Washington Federal (WAFD) Q1 Earnings Beat Estimates, Stock Up

This story originally appeared on Zacks

Shares of Washington Federal WAFD gained nearly 1% in after-hours in response to the announcement of its first-quarter fiscal 2022 (ended Dec 31) results. Earnings of 71 cents per share surpassed the Zacks Consensus Estimate of 69 cents. The figure reflects a year-over-year jump of 39%.
Results primarily benefited from increased revenues, decreased provision for credit losses and a robust loan balance. The company’s balance-sheet position remained strong during the quarter. However, an increase in expenses was the undermining factor.
Net income was $50.3 million, surging 29.1% from the prior-year period.

– Zacks

Revenues & Expenses Rise

Net revenues were $152.8 million, up 13.7% from the year-ago quarter. The top line beat the Zacks Consensus Estimate of $147.8 million.
Net interest income was $134.1 million, up 11.3% from the year-earlier period. Net interest margin was 2.87%, rising 12 basis points.
Total other income of $18.7 million soared 34.5%. This jump was mainly driven by a drastic improvement in other income and higher deposit fee income.
Other expenses amounted to $89.6 million, up 10.1% year over year. Higher compensation and benefits, occupancy and other expenses largely led to this rise.
The company’s efficiency ratio was 58.64%, down from 60.58% recorded a year ago. A fall in efficiency ratio indicates improved profitability.
At the end of the fiscal first quarter, return on average common equity was 10.12%, up from the 7.65% witnessed at the end of the year-earlier quarter. Return on average assets was 1.02%, up from 0.83%.

Loans and Deposit Rise

As of Dec 31, 2021, net loans receivables amounted to $14.6 billion, up 5.5% sequentially. Also, total customer deposits were $15.9 billion, up 2.3% from Sep 30, 2021.

Credit Quality Improves

As of Dec 31, 2021, the allowance for credit losses (including reserve for unfunded commitments) was 1.18% of gross loans outstanding, down from 1.22% recorded on Sep 30, 2021. The ratio of non-performing assets to total assets was 0.27% compared with 0.22% as on Sep 30, 2021.
During the quarter, the company recorded a provision for credit losses of $0.5 million, substantially lower than $3 million in the prior-year quarter.

Share Repurchase Update

During the quarter, Washington Federal repurchased 84,114 shares at an average price of $35.34 per share.

Our Viewpoint

Solid loans and deposit balances along with strong credit quality will likely continue to support Washington Federal’s profitability. However, elevated operating expenses remain a major headwind.
 

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 is scheduled to release fourth quarter and full-year 2021 results on Jan 18.
Over the past 30 days, the Zacks Consensus Estimate for Hancock’s quarterly earnings has moved 1.5% upward to $1.35. This indicates a 40.6% increase from the prior-year quarter.
Associated Banc-Corp ASB is scheduled to release fourth quarter and full-year 2021 results on Jan 20.
Over the past 30 days, the Zacks Consensus Estimate for Associated Banc-Corp’s quarterly earnings has remained unchanged at 43 cents. This implies a 7.5% increase from the prior-year quarter.
Bank OZK OZK is scheduled to release fourth quarter and full-year 2021 results on Jan 20.
Over the past 30 days, the Zacks Consensus Estimate for Bank OZK’s quarterly earnings has remained unchanged at 98 cents. Also, this suggests a 5.4% increase from the prior-year quarter.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Washington Federal, Inc. (WAFD): Free Stock Analysis Report
 
Associated BancCorp (ASB): Free Stock Analysis Report
 
Hancock Whitney Corporation (HWC): Free Stock Analysis Report
 
Bank OZK (OZK): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Schreibe einen Kommentar

Deine E-Mail-Adresse wird nicht veröffentlicht. Erforderliche Felder sind mit * markiert.