Loading...
•
Dec 31, 2019
WaFd Q1 2020 Earnings Report
Announced quarterly earnings per share of $0.84.
Key Takeaways
Washington Federal announced quarterly earnings of $65,703,000, or $0.84 per diluted share. The quarter benefited from two non-recurring items that generated net positive pre-tax income of $25.7 million.
Record net income and earnings per share were achieved.
Record loan originations of $1.4 billion were produced, offset by record loan repayments of $1.3 billion.
Time deposits are now less than 40% of total deposits, a historical first for the company.
The company is investing in technology and processes to improve client experience and become a digital-first bank.
WaFd
WaFd
Forward Guidance
The company is focused on improving client experience through digital transformation and strategic investments in technology and processes.
Positive Outlook
- New or improved digital experiences across mobile and online banking
- Online account opening
- Mortgage and commercial loan originations
- Commercial lock box
- Credit cards
Challenges Ahead
- Operating expenses are at an elevated level due to significant investments in the business.
- Adjusted efficiency ratio was 57% for the quarter.
- Compression in the net interest margin since the prior year same quarter due to the flattening of the yield curve.
- Customer deposits decreased by $59 million or 0.5% since September 30, 2019.
- Weighted average interest rate on the loan portfolio decreased from 4.52% to 4.42%.