-----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, HNieONSzcMtjJ0xFCuqdfJs9rgIogKjCXepJ57uUJUxOhakChiBR6PshGgoQ89+z h4/BqO7OZDLvD7l7b2T2lA== 0000936528-06-000007.txt : 20061020 0000936528-06-000007.hdr.sgml : 20061020 20061019194352 ACCESSION NUMBER: 0000936528-06-000007 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20061019 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061020 DATE AS OF CHANGE: 20061019 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: 061154240 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 oct19_8k.txt OCTOBER 19 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) October 19, 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 October 19, 2006, Washington Federal, Inc. (the "Company") announced by press release its earnings for the year ended September 30, 2006. A copy of the press release is attached hereto as Exhibit 99.1. A copy of the September 30, 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 September 30, 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 October 19, 2006. 99.2 Fact Sheet as of September 30, 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: October 19, 2006 By: /s/ Brent J. Beardall --------------------- Brent J. Beardall Senior Vice President and Chief Financial Officer EX-99 2 oct19_x991.txt OCTOBER 19 2006 FORM 8-K EXHIBIT 99.1 1 Washington Federal, Inc. 425 Pike Street Seattle, WA 98101 Contact: Cathy Cooper (206) 777-8246 Thursday, October 19, 2006 FOR IMMEDIATE RELEASE Washington Federal Reports Fiscal Year Earnings of $143 Million SEATTLE - Washington Federal, Inc. (Nasdaq: WFSL), parent company of Washington Federal Savings, today announced earnings of $143,102,000 or $1.64 per diluted share for the year ended September 30, 2006, compared to $145,889,000 or $1.67 per diluted share for the same period one year ago, a 2% decrease. Earnings for the fourth fiscal quarter amounted to $35,279,000 or $.40 per diluted share compared to $34,389,000 or $.39 per diluted share for the same period one year ago, a 3% increase. Roy M. Whitehead, Chairman, President & CEO, commented, "We are proud to report another year of solid financial performance. Earnings during the year were maintained by reinvesting cash into longer-term assets and by modestly leveraging the company's substantial capital position. These moves were undertaken to offset a significant increase in interest expense on customer deposits over the prior year. Investors will be pleased to know that asset quality continues to be quite strong, despite a clear softening in most of the housing markets served by Washington Federal. A larger concern at the moment is the negative spread between short and long-term interest rates. This so-called "inverted yield curve", along with weaker housing, will likely make earnings growth difficult during the next few quarters." The year produced a return on assets of 1.67%, while return on equity amounted to 11.77%. The company's efficiency ratio (operating expenses as a percentage of net revenue) of 19.66% for the year remains among the best in the industry. -1- 2 Total assets of $9.069 billion at September 30, 2006, represents an increase of $835 million or 10% above last year. Total net loans outstanding increased $1.070 billion to $7.078 billion as of September 30, 2006, an 18% increase over last year. Stockholders' equity increased $75 million or 6% to $1.263 billion as of September 30, 2006. Net interest income declined by $10 million or 4% for the year to $257 million due primarily to a 55% or $64 million increase in interest expense on customer accounts. $46 million of this increase was attributable to higher interest rates, the remaining $18 million was due to higher volumes. The weighted average rate on customer accounts increased from 2.94% at September 30, 2005 to 4.05% as of September 30, 2006. This increase is the result of rising short-term interest rates. Our period end net interest spread decreased to 2.18% as of September 30, 2006 from 2.54% one year earlier. Due to a change in accounting rules, fiscal 2006 also included a $1.1 million expense for stock options granted to employees; 2005 did not include any stock option expense. On October 10, 2006, Washington Federal announced the signing of a definitive merger agreement to acquire First Federal Banc of the Southwest, Inc. ("First Federal"). First Federal is headquartered in Roswell, New Mexico with 13 branches in New Mexico and 2 branches in El Paso, Texas. First Federal reported total assets of $562 million, total deposits of $392 million and total stockholders' equity of $53 million as of June 30, 2006. The transaction is expected to close in the first calendar quarter of 2007. On October 20, 2006, Washington Federal will pay a cash dividend of $.205 per share to common stockholders of record on October 6, 2006. This will be the company's 95th consecutive quarterly cash dividend. During the quarter the Company also opened a new branch location in Medford, Oregon. Washington Federal Savings, with headquarters in Seattle, Washington, has 123 offices in seven western states. -2- 3 WASHINGTON FEDERAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
September 30, 2006 September 30, 2005 ------------------- ------------------ (In thousands, except per share data) ASSETS Cash and cash equivalents ......................................... $ 45,722 $ 637,791 Available-for-sale securities, including mortgage-backed securities of $1,229,409 ....................................... 1,451,038 1,077,856 Held-to-maturity securities, including mortgage-backed securities of $149,907 ......................................... 184,928 212,479 Loans receivable, net ............................................. 7,078,443 6,008,932 Interest receivable ............................................... 42,304 34,048 Premises and equipment, net ....................................... 62,159 63,287 Real estate held for sale ......................................... 3,903 5,631 FHLB stock ........................................................ 129,453 129,453 Intangible assets, net ............................................ 56,259 57,259 Other assets ...................................................... 14,811 7,714 ----------- ----------- $ 9,069,020 $ 8,234,450 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Customer accounts Savings and demand accounts .................................... $ 5,285,708 $ 5,002,172 Repurchase agreements with customers ........................... 26,018 29,333 ----------- ----------- 5,311,726 5,031,505 FHLB advances ..................................................... 1,500,000 1,230,000 Other borrowings................................................... 870,000 655,000 Advance payments by borrowers for taxes and insurance ............. 29,505 27,533 Federal and state income taxes .................................... 39,667 44,617 Accrued expenses and other liabilities ............................ 55,402 58,487 ----------- ----------- 7,806,300 7,047,142 STOCKHOLDERS' EQUITY Common stock, $1.00 par value, 300,000,000 shares authorized; 104,467,245 and 104,140,966 shares issued; 87,338,824 and 86,933,294 shares outstanding .................................. 104,467 104,141 Paid-in capital ................................................... 1,246,025 1,240,310 Accumulated other comprehensive loss, net of taxes ................ (5,975) (704) Treasury stock, at cost; 17,128,421 and 17,207,672 shares ......... (204,930) (205,874) Retained earnings ................................................. 123,133 49,435 ----------- ----------- 1,262,720 1,187,308 ----------- ----------- $ 9,069,020 $ 8,234,450 =========== =========== CONSOLIDATED FINANCIAL HIGHLIGHTS Stockholders' equity per share .................................... $ 14.46 $ 13.66 Stockholders' equity to total assets .............................. 13.92% 14.42% Weighted average rates at period end Loans and mortgage-backed securities* ........................... 6.48% 6.19% Investment securities** ......................................... 4.10 3.74 Combined loans, mortgage-backed securities and investment securities .................................... 6.38 5.91 Customer accounts ............................................... 4.05 2.94 Borrowings ...................................................... 4.55 4.51 Combined cost of customer accounts and borrowings ............... 4.20 3.37 Interest rate spread ............................................ 2.18 2.54
* Includes securitized assets subject to repurchase **Includes municipal bonds at tax equivalent yields and cash equivalents -3- 4 WASHINGTON FEDERAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Quarter Ended September 30, Year Ended September 30, --------------------------- ------------------------ 2006 2005 2006 2005 ------ ------ ------ ------ (In thousands, except per share data) INTEREST INCOME Loans ...................................................... $ 118,334 $ 97,611 $ 439,338 $ 369,023 Mortgage-backed securities ................................. 19,533 12,813 66,938 61,459 Investment securities and cash equivalents ................. 3,913 7,752 23,607 31,419 -------- -------- -------- -------- 141,780 118,176 529,883 461,901 INTEREST EXPENSE Customer accounts .......................................... 52,061 34,719 179,605 115,826 FHLB advances and other borrowings ......................... 26,342 21,584 93,756 79,434 -------- -------- -------- -------- 78,403 56,303 273,361 195,260 -------- -------- -------- -------- NET INTEREST INCOME ........................................ 63,377 61,873 256,522 266,641 Provision for (reversal of) loan losses .................... 350 - 535 (134) -------- -------- -------- -------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES ........ 63,027 61,873 255,987 266,775 OTHER INCOME Loss on securities, net .................................... - - - (3,534) Loss on extinguishment of debt ............................. - (2,194) - (2,194) Other ...................................................... 5,266 3,189 16,064 12,137 -------- -------- -------- -------- 5,266 995 16,064 6,409 OTHER EXPENSE Compensation and fringe benefits ........................... 9,459 8,436 36,574 34,197 Occupancy .................................................. 1,934 1,915 7,893 8,788 Other ...................................................... 2,203 3,258 9,112 9,334 -------- -------- -------- -------- 13,596 13,609 53,579 52,319 Gain on real estate acquired through foreclosure, net ...... 4 180 188 1,443 -------- -------- -------- -------- Income before income taxes ................................. 54,701 49,439 218,660 222,308 Income taxes ............................................... 19,422 15,050 75,558 76,419 -------- -------- -------- -------- NET INCOME ................................................. $ 35,279 $ 34,389 $143,102 $145,889 ======== ======== ======== ======== PER SHARE DATA Basic earnings ............................................. $ .40 $ .40 $ 1.64 $ 1.68 Diluted earnings ........................................... .40 .39 1.64 1.67 Cash dividends ............................................. .205 .20 .81 .78 Weighted average number of shares outstanding, including dilutive stock options ........................ 87,467,156 87,544,855 87,471,474 87,478,708 PERFORMANCE RATIOS Return on average assets ................................... 1.58% 1.71% 1.67% 1.90% Return on average stockholders' equity ..................... 11.43% 11.63% 11.77% 12.63% Net interest margin ........................................ 2.91% 3.18% 3.06% 3.57% %
-4- EX-99 3 oct19_x992.txt OCTOBER 19 2006 FORM 8-K EXHIBIT 99.2 1 Washington Federal, Inc. Fact Sheet September 30, 2006 ($ in Thousands) 3/06 QTR 6/06 QTR 9/06 QTR --------- -------- --------- Loan Loss Reserve - Total $ 24,810 $ 24,910 $ 24,993 - General 24,484 24,584 24,864 - Specific 326 326 129 Net Charge-offs (Recoveries) for the Qtr 12 - 267 Nonperforming Assets - Total 6,957 6,243 7,443 - REO 0 502 479 - Nonaccrual 6,957 5,741 6,964 Troubled Debt Restructuring 284 295 - Regulatory Capital Ratios - Tangible 1,166,993 13.65% 1,187,086 13.51% 1,208,363 13.40% - Core 1,166,993 13.65 1,187,086 13.51 1,208,363 13.40 - Risk Based 1,184,961 25.21 1,205,414 24.87 1,229,055 24.39 3/06 QTR 3/06 YTD 6/06 QTR 6/06 YTD 9/06 QTR 9/06 YTD -------- -------- -------- -------- --------- -------- Loan Originations - Total $ 561,884 $1,158,985 $ 630,376 $1,789,361 $ 612,986 $2,402,347 - Single-Family 221,636 519,329 280,121 799,450 304,549 1,103,999 - Multi-Family 37,965 70,757 35,466 106,223 29,274 135,497 - Land 108,073 199,219 134,101 333,320 125,217 458,537 - Construction 194,210 369,680 180,688 550,368 153,946 704,314 3/06 QTR 3/06 YTD 6/06 QTR 6/06 YTD 9/06 QTR 9/06 YTD -------- -------- ------ -------- -------- -------- Loan Servicing Fee Income $ 1,362 $ 3,084 $ 1,644 $ 4,728 $ 1,305 $ 6,033 Other Fee Income 220 441 236 677 337 1,014 -------- -------- -------- -------- -------- -------- Total Fee Income $ 1,582 $ 3,525 $ 1,880 $ 5,405 $ 1,642 $ 7,047 ======== ======== ======== ======== ======== ======== 3/06 QTR 3/06 YTD 6/06 QTR 6/06 YTD 9/06 QTR 9/06 YTD -------- -------- -------- -------- -------- -------- Average Loans $6,362,119 $6,252,897 $6,661,569 $6,389,121 $6,895,367 $6,516,723 Average Earning Assets 8,225,619 8,150,993 8,473,548 8,258,512 8,722,451 8,375,450 Average Assets 8,412,784 8,346,830 8,670,617 8,452,272 8,926,270 8,571,128 Average Paying Liabilities 7,056,452 6,972,530 7,329,227 7,091,429 7,558,803 7,209,233 Operating Expenses/Average Assets 0.64% 0.63% 0.64% 0.63% 0.61% 0.63% Efficiency Ratio 19.62 19.21 20.41 19.60 19.81 19.66 Amortization of Intangibles $ 256 $ 525 $ 244 $ 769 $ 231 $ 1,000 Repayments 3/06 QTR 3/06 YTD 6/06 QTR 6/06 YTD 9/06 QTR 9/06 YTD - ---------- --------- --------- --------- -------- -------- -------- Loans $ 402,335 $ 869,396 $ 431,941 $1,301,337 $ 391,851 $1,693,188 MBS 42,979 97,604 46,246 143,850 43,975 187,825 EOP Numbers 3/06 QTR 6/06 QTR 9/06 QTR - ----------- -------- -------- --------- Shares Issued and Outstanding 87,187,699 87,255,600 87,338,824 Share repurchase information 3/06 QTR 3/06 YTD 6/06 QTR 6/06 YTD 9/06 QTR 9/06 YTD - ---------------------------- -------- -------- -------- -------- -------- -------- Remaining shares auth. for repurchase 3,310,014 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 3/06 QTR 6/06 QTR 9/06 QTR - ------------------- --------- -------- -------- $ Amount $1,158,706 $1,162,734 $1,206,461 Per Share 13.29 13.33 13.81 # of Employees 751 761 765 Tax Rate - Going Forward 34.25% 34.25% 35.50% AS OF 3/31/06 AS OF 6/30/06 AS OF 9/30/06 ---------------- ---------------- ---------------- Loan Portfolio by Category AMOUNT % AMOUNT % AMOUNT % - -------------------------- ------ - ------ - ------ - Single-Family Residential $5,049,936 70.6% $ 5,234,829 70.5% $ 5,416,501 70.3% Multi-Family 515,310 7.2 519,567 7.0 527,718 6.9 Construction 1,077,605 15.1 1,121,661 15.1 1,140,376 14.8 Land 505,063 7.1 552,933 7.4 616,799 8.0 ---------- ---- ---------- ---- ---------- ---- Gross Loans (before ALL/Deferrals/LIP) $7,147,914 100% $ 7,428,990 100% $ 7,701,394 100% ========== ==== ========== ==== ========== ==== AS OF 3/31/06 AS OF 6/30/06 AS OF 9/30/06 ----------------------- ----------------------- ----------------------- Deposits by State AMOUNT % # AMOUNT % # AMOUNT % # - ----------------- ------ - - ------ - - ------ - - WA $2,382,201 46.1% 43 $2,423,204 45.9% 43 $2,442,956 45.9% 43 ID 532,071 10.3 16 541,506 10.2 16 540,221 10.2 16 OR 947,706 18.4 27 1,001,512 19.0 27 1,022,661 19.3 28 UT 302,450 5.9 10 312,931 5.9 10 320,605 6.0 10 NV 134,579 2.6 3 126,773 2.4 3 126,103 2.4 3 TX 62,984 1.2 3 59,970 1.1 3 52,451 1.0 3 AZ 798,391 15.5 20 818,063 15.5 20 806,729 15.2 20 ---------- ---- --- ---------- ---- --- ---------- ---- --- Total $5,160,382 100% 122 $5,283,959 100% 122 $5,311,726 100% 123 ========== ==== === ========== ==== === ========== ==== === 3/06 QTR 6/06 QTR 9/06 QTR ---------------- ---------------- ---------------- Deposits by Type AMOUNT % AMOUNT % AMOUNT % - ---------------- ------ - ------ - ------ - Checking (noninterest) $ 26,690 0.5% $ 30,195 0.6% $ 24,151 0.5% NOW (interest) 184,743 3.6 192,604 3.6 211,564 4.0 Savings (passbook/stmt) 176,654 3.4 167,128 3.2 161,098 3.0 Money Market 851,140 16.5 785,306 14.9 743,317 14.0 CD's 3,921,155 76.0 4,108,726 77.7 4,171,596 78.5 ---------- ---- ---------- ---- ---------- ---- Total $ 5,160,382 100% $5,283,959 100% $5,311,726 100% ========== ==== ========== ==== ========== ==== Deposits greater than $100,000 - EOP $1,426,877 $1,435,791 $1,449,095 Brokered Deposits $ - $ - $ - -2-
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