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_mar2017earnings.htm
8-K - 8-K - WASHINGTON FEDERAL INC	mar312017wafdearningsrelea.htm

Washington Federal, Inc.

Fact Sheet

March 31, 2017

($ in Thousands)




	As of 09/16						As of 12/16						As of 03/17
Loan Loss Reserve - Total	$	116,729					$	123,356					$	126,972
General and Specific Allowance	113,494						118,456						121,922
Commitments Reserve	3,235						4,900						5,050
Allowance as a % of Gross Loans	1.07		%				1.09		%				1.09		%

	09/16 QTR			09/16 YTD			12/16 QTR			12/16 YTD			03/17 QTR			03/17 YTD
Loan Originations - Total	$	1,190,431		$	3,948,534		$	1,241,046		$	1,241,046		$	944,083		$	2,185,129
Single-Family Residential	236,184			692,575			215,241			215,241			170,547			385,788
Construction	230,597			900,649			338,599			338,599			167,422			506,021
Construction - Custom	144,095			421,816			122,955			122,955			120,646			243,601
Land - Acquisition & Development	25,956			59,511			16,229			16,229			10,336			26,565
Land - Consumer Lot Loans	10,405			29,661			9,065			9,065			8,158			17,223
Multi-Family	63,280			361,261			111,959			111,959			93,279			205,238
Commercial Real Estate	88,770			353,265			164,098			164,098			77,949			242,047
Commercial & Industrial	370,481			1,051,950			243,924			243,924			277,676			521,600
HELOC	19,882			74,538			18,391			18,391			17,221			35,612
Consumer	781			3,308			585			585			849			1,434

Purchased Loans (including acquisitions)	$	53,774		$	105,420		$	—		$	—		$	72,856		$	72,856

Net Loan Fee and Discount Accretion	$	6,730		$	29,898		$	6,762		$	6,762		$	5,764		$	12,526

Repayments
Loans	$	851,578		$	2,935,167		$	896,109		$	896,109		$	710,691		$	1,606,800
MBS	142,329			462,973			178,169			178,169			96,900			275,069

MBS Premium Amortization	$	3,962		$	12,920		$	5,039		$	5,039		$	2,992		$	8,031

Efficiency
Operating Expenses/Average Assets	1.49		%	1.60		%	1.46		%	1.46		%	1.55		%	1.50		%
Efficiency Ratio (%)	48.54		%	50.80		%	47.23		%	47.23		%	48.76		%	48.00		%
Amortization of Intangibles	$	548		$	2,369		$	521		$	521		$	398		$	919

EOP Numbers
Shares Issued and Outstanding	89,680,847						89,272,268						89,438,563

Share repurchase information
Remaining shares authorized for repurchase	5,039,310						4,231,553						4,157,081
Shares repurchased	707,642			3,867,563			757,768			757,768			477			758,245
Average share repurchase price	$	25.20		$	22.72		$	26.90		$	26.90		$	33.55		$	26.91

Washington Federal, Inc.

Fact Sheet

March 31, 2017

($ in Thousands)



Tangible Common Book Value	As of 09/16			As of 12/16			As of 03/17
$ Amount	$	1,678,742		$	1,703,133		$	1,718,625
Per Share	18.72			19.08			19.22

# of Employees	1,806			1,813			1,797
Investments
Available-for-sale:
Agency MBS	$	1,072,912		$	959,661		$	916,006
Other	849,982			482,274			472,776
	$	1,922,894		$	1,441,935		$	1,388,782
Held-to-maturity:
Agency MBS	$	1,417,599		$	1,752,010		$	1,697,650
	$	1,417,599		$	1,752,010		$	1,697,650

	As of 09/16			As of 12/16			As of 03/17
Loans Receivable by Category (a)	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,658,830	51.7%	$	5,624,263	49.6%	$	5,693,072	48.9%
Construction	1,110,411		10.1	1,265,747		11.2	1,311,635		11.3
Construction - Custom	473,069		4.3	494,447		4.4	527,319		4.5
Land - Acquisition & Development	118,497		1.1	119,085		1.1	118,726		1.0
Land - Consumer Lot Loans	104,567		1.0	101,104		0.9	101,227		0.9
Multi-Family	1,124,290		10.3	1,217,594		10.7	1,266,911		10.9
Commercial Real Estate	1,093,639		10.0	1,207,573		10.7	1,296,039		11.1
Commercial & Industrial	978,589		8.9	1,025,821		9.1	1,071,629		9.2
HELOC	149,716		1.4	148,452		1.3	146,172		1.3
Consumer	139,000		1.3	124,547		1.1	107,759		0.9
	10,950,608		100%	11,328,633		100%	11,640,489		100%
Less:
ALL	113,494			118,456			121,922
Loans in Process	879,484			1,027,168			1,009,937
Net Deferred Fees, Costs and Discounts	46,710			46,698			45,608
Sub-Total	1,039,688			1,192,322			1,177,467
	$	9,910,920		$	10,136,311		$	10,463,022

Net Loan Portfolio by Category (a)	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,601,350	56.5%	$	5,565,673	54.9%	$	5,632,558	53.8%
Construction	475,022		4.8	486,784		4.8	564,133		5.4
Construction - Custom	227,348		2.3	233,867		2.3	248,878		2.4
Land - Acquisition & Development	88,408		0.9	95,997		0.9	96,330		0.9
Land - Consumer Lot Loans	101,435		1.0	98,118		1.0	98,252		0.9
Multi-Family	1,113,661		11.2	1,205,737		11.9	1,254,499		12.0
Commercial Real Estate	1,074,146		10.8	1,188,637		11.7	1,278,189		12.2
Commercial & Industrial	945,150		9.5	992,261		9.8	1,039,309		9.9
HELOC	147,737		1.5	146,790		1.4	144,642		1.4
Consumer	136,663		1.4	122,447		1.2	106,232		1.0
	$	9,910,920	100%	$	10,136,311	100%	$	10,463,022	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

March 31, 2017

($ in Thousands)



	As of 09/30/16						As of 12/31/16						As of 03/31/17
Deposits by State	AMOUNT			%		#	AMOUNT			%		#	AMOUNT			%		#
Washington (WA)	$	5,100,754		48.1	%	81	$	5,196,140		48.8	%	81	$	5,146,140		48.4	%	81
Idaho (ID)	782,413			7.4		25	768,704			7.2		24	785,092			7.4		24
Oregon (OR)	1,964,173			18.5		48	1,952,655			18.3		48	1,946,137			18.3		47
Utah (UT)	285,234			2.7		10	280,457			2.6		10	272,804			2.6		10
Nevada (NV)	340,324			3.2		11	333,789			3.1		11	335,266			3.2		11
Texas (TX)	94,113			0.9		5	97,276			0.9		5	94,656			0.9		5
Arizona (AZ)	1,188,335			11.2		31	1,173,538			11.0		31	1,193,459			11.2		31
New Mexico (NM)	845,506			8.0		27	845,016			7.9		27	857,253			8.1		27
Total	$	10,600,852		100%		238	$	10,647,575		100%		237	$	10,630,807		100%		236

Deposits by Type	AMOUNT			%			AMOUNT			%			AMOUNT			%
Checking (non-interest)	$	1,091,738		10.3	%		$	1,124,169		10.6	%		$	1,142,372		10.7	%
NOW (interest)	1,629,983			15.4			1,732,836			16.3			1,731,737			16.3
Savings (passbook/statement)	820,980			7.7			844,849			7.9			871,722			8.2
Money Market	2,462,891			23.2			2,492,483			23.4			2,466,868			23.2
Time Deposits	4,595,260			43.3			4,453,238			41.8			4,418,108			41.6
Total	$	10,600,852		100%			$	10,647,575		100%			$	10,630,807		100%

Deposits greater than $250,000 - EOP	$	2,250,622					$	2,410,863					$	2,426,837

Time Deposit Repricing	Amount			Rate			Amount			Rate			Amount			Rate
Within 3 months	$	824,019		0.82	%		$	933,770		0.76	%		$	930,544		0.71	%
From 4 to 6 months	896,484			0.80	%		896,254			0.74	%		852,702			0.67	%
From 7 to 9 months	618,180			0.89	%		532,682			0.81	%		429,013			0.79	%
From 10 to 12 months	508,732			0.83	%		391,159			0.80	%		442,072			0.84	%

Non-Performing Assets	AMOUNT			%			AMOUNT			%			AMOUNT			%
Non-accrual loans:
Single-Family Residential	$	33,148		78.2%			$	38,568		63.5%			$	34,373		60.1%
Construction	—			—			—			—			—			—
Construction - Custom	—			—			—			—			240			0.4
Land - Acquisition & Development	58			0.1			603			1.0			80			0.1
Land - Consumer Lot Loans	510			1.2			969			1.6			1,129			2.0
Multi-Family	776			1.8			1,160			1.9			1,364			2.4
Commercial Real Estate	7,100			16.7			9,660			15.9			10,507			18.4
Commercial & Industrial	583			1.4			9,230			15.2			8,864			15.5
HELOC	239			0.6			480			0.8			583			1.0
Consumer	—			—			45			0.1			55			0.1
Total non-accrual loans	42,414			100%			60,715			100%			57,195			100%
Real Estate Owned	29,027						22,637						22,543
Total non-performing assets	$	71,441					$	83,352					$	79,738

Non-accrual loans as % of total net loans	0.43		%				0.60		%				0.55		%
Non-performing assets as % of total assets	0.48		%				0.56		%				0.53		%

Washington Federal, Inc.

Fact Sheet

March 31, 2017

($ in Thousands)



	As of 9/30/16					As of 12/31/16					As of 03/31/17
	AMOUNT			%		AMOUNT			%		AMOUNT			%
Restructured loans:
Single-Family Residential	$	228,186		87.3%		$	217,943		87.2%		$	204,955		87.6%
Construction	—			—		—			—		—			—
Construction - Custom	—			—		—			—		—			—
Land - Acquisition & Development	1,154			0.4		1,139			0.5		594			0.3
Land - Consumer Lot Loans	9,630			3.7		9,619			3.8		9,410			4.0
Multi-Family	1,505			0.6		1,496			0.6		1,131			0.5
Commercial Real Estate	19,434			7.4		18,179			7.3		16,290			7.0
Commercial & Industrial	—			—		—			—		—			—
HELOC	1,506			0.6		1,461			0.6		1,414			0.6
Consumer	116			—		113			—		107			—
Total restructured loans	$	261,531		100%		$	249,950		100%		$	233,901		100%

Restructured loans were as follows:
Performing	$	251,583		96.2%		$	235,503		94.2%		$	222,208		95.0%
Non-performing (b)	9,948			3.8		14,447			5.8		11,693			5.0
Total restructured loans	$	261,531		100%		$	249,950		100%		$	233,901		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	$	(204	)	(0.01)%		$	3		—%		$	157		0.01%
Construction	(388		)	(0.14)		—			—		—			—
Construction - Custom	—			—		—			—		3			—
Land - Acquisition & Development	(2,063		)	(6.96)		(3,985		)	(13.39)		(4,168		)	(14.04)
Land - Consumer Lot Loans	29			0.11		(53		)	(0.21)		(180		)	(0.71)
Multi-Family	—			—		—			—		—			—
Commercial Real Estate	(172		)	(0.06)		(339		)	(0.11)		(1,164		)	(0.36)
Commercial & Industrial	(2,123		)	(0.87)		(667		)	(0.26)		(112		)	(0.04)
HELOC	—			—		36			0.10		53			0.15
Consumer	(657		)	(1.89)		(291		)	(0.93)		195			0.72
Total net charge-offs (recoveries)	$	(5,578	)	(0.20)%		$	(5,296	)	(0.19)%		$	(5,216	)	(0.18)%
(c) Annualized Net Charge-offs (recoveries) divided by Gross Balance

Interest Rate Risk
One Year GAP				(10.1	)%				(15.3	)%				(14.7	)%
NPV post 200 bps shock (d)				14.8	%				13.9	%				13.9	%
Change in NII after 200 bps shock (d)				3.2	%				1.7	%				1.3	%
(d) Assumes no balance sheet management actions taken

Washington Federal, Inc.

Fact Sheet

March 31, 2017

($ in Thousands)



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

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	%
12/31/2016	19.3	%	24.8	%
3/31/2017	13.6	%	13.5	%

(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

March 31, 2017

Average Balance Sheet

($ in Thousands)



	Three Months Ended
	September 30, 2016						December 31, 2016						March 31, 2017
	Average				Average		Average				Average		Average				Average
	Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
Assets
Loans receivable	$	9,756,353	$	114,283	4.65	%	$	10,013,798	$	114,835	4.55	%	$	10,267,530	$	116,034	4.58	%
Mortgage-backed securities	2,568,917		13,820		2.13		2,537,585		12,789		2.00		2,664,959		16,226		2.47
Cash & investments	1,218,195		4,029		1.31		1,010,299		4,246		1.67		632,114		3,068		1.97
FHLB & FRB Stock	117,205		740		2.50		117,210		894		3.03		118,092		870		2.99

Total interest-earning assets	13,660,670		132,872		3.86	%	13,678,892		132,764		3.85	%	13,682,695		136,198		4.04	%
Other assets	1,210,388						1,197,304						1,161,023
Total assets	$	14,871,058					$	14,876,196					$	14,843,718

Liabilities and Equity
Customer accounts	10,610,740		13,423		0.50	%	10,610,314		13,017		0.49	%	10,578,631		12,392		0.48	%
FHLB advances	2,080,000		16,633		3.17		2,080,000		16,595		3.17		2,102,556		16,079		3.10
Other borrowings	33		—		—		—		—		—		—		—		—

Total interest-bearing liabilities	12,690,773		30,056		0.94	%	12,690,314		29,612		0.93	%	12,681,187		28,471		0.91	%
Other liabilities	205,817						201,233						153,105
Total liabilities	12,896,590						12,891,547						12,834,292
Stockholders’ equity	1,974,468						1,984,649						2,009,426
Total liabilities and equity	$	14,871,058					$	14,876,196					$	14,843,718

Net interest income			$	102,816					$	103,152					$	107,727

Net interest margin (1)					3.01	%					3.02	%					3.15	%

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

Washington Federal, Inc.

Fact Sheet

March 31, 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 $

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	%

December 31, 2016
Single-Family Residential	26,259	214	$	5,623,668	88	53	165	306	1.17	%	$	60,201	1.07	%
Construction	638	804	513,046		3	—	1	4	0.63		341		0.07
Construction - Custom	1,079	219	236,668		2	1	—	3	0.28		157		0.07
Land - Acquisition & Development	126	819	103,148		1	—	4	5	3.97		1,262		1.22
Land - Consumer Lot Loans	1,204	84	101,045		4	2	15	21	1.74		1,076		1.06
Multi-Family	959	1,270	1,217,594		3	1	2	6	0.63		1,868		0.15
Commercial Real Estate	1,040	1,130	1,175,475		6	2	12	20	1.92		7,766		0.66
Commercial & Industrial	1,843	574	1,057,826		4	6	34	44	2.39		1,108		0.10
HELOC	2,931	51	148,448		7	—	32	39	1.33		1,375		0.93
Consumer	4,842	26	124,547		78	30	79	187	3.86		1,063		0.85
	40,921	252	$	10,301,465	196	95	344	635	1.55	%	$	76,217	0.74	%

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	%

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WASHINGTON FEDERAL INC - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - April 13, 2017

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