Day: January 14, 2021

PXD – Pioneer Natural Resources Announces Pricing of Public Offering of $750.0 Million of 0.750% Senior Notes Due 2024, $750.0 Million of 1.125% Senior Notes Due 2026 and $1.0 Billion of 2.150% Senior Notes Due 2031

DALLAS–(BUSINESS WIRE)–Pioneer Natural Resources Company (NYSE:PXD) (“Pioneer” or “the Company”) today announced that it has priced a public offering of $750.0 million of 0.750% Senior Notes that will mature January 15, 2024 (the “2024 Notes”), $750.0 million of 1.125% Senior Notes that will mature January 15, 2026 (the “2026 Notes”) and $1.0 billion of 2.150% Senior Notes that will mature January 15, 2031 (the “2031 Notes”, and together with the 2024 Notes and the 2026 Notes, the “Notes”), pursuant to an effective shelf registration statement that was previously filed with the Securities and Exchange Commission. The price to the public for the 2024 Notes is 99.959% of the principal amount, the price to the public for the 2026 Notes is 99.981% of the principal amount and the price to the public for the 2031 Notes is 99.742% of the principal amount.

The Company intends to use the net proceeds of approximately $2.5 billion from the offering, after deducting underwriting discounts (excluding fees and expenses of the offering), to refinance certain senior notes issued by Parsley Energy, LLC and certain of its subsidiaries (the “Parsley Issuers”).

The refinancing transactions include (i) the redemption of all outstanding 5.375% Senior Notes due 2025 and 5.250% Senior Notes due 2025 issued by the Parsley Issuers, (ii) the redemption of all outstanding 5.875% Senior Notes due 2026 issued by Jagged Peak Energy LLC and (iii) the cash tender offers for any and all of the Parsley Issuers’ 5.625% Senior Notes due 2027 and 4.125% Senior Notes due 2028.

Interest on each of the Notes will be payable on January 15 and July 15 of each year. The first interest payment will be due on July 15, 2021, and will consist of interest from closing to that date. The offering is expected to close on January 29, 2021, subject to the satisfaction of customary closing conditions.

BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and TD Securities (USA) LLC will act as Joint Book-Running Managers for the Offering. When available, a copy of the preliminary prospectus supplement and accompanying base prospectus relating to the Offering may be obtained from: BofA Securities, Inc. at: 200 North College Street, NC1-004-03-43, Charlotte, NC 28255-0001, Attention: Prospectus Department, E-mail: dg.prospectus_requests@bofa.com, Telephone: 1 (800) 294-1322; Citigroup Global Markets Inc. at: Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, E-mail: prospectus@citi.com, Telephone: 1 (800) 831-9146; J.P. Morgan Securities LLC at: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Attention: Prospectus Department, Telephone: 1 (866) 803-9204; or TD Securities (USA) LLC at: 31 West 52nd Street, 2nd Floor, New York, New York 10019, Attention: Syndicate Department, Telephone: 1 (855) 495-9846.

An electronic copy of the preliminary prospectus supplement and accompanying base prospectus may also be obtained at no charge at the Securities and Exchange Commission’s website at www.sec.gov.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering may be made only by means of a prospectus and prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended. The offering will be made pursuant to an effective shelf registration statement, which was previously filed by Pioneer with the Securities and Exchange Commission, and a prospectus supplement and accompanying prospectus, which will be filed by Pioneer with the Securities and Exchange Commission.

Pioneer is a large independent oil and gas exploration and production company, headquartered in Dallas, Texas, with operations in the United States. For more information, visit Pioneer’s website at www.pxd.com.

Cautionary Statement Regarding Forward-Looking Information

Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements and the business prospects of Pioneer are subject to a number of risks and uncertainties that may cause Pioneer’s actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, volatility of commodity prices, product supply and demand, the impact of a widespread outbreak of an illness, such as the COVID-19 pandemic on global and U.S. economic activity, competition, the ability to obtain environmental and other permits and the timing thereof, other government regulation or action, litigation, the costs and results of drilling and operations, availability of equipment, services, resources and personnel required to perform the Company’s drilling and operating activities, access to and availability of transportation, processing, fractionation, refining, storage and export facilities, Pioneer’s ability to implement its business plans or complete its development activities as scheduled, the financial strength of counterparties to Pioneer’s credit facility, investment instruments and derivative contracts and purchasers of Pioneer’s oil, natural gas liquids and gas production, environmental and weather risks, including the possible impacts of climate change, cybersecurity risks, and acts of war or terrorism. These and other risks are described in Pioneer’s Annual Report on Form 10-K for the year ended December 31, 2019, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020, Current Report on Form 8-K filed on January 12, 2021, and other filings with the Securities and Exchange Commission. In addition, Pioneer may be subject to currently unforeseen risks that may have a materially adverse impact on it. Accordingly, no assurances can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking statements. Pioneer undertakes no duty to publicly update these statements except as required by law.

HON – Honeywell teams with North Carolina businesses to help accelerate Covid vaccine rollout

Charlotte, North Carolina-based Honeywell announced Thursday that it’s partnered with a consortium of local businesses to help accelerate the state’s Covid-19 vaccine rollout.

The partnership with Atrium Health, Tepper Sports & Entertainment and the Charlotte Motor Speedway plans to set up mass vaccination sites across the state with the goal of helping the state administer 1 million shots by July 4. Bank of America Stadium, which is home to the Carolina Panthers, and the Charlotte Motor Speedway will be among the vaccination sites, the group said.

“The pharma companies did a great job bringing us these vaccines, and we really need to get them into people’s arms as quickly as we possibly can,” Honeywell CEO Darius Adamczyk said in a “Mad Money” interview. He added that the group has the support of North Carolina Gov. Roy Cooper.

Adamczyk told CNBC’s Jim Cramer that he acknowledges the herculean task of swiftly distributing the vaccine and getting it into people’s arms.

“I don’t think any one entity has all the skill sets to do this, whether it’s the states, whether it’s medical companies, whether it’s stadium owners,” he said. “Frankly, I felt that Honeywell as a fairly complex company that has a lot of tentacles all over the world and operates a lot of manufacturing, we could help in it, lend our expertise.”

The vaccine rollout has so far been slower than expected. Federal officials had aimed to vaccinate 20 million people by the end of December and an additional 30 million people by the end of January. More than 30.6 million doses have been distributed to states, according to data from the Centers for Disease Control and Prevention, but just over 11.1 million have actually been administered.

In North Carolina, more than 268,000 doses have been administered, according to the CDC. The state has a population of about 10.5 million, according to the Census Bureau.

Adamczyk said Thursday he hopes to get the mass vaccination sites in North Carolina up and running to speed up the rollout and to provide a model for other states on how businesses can get involved with the vaccination effort.

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EOSE – INVESTOR ALERT: Law Offices of Howard G. Smith Announces Investigation of Eos Energy Enterprises, Inc. (EOSE) on Behalf of Investors

BENSALEM, Pa.–(BUSINESS WIRE)–Law Offices of Howard G. Smith announces an investigation on behalf of Eos Energy Enterprises, Inc. (“Eos Energy” or the “Company”) (NASDAQ: EOSE) investors concerning the Company’s possible violations of federal securities laws.

On January 14, 2021, Iceberg Research published a report entitled “Eos Energy ($EOSE): Fake Customers Won’t Recharge a Dead Battery,” alleging among other things that Eos Energy has “failed technology and dubious customers.” Citing findings that “the disclosed customers are extremely unlikely to have the financial ability to honour their contracts,” the report “estimate[s] that EOS’ equity is worth only $144M … which represents a 90% downside from its current market cap of $1.5B.”

On this news, Eos Energy’s stock price fell $3.85, or 13.55%, to close at $24.56 per share on January 14, 2021, thereby injuring investors.

If you purchased Eos Energy securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

MCADU – Mountain Crest Acquisition Corp. II Announces Closing of Fully-Exercised Over-Allotment Option in Connection with Its Initial Public Offering

New York, Jan. 14, 2021 (GLOBE NEWSWIRE) — Mountain Crest Acquisition Corp. II (NASDAQ: MCADU, the “Company”) announced today that the underwriters in its initial public offering, pursuant to the terms of the underwriting agreement, fully exercised their over-allotment option and, on January 14, 2021, purchased 750,000 units, generating additional gross proceeds of $7,500,000.  Each unit consists of one share of common stock and one right to receive one-tenth of one share of common stock upon the consummation of an initial business combination.The total aggregate issuance by the Company of 5,750,000 units at a price of $10.00 per unit resulted in total gross proceeds of $57,500,000. The units are listed on The NASDAQ Capital Market (“NASDAQ”) and began trading under the ticker symbol “MCADU” on January 8, 2021. Once the securities comprising the units begin separate trading, the common stock and rights are expected to be listed on NASDAQ under the symbols “MCAD,” and “MCADR,” respectively.Chardan acted as sole book running manager in the offering.A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on January 7, 2021. The offering is being made only by means of a prospectus, copies of which may be obtained by contacting Chardan, 17 State Street, 21st floor, New York, New York 10004. Copies of the registration statement can be accessed through the SEC’s website at www.sec.gov.This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.About Mountain Crest Acquisition Corp. IIForward-Looking Statements
This press release includes forward-looking statements that involve risks and uncertainties. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.


DK – Delek US Confirms Receipt of Letter from CVR Energy

BRENTWOOD, Tenn., Jan. 14, 2021 /PRNewswire/ — Delek US Holdings, Inc. (NYSE: DK) (“Delek US” or the “Company”) today issued the following statement in response to the letter received from and disclosed by CVR Energy, Inc. (“CVR”), a majority owned subsidiary of Icahn Enterprises L.P.:

Delek US welcomes dialogue with its shareholders and constructive input related to enhancing shareholder value. The Company’s Board of Directors and management team are committed to acting in the best interest of all shareholders, and regularly evaluate all available options to create and deliver value.  

Under the leadership of an engaged and experienced Board and management team, Delek US has built a broad portfolio of integrated assets in strategically important geographies, providing substantial value for its customers and partners. We have run at refinery utilization rates above industry average throughout 2020, driven by our positioning in attractive niche markets.  Contributions from recent midstream investments are expected to gain momentum into 2021 and 2022.

In addition to strong operational performance, Delek US has a long history of returning cash to shareholders through dividends and share repurchases, amounting to ~$265 million or 10% of market capitalization in 2019, a higher percentage than any of our peers. Since 2017, we repurchased more than $570 million of shares and paid out $280 million in dividends.  

As Delek US has navigated the COVID-19 crisis and challenging macro environment, the Company has focused on ensuring the health and safety of its workforce and maintaining financial flexibility. The Company took proactive measures by reducing planned capital expenditures and has reduced 2021 planned capital expenditures by approximately 40% versus 2020 levels. We provided guidance reflecting a reduction in our 2020 cost structure relative to 2019 of more than $150 million, with a further $80 million decrease budgeted in 2021. These collective actions have lowered our cash flow breakeven profile without impairing our EBITDA outlook. We also contributed assets to Delek Logistics, divested non-core assets with high operating expenses (Bakersfield Refinery), upsized a term loan by $200 million and eliminated Delek Logistics’ IDRs. While Delek US’s immediate focus is navigating current market volatility, the Company will continue to execute a long-term strategic plan of providing significant value to shareholders through disciplined capital allocation practices.

The Delek US Board comprises seven highly qualified directors, six of whom are independent and all of whom are established industry leaders with deep expertise and experience that align with the Company’s long-term strategy. 

The Delek US Board has been regularly refreshed with independent and diverse directors, two of whom joined the Board in the last two years. Notwithstanding this recent and ongoing refreshment, Delek US remains committed to maintaining a diverse Board with additive perspectives to provide independent oversight and enhance value for all shareholders. The Nominating and Corporate Governance Committee of our Board will evaluate any nominees from CVR if and when they are received and make a recommendation in due course. Delek US shareholders are not required to take action at this time.

Delek US encourages input and engagement from all investors, and looks forward to an ongoing dialogue with all shareholders, including CVR, as the Company continues to execute value creation strategies.

About Delek US Holdings, Inc.
Delek US Holdings, Inc. is a diversified downstream energy company with assets in petroleum refining, logistics, asphalt, renewable fuels and convenience store retailing. The refining assets consist of refineries operated in Tyler and Big Spring, Texas, El Dorado, Arkansas and Krotz Springs, Louisiana with a combined nameplate crude throughput capacity of 302,000 barrels per day.

The logistics operations consist of Delek Logistics. Delek US and its affiliates also own the general partner and an approximate 80 percent limited partner interest in Delek Logistics. Delek Logistics is a growth-oriented master limited partnership focused on owning and operating midstream energy infrastructure assets.

The convenience store retail business operates approximately 253 convenience stores in central and west Texas and New Mexico.

Forward-Looking Statements
This release and other written or oral statements made from time to time by Delek US may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. The words “anticipate”, “believe”, “estimate”, “expect”, “intend”, “will”, “should” and similar expressions, as they relate to us, are intended to identify forward-looking statements. These statements reflect management’s current beliefs, assumptions and expectations and are subject to a number of factors that may cause actual results to differ materially. Such factors include but are not limited to those factors that are set forth in the “Risk Factors” section, the “Legal Proceedings” section, the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section and other sections of our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020, September 30, 2020 and our 2019 Annual Report on Form 10-K, as well as our Current Reports on Form 8-K filed with the Securities and Exchange Commission (“SEC”). Delek US assumes no obligation to update any forward-looking statements as a result of new information or future events or developments, except as required by law.

Additional Information
Delek US, its directors and certain of its executive officers and employees may be deemed to be participants in the solicitation of proxies from the company’s shareholders in connection with the matters to be considered at the Company’s 2021 Annual Meeting. Delek US intends to file a proxy statement and proxy card with the SEC in connection with any such solicitation of proxies from the Company’s shareholders. DELEK US SHAREHOLDERS ARE STRONGLY ENCOURAGED TO READ ANY SUCH PROXY STATEMENT AND ACCOMPANYING PROXY CARD WHEN THEY BECOME AVAILABLE AS THEY WILL CONTAIN IMPORTANT INFORMATION.

Information regarding the ownership of the Company’s stock and other securities by the Company’s directors and executive officers is included in SEC filings on Forms 3, 4, and 5, which can be found through the Company’s website (www.delekus.com) in the section “Investors” or through the SEC’s website at www.sec.gov. Information can also be found in the Company’s other SEC filings, including the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. More detailed and updated information regarding the identity of potential participants, and their direct or indirect interests, by security holdings or otherwise, will be set forth in the proxy statement and other materials to be filed with the SEC in connection with the Company’s 2021 Annual Meeting. Shareholders will be able to obtain any proxy statement, any amendments or supplements to the proxy statement and other documents filed by Delek US with the SEC for no charge at the SEC’s website at www.sec.gov. Copies will also be available at no charge on the Company’s website at www.delekus.com.  

SOURCE Delek US Holdings, Inc.

Related Links

http://www.delekus.com/

PLD – Prologis Announces $25.0 Billion in Investment Activity for 2020

SAN FRANCISCO, Jan. 14, 2021 /PRNewswire/ — Prologis, Inc. (NYSE: PLD), the global leader in logistics real estate, today released its investment activity results for year-end 2020 and announced an important executive promotion. In 2020, Prologis completed $25.0 billion of investment activity on an owned and managed basis.

From the ProLogis – AMB merger in 2011 to year-end 2020, Prologis has completed investment transactions totaling over $131.4 billion in 30 global markets. The company’s investment and development activities have ranged from the largest M&A transactions in the real estate sector to individual off-market deals under $5 million.


Details of investment activity:


Owned and Managed ($B)

FY 2020

20111) – 2020

Mergers & Acquisitions

$17.0

$62.3

Development Starts

$2.7

$22.1

Building Acquisitions2)

$2.0

$10.7

Building & Land Dispositions2)

$1.5

$17.8

Contributions

$1.8

$18.5

Value Creation from Stabilizations (PLD Share)

$0.9

$5.0

1)        Since merger in June 2011

2)        Includes acquisitions and dispositions of other real estate investments

“Despite the disruption and uncertainty of this past year, investment activity across our global platform continued unabated, reflecting the strong demand for high-quality logistics real estate in the best locations around the world,” said Hamid R. Moghadam, chairman and CEO, Prologis. “Our portfolio and development-ready land bank near large population centers continue to be a competitive advantage for our customers.”

Prologis has created a new senior role to bolster its growing global capital deployment efforts, naming long-time Prologis employee Dan Letter as global head of Capital Deployment effective January 1, 2021. Letter reports to Prologis chief investment officer Eugene F. Reilly.

Letter is responsible for the company’s Investment Committee process, capital deployment forecasting, deployment pipeline management and multi-market portfolio acquisitions and dispositions. He will work with Reilly and the company’s Research and Valuations teams to review the company’s investment strategies which now include fast-growing Urban Last Touch® and Customer-Led Development segments. Letter was previously president of the company’s Central Region, a role being assumed by Prologis veteran Carter Andrus. Letter joined AMB in 2004, and has since served in multiple Capital Deployment roles in the Central and West Regions.

“Dan has consistently achieved outstanding financial results, demonstrated excellent leadership and led the way in numerous customer-focused initiatives, including Prologis’ global Urban Last Touch® program and its digital transformation,” said Reilly. “This new role places more senior-level resources behind our investment activities globally at a time when the logistics real estate sector is becoming more complex and attracting greater demand from our customers and investors.”  

ABOUT PROLOGIS

Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of September 30, 2020, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 976 million square feet (91 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 5,500 customers principally across two major categories: business-to-business and retail/online fulfillment.

FORWARD-LOOKING STATEMENTS

The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate as well as management’s beliefs and assumptions. Such statements involve uncertainties that could significantly impact our financial results. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” and “estimates,” including variations of such words and similar expressions, are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to rent and occupancy growth, development activity, contribution and disposition activity, general conditions in the geographic areas where we operate, our debt, capital structure and financial position, our ability to form new co-investment ventures and the availability of capital in existing or new co-investment ventures — are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and, therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) national, international, regional and local economic and political climates; (ii) changes in global financial markets, interest rates and foreign currency exchange rates; (iii) increased or unanticipated competition for our properties; (iv) risks associated with acquisitions, dispositions and development of properties; (v) maintenance of real estate investment trust status, tax structuring and changes in income tax laws and rates; (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings; (vii) risks related to our investments in our co-investment ventures, including our ability to establish new co-investment ventures; (viii) risks of doing business internationally, including currency risks; (ix) environmental uncertainties, including risks of natural disasters; (x) risks related to the current coronavirus pandemic; and (xi) those additional factors discussed in reports filed with the Securities and Exchange Commission by us under the heading “Risk Factors.” We undertake no duty to update any forward-looking statements appearing in this document except as may be required by law.

SOURCE Prologis, Inc.

Related Links

http://www.prologis.com

WAFD – Washington Federal Announces Quarterly Earnings Per Share Of $0.51

SEATTLE–(BUSINESS WIRE)–Washington Federal, Inc. (Nasdaq: WAFD) (the “Company”), parent company of Washington Federal Bank, N.A. (“WaFd Bank”), today announced quarterly earnings of $38,951,000 or $0.51 per diluted share for the quarter ended December 31, 2020, compared to $67,866,000 or $0.86 per diluted share for the quarter ended December 31, 2019, a $0.35 or 41% decrease in fully diluted earnings per share. Return on equity for the quarter ended December 31, 2020 was 7.65% compared to 13.46% for the quarter ended December 31, 2019. Return on assets for the quarter ended December 31, 2020 was 0.83% compared to 1.66% for the same quarter in the prior year.

President and Chief Executive Officer Brent J. Beardall commented, “We are pleased to report a strong start to our new fiscal year with record loan production, solid core deposit growth, strong asset quality and expansion of our net interest margin. Considering the ongoing turbulence in the world around us, both politically and economically, having a balance sheet with $1.8 billion in cash and $2.1 billion in equity provides significant flexibility to adapt and serve our clients. It is hard to believe that the majority of our teams have been serving our clients remotely for over nine months and we want to thank both our staff and our clients for working together to find solutions – while staying safe. We are appreciative of the government stimulus being provided to help those that have been most impacted and look forward to assisting small businesses with the Paycheck Protection Program’s (“PPP”) second round of funding in the next few weeks.”

Total assets were $19.1 billion as of December 31, 2020, compared to $18.8 billion at September 30, 2020, as investment securities increased $114 million and loans receivable increased by $89 million. Cash was also $128 million higher as a result of the large increase in customer deposits noted below.

Customer deposits totaled $14.2 billion as of December 31, 2020, an increase of $387 million or 2.8% since September 30, 2020. Transaction accounts increased by $575 million or 5.9% during that period, while time deposits decreased $188 million or 4.7%. The shift in deposit mix has been a result of a deliberate deposit pricing and customer growth strategy and the focus on transaction accounts is intended to lessen sensitivity to rising interest rates and manage interest expense. As of December 31, 2020, 73.3% of the Company’s deposits were in transaction accounts, up from 71.2% at September 30, 2020. Core deposits, defined as all transaction accounts and time deposits less than $250,000, totaled 95.9% of deposits at December 31, 2020.

Borrowings from the Federal Home Loan Bank (“FHLB”) totaled $2.6 billion as of December 31, 2020, a decrease of $100 million since September 30, 2020. The decrease was due to the termination of a hedged FHLB borrowing that had an effective interest rate of 1.39%. The weighted average interest rate of FHLB borrowings was 1.82% as of December 31, 2020, versus 1.79% at September 30, 2020.

The Company had strong loan originations of $1.92 billion for the first fiscal quarter 2021, an increase of 40% from the $1.37 billion of originations in the same quarter one year ago. Largely offsetting loan originations in each of these quarters were loan repayments of $1.60 billion and $1.30 billion, respectively. Commercial loans represented 75% of all loan originations during the first fiscal quarter of 2021 and consumer loans accounted for the remaining 25%. The Company views organic loan growth funded by low-cost core deposits as the highest and best use of its capital. Commercial loans are preferable as they generally have floating interest rates and shorter durations. The weighted average interest rate on the loan portfolio was 3.64% as of December 31, 2020, a decrease from 3.71% as of September 30, 2020, due primarily to payoffs of loans at higher than market interest rates and new loans originated at market rates.

Credit quality is being monitored closely and the economic impacts of the pandemic will become clearer over time. As of December 31, 2020, non-performing assets remained low from a historical perspective and totaled $66.5 million, or 0.35% of total assets, compared to 0.24% at September 30, 2020. The change was due to non-accrual loans increasing by $29.4 million, or 101%, since September 30, 2020. Delinquent loans increased to 0.52% of total loans at December 31, 2020, compared to 0.24% at September 30, 2020. The allowance for credit losses (including the reserve for unfunded commitments) totaled $197 million as of December 31, 2020, and was 1.33% of gross loans outstanding (1.39% when excluding PPP loans for which it was determined that no allowance was necessary due to the government guarantee), as compared to $192 million, or 1.33% of gross loans outstanding, at September 30, 2020. Net recoveries were $1.7 million for the first fiscal quarter of 2021, compared to net recoveries of $2.6 million for the prior year same quarter. The Company has recorded net recoveries in 28 of the last 30 quarters.

The Company recorded a provision for credit losses of $3.0 million in the first fiscal quarter of 2021, compared to a release of allowance for credits losses of $3.8 million in the same quarter of fiscal 2020. The provision in the current quarter is primarily due to reserving for new loan originations and changes in composition of the loan portfolio.

On November 20, 2020, the Company paid a regular cash dividend of $0.22 per share, which represented the 151st consecutive quarterly cash dividend. During the quarter, the Company repurchased 32,956 shares, related to tax withholding on employee equity awards, of common stock at a weighted average price of $21.29 per share and has authorization to repurchase 4,594,275 additional shares. The Company varies the size and pace of share repurchases depending on several factors, including share price, lending opportunities and capital levels. Since September 30, 2020, tangible common shareholders’ equity per share increased by $0.58, or 2.6%, to $23.10 and the ratio of tangible common equity to tangible assets was 9.34% as of December 31, 2020.

Net interest income was $121 million for the first fiscal quarter of 2021, an increase of $0.8 million or 0.7% from the same quarter in the prior year. Average interest-earning assets increased $2.4 billion or 15.58% from the prior year while average interest-bearing liabilities increased $1.8 billion or 14.20%. The average rate earned on interest-earning assets declined by 97 basis points while the average rate paid on interest-bearing liabilities declined by 67 basis points. Net interest margin of 2.75% in the first fiscal quarter of 2021 was up from 2.67% in the prior quarter and down from 3.15% for the same quarter in the prior year. The compression in the net interest margin since the prior year same quarter is primarily due to the rapid drop in short-term rates by the Federal Reserve Bank in response to the COVID-19 pandemic which resulted in the changes in average rates noted above.

Total other income was $13.9 million for the first fiscal quarter of 2021, a decrease from $46.4 million in the prior year same quarter. The decrease was primarily due to the prior year quarter including a gain of $32.6 million on sales of fixed assets, including a branch property in Bellevue, Washington.

Total other expense was $81.4 million in the first fiscal quarter of 2021, a decrease of $1.2 million, or 1.5%, from the prior year’s quarter. Compensation and benefits costs increased by $6.1 million, or 16.6%, over the prior year quarter primarily due to a 4.8% rise in headcount, annual merit increases as well as higher bonus compensation that reflects increased loan production activity since the prior year. Information technology costs decreased by $5.3 million, primarily due to the prior year quarter including a $5.9 million impairment charge on systems hardware and software. The Company’s efficiency ratio in the first fiscal quarter of 2021 was 60.6%, compared to 57.1% for the same period one year ago. The increase in the efficiency ratio is primarily due to lower other income as described above.

Income tax expense totaled $10.6 million for the first fiscal quarter of 2021, as compared to $18.4 million for the prior year same quarter. The effective tax rate for the quarter ended December 31, 2020 was 21.35% and unchanged from the quarter ended December 31, 2019. The Company’s effective tax rate for the quarter ended December 31, 2020 is different from the statutory rate mainly due to state taxes, tax-exempt income and tax-credit investments.

WaFd Bank is headquartered in Seattle, Washington, and has 234 branches in eight western states. To find out more about WaFd Bank, please visit our website www.wafdbank.com. The Company uses its website to distribute financial and other material information about the Company.

Important Cautionary Statements

The foregoing information should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2020 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

This press release contains statements about the Company’s future that are not statements of historical fact. These statements are “forward looking statements” for purposes of applicable securities laws, and are based on current information and/or management’s good faith belief as to future events. The words “estimate,” “believe,” “expect,” “anticipate,” “project,” and similar expressions signify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance. By their nature, forward-looking statements involve inherent risk and uncertainties, which change over time; and actual performance could differ materially from those anticipated by any forward-looking statements. In particular, any forward-looking statements are subject to risks and uncertainties related to the COVID-19 pandemic and the resulting governmental and societal responses. The Company undertakes no obligation to update or revise any forward-looking statement.

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(UNAUDITED)

 

 

December 31, 2020

 

September 30, 2020

 

(In thousands, except share and ratio data)

ASSETS

 

 

 

Cash and cash equivalents

$

1,830,722

 

 

$

1,702,977

 

Available-for-sale securities, at fair value

2,482,944

 

 

2,249,492

 

Held-to-maturity securities, at amortized cost

586,870

 

 

705,838

 

Loans receivable, net of allowance for loan losses of $170,189 and $166,955

12,881,010

 

 

12,792,317

 

Interest receivable

52,671

 

 

53,799

 

Premises and equipment, net

256,242

 

 

252,805

 

Real estate owned

4,463

 

 

4,966

 

FHLB and FRB stock

137,991

 

 

141,990

 

Bank owned life insurance

229,175

 

 

227,749

 

Intangible assets, including goodwill of $302,707 and $302,707

309,425

 

 

309,906

 

Federal and state income tax assets, net

 

 

5,708

 

Other assets

292,109

 

 

346,508

 

 

$

19,063,622

 

 

$

18,794,055

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Liabilities

 

 

 

Transaction deposits

$

10,381,459

 

 

$

9,806,432

 

Time deposits

3,785,082

 

 

3,973,192

 

Total customer deposits

14,166,541

 

 

13,779,624

 

FHLB advances

2,600,000

 

 

2,700,000

 

Advance payments by borrowers for taxes and insurance

15,539

 

 

49,462

 

Federal and state income tax liabilities, net

8,294

 

 

 

Accrued expenses and other liabilities

211,481

 

 

250,836

 

 

17,001,855

 

 

16,779,922

 

Stockholders’ equity

 

 

 

Common stock, $1.00 par value, 300,000,000 shares authorized; 135,937,934 and 135,727,237 shares issued; 75,867,105 and 75,689,364 shares outstanding

135,938

 

 

135,727

 

Additional paid-in capital

1,680,111

 

 

1,678,843

 

Accumulated other comprehensive income (loss), net of taxes

41,435

 

 

16,953

 

Treasury stock, at cost; 60,070,829 and 60,037,873 shares

(1,238,997)

 

 

(1,238,296)

 

Retained earnings

1,443,280

 

 

1,420,906

 

 

2,061,767

 

 

2,014,133

 

 

$

19,063,622

 

 

$

18,794,055

 

CONSOLIDATED FINANCIAL HIGHLIGHTS

 

 

 

Common stockholders’ equity per share

$

27.18

 

 

$

26.61

 

Tangible common stockholders’ equity per share

23.10

 

 

22.52

 

Stockholders’ equity to total assets

10.82

%

 

10.72

%

Tangible common stockholders’ equity (TCE) to tangible assets (TA)

9.34

%

 

9.22

%

TCE + allowance for credit losses to TA

10.39

%

 

10.26

%

Weighted average rates at period end

 

 

 

Loans and mortgage-backed securities

3.48

%

 

3.55

%

Combined loans, mortgage-backed securities and investments

2.92

 

 

3.03

 

Customer accounts

0.36

 

 

0.48

 

Borrowings

1.82

 

 

1.79

 

Combined cost of customer accounts and borrowings

0.58

 

 

0.69

 

Net interest spread

2.34

 

 

2.34

 

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(UNAUDITED)

 

 

Three Months Ended December 31,

 

2020

 

2019

 

(In thousands, except share and ratio data)

INTEREST INCOME

 

 

 

Loans receivable

$

133,671

 

 

$

142,146

 

Mortgage-backed securities

7,230

 

 

15,612

 

Investment securities and cash equivalents

6,921

 

 

7,066

 

 

147,822

 

 

164,824

 

INTEREST EXPENSE

 

 

 

Customer accounts

14,110

 

 

31,481

 

FHLB advances and other borrowings

13,198

 

 

13,658

 

 

27,308

 

 

45,139

 

Net interest income

120,514

 

 

119,685

 

Provision (release) for credit losses

3,000

 

 

(3,750)

 

Net interest income after provision (release)

117,514

 

 

123,435

 

OTHER INCOME

 

 

 

Loan fee income

2,392

 

 

1,804

 

Deposit fee income

6,026

 

 

6,260

 

Other Income

5,452

 

 

38,312

 

 

13,870

 

 

46,376

 

OTHER EXPENSE

 

 

 

Compensation and benefits

42,723

 

 

36,631

 

Occupancy

9,592

 

 

10,135

 

FDIC insurance premiums

3,263

 

 

2,470

 

Product delivery

4,937

 

 

4,267

 

Information technology

11,831

 

 

17,107

 

Other

9,064

 

 

12,026

 

 

81,410

 

 

82,636

 

Gain (loss) on real estate owned, net

(449)

 

 

(886)

 

Income before income taxes

49,525

 

 

86,289

 

Income tax provision

10,574

 

 

18,423

 

NET INCOME

$

38,951

 

 

$

67,866

 

PER SHARE DATA

 

 

 

Basic earnings per share

$

0.51

 

 

$

0.86

 

Diluted earnings per share

0.51

 

 

0.86

 

Cash dividends per share

0.22

 

 

0.21

 

Basic weighted average shares outstanding

75,792,995

 

78,480,264

Diluted weighted average shares outstanding

75,798,460

 

78,535,299

PERFORMANCE RATIOS

 

 

 

Return on average assets

0.83

%

 

1.66

%

Return on average common equity

7.65

 

 

13.46

 

Net interest margin

2.75

 

 

3.15

 

Efficiency ratio

60.58

 

 

57.05

 

WWOW – Direxion Launches World Without Waste ETF, ‘WWOW'

Thursday has brought the first ETF focused on exposure to a more ESG-based economy. Direxion officially announced the recent launch of the Direxion World Without Waste ETF (WWOW). WWOW invests in 50 companies at the forefront of the move to a circular economy from a linear one.

Until recently, the ‘take-make-consume-waste’ of resources within a linear economy has prevailed. Raw material transformed into a product, and after its utility was over, its lifecycle ended, and it became waste. Alternatively, the regenerative framework provided by a circular economy affords companies the ability to address environmental and sustainability priorities, drive innovation, and push for competitiveness while generating growth.

“Investors have embraced ETFs with exposure to renewable and alternative sources of energy, but a circular economy encapsulates a far broader range of companies,” said David Mazza, Managing Director at Direxion. “WWOW is the first US-listed fund providing direct exposure to companies helping to make a world without waste.”

WWOW seeks investment results, before fees and expenses, which track the Indxx US Circular Economy Index. The Indxx US Circular Economy Index tracks the performance of 50 US-listed companies that are representative of the transformative shift from the linear model of the economy to a circular one. The index includes five sub-themes central to the circular economy, providing investors access to the shifting paradigm in growing segments such as biofuels, solar power, and waste management, along with collaboration and content sharing platforms. The top 10 companies from each sub-theme, by largest total market capitalization, will form the final index.

The Five Sub-Themes Are:

  • Sustainability of Resources: Provide renewable energy – bio-based or fully recyclable input material – to replace single-lifecycle inputs.
  • Resource Recovery: Recover useful resources and energy from disposed of products or byproducts.
  • Life Cycle Extension: Extend the working lifecycle of products and components by repairing, upgrading, and reselling.
  • Sharing Platforms: Enable the increased utilization rate of products through shared access, ownership, and use.
  • Product as a Service: Offer product access, and retain ownership, to internalize the benefits of circular resource productivity.

The top holdings in the Indxx US Circular Economy Index represent large, mid, and small cap firms across a mix of unique sub-industries representative of a world without waste. Many of the holdings focus on the Information Technology sector, with further exposure to the Communication Services, Consumer Discretionary, and Industrials sectors.

Ticker

Name

 Circular Economy Sub-theme

Total Market

Cap ($M)

Weight (%)

JMIA

Jumia Technologies AG

Life Cycle Extension

$3,593.21

8.39%

ENPH

Enphase Energy Inc

Sustainability of Resources

$22,167.58

6.94%

TSLA

Tesla Inc

Sustainability of Resources

$668,905.11

6.76%

ETSY

Etsy Inc

Life Cycle Extension

$22,432.84

4.55%

SNAP

Snap Inc

Sharing Platforms

$74,603.33

3.40%

MELI

MercadoLibre Inc

Life Cycle Extension

$83,386.78

3.15%

SHOP

Shopify Inc

Sharing Platforms

$138,093.33

3.03%

SPOT

Spotify Technology SA

Sharing Platforms

$59,655.18

2.78%

FSLR

First Solar Inc

Sustainability of Resources

$10,483.16

2.49%

OKTA

Okta Inc

Product as a Service

$32,918.05

2.48%

Source: Source: Bloomberg Finance, L.P., Indxx, as of 12.31.2020.