Insurance Journal  May 19  Comment 
Pittsburgh-based health insurer Highmark Inc. is suing the federal government saying it’s owed about $223 million under the Affordable Care Act for losses in 2014. Highmark filed the lawsuit in a Washington federal claims court on Tuesday. The...
Insurance Journal  Sep 22  Comment 
Maurice “Hank” Greenberg’s Starr International Co. can move forward with a lawsuit claiming the U.S. owes it a $38 million tax refund. A Washington federal judge on Friday rejected government claims that the reason for denying the refund...
New York Times  Jul 22  Comment 
Federal investigators said Tuesday that thousands of doctors and other health care providers had signed up to bill Medicare using “questionable addresses” like mailbox rental stores and vacant lots.
Benzinga  Jun 25  Comment 
In a report rolled out Thursday, Macquarie analyst Russell Gunther remained cautious regarding Washington Federal Inc. (NASDAQ: WAFD), reiterating and Underperform rating and $18 price target. The company has managed to deliver solid returns...
Benzinga  Apr 16  Comment 
DA Davidson downgraded Washington Federal Inc. (NASDAQ: WAFD) from Buy to Neutral. The price target for Washington Federal has been lowered from $25.00 to $24.00. Washington Federal shares have gained 1.87% over the past 52 weeks, while the...


Washington Federal (NASDAQ: WFSL) is a savings and loan company that operates commercial banking operations in the United States. Its subsidiary, Washington Federal Savings Bank, operates in the state of Washington.[1] In the wake of the 2008 financial crisis, Washington Federal faces unfamiliar challenges as the credit market remains uncertain and the Dodd-Frank Act changes the financial sector.

Business Growth

In 2010, net income increased 192% to $118.7 million from $40.7 million in 2009.[2] While increased loan volumes increased revenues, the primary drivers of profitability in 2010 were gains from an acquisition of Horizon and tax credits; the profit from both were about equal to the $78 million net income increase.[3]

Trends & Forces

Uncertainty in credit market affects lending revenues

WFSL's primary source of revenue is its lending practice - like any commercial bank, Washington Federal pays customers interest on their deposits so that it can lend out their money at a higher rate. The net interest margin metric acts as proxy for the bank's ability to earn interest on its assets. In the midst of credit market uncertainty following the 2008 financial crisis, the company's ability to lend profitably may be reduced and its net interest margin may decrease.

Dodd-Frank regulation may change investor sentiment

The Dodd-Frank Wall Street Reform and Consumer Protection Act, the government's response to the 2008 Financial crisis, significantly impacts the way the financial sector operates. Its allowance for government support of institutions identified as "too big to fail" may increase the value of identified financial institutions while decreasing the prospects and equity value of smaller financial institutions like Washington Federal. In addition, the Act increases financial regulation which may restrict Washington Federal's operations and increase back office expenses related to compliance.


Washington Federal competes with other commercial banks in Washington including competing regional banks and national competitors:

Washington Federal and its competitors increase revenues and income by increasing their deposit and loan volume. The industry is competitive as companies increase their deposit interest rates while decreasing their loan rates and fees to attract customers.


  1. WFSL 2010 10-K pg. 3  
  2. WFSL 2010 10-K pg. 1 (EX-13)  
  3. WFSL 2010 10-K pg. 11 (EX-13)  
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