We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Washington Federal (WAFD) Q2 Earnings Lag Estimates, Costs Up
Read MoreHide Full Article
Washington Federal’s (WAFD - Free Report) second-quarter fiscal 2022 (ended Mar 31) earnings of 70 cents per share missed the Zacks Consensus Estimate by a penny. The figure, however, reflects a year-over-year jump of 25%.
Results primarily benefited from higher revenues, provision benefits and a robust loan balance. However, an increase in expenses was the undermining factor.
Net income available to common shareholders was $45.7 million, rising 8.4% from the prior-year period.
Revenues & Expenses Rise
Net revenues were $150.7 million, up 8.8% from the year-ago quarter. The top line also beat the Zacks Consensus Estimate of $148.8 million.
Net interest income was $135.1 million, up 8.9% from the year-earlier period. Net interest margin was 2.90%, rising 15 basis points (bps).
Total other income of $15.7 million grew 8.2%. This increase was mainly driven by a rise in loan fee income and deposit fee income.
Other expenses amounted to $88.4 million, up 8.2% year over year. Higher compensation and benefits, occupancy, product delivery and other expenses largely led to this rise.
The company’s efficiency ratio was 58.65%, down from 59.02% recorded a year ago. A fall in efficiency ratio indicates improved profitability.
At the end of the fiscal second quarter, the return on average common equity was 9.80%, up from 8.17% at the end of the year-earlier quarter. Return on average assets was 0.98%, up from 0.93%.
Loans and Deposit Rise
As of Mar 31, 2022, net loans receivables amounted to $15.1 billion, up from 13.8 billion as of Sep 30, 2021. Also, total customer deposits were $16.4 billion, up from $15.5 billion as of Sep 30, 2021.
Credit Quality Improves
As of Mar 31, 2022, the allowance for credit losses (including reserve for unfunded commitments) was 1.13% of gross loans outstanding, down 17 bps year over year. The ratio of non-performing assets to total assets was 0.23%, down 2 bps.
During the quarter, provision for credit losses was a benefit of $0.5 million against no provision in the year-ago quarter.
Share Repurchase Update
During the quarter, Washington Federal repurchased 4,684 shares at an average price of $34.65 per share.
Our Viewpoint
Solid loans and deposit balances, along with impressive credit quality, will likely continue to support Washington Federal’s profitability. However, elevated operating expenses remain a major headwind.
Washington Federal, Inc. Price, Consensus and EPS Surprise
Hancock Whitney Corporation (HWC - Free Report) is scheduled to release first-quarter 2022 results on Apr 19.
Over the past 30 days, the Zacks Consensus Estimate for Hancock’s quarterly earnings has moved 1.5% lower to $1.32. This indicates a 9.1% increase from the prior-year quarter.
Associated Banc-Corp (ASB - Free Report) is scheduled to release first-quarter 2022 numbers on Apr 21.
Over the past 30 days, the Zacks Consensus Estimate for Associated Banc-Corp’s quarterly earnings has remained unchanged at 37 cents. This implies a 36.2% decrease from the prior-year quarter.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Washington Federal (WAFD) Q2 Earnings Lag Estimates, Costs Up
Washington Federal’s (WAFD - Free Report) second-quarter fiscal 2022 (ended Mar 31) earnings of 70 cents per share missed the Zacks Consensus Estimate by a penny. The figure, however, reflects a year-over-year jump of 25%.
Results primarily benefited from higher revenues, provision benefits and a robust loan balance. However, an increase in expenses was the undermining factor.
Net income available to common shareholders was $45.7 million, rising 8.4% from the prior-year period.
Revenues & Expenses Rise
Net revenues were $150.7 million, up 8.8% from the year-ago quarter. The top line also beat the Zacks Consensus Estimate of $148.8 million.
Net interest income was $135.1 million, up 8.9% from the year-earlier period. Net interest margin was 2.90%, rising 15 basis points (bps).
Total other income of $15.7 million grew 8.2%. This increase was mainly driven by a rise in loan fee income and deposit fee income.
Other expenses amounted to $88.4 million, up 8.2% year over year. Higher compensation and benefits, occupancy, product delivery and other expenses largely led to this rise.
The company’s efficiency ratio was 58.65%, down from 59.02% recorded a year ago. A fall in efficiency ratio indicates improved profitability.
At the end of the fiscal second quarter, the return on average common equity was 9.80%, up from 8.17% at the end of the year-earlier quarter. Return on average assets was 0.98%, up from 0.93%.
Loans and Deposit Rise
As of Mar 31, 2022, net loans receivables amounted to $15.1 billion, up from 13.8 billion as of Sep 30, 2021. Also, total customer deposits were $16.4 billion, up from $15.5 billion as of Sep 30, 2021.
Credit Quality Improves
As of Mar 31, 2022, the allowance for credit losses (including reserve for unfunded commitments) was 1.13% of gross loans outstanding, down 17 bps year over year. The ratio of non-performing assets to total assets was 0.23%, down 2 bps.
During the quarter, provision for credit losses was a benefit of $0.5 million against no provision in the year-ago quarter.
Share Repurchase Update
During the quarter, Washington Federal repurchased 4,684 shares at an average price of $34.65 per share.
Our Viewpoint
Solid loans and deposit balances, along with impressive credit quality, will likely continue to support Washington Federal’s profitability. However, elevated operating expenses remain a major headwind.
Washington Federal, Inc. Price, Consensus and EPS Surprise
Washington Federal, Inc. price-consensus-eps-surprise-chart | Washington Federal, Inc. Quote
Currently, Washington Federal carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Release & Expectations of Other Banks
Hancock Whitney Corporation (HWC - Free Report) is scheduled to release first-quarter 2022 results on Apr 19.
Over the past 30 days, the Zacks Consensus Estimate for Hancock’s quarterly earnings has moved 1.5% lower to $1.32. This indicates a 9.1% increase from the prior-year quarter.
Associated Banc-Corp (ASB - Free Report) is scheduled to release first-quarter 2022 numbers on Apr 21.
Over the past 30 days, the Zacks Consensus Estimate for Associated Banc-Corp’s quarterly earnings has remained unchanged at 37 cents. This implies a 36.2% decrease from the prior-year quarter.