-----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, R8jr1RY2ZYIpUvtLSuyx7/OpkXS6kt9J5cqvQVvoRyGP35kczK6+XMbJqT1ZnK1N 5yHDMUHhaug9OBCyA4MHxw== 0000936528-07-000003.txt : 20070418 0000936528-07-000003.hdr.sgml : 20070418 20070417182958 ACCESSION NUMBER: 0000936528-07-000003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070416 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070418 DATE AS OF CHANGE: 20070417 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: 07771965 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 apr16_8k.txt APRIL 16 2007 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 16, 2007 (April 16, 2007) ------------------------------ 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 16, 2007, Washington Federal, Inc. (the "Company") announced by press release its earnings for the quarter ended March 31, 2007. A copy of the press release is attached hereto as Exhibit 99.1. A copy of the March 31, 2007 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, 2007 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 16, 2007. 99.2 Fact Sheet as of March 31, 2007. 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 17, 2007 By: /s/ Brent J. Beardall --------------------- Brent J. Beardall Senior Vice President and Chief Financial Officer EX-99 2 apr16_x991.txt APRIL 16 2007 FORM 8-K EXHIBIT 99.1 1 Washington Federal, Inc. 425 Pike Street Seattle, WA 98101 Contact: Cathy Cooper (206) 777-8246 Monday, April 16, 2007 FOR IMMEDIATE RELEASE Washington Federal Announces 2nd Quarter Earnings SEATTLE - Washington Federal, Inc. (Nasdaq: WFSL), parent company of Washington Federal Savings, today announced earnings of $33,483,000 or $.38 per diluted share for the quarter ended March 31, 2007, compared to $36,340,000 or $.42 per diluted share for the quarter ended March 31, 2006, a 7.9% decrease in earnings. For the six months ended March 31, 2007 earnings were $66,867,000 or $.76 per diluted share, compared to $72,486,000 or $.83 per diluted share for the six months ended March 31, 2006, a 7.8% decrease in earnings. The second fiscal quarter produced a return on assets of 1.41%, while return on equity amounted to 10.40% for the quarter. Nonperforming assets totaled $9.2 million or 0.09% of assets as of March 31,2007. Delinquent loans remain near historic lows with only 125 loans of 45,195 in the portfolio more than 30 days past due. Chief Executive Officer Roy M. Whitehead commented, "Lower earnings over the same quarter last year were the result of higher deposit costs, which have increased by 42% on a comparable basis. Relative to the first fiscal quarter earnings increased slightly, reflecting the nearly complete adjustment of deposit costs to current rates. As noted above, asset quality continues to be quite good. We have experienced no systemic deterioration in either the mortgage or the construction loan portfolio. It's also important to note that the company has virtually no exposure to subprime credit or so-called "exotic mortgages". Higher operating expenses during the period related primarily to acquisition- related costs and higher organic payroll expense". During the quarter, 250,000 shares of stock were repurchased as part of an ongoing share repurchase program. As of March 31, 2007, Washington Federal had an existing authorization to repurchase up to 3 million additional shares. On February 13, 2007, Washington Federal completed its acqusition of First Federal Banc of the Southwest, Inc. ("First Federal"). First Federal had $404 million in loans and $383 million in deposits as of the date of acquisition. As a result of the acquisition, Washington Federal added 180 employees and 13 branches, 11 in New Mexico and 2 in El Paso, Texas. On April 20, 2007, Washington Federal will pay a cash dividend of $.205 per share to common stockholders of record on April 6, 2007. This will be the Company's 97th consecutive quarterly cash dividend. Washington Federal Savings, with headquarters in Seattle, Washington, has 136 offices in eight western states. -1- 2 WASHINGTON FEDERAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
March 31, 2007 September 30, 2006 -------------- ------------------ (In thousands, except per share data) ASSETS Cash and cash equivalents ......................................... $ 209,500 $ 45,722 Available-for-sale securities, including mortgage-backed securities of $1,154,352........................................ 1,365,900 1,451,038 Held-to-maturity securities, including mortgage-backed securities of $139,802 ......................................... 147,921 184,928 Loans receivable, net ............................................. 7,773,994 7,078,443 Interest receivable ............................................... 44,462 42,304 Premises and equipment, net ....................................... 75,208 62,159 Real estate held for sale ......................................... 5,198 3,903 FHLB stock ........................................................ 133,981 129,453 Intangible assets, net ............................................ 108,392 56,259 Other assets ...................................................... 13,239 14,811 ----------- ----------- $ 9,877,795 $ 9,069,020 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Customer accounts Savings and demand accounts .................................... $ 5,956,366 $ 5,285,708 Repurchase agreements with customers ........................... 22,739 26,018 ----------- ----------- 5,979,105 5,311,726 FHLB advances ..................................................... 1,670,060 1,500,000 Other borrowings................................................... 800,167 870,000 Advance payments by borrowers for taxes and insurance ............. 23,499 29,505 Federal and state income taxes .................................... 46,467 39,667 Accrued expenses and other liabilities ............................ 63,667 55,402 ----------- ----------- 8,582,965 7,806,300 STOCKHOLDERS' EQUITY Common stock, $1.00 par value, 300,000,000 shares authorized; 104,661,324 and 104,467,245 shares issued; 87,326,643 and 87,338,824 shares outstanding .................................. 104,661 104,467 Paid-in capital ................................................... 1,248,691 1,246,025 Accumulated other comprehensive loss, net of taxes ................ (2,433) (5,975) Treasury stock, at cost; 17,334,681 and 17,128,421 shares.......... (210,260) (204,930) Retained earnings ................................................. 154,171 123,133 ----------- ----------- 1,294,830 1,262,720 ----------- ----------- $ 9,877,795 $ 9,069,020 =========== =========== CONSOLIDATED FINANCIAL HIGHLIGHTS Stockholders' equity per share .................................... $ 14.83 $ 14.46 Stockholders' equity to total assets .............................. 13.11% 13.92% Weighted average rates at period end Loans and mortgage-backed securities ............................ 6.56% 6.48% Investment securities* .......................................... 4.33 4.10 Combined loans, mortgage-backed securities and investment securities .................................... 6.44 6.38 Customer accounts ............................................... 4.24 4.05 Borrowings ...................................................... 4.49 4.55 Combined cost of customer accounts and borrowings ............... 4.31 4.20 Interest rate spread ............................................ 2.13 2.18
*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, ----------------------- -------------------------- 2007 2006 2007 2006 -------- -------- --------- --------- (In thousands, except per share data) INTEREST INCOME Loans ...................................................... $ 129,297 $106,274 $ 252,472 $ 208,679 Mortgage-backed securities ................................. 18,464 15,725 37,539 30,093 Investment securities and cash equivalents ................. 4,241 6,660 7,467 14,449 -------- -------- -------- -------- 152,002 128,659 297,478 253,221 INTEREST EXPENSE Customer accounts .......................................... 59,037 41,459 114,986 80,308 FHLB advances and other borrowings ......................... 27,772 21,724 54,910 43,374 -------- -------- -------- -------- 86,809 63,183 169,896 123,682 -------- -------- -------- -------- NET INTEREST INCOME ........................................ 65,193 65,476 127,582 129,539 Provision for loan losses .................................. 150 85 200 85 -------- -------- -------- -------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES ........ 65,043 65,391 127,382 129,454 OTHER INCOME Gain (loss) on securities, net ............................. 11 - 11 - Other ...................................................... 3,280 3,404 6,414 6,796 -------- -------- -------- -------- 3,291 3,404 6,425 6,796 OTHER EXPENSE Compensation and fringe benefits ........................... 10,879 9,040 20,414 17,275 Occupancy .................................................. 2,194 2,017 4,153 3,930 Other ...................................................... 2,984 2,458 5,441 4,981 -------- -------- -------- -------- 16,057 13,515 30,008 26,186 Gain (loss) on real estate acquired through foreclosure, net (79) 5 157 144 -------- -------- -------- -------- Income before income taxes ................................. 52,198 55,285 103,956 110,208 Income taxes ............................................... 18,715 18,945 37,089 37,722 -------- -------- -------- -------- NET INCOME ................................................. $ 33,483 $ 36,340 $ 66,867 $ 72,486 ======== ======== ======== ======== PER SHARE DATA Basic earnings ............................................. $ .38 $ .42 $ .77 $ .83 Diluted earnings ........................................... .38 .42 .76 .83 Cash dividends ............................................. .205 .200 .410 .400 Weighted average number of shares outstanding, including dilutive stock options ........................ 87,571,131 87,363,894 87,608,059 87,378,631 PERFORMANCE RATIOS Return on average assets ................................... 1.41% 1.73% 1.43% 1.74% Return on average stockholders' equity ..................... 10.40% 12.02% 10.45% 12.05% Net interest margin ........................................ 2.81% 3.18% 2.81% 3.18%
-3- EX-99 3 apr16_x992.txt APRIL 16 2007 FORM 8-K EXHIBIT 99.2 1 Washington Federal, Inc. Fact Sheet March 31, 2007 ($ in Thousands) 9/06 QTR 12/06 QTR 3/07 QTR --------- -------- --------- Loan Loss Reserve - Total $ 24,993 $ 25,021 $ 27,998 - General 24,864 24,868 27,888 - Specific 129 153 111 Net Charge-offs (Recoveries) for the Qtr 267 22 297 Nonperforming Assets - Total 7,660 7,257 10,049 - REO 479 952 1,758 - Nonaccrual 7,181 6,305 8,291 Troubled Debt Restructuring - - 263 Regulatory Capital Ratios - Tangible 1,208,363 13.40% 1,225,228 13.46% 1,193,931 12.22% - Core 1,208,363 13.40 1,225,228 13.46 1,193,931 12.22 - Risk Based 1,229,055 24.39 1,245,823 24.34 1,217,434 21.99 9/06 QTR 9/06 YTD 12/06 QTR 3/07 QTR 3/07 YTD -------- -------- -------- -------- --------- Loan Originations - Total $ 612,986 $2,402,347 $ 515,306 $ 547,179 $1,062,485 - Single-Family 304,549 1,103,999 232,257 265,769 498,026 - Multi-Family 29,274 135,497 25,984 17,451 43,435 - Land 125,217 458,537 101,919 125,024 226,943 - Construction 153,946 704,314 155,146 127,815 282,961 - Commercial RE - - - 4,767 4,767 - Other - - - 6,353 6,353 9/06 QTR 9/06 YTD 12/06 QTR 3/07 QTR 3/07 YTD -------- -------- -------- -------- --------- Loan Servicing Fee Income $ 1,305 $ 6,033 $ 1,329 $ 1,481 $ 2,810 Other Fee Income 337 1,014 212 469 681 -------- -------- -------- -------- -------- Total Fee Income $ 1,642 $ 7,047 $ 1,541 $ 1,950 $ 3,491 ======== ======== ======== ======== ======== 9/06 QTR 9/06 YTD 12/06 QTR 3/07 QTR 3/07 YTD -------- -------- -------- -------- --------- Average Loans $6,895,367 $6,516,723 $7,156,129 $7,528,123 $7,340,082 Average Earning Assets 8,722,451 8,375,450 8,875,346 9,269,181 9,070,100 Average Assets 8,926,270 8,571,128 9,094,860 9,518,689 9,329,053 Average Paying Liabilities 7,558,803 7,209,233 7,671,418 8,092,286 7,879,539 Operating Expenses/Average Assets 0.61% 0.63% 0.61% 0.67% 0.64% Efficiency Ratio 19.81 19.66 21.29 23.45 22.39 Amortization of Intangibles $ 231 $ 1,000 $ 219 $ 410 $ 629 Net Interest Margin 2.91% 3.06% 2.81% 2.81% 2.81% Repayments 9/06 QTR 9/06 YTD 12/06 QTR 3/07 QTR 3/07 YTD - ---------- -------- -------- -------- -------- --------- Loans $ 391,851 $1,693,188 $ 372,679 $ 442,408 $ 815,087 MBS 43,975 187,825 45,366 46,473 91,839 EOP Numbers 9/06 QTR 12/06 QTR 3/07 QTR - ----------- -------- -------- --------- Shares Issued and Outstanding 87,338,824 87,434,482 87,326,643 Share repurchase information 9/06 QTR 9/06 YTD 12/06 QTR 3/07 QTR 3/07 YTD - ---------------------------- -------- -------- -------- -------- --------- Remaining shares auth. for repurchase 3,310,014 3,310,014 3,310,014 3,060,014 3,060,014 Shares repurchased - - - 250,000 250,000 Average share repurchase price $ - $ - $ - $ 23.40 $ 23.40 -1- 2 Tangible Book Value 9/06 QTR 12/06 QTR 3/07 QTR - ------------------- -------- --------- --------- $ Amount $1,206,461 $1,232,549 $1,186,438 Per Share 13.81 13.99 13.59 # of Employees 765 749 911 Tax Rate - Going Forward 35.50% 35.50% 35.85% AS OF 9/30/06 AS OF 12/31/06 AS OF 3/31/07 ---------------- ---------------- ---------------- Loan Portfolio by Category AMOUNT % AMOUNT % AMOUNT % - -------------------------- ------ - ------ - ------ - Single-Family Residential $ 5,416,501 70.3% $ 5,490,565 70.0% $ 5,775,439 69.3% Multi-Family 527,719 6.9 534,688 6.8 545,138 6.5 Construction 1,090,361 14.1 1,106,406 14.1 1,113,549 13.3 Land 666,812 8.7 713,089 9.1 775,223 9.3 Commercial Real Estate - 0.0 - 0.0 103,513 1.2 Other - 0.0 - 0.0 35,393 0.4 ---------- ---- ---------- ---- ---------- ---- Gross Loans (before ALL/Deferrals/LIP) $ 7,701,393 100% $ 7,844,748 100% $ 8,348,255 100% ========== ==== ========== ==== ========== ==== AS OF 9/30/06 AS OF 12/31/06 AS OF 3/31/07 ----------------------- ----------------------- ---------------------- Deposits by State AMOUNT % # AMOUNT % # AMOUNT % # - ----------------- ------ - - ------ - - ------ - - WA $2,442,956 45.9% 43 $2,465,305 46.0% 43 $2,541,168 42.5% 43 ID 540,221 10.2 16 546,032 10.2 16 548,317 9.2 16 OR 1,022,661 19.3 28 1,031,381 19.2 28 1,082,264 18.1 27 UT 320,605 6.0 10 329,920 6.2 10 327,498 5.5 10 NV 126,103 2.4 3 127,918 2.4 3 130,234 2.2 3 TX 52,451 1.0 3 58,885 1.1 4 113,885 1.9 6 AZ 806,729 15.2 20 798,597 14.9 20 826,630 13.8 20 NM - 0.0 - - 0.0 - 409,109 6.8 11 ---------- ---- --- ---------- ---- --- ---------- ---- --- Total $5,311,726 100% 123 $5,358,038 100% 124 $5,979,105 100% 136 ========== ==== === ========== ==== === ========== ==== === 9/06 QTR 12/06 QTR 3/07 QTR ---------------- ---------------- ---------------- Deposits by Type AMOUNT % AMOUNT % AMOUNT % - ---------------- ------ - ------ - ------ - Checking (noninterest) $ 24,151 0.5% $ 31,526 0.6% $ 96,780 1.6% NOW (interest) 211,564 4.0 231,186 4.3 305,431 5.1 Savings (passbook/stmt) 161,098 3.0 158,284 3.0 212,603 3.6 Money Market 743,317 14.0 739,188 13.8 779,260 13.0 CD's 4,171,596 78.5 4,197,854 78.3 4,585,031 76.7 ---------- ---- ---------- ---- ---------- ---- Total $5,311,726 100% $5,358,038 100% $5,979,105 100% ========== ==== ========== ==== ========== ==== Deposits greater than $100,000 - EOP $1,449,095 $1,482,114 $1,730,002 Brokered Deposits $ - $ - $ - -2-
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