Category: Property Loans


China’s 2014 new lending seen at five-year high -PBOC official

July 24, 2014

Property Loans

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BEIJING (Reuters) – Chinese banks are likely to make 9.5 trillion yuan (0.87 trillion pound) worth of new yuan loans this year, their strongest lending surge since the 2009 financial crisis, a central bank official was quoted as saying on Tuesday.

Sheng Songcheng, the head of the statistics department at the central bank, was also quoted by the Chinese financial news service Great Wisdom as saying that banks have increased lending to Chinas cooling property market this year in a show of forceful support.

This is the first time this year that a Chinese official has publicly said how much new lending – a vital monetary policy tool – is expected to occur in the worlds second-largest economy in 2014.

His remarks also indicate that policymakers have shrugged off social concerns about Chinas near-record-high home prices and are taking action to support its slowing real estate market and bolster the economy.

The acknowledgement that new lending is likely to accelerate provides evidence that China is actively loosening monetary policy, even though authorities say repeatedly that the policy stance is unchanged in its prudent mode.

Sheng, who spoke at a central bank press briefing, was quoted as saying that Chinas broad M2 measure of money supply is expected to beat the governments annual 13 percent target this year by rising 13 to 14 percent.

Social total financing, a broad measure of credit supply in China that was created by the central bank, is also likely to hit 18.5 trillion yuan for the year, again up 7 percent from 2013, he said.

And despite a loss of momentum in Chinas housing market, Sheng said that the disbursement of property loans held strong.

Outstanding property loans hit 16.2 trillion yuan as of the end of June, up 19 percent from a year ago, the official Xinhua news agency quoted Sheng as saying.

New loans issued to the real estate sector jumped 18 percent in the first half of the year compared with a year ago, he said.

Looking from the financial angle, the sector has lent forceful funding support to the property market, Sheng said, adding that banks lending to Chinas property sector is ample.

Sheng said the across-the-board rise in credit growth was appropriate, and that Chinas monetary policy remained prudent.

Looser monetary conditions may reassure analysts who believe Chinas slowdown may worsen in coming months if authorities do not take further policy action.

But the measures may also draw criticisms from some experts, including the International Monetary Fund, who believe that China should hold down its rapid credit growth, because its economy already relies too much on debt.

(Reporting by Shao Xiaoyi and Koh Gui Qing; Editing by Richard Borsuk, Larry king)


Blackstone wins auction for 6.4 bln eur Spanish loan portfolio

July 22, 2014

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MADRID, July 16 (Reuters) – Blackstone has won the
auction for a 6.4-billion-euro ($8.66 billion) portfolio of
property loans belonging to Spains bailed-out Catalunya Banc,
which is being prepared for a sale, two people familiar with the
process said on Wednesday.

The US private equity firm bid around 3.5 billion to 3.6
billion euros for the package of loans, one of those people and
a third source close to the deal said.

Just under half of the loans are non-performing ones.
Catalunya Banc was nationalised by the state when it struggled
to cope with the aftermath of a real estate market crash. The
government is close to selling the bank, after it has shed the
portfolio. ($1 = 0.7393 Euros)

Blackstone could not immediately be reached for comment.

(Reporting by Jesus Aguado and Sarah White, Editing by Julien
Toyer)


Riverdale Funding Closes/Funds $9.7 Million in Bridge Loans in New York Last …

July 22, 2014

Property Loans

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Hard money lender Riverdale Funding, LLC has this month closed nearly $10 million of bridge loans in the state of New York.

New York, New York (PRWEB) July 16, 2014

Riverdale Funding, LLC has this month increased the amount of bridge loans executed in the state of New York to a total of $9,693,000. The hard money lender has provided a total of 18 loans in the Empire State, for single-family buildings, mixed-use properties, apartments, office buildings and a bed and breakfast.

“We’re thrilled to have issued borrowers in New York bridge loans to help finance their projects,” says Joe Hughis, Vice President of Riverdale Funding. “Our ability to issue a loan based on the value of an asset removes unnecessary burdens from borrowers who are typically asked for credit scores and financial documents when trying to secure a loan.”

Riverdale Funding portfolio continues to grow through the second quarter of 2014. Hard money loans are typically used for projects such as commercial real estate investment and commercial or residential development. Closed commercial real estate property loans have included funds for investment houses, offices, mixed-use commercial buildings, and investment properties. Because Riverdale Funding is a direct lender, the funds are transferred to the borrower quickly without the credit burden imposed by banks or traditional lenders.

In contrast to bank loans, which often require borrowers to have a high credit score over 700, hard money loans do not have a minimum credit score requirement. Riverdale Funding does not need your credit score or financial documents in order to issue a loan. Investors, brokers, and borrowers may apply for a commercial loan by filling out the form available on Riverdale Funding, LLC’s website.

A variety of real estate properties in New York can qualify for a hard money loan from Riverdale Funding, LLC. Multi-unit residential buildings with at least five family units can also be eligible (in a corporate or LLC name). Smaller residential buildings, with one to four family units per building, can also qualify if they are not occupied by the owner and are listed in the name of a corporation or LLC.

More information is available on the company’s website at http://www.riverdalefunding.com/, and interested investors can call (866) 988-3146 to speak to a Riverdale Funding account executive.

About Riverdale Funding, LLC: Riverdale Funding, LLC is a commercial hard money lender that operates throughout the United States. The company specializes in non-traditional private commercial loans for real estate investors and developers.

For the original version on PRWeb visit: http://www.prweb.com/releases/2014/07/prweb12016054.htm


China’s 2014 new lending seen at five-year high -PBOC official

July 19, 2014

Property Loans

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BEIJING (Reuters) – Chinese banks are likely to make 9.5 trillion yuan (0.87 trillion pound) worth of new yuan loans this year, their strongest lending surge since the 2009 financial crisis, a central bank official was quoted as saying on Tuesday.

Sheng Songcheng, the head of the statistics department at the central bank, was also quoted by the Chinese financial news service Great Wisdom as saying that banks have increased lending to Chinas cooling property market this year in a show of forceful support.

This is the first time this year that a Chinese official has publicly said how much new lending – a vital monetary policy tool – is expected to occur in the worlds second-largest economy in 2014.

His remarks also indicate that policymakers have shrugged off social concerns about Chinas near-record-high home prices and are taking action to support its slowing real estate market and bolster the economy.

The acknowledgement that new lending is likely to accelerate provides evidence that China is actively loosening monetary policy, even though authorities say repeatedly that the policy stance is unchanged in its prudent mode.

Sheng, who spoke at a central bank press briefing, was quoted as saying that Chinas broad M2 measure of money supply is expected to beat the governments annual 13 percent target this year by rising 13 to 14 percent.

Social total financing, a broad measure of credit supply in China that was created by the central bank, is also likely to hit 18.5 trillion yuan for the year, again up 7 percent from 2013, he said.

And despite a loss of momentum in Chinas housing market, Sheng said that the disbursement of property loans held strong.

Outstanding property loans hit 16.2 trillion yuan as of the end of June, up 19 percent from a year ago, the official Xinhua news agency quoted Sheng as saying.

New loans issued to the real estate sector jumped 18 percent in the first half of the year compared with a year ago, he said.

Looking from the financial angle, the sector has lent forceful funding support to the property market, Sheng said, adding that banks lending to Chinas property sector is ample.

Sheng said the across-the-board rise in credit growth was appropriate, and that Chinas monetary policy remained prudent.

Looser monetary conditions may reassure analysts who believe Chinas slowdown may worsen in coming months if authorities do not take further policy action.

But the measures may also draw criticisms from some experts, including the International Monetary Fund, who believe that China should hold down its rapid credit growth, because its economy already relies too much on debt.

(Reporting by Shao Xiaoyi and Koh Gui Qing; Editing by Richard Borsuk, Larry king)


TIAA Henderson Plans to Raise $500 Million for Debt Fund

July 19, 2014

Property Loans

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TIAA Henderson Real Estate, a venture
with about $24 billion under management, plans to raise 300
million pounds ($500 million) for a European debt fund as the
company bids to grow by almost 30 percent in the region and Asia
over three years.

The London-based company will start raising money in the
fourth quarter and expects the fund to begin lending this year,
said Michael Sales, managing director for Europe. TIAA
Henderson, 60 percent controlled by TIAA-CREF, will lend in
Europe to boost returns as rising commercial property prices
make acquisitions less attractive.

“Commercial real estate debt still offers attractive risk-adjusted returns,” Sales said in an interview in London. “We’d
like to have billions under management in the next five years.”

European investment managers are taking advantage of rising
demand for property loans, filling the void left after banks
curbed lending to meet stricter capital rules. Goldman Sachs
Group Inc. raised $4.2 billion for real estate debt this year,
its second such fund since the credit crunch. Axa Real Estate
Investment Managers said it raised 485 million euros from Danish
pension funds for a new debt fund in April.

The debt fund, which would initially finance only UK
properties, would be TIAA Henderson’s first outside the US,
where the company has most of its assets under management. It’s
looking to spread risk by lending in Europe, returning to Spain
and Italy to buy buildings and more than doubling its Asian
holdings.

Asian Acquisitions

TIAA Henderson manages about 17 billion euros of properties
in Europe and less than 1 billion euros in Asia. The company
aims to have about 22 billion euros in those regions within
three years.

In Asia, where the company has five properties including an
office building in Sydney, a luxury apartment tower in Bangkok
and two mall developments in China, additional growth will
probably come from acquiring competitors, said Sales.

“We’re looking out for interesting platforms and teams of
people to grow that business,” said Sales. “To truly call
ourselves global, Asia needs to have a few billion euros behind
it.”

In Europe, making profitable investments is becoming more
difficult as prices approach record highs, said Sales.

“In Western Europe and the UK core property yields are
back at where we were at the peak in 2006,” said Sales. “We’re
getting to levels now that may go beyond fair pricing, but at
the moment we’d say property is fairly priced.”

Madrid Deal

TIAA Henderson is negotiating to buy a retail building in
Madrid for about 35 million euros in what would be its first
Spanish acquisition since 2010, Sales said. The company will add
at least 250 million euros of Spanish real estate within two
years, and plans to spend a similar amount in Italy.

In Germany, TIAA Henderson owns shopping malls and suburban
big-box stores valued at about 2 billion euros and expects to
add another 350 million euros of retail and logistics properties
within 12 months.

TIAA Henderson was formed by Henderson and TIAA-CREF, the
Teachers Insurance amp; Annuity Association of America. TIAA-CREF
owns 60 percent of the venture and Henderson owns the rest.

To contact the reporter on this story:
Dalia Fahmy in Berlin at
dfahmy1@bloomberg.net

To contact the editors responsible for this story:
Andrew Blackman at
ablackman@bloomberg.net
Jeffrey St.Onge


3 Reasons to Love New York Community Bancorp

July 18, 2014

Property Loans

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Source: Company

The bank has thrived over the past several decades and has grown tremendously through acquisitions, delivering spectacular returns to shareholders. Here are four reasons New York Community Bancorp deserves to be considered for your portfolio.

Excellent asset quality
New York Community Bancorps assets are of a level of quality that most other banks can only dream of.

Since 1993, the banks net charge-offs have averaged just 0.04% of loans, and is currently even more impressive at just 0.03% of the loan portfolio. Compare this to Citigroup, whose net charge-off rate was 1.16% for the first quarter of 2014, or even rock-solid Wells Fargos 0.37%.

Only 0.37% of the banks loans are currently non-performing, far below the banking industry average of 1.58%. Even during the Savings amp; Loan Crisis of the early 1990s and the Great Recession, the bank consistently outperformed the industry average for charge-offs and non-performing loans.

New York Community Bank has achieved this by insisting on very conservative loan-to-value ratios and debt coverage ratios. The Board of Directors is actively involved in the review and approval of all of the banks loans. And, the types of loans the bank carries in its portfolio are inherently risk-averse, which well see in a bit.

High efficiency
When it comes to a banks efficiency ratio, lower is better. This is a measure of a banks operating expenses relative to its revenue.

The overall banking industry averages an efficiency ratio of about 66%. In other words, for every dollar the average bank makes, it has to spend $0.66.

Well, New York Community Bank operates at an efficiency ratio of less than 45%, which actually puts in in the top 3% of all US banks. For comparisons sake, Wells Fargo and Citigroup both have efficiency ratios of around 56%, and not one of the 10 largest US banks is more efficient than NYCB.

The best and biggest in a niche market
One of the best ways to ensure consistent success and growth is to become the best at something that not many other companies do well. For New York Community Bank, this is New York City multi-family loan production.

About 64% of the banks loan portfolio consists of multi-family property loans, most of which are located in New York City.

While the company is the leading producer of multi-family loans in NYC, the company specializes further, to those buildings with rent-regulated housing units. At first this may seem counterintuitive, as these properties produce lower rent than non-regulated units.

However, because the buildings bring in below-market rental income, tenants are much more likely to stay than tenants in market-rate buildings. This is especially true in recessions and otherwise bad economic times, and is one of the reasons for New York Community Banks extraordinarily low charge-off rate.

These loans are also less costly to produce and service than most other types of loans, so this is also one of the reasons the bank is so efficient.

A winning formula that produces results
So, how have the high efficiency, great asset quality, and niche lending worked out so far for the bank?

Extremely well, actually. The bank has grown tremendously through acquisitions, and shareholders have been handsomely rewarded. Since its IPO in late 1993, the bank has produced a total return of 4,131%, or an annualized rate of 28% per year. So, a $10,000 investment in New York Community Bank 20 years ago would be worth more than $420,000 today.

New York Community Bancorp has figured out a winning formula that has produced excellent results for investors, and should continue to do so for years to come.


BoE keeps rates at record low

July 17, 2014

Property Loans

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The Bank of England opted Thursday to keep interest rates at a record-low 0.50 percent, despite governor Mark Carneys recent warning that they could rise sooner than expected. The British central banks nine-member monetary policy committee (MPC) also decided after a two-day meeting to maintain the level of cash stimulus, or quantitative easing, at £375 billion ($641 billion, 471 billion euros).

Both decisions were in line with market expectations and were shrugged off on the London stock market. The BoE will publish minutes from the gathering on July 23. The bank had slashed borrowing costs to 0.50 percent in March 2009, when it also launched the radical QE policy to stimulate economic growth.

However, Britains economy emerged from recession in the second half of 2009, after a fierce downturn rooted in the global financial crisis, and has since recovered somewhat. The economy powered ahead with 0.8 percent growth in the first quarter of 2014 compared with output in the final three months of last year. However, analysts argue that easing inflation may persuade policymakers to keep record-low rates for the time being.

Although the economic recovery appears to be heading into the second half of this year with plenty of momentum, the continued weakening of inflationary pressures suggests that todays decision by the MPC to leave interest rates on hold is likely to be repeated throughout 2014, said Capital Economics analyst Samuel Tombs. Consumer prices have been sliding in Britain, with 12-month inflation slowing to 1.5 percent in May – the lowest level for four and a half years.

The central bank is therefore having to deal with inflation that is below its 2.0 percent target, and a housing market that has rallied over the past year, especially in London. Mindful also that it has to ensure that Britains growth revival keeps going, the central bank has so far shied away from raising rates to prevent a property bubble from forming. Instead, it has deployed other tools at its disposal to deal with the rising housing prices.

Carney had last month hinted that the bank could lift rates sooner than expected, prompting analysts to price in a hike by the end of the year. The banks main lending rate has been locked in at 0.50 percent for more than five years, but amid signs that Britains housing market could face a fresh price bubble, the BoE last month announced a cap on lending for home loans. The bank has recommended that property loans of 4.5 times a borrowers income or higher should comprise no more than 15 percent of new mortgages, with effect from October.

Copyright AFP (Agence France-Presse), 2014
AFP text, photos, graphics and logos shall not be reproduced, published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP shall not be held liable for any delays, inaccuracies, errors or omissions in any AFP content, or for any actions taken in consequence.

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Washington Federal Announces Quarterly Earnings per Share Increase of 4%

July 17, 2014

Property Loans

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SEATTLE, July 15, 2014 (GLOBE NEWSWIRE) — via PRWEB – Washington Federal, Inc. (Nasdaq: WAFD), parent company of Washington Federal, today announced earnings of $37,910,000 or $.37 cents per diluted share for the quarter ended June 30, 2014, compared to $37,338,000 or $.36 cents per diluted share for the quarter ended June 30, 2013, an increase of 4.3%.

Chairman, President amp; CEO Roy M. Whitehead commented, It was a good quarter for the company, particularly given the pressure of added costs related to the recent acquisitions of seventy-four branches. Loan growth, deposit mix improvement, and strengthening asset quality were all positive trends during the quarter that we expect to continue. In addition, there are good opportunities to manage costs lower over time.

We were also pleased to approve a 10% increase in the cash dividend during the quarter and to return a substantial amount of excess capital to shareholders through the repurchase of 1.5 million shares. Additional retained earnings are not necessary to maintain our very solid capital position; therefore, its likely that we will continue to actively repurchase stock.

During the next few quarters, the Companys efforts will be targeted to growing the customer base organically, completing major technology initiatives, the assimilation of recent acquisitions, and improving operational quality and efficiency.

Net interest income for the quarter was $103 million, a $9 million or 9.0% increase from the quarter ended June 30, 2013. Net interest income was higher due to increased investment income and reduced interest expense on customer accounts. Net interest margin was 3.05% for the quarter ended June 30, 2014 which is similar to 3.03% for the prior quarter and a decline from 3.15% for the quarter ended June 30, 2013. This decline was due to increased cash and investment balances held at lower yields. Loan yields were also lower as a result of the low rate environment, which was partially offset by the lower cost of customer accounts. Average earning assets increased $1.5 billion or 12.7% compared to the same quarter of the prior year due primarily to branch acquisitions.

The provision for loan losses was a reversal of $3 million and zero for the quarters ended June 30, 2014 and 2013, respectively, as a result of the improving asset quality trend. There were $5.6 million in loan recoveries that more than offset $3.4 million in charge-offs for the quarter. The Company maintains an allowance for loan losses that totals $114 million or 1.35% of total gross loans as of June 30, 2014. This is a decrease due to improved credit quality as compared to $117 million or 1.46% of total gross loans as of September 30, 2013. The allowance as a percent of non-performing loans improved to 121% from 89% during that same period.

Net loss on real estate acquired through foreclosure amounted to $2 million during the quarter, as compared to a small gain for the quarter ended June 30, 2013. The Company expects the amount of gain or loss on real estate acquired to continue to fluctuate in future quarters based primarily on the timing of sales and the amount, if any, of gains or losses related to those sales. Net gain or loss on real estate acquired through foreclosure includes gains and losses on sales, ongoing maintenance expenses and any additional adjustments from lower valuations.

The Companys efficiency ratio was 47.9% for the quarter and remains among the best in the industry. Total operating expenses increased by $12 million or 28.1% for the quarter as compared to the same quarter of the prior year, driven by an increase in employees and 74 branch locations this fiscal year and the related costs to service the acquired transaction accounts. Deposit related service fees increased by $3 million from the same quarter of the prior year to $4 million for the quarter ended June 30, 2014 largely as a result of the branch acquisitions. The quarter produced a return on average assets of 1.04% and a return on average equity of 7.64%. The fiscal year-to-date return on average assets was 1.10% and the return on average equity was 7.91%.

Loans receivable grew by $229 million during the quarter or 3.0% to $8.0 billion as of June 30, 2014. The fiscal year-to-date increase is $438 million or 5.8%. Loan originations for the quarter totaled $597 million, a $91 million or 18.0% increase over the same quarter of the prior year. For the fiscal year, loan originations were $1.5 billion which is the highest for the first nine months of the year since 2008. The Company views organic loan growth as the highest and best use of its capital. The weighted average interest rate on loans as of June 30, 2014 was 4.81%, which is a decrease from 5.13% for the same quarter of the prior year. Actual yield earned on loans will be greater than the weighted average rate due to net deferred loan fees and discounts on acquired loans, which are accreted into income over the term of the loans.

Total non-performing assets, including real estate owned as a result of foreclosure, amounted to $162 million or 1.10% of total assets at quarter-end, a $51 million or 24.0% decrease from September 30, 2013. Non-performing loans decreased from $131 million at September 30, 2013 to $94 million as of June 30, 2014, a 28.2% decrease. Net loan charge-offs decreased from $5 million in the quarter ended June 30, 2013 to a net recovery of $2 million in the most recent quarter. Total loan delinquencies were 1.41% of non-covered loans as of June 30, 2014, a decrease from 1.97% at September 30, 2013. Delinquencies on single family mortgage loans, the largest component of the loan portfolio, declined during the fiscal year to 1.77% from 2.21% at September 30, 2013.

Total assets increased by $1.7 billion or 13% to $14.8 billion at June 30, 2014 from the prior year end at September 30, 2013. Available for sale investments increased $742 million or 31.4% from the prior year end as investments were made with a portion of the deposits from the branch acquisitions. During the quarter, the Company had an average balance of cash and cash equivalents of $613 million invested overnight at a yield of approximately 0.25%.

During the quarter, Washington Federal completed the acquisition of 23 branches from Bank of America in Arizona and Nevada. The acquired deposits totaled $539 million and loans were $5 million. During the first quarter, Washington Federal completed the acquisition of 51 branches from Bank of America in New Mexico and the Pacific Northwest. In total, these acquisitions introduced 488 employees, $1.9 billion in deposits and $13 million in loans. The combined premium on these transactions was 2.00% and totaled $37 million. As of June 30, 2014, the acquired deposit balance since the acquisition dates was a decline of $59 million or 3.2% which is within managements expectations.

Transaction accounts have increased by $1.8 billion or 50% from September 30, 2013 and now represent 49% of total deposits. Over the last several years, the Company has focused on growing transaction account balances which tend to be less sensitive to interest rates.

On July 18, 2014, the Company will pay a cash dividend of $.11 per share to common stockholders of record on July 3, 2014. This will be the Companys 126th consecutive quarterly cash dividend. During the quarter, the Company repurchased 1,500,000 shares of stock at a weighted average price of $21.64. For the fiscal year, the Company has repurchased 2,948,200 shares of stock at a weighted average price of $21.79 and has board authorization to repurchase an additional 7.0 million shares. The ratio of tangible common equity to tangible assets was 11.64% as of June 30, 2014.

Washington Federal, a national bank with headquarters in Seattle, Washington, has 253 branches in eight western states. The bank gathers deposits from the general public and invests these funds in loans of various types, including first lien mortgage loans, home equity loans, construction loans, land acquisition and development loans, multi-family dwelling loans, other income producing property loans, and business loans. It also invests funds in government and agency obligations and certain other investments.

To find out more about Washington Federal, please visit our website. Washington Federal uses its website to distribute financial and other material information about the Company, which is routinely posted on and accessible at http://www.washingtonfederal.com.

Important Cautionary Statements

The foregoing information should be read in conjunction with the financial statements, notes and other information contained in the Companys 2013 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

This press release contains statements about the Companys future that are not statements of historical fact. These statements are forward looking statements for purposes of applicable securities laws, and are based on current information and/or managements good faith belief as to future events. The words believe, expect, anticipate, project, and similar expressions signify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance. By their nature, forward-looking statements involve inherent risk and uncertainties, which change over time; and actual performance could differ materially from those anticipated by any forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statement.

Contact:

Washington Federal, Inc.
425 Pike Street, Seattle, WA 98101
Cathy Cooper, SVP Marketing Communications
206-777-8246
cathy.cooper@wafd.com

This article was originally distributed on PRWeb. For the original version including any supplementary images or video, visit http://www.prweb.com/releases/2014/07/prweb12017691.htm

Washington Federal
Cathy Cooper

206-777-8246


Washington Federal Inc.: Washington Federal Announces Quarterly Earnings …

July 16, 2014

Property Loans

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Quarterly Earnings per Share Increase of 4%


SEATTLE, WASHINGTON – Washington Federal, Inc. (Nasdaq:
WAFD), parent
company of Washington Federal, today announced earnings of $37,910,000 or $.37 cents per diluted share for the quarter ended June 30, 2014, compared to $37,338,000 or $.36
cents per diluted share for the quarter ended June 30, 2013, an increase of 4.3%.
Chairman, President amp; CEO Roy M. Whitehead commented, It was a good quarter
for the company, particularly
given the pressure of added costs related
to the recent
acquisitions of seventy-four
branches. Loan growth, deposit mix improvement, and
strengthening asset quality were all positive trends during the quarter that we expect to continue. In addition, there are good opportunities to manage costs lower over time.
We were also pleased to approve a 10% increase in the cash dividend during the quarter and to return a substantial amount of excess capital to shareholders through the repurchase of 1.5 million shares. Additional retained earnings are not necessary to maintain our very solid capital position; therefore, its likely that we will continue to actively repurchase stock.
During the next few quarters, the Companys efforts will be targeted to growing the
customer base organically, completing major technology initiatives, the recent acquisitions, and improving operational quality and efficiency.
assimilation of

1

Net interest income for the quarter was $103 million, a $9 million or 9.0% increase from the quarter ended June 30, 2013. Net interest income was higher due to increased investment income and reduced interest expense on customer accounts. Net interest margin was 3.05% for the quarter ended June 30, 2014 which is similar to 3.03% for the prior quarter and a decline from 3.15% for the quarter ended June 30, 2013. This decline was due to increased cash and investment balances held at lower yields. Loan yields were also lower as a result of the low rate environment, which was partially offset by the lower cost of customer accounts. Average earning assets increased $1.5 billion or 12.7% compared to the same quarter of the prior year due primarily to branch acquisitions.
The provision for loan losses was a reversal of $3 million and zero for the quarters ended June 30, 2014 and 2013, respectively, as a result of the improving asset quality trend. There were $5.6 million in loan recoveries that more than offset $3.4 million in charge-offs for the quarter. The Company maintains an allowance for loan losses that totals $114 million or 1.35% of total gross loans as of June 30, 2014. This is a decrease due to improved credit quality as compared to $117 million or 1.46% of total gross loans as of September 30,
2013. The allowance as a percent of non-performing loans improved to 121% from 89%
during that same period.
Net loss on real estate acquired through foreclosure amounted to $2 million during the quarter, as compared to a small gain for the quarter ended June 30, 2013. The Company expects the amount of gain or loss on real estate acquired to continue to fluctuate in future quarters based primarily on the timing of sales and the amount, if any, of gains or losses related to those sales. Net gain or loss on real estate acquired through foreclosure includes gains and losses on sales, ongoing maintenance expenses and any additional adjustments from lower valuations.
The Companys efficiency ratio was 47.9% for the quarter and remains among the best in the industry. Total operating expenses increased by $12 million or 28.1% for the quarter as compared to the same quarter of the prior year, driven by an increase in employees and 74 branch locations this fiscal year and the related costs to service the

2

acquired transaction accounts. Deposit related service fees increased by $3 million from the same quarter of the prior year to $4 million for the quarter ended June 30, 2014 largely as a result of the branch acquisitions. The quarter produced a return on average assets of 1.04% and a return on average equity of 7.64%. The fiscal year-to-date return on average assets was 1.10% and the return on average equity was 7.91%.
Loans receivable grew by $229 million during the quarter or 3.0% to $8.0 billion as of June 30, 2014. The fiscal year to date increase is $438 million or 5.8%. Loan originations for the quarter totaled $597 million, a $91 million or 18.0% increase over the same quarter of the prior year. For the fiscal year, loan originations were $1.5 billion which is the highest for the first nine months of the year since 2008. The Company views organic loan growth as the highest and best use of its capital. The weighted average interest rate on loans as of June
30, 2014 was 4.81%, which is a decrease from 5.13% for the same quarter of the prior year. Actual yield earned on loans will be greater than the weighted average rate due to net deferred loan fees and discounts on acquired loans, which are accreted into income over the term of the loans.
Total non-performing assets, including real estate owned as a result of foreclosure, amounted to $162 million or 1.10% of total assets at quarter-end, a $51 million or 24.0% decrease from September 30, 2013. Non-performing loans decreased from $131 million at September 30, 2013 to $94 million as of June 30, 2014, a 28.2% decrease. Net loan charge- offs decreased from $5 million in the quarter ended June 30, 2013 to a net recovery of $2 million in the most recent quarter. Total loan delinquencies were 1.41% of non-covered loans as of June 30, 2014, a decrease from 1.97% at September 30, 2013. Delinquencies on single family mortgage loans, the largest component of the loan portfolio, declined during the fiscal year to 1.77% from 2.21% at September 30, 2013.
Total assets increased by $1.7 billion or 13% to $14.8 billion at June 30, 2014 from the prior year end at September 30, 2013. Available for sale investments increased $742 million or 31.4% from the prior year end as investments were made with a portion of the deposits from the branch acquisitions. During the quarter, the Company had an average

3

balance of cash and cash equivalents of $613 million invested overnight at a yield of approximately 0.25%.
During the quarter, Washington Federal completed the acquisition of 23 branches from Bank of America in Arizona and Nevada. The acquired deposits totaled $539 million and loans were $5 million. During the first quarter, Washington Federal completed the acquisition of 51 branches from Bank of America in New Mexico and the Pacific Northwest. In total, these acquisitions introduced 488 employees, $1.9 billion in deposits and $13 million in loans. The combined premium on these transactions was 2.00% and totaled $37 million. As of June 30, 2014, the acquired deposit balance since the acquisition dates was a decline of $59 million or 3.2% which is within managements expectations.
Transaction accounts have increased by $1.8 billion or 50% from September 30, 2013 and now represent 49% of total deposits. Over the last several years, the Company has focused on growing transaction account balances which tend to be less sensitive to interest rates.
On July 18, 2014, the Company will pay a cash dividend of $.11 per share to common stockholders of record on July 3, 2014. This will be the Companys 126th consecutive quarterly cash dividend. During the quarter, the Company repurchased 1,500,000 shares of stock at a weighted average price of $21.64. For the fiscal year, the Company has repurchased 2,948,200 shares of stock at a weighted average price of $21.79 and has board authorization to repurchase an additional 7.0 million shares. The ratio of tangible common equity to tangible assets was 11.64% as of June 30, 2014.
Washington Federal, a national bank with headquarters in Seattle, Washington, has
253 branches in eight western states. The bank gathers deposits from the general public and invests these funds in loans of various types, including first lien mortgage loans, home equity loans, construction loans, land acquisition and development loans, multi-family dwelling loans, other income producing property loans, and business loans. It also invests funds in
government and agency obligations and certain other investments.

4

To find out more about Washington Federal, please visit our website. Washington Federal uses its website to distribute financial and other material information about the Company, which is routinely posted on and accessible at www.washingtonfederal.com.

Important Cautionary Statements

The foregoing information should be read in conjunction with the financial statements, notes and other information contained in the Companys 2013 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
This press release contains statements about the Companys future that are not statements of historical fact. These statements are forward looking statements for purposes of applicable securities laws, and are based on current information and/or managements good faith belief as to future events. The words believe, expect, anticipate, project, and similar expressions signify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance. By their nature, forward-looking statements involve inherent risk and uncertainties, which change over time; and actual performance could differ materially from those anticipated by any forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statement.
# # #
Contact:
Washington Federal, Inc.
425 Pike Street, Seattle, WA 98101
Cathy Cooper, SVP Marketing Communications
206-777-8246 cathy.cooper@wafd.com

5

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)

ASSETS

June 30, 2014 September 30, 2013(In thousands, except per share data)

Cash and cash equivalents?????????.?????????????? $

861,304

$ 203,563

Available-for-sale securities?????????????????????…? 3,103,021 2,360,948

Held-to-maturity securities??????????????????????? 1,583,853 1,654,666

Loans receivable, net????????????????????????? 7,965,954 7,528,030

Covered loans, net?????????????????????????? 207,207 295,947

Interest receivable??????????????????????????? 51,392 49,218

Premises and equipment, net?????????????????????? 246,800 206,172

Real estate held for sale???????????????????????? 57,352 72,925

Real estate held for investment ?????????????????????? 10,780 9,392

Covered real estate held for sale????????????????????? 26,339 30,980

FDIC indemnification asset??????????????????????? 44,065 64,615

FHLB amp; FRB stock?????????????????????????? 162,904 173,009

Intangible assets, net????????????????????????? 303,983 264,318

Federal and state income taxes?????????????????????? 25,258 44,000

Other assets????????????????????????????? 139,743125,076

$ 14,789,955

$ 13,082,859

LIABILITIES AND STOCKHOLDERS EQUITY Liabilities

Customer accounts

Transaction deposit accounts????????????????????? $

5,315,781

$ 3,540,842

Time deposit accounts???????????????????????… 5,449,8995,549,429

10,765,680 9,090,271

FHLB advances??????????????????????????? 1,930,000 1,930,000

Advance payments by borrowers for taxes and insurance??????????? 28,513 42,443

Accrued expenses and other liabilities??????????????????? 75,12782,510

12,799,320 11,145,224

Stockholders Equity

Common stock, $1.00 par value, 300,000,000 shares authorized;

133,332,272 and 132,572,475 shares issued; 100,296,268 and

102,484,671 shares outstanding???????????????????? 133,332 132,573

Paid-in capital???????????????????????????? 1,638,070 1,625,051

Accumulated other comprehensive income, net of taxes???????????? 24,421 6,378

Treasury stock, at cost; 33,036,004 and 30,087,804 shares??????????? (485,048) (420,817) Retained earnings??????????????????????????? 679,860 594,450

1,990,635 1,937,635

CONSOLIDATED FINANCIAL HIGHLIGHTS

$ 14,789,955

$ 13,082,859

Common stockholders equity per share?????????????????? $ 19.85 $ 18.91

Tangible common stockholders equity per share???????????????? 16.82 16.33

Stockholders equity to total assets???????????????????? 13.46% 14.81% Tangible common stockholders equity to tangible assets???????????? 11.64 13.05

Weighted average rates at period end

Loans and mortgage-backed securities?????????????????? 4.19% 4.34% Total earning assets????????…????????????????? 3.64 3.92

Customer accounts?????????????????????????? 0.53 0.69

Borrowings????????????????????????????? 3.52 3.52

Total costing liabilities???????????????????.????? 1.05 1.19

Interest rate spread??????????????????????..??? 2.65 2.73

– 1 –

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

INTEREST INCOME

Quarter Ended June 30, Nine Months Ended June 30,

201420132014 2013(In thousands, except per share data)

Loans amp; covered assets……………………………………………………………………. $

108,089 $

112,932

$ 321,650

$ 342,654

Mortgage-backed securities………………………………………………………………. 20,507 11,951 60,947 34,325

Investment securities and cash equivalents…………………………………………… 6,4153,29316,0239,010

135,011 128,176 398,620 385,989

INTEREST EXPENSE

Customer accounts…………………………………………………………………………… 14,238 16,385 44,517 51,851

FHLB advances and other borrowings………………………………………………… 17,49417,07551,87750,966

31,732 33,460 96,394 102,817

Net interest income………………………………………………………………………… 103,279 94,716 302,226 283,172

Provision (reversal) for loan losses…………………………………………………….. (3,000) -(11,936) 3,600

Net interest income after provision for loan losses……………………………. 106,279 94,716 314,162 279,572

Other Income………………………………………………………………………………….. 8,0725,05920,56216,062

8,072 5,059 20,562 16,062

OTHER EXPENSE

Compensation and benefits………………………………………………………………… 28,946 24,582 81,908 68,731

Occupancy …………………………………………………………………………………….. 6,060 4,530 17,668 13,801

FDIC premiums ……………………………………………………………………………… 2,978 2,831 8,679 9,280

Information technology ……………………………………………………………………. 3,505 2,371 10,365 7,661

Amortization of intangible assets ………………………………………………………. 1,052 660 2,601 1,386

Other……………………………………………………………………………………………… 10,7526,63628,25020,214

53,293 41,610 149,471 121,073

Gain (loss) on real estate acquired through foreclosure, net……………………. (2,056) 176(3,454) (7,145) Income before income taxes………………………………………………………………. 59,002 58,341 181,799 167,416

Income taxes provision……………………………………………………………………… 21,09221,00364,99658,818

NET INCOME………………………………………………………………………………. $

37,910 $

37,338

$ 116,803

$ 108,598

PER SHARE DATA

Basic earnings…………………………………………………………………………………. $

.38 $

.36 $

1.15 $

1.03

Diluted earnings………………………………………………………………………………. .37 .36 1.14 1.03

Cash Dividends per share…………………………………………………………………. .11 .09 .31 .26

Basic weighted average number of shares outstanding………………………….. # # # Diluted weighted average number of shares outstanding,

including dilutive stock options………………………………………………………… # # #

PERFORMANCE RATIOS

Return on average assets…………………………………………………………………… 1.04% 1.15% 1.10% 1.12% Return on average common equity……………………………………………………… 7.64% 7.73% 7.91% 7.55% Net interest margin…………………………………………………………………………… 3.05% 3.15% 3.06% 3.15%

– 2 –


UPDATE 1-Malaysia c. bank raises rates to contain debt, inflation

July 16, 2014

Property Loans

Comments Off on UPDATE 1-Malaysia c. bank raises rates to contain debt, inflation


(Adds analyst comments, details, industrial production)

* Bank Negara raises policy rate to 3.25 pct

* Says sees exports staying strong

* Domestic demand seen firm, but inflation contained –
c.bank

By Yantoultra Ngui and Al-Zaquan Amer Hamzah

KUALA LUMPUR, July 10 (Reuters) – Malaysias central bank
raised its key interest rate for the first time in more than
three years on Thursday, as widely expected, to help temper
inflation and rising consumer debt.

Strong domestic consumption has helped underpin growth in
the Southeast Asian economy, but rising household debt levels
are posing an increasing risk when global interest rates rise.

Bank Negara Malaysia (BNM) hiked its overnight policy rate
by 25 basis points to 3.25 percent, after keeping it steady
since mid-2011. It had hinted of a monetary policy tightening to
counter the build-up of financial imbalances at its last
meeting in May.

On Thursday, it said that the normalisation of monetary
policy was needed to ward off risks of financial and economic
imbalances that undermine growth. It said that its new stance
remained supportive of the economy, which it saw showing
continued strength in exports and private sector activity.

Going forward, the overall growth momentum is expected to
be sustained, it said in its statement accompanying the
decision.

The economy grew at a robust pace of 6.2 percent in the
first quarter from a year earlier. The majority of economists
polled by Reuters had anticipated a 25-basis-point hike as
economic conditions at home and abroad improve and inflation
stays high.

Many analysts expect interest rates to rise one more time
before the end of the year due to inflationary pressure and
robust growth. Industrial output grew at its fastest pace in
three months in May, data released earlier on Thursday showed.
ID:nK7N0NM00P]

We expect another hike in September because the momentum is
still there, said Wellian Wiranto, an economist at OCBC Bank in
Singapore. Even after the hike, theres a risk that inflation
will pick up.

Economists had expected the rate hike following strong
growth and the continued increase in housing loan approvals.
Property loans form more than half of the countrys household
debt, which is now at a lofty 86.8 percent of GDP.

Malaysias household debt has risen more than 25 percentage
points in just 6 years, as domestic consumption grew on loose
credit.

Many are treating the property market as the new deposit
box that pays higher returns than what banks are offering, DBS
said in a recent research note.

Inflation rose to 3.2 percent in May in contrast to 1.8
percent in June 2013, before the government imposed higher
electricity tariffs, reducing fuel subsidies and eliminating the
sugar subsidy.

Demand driven inflation remains contained, the central
bank added.

Inflation is expected to remain elevated with a possible
fuel price increase later this year and the implementation of a
goods and services tax in April 2015.

The bigger question from the market is what BNM does next,
said Euben Paracuelles, an economist at Nomura in Singapore.

There are clues from the policy statement, theyve left the
door open for more rate hikes this year. Their assessment in
growth is pretty upbeat, but there is still the risk of
financial imbalances.

The ringgit, up around 2.15 percent against the
dollar since the central bank signalled tighter policy on May 8,
turned weaker on Thursday as investors cut bullish positions.

Other regional central banks are also keeping watch over
inflation due to strong domestic demand.

The Philippines is expected to raise interest rates at the
end of July after more than six months of rising inflation.
Indonesia held its key rates steady on Thursday while Thailand
kept its interest rate steady last month as its military
government tries to get the economy back on track.

(Additional reporting by Trinna Leong; Editing by Jacqueline
Wong and Stuart Grudgings)