Washington Federal, Inc. announced unaudited consolidated earnings results for the second quarter and six months ended March 31, 2018. For the quarter, the company's net interest income was $117,301,000 against $107,727,000 a year ago. Income before income taxes was $64,773,000 against $62,791,000 a year ago. Net income was $49,271,000 or $0.57 per diluted share against $62,791,000 or $0.47 per diluted share a year ago. Return on average assets was 1.26% against 1.13% a year ago. Return on average common equity was 9.81% against 8.37% a year ago. The increase in net interest income from the prior year was primarily due to both higher balances and yield. Total revenue rose to $129.9 million from $117.9 million a year ago.

For the six months, the company's net interest income was $233,036,000 against $210,879,000 a year ago. Income before income taxes was $125,408,000 against $123,896,000 a year ago. Net income was $100,941,000 or $1.17 per basic and diluted share against $83,316,000 or $0.93 per basic and diluted share a year ago. Return on average assets was 1.31% against 1.12% a year ago. Return on average common equity was 10.03% against 8.34% a year ago. Adjusted pre-tax income of $134.0 million for the six months ended March 31, 2018 is calculated by adding back the FDIC loss share valuation adjustments of $8.6 million to pre-tax income of $125.4 million. Adjusted total income was $261.0 million.

The company estimates that its annual effective tax rate for its full fiscal 2018 (blended rate year) will be approximately 21% to 23%. This compares to an effective tax rate of 32.3% for the fiscal year ended September 30, 2017.

Looking forward, the company expects the effective tax rate for fiscal 2019 to be approximately 20% to 22%.