-----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, UBUWLoU+Q7msinzVomjNf0rjuNftcAUZ5tUG9cvVwJFAJjolOX8Lr0DwzK+yLwCs 3wVC9WBlyIqPHfpUQQpw4g== 0000936528-07-000005.txt : 20071022 0000936528-07-000005.hdr.sgml : 20071022 20071022152440 ACCESSION NUMBER: 0000936528-07-000005 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20071018 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20071022 DATE AS OF CHANGE: 20071022 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: 071183098 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 oct18_8k.txt OCTOBER 18 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) October 22, 2007 (October 18, 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 October 18, 2007, Washington Federal, Inc. (the "Company") announced by press release its earnings for the year ended September 30, 2007. A copy of the press release is attached hereto as Exhibit 99.1. A copy of the September 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 September 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 October 18, 2007. 99.2 Fact Sheet as of September 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: October 22, 2007 By: /s/ Brent J. Beardall --------------------- Brent J. Beardall Senior Vice President and Chief Financial Officer EX-99 2 oct18_x991.txt OCTOBER 18 2007 FORM 8-K EXHIBIT 99.1 1 Washington Federal, Inc. 425 Pike Street Seattle, WA 98101 Contact: Cathy Cooper (206) 777-8246 Thursday, October 18, 2007 FOR IMMEDIATE RELEASE Washington Federal Reports Fiscal Year 2007 Earnings of $135 Million SEATTLE - Washington Federal, Inc. (Nasdaq: WFSL), parent company of Washington Federal Savings, today announced earnings of $135,017,000 or $1.54 per diluted share for the year ended September 30, 2007, compared to $143,102,000 or $1.64 per diluted share for the same period one year ago, a 6.0% per share decrease. Earnings for the fourth fiscal quarter amounted to $33,885,000 or $.39 per diluted share compared to $35,279,000 or $.40 per diluted share for the same period one year ago, a 3% per share decrease. Roy M. Whitehead, Chairman, President & CEO, commented, "We are very pleased with the financial performance of the company last year in light of the national housing slowdown and a difficult interest rate environment. Our portfolio lending model and conservative underwriting have enabled us to avoid the recent problems suffered by many in the mortgage industry. Last month's reduction in the overnight rate by the Federal Reserve also causes us to be hopeful that lower deposit costs and an improved net interest spread will be experienced in the near-term. At the same time, while overall asset quality continues to be good, non-performing assets and loan losses will undoubtedly increase before the cycle is ended, as we have expected for several quarters." On July 2, 2007, the Company announced the signing of a definitive merger agreement to acquire First Mutual Bancshares ("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. First Mutual, headquartered in Bellevue, Washington with 12 branches in the greater Seattle/Bellevue area, had total assets of $1.03 billion, total deposits of $759.8 million and total stockholders' equity of $73.7 million as of June 30, 2007. On October 11, 2007 First Mutual's shareholders voted to approve the transaction. The transaction is expected to close in the fourth calendar quarter of 2007, pending the receipt of all requisite regulatory approvals. Our period end net interest spread decreased during the quarter from 2.12% at June 30, 2007 to 2.05% at September 30, 2007. The decrease resulted primarily from the refinancing of $200 million of long-term debt called during the quarter that carried an average rate of 3.40%. Currently our ratio of non-performing assets as a percentage of total assets is .15%, compared to .12% at June 30, 2007 and .08% at September 30, 2006. The company's average ratio of non-performing assets to total assets over the last ten years is .35%. The year produced a return on assets of 1.40%, while return on equity amounted to 10.46%. The company's efficiency ratio (operating expenses as a percentage of net revenue) of 23.56% for the year remains among the best in the industry, although it increased from 19.66% last year. Higher operating expenses are attributed to costs associated with the purchase of First Federal Bank of the Southwest, the pending acquisition of First Mutual Bank, higher personnel expenses, including benefits, and additional management and systems installed to support an increase in regulatory burden and the growth of the Company. Although expenses as a percentage of assets and revenues are likely to increase further in the short-term due primarily to the pending acquisition of First Mutual Bank, management believes that efficiency will improve over time as the acquired institutions are fully integrated and recent investments in people and systems are leveraged through growth of the balance sheet. Total assets of $10.285 billion at September 30, 2007, represents an increase of $1.216 billion or 13% above last year. Total net loans outstanding increased $1.110 billion to $8.188 billion as of September 30, 2007, a 16% increase over last year. Stockholders' equity increased $55 million or 4% to $1.318 billion as of September 30, 2007. On October 19, 2007, Washington Federal will pay a cash dividend of $.21 per share to common stockholders of record on October 5, 2006. This will be the company's 99th consecutive quarterly cash dividend. Washington Federal Savings, with headquarters in Seattle, Washington, has 135 offices in eight western states. -1- 2 WASHINGTON FEDERAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
September 30, 2007 September 30, 2006 ------------------ ------------------ (In thousands, except per share data) ASSETS Cash and cash equivalents ......................................... $ 61,378 $ 45,722 Available-for-sale securities, including mortgage-backed securities of $1,283,403 ....................................... 1,515,688 1,451,038 Held-to-maturity securities, including mortgage-backed securities of $130,266 ......................................... 138,373 184,928 Loans receivable, net ............................................. 8,188,278 7,078,443 Interest receivable ............................................... 49,611 42,304 Premises and equipment, net ....................................... 74,807 62,159 Real estate held for sale ......................................... 4,873 3,903 FHLB stock ........................................................ 132,397 129,453 Intangible assets, net ............................................ 107,245 56,259 Other assets ...................................................... 12,767 14,811 ----------- ----------- $10,285,417 $ 9,069,020 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Customer accounts Savings and demand accounts .................................... $ 5,979,049 $ 5,285,708 Repurchase agreements with customers ........................... 17,736 26,018 ----------- ----------- 5,996,785 5,311,726 FHLB advances ..................................................... 1,760,979 1,500,000 Other borrowings................................................... 1,075,116 870,000 Advance payments by borrowers for taxes and insurance ............. 31,824 29,505 Federal and state income taxes .................................... 38,032 39,667 Accrued expenses and other liabilities ............................ 64,554 55,402 ----------- ----------- 8,967,290 7,806,300 STOCKHOLDERS' EQUITY Common stock, $1.00 par value, 300,000,000 shares authorized; 104,921,450 and 104,467,245 shares issued; 87,441,750 and 87,338,824 shares outstanding .................................. 104,921 104,467 Paid-in capital ................................................... 1,254,490 1,246,025 Accumulated other comprehensive loss, net of taxes ................ (13,033) (5,975) Treasury stock, at cost; 17,479,700 and 17,128,421 shares.......... (213,934) (204,930) Retained earnings ................................................. 185,683 123,133 ----------- ----------- 1,318,127 1,262,720 ----------- ----------- $10,285,417 $ 9,069,020 =========== =========== CONSOLIDATED FINANCIAL HIGHLIGHTS Stockholders' equity per share .................................... $ 15.07 $ 14.46 Stockholders' equity to total assets .............................. 12.82% 13.92% Weighted average rates at period end Loans and mortgage-backed securities ............................ 6.57% 6.48% Investment securities* .......................................... 4.61 4.10 Combined loans, mortgage-backed securities and investment securities .................................... 6.50 6.38 Customer accounts ............................................... 4.36 4.05 Borrowings ...................................................... 4.64 4.55 Combined cost of customer accounts and borrowings ............... 4.45 4.20 Interest rate spread ............................................ 2.05 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 September 30, Year Ended September 30, ----------------------- -------------------------- 2007 2006 2007 2006 -------- -------- --------- --------- (In thousands, except per share data) INTEREST INCOME Loans ...................................................... $ 138,994 $118,334 $ 526,923 $ 439,338 Mortgage-backed securities ................................. 19,262 19,533 75,478 66,938 Investment securities and cash equivalents ................. 4,328 3,913 16,281 23,607 -------- -------- -------- -------- 162,584 141,780 618,682 529,883 INTEREST EXPENSE Customer accounts .......................................... 65,139 52,060 243,837 179,605 FHLB advances and other borrowings ......................... 31,266 26,342 114,664 93,756 -------- -------- -------- -------- 96,405 78,402 358,501 273,361 -------- -------- -------- -------- NET INTEREST INCOME ........................................ 66,179 63,378 260,181 256,522 Provision for loan losses .................................. 350 350 1,550 535 -------- -------- -------- -------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES ........ 65,829 63,028 258,631 255,987 OTHER INCOME Gain (loss) on securities, net ............................. - - 11 - Other ...................................................... 3,586 5,268 15,230 16,064 -------- -------- -------- -------- 3,586 5,268 15,241 16,064 OTHER EXPENSE Compensation and fringe benefits ........................... 11,576 9,459 43,566 36,574 Occupancy .................................................. 2,266 1,934 8,720 7,893 Other ...................................................... 3,820 2,206 12,602 9,112 -------- -------- -------- -------- 17,662 13,599 64,888 53,579 Gain (loss) on real estate acquired through foreclosure, net 188 4 328 188 -------- -------- -------- -------- Income before income taxes ................................. 51,941 54,701 209,312 218,660 Income taxes ............................................... 18,056 19,422 74,295 75,558 -------- -------- -------- -------- NET INCOME ................................................. $ 33,885 $ 35,279 $135,017 $143,102 ======== ======== ======== ======== PER SHARE DATA Basic earnings ............................................. $ .39 $ .40 $ 1.55 $ 1.64 Diluted earnings ........................................... .39 .40 1.54 1.64 Cash dividends ............................................. .210 .205 .830 .810 Weighted average number of shares outstanding, including dilutive stock options ........................ 87,559,533 87,467,156 87,630,688 87,471,474 PERFORMANCE RATIOS Return on average assets ................................... 1.34% 1.58% 1.40% 1.67% Return on average stockholders' equity ..................... 10.39% 11.43% 10.46% 11.77% Net interest margin ........................................ 2.70% 2.91% 2.77% 3.06%
-3- EX-99 3 oct18_x992.txt OCTOBER 18 2007 FORM 8-K EXHIBIT 99.2 1 Washington Federal, Inc. Fact Sheet September 30, 2007 ($ in Thousands) 3/07 QTR 6/07 QTR 9/07 QTR --------- -------- --------- Loan Loss Reserve - Total $ 27,998 $ 28,817 $ 28,520 - General 27,888 28,217 27,928 - Specific 111 601 593 Net Charge-offs (Recoveries) for the Qtr 297 187 647 Nonperforming Assets - Total 10,049 12,024 15,931 - REO 1,758 2,740 1,413 - Nonaccrual 8,291 9,284 14,518 Troubled Debt Restructuring 263 256 250 Regulatory Capital Ratios - Tangible 1,193,931 12.22% 1,211,181 12.23% 1,229,005 12.06% - Core 1,193,931 12.22 1,211,181 12.23 1,229,005 12.06 - Risk Based 1,217,434 21.99 1,233,276 21.71 1,217,434 21.44 3/07 QTR 3/07 YTD 6/07 QTR 6/07 YTD 9/07 QTR 9/07 YTD -------- --------- -------- -------- -------- --------- Loan Originations - Total $ 547,179 $1,062,485 $ 664,052 $1,726,537 $ 575,408 $2,301,945 - Single-Family 265,769 498,026 356,398 854,424 315,498 1,169,922 - Multi-Family 17,451 43,435 21,281 64,716 33,737 98,453 - Land 125,024 226,943 137,326 364,269 121,823 486,092 - Construction 127,815 282,961 140,633 423,594 94,429 518,023 - Commercial RE 4,767 4,767 4,216 8,983 7,283 16,266 - Other 6,353 6,353 4,198 10,551 2,638 13,189 3/07 QTR 3/07 YTD 6/07 QTR 6/07 YTD 9/07 QTR 9/07 YTD -------- -------- -------- -------- -------- --------- Loan Servicing Fee Income $ 1,481 $ 2,810 $ 1,644 $ 4,454 $ 1,697 $ 6,150 Other Fee Income 469 681 676 1,357 733 2,090 -------- -------- -------- -------- -------- -------- Total Fee Income $ 1,950 $ 3,491 $ 2,320 $ 5,811 $ 2,430 $ 8,240 ======== ======== ======== ======== ======== ======== 3/07 QTR 3/07 YTD 6/07 QTR 6/07 YTD 9/07 QTR 9/07 YTD -------- -------- -------- -------- -------- --------- Average Loans $7,528,123 $7,340,082 $7,851,203 $7,510,455 $8,003,878 $7,634,825 Average Earning Assets 9,269,181 9,070,100 9,606,439 9,248,879 9,790,997 9,385,523 Average Assets 9,518,689 9,329,053 9,900,580 9,502,789 10,127,481 9,657,822 Average Paying Liabilities 8,092,286 7,879,539 8,447,141 8,068,740 8,656,288 8,216,834 Operating Expenses/Average Assets 0.67% 0.64% 0.70% 0.66% 0.70% 0.67% Efficiency Ratio 23.45 22.39 24.03 22.96 25.32 23.56 Amortization of Intangibles $ 410 $ 629 $ 601 $ 1,230 $ 589 $ 1,819 Net Interest Margin 2.81% 2.81% 2.77% 2.80% 2.70% 2.77% Repayments 3/07 QTR 3/07 YTD 6/07 QTR 6/07 YTD 9/07 QTR 9/07 YTD - ---------- -------- -------- -------- -------- -------- --------- Loans $ 442,408 $ 815,087 $ 474,010 $ 1,289,097 $ 415,242 $1,704,339 MBS 46,473 91,839 47,846 139,685 43,978 183,663 EOP Numbers 3/07 QTR 6/07 QTR 9/07 QTR - ----------- -------- -------- --------- Shares Issued and Outstanding 87,326,643 87,360,751 87,441,750 Share repurchase information 3/07 QTR 3/07 YTD 6/07 QTR 6/07 YTD 9/07 QTR 9/07 YTD - ---------------------------- -------- -------- -------- --------- -------- --------- Remaining shares auth. for repurchase 3,060,014 3,060,014 2,988,314 2,988,314 2,888,314 2,888,314 Shares repurchased 250,000 250,000 71,700 321,700 100,000 421,700 Average share repurchase price $ 23.40 $ 23.40 $ 23.59 $ 23.44 $ 23.07 $ 23.35 -1- 2 Tangible Book Value 3/07 QTR 6/07 QTR 9/07 QTR - ------------------- -------- --------- --------- $ Amount $1,186,438 $1,187,583 $1,210,882 Per Share 13.59 13.59 13.85 # of Employees 911 898 886 Tax Rate - Going Forward 35.85% 35.85% 35.85% AS OF 3/31/07 AS OF 6/30/07 AS OF 9/30/07 ---------------- ---------------- ---------------- Loan Portfolio by Category AMOUNT % AMOUNT % AMOUNT % - -------------------------- ------ - ------ - ------ - Single-Family Residential $5,775,439 69.3% $5,896,528 69.1% $6,067,406 69.8% Multi-Family 545,138 6.5 548,215 6.4 558,873 6.4 Construction 1,113,549 13.3 1,105,990 13.0 1,044,637 12.0 Land 775,223 9.3 847,419 9.9 894,934 10.3 Commercial Real Estate 103,513 1.2 105,772 1.2 103,567 1.2 Other 35,393 0.4 34,048 0.4 30,260 0.3 ---------- ---- ---------- ---- ---------- ---- Gross Loans (before ALL/Deferrals/LIP) $8,348,255 100% $8,537,972 100% 8,699,677 100% ========== ==== ========== ==== ========== ==== AS OF 3/31/07 AS OF 6/30/07 AS OF 9/30/07 ----------------------- --------------------- ---------------------- Deposits by State AMOUNT % # AMOUNT % # AMOUNT % # - ----------------- ------ - - ------ - - ------ - - WA $2,541,168 42.5% 43 $2,530,068 42.5% 43 $2,552,796 42.6% 42 ID 548,317 9.2 16 542,591 9.1 16 562,284 9.4 16 OR 1,082,264 18.1 27 1,101,642 18.5 27 1,132,121 18.9 27 UT 327,498 5.5 10 318,237 5.3 10 322,732 5.4 10 NV 130,234 2.2 3 126,302 2.1 3 117,945 2.0 3 TX 113,885 1.9 6 95,652 1.6 6 85,132 1.4 6 AZ 826,630 13.8 20 821,602 13.8 20 809,514 13.5 20 NM 409,109 6.8 11 418,862 7.0 11 414,261 6.9 11 ---------- ---- --- ---------- ---- --- ---------- ---- --- Total 5,979,105 100% 136 $5,954,956 100% 136 5,996,785 100% 135 ========== ==== === ========== ==== === ========== ==== === 3/07 QTR 6/07 QTR 9/07 QTR ---------------- ---------------- ---------------- Deposits by Type AMOUNT % AMOUNT % AMOUNT % - ---------------- ------ - ------ - ------ - Checking (noninterest) $ 96,780 1.6% $ 100,394 1.7% $ 88,732 1.5% NOW (interest) 305,431 5.1 320,588 5.4 320,362 5.3 Savings (passbook/stmt) 212,603 3.6 205,839 3.5 198,876 3.3 Money Market 779,260 13.0 764,610 12.8 739,554 12.3 CD's 4,585,031 76.7 4,563,525 76.6 4,649,261 77.6 ---------- ---- ---------- ---- ---------- ---- Total $5,979,105 100% $5,954,956 100% $5,996,785 100% ========== ==== ========== ==== ========== ==== Deposits greater than $100,000 - EOP $1,730,002 $1,548,867 $1,579,462 Brokered Deposits $ - $ - $ - -2-
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