Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities
Common Stock
The Company’s common stock is traded on the Nasdaq Global Select Market of The Nasdaq Stock Market LLC under the symbol “WAFD.” At September 30, 2022, the number of shareholders of record was 1,134. This figure does not represent the actual number of beneficial owners of common stock because shares are frequently held in “street name” by securities dealers and others for the benefit of individual owners who may vote the shares.
Additional information about stock options and other equity compensation plans is included in Note P to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data” of this report.
The Company’s ability to pay dividends is subject to bank regulatory requirements, including (but not limited to) the capital adequacy regulations and policies established by the Board of Governors of the Federal Reserve System. The Company’s Board of Directors' dividend policy is to review our financial performance, capital adequacy, regulatory compliance and cash resources on a quarterly basis, and, if such review is favorable, to declare and pay a quarterly cash dividend to common shareholders.
The Company’s 4.875% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A (the “Series A Preferred”), ranks senior to the Company’s common stock with respect to payment of dividends, and dividends (if declared) accrue and are payable on the Series A Preferred a rate of 4.875% per annum, payable quarterly, in arrears. While the Series A Preferred is outstanding, unless the full dividend for the preceding quarterly period is paid in full, or declared and a sum set aside, no dividend may be declared or paid on the Company’s common stock.
Issuer Purchases of Equity Securities
The Company’s stock repurchase program was publicly announced by the board of directors on February 3, 1995 and has no expiration date. Under this program, a total of 76,956,264 shares of the Company’s common stock have been authorized for repurchase. The following table shows the share repurchases made for the three months ended September 30, 2022.
Period Total Number of
Shares Purchased Average Price
Paid Per Share Total Number of
Shares Purchased
as Part of Publicly
Announced Plan Maximum
Number of Shares
That May Yet Be
Purchased Under
the Plan at the
End of the Period
July 1, 2022 to July 31, 2022 570 $ 30.03 570 3,725,304
August 1, 2022 to August 31, 2022 309 34.68 309 3,724,995
September 1, 2022 to September 30, 2022 651 31.26 651 3,724,344
Total 1,530 $ 31.49 1,530 3,724,344
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Performance Graphs
The following graphs compare the cumulative total return to Washington Federal shareholders (stock price appreciation plus reinvested dividends) to the cumulative total return of the Nasdaq Stock Market Index (U.S. Companies) and the KBW Bank Index for the five year period ended September 30, 2022, and since Washington Federal first became a publicly traded company on November 9, 1982, respectively. The graphs assume that $100 was invested on September 30, 2017, and November 9, 1982, respectively, in Washington Federal Common Stock, the Nasdaq Stock Market Index and the Nasdaq Financial Stocks Index, and that all dividends were reinvested. Management of Washington Federal cautions that the stock price performance shown in the graphs below should not be considered indicative of potential future stock price performance.
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Item 6. Selected Financial Data
Five-Year Summary of Selected Consolidated Financial Data
Year ended September 30, 2022 2021 2020 2019 2018
(In thousands, except per share data)
Interest income $ 666,359 $ 591,610 $ 621,265 $ 671,466 $ 607,083
Interest expense 71,770 86,501 151,757 190,406 134,944
Net interest income 594,589 505,109 469,508 481,060 472,139
Provision (release) for credit losses 3,000 500 21,750 (1,650) (5,450)
Other income 67,023 60,988 86,986 63,128 43,976
Other expense 358,575 332,459 315,558 283,063 264,322
Income before income taxes 300,037 233,138 219,186 262,775 257,243
Income taxes 63,707 49,523 45,748 52,519 53,393
Net income 236,330 183,615 173,438 210,256 203,850
Dividends on preferred stock 14,625 10,034 — — —
Net income available to common shareholders $ 221,705 $ 173,581 $ 173,438 $ 210,256 $ 203,850
Return on average assets 1.17 % 0.95 % 1.00 % 1.28 % 1.31 %
Return on average common equity 11.70 % 8.69 % 8.63 % 10.46 % 10.16 %
Average equity to average assets 9.40 % 10.34 % 11.62 % 12.29 % 12.85 %
Dividend payout ratio 28.02 % 38.08 % 38.50 % 30.27 % 27.92 %
Per common share data
Basic earnings $ 3.40 $ 2.39 $ 2.26 $ 2.61 $ 2.40
Diluted earnings 3.39 2.39 2.26 2.61 2.40
Cash dividends 0.95 0.91 0.87 0.79 0.67
September 30, 2022 2021 2020 2019 2018
($ in thousands)
Total assets $ 20,772,131 $ 19,650,574 $ 18,794,055 $ 16,474,910 $ 15,865,724
Loans receivable, net 16,113,564 13,833,570 12,792,317 11,930,575 11,477,081
Mortgage-backed securities 1,359,262 972,852 1,674,090 2,426,039 2,524,923
Investment securities 1,155,074 1,531,432 1,281,240 503,183 415,454
Cash and cash equivalents 683,965 2,090,809 1,702,977 419,158 268,650
Customer deposit accounts 16,029,570 15,542,112 13,779,624 11,990,764 11,387,146
FHLB advances 2,125,000 1,720,000 2,700,000 2,250,000 2,330,000
Total shareholders’ equity 2,274,260 2,126,064 2,014,133 2,032,995 1,996,908
Number of
Customer deposit accounts 416,963 426,145 434,686 450,375 449,339
Loans 33,103 34,949 41,623 37,551 37,992
Offices 207 219 238 238 235
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.