Washington Federal (WAFD) 8-K Washington Federal Announces Record Quarterly Earnings

Washington Federal, Inc.

Fact Sheet

December 31, 2017

($ in Thousands)

													Exhibit 99.2
	As of 06/17						As of 09/17						As of 12/17
Loan Loss Reserve - Total	$	128,779					$	130,823					$	133,905
General and Specific Allowance	122,229						123,073						127,155
Commitments Reserve	6,550						7,750						6,750
Allowance and Reserve as a % of Gross Loans	1.08		%				1.07		%				1.08		%
	06/17 QTR			06/17 YTD			09/17 QTR			09/17 YTD			12/17 QTR			12/17 YTD
Loan Originations - Total	$	1,030,996		$	3,216,125		$	1,022,853		$	4,238,978		$	953,552		$	953,552
Single-Family Residential	181,721			567,509			189,607			757,116			158,086			158,086
Construction	268,027			774,048			307,416			1,081,464			279,833			279,833
Construction - Custom	129,077			372,678			157,757			530,435			99,720			99,720
Land - Acquisition & Development	21,559			48,124			31,752			79,876			24,449			24,449
Land - Consumer Lot Loans	10,200			27,423			11,728			39,151			9,279			9,279
Multi-Family	43,716			248,954			50,405			299,359			87,586			87,586
Commercial Real Estate	97,962			340,009			103,678			443,687			64,149			64,149
Commercial & Industrial	258,310			779,910			151,930			931,840			212,064			212,064
HELOC	19,310			54,922			17,991			72,913			17,651			17,651
Consumer	1,114			2,548			589			3,137			735			735
Purchased Loans (including acquisitions)	$	—		$	72,856		$	—		$	72,856		$	143,605		$	143,605
Net Loan Fee and Discount Accretion	$	2,348		$	14,874		$	4,181		$	19,055		$	3,509		$	3,509
Repayments
Loans	$	793,432		$	2,400,232		$	699,619		$	3,099,851		$	859,583		$	859,583
MBS	151,218			426,287			96,156			522,443			92,808			92,808
MBS Premium Amortization	$	2,620		$	10,651		$	2,929		$	13,580		$	2,206		$	2,206
Efficiency
Operating Expenses/Average Assets	1.52		%	1.51		%	1.66		%	1.55		%	1.62		%	1.62		%
Efficiency Ratio (%) (a)	46.57		%	47.51		%	48.68		%	47.82		%	47.25		%	47.25		%
Amortization of Intangibles	$	375		$	1,294		$	2,053		$	3,347		$	705		$	705
(a) Efficiency ratio for the quarter ended December 31, 2017 excludes the impact of $8.6 million reduction to noninterest income related to FDIC loss share valuation adjustments.
EOP Numbers
Shares Issued and Outstanding	88,750,133						87,193,362						86,363,099
Share repurchase information
Remaining shares authorized for repurchase (b)	3,468,854						1,900,955						753,585
Shares repurchased	811,034			1,569,279			1,567,899			3,137,178			1,147,370			1,147,370
Average share repurchase price	$	32.14		$	29.61		$	33.10		$	31.36		$	33.98		$	33.98
(b) Remaining shares authorized for repurchase reflects a reduction related to TARP warrants repurchased for cash to date.

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Washington Federal, Inc.

Fact Sheet

December 31, 2017

($ in Thousands)

Tangible Common Book Value	As of 06/17			As of 09/17			As of 12/17
$ Amount	$	1,725,491		$	1,707,006		$	1,699,040
Per Share	19.44			19.58			19.67
# of Employees	1,815			1,818			1,829
Investments
Available-for-sale:
Agency MBS	$	809,702		$	842,688		$	839,855
Other	460,712			423,521			406,000
	$	1,270,414		$	1,266,209		$	1,245,855
Held-to-maturity:
Agency MBS	$	1,651,528		$	1,646,856		$	1,765,886
	$	1,651,528		$	1,646,856		$	1,765,886
	As of 06/17			As of 09/17			As of 12/17
Loans Receivable by Category	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,687,850	47.9%	$	5,711,004	46.8%	$	5,693,318	45.7%
Construction	1,436,874		12.1	1,597,996		13.1	1,710,418		13.7
Construction - Custom	561,260		4.7	602,631		4.9	583,580		4.7
Land - Acquisition & Development	119,524		1.0	124,308		1.0	136,938		1.1
Land - Consumer Lot Loans	101,626		0.9	104,405		0.9	105,086		0.8
Multi-Family	1,263,187		10.6	1,303,148		10.7	1,312,695		10.5
Commercial Real Estate	1,346,006		11.3	1,434,610		11.8	1,436,508		11.5
Commercial & Industrial	1,116,860		9.4	1,093,360		9.0	1,120,707		9.0
HELOC	148,584		1.3	144,850		1.2	136,995		1.1
Consumer	95,775		0.8	85,075		0.7	219,971		1.8
	11,877,546		100%	12,201,387		100%	12,456,216		100%
Less:
ALL	122,229			123,073			127,155
Loans in Process	1,054,513			1,149,934			1,175,642
Net Deferred Fees, Costs and Discounts	46,379			45,758			46,377
Sub-Total	1,223,121			1,318,765			1,349,174
	$	10,654,425		$	10,882,622		$	11,107,042
Net Loan Portfolio by Category	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,628,508	52.8%	$	5,652,365	51.9%	$	5,636,013	50.7%
Construction	656,287		6.2	763,742		7.0	820,969		7.4
Construction - Custom	265,722		2.5	273,520		2.5	288,162		2.6
Land - Acquisition & Development	103,414		1.0	97,587		0.9	104,426		0.9
Land - Consumer Lot Loans	98,592		0.9	101,265		0.9	101,666		0.9
Multi-Family	1,250,730		11.7	1,290,640		11.9	1,300,179		11.7
Commercial Real Estate	1,327,530		12.5	1,416,188		13.0	1,418,364		12.8
Commercial & Industrial	1,082,486		10.2	1,060,304		9.7	1,086,533		9.8
HELOC	147,012		1.4	143,381		1.3	135,623		1.2
Consumer	94,144		0.9	83,630		0.8	215,107		1.9
	$	10,654,425	100%	$	10,882,622	100%	$	11,107,042	100%

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Washington Federal, Inc.

Fact Sheet

December 31, 2017

($ in Thousands)

	As of 06/30/17						As of 09/30/17						As of 12/31/17
Deposits by State	AMOUNT			%		#	AMOUNT			%		#	AMOUNT			%		#
Washington	$	5,199,590		48.9	%	81	$	5,383,764		49.7	%	81	$	5,605,233		50.9	%	81
Idaho	768,049			7.2		24	786,974			7.3		24	771,350			7.0		24
Oregon	1,939,619			18.2		47	1,964,490			18.1		47	1,947,171			17.7		47
Utah	270,224			2.5		10	267,717			2.5		10	263,405			2.4		10
Nevada	328,121			3.1		11	326,436			3.0		11	331,423			3.0		11
Texas	96,264			0.9		5	97,670			0.9		6	97,108			0.9		6
Arizona	1,177,997			11.1		31	1,164,743			10.7		31	1,155,381			10.5		31
New Mexico	854,414			8.0		27	843,214			7.8		27	830,508			7.5		27
Total	$	10,634,278		100%		236	$	10,835,008		100%		237	$	11,001,579		100%		237
Deposits by Type	AMOUNT			%			AMOUNT			%			AMOUNT			%
Checking (non-interest)	$	1,195,152		11.2	%		$	1,258,274		11.6	%		$	1,299,602		11.8	%
NOW (interest)	1,703,994			16.0			1,760,821			16.3			1,848,594			16.8
Savings	871,257			8.2			888,881			8.2			894,879			8.1
Money Market	2,433,547			22.9			2,453,182			22.6			2,439,537			22.2
Time Deposits	4,430,328			41.7			4,473,850			41.3			4,518,967			41.1
Total	$	10,634,278		100%			$	10,835,008		100%			$	11,001,579		100%
Deposits greater than $250,000 - EOP	$	2,524,536					$	2,674,914					$	2,857,838
Time Deposit Repricing	Amount			Rate			Amount			Rate			Amount			Rate
Within 3 months	$	879,213		0.65	%		$	668,177		0.65	%		$	730,975		0.74	%
From 4 to 6 months	649,962			0.67	%		714,935			0.76	%		871,822			0.83	%
From 7 to 9 months	450,756			0.83	%		653,760			0.85	%		525,594			0.98	%
From 10 to 12 months	625,472			0.87	%		471,057			0.98	%		677,959			1.08	%
Non-Performing Assets	AMOUNT			%			AMOUNT			%			AMOUNT			%
Non-accrual loans:
Single-Family Residential	$	32,613		57.8%			$	27,930		56.3%			$	26,219		57.6%
Construction	—			—			—			—			364			0.8
Construction - Custom	536			1.0			91			0.2			—			—
Land - Acquisition & Development	71			0.1			296			0.6			1,326			2.9
Land - Consumer Lot Loans	1,066			1.9			605			1.2			976			2.1
Multi-Family	682			1.2			139			0.3			250			0.5
Commercial Real Estate	12,983			23.0			11,815			23.8			8,241			18.1
Commercial & Industrial	8,254			14.6			8,082			16.3			7,596			16.7
HELOC	181			0.3			531			1.1			476			1.0
Consumer	22			—			91			0.2			72			0.2
Total non-accrual loans	56,408			100%			49,580			100%			45,520			100%
Real Estate Owned	19,112						20,658						17,928
Total non-performing assets	$	75,520					$	70,238					$	63,448
Non-accrual loans as % of total net loans	0.53		%				0.46		%				0.41		%
Non-performing assets as % of total assets	0.50		%				0.46		%				0.41		%

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Washington Federal, Inc.

Fact Sheet

December 31, 2017

($ in Thousands)

	As of 06/30/17					As of 09/30/17					As of 12/31/17
	AMOUNT			%		AMOUNT			%		AMOUNT			%
Restructured loans:
Single-Family Residential	$	196,575		87.9%		$	181,941		87.7%		$	170,601		85.7%
Construction	—			—		—			—		—			—
Construction - Custom	—			—		—			—		—			—
Land - Acquisition & Development	190			0.1		90			—		—			—
Land - Consumer Lot Loans	8,878			4.0		7,949			3.8		7,405			3.7
Multi-Family	497			0.2		493			0.2		480			0.2
Commercial Real Estate	15,907			7.1		15,079			7.3		11,910			6.0
Commercial & Industrial	—			—		—			—		7,256			3.6
HELOC	1,409			0.6		1,728			0.8		1,432			0.7
Consumer	102			—		97			—		91			—
Total restructured loans	$	223,558		100%		$	207,377		100%		$	199,175		100%
Restructured loans were as follows:
Performing	$	215,178		96.3%		$	202,272		97.5%		$	194,359		97.6%
Non-performing (c)	8,380			3.7		5,105			2.5		4,816			2.4
Total restructured loans	$	223,558		100%		$	207,377		100%		$	199,175		100%
(c) Included in "Total non-accrual loans" above
	AMOUNT			CO % (d)		AMOUNT			CO % (d)		AMOUNT			CO % (d)
Net Charge-offs (Recoveries) by Category
Single-Family Residential	$	186		0.01%		$	267		0.02%		$	340		0.02%
Construction	—			—		—			—		—			—
Construction - Custom	—			—		13			0.01		50			0.03
Land - Acquisition & Development	(863		)	(2.89)		(1,729		)	(5.56)		(3,372		)	(9.85)
Land - Consumer Lot Loans	(118		)	(0.46)		(113		)	(0.43)		47			0.18
Multi-Family	—			—		—			—		—			—
Commercial Real Estate	(164		)	(0.05)		—			—		—			—
Commercial & Industrial	(154		)	(0.06)		(727		)	(0.27)		61			0.02
HELOC	(1		)	—		(19		)	(0.05)		—			—
Consumer	(138		)	(0.58)		(236		)	(1.11)		(208		)	(0.38)
Total net charge-offs (recoveries)	$	(1,252	)	(0.04)%		$	(2,544	)	(0.08)%		$	(3,082	)	(0.10)%
(d) Annualized Net Charge-offs (recoveries) divided by Gross Balance
Interest Rate Risk
One Year GAP				(15.8	)%				(15.7	)%				(12.9	)%
NPV post 200 bps shock (e)				14.5	%				14.6	%				14.2	%
Change in NII after 200 bps shock (e)				2.0	%				3.0	%				1.3	%
(e) Assumes no balance sheet management actions taken

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Washington Federal, Inc.

Fact Sheet

December 31, 2017

($ in Thousands)

Historical CPR Rates (f)
	WAFD		WAFD
Average for Quarter Ended:	SFR Mortgages		GSE MBS
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	%
6/30/2017	15.0	%	20.9	%
9/30/2017	15.1	%	14.3	%
12/31/2017	15.3	%	13.9	%
(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.

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Washington Federal, Inc.

Fact Sheet

December 31, 2017

Average Balance Sheet

($ in Thousands)

	June 30, 2017						September 30, 2017						December 31, 2017
	Average				Average		Average				Average		Average				Average
	Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
Assets
Loans receivable	$	10,579,593	$	117,457	4.45	%	$	10,747,453	$	122,197	4.51	%	$	10,984,886	$	124,511	4.50	%
Mortgage-backed securities	2,551,598		15,992		2.51		2,493,604		15,605		2.48		2,521,407		16,899		2.66
Cash & investments	627,197		3,373		2.16		604,198		3,500		2.30		559,370		3,273		2.32
FHLB & FRB Stock	124,968		894		2.87		122,620		938		3.03		126,229		1,097		3.45
Total interest-earning assets	13,883,356		137,716		3.98	%	13,967,875		142,240		4.04	%	14,191,892		145,780		4.08	%
Other assets	1,142,899						1,144,200						1,149,607
Total assets	$	15,026,255					$	15,112,075					$	15,341,499
Liabilities and Equity
Customer accounts	$	10,567,710	12,764		0.48	%	$	10,704,066	13,850		0.51	%	$	10,850,742	14,638		0.54	%
FHLB advances	2,274,451		16,337		2.88		2,214,674		15,958		2.86		2,305,978		15,407		2.65
Other borrowings	—		—		—		—		—		—		—		—		—
Total interest-bearing liabilities	12,842,161		29,101		0.91	%	12,918,740		29,808		0.92	%	13,156,720		30,045		0.91	%
Other liabilities	155,460						183,542						168,382
Total liabilities	12,997,621						13,102,282						13,325,102
Stockholders’ equity	2,028,634						2,009,793						2,016,397
Total liabilities and equity	$	15,026,255					$	15,112,075					$	15,341,499
Net interest income			$	108,615					$	112,432					$	115,735
Net interest margin (1)					3.13	%					3.22	%					3.26	%
(1) Annualized net interest income divided by average interest-earning assets

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Washington Federal, Inc.

Fact Sheet

December 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 $
December 31, 2017
Single-Family Residential	25,325	225	$	5,692,045	51	35	104	190	0.75	%	$	36,172	0.64	%
Construction	675	1,262	852,164		1	3	4	8	1.19		4,371		0.51
Construction - Custom	1,241	235	292,255		—	—	—	—	—		—		—
Land - Acquisition & Development	122	920	112,260		—	—	4	4	3.28		1,242		1.11
Land - Consumer Lot Loans	1,209	87	104,996		2	1	10	13	1.08		750		0.71
Multi-Family	1,122	1,170	1,312,673		—	—	2	2	0.18		250		0.02
Commercial Real Estate	925	1,553	1,436,508		2	—	6	8	0.86		444		0.03
Commercial & Industrial	1,849	606	1,120,707		7	2	23	32	1.73		3,467		0.31
HELOC	2,859	48	136,995		8	4	17	29	1.01		991		0.72
Consumer	3,847	57	219,971		43	15	107	165	4.29		567		0.26
	39,174	288	$	11,280,574	114	60	277	451	1.15	%	$	48,254	0.43	%
September 30, 2017
Single-Family Residential	25,556	223	$	5,709,690	64	29	109	202	0.79	%	$	37,757	0.66	%
Construction	715	1,110	793,959		—	—	—	—	—		—		—
Construction - Custom	1,292	215	277,599		—	—	1	1	0.08		91		0.03
Land - Acquisition & Development	122	859	104,856		—	—	4	4	3.28		330		0.31
Land - Consumer Lot Loans	1,201	87	104,335		3	6	5	14	1.17		946		0.91
Multi-Family	1,135	1,148	1,303,119		2	1	3	6	0.53		399		0.03
Commercial Real Estate	931	1,541	1,434,610		2	—	8	10	1.07		2,558		0.18
Commercial & Industrial	1,820	601	1,093,360		—	2	20	22	1.21		625		0.06
HELOC	2,877	50	144,850		6	4	15	25	0.87		876		0.60
Consumer	4,039	21	85,075		50	24	103	177	4.38		431		0.51
	39,688	278	$	11,051,453	127	66	268	461	1.16	%	$	44,013	0.40	%
June 30, 2017
Single-Family Residential	25,779	221	$	5,687,169	68	36	123	227	0.88	%	$	44,653	0.79	%
Construction	624	1,095	683,273		—	1	—	1	0.16		686		0.10
Construction - Custom	1,218	221	269,612		—	—	2	2	0.16		536		0.20
Land - Acquisition & Development	118	941	111,057		—	—	4	4	3.39		123		0.11
Land - Consumer Lot Loans	1,187	86	101,584		1	2	6	9	0.76		615		0.61
Multi-Family	964	1,310	1,263,143		1	1	2	4	0.41		329		0.03
Commercial Real Estate	1,073	1,254	1,345,986		2	3	9	14	1.30		2,911		0.22
Commercial & Industrial	1,816	615	1,116,854		3	1	23	27	1.49		2,673		0.24
HELOC	2,914	51	148,581		14	7	6	27	0.93		1,491		1.00
Consumer	4,275	22	95,774		51	18	97	166	3.88		384		0.40
	39,968	271	$	10,823,033	140	69	272	481	1.20	%	$	54,401	0.50	%

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