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Jun 30, 2021
WaFd Q3 2021 Earnings Report
Announced quarterly earnings with an increase in net income and earnings per share compared to the same quarter last year.
Key Takeaways
Washington Federal reported quarterly earnings of $47.422 million, a 36% increase from the previous year. The company saw growth in loans, deposits, and total assets, reaching record highs. Net interest margin also expanded during the quarter.
Quarterly earnings increased by 36% year-over-year, reaching $47.422 million.
Earnings per diluted share increased by 33% to $0.61 compared to $0.46 in the prior year.
Total assets reached $19.6 billion, driven by increases in loans receivable and cash.
Customer deposits increased by $1.5 billion, or 10.6%, since September 30, 2020.
Forward Guidance
The company is focused on organic loan growth funded by low-cost core deposits and continues to monitor credit quality closely.
Positive Outlook
- Net positive migration into the company's eight western state footprint is expected to continue to fuel demand.
- Conservative credit underwriting standards allow WaFd Bank to be a reliable lender in both bull and bear markets.
- Focus on transaction accounts is intended to lessen sensitivity to rising interest rates and manage interest expense.
- Strong growth in deposits has resulted in excess liquidity.
- Organic loan growth funded by low-cost core deposits is the highest and best use of its capital.
Challenges Ahead
- Areas in the economy give the company pause and even appear frothy, particularly housing.
- Housing has seen a sharp increase over the last year, raising concerns with affordability.
- Operating expenses are elevated as compensation costs continue to climb given the highly competitive labor market.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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