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_sep2018earnings.htm
8-K - 8-K - WASHINGTON FEDERAL INC	sep302018wafdearningsrelea.htm

Exhibit 99.2

Washington Federal, Inc.

Fact Sheet

September 30, 2018

($ in Thousands)



	As of 03/18						As of 06/18						As of 09/18
Loan Loss Reserve - Total	$	134,326					$	135,416					$	136,507
General and Specific Allowance	127,576						128,666						129,257
Commitments Reserve	6,750						6,750						7,250
Allowance and Reserve as a % of Gross Loans	1.07		%				1.06		%				1.06		%

	03/18 QTR			03/18 YTD			06/18 QTR			06/18 YTD			09/18 QTR			09/18 YTD
Loan Originations - Total	$	819,017		$	1,772,569		$	1,095,907		$	2,868,476		$	965,518		$	3,833,994
Single-Family Residential	139,255			297,341			164,118			461,459			159,972			621,431
Construction	209,952			489,785			346,254			836,039			232,404			1,068,443
Construction - Custom	128,112			227,832			151,905			379,737			144,214			523,951
Land - Acquisition & Development	17,008			41,457			26,381			67,838			17,370			85,208
Land - Consumer Lot Loans	6,868			16,147			10,036			26,183			7,637			33,820
Multi-Family	36,068			123,654			59,758			183,412			88,634			272,046
Commercial Real Estate	81,518			145,667			81,511			227,178			47,064			274,242
Commercial & Industrial	180,423			392,487			230,853			623,340			245,997			869,337
HELOC	19,065			36,716			24,208			60,924			21,584			82,508
Consumer	748			1,483			883			2,366			642			3,008

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

Net Loan Fee and Discount Accretion	$	4,142		$	7,651		$	4,498		$	12,149		$	3,050		$	15,199

Repayments
Loans	$	743,611		$	1,603,194		$	890,520		$	2,493,714		$	842,182		$	3,335,896
MBS	84,444			177,252			82,983			260,235			77,803			338,038

MBS Premium Amortization	$	2,318		$	4,524		$	1,987		$	6,511		$	1,997		$	8,508

Efficiency
Operating Expenses/Average Assets	1.69		%	1.65		%	1.70		%	1.67		%	1.77		%	1.69		%
Efficiency Ratio (%) (a)	50.65		%	48.94		%	50.62		%	49.51		%	52.94		%	50.37		%
Amortization of Intangibles	$	485		$	1,190		$	506		$	1,696		$	510		$	2,206
(a) Efficiency ratio for the year to date periods ending March 31, 2018, June 30, 2018 and September 30, 2018 excludes the impact of $8.55 million reduction to non-interest income related to FDIC loss share valuation adjustments.

EOP Numbers
Shares Issued and Outstanding	84,749,203						83,534,098						82,710,911

Share repurchase information
Remaining shares authorized for repurchase (b)	4,080,149						2,855,765						2,032,598
Shares repurchased	1,673,436			2,820,806			1,224,384			4,045,190			823,167			4,868,357
Average share repurchase price	$	34.66		$	34.38		$	32.64		$	33.85		$	33.17		$	33.74
(b) Remaining shares authorized for repurchase reflects a reduction related to TARP warrants repurchased to date.

Washington Federal, Inc.

Fact Sheet

September 30, 2018

($ in Thousands)



Tangible Common Book Value	As of 03/18			As of 06/18			As of 09/18
$ Amount	$	1,676,370		$	1,674,467		$	1,685,622
Per Share	19.78			20.05			20.38

# of Employees	1,855			1,869			1,877
Investments
Available-for-sale:
Agency MBS	$	875,183		$	831,914		$	899,502
Other	394,088			423,487			415,455
	$	1,269,271		$	1,255,401		$	1,314,957
Held-to-maturity:
Agency MBS	$	1,716,566		$	1,670,450		$	1,625,420
	$	1,716,566		$	1,670,450		$	1,625,420

	As of 03/31/18			As of 06/30/18			As of 09/30/18
Loans Receivable by Category	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,705,350	45.5%	$	5,745,598	45.1%	$	5,798,966	45.1%
Construction	1,732,202		13.8	1,885,034		14.8	1,890,668		14.7
Construction - Custom	597,671		4.8	612,688		4.8	624,479		4.9
Land - Acquisition & Development	141,628		1.1	150,936		1.2	155,204		1.2
Land - Consumer Lot Loans	102,779		0.8	103,118		0.8	102,036		0.8
Multi-Family	1,328,049		10.6	1,346,534		10.6	1,385,125		10.8
Commercial Real Estate	1,443,437		11.5	1,435,418		11.3	1,452,168		11.3
Commercial & Industrial	1,151,108		9.2	1,133,075		8.9	1,140,874		8.9
HELOC	135,119		1.1	136,766		1.1	130,852		1.0
Consumer	202,911		1.6	188,125		1.5	173,306		1.3
	12,540,254		100%	12,737,292		100%	12,853,678		100%
Less:
ALL	127,576			128,666			129,257
Loans in Process	1,141,018			1,230,132			1,195,506
Net Deferred Fees, Costs and Discounts	47,572			52,523			51,834
Sub-Total	1,316,166			1,411,321			1,376,597
	$	11,224,088		$	11,325,971		$	11,477,081

Net Loan Portfolio by Category	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,649,005	50.3%	$	5,686,546	50.2%	$	5,741,936	50.0%
Construction	882,805		7.9	974,339		8.6	1,023,914		8.9
Construction - Custom	291,387		2.6	281,320		2.5	284,832		2.5
Land - Acquisition & Development	110,912		1.0	113,186		1.0	114,956		1.0
Land - Consumer Lot Loans	99,453		0.9	99,708		0.9	99,332		0.9
Multi-Family	1,315,064		11.7	1,332,874		11.8	1,371,187		11.9
Commercial Real Estate	1,426,085		12.7	1,417,881		12.5	1,434,460		12.5
Commercial & Industrial	1,117,211		10.0	1,100,891		9.7	1,107,571		9.7
HELOC	133,798		1.2	135,391		1.2	129,544		1.1
Consumer	198,368		1.8	183,835		1.6	169,349		1.5
	$	11,224,088	100%	$	11,325,971	100%	$	11,477,081	100%

Washington Federal, Inc.

Fact Sheet

September 30, 2018

($ in Thousands)



	As of 03/31/18						As of 06/30/18						As of 09/30/18
Deposits by State	AMOUNT			%		#	AMOUNT			%		#	AMOUNT			%		#
Washington	$	5,612,276		50.4	%	81	$	5,920,446		52.5	%	81	$	5,967,219		52.4	%	80
Idaho	792,940			7.1		24	785,183			7.0		24	801,473			7.0		24
Oregon	1,971,848			17.7		47	1,807,275			16.0		46	1,835,782			16.1		46
Utah	265,673			2.4		10	266,200			2.4		10	266,934			2.3		10
Nevada	340,842			3.1		11	340,063			3.0		11	340,204			3.0		11
Texas	102,480			0.9		6	102,371			0.9		6	100,360			0.9		6
Arizona	1,195,010			10.7		31	1,203,224			10.7		31	1,205,696			10.6		31
New Mexico	857,787			7.7		27	862,711			7.6		27	869,478			7.6		27
Total	$	11,138,856		100%		237	$	11,287,473		100%		236	$	11,387,146		100%		235

Deposits by Type	AMOUNT			%			AMOUNT			%			AMOUNT			%
Checking (non-interest)	$	1,325,035		11.9	%		$	1,460,096		12.9	%		$	1,401,226		12.3	%
NOW (interest)	1,818,177			16.3			1,787,035			15.8			1,778,520			15.6
Savings	895,017			8.0			865,102			7.7			836,501			7.3
Money Market	2,425,072			21.8			2,460,533			21.8			2,566,096			22.5
Time Deposits	4,675,555			42.0			4,714,707			41.8			4,804,803			42.2
Total	$	11,138,856		100%			$	11,287,473		100%			$	11,387,146		100%

Deposits greater than $250,000 - EOP	$	2,832,268					$	3,000,724					$	3,088,231

Time Deposit Repricing	Amount			Rate			Amount			Rate			Amount			Rate
Within 3 months	$	875,183		0.82	%		$	726,989		0.90	%		$	965,279		1.10	%
From 4 to 6 months	728,099			0.92	%		972,317			1.11	%		623,970			1.05	%
From 7 to 9 months	833,326			1.18	%		455,450			1.06	%		441,633			1.34	%
From 10 to 12 months	428,843			1.06	%		379,439			1.24	%		685,872			1.62	%

Non-Performing Assets	AMOUNT			%			AMOUNT			%			AMOUNT			%
Non-accrual loans:
Single-Family Residential	$	25,319		47.1%			$	26,119		43.1%			$	27,643		49.6%
Construction	2,296			4.3			1,841			3.0			2,427			4.4
Construction - Custom	—			—			—			—			—			—
Land - Acquisition & Development	2,004			3.7			1,757			2.9			920			1.7
Land - Consumer Lot Loans	1,045			1.9			642			1.1			787			1.4
Multi-Family	—			—			—			—			—			—
Commercial Real Estate	9,527			17.7			9,684			16.0			8,971			16.1
Commercial & Industrial	13,362			24.8			19,876			32.8			14,394			25.8
HELOC	217			0.4			637			1.1			523			0.9
Consumer	38			0.1			28			—			21			—
Total non-accrual loans	53,808			100%			60,584			100%			55,686			100%
Real Estate Owned	15,904						11,275						11,298
Other Property Owned	—						—						3,109
Total non-performing assets	$	69,712					$	71,859					$	70,093

Non-performing loans as % of total net loans	0.48		%				0.53		%				0.49		%
Non-performing assets as % of total assets	0.45		%				0.46		%				0.44		%

Washington Federal, Inc.

Fact Sheet

September 30, 2018

($ in Thousands)



	As of 03/31/18					As of 06/30/18					As of 09/30/18
	AMOUNT			%		AMOUNT			%		AMOUNT			%
Restructured loans:
Single-Family Residential	$	162,874		85.5%		$	153,356		89.4%		$	139,797		89.1%
Construction	—			—		—			—		—			—
Construction - Custom	—			—		—			—		—			—
Land - Acquisition & Development	—			—		—			—		107			0.1
Land - Consumer Lot Loans	6,837			3.6		5,136			3.0		4,916			3.1
Multi-Family	474			0.2		461			0.3		448			0.3
Commercial Real Estate	11,818			6.2		7,162			4.2		6,254			4.0
Commercial & Industrial	7,006			3.7		3,924			2.3		4,290			2.7
HELOC	1,424			0.7		1,491			0.9		976			0.6
Consumer	86			—		73			—		70			—
Total restructured loans	$	190,519		100%		$	171,603		100%		$	156,858		100%

Restructured loans were as follows:
Performing	$	186,057		97.7%		$	165,857		96.7%		$	150,667		96.1%
Non-performing (c)	4,462			2.3		5,746			3.3		6,191			3.9
Total restructured loans	$	190,519		100%		$	171,603		100%		$	156,858		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	$	79		0.01%		$	16		—%		$	(49	)	—%
Construction	—			—		—			—		—			—
Construction - Custom	—			—		—			—		—			—
Land - Acquisition & Development	(1,207		)	(3.41)		(2,687		)	(7.12)		(6,944		)	(17.90)
Land - Consumer Lot Loans	18			0.07		(34		)	(0.13)		—			—
Multi-Family	—			—		—			—		—			—
Commercial Real Estate	35			0.01		(91		)	(0.03)		(97		)	(0.03)
Commercial & Industrial	(115		)	(0.04)		2,884			1.02		30			0.01
HELOC	1			—		—			—		596			1.82
Consumer	(182		)	(0.36)		(178		)	(0.38)		(42		)	(0.10)
Total net charge-offs (recoveries)	$	(1,371	)	(0.04)%		$	(90	)	—%		$	(6,506	)	(0.20)%
(d) Annualized Net Charge-offs (recoveries) divided by Gross Balance

Interest Rate Risk
One Year GAP				(13.9	)%				(11.6	)%				(10.7	)%
NPV post 200 bps shock (e)				13.1	%				11.9	%				12.9	%
Change in NII after 200 bps shock (e)				0.1	%				(1.2	)%				(1.9	)%
(e) Assumes no balance sheet management actions taken

Washington Federal, Inc.

Fact Sheet

September 30, 2018

($ in Thousands)



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

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	%
6/30/2018	13.0	%	12.0	%
9/30/2018	12.3	%	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.

Washington Federal, Inc.

Fact Sheet

September 30, 2018

Average Balance Sheet

($ in Thousands)



	Quarter Ended
	March 31, 2018						June 30, 2018						September 30, 2018
	Average				Average		Average				Average		Average				Average
	Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
Assets
Loans receivable	$	11,138,747	$	126,529	4.61	%	$	11,322,932	$	131,541	4.66	%	$	11,361,886	$	133,226	4.65	%
Mortgage-backed securities	2,592,340		17,667		2.76		2,550,004		18,022		2.83		2,512,555		17,819		2.81
Cash & investments	579,628		3,668		2.57		584,918		4,077		2.80		612,575		4,439		2.87
FHLB & FRB Stock	131,252		1,215		3.75		135,313		1,432		4.24		124,838		1,668		5.30

Total interest-earning assets	14,441,967		149,079		4.19	%	14,593,167		155,072		4.26	%	14,611,854		157,152		4.27	%
Other assets	1,157,987						1,154,328						1,161,389
Total assets	$	15,599,954					$	15,747,495					$	15,773,243

Liabilities and Equity
Customer accounts	10,988,517		16,414		0.61	%	11,075,998		18,887		0.68	%	11,356,934		22,553		0.79	%
FHLB advances	2,431,556		15,364		2.56		2,533,077		16,333		2.59		2,271,196		15,348		2.68
Other borrowings	33		—		—		—		—		—		—		—		—

Total interest-bearing liabilities	13,420,106		31,778		0.96	%	13,609,075		35,220		1.04	%	13,628,130		37,901		1.10	%
Other liabilities	170,829						142,557						142,180
Total liabilities	13,590,935						13,751,632						13,770,310
Stockholders’ equity	2,009,019						1,995,863						2,002,933
Total liabilities and equity	$	15,599,954					$	15,747,495					$	15,773,243

Net interest income			$	117,301					$	119,852					$	119,251

Net interest margin (1)					3.25	%					3.29	%					3.26	%

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

Washington Federal, Inc.

Fact Sheet

September 30, 2018

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, 2018
Single-Family Residential	24,857	233	$	5,798,353	54	18	89	161	0.65	%	$	30,100	0.52	%
Construction	632	1,682	1,062,855		—	—	4	4	0.63		2,427		0.23
Construction - Custom	1,249	232	289,192		—	—	—	—	—		—		—
Land - Acquisition & Development	126	981	123,560		—	1	2	3	2.38		940		0.76
Land - Consumer Lot Loans	1,186	86	101,908		1	1	5	7	0.59		614		0.60
Multi-Family	1,158	1,196	1,385,103		—	—	—	—	—		—		—
Commercial Real Estate	932	1,558	1,452,169		1	2	6	9	0.97		3,223		0.22
Commercial & Industrial	1,886	605	1,140,874		2	1	28	31	1.64		10,038		0.88
HELOC	2,816	46	130,852		9	8	6	23	0.82		1,342		1.03
Consumer	3,150	55	173,306		31	16	31	78	2.48		529		0.31
	37,992	307	$	11,658,172	98	47	171	316	0.83	%	$	49,213	0.42	%

June 30, 2018
Single-Family Residential	24,922	231	$	5,744,620	47	22	83	152	0.61	%	$	29,658	0.52	%
Construction	650	1,557	1,012,239		—	1	3	4	0.62		2,457		0.24
Construction - Custom	1,230	232	285,858		1	—	—	1	0.08		171		0.06
Land - Acquisition & Development	126	964	121,508		—	1	3	4	3.17		1,915		1.58
Land - Consumer Lot Loans	1,190	87	103,040		2	1	6	9	0.76		737		0.72
Multi-Family	1,145	1,176	1,346,512		—	—	—	—	—		—		—
Commercial Real Estate	929	1,545	1,435,417		1	—	7	8	0.86		2,387		0.17
Commercial & Industrial	1,886	601	1,133,075		2	2	25	29	1.54		6,595		0.58
HELOC	2,839	48	136,766		11	5	21	37	1.30		1,360		0.99
Consumer	3,410	55	188,125		26	20	100	146	4.28		352		0.19
	38,327	300	$	11,507,160	90	52	248	390	1.02	%	$	45,632	0.40	%

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	%

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