0000936528-15-000004.txt : 20150120 0000936528-15-000004.hdr.sgml : 20150119 20150120154241 ACCESSION NUMBER: 0000936528-15-000004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20150114 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20150120 DATE AS OF CHANGE: 20150120 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WASHINGTON FEDERAL INC CENTRAL INDEX KEY: 0000936528 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 911661606 STATE OF INCORPORATION: WA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-34654 FILM NUMBER: 15535924 BUSINESS ADDRESS: STREET 1: 425 PIKE STREET CITY: SEATTLE STATE: WA ZIP: 98101 BUSINESS PHONE: 2066247930 MAIL ADDRESS: STREET 1: 425 PIKE ST CITY: SEATTLE STATE: WA ZIP: 98101 8-K 1 wafd8-k_jan202015.htm 8-K WAFD 8-K_Jan 20 2015


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________
FORM 8-K
____________________________________

 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 14, 2015
 ____________________________________
Washington Federal, Inc.
(Exact name of registrant as specified in its charter)
 ____________________________________
 
 
 
 
 
Washington
 
001-34654
 
91-1661606
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
425 Pike Street, Seattle, Washington 98101
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code (206) 624-7930
Not Applicable
(Former name or former address, if changed since last report)
____________________________________
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 






Item 2.02
Results of Operations and Financial Condition

On January 14, 2015, the Company announced by press release its earnings for the quarter ended December 31, 2014. A copy of the press release is attached to this filing as Exhibit 99.1. A copy of the December 31, 2014 Fact Sheet, which presents certain detailed financial information about the Company, is attached as Exhibit 99.2. This information is being furnished under Item 2.02 (Results of Operations and Financial Condition) of Form 8-K.


Item 7.01
Regulation FD Disclosure

A copy of the December 31, 2014 Fact Sheet, which presents certain detailed financial information about the Company is attached as Exhibit 99.2.

Item 9.01
Financial Statements and Exhibits

(a) Not applicable
(b) Not applicable
(c) Not applicable
(d) The following exhibits are being furnished herewith:

99.1    Press release dated January 14, 2015
99.2    Fact Sheet as of December 31, 2014
    



2


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 
 
 
 
 
 
 
Date: January 20, 2015
 
 
 
WASHINGTON FEDERAL, INC.
 
 
 
 
 
 
 
 
By:
 
/s/ DIANE L. KELLEHER
 
 
 
 
 
 
Diane L. Kelleher
 
 
 
 
 
 
Senior Vice President
and Chief Financial Officer

3
 EX-99.1 2 exhibit991_dec2014earnings.htm EXHIBIT 99.1 Exhibit 99.1_Dec 2014 earnings release


Exhibit 99.1

Wednesday January 14, 2015
FOR IMMEDIATE RELEASE


Washington Federal Announces
Quarterly Earnings of $0.39 cents per diluted share


SEATTLE, WASHINGTON - Washington Federal, Inc. (Nasdaq: WAFD), parent company of Washington Federal, today announced earnings of $38,407,000 for the quarter ended December 31, 2014, compared to $40,236,000 for the quarter ended December 31, 2013, a decrease of 4.6%. Earnings per fully diluted share of $0.39 were equal to the same period one year ago. The quarter produced a return on average assets of 1.05% and a return on average equity of 7.84%.
Chairman, President & CEO Roy M. Whitehead commented, “Operating results were slightly improved over one year ago, prior to accounting for unusual items. Low interest rates, modest economic growth and overcapacity in the financial services industry combine to make smart growth a challenge right now. The Company is well-positioned though to grow within market limitations, yet still continue to distribute all or most earnings to shareholders through cash dividends and share repurchases as a means to steadily improve the value of their investment.”
Loans receivable during the quarter grew by $106 million or 1.3% to $8.3 billion as of December 31, 2014. Loan originations for the quarter totaled $579 million, a $78 million or 15.7% increase over the same quarter of the prior year. The weighted average interest rate on loans as of December 31, 2014 was 4.69%, a decrease from 4.92% as of the prior year due to the continued low interest rate environment. Actual yield earned on loans will be greater than the weighted average rate due to net deferred loan fees and discounts on acquired loans, which are accreted into income over the term of the loans.

1



Total assets decreased by $261 million or 1.8% to $14.5 billion at December 31, 2014 from $14.8 billion at September 30, 2014. Available for sale investments decreased $154 million or 5.1% compared to September 2014, and held to maturity investments decreased by $32 million or 2.1%. To assist in funding the growth of employee benefit costs, the Company purchased $100 million in bank-owned life insurance, with a pro forma 2015 pre-tax equivalent yield of 5.14%. This investment is included in other assets on the balance sheet. During the quarter, the Company had an average balance of cash and cash equivalents of $570 million invested overnight at a yield of approximately 0.25%.
Customer deposits of $10.6 billion decreased $138 million or 1.3% compared to September 30, 2014. Specifically, transaction accounts decreased by $26 million or 0.5% and time deposits decreased by $112 million or 2.1%. Transaction accounts have increased significantly from prior years to 52% of total deposits. The Company is focused on growing transaction accounts to lessen sensitivity to rising interest rates. The deposits acquired during fiscal 2014 were beneficial to this transition.
Total non-performing assets, including real estate owned as a result of foreclosure (“REO”), amounted to $164 million or 1.13% of total assets at quarter-end, a $34 million or 17.0% decrease from December 31, 2013. Non-performing loans decreased from $115 million at December 31, 2013 to $98 million as of December 31, 2014, a 14.3% decrease. Net loan recoveries decreased from $6 million in the quarter ended December 31, 2013 to a net recovery of $1 million in the most recent quarter. Total loan delinquencies were 1.47% as of December 31, 2014, a decrease from 1.81% at December 31, 2013. Delinquencies on single family mortgage loans, the largest component of the loan portfolio, declined during the year to 1.55% from 2.11% at December 31, 2013. REO balances increased during the quarter by $6.9 million, including upward net market value adjustments from prior period corrections of $8.2 million which are partially offset by a net decline in balances due to current period activities.
Net interest income for the quarter was $102 million, a $4 million or 3.9% increase from the quarter ended December 31, 2013. Net interest income improved as a result of increased assets associated with the deposit acquisitions during 2014. Net interest margin was 3.01% for the quarter ended December 31, 2014, up from 3.00% for the prior quarter and down from 3.12% for the quarter ended December 31, 2013. The margin declined primarily as a result of lower

2



yields on loans. Average earning assets increased $991 million or 7.9% compared to the same quarter of the prior year.
Deposit fee income of $6.0 million is $4.3 million higher compared to the same quarter of the prior year due primarily to the higher number of transaction accounts from the branch acquisitions. Loan fee income of $2.0 million is similar to a year ago.
Other Income of $2.0 million in the quarter ended December 31, 2013 declined to a $2.7 million loss for the recent quarter, including four unusual items. The net write-up of REO mentioned above of $8.2 million is a correction from prior periods. Management also corrected an over-accrual of interest income on loans of $8.9 million that had accumulated since fiscal 2011 and was recently detected. Management believes that these errors and their corrections were not material to any reporting period. Other income for the quarter also included a prepayment charge of $2.6 million on a $100 million Federal Home Loan Bank advance that was accruing interest at 4% and scheduled to mature in September 2015. The prepayment charge will be offset by a corresponding reduction in interest expense over the remaining nine months of the fiscal year. Management also recorded $2 million of additional write-down of the FDIC indemnification asset related to the commercial loans acquired from Horizon Bank in 2010. At inception of the FDIC loss share agreement, this intangible asset was established as an estimate of $240 million, representing expected payments from the FDIC for its portion of the loan losses over the life of the agreement. The portion of the agreement related to commercial loans expires on March 31, 2015.
Total operating expenses increased by $9.5 million or 21.5% as compared to the same quarter of the prior year, driven primarily by an increase in employees as well as occupancy, product delivery and technology expenses related to the branch acquisitions from Bank of America during the 2014 fiscal year. Technology expenses are also higher in preparation for an upgrade of core systems in 2015. FDIC insurance premiums are lower by $1.7 million this quarter due to recoveries from prior periods that reflect improvements in credit quality. FDIC insurance premiums were $2.3 million in the quarter, prior to this recovery.
The Company’s efficiency ratio of 49.8% for the quarter remains among the best in the industry.

3



The reversal of the provision for loan losses increased from $4.6 million to $5.5 million for the quarters ended December 31, 2013 and 2014, respectively, for two reasons: 1) the continuing improvement in the asset quality indicators previously mentioned, and 2) a scheduled refreshment of historical loss factors used in the loan loss estimate. The Company updates its loan loss model annually in December, by replacing the oldest annual loan loss data used in the estimate with loan loss results from the most recent fiscal year. Fiscal 2014 loan losses were significantly improved over the period that was dropped from the model.
Net gain on real estate acquired through foreclosure was less than $1 million as compared to a $2 million loss for the quarter ended December 31, 2013. The Company expects the amount of gain or loss on real estate acquired to continue to fluctuate in future quarters based primarily on the timing of sales and the amount, if any, of gains or losses related to those sales. Net gain or loss on real estate acquired through foreclosure includes gains and losses on sales, ongoing maintenance expenses and any recent valuation adjustments.
On October 17, 2014, the Company paid a cash dividend of 14.67 cents per share to common stockholders of record on October 3, 2014. This cash dividend included a 3.67 cent one-time payment, representing an additional one month’s dividend income to compensate for a change in the dividend payment schedule. Beginning in 2015, the Board of Directors will consider regular dividend declarations in January, April, July, and October, one month later than in the past. During the quarter, the Company repurchased 1,116,147 shares of stock at a weighted average price of $21.79 and has board authorization to repurchase an additional 4.0 million shares. The ratio of tangible common equity to tangible assets was 11.83% as of December 31, 2014.
Washington Federal, a national bank with headquarters in Seattle, Washington, has 247 branches in eight western states.
On January 21, 2015, Washington Federal, Inc. will hold its Annual Meeting of Stockholders at Benaroya Hall in Seattle, at 2:00 p.m., Pacific Time.
To find out more about Washington Federal, please visit our website. Washington Federal uses its website to distribute financial and other material information about the Company, which is routinely posted on and accessible at www.washingtonfederal.com.

4



Important Cautionary Statements
The foregoing information should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2013 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
This press release contains statements about the Company’s future that are not statements of historical fact. These statements are “forward looking statements” for purposes of applicable securities laws, and are based on current information and/or management's good faith belief as to future events. The words “believe,” “expect,” “anticipate,” “project,” and similar expressions signify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance. By their nature, forward-looking statements involve inherent risk and uncertainties, which change over time; and actual performance could differ materially from those anticipated by any forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statement.
# # #





Contact:

Washington Federal, Inc.
425 Pike Street, Seattle, WA 98101
Cathy Cooper, SVP Marketing Communications
206-777-8246
cathy.cooper@wafd.com




5



WASHINGTON FEDERAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
 
December 31, 2014
 
September 30, 2014
 
(In thousands, except share data)
ASSETS
 
 
 
Cash and cash equivalents
$
542,769

 
$
781,843

Available-for-sale securities, at fair value
2,895,056

 
3,049,442

Held-to-maturity securities, at amortized cost
1,516,219

 
1,548,265

Loans receivable, net
8,253,917

 
8,148,322

Covered loans, net
161,478

 
176,476

Interest receivable
40,757

 
52,037

Premises and equipment, net
254,284

 
257,543

Real estate held for sale
61,970

 
55,072

Real estate held for investment
3,994

 
4,808

Covered real estate held for sale
19,405

 
24,082

FDIC indemnification asset
30,356

 
36,860

FHLB and FRB stock
154,870

 
158,839

Intangible assets, net
301,885

 
302,909

Federal and state income tax assets, net
—

 
16,515

Other assets
257,796

 
143,028

 
$
14,494,756

 
$
14,756,041

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Liabilities
 
 
 
Customer accounts
 
 
 
Transaction deposit accounts
$
5,464,198

 
$
5,490,687

Time deposit accounts
5,114,655

 
5,226,241

 
10,578,853

 
10,716,928

FHLB advances
1,830,000

 
1,930,000

Advance payments by borrowers for taxes and insurance
19,301

 
29,004

Federal and State income tax liabilities, net
4,278

 
—

Accrued expenses and other liabilities
80,985

 
106,826

 
12,513,417

 
12,782,758

Stockholders’ equity
 
 
 
Common stock, $1.00 par value, 300,000,000 shares authorized;
133,590,428 and 132,322,909 shares issued; 97,556,077 and 98,404,705 shares outstanding
133,591

 
133,323

Paid-in capital
1,639,350

 
1,638,211

Accumulated other comprehensive income, net of taxes
23,435

 
20,708

Treasury stock, at cost; 36,034,351 and 34,918,204 shares
(549,434
)
 
(525,108
)
Retained earnings
734,397

 
709,149

 
1,981,339

 
1,976,283

 
$
14,494,756

 
$
14,759,041

CONSOLIDATED FINANCIAL HIGHLIGHTS
 
 
 
Common stockholders' equity per share
$
20.31

 
$
20.09

Tangible common stockholders' equity per share
17.22

 
17.01

Stockholders' equity to total assets
13.67
%
 
13.40
%
Tangible common stockholders' equity to tangible assets
11.83

 
11.58

 
 
 
 

6



 
 
 
 
Weighted average rates at period end
 
 
 
   Loans and mortgage-backed securities
4.14
%
 
4.17
%
   Combined loans, mortgage-backed securities and investments
3.68

 
3.63

   Customer accounts
0.50

 
0.51

   Borrowings
3.49

 
3.52

   Combined cost of customer accounts and borrowings
0.94

 
0.97

   Interest rate spread
2.74

 
2.66




7



WASHINGTON FEDERAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
 
Quarter Ended December 31,
 
 
2014
 
2013
 
 
(In thousands, except per share data)
 
INTEREST INCOME
 
 
 
 
Loans & covered assets
$
108,293

 
$
107,227

 
Mortgage-backed securities
19,175

 
19,368

 
Investment securities and cash equivalents
5,816

 
4,663

 
 
133,284

 
131,258

 
INTEREST EXPENSE
 
 
 
 
Customer accounts
13,445

 
15,499

 
FHLB advances and other borrowings
17,656

 
17,447

 
 
31,101

 
32,946

 
Net interest income
102,183

 
98,312

 
Provision (reversal) for loan losses
(5,500
)
 
(4,600
)
 
Net interest income after provision for loan losses
107,683

 
102,912

 
 
 
 
 
 
OTHER INCOME
 
 
 
 
Loan fee income
2,065

 
2,046

 
Deposit fee income
5,977

 
1,704

 
Other Income (Loss)
(2,662
)
 
2,038

 
 
5,380

 
5,788

 
OTHER EXPENSE
 
 
 
 
Compensation and benefits
29,160

 
25,126

 
Occupancy
8,135

 
7,050

 
FDIC insurance premiums
674

 
2,934

 
Product delivery
5,627

 
1,318

 
Information Technology
4,030

 
2,929

 
Other
5,974

 
4,763

 
 
53,600

 
44,120

 
Gain (loss) on real estate acquired through foreclosure, net
315

 
(1,951
)
 
Income before income taxes
59,778

 
62,629

 
Income tax provision
21,371

 
22,393

 
NET INCOME
$
38,407

 
$
40,236

 
 
 
 
 
 
PER SHARE DATA
 
 
 
 
Basic earnings
$
0.39

 
$
0.39

 
Diluted earnings
0.39

 
0.39

 
Cash dividends per share
0.15

 
0.10

 
Basic weighted average number of shares outstanding
98,147,939

 
102,329,578

 
Diluted weighted average number of shares outstanding, including dilutive stock options
98,524,839

 
102,813,154

 

8



 
 
 
 
 
PERFORMANCE RATIOS
 
 
 
 
Return on average assets
1.05
%
 
1.19
%
 
Return on average common equity
7.84

 
8.26

 
Net Interest Margin
3.01

 
3.12

 

9

 EX-99.2 3 exhibit992_dec2014factsheet.htm EXHIBIT 99.2 Exhibit 99.2_Dec 2014 Fact Sheet
Washington Federal, Inc.
Fact Sheet
December 31, 2014
($ in Thousands)

Exhibit 99.2
 
 
 
 
 
 
 
 
 
 
 
 
 
 6/14 QTR
 
 
 
 9/14 QTR
 
 
 
 12/14 QTR
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan Loss Reserve - Total
$
114,150

 
 
 
$
115,257

 
 
 
$
110,598

 
 
 
     General and Specific Allowance
$
114,150

 
 
 
$
112,347

 
 
 
$
108,700

 
 
 
     Commitments Reserve
—

 
 
 
2,910

 
 
 
1,898

 
 
 
    Allowance as a % of Gross Loans
1.35
%
 
 
 
1.33
%
 
 
 
1.26
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Regulatory Capital Ratios (excludes holding co.)
 
 
 
 
 
 
 
 
 
 
 
 
     Tangible
1,652,787

 
11.58%
 
1,658,704

 
11.46%
 
1,622,086

 
11.33%
 
     Tier 1 Risk Based
1,652,787

 
23.14%
 
1,658,704

 
22.85%
 
1,622,086

 
21.9%
 
     Risk Based
1,743,057

 
24.41%
 
1,750,179

 
24.11%
 
1,715,440

 
23.16%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 6/14 QTR
 
 6/14 YTD
 
 9/14 QTR
 
 9/14 YTD
 
 12/14 QTR
 
 12/14 YTD
 
Loan Originations - Total
$
596,623

 
$1,507,369
 
$
664,646

$
2,172,015
 
 
$
578,988

$
578,988
 
 
     Single-Family Residential
176,218

 
476,301
 
220,698

696,999
 
 
167,299

167,299
 
 
     Construction - Speculative
37,365

 
116,492
 
54,047

170,539
 
 
50,158

50,158
 
 
     Construction - Custom
83,040

 
242,699
 
116,374

359,073
 
 
88,398

88,398
 
 
     Land - Acquisition & Development
23,377

 
45,139
 
8,821

53,960
 
 
16,567

16,567
 
 
     Land - Consumer Lot Loans
3,024

 
7,227
 
5,214

12,441
 
 
2,604

2,604
 
 
     Multi-Family
77,546

 
189,209
 
50,143

239,352
 
 
62,281

62,281
 
 
     Commercial Real Estate
87,503

 
165,752
 
92,615

258,367
 
 
59,840

59,840
 
 
     Commercial & Industrial
93,820

 
228,645
 
104,226

332,871
 
 
114,787

114,787
 
 
     HELOC
14,323

 
34,890
 
12,164

47,054
 
 
16,270

16,270
 
 
     Consumer
407

 
1,015
 
344

1,359
 
 
784

784
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchased Loans (including acquisitions)
$
98,741

 
$199,552
 
$
11,675

 
$211,227
 
$
46,831

 
$46,831
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Loan Fee and Discount Accretion
$
7,635

 
$19,910
 
$
7,938

 
$27,848
 
$
7,721

 
$7,721
 

1
Washington Federal, Inc.
Fact Sheet
December 31, 2014
($ in Thousands)

 
 6/14 QTR
 6/14 YTD
 
 9/14 QTR
 9/14 YTD
 
 12/14 QTR
 12/14 YTD
 
Repayments
 
 
 
 
 
 
 
 
 
Loans
$
454,107

$
1,331,318
 
 
$
495,997


$
1,827,315

 
$
516,926

 
$
516,926

 
MBS
92,610

234,412
 
 
118,006


352,418

 
101,494

 
101,494

 
 
 
 
 
 
 
 
 
 
 
 
MBS Premium Amortization
$
2,367

$
6,013
 
 
$
2,756


$
8,769

 
$
2,397

 
$
2,397

 
 
 
 
 
 
 
 
 
 
 
 
Efficiency
 
 
 
 
 
 
 
 
 
 
Operating Expenses/Average Assets
1.47
%
1.41
%
 
1.47
%
1.43
%
 
1.46
%
 
1.46

 
Efficiency Ratio
47.86

46.31
 
 
48.05

46.76
 
 
49.83

 
49.83

 
Amortization of Intangibles
$
1,052

$
2,601
 
 
$
1,074

$
3,675
 
 
$
1,024

 
$
1,024

 
 
 
 
 
 
 
 
 
 
 
 
 
 
EOP Numbers
 
 
 
 
 
 
 
 
 
 
Shares Issued and Outstanding
100,296,268

 
 
 
98,404,705

 
 
 
97,556,077

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share repurchase information
 
 
 
 
 
 
 
 
 
 
Remaining shares auth. for repurchase
6,924,634

 
6,924,634

 
5,042,434

 
5,042,434

 
3,926,287

 
3,926,287

 
Shares repurchased
1,500,000

 
2,948,200

 
1,882,200

 
4,830,400

 
1,116,147

 
1,116,147

 
Average share repurchase price
$
21.64

 
$
21.79

 
$
21.28

 
$
21.59

 
$
21.79

 
$
21.79

 
 
 
 
 
 
 
 
 
 
 
 
 
 

2
Washington Federal, Inc.
Fact Sheet
December 31, 2014
($ in Thousands)

Tangible Common Book Value
 6/14 QTR
 
 
 
 9/14 QTR
 
 
 
 12/14 QTR
 
 
$ Amount
$
1,686,652

 
 
 
$
1,673,974

 
 
 
$
1,679,454

 
 
Per Share
16.82

 
 
 
17.01

 
 
 
17.22

 
 
 
 
 
 
 
 
 
 
 
 
 
 
# of Employees
1,948

 
 
 
1,909

 
 
 
1,862

 
 
Tax Rate - Going Forward
35.75
%
 
 
 
35.75
%
 
 
 
35.75
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
     Agency MBS
$
1,771,369

 
 
 
$
1,683,425

 
 
 
$
1,588,647

 
 
     Other
1,331,652

 
 
 
1,366,017

 
 
 
1,306,409

 
 
 
$
3,103,021

 
 
 
$
3,049,442

 
 
 
$
2,895,056

 
 
Held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
     Agency MBS
$
1,583,853

 
 
 
$
1,548,265

 
 
 
$
1,516,219

 
 
     Other
—

 
 
 
—

 
 
 
—

 
 
 
$
1,583,853

 
 
 
$
1,548,265

 
 
 
$
1,516,219

 
 
 
 
 
 
 
 
 
 
 
 
 
 

3
Washington Federal, Inc.
Fact Sheet
December 31, 2014
($ in Thousands)

 
 AS OF 6/30/14
 
 AS OF 9/30/14
 
 AS OF 12/31/14
Gross Loan Portfolio by Category *
 AMOUNT
 
 %
 
 AMOUNT
 
 %
 
 AMOUNT
 
 %
     Single-Family Residential
$
5,479,111

 
64.9%
 
$
5,572,244

 
64.3%
 
$
5,619,697

 
63.9%
     Construction - Speculative
126,926

 
1.5
 
140,060

 
1.6
 
152,450

 
1.7
     Construction - Custom
372,789

 
4.4
 
385,824

 
4.5
 
377,561

 
4.3
     Land - Acquisition & Development
91,058

 
1.1
 
80,359

 
0.9
 
86,405

 
1.0
     Land - Consumer Lot Loans
114,573

 
1.4
 
111,130

 
1.3
 
106,987

 
1.2
     Multi-Family
896,799

 
10.6
 
920,285

 
10.6
 
980,706

 
11.2
     Commercial Real Estate
693,421

 
8.2
 
752,957

 
8.7
 
749,855

 
8.5
     Commercial & Industrial
398,181

 
4.7
 
434,088

 
5.0
 
453,417

 
5.2
     HELOC
136,304

 
1.6
 
134,455

 
1.6
 
134,998

 
1.5
     Consumer
138,547

 
1.6
 
138,315

 
1.6
 
131,352

 
1.5
 
8,447,709

 
100.0%
 
8,669,717

 
100.0%
 
8,793,428

 
100.0%
     Less:
 
 
 
 
 
 
 
 
 
 
 
        ALL
114,150

 
 
 
112,347

 
 
 
108,700

 
 
        Loans in Process
303,084

 
 
 
346,172

 
 
 
370,655

 
 
        Discount on Acquired Loans
28,480

 
 
 
25,391

 
 
 
22,535

 
 
        Deferred Net Origination Fees
36,041

 
 
 
37,485

 
 
 
37,621

 
 
        Sub-Total
481,755

 
 
 
521,395

 
 
 
539,511

 
 
 
$
7,965,954

 
 
 
$
8,148,322

 
 
 
$
8,253,917

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Loan Portfolio by Category *
 AMOUNT
 
 %
 
 AMOUNT
 
 %
 
 AMOUNT
 
 %
     Single-Family Residential
$
5,392,794

 
67.7%
 
$
5,481,766

 
67.3%
 
$
5,534,420

 
67.1%
     Construction - Speculative
78,359

 
1.0
 
79,687

 
1.0
 
89,843

 
1.1
     Construction - Custom
198,207

 
2.5
 
188,735

 
2.3
 
189,248

 
2.3
     Land - Acquisition & Development
67,359

 
0.8
 
64,367

 
0.8
 
65,507

 
0.8
     Land - Consumer Lot Loans
110,894

 
1.4
 
107,291

 
1.3
 
103,148

 
1.2
     Multi-Family
863,747

 
10.8
 
886,676

 
10.9
 
900,292

 
10.9
     Commercial Real Estate
619,228

 
7.8
 
664,336

 
8.2
 
689,672

 
8.4
     Commercial & Industrial
369,763

 
4.6
 
410,285

 
5.0
 
421,613

 
5.1
     HELOC
132,766

 
1.7
 
131,153

 
1.6
 
132,188

 
1.6
     Consumer
132,838

 
1.7
 
134,027

 
1.6
 
127,986

 
1.6
 
$
7,965,954

 
100.0%
 
$
8,148,322

 
100.0%
 
$
8,253,917

 
100.0%
* Excludes covered loans
 
 
 
 
 
 
 
 
 
 
 

4
Washington Federal, Inc.
Fact Sheet
December 31, 2014
($ in Thousands)

 
 AS OF 6/30/14
 
 AS OF 9/30/14
 
 AS OF 12/31/14
Deposits by State
 AMOUNT
 
%
 
#
 
 AMOUNT
 
%
 
#
 
 AMOUNT
 
%
 
#
     WA
$
4,930,348

 
45.8
%
 
82

 
$
4,978,005

 
46.4
%
 
81

 
$
4,910,659

 
46.4
%
 
81

     ID
817,259

 
7.6

 
28

 
810,841

 
7.6

 
27

 
796,119

 
7.5

 
26

     OR
2,002,383

 
18.6

 
49

 
2,008,862

 
18.7

 
49

 
1,987,015

 
18.8

 
49

     UT
314,247

 
2.9

 
10

 
309,062

 
2.9

 
10

 
303,516

 
2.9

 
10

     NV
377,464

 
3.5

 
14

 
362,887

 
3.4

 
14

 
357,952

 
3.4

 
11

     TX
105,292

 
1.0

 
5

 
92,260

 
0.9

 
5

 
87,937

 
0.8

 
5

     AZ
1,316,324

 
12.2

 
36

 
1,275,153

 
11.9

 
36

 
1,260,182

 
11.9

 
36

     NM
902,363

 
8.4

 
29

 
879,858

 
8.2

 
29

 
875,473

 
8.3

 
29

     Total
$
10,765,680

 
100.0
%
 
253

 
$
10,716,928

 
100.0
%
 
251

 
$
10,578,853

 
100.0
%
 
247

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits by Type
 AMOUNT
 
%
 
 
 
 AMOUNT
 
%
 
 
 
 AMOUNT
 
%
 
 
Checking (noninterest)
$
818,273

 
7.6
%
 
 
 
$
883,601

 
8.2
%
 
 
 
$
870,981

 
8.2
%
 
 
NOW (interest)
1,378,379

 
12.8

 
 
 
1,447,569

 
13.5

 
 
 
1,436,922

 
13.6

 
 
Savings (passbook/stmt)
620,414

 
5.8

 
 
 
622,546

 
5.8

 
 
 
640,731

 
6.1

 
 
Money Market
2,498,714

 
23.2

 
 
 
2,536,971

 
23.7

 
 
 
2,515,564

 
23.8

 
 
CD's
5,449,900

 
50.6

 
 
 
5,226,241

 
48.8

 
 
 
5,114,655

 
48.3

 
 
Total
$
10,765,680

 
100.0
%
 
 
 
$
10,716,928

 
100.0
%
 
 
 
$
10,578,853

 
100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits greater than $250,000 - EOP
$
1,776,322

 
 
 
 
 
$
1,887,216

 
 
 
 
 
$
1,838,690

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

5
Washington Federal, Inc.
Fact Sheet
December 31, 2014
($ in Thousands)

 
 AS OF 6/30/14
 
 AS OF 9/30/14
 
 AS OF 12/31/14
Non-Performing Assets
 AMOUNT
 
%
 
 AMOUNT
 
%
 
 AMOUNT
 
%
Non-accrual loans:
 
 
 
 
 
 
 
 
 
 
 
     Single-Family Residential
$
78,317

 
83.1%
 
$
74,067

 
84.7%
 
$
74,415

 
75.7%
     Construction - Speculative
1,966

 
2.1
 
1,477

 
1.7
 
1,329

 
1.4
     Construction - Custom
143

 
0.2
 
—

 
—
 
—

 
—
     Land - Acquisition & Development
2,295

 
2.4
 
811

 
0.9
 
—

 
—
     Land - Consumer Lot Loans
1,879

 
2.0
 
2,637

 
3.0
 
2,260

 
2.3
     Multi-Family
2,103

 
2.2
 
1,742

 
2.0
 
1,019

 
1.0
     Commercial Real Estate
5,442

 
5.8
 
5,106

 
5.8
 
15,970

 
16.2
     Commercial & Industrial
516

 
0.5
 
7

 
—
 
673

 
0.7
     HELOC
970

 
1.0
 
795

 
0.9
 
1,454

 
1.5
     Consumer
595

 
0.6
 
789

 
0.9
 
1,233

 
1.3
        Total non-accrual loans
94,226

 
100.0%
 
87,431

 
100.0%
 
98,353

 
100.0%
Total REO
57,352

 
 
 
55,072

 
 
 
61,970

 
 
Total REHI
10,779

 
 
 
4,808

 
 
 
3,994

 
 
Total non-performing assets
$
162,357

 
 
 
$
147,311

 
 
 
$
164,317

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total non-performing assets as a
 
 
 
 
 
 
 
 
 
 
 
     % of total assets
1.10
%
 
 
 
1.00
%
 
 
 
1.13
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 

6
Washington Federal, Inc.
Fact Sheet
December 31, 2014
($ in Thousands)

 
6/14 QTR
 
9/14 QTR
 
12/14 QTR
 
 AMOUNT
 
%
 
 AMOUNT
 
%
 
 AMOUNT
 
%
Restructured loans:
 
 
 
 
 
 
 
 
 
 
 
     Single-Family Residential
$
333,814

 
86.1
 
$
323,732

 
86.4
 
$
304,784

 
86.6
     Construction - Speculative
8,554

 
2.2
 
7,360

 
2.0
 
6,651

 
1.9
     Construction - Custom
1,196

 
0.3
 
—

 
—
 
—

 
—
     Land - Acquisition & Development
5,092

 
1.3
 
4,737

 
1.3
 
4,238

 
1.2
     Land - Consumer Lot Loans
12,922

 
3.3
 
13,002

 
3.5
 
12,528

 
3.6
     Multi-Family
5,266

 
1.4
 
5,243

 
1.4
 
4,141

 
1.2
     Commercial Real Estate
19,292

 
5.0
 
19,140

 
5.1
 
18,028

 
5.1
     Commercial & Industrial
23

 
—
 
—

 
—
 
—

 
—
     HELOC
1,198

 
0.3
 
1,486

 
0.4
 
1,486

 
0.4
     Consumer
236

 
0.1
 
43

 
—
 
126

 
—
        Total restructured loans (2)
$
387,593

 
100.0%
 
$
374,743

 
100.0%
 
$
351,982

 
100.0%
 
 
 
 
 
 
 
 
 
 
 
 
(2) Restructured loans were as follows:
 
 
 
 
 
 
 
 
 
 
 
     Performing
$
361,918

 
93.4%
 
$
350,653

 
93.6%
 
$
333,854

 
94.8%
     Non-performing*
25,675

 
6.6
 
24,090

 
6.4
 
18,128

 
5.2
     * Included in "Total non-accrual loans" above
$
387,593

 
100.0%
 
$
374,743

 
100.0%
 
$
351,982

 
100.0%
 
 
 
 
 
 
 
 
 
 
 
 

7
Washington Federal, Inc.
Fact Sheet
December 31, 2014
($ in Thousands)

 
6/14 QTR
 
9/14 QTR
 
12/14 QTR
 
AMOUNT
 
CO %**
 
AMOUNT
 
CO %**
 
AMOUNT
 
CO %**
Net Charge-offs by Category
 
 
 
 
 
 
 
 
 
 
 
     Single-Family Residential
$
(2,186
)
 
(0.16)%
 
$
(833
)
 
(0.06)%
 
$
(859
)
 
(0.06)%
     Construction - Speculative
(2
)
 
(0.01)
 
11

 
0.03
 
388

 
1.02
     Construction - Custom
—

 
—
 
—

 
—
 
—

 
—
     Land - Acquisition & Development
(85
)
 
(0.37)
 
(2,248
)
 
(11.19)
 
37

 
0.17
     Land - Consumer Lot Loans
86

 
0.30
 
99

 
0.36
 
35

 
0.13
     Multi-Family
—

 
—
 
—

 
—
 
(220
)
 
(0.09)
     Commercial Real Estate
8

 
—
 
(9
)
 
—
 
(1
)
 
—
     Commercial & Industrial
33

 
0.03
 
(1,670
)
 
(1.54)
 
(34
)
 
(0.03)
     HELOC
18

 
0.05
 
30

 
0.09
 
—

 
—
     Consumer
(91
)
 
(0.26)
 
13

 
0.04
 
(187
)
 
(0.57)
        Total net charge-offs
$
(2,219
)
 
(0.11)%
 
$
(4,607
)
 
(0.21)%
 
$
(841
)
 
(0.04)%
     ** Annualized Net Charge-offs divided by Gross Balance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SOP 03-3
 
 
 
 
 
 
 
 
 
 
 
Accretable Yield
$
104,239

 
 
 
$
97,221

 
 
 
$
89,743

 
 
Non-Accretable Yield
179,694

 
 
 
179,343

 
 
 
179,343

 
 
Total Contractual Payments
$
283,933

 
 
 
$
276,564

 
 
 
$
269,086

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Risk
 
 
 
 
 
 
 
 
 
 
 
One Year GAP
 
 
(10.6
)%
 
 
 
(11.3
)%
 
 
 
(11.0
)%
NPV post 200 bps shock*
 
 
16.32
 %
 
 
 
15.68
 %
 
 
 
16.56
 %
Change in NII after 200 bps shock*
 
 
(0.5
)%
 
 
 
(1.5
)%
 
 
 
(1.4
)%
* Assumes no balance sheet management
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CD's Repricing
Amount
 
Rate
 
Amount
 
Rate
 
Amount
 
Rate
Within 3 months
$
986,727

 
0.51
 %
 
$
1,286,768

 
0.60
 %
 
$
1,207,396

 
0.63
 %
From 4 to 6 months
1,233,943

 
0.62

 
856,397

 
0.60
 %
 
856,224

 
0.61
 %
From 7 to 9 months
520,909

 
0.82

 
669,532

 
0.88
 %
 
500,584

 
0.63
 %
From 10 to 12 months
637,091

 
0.92

 
514,198

 
0.81
 %
 
539,262

 
0.68
 %

8
Washington Federal, Inc.
Fact Sheet
December 31, 2014
($ in Thousands)

Historical CPR Rates ***
 
 
 
 
 
 
 
 
 
WAFD
 
WAFD
 
 
 
 
 
 
 
 
Average for Quarter Ended:
SFR Mortgages
 
GSE MBS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*** 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, 2014
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, 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
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Single-Family Residential
 
28,886

 
193

 
$
5,569,794

 
99

 
52

 
295

 
446

 
1.54
%
 
$
90,538

 
1.63
%
     Construction - Speculative
 
476

 
183

 
87,035

 
—

 
—

 
—

 
—

 
—
%
 
—

 
—
%
     Construction - Custom
 
811

 
237

 
192,098

 
4

 
—

 
—

 
4

 
0.49
%
 
836

 
0.44
%
     Land - Acquisition & Development
 
129

 
547

 
70,552

 
1

 
—

 
—

 
1

 
0.78
%
 
155

 
0.22
%
     Land - Consumer Lot Loans
 
1,320

 
84

 
111,091

 
13

 
5

 
21

 
39

 
2.95
%
 
4,388

 
3.95
%
     Multi-Family
 
989

 
905

 
895,195

 
1

 
1

 
3

 
5

 
0.51
%
 
824

 
0.09
%
     Commercial Real Estate
 
896

 
771

 
690,881

 
3

 
3

 
9

 
15

 
1.67
%
 
18,811

 
2.72
%
     Commercial & Industrial
 
1,049

 
414

 
434,032

 
4

 
3

 
2

 
9

 
0.86
%
 
1,485

 
0.34
%
     HELOC
 
2,043

 
66

 
134,456

 
5

 
3

 
8

 
16

 
0.78
%
 
1,497

 
1.11
%
     Consumer
 
6,970

 
20

 
138,411

 
131

 
59

 
64

 
254

 
3.64
%
 
1,731

 
1.25
%
 
 
43,569

 
191

 
$
8,323,545

 
261

 
126

 
402

 
789

 
1.81
%
 
$
120,265

 
1.44
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Single-Family Residential
 
28,799

 
190

 
$
5,476,709

 
121

 
77

 
292

 
490

 
1.70
%
 
$
97,150

 
1.77
%
     Construction - Speculative
 
437

 
195

 
85,412

 
1

 
—

 
2

 
3

 
0.69
%
 
777

 
0.91
%
     Construction - Custom
 
797

 
253

 
201,475

 
1

 
—

 
1

 
2

 
0.25
%
 
187

 
0.09
%
     Land - Acquisition & Development
 
125

 
600

 
74,979

 
1

 
—

 
4

 
5

 
4.00
%
 
2,464

 
3.29
%
     Land - Consumer Lot Loans
 
1,365

 
84

 
114,511

 
10

 
1

 
17

 
28

 
2.05
%
 
3,269

 
2.85
%
     Multi-Family
 
993

 
878

 
872,026

 
5

 
1

 
3

 
9

 
0.91
%
 
3,450

 
0.40
%
     Commercial Real Estate
 
918

 
704

 
646,396

 
1

 
—

 
9

 
10

 
1.09
%
 
3,056

 
0.47
%
     Commercial & Industrial
 
1,082

 
368

 
398,171

 
6

 
—

 
3

 
9

 
0.83
%
 
743

 
0.19
%
     HELOC
 
2,003

 
68

 
136,304

 
4

 
3

 
8

 
15

 
0.75
%
 
1,754

 
1.29
%
     Consumer
 
7,552

 
18

 
138,641

 
148

 
69

 
75

 
292

 
3.87
%
 
2,160

 
1.56
%
 
 
44,071

 
185

 
$
8,144,625

 
298

 
151

 
414

 
863

 
1.96
%
 
$
115,008

 
1.41
%

10
Washington Federal, Inc.
Fact Sheet
December 31, 2014
Average Balance Sheet
($ in Thousands)

 
Quarters Ended
 
June 30, 2014
 
September 30, 2014
 
December 31, 2014
 
Average
 
 
 
Average
 
Average
 
 
 
Average
 
Average
 
 
 
Average
 
Balance
 
Interest
 
Rate
 
Balance
 
Interest
 
Rate
 
Balance
 
Interest
 
Rate
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans and covered loans
$
8,040,818

 
$
108,089

 
5.39
%
 
$
8,208,948

 
$
109,200

 
5.28
%
 
$
8,367,285

 
$
108,293

 
5.13
%
Mortgage-backed securities
3,341,969

 
20,507

 
2.46

 
3,306,826

 
19,313

 
2.32

 
3,191,365

 
19,175

 
2.38

Cash & Investments
2,011,154

 
6,003

 
1.20

 
2,088,492

 
6,196

 
1.18

 
1,876,824

 
5,415

 
1.14

FHLB & FRB Stock
166,522

 
412

 
0.99

 
162,282

 
368

 
0.90

 
158,194

 
401

 
1.01

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total interest-earning assets
13,560,464

 
135,011

 
3.99
%
 
13,766,548

 
135,077

 
3.89
%
 
13,593,668

 
133,284

 
3.89
%
Other assets
988,917

 
 
 
 
 
1,032,575

 
 
 
 
 
1,062,770

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
14,549,381

 
 
 
 
 
$
14,799,123

 
 
 
 
 
$
14,656,438

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer accounts
10,608,318

 
14,239

 
0.54
%
 
10,801,665

 
14,007

 
0.51
%
 
10,680,974

 
13,445

 
0.5
%
FHLB advances
1,930,000

 
17,493

 
3.64

 
1,930,000

 
17,676

 
3.63

 
1,920,217

 
17,656

 
3.65

Other borrowings
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total interest-bearing liabilities
12,538,318

 
31,732

 
1.02
%
 
12,731,665

 
31,683

 
0.99
%
 
12,601,191

 
31,101

 
0.98
%
Other liabilities
26,278

 
 
 
 
 
86,969

 
 
 
 
 
95,026

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
12,564,596

 
 
 
 
 
12,818,634

 
 
 
 
 
12,696,217

 
 
 
 
Stockholders’ equity
1,984,785

 
 
 
 
 
1,980,489

 
 
 
 
 
1,960,221

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities and equity
$
14,549,381

 
 
 
 
 
$
14,799,123

 
 
 
 
 
$
14,656,438

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
 
 
$
103,279

 
 
 
 
 
$
103,394

 
 
 
 
 
$
102,183

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest margin (1)
 
 
 
 
3.05
%
 
 
 
 
 
3.00
%
 
 
 
 
 
3.01
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1
)
Annualized net interest income divided by average interest-earning assets
 
 
 
 
 
 
 
 
 
 


11
 GRAPHIC 4 exhibit991wafdlogo1a01.gif begin 644 exhibit991wafdlogo1a01.gif M1TE&.#EAS`/3`/<```````````$!`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`P,'!P<+"PL/#P\3$Q,7%Q<;&QL?'Q\C(R,G)RWM_?W^'AX>+BXN/CX^3DY.7EY>;FYN?GY^CHZ.GIZ>KJZNOKZ^SL M[.WM[>[N[N_O[_#P\/'Q\?+R\O/S\_3T]/7U]?;V]O?W]_CX^/GY^?KZ^OO[ M^_S\_/W]_?[^_O_______R'Y!`$`````+`````#,`],`0`C^``$('$BPH,&# M"!,J7,BPH<.'$"-*G$BQHL6+&#-JW,BQH\>/($.*'$FRI,F3*%.J7.F1$LN7 M,&/*G$FSILV;.'/JW,FSI\^?0"N.&$J4:-"C"8LJ7:H4)].A2*-*G4JUZLBG M6(U:W0HQ:]:@7J%F##M"XU>N(,/:)%L6K=NW<`VRG4LW+D.R=O,F]8H4K]"Z M?YGJY:AVL&&3A0]S38QQJ>*"?A_G90R6W\-'/IRJTC%!S<^&KOFZ'^?P=^^)5Y]\\QT(E'L)&AB@A=J)5*!` M@(6T88,5W@BB"L*V"*+#A*6XG8U_O?@C->]Z&*, ML]T((I!#,CC3ARH:.1UY/F*X8I-!\J.&//!)X)8U%G;=ED5F"62.6 M8^(HI)E?1DFDB6G"UB9H4G8H9ID[AEE-K))I1'%;8FFM(!BN*; M/4[IX8U(.JEH>H@FZ2>ACVH9VT:-'FKHGX.J62FGG_(9:72=>J0CJ*'>N6E: M9U(Z::+^KTI*9U2A650KE:FJ6JJNJEFZ*Z^SRMHEJ;FZ&JRP>Y*9+$N9.EHL ML,=Z&JNST7JY*IRG_NGKFW+6^2R(N`YK:[;0BAOAJ)_%E*>HHQK+6+?2NK:M MO-3J%F^5]=X**[YS]ID3#"_WD+\,'7P:KHP MLKU*IO'&'&-[+:K5=BSRR"27;/+)**=,4[I6MJKRRS#'+//,--?<<<(VYZSS MSCSW[///0`NP1SVF!O??;;<,>M4=IN,T3WW7CGK9#^WA71O=#="0$. MD>![1WU0WHAC?;C?"!$^.-\")?[T29)7;CC:;`>>N>:6(_[WYHN'+??H98LN M$>BGF_YYW:DKWKCJ$:%N$.PBR=Z0[0_A3I#N#O'>$NV/L[[ZY9@+7SCQ%OE^ M//*D-U\T\+=#G[OQ=DM?$/.O=ZZ]VLLG/K?UV6]O.>?8%U]^2,H/[WKHXE<> M_?G3M^^^\_0/#3[YD_=-?>_0P\]^_CSQWOO\%SX`FB1]U=L?^NZG/JXUT($L M86#WUE>_"M)/@K/#8`$A2!'5$7"#%/0)`Q%X/1)^3X/_"R%(3)C"KPW0@)13 M8.Q0:,$:5HV&D]VB5.$W$9>6JV,T`N:AF\3%G_L+99.R51HGQA%P1"YFP M;&9(A?V*:I4<72:EQ3%(EG&3S*HD(ULF29&!\I`8R]@G"1DS3Y+QE*$4DGT: MU:1$XC&2T*&E+9_ER'[MG, M:\I(DM_^G*$Y[$M*@MZ_E1AF736@+="37+F9A- M5?.D%=5F0ST:TH0JE%CNC&=.C:G(@(:SHP,=ZD^-&M21:@B6$ITH2UNZKXBB MY)30Q"E5->J67JKTDKI$5#B%*E6>,A6EP00J//DYUH[H4Z29>FM,2=G6LZ+5 MKJ4D%U*'(]*E3E6M5L52379*T;4F\TDF!5E6%2JA8285H<7T*']@2J^2%A67 M!KWL5!?*5VEN]I>8/:9E`7G8&#F6L5M%I6HI.U;"KO:UL(W^K6P+6U:Z-G6V MN,VM;O58VM3N]K?`#:YPATOI:-[?2 M-1IU6_?!ZWK7C,O%G^RV)][Y33"\7C3O=,4'0ODY4;T8(2\7N[L1U,GWA)WK MH0]SV$3^:>^[`#9B!Z6XW_*Z<,!93&\2'[C@#"9X@N]5(18?;.`Z,OC`W*7P M[[[87@Q/6,(=CC"(SR?=[`88MSHT\7Q!C$3ZMMC#55RO_Y[[D1)O%P#@4_&* M6/XBSY.WXV#?.,3HS+%VZ6A\NC[1/A^.+DSY/"+FTSC'3ZRCXU\9"DK&,98YG'^B-,;YBL'<(1*+G*;T9QF->-7PT\&!G47(ZWG.T.QSO<5-)3S'.KDG7K*E/YRJZT\ZPZCU]:W/K23+USJ M3OOZU\`.MK"'3>QB&_O8R$ZVLI>-8V8[^]G0CG9)!B;M:L/$IV/$MB5?BM>> M:M8P7HVEMJVMKM[NM3+47F6Z9>)'O/KVL3<=&51=.FYRB]O<]9;*N6LX[VG# M,M[>#BS*^NVFO@J-X&.#:EVKLF\+(GS;]\ MF3`/>$6#;J.98\IA;EWLRLGJ\YB;];,1!ZF^.G>A\ MG[MHD([9KM=6L1.WK.$/;W;OE&T9OWW4%N2KS@$V\ M3$MT=>(WG;:;1^^M_/^X9+_^_1M5CJWI]_(.?\R*5M/%9,GWY ME%F5Q55W%'G@5VX!XG7H(5!RIW[.YWKTU'S8QGI4)X&F!TJ>I'_N!W\=J"8` MR'7PQG];]76)1W`/R'L19'\XJ%-1 METX1*(<%)WT4>"U7R(5;2!)+5X3^F4=_:UA_'MA_@1B$@V5Y7Z5V@EAZ>256 M0)AZ;]B'=8A^G05VF8A/H;A_A6B(A_A9B8B*+M=Q825^Y'2&C;AQ3">*U319 MG+1X7#B(>IAVA#2%>V>&YB=5OTA,A.A7*F@J=CA_8P)))KB$E>>+GCB+R6*+ M24A[<=ARBR5S:L%9_G)]+BB"Q!AOU"B-]!%V.#B,?>)W%`..D^B%GR@E:=@< M?@AW[DB.PTA4Z4B/!W**,O,E6`AUOV6.'HB,R4@__$AQWZ%\!;D2_EB,UT:* M]G8V,0B+$5F1%FERGK>(%[F1',E&*Z>1'1F2(JEN`CF2)GF2P[52*+F2+-F2 M+OF2,!G^DS(YDS2Y,9JV8;%6DSIY0#FYDRJQ:CC97SXYE#$AE$3Y$V.F:Y)V ME$R):4E)7$\)%U%)1&[6E%8YDU/I%EEY85?9E4.YE5P!EA7FE6090]]#E549 MEH;68VOI7YRFE&EI:@\FEGY68;W6$6WI:KUVD[QVEV497;4F:H9#9564:[1F ME+#V7ZK6/H69:K@&E.8C9G&9:&Y#F(7V:;)V.;M6:9CYEV>#9*/6F&CIET0T MFJ1&FOR592ZF8WR9F*CIFDLIF+&)EX9YF+/)F6K6FK!)0?"CFS\F9YY9,Z#Y MEH=IFOK#8MFU9+&F:+])G"8F9*P)G,:YF)/9G,P):FZ9F[S^.9S7&9QTE)-$ MMIIQAIQ;1D!TB9US]IIUN6=Z29S4>9M?-IWOB9I#5I[NZ9W""9[V:6?6R9\? M-&:^4YO'R6D`RD.^*6MM9OAV5WUV9.IV9WXJ3/V MB9APF9X;*FE)>9ZX"9\&QFHAJJ$*FJ(D.J%:HY\0NJ#JZ9H0EJ'5F:"!R9ZD M]I-%UJ(TVI[D&:.7::+KZ:)D5*$W>J&H1F>J*9TEX:$Z:J-$*I=)&J5.&:/W MF;RF1(/JJ!>6CHP MNJ)8*CKNJ:7Q9:&)&:>G*:?1*:3^'\JFK\FG5*IE3EJG3`.F,ZJD;MJCB!JA M'[:D,TI=')I"IWFHH:E<>-JDS\EHA!JASCF7:LJH.]&9I+J9,BJ@HLF68B:E MCKFI4+JJ[@6B\Y.C<)EKJOJ8KU:BD&FILPJL88JJRU:K?=JI0]JFLLF30/:= MDYH3R'IHQEJMUGJMV)JMVKJMW-JMWOJMX!JNXCJNY%JNYGJNZ)JNZKJN+<&N M[OJNCP:O\CJO(;F0]+I'_ZA&^0IMX1:']YIQ@,=O`:N0[,@E\0B2[#:/#$F1 M7MF,1#A\D@A&_?IY,DA1L7B/<3&Q5W60#>NPD`BQ]2A&&KN*XUA8%\NQ4X&P MHR6N'OO^L3HQL@ZGL`DKL\K8A@S+K24B+2=@HBU.7LV8CM$-KLT%HM'8AM8P8M5#+-!K'<[2"M44#MHBHA#L; M3Q6WM*SE/&*K,UT+D8NQM@>WM47'?`-[+V=KM:@$MW<;C8G227H+-'_[5;OX MB!\X2&@[1X$[,XF;LHO+,XW;SB7>Y6[&_NAB'S+4B"'M[[$+`9+L5X[MYV+D/^7=*M+(&0BNK.;A5_[ MBJ`;+Q!(A`4[?UTHBX!'>`5(M6MGC\$;CJZH=#!;NH5+NQ'^J[/:\9'+JWZ2 MI;JUQ[O5>XT.B!FQ5WS=&+G96(7%&X*XV!3P2+8EFX+=&[+SVR7O:XH(V('- MB[YOYXV6"!CKII+@6[8OT7JG8<`"!UKJ>+TZF(_MNWX]Z[-?=[SS*+_X*,"M MNX?1TG8+_+T/[%JE%8+IBWQ/&RFS!(T)W)#4)WJ4>%C:."D17(Q[M[P6/,(C MW,`NC'8U%RPSC,`Y+'-5J(P%VU@8RX8E3(?+8H&ATHF8B"XMW$U%7(:):+HK MW(*,^WRYQ,)+[$Y*/+[R M!+QTF[]SQ8P7^+D5Z,.DQTQ`B\/^ZYM]95RSYYA\)*R*:'S&:AR+.-LFWG0B MX`3'_]O'[J>+6EB*A4RZAWR,:)C)F_S)!*G`4CS(NI?&1@S*IRP@B8S*I*RY MQJHQ^A&M8W*+%6!A]3=>*=YRS?!A8XYQWY3QZY[S! MM>S,N#PAYQ?-/N*Z66MVP-A6G6?'=>7&UTS)Z@4S!O6O)F,S+S6R,OMS.!)V*&9W*H:S!5M6,D)N& M[6A/P9S^P=O+T3]1CJ#7@/9\OB\\@=SLLP)]T07MNRP]SR5]T!]-S;@;O01% MTK=[S"*,?3IMO26;T^@6>J5B&94XS,,;S@"-S0P-BDTUU9>638OQJ]UD`MV4G=COA8UQO-UR"MT.&7 MNWCMA$(MRPW-V>J8TG[MSN8!A<;Q@GB,M/1[T\D^*\ MV^N<4EW=UPMK=&(\V*-[@-BAVD_(VDY\N,-=U3Z7S9)KRQW^/)'([<^Y?8E+ MFW)_O-=`;,RR&]V1#=RGC=J%0M7E'2O@#-A?'=ZF/=[KO=FU';Z3G==E3=KP MW=GJ#=L.W8L#>+KOW=[W#>!K_-HB/-O2K M_=_,*]])6]_%.\DQ7<>AG<]YW+N8W=U<;=_S M#=;@;"T[=YD=R0$;M:5?-WQQ\^-O<^:B,]-Y>$$W,4V7;YT M3.$ZWH11_-=1G<4@;M`7GG/0K;^%'>1"CKUF/2\V/N,!WN`.GN:53;(K_M1( M9='"7-RXF'7M*^0D7L6DB%4]7.7^:R[$-HW?PCVP'BM9^NCC"R[;"G[H=L[` MZKLO8PYW+Y[H'XSA)UVQ1WV_%VSI9A[?'FSAY"B^Q,OG@!S7(W[#\0N.F%[J M([+4T-OIE2[-*/WJ"<+J_@NTHLSIKJZ/`9SJLG[J0RSJ(1WJ&I@PW!CKEZY, M2\WKOAYWYC;%D,SKM;[J$UV_8[SE8'[LHU[DT$[M@ZAY`[/MO@WJJ0JQ:]Y\?F4MOI8KJJJ)/8YE?:J$_GP5:/F1/K)=?^5DOFUASJ[#_ M^HKIJUYOE[NVH:,Y^[L*1*G?H50?_,5/_!`$_+MY_)O/]$#^QJ*.QIA]:3M" M]/J-^:NV*OV\?V#,K_O:_Z30K_G97_MDSZ(HFOS6W_RE#_6I)J!JOZJ_CZ*% M6IJRNJRSN?O$GYEW3ZN@8_I=RFL``4#@0((%!5)"F%#A0H0$&1ITR#`AQ((2 M)U+$F%'C1HX=/7X$&5+D2)(E39Y$F5+E2I8`+(ZT>/%CS(8:8YY\://ES)T; M>W;,R?$FR:%`BPH]ZI%FRXPT*85TRO.GSZDZEU(,6C&IU:Q,O7X%&U;L6+)E MS9[%*A%F5:E=TZHENI`J7)!;#;+E6A,I7:AX\RHTZG>N6[!VE0K6RO>PXJ:, M(1(V_%WA MI:_7GLV;^%CNC;4'/^\Y_7/UZ;L_71Y?_GSZ]3.S'UC>?._7\-M:EZZVZ@#, M3S^3#%1-P/WX"Y#!OMQ#"4'H'&QP/)'*PZ]"[[ZCT#X//P0Q1!$3M+"U#G\K M<<$4V]M00P)-7+'`\&S#3\()8\PNP\045,G&'7&4D4<63PP22-"('-"_$9=D MLDDG,=/11Q);?$])W9)4T2D!M322PRY_Q)'+&:>D\K\O4Y*RR#+1BTY,#"&L M+WXF(,6UWE M&]EA9=5MUUJ)B06YWI49QNE9C6>FN>8!Q:.8691]`W/BG"W^&S35U MKW59YI:;==5FIY^&&E6/A9U:7)QANW?HY6R]U>B`=V9Y8XX_IK6RHKV..FVU M\_R7::NOAN]>G<'>SNU0$Z8;WZICAA7MCI'^4NN4Y=9[;<,/K[GMG\_.B7!Z M[5YZ[\?!EE)PEA".U7&?\R8;;\[1#+9CR1$GO?0F%?_\;;@UG_SG[$B56N`T M,4D5! M<]?5Z?),@#%DX0J/)KSOV@M\*%?A! MD6$*>!0\F0F%.$0B%M&(1T1B$I6X1"8VT8E/A&(4I3A%*E;1BE?$8A:UN$4N 9=M&+7P1C&,4X1C*6T8QG1&,:U7B6@```.S\_ ` end