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_sep2016earnings.htm
8-K - 8-K - WASHINGTON FEDERAL INC	sep302016wafdearningsrelea.htm

Exhibit 99.2

Washington Federal, Inc.

Fact Sheet

September 30, 2016

($ in Thousands)




	As of 3/16						As of 6/16						As of 9/16
Loan Loss Reserve - Total	$	113,004					$	114,251					$	116,729
General and Specific Allowance	109,919						111,016						113,494
Commitments Reserve	3,085						3,235						3,235
Allowance as a % of Gross Loans	1.10		%				1.08		%				1.07		%

	3/16 QTR			3/16 YTD			6/16 QTR			6/16 YTD			9/16 QTR			9/16 YTD
Loan Originations - Total	$	763,323		$	1,726,642		$	1,031,461		$	2,758,103		$	1,190,431		$	3,948,534
Single-Family Residential	129,778			262,250			194,141			456,391			236,184			692,575
Construction	198,286			327,822			342,230			670,052			230,597			900,649
Construction - Custom	91,358			180,119			97,602			277,721			144,095			421,816
Land - Acquisition & Development	13,528			19,250			14,305			33,555			25,956			59,511
Land - Consumer Lot Loans	6,171			11,439			7,817			19,256			10,405			29,661
Multi-Family	91,757			224,756			73,225			297,981			63,280			361,261
Commercial Real Estate	21,001			201,789			62,706			264,495			88,770			353,265
Commercial & Industrial	194,410			464,782			216,687			681,469			370,481			1,051,950
HELOC	16,221			32,923			21,733			54,656			19,882			74,538
Consumer	813			1,512			1,015			2,527			781			3,308

Purchased Loans (including acquisitions)	$	—		$	51,646		$	—		$	51,646		$	53,774		$	105,420

Net Loan Fee and Discount Accretion	$	8,080		$	16,477		$	6,691		$	23,168		$	6,730		$	29,898

Repayments
Loans	$	581,210		$	1,307,502		$	776,087		$	2,083,589		$	851,578		$	2,935,167
MBS	89,416			192,177			128,467			320,644			142,329			462,973

MBS Premium Amortization	$	2,642		$	5,444		$	3,514		$	8,958		$	3,962		$	12,920

Efficiency
Operating Expenses/Average Assets	1.62		%	1.70		%	1.52		%	1.64		%	1.49		%	1.60		%
Efficiency Ratio (%)	50.60		%	52.75		%	49.08		%	51.55		%	48.54		%	50.80		%
Amortization of Intangibles	$	606		$	1,245		$	576		$	1,821		$	548		$	2,369

EOP Numbers
Shares Issued and Outstanding	91,270,241						90,226,193						89,680,847

Share repurchase information
Remaining shares authorized for repurchase (a)	2,138,706						1,041,309						5,039,310
Shares repurchased	1,639,442			2,062,524			1,097,397			3,159,921			707,642			3,867,563
Average share repurchase price	$	21.05		$	21.55		$	23.33		$	22.17		$	25.20		$	22.72
(a) Remaining shares authorized for repurchase at September 30, 2016 reflects a reduction of 294,357 related to warrants repurchased in September 2016.

Washington Federal, Inc.

Fact Sheet

September 30, 2016

($ in Thousands)



Tangible Common Book Value	As of 3/16			As of 6/16			As of 9/16
$ Amount	$	1,664,347		$	1,664,648		$	1,678,742
Per Share	18.24			18.45			18.72

# of Employees	1,837			1,817			1,806
Investments
Available-for-sale:
Agency MBS	$	1,197,346		$	1,131,044		$	1,072,912
Other	899,740			838,825			849,982
	$	2,097,086		$	1,969,869		$	1,922,894
Held-to-maturity:
Agency MBS	$	1,558,087		$	1,492,480		$	1,417,599
	$	1,558,087		$	1,492,480		$	1,417,599

	As of 3/31/16			As of 6/30/16			As of 9/30/16
Loans Receivable by Category (a)	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,661,999	54.9%	$	5,633,527	53.3%	$	5,658,830	51.7%
Construction	788,412		7.6	1,016,305		9.6	1,110,411		10.1
Construction - Custom	398,797		3.9	409,116		3.9	473,069		4.3
Land - Acquisition & Development	104,272		1.0	104,412		1.0	118,497		1.1
Land - Consumer Lot Loans	103,582		1.0	104,461		1.0	104,567		1.0
Multi-Family	1,079,909		10.5	1,100,514		10.4	1,124,290		10.3
Commercial Real Estate	1,003,413		9.7	1,042,730		9.9	1,093,639		10.0
Commercial & Industrial	851,367		8.3	853,776		8.1	978,589		8.9
HELOC	148,045		1.4	151,352		1.4	149,716		1.4
Consumer	166,877		1.6	156,008		1.5	139,000		1.3
	10,306,673		100%	10,572,201		100%	10,950,608		100%
Less:
ALL	109,919			111,016			113,494
Loans in Process	591,667			780,720			879,484
Discount on Acquired Loans	21,120			14,776			11,306
Deferred Origination Fees, Net	38,645			37,113			35,404
Sub-Total	761,351			943,625			1,039,688
	$	9,545,322		$	9,628,576		$	9,910,920

Net Loan Portfolio by Category (a)	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,595,908	58.6%	$	5,571,349	57.9%	$	5,601,350	56.5%
Construction	377,640		4.0	422,785		4.4	475,022		4.8
Construction - Custom	209,551		2.2	211,002		2.2	227,348		2.3
Land - Acquisition & Development	85,711		0.9	85,392		0.9	88,408		0.9
Land - Consumer Lot Loans	100,469		1.1	101,395		1.1	101,435		1.0
Multi-Family	1,069,004		11.2	1,089,658		11.3	1,113,661		11.2
Commercial Real Estate	978,328		10.2	1,021,596		10.6	1,074,146		10.8
Commercial & Industrial	819,273		8.6	822,829		8.5	945,150		9.5
HELOC	145,593		1.5	149,213		1.5	147,737		1.5
Consumer	163,845		1.7	153,357		1.6	136,663		1.4
	$	9,545,322	100%	$	9,628,576	100%	$	9,910,920	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

September 30, 2016

($ in Thousands)



	As of 3/31/16						As of 6/30/16						As of 9/30/16
Deposits by State	AMOUNT			%		#	AMOUNT			%		#	AMOUNT			%		#
Washington (WA)	$	5,031,630		47.7	%	82	$	5,089,214		48.1	%	82	$	5,100,754		48.1	%	81
Idaho (ID)	783,049			7.4		26	774,432			7.3		26	782,413			7.4		25
Oregon (OR)	1,955,608			18.5		49	1,956,226			18.5		49	1,964,173			18.5		48
Utah (UT)	289,878			2.7		10	286,792			2.7		10	285,234			2.7		10
Nevada (NV)	342,121			3.2		11	343,220			3.2		11	340,324			3.2		11
Texas (TX)	90,869			0.9		5	92,983			0.9		5	94,113			0.9		5
Arizona (AZ)	1,186,739			11.3		32	1,187,651			11.2		32	1,188,335			11.2		31
New Mexico (NM)	863,490			8.2		28	848,398			8.0		28	845,506			8.0		27
Total	$	10,543,384		100%		243	$	10,578,916		100%		243	$	10,600,852		100%		238

Deposits by Type	AMOUNT			%			AMOUNT			%			AMOUNT			%
Checking (noninterest)	$	1,019,401		9.7	%		$	1,041,258		9.8	%		$	1,091,738		10.3	%
NOW (interest)	1,606,071			15.2			1,604,741			15.2			1,629,983			15.4
Savings (passbook/stmt)	779,814			7.4			787,441			7.4			820,980			7.7
Money Market	2,470,958			23.4			2,486,802			23.5			2,462,891			23.2
Time Deposits	4,667,140			44.3			4,658,674			44.0			4,595,260			43.3
Total	$	10,543,384		100%			$	10,578,916		100%			$	10,600,852		100%

Deposits greater than $250,000 - EOP	$	2,112,381					$	2,209,547					$	2,250,622

Time Deposit Repricing	Amount			Rate			Amount			Rate			Amount			Rate
Within 3 months	$	780,751		0.55	%		$	890,691		0.64	%		$	824,019		0.82	%
From 4 to 6 months	860,689			0.67	%		787,925			0.86	%		896,484			0.80	%
From 7 to 9 months	505,045			1.12	%		562,314			1.02	%		618,180			0.89	%
From 10 to 12 months	544,445			1.04	%		585,038			0.90	%		508,732			0.83	%

Non-Performing Assets	AMOUNT			%			AMOUNT			%			AMOUNT			%
Non-accrual loans:
Single-Family Residential	$	42,395		77.7%			$	36,707		77.5%			$	33,148		78.2%
Construction	—			—			—			—			—			—
Construction - Custom	67			0.1			506			1.1			—			—
Land - Acquisition & Development	477			0.9			427			0.9			58			0.1
Land - Consumer Lot Loans	940			1.7			1,105			2.3			510			1.2
Multi-Family	1,520			2.8			1,238			2.6			776			1.8
Commercial Real Estate	7,701			14.1			6,297			13.3			7,100			16.7
Commercial & Industrial	596			1.1			521			1.1			583			1.4
HELOC	554			1.0			548			1.2			239			0.6
Consumer	309			0.6			—			—			—			—
Total non-accrual loans	54,559			100%			47,349			100%			42,414			100%
Real Estate Owned	38,770						31,682						29,027
Total non-performing assets	$	93,329					$	79,031					$	71,441

Non-performing loans as % of total net loans	0.57		%				0.49		%				0.43		%
Non-performing assets as % of total assets	0.64		%				0.53		%				0.48		%

Washington Federal, Inc.

Fact Sheet

September 30, 2016

($ in Thousands)



	As of 3/31/16					As of 6/30/16					As of 9/30/16
	AMOUNT			%		AMOUNT			%		AMOUNT			%
Restructured loans:
Single-Family Residential	$	233,544		86.4%		$	223,531		86.6%		$	210,490		86.7%
Construction	—			—		—			—		—			—
Construction - Custom	—			—		—			—		—			—
Land - Acquisition & Development	1,632			0.6		1,454			0.6		1,154			0.5
Land - Consumer Lot Loans	9,981			3.7		9,672			3.7		8,660			3.6
Multi-Family	1,522			0.6		1,514			0.6		880			0.4
Commercial Real Estate	22,139			8.2		20,490			7.9		20,058			8.3
Commercial & Industrial	—			—		—			—		—			—
HELOC	1,396			0.5		1,379			0.5		1,380			0.6
Consumer	94			—		95			—		92			—
Total restructured loans	$	270,308		100%		$	258,135		100%		$	242,714		100%

Restructured loans were as follows:
Performing	$	257,600		95.3%		$	247,695		96.0%		$	233,204		96.1%
Non-performing (c)	12,708			4.7		10,440			4.0		9,510			3.9
Total restructured loans	$	270,308		100%		$	258,135		100%		$	242,714		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	$	915		0.06%		$	473		0.03%		$	(204	)	(0.01)%
Construction	5			—		(207		)	(0.08)		(388		)	(0.14)
Construction - Custom	—			—		(60		)	(0.06)		—			—
Land - Acquisition & Development	(3,371		)	(12.93)		(2,711		)	(10.39)		(2,063		)	(6.96)
Land - Consumer Lot Loans	268			1.03		21			0.08		29			0.11
Multi-Family	—			—		—			—		—			—
Commercial Real Estate	(983		)	(0.39)		(454		)	(0.17)		(172		)	(0.06)
Commercial & Industrial	(259		)	(0.12)		144			0.07		(2,123		)	(0.87)
HELOC	26			0.07		27			0.07		—			—
Consumer	(119		)	(0.29)		(130		)	(0.33)		(657		)	(1.89)
Total net charge-offs (recoveries)	$	(3,518	)	(0.14)%		$	(2,897	)	(0.11)%		$	(5,578	)	(0.20)%
(d) Annualized Net Charge-offs (recoveries) divided by Gross Balance

ASC 310-30 Acquired Loans
Accretable Yield	$	64,457				$	60,453				$	55,290
Non-Accretable Yield	167,603					165,926					165,926
Total Contractual Payments	$	232,060				$	226,379				$	221,216

Interest Rate Risk
One Year GAP				(12.7	)%				(9.8	)%				(10.1	)%
NPV post 200 bps shock (e)				15.6	%				15.4	%				14.8	%
Change in NII after 200 bps shock (e)				1.4	%				3.9	%				3.2	%
(e) Assumes no balance sheet management actions taken

Washington Federal, Inc.

Fact Sheet

September 30, 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	%
6/30/2016	17.3	%	17.5	%
9/30/2016	17.7	%	20.0	%
(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.

Washington Federal, Inc.

Fact Sheet

September 30, 2016

Average Balance Sheet

($ in Thousands)



	Quarters Ended
	March 31, 2016						June 30, 2016						September 30, 2016
	Average				Average		Average				Average		Average				Average
	Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
Assets
Loans receivable	$	9,469,185	$	113,211	4.80	%	$	9,561,921	$	113,728	4.77	%	$	9,756,353	$	114,283	4.65	%
Mortgage-backed securities	2,804,569		16,846		2.41		2,698,354		15,297		2.27		2,568,917		13,820		2.13
Cash & investments	1,065,800		3,983		1.50		1,187,023		4,012		1.36		1,218,195		4,029		1.31
FHLB & FRB Stock	112,662		1,023		3.64		117,022		698		2.39		117,205		740		2.50

Total interest-earning assets	13,452,216		135,063		4.03	%	13,564,320		133,735		3.95	%	13,660,670		132,872		3.86	%
Other assets	1,189,428						1,219,363						1,210,388
Total assets	$	14,641,644					$	14,783,683					$	14,871,058

Liabilities and Equity
Customer accounts	10,558,835		13,071		0.50	%	10,569,479		13,274		0.50	%	10,610,740		13,423		0.50	%
FHLB advances	1,970,022		15,667		3.19		2,075,604		16,221		3.13		2,080,000		16,633		3.17
Other borrowings	—		—		—		—		—		—		33		—		—

Total interest-bearing liabilities	12,528,857		28,738		0.92	%	12,645,083		29,495		0.94	%	12,690,773		30,056		0.94	%
Other liabilities	151,697						163,788						205,817
Total liabilities	12,680,554						12,808,871						12,896,590
Stockholders’ equity	1,961,090						1,974,812						1,974,468
Total liabilities and equity	$	14,641,644					$	14,783,683					$	14,871,058

Net interest income			$	106,325					$	104,240					$	102,816

Net interest margin (1)					3.16	%					3.07	%					3.01	%

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

Washington Federal, Inc.

Fact Sheet

September 30, 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 $

September 30, 2016
Single-Family Residential	26,508	213	$	5,658,122	93	39	173	305	1.15	%	$	56,665	1.00	%
Construction	640	779	498,450		—	—	1	1	0.16		—		—
Construction - Custom	1,041	221	229,957		2	—	—	2	0.19		538		0.23
Land - Acquisition & Development	132	719	94,928		—	—	3	3	2.27		—		—
Land - Consumer Lot Loans	1,229	85	104,534		5	6	13	24	1.95		2,061		1.97
Multi-Family	944	1,191	1,124,290		2	1	3	6	0.64		1,983		0.18
Commercial Real Estate	1,074	1,018	1,093,549		1	2	10	13	1.21		4,868		0.45
Commercial & Industrial	1,832	534	978,582		—	3	32	35	1.91		42		—
HELOC	2,924	51	149,713		11	3	26	40	1.37		1,200		0.80
Consumer	5,094	27	139,000		93	34	66	193	3.79		922		0.66
	41,418	243	$	10,071,125	207	88	327	622	1.50	%	$	68,279	0.68	%

June 30, 2016
Single-Family Residential	26,758	211	$	5,632,692	84	37	189	310	1.16	%	$	55,242	0.98	%
Construction	684	649	444,014		—	—	1	1	0.15		—		—
Construction - Custom	921	232	213,465		2	1	1	4	0.43		775		0.36
Land - Acquisition & Development	135	686	92,629		—	—	5	5	3.70		468		0.51
Land - Consumer Lot Loans	1,232	85	104,413		6	2	19	27	2.19		1,993		1.91
Multi-Family	958	1,149	1,100,514		2	—	3	5	0.52		1,384		0.13
Commercial Real Estate	1,055	988	1,042,639		4	3	14	21	1.99		7,811		0.75
Commercial & Industrial	1,832	466	853,769		3	4	34	41	2.24		985		0.12
HELOC	2,907	52	151,339		11	11	26	48	1.65		2,168		1.43
Consumer	5,369	29	156,008		76	41	64	181	3.37		811		0.52
	41,851	234	$	9,791,482	188	99	356	643	1.54	%	$	71,637	0.73	%

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	%

Attached files

Stock widget

Investing forum

WASHINGTON FEDERAL INC Reports