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Washington Federal, Inc.
425 Pike Street
Seattle, WA 98101
Contact: Cathy Cooper
(206) 777-8246
Thursday, January 13, 2005
FOR IMMEDIATE RELEASE
Washington Federal's Earnings Per Share Increase 12%
SEATTLE - Washington Federal, Inc. (Nasdaq: WFSL), parent company of
Washington Federal Savings, today announced earnings of $36,259,000 or
$.46 per diluted share for the quarter ended December 31, 2004, compared
to $32,823,000 or $.41 per diluted share for the same period one year
ago, a 12.2% per share increase.
Washington Federal's total assets increased to $7,543,302,000 as of
December 31, 2004, a 5.2% increase from September 30,2004. The Company's
efficiency ratio improved to 17.6% for the quarter, compared to 18.1%
for the same quarter last year. The first fiscal quarter produced a return
on assets of 1.96%, while return on equity amounted to 12.84%.
Chief Executive Officer Roy M. Whitehead commented, "Earnings benefited
from an increase in our net interest spread to 2.85% at December 31, 2004
from 2.43% at December 31, 2003, as a result of a shift in our asset mix
from short-term assets to longer-term higher yielding assets. Additionally,
we borrowed $300 million in long-term debt during the quarter to protect
against rising rates. We continue to focus our attention on providing
superior long-term rewards to our customers, stockholders and employees."
On January 14,2005, Washington Federal will pay a cash dividend of $.21
per share to common stockholders of record on December 31, 2004. This will
be the Company's 88th consecutive quarterly cash dividend. For the calendar
year ended December 31, 2004, an investment in Washington Federal common
stock produced a total return of 7.1%.
The Company's Annual Meeting of Stockholders will be held at 2 p.m. on
January 19, 2005, at the Seattle Westin Hotel.
Washington Federal Savings, with headquarters in Seattle, Washington,
has 120 offices in eight western states.
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WASHINGTON FEDERAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
December 31, 2004 September 30, 2004
----------------- ------------------
(In thousands, except per share data)
ASSETS
Cash and cash equivalents.......................................... $ 521,060 $ 508,361
Securities purchased under agreements to resell.................... 200,000 200,000
Available-for-sale securities, including mortgage-backed
securities of $705,755.......................................... 1,071,369 899,525
Held-to-maturity securities, including mortgage-backed
securities of $113,039.......................................... 150,099 156,373
Securitized assets subject to repurchase, net...................... 98,537 110,607
Loans receivable, net.............................................. 5,250,975 4,982,836
Interest receivable................................................ 34,217 29,832
Premises and equipment, net........................................ 62,975 63,049
Real estate held for sale.......................................... 6,948 8,630
FHLB stock......................................................... 81,066 137,274
Intangible assets.................................................. 58,621 58,939
Other assets....................................................... 7,435 13,779
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$ 7,543,302 $ 7,169,205
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Customer accounts
Savings and demand accounts..................................... $ 4,626,855 $ 4,569,245
Repurchase agreements with customers............................ 37,476 41,113
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4,664,331 4,610,358
FHLB advances...................................................... 1,200,000 1,200,000
Other borrowings................................................... 400,000 100,000
Advance payments by borrowers for taxes and insurance.............. 11,029 25,226
Federal and state income taxes..................................... 79,389 62,081
Accrued expenses and other liabilities............................. 52,446 51,352
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6,407,195 6,049,017
STOCKHOLDERS' EQUITY
Common stock, $1.00 par value, 100,000,000 shares authorized;
94,446,723 and 94,383,496 shares issued; 78,742,824
and 78,679,597 shares outstanding............................... 94,457 94,383
Paid-in capital.................................................... 1,162,714 1,161,627
Accumulated other comprehensive income, net of taxes............... 12,330 17,107
Treasury stock, at cost; 15,703,899 shares......................... (206,666) (206,666)
Retained earnings.................................................. 73,272 53,737
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1,136,107 1,120,188
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$ 7,543,302 $ 7,169,205
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CONSOLIDATED FINANCIAL HIGHLIGHTS
Stockholders' equity per share..................................... $ 14.43 $ 14.24
Stockholders' equity to total assets............................... 15.06% 15.62%
Weighted average rates at period end
Loans and mortgage-backed securities*............................ 6.16% 6.17%
Investment securities**.......................................... 2.86 3.01
Combined loans, mortgage-backed securities
and investment securities..................................... 5.63 5.62
Customer accounts................................................ 2.11 1.96
Borrowings....................................................... 4.74 4.96
Combined cost of customer accounts and borrowings................ 2.78 2.62
Interest rate spread............................................. 2.85 3.00
* Includes securitized assets subject to repurchase
**Includes municipal bonds at tax equivalent yields and cash equivalents
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WASHINGTON FEDERAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Quarter Ended December 31,
--------------------------
2004 2003
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(In thousands, except per share data)
INTEREST INCOME
Loans and securitized assets subject to repurchase.......... $ 86,885 $82,395
Mortgage-backed securities.................................. 12,834 11,734
Investment securities and cash equivalents.................. 7,824 8,553
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107,543 102,682
INTEREST EXPENSE
Customer accounts........................................... 23,892 21,637
FHLB advances and other borrowings.......................... 18,254 22,419
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42,146 44,056
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NET INTEREST INCOME......................................... 65,397 58,626
Provision for loan losses................................... - -
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES......... 65,397 58,626
OTHER INCOME
Gains on sale of securities, net............................ 64 536
Other....................................................... 2,515 2,569
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2,579 3,105
OTHER EXPENSE
Compensation and fringe benefits............................ 8,334 7,559
Occupancy................................................... 1,836 1,805
Other....................................................... 1,808 1,796
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11,978 11,160
Gain (loss) on real estate acquired through foreclosure, net 218 125
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INCOME BEFORE INCOME TAXES.................................. 56,216 50,696
Income taxes................................................ 19,957 17,873
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NET INCOME.................................................. $ 36,259 $ 32,823
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PER SHARE DATA
Basic earnings.............................................. $ .46 $ .42
Diluted earnings............................................ .46 .41
Cash dividends.............................................. .21 .20
Weighted average number of shares outstanding,
including dilutive stock options......................... 79,491,074 79,124,444
Return on average assets.................................... 1.96% 1.74%
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