-----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, QaMk7q1/SdLxloJOMGt6U3wtB6uojVxkmcBg/B77lVYEOW4CbovzfV60DXBLFHgG X4aVdLBA0P7FZLuQ21YYaw== 0000936528-05-000007.txt : 20051025 0000936528-05-000007.hdr.sgml : 20051025 20051024185526 ACCESSION NUMBER: 0000936528-05-000007 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20051020 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20051025 DATE AS OF CHANGE: 20051024 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: 051152992 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 oct20_8k.txt OCT 20 2005 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 20, 2005 ------------------------------ 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 20, 2005, Washington Federal, Inc. (the "Company") announced by press release its earnings for the year ended September 30, 2005. A copy of the press release is attached hereto as Exhibit 99.1. A copy of the September 30, 2005 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, 2005 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 20, 2005. 99.2 Fact Sheet as of September 30, 2005. 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 24, 2005 By: /s/ Brent J. Beardall --------------------- Brent J. Beardall Senior Vice President and Chief Financial Officer EX-99 2 oct20_x991.txt OCT 20 2005 EXHIBIT 99.1 1 Washington Federal, Inc. 425 Pike Street Seattle, WA 98101 Contact: Cathy Cooper (206) 777-8246 Thursday, October 20, 2005 FOR IMMEDIATE RELEASE Washington Federal's Annual Earnings Increase 11% SEATTLE - Washington Federal, Inc. (Nasdaq: WFSL), parent company of Washington Federal Savings, today announced earnings of $145,889,000 or $1.67 per diluted share for the year ended September 30, 2005, compared to $131,868,000 or $1.51 per diluted share for the same period one year ago, an 11% increase. Earnings for the fourth fiscal quarter amounted to $34,389,000 or $.39 per diluted share compared to $31,493,000 or $.36 per diluted share for the same period one year ago, a 9% increase. Roy M. Whitehead, Chief Executive Officer, commented, "Fiscal 2005 was a very good year for Washington Federal. Record loan production and strong deposit inflows accompanied a healthy increase in earnings which was delivered despite a sharp increase in deposit costs. Overall housing activity remains solid throughout our lending territory and problem assets are negligible. Near-term challenges center primarily on what we expect will be continued pressure on funding costs and a tighter spread between short and long term interest rates." The year produced a return on assets of 1.90%, while return on equity amounted to 12.63%. The Company's efficiency ratio (operating expenses as a percentage of net revenue) of 19.16% remains among the best in the industry. Record loan production for the year ended September 30, 2005 totaled $2,436,000,000, an 18% increase over the previous record of $2,070,000,000 produced in fiscal 2004. Total assets of $8.2 billion at September 30, 2005, represents an increase of $1.1 billion or 15% above last year. During the quarter the Company recorded a $2.2 million charge for the early extinguishment of debt, a $1.5 million expense for a state business tax assessment and a $2.5 million reduction of federal income tax expense. As a result of a change in accounting rules, beginning in October 2005, the Company will record an estimated expense of $375,000 per quarter for unvested stock options outstanding as of September 30, 2005. On October 21, 2005, Washington Federal will pay a cash dividend of $.20 per share to common stockholders of record on October 7, 2005. This will be the company's 91st consecutive quarterly cash dividend. During the year the Company opened new branch locations in Klamath Falls, Oregon, Richardson, Texas and Las Vegas, Nevada. 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)
September 30, 2005 September 30, 2004 ------------------ ------------------ (In thousands, except per share data) ASSETS Cash and cash equivalents ......................................... $ 637,791 $ 508,361 Securities purchased under agreements to resell ................... - 200,000 Available-for-sale securities, including mortgage-backed securities of $899,920 ......................................... 1,077,856 899,525 Held-to-maturity securities, including mortgage-backed securities of $175,421 ......................................... 212,479 156,373 Securitized assets subject to repurchase, net ..................... 71,257 110,607 Loans receivable, net ............................................. 5,937,675 4,982,836 Interest receivable ............................................... 34,048 29,832 Premises and equipment, net ....................................... 63,287 63,049 Real estate held for sale ......................................... 5,631 8,630 FHLB stock ........................................................ 129,453 137,274 Intangible assets ................................................. 57,259 58,939 Other assets ...................................................... 7,714 13,779 ----------- ----------- $ 8,234,450 $ 7,169,205 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Customer accounts Savings and demand accounts .................................... $ 5,002,172 $ 4,569,245 Repurchase agreements with customers ........................... 29,333 41,113 ----------- ----------- 5,031,505 4,610,358 FHLB advances ..................................................... 1,230,000 1,200,000 Other borrowings................................................... 655,000 100,000 Advance payments by borrowers for taxes and insurance ............. 27,533 25,226 Federal and state income taxes .................................... 44,617 62,081 Accrued expenses and other liabilities ............................ 58,487 51,352 ----------- ----------- 7,047,142 6,049,017 STOCKHOLDERS' EQUITY Common stock, $1.00 par value, 300,000,000 shares authorized; 104,140,966 and 103,821,846 shares issued; 86,933,294 and 86,547,557 shares outstanding .................................. 104,141 94,383 Paid-in capital ................................................... 1,240,310 1,161,627 Accumulated other comprehensive income (loss), net of taxes ....... (704) 17,107 Treasury stock, at cost; 17,207,672 and 17,274,289 shares ......... (205,874) (206,666) Retained earnings ................................................. 49,435 53,737 ----------- ----------- 1,187,308 1,120,188 ----------- ----------- $ 8,234,450 $ 7,169,205 =========== =========== CONSOLIDATED FINANCIAL HIGHLIGHTS Stockholders' equity per share .................................... $ 13.66 $ 12.94 Stockholders' equity to total assets .............................. 14.42% 15.62% Weighted average rates at period end Loans and mortgage-backed securities* ........................... 6.19% 6.17% Investment securities** ......................................... 3.74 3.01 Combined loans, mortgage-backed securities and investment securities .................................... 5.91 5.62 Customer accounts ............................................... 2.94 1.96 Borrowings ...................................................... 4.51 4.96 Combined cost of customer accounts and borrowings ............... 3.37 2.62 Interest rate spread ............................................ 2.54 3.00
* 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 September 30, Year Ended September 30, -------------------------- -------------------------- 2005 2004 2005 2004 -------- -------- --------- --------- (In thousands, except per share data) INTEREST INCOME Loans and securitized assets subject to repurchase ......... $ 97,610 $83,534 $369,023 $330,967 Mortgage-backed securities ................................. 12,813 12,781 61,459 48,554 Investment securities and cash equivalents ................. 7,752 8,883 31,419 34,251 -------- -------- -------- -------- 118,175 105,198 461,901 413,772 INTEREST EXPENSE Customer accounts .......................................... 34,719 22,127 115,826 86,099 FHLB advances and other borrowings ......................... 21,584 19,124 79,434 83,654 -------- -------- -------- -------- 56,303 41,251 195,260 169,753 -------- -------- -------- -------- NET INTEREST INCOME ........................................ 61,872 63,947 266,641 244,019 Provision (reversal of reserve) for loan losses ............ - - (134) (231) -------- -------- -------- -------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES ........ 61,872 63,947 266,775 244,250 OTHER INCOME Loss on sale of securities, net ............................ - (171) (3,534) (890) Loss on extinguishment of debt ............................. (2,194) (5,191) (2,194) (5,191) Other ...................................................... 3,188 2,653 12,137 11,224 -------- -------- -------- -------- 994 (2,709) 6,409 5,143 OTHER EXPENSE Compensation and fringe benefits ........................... 8,436 8,118 34,197 31,084 Occupancy .................................................. 1,915 2,323 8,788 7,813 Other ...................................................... 3,255 2,154 9,334 7,367 -------- -------- -------- -------- 13,606 12,595 52,319 46,264 Gain on real estate acquired through foreclosure, net 180 28 1,443 583 -------- -------- -------- -------- Income before income taxes ................................. 49,440 48,671 222,308 203,712 Income taxes ............................................... 15,051 17,178 76,419 71,844 -------- -------- -------- -------- NET INCOME ................................................. $ 34,389 $ 31,493 $145,889 $131,868 ======== ======== ======== ======== PER SHARE DATA Basic earnings ............................................. $ .40 $ .36 $ 1.68 $ 1.53 Diluted earnings ........................................... .39 .36 1.67 1.51 Cash dividends ............................................. .20 .19 .78 .75 Weighted average number of shares outstanding, including dilutive stock options ........................ 87,544,855 87,246,302 87,478,708 87,130,787 PERFORMANCE RATIOS Return on average assets ................................... 1.71% 1.73% 1.90% 1.78% Return on average stockholders' equity ..................... 11.63% 11.37% 12.63% 12.12% Net interest margin ........................................ 3.18% 3.61% 3.57% 3.41%
-3- EX-99 3 oct20_x992.txt OCT 20 2005 EXHIBIT 99.2 1 Washington Federal, Inc. Fact Sheet September 30, 2005 ($ in Thousands) 3/05 QTR 6/05 QTR 9/05 QTR -------- -------- --------- Loan Loss Reserve - Total $ 24,994 $ 24,868 $ 24,756 - General 24,362 24,371 24,259 - Specific 631 498 497 Net Charge-offs (Recoveries) for the Qtr 14 (8) 112 Nonperforming Assets - Total 9,082 7,975 7,344 - REO 1,590 643 756 - Nonaccrual 7,492 7,332 6,588 Troubled Debt Restructuring 766 572 573 Capital Ratios - Tangible 1,084,950 14.42% 1,102,496 14.09% 1,123,485 13.75% - Core 1,084,950 14.42 1,102,496 14.09 1,123,485 13.75 - Risk Based 1,099,833 26.82 1,118,939 26.25 1,140,877 26.75 3/05 QTR 3/05 YTD 6/05 QTR 6/05 YTD 9/05 QTR 9/05 YTD -------- ---------- -------- -------- --------- -------- Loan Originations - Total $ 511,406 $ 1,075,377 $ 667,886 $1,743,263 $ 693,563 $2,436,826 - Single-Family 253,242 535,275 320,126 855,401 354,156 1,209,557 - Multi-Family 25,923 58,519 40,470 98,989 52,850 151,839 - Land 75,331 148,058 121,490 269,548 89,314 358,862 - Construction 156,910 333,525 185,800 519,325 197,243 716,568 3/05 QTR 3/05 YTD 6/05 QTR 6/05 YTD 9/05 QTR 9/05 YTD -------- ----------- -------- -------- -------- -------- Loan Servicing Fee Income $ 1,694 $ 3,266 $ 1,651 $ 4,917 $ 1,910 $ 6,827 Other Fee Income 237 468 237 705 341 1,046 -------- ----------- -------- -------- -------- -------- Total Fee Income $ 1,931 $ 3,734 $ 1,888 $ 5,622 $ 2,251 $ 7,873 ======== ========== ======== ======== ======== ======== 3/05 QTR 3/05 YTD 6/05 QTR 6/05 YTD 9/05 QTR 9/05 YTD -------- ----------- -------- -------- -------- -------- Average Loans $5,422,200 $ 5,311,797 $5,643,508 $5,422,368 $5,856,081 $5,531,687 Average Earning Assets 7,380,416 7,261,943 7,571,048 7,364,978 7,794,351 7,473,204 Average Assets 7,586,058 7,478,002 7,777,389 7,586,711 8,031,363 7,697,085 Average Paying Liabilities 6,247,571 6,158,176 6,442,057 6,252,803 6,642,604 6,351,054 Operating Expenses/Average Assets 0.74% 0.69% 0.66% 0.68% 0.68% 0.68% Efficiency Ratio 18.16 17.91 19.55 18.42 21.64 19.16 Amortization of Intangibles $ 306 $ 624 $ 293 $ 917 $ 281 $ 1,198 Repayments 3/05 QTR 3/05 YTD 6/05 QTR 6/05 YTD 9/05 QTR 9/05 YTD - ---------- -------- ---------- -------- -------- -------- -------- Loans $ 381,643 $ 781,785 $ 475,893 $1,257,678 $ 510,214 $1,767,892 MBS 46,100 101,490 53,199 154,689 67,009 221,698 EOP Numbers 3/05 QTR 6/05 QTR 9/05 QTR - ----------- -------- -------- --------- Shares Issued and Outstanding 86,707,298 86,777,363 86,933,294 Share repurchase information 3/05 QTR 3/05 YTD 6/05 QTR 6/05 YTD 9/05 QTR 9/05 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 3/05 QTR 6/05 QTR 9/05 QTR - ------------------- -------- -------- --------- $ Amount $1,091,196 $1,116,156 $1,130,049 Per Share 12.58 12.86 13.00 # of Employees 756 770 749 Tax Rate - Going Forward 35.50% 35.50% 35.50% 3/05 QTR 6/05 QTR 9/05 QTR ---------------- ---------------- ---------------- Loan Portfolio by Category AMOUNT % AMOUNT % AMOUNT % - -------------------------- ------ - ------ - ------ - Single-Family Residential $4,248,491 70.6% $4,451,132 70.2% $4,630,411 70.2% Multi-Family 470,635 7.8 481,184 7.6 501,823 7.6 Construction 931,861 15.5 978,411 15.5 1,021,419 15.5 Land 365,360 6.1 421,966 6.7 438,621 6.7 ---------- ---- ---------- ---- ---------- ---- Gross Loans (before ALL/Deferrals/LIP) $6,016,347 100% $6,332,693 100% $6,592,274 100% ========== ==== ========== ==== ========== ==== 3/05 QTR 6/05 QTR 9/05 QTR ----------------------- ----------------------- ----------------------- Deposits by State AMOUNT % # AMOUNT % # AMOUNT % # - ----------------- ------ - - ------ - - ------ - - WA $2,252,898 47.8% 43 $2,255,177 46.8% 43 $2,350,615 46.7% 43 ID 500,663 10.6 16 504,357 10.5 16 519,962 10.3 16 OR 836,936 17.7 27 862,457 17.9 27 911,691 18.1 27 UT 287,686 6.1 10 291,300 6.1 10 299,609 6.0 10 NV 63,361 1.3 3 103,619 2.2 3 127,514 2.5 3 TX 35,412 0.7 2 36,162 0.8 2 49,420 1.0 3 AZ 745,633 15.8 20 755,613 15.7 20 772,694 15.4 20 ---------- ---- --- ---------- ---- --- ---------- ---- --- Total $4,722,589 100% 121 $4,808,685 100% 121 $5,031,505 100% 122 ========== ==== === ========== ==== === ========== ==== === 3/05 QTR 6/05 QTR 9/05 QTR ---------------- ---------------- ---------------- Deposits by Type AMOUNT % AMOUNT % AMOUNT % - ---------------- ------ - ------ - ------ - Checking (noninterest) $ 12,560 0.3% $ 14,611 0.3% $ 34,013 0.7% NOW (interest) 181,300 3.8 176,537 3.7 171,469 3.4 Savings (passbook/stmt) 210,080 4.4 200,176 4.2 191,919 3.8 Money Market 942,680 20.0 894,682 18.6 871,945 17.3 C.D.'s 3,375,969 71.5 3,522,679 73.2 3,762,159 74.8 ---------- ---- ---------- ---- ---------- ---- Total $4,722,589 100% $ 4,808,685 100% $5,031,505 100% ========== ==== =========== ==== ========== ==== Deposits greater than $100,000 - EOP $1,240,065 $1,268,965 $1,365,486 Brokered Deposits $ - $ - $ - -2-
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