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

Attached files

file	filename
8-K - 8-K - WASHINGTON FEDERAL INC	dec312015wafdearningsrelea.htm
EX-99.1 - EXHIBIT 99.1 - WASHINGTON FEDERAL INC	exhibit991_dec2015earnings.htm

Washington Federal, Inc.

Fact Sheet

December 31, 2015

($ in Thousands)



Exhibit 99.2
	6/15 QTR					9/15 QTR					12/15 QTR

Loan Loss Reserve - Total	$	107,977				$	109,914				$	110,986
General and Specific Allowance	105,611					106,829					107,901
Commitments Reserve	2,366					3,085					3,085
Allowance as a % of Gross Loans	1.17		%			1.13		%			1.10		%

Regulatory Capital Ratios
Common equity tier 1 risk-based	1,630,586				19.35%	1,652,569				18.73%	1,676,263				18.47%
Tier 1 risk-based	1,630,586				19.35%	1,652,569				18.73%	1,676,263				18.47%
Total risk-based (excludes holding co.)	1,736,830				20.61%	1,763,171				19.98%	1,787,760				19.70%
Tier 1 leverage (excludes holding co.)	1,630,586				11.49%	1,652,569				11.66%	1,676,263				11.69%

	6/15 QTR			6/15 YTD		9/15 QTR			9/15 YTD		12/15 QTR			12/15 YTD
Loan Originations - Total	$	752,787		$2,023,247		$	1,080,268		$3,103,515		$	963,319			$	963,319
Single-Family Residential	196,613			494,548		211,193			705,741		132,536				132,536
Construction - Speculative	72,466			171,675		91,857			263,532		129,536				129,536
Construction - Custom	92,120			247,928		117,292			365,220		88,761				88,761
Land - Acquisition & Development	10,901			57,041		21,777			78,818		5,722				5,722
Land - Consumer Lot Loans	7,880			12,616		8,806			21,422		5,268				5,268
Multi-Family	123,886			260,085		89,357			349,442		132,999				132,999
Commercial Real Estate	108,226			370,564		230,046			600,610		180,788				180,788
Commercial & Industrial	121,632			356,231		286,078			642,309		270,372				270,372
HELOC	18,622			50,969		23,486			74,455		16,702				16,702
Consumer	441			1,590		376			1,966		635				635

Purchased Loans (including acquisitions)	$	36,574		$183,406		$	96,530		$279,936		$	51,646			$	51,646

Net Loan Fee and Discount Accretion	$	6,161		$20,953		$	8,783		$29,736		$	8,397		$8,397

Washington Federal, Inc.

Fact Sheet

December 31, 2015

($ in Thousands)



	6/15 QTR			6/15 YTD			9/15 QTR			9/15 YTD			12/15 QTR			12/15 YTD
Repayments
Loans	$	651,123		$	1,764,850		$	692,418		$	3,149,686		$	726,292		$	726,292
MBS	126,951			343,281			115,910			459,191			102,761			102,761

MBS Premium Amortization	$	3,298		$	8,399		$	3,644		$	12,043		$	2,802		$	2,802

Efficiency
Operating Expenses/Average Assets	1.57		%	1.54		%	1.58		%	1.55		%	1.77		%	1.77		%
Efficiency Ratio	50.47			50.09			47.98			49.54			54.90			54.90
Amortization of Intangibles	$	794		$	2,800		$	751		$	3,551		$	639		$	639

EOP Numbers
Shares Issued and Outstanding	93,982,148						92,936,395						92,918,434

Share repurchase information
Remaining shares auth. for repurchase	5,254,607			5,254,607			4,201,230			4,201,230			3,778,148			3,778,148
Shares repurchased	1,171,662			4,787,827			1,053,377			5,841,204			423,082			423,082
Average share repurchase price	$	21.93		$	21.52		$	22.48		$	21.70		$	23.49		$	23.49

Washington Federal, Inc.

Fact Sheet

December 31, 2015

($ in Thousands)



Tangible Common Book Value	6/15 QTR			9/15 QTR			12/15 QTR
$ Amount	$	1,659,012		$	1,656,321		$	1,671,521
Per Share	17.65			17.82			17.99

# of Employees	1,839			1,838			1,825
Tax Rate - Going Forward	35.75		%	35.75		%	35.50		%

Investments
Available-for-sale:
Agency MBS	$	1,436,457		$	1,263,205		$	1,244,778
Other	1,187,917			1,117,358			1,060,010
	$	2,624,374		$	2,380,563		$	2,304,788
Held-to-maturity:
Agency MBS	$	1,586,514		$	1,643,216		$	1,598,370
Other	—			—			—
	$	1,586,514		$	1,643,216		$	1,598,370

Washington Federal, Inc.

Fact Sheet

December 31, 2015

($ in Thousands)



	AS OF 6/30/15			AS OF 9/30/15			AS OF 12/31/15
Gross Loan Portfolio by Category (a)	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,600,483	60.0%	$	5,700,781	58.0%	$	5,684,063	56.2%
Construction	181,668		1.9	200,509		2.0	663,503		6.6
Construction - Custom	375,425		4.0	396,307		4.0	404,849		4.0
Land - Acquisition & Development	92,018		1.0	98,282		1.0	100,017		1.0
Land - Consumer Lot Loans	105,463		1.1	106,815		1.1	105,119		1.0
Multi-Family	1,093,799		11.7	1,129,437		11.5	969,624		9.6
Commercial Real Estate	1,017,649		10.9	1,186,551		12.1	1,046,442		10.4
Commercial & Industrial	513,699		5.5	657,581		6.7	804,757		8.0
HELOC	148,711		1.6	149,526		1.5	148,369		1.5
Consumer	208,956		2.2	197,481		2.0	183,441		1.8
	9,337,871		100.0%	9,823,270		100.0%	10,110,184		100.0%
Less:
ALL	105,611			106,829			107,901
Loans in Process	438,947			476,777			535,850
Discount on Acquired Loans	16,716			14,713			12,639
Deferred Net Origination Fees	53,677			54,317			51,064
Sub-Total	614,951			652,636			707,454
	$	8,722,920		$	9,170,634		$	9,402,730


Net Loan Portfolio by Category (a)	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,482,853	63.4%	$	5,618,340	61.8%	$	5,605,894	59.6%
Construction	110,800		1.3	120,917		1.3	315,120		3.4
Construction - Custom	201,908		2.3	199,714		2.2	218,220		2.3
Land - Acquisition & Development	69,342		0.8	69,856		0.8	79,512		0.8
Land - Consumer Lot Loans	101,655		1.2	102,294		1.1	101,390		1.1
Multi-Family	1,006,301		11.6	1,051,139		11.6	959,631		10.2
Commercial Real Estate	848,173		9.8	986,425		10.8	1,022,926		10.9
Commercial & Industrial	484,930		5.6	620,979		6.8	773,423		8.2
HELOC	135,102		1.6	136,202		1.5	146,093		1.6
Consumer	204,545		2.4	191,870		2.1	180,521		1.9
	$	8,645,609	100.0%	$	9,097,736	100.0%	$	9,402,730	100.0%
(a) Some loans have been reclassified by loan type as a result of system conversion in 1Q16, primarily impacting Construction, Multi-family and Commercial Real Estate.

Washington Federal, Inc.

Fact Sheet

December 31, 2015

($ in Thousands)



	AS OF 6/30/15					AS OF 9/30/15					AS OF 12/31/15
Deposits by State	AMOUNT		%		#	AMOUNT		%		#	AMOUNT		%		#
WA	$	4,992,642	47.2	%	82	$	5,031,982	47.3	%	83	$	5,086,585	47.8	%	83
ID	773,269		7.3		26	788,271		7.4		26	787,094		7.4		26
OR	1,977,131		18.7		48	2,002,606		18.8		49	1,985,406		18.6		49
UT	295,548		2.8		10	291,260		2.7		10	296,390		2.8		10
NV	350,109		3.3		11	347,127		3.3		11	346,142		3.2		11
TX	91,759		0.9		5	89,564		0.8		5	92,905		0.9		5
AZ	1,222,910		11.6		35	1,213,401		11.4		35	1,191,911		11.2		35
NM	875,017		8.3		28	867,492		8.2		28	864,686		8.1		28
Total	$	10,578,385	100.0	%	245	$	10,631,703	100.0	%	247	$	10,651,119	100.0	%	247


Deposits by Type	AMOUNT		%			AMOUNT		%			AMOUNT		%
Checking (noninterest)	$	933,645	8.8	%		$	976,250	9.2	%		$	1,016,514	9.5	%
NOW (interest)	1,556,136		14.7			1,579,516		14.9			1,636,584		15.4
Savings (passbook/stmt)	671,426		6.3			700,793		6.6			782,646		7.3
Money Market	2,535,329		24.0			2,564,319		24.1			2,488,340		23.4
CD's	4,881,849		46.1			4,810,825		45.2			4,727,035		44.4
Total	$	10,578,385	100.0	%		$	10,631,703	100.0	%		$	10,651,119	100.0	%

Deposits greater than $250,000 - EOP	$	1,999,908				$	2,096,690				$	2,134,098

Washington Federal, Inc.

Fact Sheet

December 31, 2015

($ in Thousands)



	AS OF 6/30/15				AS OF 9/30/15				AS OF 12/31/15
Non-Performing Assets	AMOUNT			%	AMOUNT			%	AMOUNT			%
Non-accrual loans:
Single-Family Residential	$	56,638		86.7%	$	59,074		87.1%	$	43,856		77.3%
Construction	762			1.2	754			1.1	—			—
Construction - Custom	355			0.5	732			1.1	2,518			4.4
Land - Acquisition & Development	—			—	—			—	509			0.9
Land - Consumer Lot Loans	1,308			2.0	1,273			1.9	939			1.7
Multi-Family	786			1.2	2,558			3.8	1,538			2.7
Commercial Real Estate	2,852			4.4	2,176			3.2	6,681			11.8
Commercial & Industrial	1,205			1.8	—			—	115			0.2
HELOC	889			1.4	563			0.8	473			0.8
Consumer	513			0.8	680			1.0	119			0.2
Total non-accrual loans	65,308			100.0%	67,810			100.0%	56,748			100.0%
Real Estate Owned	63,575				60,767				42,098
Total non-performing assets	$	128,883			$	128,577			$	98,846


Total non-performing loans	0.76		%		0.75		%		0.60		%
Total non-performing assets	0.90		%		0.88		%		0.67		%
As a % of total assets

Washington Federal, Inc.

Fact Sheet

December 31, 2015

($ in Thousands)



	6/15 QTR			9/15 QTR			12/15 QTR
	AMOUNT		%	AMOUNT		%	AMOUNT		%
Restructured loans:
Single-Family Residential	$	275,428	85.7	$	259,460	85.7	$	243,292	86.1
Construction	6,370		2.0	4,989		1.6	—		—
Construction - Custom	—		—	—		—	—		—
Land - Acquisition & Development	3,536		1.1	2,486		0.8	1,976		0.7
Land - Consumer Lot Loans	11,539		3.6	11,289		3.7	10,173		3.6
Multi-Family	3,843		1.2	3,823		1.3			—
Commercial Real Estate	19,251		6.0	19,124		6.3	25,788		9.1
Commercial & Industrial	—		—	—		—	—		—
HELOC	1,394		0.4	1,443		0.5	1,397		0.5
Consumer	120		—	99		—	97		—
Total restructured loans	$	321,481	100.0%	$	302,713	100.0%	$	282,723	100.0%

Restructured loans were as follows:
Performing	$	308,355	95.9%	$	291,416	96.3%	$	273,211	96.6%
Non-performing (c)	13,126		4.1	11,297		3.7	9,512		3.4
Total restructured loans	$	321,481	100.0%	$	302,713	100.0%	$	282,723	100.0%
(c) Included in "Total non-accrual loans" above

Washington Federal, Inc.

Fact Sheet

December 31, 2015

($ in Thousands)



	6/15 QTR					9/15 QTR					12/15 QTR
	AMOUNT			CO % (d)		AMOUNT			CO % (d)		AMOUNT			CO % (d)
Net Charge-offs (Recoveries) by Category
Single-Family Residential	$	(2,181	)	(0.16)%		$	(2,128	)	(0.15)%		$	(1,327	)	(0.09)%
Construction	—			—		(45		)	(0.09)		(155		)	(0.09)
Construction - Custom	—			—		—			—		60			0.06
Land - Acquisition & Development	(1		)	—		(1		)	—		(35		)	(0.14)
Land - Consumer Lot Loans	89			0.34		96			0.36		408			1.55
Multi-Family	—			—		—			—		—			—
Commercial Real Estate	1,361			0.55		68			0.02		(100		)	(0.04)
Commercial & Industrial	1,210			0.94		468			0.28		246			0.12
HELOC	25			0.07		39			0.11		(19		)	(0.05)
Consumer	(192		)	(0.37)		(215		)	(0.44)		(150		)	(0.33)
Total net charge-offs	$	313		0.01%		$	(1,718	)	(0.07)%		$	(1,072	)	(0.04)%
(d) Annualized Net Charge-offs divided by Gross Balance

SOP 03-3 Acquired Loans
Accretable Yield	$	83,640				$	76,917				$	70,553
Non-Accretable Yield	167,603					167,603					167,603
Total Contractual Payments	$	251,243				$	244,520				$	238,156

Interest Rate Risk
One Year GAP				(13.2	)%				(13.4	)%				(12.0	)%
NPV post 200 bps shock (e)				16.53	%				15.91	%				16.14	%
Change in NII after 200 bps shock (e)				(2.2	)%				(2.2	)%				(0.5	)%
(e) Assumes no balance sheet management

CD's Repricing	Amount			Rate		Amount			Rate		Amount			Rate
Within 3 months	$	621,694		0.45	%	$	897,917		0.49	%	$	1,016,756		0.52	%
From 4 to 6 months	913,269			0.50	%	977,012			0.54	%	752,476			0.57	%
From 7 to 9 months	620,542			0.61	%	444,042			0.68	%	503,443			0.85	%
From 10 to 12 months	678,536			0.56	%	497,525			0.86	%	487,019			1.15	%

Washington Federal, Inc.

Fact Sheet

December 31, 2015

($ in Thousands)



Historical CPR Rates (f)
	WAFD		WAFD
Average for Quarter Ended:	SFR Mortgages		GSE MBS

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	%
9/30/2014	14.6	%	13.4	%
12/31/2014	15.9	%	12.1	%
3/31/2015	16.4	%	13.9	%
6/30/2015	18.7	%	15.9	%
9/30/2015	17.8	%	14.5	%
12/31/2015	16.7	%	13.4	%

(f) 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

December 31, 2015

Average Balance Sheet

($ in Thousands)



	Quarters Ended
	June 30, 2015						September 30, 2015						December 31, 2015
	Average				Average		Average				Average		Average				Average
	Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
Assets
Loans and covered loans	$	8,628,344	$	107,249	4.99	%	$	8,908,562	$	112,185	5.00	%	$	9,258,041	$	112,863	4.84	%
Mortgage-backed securities	3,024,821		16,995		2.25		2,965,534		17,079		2.28		2,880,242		16,986		2.34
Cash & Investments	1,543,556		4,625		1.20		1,429,487		5,509		1.53		1,198,471		4,258		1.41
FHLB & FRB Stock	134,692		430		1.28		106,849		566		2.10		107,793		1,016		3.74

Total interest-earning assets	13,331,414		129,300		3.89	%	13,410,432		135,339		4.00	%	13,444,547		135,123		3.99	%
Other assets	1,124,750						1,114,484						1,109,202

Total assets	$	14,456,164					$	14,524,916					$	14,553,749

Liabilities and Equity
Customer accounts	10,635,364		12,485		0.47	%	10,650,672		12,550		0.47	%	10,619,654		12,717		0.48	%
FHLB advances	1,820,110		16,250		3.58		1,824,565		15,936		3.47		1,844,772		15,537		3.34
Other borrowings	—		—		—		—		—		—		—		—		—

Total interest-bearing liabilities	12,455,474		28,735		0.93	%	12,475,237		28,486		0.91	%	12,464,426		28,254		0.90	%
Other liabilities	46,980						100,023						124,370

Total liabilities	12,502,454						12,575,260						12,588,796
Stockholders’ equity	1,953,710						1,949,656						1,964,953

Total liabilities and equity	$	14,456,164					$	14,524,916					$	14,553,749

Net interest income			$	100,565					$	106,853					$	106,869

Net interest margin (1)					3.02	%					3.19	%					3.18	%

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

Washington Federal, Inc.

Fact Sheet

December 31, 2015

Delinquency Summary

($ 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 $

December 31, 2015
Single-Family Residential	27,377	208	$	5,683,134	111	51	189	351	1.28	%	$	67,275	1.18	%
Construction	585	556	325,485		1	2	8	11	1.88	%	866		0.27	%
Construction - Custom	944	234	221,327		19	1	5	25	2.65	%	2,554		1.15	%
Land - Acquisition & Development	146	595	86,864		5	—	7	12	8.22	%	1,162		1.34	%
Land - Consumer Lot Loans	1,250	84	105,063		10	7	16	33	2.64	%	2,745		2.61	%
Multi-Family	945	1,026	969,624		3	—	3	6	0.63	%	2,240		0.23	%
Commercial Real Estate	1,103	949	1,046,323		4	3	12	19	1.72	%	10,220		0.98	%
Commercial & Industrial	1,814	444	804,726		22	1	24	47	2.59	%	2,084		0.26	%
HELOC	2,332	64	148,356		9	2	8	19	0.81	%	1,844		1.24	%
Consumer	4,757	39	183,431		137	57	29	223	4.69	%	1,459		0.80	%
	41,253	232	$	9,574,333	321	124	301	746	1.81	%	$	92,449	0.97	%

September 30, 2015
Single-Family Residential	27,768	204	$	5,666,725	95	42	182	319	1.15	%	$	64,909	1.15	%
Construction	618	211	130,121		—	—	—	—	—	%	—		—	%
Construction - Custom	812	253	205,692		4	1	2	7	0.86	%	1,524		0.74	%
Land - Acquisition & Development	141	546	76,944		2	—	2	4	2.84	%	924		1.20	%
Land - Consumer Lot Loans	1,259	85	106,752		10	4	11	25	1.99	%	2,578		2.41	%
Multi-Family	994	1,077	1,070,874		1	1	4	6	0.60	%	2,371		0.22	%
Commercial Real Estate	1,005	1,015	1,019,625		3	—	3	6	0.60	%	1,700		0.17	%
Commercial & Industrial	1,175	560	657,490		3	1	2	6	0.51	%	943		0.14	%
HELOC	2,175	64	139,682		8	1	6	15	0.69	%	982		0.70	%
Consumer	5,076	39	197,481		85	35	40	160	3.15	%	1,836		0.93	%
	41,023	226	$	9,271,386	211	85	252	548	1.34	%	$	77,767	0.84	%

June 30, 2015
Single-Family Residential	28,055	198	$	5,566,121	90	39	234	363	1.29	%	$	73,236	1.32	%
Construction	608	194	117,711		—	—	1	1	0.16	%	—		—	%
Construction - Custom	765	268	204,914		1	1	1	3	0.39	%	774		0.38	%
Land - Acquisition & Development	138	549	75,726		2	—	2	4	2.90	%	1,498		1.98	%
Land - Consumer Lot Loans	1,250	84	105,403		6	3	17	26	2.08	%	2,852		2.71	%
Multi-Family	1,000	1,017	1,017,437		—	1	2	3	0.30	%	1,041		0.10	%
Commercial Real Estate	978	890	870,691		3	1	8	12	1.23	%	3,196		0.37	%
Commercial & Industrial	1,173	437	512,966		3	—	3	6	0.51	%	930		0.18	%
HELOC	2,151	64	137,837		8	3	8	19	0.88	%	1,792		1.30	%
Consumer	5,432	38	208,956		103	34	36	173	3.18	%	1,097		0.53	%
	41,550	212	$	8,817,761	216	82	312	610	1.47	%	$	86,416	0.98	%

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