WASHINGTON FEDERAL INC - FORM 8-K - EX-99.2 - July 23, 2020

Attached files

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EX-99.3 - EX-99.3 - WASHINGTON FEDERAL INCearningsreleasesupplemen.htm
EX-99.1 - EX-99.1 - WASHINGTON FEDERAL INCexhibit991june2020earn.htm
8-K - 8-K - WASHINGTON FEDERAL INCwfsl-20200722.htm
Washington Federal, Inc.
Fact Sheet
June 30, 2020
($ in Thousands)
Exhibit 99.2
As of 12/19As of 03/20As of 06/20
Allowance for Credit Losses (ACL) - Total$165,763  $175,751  $184,849  
     ACL - Loans147,513  157,101  165,349  
     ACL Unfunded Commitments18,250  18,650  19,500  
     Total ACL as a % of Gross Loans1.24 %1.31 %1.29 %
12/19 QTR12/19 YTD03/20 QTR03/20 YTD06/20 QTR06/20 YTD
Loan Originations - Total$1,371,315  $1,371,315  $1,236,664  $2,607,979  $2,117,035  $4,725,014  
     Multi-Family86,729  86,729  127,289  214,018  118,060  332,078  
     Commercial Real Estate73,027  73,027  106,906  179,933  55,845  235,778  
     Commercial & Industrial413,615  413,615  347,969  761,584  1,143,166  1,904,750  
     Construction432,444  432,444  338,748  771,192  294,063  1,065,255  
     Land - Acquisition & Development40,692  40,692  12,796  53,488  14,695  68,183  
     Single-Family Residential167,144  167,144  149,076  316,220  308,571  624,791  
     Construction - Custom123,986  123,986  117,313  241,299  149,265  390,564  
     Land - Consumer Lot Loans11,015  11,015  10,771  21,786  12,768  34,554  
     HELOC22,111  22,111  24,864  46,975  20,190  67,165  
     Consumer552  552  932  1,484  412  1,896  
Purchased Loans (including acquisitions)$—  $—  $—  $—  $15,456  $15,456  
Net Loan Fee and Discount Accretion$4,925  $4,925  $4,918  $9,843  $7,204  $17,047  
Repayments
Loans$1,301,419  $1,301,419  $1,203,182  $2,504,601  $1,248,747  $3,753,348  
MBS142,509  142,509  120,852  263,361  179,121  442,482  
MBS Premium Amortization$2,535  $2,535  $2,292  $4,827  $3,250  $8,077  
Efficiency
Operating Expenses/Average Assets2.02 %2.02 %1.94 %1.98 %1.68 %1.87 %
Efficiency Ratio (%) (a)57.05 %57.05 %59.34 %58.19 %57.65 %58.02 %
Amortization of Intangibles$495  $495  $552  $1,047  $552  $1,599  
(a) Efficiency ratio for the three months ended December 31, 2019 and nine months ended June 30, 2020 excludes the impact of $31.6 million gain on sales of fixed assets and $5.9 million impairment charge on computer hardware and software.
EOP Numbers
Shares Issued and Outstanding78,107,870  75,706,100  75,706,026  
Share repurchase information
Remaining shares authorized for repurchase7,052,600  4,628,987  4,627,393  
Shares repurchased914,161  914,161  2,423,613  3,337,774  1,594  3,339,368  
Average share repurchase price$36.62  $36.62  $32.43  $33.58  $24.90  $33.58  



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Washington Federal, Inc.
Fact Sheet
June 30, 2020
($ in Thousands)

Tangible Common Book ValueAs of 12/19As of 03/20As of 06/20
$ Amount$1,720,650  $1,653,635  $1,680,051  
Per Share22.03  21.84  22.19  
# of Employees2,001  2,060  2,062  
Investments
Available-for-sale:
     Agency MBS$928,934  $1,073,165  $1,034,014  
     Other566,652  619,882  1,029,946  
$1,495,586  $1,693,047  $2,063,960  
Held-to-maturity:
     Agency MBS$1,360,693  $920,255  $827,316  
$1,360,693  $920,255  $827,316  
As of 12/19As of 03/20As of 06/20
Loans Receivable by Category AMOUNT % AMOUNT % AMOUNT %
     Multi-Family$1,436,715  10.7%$1,467,231  10.9%$1,510,099  10.6%
     Commercial Real Estate1,643,099  12.31,717,535  12.81,707,893  11.9
     Commercial & Industrial1,352,738  10.11,371,128  10.22,158,000  15.1
     Construction2,174,313  16.22,204,283  16.42,328,987  16.3
     Land - Acquisition & Development203,043  1.5197,010  1.5195,212  1.4
     Single-Family Residential5,702,071  42.55,582,244  41.55,461,605  38.2
     Construction - Custom538,234  4.0547,731  4.1607,329  4.2
     Land - Consumer Lot Loans97,097  0.796,579  0.7100,102  0.7
     HELOC141,274  1.1145,761  1.1140,636  1.0
     Consumer115,829  0.9105,147  0.891,495  0.6
13,404,413  100%13,434,649  100%14,301,358  100%
     Less:
        Allowance for Credit Losses (ACL)147,513  157,101  165,349  
        Loans in Process1,312,282  1,289,812  1,353,774  
        Net Deferred Fees, Costs and Discounts54,757  31,095  48,809  
        Sub-Total1,514,552  1,478,008  1,567,932  
$11,889,861  $11,956,641  $12,733,426  
Net Loan Portfolio by Category AMOUNT % AMOUNT % AMOUNT %
     Multi-Family$1,423,706  12.0%$1,455,688  12.2%$1,497,749  11.7%
     Commercial Real Estate1,638,178  13.81,707,894  14.31,684,761  13.2
     Commercial & Industrial1,307,375  11.01,321,271  11.02,095,768  16.5
     Construction1,162,125  9.81,206,794  10.11,309,255  10.3
     Land - Acquisition & Development142,819  1.2141,519  1.2141,592  1.1
     Singe-Family Residential5,618,716  47.25,522,027  46.25,405,783  42.4
     Construction - Custom251,347  2.1262,381  2.2274,846  2.2
     Land - Consumer Lot Loans93,807  0.893,251  0.896,584  0.8
     HELOC139,762  1.2144,036  1.2138,578  1.1
     Consumer112,026  0.9101,780  0.888,510  0.7
$11,889,861  100%$11,956,641  100%$12,733,426  100%

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Washington Federal, Inc.
Fact Sheet
June 30, 2020
($ in Thousands)

As of 12/19As of 03/20As of 06/20
Deposits by State AMOUNT%# AMOUNT%# AMOUNT%#
     Washington$5,438,457  45.6 %80  $5,418,762  44.8 %80  $5,789,748  44.2 %80  
     Idaho862,667  7.2  24  873,164  7.2  24  918,614  7.0  24  
     Oregon2,356,456  19.7  46  2,436,763  20.2  46  2,591,126  19.8  46  
     Utah350,825  2.9  10  318,227  2.6  10  576,795  4.4  10  
     Nevada390,282  3.3  11  399,659  3.3  11  440,065  3.4  11  
     Texas165,717  1.4  6  174,066  1.5  6  220,979  1.6  6  
     Arizona1,331,320  11.2  31  1,401,451  11.6  31  1,429,184  10.9  31  
     New Mexico1,036,414  8.7  26  1,066,328  8.8  26  1,143,083  8.7  26  
     Total$11,932,138  100%234  $12,088,420  100%234  $13,109,594  100%234  
Deposits by Type AMOUNT% AMOUNT% AMOUNT%
Non-Interest Checking$1,593,392  13.4 %$1,664,707  13.8 %$2,235,689  17.1 %
Interest Checking2,125,878  17.8  2,210,387  18.3  2,410,041  18.4  
Savings748,505  6.3  759,604  6.3  832,383  6.3  
Money Market2,847,346  23.8  3,029,341  25.0  3,422,335  26.1  
Time Deposits4,617,017  38.7  4,424,381  36.6  4,209,146  32.1  
Total$11,932,138  100%$12,088,420  100%$13,109,594  100%
Deposits greater than $250,000 - EOP$3,746,958  $3,953,908  $4,781,447  
Time Deposit RepricingAmountRateAmountRateAmountRate
Within 3 months$930,883  1.88 %$925,549  1.79 %$925,920  1.78 %
From 4 to 6 months936,979  1.79 %927,835  1.79 %1,192,090  1.29 %
From 7 to 9 months715,509  2.00 %875,111  1.61 %919,329  1.47 %
From 10 to 12 months794,676  1.68 %809,660  1.61 %262,359  0.95 %
Non-Performing Assets AMOUNT % AMOUNT % AMOUNT %
Non-accrual loans:
     Multi-Family$—  —%$—  —%$224  0.6%
     Commercial Real Estate5,557  18.54,374  13.43,416  9.7
     Commercial & Industrial467  1.5470  1.41,847  5.3
     Construction—  —3,353  10.33,353  9.6
     Land - Acquisition & Development86  0.382  0.378  0.2
     Single-Family Residential23,014  76.522,859  70.124,876  71.1
     Construction - Custom—  ——  ——  —
     Land - Consumer Lot Loans334  1.1408  1.2277  0.8
     HELOC630  2.11,064  3.3866  2.5
     Consumer1  ——  —64  0.2
        Total non-accrual loans30,089  100%32,610  100%35,001  100%
Real Estate Owned6,339  5,463  5,956  
Other Property Owned3,314  3,314  3,673  
Total non-performing assets$39,742  $41,387  $44,630  
Non-accrual loans as % of total net loans0.25 %0.27 %0.27 %
Non-performing assets as % of total assets0.24 %0.24 %0.25 %

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Washington Federal, Inc.
Fact Sheet
June 30, 2020
($ in Thousands)

As of 12/19As of 03/20As of 06/20
 AMOUNT% AMOUNT% AMOUNT%
Troubled debt restructure ("TDR") loans:
     Multi-Family$380  0.3%$316  0.3%$310  0.3%
     Commercial Real Estate3,238  2.91,883  1.81,849  1.9
     Commercial & Industrial411  0.4396  0.4433  0.4
     Construction—  ——  ——  —
     Land - Acquisition & Development86  0.182  0.178  0.1
     Single-Family Residential102,164  92.297,025  93.291,290  93.1
     Construction - Custom—  ——  ——  —
     Land - Consumer Lot Loans3,556  3.23,418  3.33,206  3.3
     HELOC942  0.8843  0.8835  0.8
     Consumer58  0.156  0.155  0.1
        Total TDR loans$110,835  100%$104,019  100%$98,056  100%
TDRs were as follows:
     Performing$106,380  96.0%$101,076  97.2%$95,093  97.0%
     Non-performing (b)4,455  4.02,943  2.82,963  3.0
     Total TDR loans $110,835  100%$104,019  100%$98,056  100%
     (b) Included in "Total non-accrual loans" above.
AMOUNTCO % (c)AMOUNTCO % (c)AMOUNTCO % (c)
Net Charge-offs (Recoveries) by Category
     Multi-Family$(498) (0.14)%$—  —%$—  —%
     Commercial Real Estate(270) (0.07)(1,007) (0.23)(193) (0.05)
     Commercial & Industrial(94) (0.03)72  0.022,860  0.53
     Construction(54) (0.01)(5) ——  —
     Land - Acquisition & Development(1,449) (2.85)(126) (0.26)(433) (0.89)
     Single-Family Residential(246) (0.02)(192) (0.01)(377) (0.03)
     Construction - Custom—  ——  ——  —
     Land - Consumer Lot Loans60  0.25(399) (1.65)(17) (0.07)
     HELOC(93) (0.26)(1) —(1) —
     Consumer65  0.22(130) (0.49)(137) (0.60)
        Total net charge-offs (recoveries)$(2,579) (0.08)%$(1,788) (0.05)%$1,702  0.05%
(c) Annualized Net Charge-offs (recoveries) divided by Gross Balance
Interest Rate Risk
NPV post 200 bps shock (d)13.9 %12.1 %14.8 %
Change in NII after 200 bps shock (d)0.7 %1.9 %3.0 %
(d) Assumes no balance sheet management actions taken.

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Washington Federal, Inc.
Fact Sheet
June 30, 2020
($ in Thousands)

Historical CPR Rates (e)
WAFDWAFD
Average for Quarter Ended:SFR MortgagesGSE MBS
6/30/201813.0 %12.0 %
9/30/201812.3 %12.0 %
12/31/201810.4 %10.3 %
3/31/20199.3 %9.4 %
6/30/201913.8 %11.4 %
9/30/201918.2 %16.9 %
12/31/201922.0 %21.7 %
3/31/202019.8 %19.7 %
6/30/202028.1 %30.3 %
(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.

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Washington Federal, Inc.
Fact Sheet
June 30, 2020
Average Balance Sheet
($ in Thousands)

Quarter Ended
December 31, 2019March 31, 2020June 30, 2020
AverageAverageAverageAverageAverageAverage
BalanceInterestRateBalanceInterestRateBalanceInterestRate
Assets
Loans receivable$11,924,778  $142,146  4.73 %$11,890,545  $138,549  4.67 %$12,470,824  $132,847  4.27 %
Mortgage-backed securities2,360,374  15,612  2.62  2,194,479  14,341  2.62  1,931,826  10,843  2.25  
Cash & investments776,633  5,425  2.77  951,719  5,281  2.23  2,093,966  4,697  0.90  
FHLB & FRB Stock124,568  1,641  5.23  122,320  1,447  4.74  152,122  1,322  3.49  
Total interest-earning assets15,186,353  164,824  4.31 %15,159,063  159,618  4.22 %16,648,738  149,709  3.61 %
Other assets1,189,996  1,204,060  1,294,675  
Total assets$16,376,349  $16,363,123  $17,943,413  
Liabilities and Equity
Customer accounts$11,888,167  31,481  1.05 %$11,919,451  28,638  0.96 %$12,738,002  21,393  0.67 %
FHLB advances2,264,457  13,658  2.39  2,208,242  13,368  2.43  2,953,297  10,938  1.49  
Other borrowings—  —  —  77  —  —  —  —  —  
Total interest-bearing liabilities14,152,624  45,139  1.27 %14,127,770  42,006  1.19 %15,691,299  32,331  0.83 %
Other liabilities206,876  212,129  262,108  
Total liabilities14,359,500  14,339,899  15,953,407  
Stockholders’ equity2,016,849  2,023,224  1,990,006  
Total liabilities and equity$16,376,349  $16,363,123  $17,943,413  
Net interest income$119,685  $117,612  $117,378  
Net interest margin (1)3.15 %3.10 %2.82 %
(1) Annualized net interest income divided by average interest-earning assets

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Washington Federal, Inc.
Fact Sheet
June 30, 2020
Delinquency Summary
($ in Thousands)

TYPE OF LOANS# OF LOANS% based% based
 #LOANSAVG SizeLOANS AMORTIZED COST306090Totalon #$ Delinquenton $
June 30, 2020
     Multi-Family1,091  1,384  $1,509,837  —  —  1  1  0.09 %$224  0.01 %
     Commercial Real Estate1,101  1,545  1,700,568  1  1  6  8  0.73  3,266  0.19  
     Commercial & Industrial (1)8,524  251  2,138,462  —  7  11  18  0.21  3,736  0.17  
     Construction556  2,401  1,334,948  —  —  2  2  0.36  3,353  0.25  
     Land - Acquisition & Development118  1,290  152,234  —  —  —  —  —  —  —  
     Single-Family Residential22,746  240  5,452,424  27  25  93  145  0.64  29,122  0.53  
     Construction - Custom1,069  260  278,182  —  —  —  —  —  —  —  
     Land - Consumer Lot Loans1,117  89  99,255  3  2  5  10  0.90  482  0.49  
     HELOC3,042  46  141,165  4  1  12  17  0.56  720  0.51  
     Consumer2,952  31  91,700  23  25  13  61  2.07  702  0.77  
42,316  305  $12,898,775  58  61  143  262  0.62 %$41,605  0.32 %
March 31, 2020
     Multi-Family1,103  1,330  $1,467,430  1  —  —  1  0.09 %$356  0.02 %
     Commercial Real Estate1,107  1,556  1,722,533  2  3  5  10  0.90  4,642  0.27  
     Commercial & Industrial1,824  746  1,359,847  16  —  7  23  1.26  2,273  0.17  
     Construction529  2,325  1,230,142  —  —  2  2  0.38  3,353  0.27  
     Land - Acquisition & Development115  1,321  151,919  1  —  —  1  0.87  394  0.26  
     Single-Family Residential23,347  239  5,568,843  40  20  74  134  0.57  26,182  0.47  
     Construction - Custom993  267  265,556  —  —  —  —  —  —  —  
     Land - Consumer Lot Loans1,109  86  95,829  2  2  6  10  0.90  777  0.81  
     HELOC3,086  47  146,282  4  2  10  16  0.52  1,052  0.72  
     Consumer3,133  34  105,361  42  65  13  120  3.83  630  0.60  
36,346  333  $12,113,742  108  92  117  317  0.87 %$39,659  0.33 %
December 31, 2019
     Multi-Family1,106  1,297  $1,434,212  1  —  —  1  0.09 %$137  0.01 %
     Commercial Real Estate1,114  1,482  1,651,245  1  1  5  7  0.63  4,693  0.28  
     Commercial & Industrial1,783  752  1,341,052  16  2  6  24  1.35  267  0.02  
     Construction507  2,335  1,184,044  —  1  —  1  0.20  1,415  0.12  
     Land - Acquisition & Development132  1,161  153,232  2  1  —  3  2.27  888  0.58  
     Single-Family Residential23,784  238  5,665,070  44  8  81  133  0.56  26,363  0.47  
     Construction - Custom1,018  250  254,277  —  —  —  —  —  —  —  
     Land - Consumer Lot Loans1,135  85  96,374  4  —  9  13  1.15  454  0.47  
     HELOC3,049  47  141,797  10  2  9  21  0.69  1,382  0.97  
     Consumer3,336  35  116,071  33  19  16  68  2.04  620  0.53  
36,964  326  $12,037,374  111  34  126  271  0.73 %$36,219  0.30 %

(1) Includes 6,425 of SBA PPP loans with a balance of $739,473, all of which are current.
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