Washington Federal (WAFD) 8-K Results of Operations and Financial Condition

Washington Federal, Inc.

Fact Sheet

December 31, 2013

($ in Thousands)

Exhibit 99.2
	6/13 QTR						9/13 QTR						12/13 QTR
Loan Loss Reserve - Total	$	118,104					$	116,741					$	118,158
General	111,617						113,268						116,552
Specific	6,487						3,473						1,606
Allowance as a % of Gross Loans	1.52		%				1.46		%				1.46		%
Regulatory Capital Ratios (ex. holding co.)
Tangible	1,619,714					12.70%	1,609,914					12.59%	1,615,112			12.01%
Tier 1 Risk Based	1,619,714					25.43%	1,609,914					24.38%	1,615,112			23.80%
Risk Based	1,700,116					26.59%	1,693,227					25.64%	1,700,453			25.06%
	6/13 QTR			6/13 YTD			9/13 QTR			9/13 YTD			12/13 QTR
Loan Originations - Total	$	505,423		$	1,259,332		$	706,703		$	1,966,035		$	500,767
Single-Family Residential	187,489			487,531			219,779			707,310			176,277
Construction - Speculative	41,261			116,456			56,990			173,446			44,540
Construction - Custom	70,296			123,886			180,270			304,156			86,651
Land - Acquisition & Development	5,660			13,432			9,158			22,590			10,485
Land - Consumer Lot Loans	4,928			10,843			3,481			14,324			2,222
Multi-Family	60,715			181,004			128,632			309,636			58,827
Commercial Real Estate	34,527			115,082			48,495			163,577			34,365
Commercial & Industrial	87,269			179,098			46,711			225,809			77,469
HELOC	13,154			31,685			13,187			44,872			9,677
Consumer	124			315			—			315			254
Purchased Loans (including acquisitions)	$	46		$	454,830		$	83,632		$	538,462		$	67,099
Net Loan Fee and Discount Accretion	$	5,918		$	17,630		$	8,813		$	26,443		$	6,298

1

Washington Federal, Inc.

Fact Sheet

December 31, 2013

($ in Thousands)

	6/13 QTR			6/13 YTD			9/13 QTR			9/13 YTD			12/13 QTR
Repayments
Loans	$	597,659		$	1,778,731		$	574,330		$	2,353,061		$	486,143
MBS	121,188			393,161			117,339			510,500			68,761
MBS Premium Amortization	$	3,870		$	13,142		$	3,778		$	16,921		$	1,674
Loan Servicing Fee Income	$	2,055		$	5,987		$	2,598		$	8,585		$	2,046
Other Fee Income	1,303			4,366			998			5,363			1,949
Total Fee Income	$	3,357		$	10,353		$	3,596		$	13,949		$	3,995
Efficiency
Operating Expenses/Average Assets	1.28		%	1.25		%	1.32		%	1.27		%	1.36		%
Efficiency Ratio	41.71			40.46			41.98			40.85			42.38
Amortization of Intangibles	$	660		$	1,385		$	400		$	1,786		$	821
EOP Numbers
Shares Issued and Outstanding	103,422,427						102,484,796						102,329,576
Share repurchase information
Remaining shares auth. for repurchase	993,234			993,234			9,872,834			9,872,834			9,017,934
Shares repurchased	2,000,000			5,194,796			1,120,400			6,315,196			854,900
Average share repurchase price	$	16.91		$	16.75		$	20.71		$	17.46		$	22.16

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Washington Federal, Inc.

Fact Sheet

December 31, 2013

($ in Thousands)

Tangible Common Book Value	6/13 QTR			9/13 QTR			12/13 QTR
$ Amount	$	1,658,174		$	1,673,317		$	1,653,965
Per Share	16.03			16.33			16.16
# of Employees	1,423			1,457			1,848
Tax Rate - Going Forward	36.00		%	36.15		%	35.75		%
Investments
Available-for-sale:
Agency MBS	$	1,037,389		$	1,251,176		$	1,633,643
Other	1,020,755			1,109,772			1,204,860
	$	2,058,144		$	2,360,948		$	2,838,503
Held-to-maturity:
Agency MBS	$	1,589,779		$	1,654,666		$	1,630,936
Other	—			—			—
	$	1,589,779		$	1,654,666		$	1,630,936

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Washington Federal, Inc.

Fact Sheet

December 31, 2013

($ in Thousands)

	AS OF 6/30/13			AS OF 9/30/13			AS OF 12/31/13
Gross Loan Portfolio by Category *	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,269,292	67.9%	$	5,373,950	67.2%	$	5,436,083	67.1
Construction - Speculative	116,363		1.5	130,778		1.6	135,868		1.7
Construction - Custom	237,952		3.1	302,722		3.8	333,954		4.1
Land - Acquisition & Development	91,452		1.2	81,660		1.0	75,506		0.9
Land - Consumer Lot Loans	132,360		1.7	124,984		1.6	122,467		1.5
Multi-Family	749,253		9.6	835,598		10.5	846,115		10.4
Commercial Real Estate	639,372		8.2	625,293		7.8	622,240		7.7
Commercial & Industrial	336,844		4.3	326,450		4.1	354,166		4.4
HELOC	134,899		1.7	133,631		1.7	131,949		1.6
Consumer	60,630		0.8	55,479		0.7	51,961		0.6
	7,768,417		100.0%	7,990,545		100.0%	8,110,309		100.0%
Less:
ALL	118,104			116,741			118,158
Loans in Process	189,677			275,577			273,263
Discount on Acquired Loans	37,568			34,143			31,485
Deferred Net Origination Fees	32,562			36,054			35,845
Sub-Total	377,911			462,515			458,751
	$	7,390,506		$	7,528,030		$	7,651,558
Net Loan Portfolio by Category *	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,175,389	70.0%	$	5,281,131	70.2%	$	5,342,080	69.8%
Construction - Speculative	70,283		1.0	73,424		1.0	78,769		1.0
Construction - Custom	126,702		1.7	127,846		1.7	158,376		2.1
Land - Acquisition & Development	74,852		1.0	65,534		0.9	61,539		0.8
Land - Consumer Lot Loans	127,317		1.7	120,345		1.6	118,134		1.5
Multi-Family	716,495		9.7	786,508		10.4	796,776		10.4
Commercial Real Estate	600,146		8.1	592,216		7.9	591,022		7.7
Commercial & Industrial	312,487		4.2	300,207		4.0	328,538		4.3
HELOC	131,156		1.8	129,929		1.7	128,427		1.7
Consumer	55,678		0.8	50,889		0.7	47,897		0.6
	$	7,390,506	100.0%	$	7,528,030	100.0%	$	7,651,558	100.0%
* Excludes covered loans

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Washington Federal, Inc.

Fact Sheet

December 31, 2013

($ in Thousands)

	AS OF 6/30/13					AS OF 9/30/13					AS OF 12/31/13
Deposits by State	AMOUNT		%		#	AMOUNT		%		#	AMOUNT		%		#
WA	$	4,196,436	46.2	%	63	$	4,230,693	46.6	%	63	$	5,126,066	49.3	%	82
ID	549,214		6.1		16	545,781		6.0		16	816,400		7.8		31
OR	1,981,204		21.9		47	1,993,863		21.9		44	1,870,196		18.0		50
UT	327,373		3.6		10	330,044		3.6		10	326,829		3.1		10
NV	194,741		2.1		4	191,182		2.1		4	187,681		1.8		4
TX	98,876		1.1		4	101,458		1.1		4	109,258		1.1		5
AZ	1,101,588		12.2		23	1,086,447		12.0		23	1,067,681		10.3		23
NM	614,065		6.8		18	610,803		6.7		18	898,615		8.6		30
Total	$	9,063,497	100.0	%	185	$	9,090,271	100.0	%	182	$	10,402,726	100.0	%	235
Deposits by Type	AMOUNT		%			AMOUNT		%			AMOUNT		%
Checking (noninterest)	$	423,828	4.7	%		$	447,368	4.9	%		$	674,824	6.5	%
NOW (interest)	790,807		8.7			800,516		8.8			1,227,548		11.8
Savings (passbook/stmt)	392,182		4.3			404,938		4.5			542,573		5.2
Money Market	1,841,765		20.3			1,888,020		20.8			2,268,979		21.8
CD's	5,614,915		62.0			5,549,429		61.0			5,688,802		54.7
Total	$	9,063,497	100.0	%		$	9,090,271	100.0	%		$	10,402,726	100.0	%
Deposits greater than $250,000 - EOP	$	1,266,544				$	1,336,054				$	1,578,895

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Washington Federal, Inc.

Fact Sheet

December 31, 2013

($ in Thousands)

	6/13 QTR				9/13 QTR				12/13 QTR
Non-Performing Assets	AMOUNT			%	AMOUNT			%	AMOUNT			%
Non-accrual loans:
Single-Family Residential	$	104,252		70.1%	$	100,460		76.5%	$	89,075		77.6%
Construction - Speculative	3,776			2.5	4,560			3.5	3,053			2.7
Construction - Custom	—			—	—			—	—			—
Land - Acquisition & Development	9,586			6.4	2,903			2.2	2,813			2.5
Land - Consumer Lot Loans	3,712			2.5	3,337			2.5	3,548			3.1
Multi-Family	6,653			4.5	6,573			5.0	2,494			2.2
Commercial Real Estate	14,348			9.7	11,736			8.9	11,613			10.1
Commercial & Industrial	5,072			3.4	477			0.4	655			0.6
HELOC	871			0.6	263			0.2	471			0.4
Consumer	385			0.3	990			0.8	995			0.9
Total non-accrual loans	148,655			100.0%	131,299			100.0%	114,717			100.0%
Total REO	73,084				72,925				71,537
Total REHI	11,664				9,392				11,656
Total non-performing assets	$	233,403			$	213,616			$	197,910
Total non-performing assets as a
% of total assets	1.79		%		1.63		%		1.37		%

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Washington Federal, Inc.

Fact Sheet

December 31, 2013

($ in Thousands)

	6/13 QTR			9/13 QTR			12/13 QTR
	AMOUNT		%	AMOUNT		%	AMOUNT		%
Restructured loans:
Single-Family Residential	$	362,753	87.4%	$	356,576	85.8	$	355,449	85.7
Construction - Speculative	11,136		2.7	10,733		2.6	9,705		2.3
Construction - Custom	1,196		0.3	1,196		0.3	1,196		0.3
Land - Acquisition & Development	7,367		1.8	7,211		1.7	6,037		1.5
Land - Consumer Lot Loans	13,241		3.2	12,706		3.1	13,411		3.2
Multi-Family	8,480		2.0	7,557		1.8	8,701		2.1
Commercial Real Estate	9,684		2.3	18,539		4.5	18,749		4.5
Commercial & Industrial	—		—	56		—	44		—
HELOC	1,089		0.3	1,088		0.3	1,198		0.3
Consumer	11		—	33		—	71		—
Total restructured loans (2)	414,957		100.0%	$	415,696	100.0%	$	414,561	100.0%
(2) Restructured loans were as follows:
Performing	$	391,754	94.4%	$	391,415	94.2%	$	390,841	94.3%
Non-accrual *	23,203		5.6	24,281		5.8	23,720		5.7
* Included in "Total non-accrual loans" above	$	414,957	100.0%	$	415,696	100.0%	$	414,561	100.0%

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Washington Federal, Inc.

Fact Sheet

December 31, 2013

($ in Thousands)

	6/13 QTR					9/13 QTR					12/13 QTR
	AMOUNT			CO %**		AMOUNT			CO %**		AMOUNT			CO %**
Net Charge-offs by Category
Single-Family Residential	$	3,887		0.30	%	$	(482	)	(0.04	)%	$	(6,493	)	(0.48	)%
Construction - Speculative	15			0.05		135			0.41		355			1.05
Construction - Custom	481			0.81		—			—		—			—
Land - Acquisition & Development	375			1.64		(2,345		)	(11.49	)	17			0.09
Land - Consumer Lot Loans	211			0.64		222			0.71		220			0.72
Multi-Family	(156		)	(0.08	)	—			—		—			—
Commercial Real Estate	(3		)	—		389			0.25		—			—
Commercial & Industrial	6			0.01		1,008			1.24		(173		)	(0.20	)
HELOC	24			0.07		69			0.21		—			—
Consumer	(60		)	(0.40	)	117			0.84		56			0.43
Total net charge-offs	$	4,780		0.25	%	$	(887	)	(0.04	)%	$	(6,017	)	(0.30	)%
** Annualized Net Charge-offs divided by Gross Balance
SOP 03-3
Accretable Yield	$	107,434				$	115,513				$	104,808
Non-Accretable Yield	212,644					194,794					194,794
Total Contractual Payments	$	320,078				$	310,307				$	299,602
Interest Rate Risk
One Year GAP				(16.0	)%				(12.9	)%				(20.0	)%
NPV post 200 bps shock*				16.40	%				17.42	%				15.48	%
Change in NII after 200 bps shock*				(2.6	)%				(1.6	)%				(5.8	)%
* Assumes no balance sheet management
CD's Repricing	Amount			Rate		Amount			Rate		Amount			Rate
Within 3 months	$	1,412,140		0.82	%	$	1,106,415		0.71	%	$	1,341,855		0.68	%
From 4 to 6 months	1,083,198			0.72		1,290,152			0.71		958,932			0.52
From 7 to 9 months	600,955			0.85		567,405			0.70		782,531			0.79
From 10 to 12 months	565,777			0.71		638,684			0.81		507,249			0.84

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Washington Federal, Inc.

Fact Sheet

December 31, 2013

($ 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
*** 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.

9

Washington Federal, Inc.

Fact Sheet

December 31, 2013

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 $
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	%
June 30, 2013
Single-Family Residential	29,040	181	$	5,266,310	136	77	375	588	2.02	%	$	123,610	2.35	%
Construction - Speculative	449	175	78,505		5	—	14	19	4.23	%	2,999		3.82	%
Construction - Custom	538	238	127,978		4	—	—	4	0.74	%	240		0.19	%
Land - Acquisition & Development	143	610	87,197		3	1	12	16	11.19	%	8,679		9.95	%
Land - Consumer Lot Loans	1,509	88	132,185		7	3	24	34	2.25	%	4,806		3.64	%
Multi-Family	1,051	689	723,682		1	1	8	10	0.95	%	5,952		0.82	%
Commercial Real Estate	1,187	531	630,546		13	7	27	47	3.96	%	15,255		2.42	%
Commercial & Industrial	889	379	336,808		4	4	7	15	1.69	%	6,020		1.79	%
HELOC	2,038	66	134,899		11	5	8	24	1.18	%	2,050		1.52	%
Consumer	8,635	7	60,630		143	72	75	290	3.36	%	2,383		3.93	%
	45,479	167	$	7,578,740	327	170	550	1,047	2.30	%	$	171,994	2.27	%

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Washington Federal, Inc.

Fact Sheet

December 31, 2013

Average Balance Sheet

($ in Thousands)

		Quarters Ended
		June 30, 2013						September 30, 2013						December 31, 2013
		Average				Average		Average				Average		Average				Average
		Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
Assets
Loans and covered loans		$	7,724,376	$	112,932	5.86	%	$	7,724,685	$	112,260	5.77	%	$	7,826,159	$	107,227	5.44	%
Mortgage-backed securities		2,525,808		11,951		1.90		2,773,736		14,195		2.03		3,129,915		19,368		2.46
Cash & Investments		1,630,762		3,283		0.81		1,436,060		3,471		0.96		1,474,296		4,261		1.15
FHLB & FRB Stock		151,874		10		0.03		166,149		375		0.90		172,607		402		0.92
Total interest-earning assets		12,032,820		128,176		4.27	%	12,100,630		130,301		4.27	%	12,602,977		131,258		4.13	%
Other assets		1,010,351						949,874						946,963
Total assets		$	13,043,171					$	13,050,504					$	13,549,940
Liabilities and Equity
Customer accounts		$	8,980,485	16,385		0.73	%	$	9,060,426	16,052		0.70	%	$	9,538,339	15,499		0.64	%
FHLB advances		1,930,000		17,075		3.54		1,930,000		17,291		3.54		2,030,000		17,447		3.41	%
Other borrowings		—		—		—		—		—		—		—		—		—
Total interest-bearing liabilities		10,910,485		33,460		1.23	%	10,990,426		33,343		1.20	%	11,568,339		32,946		1.13	%
Other liabilities		201,155						128,667						28,618
Total liabilities		11,111,640						11,119,093						11,596,957
Stockholders’ equity		1,931,531						1,931,411						1,952,983
Total liabilities and equity		$	13,043,171					$	13,050,504					$	13,549,940
Net interest income				$	93,023					$	96,958					$	98,312
Net interest margin (1)						3.15	%					3.21	%					3.12	%
(1	)	Annualized net interest income divided by average interest-earning assets.

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