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_sep2017earnings.htm
8-K - 8-K - WASHINGTON FEDERAL INC	sep302017wafdearningsrelea.htm

Exhibit 99.2

Washington Federal, Inc.

Fact Sheet

September 30, 2017

($ in Thousands)




	As of 3/17						As of 6/17						As of 9/17
Loan Loss Reserve - Total	$	126,972					$	128,779					$	130,823
General and Specific Allowance	121,922						122,229						123,073
Commitments Reserve	5,050						6,550						7,750
Allowance as a % of Gross Loans	1.09		%				1.08		%				1.07		%

	3/17 QTR			3/17 YTD			6/17 QTR			6/17 YTD			9/17 QTR			9/17 YTD
Loan Originations - Total	$	944,083		$	2,185,129		$	1,030,996		$	3,216,125		$	1,022,853		$	4,238,978
Single-Family Residential	170,547			385,788			181,721			567,509			189,607			757,116
Construction	167,422			506,021			268,027			774,048			307,416			1,081,464
Construction - Custom	120,646			243,601			129,077			372,678			157,757			530,435
Land - Acquisition & Development	10,336			26,565			21,559			48,124			31,752			79,876
Land - Consumer Lot Loans	8,158			17,223			10,200			27,423			11,728			39,151
Multi-Family	93,279			205,238			43,716			248,954			50,405			299,359
Commercial Real Estate	77,949			242,047			97,962			340,009			103,678			443,687
Commercial & Industrial	277,676			521,600			258,310			779,910			151,930			931,840
HELOC	17,221			35,612			19,310			54,922			17,991			72,913
Consumer	849			1,434			1,114			2,548			589			3,137

Purchased Loans (including acquisitions)	$	72,856		$	72,856		$	—		$	72,856		$	—		$	72,856

Net Loan Fee and Discount Accretion	$	5,764		$	12,526		$	2,348		$	14,874		$	4,181		$	19,055

Repayments
Loans	$	710,691		$	1,606,800		$	793,432		$	2,400,232		$	699,619		$	3,099,851
MBS	96,900			275,069			151,218			426,287			96,156			522,443

MBS Premium Amortization	$	2,992		$	8,031		$	2,620		$	10,651		$	2,929		$	13,580

Efficiency
Operating Expenses/Average Assets	1.55		%	1.50		%	1.52		%	1.51		%	1.66		%	1.55		%
Efficiency Ratio (%)	48.76		%	48.00		%	46.57		%	47.51		%	48.68		%	47.82		%
Amortization of Intangibles	$	398		$	919		$	375		$	1,294		$	2,053		$	3,347

EOP Numbers
Shares Issued and Outstanding	89,438,563						88,750,133						87,193,362

Share repurchase information
Remaining shares authorized for repurchase (a)	4,157,081						3,245,187						1,674,739
Shares repurchased	477			758,245			811,034			1,569,279			1,567,899			3,137,178
Average share repurchase price	$	33.55		$	26.91		$	32.14		$	29.61		$	33.10		$	31.36
(a) Remaining shares authorized for repurchase reflects a reduction related to TARP warrants repurchased to date.

Washington Federal, Inc.

Fact Sheet

September 30, 2017

($ in Thousands)



Tangible Common Book Value	As of 3/17			As of 6/17			As of 9/17
$ Amount	$	1,718,625		$	1,725,491		$	1,707,006
Per Share	19.22			19.44			19.58

# of Employees	1,797			1,815			1,818
Investments
Available-for-sale:
Agency MBS	$	916,006		$	809,702		$	842,688
Other	472,776			460,712			423,521
	$	1,388,782		$	1,270,414		$	1,266,209
Held-to-maturity:
Agency MBS	$	1,697,650		$	1,651,528		$	1,646,856
	$	1,697,650		$	1,651,528		$	1,646,856

	As of 3/31/17			As of 6/30/17			As of 9/30/17
Loans Receivable by Category	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,693,072	48.9%	$	5,687,850	47.9%	$	5,711,004	46.8%
Construction	1,311,635		11.3	1,436,874		12.1	1,597,996		13.1
Construction - Custom	527,319		4.5	561,260		4.7	602,631		4.9
Land - Acquisition & Development	118,726		1.0	119,524		1.0	124,308		1.0
Land - Consumer Lot Loans	101,227		0.9	101,626		0.9	104,405		0.9
Multi-Family	1,266,911		10.9	1,263,187		10.6	1,303,148		10.7
Commercial Real Estate	1,296,039		11.1	1,346,006		11.3	1,434,610		11.8
Commercial & Industrial	1,071,629		9.2	1,116,860		9.4	1,093,360		9.0
HELOC	146,172		1.3	148,584		1.3	144,850		1.2
Consumer	107,759		0.9	95,775		0.8	85,075		0.7
	11,640,489		100%	11,877,546		100%	12,201,387		100%
Less:
ALL	121,922			122,229			123,073
Loans in Process	1,009,937			1,054,513			1,149,934
Net deferred fees, costs and discounts	45,608			46,379			45,758
Sub-Total	1,177,467			1,223,121			1,318,765
	$	10,463,022		$	10,654,425		$	10,882,622

Net Loan Portfolio by Category	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,632,558	53.8%	$	5,628,508	52.8%	$	5,652,365	51.9%
Construction	564,133		5.4	656,287		6.2	763,742		7.0
Construction - Custom	248,878		2.4	265,722		2.5	273,520		2.5
Land - Acquisition & Development	96,330		0.9	103,414		1.0	97,587		0.9
Land - Consumer Lot Loans	98,252		0.9	98,592		0.9	101,265		0.9
Multi-Family	1,254,499		12.0	1,250,730		11.7	1,290,640		11.9
Commercial Real Estate	1,278,189		12.2	1,327,530		12.5	1,416,188		13.0
Commercial & Industrial	1,039,309		9.9	1,082,486		10.2	1,060,304		9.7
HELOC	144,642		1.4	147,012		1.4	143,381		1.3
Consumer	106,232		1.0	94,144		0.9	83,630		0.8
	$	10,463,022	100%	$	10,654,425	100%	$	10,882,622	100%

Washington Federal, Inc.

Fact Sheet

September 30, 2017

($ in Thousands)



	As of 3/31/17						As of 6/30/17						As of 9/30/17
Deposits by State	AMOUNT			%		#	AMOUNT			%		#	AMOUNT			%		#
Washington	$	5,146,140		48.4	%	81	$	5,199,590		48.9	%	81	$	5,383,764		49.7	%	81
Idaho	785,092			7.4		24	768,049			7.2		24	786,974			7.3		24
Oregon	1,946,137			18.3		47	1,939,619			18.2		47	1,964,490			18.1		47
Utah	272,804			2.6		10	270,224			2.5		10	267,717			2.5		10
Nevada	335,266			3.2		11	328,121			3.1		11	326,436			3.0		11
Texas	94,656			0.9		5	96,264			0.9		5	97,670			0.9		6
Arizona	1,193,459			11.2		31	1,177,997			11.1		31	1,164,743			10.7		31
New Mexico	857,253			8.1		27	854,414			8.0		27	843,214			7.8		27
Total	$	10,630,807		100%		236	$	10,634,278		100%		236	$	10,835,008		100%		237

Deposits by Type	AMOUNT			%			AMOUNT			%			AMOUNT			%
Checking (non-interest)	$	1,142,372		10.7	%		$	1,195,152		11.2	%		$	1,258,274		11.6	%
NOW (interest)	1,731,737			16.3			1,703,994			16.0			1,760,821			16.3
Savings	871,722			8.2			871,257			8.2			888,881			8.2
Money Market	2,466,868			23.2			2,433,547			22.9			2,453,182			22.6
Time Deposits	4,418,108			41.6			4,430,328			41.7			4,473,850			41.3
Total	$	10,630,807		100%			$	10,634,278		100%			$	10,835,008		100%

Deposits greater than $250,000 - EOP	$	2,426,837					$	2,524,536					$	2,674,914

Time Deposit Repricing	Amount			Rate			Amount			Rate			Amount			Rate
Within 3 months	$	930,544		0.71	%		$	879,213		0.65	%		$	668,177		0.65	%
From 4 to 6 months	852,702			0.67	%		649,962			0.67	%		714,935			0.76	%
From 7 to 9 months	429,013			0.79	%		450,756			0.83	%		653,760			0.85	%
From 10 to 12 months	442,072			0.84	%		625,472			0.87	%		471,057			0.98	%

Non-Performing Assets	AMOUNT			%			AMOUNT			%			AMOUNT			%
Non-accrual loans:
Single-Family Residential	$	34,373		60.1%			$	32,613		57.8%			$	27,930		56.3%
Construction	—			—			—			—			—			—
Construction - Custom	240			0.4			536			1.0			91			0.2
Land - Acquisition & Development	80			0.1			71			0.1			296			0.6
Land - Consumer Lot Loans	1,129			2.0			1,066			1.9			605			1.2
Multi-Family	1,364			2.4			682			1.2			139			0.3
Commercial Real Estate	10,507			18.4			12,983			23.0			11,815			23.8
Commercial & Industrial	8,864			15.5			8,254			14.6			8,082			16.3
HELOC	583			1.0			181			0.3			531			1.1
Consumer	55			0.1			22			—			91			0.2
Total non-accrual loans	57,195			100%			56,408			100%			49,580			100%
Real Estate Owned	22,543						19,112						20,658
Total non-performing assets	$	79,738					$	75,520					$	70,238

Non-performing loans as % of total net loans	0.55		%				0.53		%				0.46		%
Non-performing assets as % of total assets	0.53		%				0.50		%				0.46		%

Washington Federal, Inc.

Fact Sheet

September 30, 2017

($ in Thousands)



	As of 3/31/17					As of 6/30/17					As of 9/30/17
	AMOUNT			%		AMOUNT			%		AMOUNT			%
Restructured loans:
Single-Family Residential	$	204,955		87.6%		$	196,575		87.9%		$	181,941		87.7%
Construction	—			—		—			—		—			—
Construction - Custom	—			—		—			—		—			—
Land - Acquisition & Development	594			0.3		190			0.1		90			—
Land - Consumer Lot Loans	9,410			4.0		8,878			4.0		7,949			3.8
Multi-Family	1,131			0.5		497			0.2		493			0.2
Commercial Real Estate	16,290			7.0		15,907			7.1		15,079			7.3
Commercial & Industrial	—			—		—			—		—			—
HELOC	1,414			0.6		1,409			0.6		1,728			0.8
Consumer	107			—		102			—		97			—
Total restructured loans	$	233,901		100%		$	223,558		100%		$	207,377		100%

Restructured loans were as follows:
Performing	$	222,208		95.0%		$	215,178		96.3%		$	202,272		97.5%
Non-performing (b)	11,693			5.0		8,380			3.7		5,105			2.5
Total restructured loans	$	233,901		100%		$	223,558		100%		$	207,377		100%
(b) Included in "Total non-accrual loans" above

	AMOUNT			CO % (c)		AMOUNT			CO % (c)		AMOUNT			CO % (c)
Net Charge-offs (Recoveries) by Category
Single-Family Residential	$	157		0.01%		$	186		0.01%		$	267		0.02%
Construction	—			—		—			—		—			—
Construction - Custom	3			—		—			—		13			0.01
Land - Acquisition & Development	(4,168		)	(14.04)		(863		)	(2.89)		(1,729		)	(5.56)
Land - Consumer Lot Loans	(180		)	(0.71)		(118		)	(0.46)		(113		)	(0.43)
Multi-Family	—			—		—			—		—			—
Commercial Real Estate	(1,164		)	(0.36)		(164		)	(0.05)		—			—
Commercial & Industrial	(112		)	(0.04)		(154		)	(0.06)		(727		)	(0.27)
HELOC	53			0.15		(1		)	—		(19		)	(0.05)
Consumer	195			0.72		(138		)	(0.58)		(236		)	(1.11)
Total net charge-offs (recoveries)	$	(5,216	)	(0.18)%		$	(1,252	)	(0.04)%		$	(2,544	)	(0.08)%
(c) Annualized Net Charge-offs (recoveries) divided by Gross Balance

Interest Rate Risk
One Year GAP				(14.7	)%				(15.8	)%				(15.7	)%
NPV post 200 bps shock (d)				13.9	%				14.5	%				14.6	%
Change in NII after 200 bps shock (d)				1.3	%				2.0	%				3.0	%
(d) Assumes no balance sheet management actions taken

Washington Federal, Inc.

Fact Sheet

September 30, 2017

($ in Thousands)



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

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	%
12/31/2016	19.3	%	24.8	%
3/31/2017	13.6	%	13.5	%
6/30/2017	15.0	%	20.9	%
9/30/2017	15.1	%	14.3	%

(e) 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, 2017

Average Balance Sheet

($ in Thousands)



	Quarter Ended
	March 31, 2017						June 30, 2017						September 30, 2017
	Average				Average		Average				Average		Average				Average
	Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
Assets
Loans receivable	$	10,267,530	$	116,034	4.58	%	$	10,579,593	$	117,457	4.45	%	$	10,747,453	$	122,197	4.51	%
Mortgage-backed securities	2,664,959		16,226		2.47		2,551,598		15,992		2.51		2,493,604		15,605		2.48
Cash & investments	632,114		3,068		1.97		627,197		3,373		2.16		604,198		3,500		2.30
FHLB & FRB Stock	118,092		870		2.99		124,968		894		2.87		122,620		938		3.03

Total interest-earning assets	13,682,695		136,198		4.04	%	13,883,356		137,716		3.98	%	13,967,875		142,240		4.04	%
Other assets	1,161,023						1,142,899						1,144,200
Total assets	$	14,843,718					$	15,026,255					$	15,112,075

Liabilities and Equity
Customer accounts	10,578,631		12,392		0.48	%	10,567,710		12,764		0.48	%	10,704,066		13,850		0.51	%
FHLB advances	2,102,556		16,079		3.10		2,274,451		16,337		2.88		2,214,674		15,958		2.86
Other borrowings	—		—		—		—		—		—		—		—		—

Total interest-bearing liabilities	12,681,187		28,471		0.91	%	12,842,161		29,101		0.91	%	12,918,740		29,808		0.92	%
Other liabilities	153,105						155,460						183,542
Total liabilities	12,834,292						12,997,621						13,102,282
Stockholders’ equity	2,009,426						2,028,634						2,009,793
Total liabilities and equity	$	14,843,718					$	15,026,255					$	15,112,075

Net interest income			$	107,727					$	108,615					$	112,432

Net interest margin (1)					3.15	%					3.13	%					3.22	%

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

Washington Federal, Inc.

Fact Sheet

September 30, 2017

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, 2017
Single-Family Residential	25,556	223	$	5,709,690	64	29	109	202	0.79	%	$	37,757	0.66	%
Construction	715	1,110	793,959		—	—	—	—	—		—		—
Construction - Custom	1,292	215	277,599		—	—	1	1	0.08		91		0.03
Land - Acquisition & Development	122	859	104,856		—	—	4	4	3.28		330		0.31
Land - Consumer Lot Loans	1,201	87	104,335		3	6	5	14	1.17		946		0.91
Multi-Family	1,135	1,148	1,303,119		2	1	3	6	0.53		399		0.03
Commercial Real Estate	931	1,541	1,434,610		2	—	8	10	1.07		2,558		0.18
Commercial & Industrial	1,820	601	1,093,360		—	2	20	22	1.21		625		0.06
HELOC	2,877	50	144,850		6	4	15	25	0.87		876		0.60
Consumer	4,039	21	85,075		50	24	103	177	4.38		431		0.51
	39,688	278	$	11,051,453	127	66	268	461	1.16	%	$	44,013	0.40	%

June 30, 2017
Single-Family Residential	25,779	221	$	5,687,169	68	36	123	227	0.88	%	$	44,653	0.79	%
Construction	624	1,095	683,273		—	1	—	1	0.16		686		0.10
Construction - Custom	1,218	221	269,612		—	—	2	2	0.16		536		0.20
Land - Acquisition & Development	118	941	111,057		—	—	4	4	3.39		123		0.11
Land - Consumer Lot Loans	1,187	86	101,584		1	2	6	9	0.76		615		0.61
Multi-Family	964	1,310	1,263,143		1	1	2	4	0.41		329		0.03
Commercial Real Estate	1,073	1,254	1,345,986		2	3	9	14	1.30		2,911		0.22
Commercial & Industrial	1,816	615	1,116,854		3	1	23	27	1.49		2,673		0.24
HELOC	2,914	51	148,581		14	7	6	27	0.93		1,491		1.00
Consumer	4,275	22	95,774		51	18	97	166	3.88		384		0.40
	39,968	271	$	10,823,033	140	69	272	481	1.20	%	$	54,401	0.50	%

March 31, 2017
Single-Family Residential	25,999	219	$	5,692,305	74	36	163	273	1.05	%	$	53,147	0.93	%
Construction	633	938	593,479		4	—	—	4	0.63		601		0.10
Construction - Custom	1,149	219	251,906		—	—	2	2	0.17		240		0.10
Land - Acquisition & Development	122	847	103,280		1	—	3	4	3.28		262		0.25
Land - Consumer Lot Loans	1,187	85	101,168		3	2	12	17	1.43		1,261		1.25
Multi-Family	968	1,309	1,266,845		—	—	4	4	0.41		1,224		0.10
Commercial Real Estate	1,067	1,215	1,296,019		7	1	10	18	1.69		6,342		0.49
Commercial & Industrial	1,836	584	1,071,622		13	2	32	47	2.56		4,964		0.46
HELOC	2,939	50	146,169		5	2	32	39	1.33		814		0.56
Consumer	4,542	24	107,759		70	19	75	164	3.61		601		0.56
	40,442	263	$	10,630,552	177	62	333	572	1.41	%	$	69,456	0.65	%

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WASHINGTON FEDERAL INC Reports