NASDAQ$WAFD

WaFd Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported quarterly earnings with an increase compared to the same quarter last year.

Washington Federal announced quarterly earnings of $65,934,000 for the quarter ended March 31, 2023, a 33.6% increase from $49,359,000 for the quarter ended March 31, 2022. Earnings per diluted share increased to $0.95, compared to $0.70 for the same quarter last year.

  • Net income for the quarter ended March 31, 2023 was $65,934,000, up 33.6% year-over-year.
  • Diluted earnings per share increased by 35.7% to $0.95 compared to $0.70 in the same quarter last year.
  • Net interest margin increased to 3.51% compared to 2.90% for the prior year quarter.
  • Total assets were $22.3 billion as of March 31, 2023, compared to $20.8 billion at September 30, 2022.

Headline financials

Total Revenue

$185M

Previous: $151M+22.8%
EPS (adj)

$0.95

Previous: $0.70+35.7%
Net Interest Margin

3.5%

Previous: 2.9%+21.0%
Efficiency Ratio

52.3%

Previous: 58.6%-10.8%
Capital Expenditures

$2.79M

No prior period
Free Cash Flow

$65.9M

Previous: $49.4M+33.6%
Net Income

$65.9M

Previous: $49.4M+33.6%
Operating Income

$78.4M

Previous: $118M-33.5%
Gross Profit

$179M

Previous: $150M+19.2%
Cash & Equivalents

$1.12B

Previous: $1.95B-42.6%
Total Assets

$22.3B

Previous: $20.6B+8.6%
Stock-Based Comp

$2.46M

Previous: $2.46M+0.0%

Revenue & EPS history

WaFd · Revenue · Quarterly

$185M

Q2 2023+22.8%vs Q2 2022
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

WaFd · $13.9M total across 3 segments · Q1 2021

  • Deposit Fee Income
    $6.03M
  • Other Income
    $5.45M
  • Loan Fee Income
    $2.39M

Forward guidance

The company acknowledges the challenging interest rate environment and is closely monitoring credit quality, but remains confident in its strong capital position and the economic vitality of its markets.

Tailwinds

  • Strong capital position.
  • Experienced bankers.
  • Conservative lending practices.
  • Diversified loan portfolio across eight western states.
  • Strong job growth in operating markets.

Headwinds

  • Challenging interest rate environment.
  • Inverted yield curve compressing bank margins.
  • Decrease in net interest margin from 3.69% to 3.51%.
  • First quarterly net charge-off in almost a decade.
  • Potential deterioration in commercial real estate values.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.2%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+2.2%

Avg return

30 days after

51%

35 / 69 earnings

Positive

+9.9%

Q4 2022

Best reaction

-5.7%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-1.4%+7.8%+5.5%
Q1 2026-4.0%-1.8%-7.9%
Q4 2025+0.9%+4.6%+9.8%
Q3 2025-1.6%-1.3%+0.6%
Q2 2025+0.1%+1.3%+0.9%
Q1 2025-5.7%-6.9%-7.2%
Q4 2024-1.6%-7.7%+0.5%
Q3 2024+7.8%+9.1%+8.6%
Q2 2024+2.5%+0.0%+2.9%
Q1 2024-5.7%-3.5%-5.1%
Q4 2023-3.3%-5.5%+5.4%
Q3 2023+2.0%+9.6%+8.5%
Q2 2023-2.4%-0.1%-14.0%
Q1 2023+4.5%+3.5%+2.8%
Q4 2022+9.9%+17.9%+19.7%
Q3 2022+1.1%+5.0%+15.6%
Q2 2022+1.8%+3.1%-0.7%
Q1 2022+3.5%+3.2%-1.9%
Q4 2021+3.7%+2.6%+2.6%
Q3 2021+0.5%+1.9%+7.2%
Q2 2021+1.1%+5.2%+6.5%
Q1 2021+1.3%+2.6%+6.7%
Q4 2020-0.8%-3.7%+5.6%
Q3 2020-0.5%-6.7%-3.9%
Q2 2020-0.6%+1.3%+1.5%
Q1 2020+0.2%-0.1%-2.1%
Q4 2019-2.2%-1.5%+0.5%
Q3 2019+0.5%+1.1%-1.9%
Q2 2019+4.3%+6.2%+3.6%
Q1 2019+2.2%+6.2%+6.6%
Q4 2018+0.6%-0.9%-5.7%
Q3 2018+1.4%+3.6%+5.5%
Q2 2018-4.7%-4.2%-5.3%
Q1 2018+2.9%+4.9%+2.1%
Q4 2017+2.6%+2.6%-1.3%
Q3 2017+0.6%+1.1%-4.7%
Q2 2017+1.5%+1.4%-1.1%
Q1 2017-2.5%-1.8%+1.0%
Q4 2016+2.2%+2.5%+18.4%
Q3 2016-0.4%-1.3%+0.5%
Q2 2016+2.6%
Q1 2016-1.9%
Q4 2015+4.2%
Q3 2015-0.5%
Q2 2015+2.6%
Q4 2014-4.5%
Q1 2015-4.5%
Q3 2014-1.7%
Q2 2014-2.4%
Q1 2014-2.5%
Q4 2013+5.2%
Q3 2013+6.9%
Q2 2013-2.5%
Q1 2013+0.5%
Q4 2012+3.1%
Q3 2012-3.4%
Q2 2012-0.2%
Q1 2012+3.4%
Q4 2011-2.9%
Q3 2011+0.6%
Q4 2010+0.6%
Q2 2011-0.2%
Q1 2010-0.5%
Q1 2011-0.6%
Q2 2010-1.2%
Q4 2008-1.2%
Q3 2009-3.6%
Q4 2009-3.6%
Q3 2010-3.6%

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