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

Attached files

file	filename
8-K - 8-K - WASHINGTON FEDERAL INC	wafd8-k_apr152014.htm
EX-99.1 - EXHIBIT 99.1 - WASHINGTON FEDERAL INC	exhibit991_mar2014earnings.htm

Washington Federal, Inc.

Fact Sheet

March 31, 2014

($ in Thousands)



Exhibit 99.2
	9/13 QTR						12/13 QTR						3/14 QTR

Loan Loss Reserve - Total	$	116,741					$	118,158					$	114,931
General	113,268						116,552						114,096
Specific	3,473						1,606						835
Allowance as a % of Gross Loans	1.46		%				1.46		%				1.40		%

Regulatory Capital Ratios (excludes holding co.)
Tangible	1,609,914					12.59%	1,615,112				12.01%		1,653,499					11.74%
Tier 1 Risk Based	1,609,914					24.38%	1,615,112				23.80%		1,653,499					23.99%
Risk Based	1,693,227					25.64%	1,700,453				25.06%		1,740,488					25.25%

	9/13 QTR			9/13 YTD			12/13 QTR			12/13 YTD			3/14 QTR			3/14 YTD
Loan Originations - Total	$	706,703		$	1,966,035		$	500,601			$	500,601	$	435,145		$	935,746
Single-Family Residential	219,779			707,310			176,277				176,277		123,806			300,083
Construction - Speculative	56,990			173,446			44,540				44,540		34,587			79,127
Construction - Custom	180,270			304,156			86,651				86,651		73,008			159,659
Land - Acquisition & Development	9,158			22,590			10,485				10,485		11,277			21,762
Land - Consumer Lot Loans	3,481			14,324			2,222				2,222		1,981			4,203
Multi-Family	128,632			309,636			58,827				58,827		52,836			111,663
Commercial Real Estate	48,495			163,577			34,365				34,365		68,884			103,249
Commercial & Industrial	46,711			225,809			77,469				77,469		57,356			134,825
HELOC	13,187			44,872			9,677				9,677		10,890			20,567
Consumer	—			315			88				88		520			608

Purchased Loans (including acquisitions)	$	83,632		$	538,462		$	67,099			$	67,099	$	33,712				100,811
Net Loan Fee and Discount Accretion	$	8,813		$	26,443		$	6,298			$	6,298	$	5,977				12,275

Washington Federal, Inc.

Fact Sheet

March 31, 2014

($ in Thousands)



	9/13 QTR			9/13 YTD			12/13 QTR			12/13 YTD				3/14 QTR			3/14 YTD
Repayments
Loans	$	574,330		$	2,353,061		$	486,143			$	486,143		$	416,068		$	902.211
MBS	117,339			510,500			68,761				68,761			73,041			$	141.802

MBS Premium Amortization	$	3,778		$	16,921		$	1,674			$	1,674		$	1,972		$	3,646

Loan Servicing Fee Income	$	2,598		$	8,585		$	2,046			$	2,046		$	1,324		$	3,370
Other Fee Income	998			5,363			1,949				1,949			3,515			5,464
Total Fee Income	$	3,596		$	13,949		$	3,995			$	3,995		$	4,839		8,834

Efficiency
Operating Expenses/Average Assets	1.32		%	1.27		%	1.36		%		1.36		%	1.43		%	1.40				%
Efficiency Ratio	41.98			40.85			42.38				42.38			48.50			45.49
Amortization of Intangibles	$	400		$	1,786		$	821			$	821		$	728		$	1,549

EOP Numbers
Shares Issued and Outstanding	102,484,796						102,329,576							101,763,415

Share repurchase information
Remaining shares auth. for repurchase	9,872,834			9,872,834			9,017,934				9,017,934			8,424,634					8,424,634
Shares repurchased	1,120,400			6,315,196			854,900				854,900			593,300					1,448,200
Average share repurchase price	$	20.71		$	17.46		$	22.16			$	22.16		$	21.63				$	21.94

Washington Federal, Inc.

Fact Sheet

March 31, 2014

($ in Thousands)



Tangible Common Book Value	9/13 QTR			12/13 QTR			3/14 QTR
$ Amount	$	1,673,317		$	1,653,965		$	1,680,468
Per Share	16.33			16.16			16.51

# of Employees	1,457			1,848			1,846
Tax Rate - Going Forward	36.15		%	35.75		%	35.75		%

Investments
Available-for-sale:
Agency MBS	$	1,251,176		$	1,633,643		$	1,709,872
Other	1,109,772			1,204,860			1,400,703
	$	2,360,948		$	2,838,503		$	3,110,575
Held-to-maturity:
Agency MBS	$	1,654,666		$	1,630,936		$	1,611,303
Other	—			—			—
	$	1,654,666		$	1,630,936		$	1,611,303

Washington Federal, Inc.

Fact Sheet

March 31, 2014

($ in Thousands)



	AS OF 9/30/13			AS OF 12/31/13			AS OF 3/31/14
Gross Loan Portfolio by Category *	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,373,950	67.2%	$	5,436,083	67.1%	$	5,462,093	66.8%
Construction - Speculative	130,778		1.6	135,868		1.7	135,001		1.7
Construction - Custom	302,722		3.8	333,954		4.1	354,279		4.3
Land - Acquisition & Development	81,660		1.0	75,506		0.9	77,049		0.9
Land - Consumer Lot Loans	124,984		1.6	122,467		1.5	116,864		1.4
Multi-Family	835,598		10.5	846,115		10.4	869,635		10.6
Commercial Real Estate	625,293		7.8	622,240		7.7	634,457		7.8
Commercial & Industrial	326,450		4.1	354,166		4.4	351,705		4.3
HELOC	133,631		1.7	131,949		1.6	131,852		1.6
Consumer	55,479		0.7	51,961		0.6	48,239		0.6
	7,990,545		100.0%	8,110,309		100.0%	8,181,174		100.0%
Less:
ALL	116,741			118,158			114,931
Loans in Process	275,577			273,263			264,946
Discount on Acquired Loans	34,143			31,485			29,286
Deferred Net Origination Fees	36,054			35,845			34,902
Sub-Total	462,515			458,751			444,065
	$	7,528,030		$	7,651,558		$	7,737,109


Net Loan Portfolio by Category *	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,281,131	70.2%	$	5,342,080	69.8%	$	5,371,177	69.4%
Construction - Speculative	73,424		1.0	78,769		1.0	81,604		1.1
Construction - Custom	127,846		1.7	158,376		2.1	174,987		2.3
Land - Acquisition & Development	65,534		0.9	61,539		0.8	63,572		0.8
Land - Consumer Lot Loans	120,345		1.6	118,134		1.5	113,020		1.5
Multi-Family	786,508		10.4	796,776		10.4	844,007		10.9
Commercial Real Estate	592,216		7.9	591,022		7.7	592,594		7.7
Commercial & Industrial	300,207		4.0	328,538		4.3	323,045		4.2
HELOC	129,929		1.7	128,427		1.7	128,456		1.7
Consumer	50,889		0.7	47,897		0.6	44,647		0.6
	$	7,528,030	100.0%	$	7,651,558	100.0%	$	7,737,109	100.0%
* Excludes covered loans

Washington Federal, Inc.

Fact Sheet

March 31, 2014

($ in Thousands)



	AS OF 9/30/13					AS OF 12/31/13					AS OF 3/31/14
Deposits by State	AMOUNT		%		#	AMOUNT		%		#	AMOUNT		%		#
WA	$	4,230,693	46.6	%	63	$	5,126,066	49.3	%	82	$	5,142,077	49.7	%	82
ID	545,781		6.0		16	816,400		7.8		31	811,048		7.8		29
OR	1,993,863		21.9		44	1,870,196		18.0		50	1,840,375		17.8		49
UT	330,044		3.6		10	326,829		3.1		10	319,954		3.1		10
NV	191,182		2.1		4	187,681		1.8		4	182,035		1.8		4
TX	101,458		1.1		4	109,258		1.1		5	106,874		1.0		5
AZ	1,086,447		12.0		23	1,067,681		10.3		23	1,030,346		10.0		23
NM	610,803		6.7		18	898,615		8.6		30	912,182		8.8		29
Total	$	9,090,271	100.0	%	182	$	10,402,726	100.0	%	235	$	10,344,891	100.0	%	231


Deposits by Type	AMOUNT		%			AMOUNT		%			AMOUNT		%
Checking (noninterest)	$	447,368	4.9	%		$	674,824	6.5	%		$	691,577	6.7	%
NOW (interest)	800,516		8.8			1,227,548		11.8			1,265,041		12.2
Savings (passbook/stmt)	404,938		4.5			542,573		5.2			575,440		5.6
Money Market	1,888,020		20.8			2,268,979		21.8			2,342,263		22.6
CD's	5,549,429		61.0			5,688,802		54.7			5,470,570		52.9
Total	$	9,090,271	100.0	%		$	10,402,726	100.0	%		$	10,344,891	100.0	%

Deposits greater than $250,000 - EOP	$	1,336,054				$	1,578,895				$	1,677,326

Washington Federal, Inc.

Fact Sheet

March 31, 2014

($ in Thousands)




Non-Performing Assets	AMOUNT			%	AMOUNT			%	AMOUNT			%
Non-accrual loans:
Single-Family Residential	$	100,460		76.5%	$	89,075		77.6%	$	81,740		77.6%
Construction - Speculative	4,560			3.5	3,053			2.7	2,132			2.7
Construction - Custom	—			—	—			—	265			—
Land - Acquisition & Development	2,903			2.2	2,813			2.5	2,113			2.5
Land - Consumer Lot Loans	3,337			2.5	3,548			3.1	3,007			3.1
Multi-Family	6,573			5.0	2,494			2.2	2,199			2.2
Commercial Real Estate	11,736			8.9	11,613			10.1	7,101			10.1
Commercial & Industrial	477			0.4	655			0.6	579			0.6
HELOC	263			0.2	471			0.4	441			0.4
Consumer	990			0.8	995			0.9	621			0.9
Total non-accrual loans	131,299			100.0%	114,717			100.0%	100,198			100.0%
Total REO	72,925				71,537				60,995
Total REHI	9,392				11,656				13,596
Total non-performing assets	$	213,616			$	197,910			$	174,789

Total non-performing assets as a
% of total assets	1.63		%		1.37		%		1.22		%

Washington Federal, Inc.

Fact Sheet

March 31, 2014

($ in Thousands)



	9/13 QTR			12/13 QTR			3/14 QTR
	AMOUNT		%	AMOUNT		%	AMOUNT		%
Restructured loans:
Single-Family Residential	$	356,576	85.8	$	355,449	85.7	$	348,918	86.1
Construction - Speculative	10,733		2.6	9,705		2.3	9,416		2.3
Construction - Custom	1,196		0.3	1,196		0.3	1,196		0.3
Land - Acquisition & Development	7,211		1.7	6,037		1.5	5,164		1.3
Land - Consumer Lot Loans	12,706		3.1	13,411		3.2	13,270		3.3
Multi-Family	7,557		1.8	8,701		2.1	7,727		1.9
Commercial Real Estate	18,539		4.5	18,749		4.5	18,107		4.5
Commercial & Industrial	56		—	44		—	31		—
HELOC	1,088		0.3	1,198		0.3	1,198		0.3
Consumer	33		—	71		—	197		—
Total restructured loans (2)	$	415,696	100.0%	$	414,561	100.0%	$	405,224	100.0%

(2) Restructured loans were as follows:
Performing	$	391,415	94.2%	$	390,841	94.3%	$	381,849	94.2%
Non-accrual *	24,281		5.8	23,720		5.7	23,375		5.8
* Included in "Total non-accrual loans" above	$	415,696	100.0%	$	414,561	100.0%	$	405,224	100.0%

Washington Federal, Inc.

Fact Sheet

March 31, 2014

($ in Thousands)



	9/13 QTR					12/13 QTR					3/14 QTR
	AMOUNT			CO %**		AMOUNT			CO %**		AMOUNT			CO %**
Net Charge-offs by Category
Single-Family Residential	$	(482	)	(0.04	)%	$	(6,493	)	(0.48	)%	$	356		0.03	%
Construction - Speculative	135			0.41		355			1.05		488			1.45
Construction - Custom	—			—		—			—		—			—
Land - Acquisition & Development	(2,345		)	(11.49	)	17			0.09		(214		)	(1.11	)
Land - Consumer Lot Loans	222			0.71		220			0.72		231			0.79
Multi-Family	—			—		—			—		—			—
Commercial Real Estate	389			0.25		—			—		73			0.05
Commercial & Industrial	1,008			1.24		(173		)	(0.20	)	(2,408		)	(2.74	)
HELOC	69			0.21		—			—		—			—
Consumer	117			0.84		56			0.43		(49		)	(0.41	)
Total net charge-offs	$	(887	)	(0.04	)%	$	(6,017	)	(0.30	)%	$	(1,523	)	(0.07	)%
** Annualized Net Charge-offs divided by Gross Balance

SOP 03-3
Accretable Yield	$	115,513				$	104,808				$	107,199
Non-Accretable Yield	194,794					194,794					183,645
Total Contractual Payments	$	310,307				$	299,602				$	290,844

Interest Rate Risk
One Year GAP				(12.9	)%				(12.2	)%				(13.9	)%
NPV post 200 bps shock*				17.42	%				15.48	%				15.22	%
Change in NII after 200 bps shock*				(1.6	)%				(5.8	)%				(2.1	)%
* Assumes no balance sheet management

CD's Repricing	Amount			Rate		Amount			Rate		Amount			Rate
Within 3 months	$	1,106,415		0.71	%	$	1,341,855		0.68	%	$	986,727		0.51	%
From 4 to 6 months	1,290,152			0.71		958,932			0.52		1,233,943			0.62
From 7 to 9 months	567,405			0.70		782,531			0.79		520,909			0.82
From 10 to 12 months	638,684			0.81		507,249			0.84		637,091			0.92

Washington Federal, Inc.

Fact Sheet

March 31, 2014

($ in Thousands)



Historical CPR Rates ***
	WAFD		WAFD
Average for Quarter Ended	SFR Mortgages		GSE MBS
12/31/2011	22.0	%	32.6	%
3/31/2012	19.5		27.5
6/30/2012	20.9		30.7
9/30/2012	22.9		30.7
12/31/2012	25.0		18.2
3/31/2013	24.0		21.7
6/30/2013	26.8		17.4
9/30/2013	21.4		15.9
12/31/2013	13.5		8.7
3/31/2014	10.1		8.5

*** 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, 2014

Delinquency Summary (excludes covered loans)

($ 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, 2014
Single-Family Residential	28,879	189	$	5,459,457	157	56	309	522	1.81	%	$	102,946	1.89	%
Construction - Speculative	469	190	88,954		1	—	2	3	0.64	%	830		0.93	%
Construction - Custom	780	228	178,099		4	—	1	5	0.64	%	1,475		0.83	%
Land - Acquisition & Development	134	524	70,207		—	2	4	6	4.48	%	2,464		3.51	%
Land - Consumer Lot Loans	1,397	84	116,807		6	3	21	30	2.15	%	3,671		3.14	%
Multi-Family	998	854	852,246		1	—	3	4	0.4	%	1,282		0.15	%
Commercial Real Estate	1,142	542	618,580		8	3	12	23	2.01	%	6,396		1.03	%
Commercial & Industrial	975	361	351,692		3	3	3	9	0.92	%	2,015		0.57	%
HELOC	2,050	64	131,853		10	1	4	15	0.73	%	1,512		1.15	%
Consumer	8,466	6	48,334		141	55	71	267	3.15	%	1,676		3.47	%
	45,290	175	$	7,916,229	331	123	430	884	1.95	%	$	124,267	1.57	%

December 31, 2013
Single-Family Residential	28,952	188	$	5,433,051	185	56	339	580	2	%	$	114,498	2.11	%
Construction - Speculative	476	184	87,485		1	2	6	9	1.89	%	1,087		1.24	%
Construction - Custom	721	215	154,776		2	—	—	2	0.28	%	166		0.11	%
Land - Acquisition & Development	130	534	69,458		1	1	4	6	4.62	%	2,600		3.74	%
Land - Consumer Lot Loans	1,440	85	122,285		9	3	25	37	2.57	%	4,857		3.97	%
Multi-Family	1,011	808	816,408		3	—	4	7	0.69	%	2,722		0.33	%
Commercial Real Estate	1,173	525	615,534		6	1	21	28	2.39	%	9,578		1.56	%
Commercial & Industrial	993	357	354,139		9	1	3	13	1.31	%	3,000		0.85	%
HELOC	2,046	64	131,949		8	2	7	17	0.83	%	1,260		0.95	%
Consumer	8,850	6	51,961		154	52	80	286	3.23	%	2,276		4.38	%
	45,792	171	$	7,837,046	378	118	489	985	2.15	%	$	142,044	1.81	%

September 30, 2013
Single-Family Residential	28,984	185	$	5,371,001	132	67	369	568	1.96	%	$	118,912	2.21	%
Construction - Speculative	481	171	82,422		—	—	11	11	2.29	%	2,375		2.88	%
Construction - Custom	645	202	130,095		3	—	—	3	0.47	%	417		0.32	%
Land - Acquisition & Development	139	543	75,449		—	1	6	7	5.04	%	2,173		2.88	%
Land - Consumer Lot Loans	1,462	85	124,786		8	4	20	32	2.19	%	4,723		3.78	%
Multi-Family	1,036	767	794,478		—	—	5	5	0.48	%	4,771		0.60	%
Commercial Real Estate	1,164	534	621,194		10	5	25	40	3.44	%	14,375		2.31	%
Commercial & Industrial	855	382	326,433		3	1	4	8	0.94	%	682		0.21	%
HELOC	2,023	66	133,631		4	3	5	12	0.59	%	985		0.74	%
Consumer	8,049	7	55,479		145	67	76	288	3.58	%	2,220		4.00	%
	44,838	172	$	7,714,968	305	148	521	974	2.17	%	$	151,633	1.97	%

Washington Federal, Inc.

Fact Sheet

March 31, 2014

Average Balance Sheet

($ in Thousands)



		Quarters Ended
		September 30, 2013						December 31, 2013						March 31, 2014
		Average				Average		Average				Average		Average				Average
		Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
Assets
Loans and covered loans		$	7,724,685	$	112,260	5.77	%	$	7,826,159	$	107,227	5.44	%	$	7,899,864	$	106,334	5.46	%
Mortgage-backed securities		2,773,736		14,195		2.03		3,129,915		19,368		2.46		3,305,428		21,071		2.59
Cash & Investments		1,436,060		3,471		0.96		1,474,296		4,261		1.15		1,915,724		4,540		0.96
FHLB & FRB Stock		166,149		375		0.90		172,607		402		0.92		170,945		406		0.96

Total interest-earning assets		12,100,630		130,301		4.27	%	12,602,977		131,258		4.13	%	13,291,961		132,351		4.04	%
Other assets		949,874						946,963						1,101,299

Total assets		$	13,050,504					$	13,549,940					$	14,393,260

Liabilities and Equity
Customer accounts		$	9,060,426	16,052		0.70	%	$	9,538,339	15,499		0.64	%	$	10,355,866	14,780		0.58	%
FHLB advances		1,930,000		17,291		3.54		2,030,000		17,447		3.41	%	1,930,000		16,935		3.56	%
Other borrowings		—		—		—		—		—		—		—		—		—

Total interest-bearing liabilities		10,990,426		33,343		1.20	%	11,568,339		32,946		1.13	%	12,285,866		31,715		1.05	%
Other liabilities		128,667						28,618						126,711

Total liabilities		11,119,093						11,596,957						12,412,577
Stockholders’ equity		1,931,411						1,952,983						1,980,683

Total liabilities and equity		$	13,050,504					$	13,549,940					$	14,393,260

Net interest income				$	96,958					$	98,312					$	100,636

Net interest margin (1)						3.21	%					3.12	%					3.03	%

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

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WASHINGTON FEDERAL INC Reports