Washington Federal in Seattle reported higher profit in its fiscal fourth quarter, citing a record level of commercial loan originations.
For the quarter that ended Sept. 30, net income at the $14.6 billion-asset company rose 4.8%, to $42.5 million. Earnings per share climbed nearly 9%, to 45 cents, 6 cents better than the average estimate of analysts polled by Bloomberg.
Net interest income, before the provision for loan losses, rose 3.3%, to $106.9 million. Net loans receivable rose 11.7%, to $9.1 billion. The net interest margin widened 19 basis points, to 3.19%.
Noninterest income rose 23%, to $12.4 million, on higher loan and deposit fees.
Noninterest expense rose 4.9% to $57.2 million on higher employee compensation, FDIC premiums and technology services. Compensation costs increased after Washington Federal acquired 74 Bank of America branches in Washington, Oregon, Idaho, New Mexico, Arizona and Nevada in May 2014.