x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Washington | 91-1661606 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
425 Pike Street Seattle, Washington 98101 | ||
(Address of principal executive offices and zip code) | ||
(206) 624-7930 | ||
(Registrant’s telephone number, including area code) |
Large accelerated filer | x | Accelerated filer | o |
Non-accelerated filer | o | Smaller reporting company | o |
Title of class: | at January 31, 2015 |
Common stock, $1.00 par value | 96,383,502 |
The Consolidated Financial Statements of Washington Federal, Inc. and Subsidiaries filed as a part of the report are as follows: | ||||
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 | |||||
Bank owned life insurance | 100,216 | — | |||||
Intangible assets, net | 301,885 | 302,909 | |||||
Federal and state income tax assets, net | — | 16,515 | |||||
Other assets | 157,580 | 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 taxes, 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 133,322,909 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 | 706,149 | |||||
1,981,339 | 1,973,283 | ||||||
$ | 14,494,756 | $ | 14,756,041 |
Three Months Ended December 31, | |||||||
2014 | 2013 | ||||||
(In thousands, except per share data) | |||||||
INTEREST INCOME | |||||||
Loans | $ | 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 | |||||
Reversal of provision for loan losses | (5,500 | ) | (4,600 | ) | |||
Net interest income after reversal of 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 | |||||
Information technology | 4,030 | 1,318 | |||||
Product delivery | 5,627 | 2,929 | |||||
Other expense | 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 | |||||
Dividends paid on common stock 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 |
Quarter Ended December 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Net income | $ | 38,407 | $ | 40,236 | ||||
Other comprehensive income (loss) net of tax: | ||||||||
Net unrealized gain (loss) on available-for-sale securities | 8,560 | (9,661 | ) | |||||
Net unrealized (loss) on long-term borrowing hedge | (4,249 | ) | — | |||||
Related tax benefit (expense) | (1,584 | ) | 3,478 | |||||
Other comprehensive income (loss) | 2,727 | (6,183 | ) | |||||
Comprehensive income | $ | 41,134 | $ | 34,053 |
Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Total | |||||||||||||
Balance at October 1, 2014 | $ | 133,323 | $ | 1,638,211 | $ | 706,149 | $ | 20,708 | $ | (525,108 | ) | $ | 1,973,283 | |||||
Net income | 38,407 | 38,407 | ||||||||||||||||
Other comprehensive income | 2,727 | 2,727 | ||||||||||||||||
Dividends on common stock | (10,159 | ) | (10,159 | ) | ||||||||||||||
Compensation expense related to common stock options | 300 | 300 | ||||||||||||||||
Proceeds from exercise of common stock options | 18 | 248 | 266 | |||||||||||||||
Restricted stock | 250 | 591 | 841 | |||||||||||||||
Treasury stock acquired | (24,326 | ) | (24,326 | ) | ||||||||||||||
Balance at December 31, 2014 | $ | 133,591 | $ | 1,639,350 | $ | 734,397 | $ | 23,435 | $ | (549,434 | ) | 1,981,339 | ||||||
Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Total | |||||||||||||
Balance at October 1, 2013 | $ | 132,573 | $ | 1,625,051 | $ | 594,450 | $ | 6,378 | $ | (420,817 | ) | $ | 1,937,635 | |||||
Net income | 40,236 | 40,236 | ||||||||||||||||
Other comprehensive loss | (6,183 | ) | (6,183 | ) | ||||||||||||||
Dividends on common stock | (10,179 | ) | (10,179 | ) | ||||||||||||||
Compensation expense related to common stock options | 300 | 300 | ||||||||||||||||
Proceeds from exercise of common stock options | 444 | 8,836 | 9,280 | |||||||||||||||
Restricted stock | 256 | 584 | 840 | |||||||||||||||
Treasury stock acquired | (18,945 | ) | (18,945 | ) | ||||||||||||||
Balance at December 31, 2013 | $ | 133,273 | $ | 1,634,771 | $ | 624,507 | $ | 195 | $ | (439,762 | ) | $ | 1,952,984 | |||||
Quarter Ended December 31, | |||||||
2014 | 2013 | ||||||
(In thousands) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 38,407 | $ | 40,236 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and Amortization | 5,299 | 3,757 | |||||
Cash received from (paid to) FDIC under loss share | (431 | ) | 1,295 | ||||
Stock option compensation expense | 300 | 300 | |||||
Reversal of provision for loan losses | (5,500 | ) | (4,600 | ) | |||
Gain on real estate held for sale | (9,606 | ) | (597 | ) | |||
Decrease (increase) in accrued interest receivable | 11,280 | (411 | ) | ||||
Decrease in federal and state income tax | 19,208 | 22,629 | |||||
Decrease (increase) in cash surrender value in bank owned life insurance | (216 | ) | — | ||||
Decrease (increase) in other assets | (14,552 | ) | 1,649 | ||||
Decrease in accrued expenses and other liabilities | (25,890 | ) | (12,768 | ) | |||
Net cash provided by operating activities | 18,299 | 51,490 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Net (loan originations) principal collections | (36,993 | ) | (68,870 | ) | |||
Loans purchased | (46,831 | ) | — | ||||
FHLB & FRB stock redemption | 3,969 | 1,376 | |||||
Available-for-sale securities purchased | (41,225 | ) | (565,080 | ) | |||
Principal payments and maturities of available-for-sale securities | 202,760 | 76,805 | |||||
Principal payments and maturities of held-to-maturity securities | 31,178 | 23,117 | |||||
Net cash received from acquisition | — | 1,280,077 | |||||
Proceeds from sales of real estate held for sale and investment | 13,496 | 14,295 | |||||
Proceeds from sales of covered REO | 4,413 | 6,098 | |||||
Purchase of bank owned life insurance | (100,000 | ) | — | ||||
Premises and equipment purchased and REO improvements | (2,019 | ) | (9,232 | ) | |||
Net cash provided by investing activities | 28,748 | 758,586 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Net decrease in customer accounts | (137,999 | ) | (1,795 | ) | |||
Proceeds from borrowings | — | 625,000 | |||||
Repayments of borrowings | (100,000 | ) | (625,000 | ) | |||
Proceeds from exercise of common stock options and related tax benefit | 266 | 9,280 | |||||
Dividends paid on common stock | (14,359 | ) | (10,179 | ) | |||
Treasury stock purchased | (24,326 | ) | (18,945 | ) | |||
Decrease in advance payments by borrowers for taxes and insurance | (9,703 | ) | (24,652 | ) | |||
Net cash used by financing activities | (286,121 | ) | (46,291 | ) | |||
Increase (decrease) in cash and cash equivalents | (239,074 | ) | 763,785 | ||||
Cash and cash equivalents at beginning of period | 781,843 | 203,563 | |||||
Cash and cash equivalents at end of period | $ | 542,769 | $ | 967,348 |
Quarter Ended December 31, | |||||||
2014 | 2013 | ||||||
(In thousands) | |||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||
Non-cash investing activities | |||||||
Non-covered real estate acquired through foreclosure | $ | 8,852 | $ | 9,956 | |||
Covered real estate acquired through foreclosure | 51 | 179 | |||||
Cash paid during the period for | |||||||
Interest | 34,653 | 33,644 | |||||
Income taxes | 23 | (236 | ) | ||||
The following summarizes the non-cash activities related to acquisitions | |||||||
Fair value of assets and intangibles acquired, including goodwill | $ | — | $ | 65,531 | |||
Fair value of liabilities assumed | — | (1,345,608 | ) | ||||
Net fair value of assets (liabilities) | $ | — | $ | (1,280,077 | ) |
Adjusted Fair Value Recorded by | ||||
Washington Federal | ||||
(In thousands) | ||||
Assets: | ||||
Cash | $ | 1,776,660 | ||
Available for sale securities | — | |||
FHLB stock | — | |||
Loans receivable, net | 12,881 | |||
Covered loans receivable, net | — | |||
FDIC indemnification asset | — | |||
Property and equipment, net | 25,097 | |||
Core deposit intangible | 11,040 | |||
Real estate held for sale | — | |||
Covered real estate held for sale | — | |||
Goodwill | 31,225 | |||
Other assets | 70 | |||
Total Assets | 1,856,973 | |||
Liabilities: | ||||
Customer accounts | 1,853,798 | |||
FHLB advances | — | |||
Other liabilities | 3,175 | |||
Total Liabilities | 1,856,973 | |||
Net assets acquired | $ | — |
December 31, 2014 | September 30, 2014 | ||||||||||||
(In thousands) | |||||||||||||
Non-acquired loans | |||||||||||||
Single-family residential | $ | 5,608,208 | 63.9 | % | $ | 5,560,203 | 64.1 | % | |||||
Construction - speculative | 152,450 | 1.7 | 140,060 | 1.6 | |||||||||
Construction - custom | 377,561 | 4.3 | 385,824 | 4.5 | |||||||||
Land - acquisition & development | 84,000 | 1.0 | 77,832 | 0.9 | |||||||||
Land - consumer lot loans | 104,492 | 1.2 | 108,623 | 1.3 | |||||||||
Multi-family | 977,752 | 11.2 | 917,286 | 10.6 | |||||||||
Commercial real estate | 597,436 | 6.8 | 591,336 | 6.9 | |||||||||
Commercial & industrial | 391,327 | 4.5 | 379,226 | 4.4 | |||||||||
HELOC | 118,047 | 1.3 | 116,042 | 1.4 | |||||||||
Consumer | 126,929 | 1.4 | 132,590 | 1.5 | |||||||||
Total non-acquired loans | 8,538,202 | 97.3 | 8,409,022 | 97.2 | |||||||||
Acquired loans | |||||||||||||
Single-family residential | 11,163 | 0.1 | 11,716 | 0.1 | |||||||||
Land - acquisition & development | 872 | — | 905 | — | |||||||||
Land - consumer lot loans | 2,496 | — | 2,507 | — | |||||||||
Multi-family | 2,954 | — | 2,999 | — | |||||||||
Commercial real estate | 92,133 | 1.0 | 97,898 | 1.1 | |||||||||
Commercial & industrial | 58,836 | 0.7 | 51,386 | 0.6 | |||||||||
HELOC | 7,749 | 0.1 | 8,274 | 0.1 | |||||||||
Consumer | 4,369 | — | 5,670 | 0.1 | |||||||||
Total acquired loans | 180,572 | 1.9 | 181,355 | 2.0 | |||||||||
Credit-impaired acquired loans | |||||||||||||
Single-family residential | 323 | — | 325 | — | |||||||||
Land - acquisition & development | 1,533 | — | 1,622 | — | |||||||||
Commercial real estate | 60,287 | 0.7 | 63,723 | 0.7 | |||||||||
Commercial & industrial | 3,255 | — | 3,476 | — | |||||||||
HELOC | 9,202 | 0.1 | 10,139 | 0.1 | |||||||||
Consumer | 54 | — | 55 | — | |||||||||
Total credit-impaired acquired loans | 74,654 | 0.8 | 79,340 | 0.8 | |||||||||
Total loans | |||||||||||||
Single-family residential | 5,619,694 | 64.0 | 5,572,244 | 64.2 | |||||||||
Construction - speculative | 152,450 | 1.7 | 140,060 | 1.6 | |||||||||
Construction - custom | 377,561 | 4.3 | 385,824 | 4.5 | |||||||||
Land - acquisition & development | 86,405 | 1.0 | 80,359 | 0.9 | |||||||||
Land - consumer lot loans | 106,988 | 1.2 | 111,130 | 1.3 | |||||||||
Multi-family | 980,706 | 11.2 | 920,285 | 10.6 | |||||||||
Commercial real estate | 749,856 | 8.5 | 752,957 | 8.7 | |||||||||
Commercial & industrial | 453,418 | 5.2 | 434,088 | 5.0 | |||||||||
HELOC | 134,998 | 1.5 | 134,455 | 1.6 | |||||||||
Consumer | 131,352 | 1.4 | 138,315 | 1.6 | |||||||||
Total loans | 8,793,428 | 100 | % | 8,669,717 | 100 | % | |||||||
Less: | |||||||||||||
Allowance for probable losses | 108,700 | 112,347 | |||||||||||
Loans in process | 370,655 | 346,172 | |||||||||||
Discount on acquired loans | 22,535 | 25,391 | |||||||||||
Deferred net origination fees | 37,621 | 37,485 | |||||||||||
539,511 | 521,395 | ||||||||||||
$ | 8,253,917 | $ | 8,148,322 |
December 31, 2014 | Acquired Impaired | Acquired Non-impaired | |||||||||||||
Accretable Yield | Carrying Amount of Loans | Accretable Yield | Carrying Amount of Loans | ||||||||||||
(In thousands) | |||||||||||||||
Balance as of beginning of period | $ | 32,591 | $ | 57,771 | $ | 4,254 | $ | 177,440 | |||||||
Accretion | (2,970 | ) | 2,970 | (1,424 | ) | 1,424 | |||||||||
Payments received, net | — | (6,455 | ) | — | (1,193 | ) | |||||||||
Balance as of end of period | $ | 29,621 | $ | 54,286 | $ | 2,830 | $ | 177,671 |
September 30, 2014 | Acquired Impaired | Acquired Non-impaired | |||||||||||||
Accretable Yield | Carrying Amount of Loans | Accretable Yield | Carrying Amount of Loans | ||||||||||||
(In thousands) | |||||||||||||||
Balance as of beginning of period | $ | 37,236 | $ | 69,718 | $ | 4,977 | $ | 245,373 | |||||||
Reclassification from nonaccretable balance, net (1) | 7,300 | — | — | — | |||||||||||
Accretion | (11,945 | ) | 11,945 | (723 | ) | 723 | |||||||||
Transfers to REO | — | (1,188 | ) | — | (4,710 | ) | |||||||||
Payments received, net | — | (22,704 | ) | — | (63,946 | ) | |||||||||
Balance as of end of period | $ | 32,591 | $ | 57,771 | $ | 4,254 | $ | 177,440 | |||||||
(1) reclassification due to improvements in expected cash flows of the underlying loans. |
December 31, 2014 | September 30, 2014 | ||||||||||||
(In thousands) | |||||||||||||
Non-accrual loans: | |||||||||||||
Single-family residential | $ | 74,416 | 75.6 | % | $ | 74,067 | 84.8 | % | |||||
Construction - speculative | 1,329 | 1.4 | 1,477 | 1.7 | |||||||||
Land - acquisition & development | — | — | 811 | 0.9 | |||||||||
Land - consumer lot loans | 2,260 | 2.3 | 2,637 | 3.0 | |||||||||
Multi-family | 1,019 | 1.0 | 1,742 | 2.0 | |||||||||
Commercial real estate | 15,970 | 16.2 | 5,106 | 5.8 | |||||||||
Commercial & industrial | 672 | 0.7 | 7 | — | |||||||||
HELOC | 1,454 | 1.5 | 795 | 0.9 | |||||||||
Consumer | 1,233 | 1.3 | 789 | 0.9 | |||||||||
Total non-accrual loans | $ | 98,353 | 100.0 | % | $ | 87,431 | 100 | % |
December 31, 2014 | Amount of Loans | Days Delinquent Based on $ Amount of Loans | % based on $ | |||||||||||||||||||||||
Type of Loan | Net of LIP & Chg.-Offs | Current | 30 | 60 | 90 | Total | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Non-acquired loans | ||||||||||||||||||||||||||
Single-Family Residential | $ | 5,605,917 | $ | 5,518,834 | $ | 17,503 | $ | 7,804 | $ | 61,776 | $ | 87,083 | 1.55 | % | ||||||||||||
Construction - Speculative | 95,367 | 95,199 | 168 | — | — | 168 | 0.18 | |||||||||||||||||||
Construction - Custom | 191,787 | 191,670 | 114 | 3 | — | 117 | 0.06 | |||||||||||||||||||
Land - Acquisition & Development | 70,347 | 68,008 | 2,339 | — | — | 2,339 | 3.32 | |||||||||||||||||||
Land - Consumer Lot Loans | 104,444 | 100,639 | 596 | 368 | 2,841 | 3,805 | 3.64 | |||||||||||||||||||
Multi-Family | 906,295 | 905,532 | — | — | 763 | 763 | 0.08 | |||||||||||||||||||
Commercial Real Estate | 559,808 | 541,939 | 2,607 | — | 15,262 | 17,869 | 3.19 | |||||||||||||||||||
Commercial & Industrial | 388,588 | 387,149 | 339 | — | 1,100 | 1,439 | 0.37 | |||||||||||||||||||
HELOC | 118,143 | 117,362 | 162 | 58 | 561 | 781 | 0.66 | |||||||||||||||||||
Consumer | 126,929 | 125,745 | 756 | 230 | 198 | 1,184 | 0.93 | |||||||||||||||||||
Total non-acquired loans | 8,167,625 | 8,052,077 | 24,584 | 8,463 | 82,501 | 115,548 | 1.41 | % | ||||||||||||||||||
Acquired loans | ||||||||||||||||||||||||||
Single-Family Residential | 11,164 | 10,907 | 232 | — | 25 | 257 | 2.30 | % | ||||||||||||||||||
Land - Acquisition & Development | 872 | 872 | — | — | — | — | — | |||||||||||||||||||
Land - Consumer Lot Loans | 2,495 | 1,686 | 560 | — | 249 | 809 | — | |||||||||||||||||||
Multi-Family | 2,954 | 2,954 | — | — | — | — | — | |||||||||||||||||||
Commercial Real Estate | 92,066 | 91,211 | — | 97 | 758 | 855 | 0.93 | |||||||||||||||||||
Commercial & Industrial | 58,832 | 58,733 | — | — | 99 | 99 | 0.17 | |||||||||||||||||||
HELOC | 7,749 | 7,290 | 241 | — | 218 | 459 | 5.92 | |||||||||||||||||||
Consumer | 4,369 | 3,301 | 412 | — | 656 | 1,068 | 24.44 | |||||||||||||||||||
Total acquired loans | 180,501 | 176,954 | 1,445 | 97 | 2,005 | 3,547 | 1.97 | % | ||||||||||||||||||
Credit-impaired acquired loans | ||||||||||||||||||||||||||
Single-Family Residential | 323 | 323 | — | — | — | — | — | % | ||||||||||||||||||
Land - Acquisition & Development | 1,533 | 1,533 | — | — | — | — | — | |||||||||||||||||||
Commercial Real Estate | 60,280 | 56,301 | 2,064 | 430 | 1,485 | 3,979 | 6.60 | |||||||||||||||||||
Commercial & Industrial | 3,255 | 3,255 | — | — | — | — | — | |||||||||||||||||||
HELOC | 9,201 | 8,799 | — | — | 402 | 402 | 4.37 | |||||||||||||||||||
Consumer | 54 | 54 | — | — | — | — | — | |||||||||||||||||||
Total credit-impaired acquired loans | 74,646 | 70,265 | 2,064 | 430 | 1,887 | 4,381 | 5.87 | % | ||||||||||||||||||
Total loans | $ | 8,422,772 | $ | 8,299,296 | $ | 28,093 | $ | 8,990 | $ | 86,393 | $ | 123,476 | 1.47 | % |
September 30, 2014 | Amount of Loans | Days Delinquent Based on $ Amount of Loans | % based on $ | |||||||||||||||||||||||
Type of Loan | Net of LIP & Chg.-Offs | Current | 30 | 60 | 90 | Total | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Single-Family Residential | $ | 5,557,753 | $ | 5,467,239 | $ | 15,926 | $ | 9,139 | $ | 65,449 | $ | 90,514 | 1.63 | % | ||||||||||||
Construction - Speculative | 87,035 | 87,035 | — | — | — | — | — | |||||||||||||||||||
Construction - Custom | 192,098 | 191,262 | 836 | — | — | 836 | 0.44 | |||||||||||||||||||
Land - Acquisition & Development | 68,066 | 67,911 | 155 | — | — | 155 | 0.23 | |||||||||||||||||||
Land - Consumer Lot Loans | 108,589 | 104,571 | 1,246 | 304 | 2,468 | 4,018 | 3.70 | |||||||||||||||||||
Multi-Family | 892,196 | 891,372 | 205 | 16 | 603 | 824 | 0.09 | |||||||||||||||||||
Commercial Real Estate | 529,453 | 513,409 | 67 | 15,118 | 859 | 16,044 | 3.03 | |||||||||||||||||||
Commercial & Industrial | 379,226 | 377,848 | 53 | 1,318 | 7 | 1,378 | 0.36 | |||||||||||||||||||
HELOC | 116,262 | 115,262 | 335 | 292 | 373 | 1,000 | 0.86 | |||||||||||||||||||
Consumer | 132,686 | 131,642 | 654 | 262 | 128 | 1,044 | 0.79 | |||||||||||||||||||
Total non-acquired loans | 8,063,364 | 7,947,551 | 19,477 | 26,449 | 69,887 | 115,813 | 1.44 | % | ||||||||||||||||||
Acquired loans | ||||||||||||||||||||||||||
Single-Family Residential | 11,716 | 11,693 | — | — | 23 | 23 | 0.20 | |||||||||||||||||||
Land - Acquisition & Development | 905 | 905 | — | — | — | — | — | |||||||||||||||||||
Land - Consumer Lot Loans | 2,502 | 2,132 | — | 370 | — | 370 | 14.79 | |||||||||||||||||||
Multi-Family | 2,999 | 2,999 | — | — | — | — | — | |||||||||||||||||||
Commercial Real Estate | 97,715 | 96,948 | 104 | — | 663 | 767 | 0.78 | |||||||||||||||||||
Commercial & Industrial | 51,329 | 51,229 | — | 100 | — | 100 | 0.19 | |||||||||||||||||||
HELOC | 8,056 | 8,056 | — | — | — | — | — | |||||||||||||||||||
Consumer | 5,670 | 4,983 | 22 | 4 | 661 | 687 | 12.12 | |||||||||||||||||||
Total acquired loans | 180,892 | 178,945 | 126 | 474 | 1,347 | 1,947 | 1.08 | % | ||||||||||||||||||
Credit-impaired acquired loans | ||||||||||||||||||||||||||
Single-Family Residential | 325 | 325 | — | — | — | — | — | % | ||||||||||||||||||
Land - Acquisition & Development | 1,581 | 1,581 | — | — | — | — | — | |||||||||||||||||||
Commercial Real Estate | 63,713 | 61,713 | 152 | 909 | 939 | 2,000 | 3.14 | |||||||||||||||||||
Commercial & Industrial | 3,477 | 3,470 | 7 | — | — | 7 | 0.20 | |||||||||||||||||||
HELOC | 10,138 | 9,641 | — | 75 | 422 | 497 | 4.90 | |||||||||||||||||||
Consumer | 54 | 54 | — | — | — | — | — | |||||||||||||||||||
Total credit-impaired acquired loans | 79,288 | 76,784 | 159 | 984 | 1,361 | 2,504 | 3.16 | % | ||||||||||||||||||
Total loans | $ | 8,323,544 | $ | 8,203,280 | $ | 19,762 | $ | 27,907 | $ | 72,595 | $ | 120,264 | 1.44 | % |
Quarter Ended December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||
Outstanding | Outstanding | Outstanding | Outstanding | ||||||||||||||||||
Number of | Recorded | Recorded | Number of | Recorded | Recorded | ||||||||||||||||
Contracts | Investment | Investment | Contracts | Investment | Investment | ||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||
Single-Family Residential | 35 | $ | 9,600 | $ | 9,600 | 113 | $ | 23,607 | $ | 23,607 | |||||||||||
Construction - Speculative | 2 | 718 | 718 | — | — | — | |||||||||||||||
Land - Consumer Lot Loans | 2 | 532 | 532 | 5 | 1,098 | 1,098 | |||||||||||||||
Multi-Family | — | — | — | 2 | 1,213 | 1,213 | |||||||||||||||
Commercial Real Estate | — | — | — | 1 | 810 | 810 | |||||||||||||||
HELOC | — | — | — | 1 | 261 | 261 | |||||||||||||||
Consumer | 1 | 85 | 85 | 2 | 39 | 39 | |||||||||||||||
40 | $ | 10,935 | $ | 10,935 | 124 | $ | 27,028 | $ | 27,028 |
Quarter Ended December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Number of | Recorded | Number of | Recorded | ||||||||||
Contracts | Investment | Contracts | Investment | ||||||||||
(In thousands) | (In thousands) | ||||||||||||
Troubled Debt Restructurings That Subsequently Defaulted: | |||||||||||||
Single-Family Residential | 8 | $ | 1,431 | 24 | $ | 3,624 | |||||||
Land - Consumer Lot Loans | 3 | 389 | 2 | 166 | |||||||||
11 | $ | 1,820 | 26 | $ | 3,790 |
Quarter Ended December 31, 2014 | Beginning Allowance | Charge-offs | Recoveries | Provision & Transfers | Ending Allowance | ||||||||||||||
(In thousands) | |||||||||||||||||||
Single-family residential | $ | 62,763 | $ | (1,694 | ) | $ | 2,553 | $ | (8,127 | ) | $ | 55,495 | |||||||
Construction - speculative | 6,742 | (388 | ) | — | (903 | ) | 5,451 | ||||||||||||
Construction - custom | 1,695 | — | — | (730 | ) | 965 | |||||||||||||
Land - acquisition & development | 5,592 | (38 | ) | 1 | 1,116 | 6,671 | |||||||||||||
Land - consumer lot loans | 3,077 | (35 | ) | — | 71 | 3,113 | |||||||||||||
Multi-family | 4,248 | — | 220 | 32 | 4,500 | ||||||||||||||
Commercial real estate | 7,548 | (27 | ) | 28 | (1,677 | ) | 5,872 | ||||||||||||
Commercial & industrial | 16,527 | — | 34 | 6,767 | 23,328 | ||||||||||||||
HELOC | 928 | — | — | (36 | ) | 892 | |||||||||||||
Consumer | 3,227 | (427 | ) | 615 | (1,002 | ) | 2,413 | ||||||||||||
$ | 112,347 | $ | (2,609 | ) | $ | 3,451 | $ | (4,489 | ) | $ | 108,700 |
Fiscal Year Ended September 30, 2014 | Beginning Allowance | Charge-offs | Recoveries | Provision & Transfers | Ending Allowance | ||||||||||||||
(In thousands) | |||||||||||||||||||
Single-family residential | $ | 64,184 | $ | (8,529 | ) | $ | 17,684 | $ | (10,576 | ) | $ | 62,763 | |||||||
Construction - speculative | 8,407 | (949 | ) | 97 | (813 | ) | 6,742 | ||||||||||||
Construction - custom | 882 | — | — | 813 | 1,695 | ||||||||||||||
Land - acquisition & development | 9,165 | (541 | ) | 3,071 | (6,103 | ) | 5,592 | ||||||||||||
Land - consumer lot loans | 3,552 | (658 | ) | 22 | 161 | 3,077 | |||||||||||||
Multi-family | 3,816 | — | — | 432 | 4,248 | ||||||||||||||
Commercial real estate | 5,595 | (105 | ) | 33 | 2,025 | 7,548 | |||||||||||||
Commercial & industrial | 16,614 | (826 | ) | 5,043 | (4,304 | ) | 16,527 | ||||||||||||
HELOC | 1,002 | (48 | ) | — | (26 | ) | 928 | ||||||||||||
Consumer | 3,524 | (3,443 | ) | 3,513 | (367 | ) | 3,227 | ||||||||||||
$ | 116,741 | $ | (15,099 | ) | $ | 29,463 | $ | (18,758 | ) | $ | 112,347 |
December 31, 2014 | Loans Collectively Evaluated for Impairment | Loans Individually Evaluated for Impairment | |||||||||||||||||||
General Reserve Allocation | Gross Loans Subject to General Reserve (1) | Ratio | Specific Reserve Allocation | Gross Loans Subject to Specific Reserve (1) | Ratio | ||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Single-family residential | $ | 55,495 | $ | 5,542,825 | 1.0 | % | $ | — | $ | 63,091 | — | % | |||||||||
Construction - speculative | 5,451 | 87,711 | 6.2 | — | 7,656 | — | |||||||||||||||
Construction - custom | 965 | 191,787 | 0.5 | — | — | — | |||||||||||||||
Land - acquisition & development | 6,671 | 66,953 | 10.0 | — | 3,394 | — | |||||||||||||||
Land - consumer lot loans | 3,113 | 91,588 | 3.4 | — | 12,856 | — | |||||||||||||||
Multi-family | 4,500 | 901,277 | 0.5 | — | 5,019 | — | |||||||||||||||
Commercial real estate | 5,872 | 533,593 | 1.1 | — | 26,217 | — | |||||||||||||||
Commercial & industrial | 23,328 | 425,724 | 5.4 | — | — | — | |||||||||||||||
HELOC | 892 | 116,544 | 0.8 | — | 1,598 | — | |||||||||||||||
Consumer | 2,413 | 126,920 | 1.9 | — | 9 | — | |||||||||||||||
$ | 108,700 | $ | 8,084,922 | 1.4 | % | $ | — | $ | 119,840 | — | % |
(1) | Excludes acquired loans with sufficient discounts and covered loans |
September 30, 2014 | Loans Collectively Evaluated for Impairment | Loans Individually Evaluated for Impairment | |||||||||||||||||||
General Reserve Allocation | Gross Loans Subject to General Reserve (1) | Ratio | Specific Reserve Allocation | Gross Loans Subject to Specific Reserve (1) | Ratio | ||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Single-family residential | $ | 62,067 | $ | 5,487,331 | 1.1 | % | $ | — | $ | 72,869 | — | % | |||||||||
Construction - speculative | 6,682 | 130,901 | 5.5 | 60 | 9,159 | 0.7 | |||||||||||||||
Construction - custom | 1,695 | 385,464 | 0.5 | — | 360 | — | |||||||||||||||
Land - acquisition & development | 5,592 | 73,999 | 7.6 | — | 3,833 | — | |||||||||||||||
Land - consumer lot loans | 3,077 | 95,684 | 3.2 | — | 12,939 | — | |||||||||||||||
Multi-family | 4,248 | 911,162 | 0.5 | — | 6,124 | — | |||||||||||||||
Commercial real estate | 7,548 | 563,534 | 1.4 | — | 27,802 | — | |||||||||||||||
Commercial & industrial | 17,223 | 421,816 | 4.6 | — | — | — | |||||||||||||||
HELOC | 928 | 114,393 | 0.9 | — | 1,650 | — | |||||||||||||||
Consumer | 3,227 | 132,590 | 2.4 | — | — | — | |||||||||||||||
$ | 112,287 | $ | 8,316,874 | 1.4 | % | $ | 60 | $ | 134,736 | — | % |
(1) | Excludes acquired loans with sufficient discounts and covered loans |
• | Pass – the credit does not meet one of the definitions below. |
• | Special mention – A special mention credit is considered to be currently protected from loss but is potentially weak. No loss of principal or interest is foreseen; however, proper supervision and Management attention is required to deter further deterioration in the credit. Assets in this category constitute some undue and unwarranted credit risk but not to the point of justifying a risk rating of substandard. The credit risk may be relatively minor yet constitutes an unwarranted risk in light of the circumstances surrounding a specific asset. |
• | Substandard – A substandard credit is an unacceptable credit. Additionally, repayment in the normal course is in jeopardy due to the existence of one or more well defined weaknesses. In these situations, loss of principal is likely if the weakness is not corrected. A substandard asset is inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Assets so classified will have a well defined weakness or weaknesses that jeopardize the liquidation of the debt. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets risk rated substandard. |
• | Doubtful – A credit classified doubtful has all the weaknesses inherent in one classified substandard with the added characteristic that the weakness makes collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The probability of loss is high, but because of certain important and reasonably specific pending factors that may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans. |
• | Loss – Credits classified loss are considered uncollectible and of such little value that their continuance as a bankable asset is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset even though partial recovery may be affected in the future. Losses should be taken in the period in which they are identified as uncollectible. Partial charge-off versus full charge-off may be taken if the collateral offers some identifiable protection. |
December 31, 2014 | Internally Assigned Grade | Total | |||||||||||||||||||||
Pass | Special mention | Substandard | Doubtful | Loss | Gross Loans | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Non-acquired loans | |||||||||||||||||||||||
Single-family residential | $ | 5,484,864 | $ | 2,357 | $ | 120,987 | $ | — | $ | — | $ | 5,608,208 | |||||||||||
Construction - speculative | 147,979 | — | 4,471 | — | — | 152,450 | |||||||||||||||||
Construction - custom | 377,561 | — | — | — | — | 377,561 | |||||||||||||||||
Land - acquisition & development | 78,428 | — | 5,572 | — | — | 84,000 | |||||||||||||||||
Land - consumer lot loans | 103,890 | — | 602 | — | — | 104,492 | |||||||||||||||||
Multi-family | 971,647 | — | 6,105 | — | — | 977,752 | |||||||||||||||||
Commercial real estate | 566,553 | 1,955 | 28,928 | — | — | 597,436 | |||||||||||||||||
Commercial & industrial | 333,082 | 13,653 | 44,592 | — | — | 391,327 | |||||||||||||||||
HELOC | 117,799 | — | 248 | — | — | 118,047 | |||||||||||||||||
Consumer | 126,929 | — | — | — | — | 126,929 | |||||||||||||||||
8,308,732 | 17,965 | 211,505 | — | — | 8,538,202 | ||||||||||||||||||
Acquired loans | |||||||||||||||||||||||
Single-family residential | 11,163 | — | — | — | — | 11,163 | |||||||||||||||||
Land - acquisition & development | 479 | — | 393 | — | — | 872 | |||||||||||||||||
Land - consumer lot loans | 2,496 | — | — | — | — | 2,496 | |||||||||||||||||
Multi-family | 2,954 | — | — | — | — | 2,954 | |||||||||||||||||
Commercial real estate | 83,991 | 742 | 7,400 | — | — | 92,133 | |||||||||||||||||
Commercial & industrial | 45,643 | 13,001 | 171 | 21 | — | 58,836 | |||||||||||||||||
HELOC | 7,749 | — | — | — | — | 7,749 | |||||||||||||||||
Consumer | 4,369 | — | — | — | — | 4,369 | |||||||||||||||||
158,844 | 13,743 | 7,964 | 21 | — | 180,572 | ||||||||||||||||||
Credit impaired acquired loans | |||||||||||||||||||||||
Pool 1 - Construction and land A&D | 1,244 | — | 289 | — | — | 1,533 | |||||||||||||||||
Pool 2 - Single-family residential | 323 | — | — | — | — | 323 | |||||||||||||||||
Pool 3 - Multi-family | — | — | — | — | — | — | |||||||||||||||||
Pool 4 - HELOC & other consumer | 9,256 | — | — | — | — | 9,256 | |||||||||||||||||
Pool 5 - Commercial real estate | 48,716 | — | 11,571 | — | — | 60,287 | |||||||||||||||||
Pool 6 - Commercial & industrial | 452 | 2,803 | — | — | — | 3,255 | |||||||||||||||||
Total credit impaired acquired loans | 59,991 | 2,803 | 11,860 | — | — | 74,654 | |||||||||||||||||
Total gross loans | $ | 8,527,567 | $ | 34,511 | $ | 231,329 | $ | 21 | $ | — | $ | 8,793,428 | |||||||||||
Total grade as a % of total gross loans | 97.0 | % | 0.4 | % | 2.6 | % | — | % | — | % |
September 30, 2014 | Internally Assigned Grade | Total | |||||||||||||||||||||
Pass | Special mention | Substandard | Doubtful | Loss | Gross Loans | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Non-acquired loans | |||||||||||||||||||||||
Single-family residential | $ | 5,426,895 | $ | 2,793 | $ | 130,515 | $ | — | $ | — | $ | 5,560,203 | |||||||||||
Construction - speculative | 134,950 | — | 5,110 | — | — | 140,060 | |||||||||||||||||
Construction - custom | 385,824 | — | — | — | — | 385,824 | |||||||||||||||||
Land - acquisition & development | 71,692 | — | 6,140 | — | — | 77,832 | |||||||||||||||||
Land - consumer lot loans | 108,013 | — | 610 | — | — | 108,623 | |||||||||||||||||
Multi-family | 912,728 | — | 4,558 | — | — | 917,286 | |||||||||||||||||
Commercial real estate | 557,914 | 1,971 | 31,451 | — | — | 591,336 | |||||||||||||||||
Commercial & industrial | 359,221 | 14,740 | 5,265 | — | — | 379,226 | |||||||||||||||||
HELOC | 115,794 | — | 248 | — | — | 116,042 | |||||||||||||||||
Consumer | 132,349 | — | 241 | — | — | 132,590 | |||||||||||||||||
8,205,380 | 19,504 | 184,138 | — | — | 8,409,022 | ||||||||||||||||||
Acquired loans | |||||||||||||||||||||||
Single-family residential | 11,716 | — | — | — | — | 11,716 | |||||||||||||||||
Land - acquisition & development | 503 | — | 402 | — | — | 905 | |||||||||||||||||
Land - consumer lot loans | 2,507 | — | — | — | — | 2,507 | |||||||||||||||||
Multi-family | 2,999 | — | — | — | — | 2,999 | |||||||||||||||||
Commercial real estate | 88,974 | 2,571 | 6,353 | — | — | 97,898 | |||||||||||||||||
Commercial & industrial | 36,311 | 13,642 | 1,375 | 58 | — | 51,386 | |||||||||||||||||
HELOC | 8,274 | — | — | — | — | 8,274 | |||||||||||||||||
Consumer | 5,670 | — | — | — | — | 5,670 | |||||||||||||||||
156,954 | 16,213 | 8,130 | 58 | — | 181,355 | ||||||||||||||||||
Credit impaired acquired loans | |||||||||||||||||||||||
Pool 1 - Construction and land A&D | 1,292 | — | 330 | — | — | 1,622 | |||||||||||||||||
Pool 2 - Single-family residential | 325 | — | — | — | — | 325 | |||||||||||||||||
Pool 3 - Multi-family | — | — | — | — | — | — | |||||||||||||||||
Pool 4 - HELOC & other consumer | 10,194 | — | — | — | — | 10,194 | |||||||||||||||||
Pool 5 - Commercial real estate | 48,878 | 2,143 | 12,702 | — | — | 63,723 | |||||||||||||||||
Pool 6 - Commercial & industrial | 643 | — | 2,833 | — | — | 3,476 | |||||||||||||||||
Total credit impaired acquired loans | 61,332 | 2,143 | 15,865 | — | — | 79,340 | |||||||||||||||||
Total gross loans | $ | 8,423,666 | $ | 37,860 | $ | 208,133 | $ | 58 | $ | — | $ | 8,669,717 | |||||||||||
Total grade as a % of total gross loans | 97.2 | % | 0.4 | % | 2.4 | % | — | % | — | % |
December 31, 2014 | Performing Loans | Non-Performing Loans | |||||||||||
Amount | % of Total Gross Loans | Amount | % of Total Gross Loans | ||||||||||
(In thousands) | |||||||||||||
Single-family residential | $ | 5,533,792 | 98.7 | % | $ | 74,416 | 1.3 | % | |||||
Construction - speculative | 151,121 | 99.1 | 1,329 | 0.9 | |||||||||
Construction - custom | 377,561 | 100.0 | — | — | |||||||||
Land - acquisition & development | 84,000 | 100.0 | — | — | |||||||||
Land - consumer lot loans | 102,232 | 97.8 | 2,260 | 2.2 | |||||||||
Multi-family | 976,733 | 99.9 | 1,019 | 0.1 | |||||||||
Commercial real estate | 581,466 | 97.3 | 15,970 | 2.7 | |||||||||
Commercial & industrial | 390,655 | 99.8 | 672 | 0.2 | |||||||||
HELOC | 116,593 | 98.8 | 1,454 | 1.2 | |||||||||
Consumer | 125,696 | 99.0 | 1,233 | 1.0 | |||||||||
$ | 8,439,849 | 98.8 | % | $ | 98,353 | 1.2 | % |
September 30, 2014 | Performing Loans | Non-Performing Loans | |||||||||||
Amount | % of Total Gross Loans | Amount | % of Total Gross Loans | ||||||||||
(In thousands) | |||||||||||||
Single-family residential | $ | 5,486,136 | 98.7 | % | $ | 74,067 | 1.3 | % | |||||
Construction - speculative | 138,583 | 98.9 | 1,477 | 1.1 | |||||||||
Construction - custom | 385,824 | 100.0 | — | — | |||||||||
Land - acquisition & development | 77,021 | 99.0 | 811 | 1.0 | |||||||||
Land - consumer lot loans | 105,986 | 97.6 | 2,637 | 2.4 | |||||||||
Multi-family | 915,544 | 99.8 | 1,742 | 0.2 | |||||||||
Commercial real estate | 586,230 | 99.1 | 5,106 | 0.9 | |||||||||
Commercial & industrial | 379,219 | 100.0 | 7 | — | |||||||||
HELOC | 115,247 | 99.3 | 795 | 0.7 | |||||||||
Consumer | 131,801 | 99.4 | 789 | 0.6 | |||||||||
$ | 8,321,591 | 99.0 | % | $ | 87,431 | 1.0 | % |
December 31, 2014 | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | ||||||||||||
(In thousands) | ||||||||||||||||
With no related allowance recorded: | ||||||||||||||||
Single-family residential | $ | 24,441 | $ | 26,661 | $ | — | $ | 21,251 | ||||||||
Construction - speculative | 1,006 | 1,201 | — | 1,040 | ||||||||||||
Land - acquisition & development | 790 | 2,163 | — | 813 | ||||||||||||
Land - consumer lot loans | 1,689 | 1,787 | — | 1,268 | ||||||||||||
Multi-family | 1,255 | 1,255 | — | 1,068 | ||||||||||||
Commercial real estate | 27,233 | 33,352 | — | 26,902 | ||||||||||||
Commercial & industrial | 4,429 | 16,320 | — | 3,812 | ||||||||||||
HELOC | 1,163 | 1,948 | — | 1,075 | ||||||||||||
Consumer | 651 | 836 | — | 647 | ||||||||||||
62,657 | 85,523 | — | 57,876 | |||||||||||||
With an allowance recorded: | ||||||||||||||||
Single-family residential | 304,029 | 309,207 | 9,964 | 304,359 | ||||||||||||
Construction - speculative | 6,317 | 7,182 | — | 6,506 | ||||||||||||
Land - acquisition & development | 4,238 | 5,178 | — | 4,467 | ||||||||||||
Land - consumer lot loans | 12,231 | 12,614 | — | 12,446 | ||||||||||||
Multi-family | 3,492 | 3,492 | — | 3,828 | ||||||||||||
Commercial real estate | 18,028 | 18,896 | — | 18,072 | ||||||||||||
HELOC | 1,486 | 1,486 | — | 1,486 | ||||||||||||
Consumer | 126 | 297 | — | 85 | ||||||||||||
349,947 | 358,352 | 9,964 | (1) | 351,249 | ||||||||||||
Total: | ||||||||||||||||
Single-family residential | 328,470 | 335,868 | 9,964 | 325,610 | ||||||||||||
Construction - speculative | 7,323 | 8,383 | — | 7,546 | ||||||||||||
Land - acquisition & development | 5,028 | 7,341 | — | 5,280 | ||||||||||||
Land - consumer lot loans | 13,920 | 14,401 | — | 13,714 | ||||||||||||
Multi-family | 4,747 | 4,747 | — | 4,896 | ||||||||||||
Commercial real estate | 45,261 | 52,248 | — | 44,974 | ||||||||||||
Commercial & industrial | 4,429 | 16,320 | — | 3,812 | ||||||||||||
HELOC | 2,649 | 3,434 | — | 2,561 | ||||||||||||
Consumer | 777 | 1,133 | — | 732 | ||||||||||||
$ | 412,604 | $ | 443,875 | $ | 9,964 | (1) | $ | 409,125 |
September 30, 2014 | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | |||||||||||
(In thousands) | |||||||||||||||
With no related allowance recorded: | |||||||||||||||
Single-family residential | $ | 24,044 | $ | 26,628 | $ | — | $ | 16,843 | |||||||
Construction - speculative | 1,603 | 2,173 | — | 1,804 | |||||||||||
Land - acquisition & development | 837 | 2,325 | — | 1,038 | |||||||||||
Land - consumer lot loans | 974 | 1,072 | — | 713 | |||||||||||
Multi-family | 1,111 | 1,111 | — | 327 | |||||||||||
Commercial real estate | 13,234 | 20,085 | — | 11,720 | |||||||||||
Commercial & industrial | 3,195 | 17,166 | — | 3,900 | |||||||||||
HELOC | 1,019 | 1,730 | — | 612 | |||||||||||
Consumer | 663 | 833 | — | 517 | |||||||||||
46,680 | 73,123 | — | 37,474 | ||||||||||||
With an allowance recorded: | |||||||||||||||
Single-family residential | 322,320 | 327,869 | 10,527 | 316,348 | |||||||||||
Construction - speculative | 7,556 | 7,986 | 60 | 7,532 | |||||||||||
Land - acquisition & development | 4,696 | 5,636 | — | 4,114 | |||||||||||
Land - consumer lot loans | 13,002 | 13,385 | — | 12,858 | |||||||||||
Multi-family | 5,243 | 5,463 | — | 4,957 | |||||||||||
Commercial real estate | 34,159 | 35,028 | — | 18,572 | |||||||||||
HELOC | 1,486 | 1,486 | — | 1,204 | |||||||||||
Consumer | 43 | 214 | — | 79 | |||||||||||
388,505 | 397,067 | 10,587 | (1) | 365,664 | |||||||||||
Total: | |||||||||||||||
Single-family residential | 346,364 | 354,497 | 10,527 | 333,191 | |||||||||||
Construction - speculative | 9,159 | 10,159 | 60 | 9,336 | |||||||||||
Land - acquisition & development | 5,533 | 7,961 | — | 5,152 | |||||||||||
Land - consumer lot loans | 13,976 | 14,457 | — | 13,571 | |||||||||||
Multi-family | 6,354 | 6,574 | — | 5,284 | |||||||||||
Commercial real estate | 47,393 | 55,113 | — | 30,292 | |||||||||||
Commercial & industrial | 3,195 | 17,166 | — | 3,900 | |||||||||||
HELOC | 2,505 | 3,216 | — | 1,816 | |||||||||||
Consumer | 706 | 1,047 | — | 596 | |||||||||||
$ | 435,185 | $ | 470,190 | $ | 10,587 | (1) | $ | 403,138 |
(1) | Includes $60,000 of specific reserves and $10,527,000 included in the general reserves. |
Fair Value at December 31, 2014 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In thousands) | |||||||||||||||
Available-for-sale securities | |||||||||||||||
Equity securities | $ | 101,636 | $ | — | $ | — | $ | 101,636 | |||||||
Obligations of U.S. government | — | 620,018 | — | 620,018 | |||||||||||
Obligations of states and political subdivisions | — | 24,068 | — | 24,068 | |||||||||||
Corporate debt securities | — | 527,938 | — | 527,938 | |||||||||||
Mortgage-backed securities | |||||||||||||||
Agency pass-through certificates | — | 1,527,810 | — | 1,527,810 | |||||||||||
Other commercial MBS | — | 93,586 | — | 93,586 | |||||||||||
Balance at end of period | $ | 101,636 | $ | 2,793,420 | $ | — | $ | 2,895,056 |
Fair Value at September 30, 2014 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In thousands) | |||||||||||||||
Available-for-sale securities | |||||||||||||||
Equity securities | $ | 101,387 | $ | — | $ | — | $ | 101,387 | |||||||
Obligations of U.S. government | — | 731,943 | — | 731,943 | |||||||||||
Obligations of states and political subdivisions | — | 23,681 | — | 23,681 | |||||||||||
Corporate debt securities | — | 509,007 | — | 509,007 | |||||||||||
Mortgage-backed securities | |||||||||||||||
Agency pass-through certificates | — | 1,584,508 | — | 1,584,508 | |||||||||||
Other commercial MBS | — | 98,916 | — | 98,916 | |||||||||||
Balance at end of period | $ | 101,387 | $ | 2,948,055 | $ | — | $ | 3,049,442 |
Through December 31, 2014 | Quarter Ended December 31, 2014 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total Losses (Gains) | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Impaired loans (1) | $ | — | $ | — | $ | 146 | $ | 146 | $ | 64 | ||||||||||
Covered REO (1) | — | — | 1,041 | 1,041 | 75 | |||||||||||||||
Real estate held for sale (2) | — | — | 36,901 | 36,901 | (8,312 | ) | ||||||||||||||
Balance at end of period | $ | — | $ | — | $ | 38,088 | $ | 38,088 | $ | (8,173 | ) |
(1) | The losses represent remeasurements of collateral-dependent loans. |
(2) | The gains in this period include a one-time correction of $8.2 million (see Note A for description). |
Through December 31, 2013 | Quarter Ended December 31, 2013 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total Losses (Gains) | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Impaired loans (1) | $ | — | $ | — | $ | 5,580 | $ | 5,580 | $ | (805 | ) | |||||||||
Covered REO (2) | — | — | 1,286 | 1,286 | 65 | |||||||||||||||
Real estate held for sale (2) | — | — | 10,342 | 10,342 | 3,725 | |||||||||||||||
Balance at end of period | $ | — | $ | — | $ | 17,208 | $ | 17,208 | $ | 2,985 |
(1) | The gains represent remeasurements of collateral-dependent loans. |
(2) | The losses represent aggregate writedowns and charge-offs on real estate held for sale. |
• | The fair value of the collateral, which may take the form of real estate or personal property, is based on internal estimates, field observations, assessments provided by third-party appraisers and other valuation models. The Company performs or reaffirms valuations of collateral-dependent impaired loans at least annually. Adjustments are made if management believes that more recent information is available and relevant with respect to the fair value of the collateral. |
• | The fair value of REO assets is re-evaluated quarterly and the REO asset is adjusted to reflect the lower of cost or fair value as necessary. After foreclosure, valuations are updated periodically and current market conditions may require the assets to be written down further or up to the cost basis established on the date of transfer. The carrying balance of REO assets are also written down or up once a bona fide offer is contractually accepted, through execution of a Purchase and Sale Agreement, where the accepted price is lower than the cost basis established on the transfer date. |
December 31, 2014 | September 30, 2014 | |||||||||||||||||
Level in Fair Value Hierarchy | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||
(In thousands) | ||||||||||||||||||
Financial assets | ||||||||||||||||||
Cash and cash equivalents | 1 | $ | 542,769 | $ | 542,769 | $ | 781,843 | $ | 781,843 | |||||||||
Available-for-sale securities | ||||||||||||||||||
Equity securities | 1 | 101,636 | 101,636 | 101,387 | 101,387 | |||||||||||||
Obligations of U.S. government | 2 | 620,018 | 620,018 | 731,943 | 731,943 | |||||||||||||
Obligations of states and political subdivisions | 2 | 24,068 | 24,068 | 23,681 | 23,681 | |||||||||||||
Corporate debt securities | 2 | 527,938 | 527,938 | 509,007 | 509,007 | |||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Agency pass-through certificates | 2 | 1,527,810 | 1,527,810 | 1,584,508 | 1,584,508 | |||||||||||||
Other commercial MBS | 2 | 93,586 | 93,586 | 98,916 | 98,916 | |||||||||||||
Total available-for-sale securities | 2,895,056 | 2,895,056 | 3,049,442 | 3,049,442 | ||||||||||||||
Held-to-maturity securities | ||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Agency pass-through certificates | 2 | 1,516,219 | 1,503,781 | 1,548,265 | 1,499,218 | |||||||||||||
Total held-to-maturity securities | 1,516,219 | 1,503,781 | 1,548,265 | 1,499,218 | ||||||||||||||
Loans receivable, net | 3 | 8,253,917 | 8,816,245 | 8,148,322 | 8,667,771 | |||||||||||||
Covered loans, net | 3 | 161,478 | 167,129 | 176,476 | 176,761 | |||||||||||||
FDIC indemnification asset | 3 | 30,356 | 29,559 | 36,860 | 35,976 | |||||||||||||
FHLB and FRB stock | 2 | 154,870 | 154,870 | 158,839 | 158,839 | |||||||||||||
Financial liabilities | ||||||||||||||||||
Customer accounts | 2 | 10,578,853 | 9,936,221 | 10,716,928 | 9,946,586 | |||||||||||||
FHLB advances | 2 | 1,830,000 | 1,953,751 | 1,930,000 | 2,054,437 | |||||||||||||
Off balance sheet - interest rate swaps | 2 | — | (4,517 | ) | — | (170 | ) | |||||||||||
December 31, 2014 | ||||||||||||||||||
Amortized Cost | Gross Unrealized | Fair Value | Yield | |||||||||||||||
Gains | Losses | |||||||||||||||||
(In thousands) | ||||||||||||||||||
Available-for-sale securities | ||||||||||||||||||
U.S. government and agency securities due | ||||||||||||||||||
1 to 5 years | $ | 120,467 | $ | 2,396 | $ | (426 | ) | $ | 122,437 | 1.47 | ||||||||
5 to 10 years | 153,525 | 64 | (5 | ) | 153,584 | 1.12 | ||||||||||||
Over 10 years | 344,088 | 336 | (427 | ) | 343,997 | 1.26 | ||||||||||||
Equity Securities | ||||||||||||||||||
Within 1 year | 500 | 16 | — | 516 | 1.80 | |||||||||||||
1 to 5 years | 100,000 | 1,120 | — | 101,120 | 1.90 | |||||||||||||
5 to 10 years | — | — | — | — | — | |||||||||||||
Corporate bonds due | ||||||||||||||||||
Within 1 year | 15,000 | 67 | — | 15,067 | 1.00 | |||||||||||||
1 to 5 years | 302,627 | 1,524 | (6 | ) | 304,145 | 0.71 | ||||||||||||
5 to 10 years | 158,236 | 1,787 | (1,297 | ) | 158,726 | 1.42 | ||||||||||||
Over 10 years | 50,000 | — | — | 50,000 | 3.00 | |||||||||||||
Municipal bonds due | ||||||||||||||||||
Over 10 years | 20,397 | 3,671 | — | 24,068 | 6.45 | |||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Agency pass-through certificates | 1,495,114 | 34,386 | (1,690 | ) | 1,527,810 | 2.57 | ||||||||||||
Other commercial MBS | 93,533 | 53 | — | 93,586 | 1.51 | |||||||||||||
2,853,487 | 45,420 | (3,851 | ) | 2,895,056 | 1.99 | |||||||||||||
Held-to-maturity securities | ||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Agency pass-through certificates | 1,516,219 | 9,084 | (21,522 | ) | 1,503,781 | 3.13 | ||||||||||||
$ | 4,369,706 | $ | 54,504 | $ | (25,373 | ) | $ | 4,398,837 | 2.39 | % |
September 30, 2014 | ||||||||||||||||||
Amortized Cost | Gross Unrealized | Fair Value | Yield | |||||||||||||||
Gains | Losses | |||||||||||||||||
(In thousands) | ||||||||||||||||||
Available-for-sale securities | ||||||||||||||||||
U.S. government and agency securities due | ||||||||||||||||||
1 to 5 years | $ | 171,154 | $ | 2,585 | $ | (748 | ) | $ | 172,991 | 1.26 | ||||||||
5 to 10 years | 203,317 | 300 | (102 | ) | 203,515 | 1.45 | ||||||||||||
Over 10 years | 354,828 | 1,028 | (419 | ) | 355,437 | 1.25 | ||||||||||||
Equity Securities | ||||||||||||||||||
1 to 5 years | 100,500 | 887 | — | 101,387 | 1.90 | |||||||||||||
5 to 10 years | — | — | — | — | — | |||||||||||||
Corporate bonds due | ||||||||||||||||||
Within 1 year | 15,000 | 75 | — | 15,075 | 1.00 | |||||||||||||
1 to 5 years | 302,540 | 2,372 | — | 304,912 | 0.71 | |||||||||||||
5 to 10 years | 138,201 | 1,789 | (970 | ) | 139,020 | 1.43 | ||||||||||||
Over 10 years | 50,000 | — | — | 50,000 | 3.00 | |||||||||||||
Municipal bonds due | ||||||||||||||||||
Over 10 years | 20,402 | 3,279 | — | 23,681 | 6.45 | |||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Agency pass-through certificates | 1,561,639 | 24,893 | (2,024 | ) | 1,584,508 | 2.57 | ||||||||||||
Other commercial MBS | 98,851 | 65 | — | 98,916 | 1.49 | |||||||||||||
3,016,432 | 37,273 | (4,263 | ) | 3,049,442 | 1.99 | |||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Agency pass-through certificates | 1,548,265 | 4,855 | (53,902 | ) | 1,499,218 | 3.13 | ||||||||||||
$ | 4,564,697 | $ | 42,128 | $ | (58,165 | ) | $ | 4,548,660 | 2.38 | % |
December 31, 2014 | Less than 12 months | 12 months or more | Total | ||||||||||||||||||||
Unrealized Gross Losses | Fair Value | Unrealized Gross Losses | Fair Value | Unrealized Gross Losses | Fair Value | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Corporate bonds due | $ | (406 | ) | $ | 72,688 | $ | (897 | ) | $ | 24,104 | $ | (1,303 | ) | $ | 96,792 | ||||||||
U.S. government and agency securities due | (422 | ) | 246,045 | (436 | ) | 99,564 | (858 | ) | 345,609 | ||||||||||||||
Agency pass-through certificates | (421 | ) | 62,689 | (22,791 | ) | 1,332,778 | (23,212 | ) | 1,395,467 | ||||||||||||||
$ | (1,249 | ) | $ | 381,422 | $ | (24,124 | ) | $ | 1,456,446 | $ | (25,373 | ) | $ | 1,837,868 |
September 30, 2014 | Less than 12 months | 12 months or more | Total | ||||||||||||||||||||
Unrealized Gross Losses | Fair Value | Unrealized Gross Losses | Fair Value | Unrealized Gross Losses | Fair Value | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Corporate bonds due | $ | (125 | ) | $ | 24,875 | $ | (845 | ) | $ | 24,155 | $ | (970 | ) | $ | 49,030 | ||||||||
U.S. government and agency securities due | (472 | ) | 316,578 | (797 | ) | 109,354 | (1,269 | ) | 425,932 | ||||||||||||||
Agency pass-through certificates | (215 | ) | 19,212 | (55,711 | ) | 1,509,209 | (55,926 | ) | 1,528,421 | ||||||||||||||
$ | (812 | ) | $ | 360,665 | $ | (57,353 | ) | $ | 1,642,718 | $ | (58,165 | ) | $ | 2,003,383 |
December 31, 2014 | Acquired Impaired | Acquired Non-impaired | |||||||||||||
Accretable Yield | Carrying Amount of Loans | Accretable Yield | Carrying Amount of Loans | ||||||||||||
(In thousands) | |||||||||||||||
Balance at beginning of period | $ | 64,534 | $ | 78,055 | $ | 10,259 | $ | 98,422 | |||||||
Accretion | (4,509 | ) | 4,509 | (1,909 | ) | 1,909 | |||||||||
Transfers to REO | — | (51 | ) | — | — | ||||||||||
Payments received, net | — | (4,025 | ) | — | (16,942 | ) | |||||||||
Balance at end of period | $ | 60,025 | $ | 78,488 | $ | 8,350 | $ | 83,389 | |||||||
September 30, 2014 | Acquired Impaired | Acquired Non-impaired | |||||||||||||
Accretable Yield | Carrying Amount of Loans | Accretable Yield | Carrying Amount of Loans | ||||||||||||
(In thousands) | |||||||||||||||
Balance at beginning of period | $ | 78,277 | $ | 138,091 | $ | 17,263 | $ | 157,856 | |||||||
Reclassification from nonaccretable balance, net | 10,186 | (2,069 | ) | — | — | ||||||||||
Accretion | (23,929 | ) | 23,929 | (7,004 | ) | 7,004 | |||||||||
Transfers to REO | — | (8,943 | ) | — | — | ||||||||||
Payments received, net | — | (72,953 | ) | — | (66,438 | ) | |||||||||
Balance at end of period | $ | 64,534 | $ | 78,055 | $ | 10,259 | $ | 98,422 |
December 31, 2014 | September 30, 2014 | ||||||
(In thousands) | |||||||
Balance at beginning of fiscal year 2014 and 2013 | $ | 36,860 | $ | 64,615 | |||
Additions | — | 1,795 | |||||
Payments made (received) | 430 | (2,502 | ) | ||||
Amortization | (7,074 | ) | (27,850 | ) | |||
Accretion | 140 | 802 | |||||
Balance at end of period | $ | 30,356 | $ | 36,860 |
December 31, 2014 | Internally Assigned Grade | Total Net Loans | |||||||||||||||||||||
Pass | Special mention | Substandard | Doubtful | Loss | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Purchased non credit-impaired loans: | |||||||||||||||||||||||
Single-family residential | $ | 20,664 | $ | — | $ | 1,212 | $ | — | $ | — | $ | 21,876 | |||||||||||
Land - acquisition & development | 353 | — | 36 | — | — | 389 | |||||||||||||||||
Land - consumer lot loans | 73 | — | — | — | — | 73 | |||||||||||||||||
Multi-family | 4,250 | — | — | — | — | 4,250 | |||||||||||||||||
Commercial real estate | 25,317 | — | 14,810 | — | — | 40,127 | |||||||||||||||||
Commercial & industrial | 2,476 | — | 2,635 | — | — | 5,111 | |||||||||||||||||
HELOC | 11,226 | — | — | — | — | 11,226 | |||||||||||||||||
Consumer | 393 | — | — | — | — | 393 | |||||||||||||||||
64,752 | — | 18,693 | — | — | 83,445 | ||||||||||||||||||
Total grade as a % of total net loans | 77.6 | % | — | % | 22.4 | % | — | % | — | % | |||||||||||||
Purchased credit-impaired loans: | |||||||||||||||||||||||
Pool 1 - Construction and land A&D | 7,128 | — | 12,142 | — | — | 19,270 | |||||||||||||||||
Pool 2 - Single-family residential | 15,061 | — | 324 | — | — | 15,385 | |||||||||||||||||
Pool 3 - Multi-family | 51 | — | 440 | — | — | 491 | |||||||||||||||||
Pool 4 - HELOC & other consumer | 2,772 | — | 1,167 | — | — | 3,939 | |||||||||||||||||
Pool 5 - Commercial real estate | 33,543 | 692 | 28,437 | — | — | 62,672 | |||||||||||||||||
Pool 6 - Commercial & industrial | 3,125 | — | 3,793 | 517 | — | 7,435 | |||||||||||||||||
$ | 61,680 | $ | 692 | $ | 46,303 | $ | 517 | $ | — | 109,192 | |||||||||||||
Total covered loans | 192,637 | ||||||||||||||||||||||
Discount | (28,916 | ) | |||||||||||||||||||||
Allowance | (2,243 | ) | |||||||||||||||||||||
Covered loans, net | $ | 161,478 |
September 30, 2014 | Internally Assigned Grade | Total Net Loans | |||||||||||||||||||||
Pass | Special mention | Substandard | Doubtful | Loss | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Purchased non credit-impaired loans: | |||||||||||||||||||||||
Single-family residential | $ | 21,311 | $ | — | $ | 1,756 | $ | — | $ | — | $ | 23,067 | |||||||||||
Land - acquisition & development | 972 | — | 392 | — | — | 1,364 | |||||||||||||||||
Land - consumer lot loans | 73 | — | — | — | — | 73 | |||||||||||||||||
Multi-family | 6,598 | — | — | — | — | 6,598 | |||||||||||||||||
Commercial real estate | 26,940 | 115 | 24,281 | — | — | 51,336 | |||||||||||||||||
Commercial & industrial | 2,801 | — | 2,691 | — | — | 5,492 | |||||||||||||||||
HELOC | 11,777 | — | — | — | — | 11,777 | |||||||||||||||||
Consumer | 454 | — | — | — | — | 454 | |||||||||||||||||
70,926 | 115 | 29,120 | — | — | 100,161 | ||||||||||||||||||
Total grade as a % of total net loans | 70.8 | % | 0.1 | % | 29.1 | % | — | % | — | % | |||||||||||||
Purchased credit-impaired loans: | |||||||||||||||||||||||
Pool 1 - Construction and land A&D | 8,349 | — | 11,912 | — | — | 20,261 | |||||||||||||||||
Pool 2 - Single-family residential | 15,585 | — | 379 | — | — | 15,964 | |||||||||||||||||
Pool 3 - Multi-family | 52 | — | 471 | — | — | 523 | |||||||||||||||||
Pool 4 - HELOC & other consumer | 2,804 | — | 1,173 | — | — | 3,977 | |||||||||||||||||
Pool 5 - Commercial real estate | 33,909 | 700 | 29,782 | — | — | 64,391 | |||||||||||||||||
Pool 6 - Commercial & industrial | 3,509 | — | 3,892 | 525 | — | 7,926 | |||||||||||||||||
$ | 64,208 | $ | 700 | $ | 47,609 | $ | 525 | $ | — | 113,042 | |||||||||||||
Total covered loans | 213,203 | ||||||||||||||||||||||
Discount | (34,483 | ) | |||||||||||||||||||||
Allowance | (2,244 | ) | |||||||||||||||||||||
Covered loans, net | $ | 176,476 |
December 31, 2014 | Amount of Loans Net of LIP & Chg.-Offs | Days Delinquent Based on $ Amount of Loans | % based on $ | |||||||||||||||||||||||
Type of Loans | Current | 30 | 60 | 90 | Total | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Single-Family Residential | $ | 21,876 | $ | 21,306 | $ | 27 | $ | 201 | $ | 342 | $ | 570 | 2.61 | % | ||||||||||||
Land - Acquisition & Development | 389 | 353 | — | — | 36 | 36 | 9.25 | |||||||||||||||||||
Land - Consumer Lot Loans | 73 | 73 | — | — | — | — | — | |||||||||||||||||||
Multi-Family | 4,250 | 4,250 | — | — | — | — | — | |||||||||||||||||||
Commercial Real Estate | 40,127 | 40,127 | — | — | — | — | — | |||||||||||||||||||
Commercial & Industrial | 5,111 | 5,111 | — | — | — | — | — | |||||||||||||||||||
HELOC | 11,226 | 11,197 | 29 | — | — | 29 | 0.26 | |||||||||||||||||||
Consumer | 393 | 390 | — | 3 | — | 3 | 0.76 | |||||||||||||||||||
$ | 83,445 | $ | 82,807 | $ | 56 | $ | 204 | $ | 378 | $ | 638 | 0.76 | % |
September 30, 2014 | Amount of Loans Net of LIP & Chg.-Offs | Days Delinquent Based on $ Amount of Loans | % based on $ | |||||||||||||||||||||||
Type of Loans | Current | 30 | 60 | 90 | Total | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Single-Family Residential | $ | 23,067 | $ | 22,391 | $ | 230 | $ | 40 | $ | 406 | $ | 676 | 2.93 | % | ||||||||||||
Land - Acquisition & Development | 1,364 | 1,328 | — | — | 36 | 36 | 2.64 | |||||||||||||||||||
Land - Consumer Lot Loans | 73 | 73 | — | — | — | — | — | |||||||||||||||||||
Multi-Family | 6,598 | 5,502 | — | — | 1,096 | 1,096 | 16.61 | |||||||||||||||||||
Commercial Real Estate | 51,336 | 51,336 | — | — | — | — | — | |||||||||||||||||||
Commercial & Industrial | 5,492 | 5,492 | — | — | — | — | — | |||||||||||||||||||
HELOC | 11,777 | 11,777 | — | — | — | — | — | |||||||||||||||||||
Consumer | 454 | 443 | 11 | — | — | 11 | 2.42 | |||||||||||||||||||
$ | 100,161 | $ | 98,342 | $ | 241 | $ | 40 | $ | 1,538 | $ | 1,819 | 1.82 | % |
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||
December 31, 2014 | September 30, 2014 | December 31, 2014 | September 30, 2014 | |||||||||||||||||||||
Location | Fair Value | Location | Fair Value | Location | Fair Value | Location | Fair Value | |||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Interest rate contracts | Other assets | $ | 5,626 | Other assets | $ | 2,879 | Other liabilities | $ | 5,626 | Other liabilities | $ | 2,879 | ||||||||||||
Long term borrowing hedge | Other assets | — | Other assets | — | Other liabilities | 4,517 | Other liabilities | — | ||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||
Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Loans and covered loans | $ | 8,367,285 | $ | 108,293 | 5.13 | % | $ | 7,826,159 | $ | 107,227 | 5.44 | % | |||||||||
Mortgaged-backed securities | 3,191,365 | 19,175 | 2.38 | 3,129,915 | 19,368 | 2.46 | |||||||||||||||
Cash & Investments | 1,876,824 | 5,415 | 1.14 | 1,474,296 | 4,261 | 1.15 | |||||||||||||||
FHLB & FRB stock | 158,194 | 401 | 1.01 | 172,607 | 402 | 0.92 | |||||||||||||||
Total interest-earning assets | 13,593,668 | 133,284 | 3.89 | % | 12,602,977 | 131,258 | 4.13 | % | |||||||||||||
Other assets | 1,062,770 | 946,963 | |||||||||||||||||||
Total assets | $ | 14,656,438 | $ | 13,549,940 | |||||||||||||||||
Liabilities and Equity | |||||||||||||||||||||
Customer accounts | $ | 10,680,974 | $ | 13,445 | 0.50 | % | $ | 9,538,339 | $ | 15,499 | 0.64 | % | |||||||||
FHLB advances | 1,920,217 | 17,656 | 3.65 | 2,030,000 | 17,447 | 3.41 | |||||||||||||||
Other borrowings | — | — | — | — | — | — | |||||||||||||||
Total interest-bearing liabilities | 12,601,191 | 31,101 | 0.98 | % | 11,568,339 | 32,946 | 1.13 | % | |||||||||||||
Other liabilities | 95,026 | 28,618 | |||||||||||||||||||
Total liabilities | 12,696,217 | 11,596,957 | |||||||||||||||||||
Stockholder's equity | 1,960,221 | 1,952,983 | |||||||||||||||||||
Total liabilities and equity | $ | 14,656,438 | $ | 13,549,940 | |||||||||||||||||
Net interest income | $ | 102,183 | $ | 98,312 | |||||||||||||||||
Net interest margin | 3.01 | % | 3.12 | % |
Actual | Capital Adequacy Guidelines | Categorized as Well Capitalized Under Prompt Corrective Action Provisions | |||||||||||||||
Capital | Ratio | Capital | Ratio | Capital | Ratio | ||||||||||||
(In thousands) | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Total capital (to risk-weighted assets) | |||||||||||||||||
The Company | $1,741,484 | 23.51 | % | $592,659 | 8.00 | % | NA | NA | |||||||||
The Bank | 1,715,440 | 23.16 | % | 592,596 | 8.00 | % | $740,745 | 10.00 | % | ||||||||
Tier I capital (to risk-weighted assets) | |||||||||||||||||
The Company | 1,648,120 | 22.25 | % | 296,330 | 4.00 | % | NA | NA | |||||||||
The Bank | 1,622,086 | 21.90 | % | 296,298 | 4.00 | % | 444,447 | 6.00 | % | ||||||||
Tier I Capital (to average assets) | |||||||||||||||||
The Company | 1,648,120 | 11.51 | % | 572,941 | 4.00 | % | NA | NA | |||||||||
The Bank | 1,622,086 | 11.33 | % | 572,648 | 4.00 | % | 715,810 | 5.00 | % | ||||||||
September 30, 2014 | |||||||||||||||||
Total capital (to risk-weighted assets) | |||||||||||||||||
The Company | 1,739,658 | 23.97 | % | 580,671 | 8.00 | % | NA | NA | |||||||||
The Bank | 1,750,179 | 24.11 | % | 580,772 | 8.00 | % | 725,965 | 10.00 | % | ||||||||
Tier I capital (to risk-weighted assets) | |||||||||||||||||
The Company | 1,648,199 | 22.71 | % | 290,335 | 4.00 | % | NA | NA | |||||||||
The Bank | 1,658,704 | 22.85 | % | 290,386 | 4.00 | % | 435,579 | 6.00 | % | ||||||||
Tier I Capital (to average assets) | |||||||||||||||||
The Company | 1,648,199 | 11.39 | % | 578,804 | 4.00 | % | NA | N/A | |||||||||
The Bank | 1,658,704 | 11.46 | % | 578,816 | 4.00 | % | 723,520 | 5.00 | % |
Loan Portfolio by Category * | December 31, 2014 | September 30, 2014 | June 30, 2014 | |||||||||||||||||
Non-Acquired loans | (In thousands) | |||||||||||||||||||
Single-family residential | $ | 5,608,208 | 63.9 | % | $ | 5,560,203 | 64.1 | % | $ | 5,466,771 | 64.7 | % | ||||||||
Construction - speculative | 152,450 | 1.7 | 140,060 | 1.6 | 126,926 | 1.5 | ||||||||||||||
Construction - custom | 377,561 | 4.3 | 385,824 | 4.5 | 372,789 | 4.4 | ||||||||||||||
Land - acquisition & development | 84,000 | 1.0 | 77,832 | 0.9 | 88,319 | 1.1 | ||||||||||||||
Land - consumer lot loans | 104,492 | 1.2 | 108,623 | 1.3 | 111,919 | 1.4 | ||||||||||||||
Multi-family | 977,752 | 11.2 | 917,286 | 10.6 | 893,742 | 10.6 | ||||||||||||||
Commercial real estate | 597,436 | 6.8 | 591,336 | 6.9 | 523,850 | 6.2 | ||||||||||||||
Commercial & industrial | 391,327 | 4.5 | 379,226 | 4.4 | 333,552 | 3.9 | ||||||||||||||
HELOC | 118,047 | 1.3 | 116,042 | 1.4 | 117,177 | 1.4 | ||||||||||||||
Consumer | 126,929 | 1.4 | 132,590 | 1.5 | 132,062 | 1.5 | ||||||||||||||
Total non-acquired loans | 8,538,202 | 97.3 | 8,409,022 | 97.2 | 8,167,107 | 96.7 | ||||||||||||||
Acquired loans | ||||||||||||||||||||
Single-family residential | 11,163 | 0.1 | 11,716 | 0.1 | 12,014 | 0.2 | ||||||||||||||
Land - acquisition & development | 872 | — | 905 | — | 1,069 | — | ||||||||||||||
Land - consumer lot loans | 2,496 | — | 2,507 | — | 2,654 | — | ||||||||||||||
Multi-family | 2,954 | — | 2,999 | — | 3,057 | — | ||||||||||||||
Commercial real estate | 92,133 | 1.0 | 97,898 | 1.1 | 103,215 | 1.1 | ||||||||||||||
Commercial & industrial | 58,836 | 0.7 | 51,386 | 0.6 | 60,349 | 0.7 | ||||||||||||||
HELOC | 7,749 | 0.1 | 8,274 | 0.1 | 8,469 | 0.1 | ||||||||||||||
Consumer | 4,369 | — | 5,670 | 0.1 | 6,427 | 0.1 | ||||||||||||||
Total acquired loans | 180,572 | 1.9 | 181,355 | 2.0 | 197,254 | 2.2 | ||||||||||||||
Credit-impaired acquired loans | ||||||||||||||||||||
Single-family residential | 323 | — | 325 | — | 326 | — | ||||||||||||||
Land - acquisition & development | 1,533 | — | 1,622 | — | 1,670 | — | ||||||||||||||
Commercial real estate | 60,287 | 0.7 | 63,723 | 0.7 | 66,356 | 0.9 | ||||||||||||||
Commercial & industrial | 3,255 | — | 3,476 | — | 4,280 | 0.1 | ||||||||||||||
HELOC | 9,202 | 0.1 | 10,139 | 0.1 | 10,658 | 0.1 | ||||||||||||||
Consumer | 54 | — | 55 | — | 58 | — | ||||||||||||||
Total credit-impaired acquired loans | 74,654 | 0.8 | 79,340 | 0.8 | 83,348 | 1.1 | ||||||||||||||
Total loans | ||||||||||||||||||||
Single-family residential | 5,619,694 | 64.0 | 5,572,244 | 64.2 | 5,479,111 | 64.9 | ||||||||||||||
Construction - speculative | 152,450 | 1.7 | 140,060 | 1.6 | 126,926 | 1.5 | ||||||||||||||
Construction - custom | 377,561 | 4.3 | 385,824 | 4.5 | 372,789 | 4.4 |
Land - acquisition & development | 86,405 | 1.0 | 80,359 | 0.9 | 91,058 | 1.1 | ||||||||||||||
Land - consumer lot loans | 106,988 | 1.2 | 111,130 | 1.3 | 114,573 | 1.4 | ||||||||||||||
Multi-family | 980,706 | 11.2 | 920,285 | 10.6 | 896,799 | 10.6 | ||||||||||||||
Commercial real estate | 749,856 | 8.5 | 752,957 | 8.7 | 693,421 | 8.2 | ||||||||||||||
Commercial & industrial | 453,418 | 5.2 | 434,088 | 5.0 | 398,181 | 4.7 | ||||||||||||||
HELOC | 134,998 | 1.5 | 134,455 | 1.6 | 136,304 | 1.6 | ||||||||||||||
Consumer | 131,352 | 1.4 | 138,315 | 1.6 | 138,547 | 1.6 | ||||||||||||||
Total loans | 8,793,428 | 100 | % | 8,669,717 | 100 | % | 8,447,709 | 100 | % | |||||||||||
Less: | ||||||||||||||||||||
Allowance for probable losses | 108,700 | 112,347 | 114,150 | |||||||||||||||||
Loans in process | 370,655 | 346,172 | 303,084 | |||||||||||||||||
Discount on acquired loans | 22,535 | 25,391 | 28,480 | |||||||||||||||||
Deferred net origination fees | 37,621 | 37,485 | 36,041 | |||||||||||||||||
539,511 | 521,395 | 481,755 | ||||||||||||||||||
$ | 8,253,917 | $ | 8,148,322 | $ | 7,965,954 |
December 31, 2014 | September 30, 2014 | ||||||||||||
(In thousands) | |||||||||||||
Restructured loans: | |||||||||||||
Single-family residential | $ | 304,784 | 86.6 | % | $ | 323,732 | 86.3 | % | |||||
Construction - speculative | 6,651 | 1.9 | 7,360 | 2.0 | |||||||||
Land - acquisition & development | 4,238 | 1.2 | 4,737 | 1.3 | |||||||||
Land - consumer lot loans | 12,528 | 3.6 | 13,002 | 3.5 | |||||||||
Multi - family | 4,141 | 1.2 | 5,243 | 1.4 | |||||||||
Commercial real estate | 18,028 | 5.1 | 19,140 | 5.1 | |||||||||
HELOC | 1,486 | 0.4 | 1,486 | 0.4 | |||||||||
Consumer | 126 | — | 43 | — | |||||||||
Total restructured loans (1) | 351,982 | 100 | % | 374,743 | 100 | % | |||||||
Non-accrual loans: | |||||||||||||
Single-family residential | 74,415 | 75.7 | % | 74,067 | 84.8 | % | |||||||
Construction - speculative | 1,329 | 1.4 | 1,477 | 1.7 | |||||||||
Land - consumer lot loans | 2,260 | 2.3 | 2,637 | 3.0 | |||||||||
Multi-family | 1,019 | 1.0 | 1,742 | 2.0 | |||||||||
Commercial real estate | 15,970 | 16.2 | 5,106 | 5.8 | |||||||||
Commercial & industrial | 673 | 0.7 | 7 | — | |||||||||
HELOC | 1,454 | 1.5 | 795 | 0.9 | |||||||||
Consumer | 1,233 | 1.3 | 789 | 0.9 | |||||||||
Total non-accrual loans (2) | 98,353 | 100 | % | 87,431 | 100 | % | |||||||
Total REO (3) | 61,970 | 55,072 | |||||||||||
Total REHI (3) | 3,994 | 4,808 | |||||||||||
Total non-performing assets | $ | 164,317 | $ | 147,311 | |||||||||
Total non-performing assets and performing restructured loans as a percentage of total assets | 3.44 | % | 3.37 | % | |||||||||
(1) Restructured loans were as follows: | |||||||||||||
Performing | $ | 333,854 | 94.8 | % | $ | 350,653 | 93.6 | % | |||||
Non-accrual * | 18,128 | 5.2 | 24,090 | 6.4 | |||||||||
$ | 351,982 | 100 | % | $ | 374,743 | 100 | % |
* | Included in "Total non-accrual loans" above |
(2) | The Company received interest income on nonaccrual loans of approximately $2,001,000 in the three months ended December 31, 2014. Had these loans performed according to their original contract terms, the Company would have recognized interest income of approximately $1,089,000 for the three months ended December 31, 2014. The received interest income may include more than three months of interest for some of the loans that were brought current. In addition to the nonaccrual loans reflected in the above table, at December 31, 2014 the Company had $87,842,000 of loans that were less than 90 days delinquent but which it had classified as substandard for one or more reasons. If these loans were deemed non-performing, the Company’s ratio of total NPAs and performing restructured loans as a percent of total assets would have increased to 4.04% at December 31, 2014. |
(3) | Total REO and REHI includes real estate held for sale acquired in settlement of loans or acquired from purchased institutions in settlement of loans. Excludes covered REO. |
December 31, 2014 | September 30, 2014 | ||||||||||||||||||
Amount | Loans to Total Loans (1) | Coverage Ratio (2) | Amount | Loans to Total Loans (1) | Coverage Ratio (2) | ||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||
Single-family residential | $ | 55,495 | 69.4 | % | 1.0 | % | $ | 62,763 | 65.6 | % | 1.1 | % | |||||||
Construction - speculative | 5,451 | 1.2 | 5.7 | 6,742 | 1.7 | 5.2 | |||||||||||||
Construction - custom | 965 | 2.4 | 0.5 | 1,695 | 4.6 | 0.5 | |||||||||||||
Land - acquisition & development | 6,671 | 0.9 | 9.5 | 5,592 | 0.9 | 7.2 | |||||||||||||
Land - consumer lot loans | 3,113 | 1.3 | 3.0 | 3,077 | 1.3 | 2.8 | |||||||||||||
Multi-family | 4,500 | 11.2 | 0.5 | 4,248 | 10.9 | 0.5 | |||||||||||||
Commercial real estate | 5,872 | 6.9 | 1.0 | 7,548 | 7.0 | 1.3 | |||||||||||||
Commercial & industrial | 23,328 | 3.6 | 5.4 | 16,527 | 5.0 | 4.6 | |||||||||||||
HELOC | 892 | 1.5 | 0.8 | 928 | 1.4 | 0.9 | |||||||||||||
Consumer | 2,413 | 1.6 | 1.9 | 3,227 | 1.6 | 2.4 | |||||||||||||
$ | 108,700 | 100 | % | $ | 112,347 | 100 | % |
(1) | Represents the total amount of the loan category as a % of total gross non-acquired and non-covered loans outstanding. |
(2) | Represents the allocated allowance as a % of total gross non-acquired or covered loans outstanding for the same loan category. |
December 31, 2014 | September 30, 2014 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||
Wtd. Avg. Rate | Wtd. Avg. Rate | ||||||||||||||||||
Non-interest checking | $ | 870,981 | 8.2 | % | — | % | $ | 883,601 | 8.2 | % | — | % | |||||||
Interest checking | 1,436,922 | 13.6 | 0.06 | % | 1,447,569 | 13.5 | 0.09 | % | |||||||||||
Savings (passbook/stmt) | 640,731 | 6.1 | 0.10 | % | 622,546 | 5.8 | 0.10 | % | |||||||||||
Money Market | 2,515,564 | 23.8 | 0.18 | % | 2,536,971 | 23.7 | 0.18 | % | |||||||||||
CD’s | 5,114,655 | 48.3 | 0.91 | % | 5,226,241 | 48.8 | 0.92 | % | |||||||||||
Total | $ | 10,578,853 | 100 | % | 0.50 | % | $ | 10,716,928 | 100 | % | 0.51 | % |
Comparison of Quarters Ended 12/31/14 and 12/31/13 | ||||||||||||
Volume | Rate | Total | ||||||||||
(In thousands) | ||||||||||||
Interest income: | ||||||||||||
Loans and covered loans | $ | 6,961 | $ | (5,895 | ) | $ | 1,066 | |||||
Mortgaged-backed securities | 354 | (547 | ) | (193 | ) | |||||||
Investments (1) | 1,310 | (157 | ) | 1,153 | ||||||||
All interest-earning assets | 8,625 | (6,599 | ) | 2,026 | ||||||||
Interest expense: | ||||||||||||
Customer accounts | 1,638 | (3,692 | ) | (2,054 | ) | |||||||
FHLB advances and other borrowings | (784 | ) | 993 | 209 | ||||||||
All interest-bearing liabilities | 854 | (2,699 | ) | (1,845 | ) | |||||||
Change in net interest income | $ | 7,771 | $ | (3,900 | ) | $ | 3,871 |
(1) | Includes interest on cash equivalents and dividends on FHLB stock |
Quarter Ended December 31, | |||||||
2014 | 2013 | ||||||
(In thousands) | |||||||
Net Gain on Sale | $ | 2,588 | $ | 2,333 | |||
REO Adjustments | (817 | ) | (2,219 | ) | |||
REO Operating Expenses | (1,456 | ) | (2,065 | ) | |||
Gain (Loss) on real estate acquired through foreclosure, net | $ | 315 | $ | (1,951 | ) |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan (1) | Maximum Number of Shares That May Yet Be Purchased Under the Plan at the End of the Period | ||||||||
October 1, 2014 to October 31, 2014 | 64,295 | $ | 20.49 | 64,295 | 4,978,139 | |||||||
November 1, 2014 to November 30, 2014 | 340,052 | 21.87 | 340,052 | 4,638,087 | ||||||||
December 1, 2014 to December 31, 2014 | 711,800 | 21.88 | 711,800 | 3,926,287 | ||||||||
Total | 1,116,147 | $ | 21.79 | 1,116,147 | 3,926,287 |
(1) | The Company's only stock repurchase program was publicly announced by the Board of Directors on February 3, 1995 and has no expiration date. Under this ongoing program, a total of 41,956,264 shares have been authorized for repurchase. |
(a) | Exhibits | |||
3.2 | Bylaws of the Company dated December 17, 2007 | |||
31.1 | Section 302 Certification by the Chief Executive Officer | |||
31.2 | Section 302 Certification by the Chief Financial Officer | |||
32 | Section 906 Certification by the Chief Executive Officer and the Chief Financial Officer | |||
101 | Financial Statements from the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2014 formatted in XBRL |
February 10, 2015 | /S/ ROY M. WHITEHEAD |
ROY M. WHITEHEAD Chairman, President and Chief Executive Officer | |
February 10, 2015 | /S/ Diane L. Kelleher |
Diane L. Kelleher Senior Vice President and Chief Financial Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Washington Federal, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this quarterly report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | February 10, 2015 | /s/ Roy M. Whitehead | |
ROY M. WHITEHEAD Chairman, President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Washington Federal, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this quarterly report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | February 10, 2015 | /s/ Diane L.Kelleher | |
DIANE L. KELLEHER | |||
Senior Vice President and Chief Financial Officer |
(a) | the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(b) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Washington Federal, Inc. | |
(Company) | |
/s/ Roy M. Whitehead | |
ROY M. WHITEHEAD | |
Chairman, President and Chief Executive Officer | |
/s/ Diane L. Kelleher | |
DIANE L. KELLEHER | |
Senior Vice President and Chief Financial Officer |
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