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

Washington Federal, Inc.

Fact Sheet

June 30, 2015

($ in Thousands)

Exhibit 99.2
	12/14 QTR						3/15 QTR						6/15 QTR
Loan Loss Reserve - Total	$	110,598					$	110,221					$	107,977
General and Specific Allowance	$	108,700					$	108,323					$	105,611
Commitments Reserve	1,898						1,898						2,366
Allowance as a % of Gross Loans	1.26		%				1.22		%				1.17		%
Regulatory Capital Ratios
Common equity tier 1 risk-based	N/A					N/A	1,641,962					19.97%	1,631,661					19.36%
Tier 1 risk-based	1,622,086					21.90%	1,641,962					19.97%	1,631,661					19.36%
Total risk-based (excludes holding co.)	1,715,440					23.16%	1,745,636					21.23%	1,737,938					20.62%
Tier 1 leverage (excludes holding co.)	1,622,086					11.33%	1,641,962					11.52%	1,631,661					11.50%
	12/14 QTR					12/14 YTD	3/15 QTR					3/15 YTD	6/15 QTR					6/15 YTD
Loan Originations - Total	$	578,988		$	578,988		$	691,472		$	1,270,460		$	752,787		$	2,023,247
Single-Family Residential	167,299			167,299			130,636			297,935			196,613			$	494,548
Construction - Speculative	50,158			50,158			49,051			99,209			72,466			$	171,675
Construction - Custom	88,398			88,398			67,410			155,808			92,120			$	247,928
Land - Acquisition & Development	16,567			16,567			29,573			46,140			10,901			$	57,041
Land - Consumer Lot Loans	2,604			2,604			2,132			4,736			7,880			$	12,616
Multi-Family	62,281			62,281			73,918			136,199			123,886			$	260,085
Commercial Real Estate	59,840			59,840			202,498			262,338			108,226			$	370,564
Commercial & Industrial	114,787			114,787			119,812			234,599			121,632			$	356,231
HELOC	16,270			16,270			16,077			32,347			18,622			$	50,969
Consumer	784			784			365			1,149			441			$	1,590
Purchased Loans (including acquisitions)	$	46,831				$46,831	$	100,001				$146,832	$	36,574				$183,406
Net Loan Fee and Discount Accretion	$	7,721				$7,721	$	7,071				$14,792	$	6,161				$20,953

1

Washington Federal, Inc.

Fact Sheet

June 30, 2015

($ in Thousands)

	12/14 QTR			12/14 YTD				3/15 QTR			3/15 YTD			6/15 QTR			6/15 YTD
Repayments
Loans	$	516,926			$	516,926		$	596,801		$	1,113,727		$	615,169		$	1,728,896
MBS	101,494				101,494			114,836			$	216,330		126,951			$	343,281
MBS Premium Amortization	$	2,397			$	2,397		$	2,704		$	5,101		$	3,298		$	8,399
Efficiency
Operating Expenses/Average Assets	1.46		%		1.46		%	1.58		%	1.52		%	1.57		%	1.54		%
Efficiency Ratio	49.83				49.83			49.97			49.90			50.47			50.09
Amortization of Intangibles	$	1,024			$	1,024		$	982		$	2,006		$	794		$	2,800
EOP Numbers
Shares Issued and Outstanding	97,556,077							95,088,294						93,982,148
Share repurchase information
Remaining shares auth. for repurchase	3,926,287				3,926,287			1,426,269			1,426,269			5,254,607			5,254,607
Shares repurchased	1,116,147				1,116,147			2,500,018			3,616,165			1,171,662			4,787,827
Average share repurchase price	$	21.79			$	21.79		$	21.21		$	21.39		$	21.93		$	21.52

2

Washington Federal, Inc.

Fact Sheet

June 30, 2015

($ in Thousands)

Tangible Common Book Value	12/14 QTR			3/15 QTR			6/15 QTR
$ Amount	$	1,679,454		$	1,667,237		$	1,659,012
Per Share	17.22			17.53			17.65
# of Employees	1,862			1,865			1,839
Tax Rate - Going Forward	35.75		%	35.75		%	35.75		%
Investments
Available-for-sale:
Agency MBS	$	1,588,647		$	1,567,607		$	1,436,457
Other	1,306,409			1,189,299			1,187,917
	$	2,895,056		$	2,756,906		$	2,624,374
Held-to-maturity:
Agency MBS	$	1,516,219		$	1,479,781		$	1,586,514
Other	—			—			—
	$	1,516,219		$	1,479,781		$	1,586,514

3

Washington Federal, Inc.

Fact Sheet

June 30, 2015

($ in Thousands)

	AS OF 12/31/14			AS OF 3/31/15			AS OF 6/30/15
Gross Loan Portfolio by Category (a)	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,619,697	63.9%	$	5,546,402	61.5%	$	5,568,929	60.1%
Construction - Speculative	152,450		1.7	163,657		1.8	181,668		2.0
Construction - Custom	377,561		4.3	370,693		4.1	375,425		4.1
Land - Acquisition & Development	86,405		1.0	107,181		1.2	90,252		1.0
Land - Consumer Lot Loans	106,987		1.2	104,558		1.2	105,463		1.1
Multi-Family	980,706		11.2	1,012,915		11.2	1,093,374		11.8
Commercial Real Estate	749,855		8.5	885,177		9.8	981,824		10.6
Commercial & Industrial	453,417		5.2	466,208		5.2	512,973		5.5
HELOC	134,998		1.5	136,439		1.5	137,837		1.5
Consumer	131,352		1.5	221,525		2.5	208,956		2.3
	8,793,428		100.0%	9,014,755		100.0%	9,256,701		100.0%
Less:
ALL	108,700			108,323			105,611
Loans in Process	370,655			426,836			438,941
Discount on Acquired Loans	22,535			20,845			16,716
Deferred Net Origination Fees	37,621			37,763			49,824
Sub-Total	539,511			593,767			611,092
	$	8,253,917		$	8,420,988		$	8,645,609
Net Loan Portfolio by Category (a)	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,534,420	67.1%	$	5,464,292	64.9%	$	5,482,853	63.4%
Construction - Speculative	89,843		1.1	99,261		1.2	110,800		1.3
Construction - Custom	189,248		2.3	199,257		2.4	201,908		2.3
Land - Acquisition & Development	65,507		0.8	84,922		1.0	69,342		0.8
Land - Consumer Lot Loans	103,148		1.2	100,789		1.2	101,655		1.2
Multi-Family	900,292		10.9	934,864		11.1	1,006,301		11.6
Commercial Real Estate	689,672		8.4	748,850		8.9	848,173		9.8
Commercial & Industrial	421,613		5.1	438,047		5.2	484,930		5.6
HELOC	132,188		1.6	133,662		1.6	135,102		1.6
Consumer	127,986		1.6	217,044		2.6	204,545		2.4
	$	8,253,917	100.0%	$	8,420,988	100.0%	$	8,645,609	100.0%
(a) Excludes covered loans

4

Washington Federal, Inc.

Fact Sheet

June 30, 2015

($ in Thousands)

	AS OF 12/31/14					AS OF 3/31/15					AS OF 6/30/15
Deposits by State	AMOUNT		%		#	AMOUNT		%		#	AMOUNT		%		#
WA	$	4,910,659	46.4	%	81	$	5,028,312	47.0	%	82	$	4,992,642	47.2	%	82
ID	796,119		7.5		26	797,117		7.5		26	773,269		7.3		26
OR	1,987,015		18.8		49	1,991,272		18.6		49	1,977,131		18.7		48
UT	303,516		2.9		10	299,222		2.8		10	295,548		2.8		10
NV	357,952		3.4		11	349,807		3.3		11	350,109		3.3		11
TX	87,937		0.8		5	89,890		0.8		5	91,759		0.9		5
AZ	1,260,182		11.9		36	1,244,294		11.6		35	1,222,910		11.6		35
NM	875,473		8.3		29	892,711		8.3		29	875,017		8.3		28
Total	$	10,578,853	100.0	%	247	$	10,692,625	100.0	%	247	$	10,578,385	100.0	%	245
Deposits by Type	AMOUNT		%			AMOUNT		%			AMOUNT		%
Checking (noninterest)	$	870,981	8.2	%		$	922,589	8.6	%		$	933,645	8.8	%
NOW (interest)	1,436,922		13.6			1,574,294		14.7			1,556,136		14.7
Savings (passbook/stmt)	640,731		6.1			663,863		6.2			671,426		6.3
Money Market	2,515,564		23.8			2,547,050		23.8			2,535,329		24.0
CD's	5,114,655		48.3			4,984,829		46.6			4,881,849		46.1
Total	$	10,578,853	100.0	%		$	10,692,625	100.0	%		$	10,578,385	100.0	%
Deposits greater than $250,000 - EOP	$	1,838,690				$	1,998,536				$	1,999,908

5

Washington Federal, Inc.

Fact Sheet

June 30, 2015

($ in Thousands)

	AS OF12/31/14				AS OF 3/31/15				AS OF 6/30/15
Non-Performing Assets	AMOUNT			%	AMOUNT			%	AMOUNT			%
Non-accrual loans:
Single-Family Residential	$	74,415		75.7%	$	60,781		79.0%	$	56,638		86.7%
Construction - Speculative	1,329			1.4	1,152			1.5	762			1.2
Construction - Custom	—			—	—			—	355			0.5
Land - Acquisition & Development	—			—	—			—	—			—
Land - Consumer Lot Loans	2,260			2.3	2,458			3.2	1,308			2.0
Multi-Family	1,019			1.0	—			—	786			1.2
Commercial Real Estate	15,970			16.2	5,735			7.5	2,852			4.4
Commercial & Industrial	673			0.7	5,018			6.5	1,205			1.8
HELOC	1,454			1.5	1,175			1.5	889			1.4
Consumer	1,233			1.3	576			0.7	513			0.8
Total non-accrual loans	98,353			100.0%	76,895			100.0%	65,308			100.0%
Total REO	61,970				72,239				59,239
Total REHI	3,994				4,068				4,336
Total non-performing assets	$	164,317			$	153,202		(b)	$	128,883		(b)
(b) Includes $10 million from former Horizon Bank
Total non-performing assets as a
% of total assets	1.13		%		1.05		%		0.90		%

6

Washington Federal, Inc.

Fact Sheet

June 30, 2015

($ in Thousands)

	12/14 QTR			3/15 QTR			6/15 QTR
	AMOUNT		%	AMOUNT		%	AMOUNT		%
Restructured loans:
Single-Family Residential	$	304,784	86.6	$	290,950	85.6	$	275,428	85.7
Construction - Speculative	6,651		1.9	6,408		1.9	6,370		2.0
Construction - Custom	—		—	—		—	—		—
Land - Acquisition & Development	4,238		1.2	4,179		1.2	3,536		1.1
Land - Consumer Lot Loans	12,528		3.6	12,501		3.7	11,539		3.6
Multi-Family	4,141		1.2	3,862		1.1	3,843		1.2
Commercial Real Estate	18,028		5.1	20,673		6.1	19,251		6.0
Commercial & Industrial	—		—	—		—	—		—
HELOC	1,486		0.4	1,394		0.4	1,394		0.4
Consumer	126		—	122		—	120		—
Total restructured loans	$	351,982	100.0%	$	340,089	100.0%	$	321,481	100.0%
Restructured loans were as follows:
Performing	$	333,854	94.8%	$	327,386	96.3%	$	308,355	95.9%
Non-performing (c)	18,128		5.2	12,703		3.7	13,126		4.1
Total restructured loans	$	351,982	100.0%	$	340,089	100.0%	$	321,481	100.0%
(c) Included in "Total non-accrual loans" above

7

Washington Federal, Inc.

Fact Sheet

June 30, 2015

($ in Thousands)

	12/14 QTR					3/15 QTR					6/15 QTR
	AMOUNT			CO % (d)		AMOUNT			CO % (d)		AMOUNT			CO % (d)
Net Charge-offs by Category
Single-Family Residential	$	(859	)	(0.06)%		$	(2,713	)	(0.20)%		$	(2,181	)	(0.16)%
Construction - Speculative	388			1.02		(75		)	(0.18)		—			—
Construction - Custom	—			—		—			—		—			—
Land - Acquisition & Development	37			0.17		(204		)	(0.76)		(1		)	—
Land - Consumer Lot Loans	35			0.13		17			0.07		89			0.34
Multi-Family	(220		)	(0.09)		—			—		—			—
Commercial Real Estate	(1		)	—		(453		)	(0.20)		1,361			0.55
Commercial & Industrial	(34		)	(0.03)		338			0.29		1,210			0.94
HELOC	—			—		—			—		25			0.07
Consumer	(187		)	(0.57)		(33		)	(0.06)		(192		)	(0.37)
Total net charge-offs	$	(841	)	(0.04)%		$	(3,123	)	(0.14)%		$	313		0.01%
(d) Annualized Net Charge-offs divided by Gross Balance
SOP 03-3
Accretable Yield	$	89,743				$	91,290				$	83,640
Non-Accretable Yield	179,343					167,603					167,603
Total Contractual Payments	$	269,086				$	258,893				$	251,243
Interest Rate Risk
One Year GAP				(11.0	)%				(10.3	)%				(13.2	)%
NPV post 200 bps shock (e)				16.56	%				16.50	%				16.53	%
Change in NII after 200 bps shock (e)				(1.4	)%				(1.1	)%				(2.2	)%
(e) Assumes no balance sheet management
CD's Repricing	Amount			Rate		Amount			Rate		Amount			Rate
Within 3 months	$	1,207,396		0.63	%	$	612,836		0.60	%	$	621,694		0.45	%
From 4 to 6 months	856,224			0.61	%	883,166			0.50	%	913,269			0.50	%
From 7 to 9 months	500,584			0.63	%	708,921			0.58	%	620,542			0.61	%
From 10 to 12 months	539,262			0.68	%	745,590			0.47	%	678,536			0.56	%

8

Washington Federal, Inc.

Fact Sheet

June 30, 2015

($ in Thousands)

Historical CPR Rates (f)
	WAFD		WAFD
Average for Quarter Ended:	SFR Mortgages		GSE MBS
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	%
6/30/2014	13.8	%	10.6	%
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	%
(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. 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

June 30, 2015

Average Balance Sheet

($ in Thousands)

	Quarters Ended
	December 31, 2014						March 31, 2015						June 30, 2015
	Average				Average		Average				Average		Average				Average
	Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
Assets
Loans and covered loans	$	8,367,285	$	108,293	5.13	%	$	8,487,458	$	109,275	5.22	%	$	8,628,344	$	107,249	4.99	%
Mortgage-backed securities	3,191,365		19,175		2.38		3,070,002		18,144		2.40		3,024,821		16,995		2.25
Cash & Investments	1,876,824		5,415		1.14		1,688,076		4,813		1.16		1,543,556		4,625		1.20
FHLB & FRB Stock	158,194		401		1.01		154,342		399		1.05		134,692		430		1.28
Total interest-earning assets	13,593,668		133,284		3.89	%	13,399,878		132,630		4.01	%	13,331,414		129,300		3.89	%
Other assets	1,062,770						1,150,996						1,124,750
Total assets	$	14,656,438					$	14,550,874					$	14,456,164
Liabilities and Equity
Customer accounts	10,680,974		13,445		0.5	%	10,659,570		12,574		0.48	%	10,635,364		12,485		0.47	%
FHLB advances	1,920,217		17,656		3.65		1,830,000		16,176		3.58		1,820,110		16,250		3.58
Other borrowings	—		—		—		—		—		—		—		—		—
Total interest-bearing liabilities	12,601,191		31,101		0.98	%	12,489,570		28,750		0.93	%	12,455,474		28,735		0.93	%
Other liabilities	95,026						114,628						46,980
Total liabilities	12,696,217						12,604,198						12,502,454
Stockholders’ equity	1,960,221						1,946,676						1,953,710
Total liabilities and equity	$	14,656,438					$	14,550,874					$	14,456,164
Net interest income			$	102,183					$	103,881					$	100,565
Net interest margin					3.01	%					3.10	%					3.02	%
(Annualized net interest income divided by average interest-earning assets)

10

Washington Federal, Inc.

Fact Sheet

June 30, 2015

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 $
June 30, 2015
Single-Family Residential	28,055	198	$	5,566,121	90	39	234	363	1.29	%	$	73,236	1.32	%
Construction - Speculative	608	194	117,711		—	—	1	1	0.16	%	—		—	%
Construction - Custom	765	268	204,914		1	1	1	3	0.39	%	774		0.38	%
Land - Acquisition & Development	138	549	75,726		2	—	2	4	2.90	%	1,498		1.98	%
Land - Consumer Lot Loans	1,250	84	105,403		6	3	17	26	2.08	%	2,852		2.71	%
Multi-Family	1,000	1,017	1,017,437		—	1	2	3	0.30	%	1,041		0.10	%
Commercial Real Estate	978	890	870,691		3	1	8	12	1.23	%	3,196		0.37	%
Commercial & Industrial	1,173	437	512,966		3	—	3	6	0.51	%	930		0.18	%
HELOC	2,151	64	137,837		8	3	8	19	0.88	%	1,792		1.30	%
Consumer	5,432	38	208,956		103	34	36	173	3.18	%	1,097		0.53	%
	41,550	212	$	8,817,761	216	82	312	610	1.47	%	$	86,416	0.98	%
March 31, 2015
Single-Family Residential	28,365	195	$	5,543,851	92	41	243	376	1.33	%	$	78,895	1.42	%
Construction - Speculative	577	183	105,568		23	—	2	25	4.33	%	2,525		2.39	%
Construction - Custom	766	263	201,777		2	2	—	4	0.52	%	1,169		0.58	%
Land - Acquisition & Development	144	654	94,179		—	—	2	2	1.39	%	868		0.92	%
Land - Consumer Lot Loans	1,271	82	104,477		6	4	20	30	2.36	%	3,621		3.47	%
Multi-Family	994	951	944,937		1	—	3	4	0.40	%	947		0.10	%
Commercial Real Estate	983	830	815,978		3	4	9	16	1.63	%	10,670		1.31	%
Commercial & Industrial	1,140	416	474,090		1	—	4	5	0.44	%	2,994		0.63	%
HELOC	2,084	65	136,439		7	3	9	19	0.91	%	1,393		1.02	%
Consumer	5,921	37	221,525		111	33	42	186	3.14	%	1,064		0.48	%
	42,245	205	$	8,642,822	246	87	334	667	1.58	%	$	104,145	1.20	%
December 31, 2014
Single-Family Residential	28,741	195	$	5,617,403	104	43	283	430	1.50	%	$	87,341	1.55	%
Construction - Speculative	524	182	95,367		1	—	—	1	0.19	%	168		0.18	%
Construction - Custom	799	240	191,787		3	1	—	4	0.50	%	117		0.06	%
Land - Acquisition & Development	130	560	72,752		1	—	—	1	0.77	%	2,339		3.22	%
Land - Consumer Lot Loans	1,295	83	106,939		11	3	25	39	3.01	%	4,614		4.31	%
Multi-Family	980	928	909,249		—	—	4	4	0.41	%	763		0.08	%
Commercial Real Estate	886	804	712,154		6	2	9	17	1.92	%	22,703		3.19	%
Commercial & Industrial	1,091	413	450,675		4	—	4	8	0.73	%	1,537		0.34	%
HELOC	2,071	65	135,093		4	2	10	16	0.77	%	1,642		1.22	%
Consumer	6,464	20	131,352		132	46	65	243	3.76	%	2,252		1.71	%
	42,981	196	$	8,422,772	266	97	400	763	1.78	%	$	123,476	1.47	%

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