Washington Federal, Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended March 31, 2018; Provides Effective Tax Rate for Its Full Fiscal 2018
April 11, 2018 at 08:00 am EDT
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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%.
WaFd, Inc. is a bank holding company that conducts its primary business through its subsidiary, Washington Federal Bank. Washington Federal Bank, a federally insured Washington state chartered commercial bank doing business as WaFd Bank (the Bank), is engaged in providing lending, depository, insurance and other banking services to consumers, mid-sized to large businesses, and owners and developers of commercial real estate. The Bank's business consists primarily of accepting deposits from the general public and investing these funds in loans of various types, including first lien mortgages on single-family dwellings, construction loans, loans on multi-family, commercial real estate and other income producing properties, home equity loans and business loans. The Bank invests in certain United States government and agency obligations and other investments. The Bank has approximately 198 branches located in Washington, Oregon, Idaho, Arizona, Utah, Nevada, New Mexico and Texas.
Washington Federal, Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended March 31, 2018; Provides Effective Tax Rate for Its Full Fiscal 2018