Washington Federal (WAFD) 8-K Washington Federal Announces Quarterly Earnings Per Share Of $0.84

Washington Federal, Inc.

Fact Sheet

December 31, 2019

($ in Thousands)

													Exhibit 99.2
	As of 06/19						As of 09/19						As of 12/19
Loan Loss Reserve - Total	$	140,272					$	138,434					$	140,013
General and Specific Allowance	134,022						131,534						132,513
Commitments Reserve	6,250						6,900						7,500
Allowance and Reserve as a % of Gross Loans	1.05		%				1.04		%				1.04		%
	06/19 QTR			06/19 YTD			09/19 QTR			09/19 YTD			12/19 QTR			12/19 YTD
Loan Originations - Total	$	1,001,385		$	3,045,756		$	1,074,715		$	4,120,471		$	1,371,315		$	1,371,315
Single-Family Residential	160,010			393,522			153,535			547,057			167,144			167,144
Construction	283,231			928,955			342,212			1,271,167			432,444			432,444
Construction - Custom	119,792			318,480			138,848			457,328			123,986			123,986
Land - Acquisition & Development	29,287			96,375			27,383			123,758			40,692			40,692
Land - Consumer Lot Loans	8,403			22,840			14,285			37,125			11,015			11,015
Multi-Family	38,056			147,210			63,379			210,589			86,729			86,729
Commercial Real Estate	92,436			274,033			69,139			343,172			73,027			73,027
Commercial & Industrial	245,701			779,039			241,257			1,020,296			413,615			413,615
HELOC	23,828			77,576			23,823			101,399			22,111			22,111
Consumer	641			7,726			854			8,580			552			552
Purchased Loans (including acquisitions)	$	—		$	—		$	—		$	—		$	—		$	—
Net Loan Fee and Discount Accretion	$	3,856		$	9,867		$	4,190		$	14,057		$	4,925		$	4,925
Repayments
Loans	$	929,662		$	2,574,363		$	1,064,259		$	3,638,622		$	1,301,419		$	1,301,419
MBS	77,220			209,974			113,715			323,689			142,509			142,509
MBS Premium Amortization	$	1,575		$	4,407		$	2,277		$	6,684		$	2,535		$	2,535
Efficiency
Operating Expenses/Average Assets	1.72		%	1.72		%	1.75		%	1.73		%	2.02		%	2.02		%
Efficiency Ratio (%) (a)	52.24		%	51.76		%	53.08		%	52.09		%	57.05		%	57.05		%
Amortization of Intangibles	$	510		$	1,530		$	510		$	2,040		$	495		$	495
(a) Efficiency ratio for the three months ended December 31, 2019 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 Outstanding	79,398,713						78,841,463						78,107,870
Share repurchase information
Remaining shares authorized for repurchase	8,537,241						7,966,761						7,052,600
Shares repurchased	1,056,460			3,495,357			570,480			4,065,837			914,161			914,161
Average share repurchase price	$	32.45		$	29.74		$	34.92		$	30.46		$	36.62		$	36.62

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Washington Federal, Inc.

Fact Sheet

December 31, 2019

($ in Thousands)

Tangible Common Book Value	As of 06/19			As of 09/19			As of 12/19
$ Amount	$	1,702,977		$	1,723,748		$	1,740,432
Per Share	21.45			21.86			22.28
# of Employees	1,962			1,971			2,001
Investments
Available-for-sale:
Agency MBS	$	1,027,402		$	982,560		$	928,934
Other	480,535			503,182			566,652
	$	1,507,937		$	1,485,742		$	1,495,586
Held-to-maturity:
Agency MBS	$	1,508,175		$	1,443,480		$	1,360,693
	$	1,508,175		$	1,443,480		$	1,360,693
	As of 06/19			As of 09/19			As of 12/19
Loans Receivable by Category	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,873,583	44.1%	$	5,835,194	43.8%	$	5,702,071	42.5%
Construction	1,997,236		15.0	2,038,052		15.3	2,174,313		16.2
Construction - Custom	570,897		4.3	540,741		4.1	538,234		4.0
Land - Acquisition & Development	203,086		1.5	204,107		1.5	203,043		1.5
Land - Consumer Lot Loans	95,227		0.7	99,694		0.7	97,097		0.7
Multi-Family	1,403,142		10.5	1,422,674		10.7	1,436,715		10.7
Commercial Real Estate	1,622,943		12.2	1,631,170		12.3	1,643,099		12.3
Commercial & Industrial	1,256,398		9.4	1,268,695		9.5	1,352,738		10.1
HELOC	139,914		1.1	142,178		1.1	141,274		1.1
Consumer	142,317		1.1	129,883		1.0	115,829		0.9
	13,304,743		100%	13,312,388		100%	13,404,413		100%
Less:
Allowance for Loan Losses (ALL)	134,022			131,534			132,513
Loans in Process	1,148,876			1,201,341			1,312,282
Net Deferred Fees, Costs and Discounts	47,312			48,938			54,757
Sub-Total	1,330,210			1,381,813			1,499,552
	$	11,974,533		$	11,930,575		$	11,904,861
Net Loan Portfolio by Category	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,820,350	48.6%	$	5,782,749	48.5%	$	5,648,066	47.4%
Construction	1,127,507		9.4	1,125,093		9.4	1,148,283		9.6
Construction - Custom	290,310		2.4	252,148		2.1	256,346		2.2
Land - Acquisition & Development	150,273		1.3	151,289		1.3	144,368		1.2
Land - Consumer Lot Loans	92,780		0.8	97,184		0.8	94,610		0.8
Multi-Family	1,390,847		11.6	1,410,030		11.8	1,423,419		12.0
Commercial Real Estate	1,604,168		13.4	1,612,005		13.5	1,623,352		13.6
Commercial & Industrial	1,220,859		10.2	1,232,581		10.3	1,313,672		11.0
HELOC	138,330		1.2	140,552		1.2	139,592		1.2
Consumer	139,109		1.2	126,944		1.1	113,153		1.0
	$	11,974,533	100%	$	11,930,575	100%	$	11,904,861	100%

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Washington Federal, Inc.

Fact Sheet

December 31, 2019

($ in Thousands)

	As of 06/19									As of 09/19								As of 12/19
Deposits by State (b)	AMOUNT			%		#	AMOUNT			%		#	AMOUNT			%		#
Washington	$	5,358,165		45.4	%	80	$	5,502,418		45.9	%	80	$	5,438,457		45.6	%	80
Idaho	863,157			7.3		24	867,250			7.2		24	862,667			7.2		24
Oregon	2,323,471			19.7		46	2,337,401			19.5		46	2,356,456			19.7		46
Utah	373,564			3.2		10	345,208			2.9		10	350,825			2.9		10
Nevada	353,807			3.0		11	384,491			3.2		11	390,282			3.3		11
Texas	176,555			1.5		6	178,152			1.5		6	165,717			1.4		6
Arizona	1,345,576			11.4		31	1,352,365			11.3		31	1,331,320			11.2		31
New Mexico	1,005,875			8.5		27	1,023,479			8.5		26	1,036,414			8.7		26
Total	$	11,800,170		100%		235	$	11,990,764		100%		234	$	11,932,138		100%		234
(b) Effective June 30, 2019, commercial account deposits that were previously serviced and assigned to Washington were reassigned to their respective geographical region.
Deposits by Type	AMOUNT			%			AMOUNT			%			AMOUNT			%
Non-Interest Checking	$	1,454,503		12.3	%		$	1,621,343		13.5	%		$	1,593,392		13.4	%
Interest Checking	1,963,698			16.6			1,984,576			16.6			2,125,878			17.8
Savings	771,473			6.5			753,574			6.3			748,505			6.3
Money Market	2,660,176			22.5			2,724,308			22.7			2,847,346			23.8
Time Deposits	4,950,320			42.0			4,906,963			40.9			4,617,017			38.7
Total	$	11,800,170		100%			$	11,990,764		100%			$	11,932,138		100%
Deposits greater than $250,000 - EOP	$	3,458,411					$	3,609,961					$	3,746,958
Time Deposit Repricing	Amount			Rate			Amount			Rate			Amount			Rate
Within 3 months	$	892,532		1.65	%		$	1,125,888		1.81	%		$	930,883		1.88	%
From 4 to 6 months	1,145,765			1.81	%		943,094			1.88	%		936,979			1.79	%
From 7 to 9 months	770,444			2.02	%		739,826			2.00	%		715,509			2.00	%
From 10 to 12 months	703,859			2.01	%		663,487			2.04	%		794,676			1.68	%
Non-Performing Assets	AMOUNT			%			AMOUNT			%			AMOUNT			%
Non-accrual loans:
Single-Family Residential	$	22,285		54.3%			$	25,271		74.9%			$	23,014		76.5%
Construction	—			—			—			—			—			—
Construction - Custom	1,161			2.8			—			—			—			—
Land - Acquisition & Development	173			0.4			169			0.5			86			0.3
Land - Consumer Lot Loans	641			1.6			246			0.7			334			1.1
Multi-Family	1,431			3.5			—			—			—			—
Commercial Real Estate	8,464			20.6			5,835			17.3			5,557			18.5
Commercial & Industrial	6,047			14.7			1,292			3.8			467			1.5
HELOC	803			2.0			907			2.7			630			2.1
Consumer	—			—			11			—			1			—
Total non-accrual loans	41,005			100%			33,731			100%			30,089			100%
Real Estate Owned	7,003						6,781						6,339
Other Property Owned	3,109						3,314						3,314
Total non-performing assets	$	51,117					$	43,826					$	39,742
Non-accrual loans as % of total net loans	0.34		%				0.28		%				0.25		%
Non-performing assets as % of total assets	0.31		%				0.27		%				0.24		%

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Washington Federal, Inc.

Fact Sheet

December 31, 2019

($ in Thousands)

	As of 06/19						As of 09/19						As of 12/19
	AMOUNT		%		AMOUNT		%		AMOUNT		%
Restructured loans:
Single-Family Residential	$	117,968	91.5%		$	111,886	92.0%		$	102,164	92.2%
Construction	—		—		—		—		—		—
Construction - Custom	—		—		—		—		—		—
Land - Acquisition & Development	95		0.1		90		0.1		86		0.1
Land - Consumer Lot Loans	4,056		3.1		3,714		3.1		3,556		3.2
Multi-Family	402		0.3		385		0.3		380		0.3
Commercial Real Estate	4,882		3.8		4,168		3.4		3,238		2.9
Commercial & Industrial	440		0.3		425		0.3		411		0.4
HELOC	953		0.7		949		0.8		942		0.8
Consumer	62		—		60		—		58		0.1
Total restructured loans	$	128,858	100%		$	121,677	100%		$	110,835	100%
Restructured loans were as follows:
Performing	$	124,108	96.3%		$	116,659	95.9%		$	106,380	96.0%
Non-performing (c)	4,750		3.7		5,018		4.1		4,455		4.0
Total restructured loans	$	128,858	100%		$	121,677	100%		$	110,835	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	$	18	—%		$	(405)	(0.03)%		$	(246)	(0.02)%
Construction	—		—		(100)		(0.02)		(54)		(0.01)
Construction - Custom	339		0.24		1,634		1.21		—		—
Land - Acquisition & Development	(1,960)		(3.86)		(2,308)		(4.52)		(1,449)		(2.85)
Land - Consumer Lot Loans	215		0.90		14		0.06		60		0.25
Multi-Family	—		—		—		—		(498)		(0.14)
Commercial Real Estate	(90)		(0.02)		(152)		(0.04)		(270)		(0.07)
Commercial & Industrial	816		0.26		1,117		0.35		(94)		(0.03)
HELOC	(1)		—		(1)		—		(93)		(0.26)
Consumer	(273)		(0.77)		139		0.43		65		0.22
Total net charge-offs (recoveries)	$	(936)	(0.03)%		$	(62)	—%		$	(2,579)	(0.08)%
(d) Annualized Net Charge-offs (recoveries) divided by Gross Balance.
Interest Rate Risk
NPV post 200 bps shock (e)			12.6	%			13.9	%			13.9	%
Change in NII after 200 bps shock (e)			(1.7)	%			1.3	%			0.7	%
(e) Assumes no balance sheet management actions taken.

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Washington Federal, Inc.

Fact Sheet

December 31, 2019

($ in Thousands)

Historical CPR Rates (f)
	WAFD		WAFD
Average for Quarter Ended:	SFR Mortgages		GSE MBS
12/31/2017	15.3	%	13.9	%
3/31/2018	12.1	%	13.3	%
6/30/2018	13.0	%	12.0	%
9/30/2018	12.3	%	12.0	%
12/31/2018	10.4	%	10.3	%
3/31/2019	9.3	%	9.4	%
6/30/2019	13.8	%	11.4	%
9/30/2019	18.2	%	16.9	%
12/31/2019	22.0	%	21.7	%
(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, 2019

Average Balance Sheet

($ in Thousands)

	Quarter Ended
	June 30, 2019										September 30, 2019								December 31, 2019
	Average				Average		Average				Average		Average				Average
	Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
Assets
Loans receivable	$	11,925,478	$	145,490	4.89	%	$	11,966,994	$	144,480	4.79	%	$	11,942,498	$	142,146	4.72	%
Mortgage-backed securities	2,563,070		18,719		2.93		2,489,843		17,231		2.75		2,360,374		15,612		2.62
Cash & investments	696,640		5,956		3.43		794,183		6,060		3.03		776,633		5,425		2.77
FHLB & FRB Stock	138,144		1,661		4.82		132,390		1,665		4.99		124,568		1,641		5.23
Total interest-earning assets	15,323,332		171,826		4.50	%	15,383,410		169,436		4.37	%	15,204,073		164,824		4.30	%
Other assets	1,139,374						1,177,871						1,189,996
Total assets	$	16,462,706					$	16,561,281					$	16,394,069
Liabilities and Equity
Customer accounts	$	11,724,841	32,331		1.11	%	$	11,887,819	33,640		1.12	%	$	11,888,167	31,481		1.05	%
FHLB advances	2,603,846		17,829		2.75		2,460,000		15,624		2.52		2,264,457		13,658		2.39
Total interest-bearing liabilities	14,328,687		50,160		1.40	%	14,347,819		49,264		1.36	%	14,152,624		45,139		1.27	%
Other liabilities	117,299						183,055						202,675
Total liabilities	14,445,986						14,530,874						14,355,299
Stockholders’ equity	2,016,720						2,030,407						2,038,770
Total liabilities and equity	$	16,462,706					$	16,561,281					$	16,394,069
Net interest income			$	121,666					$	120,172					$	119,685
Net interest margin (1)					3.18	%					3.12	%					3.15	%
(1) Annualized net interest income divided by average interest-earning assets

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Washington Federal, Inc.

Fact Sheet

December 31, 2019

Delinquency Summary

($ in Thousands)

TYPE OF LOANS			AMOUNT OF LOANS		# OF LOANS										% based	% based
	#LOANS	AVG Size	NET OF LIP & CHG-OFFs		30	60	90	Total	on #		$ Delinquent		on $
December 31, 2019
Single-Family Residential	23,645	241	$	5,702,058	45	15	77	137	0.58	%	$	26,386	0.46	%
Construction	507	2,346	1,189,457		—	1	—	1	0.20		1,415		0.12
Construction - Custom	1,018	255	259,944		—	—	—	—	—		—		—
Land - Acquisition & Development	132	1,166	153,942		2	1	—	3	2.27		886		0.58
Land - Consumer Lot Loans	1,135	86	97,097		4	1	8	13	1.15		462		0.48
Multi-Family	1,106	1,299	1,436,693		1	—	—	1	0.09		137		0.01
Commercial Real Estate	996	1,650	1,643,099		1	1	7	9	0.90		4,692		0.29
Commercial & Industrial	1,793	754	1,352,738		16	2	7	25	1.39		289		0.02
HELOC	3,049	46	141,274		10	2	9	21	0.69		1,382		0.98
Consumer	3,336	35	115,829		33	14	12	59	1.77		581		0.50
	36,717	329	$	12,092,131	112	37	120	269	0.73	%	$	36,230	0.30	%
September 30, 2019
Single-Family Residential	24,196	241	$	5,835,186	34	16	84	134	0.55	%	$	25,947	0.44	%
Construction	524	2,223	1,164,889		—	—	—	—	—		—		—
Construction - Custom	1,044	245	255,505		—	—	—	—	—		—		—
Land - Acquisition & Development	137	1,177	161,194		—	—	—	—	—		—		—
Land - Consumer Lot Loans	1,141	87	99,694		4	2	5	11	0.96		778		0.78
Multi-Family	1,125	1,265	1,422,652		—	—	—	—	—		—		—
Commercial Real Estate	994	1,641	1,631,171		1	1	7	9	0.91		5,662		0.35
Commercial & Industrial	1,829	694	1,268,695		—	—	12	12	0.66		867		0.07
HELOC	3,041	47	142,178		10	1	13	24	0.79		1,460		1.03
Consumer	3,520	37	129,883		41	12	12	65	1.85		656		0.51
	37,551	323	$	12,111,047	90	32	133	255	0.68	%	$	35,370	0.29	%
June 30, 2019
Single-Family Residential	24,541	239	$	5,872,750	43	28	70	141	0.57	%	$	26,591	0.45	%
Construction	591	1,977	1,168,667		—	—	—	—	—		—		—
Construction - Custom	1,103	267	294,224		—	—	2	2	0.18		1,161		0.39
Land - Acquisition & Development	135	1,188	160,383		—	—	—	—	—		—		—
Land - Consumer Lot Loans	1,139	84	95,150		8	1	4	13	1.14		1,321		1.39
Multi-Family	1,143	1,228	1,403,120		—	—	1	1	0.09		1,431		0.10
Commercial Real Estate	982	1,653	1,622,944		1	1	6	8	0.81		4,400		0.27
Commercial & Industrial	1,883	667	1,256,398		2	9	19	30	1.59		5,744		0.46
HELOC	2,971	47	139,914		11	2	13	26	0.88		1,514		1.08
Consumer	3,798	37	142,317		22	11	13	46	1.21		497		0.35
	38,286	318	$	12,155,867	87	52	128	267	0.70	%	$	42,659	0.35	%

7