Washington Federal Inc. (WFSL ), parent company of Washington Federal Savings, on Thursday, posted a profit for the third quarter from a loss last year, helped by higher net interest income due to declining deposit costs, and absence of writedown from last year. Earnings came in ahead of analysts' consensus by three cents. Shares of CIT are currently trading higher by around 10% on the Nasdaq following the results.
For the third quarter, the Seattle, Washington-based company posted net income available to common shareholders of $9.60 million or $0.11 per share, compared to net loss available to common shareholders of $39.34 million or $0.45 per share in the year-ago quarter.
The year-ago quarter's results included a writedown of $88 million on preferred stock investments in the U.S. Government sponsored entities of Fannie Mae and Freddie Mac.
On average, nine analysts polled by Thomson Reuters expected the company to earn $0.08 per share for the quarter. Analysts' estimate typically excludes one-time charges and gains.
Net interest income for the quarter increased to $95.40 million from $84.26 million in the year-earlier period. Analysts expected the company to report revenue of $98.66 million for the quarter.
Provision for loan losses for the quarter was $51.80 million, up from $36.80 million in the same quarter last year.
Interest expense for the quarter was $71.90 million, compared to $93.25 million last year.
Non-performing assets amounted to $557 million or 4.43% of total assets at year end, an increase of $393 million from September 30, 2008, and is concentrated in the portfolio of land and speculative construction loans. Overall delinquencies were 4.86% as at September 30, 2009, compared to 2.46% at September 30, 2008.
At September 30, 2009, Washington Federal's total assets were $12.58 billion, up 6% from $11.83 billion at September 2008. As at September 30, 2009, the company's total risk-based capital ratio was 21.57%.
For the nine-month period, net income available to common shareholders decreased to $40.70 million or $0.46 per share from $62.33 million or $0.71 per share in the same period last year. Net interest income for nine months increased to $373.15 million from $303.79 million last year. Provision for loan losses for the period soared to $193.00 million from $60.52 million in the corresponding period last year.
Washington Federal also declared a cash dividend of $0.05 per share payable on October 23 to stockholders of record as of the close of business on October 9.
WFSL is currently trading at $17.10, up $1.57 or 10.11%, on a volume of 1.67 million shares on the Nasdaq.
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