Washington Federal Inc (NASDAQ:WAFD) stock rose 2.17% (As on July 14, 11:18:20 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 22. The results were primarily aided by higher revenues and improving loan balances. However, an increase in expenses and higher provisions were the undermining factors. Net income available to common shareholders was $59.6 million, rising 36.3% from the prior-year quarter. The company’s efficiency ratio was 51.63%, down from 58.98% a year ago. At the end of the fiscal third quarter, the return on average common equity was 12.50%, up from 8.71% at the end of the year-earlier quarter. Return on average assets was 1.25%, up from 0.97%. As of Jun 30, 2022, net loans receivable amounted to $15.6 billion, up 3.1% from the end of the prior quarter. Total customer deposits were $16 billion, down from $16.4 billion as of Mar 31, 2022.

WAFD in the first quarter of FY 22 has reported the adjusted earnings per share of 91 cents, beating the analysts’ estimates for the adjusted earnings per share of 79 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 19.4 percent to $169.3 million in the first quarter of FY 22, beating the analysts’ estimates for revenue of $159 million. Net interest income was $151.7 million, up 18% from the year-earlier period. The net interest margin was 3.22%, rising 40 basis points (bps).

Moreover, as of Jun 30, 2022, the allowance for credit losses (including reserve for unfunded commitments) was 1.08% of gross loans outstanding, down 18 bps year over year. However, the ratio of non-performing assets to total assets was 0.25%, up 2 bps. In the reported quarter, provision for credit losses was $1.5 million against a release of $2 million in the year-ago quarter. Total assets were $20.2 billion as of June 30, 2022, compared to $19.7 billion at September 30, 2021, primarily due to the $1.7 billion increase in loans receivable funded by continued growth in customer deposits and the $1.5 billion decline in cash. Investment securities had increased by $124 million since September 30, 2021.

In addition, Borrowings from the Federal Home Loan Bank (“FHLB”) totaled $1.70 billion as of June 30, 2022, a decrease from $1.72 billion at September 30, 2021. The weighted average effective interest rate of FHLB borrowings was 1.43% as of June 30, 2022, a decrease from 1.51% at September 30, 2021.