-----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, Tl84GGAtKOIIq8u30KCd/7fwsIGmjiM3SY6WHmBh+Ex/q9BsPB64MF/wOqc9fH9Z pn9Ftv4FPZWtWj7Br1Otfw== 0000936528-07-000004.txt : 20070718 0000936528-07-000004.hdr.sgml : 20070718 20070718164509 ACCESSION NUMBER: 0000936528-07-000004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070716 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070718 DATE AS OF CHANGE: 20070718 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: 07986873 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 jul16_8k.txt JULY 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) July 18, 2007 (July 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 July 16, 2007, Washington Federal, Inc. (the "Company") announced by press release its earnings for the quarter ended June 30, 2007. A copy of the press release is attached hereto as Exhibit 99.1. A copy of the June 30, 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 June 30, 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 July 16, 2007. 99.2 Fact Sheet as of June 30, 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: July 18, 2007 By: /s/ Brent J. Beardall --------------------- Brent J. Beardall Senior Vice President and Chief Financial Officer EX-99 2 jul16_x991.txt JULY 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, July 16, 2007 FOR IMMEDIATE RELEASE Washington Federal Announces 3rd Quarter Earnings SEATTLE - Washington Federal, Inc. (Nasdaq: WFSL), parent company of Washington Federal Savings, today announced earnings of $34,265,000 or $.39 per diluted share for the quarter ended June 30, 2007, compared to $35,337,000 or $.40 per diluted share for the quarter ended June 30, 2006, a 3.0% decrease in earnings. For the nine months ended June 30, 2007 earnings were $101,132,000 or $1.15 per diluted share, compared to $107,823,000 or $1.24 per diluted share for the nine months ended June 30, 2006, a 6.2% decrease in earnings. The third fiscal quarter produced a return on assets of 1.38%, while return on equity amounted to 10.55% for the quarter. Nonperforming assets totaled $12 million or 0.12% of assets as of June 30, 2007. Delinquent loans remain near historic lows with only 167 loans of 45,205 in the portfolio more than 30 days past due. Chief Executive Officer Roy M. Whitehead commented, "Earnings compared to the same period one year ago were reduced by higher operating expenses and taxes resulting from the acquisition of First Federal Bank of the Southwest. Relative to the second fiscal quarter though, earnings increased by $782 thousand, the second consecutive quarter of earnings growth. We are also encouraged to note that net interest income increased by $2.8 million over the same quarter last year, attributable in large part to the loans and deposits obtained through the aquisition. Although charge-offs (including specific reserves) were higher this quarter, asset quality continues to be quite good, despite the persistent weakness in the housing sector." On July 2, 2007, Washington Federal announced the signing of a definitive merger agreement with First Mutual Bancshares, Inc. ("First Mutual"). The merger agreement calls for the merger of First Mutual with and into the Company, followed by the merger of First Mutual Bank into the Company's wholly owned subsidiary, Washington Federal Savings, in a stock and cash transaction valued at approximately $189.8 million. As of March 31, 2007, First Mutual had $861 million in loans, $772 million in deposits and 12 branch locations located primarily on the eastside of Seattle. The merger is expected to close in the fourth calendar quarter of 2007, pending the receipt of all requisite regulatory approvals and the approval of First Mutual's shareholders. Management of Washington Federal expects the transaction to be accretive to earnings in 2008. During the quarter, 71,700 shares of stock were repurchased as part of an ongoing share repurchase program. As of June 30, 2007, Washington Federal had an existing authorization to repurchase up to approximately 3 million additional shares. On June 25, 2007, Washington Federal announced a 2.4% increase in the Company's quarterly cash dividend to 21 cents per share from 20.5 cents per share. The dividend will be payable July 20, 2007 to common stockholders of record on July 6, 2007. This will be the Company's 98th consecutive quarterly cash dividend and represents the 42nd increase in the cash dividend since 1982. 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)
June 30, 2007 September 30, 2006 -------------- ------------------ (In thousands, except per share data) ASSETS Cash and cash equivalents ......................................... $ 70,360 $ 45,722 Available-for-sale securities, including mortgage-backed securities of $1,179,483........................................ 1,421,570 1,451,038 Held-to-maturity securities, including mortgage-backed securities of $135,590 ......................................... 143,709 184,928 Loans receivable, net ............................................. 7,970,312 7,078,443 Interest receivable ............................................... 46,042 42,304 Premises and equipment, net ....................................... 74,420 62,159 Real estate held for sale ......................................... 6,200 3,903 FHLB stock ........................................................ 132,793 129,453 Intangible assets, net ............................................ 107,834 56,259 Other assets ...................................................... 12,885 14,811 ----------- ----------- $ 9,986,125 $ 9,069,020 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Customer accounts Savings and demand accounts .................................... $ 5,937,080 $ 5,285,708 Repurchase agreements with customers ........................... 17,876 26,018 ----------- ----------- 5,954,956 5,311,726 FHLB advances ..................................................... 1,817,704 1,500,000 Other borrowings................................................... 800,163 870,000 Advance payments by borrowers for taxes and insurance ............. 19,080 29,505 Federal and state income taxes .................................... 36,026 39,667 Accrued expenses and other liabilities ............................ 62,780 55,402 ----------- ----------- 8,690,709 7,806,300 STOCKHOLDERS' EQUITY Common stock, $1.00 par value, 300,000,000 shares authorized; 104,767,132 and 104,467,245 shares issued; 87,360,751 and 87,338,824 shares outstanding .................................. 104,767 104,467 Paid-in capital ................................................... 1,250,684 1,246,025 Accumulated other comprehensive loss, net of taxes ................ (18,222) (5,975) Treasury stock, at cost; 17,406,381 and 17,128,421 shares.......... (211,952) (204,930) Retained earnings ................................................. 170,139 123,133 ----------- ----------- 1,295,416 1,262,720 ----------- ----------- $ 9,986,125 $ 9,069,020 =========== =========== CONSOLIDATED FINANCIAL HIGHLIGHTS Stockholders' equity per share .................................... $ 14.83 $ 14.46 Stockholders' equity to total assets .............................. 12.97% 13.92% Weighted average rates at period end Loans and mortgage-backed securities ............................ 6.58% 6.48% Investment securities* .......................................... 4.45 4.10 Combined loans, mortgage-backed securities and investment securities .................................... 6.49 6.38 Customer accounts ............................................... 4.32 4.05 Borrowings ...................................................... 4.50 4.55 Combined cost of customer accounts and borrowings ............... 4.37 4.20 Interest rate spread ............................................ 2.12 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 June 30, Nine Months Ended June 30, ----------------------- -------------------------- 2007 2006 2007 2006 -------- -------- --------- --------- (In thousands, except per share data) INTEREST INCOME Loans ...................................................... $ 135,458 $112,325 $ 387,929 $ 321,004 Mortgage-backed securities ................................. 18,677 17,312 56,216 47,405 Investment securities and cash equivalents ................. 4,485 5,245 11,952 19,694 -------- -------- -------- -------- 158,620 134,882 456,097 388,103 INTEREST EXPENSE Customer accounts .......................................... 63,712 47,236 178,697 127,544 FHLB advances and other borrowings ......................... 28,489 24,040 83,399 67,415 -------- -------- -------- -------- 92,201 71,276 262,096 194,959 -------- -------- -------- -------- NET INTEREST INCOME ........................................ 66,419 63,606 194,001 193,144 Provision for loan losses .................................. 1,000 100 1,200 185 -------- -------- -------- -------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES ........ 65,419 63,506 192,801 192,959 OTHER INCOME Gain (loss) on securities, net ............................. - - 11 - Other ...................................................... 5,230 4,002 11,644 10,796 -------- -------- -------- -------- 5,230 4,002 11,655 10,796 OTHER EXPENSE Compensation and fringe benefits ........................... 11,577 9,841 31,991 27,115 Occupancy .................................................. 2,300 2,030 6,454 5,959 Other ...................................................... 3,340 1,925 8,779 6,906 -------- -------- -------- -------- 17,217 13,796 47,224 39,980 Gain (loss) on real estate acquired through foreclosure, net (17) 39 139 184 -------- -------- -------- -------- Income before income taxes ................................. 53,415 53,751 157,371 163,959 Income taxes ............................................... 19,150 18,414 56,239 56,136 -------- -------- -------- -------- NET INCOME ................................................. $ 34,265 $ 35,337 $101,132 $107,823 ======== ======== ======== ======== PER SHARE DATA Basic earnings ............................................. $ .39 $ .41 $ 1.16 $ 1.25 Diluted earnings ........................................... .39 .40 1.15 1.24 Cash dividends ............................................. .210 .205 .620 .605 Weighted average number of shares outstanding, including dilutive stock options ........................ 87,514,339 87,502,860 87,602,549 87,428,766 PERFORMANCE RATIOS Return on average assets ................................... 1.38% 1.63% 1.42% 1.70% Return on average stockholders' equity ..................... 10.55% 11.57% 10.49% 11.89% Net interest margin ........................................ 2.77% 3.00% 2.80% 3.12%
-3- EX-99 3 jul16_x992.txt JULY 16 2007 FORM 8-K EXHIBIT 99.2 1 Washington Federal, Inc. Fact Sheet June 30, 2007 ($ in Thousands) 12/06 QTR 3/07 QTR 6/07 QTR --------- -------- --------- Loan Loss Reserve - Total $ 25,021 $ 27,998 $ 28,817 - General 24,868 27,888 28,217 - Specific 153 111 601 Net Charge-offs (Recoveries) for the Qtr 22 297 187 Nonperforming Assets - Total 7,257 10,049 12,024 - REO 952 1,758 2,740 - Nonaccrual 6,305 8,291 9,284 Troubled Debt Restructuring - 263 256 12/06 QTR 3/07 QTR 3/07 YTD 6/07 QTR 6/07 YTD -------- -------- -------- -------- --------- Loan Originations - Total $ 515,306 $ 547,179 $1,062,485 $ 664,052 $1,726,537 - Single-Family 232,257 265,769 498,026 356,398 854,424 - Multi-Family 25,984 17,451 43,435 21,281 64,716 - Land 101,919 125,024 226,943 137,326 364,269 - Construction 155,146 127,815 282,961 140,633 423,594 - Commercial RE - 4,767 4,767 4,216 8,983 - Other - 6,353 6,353 4,198 10,551 12/06 QTR 3/07 QTR 3/07 YTD 6/07 QTR 6/07 YTD -------- -------- -------- -------- --------- Loan Servicing Fee Income $ 1,329 $ 1,481 $ 2,810 $ 1,644 $ 4,454 Other Fee Income 212 469 681 676 1,357 -------- -------- -------- -------- -------- Total Fee Income $ 1,541 $ 1,950 $ 3,491 $ 2,320 $ 5,811 ======== ======== ======== ======== ======== 12/06 QTR 3/07 QTR 3/07 YTD 6/07 QTR 6/07 YTD -------- -------- -------- -------- --------- Average Loans $7,156,129 $7,528,123 $7,340,082 $7,851,203 $7,510,455 Average Earning Assets 8,875,346 9,269,181 9,070,100 9,606,439 9,248,879 Average Assets 9,094,860 9,518,689 9,329,053 9,900,580 9,502,789 Average Paying Liabilities 7,671,418 8,092,286 7,879,539 8,447,141 8,068,740 Operating Expenses/Average Assets 0.61% 0.67% 0.64% 0.70% 0.66% Efficiency Ratio 21.29 23.45 22.39 24.03 22.96 Amortization of Intangibles $ 219 $ 410 $ 629 $ 601 $ 1,230 Net Interest Margin 2.81% 2.81% 2.81% 2.77% 2.80% Repayments 12/06 QTR 3/07 QTR 3/07 YTD 6/07 QTR 6/07 YTD - ---------- -------- -------- -------- -------- --------- Loans $ 372,679 $ 442,408 $ 815,087 $ 474,010 $1,289,097 MBS 45,366 46,473 91,839 47,846 139,685 EOP Numbers 12/06 QTR 3/07 QTR 6/07 QTR - ----------- -------- -------- --------- Shares Issued and Outstanding 87,434,482 87,326,643 87,360,751 Share repurchase information 12/06 QTR 3/07 QTR 3/07 YTD 6/07 QTR 6/07 YTD - ---------------------------- -------- -------- --------- -------- --------- Remaining shares auth. for repurchase 3,310,014 3,060,014 3,060,014 2,988,314 2,988,314 Shares repurchased - 250,000 250,000 71,700 321,700 Average share repurchase price $ - $ 23.40 $ 23.40 $ 23.59 $ 23.44 -1- 2 Tangible Book Value 12/06 QTR 3/07 QTR 6/07 QTR - ------------------- -------- --------- --------- $ Amount $1,223,549 $1,186,438 $1,187,583 Per Share 13.99 13.59 13.60 # of Employees 749 911 898 Tax Rate - Going Forward 35.50% 35.85% 35.85% AS OF 12/31/06 AS OF 3/31/07 AS OF 6/30/07 ---------------- ---------------- ---------------- Loan Portfolio by Category AMOUNT % AMOUNT % AMOUNT % - -------------------------- ------ - ------ - ------ - Single-Family Residential $5,490,565 70.0% $5,775,439 69.3% $5,896,528 69.1% Multi-Family 534,688 6.8 545,138 6.5 548,215 6.4 Construction 1,106,406 14.1 1,113,549 13.3 1,105,990 13.0 Land 713,089 9.1 775,223 9.3 847,419 9.9 Commercial Real Estate - 0.0 103,513 1.2 105,772 1.2 Other - 0.0 35,393 0.4 34,048 0.4 ---------- ---- ---------- ---- ---------- ---- Gross Loans (before ALL/Deferrals/LIP) $7,844,748 100% $8,348,255 100% $8,537,972 100% ========== ==== ========== ==== ========== ==== AS OF 12/31/06 AS OF 3/31/07 AS OF 6/30/07 ----------------------- ----------------------- ---------------------- Deposits by State AMOUNT % # AMOUNT % # AMOUNT % # - ----------------- ------ - - ------ - - ------ - - WA $2,465,305 46.0% 43 $2,541,168 42.5% 43 $2,530,068 42.5% 43 ID 546,032 10.2 16 548,317 9.2 16 542,591 9.1 16 OR 1,031,381 19.2 28 1,082,264 18.1 27 1,101,642 18.5 27 UT 329,920 6.2 10 327,498 5.5 10 318,237 5.3 10 NV 127,918 2.4 3 130,234 2.2 3 126,302 2.1 3 TX 58,885 1.1 4 113,885 1.9 6 95,652 1.6 6 AZ 798,597 14.9 20 826,630 13.8 20 821,602 13.8 20 NM - 0.0 - 409,109 6.8 11 418,862 7.0 11 ---------- ---- --- ---------- ---- --- ---------- ---- --- Total $5,358,038 100% 124 $5,979,105 100% 136 $5,954,956 100% 136 ========== ==== === ========== ==== === ========== ==== === 12/06 QTR 3/07 QTR 6/07 QTR ---------------- ---------------- ---------------- Deposits by Type AMOUNT % AMOUNT % AMOUNT % - ---------------- ------ - ------ - ------ - Checking (noninterest) $ 31,526 0.6% $ 96,780 1.6% $ 100,394 1.7% NOW (interest) 231,186 4.3 305,431 5.1 320,588 5.4 Savings (passbook/stmt) 158,284 3.0 212,603 3.6 205,839 3.5 Money Market 739,188 13.8 779,260 13.0 764,610 12.8 CD's 4,197,854 78.3 4,585,031 76.7 4,563,525 76.6 ---------- ---- ---------- ---- ---------- ---- Total $5,358,038 100% $5,979,105 100% $5,954,956 100% ========== ==== ========== ==== ========== ==== Deposits greater than $100,000 - EOP $1,482,114 $1,730,002 $1,548,867 Brokered Deposits $ - $ - $ - -2-
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