Washington Federal reports Q4 EPS 71c, consensus 70c

Reports Q4 NII $172.82M, consensus $177.52M. Provision for credit losses was nil vs. $26.5M last year. Net interest margin was 2.62% vs. 2.56% in the previous quarter. CEO Brent Beardall commented, “Considering what was one of the more challenging macro environments in my twenty-three years at the Bank, our FY24 was an excellent year with after tax earnings just north of $200 million. We took material steps to position the balance sheet for the Fed’s much anticipated move to reduce interest rates. As we start FY25, we have over 19% of our total balance sheet in cash and investments, borrowing capacity of more than $6B and problem loans totaling just 0.28% of assets. Optionality is a beautiful thing when the future is uncertain and we believe we are moving forward with a capacity to be relevant and a nimbleness to adapt. WaFd sees significant opportunity for growth in all of our nine western states, where we believe economic growth will outpace overall US growth. Perhaps our biggest concern is the potential for unexpected events. Over the years, we have seen it’s the surprise of what was not modeled, what was not thought likely, that takes down strong financial institutions. This knowledge keeps us humble and operating with a meaningful surplus of capital and liquidity.”