(By Balaseshan) Washington Federal Inc. (NASDAQ:WAFD), a non-diversified unitary savings and loan holding company, reported a 16.7% increase in third quarter earnings on material decline in expenses related to problem assets, which more than offset a decline in net interest income.
Quarterly earnings were $36.16 million or $0.33 per share, up from $30.12 million or $0.27 per share last year. Analysts had expected an earnings of $0.32 per share for the latest quarter.
Net interest income for the quarter decreased 9% to $97 million, due to lower asset yields, while Street analysts predicts $103.25 million. Net interest margin fell to 3.05% from 3.44% last year.
Non-performing assets amounted to $278 million or 2.07% of total assets for the latest quarter, a $92 million or 24.8% decrease from its September 30, 2011 fiscal year-end. Net loan charge-offs plunged 31% to $16 million. Total loan delinquencies were 2.69% of total loans as of June 30, 2012, a decrease from the 3.43% at September 30, 2011.
Total assets increased marginally by 0.2% to $13.47 billion at June 30, 2012 from $13.44 billion at September 30, 2011. Specifically, loans and covered loans decreased by $400 million, which was partially offset by a $359 million increase in investment balances.
The company's efficiency ratio increased to 35.9% from 31.0%, due to the decline in interest income. The latest quarter produced a return on assets of 1.04%, while return on equity amounted to 7.33%.
WAFD closed Wednesday's regular session at $16.54. The stock has been trading between $12.15 and $18.42 for the past 52 weeks.