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

Attached files

file	filename
8-K - 8-K - WASHINGTON FEDERAL INC	mar312016wafdearningsrelea.htm
EX-99.1 - EXHIBIT 99.1 - WASHINGTON FEDERAL INC	exhibit991_mar2016earnings.htm

Washington Federal, Inc.

Fact Sheet

March 31, 2016

($ in Thousands)




	As of 9/15						As of 12/15						As of 3/16
Loan Loss Reserve - Total	$	109,914					$	110,986					$	113,004
General and Specific Allowance	106,829						107,901						109,919
Commitments Reserve	3,085						3,085						3,085
Allowance as a % of Gross Loans	1.13		%				1.10		%				1.10		%

	9/15 QTR			9/15 YTD			12/15 QTR			12/15 YTD			3/16 QTR			3/16 YTD
Loan Originations - Total	$	1,080,268		$	3,103,515		$	963,319		$	963,319		$	763,323		$	1,726,642
Single-Family Residential	211,193			705,741			132,472			132,472			129,778			262,250
Construction	91,857			263,532			129,536			129,536			198,286			327,822
Construction - Custom	117,292			365,220			88,761			88,761			91,358			180,119
Land - Acquisition & Development	21,777			78,818			5,722			5,722			13,528			19,250
Land - Consumer Lot Loans	8,806			21,422			5,268			5,268			6,171			11,439
Multi-Family	89,357			349,442			132,999			132,999			91,757			224,756
Commercial Real Estate	230,046			600,610			180,788			180,788			21,001			201,789
Commercial & Industrial	286,078			642,309			270,372			270,372			194,410			464,782
HELOC	23,486			74,455			16,702			16,702			16,221			32,923
Consumer	376			1,966			699			699			813			1,512

Purchased Loans (including acquisitions)	$	96,530		$	279,936		$	51,646		$	51,646		$	—		$	51,646

Net Loan Fee and Discount Accretion	$	8,783		$	29,736		$	8,397		$	8,397		$	8,080		$	16,477

Repayments
Loans	$	692,418		$	3,149,686		$	726,292		$	726,292		$	581,210		$	1,307,502
MBS	115,910			459,191			102,761			102,761			89,416			192,177

MBS Premium Amortization	$	3,644		$	12,043		$	2,802		$	2,802		$	2,642		$	5,444

Efficiency
Operating Expenses/Average Assets	1.58%			1.55		%	1.77		%	1.77		%	1.62		%	1.70		%
Efficiency Ratio (%)	47.98		%	49.54		%	54.90		%	54.90		%	50.60		%	52.75		%
Amortization of Intangibles	$	751		$	3,551		$	639		$	639		$	606		$	1,245

EOP Numbers
Shares Issued and Outstanding	92,936,395						92,918,434						91,270,241

Share repurchase information
Remaining shares authorized for repurchase	4,201,230						3,778,148						2,138,706
Shares repurchased	1,053,377			5,841,204			423,082			423,082			1,639,442			2,062,524
Average share repurchase price	$	22.48		$	21.70		$	23.49		$	23.49		$	21.05		$	21.55

Washington Federal, Inc.

Fact Sheet

March 31, 2016

($ in Thousands)



Tangible Common Book Value	As of 9/15				As of 12/15				As of 3/16
$ Amount	$	1,656,321			$	1,671,521			$	1,664,347
Per Share	17.82				17.99				18.24

# of Employees	1,838				1,825				1,837
Estimated Future Tax Rate	35.75		%		35.50		%		34.00		%
Investments
Available-for-sale:
Agency MBS	$	1,263,205			$	1,244,778			$	1,197,346
Other	1,117,358				1,060,010				899,740
	$	2,380,563			$	2,304,788			$	2,097,086
Held-to-maturity:
Agency MBS	$	1,643,216			$	1,598,370			$	1,558,087
	$	1,643,216			$	1,598,370			$	1,558,087

	As of 9/30/15				As of 12/31/15				As of 3/31/16
Loans Receivable by Category (a)	AMOUNT			%	AMOUNT			%	AMOUNT			%
Single-Family Residential	$	5,700,781		58.0%	$	5,684,063		56.2%	$	5,661,999		54.9%
Construction	200,509			2.0	663,503			6.6	788,412			7.6
Construction - Custom	396,307			4.0	404,849			4.0	398,797			3.9
Land - Acquisition & Development	98,282			1.0	100,017			1.0	104,272			1.0
Land - Consumer Lot Loans	106,815			1.1	105,119			1.0	103,582			1.0
Multi-Family	1,129,437			11.5	969,624			9.6	1,079,909			10.5
Commercial Real Estate	1,186,551			12.1	1,046,442			10.4	1,003,413			9.7
Commercial & Industrial	657,581			6.7	804,757			8.0	851,367			8.3
HELOC	149,526			1.5	148,369			1.5	148,045			1.4
Consumer	197,481			2.0	183,441			1.8	166,877			1.6
	9,823,270			100%	10,110,184			100%	10,306,673			100%
Less:
ALL	106,829				107,901				109,919
Loans in Process	476,796				535,850				591,667
Discount on Acquired Loans	30,095				25,039				21,120
Deferred Origination Fees, Net	38,916				38,664				38,645
Sub-Total	652,636				707,454				761,351
	$	9,170,634			$	9,402,730			$	9,545,322

Net Loan Portfolio by Category (a)	AMOUNT			%	AMOUNT			%	AMOUNT			%
Single-Family Residential	$	5,616,633		61.2%	$	5,605,894		59.6%	$	5,595,908		58.6%
Construction	122,334			1.3	315,120			3.4	377,640			4.0
Construction - Custom	202,511			2.2	218,220			2.3	209,551			2.2
Land - Acquisition & Development	72,133			0.8	79,512			0.8	85,711			0.9
Land - Consumer Lot Loans	103,048			1.1	101,390			1.1	100,469			1.1
Multi-Family	1,059,498			11.6	959,631			10.2	1,069,004			11.2
Commercial Real Estate	1,028,272			11.2	1,022,926			10.9	978,328			10.2
Commercial & Industrial	625,975			6.8	773,423			8.2	819,273			8.6
HELOC	146,967			1.6	146,093			1.6	145,593			1.5
Consumer	193,263			2.1	180,521			1.9	163,845			1.7
	$	9,170,634		100%	$	9,402,730		100%	$	9,545,322		100%
(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

March 31, 2016

($ in Thousands)



	As of 9/30/15						As of 12/31/15						As of 3/31/16
Deposits by State	AMOUNT			%		#	AMOUNT			%		#	AMOUNT			%		#
Washington (WA)	$	5,031,982		47.3	%	83	$	5,086,585		47.8	%	83	$	5,031,630		47.7	%	82
Idaho (ID)	788,271			7.4		26	787,094			7.4		26	783,049			7.4		26
Oregon (OR)	2,002,606			18.8		49	1,985,406			18.6		49	1,955,608			18.5		49
Utah (UT)	291,260			2.7		10	296,390			2.8		10	289,878			2.7		10
Nevada (NV)	347,127			3.3		11	346,142			3.2		11	342,121			3.2		11
Texas (TX)	89,564			0.8		5	92,905			0.9		5	90,869			0.9		5
Arizona (AZ)	1,213,401			11.4		35	1,191,911			11.2		35	1,186,739			11.3		32
New Mexico (NM)	867,492			8.2		28	864,686			8.1		28	863,490			8.2		28
Total	$	10,631,703		100%		247	$	10,651,119		100%		247	$	10,543,384		100%		243

Deposits by Type	AMOUNT			%			AMOUNT			%			AMOUNT			%
Checking (noninterest)	$	976,250		9.2	%		$	1,016,514		9.5	%		$	1,019,401		9.7	%
NOW (interest)	1,579,516			14.9			1,636,584			15.4			1,606,071			15.2
Savings (passbook/stmt)	700,793			6.6			782,646			7.3			779,814			7.4
Money Market	2,564,319			24.1			2,488,340			23.4			2,470,958			23.4
Time Deposits	4,810,825			45.2			4,727,035			44.4			4,667,140			44.3
Total	$	10,631,703		100%			$	10,651,119		100%			$	10,543,384		100%

Deposits greater than $250,000 - EOP	$	2,096,690					$	2,134,098					$	2,112,381

Time Deposit Repricing	Amount			Rate			Amount			Rate			Amount			Rate
Within 3 months	$	897,917		0.49	%		$	1,016,756		0.52	%		$	780,751		0.55	%
From 4 to 6 months	977,012			0.54	%		752,476			0.57	%		860,689			0.67	%
From 7 to 9 months	444,042			0.68	%		503,443			0.85	%		505,045			1.12	%
From 10 to 12 months	497,525			0.86	%		487,019			1.15	%		544,445			1.04	%

Non-Performing Assets	AMOUNT			%			AMOUNT			%			AMOUNT			%
Non-accrual loans:
Single-Family Residential	$	59,074		87.1%			$	43,856		77.3%			$	42,395		77.7%
Construction	754			1.1			—			—			—			—
Construction - Custom	732			1.1			2,518			4.4			67			0.1
Land - Acquisition & Development	—			—			509			0.9			477			0.9
Land - Consumer Lot Loans	1,273			1.9			939			1.7			940			1.7
Multi-Family	2,558			3.8			1,538			2.7			1,520			2.8
Commercial Real Estate	2,176			3.2			6,681			11.8			7,701			14.1
Commercial & Industrial	—			—			115			0.2			596			1.1
HELOC	563			0.8			473			0.8			554			1.0
Consumer	680			1.0			119			0.2			309			0.6
Total non-accrual loans	67,810			100%			56,748			100%			54,559			100%
Real Estate Owned	60,767						42,098						38,770
Total non-performing assets	$	128,577					$	98,846					$	93,329

Non-performing loans as % of total net loans	0.74		%				0.60		%				0.57		%
Non-performing assets as % of total assets	0.88		%				0.67		%				0.64		%

Washington Federal, Inc.

Fact Sheet

March 31, 2016

($ in Thousands)



	As of 9/30/15					As of 12/31/15					As of 3/31/16
	AMOUNT			%		AMOUNT			%		AMOUNT			%
Restructured loans:
Single-Family Residential	$	259,460		85.7%		$	243,292		86.5%		$	233,668		86.1%
Construction	4,989			1.6		—			—		—			—
Construction - Custom	—			—		—			—		—			—
Land - Acquisition & Development	2,486			0.8		1,976			0.7		1,894			0.7
Land - Consumer Lot Loans	11,289			3.7		10,173			3.6		9,982			3.7
Multi-Family	3,823			1.3		—			—		1,522			0.6
Commercial Real Estate	19,124			6.3		24,257			8.6		22,879			8.4
Commercial & Industrial	—			—		—			—		—			—
HELOC	1,443			0.5		1,397			0.5		1,396			0.5
Consumer	99			—		97			—		94			—
Total restructured loans	$	302,713		100%		$	281,192		100%		$	271,435		100%

Restructured loans were as follows:
Performing	$	291,416		96.3%		$	273,211		96.6%		$	258,359		95.2%
Non-performing (c)	11,297			3.7		9,512			3.4		13,076			4.8
Total restructured loans	$	302,713		100%		$	282,723		100%		$	271,435		100%
(c) Included in "Total non-accrual loans" above

	AMOUNT			CO % (d)		AMOUNT			CO % (d)		AMOUNT			CO % (d)
Net Charge-offs (Recoveries) by Category
Single-Family Residential	$	(2,128	)	(0.15)%		$	(1,327	)	(0.09)%		$	915		0.06%
Construction	(45		)	(0.09)		(155		)	(0.09)		5			—
Construction - Custom	—			—		60			0.06		—			—
Land - Acquisition & Development	(1		)	—		(35		)	(0.14)		(3,371		)	(12.93)
Land - Consumer Lot Loans	96			0.36		408			1.55		268			1.03
Multi-Family	—			—		—			—		—			—
Commercial Real Estate	68			0.02		(100		)	(0.04)		(983		)	(0.39)
Commercial & Industrial	468			0.28		246			0.12		(259		)	(0.12)
HELOC	39			0.10		(19		)	(0.05)		26			0.07
Consumer	(215		)	(0.44)		(150		)	(0.33)		(119		)	(0.29)
Total net charge-offs	$	(1,718	)	(0.07)%		$	(1,072	)	(0.04)%		$	(3,518	)	(0.14)%
(d) Annualized Net Charge-offs divided by Gross Balance

ASC 310-30 Acquired Loans
Accretable Yield	$	76,917				$	70,553				$	64,457
Non-Accretable Yield	167,603					167,603					167,603
Total Contractual Payments	$	244,520				$	238,156				$	232,060

Interest Rate Risk
One Year GAP				(13.4	)%				(12.0	)%				(12.7	)%
NPV post 200 bps shock (e)				15.91	%				16.14	%				15.55	%
Change in NII after 200 bps shock (e)				(2.2	)%				(0.5	)%				1.42	%
(e) Assumes no balance sheet management actions taken

Washington Federal, Inc.

Fact Sheet

March 31, 2016

($ 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	%
3/31/2016	13.9	%	12.0	%

(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

March 31, 2016

Average Balance Sheet

($ in Thousands)



	Quarters Ended
	September 30, 2015						December 31, 2015						March 31, 2016
	Average				Average		Average				Average		Average				Average
	Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
Assets
Loans receivable	$	8,908,562	$	112,185	5.00	%	$	9,258,041	$	112,863	4.84	%	$	9,469,185	$	113,211	4.80	%
Mortgage-backed securities	2,965,534		17,079		2.28		2,880,242		16,986		2.34		2,804,569		16,846		2.41
Cash & investments	1,429,487		5,509		1.53		1,198,471		4,258		1.41		1,065,800		3,983		1.50
FHLB & FRB Stock	106,849		566		2.10		107,793		1,016		3.74		112,662		1,023		3.64

Total interest-earning assets	13,410,432		135,339		4.00	%	13,444,547		135,123		3.99	%	13,452,216		135,063		4.03	%
Other assets	1,114,484						1,109,202						1,189,428
Total assets	$	14,524,916					$	14,553,749					$	14,641,644

Liabilities and Equity
Customer accounts	10,650,672		12,550		0.47	%	10,619,654		12,717		0.48	%	10,558,835		13,071		0.50	%
FHLB advances	1,824,565		15,936		3.47		1,844,772		15,537		3.34		1,970,022		15,667		3.19

Total interest-bearing liabilities	12,475,237		28,486		0.91	%	12,464,426		28,254		0.90	%	12,528,857		28,738		0.92	%
Other liabilities	100,023						124,370						151,697
Total liabilities	12,575,260						12,588,796						12,680,554
Stockholders’ equity	1,949,656						1,964,953						1,961,090
Total liabilities and equity	$	14,524,916					$	14,553,749					$	14,641,644

Net interest income			$	106,853					$	106,869					$	106,325

Net interest margin (1)					3.19	%					3.18	%					3.16	%

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

Washington Federal, Inc.

Fact Sheet

March 31, 2016

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 $

March 31, 2016
Single-Family Residential	27,194	208	$	5,660,232	104	45	196	345	1.27	%	$	66,003	1.17	%
Construction	689	575	396,322		—	—	8	8	1.16		141		0.04
Construction - Custom	927	229	212,067		8	5	3	16	1.73		2,914		1.37
Land - Acquisition & Development	142	657	93,354		2	—	6	8	5.63		1,926		2.06
Land - Consumer Lot Loans	1,242	83	103,534		8	4	16	28	2.25		2,233		2.16
Multi-Family	969	1,114	1,079,909		2	—	2	4	0.41		2,014		0.19
Commercial Real Estate	1,060	947	1,003,320		5	1	8	14	1.32		7,902		0.79
Commercial & Industrial	1,831	465	851,358		14	3	27	44	2.40		1,631		0.19
HELOC	2,303	64	148,032		8	5	10	23	1.00		1,178		0.80
Consumer	4,362	38	166,877		138	59	96	293	6.72		1,376		0.82
	40,719	239	$	9,715,005	289	122	372	783	1.92	%	$	87,318	0.90	%

December 31, 2015
Single-Family Residential	27,377	208	$	5,683,134	111	51	189	351	1.28	%	$	67,273	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	$	5,666,585	95	42	182	319	1.15	%	$	65,294	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	76,921		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	1,070,864		1	1	4	6	0.60		2,371		0.22
Commercial Real Estate	1,005	1,014	1,019,293		3	—	3	6	0.60		1,700		0.17
Commercial & Industrial	1,188	553	657,183		3	1	2	6	0.51		943		0.14
HELOC	2,175	64	139,692		8	1	6	15	0.69		982		0.70
Consumer	5,076	39	197,481		85	35	40	160	3.15		1,121		0.57
	41,036	226	$	9,270,584	211	85	252	548	1.34	%	$	77,437	0.84	%

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WASHINGTON FEDERAL INC - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - April 14, 2016

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