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_mar2018earnings.htm
8-K - 8-K - WASHINGTON FEDERAL INC	mar312018wafdearningsrelea.htm

Washington Federal, Inc.

Fact Sheet

March 31, 2018

($ in Thousands)



													Exhibit 99.2

	As of 09/17						As of 12/17						As of 03/18
Loan Loss Reserve - Total	$	130,823					$	133,905					$	134,326
General and Specific Allowance	123,073						127,155						127,576
Commitments Reserve	7,750						6,750						6,750
Allowance and Reserve as a % of Gross Loans	1.07		%				1.08		%				1.07		%

	09/17 QTR			09/17 YTD			12/17 QTR			12/17 YTD			03/18 QTR			03/18 YTD
Loan Originations - Total	$	1,022,853		$	4,238,978		$	953,552		$	953,552		$	819,017		$	1,772,569
Single-Family Residential	189,607			757,116			158,086			158,086			139,255			297,341
Construction	307,416			1,081,464			279,833			279,833			209,952			489,785
Construction - Custom	157,757			530,435			99,720			99,720			128,112			227,832
Land - Acquisition & Development	31,752			79,876			24,449			24,449			17,008			41,457
Land - Consumer Lot Loans	11,728			39,151			9,279			9,279			6,868			16,147
Multi-Family	50,405			299,359			87,586			87,586			36,068			123,654
Commercial Real Estate	103,678			443,687			64,149			64,149			81,518			145,667
Commercial & Industrial	151,930			931,840			212,064			212,064			180,423			392,487
HELOC	17,991			72,913			17,651			17,651			19,065			36,716
Consumer	589			3,137			735			735			748			1,483

Purchased Loans (including acquisitions)	$	—		$	72,856		$	143,605		$	143,605		$	—		$	143,605

Net Loan Fee and Discount Accretion	$	4,181		$	19,055		$	3,509		$	3,509		$	4,142		$	7,651

Repayments
Loans	$	699,619		$	3,099,851		$	859,583		$	859,583		$	743,611		$	1,603,194
MBS	96,156			522,443			92,808			92,808			84,444			177,252

MBS Premium Amortization	$	2,929		$	13,580		$	2,206		$	2,206		$	2,318		$	4,524

Efficiency
Operating Expenses/Average Assets	1.66		%	1.55		%	1.62		%	1.62		%	1.69		%	1.65		%
Efficiency Ratio (%) (a)	48.68		%	47.82		%	47.25		%	47.25		%	50.65		%	48.94		%
Amortization of Intangibles	$	2,053		$	3,347		$	705		$	705		$	485		$	1,190
(a) Efficiency ratio for the six months ended March 31, 2018 excludes the impact of $8.55 million reduction to noninterest income related to FDIC loss share valuation adjustments.

EOP Numbers
Shares Issued and Outstanding	87,193,362						86,363,099						84,749,203

Share repurchase information
Remaining shares authorized for repurchase (b)	1,900,955						753,585						4,080,149
Shares repurchased	1,567,899			3,137,178			1,147,370			1,147,370			1,673,436			2,820,806
Average share repurchase price	$	33.10		$	31.36		$	33.98		$	33.98		$	34.66		$	34.38
(b) Remaining shares authorized for repurchase reflects a reduction related to TARP warrants repurchased for cash to date.

Washington Federal, Inc.

Fact Sheet

March 31, 2018

($ in Thousands)



Tangible Common Book Value	As of 09/17			As of 12/17			As of 03/18
$ Amount	$	1,707,006		$	1,699,040		$	1,676,370
Per Share	19.58			19.67			19.78

# of Employees	1,818			1,829			1,855

Investments
Available-for-sale:
Agency MBS	$	842,688		$	839,855		$	875,183
Other	423,521			406,000			394,088
	$	1,266,209		$	1,245,855		$	1,269,271
Held-to-maturity:
Agency MBS	$	1,646,856		$	1,765,886		$	1,716,566
	$	1,646,856		$	1,765,886		$	1,716,566

	As of 09/17			As of 12/17			As of 03/18
Loans Receivable by Category	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,711,004	46.8%	$	5,693,318	45.7%	$	5,705,350	45.5%
Construction	1,597,996		13.1	1,710,418		13.7	1,732,202		13.8
Construction - Custom	602,631		4.9	583,580		4.7	597,671		4.8
Land - Acquisition & Development	124,308		1.0	136,938		1.1	141,628		1.1
Land - Consumer Lot Loans	104,405		0.9	105,086		0.8	102,779		0.8
Multi-Family	1,303,148		10.7	1,312,695		10.5	1,328,049		10.6
Commercial Real Estate	1,434,610		11.8	1,436,508		11.5	1,443,437		11.5
Commercial & Industrial	1,093,360		9.0	1,120,707		9.0	1,151,108		9.2
HELOC	144,850		1.2	136,995		1.1	135,119		1.1
Consumer	85,075		0.7	219,971		1.8	202,911		1.6
	12,201,387		100%	12,456,216		100%	12,540,254		100%
Less:
ALL	123,073			127,155			127,576
Loans in Process	1,149,934			1,175,642			1,141,018
Net Deferred Fees, Costs and Discounts	45,758			46,377			47,572
Sub-Total	1,318,765			1,349,174			1,316,166
	$	10,882,622		$	11,107,042		$	11,224,088

Net Loan Portfolio by Category	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,652,365	51.9%	$	5,636,013	50.7%	$	5,649,005	50.3%
Construction	763,742		7.0	820,969		7.4	882,805		7.9
Construction - Custom	273,520		2.5	288,162		2.6	291,387		2.6
Land - Acquisition & Development	97,587		0.9	104,426		0.9	110,912		1.0
Land - Consumer Lot Loans	101,265		0.9	101,666		0.9	99,453		0.9
Multi-Family	1,290,640		11.9	1,300,179		11.7	1,315,064		11.7
Commercial Real Estate	1,416,188		13.0	1,418,364		12.8	1,426,085		12.7
Commercial & Industrial	1,060,304		9.7	1,086,533		9.8	1,117,211		10.0
HELOC	143,381		1.3	135,623		1.2	133,798		1.2
Consumer	83,630		0.8	215,107		1.9	198,368		1.8
	$	10,882,622	100%	$	11,107,042	100%	$	11,224,088	100%

Washington Federal, Inc.

Fact Sheet

March 31, 2018

($ in Thousands)



	As of 09/30/17						As of 12/31/17						As of 03/31/18
Deposits by State	AMOUNT			%		#	AMOUNT			%		#	AMOUNT			%		#
Washington	$	5,383,764		49.7	%	81	$	5,605,233		50.9	%	81	$	5,612,276		50.4	%	81
Idaho	786,974			7.3		24	771,350			7.0		24	792,940			7.1		24
Oregon	1,964,490			18.1		47	1,947,171			17.7		47	1,971,848			17.7		47
Utah	267,717			2.5		10	263,405			2.4		10	265,673			2.4		10
Nevada	326,436			3.0		11	331,423			3.0		11	340,842			3.1		11
Texas	97,670			0.9		6	97,108			0.9		6	102,480			0.9		6
Arizona	1,164,743			10.7		31	1,155,381			10.5		31	1,195,010			10.7		31
New Mexico	843,214			7.8		27	830,508			7.5		27	857,787			7.7		27
Total	$	10,835,008		100%		237	$	11,001,579		100%		237	$	11,138,856		100%		237

Deposits by Type	AMOUNT			%			AMOUNT			%			AMOUNT			%
Checking (non-interest)	$	1,258,274		11.6	%		$	1,299,602		11.8	%		$	1,325,035		11.9	%
NOW (interest)	1,760,821			16.3			1,848,594			16.8			1,818,177			16.3
Savings	888,881			8.2			894,879			8.1			895,017			8.0
Money Market	2,453,182			22.6			2,439,537			22.2			2,425,072			21.8
Time Deposits	4,473,850			41.3			4,518,967			41.1			4,675,555			42.0
Total	$	10,835,008		100%			$	11,001,579		100%			$	11,138,856		100%

Deposits greater than $250,000 - EOP	$	2,674,914					$	2,857,838					$	2,832,268

Time Deposit Repricing	Amount			Rate			Amount			Rate			Amount			Rate
Within 3 months	$	668,177		0.65	%		$	730,975		0.74	%		$	875,183		0.82	%
From 4 to 6 months	714,935			0.76	%		871,822			0.83	%		728,099			0.92	%
From 7 to 9 months	653,760			0.85	%		525,594			0.98	%		833,326			1.18	%
From 10 to 12 months	471,057			0.98	%		677,959			1.08	%		428,843			1.06	%

Non-Performing Assets	AMOUNT			%			AMOUNT			%			AMOUNT			%
Non-accrual loans:
Single-Family Residential	$	27,930		56.3%			$	26,219		57.6%			$	25,319		47.1%
Construction	—			—			364			0.8			2,296			4.3
Construction - Custom	91			0.2			—			—			—			—
Land - Acquisition & Development	296			0.6			1,326			2.9			2,004			3.7
Land - Consumer Lot Loans	605			1.2			976			2.1			1,045			1.9
Multi-Family	139			0.3			250			0.5			—			—
Commercial Real Estate	11,815			23.8			8,241			18.1			9,527			17.7
Commercial & Industrial	8,082			16.3			7,596			16.7			13,362			24.8
HELOC	531			1.1			476			1.0			217			0.4
Consumer	91			0.2			72			0.2			38			0.1
Total non-accrual loans	49,580			100%			45,520			100%			53,808			100%
Real Estate Owned	20,658						17,928						15,904
Total non-performing assets	$	70,238					$	63,448					$	69,712

Non-accrual loans as % of total net loans	0.46		%				0.41		%				0.48		%
Non-performing assets as % of total assets	0.46		%				0.41		%				0.45		%

Washington Federal, Inc.

Fact Sheet

March 31, 2018

($ in Thousands)



	As of 09/30/17					As of 12/31/17					As of 03/31/18
	AMOUNT			%		AMOUNT			%		AMOUNT			%
Restructured loans:
Single-Family Residential	$	181,941		87.7%		$	170,601		85.7%		$	162,874		85.5%
Construction	—			—		—			—		—			—
Construction - Custom	—			—		—			—		—			—
Land - Acquisition & Development	90			—		—			—		—			—
Land - Consumer Lot Loans	7,949			3.8		7,405			3.7		6,837			3.6
Multi-Family	493			0.2		480			0.2		474			0.2
Commercial Real Estate	15,079			7.3		11,910			6.0		11,818			6.2
Commercial & Industrial	—			—		7,256			3.6		7,006			3.7
HELOC	1,728			0.8		1,432			0.7		1,424			0.7
Consumer	97			—		91			—		86			—
Total restructured loans	$	207,377		100%		$	199,175		100%		$	190,519		100%

Restructured loans were as follows:
Performing	$	202,272		97.5%		$	194,359		97.6%		$	186,057		97.7%
Non-performing (c)	5,105			2.5		4,816			2.4		4,462			2.3
Total restructured loans	$	207,377		100%		$	199,175		100%		$	190,519		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	$	267		0.02%		$	340		0.02%		$	79		0.01%
Construction	—			—		—			—		—			—
Construction - Custom	13			0.01		50			0.03		—			—
Land - Acquisition & Development	(1,729		)	(5.56)		(3,372		)	(9.85)		(1,207		)	(3.41)
Land - Consumer Lot Loans	(113		)	(0.43)		47			0.18		18			0.07
Multi-Family	—			—		—			—		—			—
Commercial Real Estate	—			—		—			—		35			0.01
Commercial & Industrial	(727		)	(0.27)		61			0.02		(115		)	(0.04)
HELOC	(19		)	(0.05)		—			—		1			—
Consumer	(236		)	(1.11)		(208		)	(0.38)		(182		)	(0.36)
Total net charge-offs (recoveries)	$	(2,544	)	(0.08)%		$	(3,082	)	(0.10)%		$	(1,371	)	(0.04)%
(d) Annualized Net Charge-offs (recoveries) divided by Gross Balance

Interest Rate Risk
One Year GAP				(15.7	)%				(12.9	)%				(13.9	)%
NPV post 200 bps shock (e)				14.6	%				14.2	%				13.1	%
Change in NII after 200 bps shock (e)				3.0	%				1.3	%				0.1	%
(e) Assumes no balance sheet management actions taken

Washington Federal, Inc.

Fact Sheet

March 31, 2018

($ in Thousands)



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

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	%
12/31/2017	15.3	%	13.9	%
3/31/2018	12.1	%	13.3	%

(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

March 31, 2018

Average Balance Sheet

($ in Thousands)




	September 30, 2017						December 31, 2017						March 31, 2018
	Average				Average		Average				Average		Average				Average
	Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
Assets
Loans receivable	$	10,747,453	$	122,197	4.51	%	$	10,984,886	$	124,511	4.50	%	$	11,138,747	$	126,529	4.61	%
Mortgage-backed securities	2,493,604		15,605		2.48		2,521,407		16,899		2.66		2,592,340		17,667		2.76
Cash & investments	604,198		3,500		2.30		559,370		3,273		2.32		579,628		3,668		2.57
FHLB & FRB Stock	122,620		938		3.03		126,229		1,097		3.45		131,252		1,215		3.75

Total interest-earning assets	13,967,875		142,240		4.04	%	14,191,892		145,780		4.08	%	14,441,967		149,079		4.19	%
Other assets	1,144,200						1,149,607						1,157,987
Total assets	$	15,112,075					$	15,341,499					$	15,599,954

Liabilities and Equity
Customer accounts	$	10,704,066	13,850		0.51	%	$	10,850,742	14,638		0.54	%	$	10,988,517	16,414		0.61	%
FHLB advances	2,214,674		15,958		2.86		2,305,978		15,407		2.65		2,431,556		15,364		2.56
Other borrowings	—		—		—		—		—		—		33		—		—

Total interest-bearing liabilities	12,918,740		29,808		0.92	%	13,156,720		30,045		0.91	%	13,420,106		31,778		0.96	%
Other liabilities	183,542						168,382						170,829
Total liabilities	13,102,282						13,325,102						13,590,935
Stockholders’ equity	2,009,793						2,016,397						2,009,019
Total liabilities and equity	$	15,112,075					$	15,341,499					$	15,599,954

Net interest income			$	112,432					$	115,735					$	117,301

Net interest margin (1)					3.22	%					3.26	%					3.25	%

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

Washington Federal, Inc.

Fact Sheet

March 31, 2018

Delinquency Summary

($ in Thousands)



TYPE OF LOANS			AMOUNT OF LOANS		# OF LOANS				% based				% based
	#LOANS	AVG Size	NET OF LIP & CHG-OFFs		30	60	90	Total	on #		$ Delinquent		on $
March 31, 2018
Single-Family Residential	25,089	227	$	5,704,505	35	18	97	150	0.60	%	$	28,900	0.51	%
Construction	682	1,344	916,662		1	—	7	8	1.17		3,243		0.35
Construction - Custom	1,237	239	295,699		—	—	—	—	—		—		—
Land - Acquisition & Development	128	930	119,063		—	—	4	4	3.13		1,863		1.56
Land - Consumer Lot Loans	1,192	86	102,705		2	—	8	10	0.84		868		0.85
Multi-Family	1,130	1,175	1,328,027		3	1	1	5	0.44		163		0.01
Commercial Real Estate	935	1,544	1,443,437		3	1	5	9	0.96		1,978		0.14
Commercial & Industrial	1,864	618	1,151,108		6	2	22	30	1.61		7,723		0.67
HELOC	2,849	47	135,119		5	5	13	23	0.81		253		0.19
Consumer	3,617	56	202,911		37	13	99	149	4.12		498		0.25
	38,723	294	$	11,399,236	92	40	256	388	1.00	%	$	45,489	0.40	%

December 31, 2017
Single-Family Residential	25,325	225	$	5,692,045	51	35	104	190	0.75	%	$	36,172	0.64	%
Construction	675	1,262	852,164		1	3	4	8	1.19		4,371		0.51
Construction - Custom	1,241	235	292,255		—	—	—	—	—		—		—
Land - Acquisition & Development	122	920	112,260		—	—	4	4	3.28		1,242		1.11
Land - Consumer Lot Loans	1,209	87	104,996		2	1	10	13	1.08		750		0.71
Multi-Family	1,122	1,170	1,312,673		—	—	2	2	0.18		250		0.02
Commercial Real Estate	925	1,553	1,436,508		2	—	6	8	0.86		444		0.03
Commercial & Industrial	1,849	606	1,120,707		7	2	23	32	1.73		3,467		0.31
HELOC	2,859	48	136,995		8	4	17	29	1.01		991		0.72
Consumer	3,847	57	219,971		43	15	107	165	4.29		567		0.26
	39,174	288	$	11,280,574	114	60	277	451	1.15	%	$	48,254	0.43	%

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	%

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WASHINGTON FEDERAL INC - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - April 11, 2018

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