8-K

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): July 14, 2016

 ____________________________________

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 July 14, 2016, the Company announced by press release its earnings for the quarter ended June 30, 2016. A copy of the press release is attached to this filing as Exhibit 99.1. A copy of the June 30, 2016 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 June 30, 2016 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 July 14, 2016

99.2    Fact Sheet as of June 30, 2016

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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: July 14, 2016	WASHINGTON FEDERAL, INC.
	By:	/s/ VINCENT L. BEATTY
		Vincent L. Beatty
		Senior Vice President and Chief Financial Officer

3

EX-99.1

Thursday July 14, 2016

FOR IMMEDIATE RELEASE

Washington Federal Increases Earnings Per Share by 15%

SEATTLE, WASHINGTON – Washington Federal, Inc. (Nasdaq: WAFD), parent company of Washington Federal, National Association, today announced quarterly earnings of $43,004,000 or $0.47 per diluted share for the quarter ended June 30, 2016 compared to $39,050,000 or $0.41 per diluted share for the quarter ended June 30, 2015, a $0.06 or 14.63% increase in earnings per diluted share. Return on equity for the quarter ended June 30, 2016 was 8.71% compared to 8.00% for the quarter ended June 30, 2015. Return on assets for the quarter ended June 30, 2016 was 1.16% compared to 1.08% for the same quarter in the prior year.

Chairman, President & CEO Roy M. Whitehead commented, “Washington Federal had a very good quarter, with virtually every measure of performance showing improvement. Results for the quarter benefited from better credit quality, including recoveries on previously charged-off loans and gains on sales of real estate owned. In the current low rate environment we are especially pleased that we were able to originate over $700 million of new commercial loans, growing our loan portfolio while reducing our interest rate risk exposure. If the current low interest rate environment persists as we expect, continued growth in loans outstanding and low cost deposits will be key to maintaining our margin going forward.”

Total assets were $14.8 billion as of June 30, 2016, a $253 million or 1.7% increase from September 30, 2015. The Company continued to shift its asset mix from investment securities to loans receivable, which carry a higher yield. Since September 30, 2015, available-for-sale securities decreased $411 million or 17.3% and held-to-maturity securities decreased $151 million or 9.2%. During the same period cash and cash equivalents increased $246 million or 86.6% and net loans receivable increased by $458 million or 5.0%.

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Customer deposits decreased by $53 million or 0.5% during the nine months and total $10.6 billion as of June 30, 2016. Transaction and savings accounts increased by $99.4 million or 1.7% during the same period while time deposits decreased $152.2 million or 3.2%. The mix of customer deposits has continued to shift over the last several years as the Company focuses on growing transaction and savings accounts to lessen sensitivity to rising interest rates. As of June 30, 2016, 56.0% of the Company’s deposits were in transaction and savings accounts and 95.1% of the Company's deposits were core deposits.

Borrowings from the Federal Home Loan Bank increased by a net $250 million or 13.7% for the nine months since September 30, 2015. Specifically, the Company borrowed $300 million in long term advances, using interest rate swaps to fix the weighted average interest rate at 1.38% for 6.7 years as a hedge against rising interest rates. Partially offsetting these additional borrowings was the maturity of $50 million of short term borrowings with a rate of 0.61%.

Loan originations totaled $1,031 million for the 3^rd fiscal quarter 2016, a $278 million or 37% increase over the $753 million of originations in the same quarter one year ago. Partially offsetting this strong loan origination volume were loan repayments of $776 million and an increase in loans in process of $189 million during the quarter. For the same quarter in 2015 loan repayments totaled $615 million and loans in process increased by $12 million. Commercial loans represented 69% of all loan originations during the quarter with consumer loans accounting for the remaining 31%. The Company views organic loan growth as the highest and best use of its capital and prefers commercial loans in this low rate environment because of their shorter duration. The weighted average interest rate on loans decreased to 4.35% as of June 30, 2016 from 4.40% at March 31, 2016, due to the continued flattening of the yield curve and new loans being originated at lower rates. Actual yield earned on loans is 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.

Asset quality continued to improve as the ratio of non-performing assets to total assets decreased to 0.53% as of June 30, 2016, compared to 0.64% at March 31, 2016 and0.88% at September 30, 2015. The 0.53% is the lowest level experienced by the Company since March of 2008. The decrease in non-performing assets during the quarter was primarily due to a $7.1

2

million, or 18%, decrease in real estate owned and a $7.2 million, or 13%, decrease in non-accrual loans. Delinquencies on loans was 0.73% of total loans at June 30, 2016 compared to 0.90% at March 31, 2016 and 0.88% at September 30, 2015. The Company realized net-recoveries on loans (as opposed to charge-offs) of $2.9 million for the quarter. The allowance for loan losses and reserve for unfunded commitments increased to $114 million as of June 30, 2016 and was 1.08% of gross loans outstanding, as compared to 1.10%and1.13% of gross loans as of March 31, 2016 and September 30, 2015, respectively. The decline in the ratio of the allowance to gross loans since our fiscal year end reflects continued improvement in economic conditions and the credit quality of the loan portfolio, partially offset by growth in the proportion of commercial loans outstanding.

On May 13, 2016, the Company paid a cash dividend of 14 cents per share to common stockholders of record on April 29, 2016. This was the Company’s 133^rd consecutive quarterly cash dividend. During the quarter, the Company repurchased 1,097,397 shares of common stock at a weighted average price of $23.33 per share and has authorization to repurchase approximately 1.0 million additional shares. The Company varies the pace of share repurchases depending on several factors, including share price, lending opportunities and capital levels. Tangible common stockholders’ equity per share increased during the 3^rd fiscal quarter by $0.21 or 1.15% to $18.45 and the ratio of tangible common equity to tangible assets remained strong at 11.46% as of June 30, 2016.

Net interest income was $104 million for the quarter, an increase of $4 million or 3.7% from the same quarter in the prior year. The increase in net interest income was primarily due to higher average balances of loans receivable. Net interest margin increased to 3.07% in the 3^rd fiscal quarter from 3.02% for same quarter in the prior year. The increase is primarily due to improved margin on earning assets as the Company shifted balances from lower yielding investment securities to loans receivable.

The Company recorded a release of loan loss allowance of $1.7 million for the 3^rd fiscal quarter compared to a release of $1.9 million for the same quarter of the prior year. This quarter's release was a result of continued improvement in credit quality, including net recoveries of $2.9 million in the quarter, offset partially by the growth in the loan portfolio.

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Total other income was $10.5 million for the 3^rd fiscal quarter 2016, a decrease of $1.3 million from $11.8 million in the same quarter of the prior year. The quarter ended June 30, 2015 included a $9.6 million gain on sale of investment securities and a $7.9 million expense related to prepayment of a Federal Home Loan Bank advance while the current quarter had no such amounts.

Total operating expenses were $56.3 million in 3^rd fiscal quarter 2016, a decrease of $0.4 million or 0.7% from the prior year quarter, as lower compensation and benefits expense as well as product delivery costs were mostly offset by higher information technology costs related to the Company's new systems. Operating expenses declined by $2.9 million from the quarter ended March 31, 2016, primarily due to lower compensation and benefits expense. The Company’s efficiency ratio of 49.1% is slightly lower than the 50.5% for the same period one year ago due primarily to higher net interest income. The efficiency ratio improved to 49.1% this quarter from 50.6% for the March 2016 quarter primarily due to a decrease of $2.9 million in operating expenses.

Net gain on real estate owned was $5.1 million for 3^rd fiscal quarter 2016 compared to a net gain of $3.2 million for the same quarter last year. Net gain or loss on real estate owned includes gains and losses on sales, ongoing maintenance expenses and any additional net valuation adjustments. Going forward it is likely that gains on the sale of real estate owned will diminish as the Company's inventory of real estate owned declines.

For the quarter ended June 30, 2016, the Company recorded federal and state income tax expense of $22.2 million, which equates to a 34.00% effective tax rate. This compares to an effective tax rate of 35.75% for the same quarter a year ago and 34.00% for the quarter ended March 31, 2016. The decline in the effective tax rate from the prior year is due to investments in bank owned life insurance, low income housing tax credits and tax exempt loans since that time.

Washington Federal, a national bank with headquarters in Seattle, Washington, has 243 branches in eight western states. To find out more about Washington Federal, please visit our

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website www.washingtonfederal.com. Washington Federal uses its website to distribute financial and other material information about the Company.

Important Cautionary Statements

The foregoing information should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2015 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

Amanda Maier, Marketing Communications

206-626-8178

amanda.maier@wafd.com

5

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(UNAUDITED)

	June 30, 2016			September 30, 2015
	(In thousands, except share data)
ASSETS
Cash and cash equivalents	$	530,055		$	284,049
Available-for-sale securities, at fair value	1,969,869			2,380,563
Held-to-maturity securities, at amortized cost	1,492,480			1,643,216
Loans receivable, net	9,628,576			9,170,634
Interest receivable	36,888			40,429
Premises and equipment, net	295,348			276,247
Real estate owned	31,682			61,098
FHLB and FRB stock	117,205			107,198
Bank owned life insurance	206,377			102,496
Intangible assets, including goodwill of $291,503	297,537			299,358
Federal and state income tax assets, net	16,189			14,513
Other assets	199,394			188,523
	$	14,821,600		$	14,568,324
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Customer accounts
Transaction deposit accounts	$	5,920,242		$	5,820,878
Time deposit accounts	4,658,674			4,810,825
	10,578,916			10,631,703
FHLB advances	2,080,000			1,830,000
Advance payments by borrowers for taxes and insurance	33,209			50,224
Accrued expenses and other liabilities	167,290			100,718
	12,859,415			12,612,645
Stockholders’ equity
Common stock, $1.00 par value, 300,000,000 shares authorized; 134,145,522 and 133,695,803 shares issued; 90,226,193 and 92,936,395 shares outstanding	134,145			133,696
Paid-in capital	1,653,465			1,643,712
Accumulated other comprehensive (loss) income, net of taxes	(15,705		)	353
Treasury stock, at cost; 43,919,329 and 40,759,408 shares	(721,884		)	(651,836		)
Retained earnings	912,164			829,754
	1,962,185			1,955,679
	$	14,821,600		$	14,568,324
CONSOLIDATED FINANCIAL HIGHLIGHTS
Common stockholders' equity per share	$	21.75		$	21.04
Tangible common stockholders' equity per share	$	18.45		$	17.82
Stockholders' equity to total assets	13.24		%	13.42		%
Tangible common stockholders' equity to tangible assets	11.46		%	11.61		%
Weighted average rates at period end
Loans and mortgage-backed securities	3.92		%	3.94		%
Combined loans, mortgage-backed securities and investments	3.61			3.63
Customer accounts	0.51			0.48
Borrowings	3.13			3.35
Combined cost of customer accounts and borrowings	0.94			0.90
Net interest spread	2.67			2.73

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WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three Months Ended June 30,						Nine Months Ended June 30,
	2016			2015			2016			2015
	(In thousands, except share data)						(In thousands, except share data)
INTEREST INCOME
Loans receivable	$	113,728		$	107,250		$	339,802		$	324,817
Mortgage-backed securities	15,297			16,995			49,130			54,313
Investment securities and cash equivalents	4,710			5,055			14,990			16,084
	133,735			129,300			403,922			395,214
INTEREST EXPENSE
Customer accounts	13,274			12,485			39,062			38,504
FHLB advances and other borrowings	16,221			16,250			47,426			50,082
	29,495			28,735			86,488			88,586
Net interest income	104,240			100,565			317,434			306,628
Provision (release) for loan losses	(1,650		)	(1,932		)	(3,150		)	(11,381		)
Net interest income after provision (release) for loan losses	105,890			102,497			320,584			318,009
OTHER INCOME
Gain on sale of investments	—			9,639			—			9,639
Prepayment penalty on long-term debt	—			(7,941		)	—			(10,554		)
Loan fee income	1,101			1,915			3,784			6,028
Deposit fee income	5,297			5,156			16,564			16,538
Other Income	4,088			3,042			11,502			6,380
	10,486			11,811			31,850			28,031
OTHER EXPENSE
Compensation and benefits	27,333			29,824			86,217			89,453
Occupancy	8,515			8,492			26,075			24,866
FDIC insurance premiums	2,869			2,377			8,243			5,431
Product delivery	3,822			6,175			13,639			17,222
Information technology	7,669			3,783			23,832			11,695
Other	6,097			6,068			22,034			18,975
	56,305			56,719			180,040			167,642
Gain on real estate owned, net	5,087			3,188			10,401			4,976
Income before income taxes	65,158			60,777			182,795			183,374
Income tax provision	22,154			21,727			62,970			65,556
NET INCOME	$	43,004		$	39,050		$	119,825		$	117,818
PER SHARE DATA
Basic earnings	$	0.47		$	0.41		$	1.30		$	1.22
Diluted earnings	0.47			0.41			1.30			1.22
Cash dividends per share	0.14			0.13			0.41			0.41
Basic weighted average number of shares outstanding	90,928,847			94,466,524			91,901,632			96,335,777
Diluted weighted average number of shares outstanding	91,468,662			94,904,262			92,393,644			96,726,085
PERFORMANCE RATIOS
Return on average assets	1.16		%	1.08		%	1.09		%	1.08		%
Return on average common equity	8.71			8.00			8.12			8.04
Net interest margin	3.07			3.02			3.14			3.04
Efficiency ratio	49.08			50.47			51.55			50.09

7

EX-99.2

Washington Federal, Inc.

Fact Sheet

June 30, 2016

($ in Thousands)

	As of 12/15						As of 3/16						As of 6/16
Loan Loss Reserve - Total	$	110,986					$	113,004					$	114,251
General and Specific Allowance	107,901						109,919						111,016
Commitments Reserve	3,085						3,085						3,235
Allowance as a % of Gross Loans	1.10		%				1.10		%				1.08		%
	12/15 QTR			12/15 YTD			3/16 QTR			3/16 YTD			6/16 QTR			6/16 YTD
Loan Originations - Total	$	963,319		$	963,319		$	763,323		$	1,726,642		$	1,031,461		$	2,758,103
Single-Family Residential	132,472			132,472			129,778			262,250			194,141			456,391
Construction	129,536			129,536			198,286			327,822			342,230			670,052
Construction - Custom	88,761			88,761			91,358			180,119			97,602			277,721
Land - Acquisition & Development	5,722			5,722			13,528			19,250			14,305			33,555
Land - Consumer Lot Loans	5,268			5,268			6,171			11,439			7,817			19,256
Multi-Family	132,999			132,999			91,757			224,756			73,225			297,981
Commercial Real Estate	180,788			180,788			21,001			201,789			62,706			264,495
Commercial & Industrial	270,372			270,372			194,410			464,782			216,687			681,469
HELOC	16,702			16,702			16,221			32,923			21,733			54,656
Consumer	699			699			813			1,512			1,015			2,527
Purchased Loans (including acquisitions)	$	51,646		$	51,646		$	—		$	51,646		$	—		$	51,646
Net Loan Fee and Discount Accretion	$	8,397		$	8,397		$	8,080		$	16,477		$	6,691		$	23,168
Repayments
Loans	$	726,292		$	726,292		$	581,210		$	1,307,502		$	776,087		$	2,083,589
MBS	102,761			102,761			89,416			192,177			128,467			320,644
MBS Premium Amortization	$	2,802		$	2,802		$	2,642		$	5,444		$	3,514		$	8,958
Efficiency
Operating Expenses/Average Assets	1.77		%	1.77		%	1.62		%	1.70		%	1.52		%	1.64		%
Efficiency Ratio (%)	54.90		%	54.90		%	50.60		%	52.75		%	49.08		%	51.55		%
Amortization of Intangibles	$	639		$	639		$	606		$	1,245		$	576		$	1,821
EOP Numbers
Shares Issued and Outstanding	92,918,434						91,270,241						90,226,193
Share repurchase information
Remaining shares authorized for repurchase	3,778,148						2,138,706						1,041,309
Shares repurchased	423,082			423,082			1,639,442			2,062,524			1,097,397			3,159,921
Average share repurchase price	$	23.49		$	23.49		$	21.05		$	21.55		$	23.33		$	22.17

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Washington Federal, Inc.

Fact Sheet

June 30, 2016

($ in Thousands)

Tangible Common Book Value	As of 12/15				As of 3/16				As of 6/16
$ Amount	$	1,671,521			$	1,664,347			$	1,664,648
Per Share	17.99				18.24				18.45
# of Employees	1,825				1,837				1,817
Estimated Future Tax Rate	35.50		%		34.00		%		34.00		%
Investments
Available-for-sale:
Agency MBS	$	1,244,778			$	1,197,346			$	1,131,044
Other	1,060,010				899,740				838,825
	$	2,304,788			$	2,097,086			$	1,969,869
Held-to-maturity:
Agency MBS	$	1,598,370			$	1,558,087			$	1,492,480
	$	1,598,370			$	1,558,087			$	1,492,480
	As of 12/31/15				As of 3/31/16				As of 6/30/16
Loans Receivable by Category (a)	AMOUNT			%	AMOUNT			%	AMOUNT			%
Single-Family Residential	$	5,684,063		56.2%	$	5,661,999		54.9%	$	5,633,527		53.3%
Construction	663,503			6.6	788,412			7.6	1,016,305			9.6
Construction - Custom	404,849			4.0	398,797			3.9	409,116			3.9
Land - Acquisition & Development	100,017			1.0	104,272			1.0	104,412			1.0
Land - Consumer Lot Loans	105,119			1.0	103,582			1.0	104,461			1.0
Multi-Family	969,624			9.6	1,079,909			10.5	1,100,514			10.4
Commercial Real Estate	1,046,442			10.4	1,003,413			9.7	1,042,730			9.9
Commercial & Industrial	804,757			8.0	851,367			8.3	853,776			8.1
HELOC	148,369			1.5	148,045			1.4	151,352			1.4
Consumer	183,441			1.8	166,877			1.6	156,008			1.5
	10,110,184			100%	10,306,673			100%	10,572,201			100%
Less:
ALL	107,901				109,919				111,016
Loans in Process	535,850				591,667				780,720
Discount on Acquired Loans	25,039				21,120				14,776
Deferred Origination Fees, Net	38,664				38,645				37,113
Sub-Total	707,454				761,351				943,625
	$	9,402,730			$	9,545,322			$	9,628,576
Net Loan Portfolio by Category (a)	AMOUNT			%	AMOUNT			%	AMOUNT			%
Single-Family Residential	$	5,605,894		59.6%	$	5,595,908		58.6%	$	5,571,349		57.9%
Construction	315,120			3.4	377,640			4.0	422,785			4.4
Construction - Custom	218,220			2.3	209,551			2.2	211,002			2.2
Land - Acquisition & Development	79,512			0.8	85,711			0.9	85,392			0.9
Land - Consumer Lot Loans	101,390			1.1	100,469			1.1	101,395			1.1
Multi-Family	959,631			10.2	1,069,004			11.2	1,089,658			11.3
Commercial Real Estate	1,022,926			10.9	978,328			10.2	1,021,596			10.6
Commercial & Industrial	773,423			8.2	819,273			8.6	822,829			8.5
HELOC	146,093			1.6	145,593			1.5	149,213			1.5
Consumer	180,521			1.9	163,845			1.7	153,357			1.6
	$	9,402,730		100%	$	9,545,322		100%	$	9,628,576		100%
(a) Some loans have been reclassified by loan type as a result of system conversion in 1Q16, primarily impacting Construction, Multi-family and Commercial Real Estate.

2

Washington Federal, Inc.

Fact Sheet

June 30, 2016

($ in Thousands)

	As of 12/31/15						As of 3/31/16						As of 6/30/16
Deposits by State	AMOUNT			%		#	AMOUNT			%		#	AMOUNT			%		#
Washington (WA)	$	5,086,585		47.8	%	83	$	5,031,630		47.7	%	82	$	5,089,214		48.1	%	82
Idaho (ID)	787,094			7.4		26	783,049			7.4		26	774,432			7.3		26
Oregon (OR)	1,985,406			18.6		49	1,955,608			18.5		49	1,956,226			18.5		49
Utah (UT)	296,390			2.8		10	289,878			2.7		10	286,792			2.7		10
Nevada (NV)	346,142			3.2		11	342,121			3.2		11	343,220			3.2		11
Texas (TX)	92,905			0.9		5	90,869			0.9		5	92,983			0.9		5
Arizona (AZ)	1,191,911			11.2		35	1,186,739			11.3		32	1,187,651			11.2		32
New Mexico (NM)	864,686			8.1		28	863,490			8.2		28	848,398			8.0		28
Total	$	10,651,119		100%		247	$	10,543,384		100%		243	$	10,578,916		100%		243
Deposits by Type	AMOUNT			%			AMOUNT			%			AMOUNT			%
Checking (noninterest)	$	1,016,514		9.5	%		$	1,019,401		9.7	%		$	1,041,258		9.8	%
NOW (interest)	1,636,584			15.4			1,606,071			15.2			1,604,741			15.2
Savings (passbook/stmt)	782,646			7.3			779,814			7.4			787,441			7.4
Money Market	2,488,340			23.4			2,470,958			23.4			2,486,802			23.5
Time Deposits	4,727,035			44.4			4,667,140			44.3			4,658,674			44.0
Total	$	10,651,119		100%			$	10,543,384		100%			$	10,578,916		100%
Deposits greater than $250,000 - EOP	$	2,134,098					$	2,112,381					$	2,209,547
Time Deposit Repricing	Amount			Rate			Amount			Rate			Amount			Rate
Within 3 months	$	1,016,756		0.52	%		$	780,751		0.55	%		$	890,691		0.64	%
From 4 to 6 months	752,476			0.57	%		860,689			0.67	%		787,925			0.86	%
From 7 to 9 months	503,443			0.85	%		505,045			1.12	%		562,314			1.02	%
From 10 to 12 months	487,019			1.15	%		544,445			1.04	%		585,038			0.9	%
Non-Performing Assets	AMOUNT			%			AMOUNT			%			AMOUNT			%
Non-accrual loans:
Single-Family Residential	$	43,856		77.3%			$	42,395		77.7%			$	36,707		77.5%
Construction	—			—			—			—			—			—
Construction - Custom	2,518			4.4			67			0.1			506			1.1
Land - Acquisition & Development	509			0.9			477			0.9			427			0.9
Land - Consumer Lot Loans	939			1.7			940			1.7			1,105			2.3
Multi-Family	1,538			2.7			1,520			2.8			1,238			2.6
Commercial Real Estate	6,681			11.8			7,701			14.1			6,297			13.3
Commercial & Industrial	115			0.2			596			1.1			521			1.1
HELOC	473			0.8			554			1.0			548			1.2
Consumer	119			0.2			309			0.6			—			—
Total non-accrual loans	56,748			100%			54,559			100%			47,349			100%
Real Estate Owned	42,098						38,770						31,682
Total non-performing assets	$	98,846					$	93,329					$	79,031
Non-performing loans as % of total net loans	0.60		%				0.57		%				0.49		%
Non-performing assets as % of total assets	0.67		%				0.64		%				0.53		%

3

Washington Federal, Inc.

Fact Sheet

June 30, 2016

($ in Thousands)

	As of 12/31/15					As of 3/31/16					As of 6/30/16
	AMOUNT			%		AMOUNT			%		AMOUNT			%
Restructured loans:
Single-Family Residential	$	243,292		86.1%		$	233,544		86.4%		$	223,531		86.6%
Construction	—			—		—			—		—			—
Construction - Custom	—			—		—			—		—			—
Land - Acquisition & Development	1,976			0.7		1,632			0.6		1,454			0.6
Land - Consumer Lot Loans	10,173			3.6		9,981			3.7		9,672			3.7
Multi-Family	1,531			0.5		1,522			0.6		1,514			0.6
Commercial Real Estate	24,257			8.6		22,139			8.2		20,490			7.9
Commercial & Industrial	—			—		—			—		—			—
HELOC	1,397			0.5		1,396			0.5		1,379			0.5
Consumer	97			—		94			—		95			—
Total restructured loans	$	282,723		100%		$	270,308		100%		$	258,135		100%
Restructured loans were as follows:
Performing	$	273,211		96.6%		$	257,600		95.3%		$	247,695		96.0%
Non-performing (c)	9,512			3.4		12,708			4.7		10,440			4.0
Total restructured loans	$	282,723		100%		$	270,308		100%		$	258,135		100%
(c) Included in "Total non-accrual loans" above
	AMOUNT			CO % (d)		AMOUNT			CO % (d)		AMOUNT			CO % (d)
Net Charge-offs (Recoveries) by Category
Single-Family Residential	$	(1,327	)	(0.09)%		$	915		0.06%		$	473		0.03%
Construction	(155		)	(0.09)		5			—		(207		)	(0.08)
Construction - Custom	60			0.06		—			—		(60		)	(0.06)
Land - Acquisition & Development	(35		)	(0.14)		(3,371		)	(12.93)		(2,711		)	(10.39)
Land - Consumer Lot Loans	408			1.55		268			1.03		21			0.08
Multi-Family	—			—		—			—		—			—
Commercial Real Estate	(100		)	(0.04)		(983		)	(0.39)		(454		)	(0.17)
Commercial & Industrial	246			0.12		(259		)	(0.12)		144			0.07
HELOC	(19		)	(0.05)		26			0.07		27			0.07
Consumer	(150		)	(0.33)		(119		)	(0.29)		(130		)	(0.33)
Total net charge-offs (recoveries)	$	(1,072	)	(0.04)%		$	(3,518	)	(0.14)%		$	(2,897	)	(0.11)%
(d) Annualized Net Charge-offs (recoveries) divided by Gross Balance
ASC 310-30 Acquired Loans
Accretable Yield	$	70,553				$	64,457				$	60,453
Non-Accretable Yield	167,603					167,603					165,926
Total Contractual Payments	$	238,156				$	232,060				$	226,379
Interest Rate Risk
One Year GAP				(12.0	)%				(12.7	)%				(9.8	)%
NPV post 200 bps shock (e)				16.14	%				15.55	%				15.43	%
Change in NII after 200 bps shock (e)				(0.5	)%				1.42	%				3.88	%
(e) Assumes no balance sheet management actions taken

4

Washington Federal, Inc.

Fact Sheet

June 30, 2016

($ in Thousands)

Historical CPR Rates (f)
	WAFD		WAFD
Average for Quarter Ended:	SFR Mortgages		GSE MBS
9/30/2013	21.4	%	15.9	%
12/31/2013	13.5	%	8.7	%
3/31/2014	10.1	%	8.5	%
6/30/2014	13.8	%	10.6	%
9/30/2014	14.6	%	13.4	%
12/31/2014	15.9	%	12.1	%
3/31/2015	16.4	%	13.9	%
6/30/2015	18.7	%	15.9	%
9/30/2015	17.8	%	14.5	%
12/31/2015	16.7	%	13.4	%
3/31/2016	13.9	%	12.0	%
6/30/2016	17.3	%	17.5	%
(f) The CPR Rate (conditional payment rate) is the rate that is equal to the proportion of the principal of a pool of loans that is paid off prematurely in each period.

5

Washington Federal, Inc.

Fact Sheet

June 30, 2016

Average Balance Sheet

($ in Thousands)

	Quarters Ended
	December 31, 2015						March 31, 2016						June 30, 2016
	Average				Average		Average				Average		Average				Average
	Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
Assets
Loans receivable	$	9,258,041	$	112,863	4.84	%	$	9,469,185	$	113,211	4.80	%	$	9,561,921	$	113,728	4.77	%
Mortgage-backed securities	2,880,242		16,986		2.34		2,804,569		16,846		2.41		2,698,354		15,297		2.27
Cash & investments	1,198,471		4,258		1.41		1,065,800		3,983		1.50		1,187,023		4,012		1.36
FHLB & FRB Stock	107,793		1,016		3.74		112,662		1,023		3.64		117,022		698		2.39
Total interest-earning assets	13,444,547		135,123		3.99	%	13,452,216		135,063		4.03	%	13,564,320		133,735		3.95	%
Other assets	1,109,202						1,189,428						1,219,363
Total assets	$	14,553,749					$	14,641,644					$	14,783,683
Liabilities and Equity
Customer accounts	10,619,654		12,717		0.48	%	10,558,835		13,071		0.50	%	10,569,479		13,274		0.50	%
FHLB advances	1,844,772		15,537		3.34		1,970,022		15,667		3.19		2,075,604		16,221		3.13
Total interest-bearing liabilities	12,464,426		28,254		0.90	%	12,528,857		28,738		0.92	%	12,645,083		29,495		0.94	%
Other liabilities	124,370						151,697						163,788
Total liabilities	12,588,796						12,680,554						12,808,871
Stockholders’ equity	1,964,953						1,961,090						1,974,812
Total liabilities and equity	$	14,553,749					$	14,641,644					$	14,783,683
Net interest income			$	106,869					$	106,325					$	104,240
Net interest margin (1)					3.18	%					3.16	%					3.07	%
(1) Annualized net interest income divided by average interest-earning assets

6

Washington Federal, Inc.

Fact Sheet

June 30, 2016

Delinquency Summary

($ in Thousands)

			AMOUNT OF LOANS		# OF LOANS				% based				% based
TYPE OF LOANS	#LOANS	AVG Size	NET OF LIP & CHG-OFFs		30	60	90	Total	on #		$ Delinquent		on $
June 30, 2016
Single-Family Residential	26,758	211	$	5,632,692	84	37	189	310	1.16	%	$	55,242	0.98	%
Construction	684	649	444,014		—	—	1	1	0.15		—		—
Construction - Custom	921	232	213,465		2	1	1	4	0.43		775		0.36
Land - Acquisition & Development	135	686	92,629		—	—	5	5	3.70		468		0.51
Land - Consumer Lot Loans	1,232	85	104,413		6	2	19	27	2.19		1,993		1.91
Multi-Family	958	1,149	1,100,514		2	—	3	5	0.52		1,384		0.13
Commercial Real Estate	1,055	988	1,042,639		4	3	14	21	1.99		7,811		0.75
Commercial & Industrial	1,832	466	853,769		3	4	34	41	2.24		985		0.12
HELOC	2,907	52	151,339		11	11	26	48	1.65		2,168		1.43
Consumer	5,369	29	156,008		76	41	64	181	3.37		811		0.52
	41,851	234	$	9,791,482	188	99	356	643	1.54	%	$	71,637	0.73	%
March 31, 2016
Single-Family Residential	27,194	208	$	5,660,232	104	45	196	345	1.27	%	$	66,003	1.17	%
Construction	689	575	396,322		—	—	8	8	1.16		141		0.04
Construction - Custom	927	229	212,067		8	5	3	16	1.73		2,914		1.37
Land - Acquisition & Development	142	657	93,354		2	—	6	8	5.63		1,926		2.06
Land - Consumer Lot Loans	1,242	83	103,534		8	4	16	28	2.25		2,233		2.16
Multi-Family	969	1,114	1,079,909		2	—	2	4	0.41		2,014		0.19
Commercial Real Estate	1,060	947	1,003,320		5	1	8	14	1.32		7,902		0.79
Commercial & Industrial	1,831	465	851,358		14	3	27	44	2.40		1,631		0.19
HELOC	2,303	64	148,032		8	5	10	23	1.00		1,178		0.80
Consumer	4,362	38	166,877		138	59	96	293	6.72		1,376		0.82
	40,719	239	$	9,715,005	289	122	372	783	1.92	%	$	87,318	0.90	%
December 31, 2015
Single-Family Residential	27,377	208	$	5,683,134	111	51	189	351	1.28	%	$	67,273	1.18	%
Construction	585	556	325,485		1	2	8	11	1.88		866		0.27
Construction - Custom	944	234	221,327		19	1	5	25	2.65		2,554		1.15
Land - Acquisition & Development	146	595	86,864		5	—	7	12	8.22		1,162		1.34
Land - Consumer Lot Loans	1,250	84	105,063		10	7	16	33	2.64		2,745		2.61
Multi-Family	945	1,026	969,624		3	—	3	6	0.63		2,240		0.23
Commercial Real Estate	1,103	949	1,046,323		4	3	12	19	1.72		10,220		0.98
Commercial & Industrial	1,814	444	804,726		22	1	24	47	2.59		2,084		0.26
HELOC	2,332	64	148,356		9	2	8	19	0.81		1,844		1.24
Consumer	4,757	39	183,431		137	57	29	223	4.69		1,459		0.80
	41,253	232	$	9,574,333	321	124	301	746	1.81	%	$	92,449	0.97	%

7