8,270,494 8,412,784 8,346,830 Average Paying Liabilities 6,642,604 6,351,054 6,890,433 7,056,452 6,972,530 Operating Expenses/Average Assets 0.68% 0.68% 0.61% 0.64% 0.63% Efficiency Ratio 21.64 19.16 18.78 19.62 19.21 Amortization of Intangibles $ 281 $ 1,198 $ 269 $ 256 $ 525 Repayments 9/05 QTR 9/05 YTD 12/05 QTR 3/06 QTR 3/06 YTD - ---------- -------- -------- -------- -------- -------- Loans $ 510,214 $1,767,892 $ 467,061 $ 402,335 $ 869,396 MBS 67,009 221,698 54,625 42,979 97,604 EOP Numbers 9/05 QTR 12/05 QTR 3/06 QTR - ----------- -------- -------- --------- Shares Issued and Outstanding 86,933,294 87,017,789 87,187,699 Share repurchase information 9/05 QTR 9/05 YTD 12/05 QTR 3/06 QTR 3/06 YTD - ---------------------------- -------- -------- -------- -------- -------- Remaining shares auth. for repurchase 3,310,014 3,310,014 3,310,014 3,310,014 3,310,014 Shares repurchased - - - - - Average share repurchase price $ - $ - $ - $ - $ - -1- 2 Tangible Book Value 9/05 QTR 12/05 QTR 3/06 QTR - ------------------- -------- --------- -------- $ Amount $1,130,049 $1,141,648 $1,158,706 Per Share 13.00 13.12 13.29 # of Employees 749 751 751 Tax Rate - Going Forward 35.50% 35.50% 34.25% AS OF 9/30/05 AS OF 12/31/05 AS OF 3/31/06 ---------------- ---------------- ----------------- Loan Portfolio by Category AMOUNT % AMOUNT % AMOUNT % - -------------------------- ------ - ------ - ------ - Single-Family Residential $4,630,411 70.2% $4,840,030 70.7% $5,049,936 70.6% Multi-Family 501,823 7.6 506,939 7.4 515,310 7.2 Construction 1,021,419 15.5 1,042,005 15.2 1,077,605 15.1 Land 438,621 6.7 460,326 6.7 505,063 7.1 ---------- ---- ---------- ---- ---------- ---- Gross Loans (before ALL/Deferrals/LIP) $6,592,274 100% $6,849,300 100% $7,147,914 100% ========== ==== ========== ==== ========== ==== AS OF 9/30/05 AS OF 12/31/05 AS OF 3/31/06 ----------------------- ----------------------- ----------------------- Deposits by State AMOUNT % # AMOUNT % # AMOUNT % # - ----------------- ------ - - ------ - - ------ - - WA $2,350,615 46.7% 43 $2,380,167 46.8% 43 $2,382,201 46.1% 43 ID 519,962 10.3 16 524,886 10.3 16 532,071 10.3 16 OR 911,691 18.1 27 913,637 18.0 27 947,706 18.4 27 UT 299,609 6.0 10 299,433 5.9 10 302,450 5.9 10 NV 127,514 2.5 3 136,666 2.7 3 134,579 2.6 3 TX 49,420 1.0 3 57,496 1.1 3 62,984 1.2 3 AZ 772,694 15.4 20 772,042 15.2 20 798,391 15.5 20 ---------- ---- --- ---------- ---- --- ---------- ---- --- Total $5,031,505 100% 122 $5,087,327 100% 122 $5,160,382 100% 122 ========== ==== === ========== ==== === ========== ==== === 9/05 QTR 12/05 QTR 3/06 QTR ---------------- ---------------- ---------------- Deposits by Type AMOUNT % AMOUNT % AMOUNT % - ---------------- ------ - ------ - ------ - Checking (noninterest) $ 34,013 0.7% $ 29,306 0.6% $ 26,690 0.5% NOW (interest) 171,469 3.4 175,067 3.4 184,743 3.6 Savings (passbook/stmt) 191,919 3.8 187,034 3.7 176,654 3.4 Money Market 871,945 17.3 886,032 17.4 851,140 16.5 CD's 3,762,159 74.8 3,809,888 74.9 3,921,155 76.0 ---------- ---- ---------- ---- ---------- ---- Total $5,031,505 100% $5,087,327 100% $5,160,382 100% ========== ==== ========== ==== ========== ==== Deposits greater than $100,000 - EOP $1,365,486 $1,412,390 $1,426,877 Brokered Deposits $ --- $ --- $ --- -2-
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