NASDAQ$WAFD

WaFd Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Announced quarterly earnings with an increase in net income and earnings per share compared to the same quarter last year.

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.

Headline financials

Total Revenue

$142M

Previous: $131M+8.5%
EPS (adj)

$0.61

Previous: $0.46+32.6%
Net Interest Margin

2.8%

No prior period
Return on Avg. Assets

1.0%

No prior period
Efficiency Ratio

59.0%

Previous: 57.6%+2.3%
ROACE

8.7%

No prior period
Free Cash Flow

$47.4M

Previous: $34.9M+36.1%
Net Income

$47.4M

Previous: $34.9M+36.1%
Operating Income

$106M

Previous: $99M+6.7%
Gross Profit

$140M

Previous: $120M+16.7%
Cash & Equivalents

$2.25B

Previous: $1.22B+84.9%
Total Assets

$19.6B

Previous: $18.2B+8.1%
Stock-Based Comp

$1.39M

Previous: $1.52M-8.7%

Revenue & EPS history

WaFd · Revenue · Quarterly

$142M

Q3 2021+8.5%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
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 is focused on organic loan growth funded by low-cost core deposits and continues to monitor credit quality closely.

Tailwinds

  • 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.

Headwinds

  • 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.
  • Continued investments to become a digital first bank are increasing operating expenses.
  • Economic impacts of the pandemic will become clearer over time and require close monitoring of credit quality.

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 Q3 2021

Historical avgQ3 2021

+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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