Washington Federal in Seattle said its profit rose 3.4% to $41.7 million in the three months that ended March 31 as loan growth outweighed higher information technology costs.
The $14.7 billion-asset bank’s earnings per share of 45 cents beat the average estimate of analysts polled by Bloomberg by 5 cents.
Net interest income rose 2.4% to $106.3 million year over year in the period, the second quarter of the bank’s 2016 fiscal year. Net loans receivable rose 13% to $9.5 billion as the net interest margin rose 6 basis points to 3.16%. The company released $1.5 million from its provision for loan losses, after releasing $3.9 million in the year-earlier quarter.
Noninterest income fell 1% to $10.7 million as loan and deposit fee income fell. The company recorded a $3.9 million net gain on real estate owned, versus a $1.5 million gain in the year-earlier quarter.
A 3% increase in noninterest expenses, to $59.2 million, was “driven primarily by” higher IT costs resulting from the implementation of new systems in November, Washington Federal said in a news release Thursday.