WASHINGTON FEDERAL INC - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

file	filename
EX-99.1 - EXHIBIT 99.1 - WASHINGTON FEDERAL INC	exhibit991_jun2014earnings.htm
8-K - 8-K - WASHINGTON FEDERAL INC	wafd8-k_jul1520141.htm

Washington Federal, Inc.

Fact Sheet

June 30, 2014

($ in Thousands)



Exhibit 99.2
	12/13 QTR						3/14 QTR					6/14 QTR

Loan Loss Reserve - Total	$	118,158					$	114,931				$	114,150
General	116,552						114,096					$	114,090
Specific	1,606						835					60
Allowance as a % of Gross Loans	1.46		%				1.40		%			1.35		%

Regulatory Capital Ratios (excludes holding co.)
Tangible	1,615,112				12.01%		1,653,499				11.74%	1,652,787			11.58%
Tier 1 Risk Based	1,615,112				23.80%		1,653,499				23.99%	1,652,787			23.14%
Risk Based	1,700,453				25.06%		1,740,488				25.25%	1,743,057			24.41%

	12/13 QTR			12/13 YTD			3/14 QTR			3/14 YTD		6/14 QTR			6/14 YTD
Loan Originations - Total	$	500,601			$	500,601	$	410,145			$910,746	$	596,623		$1,507,369
Single-Family Residential	176,277				176,277		123,806				300,083	176,218			476,301
Construction - Speculative	44,540				44,540		34,587				79,127	37,365			116,492
Construction - Custom	86,651				86,651		73,008				159,659	83,040			242,699
Land - Acquisition & Development	10,485				10,485		11,277				21,762	23,377			45,139
Land - Consumer Lot Loans	2,222				2,222		1,981				4,203	3,024			7,227
Multi-Family	58,827				58,827		52,836				111,663	77,546			189,209
Commercial Real Estate	34,365				34,365		43,884				78,249	87,503			165,752
Commercial & Industrial	77,469				77,469		57,356				134,825	93,820			228,645
HELOC	9,677				9,677		10,890				20,567	14,323			34,890
Consumer	88				88		520				608	407			1,015

Purchased Loans (including acquisitions)	$	67,099			$	67,099	$	33,712			100,811	$	98,741		$199,552

Net Loan Fee and Discount Accretion	$	6,298			$	6,298	$	5,977			12,275	$	7,635		$19,910

Washington Federal, Inc.

Fact Sheet

June 30, 2014

($ in Thousands)



	12/13 QTR			12/13 YTD				3/14 QTR			3/14 YTD					6/14 QTR			6/14 YTD
Repayments
Loans	$	486,143			$	486,143		$	391,068		$	877,211				$	454,107				$1,331,318
MBS	68,761				68,761			73,041			141,802					92,610					234,412

MBS Premium Amortization	$	1,674			$	1,674		$	1,972		$	3,646				$	2,367				$	6,013

Loan Servicing Fee Income	$	2,046			$	2,046		$	1,324		$	3,370				$	2,297		$	5,667
Other Fee Income	1,949				1,949			3,515			5,464					4,228			9,692
Total Fee Income	$	3,995			$	3,995		$	4,839		8,834					$	6,525		15,359

Efficiency
Operating Expenses/Average Assets	1.36		%		1.36		%	1.43		%	1.40				%	1.47		%	1.41				%
Efficiency Ratio	42.38				42.38			48.50			45.49					47.86			46.31
Amortization of Intangibles	$	821			$	821		$	728		$	1,549				$	1,052		$	2,601

EOP Numbers
Shares Issued and Outstanding	102,329,576							101,763,415								100,296,268

Share repurchase information
Remaining shares auth. for repurchase	9,017,934				9,017,934			8,424,634					8,424,634			6,924,634					6,924,634
Shares repurchased	854,900				854,900			593,300					1,448,200			1,500,000					2,948,200
Average share repurchase price	$	22.16			$	22.16		$	21.63				$	21.94		$	21.64				$	21.79

Washington Federal, Inc.

Fact Sheet

June 30, 2014

($ in Thousands)



Tangible Common Book Value	12/13 QTR			3/14 QTR			6/14 QTR
$ Amount	$	1,653,965		$	1,680,468		$	1,686,652
Per Share	16.16			16.51			16.82

# of Employees	1,848			1,846			1,948
Tax Rate - Going Forward	35.75		%	35.75		%	35.75		%

Investments
Available-for-sale:
Agency MBS	$	1,633,643		$	1,709,872		$	1,771,369
Other	1,204,860			1,400,703			1,331,652
	$	2,838,503		$	3,110,575		$	3,103,021
Held-to-maturity:
Agency MBS	$	1,630,936		$	1,611,303		$	1,583,853
Other	—			—			—
	$	1,630,936		$	1,611,303		$	1,583,853

Washington Federal, Inc.

Fact Sheet

June 30, 2014

($ in Thousands)



	AS OF 12/31/13			AS OF 3/31/14			AS OF 6/30/14
Gross Loan Portfolio by Category *	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,436,083	67.1%	$	5,462,093	66.8%	$	5,479,111	64.9%
Construction - Speculative	135,868		1.7	135,001		1.7	126,926		1.5
Construction - Custom	333,954		4.1	354,279		4.3	372,789		4.4
Land - Acquisition & Development	75,506		0.9	77,049		0.9	91,058		1.1
Land - Consumer Lot Loans	122,467		1.5	116,864		1.4	114,573		1.4
Multi-Family	846,115		10.4	869,635		10.6	896,799		10.6
Commercial Real Estate	622,240		7.7	634,457		7.8	693,421		8.2
Commercial & Industrial	354,166		4.4	351,705		4.3	398,181		4.7
HELOC	131,949		1.6	131,852		1.6	136,304		1.6
Consumer	51,961		0.6	48,239		0.6	138,547		1.6
	8,110,309		100.0%	8,181,174		100.0%	8,447,709		100.0%
Less:
ALL	118,158			114,931			114,150
Loans in Process	273,263			264,946			303,084
Discount on Acquired Loans	31,485			29,286			28,480
Deferred Net Origination Fees	35,845			34,902			36,041
Sub-Total	458,751			444,065			481,755
	$	7,651,558		$	7,737,109		$	7,965,954


Net Loan Portfolio by Category *	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,342,080	69.8%	$	5,371,177	69.4%	$	5,392,794	67.7%
Construction - Speculative	78,769		1.0	81,604		1.1	78,359		1.0
Construction - Custom	158,376		2.1	174,987		2.3	198,207		2.5
Land - Acquisition & Development	61,539		0.8	63,572		0.8	67,359		0.8
Land - Consumer Lot Loans	118,134		1.5	113,020		1.5	110,894		1.4
Multi-Family	796,776		10.4	844,007		10.9	863,747		10.8
Commercial Real Estate	591,022		7.7	592,594		7.7	619,228		7.8
Commercial & Industrial	328,538		4.3	323,045		4.2	369,763		4.6
HELOC	128,427		1.7	128,456		1.7	132,766		1.7
Consumer	47,897		0.6	44,647		0.6	132,838		1.7
	$	7,651,558	100.0%	$	7,737,109	100.0%	$	7,965,954	100.0%
* Excludes covered loans

Washington Federal, Inc.

Fact Sheet

June 30, 2014

($ in Thousands)



	AS OF 12/31/13					AS OF 3/31/14					AS OF 6/30/14
Deposits by State	AMOUNT		%		#	AMOUNT		%		#	AMOUNT		%		#
WA	$	5,126,066	49.3	%	82	$	5,142,077	49.7	%	82	$	4,930,348	45.8	%	82
ID	816,400		7.8		31	811,048		7.8		29	817,259		7.6		28
OR	1,870,196		18.0		50	1,840,375		17.8		49	2,002,383		18.6		49
UT	326,829		3.1		10	319,954		3.1		10	314,247		2.9		10
NV	187,681		1.8		4	182,035		1.8		4	377,464		3.5		14
TX	109,258		1.1		5	106,874		1.0		5	105,292		1.0		5
AZ	1,067,681		10.3		23	1,030,346		10.0		23	1,316,324		12.2		36
NM	898,615		8.6		30	912,182		8.8		29	902,363		8.4		29
Total	$	10,402,726	100.0	%	235	$	10,344,891	100.0	%	231	$	10,765,680	100.0	%	253


Deposits by Type	AMOUNT		%			AMOUNT		%			AMOUNT		%
Checking (noninterest)	$	674,824	6.5	%		$	691,577	6.7	%		$	818,273	7.6	%
NOW (interest)	1,227,548		11.8			1,265,041		12.2			1,378,379		12.8
Savings (passbook/stmt)	542,573		5.2			575,440		5.6			620,414		5.8
Money Market	2,268,979		21.8			2,342,263		22.6			2,498,714		23.2
CD's	5,688,802		54.7			5,470,570		52.9			5,449,900		50.6
Total	$	10,402,726	100.0	%		$	10,344,891	100.0	%		$	10,765,680	100.0	%

Deposits greater than $250,000 - EOP	$	1,578,895				$	1,677,326				$	1,776,322

Washington Federal, Inc.

Fact Sheet

June 30, 2014

($ in Thousands)



	AS OF 12/31/13				AS OF 3/31/14				AS OF 6/30/14
Non-Performing Assets	AMOUNT			%	AMOUNT			%	AMOUNT			%
Non-accrual loans:
Single-Family Residential	$	89,075		77.6%	$	81,740		81.6%	$	78,317		83.1%
Construction - Speculative	3,053			2.7	2,132			2.1	1,966			2.1
Construction - Custom	—			—	265			0.3	143			0.2
Land - Acquisition & Development	2,813			2.5	2,113			2.1	2,295			2.4
Land - Consumer Lot Loans	3,548			3.1	3,007			3.0	1,879			2.0
Multi-Family	2,494			2.2	2,199			2.2	2,103			2.2
Commercial Real Estate	11,613			10.1	7,101			7.1	5,442			5.8
Commercial & Industrial	655			0.6	579			0.6	516			0.5
HELOC	471			0.4	441			0.4	970			1.0
Consumer	995			0.9	621			0.6	595			0.6
Total non-accrual loans	114,717			100.0%	100,198			100.0%	94,226			100.0%
Total REO	71,537				60,995				57,352
Total REHI	11,656				13,596				10,779
Total non-performing assets	$	197,910			$	174,789			$	162,357

Total non-performing assets as a
% of total assets	1.37		%		1.22		%		1.10		%

Washington Federal, Inc.

Fact Sheet

June 30, 2014

($ in Thousands)



	12/13 QTR			3/14 QTR			6/14 QTR
	AMOUNT		%	AMOUNT		%	AMOUNT		%
Restructured loans:
Single-Family Residential	$	355,449	85.7	$	348,918	86.1	$	333,814	86.1
Construction - Speculative	9,705		2.3	9,416		2.3	8,554		2.2
Construction - Custom	1,196		0.3	1,196		0.3	1,196		0.3
Land - Acquisition & Development	6,037		1.5	5,164		1.3	5,092		1.3
Land - Consumer Lot Loans	13,411		3.2	13,270		3.3	12,922		3.3
Multi-Family	8,701		2.1	7,727		1.9	5,266		1.4
Commercial Real Estate	18,749		4.5	18,107		4.5	19,292		5.0
Commercial & Industrial	44		—	31		—	23		—
HELOC	1,198		0.3	1,198		0.3	1,198		0.3
Consumer	71		—	197		—	236		0.1
Total restructured loans (2)	$	414,561	100.0%	$	405,224	100.0%	$	387,593	100.0%

(2) Restructured loans were as follows:
Performing	$	390,841	94.3%	$	381,849	94.2%	$	361,918	93.4%
Non-accrual *	23,720		5.7	23,375		5.8	25,675		6.6
* Included in "Total non-accrual loans" above	$	414,561	100.0%	$	405,224	100.0%	$	387,593	100.0%

Washington Federal, Inc.

Fact Sheet

June 30, 2014

($ in Thousands)



	12/13 QTR					3/14 QTR					6/14 QTR
	AMOUNT			CO %**		AMOUNT			CO %**		AMOUNT			CO %**
Net Charge-offs by Category
Single-Family Residential	$	(6,493	)	(0.48	)%	$	356		0.03	%	$	(2,186	)	(0.16)%
Construction - Speculative	355			1.05		488			1.45		(2		)	(0.01)
Construction - Custom	—			—		—			—		—			—
Land - Acquisition & Development	17			0.09		(214		)	(1.11	)	(85		)	(0.37)
Land - Consumer Lot Loans	220			0.72		231			0.79		86			0.30
Multi-Family	—			—		—			—		—			—
Commercial Real Estate	—			—		73			0.05		8			—
Commercial & Industrial	(173		)	(0.20	)	(2,408		)	(2.74	)	33			0.03
HELOC	—			—		—			—		18			0.05
Consumer	56			0.43		(49		)	(0.41	)	(91		)	(0.26)
Total net charge-offs	$	(6,017	)	(0.30	)%	$	(1,523	)	(0.07	)%	$	(2,219	)	(0.11)%
** Annualized Net Charge-offs divided by Gross Balance

SOP 03-3
Accretable Yield	$	104,808				$	107,199				$	104,239
Non-Accretable Yield	194,794					183,645					179,694
Total Contractual Payments	$	299,602				$	290,844				$	283,933

Interest Rate Risk
One Year GAP				(12.2	)%				(13.9	)%				(10.6	)%
NPV post 200 bps shock*				15.48	%				15.22	%				16.32	%
Change in NII after 200 bps shock*				(5.8	)%				(2.1	)%				(0.5	)%
* Assumes no balance sheet management

CD's Repricing	Amount			Rate		Amount			Rate		Amount			Rate
Within 3 months	$	1,341,855		0.68	%	$	986,727		0.51	%	$	1,286,768		0.60	%
From 4 to 6 months	958,932			0.52		1,233,943			0.62		856,397			0.60	%
From 7 to 9 months	782,531			0.79		520,909			0.82		669,532			0.88	%
From 10 to 12 months	507,249			0.84		637,091			0.92		514,198			0.81	%

Washington Federal, Inc.

Fact Sheet

June 30, 2014

($ in Thousands)



Historical CPR Rates ***
	WAFD	WAFD
Average for Quarter Ended:	SFR Mortgages	GSE MBS

3/31/2012	19.5	27.5
6/30/2012	20.9	30.7
9/30/2012	22.9	30.7
12/31/2012	25.0	18.2
3/31/2013	24.0	21.7
6/30/2013	26.8	17.4
9/30/2013	21.4	15.9
12/31/2013	13.5	8.7
3/31/2014	10.1	8.5
6/30/2014	13.8	10.6

*** The CPR Rate (conditional payment rate) is the rate that is equal to the proportion of the principal of a pool of loans that is paid off prematurely in each period. Also, the comparison is not precise in that Washington Federal is a portfolio lender and not required to follow GSE servicing rules/regulations.

Washington Federal, Inc.

Fact Sheet

June 30, 2014

Delinquency Summary (excludes covered loans)

($ in Thousands)



			AMOUNT OF LOANS		# OF LOANS				% based				% based
TYPE OF LOANS	#LOANS	AVG Size	NET OF LIP & CHG-OFFs		30	60	90	Total	on #		$ Delinquent		on $

June 30, 2014
Single-Family Residential	28,799	190	$	5,476,709	121	77	292	490	1.70	%	$	97,150	1.77	%
Construction - Speculative	437	195	85,412		1	—	2	3	0.69	%	777		0.91	%
Construction - Custom	797	253	201,475		1	—	1	2	0.25	%	187		0.09	%
Land - Acquisition & Development	125	600	74,979		1	—	4	5	4.00	%	2,464		3.29	%
Land - Consumer Lot Loans	1,365	84	114,511		10	1	17	28	2.05	%	3,269		2.85	%
Multi-Family	993	878	872,026		5	1	3	9	0.91	%	3,450		0.40	%
Commercial Real Estate	918	704	646,396		1	—	9	10	1.09	%	3,056		0.47	%
Commercial & Industrial	1,082	368	398,171		6	—	3	9	0.83	%	743		0.19	%
HELOC	2,003	68	136,304		4	3	8	15	0.75	%	1,754		1.29	%
Consumer	7,552	18	138,641		148	69	75	292	3.87	%	2,160		1.56	%
	44,071	185	$	8,144,625	298	151	414	863	1.96	%	$	115,008	1.41	%

March 31, 2014
Single-Family Residential	28,879	189	$	5,459,457	157	56	309	522	1.81	%	$	102,946	1.89	%
Construction - Speculative	469	190	88,954		1	—	2	3	0.64	%	830		0.93	%
Construction - Custom	780	228	178,099		4	—	1	5	0.64	%	1,475		0.83	%
Land - Acquisition & Development	134	524	70,207		—	2	4	6	4.48	%	2,464		3.51	%
Land - Consumer Lot Loans	1,397	84	116,807		6	3	21	30	2.15	%	3,671		3.14	%
Multi-Family	998	854	852,246		1	—	3	4	0.40	%	1,282		0.15	%
Commercial Real Estate	1,142	542	618,580		8	3	12	23	2.01	%	6,396		1.03	%
Commercial & Industrial	975	361	351,692		3	3	3	9	0.92	%	2,015		0.57	%
HELOC	2,050	64	131,853		10	1	4	15	0.73	%	1,512		1.15	%
Consumer	8,466	6	48,334		141	55	71	267	3.15	%	1,676		3.47	%
	45,290	175	$	7,916,229	331	123	430	884	1.95	%	$	124,267	1.57	%

December 31, 2013
Single-Family Residential	28,952	188	$	5,433,051	185	56	339	580	2.00	%	$	114,498	2.11	%
Construction - Speculative	476	184	87,485		1	2	6	9	1.89	%	1,087		1.24	%
Construction - Custom	721	215	154,776		2	—	—	2	0.28	%	166		0.11	%
Land - Acquisition & Development	130	534	69,458		1	1	4	6	4.62	%	2,600		3.74	%
Land - Consumer Lot Loans	1,440	85	122,285		9	3	25	37	2.57	%	4,857		3.97	%
Multi-Family	1,011	808	816,408		3	—	4	7	0.69	%	2,722		0.33	%
Commercial Real Estate	1,173	525	615,534		6	1	21	28	2.39	%	9,578		1.56	%
Commercial & Industrial	993	357	354,139		9	1	3	13	1.31	%	3,000		0.85	%
HELOC	2,046	64	131,949		8	2	7	17	0.83	%	1,260		0.95	%
Consumer	8,850	6	51,961		154	52	80	286	3.23	%	2,276		4.38	%
	45,792	171	$	7,837,046	378	118	489	985	2.15	%	$	142,044	1.81	%

Washington Federal, Inc.

Fact Sheet

June 30, 2014

Average Balance Sheet

($ in Thousands)



		Quarters Ended
		December 31, 2013						March 31, 2014						June 30, 2014
		Average				Average		Average				Average		Average				Average
		Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
Assets
Loans and covered loans		$	7,826,159	$	107,227	5.44	%	$	7,899,864	$	106,334	5.46	%	$	8,040,818	$	108,089	5.39	%
Mortgage-backed securities		3,129,915		19,368		2.46		3,305,428		21,071		2.59		3,341,969		20,507		2.46
Cash & Investments		1,474,296		4,261		1.15		1,915,724		4,540		0.96		2,011,154		6,003		1.20
FHLB & FRB Stock		172,607		402		0.92		170,945		406		0.96		166,522		412		0.99

Total interest-earning assets		12,602,977		131,258		4.13	%	13,291,961		132,351		4.04	%	13,560,464		135,011		3.99	%
Other assets		946,963						1,101,299						988,917

Total assets		$	13,549,940					$	14,393,260					$	14,549,381

Liabilities and Equity
Customer accounts		$	9,538,339	15,499		0.64	%	$	10,355,866	14,780		0.58	%	10,608,318		14,239		0.54	%
FHLB advances		2,030,000		17,447		3.41		1,930,000		16,935		3.56		1,930,000		17,493		3.64
Other borrowings		—		—		—		—		—		—		—		—		—

Total interest-bearing liabilities		11,568,339		32,946		1.13	%	12,285,866		31,715		1.05	%	12,538,318		31,732		1.02	%
Other liabilities		28,618						126,711						26,278

Total liabilities		11,596,957						12,412,577						12,564,596
Stockholders’ equity		1,952,983						1,980,683						1,984,785

Total liabilities and equity		$	13,549,940					$	14,393,260					$	14,549,381

Net interest income				$	98,312					$	100,636					$	103,279

Net interest margin (1)						3.12	%					3.03	%					3.05	%

(1	)	Annualized net interest income divided by average interest-earning assets

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WASHINGTON FEDERAL INC Reports