This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Bank Stocks Turning the Credit Corner

7. Washington Federal

Shares of Washington Federal (WFSL) of Seattle closed at $13.23 Wednesday, down 21% year-to-date. Based on a quarterly payout of six cents, the shares have a dividend yield of 1.81%.

The company had $13.3 billion in total assets as of June 30, with a nonperforming assets ratio of 5.19%, increasing from 5.12% the previous quarter and 5.09% in June 2010, according to SNL Financial.

Washington Federal was included among TheStreet's 10 Big Banks with Solid Revenue because the company's pre-provision net revenue for its fiscal third-quarter ended June 30 increased 68% year-over-year to $68.1 million.

Fiscal third-quarter net income was $30.1 million, or 27 cents a share, increasing from $12.7 million, or 11 cents a share, a year earlier. While the provision for loan losses increased slightly year-over-year, to $21 million, losses on foreclosed real estate declined 74% to $8.2 million.

Net interest income increased 7% year-over-year to $106.1 million. The net interest margin was 3.44%, increasing from 3.14% a year earlier. The fiscal third quarter ROA was 0.90%, according to SNL.

After Washington Federal reported its fiscal third-quarter results in August, Sterne Agee analyst Brett Rabatin reiterated his "Buy" rating for the shares, with a $19 price target, saying "investors should become more focused on names like WFSL in the current environment of pervasively low interest rates."

The shares trade for 10 times the consensus 2012 EPS estimate of $1.34, among analysts polled by FactSet, and 0.9 times their June 30 tangible book value of $14.53, according to SNL.

Out of 13 analysts covering Washington Federal, six rate the shares a buy, while the remaining analysts all have neutral ratings.

5 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
CSE $15.50 -0.51%
BPOP $34.25 0.00%
BAC $15.64 0.00%
FBC $15.02 0.00%
PNC $91.00 0.00%


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs