10-K

United States

Securities and Exchange Commission

Washington, D.C. 20549

____________________________________________________________

FORM 10-K

____________________________________________________________ 

x	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016.

OR

¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from              to

Commission File Number: 001-34654

____________________________________________________________

Washington Federal, Inc.

(Exact name of registrant as specified in its charter)

____________________________________________________________

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) (Zip Code)

Registrant’s telephone number, including area code: (206) 624-7930

_____________________________________ 

Securities registered pursuant to Section 12(b) of the Act:

Title of each Class	Name of each exchange on which registered
Common Stock, $1.00 par value per share	NASDAQ Stock Market

Securities registered pursuant to section 12(g) of the Act:

None

____________________________________ 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  x    No  ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.    Yes  ¨    No  x

Indicate by check mark whether the registrant (1) has filed all reports required by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  x        Accelerated filer  ¨        Non-accelerated filer  ¨        Smaller reporting company  ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  ¨    No  x

The aggregate market value of the registrant's common stock ("Common Stock") held on March 31, 2016, by non-affiliates was $2,044,610,449 based on the NASDAQ Stock Market closing price of $22.65 per share on that date. This is based on 90,269,777 shares of Common Stock that were issued and outstanding on this date, which excludes 1,000,464 shares held by all directors and executive officers of the Registrant.

At November 17, 2016, there were 89,081,623 shares of Common Stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

List hereunder the following documents incorporated by reference and the Part of Form 10-K into which the document is incorporated:

(1) Portions of the Registrant’s Annual Report to Stockholders for the fiscal year ended September 30, 2016, are incorporated into Part II, Items 5-8 and Part III, Item 12 of this Form 10-K.

(2) Portions of the Registrant’s definitive proxy statement for its Annual Meeting of Stockholders to be held on January 18, 2017 are incorporated into Part III, Items 10-14 of this Form 10-K.

PART I

Washington Federal, Inc. (the "Company") makes statements in this Annual Report on Form 10-K that constitute forward-looking statements. Words such as “expects,” “anticipates,” “believes,” “estimates,” “intends,” “forecasts,” “projects” and other similar expressions or future or conditional verbs such as “will,” “should,” “would” and “could” are intended to help identify such forward-looking statements. These statements are not historical facts, but instead represent current expectations, plans or forecasts of the Company and are based on the beliefs and assumptions of the management of the Company and the information available to management at the time that these disclosures were prepared. The Company intends for all such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions that are difficult to predict and often are beyond the Company's control. Actual outcomes and results may differ materially from those expressed in, or implied by, the Company's forward-looking statements.

You should not place undue reliance on any forward-looking statement and should consider the following uncertainties and risks, as well as the risks and uncertainties discussed elsewhere in this report, including under Item 1A. “Risk Factors,” and in any of the Company's other subsequent Securities and Exchange Commission filings, which could cause the Company's future results to differ materially from the plans, objectives, goals, estimates, intentions, and expectations expressed in forward-looking statements:

• a deterioration in economic conditions, including declines in the real estate market and home sale volumes and financial stress on borrowers as a result of the uncertain economic environment;

• the severe effects of the continued economic downturn, including high unemployment rates and declines in housing prices and property values, in the Company's primary market areas;

• the effects of and changes in monetary and fiscal policies of the Board of Governors of the Federal Reserve System and the U.S. Government;

• fluctuations in interest rate risk and changes in market interest rates;

• the Company's ability to make accurate assumptions and judgments about the collectability of its loan portfolio, including the creditworthiness of its borrowers and the value of the assets securing these loans;

• the Company's ability to successfully complete merger and acquisition activities and realize expected strategic and operating efficiencies associated with such activities;

• legislative and regulatory limitations, including those arising under the Dodd-Frank Act and potential limitations in the manner in which the Company conducts its business and undertake new investments and activities;

• the ability of the Company to obtain external financing to fund its operations or obtain this financing on favorable terms;

• changes in other economic, competitive, governmental, regulatory, and technological factors affecting the Company's markets, operations, pricing, products, services and fees;

• the success of the Company at managing the risks involved in the foregoing and managing its business; and

• the timing and occurrence or non-occurrence of events that may be subject to circumstances beyond the Company's control.

All forward-looking statements speak only as of the date on which such statements are made, and the Company undertakes no obligation to update or revise any forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events, changes to future operating results over time, or the impact of circumstances arising after the date the forward-looking statement was made.

2

Item 1. Business

General

Washington Federal, Inc., formed in November 1994, is a Washington corporation headquartered in Seattle, Washington. The Company is a bank holding company that conducts its operations through a federally-insured national bank subsidiary, Washington Federal, National Association (“Bank”). As used throughout this document, the terms “Washington Federal” or the “Company” refer to Washington Federal, Inc. and its consolidated subsidiaries and the term "Bank" refers to the operating subsidiary Washington Federal, National Association.

The Company's fiscal year end is September 30th. All references to 2016, 2015 and 2014 represent balances as of September 30, 2016, September 30, 2015 and September 30, 2014, respectively, or activity for the fiscal years then ended.

The business of the Bank consists primarily of accepting deposits from the general public and investing these funds in loans of various types, including first lien mortgages on single-family dwellings, construction loans, land acquisition and development loans, loans on multi-family, commercial real estate and other income producing properties, home equity loans and business loans. It also invests in certain United States government and agency obligations and other investments permitted by applicable laws and regulations. As of September 30, 2016, Washington Federal has 238 branches located in Washington, Oregon, Idaho, Arizona, Utah, Nevada, New Mexico and Texas. Through its subsidiaries, the Company is also engaged in real estate investment and insurance brokerage activities.

The principal sources of funds for the Company's activities are retained earnings, loan repayments, net deposit inflows, repayments and sales of investments and borrowings. Washington Federal's principal sources of revenue are interest on loans and interest and dividends on investments. Its principal expenses are interest paid on deposits, credit costs, general and administrative expenses, interest on borrowings and income taxes.

The Bank is subject to extensive regulation, supervision and examination by the Office of the Comptroller of the Currency ("OCC"), its primary federal regulator, the Consumer Financial Protection Bureau ("CFPB") and the Federal Deposit Insurance Corporation ("FDIC"), which insures its deposits up to applicable limits. Washington Federal, as a bank holding company, is subject to extensive regulation, supervision and examination by the Board of Governors of the Federal Reserve System (" Federal Reserve"). The CFPB has broad authority to regulate providers of credit, payments and other consumer financial products and services and to bring actions to enforce federal consumer protection legislation as necessary.

The regulatory structure gives the regulatory authorities extensive discretion in connection with their supervisory and enforcement activities. Any change in such regulation, whether by the OCC, the FDIC, the Federal Reserve, the CFPB or the U.S. Congress, could have a significant impact on the Company and its operations. See “Regulation” section below.

3

	Average Statements of Financial Condition
	Year Ended September 30,
	2016						2015						2014
	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
	(In thousands)
Assets
Loans receivable (1)	$	9,511,351	$	454,085	4.77	%	$	8,598,435	$	437,002	5.08	%	$	7,997,566	$	430,850	5.39	%
Mortgage-backed securities	2,737,947		62,949		2.30		3,073,180		71,392		2.32		3,275,846		80,260		2.45
Cash and other investment securities (2)	1,167,596		16,282		1.39		1,634,441		20,363		1.25		1,866,560		20,964		1.12
FHLB & FRB stock	113,664		3,477		3.06		138,443		1,796		1.30		168,078		1,623		.97
Total interest-earning assets	13,530,558		536,793		3.97	%	13,444,499		530,553		3.95	%	13,308,050		533,697		4.01	%
Other assets	1,181,975						1,102,827						969,653
Total assets	$	14,712,533					$	14,547,326					$	14,277,703
Liabilities and Stockholders’ Equity
Customer accounts	$	10,589,817	52,485		.50	%	$	10,656,687	51,054		.48	%	$	10,325,110	58,524		.57	%
FHLB advances	1,992,434		64,059		3.22		1,848,904		66,018		3.57		1,955,205		69,553		3.56
Total interest-bearing liabilities	12,582,251		116,544		.93	%	12,505,591		117,072		.94	%	12,280,315		128,077		1.05	%
Other liabilities	161,446						89,140						27,437
Total liabilities	12,743,697						12,594,731						12,307,752
Stockholders’ equity	1,968,836						1,952,595						1,969,951
Total liabilities and stockholders’ equity	$	14,712,533					$	14,547,326					$	14,277,703
Net interest income/Interest rate spread			$	420,249	3.04	%			$	413,481	3.01	%			$	405,620	2.96	%
Net interest margin (3)					3.11	%					3.08	%					3.05	%

  ___________________

(1) Interest income includes net accretion of deferred loan fees and costs of $29.9 million, $29.7 million, and $27.8 million for year ended 2016, 2015 and 2014, respectively.

(2) Includes cash equivalents and non-mortgage backed security investments, such as U.S. agency obligations, mutual funds, corporate bonds, and municipal bonds.

(3) Net interest income divided by average interest-earning assets.

Lending Activities

4

General. The Company's net portfolio of loans totaled $9.9 billion at September 30, 2016 and represents 66.6% of total assets. The Bank's lending activities include the origination of loans secured by real estate, including long-term fixed-rate and adjustable-rate mortgage loans, adjustable-rate construction loans, adjustable-rate land development loans, fixed-rate and adjustable-rate multi-family loans, fixed-rate and adjustable-rate commercial real estate loans and fixed-rate and adjustable-rate business loans.

The following table sets forth the composition of the Bank’s loan portfolio.

	September 30, 2016				September 30, 2015				September 30, 2014				September 30, 2013				September 30, 2012
	(In thousands)
Non-Acquired loans
Single-family residential	$	5,621,066	51.3	%	$	5,651,845	57.5	%	$	5,560,203	62.6	%	$	5,359,149	64.2	%	$	5,778,922	70.1	%
Construction	1,110,411		10.1		200,509		2.0		140,060		1.6		130,778		1.6		129,637		1.6
Construction - custom	473,069		4.3		396,307		4.0		385,824		4.3		302,722		3.6		211,690		2.6
Land - acquisition & development	116,156		1.1		94,208		1.0		77,832		0.9		77,775		0.9		124,677		1.5
Land - consumer lot loans	101,853		0.9		103,989		1.1		108,623		1.2		121,671		1.5		141,844		1.7
Multi-family	1,118,801		10.2		1,125,722		11.5		917,286		10.3		831,684		10.0		710,140		8.6
Commercial real estate	956,164		8.7		986,270		10.0		591,336		6.7		414,961		5.0		319,210		3.9
Commercial & industrial	946,648		8.6		612,836		6.2		379,226		4.3		243,199		2.9		162,823		2.0
HELOC	134,785		1.2		127,646		1.3		116,042		1.3		112,186		1.3		112,902		1.4
Consumer	137,450		1.3		194,655		2.0		132,590		1.5		47,141		0.6		63,374		0.8
Total non-acquired loans	10,716,403		97.9	%	9,493,987		96.6	%	8,409,022		94.7	%	7,641,266		91.5	%	7,755,219		94.1	%
Acquired loans	115,394		1.1		166,293		1.7		184,188		2.1		250,379		3.0		—		—
Credit impaired acquired loans	89,837		0.8		87,081		0.9		76,507		0.9		98,900		1.2		111,117		1.3
Covered loans	28,974		0.3		75,909		0.8		213,203		2.4		363,046		4.3		374,356		4.5
Total gross loans	10,950,608		100	%	9,823,270		100	%	8,882,920		100	%	8,353,591		100	%	8,240,692		100	%
Less:
Allowance for probable losses	113,494				106,829				114,591				116,741				133,147
Loans in process	879,484				476,796				346,172				276,375				214,187
Discount on acquired loans	11,306				30,095				59,874				100,444				118,563
Deferred net origination fees	35,404				38,916				37,485				36,054				34,421
Total loan contra accounts	1,039,688				652,636				558,122				529,614				500,318
Net Loans	$	9,910,920			$	9,170,634			$	8,324,798			$	7,823,977			$	7,740,374

5

The following table summarizes the Company’s loan portfolio, due for the periods indicated based on contractual terms to maturity or repricing. Amounts are presented prior to deduction of net discounts and premiums, loans in process, deferred net loan origination fees and costs and allowance for loan losses.

September 30, 2016	Total		Less than 1 Year		1 to 5 Years		After 5 Years
	(In thousands)
Single-family residential	$	5,658,830	$	1,051,400	$	2,146,460	$	2,460,970
Construction	1,110,411		859,981		120,611		129,819
Construction – custom	473,068		50,076		156,494		266,498
Land – acquisition and development	118,497		113,726		4,771		—
Land – consumer lot loans	104,567		33,170		56,031		15,366
Multi-family	855,972		9,356		54,396		792,220
Commercial real estate	1,361,957		451,045		910,912		—
Commercial & industrial	978,589		582,958		181,447		214,184
HELOC	149,716		149,164		552		—
Consumer	139,001		74,796		37,168		27,037
	$	10,950,608	$	3,375,672	$	3,668,842	$	3,906,094

The contractual loan payment period for residential mortgage loans originated by the Company normally ranges from 15 to 30 years. Experience during recent years has indicated that, because of prepayments in connection with refinancing and sales of property, residential loans have a weighted average life of four to ten years.

The following summary breaks down the Company's fixed rate and adjustable rate loans by time to maturity or to rate adjustment.

September 30, 2016
Fixed-Rate			Adjustable-Rate
Term To Maturity	Gross Loans		Term To Rate Adjustment	Gross Loans
	(In thousands)			(In thousands)
Within 1 year	$	29,428	Less than 1 year	$	1,362,480
1 to 3 years	326,859		1 to 3 years	1,457,584
3 to 5 years	192,202		3 to 5 years	552,402
5 to 10 years	693,099		5 to 10 years	625,852
10 to 20 years	1,020,654		10 to 20 years	—
Over 20 years	4,690,048		Over 20 years	—
	$	6,952,290		$	3,998,318

Lending Programs and Policies. The Bank's lending activities include the commercial and consumer loans, including the following loan categories.

Single-family residential loans. The Bank primarily originates 30 year fixed-rate mortgage loans secured by single-family residences. Moreover, it is the Bank's general policy to include in the documentation evidencing its conventional mortgage loans a due-on-sale clause, which facilitates adjustment of interest rates on such loans when the property securing the loan is sold or transferred.

All of the Bank's mortgage lending is subject to written, nondiscriminatory underwriting standards, loan origination procedures and lending policies approved by the Company's Board of Directors (the "Board"). Property valuations are required on all real estate loans. Appraisals are prepared by independent appraisers, reviewed by staff of the Bank, and approved by the Bank's management. Property evaluations are sometimes utilized in lieu of appraisals on single-family real estate loans of $250,000 or less and are reviewed by the Bank's staff. Detailed loan applications are obtained to determine the borrower's ability to repay and the more significant items on these applications are verified through the use of credit reports, financial statements or written confirmations.

6

Depending on the size of the loan involved, a varying number of officers of the Bank must approve the loan application before the loan can be granted. Federal guidelines limit the amount of a real estate loan made to a specified percentage of the value of the property securing the loan, as determined by an evaluation at the time the loan is originated. This is referred to as the loan-to-value ratio. The Board sets the maximum loan-to-value ratios for each type of real estate loan offered by the Bank.

When establishing general reserves for loans with loan-to-value ratios exceeding 80% that are not insured by private mortgage insurance, the Bank considers the additional risk inherent in these products, as well as their relative loan loss experience, and provides reserves when deemed appropriate. The total balance for loans with loan-to-value ratios exceeding 80% at origination as of September 30, 2016, was $477 million, with allocated reserves of $9.8 million.

Construction loans. The Bank originates construction loans to finance construction of single-family and multi-family residences as well as commercial properties. Loans made to builders are generally tied to an interest rate index and normally have maturities of two years or less. Loans made to individuals for construction of their home generally are 30 year fixed rate loans. The Bank's policies provide that for residential construction loans, loans may be made for 85% or less of the appraised value of the property upon completion. As a result of activity over the past four decades, the Bank believes that builders of single-family residences in its primary market areas consider it to be a construction lender of choice. Because of this history, the Bank has developed a staff with in-depth land development and construction experience and working relationships with selected builders based on their operating histories and financial stability.

Construction lending involves a higher level of risk than single-family residential lending due to the concentration of principal in a limited number of loans and borrowers and the effects of general economic conditions in the homebuilding industry. Moreover, a construction loan can involve additional risks because of the inherent difficulty in estimating both the estimated cost (including interest) of the project and the property's value at completion of the project.

Land loans. The Bank's land development loans are of a short-term nature and are generally made for 75% or less of the appraised value of the unimproved property. Funds are disbursed periodically at various stages of completion as authorized by the Company's personnel. The interest rate on these loans generally adjusts daily in accordance with a designated index.

Land development loans involve a higher degree of credit risk than long-term financing on owner-occupied real estate. Mitigation of risk of loss on a land development loan is dependent largely upon the accuracy of the initial estimate of the property's value at completion of development compared to the estimated cost (including interest) of development and the financial strength of the borrower.

The Bank's permanent land loans (also called consumer lot loans) are generally made on improved land, with the intent of building a primary or secondary residence. These loans are limited to 80% or less of the appraised value of the property, up to a maximum loan amount of $350,000. The interest rate on permanent land loans is generally fixed for 20 years.

Multi-family residential loans. Multi-family residential (five or more dwelling units) loans generally are secured by multi-family rental properties, such as apartment buildings. In underwriting multi-family residential loans, the Bank considers a number of factors, which include the projected net cash flow to the loan's debt service requirement, the age and condition of the collateral, the financial resources and income level of the borrower and the borrower's experience in owning or managing similar properties. Multi-family residential loans are originated in amounts up to 80% of the appraised value of the property securing the loan.

Loans secured by multi-family residential real estate generally involve a greater degree of credit risk than single-family residential loans and carry larger loan balances. This increased credit risk is a result of several factors, including the concentration of principal in a limited number of loans and borrowers, the effects of general economic conditions on income-producing properties, and the increased difficulty of evaluating and monitoring these types of loans. Furthermore, the repayment of loans secured by multi-family mortgages typically depends upon the successful operation of the related real estate property. If the cash flow from the project is reduced, the borrower's ability to repay the loan may be impaired. The Bank seeks to minimize these risks through its underwriting policies, which require such loans to be qualified at origination on the basis of the property's income and debt service ratio.

It is the Bank's policy to obtain title insurance ensuring that it has a valid first lien on the mortgaged real estate serving as collateral for the loan. Borrowers must also obtain hazard insurance prior to closing and, when required by regulation, flood insurance. Borrowers may be required to advance funds on a monthly basis, together with each payment of principal and interest, to a mortgage escrow account from which the Bank makes disbursements for items such as real estate taxes, hazard insurance premiums and private mortgage insurance premiums when due.

Commercial and industrial loans. The Bank makes various types of business loans to customers in its market area for working capital, acquiring real estate, equipment or other business purposes, such as acquisitions. The terms of these loans generally range from less than one year to a maximum of ten years. The loans are either negotiated on a fixed-rate basis or carry adjustable interest rates indexed to the LIBOR rate, prime rate or another market rate.

7

Commercial loans are made based upon assessment of the borrower's ability and willingness to repay along with an evaluation of secondary repayment sources such as the value and marketability of collateral. Most such loans are extended to closely held businesses and the personal guaranty of the principals is usually obtained. Commercial loans have a relatively high risk of default compared to residential real estate loans. Pricing of commercial loans is based on the credit risk of the borrower with consideration given to the overall relationship of the borrower, including deposits. The acquisition of business deposits is an important focus of this business line. The Bank provides a full line of treasury management products to support the depository needs of its clients.

Consumer loans. The Bank's non-mortgage consumer loan portfolio consists of approximately $118.4 million prime quality student loans acquired from an independent financial investment firm that retains 1% of each loan, plus various other non-mortgage consumer loans obtained through acquisitions.

Home equity loans. The Bank extends revolving lines of credit to consumers that are secured by a first or second mortgage on a single family residence. The interest rate on these loans adjusts monthly indexed to prime. Total loan-to-value ratios when combined with any underlying first liens are limited to 80% or less. Loan terms are a ten year draw period followed by a fifteen year amortization period.

Origination and Purchase of Loans. The Bank has general authority to lend anywhere in the United States; however, its primary lending areas are within the states of Washington, Oregon, Idaho, Arizona, Utah, Nevada, New Mexico and Texas. Loan originations come from a variety of sources. Residential loan originations result from referrals from real estate brokers, walk-in customers, purchasers of property in connection with builder projects that are financed by the Bank, mortgage brokers and refinancings for existing customers. Business purpose loans are obtained primarily by direct solicitation of borrowers and ongoing relationships.

The Bank also purchases loans and mortgage-backed securities when lending rates and mortgage volume for new loan originations in its market area do not fulfill its needs. Over the past few years, single-family residential loan originations were lower than historical levels due to the low interest rate environment and excessive government participation in the mortgage market.

The table below shows the Company's total loan origination, purchase and repayment activities.

Twelve Months Ended September 30,	2016			2015			2014			2013			2012
	(In thousands)
Loans originated (1):
Single-family residential	$	692,575		$	705,741		$	696,999		$	707,310		$	539,222
Construction	900,649			263,532			170,539			173,446			146,494
Construction – custom	421,816			365,220			359,073			304,156			210,308
Land – acquisition & development	59,511			78,818			53,960			22,590			21,323
Land – consumer lot loans	29,661			21,422			12,441			14,324			13,169
Multi-family	361,261			349,442			239,352			309,636			189,692
Commercial real estate	353,265			600,610			258,367			163,577			87,471
Commercial & industrial	1,051,950			642,309			332,871			225,809			143,849
HELOC	74,538			74,455			47,054			44,872			38,750
Consumer	3,308			1,966			1,359			315			—
Total loans originated	3,948,534			3,103,515			2,172,015			1,966,035			1,390,278
Loans purchased (2)	105,420			279,936			211,228			646,408			129,670
Loan principal repayments	(2,935,167		)	(2,418,547		)	(1,857,597		)	(2,353,061		)	(1,964,593		)
Net change in loans in process, discounts, etc. (3)	(378,501		)	(119,068		)	(24,825		)	(175,779		)	(133,041		)
Net loan activity increase (decrease)	$	740,286		$	845,836		$	500,821		$	83,603		$	(577,686	)
Beginning balance	$	9,170,634		$	8,324,798		$	7,823,977		$	7,740,374		$	8,318,060
Ending balance	$	9,910,920		$	9,170,634		$	8,324,798		$	7,823,977		$	7,740,374

 ___________________

(1) Includes undisbursed loan in process and for years prior to 2016 does not include savings account loans, which were not material during the periods indicated.

(2) Includes non-covered loans acquired through acquisitions and whole loan purchases.

(3) Includes non-cash transactions.

8

Interest Rates, Loan Fees and Service Charges. Interest rates charged by the Bank on mortgage loans are primarily determined by the competitive loan rates offered in its lending areas and in the secondary market. Mortgage loan rates reflect factors such as general interest rates, the supply of money available to the industry and the demand for such loans. General economic conditions, the regulatory programs and policies of federal and state agencies, including the FRB’s monetary policies, changes in tax laws and governmental budgetary programs influence these factors.

The Bank receives fees for originating loans in addition to various fees and charges related to existing loans, including prepayment charges, late charges and assumption fees. In making one-to-four- family home mortgage loans, the Bank normally charges an origination fee and as part of the loan application, the borrower pays the Bank for out-of-pocket costs, such as the appraisal fee, whether or not the borrower closes the loan. The interest rate charged is normally the prevailing rate at the time the loan application is approved and accepted. In the case of construction loans, the Bank normally charges an origination fee. Loan origination fees and other terms of multi-family residential loans are individually negotiated.

Non-Performing Assets. When a borrower violates a condition of a loan, the Bank attempts to cure the default by contacting the borrower. In most cases, defaults are cured promptly. If the default is not cured within an appropriate time frame, typically 90 days, the Bank may institute appropriate action to collect the loan, such as making demand for payment or initiating foreclosure proceedings on the collateral. If foreclosure occurs, the collateral will typically be sold at public auction and may be purchased by the Bank.

Loans are placed on nonaccrual status when, in the judgment of management, the probability of collecting interest or principal is deemed to be insufficient to warrant further accrual. When a loan is placed on nonaccrual status, previously accrued but unpaid interest is deducted from interest income. The Bank does not accrue interest on loans 90 days past due or more. See Note A to the Consolidated Financial Statements included in Item 8 hereof for additional information.

The Bank will consider modifying the interest rate and terms of a loan if it determines that a modification is deemed to be the best option available for collection in full or to minimize the loss to the Bank. Most loans restructured in troubled debt restructurings ("TDRs") are accruing and performing loans where the borrower has proactively approached the Bank about a modification due to temporary financial difficulties. Each request is individually evaluated for merit and likelihood of success. The modification of these loans is typically a payment reduction through a rate reduction of from 100 to 200 bps for a specific term, usually six to twelve months. Interest-only payments may also be approved during the modification period. Principal forgiveness generally is not an available option for restructured loans. As of September 30, 2016, single-family residential loans comprised 87.2% of restructured loans. The Bank reserves for restructured loans within its allowance for loan loss methodology by taking into account the following performance indicators: 1) time since modification, 2) current payment status and 3) geographic market conditions.

Real estate acquired by foreclosure or deed-in-lieu thereof (“REO” or “Real Estate Owned”) is classified as real estate held for sale. When property is acquired, it is recorded at the fair market value less estimated selling costs at the date of acquisition. Interest accrual ceases on the date of acquisition and all costs incurred in maintaining the property from that date forward are expensed as incurred. Costs incurred for the improvement or development of such property is capitalized. See Note A to the Consolidated Financial Statements included in Item 8 hereof for additional information.

9

The following table sets forth information regarding the Company's restructured and non-accrual loans and REO.

September 30,	2016			2015			2014			2013			2012
	(In thousands)
Performing restructured loans	$	251,583		$	289,587		$	350,653		$	391,415		$	403,238
Non-performing restructured loans	9,948			13,126			24,090			24,281			30,040
Total restructured loans	261,531			302,713			374,743			415,696			433,278
Non-accrual loans:
Single-family residential	33,148			59,074			74,067			100,460			131,193
Construction	—			754			1,477			4,560			10,634
Construction – custom	—			732			—			—			539
Land – acquisition & development	58			—			811			2,903			13,477
Land – consumer lot loans	510			1,273			2,637			3,337			5,149
Multi-family	776			2,558			1,742			6,573			4,185
Commercial real estate	7,100			2,176			5,106			11,736			7,653
Commercial & industrial	583			—			7			477			16
HELOC	239			563			795			263			198
Consumer	—			680			789			990			383
Total non-accrual loans (1)	42,414			67,810			87,431			131,299			173,427
Real estate owned	29,027			61,098			59,880			82,317			99,478
Total non-performing assets	71,441			128,908			147,311			213,616			272,905
Total non-performing assets and performing restructured loans	$	323,024		$	418,495		$	497,964		$	605,031		$	676,143
Total non-performing assets and restructured loans as a percent of total assets	2.17		%	2.87		%	3.37		%	4.62		%	5.42		%
Total non-performing assets to total assets	0.48		%	0.88		%	1.00		%	1.63		%	2.19		%

 ___________________

(1) For the year ended September 30, 2016, the Company recognized $5,434,000 in interest income on cash payments received from borrowers on non-accrual loans. The Company would have recognized interest income of $2,348,000 for the same period had these loans performed according to their original contract terms. The recognized interest income may include more than twelve months of interest for some of the non-accrual loans that were brought current or paid off. In addition to the non-accrual loans reflected in the above table, the Company had $117,536,000 of loans that were less than 90 days delinquent at September 30, 2016 but were classified as substandard for one or more reasons. If these loans were deemed non-performing, the Company's ratio of total non-performing assets and performing restructured loans as a percent of total assets would have increased to 2.96% at September 30, 2016. For a discussion of the Company's policy for placing loans on nonaccrual status, see Note A to the Consolidated Financial Statements included in Item 8 hereof.

Allowance for Loan Losses. The Company maintains an allowance for loan losses to absorb losses inherent in the loan portfolio. The amount of this allowance is based on ongoing, quarterly assessments of the probable and estimable losses inherent in the loan portfolio. The Bank’s method for assessing the appropriateness of the allowance is to apply a loss percentage factor to the different loan types. The loss percentage factor is made up of two parts - the historical loss factor (“HLF”) and the qualitative loss factor (“QLF”). The HLF takes into account historical charge-offs by loan type. The Company uses an average of historical loss rates for each loan category multiplied by an estimated loss emergence period. The QLFs are based on management's continuing evaluation of the pertinent factors underlying the quality of the loan portfolio, including changes in the size and composition of the loan portfolio, actual loan loss experience, current economic conditions, collateral values, geographic concentrations, seasoning of the loan portfolio, specific industry conditions, and the duration of the current business cycle. These factors are considered by loan type. Specific allowances are established in cases where management has identified conditions or circumstances related to a loan that management believes indicate the probability that a loss has been incurred. The Company has also established a reserve for unfunded commitments.

As part of the process for determining the adequacy of the allowance for loan losses, management reviews the loan portfolio for specific weaknesses and considers the factors noted above. The recovery of the carrying value of loans is susceptible to future market conditions

10

beyond the Bank's control, which may result in losses or recoveries differing from those provided. In those cases, a portion of the allowance is then allocated to reflect the estimated loss exposure.

The following table provides detail regarding the Company's allowance for loan losses.

Twelve Months Ended September 30,	2016			2015			2014			2013			2012
	(In thousands)
Beginning balance	$	106,829		$	114,591		$	116,741		$	133,147		$	160,926
Charge-offs:
Single-family residential	3,106			5,524			8,529			20,947			53,789
Construction	—			388			949			1,446			4,916
Construction – custom	60			—			—			481			—
Land – Acquisition & development	42			38			541			3,983			16,978
Land – consumer lot loans	732			459			658			1,363			2,670
Multi-family	—			—			—			1,043			1,393
Commercial real estate	103			1,711			105			747			814
Commercial & industrial loans	941			3,354			826			1,145			249
HELOC	54			66			48			163			232
Consumer	962			3,060			3,443			2,783			3,538
	6,000			14,600			15,099			34,101			84,579
Recoveries:
Single-family residential	3,251			13,403			17,684			9,416			8,164
Construction	745			120			97			501			711
Construction – custom	60			—			—			—			—
Land – Acquisition & development	8,220			207			3,071			4,105			1,341
Land – consumer lot loans	5			221			22			40			—
Multi-family	—			220			—			171			504
Commercial real estate	1,812			735			33			17			225
Commercial & industrial loans	2,933			1,374			5,043			95			2,366
HELOC	21			2			—			—			66
Consumer	2,018			3,688			3,513			2,000			1,480
	19,065			19,970			29,463			16,345			14,857
Net charge-offs (recoveries)	(13,065		)	(5,370		)	(14,364		)	17,756			69,722
Provision (release) for loan losses and transfers	(6,400		)	(13,132		)	(16,514		)	1,350			41,943
Ending balance (1)	$	113,494		$	106,829		$	114,591		$	116,741		$	133,147
Ratio of net charge-offs (recoveries) to average loans outstanding	(0.14		)%	(0.06		)%	(0.18		)%	0.23		%	0.87		%

 __________________

(1) This does not include a reserve for unfunded commitments of $3,235,000; $3,085,000, and $2,910,000 as of September 30, 2016, 2015 and 2014, respectively.

11

The following table sets forth the amount of the Company’s allowance for loan losses by loan category.

September 30,	2016						2015						2014						2013						2012
	ALLL Amount		Loans to Total Loans (1)		Coverage Ratio (2)		ALLL Amount		Loans to Total Loans (1)		Coverage Ratio (2)		ALLL Amount		Loans to Total Loans (1)		Coverage Ratio (2)		ALLL Amount		Loans to Total Loans (1)		Coverage Ratio (2)		ALLL Amount		Loans to Total Loans (1)		Coverage Ratio (2)
	(In thousands)
Allowance allocation:
Single-family residential	$	37,796	51.5	%	0.7	%	$	47,347	57.8	%	0.8	%	$	62,067	62.6	%	0.8	%	$	64,184	64.3	%	0.8	%	$	81,815	70.2	%	0.8	%
Construction	19,838		10.1		4.0		6,680		2.0		5.1		6,742		1.6		5.1		8,407		1.6		5.1		12,060		1.6		5.1
Construction – custom	1,080		4.3		0.5		990		4.0		0.5		1,695		4.3		50.0		882		3.6		50.0		347		2.6		50.0
Land – acquisition & development	6,023		1.1		6.6		5,781		1.0		7.7		5,592		0.9		7.7		9,165		1.0		7.7		15,598		1.6		7.7
Land – consumer lot loans	2,535		1.0		2.7		2,946		1.1		2.8		3,077		1.3		2.8		3,552		1.5		2.8		4,937		1.7		2.8
Multi-family	6,925		10.3		0.6		5,304		11.6		0.5		4,248		10.4		0.5		3,816		10.0		0.5		5,280		8.6		0.5
Commercial real estate	8,588		10.0		0.9		8,960		11.7		1.0		7,548		8.5		1.0		5,595		7.5		1.0		1,956		4.9		1.0
Commercial & industrial	28,008		8.9		2.9		24,980		6.7		3.9		17,223		4.9		3.9		16,614		3.9		3.9		7,626		2.0		3.9
HELOC	813		1.3		0.6		902		1.4		0.7		928		1.5		0.7		1,002		1.6		0.7		965		1.5		0.7
Consumer	1,888		1.3		1.4		2,939		2.0		1.5		3,227		1.6		1.5		3,524		0.7		1.5		2,563		0.8		1.5
Covered loans	—		0.2				—		0.7				2,244		2.4				—		4.3				—		4.5
Total allowance for loan losses (3)	$	113,494	100	%			$	106,829	100	%			$	114,591	100	%			$	116,741	100	%			$	133,147	100	%

 ___________________

(1) Represents the gross loan amount for each respective loan category as a % of total gross loans.

(2) Represents the allocated allowance for each respective loan category as a % of gross loans for that same category, excluding covered loans and acquired loans outstanding that are not subject to the allowance for loan loss.

(3) This does not include a reserve for unfunded commitments of $3,235,000; $3,085,000; and $2,910,000 as of September 30, 2016, 2015 and 2014, respectively.

12

Investment Activities

As a national association, the Bank is obligated to maintain adequate liquidity and does so by holding cash and cash equivalents and by investing in securities. These investments may include, among other things, certain certificates of deposit, repurchase agreements, bankers’ acceptances, loans to financial institutions whose deposits are federally-insured, federal funds, United States government and agency obligations and mortgage-backed securities.

The following table sets forth the composition of the Company’s investment portfolio.

September 30,	2016				2015				2014
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
U.S. government and agency securities	$	263,946	$	259,351	$	486,968	$	482,464	$	729,299	$	731,943
Equity securities	100,422		101,824		100,422		101,952		100,500		101,387
Corporate debt securities	461,530		461,138		506,172		505,800		505,741		509,007
Municipal bonds	24,013		27,670		23,970		27,123		20,402		23,681
Agency pass-through certificates	2,396,554		2,434,597		2,788,003		2,797,938		3,109,904		3,083,726
Commercial MBS	80,318		79,870		103,131		102,706		98,851		98,916
	$	3,326,783	$	3,364,450	$	4,008,666	$	4,017,983	$	4,564,697	$	4,548,660

The table below shows the investment portfolio categorized by maturity band.

September 30, 2016	Amortized Cost		Weighted Average Yield
	(In thousands)
Due in less than 1 year	$	299,434	1.29	%
Due after 1 year through 5 years	237,954		2.32
Due after 5 years through 10 years	165,710		1.45
Due after 10 years	2,623,685		2.88
	$	3,326,783	2.62	%

Sources of Funds

General. Deposits are the primary source of the Bank’s funds for use in lending and other general business purposes. In addition to deposits, the Bank derives funds from loan repayments, advances from the FHLB, other borrowings, and from investment repayments and sales. Loan repayments are a relatively stable source of funds, while deposit inflows and outflows are influenced by general interest rates, money market conditions, the availability of FDIC insurance and the market perception of the Company’s financial stability. Borrowings may be used on a short-term basis to compensate for reductions in normal sources of funds, such as deposit inflows at lower than projected levels. Borrowings may also be used on a longer-term basis to support expanded activities and to manage interest rate risk.

Deposits. The Bank relies on a mix of deposit types, including business and personal checking accounts, term certificates of deposit, and other savings deposit alternatives that have no fixed term, such as money market accounts and passbook savings accounts The Bank offers several consumer checking account products, both interest bearing and non-interest bearing and three business checking accounts, two of which target small businesses with relatively simple and straightforward banking needs and one for larger, more complex business depositors with an account that prices monthly based on the volume and type of activity. Savings and money market accounts are offered to both businesses and consumers, with interest paid after certain threshold amounts are exceeded.

Certificates of deposit with a maturity of one year or less have penalties for premature withdrawal equal to 90 days of interest. When the maturity is greater than one year but less than four years, the penalty is 180 days of interest. When the maturity is greater than four years, the penalty is 365 days interest. Early withdrawal penalty fee income for the year ended 2016, 2015 and 2014 amounted to $450,000, $546,000 and $552,000, respectively.

13

The Bank’s deposits are obtained primarily from residents of Washington, Oregon, Idaho, Arizona, Utah, Nevada, New Mexico and Texas. The Bank does not advertise for deposits outside of these states.

The following table sets forth certain information relating to the Company’s deposits.

September 30,	2016				2015				2014
	Amount		Rate		Amount		Rate		Amount		Rate
	(In thousands)
Balance by interest rate:
Checking accounts	$2,721,721		0.06	%	$2,555,766		0.06	%	$2,331,170		0.06	%
Passbook and statement accounts	820,980		0.10		700,794		0.10		622,546		0.10
Money market accounts	2,462,891		0.15		2,564,318		0.13		2,536,971		0.18
	6,005,592				5,820,878				5,490,687
Fixed-rate time deposit accounts:
Under 1.00%	3,268,272				3,126,119				3,454,682
1.00% to 1.99%	1,292,612				1,177,356				1,069,476
2.00% to 2.99%	34,376				501,409				602,683
3.00% to 3.99%	—				5,156				98,610
4.00% or higher	—				785				790
	4,595,260				4,810,825				5,226,241
	$	10,600,852			$	10,631,703			$	10,716,928

The following table sets forth, by various interest rate categories, the amount of fixed-rate time deposits that mature during the periods indicated.

	Maturing in
September 30, 2016	1 to 3 Months		4 to 6 Months		7 to 12 Months		13 to 24 Months		25 to 36 Months		37 to 60 Months		Total
	(In thousands)
Fixed-rate time deposits:
Under 1.00%	$	865,407	$	900,163	$	1,126,800	$	375,090	$	812	$	—	$	3,268,272
1.00 to 1.99%	264		772		956		418,345		297,121		575,154		1,292,612
2.00% to 2.99%	—		538		—		—		—		33,838		34,376
3.00 to 3.99%	—		—		—		—		—		—		—
4.00% or higher	—		—		—		—		—		—		—
Total	$	865,671	$	901,473	$	1,127,756	$	793,435	$	297,933	$	608,992	$	4,595,260

Historically, a significant number of certificate of deposit holders roll over their balances into new certificates of the same term at the Bank’s then current rate. To ensure a continuity of this trend, the Bank expects to continue to offer market rates of interest. Its ability to retain maturing deposits in certificate accounts is difficult to project; however, the Bank believes that by competitively pricing these certificates, levels deemed appropriate by management can be achieved on a continuing basis.

At September 30, 2016, the Bank had $442,510,000 of certificates of deposit in amounts of $250,000 or more outstanding, maturing as follows: $88,667,000 within 3 months; $89,305,000 over 3 months through 6 months; $97,485,000 over 6 months through 12 months; and $167,053,000 thereafter.

14

Borrowings. The Bank has a credit line with the Federal Home Loan Bank of Des Moines ("FHLB") equal to 49.0% of total assets. The Bank obtains advances from the FHLB upon the security of the FHLB capital stock it owns and certain of its loans, provided certain standards related to credit worthiness have been met. See “Regulation-Washington Federal-Federal Home Loan Bank System” below. Such advances are made pursuant to several different credit programs. Each credit program has its own interest rate and range of maturities, and the FHLB prescribes acceptable uses to which the advances pursuant to each program may be put, as well as limitations on the size of such advances. Depending on the program, such limitations are based either on a fixed percentage of assets or the Company's credit worthiness. The FHLB is required to review its credit limitations and standards at least every two years. FHLB advances have, from time to time, been available to meet seasonal and other withdrawals of savings accounts and to expand the Bank's lending program. The Bank had $2,080,000,000 of FHLB advances outstanding at September 30, 2016.

The Bank may need to borrow funds for short periods of time to meet day-to-day financing needs. In these instances, funds are borrowed from other financial institutions or the Federal Reserve, for periods generally ranging from one to seven days at the then current borrowing rate. At September 30, 2016, the Bank had no such short-term borrowings.

The Bank also offers two forms of repurchase agreements to its customers. One form has an interest rate that floats like that of a money market deposit account. The other form has a fixed rate and is offered in a minimum denomination of $100,000. Both forms are fully collateralized by securities. These obligations are not insured by the FDIC and are classified as borrowings for regulatory purposes. The Bank had $48,920,000 of such agreements outstanding at September 30, 2016.

The following table presents additional information regarding the Company's borrowings.

Twelve Months Ended September 30,	2016			2015			2014
	(In thousands)
FHLB advances:
Average balance outstanding	$	1,992,434		$	1,848,904		$	1,955,205
Maximum amount outstanding at any month-end during the period	2,080,000			1,930,000			2,083,226
Weighted-average interest rate during the period (1)	3.22		%	3.57		%	3.56		%
Securities sold to customers under agreements to repurchase:
Average balance outstanding	$	49,885		$	52,382		$	46,905
Maximum amount outstanding at any month-end during the period	56,310			62,315			51,615
Weighted-average interest rate during the period (1)	0.22		%	0.23		%	0.25		%
Total average borrowings:	$	2,042,319		$	1,901,286		$	2,002,110
Weighted-average interest rate on total average borrowings (1)	3.14		%	3.48		%	3.42		%

 ___________________

(1) Interest expense divided by average daily balances.

Other Ratios

The following table sets forth certain ratios related to the Company.

	Twelve Months Ended September 30,
	2016		2015		2014
Return on assets (1)	1.12	%	1.10	%	1.10	%
Return on equity (2)	8.33		8.21		7.99
Average equity to average assets	13.27		13.42		13.37
Dividend payout ratio (3)	30.43		31.85		26.45

___________________

(1) Net income divided by average total assets.

(2) Net income divided by average equity.

(3) Dividends paid per share divided by net income per share.

15

Rate/Volume Analysis

The table below sets forth certain information regarding changes in interest income and interest expense of the Company for the years indicated. For each category of interest-earning asset and interest-bearing liability, information is provided on changes attributable to: (1) changes in volume (changes in volume multiplied by old rate) and (2) changes in rate (changes in rate multiplied by old average volume). The change in interest income and interest expense attributable to changes in both volume and rate has been allocated proportionately to the change due to volume and the change due to rate.

	Twelve Months Ended September 30,
	2016 vs. 2015 Increase (Decrease) Due to									2015 vs. 2014 Increase (Decrease) Due to									2014 vs. 2013 Increase (Decrease) Due to
	Volume			Rate			Total			Volume			Rate			Total			Volume		Rate			Total
	(In thousands)									(In thousands)									(In thousands)
Interest income:
Loan portfolio	$	44,395		$	(27,312	)	$	17,083		$	30,507		$	(24,355	)	$	6,152		$	10,399	$	(34,464	)	$	(24,065	)
Mortgage-backed securities	(7,824		)	(619		)	(8,443		)	(4,941		)	(3,927		)	(8,868		)	15,032		16,708			31,740
Investments (1)	(7,283		)	4,883			(2,400		)	(2,594		)	2,166			(428		)	4,291		5,440			9,731
All interest-earning assets	29,288			(23,048		)	6,240			22,972			(26,116		)	(3,144		)	29,722		(12,316		)	17,406
Interest expense:
Customer accounts	(370		)	1,801			1,431			1,879			(9,349		)	(7,470		)	8,670		(18,049		)	(9,379		)
FHLB advances and other borrowings	3,900			(5,859		)	(1,959		)	(3,358		)	(177		)	(3,535		)	2,340		(1,043		)	1,297
All interest-bearing liabilities	3,530			(4,058		)	(528		)	(1,479		)	(9,526		)	(11,005		)	11,010		(19,092		)	(8,082		)
Change in net interest income	$	25,758		$	(18,990	)	$	6,768		$	24,451		$	(16,590	)	$	7,861		$	18,712	$	6,776		$	25,488

___________________

(1) Includes interest on cash equivalents and dividends on stock of the FHLB of Des Moines and FRB of San Francisco.

Interest Rate Risk

The primary source of income for the Company is net interest income, which is the difference between the interest income generated by interest-earning assets and the interest expense incurred for interest-bearing liabilities. The level of net interest income is a function of the average balance of interest-earning assets and interest-bearing liabilities and the difference between the yield on earning assets and the cost of interest-bearing liabilities. Both the pricing and mix of the Company's interest-earning assets and interest-bearing liabilities influence these factors. All else being equal, if the interest rates on the Company's interest-bearing liabilities increase at a faster pace than the interest rates on its interest-earning assets, the result would be a reduction in net interest income and with it, a reduction in net earnings.

The net interest margin is measured using the interest income and expense over the average assets and liabilities for the period. The net interest margin increased to 3.11% for the year ended September 30, 2016 from 3.08% for the year ended September 30, 2015. The yield on earning assets increased 2 basis points to 3.97% and the cost of interest bearing liabilities declined by 1 basis point to 0.93%. The higher yield on earning assets is the result of changes in the asset mix as the average balance of mortgage-backed securities and other investment securities decreased while the average balance of loans receivable increased. The decrease in interest cost was due to changes in the mix of customer deposits and FHLB advances.

Interest rate risk arises in part due to the Bank's significant holdings of fixed-rate single-family home loans, which are longer-term than customer accounts that constitute its primary liabilities. Accordingly, assets do not usually respond as quickly to changes in interest rates as liabilities. In the absence of management action, net interest income can be expected to decline when interest rates rise and to expand when interest rates fall. Shortening the maturity or repricing of the investment portfolio is one action that management can take. The composition of the investment portfolio was 39.7% variable rate and 60.3% fixed rate as of September 30, 2016 to provide some protection against rising rates. In addition, the Bank is producing more short term or variable rate loans and has increased less rate sensitive transaction accounts to 56.7% of the deposit portfolio.

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The Company's balance sheet strategy, in conjunction with low operating costs, has allowed the Company to manage interest rate risk, within guidelines established by the Board, through all interest rate cycles. It is management's objective to grow the dollar amount of net interest income, through the rate cycles, acknowledging that there will be some periods of time when that will not be feasible.

The chart below shows the volatility of the Company's period end net interest spread (dotted line which is measured against the right axis) compared to the relatively consistent growth in net interest income (solid line which is measured against the left axis). As noted above, this consistency is accomplished by managing the size and composition of the balance sheet through different rate cycles.

The following table shows the estimated repricing periods for earning assets and paying liabilities.

September 30, 2016	Repricing Period
	Within One Year			After 1 year - before 6 Years			Thereafter			Total
	(In thousands)
Earning assets (1)	$	5,095,776		$	4,885,359		$	3,763,346		$	13,744,481
Paying liabilities	(6,599,318		)	(3,922,868		)	(2,174,161		)	(12,696,347		)
Excess (liabilities) assets	$	(1,503,542	)	$	962,491		$	1,589,185
Excess as % of total assets	(10.10		)%
Policy limit for one year excess	(20.00		)%

(1) Asset repricing period includes estimated prepayments based on historical activity

At September 30, 2016, the Company had approximately $1,503,542,000 more in liabilities subject to maturity or repricing in the next year than assets, which resulted in a one-year repricing gap of (10.1)% of total assets. This compares to the (13.4)% gap as of September 30, 2015. A negative repricing gap implies that funding costs will change more rapidly than interest income on earning assets with movements in interest rates. A negative repricing gap typically results in lower margins when interest rates rise and higher margins when interest rates decline. The interest rate gap analysis provides management with a high-level indication of interest rate risk, but it is

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considered less reliable than more detailed modeling. Cash and cash equivalents of $450,368,000 and stockholders' equity of $1,975,731,000 provide management with additional flexibility in managing interest rate risk going forward. If management were to take steps to change the size and/or mix of the balance sheet or slow the repricing of deposit rates upward, rising rates might not cause a decrease in net interest income.

The following table shows the potential impact of rising interest rates on net income for one year. The Company's focus is primarily on the impact of rising rates, given the negative gap position which implies that generally when rates fall income should increase and when rates increase income is at risk to decrease (assuming no change in the size or composition of the balance sheet).

It is important to note that this is not a forecast or prediction of future events, but is used as a tool for measuring potential risk. This analysis assumes zero balance sheet growth and a constant percentage composition of assets and liabilities.

	Potential Impact on Net Interest Income
Basis Point Increase in Interest Rates	September 30, 2016		September 30, 2015
	(In thousands)
100	$	4,834	$	(413	)
200	12,938		(9,288		)
300	7,382		(22,292		)

Actual results will differ from the assumptions used in this model, as management monitors and adjusts both the size and the composition of the balance sheet in order to respond to changing interest rates. In a rising interest rate environment, it is likely that the Company will grow its balance sheet to offset margin compression that may occur. Improvement in the net income sensitivity during the year is the result of changing the loan and deposit mix toward shorter term and/or floating rate instruments.

Another method used to quantify interest rate risk is the net portfolio value (“NPV”) analysis. This analysis calculates the difference between the present value of interest-bearing liabilities and the present value of expected cash flows from interest-earning assets and off-balance-sheet contracts. The following tables set forth an analysis of the Company’s interest rate risk as measured by the estimated changes in NPV resulting from instantaneous and sustained parallel shifts in the yield curve (measured in 100-basis-point increments).

The tables below express the NPV under varying interest scenarios.

September 30, 2016
Change in Interest Rates	Estimated NPV Amount		Estimated (Decrease) in NPV Amount			NPV as % of Assets
(Basis Points)	(In thousands)		(In thousands)
300	$	1,784,802	$	(784,757	)	13.19	%
200	2,090,469		(479,090		)	14.83	%
100	2,354,413		(215,146		)	16.09	%
No change	2,569,559		—			16.94	%

September 30, 2015
Change in Interest Rates	Estimated NPV Amount		Estimated (Decrease) in NPV Amount			NPV as % of Assets
(Basis Points)	(In thousands)		(In thousands)
300	$	1,852,417	$	(874,372	)	14.03	%
200	2,190,841		(535,948		)	15.91
100	2,500,300		(226,490		)	17.45
No change	2,726,790		—			18.39

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As of September 30, 2016, the Company was in compliance with all of its interest rate risk policy guidelines.

Subsidiaries

Washington Federal is a bank holding company that conducts its primary business through its only directly-owned subsidiary, the Bank. The Bank has a national bank charter with the OCC. The Bank has three active wholly owned subsidiaries, discussed further below.

WAFD Insurance Group, Inc. is incorporated under the laws of the state of Washington and is an insurance agency that offers a full line of individual and business insurance policies to customers of the Bank, as well as to the general public. As of September 30, 2016 and September 30, 2015, WAFD Insurance Group, Inc. had total assets of $12,206,000 and $10,436,000, respectively.

Statewide Mortgage Services Company is incorporated under the laws of the state of Washington. As of September 30, 2016 and September 30, 2015, Statewide Mortgage Services Company had total assets of $1,376,000 and $14,182,000, respectively. The decrease in assets primarily relates to the sale-leaseback of a branch property in late 2016 that resulted in a gain of $3,800,000.

Washington Services, Inc. is incorporated under the laws of the state of Washington. It holds certain branch properties and equipment and also acts as a trustee under deeds of trust as to which the Bank is beneficiary. As of September 30, 2016 and September 30, 2015, Washington Services, Inc. had total assets of $214,000.

Employees

As of September 30, 2016, the Company had approximately 1,806 employees, including the full-time equivalent of 27 part-time employees and its service corporation employees. None of these employees are represented by a collective bargaining agreement.

Regulation

Set forth below is a brief description of certain laws and regulations that relate to the regulation of the Company and the Bank. The description of these laws and regulations, and descriptions of laws and regulations contained elsewhere herein, do not purport to be complete and are qualified in their entirety by reference to applicable laws and regulations. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) amended certain federal banking laws.

The Company

General. The Company is registered as a bank holding company and is subject to regulation, examination, supervision and reporting requirements of the Federal Reserve.

Restrictions on Activities and Acquisitions. Bank holding companies are subject to a variety of restrictions on their activities and the acquisitions they can make. Generally, the activities or acquisition of a bank holding company that is not a financial holding company are limited to those that constitute banking or managing or controlling banks or which are closely related to banking. In addition, without the prior approval of the Federal Reserve, bank holding companies are generally prohibited from acquiring more than 5% of the outstanding shares of any class of voting securities of a bank or bank holding company, taking any action that causes a bank to become a subsidiary of the bank holding company, acquiring all or substantially all of the assets of a bank, or merging with another bank holding company.

Control of Company or Bank. Pursuant to the Change in Bank Control Act, (the “CIBC Act”) individuals, corporations or other entities acquiring Company equity interests may, alone or together with other investors, be deemed to control a holding company or a bank. If an acquisition is deemed to constitute control of the holding company or bank and is not subject to approval under the Bank Holding Company Act or certain other statutes, such person or group will be required to file a notice under the CIBC Act. Generally, ownership of, or power to vote, more than 25% of any class of voting securities constitutes control. In the case of a bank or bank holding company the securities of which are registered with the Securities and Exchange Commission ("SEC"), ownership of or power to vote more than 10% of any class of voting securities creates a presumption of control.

Source of Strength. Under long-standing Federal Reserve policy, a bank holding company is expected to serve as a source of financial and management strength to its subsidiary bank. Under this policy, a bank holding company is expected to stand ready to provide adequate capital funds to its subsidiary bank during periods of financial adversity and to maintain financial flexibility and capital raising capacity to assist its subsidiary bank. The Dodd-Frank Act codified the source of strength doctrine by adopting

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a statutory provision requiring, among other things, that bank holding companies serve as a source of financial strength to their subsidiary banks.

Restrictions on Company Dividends. The Company’s ability to pay dividends to its shareholders is affected by several factors. Since the Company is a separate legal entity from the Bank and its subsidiaries and does not have significant operations of its own, the Company may not be able to pay dividends to its shareholders if the Bank is unable to pay dividends to the Company. The Bank’s ability to pay dividends is subject to various regulatory restrictions.

See “Washington Federal, National Association, wholly owned subsidiary (Bank) - Restrictions on Dividends.” In addition, the Company’s ability to pay dividends is subject to rules and policies of the Federal Reserve. It is the policy of the Federal Reserve that bank holding companies should pay cash dividends only out of income available over the past year and only if prospective earnings retention is consistent with the company’s expected future needs and financial condition. New capital rules adopted by the Federal Reserve, effective in January 2015, may limit the Company’s ability to pay dividends if the Company fails to meet certain requirements under the rules.

See “Washington Federal, National Association, wholly owned operating subsidiary (Bank) - Restrictions on Dividends.”

Since the Company is a Washington state corporation, it is also subject to restrictions under Washington corporate law relating to dividends. Generally under Washington law, a corporation may not pay a dividend if, after giving effect to the dividend, the corporation would be unable to pay its liabilities as they become due in the ordinary course of business or the corporation’s total assets would be less than the sum of its total liabilities plus (with some exceptions) the amount that would be needed, if the corporation were to be dissolved at the time of the dividend payment, to satisfy the dissolution preferences of senior equity securities.

Washington Federal, National Association, wholly-owned operating subsidiary (Bank)

General. The Bank is a federally-chartered national bank and certain deposits of the bank are federally insured and backed by the full faith and credit of the United States government. Accordingly, the Bank is subject to broad federal regulation and oversight by its primary regulator, the OCC, extending to all aspects of its operations. The Bank is a member of the FDIC and its deposits are insured up to applicable limits of the Depository Insurance Fund (“DIF”), which is administered by the FDIC. As a result, the FDIC has certain regulatory and examination authority over the Bank.

As a national bank, the Bank is required to be a member of the Federal Reserve. As a member, it is required to purchase and maintain stock in the Federal Reserve Bank of San Francisco (“FRBSF”) in an amount equal to 3.00% of the paid-up capital stock and surplus of the Bank and have available another 3.00% in reserves. At September 30, 2016, the Bank had $24.0 million in FRBSF stock, which was in compliance with this requirement.

Federal Institution Regulations. On July 17, 2013, the Bank completed its conversion from a federally chartered savings association to a national bank charter with the OCC. In addition, the Company became a bank holding company registered with the Federal Reserve. The OCC has extensive authority over the operations of national banks. As part of this authority, national banks are required to file periodic reports with the OCC and are subject to periodic examinations by the OCC. Federal laws and regulations prescribe the investment and lending authority of the Bank, and the Bank is prohibited from engaging in any activities not permitted by such laws and regulations. While the Bank has broad authority to engage in all types of lending activities, a variety of restrictions apply to certain other investments by the Bank.

Financial Modernization. On July 21, 2010 the Dodd-Frank Act became effective. This law has broadly affected the financial services industry by implementing changes to the financial regulatory landscape aimed at strengthening the sound operation of the financial services industry, and will continue to significantly change the current bank regulatory structure and affect the lending, deposit, investment, trading and operating activities of financial institutions and their holding companies, including the Company and the Bank. Some of the changes that are significant to the Company and the Bank include:

The establishment of the CFPB, which on July 21, 2011 took over responsibility for the principal federal consumer protection laws, such as the Truth in Lending Act, the Equal Credit Opportunity Act, the Real Estate Settlement Procedures Act and the Truth in Saving Act, among others. The CFPB has broad rule-making authority in this area, and also has primary supervisory and examination authority on these issues over institutions such as the Bank with assets of $10 billion or more. The Dodd-Frank Act also gives the CFPB expanded data collecting powers for fair lending purposes for both small business and mortgage loans, as well as expanded authority to prevent unfair, deceptive and abusive practices.

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On October 9, 2013, the CFPB entered a Consent Order against the Bank that required the Bank to pay a civil money penalty of $34,000, and to adopt an enhanced compliance program related to reporting Home Mortgage Disclosure Act ("HMDA") data.  The Bank has adopted an enhanced HMDA program, which continues to be subject to review by the CFPB. The Bank believes it continues to be in compliance with all material terms of the Order.

As required by the Dodd-Frank Act, the Federal Reserve adopted a rule that restricted interchange fees applicable to debit card transactions. Effective October 1, 2011, interchange fees on debit card transactions are limited to a maximum of 21 cents per transaction plus 5 basis points of the transaction amount. A debit card issuer may recover an additional one cent per transaction for fraud prevention purposes if the issuer complies with certain fraud-related requirements prescribed by the Federal Reserve.

Interstate Banking. Subject to certain limitations and restrictions, a bank holding company, with prior approval of the Federal Reserve, may acquire an out-of-state bank; banks in states that do not prohibit out-of-state mergers may merge with the approval of the appropriate federal banking agency, and a bank may establish a de novo branch out of state if such branching is permitted by the other state for state banks chartered by such other state.

Insurance of Deposit Accounts. Under the Dodd-Frank Act, the maximum amount of federal deposit insurance coverage was permanently increased from $100,000 to $250,000 per depositor, per institution. Due to the significant number of bank failures and the current balance of the DIF, the Company anticipates continued elevated FDIC premiums for the industry going forward. Continued credit quality improvements have lessened this increase for the Company. The Dodd-Frank Act also broadened the base for FDIC insurance assessments. Assessments are now based on the average consolidated total assets less tangible equity capital of a financial institution. In addition, the Dodd-Frank Act raised the minimum designated reserve ratio, which the FDIC is required to set each year for the DIF, to 1.35% and requires that the DIF meet that minimum ratio by September 30, 2020. The Dodd-Frank Act eliminated the requirement that the FDIC pay dividends to depository institutions when the reserve ratio exceeds certain thresholds. The FDIC has established a higher reserve ratio of 2% as a long-term goal beyond what is required by statute.

All insured institutions are also required to pay quarterly assessments to the FDIC in order to fund interest payments on bonds issued by the Financing Corporation ("FICO"), a federal agency that was established to recapitalize a predecessor to the DIF. These assessments will continue until the FICO bonds mature, which will be between 2017 and 2019. The FICO assessment rate is subject to quarterly adjustment. The current rate is 0.0056% of average consolidated total assets minus tangible equity.

Transactions with Affiliates; Insider Loans. Under current federal law, all transactions between and among a national bank and its affiliates, including holding companies, are subject to Sections 23A and 23B of the Federal Reserve Act and Regulation W promulgated thereunder. Generally, these requirements limit extensions of credit and certain other such transactions by the bank to affiliates to a percentage of the institution's capital and generally such transactions must be collateralized. Generally, all affiliate transactions must be on terms at least as favorable to the bank as transactions with non-affiliates. In addition, a bank may not lend to any affiliate engaged in non-banking activities that are not permissible for a bank holding company or acquire shares of any affiliate that is not a subsidiary. The OCC is authorized to impose additional restrictions on transactions with affiliates if necessary to protect the safety and soundness of a national bank.

Extensions of credit by a national bank to executive officers, directors and principal shareholders are subject to Section 22(h) of the Federal Reserve Act, which, among other things, generally prohibits loans to any such individual where the aggregate amount exceeds an amount equal to 15% of an institution's unimpaired capital and surplus plus an additional 10% of unimpaired capital and surplus in the case of loans that are fully secured by readily marketable collateral. Section 22(h) permits loans to directors, executive officers and principal stockholders made pursuant to a benefit or compensation program that is widely available to employees of a subject bank provided that no preference is given to any officer, director or principal stockholder, or related interest thereto, over any other employee. In addition, the aggregate amount of extensions of credit by a bank to all insiders cannot exceed the institution's unimpaired capital and surplus. Furthermore, Section 22(g) places additional restrictions on loans to executive officers.

Effective on July 21, 2012, the affiliate transaction rules in Sections 23A and 23B of the Federal Reserve Act were expanded to broaden the definition of affiliate and to apply these rules to securities lending, repurchase agreements and derivatives. These revisions also strengthened collateral requirements and limited Federal Reserve exemptive authority. Further, the definition of “extension of credit” for transactions with executive officers, directors and principal shareholders was expanded to include credit exposure arising from a derivative transaction, a repurchase or reverse repurchase agreement or a securities lending or borrowing transaction. These provisions have not had a material effect on the Company or the Bank.

Restrictions on Dividends. OCC regulations govern dividends by a national bank. A national bank must file an application for approval of a dividend if:

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•the total dividends for the applicable calendar year exceed the sum of the institution's net income for that year to date plus the institution's retained net income for the preceding two years;

•the institution would not be at least adequately capitalized following the dividend;

•the dividend would violate any applicable statute, regulation, agreement or OCC imposed condition; or

•the dividend is paid in property other than cash or stock of the bank.

Other capital distributions, such as stock repurchases, generally require the approval of the OCC. Failure to meet minimum capital requirements may place certain restrictions on the payment of dividends and stock repurchases.

Federal Home Loan Bank System. The Bank is a member of the Federal Home Loan Bank ("FHLB") of Des Moines, which is one of 11 regional FHLBs that provide funding to their members for making home mortgage loans, as well as loans for affordable housing and community development. Each FHLB serves members within its assigned region and is funded primarily through proceeds derived from the sale of consolidated obligations of the FHLB system. Loans are made to members in accordance with the policies and procedures established by the Board of Directors of the FHLB. At September 30, 2016, FHLB advances to the Company amounted to $2,080,000,000. As a member, the Bank is required to purchase and maintain stock in the FHLB of Des Moines. At September 30, 2016, the Company had $93.2 million in FHLB of Des Moines stock, which was in compliance with this requirement.

Community Reinvestment Act and Fair Lending Laws. National banks have a responsibility under the Community Reinvestment Act ("CRA") and related regulations of the OCC to help meet the credit needs of their communities, including low- and moderate-income neighborhoods. In addition, the Equal Credit Opportunity Act and the Fair Housing Act (together, the "Fair Lending Laws") prohibit lenders from discriminating in their lending practices on the basis of characteristics specified in those statutes. An institution's failure to comply with the provisions of the CRA could, at a minimum, result in regulatory restrictions on its activities. Failure to comply with the Fair Lending Laws could result in enforcement actions by the OCC, the CFPB, and other federal regulatory agencies, including the U.S. Department of Justice.

USA Patriot Act of 2001. The USA PATRIOT Act of 2001 ("Patriot Act") substantially broadened the scope of United States anti money-laundering laws and regulations by imposing significant new compliance and due diligence obligations, creating new crimes and penalties and expanding the extra-territorial scope of United States jurisdiction. The United States Treasury Department has issued a number of regulations under the Patriot Act that apply to financial institutions such as the Bank. These regulations impose obligations on financial institutions to maintain appropriate policies, procedures and controls to detect, prevent and report money laundering and terrorist financing and to verify the identity of their customers. Failure of a financial institution to maintain and implement adequate programs to combat money laundering and terrorist financing, or to comply satisfactorily with all relevant Patriot Act requirements, could have serious legal and reputational consequences for the institution.

Regulatory Capital Requirements. Bank holding companies and federally insured banks are required to maintain minimum levels of regulatory capital. The Federal Reserve establishes capital standards applicable to all bank holding companies, and the OCC establishes capital standards applicable to all national banks. The Federal Reserve and the OCC implemented new capital rules, effective January 1, 2015, that substantially amend the existing capital rules for bank holding companies and banks. These new rules reflect, in part, certain standards initially adopted by the Basel Committee on Banking Supervision in December 2010 (which standards are commonly referred to as “Basel III”) as well as requirements contemplated by the Dodd-Frank Act.

The recent rules implemented a new capital ratio of common equity Tier 1 capital to risk based assets. Common equity Tier 1 capital generally consists of retained earnings and common stock instruments (subject to certain adjustments) as well as accumulated other comprehensive income (“AOCI”) except to the extent that the Company and the Bank exercise a one-time irrevocable option to exclude certain components of AOCI, which the Company and the Bank have done. Tier 1 capital also includes non-cumulative perpetual preferred stock and limited amounts of minority interests. Regulatory deductions from capital include goodwill and intangible assets. The new rules modify the manner in which certain capital elements are determined, including but not limited to, requiring certain deductions related to mortgage servicing rights and deferred tax assets. Total capital consists of Tier 1 capital and supplementary capital. Supplementary capital consists of certain capital instruments that do not qualify as core capital as well as general valuation loan and lease loss allowances up to a maximum of 1.25% of risk-weighted assets. Supplementary capital may be used to satisfy the risk-based requirement only in an amount equal to the amount of Tier 1 capital.

In determining the required amount of risk-based capital, total assets, including certain off-balance-sheet items, are multiplied by a risk-weight factor based on the risks inherent in the type of assets held by an institution. The risk categories range from 0% for low-risk assets such as U.S. Treasury securities and GNMA securities to 1,250% for various types of loans and other assets

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deemed to be of higher risk. Single-family residential loans having loan-to-value ratios not exceeding 80% and meeting certain additional criteria, as well as certain multi-family residential loans, qualify for a 50% risk-weight treatment. The book value of each asset is multiplied by the risk factor applicable to the asset category, and the sum of the products of this calculation equals total risk-weighted assets. The new rules make changes in the methods of calculating certain risk-based assets, which in turn affects the calculation of risk-based ratios. Higher or more sensitive risk weights are assigned to various categories of assets, among which are commercial real estate, credit facilities that finance the acquisition, development or construction of real property, certain exposures or credit that are 90 days past due or are nonaccrual, foreign exposures, certain corporate exposures, securitization exposures, equity exposures and in certain cases mortgage servicing rights and deferred tax assets.

Both the Company and the Bank are required to have a common equity Tier 1 capital ratio of 4.5%. In addition, both the Company and the Bank are required to have a Tier 1 leverage ratio of 4.0%, a Tier 1 risk-based ratio of 6.0% and a total risk-based ratio of 8.0%. Both the Company and the Bank are required to establish a “conservation buffer,” consisting of common equity Tier 1 capital, equal to 2.5%. The capital conservation buffer is designed to ensure that banks build up capital buffers outside periods of stress, which can be drawn down as losses are incurred. An institution that does not meet the conservation buffer will be subject to restrictions on certain activities including payment of dividends, stock repurchases and discretionary bonuses to executive officers. The conservation buffer is phased in beginning in 2016 and will take full effect on January 1, 2019. Certain calculations under the rules will also have phase-in periods.

The Federal Reserve and the OCC are also authorized to impose capital requirements in excess of these standards on individual institutions on a case-by-case basis. Management believes that the current capital levels of the Company and the Bank are sufficient to be in compliance with the fully phased-in standards under the new rules.

Any bank holding company or national bank that fails the capital requirements is subject to possible enforcement actions. Such actions could include a capital directive, a cease and desist order, civil money penalties, restrictions on an institution's operations and/or the appointment of a conservator or receiver. Federal Reserve and OCC capital regulations provide that such supervisory actions, through enforcement proceedings or otherwise, could require one or more of a variety of corrective actions.     

For information regarding compliance with each of these capital requirements by the Company and the Bank as of September 30, 2016, see Note O to the Consolidated Financial Statements included in Item 8 hereof.

Prompt Corrective Action. Federal statutes establish a supervisory framework based on five capital categories: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized. An institution’s category depends upon its capital levels in relation to relevant capital measures, which include a risk-based capital measure, a leverage ratio capital measure and certain other factors. The federal banking agencies have adopted regulations that implement this statutory framework.

The prompt corrective action rules, which apply to the Bank but not the Company, are modified to include a common equity Tier 1 risk-based ratio and to increase certain other capital requirements for the various thresholds. For example, the requirements for the Bank to be considered well-capitalized under the rules are a 5.0% Tier 1 leverage ratio, a 6.5% common equity Tier 1 risk-based ratio, an 8.0% Tier 1 risk-based capital ratio and a 10.0% total risk-based capital ratio. To be adequately capitalized, those ratios are 4.0%, 4.5%. 6.0% and 8.0%, respectively.

An institution that is not well capitalized is subject to certain restrictions on brokered deposits, including restrictions on the rates it can offer on its deposits, generally. Any institution that is neither well capitalized nor adequately capitalized is considered undercapitalized. Federal law authorizes the OCC to reclassify a well-capitalized institution as adequately capitalized and may require an adequately capitalized institution or an undercapitalized institution to comply with supervisory actions as if it were in the next lower category. The OCC may not reclassify a significantly undercapitalized institution as critically undercapitalized. As of September 30, 2016, the Bank exceeded the requirements of a well capitalized institution.

Dodd-Frank Act Stress Tests ("DFAST"). The Federal Reserve and the OCC have issued final rules establishing company-run annual stress tests for bank holding companies and national banks, respectively, with assets between $10 and $50 billion.

Management has conducted stress tests to quantify the impact of changing economic conditions on asset quality, net income, and capital. These stress tests are used to assist in the determination of whether capital is sufficient to absorb losses that could result from adverse economic conditions. It also assists management in thinking critically about the external environment by focusing on changing markets and discussing future trends, and it enables management to form contingency plans in the event of downside scenarios. The nine-quarter stress test results as of December 31, 2015 for the Company and the Bank were submitted to the Federal Reserve and the OCC by the July 31, 2016 deadline, and the severe adverse results were filed in an 8-K on October 27, 2016.

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Taxation

Federal Taxation. For federal and state income tax purposes, the Company reports its income and expenses on the accrual basis method of accounting and files its federal and state income tax returns on a September 30, fiscal year basis. The Company files consolidated federal and state income tax returns with its subsidiaries.

The Company has been examined by the Internal Revenue Service through the year ended September 30, 2012. There were no material changes made to the Company’s originally reported taxable income as a result of their most recent examination.

State Taxation. The states of Washington and Nevada do not have state income taxes. A business and occupation tax based on a percentage of gross receipts is assessed against businesses in Washington; however, interest received on loans secured by mortgages or deeds of trust on residential properties is not subject to this tax.

• The state of Idaho has a corporate income tax with a statutory rate of 7.4% of apportionable income.

• The state of Oregon has a corporate excise tax with a statutory rate of 6.6% on the first $1 million of apportionable income and then 7.6% over $1 million of apportionable income.

• The state of Utah has a corporate franchise tax with a statutory rate of 5.0% of apportionable income.

• The state of Arizona has a corporate income tax with a statutory rate of 5.5% for the 2016 tax year; and 4.9% for tax years beginning after 2016 of apportionable income.

• The state of Texas has a corporate franchise tax with a statutory rate of 0.75% for tax years beginning in 2016 of marginal apportionable income.

• The state of New Mexico has a corporate income tax with statutory rates ranging from 4.8% to 6.9% of apportionable income over $1 million.

Availability of Financial Data

Under the Securities Exchange Act of 1934 ("Exchange Act"), Washington Federal is required to file annual, quarterly and current reports, proxy statements and other information with the SEC. You may read and copy any document Washington Federal files with the SEC at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information about the public reference room. The SEC maintains a website at www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. Washington Federal files electronically with the SEC.

Washington Federal makes available, free of charge through its website, its reports on Forms 10-K, 10-Q and 8-K, and amendments to those reports, as soon as reasonably practicable after such reports are filed with or furnished to the SEC. Additionally, the Company has adopted and posted on its website a code of ethics that applies to its senior financial officers. The Company’s website also includes the charters for its audit committee, compensation committee, risk management committee, and nominating and governance committee. The address for the Company’s website is www.washingtonfederal.com. The Company will provide a printed copy of any of the aforementioned documents to any requesting shareholder.

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Item 1A. Risk Factors

Ownership of the Company's common stock involves risk. Investors should carefully consider, in addition to the other information set forth herein, the following risk factors:

Current economic conditions pose challenges and could adversely affect the financial condition and results of operations of the Company.

The Company is operating in an uncertain economic environment, including lackluster national and global conditions, accompanied by very low interest rates. Financial institutions can be affected by changing conditions in the real estate and financial markets. Dramatic declines in the housing market in past years, with falling home prices and increasing foreclosures and unemployment, resulted in significant write-downs of asset values by financial institutions. While conditions have improved, a return to a recessionary economy could result in financial stress on the Bank's borrowers that could adversely affect its financial condition and results of operations. Deteriorating conditions in the regional economy served by the Company could drive losses beyond that which is provided for in its allowance for loan losses. The Company could also face the following risks in connection with the following events:

▪ Ineffective monetary policy or other market conditions could cause rapid changes in interest rates and asset values that would have a materially adverse impact on the Company's profitability and overall financial condition.

• Market developments may affect consumer confidence levels and may cause adverse changes in payment patterns, resulting in increased delinquencies and default rates on loans and other credit facilities.

• The processes the Company uses to estimate the allowance for loan losses and other reserves may prove to be unreliable. Such estimates rely upon complex modeling inputs and judgments, including forecasts of economic conditions, which may be rendered inaccurate and/or no longer subject to accurate forecasting.

• The Company's ability to assess the creditworthiness of its borrowers may be impaired if the models and approaches it uses to select, manage, and underwrite loans become less predictive of future charge-offs.

• Regulatory scrutiny of the industry could increase, leading to harsh regulation of the industry that could lead to a higher cost of compliance, limit the Company's ability to pursue business opportunities and increase its exposure to the judicial system and the plaintiff’s bar.

• Further erosion in the fiscal condition of the U.S. Treasury could lead to new taxes that would limit the ability of the Company to pursue growth and return profits to shareholders.

If these conditions or similar ones continue to exist or worsen, the Company could experience continuing or increased adverse effects on its financial condition.

The effects of the economic recession were severe in the Company's primary market areas.

Substantially all of the Bank's loans are to individuals, businesses and real estate developers in the Pacific Northwest, Arizona, Utah, Texas, New Mexico and Nevada, and the Bank's business depends significantly on general economic conditions in these market areas. Unemployment rates have improved but continue to be high in most of the Company's market areas. Severe declines in housing prices and property values were acute in the Company's primary market areas. Most areas are improving in real estate values. However, a further deterioration in economic conditions or a prolonged delay in economic recovery in these market areas could result in the following consequences, any of which could have a material adverse effect on the Company's business:

• Loan delinquencies may increase.

• Problem assets and foreclosures may increase.

• Demand for the Bank's products and services may decline.

• Collateral for loans made by the Bank, especially real estate, may decline in value, in turn reducing a customer's borrowing power, and reducing the value of assets and collateral associated with the loans.

A downturn in the real estate market would hurt the Company's business.

The Company's business activities and credit exposure are concentrated in real estate lending. The market for real estate is cyclical and the outlook for this sector is uncertain. A downturn in the real estate market, accompanied by falling values and increased foreclosures would hurt the Company's business because a large majority of its loans are secured by real estate.

Actions by other lenders or bank regulators could depress the value of the Company's real estate holdings, if lenders aggressively dispose of properties because of demand by their regulators or the prevailing business conditions. If a significant decline in market values occurs, the collateral for the Company's loans will provide decreasing levels of security. As a result, the Company's ability

25

to recover the principal amount due on defaulted loans by selling the underlying real estate will be diminished, and the Company will be more likely to suffer losses on defaulted loans.

The Company owns real estate as a result of foreclosures resulting from non-performing loans. If other lenders or borrowers liquidate significant amounts of real estate in a rapid or disorderly fashion, or if the FDIC elects to dispose of significant amounts of real estate from failed financial institutions in a similar fashion, it could have an adverse effect on the values of the properties owned by the Company. In such a case, the Company may incur further write-downs and charge-offs, which could, in turn, adversely affect its results of operations and financial condition.

The Company may suffer losses in its loan portfolio despite its underwriting and loan collection practices.

The Company seeks to mitigate the risks inherent in its loan portfolio by adhering to specific underwriting and loan collection practices. Underwriting practices often include analysis of a borrower's prior credit history; financial statements; tax returns; cash flow projections; valuation of collateral; personal guarantees of loans to businesses; and verification of liquid assets. If the underwriting process fails to capture accurate information or proves to be inadequate, the Company may incur losses on loans that appeared to meet its underwriting criteria, and those losses may exceed the amounts set aside as reserves in the allowance for loan losses. Loan collection resources may be expanded to meet increases in nonperforming loans resulting from economic downturns or to service any loans acquired, resulting in higher loan administration costs. The Company is also exposed to the risk of improper documentation of foreclosure proceedings that would also increase the cost of collection. There is also the risk that loss-sharing agreements with the FDIC may not be fulfilled.

The Company recently upgraded its core technology infrastructure, which may expose it to significant risks.

The Company recently completed the transition from a stable, cost-efficient but aging legacy operating system to a more modern, efficient, scalable system.  The Company believes the new system will allow it to better provide its products and services to its customers but it is now more dependent on the third party vendor to provide the necessary services and support.  Any disruption of such services, or the termination of a third-party license or service agreement related thereto, could adversely affect the Company’s ability to provide and service customer products.

In addition, when the Company acquires other institutions or branches, the success and value of the transaction can depend in part on the Company’s ability to seamlessly integrate the acquired customers’ services and products with the technology platform. Failure to do so can lead to, among other things, dissatisfaction among acquired customers and the loss of the business of such customers.

The Company has risk of systems failures and security risk, including "hacking" and "identity theft."

The Company relies extensively on the successful and uninterrupted functioning of its information technology and telecommunications systems.  Any failure, interruption or breach in security of these systems could result in failures or disruptions in its customer relationship management, general ledger, deposit, loan and other systems and could damage its reputation, result in loss of customer business, subject it to regulatory scrutiny, or expose it to civil litigation and possible financial liability.  This applies to internally developed systems and the systems of third-party service providers.

While the Company believes it has robust information systems and security procedures, controls and policies designed to prevent or limit the effect of the failure, interruption or security breach of its information systems, there can be no assurance that any such failures, interruptions or security breaches will not occur, or, if they do occur, that they will be adequately addressed.  Because the techniques used to obtain unauthorized access, disable or degrade systems change frequently and often are not recognized until launched against a target, the Company may be unable to anticipate these techniques or to implement adequate protective measures.

To date the Company has not experienced any material losses related to cyber-attacks or other information security breaches, but there can be no assurance that it will not suffer such attacks and losses in the future.  The Company’s risk and exposure to these matters remains heightened because of, among other things, the evolving nature of these threats, its plans to continue to implement internet banking and mobile banking channels, expand operations and use third-party information systems. 

Cybersecurity and the continued development and enhancement of the Company's controls, processes and practices designed to protect customer information, its systems, computers, software, data and networks from attack, damage or unauthorized access remain a priority for the Company.  As cybersecurity threats continue to evolve, the Company may be required to expend additional resources to continue to modify or refine our protective measures against these threats.

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The Company's business is subject to interest rate risk and changes in market interest rates may negatively affect its results of operations and financial condition.

The Company's primary source of income is net interest income, which is the difference between the interest income generated by interest-earning assets and the interest expense generated by interest-bearing liabilities. The level of net interest income is a function of the average balances of interest-earning assets and interest-bearing liabilities and the spread between the amounts of the yield on such assets and the cost of such liabilities. These factors are influenced by both the pricing and the mix of interest-earning assets and interest-bearing liabilities which, in turn, are impacted by such external factors as the local economy, competition for loans and deposits, the monetary policy of the Federal Open Market Committee of the Federal Reserve Board of Governors (the “FOMC”), and market interest rates. Management is unable to predict these external factors, including the fluctuations of market interest rates, which are affected by many drivers, including inflation, recession, unemployment, monetary policy, domestic and international disorder, instability in domestic and foreign financial markets, and investor and consumer demand.

Furthermore, movements in interest rates, the pace at which such movements occur, and the volume and mix of the Company’s interest-bearing assets and liabilities influence the level of net interest income. The cost of the Company's deposits is largely based on short-term interest rates, the level of which is driven by the FOMC. However, the yields generated by its long-term loans, such as single-family residential and multifamily mortgage loans, and securities are typically driven by longer-term (10 year) interest rates, which are set by the market and vary from day to day. During the last few years the Federal Reserve's unprecedented involvement in the purchase of assets, commonly know as "quantitative easing," has caused interest rates to be lower than they would have been without such involvement. The timing and impact of the withdrawal of this quantitative easing remains unknown.

If the interest rates on the Company's interest-bearing liabilities increase at a faster pace than the interest rates on its interest-earning assets, the result could be a reduction in net interest income and with it, a reduction in earnings. Net interest income and earnings would be similarly impacted were the interest rates on interest-earning assets to decline more quickly than the interest rates on interest-bearing liabilities. In addition, changes in interest rates could affect the Bank's ability to originate loans and attract and retain deposits; the fair values of its securities and other financial assets; the fair values of its liabilities; and the average lives of its loan and securities portfolios. Additionally, decreases in interest rates could lead to increased loan refinancing activity, which, in turn, would alter the balance of the Company's interest-earning assets and impact net interest income. Increases in interest rates could reduce loan refinancing activity, which could result in compression of the spread between loan yields and more quickly rising funding rates.

The Company may be exposed to movements in market rates to a degree not experienced by other financial institutions. The Company must carefully manage interest rate risk as a result of its significant portfolio of fixed-rate single-family home loans, which are longer-term in nature than the customer accounts and borrowed money that constitute its liabilities. The Company manages its interest rate risk in part by growing the fixed-rate loan portfolio when yields are higher and focusing on loans or investments with shorter-term characteristics, such as construction or commercial loans, when loan rates are lower. This balance sheet strategy in conjunction with a strong capital position has allowed the Company to manage interest rate risk through all interest rate cycles. Low operating costs have contributed further to the strong capital position. Although the Company has implemented asset and liability management policies and procedures that seek to minimize or contain this interest rate risk, these policies may not be successful in the future.

The Company relies, in part, on external financing to fund its operations and the unavailability of such funding in the future could adversely impact its growth and prospects.

The Company relies on customer deposits, advances from the FHLB of Des Moines and other borrowings to fund its operations. Management has historically been able to replace maturing deposits if desired; however the Company may not be able to replace such funds at any given point in time if its financial condition or market conditions change or if the cost of doing so might adversely affect its financial condition or results of operations.

Although the Company considers its sources of funds adequate for its liquidity needs, it may seek additional debt in the future to achieve its long-term business objectives. Such borrowings, if sought, may not be available to the Company or, if available, may not be on favorable terms. If additional financing sources are unavailable or are not available on reasonable terms, the Company's financial condition, results of operations and future prospects could be adversely affected.

The Company's ability to pay dividends is subject to limitations that may affect its ability to pay dividends to its stockholders.

The Company is a separate legal entity from its subsidiary and does not have significant operations of its own. The availability of dividends from the Bank is limited by the Bank's earnings and capital, as well as various statutes and regulations. It is possible, depending upon the financial condition of the Bank and other factors, that the Bank may not pay dividends to the Company. If the Bank is unable to pay dividends to the Company, the Company may not be able to pay dividends on its common stock.

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Consequently, the inability to receive dividends from the Bank could adversely affect the Company's financial condition, results of operations and future prospects.

The market price for the Company's common stock may be volatile.

The market price of the Company's common stock could fluctuate substantially in the future in response to a number of factors, including those discussed below. The market price of the Company's common stock has in the past fluctuated significantly and is likely to continue to fluctuate significantly. Some factors that may cause the price of its common stock to fluctuate include:

• variations in the operating results of the Company and its competitors

• changes in securities analysts' estimates of the Company's future performance and the future performance of its competitors

• announcements by the Company or its competitors of mergers, acquisitions and strategic partnerships

• additions or departure of key personnel

• events affecting other companies that the market deems comparable to the Company

• general conditions in the financial markets and real estate markets

• general conditions in the United States

• the presence or absence of short selling of the Company's common stock

• future sales of the Company's common stock or debt securities

The stock markets in general have experienced substantial price and trading fluctuations. These fluctuations have resulted in volatility in the market prices of securities that often has been unrelated or disproportionate to changes in operating performance. These broad market fluctuations may adversely affect the trading price of the Company's common stock.

A person holding the Company's common stock could have the voting power of their shares of common stock on all matters significantly reduced under Washington's anti-takeover statutes, if the person acquires 10% or more of the voting stock of the Company.

The Company is incorporated in the state of Washington and subject to Washington state law. Some provisions of Washington state law could interfere with or restrict takeover bids or other change-in-control events affecting us. For example, Chapter 23B.19 of the Washington Business Corporation Act, with limited exceptions, prohibits a “target corporation” from engaging in specified “significant business transactions” for a period of five years after the share acquisition by an acquiring person, unless:

▪ the prohibited transaction or the acquiring person's purchase of shares was approved by a majority of the members of the target corporation's board of directors prior to the acquiring person's share acquisition; or

▪ the prohibited transaction was both approved by the majority of the members of the target corporation's board and authorized at a shareholder meeting by at least two-thirds of the outstanding voting shares (excluding the acquiring person's shares) at or subsequent to the acquiring person's share acquisition. An acquiring person is defined as a person or group of persons that beneficially own 10% or more of the voting securities of the target corporation. Such prohibited transactions include, among other things:

* certain mergers, or consolidations with, disposition of assets to, or issuances of stock to or redemption of stock from, the acquiring person;

* termination of 5% or more of the employees of the target corporation as a result of the acquiring person's acquisition of 10% or more of the shares;

* allowing the acquiring person to receive any disproportionate benefit as a shareholder; and

* liquidating or dissolving the target corporation.

After the five-year period, certain “significant business transactions” are permitted, if they comply with certain “fair price” provisions of the statute or are approved by a majority of the outstanding shares other than those of which the acquiring person has beneficial ownership. As a Washington corporation, the Company is not permitted to “opt out” of this statute.

The Company's results of operations, financial condition or liquidity may be adversely impacted by issues arising from certain industry deficiencies in foreclosure practices, including delays and challenges in the foreclosure process.

Foreclosure process issues and the potential legal and regulatory responses to them could negatively impact the process and timing to completion of foreclosures for residential mortgage lenders, including the Bank. Foreclosure timelines have increased in recent years due to, among other reasons, delays associated with the significant increase in the number of foreclosure cases as a result of economic downturns, additional consumer protection initiatives related to the foreclosure process and voluntary or, in some cases, mandatory programs intended to permit or require lenders to consider loan modifications or other alternatives to foreclosure. Increases in the foreclosure timeline may have an adverse effect on collateral values and the Company's ability to minimize its losses.

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The Company's ability to originate mortgage loans has been adversely affected by the increased competition resulting from the involvement of the U.S. Government, the Federal Reserve and Government-Sponsored Enterprises (“GSEs”) in the residential mortgage market.

Over the past few years, the Company has faced increased competition for mortgage loans due to the increased involvement of the GSEs in the mortgage market as a result of the recent economic crisis, which has caused interest rates for thirty year fixed-rate mortgage loans that conform to GSE guidelines to remain artificially low. Additionally, the Federal Reserve has participated in the mortgage market in an unusual manner, through its purchases of GSE mortgage-backed securities as part of its "quantitative easing" program. The Company's one-to-four family mortgage loan repayments have been elevated, and it is possible that its one-to-four family mortgage loan repayments will outpace its loan production as a result of these factors, making it difficult for it to grow its mortgage loan portfolio and balance sheet.

The Company may need to increase its allowance for loan and lease losses ("ALLL") in material amounts. The Company may experience elevated amounts of net charge-offs.

The Company's customers may not repay their loans according to the original terms, and the collateral securing the payment of those loans may be insufficient to pay any remaining loan balance. While the Company maintains an ALLL to provide for loan defaults and non-performance, losses may exceed the value of the collateral securing the loans and the allowance may not fully cover any excess loss.

The Company makes various assumptions and judgments about the collectability of its loan portfolio, including the creditworthiness of its borrowers and the value of the real estate and other assets serving as collateral for the repayment of loans. The Company's ALLL is based on these judgments, as well as historical loss experience and an evaluation of the other risks associated with its loan portfolio, including but not limited to, the size and composition of the loan portfolio, current economic conditions and geographic concentrations within the portfolio. Federal regulatory agencies, as part of their examination process, review the Company's loans and ALLL. If the Company's assumptions and judgments used to determine the ALLL prove to be incorrect, if the value of the collateral securing the loans decreases substantially or if the Company's regulators disagree with its judgments, it may need to increase the ALLL in amounts that exceed its expectations. Material additions to the ALLL would adversely affect the Company's results of operations and financial condition.

The Company may be required to increase its ALLL as a result of a recent change to an accounting standard.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses. The amendments in this ASU were issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investments in leases and other commitments to extend credit held by a reporting entity at each reporting date. The amendments require that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The ASU eliminates the current framework of recognizing probable incurred losses and instead requires an entity to use its current estimate of all expected credit losses over the contractual life. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets.

For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, an allowance for expected credit losses is recorded as an adjustment to the cost basis of the asset. Subsequent changes in estimated cash flows would be recorded as an adjustment to the allowance and through the statement of income.

Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security's cost basis.

The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For most debt securities, the transition approach requires a cumulative-effect adjustment to the statement of financial position as of the beginning of the first reporting period the guidance is effective. For other-than-temporarily impaired debt securities and PCD assets, the guidance will be applied prospectively. The Company is currently evaluating the provisions of this ASU to determine the impact but the new standard could have a material impact on the Company's consolidated financial statements.    

The Company operates in a highly regulated industry, which limits the manner and scope of its business activities.

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The Company is subject to extensive supervision, regulation and examination by the OCC, CFPB and the FDIC. In addition, the Federal Reserve is responsible for regulating the Company. This regulatory structure is designed primarily for the protection of the deposit insurance funds and consumers and not to benefit the Company's stockholders. This regulatory structure also gives the regulatory authorities extensive discretion in connection with their supervisory and enforcement activities and examination policies to address not only compliance with applicable laws and regulations (including laws and regulations governing consumer credit, and anti-money laundering and anti-terrorism laws), but also capital adequacy, asset quality and risk, management ability and performance, earnings, liquidity, and various other factors. As part of this regulatory structure, the Company and the Bank are subject to policies and other guidance developed by the regulatory agencies with respect to capital levels, the timing and amount of dividend payments, the classification of assets and the establishment of adequate loan loss reserves for regulatory purposes. Under this structure the OCC, the FDIC, the CFPB and the Federal Reserve have broad discretion to impose restrictions and limitations on the Company's operations if they determine, among other things, that our operations are unsafe or unsound, fail to comply with applicable law or are otherwise inconsistent with laws and regulations or with the supervisory policies of these agencies. This supervisory framework could materially impact the conduct, growth and profitability of the Company's operations.

Failure to comply with applicable laws and regulations also could result in a range of sanctions and enforcement actions, including the imposition of civil money penalties, formal agreements and cease and desist orders. In addition, the OCC has specific authority to take “prompt corrective action,” depending on the Bank's capital level. Currently, the Bank is considered “well-capitalized” for prompt corrective action purposes. If the Bank were designated by the OCC as “adequately capitalized,” its ability to take brokered deposits would become limited. If the Bank were to be designated by the OCC in one of the lower capital levels “undercapitalized,” “significantly undercapitalized” or “critically undercapitalized,” it would be required to raise additional capital and would be subject to progressively more severe restrictions on its operations, management and capital distributions, and replacement of senior executive officers and directors. If the Bank became “critically undercapitalized,” it would also be subject to the appointment of a conservator or receiver.

Recent national and state legislation and regulatory initiatives to support the financial services industry have been coupled with numerous restrictions and requirements that could detrimentally affect the Company's business.

The Dodd-Frank Act is having a substantial impact on the financial services industry. The Dodd-Frank Act creates a framework through which regulatory reform is being written. Many of the rules required by the Dodd-Frank Act have been implemented and others are still being drafted. As a result, the impact of the future regulatory requirements continues to be uncertain.

Recent legislative, both state and national, initiatives to support housing finance could detrimentally affect the Company's business.

Legislative initiatives could detrimentally impact the Company in the future. The extent of the impact of any such legislation will be dependent on the specific details of the final legislation passed, if any.

The Company faces strong competition from other financial institutions and new market participants, offering services similar to those offered by the Bank.

Many competitors offer the types of loans and deposit services that the Company offers. These competitors include other national banks, savings associations, community banks, credit unions and other financial intermediaries. In particular, the Company's competitors include national banks and major financial companies whose greater resources may afford them a marketplace advantage by enabling them to maintain numerous banking locations and mount extensive promotional and advertising campaigns. Additionally, recent technological breakthroughs have made it possible for other non-traditional competitors to enter the marketplace and compete for traditional banking services. Increased competition within the Company's market area may result in reduced loan originations and deposits. Ultimately, the Company may not be able to compete with full success against current and future competitors.

The Company's deposit insurance premiums could increase further in the future, which could have a material adverse impact on future earnings and financial condition.

The FDIC insures deposits at FDIC-insured financial institutions, including the Bank. The FDIC charges insured financial institutions premiums to maintain the Deposit Insurance Fund ("DIF") at a specific level. The Bank's FDIC insurance premiums increased substantially beginning in 2009, and it expects to pay significant premiums in the future. Unfavorable economic conditions, increased bank failures and additional failures decreased the DIF. In order to restore the DIF to its statutorily mandated minimum of 1.35% of total deposits by September 30, 2020, the FDIC may need to increase deposit insurance premium rates. Insured institutions with assets of $10 billion or more are responsible for funding this increase. The FDIC has issued regulations to implement these provisions of the Dodd-Frank Act. It has, in addition, established a higher reserve ratio of 2% as a long-term goal which goes beyond what is required by statute. There is no implementation deadline for the 2% ratio. The FDIC may increase

30

the assessment rates or impose additional special assessments in the future to keep the DIF at the statutory target level. Any increase in the Bank's FDIC premiums could have an adverse effect on its financial condition and results of operations.

Non-Compliance with the USA PATRIOT Act, Bank Secrecy Act, Real Estate Settlement Procedures Act, Truth-in-Lending Act, Community Reinvestment Act, Fair Lending Laws, Flood Insurance Reform Act or other laws and regulations could result in fines or sanctions, and curtail expansion opportunities.

Financial institutions are required under the USA PATRIOT and Bank Secrecy Acts to develop programs to prevent financial institutions from being used for money-laundering and terrorist activities. Financial institutions are also obligated to file suspicious activity reports with the U.S. Treasury Department's Office of Financial Crimes Enforcement Network if such activities are detected. These rules also require financial institutions to establish procedures for identifying and verifying the identity of customers seeking to open new financial accounts. Failure or the inability to comply with these regulations could result in fines or penalties, curtailment of expansion opportunities, intervention or sanctions by regulators and costly litigation or expensive additional controls and systems. During the last few years, several banking institutions have received large fines for non-compliance with these laws and regulations. In addition, the U.S. Government imposed and will continue to expand laws and regulations relating to residential and consumer lending activities that create significant new compliance burdens and financial risks. The Company developed policies and it continues to augment procedures and systems designed to assist in compliance with these laws and regulations.

The Company is subject to a variety of operational risks, including legal and compliance risk, fraud and theft risk and the risk of operational errors, which may adversely affect its business and results of operations.

The Company is,from time to time, subject to claims and proceedings related to its operations. These claims and legal actions, which could include supervisory or enforcement actions by its regulators, or criminal proceedings by prosecutorial authorities, could involve large monetary claims, including civil money penalties or fines imposed by government authorities, and significant defense costs. To mitigate the cost of some of these claims, the Company maintains insurance coverage in amounts and with deductibles that it believes is appropriate for its operations.

Both internal and external fraud and theft are risks. If personal, non-public, confidential or proprietary information of customers were to be mishandled or misused, the Company could suffer significant regulatory consequences, reputational damage and financial loss. Such mishandling or misuse could include, for example, if such information were erroneously provided to parties who are not permitted to have the information, either by fault of its systems, employees, or counterparties, or if such information were to be intercepted or otherwise inappropriately taken by third parties.

Operational errors include clerical or record-keeping errors or those resulting from faulty or disabled computer or telecommunications systems. Because the nature of the financial services business involves a high volume of transactions, certain errors may be repeated or compounded before they are discovered and successfully rectified. Because of the Company's large transaction volume and its necessary dependence upon automated systems to record and process these transactions there is a risk that technical flaws or tampering or manipulation of those automated systems arising from events wholly or partially beyond its control may give rise to disruption of service to customers and to financial loss or liability. The Company is exposed to the risk that its business continuity and data security systems prove to be inadequate.

The occurrence of any of these risks could result in a diminished ability for the Company to operate its business, additional costs to correct defects, potential liability to clients, reputational damage and regulatory intervention, any of which could adversely affect its business, financial condition and results of operations, perhaps materially.

There may be future sales or other dilution of the Company's equity, which may adversely affect the market price of its common stock.

The Company is not restricted from issuing additional shares of common stock, including any securities that are convertible into or exchangeable for, or that represent the right to receive, common stock. The issuance of any additional shares of common or of preferred stock or convertible securities or the exercise of such securities could be substantially dilutive to stockholders of the Company's common stock. For instance, exercise of the warrant issued to the U.S. Treasury in connection with its participation in the Capital Purchase Program diluted the value of the Company's common stock. Holders of the Company's shares of common stock have no preemptive rights that entitle holders to purchase their pro rata share of any offering of shares of any class or series and, therefore, such sales or offerings could result in increased dilution to its stockholders.

Item 1B. Unresolved Staff Comments

None.

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Item 2. Properties

The Company owns the building in which its principal executive offices are located in Seattle, Washington. The following table sets forth certain information concerning the Company's offices:

September 30, 2016		Property
Location	Number of Offices	Owned	Leased (1)	Net Book Value (2)
				(In thousands)
Washington	81	68	13	$	159,103
Idaho	25	22	3	21,565
Oregon	48	38	10	39,177
Utah	10	5	5	6,392
Arizona	31	25	6	22,466
Texas	5	2	3	3,127
New Mexico	27	24	3	24,698
Nevada	11	7	4	5,423
Total	238	191	47	$	281,951

(1) The leases have varying terms expiring from 2016 through 2070, including renewal options.

(2) Amount represents the net book value of all land, property and equipment owned by the Company and the book value of leasehold improvements, where applicable.

The Company evaluates on a continuing basis the suitability and adequacy of its offices, both branches and administrative centers, and has opened, relocated, remodeled or closed them as necessary to maintain efficient and attractive premises. The net investment in premises, equipment and leaseholds was $281,951,000 at September 30, 2016.

Item 3. Legal Proceedings

The Company and its consolidated subsidiaries are involved in legal proceedings occurring in the ordinary course of business that in the aggregate are believed by management to be immaterial to the financial statements of the Company. The effects of legal proceedings did not have a material impact on the Company's consolidated financial statements.

Item 4. Mine Safety Disclosures

None.

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PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

The information required by this item is set forth in the 2016 Annual Report to Stockholders, which is included herein as Exhibit 13.

The Company’s stock repurchase program was publicly announced by the board of directors on February 3, 1995 and has no expiration date. Under this program, a total of 51,956,264 shares of the Company’s common stock have been authorized for repurchase. During the year ended September 30, 2016 the Company repurchased 3,867,563 shares at a weighted average price of $22.72. As of September 30, 2016, 5,039,310 shares remained authorized for share repurchase.

Item 6. Selected Financial Data

The information required by this item is set forth in the 2016 Annual Report and is incorporated herein by reference.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The information required by this item is set forth in the 2016 Annual Report and is incorporated herein by reference.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

The information required herein is incorporated by reference to the section titled Interest Rate Risk within this Form 10-K.

Item 8. Financial Statements and Supplementary Data

The information required by this item is set forth in the 2016 Annual Report and is incorporated herein by reference.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of September 30, 2016, the Company carried out an evaluation, under the supervision and participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Rule 13a-15(e) of the Exchange Act. Based upon that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer, concluded that the Company’s disclosure controls and procedures were effective to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported within time periods specified in SEC rules and forms and were effective to ensure that such information is accumulated and communicated to the Company's management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Management’s Report on Internal Control Over Financial Reporting

The Company's management is responsible for establishing and maintaining adequate internal control over financial reporting. The Company’s internal control system is designed 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 practices in the United States of America.

The Company’s management assessed the effectiveness of the Company’s internal control over financial reporting as of September 30, 2016. In making the assessment, the Company’s management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in the 2013 version of its Internal Control-Integrated Framework. Based on its assessment, the Company’s management believes that as of September 30, 2016, the Company’s internal control over financial reporting was effective based on this criteria.

33

The Company’s independent auditors, Deloitte & Touch LLP, an independent registered public accounting firm, has issued an audit report on the Company’s internal control over financial reporting, which is incorporated by reference and set forth in the 2016 Annual Report.

There have been no changes in the Company’s internal control over financial reporting during the Company’s most recent fiscal quarter ended September 30, 2016 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Item 9B. Other Information

None.

34

PART III

Item 10. Directors, Executive Officers and Corporate Governance

The information required by this item will be set forth in the 2016 Proxy Statement and is incorporated herein by reference. The Company’s annual meeting of stockholders is set to be held on January 18, 2017.

The Company has adopted a code of ethics that applies to all senior financial officers, including its Chief Executive Officer and Chief Financial Officer. The code of ethics is publicly available on the Company’s website at www.washingtonfederal.com. If the Company makes any substantive amendments to the code of ethics or grants any waiver from a provision of the code, it will disclose the nature of such amendment or waiver on its website or in a report on Form 8-K.

Item 11. Executive Compensation

The information required by this item will be set forth in the 2016 Proxy Statement and is incorporated herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The information required by this item will be set forth in the 2016 Proxy Statement and is incorporated herein by reference.

Item 13. Certain Relationships and Related Transactions and Director Independence

The information required by this item will be set forth in the 2016 Proxy Statement and is incorporated herein by reference.

Item 14. Principal Accounting Fees and Services

The information required by this item will be set forth in the 2016 Proxy Statement and is incorporated herein by reference.

35

PART IV

Item 15. Exhibits and Financial Statement Schedules

(a)(1) The following financial statements are incorporated herein by reference in the sections immediately following the Selected Financial Data of the Annual Report.

Reports of Independent Registered Public Accounting Firm

Consolidated Statements of Financial Condition as of September 30, 2016 and 2015

Consolidated Statements of Operations for each of the years in the three-year period ended September 30, 2016

Consolidated Statements of Comprehensive Income for each of the years in the three-year period ended September 30, 2016

Consolidated Statements of Stockholders’ Equity for each of the years in the three-year period ended September 30, 2016

Consolidated Statements of Cash Flows for each of the years in the three-year period ended September 30, 2016

Notes to Consolidated Financial Statements

(a)(2) There are no financial statement schedules filed herewith.

(a)(3) The following exhibits are filed as part of this report, and this list includes the Exhibit Index:

No.	Exhibit	Page/ Footnote
3.1	Restated Articles of Incorporation of the Company	(1)
3.2	Amended and Restated Bylaws of the Company	(2)
10.1	2001 Incentive Plan and Form of Award Agreements *	(3)
10.2	2011 Incentive Plan, as amended *
10.3	Form of Restricted Stock Award Agreement under 2011 Incentive Plan *	(4)
10.4	Form of Stock Option Agreement under 2011 Incentive Plan *	(4)
10.5	Form of Indemnification Agreement *	(4)
10.6	Form of Change in Control Agreement *	(5)
13	Annual Report to Stockholders
21	Subsidiaries of the Company - Reference is made to Item 1, “Business - Subsidiaries” for the required information
23.1	Consent of Independent Registered Public Accounting Firm
31.1	Section 302 Certification by the Chief Executive Officer
31.2	Section 302 Certification by the Chief Financial Officer
32	Section 906 Certification pursuant to the Sarbanes-Oxley Act of 2002
101	Financial Statements from the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2016 formatted in XBRL

 ___________________

* Management contract or compensation plan

(1) Incorporated by reference from the Registrant's Form 10-Q filed with the SEC on May 3, 2016.

(2) Incorporated by reference from the Registrant's Form 8-K filed with the SEC on January 22, 2016.

(3) Incorporated by reference from the Registrant’s Annual Report on Form 10-K filed with the SEC on November 8, 2005.

(4) Incorporated by reference from the Registrant's Form 8-K filed with the SEC on October 24, 2016.

(5) Incorporated by reference from the Registrant's Form 8-K filed with the SEC on August 17, 2015.

36

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

	WASHINGTON FEDERAL, INC.
November 21, 2016	By:	/S/    ROY M. WHITEHEAD
		Roy M. Whitehead, Chairman of the Board and Chief Executive Officer

37

Pursuant to the requirements of the Securities Exchange Act of 1934, this report is signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

/s/ Roy M. Whitehead	November 21, 2016
Roy M. Whitehead Chairman of the Board and Chief Executive Officer (Principal Executive Officer)
/s/ Vincent L. Beatty	November 21, 2016
Vincent L. Beatty Senior Vice President and Chief Financial Officer (Principal Financial Officer)
/s/ Cory D. Stewart	November 21, 2016
Cory D. Stewart Senior Vice President and Principal Accounting Officer (Principal Accounting Officer)
/s/ David K. Grant	November 21, 2016
David K. Grant, Director
/s/ Anna C. Johnson	November 21, 2016
Anna C. Johnson, Director
/s/ Thomas J. Kelley	November 21, 2016
Thomas J. Kelley, Director
/s/ Erin N. Lantz	November 21, 2016
Erin N. Lantz, Director
/s/ Barbara L. Smith	November 21, 2016
Barbara L. Smith, Director
/s/ Mark N. Tabbutt	November 21, 2016
Mark N. Tabbutt, Director
/s/ Randall H. Talbot	November 21, 2016
Randall H. Talbot, Director

38

EX-10.2

AMENDMENT NO. 1 TO THE

WASHINGTON FEDERAL, INC.
2011 INCENTIVE PLAN

Pursuant to Article XII of the Washington Federal, Inc. 2011 Incentive Plan (the “Plan”), the Board of Directors (the “Board”) of Washington Federal, Inc. (the “Company”) approved the following amendment to the Plan.

Section 4.01 of the Plan was amended in its entirety to read as follows:

4.01 Duties of the Committee. The Plan and Awards shall be administered and interpreted by the Committee as appointed from time to time by the Board pursuant to Section 4.02 of the Plan. The Committee shall have all of the powers allocated to it in this and other Sections of the Plan. The interpretation and construction by the Committee of any provisions of the Plan or of any Award granted under it shall be final and binding. The Committee shall act by vote or written consent of its members. Subject to the express provisions and limitations of the Plan, the Committee may adopt such rules, regulations and procedures as it deems appropriate for the conduct of its affairs. It may appoint one of its members to be chairman and any person, whether or not a member, to be its secretary or agent. The Committee shall report its actions and decisions to the Board at appropriate times but in no event less than one time per Plan Year. The Committee may designate persons other than members of the Committee to carry out the day-to-day ministerial administration of the Plan under such conditions and limitations as it may prescribe. In addition, the Board may delegate authority under the Plan to one or more senior executive officers of the Company with respect a fixed number of Awards to be granted to Eligible Persons (other than “Covered Employees”) under the limits specifically prescribed by the Board. For purposes of this Plan, a “Covered Employee” means (i) the chief executive officer, (ii) the four other highest compensated officers of the Company for whom total compensation is or would be required to be reported to shareholders under the Exchange Act, and (iii) any other Eligible Person who is required to file statements under Section 16 of the Exchange Act.

Adopted by the Board of Directors on October 26, 2015.

WASHINGTON FEDERAL, INC.
2011 INCENTIVE PLAN

ARTICLE I
ESTABLISHMENT OF THE PLAN

Washington Federal, Inc. (the “Corporation”) hereby establishes this 2011 Incentive Plan (the “Plan”) upon the terms and conditions hereinafter stated.

ARTICLE II
PURPOSE OF THE PLAN

The purpose of the Plan is to improve the growth and profitability of the Corporation and its Affiliates by attracting and retaining qualified Eligible Persons, providing them with the opportunity to acquire a proprietary interest in the Corporation as an incentive to contribute to the success of the Corporation and its Affiliates, and rewarding them for outstanding performance and the attainment of targeted goals.

ARTICLE III
DEFINITIONS

3.01“Affiliate” means a corporation, partnership, business trust, limited liability company, or other form of business organization at least a majority of the total combined voting power of all classes of stock or other equity interests of which is owned by the Corporation, either directly or indirectly, and any other entity, designated by the Committee, in which the Corporation has a significant interest.

3.02“Award” means a grant of an Option, a Stock Appreciation Right, Restricted Shares, Restricted Stock Units, a Performance Award, or an Other Stock-Based Award granted pursuant to the terms of this Plan.

3.03“Award Agreement” means the agreement or other document (including Board or Committee resolutions) evidencing the grant of an Award hereunder that shall be in such form as the Committee may specify. The Committee in its discretion may, but need not, require a Participant to sign an Award Agreement.

3.04“Board” means the Board of Directors of the Corporation.

Approved January 19, 2011    Page 2

3.05“Cause” has the meaning set forth in Section 4.03 of the Plan.

3.06“Change in Control” has the meaning set forth in Section 8.03 of the Plan.

3.07“Code” means the Internal Revenue Code of 1986, as amended from time to time or any successor statute thereto, together with any rules and regulations promulgated thereunder or with respect thereto.

3.08“Committee” means a committee of two or more directors appointed by the Board pursuant to Article IV hereof, none of whom shall be an Employee of the Corporation or an Affiliate, and each of whom shall be a “non-employee director” within the meaning of Rule 16b-3 under the Exchange Act and an “outside director” within the meaning of Section 162(m) of the Code. Notwithstanding the foregoing, “Committee” means the Board for purposes of granting Awards to members of the Board who are not Employees and administering the Plan with respect to those Awards, unless the Board determines otherwise.

3.09“Common Stock” means shares of the common stock, $1.00 par value per share, of the Corporation.

3.10“Disability” means, except to the extent otherwise provided in an Award Agreement, any physical or mental impairment which qualifies a Participant for disability benefits under the applicable long-term disability plan maintained by the Corporation or an Affiliate, or, if no such plan applies, which would qualify such Participant for disability benefits under the long-term disability plan maintained by the Corporation if such Participant were covered by that plan.

3.11“Effective Date” means the date of stockholder approval of the Plan.

3.12“Eligible Person” means any person who is (a) an Employee, (b) a member of the Board or the board of directors of an Affiliate, or (c) a consultant, or independent contractor to the Corporation or an Affiliate.

3.13“Employee” means any person who is employed by the Corporation or an Affiliate (as determined by the Committee in its discretion).

3.14“Exchange Act” means the Securities Exchange Act of 1934, as in effect and as amended from time to time, or any successor statute thereto, together with any rules and regulations promulgated thereunder or with respect thereto.

3.15“Fair Market Value” shall be equal to the fair market value per share of the Corporation’s Common Stock on the date an Award is granted (or other applicable date). For purposes hereof, the Fair Market Value of a share of Common Stock shall be the closing sale

Approved January 19, 2011    Page 3

price on the date in question of a share of Common Stock on the principal United States securities exchange registered under the Exchange Act on which such stock is listed, or, if such stock is not listed on any such exchange, but is traded on an automated dealer quotation system, the closing sale price with respect to a share of such stock on the date in question on the automated dealer quotation system.

3.16“Incentive Stock Option” means any Option granted under this Plan which the Board intends (at the time it is granted) to be (and specifically designates as) an incentive stock option within the meaning of Section 422 of the Code.

3.17“Nonqualified Option” means any Option granted under this Plan which is not an Incentive Stock Option.

3.18“Option” means a right granted under Article VIII of the Plan to purchase Common Stock.

3.19“Other Stock-Based Award” means an Award granted pursuant to Section 10.03 of the Plan.

3.20“Participant” means any Eligible Person who is selected from time-to-time to receive an Award under the Plan.

3.21“Performance Award” means a performance award granted pursuant to Section 10.02 of the Plan.

3.22“Performance Goals” means performance goals that the Committee establishes, which may be based on satisfactory internal or external audits, achievement of balance sheet or income statement objectives, cash flow, customer satisfaction metrics, dividend payments, earnings (including before or after taxes, interest, depreciation, and amortization), earnings growth, earnings per share; economic value added, expenses, improvement of financial ratings, internal rate of return, market share, net asset value, net income, net operating gross margin, net operating profit after taxes, net sales growth, operating income, operating margin, pro forma income, regulatory compliance, return measures (including return on assets, designated assets, capital, capital employed, equity, or stockholder equity, and return versus the Corporation’s cost of capital), revenues, sales, stock price (including growth measures and total stockholder return), comparison to stock market indices, implementation or completion of one or more projects or transactions (including mergers, acquisitions, dispositions, and restructurings), working capital, or any other objective goals that the Committee establishes. Performance Goals may be absolute in their terms or measured against or in relationship to other companies comparably, similarly or otherwise situated. Performance Goals may be particular to an Eligible Person or the department, branch, Affiliate, or division in which the Eligible Person works, or may be based on

Approved January 19, 2011    Page 4

the performance of the Corporation, one or more Affiliates, or the Corporation and one or more Affiliates, and may cover such period as the Committee may specify.

3.23“Restricted Shares” means restricted shares of Common Stock granted pursuant to Article IX of the Plan.

3.24“Restricted Stock Units” means an Award providing for the contingent grant of Shares (or the cash equivalent thereof) granted pursuant to Section 10.01 of the Plan.

3.25“Retirement” means, except as otherwise provided in an Award Agreement, a termination of employment which constitutes a “retirement” under any applicable qualified pension benefit plan maintained by the Corporation or an Affiliate, or, if no such plan is applicable, which would constitute “retirement” under the Corporation’s Employee Retirement Plan, if such individual were a participant in that Plan.

3.26“Section 422 Employee” means an Employee who is employed by the Corporation or a “parent corporation” or “subsidiary corporation” (each as defined in Sections 424(e) and (f) of the Code) with respect to the Corporation, including a “parent corporation” or “subsidiary corporation” that becomes such after adoption of the Plan.

3.27“Service” means, if the Participant is (a) an Employee (as determined by the Committee in its discretion), the Participant’s service as an Employee of the Corporation and/or any of its Affiliates, (b) a member of the Board or the board of directors of an Affiliate but not an Employee (as determined by the Committee in its discretion), the Participant’s service as a member of such Board or board of directors, or (c) a consultant or independent contractor to the Corporation or any of its Affiliates (as determined by the Committee in its discretion) and is not described in the preceding clause (b), the Participant’s service as a consultant or independent contractor to the Corporation and/or any of its Affiliates. Except as otherwise provided in an Award Agreement, a Participant’s Service shall not be treated as having terminated if the capacity in which the Participant provides Service, as described in the preceding sentence, changes, provided that the Participant’s Service is continuous notwithstanding such change.

3.28“Share” means a share of Common Stock.

3.29“Stock Appreciation Right” means a right to surrender an Option in consideration for a payment by the Corporation in cash and/or Common Stock, as provided in the discretion of the Committee in accordance with Article VIII.

3.30 “Ten-Percent Stockholder” means a Section 422 Employee who (applying the rules of Section 424(d) of the Code) owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Corporation or a “parent corporation”

Approved January 19, 2011    Page 5

or “subsidiary corporation” (each as defined in Sections 424(e) and (f) of the Code) with respect to the Corporation.

ARTICLE IV
ADMINISTRATION OF THE PLAN

4.01Duties of the Committee. The Plan and Awards shall be administered and interpreted by the Committee as appointed from time to time by the Board pursuant to Section 4.02 of the Plan. The Committee shall have all of the powers allocated to it in this and other Sections of the Plan. The interpretation and construction by the Committee of any provisions of the Plan or of any Award granted under it shall be final and binding. The Committee shall act by vote or written consent of its members. Subject to the express provisions and limitations of the Plan, the Committee may adopt such rules, regulations and procedures as it deems appropriate for the conduct of its affairs. It may appoint one of its members to be chairman and any person, whether or not a member, to be its secretary or agent. The Committee shall report its actions and decisions to the Board at appropriate times but in no event less than one time per Plan Year. The Committee may designate persons other than members of the Committee to carry out the day-to-day ministerial administration of the Plan under such conditions and limitations as it may prescribe, except that the Committee may not delegate its authority with regard to the selection for participation in the Plan and/or the granting of any Awards to Eligible Persons.

4.02Role of the Board. The members of the Committee shall be appointed by, and will serve at the pleasure of, the Board. The Board from time to time may remove members from, or add members to, the Committee.

4.03Revocation for Misconduct. The Board may by resolution immediately revoke, rescind and terminate any Award or portion thereof, to the extent not yet vested, previously granted or awarded under this Plan to a Participant if the Corporation or an Affiliate terminates the Participant’s Service for Cause, which, for purposes hereof, shall mean termination because of personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, or willful violation of any law, rule or regulation (other than traffic violations or similar offenses) or final cease-and-desist order.

4.04Limitation on Liability. No member of the Board or the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Awards granted under it. If a member of the Board or the Committee is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of anything done or not done by him in such capacity under or with respect to the Plan, the Corporation shall indemnify such member against all liabilities and expenses (including attorneys’ fees), judgments, fines and amounts paid in

Approved January 19, 2011    Page 6

settlement actually and reasonably incurred by the member in connection with such action, suit or proceeding if the member acted in good faith and in a manner the member reasonably believed to be in the best interests of the Corporation and its Affiliates and, with respect to any criminal action or proceeding, had no reasonable cause to believe the conduct was unlawful. Nothing herein is intended to limit the rights of indemnification the Board or Committee members may have pursuant to the Corporation’s by-laws or Articles of Incorporation.

4.05Compliance with Law and Regulations. The Awards granted hereunder shall be subject to all applicable federal and state laws, rules and regulations and to such approvals by any government or regulatory agency as may be required. The Corporation shall not be required to issue or deliver any certificates for Shares prior to the completion of any registration or qualification of or obtaining of consents or approvals with respect to such shares under any federal or state law or any rule or regulation of any government body, which the Corporation shall, in its sole discretion, determine to be necessary or advisable. Moreover, no Option or Stock Appreciation Right may be exercised and no Shares shall be issued pursuant to the terms of an Award if the exercise or issuance of such Shares would be contrary to applicable laws and regulations.

4.06Restriction on Transfer. TheCorporation may place a legend upon any certificate representing Shares purchased or received pursuant to an Award granted hereunder noting that the transfer of such Shares may be restricted by applicable laws and regulations.

4.07Minimum Vesting Period for Certain Awards. Restricted Stock Awards, Restricted Stock Unit Awards, (to the extent payable in Shares), Performance Awards (to the extent payable in Shares), and Other Stock-Based Awards granted to Employees shall have a vesting period of not less than (a) three (3) years from date of grant (provided that pro rata vesting over such period shall be permitted) if vesting is subject only to continued service with the Company or a Subsidiary and (b) one (1) year from date of grant if vesting is subject to the achievement of one or more performance objectives, subject in each case to accelerated vesting in the event of the death, Disability or Retirement of the Participant or a Change in Control to the extent provided in the terms of the Award or the Plan. The restrictions set forth in the preceding sentence shall not apply to Restricted Stock Awards, Restricted Stock Unit Awards (to the extent payable in Shares), Performance Awards (to the extent payable in Shares), and Other Stock-Based Awards granted to Employees covering up to 10% of the number of Shares available for the grant of Awards under Article VI of the Plan on the Effective Date.

ARTICLE V
ELIGIBILITY

Approved January 19, 2011    Page 7

Awards may be granted only to Eligible Persons. The designation of a person as an Eligible Person shall be left to the discretion of the Committee.

ARTICLE VI
COMMON STOCK COVERED BY THE PLAN

6.01Option Shares. The aggregate number of Shares for which Awards may be granted under the Plan, subject to adjustment as provided in Article XI shall be 5,000,000. None of such Shares shall be the subject of more than one Award at any time. If any Awards expire unexercised or are forfeited, surrendered, canceled, terminated or settled in cash or other consideration in lieu of Common Stock, the Shares which were theretofore subject (or potentially subject) to such Awards shall again be available for Awards under the Plan to the extent of such expiration, forfeiture, surrender, cancellation, termination or settlement of such Awards.

6.02Subject to adjustment as provided in Article XI, the maximum number of Shares with respect to which an Employee may be granted Awards under the Plan (whether settled in Shares or the cash equivalent thereof) during any calendar year is 250,000. The maximum number of Shares with respect to which an Employee has been granted Awards shall be determined in accordance with Section 162(m) of the Code.

6.03Source of Shares. The Shares issued under the Plan may be authorized but unissued shares, treasury shares or shares purchased by the Corporation from shareholders in public or private transactions for use under the Plan.

ARTICLE VII
DETERMINATION OF AWARDS, NUMBER OF SHARES, ETC.

The Committee shall, in its discretion, but subject to the terms of the Plan, determine from time to time which Eligible Persons will be granted Awards under the Plan and the terms (which need not be identical) of all Awards, including without limitation, time or time at which Awards are granted, the number of Shares subject to each Award, whether each Option will be an Incentive Stock Option or a Nonqualified Option, the exercise price of such Option, any Performance Goals applicable to Awards, any provisions relating to vesting, and the periods during which Options may be exercised and Restricted Shares shall be subject to restrictions. In making all such determinations there shall be taken into account the duties, responsibilities and performance of each respective Eligible Person, his or her present and potential contributions to the growth and success of the Corporation, his or her salary or other compensation, and such other factors as the Committee shall deem relevant to accomplishing the purposes of the Plan.

ARTICLE VIII

OPTIONS AND STOCK APPRECIATION RIGHTS

Approved January 19, 2011    Page 8

8.01Option Award Agreement. Each Option shall be evidenced by an Award Agreement which shall set forth the total number of Shares to which the Option pertains, the exercise price, whether it is a Nonqualified Option or an Incentive Stock Option, and such other terms, conditions, restrictions and privileges as the Committee in each instance shall deem appropriate, provided they are not inconsistent with the terms, conditions and provisions of the Plan.

8.02Option Exercise Price.

(a)Incentive Stock Options. The per share price at which the subject Common Stock may be purchased upon exercise of an Incentive Stock Option shall be no less than one hundred percent (100%) of the Fair Market Value of a share of Common Stock at the time such Incentive Stock Option is granted, except as provided in Section 8.09(a) below.

(b)Nonqualified Options. The per share price at which the subject Common Stock may be purchased upon exercise of a Nonqualified Option shall be no less than one hundred percent (100%) of the Fair Market Value of a share of Common Stock at the time such Nonqualified Option is granted.

8.03Vesting and Exercise of Options.

(a)General Rules. Incentive Stock Options and Nonqualified Options shall become vested and exercisable at the rate and to the extent specified in the Award Agreement. Notwithstanding the foregoing, no vesting shall occur on or after a Participant’s Service is terminated for any reason other than the Participant’s death or Disability, except to the extent provided in Section 8.03(b) or the applicable Award Agreement. In determining the number of Shares with respect to which Options are vested and/or exercisable, fractional Shares will be rounded down to the nearest whole number.

(b)Accelerated Vesting Upon Death or Disability. Unless specifically stated otherwise in an Award Agreement, all Options held by a Participant shall become vested and exercisable in full on the date the Participant’s Service terminates because of his or her death or Disability.

(c)Accelerated Vesting for Changes in Control. Notwithstanding the general rule described in Section 8.03(a), upon the occurrence of a Change in Control all then outstanding Options held by Participants who have not previously incurred a termination of Service shall become immediately vested and exercisable. A “Change in Control” shall mean a change in control of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Exchange Act, whether or not the Corporation in fact is required to comply with Regulation 14A thereunder; provided that, without

Approved January 19, 2011    Page 9

limitation, such a change in control shall be deemed to have occurred if: (i) any “person” (within the meaning of Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d)(3) and 14(d) thereof), other than the Corporation and employee benefit plans of the Corporation and its Affiliates, is or becomes the “beneficial owner” (as defined in Rule 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of securities of the Corporation representing 25% or more of the combined voting power of the Corporation’s then outstanding securities (“Voting Power”), (ii) the Corporation consummates a merger, consolidation, share exchange, division or other reorganization or transaction of the Corporation (a “Fundamental Transaction”) with any other corporation, other than a Fundamental Transaction that results in the voting securities of the Corporation outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least sixty percent (60%) of the combined Voting Power immediately after such Fundamental Transaction of (A) the Corporation’s outstanding securities, (B) the surviving entity’s outstanding securities, or (C) in the case of a division, the outstanding securities of each entity resulting from the division; or (iii) during any period of twenty-four consecutive months during the term of the applicable Award, individuals who at the beginning of such period constituted the Board (including for this purpose any new director whose election or nomination for election by the Corporation’s shareholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who were directors at the beginning of such period or whose appointment, election or nomination was previously so approved or recommended) cease for any reason to constitute at least a majority of the Board.

8.04Duration of Options.

(a)General Rule. Except as provided in Sections 8.04(b) and 8.09, each Option or portion thereof shall be exercisable at any time on or after it vests and becomes exercisable until the earlier of (i) ten (10) years after its date of grant (or such shorter period as may be specified in the Award Agreement), or (ii) three (3) months after termination of the Participant’s Service, unless the Committee in its discretion decides to extend such period of exercise upon termination of Service from three (3) months to a period not exceeding five (5) years. In no event, however, shall any Option be exercisable more than the lesser of ten (10) years from the date it was granted or the original term of the Option.

(b)Exceptions for Terminations Due to Death, Disability or Retirement. If a Participant’s Service is terminated as a result of the Participant’s death, Disability, or Retirement and the Participant has not fully exercised his or her Options, the Participant or the executors, administrators, legatees or distributees of the Participant’s estate shall have the right, during the twelve-month period (or such other period as may be specified in the applicable Award Agreement) following the earlier of the Participant’s death, Disability , or Retirement, to exercise

Approved January 19, 2011    Page 10

such Options to the extent vested on the date of such death, Disability, or Retirement. In no event, however, shall any Option be exercisable after the expiration of its term.

8.05Nonassignability. Options shall not be transferable by a Participant except by will or the laws of descent or distribution, and during a Participant’s lifetime shall be exercisable only by such Participant.

8.06Manner of Exercise. Options may be exercised in part or in whole and at one time or from time to time. The procedures for exercise shall be set forth in the written Award Agreement provided for in Section 8.01 above.

8.07Payment for Shares. Payment in full of the purchase price for Shares purchased pursuant to the exercise of any Option shall be made to the Corporation upon exercise of the Option. All Shares sold under the Plan shall be fully paid and nonassessable. Payment for Shares upon exercise of an Option may be made by the Participant in cash or, at the discretion of the Committee, by delivering Shares or other property equal in Fair Market Value to the purchase price of the Shares to be acquired pursuant to the Option, by withholding some of the Shares which are being purchased upon exercise of an Option, by any combination of the foregoing, or by any other form of payment acceptable to the Committee.

8.08Voting and Dividend Rights. No Participant shall have any voting or dividend rights or other rights of a stockholder in respect of any Shares covered by an Option prior to the time that the Participant’s name is recorded on the Corporation’s stockholder ledger as the holder of record of such shares acquired pursuant to an exercise of an Option.

8.09Additional Terms Applicable to Incentive Stock Options. All Options issued under the Plan as Incentive Stock Options will be subject, in addition to the terms detailed in Sections 8.01-8.08 above, to those contained in this Section 8.09.

(a)Limitation of Ten Percent Stockholders. The price at which Shares may be purchased upon exercise of an Incentive Stock Option granted to an individual who, at the time such Incentive Stock Option is granted is a Ten-Percent Stockholder shall be no less than one hundred and ten percent (110%) of the Fair Market Value of a share of the Common Stock of the Corporation at the time of grant, and such Incentive Stock Option shall by its terms not be exercisable after the earlier of the date determined under Section 8.03 or the expiration of five (5) years from the date such Incentive Stock Option is granted.

(b)Notice of Disposition. A Participant shall immediately notify the Corporation in writing of any sale, transfer, assignment or other disposition (or action constituting a disqualifying disposition within the meaning of Section 421 of the Code) of any Shares acquired through exercise of an Incentive Stock Option, within two (2) years after the

Approved January 19, 2011    Page 11

grant of such Incentive Stock Option or within one (1) year after the acquisition of such shares, setting forth the date and manner of disposition, the number of shares disposed of and the price at which such shares were disposed of.

8.10Stock Appreciation Rights.

(a)General Terms and Conditions. The Committee may, but shall not be obligated to, authorize the Corporation, on such terms and conditions as it deems appropriate in each case, to grant rights to Participants to surrender an exercisable Option, or any portion thereof, in consideration for the payment by the Corporation of an amount equal to the excess of the Fair Market Value of the Shares subject to the Option, or portion thereof, surrendered over the exercise price of the Option with respect to such shares (any such authorized surrender and payment being hereinafter referred to as a “Stock Appreciation Right”). Such payment, at the discretion of the Committee, may be made in Shares valued at the then Fair Market Value thereof, or in cash, or partly in cash and partly in shares of Common Stock.

The terms and conditions set with respect to a Stock Appreciation Right may include (without limitation), subject to the other provisions of this Section 8.10 and the Plan: the period during which, date by which or event upon which the Stock Appreciation Right may be exercised; the method for valuing Shares for purposes of this Section 8.10; a ceiling on the amount of consideration which the Corporation may pay in connection with exercise and cancellation of the Stock Appreciation Right; and arrangements for income tax withholding. The Committee shall have the complete discretion to determine whether, when and to whom Stock Appreciation Rights may be granted.

If a holder of a Stock Appreciation Right terminates Service, the Stock Appreciation Right may be exercised only within the period, if any, within which the Option to which it relates may be exercised.

(b)Effects of Exercise of Stock Appreciation Rights or Options. Upon the exercise of a Stock Appreciation Right, the number of Shares available under the Option to which it relates shall decrease by a number equal to the number of shares for which the Stock Appreciation Right was exercised. Upon the exercise of an Option, any related Stock Appreciation Right shall terminate as to any number of Shares subject to the Stock Appreciation Right that exceeds the total number of shares for which the Option remains unexercised.

(c)Time of Grant. A Stock Appreciation Right may be granted concurrently with the Option to which it relates or at any time thereafter prior to the exercise or expiration of such Option.

Approved January 19, 2011    Page 12

(d)Non-Transferable. The holder of a Stock Appreciation Right may not transfer or assign the Stock Appreciation Right otherwise than by will or in accordance with the laws of descent and distribution, and during a holder’s lifetime a Stock Appreciation Right may be exercisable only by the holder.

(e)Tandem Incentive Stock Option - Stock Appreciation Right. Whenever an Incentive Stock Option and a Stock Appreciation Right authorized hereunder are granted together and the exercise of one affects the right to exercise the other, the following requirements apply:

(1)The Stock Appreciation Right shall expire no later than the expiration of the underlying Incentive Stock Option;

(2)The payment available under the Stock Appreciation Right may not exceed the difference between the exercise price of the underlying Option and the Fair Market Value of the Common Stock subject to the underlying Option at the time the Stock Appreciation Right is exercised;

(3)The Stock Appreciation Right is transferable only when the underlying Incentive Stock Option is transferable, and under the same conditions;

(4)The Stock Appreciation Right may be exercised only when the underlying Incentive Stock Option is eligible to be exercised; and

(5)The Stock Appreciation Right may be exercised only when the Fair Market Value of the Common Stock subject to the Option exceeds the exercise price of the Common Stock subject to the Option.

ARTICLE IX

RESTRICTED SHARES

9.01Restricted Shares.

(a)Terms and Conditions. Grants of Restricted Shares shall be subject to the terms and conditions set forth in this Section 9.01 and any additional terms and conditions, not inconsistent with the express terms and provisions of the Plan, as the Committee shall set forth in the relevant Award Agreement, including terms that condition the vesting of Restricted Shares on the achievement of one or more Performance Goals. Restricted Shares may be granted alone or in addition to any other Awards under the Plan. Subject to the terms of the Plan, the Committee shall determine the number of Restricted Shares to be granted to a Participant and the Committee may provide or impose different terms and conditions on any particular Restricted Share grant

Approved January 19, 2011    Page 13

made to any Participant. With respect to each Participant receiving an Award of Restricted Shares, there shall be issued a stock certificate (or certificates) in respect of such Restricted Shares. Such stock certificate(s) shall be registered in the name of such Participant, shall be accompanied by a stock power duly executed by such Participant, and shall bear, among other required legends, the following legend:

“The transferability of this certificate and the shares of stock represented hereby are subject to the terms and conditions (including, without limitation, forfeiture events) contained in the Washington Federal, Inc. 2011 Incentive Plan and an Award Agreement entered into between the registered owner hereof and Washington Federal, Inc. Copies of such Plan and Award Agreement are on file in the office of the Secretary of Washington Federal, Inc., 425 Pike Street, Seattle, Washington 98101. Washington Federal, Inc. will furnish to the recordholder of the certificate without charge and upon written request at its principal place of business, a copy of such Plan and Award Agreement. Washington Federal, Inc. reserves the right to refuse to record the transfer of this certificate until all such restrictions are satisfied, all such terms are complied with and all such conditions are satisfied.”

Such stock certificate evidencing such shares shall, in the sole discretion of the Committee, be deposited with and held in custody by the Corporation until the restrictions thereon shall have lapsed and all of the terms and conditions applicable to such grant shall have been satisfied.

(b)Restricted Share Grants. A grant of Restricted Shares is an Award of shares of Common Stock granted to a Participant, subject to such restrictions, terms and conditions as the Committee deems appropriate, including, without limitation, (1) restrictions on the sale, assignment, transfer, hypothecation or other disposition of such shares, (2) the requirement that the Participant deposit such shares with the Corporation while such shares are subject to such restrictions, and (3) the requirement that such shares be forfeited upon termination of Service for specified reasons within a specified period of time or for other reasons (including, without limitation, the failure to achieve designated Performance Goals). Each Award of Restricted Shares under the Plan shall be evidenced by an Award Agreement in a form specified by the Committee and setting forth the restrictions, terms, and conditions of the Award.

(c)Restriction Period. In accordance with Sections 9.01(a) and 9.01(b) of the Plan and unless otherwise determined by the Committee (in its sole discretion) at any time and from time to time, Restricted Shares shall only become unrestricted and vested in the Participant in accordance with such vesting schedule relating to such Restricted Shares, if any, as the

Approved January 19, 2011    Page 14

Committee may establish in the relevant Award Agreement (the “Restriction Period”). During the Restriction Period, such stock shall be and remain unvested and a Participant may not sell, assign, transfer, pledge, encumber or otherwise dispose of or hypothecate such Award. Upon satisfaction of the vesting schedule and any other applicable restrictions, terms and conditions, the Participant shall be entitled to receive payment of the Restricted Shares or a portion thereof; as the case may be, as provided in Section 9.01(d) of the Plan.

(d)Payment of Restricted Share Grants. After the satisfaction and/or lapse of the restrictions, terms and conditions established by the Committee in respect of a grant of Restricted Shares, a new certificate, without the legend set forth in Section 9.01(a) of the Plan, for the number of shares of Common Stock which are no longer subject to such restrictions, terms and conditions shall, as soon as practicable thereafter, be delivered to the Participant.

(e)Shareholder Rights. A Participant shall have, with respect to the shares of Common Stock underlying a grant of Restricted Shares, all of the rights of a shareholder of such stock (except as such rights are limited or restricted under the Plan or in the relevant Award Agreement). Any stock dividends paid in respect of unvested Restricted Shares shall be treated as additional Restricted Shares and shall be subject to the same restrictions and other terms and conditions that apply to the unvested Restricted Shares in respect of which such stock dividends are issued.

(f)Accelerated Vesting for Change in Control. Unless otherwise provided in the applicable Award Agreement, all restrictions, terms and conditions applicable to all Restricted Shares then outstanding shall be deemed lapsed and satisfied as of the date of a Change in Control.

ARTICLE X

OTHER AWARDS

10.01Restricted Stock Unit Awards. Each grant of Restricted Stock Units under the Plan shall be evidenced by an Award Agreement that (a) provides for the issuance of Shares (or the cash equivalent thereof) to a Participant at such time(s) as the Committee may specify and (b) contains such other terms and conditions as the Committee may specify, including, terms that condition the issuance or vesting of Restricted Stock Unit Awards upon the achievement of one or more specified Performance Goals.

10.02Performance Awards. Each Performance Award granted under the Plan shall be evidenced by an Award Agreement that (a) provides for the payment of cash or issuance of Shares to a Participant contingent upon the attainment of one or more specified Performance Goals over such period as the Committee may specify, and (b) contains such other terms and

Approved January 19, 2011    Page 15

conditions as the Committee may specify. If the terms of a Performance Award provide for payment in the form of Shares, for purposes of Section 6.02, the Performance Award shall be deemed to cover a number of Shares equal to the maximum number of Shares that may be issued upon payment of the Award. The maximum cash amount payable to any Employee pursuant to all Performance Awards granted to an Employee during a calendar year shall not exceed $2,000,000.

10.03Other Stock-Based Awards. The Committee may in its discretion grant stock-based awards (including awards based on dividends) of a type other than those otherwise provided for in the Plan, including the offer for sale or issuance of unrestricted Shares. Other Stock-Based Awards shall cover such number of Shares and have such terms and conditions as the Committee shall determine, including terms that condition the payment or vesting the Other Stock-Based Award upon the achievement of one or more Performance Goals.

10.04Dividends and Dividend Equivalents. The terms of an Award, other than an Option or Stock Appreciation Right, may provide a Participant with the right, subject to such terms and conditions as the Committee may specify, to receive dividend payments or dividend equivalent payments with respect to Shares covered by such Award, which payments (a) may be either made currently or credited to an account established for the Participant, (b) may be made contingent upon the achievement of one or more Performance Goals, and (c) may be settled in cash or Shares, as determined by the Committee; provided, however, that in no event shall any dividends or dividend equivalents be paid out with respect to any unvested performance Awards.

ARTICLE XI
CHANGES IN CAPITALIZATION AND OTHER MATTERS

11.01No Corporate Action Restriction. The existence of the Plan, any Award Agreement and/or the Awards granted hereunder shall not limit, affect or restrict in any way the right or power of the Board or the shareholders of the Corporation to make or authorize (a) any adjustment, recapitalization, reorganization or other changes in the Corporation’s or any Affiliate’s capital structure or its business, (b) any merger, consolidation or change in the ownership of the Corporation or any Affiliate, (c) any issue of bonds, debentures, capital, preferred or prior preference stocks ahead of or affecting the Corporation’s or any Affiliate’s capital stock or the rights thereof, (d) any dissolution or liquidation of the Corporation or any Affiliate, (e) any sale or transfer of all or any part of the Corporation’s or any Affiliate’s assets or business, or (f) any other corporate act or proceeding by the Corporation or any Affiliate. No Participant, beneficiary or any other person shall have any claim against any member of the Board or the Committee, the Corporation or any Affiliate, or any Employees, officers, shareholders or agents of the Corporation or any Affiliate, as a result of any such action.

Approved January 19, 2011    Page 16

11.02Recapitalization Adjustments. In the event that the Board determines that any dividend or other distribution (whether in the form of cash, Common Stock, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, Change in Control or exchange of Common Stock or other securities of the Corporation, or other corporate transaction or event affects the Common Stock such that an adjustment is determined by the Board to be necessary in order to prevent dilution or enlargement of benefits or potential benefits intended to be made available under the Plan, the Board shall make an equitable adjustment to any or all of (i) the number of Shares or other securities of the Corporation (or number and kind of other securities or property) with respect to which Awards may be granted, (ii) the number of Shares or other securities of the Corporation (or number and kind of other securities or property) subject to outstanding Awards, and (iii) the exercise price with respect to any Stock Option, or make provision for an immediate cash payment to the holder of an outstanding Award in consideration for the cancellation of such Award.

11.03Mergers. If the Corporation enters into or is involved in any merger, reorganization, Change in Control or other business combination with any person or entity (a “Merger Event”), the Board may, prior to such Merger Event and effective upon such Merger Event, take such action as it deems appropriate, including, but not limited to, replacing an Award with a substitute award in respect of the shares, other securities or other property of the surviving corporation or any affiliate of the surviving corporation on such terms and conditions, as to the number of shares, pricing and otherwise, which shall substantially preserve the value, rights and benefits of any Award as of the date of the consummation of the Merger Event. Upon receipt by an affected Participant of any such substitute award (or payment) as a result of any such Merger Event, such Participant’s affected Awards for which such substitute awards were received shall be thereupon cancelled without the need for obtaining the consent of any such affected Participant. Notwithstanding anything to the contrary in the Plan, if any Merger Event or Change in Control occurs, the Corporation shall have the right, but not the obligation, to cancel all or a portion of each Participant’s Awards and to pay to each affected Participant in connection with the cancellation of each such Award, an amount equal to the fair value of the Award. The fair value of an Option shall be deemed to be the excess, if any, of the Fair Market Value of the Shares covered by the Option over the aggregate exercise price of the Option (it being understood that, in such event, if an Option has a per share exercise price that is equal to, or in excess of, the Fair Market Value of a Share, the Option will be cancelled and terminated without payment or consideration therefor). The cancellation of an Option shall result in the cancellation of any related Stock Appreciation Right to the same extent.

11.04No fractional shares or securities shall be issued pursuant to any adjustment made pursuant to this Article XI, and any fractional shares or securities resulting from any such adjustment shall be eliminated by rounding downward to the nearest whole share or security. All

Approved January 19, 2011    Page 17

determinations required to be made under this Article XI shall be made by the Committee in its discretion and shall be final and binding.

ARTICLE XII
AMENDMENT AND TERMINATION OF THE PLAN

The Board may, by resolution, at any time terminate, amend or revise the Plan with respect to any Shares as to which Awards have not been granted, subject to any required stockholder approval or any stockholder approval which the Board may deem to be advisable for any reason, such as for the purpose of obtaining or retaining any statutory or regulatory benefits under tax, securities or other laws or satisfying any applicable stock exchange listing requirements. Subject to the terms and conditions of the Plan, the Committee may modify the terms of any outstanding Awards; provided, however, that (a) no modification of an Award shall, without the consent of the Participant, alter or impair any of the Participant’s rights or obligations under such Award, and (b) subject to Article XI, in no event may an Option be (i) modified to reduce the exercise price of the Option (or any Stock Appreciation Right) or (ii) cancelled or surrendered in consideration for cash, other Awards, or the grant of a new Option (or Stock Appreciation Right) with a lower exercise price.

ARTICLE XIII
SERVICE

Neither the Plan nor the grant of any Awards hereunder nor any action taken by the Committee or the Board in connection with the Plan shall give any Eligible Person any right to be retained in the Service of the Corporation or any Affiliate.

ARTICLE XIV
WITHHOLDING

The Corporation shall have the right to deduct from any payment or settlement under the Plan, including, without limitation, the exercise of any Stock Option or Stock Appreciation Right, or the delivery, transfer or vesting of any Common Stock or Restricted Shares, any federal, state, local or other taxes of any kind which the Committee, in its sole discretion, deems necessary to be withheld to comply with the Code and/or any other applicable law, rule or regulation. Shares of Common Stock may be used to satisfy any such tax withholding. Such Common Stock shall be valued based on the Fair Market Value of such stock as of the date the tax withholding is required to be made, such date to be determined by the Committee. In addition, the Corporation shall have the right to require payment from a Participant to cover any applicable withholding or other employment taxes due upon any payment or settlement under the Plan.

ARTICLE XV
EFFECTIVE DATE OF THE PLAN; TERM

Approved January 19, 2011    Page 18

15.01Effective Date of the Plan. This Plan shall become effective on the Effective Date, and Awards may be granted hereunder on or after the Effective Date and prior to the termination of the Plan.

15.02Term of Plan. Unless sooner terminated, the Plan shall remain in effect for a period of ten (10) years ending on the tenth anniversary of the Effective Date. Termination of the Plan shall not affect any Awards previously granted and such Awards shall remain valid and in effect until they have been fully exercised or earned, are surrendered or by their terms expire or are forfeited.

ARTICLE XVI
MISCELLANEOUS

16.01Governing Law. To the extent not governed by federal law, this Plan shall be construed under the laws of the State of Washington.

16.02Pronouns. Whenever appropriate, the masculine pronoun shall include the feminine pronoun, and the singular shall include the plural.

16.03Certificates. Notwithstanding anything to the contrary herein, to the extent that the Plan provides for issuance of stock certificates to reflect the issuance of Shares, the issuance may be effected on a noncertificated basis, to the extent not prohibited by applicable law or the rules of any stock exchange or automated dealer quotation system on which the Shares are traded.

Approved January 19, 2011    Page 19

EX-13

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

2016 ANNUAL REPORT

Table of Contents

Business Description	2
Letter to Stockholders	3
Management's Discussion and Analysis	6
Selected Financial Data	22
Audited Financial Statements	23
Notes to the Financial Statements	29
Management's Report on Internal Controls	69
Audit Reports	70
Stock Performance Graphs	72
General Corporate Information	74

1

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

2016 ANNUAL REPORT

BUSINESS DESCRIPTION

Washington Federal Inc. (“Company” or “Washington Federal”) is a bank holding company headquartered in Seattle, Washington that conducts its operations through Washington Federal, National Association (“Bank”), a federally chartered national bank subsidiary.

The Company had its origins on April 24, 1917 in Ballard, Washington and this year is celebrating its First 100 Years in business. Washington Federal is engaged primarily in providing lending, depository, insurance and other banking services to consumers, mid-sized to large businesses, and owners and developers of commercial real estate. On November 9, 1982 the Company listed and began trading on the NASDAQ. Profitable operations have been recorded every year since and the Company is often leading the industry in important measures of financial performance such as efficiency and capital strength. Today the stock trades at 85 times its original 1982 offering price, has paid 135 consecutive quarterly cash dividends and, with cash dividends reinvested, has returned 12,177% total shareholder return to those who invested 33 years ago.

Over the years, the Company has expanded to serve banking clients in eight western states. While much has changed since its founding, one constant has been the commitment to doing business with integrity and treating employees, clients and investors fairly. Our tagline “invested here” is intended to reflect our people-first values and express the Company’s dedication to helping our neighborhoods and communities thrive.

FINANCIAL HIGHLIGHTS

As of and for the year end September 30,	2016			2015			% Change
	(In thousands, except per share data)
Assets	$	14,888,063		$	14,568,324		+2.2%
Cash and cash equivalents	450,368			284,049			+58.6
Investment securities	849,983			1,117,339			(23.9)
Loans receivable, net	9,910,920			9,170,634			+8.1
Mortgage-backed securities	2,490,510			2,906,440			(14.3)
Customer accounts	10,600,852			10,631,703			(0.3)
FHLB advances and other borrowings	2,080,000			1,830,000			+13.7
Stockholders’ equity	1,975,731			1,955,679			+1.0
Net income	164,049			160,316			+2.3
Diluted earnings per share	1.78			1.67			+6.6
Dividends per share	0.55			0.54			+1.9
Stockholders’ equity per share	22.03			21.04			+4.7
Shares outstanding	89,681			92,936			(3.5)
Return on average stockholders’ equity	8.33		%	8.21		%	+1.5
Return on average assets	1.12			1.10			1.8
Efficiency ratio (1)	50.80			49.54			+2.5

(1) Calculated as total operating costs divided by net interest income, plus other income (excluding non-operating gains)

2

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

2016 ANNUAL REPORT

TO OUR STOCKHOLDERS

Fellow Stockholder,

It is my privilege to report that in 2016 your Company completed its ninety-ninth year in business with record results. Net income for the year totaled $164,049,000, a 2.3% increase over prior year earnings of $160,316,000. Earnings per share improved for the sixth year in succession to $1.78 from $1.67, a 6.6% increase from fiscal 2015 and also the highest in our history. It was a great year in virtually all regards. Washington Federal has now reported profitable operations to shareholders for 34 consecutive years since our initial public offering in 1982.

The strong financial performance of the Company translated to healthy rewards for shareholders, with total return for the year of 19.69%. In January, the cash dividend increased by 7.7% to fourteen cents per share. Contributing to increasing shareholder returns over the last few years has been our disciplined approach to repurchasing shares. During the fiscal year, 3,867,563 shares, representing 4.16% of those outstanding, were repurchased at a weighted average price of $22.72, and in September the Board of Directors approved an additional five million shares for the program. We believe that repurchase of our stock continues to be a viable alternative for excess capital, although investment in growth is always preferable. I’d like to call your attention to the accompanying chart that compares the performance of the Company’s stock to some of the peer banks within our market going back to the onset of the last recession. The chart visually displays the value of long-term thinking and our conservative approach to financial management.

Several operational accomplishments contributed to our good results. For example, one of our key strategies is to diversify the loan portfolio by increasing the volume of loans originated for business purposes. I am pleased to report that management delivered on the strategy as commercial loans represented nearly 70% of all new loan originations, which totaled a record $3.9 billion. We favor commercial over consumer loans at present for two reasons: 1) Reduced exposure to rising interest rates due to shorter terms and floating rates, and 2) Fewer regulatory burdens as commercial borrowers are presumed by the government to be sophisticated. Consumer loans outstanding are centered in plain vanilla, thirty-year fixed-rate mortgages that we originate for our own portfolio. Mortgage lending is still a large part of our business and remains very important to our long-term prosperity. That portfolio is composed of the highest quality loans we place on the books, and has historically been a source of earnings stability during recessionary periods. We are in the mortgage business for the long haul.

We also made substantial progress toward the goal of improving the bank’s deposit mix. Ten years ago certificates of deposit (“CDs”) represented nearly 80% of total deposits. At September 30^th, the funding concentration in CDs had been reduced to 43%. Our goal is to increase transaction accounts until CDs represent 20% or less of total deposits. While more expensive to service, transaction accounts are a more stable source of funds over time and through business cycles.

A strong capital position is the keystone of our financial management philosophy. Like equity in your own home, the capital on our balance sheet allows us to operate with less debt and enhances our financial stability. Our conservative approach has always led us to hold more capital than other banks of similar size. We know that there is a measurable cost of underleveraged capital during periods of economic prosperity, but we have yet to develop a formula that can tell us exactly the right amount of cushion needed to get through the next recession. We gladly pay a reasonable opportunity cost in times of economic expansion to insure that Washington Federal will be standing strong after the next crisis passes, just as we were after the Great Recession. At fiscal year-end, SNL, an independent bank rating agency, listed Washington Federal as having the strongest capital position among the 100 largest banks in the United States after adjusting for the riskiness of assets.

3

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

2016 ANNUAL REPORT

The primary driver of profits in our business is known as Net Interest Income, which is the net difference between interest income from earning assets and interest expense paid for funding. Despite ultra low yields on loans and investments, Net interest Income improved by $6.8 million over the prior year. The improvement was accomplished largely by shifting funds from lower yielding investments to higher yielding loans. We have also worked tenaciously over the last several years to position the Company to benefit somewhat from higher interest rates. Should both long and short term rates move higher in tandem, we expect that Net Interest Income would improve.

Our business model has historically focused on margin and therefore has not generated a prodigious amount of fee income. Although Other Income increased during the past year, this is one area that holds prospects for improved performance. One strategic initiative will add significant economic value to our consumer checking products that we believe clients will welcome with a willingness to pay. Another opportunity is to begin collecting fees that we chose to forego last year due to the impact to clients of the system conversion described below. Lastly, we hope to continue to grow our insurance revenues.

Expenses increased from the prior year by $10.6 million, generally due to higher spending on technology early in the fiscal year, although costs are now trending lower. Our efficiency ratio, a measure of pennies spent to produce one dollar of revenue, amounted to 50.8%; a high ratio by our standards yet still among the best in the industry. We expect the efficiency ratio to improve this year, although investors should know that cost pressures, particularly labor related expenses, are increasing.

Finally, net income was bolstered by several events, including a $10 million pre-tax gain on the sale of real estate owned. Improved asset quality also enabled the Company to recapture $6.3 million in expense previously taken for expected loan losses that did not materialize. It seems each year we experience some unexpected gains and that may continue; however, investors should be aware that there is always the potential for non-recurrence. The sum of the parts enabled Return on Assets to increase to 1.12%, versus 1.10% in the prior year, while Return on Equity increased from 8.21% to 8.33%.

Financial results were especially impressive given that the first half of the fiscal year found management attention laser-focused on the conversion of virtually all of the Company’s operating systems. Planning, implementation and the subsequent cleanup activities were incredibly intense and did not really abate until the end of the second fiscal quarter, leaving many of my colleagues in need of a well-earned vacation. The project was a terrific team building experience though that created great confidence in our ability to execute on even the biggest and most complex tasks. Improving our competitiveness, the new systems provide real time processing consistent with the expectation of today’s market, and should also provide growth capacity for at least a generation. The total upgrade investment amounted to approximately $40 million and will increase the baseline cost of information technology expense by $2-3 million per year. Technology continues to advance, so ongoing investment will be needed to maintain competitive products and provide for ever-improving security measures to protect sensitive client information. The conversion did entail some disruption and we are ever so thankful to our clients for their patience with this process.

Although we wish that the endless rulemaking driven by Congress would stop, we appreciate our regulators and believe that over time we have built a relationship of mutual trust that makes it easier for all of us to function within an amazingly complex environment. This year a brief comment on our consumer sales practices is necessary in light of well-publicized shortcomings found at another institution. Investors and clients alike should know that our branch personnel have never operated on commission, and do not face hard cross-selling goals. Rather, they are trained to have conversations with our clients to identify needs that can be matched against the benefits of our products. They are also trained that accounts are to be opened and fee services provided only when the client both wants and needs them. Our view has always been that if we simply treat people fairly and conduct business with integrity, in the long run the world will find a path to our door. For the sake of society, I hope that we’re right.

This year there have been some executive management changes that deserve acknowledgement. Executive Vice Presidents Linda Brower, Tom Kasanders and Jack Jacobson have been virtually indispensable in building our capabilities over the past many years. As Chief Administrative Officer, Linda transformed our back office operations to support a much larger and more complex institution than she found, while Tom and Jack led unprecedented growth in the Business Banking and Commercial Real Estate segments, respectively. Their retirements come too soon for me, but are healthy for the organization as they open new opportunities for those they have trained so well for succession. On behalf of everyone at Washington Federal, I thank them for their professionalism, hard work, support and friendship and wish them the very best futures. I also wish to acknowledge and congratulate Brent Beardall for his title promotion. In July, he became only the sixth person in nearly a century to be awarded the title of President.

We also continue to update and diversify the Board of Directors. In September we added Erin Lantz to the Board. Erin is Vice President and General Manager of Mortgages at Zillow Group, Inc. She brings deep knowledge of the entire home buying and financing process, along with a keen understanding of consumer behaviors and the value of big data. I look forward to introducing her to you at the upcoming Annual Meeting.

4

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

2016 ANNUAL REPORT

Looking to the future, prospects for growth in our core business are as promising as they’ve been in some time. The Company is in great shape financially, with the deepest management bench in our long history. New systems are stable and being steadily enhanced, asset quality is nearing historic highs, the pipeline for lending activity is robust and most of our Western U.S markets are prosperous and experiencing faster than average growth. While we haven’t forgotten the hard lessons of the last economic downturn, it’s exciting to have the systems, leadership and financial wherewithal to be once again focused on growth and service to our clients as we celebrate our First 100 Years. We won’t be here to see it, but as always we’ll go about our business with a spirit of stewardship intended to enable a future generation to have a chance at celebrating the Second 100 Years.

In closing, allow me to thank the Board of Directors and my colleagues on the Executive Management Committee and throughout our eight state territory for their hard work and support of the Company’s values throughout a very interesting, challenging and in the end, a most rewarding year.

I look forward to seeing you at the Sheraton Hotel in downtown Seattle on January 18, 2017 at 2:00 P.M for the Annual Meeting of Shareholders. In the meantime, you can help our business grow and prosper by referring your friends, neighbors and the businesses you associate with to Washington Federal for all their banking needs

Sincerely,

Roy M. Whitehead

Chairman of the Board and Chief Executive Officer

5

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

We make statements in this Annual Report that constitute forward-looking statements. Words such as “expects,” “anticipates,” “believes,” “estimates,” “intends,” “forecasts,” “projects” and other similar expressions as well as future or conditional verbs such as “will,” “should,” “would” and “could” are intended to help identify such forward-looking statements. These statements are not historical facts, but instead represent current expectations, plans or forecasts of the Company and are based on the beliefs and assumptions of the management of the Company and the information available to management at the time that these disclosures were prepared. The Company intends for all such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions that are difficult to predict and often are beyond the Company's control. Actual outcomes and results may differ materially from those expressed in, or implied by, the Company's forward-looking statements.

You should not place undue reliance on any forward-looking statement and should consider the following uncertainties and risks, as well as the risks and uncertainties discussed elsewhere in this report, including under "Item 1A. Risk Factors” contained in our Form 10-K and in any of the Company's other subsequent Securities and Exchange Commission filings, which could cause our future results to differ materially from the plans, objectives, goals, estimates, intentions, and expectations expressed in forward-looking statements:

• a deterioration in economic conditions, including declines in the real estate market and home sale volumes and financial stress on borrowers as a result of the uncertain economic environment;

• economic downturn, including high unemployment rates and declines in housing prices and property values;

• the effects of and changes in monetary and fiscal policies of the Board of Governors of the Federal Reserve System and the U.S. Government;

• fluctuations in interest rate risk and changes in market interest rates;

• the Company's ability to make accurate assumptions and judgments about the collectability of its loan portfolio, including the creditworthiness of its borrowers and the value of the assets securing these loans;

• the Company's ability to successfully complete merger and acquisition activities and realize expected strategic and operating efficiencies associated with such activities;

• the Company's ability to manage its expenses to remain at levels that are appropriate for its business activities and their level of complexity;

• legislative and regulatory limitations, including those arising under the Dodd-Frank Wall Street Reform Act and potential limitations in the manner in which we conduct our business and undertake new investments and activities;

• the ability of the Company to obtain external financing, including client deposits and wholesale borrowing sources, to fund its operations or obtain this financing on favorable terms;

• changes in other economic, competitive, governmental, regulatory, and technological factors affecting the Company's markets, operations, pricing, products, services and fees;

• the ability of the Company to identify and mitigate information security risks;

• the success of the Company at managing the risks involved in the foregoing and managing its business; and

• the timing and occurrence or non-occurrence of events that may be subject to circumstances beyond the Company's control.

All forward-looking statements speak only as of the date on which such statements are made, and Washington Federal undertakes no obligation to update or revise any forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events, changes to future operating results over time, or the impact of circumstances arising after the date the forward-looking statement was made.

6

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL

Washington Federal, Inc. is a Washington corporation headquartered in Seattle, Washington. The Company is a bank holding company that conducts its operations through a national bank subsidiary, Washington Federal, National Association. The Bank is principally engaged in the business of attracting deposits from the general public and investing these funds, together with borrowings and other funds, in commercial and consumer loans. As used throughout this document, the terms "Washington Federal" or the "Company" refer to Washington Federal, Inc. and its consolidated subsidiaries and the term "Bank" refers to the operating subsidiary Washington Federal, National Association.

The Company's fiscal year end is September 30th. All references to 2016, 2015 and 2014 represent balances as of September 30, 2016, September 30, 2015 and September 30, 2014, or activity for the fiscal years then ended.

CRITICAL ACCOUNTING POLICIES

Preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect reported amounts of certain assets, liabilities, revenues and expenses in the Company's consolidated financial statements. Accordingly, estimated amounts may fluctuate from one reporting period to another due to changes in assumptions underlying estimated values.

The Company has determined that the only accounting policy critical to an understanding of the consolidated financial statements of Washington Federal relates to the methodology for determining the amount of the allowance for loan losses. The Company maintains an allowance to absorb losses inherent in the loan portfolio. The allowance is based on ongoing, quarterly assessments of the probable and estimable losses inherent in the loan portfolio.

The general loan loss allowance is established by applying a loss percentage factor to the different loan types. For example, residential real estate loans are not individually analyzed for impairment and loss exposure because of the significant number of loans, their relatively small balances and their historically low level of losses. See the "Asset Quality and Allowance for Loan Losses" section below for additional information about establishing the loss factors. Specific allowances may be established for loans that are individually evaluated.

INTEREST RATE RISK

The primary source of income for the Company is net interest income, which is the difference between the interest income generated by interest-earning assets and the interest expense incurred for interest-bearing liabilities. The level of net interest income is a function of the average balance of interest-earning assets and interest-bearing liabilities and the difference between the yield on earning assets and the cost of interest-bearing liabilities. Both the pricing and mix of the Company's interest-earning assets and interest-bearing liabilities influence these factors. All else being equal, if the interest rates on the Company's interest-bearing liabilities increase at a faster pace than the interest rates on its interest-earning assets, the result would be a reduction in net interest income and with it, a reduction in net earnings.

Based on Management's assessment of the current interest rate environment, the Company has taken steps, including growing shorter-term loans and transaction deposit accounts, investing in variable-rate securities and extending the maturity on borrowings, to position the Company for changing interest rates.

The Company's balance sheet strategy, in conjunction with low operating costs, has allowed the Company to manage interest rate risk, within guidelines established by the Board, through all interest rate cycles. It is management's objective to grow the dollar amount of net interest income, through the rate cycles, acknowledging that there will be some periods of time when that will not be feasible.

Management relies on various measures of interest rate risk, including modeling of changes in the Company's forecasted net interest income under various rate change scenarios, the impact of interest rate changes on the net portfolio value ("NPV") and an asset/liability maturity gap analysis.

Net Interest Income Sensitivity. We estimate the sensitivity of our net interest income to changes in market interest rates using an interest rate simulation model that includes assumptions related to the level of balance sheet growth, deposit repricing characteristics and the rate of prepayments for multiple interest rate change scenarios. Interest rate sensitivity depends on certain

7

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

repricing characteristics in our interest-earnings assets and interest-bearing liabilities, including the maturity structure of assets and liabilities and their repricing characteristics during the periods of changes in market interest rates. The analysis assumes a constant balance sheet. Actual results would differ from the assumptions used in this model, as Management monitors and adjusts loan and deposit pricing and the size and composition of the balance sheet to respond to changing interest rates.

In the event of an immediate and parallel increase of 200 basis points in both short and long-term interest rates, the model estimates that net interest income would increase by 3.2% in the next year. This compares to an estimated decrease of 2.2% as of the September 30, 2015 analysis. It is noted that a flattening yield curve where the spread between short-term rates and long-term rates decreases would likely result in lower net interest income. However, Management estimates that a gradual increase of 300 basis points in short term rates and 100 basis points in long term rates over two years would result in a net interest income increase of 2.1% in the first year and increase of 4.4% in the second year assuming a constant balance sheet and no management intervention.

NPV Sensitivity. The NPV is an estimate of the market value of shareholders' equity at a point in time. It is derived by calculating the difference between the present value of expected cash flows from interest-earning assets and the present value of expected cash flows from interest-paying liabilities and off-balance-sheet contracts. The sensitivity of the NPV to changes in interest rates provides a longer term view of interest rate risk as it incorporates all future expected cash flows. As of September 30, 2016, in the event of an immediate and parallel increase of 200 basis points in interest rates, the NPV is estimated to decline by $479 million or 18.6% and the NPV to total assets ratio to decline to 14.8% from a base of 16.9%. As of September 30, 2015, the NPV in the event of a 200 basis point increase in rates was estimated to decline by $536 million or 19.7% and the NPV to total assets ratio to decline to 15.9% from a base of 18.4%. The decreased NPV sensitivity and lower base NPV ratio is primarily due to lower interest rates as of September 30, 2016.

Repricing Gap Analysis. At September 30, 2016, the Company had approximately $1.5 billion more in liabilities subject to maturity or repricing in the next year than assets, which resulted in a one-year repricing gap of (10.1)% of total assets. This compares to the (13.4)% gap as of September 30, 2015. A negative repricing gap implies that funding costs will change more rapidly than interest income on earning assets with movements in interest rates. A negative repricing gap typically results in lower margins when interest rates rise and higher margins when interest rates decline. The interest rate gap analysis provides management with a high-level indication of interest rate risk, but it is considered less reliable than more detailed modeling. Cash and cash equivalents of $450 million and stockholders' equity of $2.0 billion provide management with additional flexibility in managing interest rate risk going forward.

The following table shows the estimated repricing periods for earning assets and paying liabilities:

	Repricing Period
September 30, 2016	Within One Year			After 1 year - before 6 Years			Thereafter			Total
	(In thousands)
Earning Assets (1)	$	5,095,776		$	4,885,359		$	3,763,346		$	13,744,481
Paying Liabilities (2)	(6,599,318		)	(3,922,868		)	(2,174,161		)	(12,696,347		)
Excess (Liabilities) Assets	$	(1,503,542	)	$	962,491		$	1,589,185
Excess as % of Total Assets	(10.10		)%
Policy limit for one year excess	(20.00		)%

(1) Asset repricing period includes estimated prepayments based on historical activity.

(2) Liability repricing includes estimated duration of non-maturity deposits.

Interest Rate Spread. The interest rate spread is measured as the difference between the rate on total loans and investments and the rate on costing liabilities at the end of each period. The interest rate spread decreased to 2.65% at September 30, 2016 from 2.73% at September 30, 2015. The spread decrease of 8 basis points is primarily due to payoffs of loans at generally higher interest rates and new loan originations being at lower interest rates, as well as an increase in the proportion of funding provided by FHLB advances at rates higher than the average cost of customer deposits. As of September 30, 2016, the weighted average rate on

8

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

loans, mortgage backed securities and investments decreased by 5 basis points to 3.58% compared to September 30, 2015, while the weighted average cost of funds increased by 3 basis point to 0.93%.

	SEP 2016		JUN 2016		MAR 2016		DEC 2015		SEP 2015		JUN 2015		MAR 2015		DEC 2014
Interest rate on loans and mortgage-backed securities	3.86	%	3.92	%	3.94	%	3.90	%	3.94	%	3.96	%	4.10	%	4.14	%
Interest rate on investment securities	1.25		1.17		1.29		1.25		1.19		1.12		0.94		1.02
Combined earning assets	3.58		3.61		3.69		3.61		3.63		3.61		3.63		3.68
Interest rate on customer accounts	0.50		0.51		0.50		0.48		0.48		0.48		0.48		0.50
Interest rate on borrowings	3.15		3.13		3.23		3.20		3.35		3.43		3.49		3.49
Combined cost of funds	0.93		0.94		0.93		0.90		0.90		0.90		0.92		0.94
Interest rate spread	2.65	%	2.67	%	2.76	%	2.71	%	2.73	%	2.71	%	2.71	%	2.74	%

The chart below shows the volatility of our period end net interest spread (dashed line measured against the right axis) compared to the relatively consistent growth in net interest income (solid line measured against the left axis). The relative consistency of net interest income is accomplished by actively managing the size and composition of the balance sheet through different rate cycles.

Net Interest Margin. The net interest margin is measured using the interest income and expense over the average assets and liabilities for the period. The net interest margin increased to 3.11% for the year ended September 30, 2016 from 3.08% for the year ended September 30, 2015. The yield on earning assets increased 2 basis points to 3.97% and the cost of interest bearing liabilities declined by 1 basis point to 0.93%. The higher yield on earning assets is the result of changes in the asset mix as the average balance of mortgage-backed securities and other investment securities decreased while the average balance of loans receivable increased. The decrease in interest cost was due to changes in the mix of customer deposits and FHLB advances.

9

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

For the year ended September 30, 2016, average earning assets increased by 0.6% to $13,530,558,000, up from $13,444,499,000 for the year ended September 30, 2015. During 2016, average loans receivable increased $912,916,000 or 10.6%, while the combined average balances of mortgage backed securities, other investment securities and cash decreased by $802,078,000 or 17.0%. Management views organic loan growth as the highest and best use of capital, thus the shift in earning assets away from investment securities and into loans receivable is seen as beneficial.

During 2016, average customer deposit accounts decreased $66,870,000 or 0.6% and the average balance of borrowings increased by $143,530,000 or 7.8% from 2015.

10

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following table sets forth the information explaining the changes in the net interest income and net interest margin for 2016 compared to the prior year.

	Twelve Months Ended September 30, 2016						Twelve Months Ended September 30, 2015
	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
	(In thousands)						(In thousands)
Assets
Loans and covered loans	$	9,511,351	$	454,085	4.77	%	$	8,598,435	$	437,002	5.08	%
Mortgaged-backed securities	2,737,947		62,949		2.30		3,073,180		71,392		2.32
Cash & Investments	1,167,596		16,282		1.39		1,634,441		20,363		1.25
FHLB & FRB stock	113,664		3,477		3.06		138,443		1,796		1.30
Total interest-earning assets	13,530,558		536,793		3.97	%	13,444,499		530,553		3.95	%
Other assets	1,181,975						1,102,827
Total assets	$	14,712,533					$	14,547,326
Liabilities and Equity
Customer accounts	$	10,589,817	$	52,485	0.50	%	$	10,656,687	$	51,054	0.48	%
FHLB advances	1,992,434		64,059		3.22		1,848,904		66,018		3.57
Total interest-bearing liabilities	12,582,251		116,544		0.93	%	12,505,591		117,072		0.94	%
Other liabilities	161,446						89,140
Total liabilities	12,743,697						12,594,731
Stockholders' equity	1,968,836						1,952,595
Total liabilities and equity	$	14,712,533					$	14,547,326
Net interest income			$	420,249					$	413,481
Net interest margin					3.11	%					3.08	%

11

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ASSET QUALITY & ALLOWANCE FOR LOAN LOSSES

The Company maintains an allowance to absorb losses inherent in the loan portfolio. The amount of the allowance is based on ongoing, quarterly assessments of the probable and estimable losses inherent in the loan portfolio. The Company's methodology for determining the appropriateness of the allowance is primarily based on a general allowance methodology and also includes specific allowances. The Company also has a reserve for unfunded commitments.

The loan loss allowance is primarily established by applying a loss percentage factor to the different loan types. Management believes loan types are the most relevant factor in the allowance calculation for groups of homogeneous loans as the risk characteristics within these groups are similar. The loss percentage factor is made up of two parts - the historical loss factor (“HLF”) and the qualitative loss factor (“QLF”).

The HLF takes into account historical charge-offs by loan type. The Company uses a 10 year average of historical loss rates for each loan category multiplied by an estimated loss emergence period. The loss emergence period is the likely period of time during which a residential or commercial loan borrower experiencing financial difficulties might be utilizing their cash reserves prior to becoming delinquent on their loan, plus the period of time that it takes the bank to work out the loans. The Company's use of a 10 year average is intended to encompass a full credit cycle.

The QLF is based on management's continuing evaluation of the pertinent factors underlying the quality of the loan portfolio, including changes in the size and composition of the loan portfolio, actual loan loss experience, delinquency trends, current economic conditions, collateral values, geographic concentrations, seasoning of the loan portfolio, specific industry conditions, and the duration of the current business cycle. These factors are considered by loan type. Single family residential loan sub-types are evaluated in groups by loan to value, non-owner or owner occupied, and delinquency status. Credit quality has been improving in most loan categories during the year, but at different paces. In addition, loan growth or declines for each loan category are taken into consideration.

The total allowance for loan loss increased by $6,665,000, or 6.2% from $106,829,000 as of September 30, 2015 to $113,494,000 at September 30, 2016. As of September 30, 2016, the Company had $366,000 of specific reserves for individually evaluated loans and the remaining balance of $113,128,000 is general allowance, which was comprised of $89,918,000 related to HLF and $23,210,000 related to qualitative factors. The Company released $6,400,000 of allowance for loan losses in 2016 due in large part to net recoveries of previously charged off loans of $13,065,000. This was comprised of $19,065,000 in recoveries and $6,000,000 in charge offs in 2016.

The ratio of the allowance for loan losses and reserves for unfunded commitments to total gross loans decreased to 1.07% as of September 30, 2016 from 1.13% as of September 30, 2015 due to the combination of improving credit quality and loan growth.

The reserve for unfunded commitments was $3,235,000 as of September 30, 2016 compared to $3,085,000 as of September 30, 2015.

The recovery of the carrying value of loans is susceptible to future market conditions beyond the Company's control, which may result in losses or recoveries differing from those estimated.

Restructured loans. Restructured single-family residential loans are reserved for under the Company's loan loss reserve methodology. Most troubled debt restructured ("TDR") loans are accruing and performing loans where the borrower has proactively approached the Company about modifications due to temporary financial difficulties. Each request is individually evaluated for merit and likelihood of success. As of September 30, 2016, single-family residential loans comprised 87.2% of restructured loans. The concession for these loans is typically a payment reduction through a rate reduction of 100 to 200 bps for a specific term, usually six to twelve months. Interest-only payments may also be approved during the modification period.

Outstanding TDRs decreased to $261,531,000 as of September 30, 2016 from $302,713,000 as of the prior year end. As of September 30, 2016, 96.2% of the restructured loans were performing. During 2016, there were additions of $27,184,000 and reductions of $68,366,000 due to prepayments and transfers to real estate owned ("REO").

Concessions for construction, land A&D and multi-family loans are typically an extension of maturity combined with a rate reduction of normally 100 bps. Before granting approval to modify a loan in a TDR, a borrower’s ability to repay is considered

12

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

by evaluating its current income levels, debt to income ratio, credit score, loan payment history, and an updated evaluation of the secondary repayment source.

If a loan is on non-accrual status before becoming a TDR it will stay on non-accrual status following restructuring until it has been performing for at least six months, at which point it may be moved to accrual status. If a loan is on accrual status before it becomes a TDR, and it is concluded that a full repayment is highly probable, it will remain on accrual status following restructuring. If the homogeneous restructured loan does not perform, it is placed in non-accrual status when it is 90 days delinquent. For commercial loans, six consecutive payments on newly restructured loan terms are required prior to returning the loan to accrual status. After the required six consecutive payments are made, a management assessment may conclude that collection of the entire principal and interest due is still in doubt. In those instances, the loan will remain on non-accrual. A loan that defaults and is subsequently modified would impact the Company's delinquency trend, which is part of the QLF component of the general reserve calculation. Any modified loan that re-defaults and is charged-off would impact the HLF component of our general reserve calculation.

Non-performing assets. Non-performing assets were $71,441,000, or 0.48% of total assets, at September 30, 2016 compared to $128,908,000, or 0.88% of total assets, at September 30, 2015.

The following table provides detail related to the Company's non-performing assets.

	September 30,
Non-Performing Assets	2016		2015		$ Change			% Change
	(In thousands)
Non-accrual loans:
Single-family residential	$	33,148	$	59,074	$	(25,926	)	(43.9	)%
Construction	—		754		(754		)	(100.0	)
Construction – custom	—		732		(732		)	(100.0	)
Land – acquisition & development (A&D)	58		—		58			N/M
Land – consumer lot loans	510		1,273		(763		)	(59.9	)
Multi-Family	776		2,558		(1,782		)	(69.7	)
Commercial real estate	7,100		2,176		4,924			226.3
Commercial & industrial	583		—		583			N/M
HELOC	239		563		(324		)	(57.5	)
Consumer	—		680		(680		)	(100.0	)
Total non-accrual loans	42,414		67,810		(25,396		)	(37.5	)
Real estate owned	29,027		61,098		(32,071		)	(52.5	)
Total non-performing assets	$	71,441	$	128,908	$	(57,467	)	(44.6	)%

The ratio of the allowance for loan losses to non-accrual loans increased to 267.59% as of September 30, 2016 from 157.54% as of September 30, 2015. This is primarily due to the 37.5% decrease in non-accrual loans.

13

LIQUIDITY AND CAPITAL RESOURCES

The principal sources of funds for the Company's activities are loan repayments, net deposit inflows, repayments and sales of investments, borrowings and retained earnings. Washington Federal's principal sources of revenue are interest on loans and interest and dividends on investments.

The Company's net worth at September 30, 2016 was $1,975,731,000 or 13.27% of total assets as compared to $1,955,679,000 or 13.42% of total assets at September 30, 2015. The Company's net worth was impacted in the year by net income of $164,049,000, the payment of $49,926,000 in cash dividends, treasury stock purchases that totaled $87,850,000, as well as a decrease in accumulated other comprehensive income (loss) of $11,509,000. The Company paid out 30.4% of its 2016 earnings in cash dividends to common shareholders, compared with 31.9% last year. For the year ended September 30, 2016, the Company returned 88.7% of net income to shareholders in the form of cash dividends, stock repurchases and warrant repurchases as compared to 110.9% for the year ended September 30, 2015. Management believes the Company's strong net worth position allows it to manage balance sheet risk and provide the capital support needed for controlled growth in a regulated environment.

The Bank has a credit line with the Federal Home Loan Bank of Des Moines ("FHLB") equal to 49.0% of total assets, providing a substantial source of additional liquidity if needed. The level of FHLB stock held varies depending on the amount of advances and other activities with the FHLB. As of September 30, 2016, the Bank had $2,391,411,000 of additional borrowing capacity at the FHLB.

The Bank has entered into borrowing agreements with the FHLB to borrow funds under a short-term floating rate cash management advance program and fixed-rate term loan agreements. All borrowings are secured by stock of the FHLB, deposits with the FHLB, and a blanket pledge of qualifying loans receivable as provided in the agreements with the FHLB.

The Company's cash and cash equivalents were $450,368,000 at September 30, 2016, which is an 58.6% increase from the balance of $284,049,000 as of the prior year end. See “Interest Rate Risk” above and the “Statement of Cash Flows” included in the financial statements for details regarding this change.

14

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

CHANGES IN FINANCIAL CONDITION

Available-for-sale and held-to-maturity securities. Available-for-sale securities decreased $457,669,000, or 19.23%, during the year ended September 30, 2016 to $1,922,894,000 due to principal repayments of $537,255,000 and the sale of $50,741,000 of available-for-sale securities that were partially offset by purchases of $137,591,000 of available-for-sale securities. As of September 30, 2016, the Company had a net unrealized gain on available-for-sale securities of $13,710,000, which is recorded net of tax as part of stockholders' equity.

Held-to-maturity securities declined by $225,617,000, or 13.73%, during the year ended September 30, 2016 to $1,417,599,000 due to paydowns and maturities. There were no held to maturity securities purchased or sold during the year ended September 30, 2016. Rising interest rates may cause these securities to be subject to unrealized losses. As of September 30, 2016, the net unrealized gain on held-to-maturity securities was $23,957,000, which management attributes to the change of interest rates since acquisition.

Loans receivable. Loans receivable, net of related contra accounts, increased $740,286,000, or 8.1%, to $9,910,920,000 at September 30, 2016, from $9,170,634,000 one year earlier. This increase resulted primarily from record high originations of $3,948,534,000, which represented a 27.2% increase over originations in the prior year. There were also loan purchases of $105,420,000 during the year ended September 30, 2016. Commercial loan originations accounted for 69.1% of total originations and consumer originations were 30.9%. The significant increase in loan origination resulted from a strategic emphasis on commercial lending, coupled with growing economies in all major markets. Loan repayments for 2016 totaled $2,935,167,000, a $516,620,000 or 21.4% increase from the total repayments of $2,418,547,000 in 2015. Loan repayments continue to be relatively high due to the ongoing historically low interest rate environment.

The following table presents the gross loan balances by category and the year over year change.

	September 30, 2016				September 30, 2015				Change
	(In thousands)				(In thousands)				$			%
Non-Acquired loans
Single-family residential	$	5,621,066	51.3	%	$	5,651,845	57.5	%	$	(30,779	)	(0.5)%
Construction	1,110,411		10.1		200,509		2.0		909,902			453.8
Construction - custom	473,069		4.3		396,307		4.0		76,762			19.4
Land - acquisition & development	116,156		1.1		94,208		1.0		21,948			23.3
Land - consumer lot loans	101,853		0.9		103,989		1.1		(2,136		)	(2.1)
Multi-family	1,118,801		10.2		1,125,722		11.5		(6,921		)	(0.6)
Commercial real estate	956,164		8.7		986,270		10.0		(30,106		)	(3.1)
Commercial & industrial	946,648		8.6		612,836		6.2		333,812			54.5
HELOC	134,785		1.2		127,646		1.3		7,139			5.6
Consumer	137,450		1.3		194,655		2.0		(57,205		)	(29.4)
Total non-acquired loans	10,716,403		97.9	%	9,493,987		96.6	%	1,222,416			12.9%
Acquired loans	115,394		1.1		166,293		1.7		(50,899		)	(30.6)
Credit impaired acquired loans	89,837		0.8		87,081		0.9		2,756			3.2
Covered loans	28,974		0.3		75,909		0.8		(46,935		)	(61.8)
Total gross loans	10,950,608		100	%	9,823,270		100	%	1,127,338			11.5%
Less:
Allowance for probable losses	113,494				106,829				6,665			6.2
Loans in process	879,484				476,796				402,688			84.5
Discount on acquired loans	11,306				30,095				(18,789		)	(62.4)
Deferred net origination fees	35,404				38,916				(3,512		)	(9.0)
Total loan contra accounts	1,039,688				652,636				387,052			59.3
Net Loans	$	9,910,920			$	9,170,634			$	740,286		8.1%

The following table shows the change in the geographic distribution by state of the gross loan portfolio.

15

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

September 30,	2016		2015		Change
Washington	47.6	%	49.8	%	(2.2	)
Oregon	14.5		15.6		(1.1	)
Arizona	9.5		10.7		(1.2	)
Other (1)	7.5		3.3		4.2
Utah	7.0		6.8		0.2
Idaho	4.2		4.2		—
New Mexico	4.2		4.8		(0.6	)
Texas	3.8		3.1		0.7
Nevada	1.7		1.7		—
	100	%	100	%

(1) Includes loans in other states and purchased loan pools and other loans without state property information.

As of September 30, 2016, FDIC covered loans net of related discounts were $28,974,000, a decrease of $46,935,000 or 61.8%, from $75,909,000 as of September 30, 2015. The decrease is attributable to FDIC loss share coverage on commercial loans from the former Home Valley Bank that expired after September 30, 2015. The FDIC loss share coverage for single family residential loans will continue for another four years. The remaining portfolio of covered loans is expected to continue to decline over time, absent another FDIC assisted transaction. When FDIC loss share agreements expire, any remaining loans will be transferred to the non covered portfolio. The Company continues to accrue a liability for the termination of the loss share agreements for what is known as the clawback provision of the agreement with the FDIC. The Company estimates the amount of this liability based on actual loss experience and projected future losses and recoveries. Contractually, the amount that will have to be paid to the FDIC for a clawback liability, if any, will be determined in 2020, after full expiry of the loss share agreements.

Non-performing assets. NPAs (excludes discounted acquired assets) decreased to $71,441,000 as of September 30, 2016 from $128,908,000 at September 30, 2015, a 44.6% decrease. The decrease is due to improving credit conditions and credit quality as well as sales of REO. Non-performing assets as a percentage of total assets was 0.48% at September 30, 2016 compared to 0.88% at September 30, 2015.

Restructured Loans. Total restructured loans declined to $261,531,000 as of September 30, 2016 from $302,713,000 as of September 30, 2015. As of September 30, 2016, 96.2% of the restructured loans were performing. The $9,948,000 of non-performing restructured loans are included in the NPAs total. Total non-performing assets and restructured loans as a percent of total assets has declined to 2.17% as of September 30, 2016 from 2.89% as of September 30, 2015.

Real estate owned. As of September 30, 2016, real estate owned totaled $29,027,000, a decrease of $32,071,000 or 52.5% from $61,098,000 as of September 30, 2015 as the Bank continued to liquidate foreclosed properties. During 2016, the Company sold real estate owned properties for total net proceeds of $61,132,000.

Interest Receivable. Interest receivable was $37,669,000 as of September 30, 2016, a decrease of $2,760,000 or 6.83% since September 30, 2015. The change is primarily due to lower yields on earning assets.

Bank Owned Life Insurance. Bank owned life insurance increased to $208,123,000 as of September 30, 2016 from $102,496,000 as of September 30, 2015. The Company purchased another $100,000,000 in bank-owned life insurance during 2016 to assist in funding the growth of employee benefit costs.

Intangible assets. The Company's intangible assets are made up of $291,503,000 of goodwill and the unamortized balance of the core deposit intangible of $5,486,000 at September 30, 2016.

Customer deposits. As of September 30, 2016, customer deposits totaled $10,600,852,000 compared with $10,631,703,000 at September 30, 2015, a $30,851,000 or 0.29% decrease due primarily to a reduction in time deposits. Consistent with its management strategy, the Company was able to increase transaction accounts by $184,714,000 or 3.2%, while time deposits decreased by

16

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

$215,565,000 or 4.5%. The weighted average rate paid on customer deposits during the year was 0.50%, an increase of 2 basis points from 2015, as a result of the low interest rate environment.

FHLB advances and other borrowings. Total FHLB advances were $2,080,000,000 at September 30, 2016 as compared to $1,830,000,000 at September 30, 2015. During 2016, new FHLB advances totaling $300,000,000 were executed coterminously with interest rate swaps to effectively 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 $50,000,000 of short term borrowings with a rate of 0.61%.

Contractual obligations. The following table presents the Company's significant fixed and determinable contractual obligations, within the categories described below, by contractual maturity or payment amount.

September 30, 2016	Total		Less than 1 Year		1 to 5 Years		Over 5 Years
	(In thousands)
Customer accounts (1)	$	10,600,852	$	8,900,492	$	1,694,398	$	5,962
Debt obligations (2)	2,080,000		200,000		1,480,000		400,000
Operating lease obligations	31,191		4,902		13,130		13,159
	$	12,712,043	$	9,105,394	$	3,187,528	$	419,121

(1) Includes non-maturing customer transaction accounts.

(2) Represents final maturities of debt obligations.

These obligations, except for the operating leases, are included in the Consolidated Statements of Financial Condition. The payment amounts of the operating lease obligations represent those amounts contractually due.

17

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

For highlights of the quarter-by-quarter results for the years ended September 30, 2016 and 2015, see Note Q, “Selected Quarterly Financial Data (Unaudited)”.

COMPARISON OF 2016 RESULTS WITH 2015

Net Income: Net income increased $3,733,000, or 2.3%, to $164,049,000 for the year ended September 30, 2016 as compared to $160,316,000 for the year ended September 30, 2015.

Net Interest Income: For the year ended September 30, 2016, net interest income was $420,249,000, an increase of $6,768,000 from the year ended September 30, 2015. The increase was primarily driven by a higher average balance on loans receivable. For the year ended September 30, 2016, average earning assets increased by 0.6% to $13,530,558,000, up from $13,444,499,000 for the year ended September 30, 2015. During 2016, average loans receivable increased $912,916,000 or 10.6%, while the combined average balances of mortgage backed securities, other investment securities and cash decreased by $802,078,000 or 17.0%. The net interest margin increased to 3.11% for the year ended September 30, 2016 from 3.08% for the year ended September 30, 2015. The yield on earning assets increased 2 basis points to 3.97% and the cost of interest bearing liabilities declined by 1 basis point to 0.93%. The higher yield on earning assets is the result of changes in the asset mix as the average balance of mortgage-backed securities and other investment securities decreased while the average balance of loans receivable increased. The decrease in interest cost was due to changes in the mix of customer deposits and FHLB advances.

The following table sets forth certain information explaining changes in interest income and interest expense for the period indicated compared to the same period one year ago. For each category of interest-earning asset and interest-bearing liability, information is provided on changes attributable to (1) changes in volume (changes in volume multiplied by old rate) and (2) changes in rate (changes in rate multiplied by old volume). The change in interest income and interest expense attributable to changes in both volume and rate has been allocated proportionately to the change due to volume and the change due to rate.

Rate / Volume Analysis:

	Comparison of Year Ended September 30, 2016 and September 30, 2015
($ in thousands)	Volume			Rate			Total
Interest income:
Loans receivable	$	44,395		$	(27,312	)	$	17,083
Mortgaged-backed securities	(7,824		)	(619		)	(8,443		)
Investments (1)	(7,283		)	4,883			(2,400		)
All interest-earning assets	29,288			(23,048		)	6,240
Interest expense:
Customer accounts	(370		)	1,801			1,431
FHLB advances and other borrowings	3,900			(5,859		)	(1,959		)
All interest-bearing liabilities	3,530			(4,058		)	(528		)
Change in net interest income	$	25,758		$	(18,990	)	$	6,768
(1) Includes interest on cash equivalents and dividends on FHLB & FRB stock

Provision (Release) for Loan Losses: The Company recorded a release of allowance for loan losses of $6,400,000 for the year ended September 30, 2016, which compares to a release of $11,162,000 for the year ended September 30, 2015. The releases recorded for both periods was a result of continued improvement in credit quality of the loan portfolio offset by net growth in the loan portfolio. The related improvement in the credit quality of the loan portfolio relates to the following factors.

18

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The Company had recoveries, net of charge-offs, of $13,065,000 for the year ended September 30, 2016, compared with $5,370,000 of net recoveries for the year ended September 30, 2015. Non-accrual loans were $42,414,000, or 0.28% of total assets, at September 30, 2016, as compared to $67,810,000, or 0.47% of total assets, at September 30, 2015, representing a decrease of 37.5%.

Unfunded commitments tend to vary depending on our loan mix and the proportion share of commercial loans. The reserve for unfunded commitments was $3,235,000 as of September 30, 2016, which is an increase from $3,085,000 at September 30, 2015. Management believes the allowance for loan losses plus the reserve for unfunded commitments, totaling $116,729,000, or 1.07% of gross loans, is sufficient to absorb estimated losses inherent in the portfolio. See Note E for further discussion and analysis of the allowance for loan losses as of and for the year ended September 30, 2016.

Other Income: Other income was $47,036,000 for the year ended September 30, 2016, an increase of $6,613,000 or 16.4% from the $40,423,000 for the year ended September 30, 2015. The increase is primarily because 2016 included a gain of $3,800,000 resulting from the sale-leaseback of a branch property. During 2015, the Company sold available-for-sale securities for $246,826,000 and recognized a $9,641,000 gain on sale and recorded $10,554,000 of expense related to prepayment of a Federal Home Loan Bank advance. Deposit fee income was $21,738,000 for the year ended September 30, 2016 compared to $22,459,000 for the year ended September 30, 2015.

Other Expense: Operating expense was $235,447,000 for the year ended September 30, 2016, an increase of $10,596,000 or 4.7% from the $224,851,000 for the year ended September 30, 2015. The increase in 2016 is primarily due to higher information technology costs, which increased by $15,006,000, and other expense, which increased by $4,390,000. These expenses were elevated due to the Company's implementation of new core systems in November 2015. Management believes that the new technology and systems better position the Company to support future growth and expansion. These increases were partially offset by lower compensation and benefits expense, which declined by $7,055,000. The number of staff, including part-time employees on a full-time equivalent basis, was 1,806 and 1,838 at September 30, 2016 and 2015, respectively. Total operating expense for the years ended September 30, 2016 and 2015 equaled 1.60% and 1.55%, respectively, of average assets.

Gain (Loss) on Real Estate Owned: Net gain on real estate owned was $10,046,000 for the year ended September 30, 2016, an increase of $742,000 or 8.0% from the $9,304,000 for the year ended September 30, 2015. This amount includes ongoing maintenance expense, periodic valuation adjustments, and gains (losses) on sales of REO.

Income Tax Expense: Income tax expense was $84,085,000 for the year ended September 30, 2016, a decrease of $5,118,000 or 5.74% from the $89,203,000 for the year ended September 30, 2015. The effective tax rate for 2016 was 33.89% as compared to 35.75% for the year ended September 30, 2015. The lower effective tax rate is primarily due to the effects of the addition of bank owned life insurance and increased investment in low income housing tax credit partnerships as well as tax free loans.

COMPARISON OF 2015 RESULTS WITH 2014

Net income increased $2,952,000, or 1.9%, to $160,316,000 for the year ended September 30, 2015 as compared to $157,364,000 for the year ended September 30, 2014. Net interest income was higher in 2015 by $7,861,000 primarily due to loan growth and reduced cost of funds. Increases in operating expenses were attributable to a full year of operations of 74 branches that were acquired in fiscal 2014 and the related increase in customer transactions. Other income increased by $9,764,000 or 31.8% driven by increased volume of fee generating services related to the acquired branches and transaction deposit accounts. Net income for the year ended September 30, 2015 continued to benefit from improving credit quality. The release of allowance for loan losses amounted to $11,162,000 for the year ended September 30, 2015 as compared to a release of $15,401,000 for the year ended September 30, 2014.

The following table sets forth certain information explaining changes in interest income and interest expense for the period indicated compared to the same period one year ago. For each category of interest-earning asset and interest-bearing liability, information is provided on changes attributable to (1) changes in volume (changes in volume multiplied by old rate) and (2) changes in rate (changes in rate multiplied by old volume). The change in interest income and interest expense attributable to changes in both volume and rate has been allocated proportionately to the change due to volume and the change due to rate.

Rate / Volume Analysis:

19

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

	Comparison of Year Ended September 30, 2015 and September 30, 2014
($ in thousands)	Volume			Rate			Total
Interest income:
Loans receivable	$	30,507		$	(24,355	)	$	6,152
Mortgaged-backed securities	(4,941		)	(3,927		)	(8,868		)
Investments (1)	(2,594		)	2,166			(428		)
All interest-earning assets	22,972			(26,116		)	(3,144		)
Interest expense:
Customer accounts	1,879			(9,349		)	(7,470		)
FHLB advances and other borrowings	(3,358		)	(177		)	(3,535		)
All interest-bearing liabilities	(1,479		)	(9,526		)	(11,005		)
Change in net interest income	$	24,451		$	(16,590	)	$	7,861
(1) Includes interest on cash equivalents and dividends on FHLB & FRB stock

Provision (Release) for Loan Losses: The Company recorded a release of allowance for loan losses of $11,162,000 for the year ended September 30, 2015, which compares to a release of $15,401,000 for the year ended September 30, 2014. The releases recorded for both periods was a result of continued improvement in credit quality of the loan portfolio offset by net growth in the loan portfolio. The related improvement in the credit quality of the loan portfolio relates to the following factors.

The Company had recoveries, net of charge-offs, of $5,370,000 for the year ended September 30, 2015, compared with $14,365,000 of net recoveries for the year ended September 30, 2014. Non-accrual loans were $67,810,000, or 0.47% of total assets, at September 30, 2015, as compared to $87,431,000, or 0.59% of total assets, at September 30, 2014, representing a decrease of 37.5%.

Unfunded commitments tend to vary depending on our loan mix and the proportion share of commercial loans. The reserve for unfunded commitments was $3,085,000 at September 30, 2015, which is an increase from $2,910,000 at September 30, 2014.

Other Income: Other income was $40,423,000 for the year ended September 30, 2015, an increase of $9,764,000 or 31.8% from the $30,659,000 for the year ended September 30, 2014. The increase is primarily due to deposit fee income rising by $8,153,000 in 2015 as compared to 2014 because of an increase in the number of transaction accounts and higher fees from client derivatives. In 2015, the Company had a $9,641,000 gain on sales of investment securities and $10,554,000 of expense related to prepayment of a Federal Home Loan Bank advance.

Other Expense: Operating expense was $224,851,000 for the year ended September 30, 2015, an increase of $20,842,000 or 10.22% from the $204,009,000 for the year ended September 30, 2014. The increase is primarily due to an increase of $10,209,000 for compensation expense and $7,352,000 for product delivery expense. These increases mostly relate to the addition of the employees from branches acquired during 2014 as they were with the Company for a full year in 2015 and also from growth in our commercial banking business. The number of staff, including part-time employees on a full-time equivalent basis, was 1,838 and 1,909 at September 30, 2015 and 2014, respectively. The decline in full-time equivalent employees occurred as the Company continues to consolidate under-performing branches and streamline back-office operations. Total operating expense for the years ended September 30, 2015 and 2014 equaled 1.55% and 1.43%, respectively, of average assets.

Gain (Loss) on Real Estate Owned: Net gain on real estate owned was $9,304,000 for the year ended September 30, 2015, compared to a loss of $2,743,000 for the year ended September 30, 2014. This amount includes ongoing maintenance expense, periodic valuation adjustments, and gains (losses) on sales of REO.

20

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Income Tax Expense: Income tax expense was $89,203,000 for the year ended September 30, 2015, an increase of $1,639,000 or 1.9% from the $87,564,000 for the year ended September 30, 2014. The effective tax rate for was 35.75% for the years ended September 30, 2015 and 2014.

21

SELECTED FINANCIAL DATA

Year ended September 30,	2016			2015			2014			2013		2012
				(In thousands, except per share data)
Interest income	$	536,793		$	530,553		$	533,697		$	516,291	$	590,271
Interest expense	116,544			117,072			128,077			136,159		193,249
Net interest income	420,249			413,481			405,620			380,132		397,022
Provision (reversal) for loan losses	(6,250		)	(11,162		)	(15,401		)	1,350		44,955
Other income	57,082			49,727			27,916			20,074		6,698
Other expense	235,447			224,851			204,009			164,240		142,854
Income before income taxes	248,134			249,519			244,928			234,616		215,911
Income taxes	84,085			89,203			87,564			83,111		77,728
Net income	$	164,049		$	160,316		$	157,364		$	151,505	$	138,183
Per share data
Basic earnings	$	1.79		$	1.68		$	1.56		$	1.45	$	1.29
Diluted earnings	1.78			1.67			1.55			1.45		1.29
Cash dividends	0.55			0.54			0.41			0.36		0.32
September 30,	2016			2015			2014			2013		2012
Total assets	$	14,888,063		$	14,568,324		$	14,756,041		$	13,082,859	$	12,472,944
Loans receivable, net	9,910,920			9,170,634			8,324,798			7,823,977		7,740,374
Mortgage-backed securities	2,490,510			2,906,440			3,231,691			2,902,655		2,360,668
Investment securities	849,983			1,117,339			1,366,018			1,109,772		612,524
Cash and cash equivalents	450,368			284,049			781,843			203,563		751,430
Customer accounts	10,600,852			10,631,703			10,716,928			9,090,271		8,576,618
FHLB advances	2,080,000			1,830,000			1,930,000			1,930,000		1,880,000
Stockholders’ equity	1,975,731			1,955,679			1,973,283			1,937,635		1,899,752
Number of
Customer accounts	491,098			517,871			548,872			332,177		308,282
Loans	41,418			41,036			43,569			44,838		48,030
Offices	238			247			251			182		166

22

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

	September 30, 2016			September 30, 2015
	(In thousands, except share data)
ASSETS
Cash and cash equivalents	$	450,368		$	284,049
Available-for-sale securities, at fair value	1,922,894			2,380,563
Held-to-maturity securities, at amortized cost	1,417,599			1,643,216
Loans receivable, net of allowance for loan losses of $113,494 and $106,829	9,910,920			9,170,634
Interest receivable	37,669			40,429
Premises and equipment, net	281,951			276,247
Real estate owned	29,027			61,098
FHLB & FRB stock	117,205			107,198
Bank owned life insurance	208,123			102,496
Intangible assets, including goodwill of $291,503	296,989			299,358
Federal and state income tax assets, net	16,047			14,513
Other assets	199,271			188,523
	$	14,888,063		$	14,568,324
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Customer accounts
Transaction deposit accounts	$	6,005,592		$	5,820,878
Time deposit accounts	4,595,260			4,810,825
	10,600,852			10,631,703
FHLB advances	2,080,000			1,830,000
Advance payments by borrowers for taxes and insurance	42,898			50,224
Accrued expenses and other liabilities	188,582			100,718
	12,912,332			12,612,645
Stockholders’ equity
Common stock, $1.00 par value, 300,000,000 shares authorized; 134,307,818 and 133,695,803 shares issued; 89,680,847 and 92,936,395 shares outstanding	134,308			133,696
Paid-in capital	1,648,388			1,643,712
Accumulated other comprehensive income (loss), net of taxes	(11,156		)	353
Treasury stock, at cost; 44,626,971 and 40,759,408 shares	(739,686		)	(651,836		)
Retained earnings	943,877			829,754
	1,975,731			1,955,679
	$	14,888,063		$	14,568,324

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

23

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

Year ended September 30,	2016			2015			2014
	(In thousands, except share data)
INTEREST INCOME
Loans receivable	$	454,085		$	437,002		$	430,850
Mortgage-backed securities	62,949			71,392			80,260
Investment securities and cash equivalents	19,759			22,159			22,587
	536,793			530,553			533,697
INTEREST EXPENSE
Customer accounts	52,485			51,054			58,524
FHLB advances and other borrowings	64,059			66,018			69,553
	116,544			117,072			128,077
Net interest income	420,249			413,481			405,620
Provision (release) for loan losses	(6,250		)	(11,162		)	(15,401		)
Net interest income after provision (release) for loan losses	426,499			424,643			421,021
OTHER INCOME
Gain on sale of investment securities	—			9,641			—
Prepayment penalty on long-term debt	—			(10,554		)	—
Loan fee income	5,548			8,788			7,706
Deposit fee income	21,738			22,459			14,306
Other income	19,750			10,089			8,647
	47,036			40,423			30,659
OTHER EXPENSE
Compensation and benefits	112,884			119,939			109,730
Occupancy	33,568			33,956			30,452
FDIC insurance premiums	11,824			7,916			11,009
Product delivery	17,060			22,325			14,973
Information technology	30,982			15,976			14,303
Other expense	29,129			24,739			23,542
	235,447			224,851			204,009
Gain (loss) on real estate owned, net	10,046			9,304			(2,743		)
Income before income taxes	248,134			249,519			244,928
Income tax expense
Current	60,773			86,477			75,784
Deferred	23,312			2,726			11,780
	84,085			89,203			87,564
NET INCOME	$	164,049		$	160,316		$	157,364
PER SHARE DATA
Basic earnings per share	$	1.79		$	1.68		$	1.56
Diluted earnings per share	1.78			1.67			1.55
Dividends paid on common stock per share	0.55			0.54			0.41
Basic weighted average number of shares outstanding	91,399,038			95,644,639			101,154,030
Diluted weighted average number of shares outstanding	91,912,918			96,053,959			101,590,351

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

24

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Year ended September 30,	2016			2015			2014
	(In thousands)
Net income	$	164,049		$	160,316		$	157,364
Other comprehensive income (loss) net of tax:
Net unrealized gains (losses) on available-for-sale securities	(1,403		)	(27,536		)	22,924
Reclassification adjustment of net gains from sale of available-for-sale securities included in net income	—			9,641			—
Related tax benefit (expense)	516			6,577			(8,425		)
	(887		)	(11,318		)	14,499
Net unrealized gain (loss) on long-term borrowing hedges	(16,793		)	(14,287		)	(268		)
Related tax benefit (expense)	6,171			5,250			99
	(10,622		)	(9,037		)	(169		)
Other comprehensive income (loss)	(11,509		)	(20,355		)	14,330
Comprehensive income	$	152,540		$	139,961		$	171,694

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

25

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(In thousands)	Common Stock		Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total
Balance at September 30, 2013	$	132,573	$	1,625,051		$	594,450		$	6,378		$	(420,817	)	$	1,937,635
Net income						157,364									157,364
Other comprehensive income (loss)									14,330						14,330
Dividends on common stock						(45,665		)							(45,665		)
Compensation expense related to common stock options			324												324
Proceeds from exercise of common stock options	501		9,641												10,142
Restricted stock expense	249		3,195												3,444
Treasury stock purchased												(104,291		)	(104,291		)
Balance at September 30, 2014	$	133,323	$	1,638,211		$	706,149		$	20,708		$	(525,108	)	$	1,973,283
Net income						160,316									160,316
Other comprehensive income (loss)									(20,355		)				(20,355		)
Dividends on common stock						(36,711		)							(36,711		)
Compensation expense related to common stock options			231												231
Proceeds from exercise of common stock options	129		1,941												2,070
Restricted stock expense	244		3,329												3,573
Treasury stock purchased												(126,728		)	(126,728		)
Balance at September 30, 2015	$	133,696	$	1,643,712		$	829,754		$	353		$	(651,836	)	$	1,955,679
Net income						164,049									164,049
Other comprehensive income (loss)									(11,509		)				(11,509		)
Dividends on common stock						(49,926		)							(49,926		)
Compensation expense related to common stock options			90												90
Proceeds from exercise of common stock options	433		8,850												9,283
Restricted stock expense	179		3,480												3,659
Repurchase of stock warrants			(7,744		)										(7,744		)
Treasury stock purchased												(87,850		)	(87,850		)
Balance at September 30, 2016	$	134,308	$	1,648,388		$	943,877		$	(11,156	)	$	(739,686	)	$	1,975,731

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

26

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

Year ended September 30,	2016			2015			2014
	(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	164,049		$	160,316		$	157,364
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, accretion and restricted stock expense	22,988			21,217			17,347
Cash received from (paid to) FDIC under loss share	1,730			720			2,502
Stock option compensation expense	90			231			324
Provision (release) for loan losses	(6,250		)	(11,162		)	(15,401		)
Loss (gain) on sale of investment securities and real estate owned, net	(16,476		)	(28,527		)	(2,510		)
Loss on extinguishment of debt	—			10,554			—
Decrease (increase) in accrued interest receivable	2,760			11,608			(2,819		)
Decrease (increase) in FDIC loss share receivable	—			1,795			(1,795		)
Decrease (increase) in federal and state income tax receivable	5,153			13,829			18,890
Decrease (increase) in cash surrender value of bank owned life insurance	(5,627		)	(2,496		)	—
Net realized (gain) loss on sales of premises and equipment	(3,563		)	—			—
Decrease (increase) in other assets	(14,204		)	(29,220		)	(17,799		)
Increase (decrease) in accrued expenses and other liabilities	71,071			(5,994		)	17,612
Net cash provided (used) by operating activities	221,721			142,871			173,715
CASH FLOWS FROM INVESTING ACTIVITIES
Origination of loans and principal repayments, net	(622,884		)	(554,350		)	(261,401		)
Loans purchased	(105,420		)	(279,936		)	(218,544		)
FHLB & FRB stock purchase	(36,347		)	(4,067		)	—
FHLB & FRB stock redeemed	26,340			55,708			14,017
Available-for-sale securities purchased	(137,591		)	(315,114		)	(1,280,477		)
Principal payments and maturities of available-for-sale securities	537,255			721,951			609,395
Proceeds from sales of available-for-sale investment securities	50,741			246,826			—
Held-to-maturity securities purchased	—			(259,489		)	—
Principal payments and maturities of held-to-maturity securities	218,958			159,947			103,617
Net cash received from mergers and acquisitions	—			—			1,776,660
Proceeds from sales of real estate owned	61,132			74,895			89,549
Purchase of bank owned life insurance	(100,000		)	(100,000		)	—
Proceeds from sales of premises and equipment	14,685			—			—
Premises and equipment purchased and REO improvements	(37,933		)	(36,860		)	(51,794		)
Net cash provided (used) by investing activities	(131,064		)	(290,489		)	781,022
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in customer accounts	(30,775		)	(85,073		)	(226,914		)
Proceeds from borrowings	1,118,000			100,000			—
Repayments of borrowings	(868,000		)	(210,554		)	—
Proceeds from exercise of common stock options and related tax benefit	9,283			2,070			10,252
Dividends paid on common stock	(49,926		)	(51,111		)	(42,065		)
Repurchase of warrants	(7,744		)	—			—
Treasury stock purchased	(87,850		)	(126,728		)	(104,291		)
Increase (decrease) in advance payments by borrowers for taxes and insurance	(7,326		)	21,220			(13,439		)
Net cash provided (used) by financing activities	75,662			(350,176		)	(376,457		)
Increase (decrease) in cash and cash equivalents	166,319			(497,794		)	578,280
Cash and cash equivalents at beginning of year	284,049			781,843			203,563
Cash and cash equivalents at end of year	$	450,368		$	284,049		$	781,843

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

27

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

Year ended September 30,	2016		2015		2014
	(In thousands)
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Non-cash investing activities
Real estate acquired through foreclosure	$	16,535	$	31,916	$	46,469
Cash paid during the year for
Interest	$	114,506	$	116,226	$	128,733
Income taxes	68,507		65,720		64,372
Summary of non-cash activities related to acquisitions
Fair value of assets and intangibles acquired, including goodwill	$	—	$	—	$	80,242
Fair value of liabilities assumed	—		—		(1,856,902		)
Net fair value of acquired assets (liabilities)	$	—	$	—	$	(1,776,660	)

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

28

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Company and nature of operations. Washington Federal, Inc. is a Washington corporation headquartered in Seattle, Washington. The Company is a bank holding company that conducts its operations through a national bank subsidiary, Washington Federal, National Association. The Bank is principally engaged in the business of attracting deposits from the general public and investing these funds, together with borrowings and other funds, in one-to-four family residential real estate loans, multi-family real estate loans and commercial loans. As used throughout this document, the terms "Washington Federal" or the "Company" refer to Washington Federal, Inc. and its consolidated subsidiaries and the term "Bank" refers to the operating subsidiary Washington Federal, National Association. The Bank conducts its activities through a network of 238 offices located in Washington, Oregon, Idaho, Utah, Arizona, Nevada, New Mexico, and Texas.

Basis of presentation and use of estimates. The Company’s accounting and financial reporting policies conform to accounting principles generally accepted in the United States of America (U.S. GAAP). Inter-company balances and transactions have been eliminated in consolidation. In preparing the consolidated financial statements, the Company makes estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and revenues and expenses during the reporting periods and related disclosures. The areas that require application of significant management judgments often result in the need to make estimates about the effect of matters that are inherently uncertain and may change in future periods. Actual results could differ materially from those estimates. In certain instances, amounts in text are presented by rounding to the nearest thousand.

The Company's fiscal year end is September 30th. All references to 2016, 2015 and 2014 represent balances as of September 30, 2016, September 30, 2015 and September 30, 2014, or activity for the fiscal years then ended.

Acquisitions. Certain Branches of Bank of America, National Association. During the 2014 fiscal year, the Bank acquired 74 branches from Bank of America, National Association. This included: effective as of the close of business on October 31, 2013, 11 branches located in New Mexico; effective as of the close of business on December 6, 2013, 40 branches located in Washington, Oregon, and Idaho; and effective as of the close of business on May 2, 2014, 23 branches located in Arizona and Nevada. The combined acquisitions provided $1.9 billion in deposit accounts, $13 million of loans, and $25 million in branch properties. The Bank paid a 1.99% premium on the total deposits and received $1.8 billion in cash from the transactions. The acquisition method of accounting was used to account for the acquisitions. The purchased assets and assumed liabilities are recorded at their respective acquisition date estimated fair values. The Bank recorded $11 million in core deposit intangible and $31 million in goodwill related to these transactions. The operating results of the Company include the operating results produced by the first 11 branches beginning November 1, 2013, for the additional 40 branches beginning December 7, 2013, and for the most recent 23 branches from May 3, 2014 forward.

Cash and cash equivalents. Cash and cash equivalents include cash on hand, amounts due from banks, overnight investments and repurchase agreements with an initial maturity of three months or less.

Investments and mortgage-backed securities. The Company accounts for investments and mortgage-backed securities in two categories: held-to-maturity and available-for-sale. Premiums and discounts on investments are deferred and recognized into income over the life of the asset using the effective interest method.

Held-to-maturity securities are accounted for at amortized cost, but the Company must have both the positive intent and the ability to hold those securities to maturity. There are very limited circumstances under which securities in the held-to-maturity category can be sold without jeopardizing the cost basis of accounting for the remainder of the securities in this category.

Available-for-sale securities are accounted for at fair value. Gains and losses realized on the sale of these securities are accounted for based on the specific identification method. Unrealized gains and losses for available-for-sale securities are excluded from earnings and reported net of the related tax effect in the accumulated other comprehensive income component of stockholders' equity.

Realized gains and losses on securities sold as well as other than temporary impairment charges, if any, are shown on the Consolidated Statements of Operations under the Other Income heading. Management evaluates debt and equity securities for other than temporary impairment on a quarterly basis based on the securities' current credit quality, market interest rates, term to maturity and management's intent and ability to hold the securities until the net book value is recovered.

29

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

Loans receivable. Loans that are performing in accordance with their contractual terms are carried at their amortized cost and expected interest is accrued. The Bank also receives fees for originating loans in addition to various fees and charges related to existing loans, which may include prepayment charges, late charges and assumption fees.

When a borrower fails to make a required payment on a loan, the Bank attempts to cure the deficiency by contacting the borrower. Contact is made after a payment is 30 days past its grace period. In most cases, deficiencies are cured promptly. If the delinquency is not cured within 90 days, the Bank may institute appropriate action to foreclose on the property. If foreclosed, the property is sold at a public sale and may be purchased by the Bank.

Restructured loans. The Bank will consider modifying the interest rates and terms of a loan if it determines that a modification is a better alternative to foreclosure. Most troubled debt restructured ("TDR") loans are accruing and performing loans where the borrower has proactively approached the Bank about modifications due to temporary financial difficulties. Each request is individually evaluated for merit and likelihood of success. The concession for these loans is typically a payment reduction through a rate reduction of 100 to 200 bps for a specific term, usually six to twelve months. Interest-only payments may also be approved during the modification period. Principal forgiveness is generally not an available option for restructured loans. Before granting approval to modify a loan in a TDR, the borrower’s ability to repay is evaluated, including: current income levels and debt to income ratio, borrower’s credit score, payment history of the loan, and updated evaluation of the secondary repayment source. The Bank also modifies some loans that are not classified as TDRs as the modification is due to a restructuring where the effective interest rate on the debt is reduced to reflect a decrease in market interest rates.

Non accrual loans. Loans are placed on nonaccrual status when, in the judgment of management, the probability of collection of interest is deemed to be insufficient to warrant further accrual. When a loan is placed on nonaccrual status, previously accrued but unpaid interest is deducted from interest income. The Bank does not accrue interest on loans 90 days or more past due. If payment is made on a loan so that the loan becomes less than 90 days past due, and the Bank expects full collection of principal and interest, the loan is returned to full accrual status. Any interest ultimately collected is credited to income in the period of recovery. A loan is charged-off when the loss is estimable and it is confirmed that the borrower is not expected be able to meet contractual obligations.

If a consumer loan is on non-accrual status before becoming a TDR it will stay on non-accrual status following restructuring until it has been performing for at least six months, at which point it may be moved to accrual status. If a loan is on accrual status before it becomes a TDR, and management concludes that full repayment is probable based on internal evaluation, it will remain on accrual status following restructuring. If the restructured consumer loan does not perform, it is placed on non-accrual status when it is 90 days delinquent. For commercial loans, six consecutive payments on newly restructured loan terms are required prior to returning the loan to accrual status. In some instances after the required six consecutive payments are made management will conclude that collection of the entire principal and interest due is still in doubt. In those instances, the loan will remain on non-accrual.

Impaired loans. Impaired loans consist of loans receivable that are not expected to have their principal and interest repaid in accordance with their contractual terms. This includes TDRs that are on non-accrual status. Collateral dependent impaired loans are measured using the fair value of the collateral less selling costs. Non-collateral dependent loans are measured at the present value of expected future cash flows.

Deferred fees and discounts on loans. Loan discounts and loan fees are deferred and recognized over the life of the loans using the effective interest method.

Allowance for loan losses. The Bank maintains an allowance for loan losses to absorb losses inherent in the loan portfolio. The allowance is based on ongoing, quarterly assessments of the probable and estimable losses inherent in the loan portfolio. The Bank's general methodology for assessing the appropriateness of the allowance is to apply a loss percentage factor to the different loan types. The loss percentage factor is made up of two parts - the historical loss factor (“HLF”) and the qualitative loss factor (“QLF”). The HLF takes into account historical charge-offs by loan type. The Bank uses an average of historical loss rates for each loan category multiplied by a loss emergence period. This is the likely period of time during which a residential or commercial loan borrower experiencing financial difficulties might deplete their cash prior to becoming delinquent on their loan, plus the period of time that it takes the bank to work out the loans. The QLF are based on management's continuing evaluation of the pertinent factors underlying the quality of the loan portfolio, including changes in the size and composition of the loan portfolio,

30

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

actual loan loss experience, current economic conditions, collateral values, geographic concentrations, seasoning of the loan portfolio, specific industry conditions, and the duration of the current business cycle. These factors are considered by loan type.

Specific allowances are established for loans which are individually evaluated, in cases where management has identified significant conditions or circumstances related to a loan that management believes indicate the probability that a loss has been incurred. The Bank has also established a reserve for unfunded commitments.

The recovery of the carrying value of loans is susceptible to future market conditions beyond the Bank's control, which may result in losses or recoveries differing from those estimated.

Acquired credit impaired loans. Acquired credit impaired loans are accounted for under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 310-30 when there is evidence of credit deterioration since origination and for which it is probable, at acquisition, that the Company would be unable to collect all contractually required payments. Interest income, through accretion of the difference between the carrying amount of the loans and the expected cash flows, are recognized on all acquired loans.

Covered assets. Covered loans consist of single family loans acquired from Horizon Bank in 2010 and certain loans acquired from South Valley Bank and Trust ("SVBT") in fiscal 2013 that were originally recorded at their estimated fair value at the time acquired. Loans that were classified as non-performing loans by Horizon Bank and SVBT are no longer classified as non-performing because, at acquisition, the carrying value of these loans was adjusted to reflect fair value and are covered under the FDIC loss sharing agreements. Management believes that the book value reflects an amount that will ultimately be collected. Covered real estate held for sale represents the foreclosed properties that were originally Horizon Bank loans or certain SVBT loans. Covered real estate held for sale is carried at the estimated fair value of the repossessed real estate. The covered loans and covered real estate held for sale are collectively referred to as “covered assets." When FDIC loss share agreements expire, any remaining loans will be transferred to the non covered portfolio. Covered loans are included within loans receivable on the statement of financial condition. Covered real estate owned are included within real estate owned on the statement of financial condition.

FDIC indemnification asset. FDIC indemnification asset is the receivable recorded due to the guarantee provided by the FDIC on the covered assets. This asset declines due to collections from the FDIC on claims or the eventual expiration of the FDIC loss share agreements. The FDIC indemnification asset is included within other assets on the statement of financial condition.

Client derivatives. Interest rate swap agreements are provided to certain clients who desire to convert their obligations from variable to fixed interest rates. Under these agreements, the Bank enters into a variable-rate loan agreement with a customer in addition to a swap agreement, and then enters into a corresponding swap agreement with a third party in order to offset its exposure on the customer swap agreement. As the interest rate swap agreements with the customers and third parties are not designated as hedges under FASB ASC 815, Derivatives and Hedging, the instruments are marked to market in earnings. The change in fair value of the offsetting swaps are included in interest income and interest expense and there is no impact on net income. There is fee income earned on the swaps that is included in loan fee income.

Long term borrowing hedges. The Company has entered into interest rate swaps to convert a series of future short-term borrowings to fixed-rate payments. These interest rate swaps qualify as cash flow hedging instruments under ASC 815 so gains and losses are recorded in Other Comprehensive Income to the extent the hedge is effective. Gains and losses on the interest rate swaps are reclassified from OCI to earnings in the period the hedged transaction affects earnings and are included in the same income statement line item that the hedged transaction is recorded.

Commercial loan hedges. The Company has entered into interest rate swaps to hedge long term fixed rate commercial loans. These hedges qualify as fair value hedges under ASC 815 and provide for matching of the recognition of the gains and losses on the interest rate swap and the related hedged loan.

Premises and equipment. Premises and equipment are stated at cost, less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the respective assets. Expenditures are capitalized for betterments and major renewals. Charges for ordinary maintenance and repairs are expensed to operations as incurred.

31

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

Real estate owned. Real estate properties acquired through foreclosure of loans or through acquisitions are recorded initially at fair value less selling costs and are subsequent recorded at lower of cost or fair value. Any gains (losses) are shown on the real estate acquired through foreclosure line item.

Intangible assets. Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. The core deposit intangibles are acquired assets that lack physical substance but can be distinguished from goodwill. Goodwill is evaluated for impairment on an annual basis during the fourth quarter. Other intangible assets are amortized over their estimated lives and are subject to impairment testing when events or circumstances change. If circumstances indicate that the carrying value of the assets may not be recoverable, an impairment charge could be recorded. The Bank amortizes the core deposit intangibles over their estimated lives using an accelerated method.

The table below provides detail regarding the Company's intangible assets.

	Goodwill		Core Deposit Intangible			Total
	(In thousands)
Balance at September 30, 2014	$	291,503	$	11,406		$	302,909
Amortization	—		(3,551		)	(3,551		)
Balance at September 30, 2015	291,503		7,855			299,358
Amortization	—		(2,369		)	(2,369		)
Balance at September 30, 2016	$	291,503	$	5,486		$	296,989

The table below presents the estimated core deposit intangible asset amortization expense for the next five years.

Fiscal Year	Expense
	(In thousands)
2017	$	1,648
2018	1,204
2019	1,157
2020	1,157
2021	320

Income taxes. Income taxes are accounted for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, a deferred tax asset or liability is determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The provision for income taxes includes current and deferred income tax expense based on net income adjusted for temporary and permanent differences such as depreciation, interest on state and municipal securities, and affordable housing tax credits. Income tax related interest and penalties, if applicable, and amortization of affordable housing tax credit investments are recorded within income tax expense.

Accounting for stock-based compensation. We recognize in the statement of operations the grant-date fair value of stock options and other equity-based forms of compensation issued to employees over the employees' requisite service period (generally the vesting period). The requisite service period may be subject to performance conditions. Stock options and restricted stock awards generally vest ratably over three to ten years and are recognized as expense over that same period of time. The exercise price of each option equals the market price of the Company's common stock on the date of the grant, and the maximum term is ten years. No stock options were granted in 2016, 2015 or 2014.

Certain grants of restricted stock are subject to performance-based and market-based vesting as well as other approved vesting conditions and cliff vest based on those conditions. Compensation expense is recognized over the service period to the extent restricted stock awards are expected to vest. See Note N for additional information.

32

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

Business segments. As the Company manages its business and operations on a consolidated basis, management has determined that there is one reportable business segment.

Subsequent events. The Company has evaluated subsequent events for adjustment to or disclosure in the Company’s consolidated financial statements through the date of this report, and the Company has not identified any recordable or disclosable events, not otherwise reported in these consolidated financial statements or the notes thereto, except for the following:

The Company paid its 135th consecutive quarterly cash dividend totaling $12,421,733 on November 18, 2016 to common stockholders of record on November 4, 2016.

NOTE B - NEW ACCOUNTING PRONOUNCEMENTS

In August 2016, the FASB issued Accounting Standards Update ("ASU") 2016-15, Classification of Certain Cash Receipts and Cash Payments. The amendments in this ASU address eight specific cash flow issues with the objective of reducing diversity in practice. The specific issues identified include: debt prepayments or extinguishment costs; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This ASU is effective for fiscal years beginning after December 15, 2017 including interim periods within that reporting period; however, early adoption is permitted. The Company is currently evaluating the guidance to determine its adoption method and does not expect this guidance to have a material impact on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses. The amendments in this ASU were issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to- maturity debt securities, trade and other receivables, net investments in leases and other commitments to extend credit held by a reporting entity at each reporting date. The amendments require that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The ASU eliminates the current framework of recognizing probable incurred losses and instead requires an entity to use its current estimate of all expected credit losses over the contractual life. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets.

For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, an allowance for expected credit losses is recorded as an adjustment to the cost basis of the asset. Subsequent changes in estimated cash flows would be recorded as an adjustment to the allowance and through the statement of income.

Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security's cost basis.

The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For most debt securities, the transition approach requires a cumulative-effect adjustment to the statement of financial position as of the beginning of the first reporting period the guidance is effective. For other-than-temporarily impaired debt securities and PCD assets, the guidance will be applied prospectively. The Company is currently evaluating the provisions of this ASU to determine the impact the new standard will have on the Company's consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation- Improvements to Employee Share-Based Payment Accounting, which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under the guidance, income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity should also recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. In regards to forfeitures, the entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest

33

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

or account for forfeitures when they occur. This ASU is effective for fiscal years beginning after December 15, 2016 including interim periods within that reporting period; however, early adoption is permitted. The Company is currently evaluating the guidance to determine its adoption method and does not expect this guidance to have a material impact on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases. The amendments require lessees to recognize a lease liability, which is a lessee's obligation to make lease payments arising from a lease, and a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. The guidance also simplifies the accounting for sale and leaseback transactions. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently evaluating the provisions of this ASU to determine the impact the new standard will have on the Company's consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, to require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this ASU also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017 including interim periods within that reporting period. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments, which will require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments in ASU 2015-16 are effective for years beginning after December 15, 2015. Early adoption is permitted for reporting periods for which financial statements have not been issued. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

In April 2015, the FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in Cloud Computing Arrangement. The ASU was issued to clarify a customer's accounting for fees paid in a cloud computing arrangement. The amendments provide guidance to customers in determining whether a cloud computing arrangement includes a software license that should be accounted for as internal-use software. If the arrangement does not contain a software license, it would be accounted for as a service contract. The guidance in this ASU is effective for interim and annual periods beginning after December 15, 2015 and can be adopted either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The guidance in this update supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the codification. For public companies, this update was to be effective for interim and annual periods beginning after December 15, 2016. However, in August 2015, the FASB issued ASU 2015-14, which delayed the effective date of ASU 2014-09 by one year and permits companies to voluntarily adopt the new standard as of the original effective date. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

NOTE C - INVESTMENT SECURITIES

The tables below provide detail regarding the amortized cost and fair value of available-for-sale and held-to-maturity investment securities.

34

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

September 30, 2016	Amortized Cost		Gross Unrealized					Fair Value		Yield
			Gains		Losses
	(In thousands)
Available-for-sale securities
U.S. government and agency securities due
Within 1 year	$	21,284	$	—	$	(59	)	$	21,225	0.81	%
1 to 5 years	12,477		1,027		(11		)	13,493		7.94
5 to 10 years	48,134		—		(1,589		)	46,545		1.14
Over 10 years	182,051		27		(3,990		)	178,088		1.33
Equity Securities
Within 1 year	—		—		—			—		—
1 to 5 years	100,422		1,402		—			101,824		1.90
Corporate debt securities due
Within 1 year	278,094		325		(53		)	278,366		1.33
1 to 5 years	63,481		928		(113		)	64,296		2.47
5 to 10 years	69,955		—		(2,417		)	67,538		1.96
Over 10 years	50,000		938		—			50,938		3.00
Municipal bonds due
1 to 5 years	2,315		2		—			2,317		1.23
5 to 10 years	1,335		38		—			1,373		2.05
Over 10 years	20,363		3,617		—			23,980		6.45
Mortgage-backed securities
Agency pass-through certificates	978,955		17,118		(3,032		)	993,041		2.58
Commercial MBS	80,318		—		(448		)	79,870		1.91
	1,909,184		25,422		(11,712		)	1,922,894		2.22
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	1,417,599		24,171		(214		)	1,441,556		3.18
	1,417,599		24,171		(214		)	1,441,556		3.18
	$	3,326,783	$	49,593	$	(11,926	)	$	3,364,450	2.62	%

35

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

September 30, 2015	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	$	105,065	$	1,923	$	(274	)	$	106,714	1.74	%
5 to 10 years	119,071		35		(1,247		)	117,859		1.54
Over 10 years	262,832		—		(4,941		)	257,891		1.23
Equity Securities
Within 1 year	500		17		—			517		1.80
1 to 5 years	99,922		1,513		—			101,435		1.90
Corporate debt securities due
Within 1 year	24,787		191		—			24,978		0.53
1 to 5 years	311,435		1,190		(58		)	312,567		0.88
5 to 10 years	100,000		876		(3,524		)	97,352		1.47
Over 10 years	69,950		953		—			70,903		3.00
Municipal bonds due
1 to 5 years	2,285		8		—			2,293		1.23
5 to 10 years	1,303		7		—			1,310		2.05
Over 10 years	20,382		3,138		—			23,520		6.45
Mortgage-backed securities
Agency pass-through certificates	1,144,787		18,222		(2,491		)	1,160,518		2.48
Commercial MBS	103,131		85		(510		)	102,706		1.51
	2,365,450		28,158		(13,045		)	2,380,563		1.97
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	1,643,216		10,516		(16,312		)	1,637,420		3.19
	1,643,216		10,516		(16,312		)	1,637,420		3.19
	$	4,008,666	$	38,674	$	(29,357	)	$	4,017,983	2.46	%

The Company purchased $137,591,000 of available-for-sale investment securities and no held-to-maturity investment securities during 2016. The Company sold $50,741,000 of available-for-sale securities and there were no sales of held-to-maturity investment securities in 2016. Substantially all mortgage-backed securities have contractual due dates that exceed twenty-five years.

The following table shows the gross unrealized losses and fair value of securities at September 30, 2016 and September 30, 2015, by length of time that individual securities in each category have been in a continuous loss position. Management believes that the declines in fair value of these investments are not an other than temporary impairment as these losses are due to a change in interest rates rather than any credit deterioration. The impairment is also deemed to be temporary because: 1) the Bank does not intend to sell the security, and 2) it is not more likely than not that it will be required to sell the security before recovery of the entire amortized cost basis of the security.

36

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

	September 30, 2016
	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 debt securities	$	—		$	—	$	(2,582	)	$	100,467	$	(2,582	)	$	100,467
U.S. agency securities	(11		)	3,167		(5,638		)	220,613		(5,649		)	223,780
Agency pass-through certificates	(1,278		)	301,030		(2,417		)	232,407		(3,695		)	533,437
	$	(1,289	)	$	304,197	$	(10,637	)	$	553,487	$	(11,926	)	$	857,684

	September 30, 2015
	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 debt securities	$	(183	)	$	72,862	$	(3,399	)	$	46,601	$	(3,582	)	$	119,463
U.S. agency securities	(5,010		)	336,243		(1,452		)	57,344		(6,462		)	393,587
Agency pass-through certificates	(1,036		)	169,541		(18,277		)	1,193,463		(19,313		)	1,363,004
	$	(6,229	)	$	578,646	$	(23,128	)	$	1,297,408	$	(29,357	)	$	1,876,054

NOTE D - LOANS RECEIVABLE

The following table is a summary of loans receivable.

37

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

	September 30, 2016				September 30, 2015
	(In thousands)				(In thousands)
Non-Acquired loans
Single-family residential	$	5,621,066	51.3	%	$	5,651,845	57.5	%
Construction	1,110,411		10.1		200,509		2.0
Construction - custom	473,069		4.3		396,307		4.0
Land - acquisition & development	116,156		1.1		94,208		1.0
Land - consumer lot loans	101,853		0.9		103,989		1.1
Multi-family	1,118,801		10.2		1,125,722		11.5
Commercial real estate	956,164		8.7		986,270		10.0
Commercial & industrial	946,648		8.6		612,836		6.2
HELOC	134,785		1.2		127,646		1.3
Consumer	137,450		1.3		194,655		2.0
Total non-acquired loans	10,716,403		97.9	%	9,493,987		96.6	%
Acquired loans	115,394		1.1		166,293		1.7
Credit impaired acquired loans	89,837		0.8		87,081		0.9
Covered loans	28,974		0.3		75,909		0.8
Total gross loans	10,950,608		100	%	9,823,270		100	%
Less:
Allowance for probable losses	113,494				106,829
Loans in process	879,484				476,796
Discount on acquired loans	11,306				30,095
Deferred net origination fees	35,404				38,916
Total loan contra accounts	1,039,688				652,636
Net Loans	$	9,910,920			$	9,170,634

38

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

The following summary breaks down the Company's fixed rate and adjustable rate loans by time to maturity or to rate adjustment.

September 30, 2016
Fixed-Rate			Adjustable-Rate
Term To Maturity	Gross Loans		Term To Rate Adjustment	Gross Loans
	(In thousands)			(In thousands)
Within 1 year	$	29,428	Less than 1 year	$	1,362,480
1 to 3 years	326,859		1 to 3 years	1,457,584
3 to 5 years	192,202		3 to 5 years	552,402
5 to 10 years	693,099		5 to 10 years	625,852
10 to 20 years	1,020,654		10 to 20 years	—
Over 20 years	4,690,048		Over 20 years	—
	$	6,952,290		$	3,998,318

The following tables provide information regarding loans receivable by loan category and geography.

September 30, 2016	Single - family residential		Multi- family		Land - A & D		Land - lot loans		Construction - custom		Construction		Commercial real estate		Commercial and industrial		Consumer		HELOC		Total
	(In thousands)
Washington	$	2,926,555	$	287,999	$	74,017	$	59,371	$	277,877	$	470,720	$	482,802	$	500,540	$	41,212	$	88,681	$	5,209,774
Oregon	664,932		332,311		10,953		12,403		52,709		122,958		171,093		203,377		3,152		13,711		1,587,599
Arizona	546,080		292,830		4,142		9,014		45,536		43,300		38,302		47,584		309		15,838		1,042,935
Other	216,902		2,448		443		11,157		11,228		110,843		277,438		94,215		91,874		1,030		817,578
Utah	474,390		47,374		958		3,448		33,036		143,246		11,499		46,497		39		7,573		768,060
Idaho	284,212		33,043		4,761		3,910		17,120		64,510		34,075		16,627		141		6,973		465,372
New Mexico	186,061		97,699		12,417		1,274		18,128		47,763		68,385		10,860		1,110		13,790		457,487
Texas	202,541		29,458		10,806		979		10,610		107,071		6,151		42,594		1,085		305		411,600
Nevada	157,154		1,127		—		3,012		6,825		—		3,894		16,295		80		1,816		190,203
	$	5,658,827	$	1,124,289	$	118,497	$	104,568	$	473,069	$	1,110,411	$	1,093,639	$	978,589	$	139,002	$	149,717	$	10,950,608

Percentage by geographic area
September 30, 2016	Single - family residential		Multi- family		Land - A & D		Land - lot loans		Construction - custom		Construction		Commercial real estate		Commercial and industrial		Consumer		HELOC		Total
	As % of total gross loans
Washington	26.8	%	2.6	%	0.7	%	0.5	%	2.5	%	4.3	%	4.4	%	4.6	%	0.4	%	0.8	%	47.6	%
Oregon	6.1		3.0		0.1		0.1		0.5		1.1		1.6		1.9		—		0.1		14.5
Arizona	5.0		2.7		—		0.1		0.4		0.4		0.3		0.4		—		0.2		9.5
Other	2.0		—		—		0.2		0.1		1.0		2.5		0.9		0.8		—		7.5
Utah	4.3		0.5		—		—		0.3		1.3		0.1		0.4		—		0.1		7.0
Idaho	2.5		0.3		—		—		0.2		0.6		0.3		0.2		—		0.1		4.2
New Mexico	1.8		0.9		0.1		—		0.2		0.4		0.6		0.1		—		0.1		4.2
Texas	1.8		0.3		0.1		—		0.1		1.0		0.1		0.4		—		—		3.8
Nevada	1.4		—		0.1		—		0.1		—		—		0.1		—		—		1.7
	51.7	%	10.3	%	1.1	%	0.9	%	4.4	%	10.1	%	9.9	%	9.0	%	1.2	%	1.4	%	100	%

39

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

Percentage by geographic area as a % of each loan type
September 30, 2016	Single - family residential		Multi- family		Land - A & D		Land - lot loans		Construction - custom		Construction		Commercial real estate		Commercial and industrial		Consumer		HELOC
	As % of total gross loans
Washington	51.6	%	25.7	%	62.5	%	56.8	%	58.9	%	42.4	%	44.0	%	51.0	%	29.6	%	59.1	%
Oregon	11.8		29.6		9.2		11.9		11.1		11.1		15.6		20.8		2.3		9.2
Arizona	9.7		26.0		3.5		8.6		9.6		3.9		3.5		4.9		0.2		10.6
Other	3.8		0.2		0.4		10.7		2.4		10.0		25.4		9.6		66.1		0.7
Utah	8.4		4.2		0.8		3.3		7.0		12.9		1.1		4.8		—		5.1
Idaho	5.0		2.9		4.0		3.7		3.6		5.8		3.1		1.7		0.1		4.7
New Mexico	3.3		8.7		10.5		1.2		3.8		4.3		6.3		1.1		0.8		9.2
Texas	3.6		2.6		9.1		0.9		2.2		9.6		0.6		4.4		0.8		0.2
Nevada	2.8		0.1		—		2.9		1.4		—		0.4		1.7		0.1		1.2
	100.0	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%

The Company has granted loans to officers and directors of the Company and related interests. These loans are made on the same terms,

including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and do not involve more than the normal risk of collectability. The aggregate dollar amount of these loans, including unfunded commitments to lend, was $57,153,000 and $55,965,000 at September 30, 2016 and 2015, respectively.

The following table provides additional information on impaired loans, loan commitments and loans serviced for others.

	September 30, 2016		September 30, 2015
	(In thousands)
Recorded investment in impaired loans	$	285,243	$	341,579
TDRs included in impaired loans	261,531		302,713
Allocated reserves on impaired loans	1,980		2,323
Specific reserves on impaired loans	366		275
Average balance of impaired loans for year ended	265,771		333,815
Interest income from impaired loans for year ended	11,314		14,855
Outstanding fixed-rate origination commitments	331,947		230,869
Gross loans serviced for others	80,896		72,083

40

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

The following table sets forth information regarding non-accrual loans.

	September 30, 2016				September 30, 2015
	(In thousands)				(In thousands)
Non-accrual loans:
Single-family residential	$	33,148	78.2	%	$	59,074	87.1	%
Construction	—		—		754		1.1
Construction - custom	—		—		732		1.1
Land - acquisition & development	58		0.1		—		—
Land - consumer lot loans	510		1.2		1,273		1.9
Multi-family	776		1.8		2,558		3.8
Commercial real estate	7,100		16.7		2,176		3.2
Commercial & industrial	583		1.4		—		—
HELOC	239		0.6		563		0.8
Consumer	—		—		680		1.0
Total non-accrual loans	$	42,414	100	%	$	67,810	100	%

The following table breaks down delinquent loans by loan category and delinquency bucket.

September 30, 2016	Amount of Loans		Days Delinquent Based on $ Amount of Loans										% based on $
Type of Loan	Net of Loans in Process		Current		30		60		90		Total
	(In thousands)
Non-acquired loans
Single-family residential	$	5,624,783	$	5,574,384	$	20,917	$	5,173	$	24,309	$	50,399	0.90	%
Construction	497,393		497,393		—		—		—		—		—
Construction - custom	229,957		229,419		538		—		—		538		0.23
Land - acquisition & development	88,662		88,662		—		—		—		—		—
Land - consumer lot loans	102,386		100,373		816		687		510		2,013		1.97
Multi-family	1,119,042		1,117,453		1,190		399		—		1,589		0.14
Commercial real estate	955,944		955,604		—		183		157		340		0.04
Commercial & industrial	947,703		947,661		—		42		—		42		—
HELOC	134,214		133,683		490		—		41		531		0.40
Consumer	136,835		135,926		705		124		80		909		0.66
	9,836,919		9,780,558		24,656		6,608		25,097		56,361		0.57
Acquired loans	115,394		114,770		124		2		498		624		0.54
Credit impaired acquired loans	89,837		84,625		227		142		4,843		5,212		5.80
Covered loans	28,974		22,891		—		262		5,821		6,083		20.99
Total Loans	$	10,071,124	$	10,002,844	$	25,007	$	7,014	$	36,259	$	68,280	0.68	%
Delinquency %			99.32%		0.25%		0.07%		0.36%		0.68%

The percentage of total delinquent loans was 0.68% as of September 30, 2016, as compared to 0.88% as of September 30, 2015.

Most loans restructured in troubled debt restructurings ("TDRs") are accruing and performing loans where the borrower has proactively approached the Company about modifications due to temporary financial difficulties. Each request is individually evaluated for merit and likelihood of success. The concession for these loans is typically a payment reduction through a rate reduction of 100 to 200 bps for a specific term, usually six to twelve months. Interest-only payments may also be approved during the modification period. Principal forgiveness is not an available option for restructured loans. As of September 30, 2016, the outstanding balance of TDR's was $261,531,000 as compared to $302,713,000 as of September 30, 2015. As of September 30, 2016, 96.2% of the restructured loans were performing. Single-family residential loans comprised 87.2% of TDR loans as of September 30, 2016. The Company reserves for restructured loans within its allowance for loan

41

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

loss methodology by taking into account the following performance indicators: 1) time since modification, 2) current payment status and 3) geographic area.

The following table provides information related to loans that were modified in a TDR during the periods presented.

	Twelve Months Ended September 30, 2016					Twelve Months Ended September 30, 2015
		Pre-Modification		Post-Modification			Pre-Modification		Post-Modification
		Outstanding		Outstanding			Outstanding		Outstanding
	Number of	Recorded		Recorded		Number of	Recorded		Recorded
Troubled Debt Restructurings:	Contracts	Investment		Investment		Contracts	Investment		Investment
		(In thousands)					(In thousands)
Single-family residential	120	$	23,541	$	23,541	62	$	13,378	$	13,378
Construction	—	—		—		2	701		701
Land - consumer lot loans	10	970		970		9	1,546		1,546
Commercial real estate	7	2,523		2,523		3	3,175		3,175
HELOC	1	126		126		1	50		50
Consumer	1	24		24		1	80		80
	139	$	27,184	$	27,184	78	$	18,930	$	18,930

The following table provides information on payment defaults occurring during the periods presented where the loan had been modified in a TDR within 12 months of the payment default.

	Twelve Months Ended September 30, 2016			Twelve Months Ended September 30, 2015
	Number of	Recorded		Number of	Recorded
TDRs That Subsequently Defaulted:	Contracts	Investment		Contracts	Investment
	(In thousands)			(In thousands)
Single-family residential	17	$	4,875	18	$	2,917
Construction	1	279		—	—
Land - consumer lot loans	5	606		2	301
Commercial real estate	2	326		—	—
	25	$	6,086	20	$	3,218

The excess of cash flows expected to be collected over the initial fair value of acquired impaired loans is referred to as the accretable yield and this amount is accreted into interest income over the estimated life of the acquired loans using the effective yield method. Other adjustments to the accretable yield include changes in the estimated remaining life of the acquired loans, changes in expected cash flows and changes in the indices for acquired loans with variable interest rates.

The following table shows the changes in accretable yield for acquired impaired loans and acquired non-impaired loans including covered loans for the years ended September 30, 2016 and 2015.

42

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

	Twelve Months Ended September 30, 2016												Twelve Months Ended September 30, 2015
	Acquired Impaired						Acquired Non-impaired						Acquired Impaired						Acquired Non-impaired
	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
	(In thousands)												(In thousands)
Beginning balance	$	72,705		$	111,300		$	7,204		$	187,080		$	97,125		$	135,826		$	14,513		$	275,862
Net reclassification from non-accretable	4,867			—			—			—			6,307			—			346			—
Accretion	(18,730		)	18,730			(2,982		)	2,982			(30,727		)	30,727			(7,655		)	7,655
Transfers to REO	—			(175		)	—			—			—			(2,975		)	—			(150		)
Payments received, net	—			(38,094		)	—			(58,930		)	—			(52,278		)	—			(96,287		)
Ending Balance	$	58,842		$	91,761		$	4,222		$	131,132		$	72,705		$	111,300		$	7,204		$	187,080

At September 30, 2016 and September 30, 2015, none of the acquired impaired or non-impaired loans were classified as non-performing assets. Therefore, interest income, through accretion of the difference between the carrying amount of the loans and the expected cash flows, was recognized on all acquired loans.

The FDIC loss share coverage for the acquired commercial loans from the former Horizon Bank expired after March 31, 2015. These loans were transferred to loans receivable. The FDIC loss share coverage for the acquired commercial loans from the former Home Valley Bank expired after of September 30, 2015 with final reporting as of October 31, 2015. Recoveries to the extent that claims were made will continue to be shared for three years. The FDIC loss share coverage for single family residential loans will continue for another four years.

The outstanding principal balance of covered loans was $28,974,000 as of September 30, 2016, as compared to $75,909,000 as of September 30, 2015. The discount balance related to the covered loans was $2,738,000 as of September 30, 2016.

The following table shows the year to date activity for the FDIC indemnification asset.

	Twelve Months Ended September 30, 2016			Twelve Months Ended September 30, 2015
	(In thousands)
Balance at beginning of year	$	16,275		$	36,860
Additions and impairment	—			(1,795		)
Payments received	(1,730		)	(720		)
Amortization	(2,012		)	(18,588		)
Accretion	236			518
Balance at end of year	$	12,769		$	16,275

NOTE E - ALLOWANCE FOR LOSSES ON LOANS

The following tables summarize the activity in the allowance for loan losses.

43

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

Twelve Months Ended September 30, 2016	Beginning Allowance		Charge-offs			Recoveries		Provision & Transfers			Ending Allowance
	(In thousands)
Single-family residential	$	47,347	$	(3,106	)	$	3,251	$	(9,696	)	$	37,796
Construction	6,680		—			745		12,413			19,838
Construction - custom	990		(60		)	60		90			1,080
Land - acquisition & development	5,781		(42		)	8,220		(7,936		)	6,023
Land - consumer lot loans	2,946		(732		)	5		316			2,535
Multi-family	5,304		—			—		1,621			6,925
Commercial real estate	8,960		(103		)	1,812		(2,081		)	8,588
Commercial & industrial	24,980		(941		)	2,933		1,036			28,008
HELOC	902		(54		)	21		(56		)	813
Consumer	2,939		(962		)	2,018		(2,107		)	1,888
	$	106,829	$	(6,000	)	$	19,065	$	(6,400	)	$	113,494

Twelve Months Ended September 30, 2015	Beginning Allowance		Charge-offs			Recoveries		Provision & Transfers			Ending Allowance
	(In thousands)
Single-family residential	$	62,763	$	(5,524	)	$	13,403	$	(23,295	)	$	47,347
Construction	6,742		(388		)	120		206			6,680
Construction - custom	1,695		—			—		(705		)	990
Land - acquisition & development	5,592		(38		)	207		20			5,781
Land - consumer lot loans	3,077		(459		)	221		107			2,946
Multi-family	4,248		—			220		836			5,304
Commercial real estate	7,548		(1,711		)	735		2,388			8,960
Commercial & industrial	16,527		(3,354		)	1,374		10,433			24,980
HELOC	928		(66		)	2		38			902
Consumer	3,227		(3,060		)	3,688		(916		)	2,939
Covered loans	2,244		—			—		(2,244		)	—
	$	114,591	$	(14,600	)	$	19,970	$	(13,132	)	$	106,829

The Company recorded a release of allowance for loan losses of $6,400,000 during the year ended September 30, 2016, as compared to a release of $11,162,000 for the year ended September 30, 2015. The credit quality of the portfolio has been improving significantly and economic conditions are more stable.

The Company had recoveries, net of charge-offs, of $13,065,000 for the year ended September 30, 2016, compared with net recoveries of $5,370,000 for the year ended September 30, 2015. A loan is charged-off when the loss is estimable and it is confirmed that the borrower is not expected to be able to meet its contractual obligations.

Non-accrual loans decreased to $42,414,000 as of September 30, 2016 from $67,810,000 as of September 30, 2015. Non-performing assets (“NPAs”) totaled $71,441,000, or 0.48% of total assets, at September 30, 2016, compared to $128,908,000, or 0.88% of total assets, as of September 30, 2015. Acquired loans, including covered loans, are not classified as non-performing loans because they are recorded at fair value at acquisition and reflect lifetime estimated losses at that time. As of September 30, 2016, $20,175,000 in acquired loans were subject to the general allowance as the discount related to these balances was not sufficient to absorb potential losses.

There is no allowance for covered loans as of September 30, 2016 or September 30, 2015.

44

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

At September 30, 2016, $113,128,000 of the allowance was calculated under the formulas contained in our general allowance methodology and the remaining $366,000 represents specific reserves on loans that were deemed to be impaired.

The following tables show a summary of loans collectively and individually evaluated for impairment and the related allocation of general and specific reserves.

September 30, 2016	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	$	37,536	$	5,585,912	0.7	%	$	260	$	19,629	1.3	%
Construction	19,838		498,450		4.0		—		—		—
Construction - custom	1,080		229,298		0.5		—		330		—
Land - acquisition & development	6,022		90,850		6.6		2		850		0.2
Land - consumer lot loans	2,535		92,828		2.7		—		558		—
Multi-family	6,911		1,091,974		0.6		13		1,505		0.9
Commercial real estate	8,497		957,380		0.9		91		11,157		0.8
Commercial & industrial	28,008		966,930		2.9		—		—		—
HELOC	813		133,203		0.6		—		239		—
Consumer	1,888		137,315		1.4		—		3		—
	$	113,128	$	9,784,140	1.2	%	$	366	$	34,271	1.1	%

 ___________________

(1) Excludes acquired loans with discounts sufficient to absorb potential losses and covered loans

September 30, 2015	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	$	47,073	$	5,595,752	0.8	%	$	275	$	51,718	0.5	%
Construction	6,680		124,679		5.4		—		5,441		—
Construction - custom	990		205,692		0.5		—		—		—
Land - acquisition & development	5,781		72,602		8.0		—		2,198		—
Land - consumer lot loans	2,946		93,103		3.2		—		10,824		—
Multi-family	5,304		1,062,194		0.5		—		5,348		—
Commercial real estate	8,960		844,691		1.1		—		8,826		—
Commercial & industrial	24,980		643,577		3.9		—		—		—
HELOC	902		126,594		0.7		—		1,072		—
Consumer	2,938		194,569		1.5		—		86		—
	$	106,554	$	8,963,453	1.2	%	$	275	$	85,513	0.3	%

 ___________________

(1) Excludes acquired loans with discounts sufficient to absorb potential losses and covered loans

45

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

The Company has an asset quality review function that analyzes the loan portfolio and reports the results of the review to the Board of Directors on a quarterly basis. The single-family residential, HELOC and consumer portfolios are evaluated based on their performance as a pool of loans, since no single loan is individually significant or judged by its risk rating, size or potential risk of loss. The construction, land, multi-family, commercial real estate and commercial and industrial loans are risk rated on a loan by loan basis to determine the relative risk inherent in specific borrowers or loans. Based on that risk rating, the loans are assigned a grade and classified as follows:

• Pass – the credit does not meet one of the definitions defined 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.

The following tables provide information on loans based on credit quality indicators (defined above).

46

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

September 30, 2016	Internally Assigned Grade															Total
	Pass			Special mention			Substandard			Doubtful			Loss			Gross Loans
	(In thousands)
Non-acquired loans
Single-family residential	$	5,570,634		$	—		$	50,432		$	—		$	—		$	5,621,066
Construction	1,098,549			8,595			3,267			—			—			1,110,411
Construction - custom	473,069			—			—			—			—			473,069
Land - acquisition & development	110,125			—			6,031			—			—			116,156
Land - consumer lot loans	100,862			—			991			—			—			101,853
Multi-family	1,112,342			3,237			3,222			—			—			1,118,801
Commercial real estate	928,032			13,446			14,686			—			—			956,164
Commercial & industrial	900,571			7,160			38,917			—			—			946,648
HELOC	134,298			—			487			—			—			134,785
Consumer	137,367			—			83			—			—			137,450
Total non-acquired loans	10,565,849			32,438			118,116			—			—			10,716,403
Acquired loans	108,616			47			6,731			—			—			115,394
Credit impaired acquired loans	60,985			—			28,852			—			—			89,837
Covered loans	28,647			—			327			—			—			28,974
Total gross loans	$	10,764,097		$	32,485		$	154,026		$	—		$	—		$	10,950,608
Total grade as a % of total gross loans	98.3		%	0.3		%	1.4		%	—		%	—		%

September 30, 2015	Internally Assigned Grade															Total
	Pass			Special mention			Substandard			Doubtful			Loss			Gross Loans
	(In thousands)
Non-acquired loans
Single-family residential	$	5,558,700		$	—		$	93,145		$	—		$	—		$	5,651,845
Construction	197,935			—			2,574			—			—			200,509
Construction - custom	396,307			—			—			—			—			396,307
Land - acquisition & development	89,656			—			4,552			—			—			94,208
Land - consumer lot loans	103,569			—			420			—			—			103,989
Multi-family	1,118,673			865			6,184			—			—			1,125,722
Commercial real estate	971,510			4,360			10,400			—			—			986,270
Commercial & industrial	575,034			1,496			36,306			—			—			612,836
HELOC	127,398			—			248			—			—			127,646
Consumer	194,451			—			204			—			—			194,655
Total non-acquired loans	9,333,233			6,721			154,033			—			—			9,493,987
Acquired loans	149,891			—			16,402			—			—			166,293
Credit impaired acquired loans	61,019			—			26,062			—			—			87,081
Covered loans	61,776			—			14,133			—			—			75,909
Total gross loans	$	9,605,919		$	6,721		$	210,630		$	—		$	—		$	9,823,270
Total grade as a % of total gross loans	97.8		%	0.1		%	2.1		%	—		%	—		%

47

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

The following tables provide information on loans based on payment activity.

September 30, 2016	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross  Loans		Amount		% of Total Gross  Loans
	(In thousands)				(In thousands)
Single-family residential	$	5,587,919	99.4	%	$	33,148	0.6	%
Construction	1,110,411		100.0		—		—
Construction - custom	473,069		100.0		—		—
Land - acquisition & development	116,097		99.9		58		0.1
Land - consumer lot loans	101,343		99.5		510		0.5
Multi-family	1,118,025		99.9		776		0.1
Commercial real estate	949,064		99.3		7,100		0.7
Commercial & industrial	946,065		99.9		583		0.1
HELOC	134,546		99.8		239		0.2
Consumer	137,450		100.0		—		—
	$	10,673,989	99.6	%	$	42,414	0.4	%

September 30, 2015	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross  Loans		Amount		% of Total Gross  Loans
	(In thousands)				(In thousands)
Single-family residential	$	5,592,771	99.0	%	$	59,074	1.0	%
Construction	199,755		99.6		754		0.4
Construction - custom	395,575		99.8		732		0.2
Land - acquisition & development	94,208		100.0		—		—
Land - consumer lot loans	102,716		98.8		1,273		1.2
Multi-family	1,123,165		99.8		2,558		0.2
Commercial real estate	984,093		99.8		2,176		0.2
Commercial & industrial	612,836		100.0		—		—
HELOC	127,083		99.6		563		0.4
Consumer	193,975		99.7		680		0.3
	$	9,426,177	99.3	%	$	67,810	0.7	%

48

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

The following tables provide information on impaired loans by loan category.

September 30, 2016	Recorded Investment		Unpaid Principal Balance		Related Allowance			Average Recorded Investment
	(In thousands)
Impaired loans with no related allowance recorded:
Single-family residential	$	9,627	$	11,366	$	—		$	6,511
Construction	—		—		—			—
Construction - custom	—		—		—			—
Land - acquisition & development	138		9,001		—			614
Land - consumer lot loans	499		609		—			317
Multi-family	394		3,972		—			638
Commercial real estate	11,741		21,301		—			6,260
Commercial & industrial	1,030		3,082		—			863
HELOC	209		315		—			165
Consumer	74		550		—			111
	23,712		50,196		—			15,479
Impaired loans with an allowance recorded:
Single-family residential	228,186		232,595		3,809			216,632
Construction	—		—		—			—
Construction - custom	—		—		—			—
Land - acquisition & development	1,154		2,094		1			1,766
Land - consumer lot loans	9,630		10,678		1			9,548
Multi-family	1,505		1,505		13			1,522
Commercial real estate	19,434		22,848		91			19,311
Commercial & industrial	—		—		—			—
HELOC	1,506		1,521		—			1,413
Consumer	116		306		—			100
	261,531		271,547		3,915		(1)	250,292
Total:
Single-family residential	237,813		243,961		3,809			223,143
Construction	—		—		—			—
Construction - custom	—		—		—			—
Land - acquisition & development	1,292		11,095		1			2,380
Land - consumer lot loans	10,129		11,287		1			9,865
Multi-family	1,899		5,477		13			2,160
Commercial real estate	31,175		44,149		91			25,571
Commercial & industrial	1,030		3,082		—			863
HELOC	1,715		1,836		—			1,578
Consumer	190		856		—			211
	$	285,243	$	321,743	$	3,915	(1)	$	265,771

____________________ 

(1) Includes $366,000 of specific reserves and $3,549,000 included in the general reserves.

49

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

September 30, 2015	Recorded Investment		Unpaid Principal Balance		Related Allowance			Average Recorded Investment
	(In thousands)
Impaired loans with no related allowance recorded:
Single-family residential	$	17,250	$	19,644	$	—		$	14,069
Construction	453		2,151		—			471
Construction - custom	554		554		—			182
Land - acquisition & development	2,570		9,426		—			926
Land - consumer lot loans	727		814		—			544
Multi-family	3,770		7,054		—			1,545
Commercial real estate	9,427		15,620		—			8,130
Commercial & industrial	2,955		13,066		—			2,681
HELOC	683		1,532		—			536
Consumer	477		703		—			390
	38,866		70,564		—			29,474
Impaired loans with an allowance recorded:
Single-family residential	259,461		263,268		6,678			260,028
Construction	4,988		5,778		—			5,432
Construction - custom	—		—		—			—
Land - acquisition & development	2,486		3,426		—			3,478
Land - consumer lot loans	11,289		11,554		—			11,324
Multi-family	3,823		3,823		—			3,732
Commercial real estate	19,124		21,078		—			18,886
Commercial & industrial	—		—		—			—
HELOC	1,443		1,443		—			1,359
Consumer	99		289		—			102
	302,713		310,659		6,678		(1)	304,341
Total:
Single-family residential	276,711		282,912		6,678			274,097
Construction	5,441		7,929		—			5,903
Construction - custom	554		554		—			182
Land - acquisition & development	5,056		12,852		—			4,404
Land - consumer lot loans	12,016		12,368		—			11,868
Multi-family	7,593		10,877		—			5,277
Commercial real estate	28,551		36,698		—			27,016
Commercial & industrial	2,955		13,066		—			2,681
HELOC	2,126		2,975		—			1,895
Consumer	576		992		—			492
	$	341,579	$	381,223	$	6,678	(1)	$	333,815

____________________ 

(1) Includes $275,000 of specific reserves and $6,403,000 included in the general reserves.

NOTE F - FAIR VALUE MEASUREMENTS

50

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active exchange markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active and other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

We have established and documented the Company's process for determining the fair values of the Company's assets and liabilities, where applicable. Fair value is based on quoted market prices, when available, for identical or similar assets or liabilities. In the absence of quoted market prices, fair value is determined using valuation models or third-party appraisals. The following is a description of the valuation methodologies used to measure and report the fair value of financial assets and liabilities on a recurring or nonrecurring basis.

Measured on a Recurring Basis

Available-for-sale investment securities and derivative contracts

Securities available for sale are recorded at fair value on a recurring basis. The fair value of debt securities are priced using model pricing based on the securities' relationship to other benchmark quoted prices as provided by an independent third party, and under GAAP are considered a Level 2 input method. Securities that are traded on active exchanges, including the Company's equity securities, are measured using the closing price in an active market and are considered a Level 1 input method.

The Company offers interest rate swaps to its variable rate borrowers who want to manage their interest rate risk. At the same time, the Company enters into the opposite trade with a counter party to offset its interest rate risk. The Company has also entered into a commercial loan hedge as well as long term borrowing hedges using interest rate swaps. The fair value of these interest rate swaps are estimated by a third party pricing service using a discounted cash flow technique. These are considered a Level 2 input method.

51

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

The following table presents the balance and ASC 825 level of assets measured at fair value on a recurring basis.

	September 30, 2016
	Level 1		Level 2		Level 3		Total
	(In thousands)
Available-for-sale securities
Equity securities	$	101,824	$	—	$	—	$	101,824
U.S. government and agency securities	—		259,351		—		259,351
Municipal bonds	—		27,670		—		27,670
Corporate debt securities	—		461,138		—		461,138
Mortgage-backed securities
Agency pass-through certificates	—		993,041		—		993,041
Commercial MBS	—		79,870		—		79,870
Other debt securities	—		—		—		—
Total Available-for-sale securities	101,824		1,821,070		—		1,922,894
Interest rate contracts	—		20,895		—		20,895
Total Financial Assets	$	101,824	$	1,841,965	$	—	$	1,943,789
Financial Liabilities
Interest rate contracts	$	—	$	20,895	$	—	$	20,895
Commercial loan hedges	—		3,312		—		3,312
Long term borrowing hedges	—		31,347		—		31,347
Total Financial Liabilities	$	—	$	55,554	$	—	$	55,554

There were no transfers between, into and/or out of Levels 1, 2 or 3 during the year ended September 30, 2016.

52

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

	September 30, 2015
	Level 1		Level 2		Level 3		Total
	(In thousands)
Available-for-sale securities
Equity securities	$	101,952	$	—	$	—	$	101,952
U.S. government and agency securities	—		482,464		—		482,464
Municipal bonds	—		27,123		—		27,123
Corporate debt securities	—		505,800		—		505,800
Mortgage-backed securities
Agency pass-through certificates							—
Commercial MBS	—		1,160,518		—		1,160,518
Other debt securities	—		102,706		—		102,706
Total Available-for-sale securities	101,952		2,278,611		—		2,380,563
Interest rate contracts	—		11,879		—		11,879
Total Financial Assets	$	101,952	$	2,290,490	$	—	$	2,392,442
Financial Liabilities
Interest rate contracts	$	—	$	11,879	$	—	$	11,879
Commercial loan hedges	—		966		—		966
Long term borrowing hedges	—		14,555		—		14,555
Total Financial Liabilities	$	—	$	27,400	$	—	$	27,400

There were no transfers between, into and/or out of Level 1, 2 or 3 during the year ended September 30, 2015.

Measured on a Nonrecurring Basis

Impaired Loans & Real Estate Owned

Real estate owned ("REO") consists principally of properties acquired through foreclosure. From time to time, and on a nonrecurring basis, adjustments using fair value measurements are recorded to reflect increases or decreases based on the current appraisal or estimated value of the collateral, but only up to the fair value of the real estate owned as of the initial transfer date less selling costs.

When management determines that the fair value of the collateral or the real estate owned requires additional adjustments, either as a result of an updated appraised value or when there is no observable market price, the Company classifies the impaired loan or real estate owned as Level 3. Level 3 assets recorded at fair value on a nonrecurring basis represent impaired loans for which a specific reserve is recorded or a partial charge-off was recorded based on the fair value of collateral, as well as real estate owned where the fair value of the property was less than the cost basis.

The following table presents the recorded balance of assets that were measured at estimated fair value on a nonrecurring basis for the periods presented, and the total gains (losses) resulting from those fair value adjustments for the periods presented. These estimated fair values are shown gross of estimated selling costs:

53

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

	September 30, 2016								Three Months Ended September 30, 2016			Twelve Months Ended September 30, 2016
	Level 1		Level  2		Level  3		Total		Total Gains (Losses)
	(In thousands)
Impaired loans (1)	$	—	$	—	$	17,476	$	17,476	$	(474	)	$	(4,236	)
Real estate owned (2)	—		—		25,190		25,190		(1,003		)	(3,947		)
Balance at end of period	$	—	$	—	$	42,666	$	42,666	$	(1,477	)	$	(8,183	)

 ___________________

(1) The gains (losses) represent remeasurements of collateral-dependent impaired loans.

(2) The gains (losses) represent aggregate writedowns and charge-offs on real estate owned.

	September 30, 2015								Three Months Ended September 30, 2015			Twelve Months Ended September 30, 2015
	Level 1		Level  2		Level  3		Total		Total Gains (Losses)
	(In thousands)
Impaired loans (1)	$	—	$	—	$	6,735	$	6,735	$	(40	)	$	(4,241	)
Real estate owned (2)	—		—		81,448		81,448		(654		)	7,749
Balance at end of period	$	—	$	—	$	88,183	$	88,183	$	(694	)	$	3,508

 ___________________

(1) The gains (losses) represent remeasurements of collateral-dependent impaired loans.

(2) The gains (losses) represent aggregate writedowns and charge-offs on real estate owned.

The following describes the process used to value Level 3 assets measured on a nonrecurring basis:

Impaired loans - The Company adjusts the carrying amount of impaired loans when there is evidence of probable loss and the expected fair value of the loan is less than its contractual amount. The amount of the impairment may be determined based on the estimated present value of future cash flows or the fair value of the underlying collateral. Impaired loans with a specific reserve allowance based on cash flow analysis or the value of the underlying collateral are classified as Level 3 assets.

The evaluations for impairment are prepared by the Problem Loan Review Committee, which is chaired by the Chief Credit Officer and includes the Loan Review manager and Special Credits manager, as well as senior credit officers, division managers and group executives, as applicable. These evaluations are performed in conjunction with the quarterly allowance for loan loss process.

Applicable loans that were included in the previous quarter's review are reevaluated and if their values are materially different from the prior quarter evaluation, the underlying information (loan balance and collateral value) are compared. Material differences are evaluated for reasonableness and discussions are held between the relationship manager and their division manager to understand the difference and determine if any adjustment is necessary.

The inputs are developed and substantiated on a quarterly basis, based on current borrower developments, market conditions and collateral values. The following methods are used to value impaired loans:

• 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 present value of the expected future cash flows of the loans is used for measurement of non collateral-dependent loans to test for impairment. The Company estimates the future cash flows and then discounts those using the contractual interest rate.

Real estate owned - When a loan is reclassified from loan status to real estate owned due to the Company taking possession of the collateral, a Special Credits officer, along with the Special Credits manager, obtains a valuation, which may include appraisals

54

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

or third-party price options, which is used to establish the fair value of the underlying collateral. The determined fair value, less selling costs, becomes the carrying value of the REO asset.

Fair Values of Financial Instruments

U. S. GAAP requires disclosure of fair value information about financial instruments, whether or not recognized on the statement of financial condition, for which it is practicable to estimate those values. Certain financial instruments and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value estimates presented do not reflect the underlying fair value of the Company. Although management is not aware of any factors that would materially affect the estimated fair value amounts presented below, such amounts have not been comprehensively revalued for purposes of these financial statements since the dates shown, and therefore, estimates of fair value subsequent to those dates may differ significantly from the amounts presented below.

		September 30, 2016				September 30, 2015
	Level	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
		(In thousands)
Financial assets
Cash and cash equivalents	1	$	450,368	$	450,368	$	284,049	$	284,049
Available-for-sale securities:
Equity securities	1	101,824		101,824		101,952		101,952
U.S. government and agency securities	2	259,351		259,351		482,464		482,464
Municipal bonds	2	27,670		27,670		27,123		27,123
Corporate debt securities	2	461,138		461,138		505,800		505,800
Mortgage-backed securities
Agency pass-through certificates	2	993,041		993,041		1,160,518		1,160,518
Commercial MBS	2	79,870		79,870		102,706		102,706
Total available-for-sale securities		1,922,894		1,922,894		2,380,563		2,380,563
Held-to-maturity securities:
Mortgage-backed securities
Agency pass-through certificates	2	1,417,599		1,441,556		1,643,216		1,637,420
Total held-to-maturity securities		1,417,599		1,441,556		1,643,216		1,637,420
Loans receivable	3	9,910,920		10,414,794		9,170,634		9,667,750
FDIC indemnification asset	3	12,769		12,095		16,275		15,522
FHLB and FRB stock	2	117,205		117,205		107,198		107,198
Other assets - interest rate contracts	2	20,895		20,895		11,879		11,879
Financial liabilities
Customer accounts	2	10,600,852		10,184,321		10,631,703		10,004,290
FHLB advances and other borrowings	2	2,080,000		2,184,671		1,830,000		1,938,384
Other liabilities - interest rate contracts	2	20,895		20,895		11,879		11,879
Other liabilities - commercial loan hedges	2	3,312		3,312		966		966
Other liabilities - long term borrowing hedges	2	31,347		31,347		14,555		14,555

55

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

The following methods and assumptions were used to estimate the fair value of financial instruments:

Cash and cash equivalents – The carrying amount of these items is a reasonable estimate of their fair value.

Available-for-sale securities and held-to-maturity securities – Securities at fair value are primarily priced using model pricing based on the securities' relationship to other benchmark quoted prices as provided by an independent third party, and are considered a Level 2 input method. Equity securities which are exchange traded are considered a Level 1 input method.

Loans receivable – For certain homogeneous categories of loans, such as fixed- and variable-rate residential mortgages, fair value is estimated for securities backed by similar loans, adjusted for differences in loan characteristics, using the same methodology described above for AFS and HTM securities. The fair value of other loan types is estimated by discounting the future cash flows and estimated prepayments using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining term. Some loan types were valued at carrying value because of their floating rate or expected maturity characteristics. Net deferred loan fees are not included in the fair value calculation but are included in the carrying amount.

FDIC indemnification asset – The fair value of the indemnification asset is estimated by discounting the expected future cash flows using the current rates.

FHLB and FRB stock – The fair value is based upon the par value of the stock which equates to its carrying value.

Customer accounts – The fair value of demand deposits, savings accounts, and money market accounts is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated by discounting the estimated future cash flows using the rates currently offered for deposits with similar remaining maturities.

FHLB advances – The fair value of FHLB advances and other borrowings is estimated by discounting the estimated future cash flows using rates currently available to the Company for debt with similar remaining maturities.

Interest Rate Contracts – The bank offers interest rate swaps to its variable rate borrowers who want to manage their interest rate risk. At the same time, the bank enters into the opposite trade with a counterparty to offset its interest rate risk. The fair value of these interest rate swaps are estimated by a third party pricing service using a discounted cash flow technique.

Commercial Loan Hedges – The fair value of the interest rate swaps are estimated by a third party pricing service using a discounted cash flow technique.

Long Term Borrowing Hedges – The fair value of the interest rate swaps are estimated by a third party pricing service using a discounted cash flow technique.

NOTE G - DERIVATIVES AND HEDGING ACTIVITIES

The Company periodically enters into certain interest rate swap agreements in order to provide commercial loan customers the ability to convert from variable to fixed interest rate payments, while the Company retains a variable rate loan. Under these agreements, the Company enters into a variable rate loan agreement and a swap agreement with the client. The swap agreement effectively converts the client’s variable rate loan into a fixed rate. The Company enters into a corresponding swap agreement with a third party in order to offset its exposure on the variable and fixed components of the client's swap agreement. The Company had $840,935,000 and $439,416,000 notional in interest rate swaps to hedge this exposure as of September 30, 2016 and September 30, 2015, respectively. As of September 30, 2016, $34,432,000 of the outstanding notional balance related to a related party loan. The interest rate swaps are derivatives under FASB ASC 815, Derivatives and Hedging, with changes in fair value recorded in earnings. There was no net impact to the statement of operations for the year ended September 30, 2016 as the changes in value for the asset and liability side of the swaps offset each other.

The Company has also entered into interest rate swaps, some of which are forward-starting, to convert certain existing and future short-term borrowings to fixed rate payments. The primary purpose of these hedges is to mitigate the risk of rising interest rates, specifically LIBOR rates, which are a benchmark for the short term borrowings. The hedging program qualifies as a cash flow hedge under ASC 815, which provides for offsetting of the recognition of gains and losses of the interest rate swaps and the hedged items. The hedged item is the LIBOR portion of the series of existing or future short-term fixed rate borrowings over the term of the interest rate swap. The change in the fair value of the interest rate swaps is recorded in other comprehensive income. The

56

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

Company had $700,000,000 and $400,000,000 notional in interest rate swaps to hedge existing and anticipated future borrowings as of September 30, 2016 and September 30, 2015, respectively. The unrealized loss, gross of the related tax benefit, on these interest rate swaps as of September 30, 2016 was $31,347,000.

The Company has also entered into an interest rate swap to hedge the interest rate risk of an individual fixed rate commercial loan and this relationship qualifies as a fair value hedge under ASC 815, which provides for offsetting of the recognition of gains and losses of the interest rate swap and the hedged item. The Company hedges this loan using an interest rate swap with a notional amount of $54,155,000 and $54,815,000 as of September 30, 2016 and September 30, 2015, respectively.

The following table presents the fair value and balance sheet classification of derivatives outstanding.

	Asset Derivatives						Liability Derivatives
	September 30, 2016			September 30, 2015			September 30, 2016			September 30, 2015
(In thousands)	Balance Sheet	Fair Value		Balance Sheet	Fair Value		Balance Sheet	Fair Value		Balance Sheet	Fair Value
Interest rate contracts	Other assets	$	20,895	Other assets	$	11,879	Other liabilities	$	20,895	Other liabilities	$	11,879
Commercial loan hedges	Other assets	—		Other assets	—		Other liabilities	3,312		Other liabilities	966
Long term borrowing hedges	Other assets	—		Other assets	—		Other liabilities	31,347		Other liabilities	14,555
		$	20,895		$	11,879		$	55,554		$	27,400

NOTE H - INTEREST RECEIVABLE

The following table provides a summary of interest receivable by interest earning asset type.

	September 30, 2016		September 30, 2015
	(In thousands)
Loans receivable	$	29,858	$	30,930
Mortgage-backed securities	5,670		6,695
Investment securities	2,141		2,804
	$	37,669	$	40,429

Interest receivable was $37,669,000 at September 30, 2016 as compared to $40,429,000 as of September 30, 2015. The decrease is primarily due to lower rates as the average period rate for earning assets was 3.58% as of September 30, 2016 compared to 3.63% as of September 30, 2015.

NOTE I - PREMISES AND EQUIPMENT

The following table provides a summary of premises and equipment by asset type.

57

		September 30, 2016			September 30, 2015
	Estimated Useful Life	(In thousands)
Land	—	$	109,414		$	113,347
Buildings	25 - 40	143,841			147,757
Leasehold improvements	7 - 15	18,365			10,193
Furniture, software and equipment	2 - 10	115,199			89,919
		386,819			361,216
Less accumulated depreciation and amortization		(104,868		)	(84,969		)
		$	281,951		$	276,247

The Company has non-cancelable operating leases for certain branch offices. Future minimum net rental commitments for all non-cancelable leases, including maintenance and associated costs, are as follows: $4,902,000 for 2017, $3,942,000 for 2018, $3,422,000 for 2019, $3,228,000 for 2020, $2,538,000 for 2021 and $13,159,000 thereafter.

Rental expense, including amounts paid under month-to-month cancelable leases, amounted to $5,300,000, $6,600,000 and $6,600,000 in 2016, 2015, and 2014, respectively.

NOTE J - CUSTOMER ACCOUNTS

The following table provides the composition of the Company's customer accounts, including interest rate buckets and maturity buckets for time deposits.

	September 30, 2016		September 30, 2015
	(In thousands)
Checking accounts, .15% and under	$	2,721,721	$	2,555,766
Passbook and statement accounts, .10% and under	820,980		700,794
Insured money market accounts, .01% to .15%	2,462,891		2,564,318
Time deposit accounts
Less than 1.00%	3,268,272		3,126,119
1.00% to 1.99%	1,292,612		1,177,356
2.00% to 2.99%	34,376		501,409
3.00% to 3.99%	—		5,156
4.00% and higher	—		785
Total time deposits	4,595,260		4,810,825
	$	10,600,852	$	10,631,703
Time deposit maturities are as follows:	September 30, 2016		September 30, 2015
	(In thousands)
Within 1 year	$	2,894,900	$	2,862,313
1 to 2 years	798,309		1,068,792
2 to 3 years	293,058		321,118
Over 3 years	608,993		558,602
	$	4,595,260	$	4,810,825

Customer accounts over $250,000 totaled $2,250,622,000 as of September 30, 2016 and $2,096,690,000 as of September 30, 2015.

Interest expense on customer accounts consisted of the following:

58

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

Year ended September 30,	2016			2015			2014
	(In thousands)
Checking accounts	$	1,491		$	1,036		$	1,259
Passbook and statement accounts	734			660			607
Insured money market accounts	3,285			3,631			4,574
Time deposit accounts	47,425			46,273			52,636
	52,935			51,600			59,076
Less early withdrawal penalties	(450		)	(546		)	(552		)
	$	52,485		$	51,054		$	58,524
Weighted average interest rate at end of year	0.50		%	0.48		%	0.51		%
Weighted daily average interest rate during the year	0.50		%	0.48		%	0.57		%

NOTE K - FHLB ADVANCES AND OTHER BORROWINGS

The table below shows the maturity dates of outstanding FHLB advances.

	September 30, 2016		September 30, 2015
	(In thousands)
FHLB advances
Within 1 year	$	200,000	$	250,000
1 to 3 years	880,000		750,000
4 to 5 years	700,000		430,000
More than 5 years	300,000		400,000
	$	2,080,000	$	1,830,000

There were no advances included in the above table which are callable by the FHLB.

Financial data pertaining to the weighted-average cost and the amount of FHLB advances were as follows.

	2016			2015			2014
	(In thousands)
Weighted average interest rate at end of year	3.15		%	3.35		%	3.52		%
Weighted daily average interest rate during the year	3.22		%	3.57		%	3.56		%
Daily average of FHLB advances during the year	$	1,992,434		$	1,848,904		$	1,955,205
Maximum amount of FHLB advances at any month end	$	2,080,000		$	1,930,000		$	2,205,000
Interest expense during the year (excludes interest rate swap expense)	$	64,058		$	64,331		$	68,307

On June 1, 2015, the FHLB of Seattle merged into the FHLB of Des Moines to create a larger, financially stronger, member-owned cooperative. The Bank has a credit line with the Federal Home Loan Bank of Des Moines ("FHLB") equal to 49.0% of total assets. The FHLB of Des Moines has assumed the Bank's advances with the FHLB of Seattle as of the merger date.

The Bank has entered into borrowing agreements with the FHLB to borrow funds under a short-term floating rate cash management advance program and a fixed-rate term loan agreements. All borrowings are secured by stock of the FHLB, deposits with the FHLB, and a blanket pledge of qualifying loans receivable as provided in the agreements with the FHLB.

59

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

As of September 30, 2016, 2015 and 2014, respectively, there were no reverse repurchase agreements or other borrowings. The Bank has historically entered into sales of reverse repurchase agreements which are an additional source of liquidity. Fixed-coupon reverse repurchase agreements have been treated as financings, and the obligations to repurchase securities sold have been reflected as a liability in the consolidated statements of financial condition in prior years.

NOTE L - INCOME TAXES

The table below provides a summary of the Company's tax assets and liabilities, including deferred tax assets and deferred tax liabilities by major source. Deferred tax balances represent temporary differences between the tax basis and the financial statement carrying amounts of assets and liabilities.

	September 30, 2016			September 30, 2015
	(In thousands)
Deferred tax assets
Loan loss reserves	$	45,531		$	43,749
REO reserves	4,018			11,213
Valuation adjustment on available-for-sale securities and cash flow hedges	6,482			—
Asset purchase tax basis difference (net)	—			5,973
Delinquent accrued interest	2,812			3,069
FDIC loss share guarantee receivable	9,598			7,803
Other, net	3,210			3,891
Total deferred tax assets	71,651			75,698
Deferred tax liabilities
Federal Home Loan Bank stock dividends	24,135			24,135
Valuation adjustment on available-for-sale securities and cash flow hedges	—			205
Asset purchase tax basis difference (net)	2,830
Loan origination costs	14,826			13,875
Depreciation	34,936			25,934
Total deferred tax liabilities	76,727			64,149
Net deferred tax asset (liability)	(5,076		)	11,549
Current tax asset	21,123			2,964
Net tax asset	$	16,047		$	14,513

The table below presents a reconciliation of the statutory federal income tax rate to the Company's effective income tax rate.

Year ended September 30,	2016		2015		2014
Statutory income tax rate	35	%	35	%	35	%
State income tax	1		2		2
Other differences	(2	)	(1	)	(1	)
Effective income tax rate	34	%	36	%	36	%

60

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

The following table summarizes the Company's income tax expense (benefit) for the respective periods.

Year ended September 30,	2016		2015			2014
	(In thousands)
Federal:
Current	$	57,173	$	79,841		$	70,797
Deferred	21,961		3,244			10,591
	79,134		83,085			81,388
State:
Current	$	3,600	$	6,636		$	4,987
Deferred	1,351		(518		)	1,189
	4,951		6,118			6,176
Total
Current	60,773		86,477			75,784
Deferred	23,312		2,726			11,780
	$	84,085	$	89,203		$	87,564

Based on current information the Company does not expect that changes in the amount of unrecognized tax benefits over the next twelve months will have a significant impact on its results of operations or financial position. The Company's liability for uncertain tax positions was $105,000 as of September 30, 2016 and $110,000 as of September 30, 2015. These amounts, if recognized, would affect the Company's effective tax rate. The Company records interest and penalties related to uncertain tax positions in income tax expense.

The Company's federal income tax returns are open for the tax years 2013 forward. The Company has been examined by the Internal Revenue Service through the year ended September 30, 2012.

State income tax returns are generally subject to examination for a period of three to five years after filing of the respective return. The state impact of any federal changes remains subject to examination by various states for a period of up to two years after formal notification to the states. The Company's unrecognized tax benefits are related to state tax returns open from 2013 through 2016.

NOTE M - 401(k) AND EMPLOYEE STOCK OWNERSHIP PLAN

The Company maintains a 401(k) and Employee Stock Ownership Plan (the "Plan") for the benefit of its employees. Company contributions are made annually as approved by the Board of Directors. Such amounts are not in excess of amounts permitted by the Employee Retirement Income Security Act of 1974.

Plan participants may make voluntary after-tax contributions of their considered earnings as defined by the Plan. In addition, participants may make pre-tax contributions up to the statutory limits through the 401(k) provisions of the Plan. The annual addition from contributions to an individual participant's account in this Plan cannot exceed the lesser of 100% of base salary or $53,000.

Effective January 1, 2016, new employees become eligible to participate in the Plan upon completion of one year of service. Such eligible employees become a participant in the Plan on the first day of the calendar quarter (January 1, April 1, July 1 or October

61

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

1) coincident with or following the completion of the one year of service requirement. The Plan defines “year of service” as a 12-month period in which the eligible employee works at least 1,000 hours of service and the first eligibility service period starts on the first day of employment. After the first 12-month eligibility service period, if the Plan needs to measure another eligibility service period (e.g., if the employee does not complete 1,000 hours of service in the first 12-month period), the Plan will measure the eligibility service period on a Plan Year basis.

Effective January 1, 2014, the Company added a guaranteed safe harbor matching contribution component to the plan equal to 100% of the first 4% of compensation that employee's contribute to their account. In addition to the new match being guaranteed, all safe harbor matching contributions are immediately vested. The new match is not subject to the 6 year vesting schedule of the current profit sharing contribution. This provides plan participants more investment flexibility. The Company anticipates that all eligible employees, regardless of personal plan participation, will continue to receive an annual discretionary profit sharing contribution from the Company, now capped at 7% of eligible compensation with this change.

Company contributions to the Plan amounted to $7,600,000, $8,700,000 and $7,314,000 for the years ended 2016, 2015 and 2014, respectively.

NOTE N - STOCK AWARD PLANS

The Company's stock based compensation plan ('2011 Incentive Plan') provides for grants of stock options and restricted stock. Stockholders authorized 5,000,000 shares of common stock to be reserved pursuant to the 2011 Incentive Plan and 3,348,400 shares remain available for issuance as of September 30, 2016.

When applicable, stock options are granted with an exercise price equal to the market price of the Company's stock at the date of grant; those option awards generally vest based on 5 years of continuous service and have 10-year contractual terms. The Company's policy is to issue new shares upon option exercises. The fair value of stock options granted is estimated on the date of grant using the Black-Scholes option-pricing model. This model requires input of highly subjective assumptions, changes to which can materially affect the fair value estimate. Additionally, there may be other factors that would otherwise have a significant effect on the value of employee stock options granted but are not considered by the model. Expected volatility is based on the historical volatility of the Company's stock. The risk-free interest rate is based on the U.S. Treasury yield curve that is in effect at the time of grant with a remaining term equal to the options' expected life. The expected term represents the period of time that options granted are expected to be outstanding.

Stock Option Awards:

There were no stock options granted under the 2011 Incentive Plan during 2016, 2015 and 2014.

A summary of stock option activity and changes during the year are as follows.

Options	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value (In thousands)
Outstanding at September 30, 2015	1,027,374		$	21.64	3	$1,867
Granted	—		—
Exercised	(438,456	)	21.51
Forfeited	(129,475	)	22.32
Outstanding at September 30, 2016	459,443		$	21.47	2	$	2,392
Exercisable at September 30, 2016	459,443		$	21.47	2	$	2,392

The table below presents other information regarding stock options.

62

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

Year ended September 30,	2016		2015		2014
	(In thousands, except fair value of options granted)
Compensation cost for stock options	$	89	$	232	$	324
Weighted average grant date fair value per stock option	2.73		2.96		2.95
Total intrinsic value of options exercised	1,651		831		1,136
Grant date FV of options exercised	1,422		368		1,962
Cash received from option exercises	9,283		2,069		10,142
Tax benefit realized for option exercises	—		—		159

63

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

The following is a summary of activity related to non-vested stock options.

Year ended September 30,	2016				2015				2014
Non-vested Stock Options	Options Outstanding		Weighted Average Grant Date Fair Value		Options Outstanding		Weighted Average Grant Date Fair Value		Options Outstanding		Weighted Average Grant Date Fair Value
Outstanding at beginning of period	69,287		$	3.85	145,795		$	3.87	287,750		$	3.44
Granted	—		—		—		—		—		—
Vested	(62,227	)	3.91		(61,018	)	3.88		(119,520	)	2.88
Forfeited	(7,060	)	3.89		(15,490	)	3.90		(22,435	)	3.63
Outstanding at end of period	—		$	—	69,287		$	3.85	145,795		$	3.87

As of September 30, 2016, there was no remaining unrecognized compensation cost for stock options.

Restricted Stock Awards:

The Company grants shares of restricted stock pursuant to the 2011 Incentive Plan. The restricted stock grants are subject to a service condition and vest over a period of one to seven years.

Certain grants of restricted stock to executive officers are also subject to additional performance conditions based upon meeting certain total shareholder return targets pre-established by the Board. The Company had a total of 490,363 shares of restricted stock outstanding as of September 30, 2016, with a fair market value at the date of grant of $7,845,808.

The following table summarizes information about nonvested restricted stock activity.

Year ended September 30,	2016				2015				2014
Non-vested Restricted Stock	Outstanding		Weighted Average Fair Value		Outstanding		Weighted Average Fair Value		Outstanding		Weighted Average Fair Value
Outstanding at beginning of period	521,302		$	15.03	515,845		$	14.10	480,904		$	11.52
Granted	229,450		17.20		301,750		$	14.26	300,500		15.43
Vested	(165,965	)	15.96		(223,043	)	13.24		(202,014	)	11.68
Forfeited	(94,424	)	13.64		(73,250	)	10.72		(63,545	)	8.50
Outstanding at end of period	490,363		$	16.00	521,302		$	15.03	515,845		$	14.10

Compensation expense related to restricted stock awards was $3,357,108, $3,271,564, and $3,085,081 for the years ended 2016, 2015 and 2014, respectively.

NOTE O - STOCKHOLDERS' EQUITY

The Company and the Bank are subject to various regulatory capital requirements. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the following table) of Common Equity Tier 1, Tier 1 and Total capital to risk weighted assets (as defined in the regulations) and Tier 1 capital to average assets (as defined in the regulations). Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary action by regulators that, if undertaken, could have a direct material effect on the Company's financial statements. The Company and the Bank are also subject to certain restrictions on the amount of dividends that they may declare without prior regulatory approval.

64

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

As of September 30, 2016 and 2015, the Company and the Bank met all capital adequacy requirements to which they are subject, and the OCC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum Common Equity Tier 1, Tier 1 risk-based, Total risk-based and Tier 1 leverage ratios as set forth in the following table. The Bank's actual capital amounts and ratios as of these dates are also presented. There are no conditions or events since that management believes have changed the Bank's categorization.

	Actual				Capital Adequacy Guidelines		Categorized as Well Capitalized Under Prompt Corrective Action Provisions
	Capital		Ratio		Ratio		Ratio
September 30, 2016	(In thousands)
Common Equity Tier 1 risk-based capital ratio:
The Company	$	1,690,380	17.54	%	4.50	%	NA
The Bank	1,668,828		17.32		4.50		6.50	%
Tier 1 risk-based capital ratio:
The Company	1,690,380		17.54		6.00		NA
The Bank	1,668,828		17.32		6.00		8.00
Total risk-based capital ratio:
The Company	1,807,740		18.76		8.00		NA
The Bank	1,786,188		18.54		8.00		10.00
Tier 1 leverage ratio:
The Company	1,690,380		11.60		4.00		NA
The Bank	1,668,828		11.45		4.00		5.00
September 30, 2015
Common Equity Tier 1 risk-based capital ratio:
The Company	$	1,658,985	18.81	%	4.50	%	NA
The Bank	1,652,569		18.73		4.50		6.50	%
Tier 1 risk-based capital ratio:
The Company	1,658,985		18.81		6.00		NA
The Bank	1,652,569		18.73		6.00		8.00
Total risk-based capital ratio:
The Company	1,769,587		20.07		8.00		NA
The Bank	1,763,171		19.98		8.00		10.00
Tier 1 leverage ratio:
The Company	1,658,985		11.71		4.00		N/A
The Bank	1,652,569		11.66		4.00		5.00

At periodic intervals, the Federal Reserve, the OCC and the FDIC routinely examine the Company's and the Bank's financial statements as part of their oversight. Based on their examinations, these regulators can direct that the Company's or Bank's financial statements be adjusted in accordance with their findings.

The federal banking agencies released new regulatory capital rules which became effective on January 1, 2015. These new rules raised the minimum capital ratios and established new criteria for regulatory capital. Minimum capital ratios for four measures are now established for capital adequacy purposes as indicated in the table above. The Common Equity Tier 1 capital ratio is

65

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

new; it recognizes common equity as the highest form of capital. The denominator for all except the leverage ratio is risk weighted assets. The new rules also set forth a "capital conversation buffer" of up to 2.5%. In the event that a bank's capital levels fall below the minimum ratios plus these buffers, restrictions can be placed on the bank by its regulators. These restrictions include reducing dividend payments, share-backs and staff bonus payments. The purpose of these buffers is to require banks to build up capital outside of periods of stress that can be drawn down during periods of stress. As a result, even during periods where losses are incurred, the minimum capital ratios can still be met. The new capital rules detail a phase-in period for the new minimum ratios and the capital buffers before the full minimum ratios take effect in 2019. The Company has calculated its capital ratios using the new rules since March 31, 2015 and the change did not have a material impact on its consolidated financial statements. There are also new standards for Adequate and Well Capitalized criteria that are used for "Prompt Corrective Action" purposes. To remain categorized as well capitalized, the Bank must maintain minimum Common Equity Tier 1 risk-based, Tier 1 risk-based, Total risk-based and Tier 1 leverage ratios as set forth in the above table. These rules are further described in the 10-K report under "Washington Federal, National Association (Bank) - Regulatory Capital Requirements". Both the Company and the Bank have sufficient capital to meet these new rules.

The Company and the Bank are subject to regulatory restrictions on paying dividends.

The Company has an ongoing stock repurchase program and 3,867,563 shares were repurchased during 2016 at a weighted average price of $22.72. In 2015, 5,841,204 shares were repurchased at a weighted average price of $21.70. As of September 30, 2016, Management had authorization from the Board of Directors to repurchase up to 5,039,310 additional shares.

In connection with the 2008 Troubled Asset Relief Program ("TARP"), the Company issued 1,707,456 warrants to purchase common stock at an exercise price of $17.57. In September 2016, the Company repurchased 892,240 of these warrants with a value of $7,718,158. Warrants remaining outstanding were 808,616 as of September 30, 2016 and 1,700,856 as of September 30, 2015, and they have an expiration date of November 14, 2018. The outstanding warrants are considered in the calculation of diluted shares outstanding using the treasury stock method.

The following table sets forth information regarding earnings per share calculations.

Year ended September 30,	2016		2015		2014
Weighted average shares outstanding	91,399,038		95,644,639		101,154,030
Weighted average dilutive warrants	440,366		340,016		352,171
Weighted average dilutive options	73,514		69,304		84,150
Weighted average diluted shares	91,912,918		96,053,959		101,590,351
Net income (In thousands)	$	164,049	$	160,316	$	157,364
Basic EPS	$	1.79	$	1.68	$	1.56
Diluted EPS	1.78		1.67		1.55

NOTE P - FINANCIAL INFORMATION – WASHINGTON FEDERAL, INC.

The following Washington Federal, Inc. (parent company only) financial information should be read in conjunction with the other notes to the Consolidated Financial Statements.

66

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

Condensed Statements of Financial Condition
	September 30, 2016		September 30, 2015
	(In thousands)
Assets
Cash	$	24,300	$	7,628
Other assets	15		—
Investment in subsidiary	1,954,179		1,949,262
Total assets	$	1,978,494	$	1,956,890
Liabilities
Other liabilities	$	2,763	$	1,211
Total liabilities	2,763		1,211
Stockholders’ equity
Total stockholders’ equity	1,975,731		1,955,679
Total liabilities and stockholders’ equity	$	1,978,494	$	1,956,890

Condensed Statements of Operations
Twelve Months Ended September 30,	2016		2015			2014
	(In thousands)
Income
Dividends from subsidiary	$	148,000	$	175,000		$	70,000
Total Income	148,000		175,000			70,000
Expense
Miscellaneous	435		439			485
Total expense	435		439			485
Net income (loss) before equity in undistributed net income (loss) of subsidiary	147,565		174,561			69,515
Equity in undistributed net income of subsidiary	16,336		(14,402		)	87,675
Income before income taxes	163,901		160,159			157,190
Income tax benefit (expense)	148		157			174
Net income	$	164,049	$	160,316		$	157,364

67

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

Condensed Statements of Cash Flows
Twelve Months Ended September 30,	2016			2015			2014
	(In thousands)
Cash Flows From Operating Activities
Net income	$	164,049		$	160,316		$	157,364
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiaries	(12,677		)	32,375			(87,943		)
Decrease (increase) in other assets	(15		)	—			1
Increase in other liabilities	1,552			(13,189		)	4,152
Net cash provided by (used in) operating activities	152,909			179,502			73,574
Cash Flows From Financing Activities
Proceeds from exercise of common stock options and related tax benefit	9,283			2,070			10,252
Warrants purchased	(7,744		)	—			—
Treasury stock purchased	(87,850		)	(126,728		)	(104,291		)
Dividends paid on common stock	(49,926		)	(51,111		)	(42,065		)
Net cash provided by (used in) financing activities	(136,237		)	(175,769		)	(136,104		)
Increase (decrease) in cash	16,672			3,733			(62,530		)
Cash at beginning of year	7,628			3,895			66,425
Cash at end of year	$	24,300		$	7,628		$	3,895

NOTE Q - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

The following is a summary of the unaudited interim results of operations by quarter for the years presented.

Twelve Months Ended September 30, 2016	First Quarter		Second Quarter			Third Quarter			Fourth Quarter
	(In thousands, except per share data)
Interest income	$	135,124	$	135,063		$	133,735		$	132,872
Interest expense	28,255		28,738			29,495			30,056
Net interest income	106,869		106,325			104,240			102,816
Provision (release) for loan losses	—		(1,500		)	(1,650		)	(3,100		)
Other operating income (including REO gain (loss), net)	12,055		14,623			15,573			14,830
Other operating expense	64,509		59,226			56,305			55,407
Income before income taxes	54,415		63,222			65,158			65,339
Income tax expense	19,317		21,499			22,154			21,115
Net income	$	35,098	$	41,723		$	43,004		$	44,224
Basic earnings per share	$	0.38	$	0.45		$	0.47		$	0.49
Diluted earnings per share	0.38		0.45			0.47			0.49
Cash dividends paid per share	0.13		0.14			0.14			0.14

68

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2016, 2015 AND 2014

Twelve Months Ended September 30, 2015	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
	(In thousands, except per share data)
Interest income	$	132,741		$	132,630		$	129,300		$	135,339
Interest expense	30,558			28,750			28,735			28,486
Net interest income	102,183			103,880			100,565			106,853
Provision (release) for loan losses	(5,500		)	(3,949		)	(1,932		)	219
Other operating income (REO expense)	5,695			12,314			14,999			16,719
Other operating expense	53,600			57,324			56,719			57,208
Income before income taxes	59,778			62,819			60,777			66,145
Income tax expense	21,371			22,458			21,727			23,647
Net income	$	38,407		$	40,361		$	39,050		$	42,498
Basic earnings per share	$	0.39		$	0.42		$	0.41		$	0.46
Diluted earnings per share	0.39			0.42			0.41			0.45
Cash dividends paid per share	0.15			0.13			0.13			0.13

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

The management of Washington Federal, Inc. (the "Company") is responsible for establishing and maintaining adequate internal control over financial reporting. The Company's internal control system was designed to provide reasonable assurance to the Company's management and Board of Directors regarding the preparation and fair presentation of published financial statements.

The Company's management assessed the effectiveness of the Company's internal control over financial reporting as of September 30, 2016. In making this assessment, the Company's management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in the 2013 version of its Internal Control-Integrated Framework. Based on its assessment, the Company's management believes that as of September 30, 2016, the Company's internal control over financial reporting was effective based on those criteria.

The Company's independent auditors, Deloitte & Touche LLP, an independent registered public accounting firm, have issued an audit report on the Company's internal control over financial reporting and their report follows.

November 21, 2016

Roy M. Whitehead

Chairman of the Board and Chief Executive Officer

Vincent L. Beatty

Senior Vice President and Chief Financial Officer

69

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

Washington Federal, Inc.

Seattle, Washington

We have audited the accompanying consolidated statements of financial condition of Washington Federal, Inc. and subsidiaries (the “Company”) as of September 30, 2016 and 2015, and the related consolidated statements of operations, comprehensive income, stockholders' equity, and cash flows for each of the three years in the period ended September 30, 2016. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such consolidated financial statements present fairly, in all material respects, the consolidated financial position of Washington Federal, Inc. and subsidiaries as of September 30, 2016 and 2015, and the results of their operations and their cash flows for each of the three years in the period ended September 30, 2016, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company's internal control over financial reporting as of September 30, 2016, based on the criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated November 21, 2016 expressed an unqualified opinion on the Company's internal control over financial reporting.

Seattle, Washington

November 21, 2016

70

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

Washington Federal, Inc.

Seattle, Washington

We have audited the internal control over financial reporting of Washington Federal, Inc. and subsidiaries (the “Company”) as of September 30, 2016, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Because management’s assessment and our audit were conducted to meet the reporting requirements of Section 112 of the Federal Deposit Insurance Corporation Improvement Act (FDICIA), management’s assertion and our audit of the Company’s internal control over financial reporting included controls over the preparation of the schedules equivalent to the basic financial statements in accordance with the instructions for the Office of the Comptroller of the Currency Instructions for Call Reports for Balance Sheet on schedule RC, Income Statement on schedule RI, and Changes in Bank Equity Capital on schedule RI-A. The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management Report’s on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company's internal control over financial reporting is a process designed by, or under the supervision of, the company's principal executive and principal financial officers, or persons performing similar functions, and effected by the company's board of directors, management, and other personnel 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. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of September 30, 2016, based on the criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements as of and for the year ended September 30, 2016, of the Company and our report dated November 21, 2016, expressed an unqualified opinion on those consolidated financial statements.

Seattle, Washington

November 21, 2016

71

Performance Graphs

The following graphs compare the cumulative total return to Washington Federal stockholders (stock price appreciation plus reinvested dividends) to the cumulative total return of the Nasdaq Stock Market Index (U.S. Companies) and the Nasdaq Financial Stocks Index for the five year period ended September 30, 2016 and since Washington Federal first became a publicly traded company on November 9, 1982, respectively. The graphs assume that $100 was invested on September 30, 2011 and November 9, 1982, respectively, in Washington Federal Common Stock, the Nasdaq Stock Market Index and the Nasdaq Financial Stocks Index, and that all dividends were reinvested. Management of Washington Federal cautions that the stock price performance shown in the graphs below should not be considered indicative of potential future stock price performance.

72

73

GENERAL CORPORATE AND

STOCKHOLDERS' INFORMATION

Corporate 425 Pike Street

Headquarters Seattle, Washington 98101

(206) 624-7930

Independent Deloitte & Touche LLP

Auditors Seattle, Washington

Transfer Agent, Stockholder inquiries regarding transfer

Registrar and requirements, cash or stock dividends, lost

Dividend certificates, consolidating records, correcting

Disbursing a name or changing an address should be

Agent directed to the transfer agent:

American Stock Transfer & Trust Company

59 Maiden Lane

Plaza Level

New York, NY 10038

Telephone: 1-888-888-0315

www.amstock.com

Annual Meeting The annual meeting of stockholders will be     held at the Sheraton Hotel in downtown Seattle on January 18, 2017, at 2 p.m., Pacific Time.

Form 10-K To find out more about the Company, please visit our website. The Company uses its website to distribute financial and other material information about the Company. This report and all SEC filings of the Company are available through the Company's website:

www.washingtonfederal.com

Stock

Information Washington Federal, Inc. is traded on the NASDAQ Global Select Market. The common stock symbol is WAFD. At September 30, 2016, there were approximately 1,400 stockholders of record.

	Stock Prices
Quarter Ended	High		Low		Dividends
December 31, 2014	$	22.49	$	19.67	$	0.15
March 31, 2015	22.14		19.86		0.13
June 30, 2015	24.16		21.46		0.13
September 30, 2015	23.93		21.39		0.13
December 31, 2015	26.05		22.61		0.13
March 31, 2016	23.23		19.87		0.14
June 30, 2016	25.22		21.79		0.14
September 30, 2016	26.98		23.73		0.14

Our Board of Directors' dividend policy is to review our financial performance, capital adequacy, regulatory compliance and cash resources on a quarterly basis, and, if such review is favorable, to declare and pay a cash dividend to shareholders.

74

DIRECTORS AND EXECUTIVE OFFICERS

BOARD OF DIRECTORS	EXECUTIVE MANAGEMENT COMMITTEE
ROY M. WHITEHEAD Chairman of the Board and Chief Executive Officer	ROY M. WHITEHEAD Chairman of the Board and Chief Executive Officer
DAVID K. GRANT Managing Partner of Catalyst Storage Partners. Former Chief Executive Officer of Shurgard Storage Centers, Inc.	BRENT J. BEARDALL President and Chief Banking Officer
ANNA C. JOHNSON Senior Partner Scan East West Travel	VINCENT L. BEATTY Senior Vice President Chief Financial Officer
THOMAS J. KELLEY Retired Partner, Arthur Andersen LLP	CATHY E. COOPER Executive Vice President Retail Banking Group Manager
ERIN N. LANTZ Vice President and General Manager, Zillow Group	MARK A. SCHOONOVER Executive Vice President Chief Credit Officer
BARBARA L. SMITH, PhD. Owner, B. Smith Consulting Group
MARK N. TABBUTT Chairman of Saltchuk Resources
RANDALL H. TALBOT Managing Director of Talbot Financial, LLC. Former President, Chief Executive Officer and Director of Symetra Financial Corporation, Inc.
DIRECTOR EMERITUS
W. ALDEN HARRIS

75

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Registration Statement Nos. 333-161897 and 333-156097 on Form S-3 and Registration Statement Nos. 333-20191, 333-51143, 333-46588, 333-81242, 333-119329, and 333-185154 on Form S-8 of our reports dated November 21, 2016, relating to the consolidated financial statements of Washington Federal, Inc., and the effectiveness of Washington Federal, Inc.’s internal control over financial reporting, appearing in this Annual Report on Form 10-K of Washington Federal, Inc. for the year ended September 30, 2016.

/s/ Deloitte & Touche LLP

Seattle, Washington

November 21, 2016

EX-31.1

Exhibit 31.1

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CERTIFICATION

I, Roy M. Whitehead, certify that:

1. I have reviewed this annual report on Form 10-K 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 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 report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) 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:	November 21, 2016	/s/ Roy M. Whitehead
		ROY M. WHITEHEAD Chairman of the Board and Chief Executive Officer

EX-31.2

Exhibit 31.2

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CERTIFICATION

I, Vincent L. Beatty, certify that:

1. I have reviewed this annual report on Form 10-K 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 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 report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) 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:	November 21, 2016	/s/ Vincent L. Beatty
		VINCENT L. BEATTY
		Senior Vice President and Chief Financial Officer

EX-32

Exhibit 32

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Washington Federal, Inc. (the “Company”) on Form 10-K for the period ended September 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the undersigned's best knowledge and belief:

(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.

Date: November 21, 2016

Washington Federal, Inc.

(Company)

/s/ Roy M. Whitehead

ROY M. WHITEHEAD

Chairman of the Board and Chief Executive Officer

/s/ Vincent L. Beatty

VINCENT L. BEATTY

Senior Vice President and Chief Financial Officer

XML

Document and Entity Information - USD ($)	12 Months Ended
	Sep. 30, 2016	Nov. 17, 2016	Mar. 31, 2016
Document and Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY
Trading Symbol	WAFD
Entity Registrant Name	WASHINGTON FEDERAL INC
Entity Central Index Key	0000936528
Current Fiscal Year End Date	--09-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		89,081,623
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 2,044,610,449

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Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015
ASSETS
Cash and cash equivalents	$ 450,368	$ 284,049
Available-for-sale securities, at fair value	1,922,894	2,380,563
Held-to-maturity securities, at amortized cost	1,417,599	1,643,216
Loans receivable, net of allowance for loan losses of $113,494 and $106,829	9,910,920	9,170,634
Interest receivable	37,669	40,429
Premises and equipment, net	281,951	276,247
Real estate owned	29,027	61,098
FHLB & FRB stock	117,205	107,198
Bank owned life insurance	208,123	102,496
Intangible assets, including goodwill of $291,503	296,989	299,358
Federal and state income tax assets, net	16,047	14,513
Other assets	199,271	188,523
Total assets	14,888,063	14,568,324
Customer accounts
Transaction deposit accounts	6,005,592	5,820,878
Time deposit accounts	4,595,260	4,810,825
Customer accounts	10,600,852	10,631,703
FHLB advances	2,080,000	1,830,000
Advance payments by borrowers for taxes and insurance	42,898	50,224
Accrued expenses and other liabilities	188,582	100,718
Total liabilities	12,912,332	12,612,645
Stockholders’ equity
Common stock, $1.00 par value, 300,000,000 shares authorized; 134,307,818 and 133,695,803 shares issued; 89,680,847 and 92,936,395 shares outstanding	134,308	133,696
Paid-in capital	1,648,388	1,643,712
Accumulated other comprehensive income (loss), net of taxes	(11,156)	353
Treasury stock, at cost; 44,626,971 and 40,759,408 shares	(739,686)	(651,836)
Retained earnings	943,877	829,754
Total stockholders’ equity	1,975,731	1,955,679
Total liabilities and stockholders’ equity	$ 14,888,063	$ 14,568,324

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Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015
Statement of Financial Position [Abstract]
Allowance for probable losses	$ 113,494	$ 106,829
Goodwill	$ 291,503	$ 291,503
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Common stock, shares authorized (in shares)	300,000,000	300,000,000
Common stock, shares issued (in shares)	134,307,818	133,695,803
Common stock, shares outstanding (in shares)	89,680,847	92,936,395
Treasury stock, shares (in shares)	44,626,971	40,759,408

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Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
INTEREST INCOME
Loans receivable	$ 454,085	$ 437,002	$ 430,850
Mortgage-backed securities	62,949	71,392	80,260
Investment securities and cash equivalents	19,759	22,159	22,587
Total Income	536,793	530,553	533,697
INTEREST EXPENSE
Customer accounts	52,485	51,054	58,524
FHLB advances and other borrowings	64,059	66,018	69,553
Interest expense	116,544	117,072	128,077
Net interest income	420,249	413,481	405,620
Provision (release) for loan losses	(6,250)	(11,162)	(15,401)
Net interest income after provision (release) for loan losses	426,499	424,643	421,021
OTHER INCOME
Gain on sale of investment securities	0	9,641	0
Prepayment penalty on long-term debt	0	(10,554)	0
Loan fee income	5,548	8,788	7,706
Deposit fee income	21,738	22,459	14,306
Other income	19,750	10,089	8,647
Noninterest income	47,036	40,423	30,659
OTHER EXPENSE
Compensation and benefits	112,884	119,939	109,730
Occupancy	33,568	33,956	30,452
FDIC insurance premiums	11,824	7,916	11,009
Product delivery	17,060	22,325	14,973
Information technology	30,982	15,976	14,303
Other expense	29,129	24,739	23,542
Noninterest expense	235,447	224,851	204,009
Gain (loss) on real estate owned, net	10,046	9,304	(2,743)
Income before income taxes	248,134	249,519	244,928
Income tax expense
Current	60,773	86,477	75,784
Deferred	23,312	2,726	11,780
Income taxes	84,085	89,203	87,564
NET INCOME	$ 164,049	$ 160,316	$ 157,364
PER SHARE DATA
Basic earnings (in dollars per share)	$ 1.79	$ 1.68	$ 1.56
Diluted earnings (in dollars per share)	1.78	1.67	1.55
Dividends paid on common stock per share (in dollars per share)	$ 0.55	$ 0.54	$ 0.41
Basic weighted average number of shares outstanding (in shares)	91,399,038	95,644,639	101,154,030
Diluted weighted average number of shares outstanding, including dilutive stock options (in shares)	91,912,918	96,053,959	101,590,351

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 164,049	$ 160,316	$ 157,364
Other comprehensive income (loss) net of tax:
Net unrealized gains (losses) on available-for-sale securities	(1,403)	(27,536)	22,924
Reclassification adjustment of net gains from sale of available-for-sale securities included in net income	0	9,641	0
Related tax benefit (expense)	516	6,577	(8,425)
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent	(887)	(11,318)	14,499
Net unrealized gain (loss) on long-term borrowing hedges	(16,793)	(14,287)	(268)
Related tax benefit (expense)	6,171	5,250	99
Derivatives qualifying as hedges, net of tax, portion attributable to parent	(10,622)	(9,037)	(169)
Other comprehensive income (loss)	(11,509)	(20,355)	14,330
Comprehensive income	$ 152,540	$ 139,961	$ 171,694

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Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Balance, Beginning of period at Sep. 30, 2013	$ 1,937,635	$ 132,573	$ 1,625,051	$ 594,450	$ 6,378	$ (420,817)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	157,364			157,364
Other comprehensive income (loss)	14,330				14,330
Dividends on common stock	(45,665)			(45,665)
Compensation expense related to common stock options	324		324
Proceeds from exercise of common stock options	10,142	501	9,641
Restricted stock expense	3,444	249	3,195
Treasury stock purchased	(104,291)					(104,291)
Balance, End of period at Sep. 30, 2014	1,973,283	133,323	1,638,211	706,149	20,708	(525,108)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	160,316			160,316
Other comprehensive income (loss)	(20,355)				(20,355)
Dividends on common stock	(36,711)			(36,711)
Compensation expense related to common stock options	231		231
Proceeds from exercise of common stock options	2,070	129	1,941
Restricted stock expense	3,573	244	3,329
Treasury stock purchased	(126,728)					(126,728)
Balance, End of period at Sep. 30, 2015	1,955,679	133,696	1,643,712	829,754	353	(651,836)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	164,049			164,049
Other comprehensive income (loss)	(11,509)				(11,509)
Dividends on common stock	(49,926)			(49,926)
Compensation expense related to common stock options	90		90
Proceeds from exercise of common stock options	9,283	433	8,850
Restricted stock expense	3,659	179	3,480
Repurchase of stock warrants	(7,744)		(7,744)
Treasury stock purchased	(87,850)					(87,850)
Balance, End of period at Sep. 30, 2016	$ 1,975,731	$ 134,308	$ 1,648,388	$ 943,877	$ (11,156)	$ (739,686)

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Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 164,049,000	$ 160,316,000	$ 157,364,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, accretion and restricted stock expense	22,988,000	21,217,000	17,347,000
Cash received from (paid to) FDIC under loss share	1,730,000	720,000	2,502,000
Stock option compensation expense	90,000	231,000	324,000
Provision (release) for loan losses	(6,250,000)	(11,162,000)	(15,401,000)
Loss (gain) on sale of investment securities and real estate owned, net	(16,476,000)	(28,527,000)	(2,510,000)
Loss on extinguishment of debt	0	10,554,000	0
Decrease (increase) in accrued interest receivable	2,760,000	11,608,000	(2,819,000)
Decrease (increase) in FDIC loss share receivable	0	1,795,000	(1,795,000)
Decrease (increase) in federal and state income tax receivable	5,153,000	13,829,000	18,890,000
Decrease (increase) in cash surrender value of bank owned life insurance	(5,627,000)	(2,496,000)	0
Gain (Loss) on Disposition of Property Plant Equipment	(3,563,000)	0	0
Decrease (increase) in other assets	(14,204,000)	(29,220,000)	(17,799,000)
Increase (decrease) in accrued expenses and other liabilities	71,071,000	(5,994,000)	17,612,000
Net cash provided (used) by operating activities	221,721,000	142,871,000	173,715,000
CASH FLOWS FROM INVESTING ACTIVITIES
Origination of loans and principal repayments, net	(622,884,000)	(554,350,000)	(261,401,000)
Loans purchased	(105,420,000)	(279,936,000)	(218,544,000)
FHLB & FRB stock purchase	(36,347,000)	(4,067,000)	0
FHLB & FRB stock redeemed	26,340,000	55,708,000	14,017,000
Available-for-sale securities purchased	(137,591,000)	(315,114,000)	(1,280,477,000)
Principal payments and maturities of available-for-sale securities	537,255,000	721,951,000	609,395,000
Proceeds from sales of available-for-sale investment securities	50,741,000	246,826,000	0
Held-to-maturity securities purchased	0	(259,489,000)	0
Principal payments and maturities of held-to-maturity securities	218,958,000	159,947,000	103,617,000
Net cash received from mergers and acquisitions	0	0	1,776,660,000
Proceeds from sales of real estate owned	61,132,000	74,895,000	89,549,000
Purchase of bank owned life insurance	(100,000,000)	(100,000,000)	0
Proceeds from Sale of Property, Plant, and Equipment	14,685,000	0	0
Premises and equipment purchased and REO improvements	(37,933,000)	(36,860,000)	(51,794,000)
Net cash provided (used) by investing activities	(131,064,000)	(290,489,000)	781,022,000
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in customer accounts	(30,775,000)	(85,073,000)	(226,914,000)
Proceeds from borrowings	1,118,000,000	100,000,000	0
Repayments of borrowings	(868,000,000)	(210,554,000)	0
Proceeds from exercise of common stock options and related tax benefit	9,283,000	2,070,000	10,252,000
Dividends paid on common stock	(49,926,000)	(51,111,000)	(42,065,000)
Repurchase of warrants	(7,744,000)	0	0
Treasury stock purchased	(87,850,000)	(126,728,000)	(104,291,000)
Increase (decrease) in advance payments by borrowers for taxes and insurance	(7,326,000)	21,220,000	(13,439,000)
Net cash provided (used) by financing activities	75,662,000	(350,176,000)	(376,457,000)
Increase (decrease) in cash and cash equivalents	166,319,000	(497,794,000)	578,280,000
Cash and cash equivalents at beginning of year	284,049,000	781,843,000	203,563,000
Cash and cash equivalents at end of year	450,368,000	284,049,000	781,843,000
Non-cash investing activities
Real estate acquired through foreclosure	16,535,000	31,916,000	46,469,000
Cash paid during the year for
Interest	114,506,000	116,226,000	128,733,000
Income taxes	68,507,000	65,720,000	64,372,000
Summary of non-cash activities related to acquisitions
Fair value of assets and intangibles acquired, including goodwill	0	0	80,242,000
Fair value of liabilities assumed	0	0	(1,856,902,000)
Net fair value of acquired assets (liabilities)	$ 0	$ 0	$ (1,776,660,000)

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Summary of Significant Accounting Policies

12 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Company and nature of operations. Washington Federal, Inc. is a Washington corporation headquartered in Seattle, Washington. The Company is a bank holding company that conducts its operations through a national bank subsidiary, Washington Federal, National Association. The Bank is principally engaged in the business of attracting deposits from the general public and investing these funds, together with borrowings and other funds, in one-to-four family residential real estate loans, multi-family real estate loans and commercial loans. As used throughout this document, the terms "Washington Federal" or the "Company" refer to Washington Federal, Inc. and its consolidated subsidiaries and the term "Bank" refers to the operating subsidiary Washington Federal, National Association. The Bank conducts its activities through a network of 238 offices located in Washington, Oregon, Idaho, Utah, Arizona, Nevada, New Mexico, and Texas.

Basis of presentation and use of estimates. The Company’s accounting and financial reporting policies conform to accounting principles generally accepted in the United States of America (U.S. GAAP). Inter-company balances and transactions have been eliminated in consolidation. In preparing the consolidated financial statements, the Company makes estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and revenues and expenses during the reporting periods and related disclosures. The areas that require application of significant management judgments often result in the need to make estimates about the effect of matters that are inherently uncertain and may change in future periods. Actual results could differ materially from those estimates. In certain instances, amounts in text are presented by rounding to the nearest thousand.

The Company's fiscal year end is September 30th. All references to 2016, 2015 and 2014 represent balances as of September 30, 2016, September 30, 2015 and September 30, 2014, or activity for the fiscal years then ended.

Acquisitions. Certain Branches of Bank of America, National Association. During the 2014 fiscal year, the Bank acquired 74 branches from Bank of America, National Association. This included: effective as of the close of business on October 31, 2013, 11 branches located in New Mexico; effective as of the close of business on December 6, 2013, 40 branches located in Washington, Oregon, and Idaho; and effective as of the close of business on May 2, 2014, 23 branches located in Arizona and Nevada. The combined acquisitions provided $1.9 billion in deposit accounts, $13 million of loans, and $25 million in branch properties. The Bank paid a 1.99% premium on the total deposits and received $1.8 billion in cash from the transactions. The acquisition method of accounting was used to account for the acquisitions. The purchased assets and assumed liabilities are recorded at their respective acquisition date estimated fair values. The Bank recorded $11 million in core deposit intangible and $31 million in goodwill related to these transactions. The operating results of the Company include the operating results produced by the first 11 branches beginning November 1, 2013, for the additional 40 branches beginning December 7, 2013, and for the most recent 23 branches from May 3, 2014 forward.

Cash and cash equivalents. Cash and cash equivalents include cash on hand, amounts due from banks, overnight investments and repurchase agreements with an initial maturity of three months or less.

Investments and mortgage-backed securities. The Company accounts for investments and mortgage-backed securities in two categories: held-to-maturity and available-for-sale. Premiums and discounts on investments are deferred and recognized into income over the life of the asset using the effective interest method.

Held-to-maturity securities are accounted for at amortized cost, but the Company must have both the positive intent and the ability to hold those securities to maturity. There are very limited circumstances under which securities in the held-to-maturity category can be sold without jeopardizing the cost basis of accounting for the remainder of the securities in this category.

Available-for-sale securities are accounted for at fair value. Gains and losses realized on the sale of these securities are accounted for based on the specific identification method. Unrealized gains and losses for available-for-sale securities are excluded from earnings and reported net of the related tax effect in the accumulated other comprehensive income component of stockholders' equity.

Realized gains and losses on securities sold as well as other than temporary impairment charges, if any, are shown on the Consolidated Statements of Operations under the Other Income heading. Management evaluates debt and equity securities for other than temporary impairment on a quarterly basis based on the securities' current credit quality, market interest rates, term to maturity and management's intent and ability to hold the securities until the net book value is recovered.

Loans receivable. Loans that are performing in accordance with their contractual terms are carried at their amortized cost and expected interest is accrued. The Bank also receives fees for originating loans in addition to various fees and charges related to existing loans, which may include prepayment charges, late charges and assumption fees.

When a borrower fails to make a required payment on a loan, the Bank attempts to cure the deficiency by contacting the borrower. Contact is made after a payment is 30 days past its grace period. In most cases, deficiencies are cured promptly. If the delinquency is not cured within 90 days, the Bank may institute appropriate action to foreclose on the property. If foreclosed, the property is sold at a public sale and may be purchased by the Bank.

Restructured loans. The Bank will consider modifying the interest rates and terms of a loan if it determines that a modification is a better alternative to foreclosure. Most troubled debt restructured ("TDR") loans are accruing and performing loans where the borrower has proactively approached the Bank about modifications due to temporary financial difficulties. Each request is individually evaluated for merit and likelihood of success. The concession for these loans is typically a payment reduction through a rate reduction of 100 to 200 bps for a specific term, usually six to twelve months. Interest-only payments may also be approved during the modification period. Principal forgiveness is generally not an available option for restructured loans. Before granting approval to modify a loan in a TDR, the borrower’s ability to repay is evaluated, including: current income levels and debt to income ratio, borrower’s credit score, payment history of the loan, and updated evaluation of the secondary repayment source. The Bank also modifies some loans that are not classified as TDRs as the modification is due to a restructuring where the effective interest rate on the debt is reduced to reflect a decrease in market interest rates.

Non accrual loans. Loans are placed on nonaccrual status when, in the judgment of management, the probability of collection of interest is deemed to be insufficient to warrant further accrual. When a loan is placed on nonaccrual status, previously accrued but unpaid interest is deducted from interest income. The Bank does not accrue interest on loans 90 days or more past due. If payment is made on a loan so that the loan becomes less than 90 days past due, and the Bank expects full collection of principal and interest, the loan is returned to full accrual status. Any interest ultimately collected is credited to income in the period of recovery. A loan is charged-off when the loss is estimable and it is confirmed that the borrower is not expected be able to meet contractual obligations.

If a consumer loan is on non-accrual status before becoming a TDR it will stay on non-accrual status following restructuring until it has been performing for at least six months, at which point it may be moved to accrual status. If a loan is on accrual status before it becomes a TDR, and management concludes that full repayment is probable based on internal evaluation, it will remain on accrual status following restructuring. If the restructured consumer loan does not perform, it is placed on non-accrual status when it is 90 days delinquent. For commercial loans, six consecutive payments on newly restructured loan terms are required prior to returning the loan to accrual status. In some instances after the required six consecutive payments are made management will conclude that collection of the entire principal and interest due is still in doubt. In those instances, the loan will remain on non-accrual.

Impaired loans. Impaired loans consist of loans receivable that are not expected to have their principal and interest repaid in accordance with their contractual terms. This includes TDRs that are on non-accrual status. Collateral dependent impaired loans are measured using the fair value of the collateral less selling costs. Non-collateral dependent loans are measured at the present value of expected future cash flows.

Deferred fees and discounts on loans. Loan discounts and loan fees are deferred and recognized over the life of the loans using the effective interest method.

Allowance for loan losses. The Bank maintains an allowance for loan losses to absorb losses inherent in the loan portfolio. The allowance is based on ongoing, quarterly assessments of the probable and estimable losses inherent in the loan portfolio. The Bank's general methodology for assessing the appropriateness of the allowance is to apply a loss percentage factor to the different loan types. The loss percentage factor is made up of two parts - the historical loss factor (“HLF”) and the qualitative loss factor (“QLF”). The HLF takes into account historical charge-offs by loan type. The Bank uses an average of historical loss rates for each loan category multiplied by a loss emergence period. This is the likely period of time during which a residential or commercial loan borrower experiencing financial difficulties might deplete their cash prior to becoming delinquent on their loan, plus the period of time that it takes the bank to work out the loans. The QLF are based on management's continuing evaluation of the pertinent factors underlying the quality of the loan portfolio, including changes in the size and composition of the loan portfolio, actual loan loss experience, current economic conditions, collateral values, geographic concentrations, seasoning of the loan portfolio, specific industry conditions, and the duration of the current business cycle. These factors are considered by loan type.

Specific allowances are established for loans which are individually evaluated, in cases where management has identified significant conditions or circumstances related to a loan that management believes indicate the probability that a loss has been incurred. The Bank has also established a reserve for unfunded commitments.

The recovery of the carrying value of loans is susceptible to future market conditions beyond the Bank's control, which may result in losses or recoveries differing from those estimated.

Acquired credit impaired loans. Acquired credit impaired loans are accounted for under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 310-30 when there is evidence of credit deterioration since origination and for which it is probable, at acquisition, that the Company would be unable to collect all contractually required payments. Interest income, through accretion of the difference between the carrying amount of the loans and the expected cash flows, are recognized on all acquired loans.

Covered assets. Covered loans consist of single family loans acquired from Horizon Bank in 2010 and certain loans acquired from South Valley Bank and Trust ("SVBT") in fiscal 2013 that were originally recorded at their estimated fair value at the time acquired. Loans that were classified as non-performing loans by Horizon Bank and SVBT are no longer classified as non-performing because, at acquisition, the carrying value of these loans was adjusted to reflect fair value and are covered under the FDIC loss sharing agreements. Management believes that the book value reflects an amount that will ultimately be collected. Covered real estate held for sale represents the foreclosed properties that were originally Horizon Bank loans or certain SVBT loans. Covered real estate held for sale is carried at the estimated fair value of the repossessed real estate. The covered loans and covered real estate held for sale are collectively referred to as “covered assets." When FDIC loss share agreements expire, any remaining loans will be transferred to the non covered portfolio. Covered loans are included within loans receivable on the statement of financial condition. Covered real estate owned are included within real estate owned on the statement of financial condition.

FDIC indemnification asset. FDIC indemnification asset is the receivable recorded due to the guarantee provided by the FDIC on the covered assets. This asset declines due to collections from the FDIC on claims or the eventual expiration of the FDIC loss share agreements. The FDIC indemnification asset is included within other assets on the statement of financial condition.

Client derivatives. Interest rate swap agreements are provided to certain clients who desire to convert their obligations from variable to fixed interest rates. Under these agreements, the Bank enters into a variable-rate loan agreement with a customer in addition to a swap agreement, and then enters into a corresponding swap agreement with a third party in order to offset its exposure on the customer swap agreement. As the interest rate swap agreements with the customers and third parties are not designated as hedges under FASB ASC 815, Derivatives and Hedging, the instruments are marked to market in earnings. The change in fair value of the offsetting swaps are included in interest income and interest expense and there is no impact on net income. There is fee income earned on the swaps that is included in loan fee income.

Long term borrowing hedges. The Company has entered into interest rate swaps to convert a series of future short-term borrowings to fixed-rate payments. These interest rate swaps qualify as cash flow hedging instruments under ASC 815 so gains and losses are recorded in Other Comprehensive Income to the extent the hedge is effective. Gains and losses on the interest rate swaps are reclassified from OCI to earnings in the period the hedged transaction affects earnings and are included in the same income statement line item that the hedged transaction is recorded.

Commercial loan hedges. The Company has entered into interest rate swaps to hedge long term fixed rate commercial loans. These hedges qualify as fair value hedges under ASC 815 and provide for matching of the recognition of the gains and losses on the interest rate swap and the related hedged loan.

Premises and equipment. Premises and equipment are stated at cost, less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the respective assets. Expenditures are capitalized for betterments and major renewals. Charges for ordinary maintenance and repairs are expensed to operations as incurred.

Real estate owned. Real estate properties acquired through foreclosure of loans or through acquisitions are recorded initially at fair value less selling costs and are subsequent recorded at lower of cost or fair value. Any gains (losses) are shown on the real estate acquired through foreclosure line item.

Intangible assets. Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. The core deposit intangibles are acquired assets that lack physical substance but can be distinguished from goodwill. Goodwill is evaluated for impairment on an annual basis during the fourth quarter. Other intangible assets are amortized over their estimated lives and are subject to impairment testing when events or circumstances change. If circumstances indicate that the carrying value of the assets may not be recoverable, an impairment charge could be recorded. The Bank amortizes the core deposit intangibles over their estimated lives using an accelerated method.

The table below provides detail regarding the Company's intangible assets.

	Goodwill		Core Deposit Intangible			Total
	(In thousands)
Balance at September 30, 2014	$	291,503	$	11,406		$	302,909
Amortization	—		(3,551		)	(3,551		)
Balance at September 30, 2015	291,503		7,855			299,358
Amortization	—		(2,369		)	(2,369		)
Balance at September 30, 2016	$	291,503	$	5,486		$	296,989

The table below presents the estimated core deposit intangible asset amortization expense for the next five years.

Fiscal Year	Expense
	(In thousands)
2017	$	1,648
2018	1,204
2019	1,157
2020	1,157
2021	320

Income taxes. Income taxes are accounted for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, a deferred tax asset or liability is determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The provision for income taxes includes current and deferred income tax expense based on net income adjusted for temporary and permanent differences such as depreciation, interest on state and municipal securities, and affordable housing tax credits. Income tax related interest and penalties, if applicable, and amortization of affordable housing tax credit investments are recorded within income tax expense.

Accounting for stock-based compensation. We recognize in the statement of operations the grant-date fair value of stock options and other equity-based forms of compensation issued to employees over the employees' requisite service period (generally the vesting period). The requisite service period may be subject to performance conditions. Stock options and restricted stock awards generally vest ratably over three to ten years and are recognized as expense over that same period of time. The exercise price of each option equals the market price of the Company's common stock on the date of the grant, and the maximum term is ten years. No stock options were granted in 2016, 2015 or 2014.

Certain grants of restricted stock are subject to performance-based and market-based vesting as well as other approved vesting conditions and cliff vest based on those conditions. Compensation expense is recognized over the service period to the extent restricted stock awards are expected to vest. See Note N for additional information.

Business segments. As the Company manages its business and operations on a consolidated basis, management has determined that there is one reportable business segment.

Subsequent events. The Company has evaluated subsequent events for adjustment to or disclosure in the Company’s consolidated financial statements through the date of this report, and the Company has not identified any recordable or disclosable events, not otherwise reported in these consolidated financial statements or the notes thereto, except for the following:

The Company paid its 135th consecutive quarterly cash dividend totaling $12,421,733 on November 18, 2016 to common stockholders of record on November 4, 2016.

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New Accounting Pronouncements

12 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

New Accounting Pronouncements

NEW ACCOUNTING PRONOUNCEMENTS

In August 2016, the FASB issued Accounting Standards Update ("ASU") 2016-15, Classification of Certain Cash Receipts and Cash Payments. The amendments in this ASU address eight specific cash flow issues with the objective of reducing diversity in practice. The specific issues identified include: debt prepayments or extinguishment costs; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This ASU is effective for fiscal years beginning after December 15, 2017 including interim periods within that reporting period; however, early adoption is permitted. The Company is currently evaluating the guidance to determine its adoption method and does not expect this guidance to have a material impact on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses. The amendments in this ASU were issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to- maturity debt securities, trade and other receivables, net investments in leases and other commitments to extend credit held by a reporting entity at each reporting date. The amendments require that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The ASU eliminates the current framework of recognizing probable incurred losses and instead requires an entity to use its current estimate of all expected credit losses over the contractual life. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets.

For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, an allowance for expected credit losses is recorded as an adjustment to the cost basis of the asset. Subsequent changes in estimated cash flows would be recorded as an adjustment to the allowance and through the statement of income.

Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security's cost basis.

The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For most debt securities, the transition approach requires a cumulative-effect adjustment to the statement of financial position as of the beginning of the first reporting period the guidance is effective. For other-than-temporarily impaired debt securities and PCD assets, the guidance will be applied prospectively. The Company is currently evaluating the provisions of this ASU to determine the impact the new standard will have on the Company's consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation- Improvements to Employee Share-Based Payment Accounting, which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under the guidance, income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity should also recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. In regards to forfeitures, the entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. This ASU is effective for fiscal years beginning after December 15, 2016 including interim periods within that reporting period; however, early adoption is permitted. The Company is currently evaluating the guidance to determine its adoption method and does not expect this guidance to have a material impact on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases. The amendments require lessees to recognize a lease liability, which is a lessee's obligation to make lease payments arising from a lease, and a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. The guidance also simplifies the accounting for sale and leaseback transactions. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently evaluating the provisions of this ASU to determine the impact the new standard will have on the Company's consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, to require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this ASU also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017 including interim periods within that reporting period. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments, which will require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments in ASU 2015-16 are effective for years beginning after December 15, 2015. Early adoption is permitted for reporting periods for which financial statements have not been issued. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

In April 2015, the FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in Cloud Computing Arrangement. The ASU was issued to clarify a customer's accounting for fees paid in a cloud computing arrangement. The amendments provide guidance to customers in determining whether a cloud computing arrangement includes a software license that should be accounted for as internal-use software. If the arrangement does not contain a software license, it would be accounted for as a service contract. The guidance in this ASU is effective for interim and annual periods beginning after December 15, 2015 and can be adopted either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The guidance in this update supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the codification. For public companies, this update was to be effective for interim and annual periods beginning after December 15, 2016. However, in August 2015, the FASB issued ASU 2015-14, which delayed the effective date of ASU 2014-09 by one year and permits companies to voluntarily adopt the new standard as of the original effective date. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

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Investment Securities

12 Months Ended

Sep. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Investment Securities

INVESTMENT SECURITIES

The tables below provide detail regarding the amortized cost and fair value of available-for-sale and held-to-maturity investment securities.

September 30, 2016	Amortized Cost		Gross Unrealized					Fair Value		Yield
			Gains		Losses
	(In thousands)
Available-for-sale securities
U.S. government and agency securities due
Within 1 year	$	21,284	$	—	$	(59	)	$	21,225	0.81	%
1 to 5 years	12,477		1,027		(11		)	13,493		7.94
5 to 10 years	48,134		—		(1,589		)	46,545		1.14
Over 10 years	182,051		27		(3,990		)	178,088		1.33
Equity Securities
Within 1 year	—		—		—			—		—
1 to 5 years	100,422		1,402		—			101,824		1.90
Corporate debt securities due
Within 1 year	278,094		325		(53		)	278,366		1.33
1 to 5 years	63,481		928		(113		)	64,296		2.47
5 to 10 years	69,955		—		(2,417		)	67,538		1.96
Over 10 years	50,000		938		—			50,938		3.00
Municipal bonds due
1 to 5 years	2,315		2		—			2,317		1.23
5 to 10 years	1,335		38		—			1,373		2.05
Over 10 years	20,363		3,617		—			23,980		6.45
Mortgage-backed securities
Agency pass-through certificates	978,955		17,118		(3,032		)	993,041		2.58
Commercial MBS	80,318		—		(448		)	79,870		1.91
	1,909,184		25,422		(11,712		)	1,922,894		2.22
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	1,417,599		24,171		(214		)	1,441,556		3.18
	1,417,599		24,171		(214		)	1,441,556		3.18
	$	3,326,783	$	49,593	$	(11,926	)	$	3,364,450	2.62	%

September 30, 2015	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	$	105,065	$	1,923	$	(274	)	$	106,714	1.74	%
5 to 10 years	119,071		35		(1,247		)	117,859		1.54
Over 10 years	262,832		—		(4,941		)	257,891		1.23
Equity Securities
Within 1 year	500		17		—			517		1.80
1 to 5 years	99,922		1,513		—			101,435		1.90
Corporate debt securities due
Within 1 year	24,787		191		—			24,978		0.53
1 to 5 years	311,435		1,190		(58		)	312,567		0.88
5 to 10 years	100,000		876		(3,524		)	97,352		1.47
Over 10 years	69,950		953		—			70,903		3.00
Municipal bonds due
1 to 5 years	2,285		8		—			2,293		1.23
5 to 10 years	1,303		7		—			1,310		2.05
Over 10 years	20,382		3,138		—			23,520		6.45
Mortgage-backed securities
Agency pass-through certificates	1,144,787		18,222		(2,491		)	1,160,518		2.48
Commercial MBS	103,131		85		(510		)	102,706		1.51
	2,365,450		28,158		(13,045		)	2,380,563		1.97
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	1,643,216		10,516		(16,312		)	1,637,420		3.19
	1,643,216		10,516		(16,312		)	1,637,420		3.19
	$	4,008,666	$	38,674	$	(29,357	)	$	4,017,983	2.46	%

The Company purchased $137,591,000 of available-for-sale investment securities and no held-to-maturity investment securities during 2016. The Company sold $50,741,000 of available-for-sale securities and there were no sales of held-to-maturity investment securities in 2016. Substantially all mortgage-backed securities have contractual due dates that exceed twenty-five years.

The following table shows the gross unrealized losses and fair value of securities at September 30, 2016 and September 30, 2015, by length of time that individual securities in each category have been in a continuous loss position. Management believes that the declines in fair value of these investments are not an other than temporary impairment as these losses are due to a change in interest rates rather than any credit deterioration. The impairment is also deemed to be temporary because: 1) the Bank does not intend to sell the security, and 2) it is not more likely than not that it will be required to sell the security before recovery of the entire amortized cost basis of the security.

	September 30, 2016
	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 debt securities	$	—		$	—	$	(2,582	)	$	100,467	$	(2,582	)	$	100,467
U.S. agency securities	(11		)	3,167		(5,638		)	220,613		(5,649		)	223,780
Agency pass-through certificates	(1,278		)	301,030		(2,417		)	232,407		(3,695		)	533,437
	$	(1,289	)	$	304,197	$	(10,637	)	$	553,487	$	(11,926	)	$	857,684

	September 30, 2015
	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 debt securities	$	(183	)	$	72,862	$	(3,399	)	$	46,601	$	(3,582	)	$	119,463
U.S. agency securities	(5,010		)	336,243		(1,452		)	57,344		(6,462		)	393,587
Agency pass-through certificates	(1,036		)	169,541		(18,277		)	1,193,463		(19,313		)	1,363,004
	$	(6,229	)	$	578,646	$	(23,128	)	$	1,297,408	$	(29,357	)	$	1,876,054

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Loans Receivable

12 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Loans Receivable (including Covered Loans)

LOANS RECEIVABLE

The following table is a summary of loans receivable.

	September 30, 2016				September 30, 2015
	(In thousands)				(In thousands)
Non-Acquired loans
Single-family residential	$	5,621,066	51.3	%	$	5,651,845	57.5	%
Construction	1,110,411		10.1		200,509		2.0
Construction - custom	473,069		4.3		396,307		4.0
Land - acquisition & development	116,156		1.1		94,208		1.0
Land - consumer lot loans	101,853		0.9		103,989		1.1
Multi-family	1,118,801		10.2		1,125,722		11.5
Commercial real estate	956,164		8.7		986,270		10.0
Commercial & industrial	946,648		8.6		612,836		6.2
HELOC	134,785		1.2		127,646		1.3
Consumer	137,450		1.3		194,655		2.0
Total non-acquired loans	10,716,403		97.9	%	9,493,987		96.6	%
Acquired loans	115,394		1.1		166,293		1.7
Credit impaired acquired loans	89,837		0.8		87,081		0.9
Covered loans	28,974		0.3		75,909		0.8
Total gross loans	10,950,608		100	%	9,823,270		100	%
Less:
Allowance for probable losses	113,494				106,829
Loans in process	879,484				476,796
Discount on acquired loans	11,306				30,095
Deferred net origination fees	35,404				38,916
Total loan contra accounts	1,039,688				652,636
Net Loans	$	9,910,920			$	9,170,634

The following summary breaks down the Company's fixed rate and adjustable rate loans by time to maturity or to rate adjustment.

September 30, 2016
Fixed-Rate			Adjustable-Rate
Term To Maturity	Gross Loans		Term To Rate Adjustment	Gross Loans
	(In thousands)			(In thousands)
Within 1 year	$	29,428	Less than 1 year	$	1,362,480
1 to 3 years	326,859		1 to 3 years	1,457,584
3 to 5 years	192,202		3 to 5 years	552,402
5 to 10 years	693,099		5 to 10 years	625,852
10 to 20 years	1,020,654		10 to 20 years	—
Over 20 years	4,690,048		Over 20 years	—
	$	6,952,290		$	3,998,318

The following tables provide information regarding loans receivable by loan category and geography.

September 30, 2016	Single - family residential		Multi- family		Land - A & D		Land - lot loans		Construction - custom		Construction		Commercial real estate		Commercial and industrial		Consumer		HELOC		Total
	(In thousands)
Washington	$	2,926,555	$	287,999	$	74,017	$	59,371	$	277,877	$	470,720	$	482,802	$	500,540	$	41,212	$	88,681	$	5,209,774
Oregon	664,932		332,311		10,953		12,403		52,709		122,958		171,093		203,377		3,152		13,711		1,587,599
Arizona	546,080		292,830		4,142		9,014		45,536		43,300		38,302		47,584		309		15,838		1,042,935
Other	216,902		2,448		443		11,157		11,228		110,843		277,438		94,215		91,874		1,030		817,578
Utah	474,390		47,374		958		3,448		33,036		143,246		11,499		46,497		39		7,573		768,060
Idaho	284,212		33,043		4,761		3,910		17,120		64,510		34,075		16,627		141		6,973		465,372
New Mexico	186,061		97,699		12,417		1,274		18,128		47,763		68,385		10,860		1,110		13,790		457,487
Texas	202,541		29,458		10,806		979		10,610		107,071		6,151		42,594		1,085		305		411,600
Nevada	157,154		1,127		—		3,012		6,825		—		3,894		16,295		80		1,816		190,203
	$	5,658,827	$	1,124,289	$	118,497	$	104,568	$	473,069	$	1,110,411	$	1,093,639	$	978,589	$	139,002	$	149,717	$	10,950,608

Percentage by geographic area
September 30, 2016	Single - family residential		Multi- family		Land - A & D		Land - lot loans		Construction - custom		Construction		Commercial real estate		Commercial and industrial		Consumer		HELOC		Total
	As % of total gross loans
Washington	26.8	%	2.6	%	0.7	%	0.5	%	2.5	%	4.3	%	4.4	%	4.6	%	0.4	%	0.8	%	47.6	%
Oregon	6.1		3.0		0.1		0.1		0.5		1.1		1.6		1.9		—		0.1		14.5
Arizona	5.0		2.7		—		0.1		0.4		0.4		0.3		0.4		—		0.2		9.5
Other	2.0		—		—		0.2		0.1		1.0		2.5		0.9		0.8		—		7.5
Utah	4.3		0.5		—		—		0.3		1.3		0.1		0.4		—		0.1		7.0
Idaho	2.5		0.3		—		—		0.2		0.6		0.3		0.2		—		0.1		4.2
New Mexico	1.8		0.9		0.1		—		0.2		0.4		0.6		0.1		—		0.1		4.2
Texas	1.8		0.3		0.1		—		0.1		1.0		0.1		0.4		—		—		3.8
Nevada	1.4		—		0.1		—		0.1		—		—		0.1		—		—		1.7
	51.7	%	10.3	%	1.1	%	0.9	%	4.4	%	10.1	%	9.9	%	9.0	%	1.2	%	1.4	%	100	%

Percentage by geographic area as a % of each loan type
September 30, 2016	Single - family residential		Multi- family		Land - A & D		Land - lot loans		Construction - custom		Construction		Commercial real estate		Commercial and industrial		Consumer		HELOC
	As % of total gross loans
Washington	51.6	%	25.7	%	62.5	%	56.8	%	58.9	%	42.4	%	44.0	%	51.0	%	29.6	%	59.1	%
Oregon	11.8		29.6		9.2		11.9		11.1		11.1		15.6		20.8		2.3		9.2
Arizona	9.7		26.0		3.5		8.6		9.6		3.9		3.5		4.9		0.2		10.6
Other	3.8		0.2		0.4		10.7		2.4		10.0		25.4		9.6		66.1		0.7
Utah	8.4		4.2		0.8		3.3		7.0		12.9		1.1		4.8		—		5.1
Idaho	5.0		2.9		4.0		3.7		3.6		5.8		3.1		1.7		0.1		4.7
New Mexico	3.3		8.7		10.5		1.2		3.8		4.3		6.3		1.1		0.8		9.2
Texas	3.6		2.6		9.1		0.9		2.2		9.6		0.6		4.4		0.8		0.2
Nevada	2.8		0.1		—		2.9		1.4		—		0.4		1.7		0.1		1.2
	100.0	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%

The Company has granted loans to officers and directors of the Company and related interests. These loans are made on the same terms,

including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and do not involve more than the normal risk of collectability. The aggregate dollar amount of these loans, including unfunded commitments to lend, was $57,153,000 and $55,965,000 at September 30, 2016 and 2015, respectively.

The following table provides additional information on impaired loans, loan commitments and loans serviced for others.

	September 30, 2016		September 30, 2015
	(In thousands)
Recorded investment in impaired loans	$	285,243	$	341,579
TDRs included in impaired loans	261,531		302,713
Allocated reserves on impaired loans	1,980		2,323
Specific reserves on impaired loans	366		275
Average balance of impaired loans for year ended	265,771		333,815
Interest income from impaired loans for year ended	11,314		14,855
Outstanding fixed-rate origination commitments	331,947		230,869
Gross loans serviced for others	80,896		72,083

The following table sets forth information regarding non-accrual loans.

	September 30, 2016				September 30, 2015
	(In thousands)				(In thousands)
Non-accrual loans:
Single-family residential	$	33,148	78.2	%	$	59,074	87.1	%
Construction	—		—		754		1.1
Construction - custom	—		—		732		1.1
Land - acquisition & development	58		0.1		—		—
Land - consumer lot loans	510		1.2		1,273		1.9
Multi-family	776		1.8		2,558		3.8
Commercial real estate	7,100		16.7		2,176		3.2
Commercial & industrial	583		1.4		—		—
HELOC	239		0.6		563		0.8
Consumer	—		—		680		1.0
Total non-accrual loans	$	42,414	100	%	$	67,810	100	%

The following table breaks down delinquent loans by loan category and delinquency bucket.

September 30, 2016	Amount of Loans		Days Delinquent Based on $ Amount of Loans										% based on $
Type of Loan	Net of Loans in Process		Current		30		60		90		Total
	(In thousands)
Non-acquired loans
Single-family residential	$	5,624,783	$	5,574,384	$	20,917	$	5,173	$	24,309	$	50,399	0.90	%
Construction	497,393		497,393		—		—		—		—		—
Construction - custom	229,957		229,419		538		—		—		538		0.23
Land - acquisition & development	88,662		88,662		—		—		—		—		—
Land - consumer lot loans	102,386		100,373		816		687		510		2,013		1.97
Multi-family	1,119,042		1,117,453		1,190		399		—		1,589		0.14
Commercial real estate	955,944		955,604		—		183		157		340		0.04
Commercial & industrial	947,703		947,661		—		42		—		42		—
HELOC	134,214		133,683		490		—		41		531		0.40
Consumer	136,835		135,926		705		124		80		909		0.66
	9,836,919		9,780,558		24,656		6,608		25,097		56,361		0.57
Acquired loans	115,394		114,770		124		2		498		624		0.54
Credit impaired acquired loans	89,837		84,625		227		142		4,843		5,212		5.80
Covered loans	28,974		22,891		—		262		5,821		6,083		20.99
Total Loans	$	10,071,124	$	10,002,844	$	25,007	$	7,014	$	36,259	$	68,280	0.68	%
Delinquency %			99.32%		0.25%		0.07%		0.36%		0.68%

The percentage of total delinquent loans was 0.68% as of September 30, 2016, as compared to 0.88% as of September 30, 2015.

Most loans restructured in troubled debt restructurings ("TDRs") are accruing and performing loans where the borrower has proactively approached the Company about modifications due to temporary financial difficulties. Each request is individually evaluated for merit and likelihood of success. The concession for these loans is typically a payment reduction through a rate reduction of 100 to 200 bps for a specific term, usually six to twelve months. Interest-only payments may also be approved during the modification period. Principal forgiveness is not an available option for restructured loans. As of September 30, 2016, the outstanding balance of TDR's was $261,531,000 as compared to $302,713,000 as of September 30, 2015. As of September 30, 2016, 96.2% of the restructured loans were performing. Single-family residential loans comprised 87.2% of TDR loans as of September 30, 2016. The Company reserves for restructured loans within its allowance for loan loss methodology by taking into account the following performance indicators: 1) time since modification, 2) current payment status and 3) geographic area.

The following table provides information related to loans that were modified in a TDR during the periods presented.

	Twelve Months Ended September 30, 2016					Twelve Months Ended September 30, 2015
		Pre-Modification		Post-Modification			Pre-Modification		Post-Modification
		Outstanding		Outstanding			Outstanding		Outstanding
	Number of	Recorded		Recorded		Number of	Recorded		Recorded
Troubled Debt Restructurings:	Contracts	Investment		Investment		Contracts	Investment		Investment
		(In thousands)					(In thousands)
Single-family residential	120	$	23,541	$	23,541	62	$	13,378	$	13,378
Construction	—	—		—		2	701		701
Land - consumer lot loans	10	970		970		9	1,546		1,546
Commercial real estate	7	2,523		2,523		3	3,175		3,175
HELOC	1	126		126		1	50		50
Consumer	1	24		24		1	80		80
	139	$	27,184	$	27,184	78	$	18,930	$	18,930

The following table provides information on payment defaults occurring during the periods presented where the loan had been modified in a TDR within 12 months of the payment default.

	Twelve Months Ended September 30, 2016			Twelve Months Ended September 30, 2015
	Number of	Recorded		Number of	Recorded
TDRs That Subsequently Defaulted:	Contracts	Investment		Contracts	Investment
	(In thousands)			(In thousands)
Single-family residential	17	$	4,875	18	$	2,917
Construction	1	279		—	—
Land - consumer lot loans	5	606		2	301
Commercial real estate	2	326		—	—
	25	$	6,086	20	$	3,218

The excess of cash flows expected to be collected over the initial fair value of acquired impaired loans is referred to as the accretable yield and this amount is accreted into interest income over the estimated life of the acquired loans using the effective yield method. Other adjustments to the accretable yield include changes in the estimated remaining life of the acquired loans, changes in expected cash flows and changes in the indices for acquired loans with variable interest rates.

The following table shows the changes in accretable yield for acquired impaired loans and acquired non-impaired loans including covered loans for the years ended September 30, 2016 and 2015.

	Twelve Months Ended September 30, 2016												Twelve Months Ended September 30, 2015
	Acquired Impaired						Acquired Non-impaired						Acquired Impaired						Acquired Non-impaired
	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
	(In thousands)												(In thousands)
Beginning balance	$	72,705		$	111,300		$	7,204		$	187,080		$	97,125		$	135,826		$	14,513		$	275,862
Net reclassification from non-accretable	4,867			—			—			—			6,307			—			346			—
Accretion	(18,730		)	18,730			(2,982		)	2,982			(30,727		)	30,727			(7,655		)	7,655
Transfers to REO	—			(175		)	—			—			—			(2,975		)	—			(150		)
Payments received, net	—			(38,094		)	—			(58,930		)	—			(52,278		)	—			(96,287		)
Ending Balance	$	58,842		$	91,761		$	4,222		$	131,132		$	72,705		$	111,300		$	7,204		$	187,080

At September 30, 2016 and September 30, 2015, none of the acquired impaired or non-impaired loans were classified as non-performing assets. Therefore, interest income, through accretion of the difference between the carrying amount of the loans and the expected cash flows, was recognized on all acquired loans.

The FDIC loss share coverage for the acquired commercial loans from the former Horizon Bank expired after March 31, 2015. These loans were transferred to loans receivable. The FDIC loss share coverage for the acquired commercial loans from the former Home Valley Bank expired after of September 30, 2015 with final reporting as of October 31, 2015. Recoveries to the extent that claims were made will continue to be shared for three years. The FDIC loss share coverage for single family residential loans will continue for another four years.

The outstanding principal balance of covered loans was $28,974,000 as of September 30, 2016, as compared to $75,909,000 as of September 30, 2015. The discount balance related to the covered loans was $2,738,000 as of September 30, 2016.

The following table shows the year to date activity for the FDIC indemnification asset.

	Twelve Months Ended September 30, 2016			Twelve Months Ended September 30, 2015
	(In thousands)
Balance at beginning of year	$	16,275		$	36,860
Additions and impairment	—			(1,795		)
Payments received	(1,730		)	(720		)
Amortization	(2,012		)	(18,588		)
Accretion	236			518
Balance at end of year	$	12,769		$	16,275

XML

Allowance for Losses on Loans

12 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Allowance for Losses on Loans

ALLOWANCE FOR LOSSES ON LOANS

The following tables summarize the activity in the allowance for loan losses.

Twelve Months Ended September 30, 2016	Beginning Allowance		Charge-offs			Recoveries		Provision & Transfers			Ending Allowance
	(In thousands)
Single-family residential	$	47,347	$	(3,106	)	$	3,251	$	(9,696	)	$	37,796
Construction	6,680		—			745		12,413			19,838
Construction - custom	990		(60		)	60		90			1,080
Land - acquisition & development	5,781		(42		)	8,220		(7,936		)	6,023
Land - consumer lot loans	2,946		(732		)	5		316			2,535
Multi-family	5,304		—			—		1,621			6,925
Commercial real estate	8,960		(103		)	1,812		(2,081		)	8,588
Commercial & industrial	24,980		(941		)	2,933		1,036			28,008
HELOC	902		(54		)	21		(56		)	813
Consumer	2,939		(962		)	2,018		(2,107		)	1,888
	$	106,829	$	(6,000	)	$	19,065	$	(6,400	)	$	113,494

Twelve Months Ended September 30, 2015	Beginning Allowance		Charge-offs			Recoveries		Provision & Transfers			Ending Allowance
	(In thousands)
Single-family residential	$	62,763	$	(5,524	)	$	13,403	$	(23,295	)	$	47,347
Construction	6,742		(388		)	120		206			6,680
Construction - custom	1,695		—			—		(705		)	990
Land - acquisition & development	5,592		(38		)	207		20			5,781
Land - consumer lot loans	3,077		(459		)	221		107			2,946
Multi-family	4,248		—			220		836			5,304
Commercial real estate	7,548		(1,711		)	735		2,388			8,960
Commercial & industrial	16,527		(3,354		)	1,374		10,433			24,980
HELOC	928		(66		)	2		38			902
Consumer	3,227		(3,060		)	3,688		(916		)	2,939
Covered loans	2,244		—			—		(2,244		)	—
	$	114,591	$	(14,600	)	$	19,970	$	(13,132	)	$	106,829

The Company recorded a release of allowance for loan losses of $6,400,000 during the year ended September 30, 2016, as compared to a release of $11,162,000 for the year ended September 30, 2015. The credit quality of the portfolio has been improving significantly and economic conditions are more stable.

The Company had recoveries, net of charge-offs, of $13,065,000 for the year ended September 30, 2016, compared with net recoveries of $5,370,000 for the year ended September 30, 2015. A loan is charged-off when the loss is estimable and it is confirmed that the borrower is not expected to be able to meet its contractual obligations.

Non-accrual loans decreased to $42,414,000 as of September 30, 2016 from $67,810,000 as of September 30, 2015. Non-performing assets (“NPAs”) totaled $71,441,000, or 0.48% of total assets, at September 30, 2016, compared to $128,908,000, or 0.88% of total assets, as of September 30, 2015. Acquired loans, including covered loans, are not classified as non-performing loans because they are recorded at fair value at acquisition and reflect lifetime estimated losses at that time. As of September 30, 2016, $20,175,000 in acquired loans were subject to the general allowance as the discount related to these balances was not sufficient to absorb potential losses.

There is no allowance for covered loans as of September 30, 2016 or September 30, 2015.

At September 30, 2016, $113,128,000 of the allowance was calculated under the formulas contained in our general allowance methodology and the remaining $366,000 represents specific reserves on loans that were deemed to be impaired.

The following tables show a summary of loans collectively and individually evaluated for impairment and the related allocation of general and specific reserves.

September 30, 2016	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	$	37,536	$	5,585,912	0.7	%	$	260	$	19,629	1.3	%
Construction	19,838		498,450		4.0		—		—		—
Construction - custom	1,080		229,298		0.5		—		330		—
Land - acquisition & development	6,022		90,850		6.6		2		850		0.2
Land - consumer lot loans	2,535		92,828		2.7		—		558		—
Multi-family	6,911		1,091,974		0.6		13		1,505		0.9
Commercial real estate	8,497		957,380		0.9		91		11,157		0.8
Commercial & industrial	28,008		966,930		2.9		—		—		—
HELOC	813		133,203		0.6		—		239		—
Consumer	1,888		137,315		1.4		—		3		—
	$	113,128	$	9,784,140	1.2	%	$	366	$	34,271	1.1	%

 ___________________

(1) Excludes acquired loans with discounts sufficient to absorb potential losses and covered loans

September 30, 2015	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	$	47,073	$	5,595,752	0.8	%	$	275	$	51,718	0.5	%
Construction	6,680		124,679		5.4		—		5,441		—
Construction - custom	990		205,692		0.5		—		—		—
Land - acquisition & development	5,781		72,602		8.0		—		2,198		—
Land - consumer lot loans	2,946		93,103		3.2		—		10,824		—
Multi-family	5,304		1,062,194		0.5		—		5,348		—
Commercial real estate	8,960		844,691		1.1		—		8,826		—
Commercial & industrial	24,980		643,577		3.9		—		—		—
HELOC	902		126,594		0.7		—		1,072		—
Consumer	2,938		194,569		1.5		—		86		—
	$	106,554	$	8,963,453	1.2	%	$	275	$	85,513	0.3	%

 ___________________

(1) Excludes acquired loans with discounts sufficient to absorb potential losses and covered loans

The Company has an asset quality review function that analyzes the loan portfolio and reports the results of the review to the Board of Directors on a quarterly basis. The single-family residential, HELOC and consumer portfolios are evaluated based on their performance as a pool of loans, since no single loan is individually significant or judged by its risk rating, size or potential risk of loss. The construction, land, multi-family, commercial real estate and commercial and industrial loans are risk rated on a loan by loan basis to determine the relative risk inherent in specific borrowers or loans. Based on that risk rating, the loans are assigned a grade and classified as follows:

• Pass – the credit does not meet one of the definitions defined 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.

The following tables provide information on loans based on credit quality indicators (defined above).

September 30, 2016	Internally Assigned Grade															Total
	Pass			Special mention			Substandard			Doubtful			Loss			Gross Loans
	(In thousands)
Non-acquired loans
Single-family residential	$	5,570,634		$	—		$	50,432		$	—		$	—		$	5,621,066
Construction	1,098,549			8,595			3,267			—			—			1,110,411
Construction - custom	473,069			—			—			—			—			473,069
Land - acquisition & development	110,125			—			6,031			—			—			116,156
Land - consumer lot loans	100,862			—			991			—			—			101,853
Multi-family	1,112,342			3,237			3,222			—			—			1,118,801
Commercial real estate	928,032			13,446			14,686			—			—			956,164
Commercial & industrial	900,571			7,160			38,917			—			—			946,648
HELOC	134,298			—			487			—			—			134,785
Consumer	137,367			—			83			—			—			137,450
Total non-acquired loans	10,565,849			32,438			118,116			—			—			10,716,403
Acquired loans	108,616			47			6,731			—			—			115,394
Credit impaired acquired loans	60,985			—			28,852			—			—			89,837
Covered loans	28,647			—			327			—			—			28,974
Total gross loans	$	10,764,097		$	32,485		$	154,026		$	—		$	—		$	10,950,608
Total grade as a % of total gross loans	98.3		%	0.3		%	1.4		%	—		%	—		%

September 30, 2015	Internally Assigned Grade															Total
	Pass			Special mention			Substandard			Doubtful			Loss			Gross Loans
	(In thousands)
Non-acquired loans
Single-family residential	$	5,558,700		$	—		$	93,145		$	—		$	—		$	5,651,845
Construction	197,935			—			2,574			—			—			200,509
Construction - custom	396,307			—			—			—			—			396,307
Land - acquisition & development	89,656			—			4,552			—			—			94,208
Land - consumer lot loans	103,569			—			420			—			—			103,989
Multi-family	1,118,673			865			6,184			—			—			1,125,722
Commercial real estate	971,510			4,360			10,400			—			—			986,270
Commercial & industrial	575,034			1,496			36,306			—			—			612,836
HELOC	127,398			—			248			—			—			127,646
Consumer	194,451			—			204			—			—			194,655
Total non-acquired loans	9,333,233			6,721			154,033			—			—			9,493,987
Acquired loans	149,891			—			16,402			—			—			166,293
Credit impaired acquired loans	61,019			—			26,062			—			—			87,081
Covered loans	61,776			—			14,133			—			—			75,909
Total gross loans	$	9,605,919		$	6,721		$	210,630		$	—		$	—		$	9,823,270
Total grade as a % of total gross loans	97.8		%	0.1		%	2.1		%	—		%	—		%

The following tables provide information on loans based on payment activity.

September 30, 2016	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross  Loans		Amount		% of Total Gross  Loans
	(In thousands)				(In thousands)
Single-family residential	$	5,587,919	99.4	%	$	33,148	0.6	%
Construction	1,110,411		100.0		—		—
Construction - custom	473,069		100.0		—		—
Land - acquisition & development	116,097		99.9		58		0.1
Land - consumer lot loans	101,343		99.5		510		0.5
Multi-family	1,118,025		99.9		776		0.1
Commercial real estate	949,064		99.3		7,100		0.7
Commercial & industrial	946,065		99.9		583		0.1
HELOC	134,546		99.8		239		0.2
Consumer	137,450		100.0		—		—
	$	10,673,989	99.6	%	$	42,414	0.4	%

September 30, 2015	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross  Loans		Amount		% of Total Gross  Loans
	(In thousands)				(In thousands)
Single-family residential	$	5,592,771	99.0	%	$	59,074	1.0	%
Construction	199,755		99.6		754		0.4
Construction - custom	395,575		99.8		732		0.2
Land - acquisition & development	94,208		100.0		—		—
Land - consumer lot loans	102,716		98.8		1,273		1.2
Multi-family	1,123,165		99.8		2,558		0.2
Commercial real estate	984,093		99.8		2,176		0.2
Commercial & industrial	612,836		100.0		—		—
HELOC	127,083		99.6		563		0.4
Consumer	193,975		99.7		680		0.3
	$	9,426,177	99.3	%	$	67,810	0.7	%

The following tables provide information on impaired loans by loan category.

September 30, 2016	Recorded Investment		Unpaid Principal Balance		Related Allowance			Average Recorded Investment
	(In thousands)
Impaired loans with no related allowance recorded:
Single-family residential	$	9,627	$	11,366	$	—		$	6,511
Construction	—		—		—			—
Construction - custom	—		—		—			—
Land - acquisition & development	138		9,001		—			614
Land - consumer lot loans	499		609		—			317
Multi-family	394		3,972		—			638
Commercial real estate	11,741		21,301		—			6,260
Commercial & industrial	1,030		3,082		—			863
HELOC	209		315		—			165
Consumer	74		550		—			111
	23,712		50,196		—			15,479
Impaired loans with an allowance recorded:
Single-family residential	228,186		232,595		3,809			216,632
Construction	—		—		—			—
Construction - custom	—		—		—			—
Land - acquisition & development	1,154		2,094		1			1,766
Land - consumer lot loans	9,630		10,678		1			9,548
Multi-family	1,505		1,505		13			1,522
Commercial real estate	19,434		22,848		91			19,311
Commercial & industrial	—		—		—			—
HELOC	1,506		1,521		—			1,413
Consumer	116		306		—			100
	261,531		271,547		3,915		(1)	250,292
Total:
Single-family residential	237,813		243,961		3,809			223,143
Construction	—		—		—			—
Construction - custom	—		—		—			—
Land - acquisition & development	1,292		11,095		1			2,380
Land - consumer lot loans	10,129		11,287		1			9,865
Multi-family	1,899		5,477		13			2,160
Commercial real estate	31,175		44,149		91			25,571
Commercial & industrial	1,030		3,082		—			863
HELOC	1,715		1,836		—			1,578
Consumer	190		856		—			211
	$	285,243	$	321,743	$	3,915	(1)	$	265,771

____________________ 

(1) Includes $366,000 of specific reserves and $3,549,000 included in the general reserves.

September 30, 2015	Recorded Investment		Unpaid Principal Balance		Related Allowance			Average Recorded Investment
	(In thousands)
Impaired loans with no related allowance recorded:
Single-family residential	$	17,250	$	19,644	$	—		$	14,069
Construction	453		2,151		—			471
Construction - custom	554		554		—			182
Land - acquisition & development	2,570		9,426		—			926
Land - consumer lot loans	727		814		—			544
Multi-family	3,770		7,054		—			1,545
Commercial real estate	9,427		15,620		—			8,130
Commercial & industrial	2,955		13,066		—			2,681
HELOC	683		1,532		—			536
Consumer	477		703		—			390
	38,866		70,564		—			29,474
Impaired loans with an allowance recorded:
Single-family residential	259,461		263,268		6,678			260,028
Construction	4,988		5,778		—			5,432
Construction - custom	—		—		—			—
Land - acquisition & development	2,486		3,426		—			3,478
Land - consumer lot loans	11,289		11,554		—			11,324
Multi-family	3,823		3,823		—			3,732
Commercial real estate	19,124		21,078		—			18,886
Commercial & industrial	—		—		—			—
HELOC	1,443		1,443		—			1,359
Consumer	99		289		—			102
	302,713		310,659		6,678		(1)	304,341
Total:
Single-family residential	276,711		282,912		6,678			274,097
Construction	5,441		7,929		—			5,903
Construction - custom	554		554		—			182
Land - acquisition & development	5,056		12,852		—			4,404
Land - consumer lot loans	12,016		12,368		—			11,868
Multi-family	7,593		10,877		—			5,277
Commercial real estate	28,551		36,698		—			27,016
Commercial & industrial	2,955		13,066		—			2,681
HELOC	2,126		2,975		—			1,895
Consumer	576		992		—			492
	$	341,579	$	381,223	$	6,678	(1)	$	333,815

____________________ 

(1) Includes $275,000 of specific reserves and $6,403,000 included in the general reserves.

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Fair Value Measurements

12 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active exchange markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active and other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

We have established and documented the Company's process for determining the fair values of the Company's assets and liabilities, where applicable. Fair value is based on quoted market prices, when available, for identical or similar assets or liabilities. In the absence of quoted market prices, fair value is determined using valuation models or third-party appraisals. The following is a description of the valuation methodologies used to measure and report the fair value of financial assets and liabilities on a recurring or nonrecurring basis.

Measured on a Recurring Basis

Available-for-sale investment securities and derivative contracts

Securities available for sale are recorded at fair value on a recurring basis. The fair value of debt securities are priced using model pricing based on the securities' relationship to other benchmark quoted prices as provided by an independent third party, and under GAAP are considered a Level 2 input method. Securities that are traded on active exchanges, including the Company's equity securities, are measured using the closing price in an active market and are considered a Level 1 input method.

The Company offers interest rate swaps to its variable rate borrowers who want to manage their interest rate risk. At the same time, the Company enters into the opposite trade with a counter party to offset its interest rate risk. The Company has also entered into a commercial loan hedge as well as long term borrowing hedges using interest rate swaps. The fair value of these interest rate swaps are estimated by a third party pricing service using a discounted cash flow technique. These are considered a Level 2 input method.

The following table presents the balance and ASC 825 level of assets measured at fair value on a recurring basis.

	September 30, 2016
	Level 1		Level 2		Level 3		Total
	(In thousands)
Available-for-sale securities
Equity securities	$	101,824	$	—	$	—	$	101,824
U.S. government and agency securities	—		259,351		—		259,351
Municipal bonds	—		27,670		—		27,670
Corporate debt securities	—		461,138		—		461,138
Mortgage-backed securities
Agency pass-through certificates	—		993,041		—		993,041
Commercial MBS	—		79,870		—		79,870
Other debt securities	—		—		—		—
Total Available-for-sale securities	101,824		1,821,070		—		1,922,894
Interest rate contracts	—		20,895		—		20,895
Total Financial Assets	$	101,824	$	1,841,965	$	—	$	1,943,789
Financial Liabilities
Interest rate contracts	$	—	$	20,895	$	—	$	20,895
Commercial loan hedges	—		3,312		—		3,312
Long term borrowing hedges	—		31,347		—		31,347
Total Financial Liabilities	$	—	$	55,554	$	—	$	55,554

There were no transfers between, into and/or out of Levels 1, 2 or 3 during the year ended September 30, 2016.

	September 30, 2015
	Level 1		Level 2		Level 3		Total
	(In thousands)
Available-for-sale securities
Equity securities	$	101,952	$	—	$	—	$	101,952
U.S. government and agency securities	—		482,464		—		482,464
Municipal bonds	—		27,123		—		27,123
Corporate debt securities	—		505,800		—		505,800
Mortgage-backed securities
Agency pass-through certificates							—
Commercial MBS	—		1,160,518		—		1,160,518
Other debt securities	—		102,706		—		102,706
Total Available-for-sale securities	101,952		2,278,611		—		2,380,563
Interest rate contracts	—		11,879		—		11,879
Total Financial Assets	$	101,952	$	2,290,490	$	—	$	2,392,442
Financial Liabilities
Interest rate contracts	$	—	$	11,879	$	—	$	11,879
Commercial loan hedges	—		966		—		966
Long term borrowing hedges	—		14,555		—		14,555
Total Financial Liabilities	$	—	$	27,400	$	—	$	27,400

There were no transfers between, into and/or out of Level 1, 2 or 3 during the year ended September 30, 2015.

Measured on a Nonrecurring Basis

Impaired Loans & Real Estate Owned

Real estate owned ("REO") consists principally of properties acquired through foreclosure. From time to time, and on a nonrecurring basis, adjustments using fair value measurements are recorded to reflect increases or decreases based on the current appraisal or estimated value of the collateral, but only up to the fair value of the real estate owned as of the initial transfer date less selling costs.

When management determines that the fair value of the collateral or the real estate owned requires additional adjustments, either as a result of an updated appraised value or when there is no observable market price, the Company classifies the impaired loan or real estate owned as Level 3. Level 3 assets recorded at fair value on a nonrecurring basis represent impaired loans for which a specific reserve is recorded or a partial charge-off was recorded based on the fair value of collateral, as well as real estate owned where the fair value of the property was less than the cost basis.

The following table presents the recorded balance of assets that were measured at estimated fair value on a nonrecurring basis for the periods presented, and the total gains (losses) resulting from those fair value adjustments for the periods presented. These estimated fair values are shown gross of estimated selling costs:

	September 30, 2016								Three Months Ended September 30, 2016			Twelve Months Ended September 30, 2016
	Level 1		Level  2		Level  3		Total		Total Gains (Losses)
	(In thousands)
Impaired loans (1)	$	—	$	—	$	17,476	$	17,476	$	(474	)	$	(4,236	)
Real estate owned (2)	—		—		25,190		25,190		(1,003		)	(3,947		)
Balance at end of period	$	—	$	—	$	42,666	$	42,666	$	(1,477	)	$	(8,183	)

 ___________________

(1) The gains (losses) represent remeasurements of collateral-dependent impaired loans.

(2) The gains (losses) represent aggregate writedowns and charge-offs on real estate owned.

	September 30, 2015								Three Months Ended September 30, 2015			Twelve Months Ended September 30, 2015
	Level 1		Level  2		Level  3		Total		Total Gains (Losses)
	(In thousands)
Impaired loans (1)	$	—	$	—	$	6,735	$	6,735	$	(40	)	$	(4,241	)
Real estate owned (2)	—		—		81,448		81,448		(654		)	7,749
Balance at end of period	$	—	$	—	$	88,183	$	88,183	$	(694	)	$	3,508

 ___________________

(1) The gains (losses) represent remeasurements of collateral-dependent impaired loans.

(2) The gains (losses) represent aggregate writedowns and charge-offs on real estate owned.

The following describes the process used to value Level 3 assets measured on a nonrecurring basis:

Impaired loans - The Company adjusts the carrying amount of impaired loans when there is evidence of probable loss and the expected fair value of the loan is less than its contractual amount. The amount of the impairment may be determined based on the estimated present value of future cash flows or the fair value of the underlying collateral. Impaired loans with a specific reserve allowance based on cash flow analysis or the value of the underlying collateral are classified as Level 3 assets.

The evaluations for impairment are prepared by the Problem Loan Review Committee, which is chaired by the Chief Credit Officer and includes the Loan Review manager and Special Credits manager, as well as senior credit officers, division managers and group executives, as applicable. These evaluations are performed in conjunction with the quarterly allowance for loan loss process.

Applicable loans that were included in the previous quarter's review are reevaluated and if their values are materially different from the prior quarter evaluation, the underlying information (loan balance and collateral value) are compared. Material differences are evaluated for reasonableness and discussions are held between the relationship manager and their division manager to understand the difference and determine if any adjustment is necessary.

The inputs are developed and substantiated on a quarterly basis, based on current borrower developments, market conditions and collateral values. The following methods are used to value impaired loans:

• 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 present value of the expected future cash flows of the loans is used for measurement of non collateral-dependent loans to test for impairment. The Company estimates the future cash flows and then discounts those using the contractual interest rate.

Real estate owned - When a loan is reclassified from loan status to real estate owned due to the Company taking possession of the collateral, a Special Credits officer, along with the Special Credits manager, obtains a valuation, which may include appraisals or third-party price options, which is used to establish the fair value of the underlying collateral. The determined fair value, less selling costs, becomes the carrying value of the REO asset.

Fair Values of Financial Instruments

U. S. GAAP requires disclosure of fair value information about financial instruments, whether or not recognized on the statement of financial condition, for which it is practicable to estimate those values. Certain financial instruments and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value estimates presented do not reflect the underlying fair value of the Company. Although management is not aware of any factors that would materially affect the estimated fair value amounts presented below, such amounts have not been comprehensively revalued for purposes of these financial statements since the dates shown, and therefore, estimates of fair value subsequent to those dates may differ significantly from the amounts presented below.

		September 30, 2016				September 30, 2015
	Level	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
		(In thousands)
Financial assets
Cash and cash equivalents	1	$	450,368	$	450,368	$	284,049	$	284,049
Available-for-sale securities:
Equity securities	1	101,824		101,824		101,952		101,952
U.S. government and agency securities	2	259,351		259,351		482,464		482,464
Municipal bonds	2	27,670		27,670		27,123		27,123
Corporate debt securities	2	461,138		461,138		505,800		505,800
Mortgage-backed securities
Agency pass-through certificates	2	993,041		993,041		1,160,518		1,160,518
Commercial MBS	2	79,870		79,870		102,706		102,706
Total available-for-sale securities		1,922,894		1,922,894		2,380,563		2,380,563
Held-to-maturity securities:
Mortgage-backed securities
Agency pass-through certificates	2	1,417,599		1,441,556		1,643,216		1,637,420
Total held-to-maturity securities		1,417,599		1,441,556		1,643,216		1,637,420
Loans receivable	3	9,910,920		10,414,794		9,170,634		9,667,750
FDIC indemnification asset	3	12,769		12,095		16,275		15,522
FHLB and FRB stock	2	117,205		117,205		107,198		107,198
Other assets - interest rate contracts	2	20,895		20,895		11,879		11,879
Financial liabilities
Customer accounts	2	10,600,852		10,184,321		10,631,703		10,004,290
FHLB advances and other borrowings	2	2,080,000		2,184,671		1,830,000		1,938,384
Other liabilities - interest rate contracts	2	20,895		20,895		11,879		11,879
Other liabilities - commercial loan hedges	2	3,312		3,312		966		966
Other liabilities - long term borrowing hedges	2	31,347		31,347		14,555		14,555

The following methods and assumptions were used to estimate the fair value of financial instruments:

Cash and cash equivalents – The carrying amount of these items is a reasonable estimate of their fair value.

Available-for-sale securities and held-to-maturity securities – Securities at fair value are primarily priced using model pricing based on the securities' relationship to other benchmark quoted prices as provided by an independent third party, and are considered a Level 2 input method. Equity securities which are exchange traded are considered a Level 1 input method.

Loans receivable – For certain homogeneous categories of loans, such as fixed- and variable-rate residential mortgages, fair value is estimated for securities backed by similar loans, adjusted for differences in loan characteristics, using the same methodology described above for AFS and HTM securities. The fair value of other loan types is estimated by discounting the future cash flows and estimated prepayments using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining term. Some loan types were valued at carrying value because of their floating rate or expected maturity characteristics. Net deferred loan fees are not included in the fair value calculation but are included in the carrying amount.

FDIC indemnification asset – The fair value of the indemnification asset is estimated by discounting the expected future cash flows using the current rates.

FHLB and FRB stock – The fair value is based upon the par value of the stock which equates to its carrying value.

Customer accounts – The fair value of demand deposits, savings accounts, and money market accounts is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated by discounting the estimated future cash flows using the rates currently offered for deposits with similar remaining maturities.

FHLB advances – The fair value of FHLB advances and other borrowings is estimated by discounting the estimated future cash flows using rates currently available to the Company for debt with similar remaining maturities.

Interest Rate Contracts – The bank offers interest rate swaps to its variable rate borrowers who want to manage their interest rate risk. At the same time, the bank enters into the opposite trade with a counterparty to offset its interest rate risk. The fair value of these interest rate swaps are estimated by a third party pricing service using a discounted cash flow technique.

Commercial Loan Hedges – The fair value of the interest rate swaps are estimated by a third party pricing service using a discounted cash flow technique.

Long Term Borrowing Hedges – The fair value of the interest rate swaps are estimated by a third party pricing service using a discounted cash flow technique.

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Derivatives and Hedging Activities Derivatives and Hedging Activities

12 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

DERIVATIVES AND HEDGING ACTIVITIES

The Company periodically enters into certain interest rate swap agreements in order to provide commercial loan customers the ability to convert from variable to fixed interest rate payments, while the Company retains a variable rate loan. Under these agreements, the Company enters into a variable rate loan agreement and a swap agreement with the client. The swap agreement effectively converts the client’s variable rate loan into a fixed rate. The Company enters into a corresponding swap agreement with a third party in order to offset its exposure on the variable and fixed components of the client's swap agreement. The Company had $840,935,000 and $439,416,000 notional in interest rate swaps to hedge this exposure as of September 30, 2016 and September 30, 2015, respectively. As of September 30, 2016, $34,432,000 of the outstanding notional balance related to a related party loan. The interest rate swaps are derivatives under FASB ASC 815, Derivatives and Hedging, with changes in fair value recorded in earnings. There was no net impact to the statement of operations for the year ended September 30, 2016 as the changes in value for the asset and liability side of the swaps offset each other.

The Company has also entered into interest rate swaps, some of which are forward-starting, to convert certain existing and future short-term borrowings to fixed rate payments. The primary purpose of these hedges is to mitigate the risk of rising interest rates, specifically LIBOR rates, which are a benchmark for the short term borrowings. The hedging program qualifies as a cash flow hedge under ASC 815, which provides for offsetting of the recognition of gains and losses of the interest rate swaps and the hedged items. The hedged item is the LIBOR portion of the series of existing or future short-term fixed rate borrowings over the term of the interest rate swap. The change in the fair value of the interest rate swaps is recorded in other comprehensive income. The Company had $700,000,000 and $400,000,000 notional in interest rate swaps to hedge existing and anticipated future borrowings as of September 30, 2016 and September 30, 2015, respectively. The unrealized loss, gross of the related tax benefit, on these interest rate swaps as of September 30, 2016 was $31,347,000.

The Company has also entered into an interest rate swap to hedge the interest rate risk of an individual fixed rate commercial loan and this relationship qualifies as a fair value hedge under ASC 815, which provides for offsetting of the recognition of gains and losses of the interest rate swap and the hedged item. The Company hedges this loan using an interest rate swap with a notional amount of $54,155,000 and $54,815,000 as of September 30, 2016 and September 30, 2015, respectively.

The following table presents the fair value and balance sheet classification of derivatives outstanding.

	Asset Derivatives						Liability Derivatives
	September 30, 2016			September 30, 2015			September 30, 2016			September 30, 2015
(In thousands)	Balance Sheet	Fair Value		Balance Sheet	Fair Value		Balance Sheet	Fair Value		Balance Sheet	Fair Value
Interest rate contracts	Other assets	$	20,895	Other assets	$	11,879	Other liabilities	$	20,895	Other liabilities	$	11,879
Commercial loan hedges	Other assets	—		Other assets	—		Other liabilities	3,312		Other liabilities	966
Long term borrowing hedges	Other assets	—		Other assets	—		Other liabilities	31,347		Other liabilities	14,555
		$	20,895		$	11,879		$	55,554		$	27,400

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Interest Receivable

12 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Interest Receivable

INTEREST RECEIVABLE

The following table provides a summary of interest receivable by interest earning asset type.

	September 30, 2016		September 30, 2015
	(In thousands)
Loans receivable	$	29,858	$	30,930
Mortgage-backed securities	5,670		6,695
Investment securities	2,141		2,804
	$	37,669	$	40,429

Interest receivable was $37,669,000 at September 30, 2016 as compared to $40,429,000 as of September 30, 2015. The decrease is primarily due to lower rates as the average period rate for earning assets was 3.58% as of September 30, 2016 compared to 3.63% as of September 30, 2015.

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Premises and Equipment

12 Months Ended

Sep. 30, 2016

Property, Plant and Equipment [Abstract]

Premises and Equipment

PREMISES AND EQUIPMENT

The following table provides a summary of premises and equipment by asset type.

		September 30, 2016			September 30, 2015
	Estimated Useful Life	(In thousands)
Land	—	$	109,414		$	113,347
Buildings	25 - 40	143,841			147,757
Leasehold improvements	7 - 15	18,365			10,193
Furniture, software and equipment	2 - 10	115,199			89,919
		386,819			361,216
Less accumulated depreciation and amortization		(104,868		)	(84,969		)
		$	281,951		$	276,247

The Company has non-cancelable operating leases for certain branch offices. Future minimum net rental commitments for all non-cancelable leases, including maintenance and associated costs, are as follows: $4,902,000 for 2017, $3,942,000 for 2018, $3,422,000 for 2019, $3,228,000 for 2020, $2,538,000 for 2021 and $13,159,000 thereafter.

Rental expense, including amounts paid under month-to-month cancelable leases, amounted to $5,300,000, $6,600,000 and $6,600,000 in 2016, 2015, and 2014, respectively.

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Customer Accounts

12 Months Ended

Sep. 30, 2016

Banking and Thrift [Abstract]

Customer Accounts

CUSTOMER ACCOUNTS

The following table provides the composition of the Company's customer accounts, including interest rate buckets and maturity buckets for time deposits.

	September 30, 2016		September 30, 2015
	(In thousands)
Checking accounts, .15% and under	$	2,721,721	$	2,555,766
Passbook and statement accounts, .10% and under	820,980		700,794
Insured money market accounts, .01% to .15%	2,462,891		2,564,318
Time deposit accounts
Less than 1.00%	3,268,272		3,126,119
1.00% to 1.99%	1,292,612		1,177,356
2.00% to 2.99%	34,376		501,409
3.00% to 3.99%	—		5,156
4.00% and higher	—		785
Total time deposits	4,595,260		4,810,825
	$	10,600,852	$	10,631,703
Time deposit maturities are as follows:	September 30, 2016		September 30, 2015
	(In thousands)
Within 1 year	$	2,894,900	$	2,862,313
1 to 2 years	798,309		1,068,792
2 to 3 years	293,058		321,118
Over 3 years	608,993		558,602
	$	4,595,260	$	4,810,825

Customer accounts over $250,000 totaled $2,250,622,000 as of September 30, 2016 and $2,096,690,000 as of September 30, 2015.

Interest expense on customer accounts consisted of the following:

Year ended September 30,	2016			2015			2014
	(In thousands)
Checking accounts	$	1,491		$	1,036		$	1,259
Passbook and statement accounts	734			660			607
Insured money market accounts	3,285			3,631			4,574
Time deposit accounts	47,425			46,273			52,636
	52,935			51,600			59,076
Less early withdrawal penalties	(450		)	(546		)	(552		)
	$	52,485		$	51,054		$	58,524
Weighted average interest rate at end of year	0.50		%	0.48		%	0.51		%
Weighted daily average interest rate during the year	0.50		%	0.48		%	0.57		%

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FHLB Advances and Other Borrowings

12 Months Ended

Sep. 30, 2016

Banking and Thrift [Abstract]

FHLB Advances and Other Borrowings

FHLB ADVANCES AND OTHER BORROWINGS

The table below shows the maturity dates of outstanding FHLB advances.

	September 30, 2016		September 30, 2015
	(In thousands)
FHLB advances
Within 1 year	$	200,000	$	250,000
1 to 3 years	880,000		750,000
4 to 5 years	700,000		430,000
More than 5 years	300,000		400,000
	$	2,080,000	$	1,830,000

There were no advances included in the above table which are callable by the FHLB.

Financial data pertaining to the weighted-average cost and the amount of FHLB advances were as follows.

	2016			2015			2014
	(In thousands)
Weighted average interest rate at end of year	3.15		%	3.35		%	3.52		%
Weighted daily average interest rate during the year	3.22		%	3.57		%	3.56		%
Daily average of FHLB advances during the year	$	1,992,434		$	1,848,904		$	1,955,205
Maximum amount of FHLB advances at any month end	$	2,080,000		$	1,930,000		$	2,205,000
Interest expense during the year (excludes interest rate swap expense)	$	64,058		$	64,331		$	68,307

On June 1, 2015, the FHLB of Seattle merged into the FHLB of Des Moines to create a larger, financially stronger, member-owned cooperative. The Bank has a credit line with the Federal Home Loan Bank of Des Moines ("FHLB") equal to 49.0% of total assets. The FHLB of Des Moines has assumed the Bank's advances with the FHLB of Seattle as of the merger date.

The Bank has entered into borrowing agreements with the FHLB to borrow funds under a short-term floating rate cash management advance program and a fixed-rate term loan agreements. All borrowings are secured by stock of the FHLB, deposits with the FHLB, and a blanket pledge of qualifying loans receivable as provided in the agreements with the FHLB.

As of September 30, 2016, 2015 and 2014, respectively, there were no reverse repurchase agreements or other borrowings. The Bank has historically entered into sales of reverse repurchase agreements which are an additional source of liquidity. Fixed-coupon reverse repurchase agreements have been treated as financings, and the obligations to repurchase securities sold have been reflected as a liability in the consolidated statements of financial condition in prior years.

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Income Taxes

12 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The table below provides a summary of the Company's tax assets and liabilities, including deferred tax assets and deferred tax liabilities by major source. Deferred tax balances represent temporary differences between the tax basis and the financial statement carrying amounts of assets and liabilities.

	September 30, 2016			September 30, 2015
	(In thousands)
Deferred tax assets
Loan loss reserves	$	45,531		$	43,749
REO reserves	4,018			11,213
Valuation adjustment on available-for-sale securities and cash flow hedges	6,482			—
Asset purchase tax basis difference (net)	—			5,973
Delinquent accrued interest	2,812			3,069
FDIC loss share guarantee receivable	9,598			7,803
Other, net	3,210			3,891
Total deferred tax assets	71,651			75,698
Deferred tax liabilities
Federal Home Loan Bank stock dividends	24,135			24,135
Valuation adjustment on available-for-sale securities and cash flow hedges	—			205
Asset purchase tax basis difference (net)	2,830
Loan origination costs	14,826			13,875
Depreciation	34,936			25,934
Total deferred tax liabilities	76,727			64,149
Net deferred tax asset (liability)	(5,076		)	11,549
Current tax asset	21,123			2,964
Net tax asset	$	16,047		$	14,513

The table below presents a reconciliation of the statutory federal income tax rate to the Company's effective income tax rate.

Year ended September 30,	2016		2015		2014
Statutory income tax rate	35	%	35	%	35	%
State income tax	1		2		2
Other differences	(2	)	(1	)	(1	)
Effective income tax rate	34	%	36	%	36	%

The following table summarizes the Company's income tax expense (benefit) for the respective periods.

Year ended September 30,	2016		2015			2014
	(In thousands)
Federal:
Current	$	57,173	$	79,841		$	70,797
Deferred	21,961		3,244			10,591
	79,134		83,085			81,388
State:
Current	$	3,600	$	6,636		$	4,987
Deferred	1,351		(518		)	1,189
	4,951		6,118			6,176
Total
Current	60,773		86,477			75,784
Deferred	23,312		2,726			11,780
	$	84,085	$	89,203		$	87,564

Based on current information the Company does not expect that changes in the amount of unrecognized tax benefits over the next twelve months will have a significant impact on its results of operations or financial position. The Company's liability for uncertain tax positions was $105,000 as of September 30, 2016 and $110,000 as of September 30, 2015. These amounts, if recognized, would affect the Company's effective tax rate. The Company records interest and penalties related to uncertain tax positions in income tax expense.

The Company's federal income tax returns are open for the tax years 2013 forward. The Company has been examined by the Internal Revenue Service through the year ended September 30, 2012.

State income tax returns are generally subject to examination for a period of three to five years after filing of the respective return. The state impact of any federal changes remains subject to examination by various states for a period of up to two years after formal notification to the states. The Company's unrecognized tax benefits are related to state tax returns open from 2013 through 2016.

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401(k) and Employee Stock Ownership Plan

12 Months Ended

Sep. 30, 2016

Compensation and Retirement Disclosure [Abstract]

401(k) and Employee Stock Ownership Plan

401(k) AND EMPLOYEE STOCK OWNERSHIP PLAN

The Company maintains a 401(k) and Employee Stock Ownership Plan (the "Plan") for the benefit of its employees. Company contributions are made annually as approved by the Board of Directors. Such amounts are not in excess of amounts permitted by the Employee Retirement Income Security Act of 1974.

Plan participants may make voluntary after-tax contributions of their considered earnings as defined by the Plan. In addition, participants may make pre-tax contributions up to the statutory limits through the 401(k) provisions of the Plan. The annual addition from contributions to an individual participant's account in this Plan cannot exceed the lesser of 100% of base salary or $53,000.

Effective January 1, 2016, new employees become eligible to participate in the Plan upon completion of one year of service. Such eligible employees become a participant in the Plan on the first day of the calendar quarter (January 1, April 1, July 1 or October 1) coincident with or following the completion of the one year of service requirement. The Plan defines “year of service” as a 12-month period in which the eligible employee works at least 1,000 hours of service and the first eligibility service period starts on the first day of employment. After the first 12-month eligibility service period, if the Plan needs to measure another eligibility service period (e.g., if the employee does not complete 1,000 hours of service in the first 12-month period), the Plan will measure the eligibility service period on a Plan Year basis.

Effective January 1, 2014, the Company added a guaranteed safe harbor matching contribution component to the plan equal to 100% of the first 4% of compensation that employee's contribute to their account. In addition to the new match being guaranteed, all safe harbor matching contributions are immediately vested. The new match is not subject to the 6 year vesting schedule of the current profit sharing contribution. This provides plan participants more investment flexibility. The Company anticipates that all eligible employees, regardless of personal plan participation, will continue to receive an annual discretionary profit sharing contribution from the Company, now capped at 7% of eligible compensation with this change.

Company contributions to the Plan amounted to $7,600,000, $8,700,000 and $7,314,000 for the years ended 2016, 2015 and 2014, respectively.

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Stock Award Plans

12 Months Ended

Sep. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Award Plans

STOCK AWARD PLANS

The Company's stock based compensation plan ('2011 Incentive Plan') provides for grants of stock options and restricted stock. Stockholders authorized 5,000,000 shares of common stock to be reserved pursuant to the 2011 Incentive Plan and 3,348,400 shares remain available for issuance as of September 30, 2016.

When applicable, stock options are granted with an exercise price equal to the market price of the Company's stock at the date of grant; those option awards generally vest based on 5 years of continuous service and have 10-year contractual terms. The Company's policy is to issue new shares upon option exercises. The fair value of stock options granted is estimated on the date of grant using the Black-Scholes option-pricing model. This model requires input of highly subjective assumptions, changes to which can materially affect the fair value estimate. Additionally, there may be other factors that would otherwise have a significant effect on the value of employee stock options granted but are not considered by the model. Expected volatility is based on the historical volatility of the Company's stock. The risk-free interest rate is based on the U.S. Treasury yield curve that is in effect at the time of grant with a remaining term equal to the options' expected life. The expected term represents the period of time that options granted are expected to be outstanding.

Stock Option Awards:

There were no stock options granted under the 2011 Incentive Plan during 2016, 2015 and 2014.

A summary of stock option activity and changes during the year are as follows.

Options	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value (In thousands)
Outstanding at September 30, 2015	1,027,374		$	21.64	3	$1,867
Granted	—		—
Exercised	(438,456	)	21.51
Forfeited	(129,475	)	22.32
Outstanding at September 30, 2016	459,443		$	21.47	2	$	2,392
Exercisable at September 30, 2016	459,443		$	21.47	2	$	2,392

The table below presents other information regarding stock options.

Year ended September 30,	2016		2015		2014
	(In thousands, except fair value of options granted)
Compensation cost for stock options	$	89	$	232	$	324
Weighted average grant date fair value per stock option	2.73		2.96		2.95
Total intrinsic value of options exercised	1,651		831		1,136
Grant date FV of options exercised	1,422		368		1,962
Cash received from option exercises	9,283		2,069		10,142
Tax benefit realized for option exercises	—		—		159

The following is a summary of activity related to non-vested stock options.

Year ended September 30,	2016				2015				2014
Non-vested Stock Options	Options Outstanding		Weighted Average Grant Date Fair Value		Options Outstanding		Weighted Average Grant Date Fair Value		Options Outstanding		Weighted Average Grant Date Fair Value
Outstanding at beginning of period	69,287		$	3.85	145,795		$	3.87	287,750		$	3.44
Granted	—		—		—		—		—		—
Vested	(62,227	)	3.91		(61,018	)	3.88		(119,520	)	2.88
Forfeited	(7,060	)	3.89		(15,490	)	3.90		(22,435	)	3.63
Outstanding at end of period	—		$	—	69,287		$	3.85	145,795		$	3.87

As of September 30, 2016, there was no remaining unrecognized compensation cost for stock options.

Restricted Stock Awards:

The Company grants shares of restricted stock pursuant to the 2011 Incentive Plan. The restricted stock grants are subject to a service condition and vest over a period of one to seven years.

Certain grants of restricted stock to executive officers are also subject to additional performance conditions based upon meeting certain total shareholder return targets pre-established by the Board. The Company had a total of 490,363 shares of restricted stock outstanding as of September 30, 2016, with a fair market value at the date of grant of $7,845,808.

The following table summarizes information about nonvested restricted stock activity.

Year ended September 30,	2016				2015				2014
Non-vested Restricted Stock	Outstanding		Weighted Average Fair Value		Outstanding		Weighted Average Fair Value		Outstanding		Weighted Average Fair Value
Outstanding at beginning of period	521,302		$	15.03	515,845		$	14.10	480,904		$	11.52
Granted	229,450		17.20		301,750		$	14.26	300,500		15.43
Vested	(165,965	)	15.96		(223,043	)	13.24		(202,014	)	11.68
Forfeited	(94,424	)	13.64		(73,250	)	10.72		(63,545	)	8.50
Outstanding at end of period	490,363		$	16.00	521,302		$	15.03	515,845		$	14.10

Compensation expense related to restricted stock awards was $3,357,108, $3,271,564, and $3,085,081 for the years ended 2016, 2015 and 2014, respectively.

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Stockholders' Equity

12 Months Ended

Sep. 30, 2016

Equity [Abstract]

Stockholders' Equity

STOCKHOLDERS' EQUITY

The Company and the Bank are subject to various regulatory capital requirements. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the following table) of Common Equity Tier 1, Tier 1 and Total capital to risk weighted assets (as defined in the regulations) and Tier 1 capital to average assets (as defined in the regulations). Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary action by regulators that, if undertaken, could have a direct material effect on the Company's financial statements. The Company and the Bank are also subject to certain restrictions on the amount of dividends that they may declare without prior regulatory approval.

As of September 30, 2016 and 2015, the Company and the Bank met all capital adequacy requirements to which they are subject, and the OCC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum Common Equity Tier 1, Tier 1 risk-based, Total risk-based and Tier 1 leverage ratios as set forth in the following table. The Bank's actual capital amounts and ratios as of these dates are also presented. There are no conditions or events since that management believes have changed the Bank's categorization.

	Actual				Capital Adequacy Guidelines		Categorized as Well Capitalized Under Prompt Corrective Action Provisions
	Capital		Ratio		Ratio		Ratio
September 30, 2016	(In thousands)
Common Equity Tier 1 risk-based capital ratio:
The Company	$	1,690,380	17.54	%	4.50	%	NA
The Bank	1,668,828		17.32		4.50		6.50	%
Tier 1 risk-based capital ratio:
The Company	1,690,380		17.54		6.00		NA
The Bank	1,668,828		17.32		6.00		8.00
Total risk-based capital ratio:
The Company	1,807,740		18.76		8.00		NA
The Bank	1,786,188		18.54		8.00		10.00
Tier 1 leverage ratio:
The Company	1,690,380		11.60		4.00		NA
The Bank	1,668,828		11.45		4.00		5.00
September 30, 2015
Common Equity Tier 1 risk-based capital ratio:
The Company	$	1,658,985	18.81	%	4.50	%	NA
The Bank	1,652,569		18.73		4.50		6.50	%
Tier 1 risk-based capital ratio:
The Company	1,658,985		18.81		6.00		NA
The Bank	1,652,569		18.73		6.00		8.00
Total risk-based capital ratio:
The Company	1,769,587		20.07		8.00		NA
The Bank	1,763,171		19.98		8.00		10.00
Tier 1 leverage ratio:
The Company	1,658,985		11.71		4.00		N/A
The Bank	1,652,569		11.66		4.00		5.00

At periodic intervals, the Federal Reserve, the OCC and the FDIC routinely examine the Company's and the Bank's financial statements as part of their oversight. Based on their examinations, these regulators can direct that the Company's or Bank's financial statements be adjusted in accordance with their findings.

The federal banking agencies released new regulatory capital rules which became effective on January 1, 2015. These new rules raised the minimum capital ratios and established new criteria for regulatory capital. Minimum capital ratios for four measures are now established for capital adequacy purposes as indicated in the table above. The Common Equity Tier 1 capital ratio is new; it recognizes common equity as the highest form of capital. The denominator for all except the leverage ratio is risk weighted assets. The new rules also set forth a "capital conversation buffer" of up to 2.5%. In the event that a bank's capital levels fall below the minimum ratios plus these buffers, restrictions can be placed on the bank by its regulators. These restrictions include reducing dividend payments, share-backs and staff bonus payments. The purpose of these buffers is to require banks to build up capital outside of periods of stress that can be drawn down during periods of stress. As a result, even during periods where losses are incurred, the minimum capital ratios can still be met. The new capital rules detail a phase-in period for the new minimum ratios and the capital buffers before the full minimum ratios take effect in 2019. The Company has calculated its capital ratios using the new rules since March 31, 2015 and the change did not have a material impact on its consolidated financial statements. There are also new standards for Adequate and Well Capitalized criteria that are used for "Prompt Corrective Action" purposes. To remain categorized as well capitalized, the Bank must maintain minimum Common Equity Tier 1 risk-based, Tier 1 risk-based, Total risk-based and Tier 1 leverage ratios as set forth in the above table. These rules are further described in the 10-K report under "Washington Federal, National Association (Bank) - Regulatory Capital Requirements". Both the Company and the Bank have sufficient capital to meet these new rules.

The Company and the Bank are subject to regulatory restrictions on paying dividends.

The Company has an ongoing stock repurchase program and 3,867,563 shares were repurchased during 2016 at a weighted average price of $22.72. In 2015, 5,841,204 shares were repurchased at a weighted average price of $21.70. As of September 30, 2016, Management had authorization from the Board of Directors to repurchase up to 5,039,310 additional shares.

In connection with the 2008 Troubled Asset Relief Program ("TARP"), the Company issued 1,707,456 warrants to purchase common stock at an exercise price of $17.57. In September 2016, the Company repurchased 892,240 of these warrants with a value of $7,718,158. Warrants remaining outstanding were 808,616 as of September 30, 2016 and 1,700,856 as of September 30, 2015, and they have an expiration date of November 14, 2018. The outstanding warrants are considered in the calculation of diluted shares outstanding using the treasury stock method.

The following table sets forth information regarding earnings per share calculations.

Year ended September 30,	2016		2015		2014
Weighted average shares outstanding	91,399,038		95,644,639		101,154,030
Weighted average dilutive warrants	440,366		340,016		352,171
Weighted average dilutive options	73,514		69,304		84,150
Weighted average diluted shares	91,912,918		96,053,959		101,590,351
Net income (In thousands)	$	164,049	$	160,316	$	157,364
Basic EPS	$	1.79	$	1.68	$	1.56
Diluted EPS	1.78		1.67		1.55

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Financial Information - Washington Federal, INC.

12 Months Ended

Sep. 30, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Financial Information - Washington Federal, INC.

FINANCIAL INFORMATION – WASHINGTON FEDERAL, INC.

The following Washington Federal, Inc. (parent company only) financial information should be read in conjunction with the other notes to the Consolidated Financial Statements.

Condensed Statements of Financial Condition
	September 30, 2016		September 30, 2015
	(In thousands)
Assets
Cash	$	24,300	$	7,628
Other assets	15		—
Investment in subsidiary	1,954,179		1,949,262
Total assets	$	1,978,494	$	1,956,890
Liabilities
Other liabilities	$	2,763	$	1,211
Total liabilities	2,763		1,211
Stockholders’ equity
Total stockholders’ equity	1,975,731		1,955,679
Total liabilities and stockholders’ equity	$	1,978,494	$	1,956,890

Condensed Statements of Operations
Twelve Months Ended September 30,	2016		2015			2014
	(In thousands)
Income
Dividends from subsidiary	$	148,000	$	175,000		$	70,000
Total Income	148,000		175,000			70,000
Expense
Miscellaneous	435		439			485
Total expense	435		439			485
Net income (loss) before equity in undistributed net income (loss) of subsidiary	147,565		174,561			69,515
Equity in undistributed net income of subsidiary	16,336		(14,402		)	87,675
Income before income taxes	163,901		160,159			157,190
Income tax benefit (expense)	148		157			174
Net income	$	164,049	$	160,316		$	157,364

Condensed Statements of Cash Flows
Twelve Months Ended September 30,	2016			2015			2014
	(In thousands)
Cash Flows From Operating Activities
Net income	$	164,049		$	160,316		$	157,364
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiaries	(12,677		)	32,375			(87,943		)
Decrease (increase) in other assets	(15		)	—			1
Increase in other liabilities	1,552			(13,189		)	4,152
Net cash provided by (used in) operating activities	152,909			179,502			73,574
Cash Flows From Financing Activities
Proceeds from exercise of common stock options and related tax benefit	9,283			2,070			10,252
Warrants purchased	(7,744		)	—			—
Treasury stock purchased	(87,850		)	(126,728		)	(104,291		)
Dividends paid on common stock	(49,926		)	(51,111		)	(42,065		)
Net cash provided by (used in) financing activities	(136,237		)	(175,769		)	(136,104		)
Increase (decrease) in cash	16,672			3,733			(62,530		)
Cash at beginning of year	7,628			3,895			66,425
Cash at end of year	$	24,300		$	7,628		$	3,895

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Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Sep. 30, 2016

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Data (Unaudited)

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

The following is a summary of the unaudited interim results of operations by quarter for the years presented.

Twelve Months Ended September 30, 2016	First Quarter		Second Quarter			Third Quarter			Fourth Quarter
	(In thousands, except per share data)
Interest income	$	135,124	$	135,063		$	133,735		$	132,872
Interest expense	28,255		28,738			29,495			30,056
Net interest income	106,869		106,325			104,240			102,816
Provision (release) for loan losses	—		(1,500		)	(1,650		)	(3,100		)
Other operating income (including REO gain (loss), net)	12,055		14,623			15,573			14,830
Other operating expense	64,509		59,226			56,305			55,407
Income before income taxes	54,415		63,222			65,158			65,339
Income tax expense	19,317		21,499			22,154			21,115
Net income	$	35,098	$	41,723		$	43,004		$	44,224
Basic earnings per share	$	0.38	$	0.45		$	0.47		$	0.49
Diluted earnings per share	0.38		0.45			0.47			0.49
Cash dividends paid per share	0.13		0.14			0.14			0.14

Twelve Months Ended September 30, 2015	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
	(In thousands, except per share data)
Interest income	$	132,741		$	132,630		$	129,300		$	135,339
Interest expense	30,558			28,750			28,735			28,486
Net interest income	102,183			103,880			100,565			106,853
Provision (release) for loan losses	(5,500		)	(3,949		)	(1,932		)	219
Other operating income (REO expense)	5,695			12,314			14,999			16,719
Other operating expense	53,600			57,324			56,719			57,208
Income before income taxes	59,778			62,819			60,777			66,145
Income tax expense	21,371			22,458			21,727			23,647
Net income	$	38,407		$	40,361		$	39,050		$	42,498
Basic earnings per share	$	0.39		$	0.42		$	0.41		$	0.46
Diluted earnings per share	0.39			0.42			0.41			0.45
Cash dividends paid per share	0.15			0.13			0.13			0.13

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

Fiscal period

The Company's fiscal year end is September 30th. All references to 2016, 2015 and 2014 represent balances as of September 30, 2016, September 30, 2015 and September 30, 2014, or activity for the fiscal years then ended.

Cash and cash equivalents

Cash and cash equivalents. Cash and cash equivalents include cash on hand, amounts due from banks, overnight investments and repurchase agreements with an initial maturity of three months or less.

Investments and mortgage-backed securities

Investments and mortgage-backed securities. The Company accounts for investments and mortgage-backed securities in two categories: held-to-maturity and available-for-sale. Premiums and discounts on investments are deferred and recognized into income over the life of the asset using the effective interest method.

Held-to-maturity securities are accounted for at amortized cost, but the Company must have both the positive intent and the ability to hold those securities to maturity. There are very limited circumstances under which securities in the held-to-maturity category can be sold without jeopardizing the cost basis of accounting for the remainder of the securities in this category.

Available-for-sale securities are accounted for at fair value. Gains and losses realized on the sale of these securities are accounted for based on the specific identification method. Unrealized gains and losses for available-for-sale securities are excluded from earnings and reported net of the related tax effect in the accumulated other comprehensive income component of stockholders' equity.

Realized gains and losses on securities sold as well as other than temporary impairment charges, if any, are shown on the Consolidated Statements of Operations under the Other Income heading. Management evaluates debt and equity securities for other than temporary impairment on a quarterly basis based on the securities' current credit quality, market interest rates, term to maturity and management's intent and ability to hold the securities until the net book value is recovered.

Loans receivable

Loans receivable. Loans that are performing in accordance with their contractual terms are carried at their amortized cost and expected interest is accrued. The Bank also receives fees for originating loans in addition to various fees and charges related to existing loans, which may include prepayment charges, late charges and assumption fees.

When a borrower fails to make a required payment on a loan, the Bank attempts to cure the deficiency by contacting the borrower. Contact is made after a payment is 30 days past its grace period. In most cases, deficiencies are cured promptly. If the delinquency is not cured within 90 days, the Bank may institute appropriate action to foreclose on the property. If foreclosed, the property is sold at a public sale and may be purchased by the Bank.

Restructured loans. The Bank will consider modifying the interest rates and terms of a loan if it determines that a modification is a better alternative to foreclosure. Most troubled debt restructured ("TDR") loans are accruing and performing loans where the borrower has proactively approached the Bank about modifications due to temporary financial difficulties. Each request is individually evaluated for merit and likelihood of success. The concession for these loans is typically a payment reduction through a rate reduction of 100 to 200 bps for a specific term, usually six to twelve months. Interest-only payments may also be approved during the modification period. Principal forgiveness is generally not an available option for restructured loans. Before granting approval to modify a loan in a TDR, the borrower’s ability to repay is evaluated, including: current income levels and debt to income ratio, borrower’s credit score, payment history of the loan, and updated evaluation of the secondary repayment source. The Bank also modifies some loans that are not classified as TDRs as the modification is due to a restructuring where the effective interest rate on the debt is reduced to reflect a decrease in market interest rates.

Non accrual loans. Loans are placed on nonaccrual status when, in the judgment of management, the probability of collection of interest is deemed to be insufficient to warrant further accrual. When a loan is placed on nonaccrual status, previously accrued but unpaid interest is deducted from interest income. The Bank does not accrue interest on loans 90 days or more past due. If payment is made on a loan so that the loan becomes less than 90 days past due, and the Bank expects full collection of principal and interest, the loan is returned to full accrual status. Any interest ultimately collected is credited to income in the period of recovery. A loan is charged-off when the loss is estimable and it is confirmed that the borrower is not expected be able to meet contractual obligations.

If a consumer loan is on non-accrual status before becoming a TDR it will stay on non-accrual status following restructuring until it has been performing for at least six months, at which point it may be moved to accrual status. If a loan is on accrual status before it becomes a TDR, and management concludes that full repayment is probable based on internal evaluation, it will remain on accrual status following restructuring. If the restructured consumer loan does not perform, it is placed on non-accrual status when it is 90 days delinquent. For commercial loans, six consecutive payments on newly restructured loan terms are required prior to returning the loan to accrual status. In some instances after the required six consecutive payments are made management will conclude that collection of the entire principal and interest due is still in doubt. In those instances, the loan will remain on non-accrual.

Impaired loans. Impaired loans consist of loans receivable that are not expected to have their principal and interest repaid in accordance with their contractual terms. This includes TDRs that are on non-accrual status. Collateral dependent impaired loans are measured using the fair value of the collateral less selling costs. Non-collateral dependent loans are measured at the present value of expected future cash flows.

Deferred fees and discounts on loans. Loan discounts and loan fees are deferred and recognized over the life of the loans using the effective interest method.

Allowance for loan losses. The Bank maintains an allowance for loan losses to absorb losses inherent in the loan portfolio. The allowance is based on ongoing, quarterly assessments of the probable and estimable losses inherent in the loan portfolio. The Bank's general methodology for assessing the appropriateness of the allowance is to apply a loss percentage factor to the different loan types. The loss percentage factor is made up of two parts - the historical loss factor (“HLF”) and the qualitative loss factor (“QLF”). The HLF takes into account historical charge-offs by loan type. The Bank uses an average of historical loss rates for each loan category multiplied by a loss emergence period. This is the likely period of time during which a residential or commercial loan borrower experiencing financial difficulties might deplete their cash prior to becoming delinquent on their loan, plus the period of time that it takes the bank to work out the loans. The QLF are based on management's continuing evaluation of the pertinent factors underlying the quality of the loan portfolio, including changes in the size and composition of the loan portfolio, actual loan loss experience, current economic conditions, collateral values, geographic concentrations, seasoning of the loan portfolio, specific industry conditions, and the duration of the current business cycle. These factors are considered by loan type.

Specific allowances are established for loans which are individually evaluated, in cases where management has identified significant conditions or circumstances related to a loan that management believes indicate the probability that a loss has been incurred. The Bank has also established a reserve for unfunded commitments.

The recovery of the carrying value of loans is susceptible to future market conditions beyond the Bank's control, which may result in losses or recoveries differing from those estimated.

Acquired credit impaired loans. Acquired credit impaired loans are accounted for under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 310-30 when there is evidence of credit deterioration since origination and for which it is probable, at acquisition, that the Company would be unable to collect all contractually required payments. Interest income, through accretion of the difference between the carrying amount of the loans and the expected cash flows, are recognized on all acquired loans.

Covered assets. Covered loans consist of single family loans acquired from Horizon Bank in 2010 and certain loans acquired from South Valley Bank and Trust ("SVBT") in fiscal 2013 that were originally recorded at their estimated fair value at the time acquired. Loans that were classified as non-performing loans by Horizon Bank and SVBT are no longer classified as non-performing because, at acquisition, the carrying value of these loans was adjusted to reflect fair value and are covered under the FDIC loss sharing agreements. Management believes that the book value reflects an amount that will ultimately be collected. Covered real estate held for sale represents the foreclosed properties that were originally Horizon Bank loans or certain SVBT loans. Covered real estate held for sale is carried at the estimated fair value of the repossessed real estate. The covered loans and covered real estate held for sale are collectively referred to as “covered assets." When FDIC loss share agreements expire, any remaining loans will be transferred to the non covered portfolio. Covered loans are included within loans receivable on the statement of financial condition. Covered real estate owned are included within real estate owned on the statement of financial condition.

FDIC indemnification asset. FDIC indemnification asset is the receivable recorded due to the guarantee provided by the FDIC on the covered assets. This asset declines due to collections from the FDIC on claims or the eventual expiration of the FDIC loss share agreements. The FDIC indemnification asset is included within other assets on the statement of financial condition.

Client derivatives, long term borrowing hedges, and commercial loan hedge

Client derivatives. Interest rate swap agreements are provided to certain clients who desire to convert their obligations from variable to fixed interest rates. Under these agreements, the Bank enters into a variable-rate loan agreement with a customer in addition to a swap agreement, and then enters into a corresponding swap agreement with a third party in order to offset its exposure on the customer swap agreement. As the interest rate swap agreements with the customers and third parties are not designated as hedges under FASB ASC 815, Derivatives and Hedging, the instruments are marked to market in earnings. The change in fair value of the offsetting swaps are included in interest income and interest expense and there is no impact on net income. There is fee income earned on the swaps that is included in loan fee income.

Long term borrowing hedges. The Company has entered into interest rate swaps to convert a series of future short-term borrowings to fixed-rate payments. These interest rate swaps qualify as cash flow hedging instruments under ASC 815 so gains and losses are recorded in Other Comprehensive Income to the extent the hedge is effective. Gains and losses on the interest rate swaps are reclassified from OCI to earnings in the period the hedged transaction affects earnings and are included in the same income statement line item that the hedged transaction is recorded.

Commercial loan hedges. The Company has entered into interest rate swaps to hedge long term fixed rate commercial loans. These hedges qualify as fair value hedges under ASC 815 and provide for matching of the recognition of the gains and losses on the interest rate swap and the related hedged loan.

Premises and equipment

Premises and equipment. Premises and equipment are stated at cost, less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the respective assets. Expenditures are capitalized for betterments and major renewals. Charges for ordinary maintenance and repairs are expensed to operations as incurred.

Real estate owned

Real estate owned. Real estate properties acquired through foreclosure of loans or through acquisitions are recorded initially at fair value less selling costs and are subsequent recorded at lower of cost or fair value. Any gains (losses) are shown on the real estate acquired through foreclosure line item.

Intangible assets

Intangible assets. Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. The core deposit intangibles are acquired assets that lack physical substance but can be distinguished from goodwill. Goodwill is evaluated for impairment on an annual basis during the fourth quarter. Other intangible assets are amortized over their estimated lives and are subject to impairment testing when events or circumstances change. If circumstances indicate that the carrying value of the assets may not be recoverable, an impairment charge could be recorded. The Bank amortizes the core deposit intangibles over their estimated lives using an accelerated method.

Income taxes

Income taxes. Income taxes are accounted for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, a deferred tax asset or liability is determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The provision for income taxes includes current and deferred income tax expense based on net income adjusted for temporary and permanent differences such as depreciation, interest on state and municipal securities, and affordable housing tax credits. Income tax related interest and penalties, if applicable, and amortization of affordable housing tax credit investments are recorded within income tax expense.

Accounting for stock-based compensation

Accounting for stock-based compensation. We recognize in the statement of operations the grant-date fair value of stock options and other equity-based forms of compensation issued to employees over the employees' requisite service period (generally the vesting period). The requisite service period may be subject to performance conditions. Stock options and restricted stock awards generally vest ratably over three to ten years and are recognized as expense over that same period of time. The exercise price of each option equals the market price of the Company's common stock on the date of the grant, and the maximum term is ten years. No stock options were granted in 2016, 2015 or 2014.

Certain grants of restricted stock are subject to performance-based and market-based vesting as well as other approved vesting conditions and cliff vest based on those conditions. Compensation expense is recognized over the service period to the extent restricted stock awards are expected to vest.

Business segments

Business segments. As the Company manages its business and operations on a consolidated basis, management has determined that there is one reportable business segment.

New accounting pronouncements

In August 2016, the FASB issued Accounting Standards Update ("ASU") 2016-15, Classification of Certain Cash Receipts and Cash Payments. The amendments in this ASU address eight specific cash flow issues with the objective of reducing diversity in practice. The specific issues identified include: debt prepayments or extinguishment costs; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This ASU is effective for fiscal years beginning after December 15, 2017 including interim periods within that reporting period; however, early adoption is permitted. The Company is currently evaluating the guidance to determine its adoption method and does not expect this guidance to have a material impact on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses. The amendments in this ASU were issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to- maturity debt securities, trade and other receivables, net investments in leases and other commitments to extend credit held by a reporting entity at each reporting date. The amendments require that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The ASU eliminates the current framework of recognizing probable incurred losses and instead requires an entity to use its current estimate of all expected credit losses over the contractual life. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets.

For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, an allowance for expected credit losses is recorded as an adjustment to the cost basis of the asset. Subsequent changes in estimated cash flows would be recorded as an adjustment to the allowance and through the statement of income.

Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security's cost basis.

The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For most debt securities, the transition approach requires a cumulative-effect adjustment to the statement of financial position as of the beginning of the first reporting period the guidance is effective. For other-than-temporarily impaired debt securities and PCD assets, the guidance will be applied prospectively. The Company is currently evaluating the provisions of this ASU to determine the impact the new standard will have on the Company's consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation- Improvements to Employee Share-Based Payment Accounting, which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under the guidance, income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity should also recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. In regards to forfeitures, the entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. This ASU is effective for fiscal years beginning after December 15, 2016 including interim periods within that reporting period; however, early adoption is permitted. The Company is currently evaluating the guidance to determine its adoption method and does not expect this guidance to have a material impact on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases. The amendments require lessees to recognize a lease liability, which is a lessee's obligation to make lease payments arising from a lease, and a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. The guidance also simplifies the accounting for sale and leaseback transactions. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently evaluating the provisions of this ASU to determine the impact the new standard will have on the Company's consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, to require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this ASU also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017 including interim periods within that reporting period. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments, which will require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments in ASU 2015-16 are effective for years beginning after December 15, 2015. Early adoption is permitted for reporting periods for which financial statements have not been issued. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

In April 2015, the FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in Cloud Computing Arrangement. The ASU was issued to clarify a customer's accounting for fees paid in a cloud computing arrangement. The amendments provide guidance to customers in determining whether a cloud computing arrangement includes a software license that should be accounted for as internal-use software. If the arrangement does not contain a software license, it would be accounted for as a service contract. The guidance in this ASU is effective for interim and annual periods beginning after December 15, 2015 and can be adopted either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The guidance in this update supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the codification. For public companies, this update was to be effective for interim and annual periods beginning after December 15, 2016. However, in August 2015, the FASB issued ASU 2015-14, which delayed the effective date of ASU 2014-09 by one year and permits companies to voluntarily adopt the new standard as of the original effective date. The Company does not expect this guidance to have a material impact on its consolidated financial statements.

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

Schedule of goodwill and intangible assets

The table below provides detail regarding the Company's intangible assets.

	Goodwill		Core Deposit Intangible			Total
	(In thousands)
Balance at September 30, 2014	$	291,503	$	11,406		$	302,909
Amortization	—		(3,551		)	(3,551		)
Balance at September 30, 2015	291,503		7,855			299,358
Amortization	—		(2,369		)	(2,369		)
Balance at September 30, 2016	$	291,503	$	5,486		$	296,989

Schedule of future amortization expense

The table below presents the estimated core deposit intangible asset amortization expense for the next five years.

Fiscal Year	Expense
	(In thousands)
2017	$	1,648
2018	1,204
2019	1,157
2020	1,157
2021	320

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Investment Securities (Tables)

12 Months Ended

Sep. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Investments by contractual maturity date

The tables below provide detail regarding the amortized cost and fair value of available-for-sale and held-to-maturity investment securities.

September 30, 2016	Amortized Cost		Gross Unrealized					Fair Value		Yield
			Gains		Losses
	(In thousands)
Available-for-sale securities
U.S. government and agency securities due
Within 1 year	$	21,284	$	—	$	(59	)	$	21,225	0.81	%
1 to 5 years	12,477		1,027		(11		)	13,493		7.94
5 to 10 years	48,134		—		(1,589		)	46,545		1.14
Over 10 years	182,051		27		(3,990		)	178,088		1.33
Equity Securities
Within 1 year	—		—		—			—		—
1 to 5 years	100,422		1,402		—			101,824		1.90
Corporate debt securities due
Within 1 year	278,094		325		(53		)	278,366		1.33
1 to 5 years	63,481		928		(113		)	64,296		2.47
5 to 10 years	69,955		—		(2,417		)	67,538		1.96
Over 10 years	50,000		938		—			50,938		3.00
Municipal bonds due
1 to 5 years	2,315		2		—			2,317		1.23
5 to 10 years	1,335		38		—			1,373		2.05
Over 10 years	20,363		3,617		—			23,980		6.45
Mortgage-backed securities
Agency pass-through certificates	978,955		17,118		(3,032		)	993,041		2.58
Commercial MBS	80,318		—		(448		)	79,870		1.91
	1,909,184		25,422		(11,712		)	1,922,894		2.22
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	1,417,599		24,171		(214		)	1,441,556		3.18
	1,417,599		24,171		(214		)	1,441,556		3.18
	$	3,326,783	$	49,593	$	(11,926	)	$	3,364,450	2.62	%

September 30, 2015	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	$	105,065	$	1,923	$	(274	)	$	106,714	1.74	%
5 to 10 years	119,071		35		(1,247		)	117,859		1.54
Over 10 years	262,832		—		(4,941		)	257,891		1.23
Equity Securities
Within 1 year	500		17		—			517		1.80
1 to 5 years	99,922		1,513		—			101,435		1.90
Corporate debt securities due
Within 1 year	24,787		191		—			24,978		0.53
1 to 5 years	311,435		1,190		(58		)	312,567		0.88
5 to 10 years	100,000		876		(3,524		)	97,352		1.47
Over 10 years	69,950		953		—			70,903		3.00
Municipal bonds due
1 to 5 years	2,285		8		—			2,293		1.23
5 to 10 years	1,303		7		—			1,310		2.05
Over 10 years	20,382		3,138		—			23,520		6.45
Mortgage-backed securities
Agency pass-through certificates	1,144,787		18,222		(2,491		)	1,160,518		2.48
Commercial MBS	103,131		85		(510		)	102,706		1.51
	2,365,450		28,158		(13,045		)	2,380,563		1.97
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	1,643,216		10,516		(16,312		)	1,637,420		3.19
	1,643,216		10,516		(16,312		)	1,637,420		3.19
	$	4,008,666	$	38,674	$	(29,357	)	$	4,017,983	2.46	%

Schedule of unrealized losses and fair value of securities

The following table shows the gross unrealized losses and fair value of securities at September 30, 2016 and September 30, 2015, by length of time that individual securities in each category have been in a continuous loss position. Management believes that the declines in fair value of these investments are not an other than temporary impairment as these losses are due to a change in interest rates rather than any credit deterioration. The impairment is also deemed to be temporary because: 1) the Bank does not intend to sell the security, and 2) it is not more likely than not that it will be required to sell the security before recovery of the entire amortized cost basis of the security.

	September 30, 2016
	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 debt securities	$	—		$	—	$	(2,582	)	$	100,467	$	(2,582	)	$	100,467
U.S. agency securities	(11		)	3,167		(5,638		)	220,613		(5,649		)	223,780
Agency pass-through certificates	(1,278		)	301,030		(2,417		)	232,407		(3,695		)	533,437
	$	(1,289	)	$	304,197	$	(10,637	)	$	553,487	$	(11,926	)	$	857,684

	September 30, 2015
	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 debt securities	$	(183	)	$	72,862	$	(3,399	)	$	46,601	$	(3,582	)	$	119,463
U.S. agency securities	(5,010		)	336,243		(1,452		)	57,344		(6,462		)	393,587
Agency pass-through certificates	(1,036		)	169,541		(18,277		)	1,193,463		(19,313		)	1,363,004
	$	(6,229	)	$	578,646	$	(23,128	)	$	1,297,408	$	(29,357	)	$	1,876,054

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Loans Receivable (Tables)

12 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Schedule of loans receivable (excluding covered loans)

The following table is a summary of loans receivable.

	September 30, 2016				September 30, 2015
	(In thousands)				(In thousands)
Non-Acquired loans
Single-family residential	$	5,621,066	51.3	%	$	5,651,845	57.5	%
Construction	1,110,411		10.1		200,509		2.0
Construction - custom	473,069		4.3		396,307		4.0
Land - acquisition & development	116,156		1.1		94,208		1.0
Land - consumer lot loans	101,853		0.9		103,989		1.1
Multi-family	1,118,801		10.2		1,125,722		11.5
Commercial real estate	956,164		8.7		986,270		10.0
Commercial & industrial	946,648		8.6		612,836		6.2
HELOC	134,785		1.2		127,646		1.3
Consumer	137,450		1.3		194,655		2.0
Total non-acquired loans	10,716,403		97.9	%	9,493,987		96.6	%
Acquired loans	115,394		1.1		166,293		1.7
Credit impaired acquired loans	89,837		0.8		87,081		0.9
Covered loans	28,974		0.3		75,909		0.8
Total gross loans	10,950,608		100	%	9,823,270		100	%
Less:
Allowance for probable losses	113,494				106,829
Loans in process	879,484				476,796
Discount on acquired loans	11,306				30,095
Deferred net origination fees	35,404				38,916
Total loan contra accounts	1,039,688				652,636
Net Loans	$	9,910,920			$	9,170,634

Schedule of fixed and adjustable rate loans

The following summary breaks down the Company's fixed rate and adjustable rate loans by time to maturity or to rate adjustment.

September 30, 2016
Fixed-Rate			Adjustable-Rate
Term To Maturity	Gross Loans		Term To Rate Adjustment	Gross Loans
	(In thousands)			(In thousands)
Within 1 year	$	29,428	Less than 1 year	$	1,362,480
1 to 3 years	326,859		1 to 3 years	1,457,584
3 to 5 years	192,202		3 to 5 years	552,402
5 to 10 years	693,099		5 to 10 years	625,852
10 to 20 years	1,020,654		10 to 20 years	—
Over 20 years	4,690,048		Over 20 years	—
	$	6,952,290		$	3,998,318

Schedule of loans receivable by geographic area

The following tables provide information regarding loans receivable by loan category and geography.

September 30, 2016	Single - family residential		Multi- family		Land - A & D		Land - lot loans		Construction - custom		Construction		Commercial real estate		Commercial and industrial		Consumer		HELOC		Total
	(In thousands)
Washington	$	2,926,555	$	287,999	$	74,017	$	59,371	$	277,877	$	470,720	$	482,802	$	500,540	$	41,212	$	88,681	$	5,209,774
Oregon	664,932		332,311		10,953		12,403		52,709		122,958		171,093		203,377		3,152		13,711		1,587,599
Arizona	546,080		292,830		4,142		9,014		45,536		43,300		38,302		47,584		309		15,838		1,042,935
Other	216,902		2,448		443		11,157		11,228		110,843		277,438		94,215		91,874		1,030		817,578
Utah	474,390		47,374		958		3,448		33,036		143,246		11,499		46,497		39		7,573		768,060
Idaho	284,212		33,043		4,761		3,910		17,120		64,510		34,075		16,627		141		6,973		465,372
New Mexico	186,061		97,699		12,417		1,274		18,128		47,763		68,385		10,860		1,110		13,790		457,487
Texas	202,541		29,458		10,806		979		10,610		107,071		6,151		42,594		1,085		305		411,600
Nevada	157,154		1,127		—		3,012		6,825		—		3,894		16,295		80		1,816		190,203
	$	5,658,827	$	1,124,289	$	118,497	$	104,568	$	473,069	$	1,110,411	$	1,093,639	$	978,589	$	139,002	$	149,717	$	10,950,608

Percentage by geographic area
September 30, 2016	Single - family residential		Multi- family		Land - A & D		Land - lot loans		Construction - custom		Construction		Commercial real estate		Commercial and industrial		Consumer		HELOC		Total
	As % of total gross loans
Washington	26.8	%	2.6	%	0.7	%	0.5	%	2.5	%	4.3	%	4.4	%	4.6	%	0.4	%	0.8	%	47.6	%
Oregon	6.1		3.0		0.1		0.1		0.5		1.1		1.6		1.9		—		0.1		14.5
Arizona	5.0		2.7		—		0.1		0.4		0.4		0.3		0.4		—		0.2		9.5
Other	2.0		—		—		0.2		0.1		1.0		2.5		0.9		0.8		—		7.5
Utah	4.3		0.5		—		—		0.3		1.3		0.1		0.4		—		0.1		7.0
Idaho	2.5		0.3		—		—		0.2		0.6		0.3		0.2		—		0.1		4.2
New Mexico	1.8		0.9		0.1		—		0.2		0.4		0.6		0.1		—		0.1		4.2
Texas	1.8		0.3		0.1		—		0.1		1.0		0.1		0.4		—		—		3.8
Nevada	1.4		—		0.1		—		0.1		—		—		0.1		—		—		1.7
	51.7	%	10.3	%	1.1	%	0.9	%	4.4	%	10.1	%	9.9	%	9.0	%	1.2	%	1.4	%	100	%

Percentage by geographic area as a % of each loan type
September 30, 2016	Single - family residential		Multi- family		Land - A & D		Land - lot loans		Construction - custom		Construction		Commercial real estate		Commercial and industrial		Consumer		HELOC
	As % of total gross loans
Washington	51.6	%	25.7	%	62.5	%	56.8	%	58.9	%	42.4	%	44.0	%	51.0	%	29.6	%	59.1	%
Oregon	11.8		29.6		9.2		11.9		11.1		11.1		15.6		20.8		2.3		9.2
Arizona	9.7		26.0		3.5		8.6		9.6		3.9		3.5		4.9		0.2		10.6
Other	3.8		0.2		0.4		10.7		2.4		10.0		25.4		9.6		66.1		0.7
Utah	8.4		4.2		0.8		3.3		7.0		12.9		1.1		4.8		—		5.1
Idaho	5.0		2.9		4.0		3.7		3.6		5.8		3.1		1.7		0.1		4.7
New Mexico	3.3		8.7		10.5		1.2		3.8		4.3		6.3		1.1		0.8		9.2
Texas	3.6		2.6		9.1		0.9		2.2		9.6		0.6		4.4		0.8		0.2
Nevada	2.8		0.1		—		2.9		1.4		—		0.4		1.7		0.1		1.2
	100.0	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%

Schedule of impaired loans, loan commitments and loans serviced

The following table provides additional information on impaired loans, loan commitments and loans serviced for others.

	September 30, 2016		September 30, 2015
	(In thousands)
Recorded investment in impaired loans	$	285,243	$	341,579
TDRs included in impaired loans	261,531		302,713
Allocated reserves on impaired loans	1,980		2,323
Specific reserves on impaired loans	366		275
Average balance of impaired loans for year ended	265,771		333,815
Interest income from impaired loans for year ended	11,314		14,855
Outstanding fixed-rate origination commitments	331,947		230,869
Gross loans serviced for others	80,896		72,083

Non accrual loans held by the company

The following table sets forth information regarding non-accrual loans.

	September 30, 2016				September 30, 2015
	(In thousands)				(In thousands)
Non-accrual loans:
Single-family residential	$	33,148	78.2	%	$	59,074	87.1	%
Construction	—		—		754		1.1
Construction - custom	—		—		732		1.1
Land - acquisition & development	58		0.1		—		—
Land - consumer lot loans	510		1.2		1,273		1.9
Multi-family	776		1.8		2,558		3.8
Commercial real estate	7,100		16.7		2,176		3.2
Commercial & industrial	583		1.4		—		—
HELOC	239		0.6		563		0.8
Consumer	—		—		680		1.0
Total non-accrual loans	$	42,414	100	%	$	67,810	100	%

Aging of past due loans

The following table breaks down delinquent loans by loan category and delinquency bucket.

September 30, 2016	Amount of Loans		Days Delinquent Based on $ Amount of Loans										% based on $
Type of Loan	Net of Loans in Process		Current		30		60		90		Total
	(In thousands)
Non-acquired loans
Single-family residential	$	5,624,783	$	5,574,384	$	20,917	$	5,173	$	24,309	$	50,399	0.90	%
Construction	497,393		497,393		—		—		—		—		—
Construction - custom	229,957		229,419		538		—		—		538		0.23
Land - acquisition & development	88,662		88,662		—		—		—		—		—
Land - consumer lot loans	102,386		100,373		816		687		510		2,013		1.97
Multi-family	1,119,042		1,117,453		1,190		399		—		1,589		0.14
Commercial real estate	955,944		955,604		—		183		157		340		0.04
Commercial & industrial	947,703		947,661		—		42		—		42		—
HELOC	134,214		133,683		490		—		41		531		0.40
Consumer	136,835		135,926		705		124		80		909		0.66
	9,836,919		9,780,558		24,656		6,608		25,097		56,361		0.57
Acquired loans	115,394		114,770		124		2		498		624		0.54
Credit impaired acquired loans	89,837		84,625		227		142		4,843		5,212		5.80
Covered loans	28,974		22,891		—		262		5,821		6,083		20.99
Total Loans	$	10,071,124	$	10,002,844	$	25,007	$	7,014	$	36,259	$	68,280	0.68	%
Delinquency %			99.32%		0.25%		0.07%		0.36%		0.68%

Schedule of loan modifications

The following table provides information related to loans that were modified in a TDR during the periods presented.

	Twelve Months Ended September 30, 2016					Twelve Months Ended September 30, 2015
		Pre-Modification		Post-Modification			Pre-Modification		Post-Modification
		Outstanding		Outstanding			Outstanding		Outstanding
	Number of	Recorded		Recorded		Number of	Recorded		Recorded
Troubled Debt Restructurings:	Contracts	Investment		Investment		Contracts	Investment		Investment
		(In thousands)					(In thousands)
Single-family residential	120	$	23,541	$	23,541	62	$	13,378	$	13,378
Construction	—	—		—		2	701		701
Land - consumer lot loans	10	970		970		9	1,546		1,546
Commercial real estate	7	2,523		2,523		3	3,175		3,175
HELOC	1	126		126		1	50		50
Consumer	1	24		24		1	80		80
	139	$	27,184	$	27,184	78	$	18,930	$	18,930

The following table provides information on payment defaults occurring during the periods presented where the loan had been modified in a TDR within 12 months of the payment default.

	Twelve Months Ended September 30, 2016			Twelve Months Ended September 30, 2015
	Number of	Recorded		Number of	Recorded
TDRs That Subsequently Defaulted:	Contracts	Investment		Contracts	Investment
	(In thousands)			(In thousands)
Single-family residential	17	$	4,875	18	$	2,917
Construction	1	279		—	—
Land - consumer lot loans	5	606		2	301
Commercial real estate	2	326		—	—
	25	$	6,086	20	$	3,218

Schedule of changes in the accretable yield for credit impaired acquired loans

The following table shows the changes in accretable yield for acquired impaired loans and acquired non-impaired loans including covered loans for the years ended September 30, 2016 and 2015.

	Twelve Months Ended September 30, 2016												Twelve Months Ended September 30, 2015
	Acquired Impaired						Acquired Non-impaired						Acquired Impaired						Acquired Non-impaired
	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
	(In thousands)												(In thousands)
Beginning balance	$	72,705		$	111,300		$	7,204		$	187,080		$	97,125		$	135,826		$	14,513		$	275,862
Net reclassification from non-accretable	4,867			—			—			—			6,307			—			346			—
Accretion	(18,730		)	18,730			(2,982		)	2,982			(30,727		)	30,727			(7,655		)	7,655
Transfers to REO	—			(175		)	—			—			—			(2,975		)	—			(150		)
Payments received, net	—			(38,094		)	—			(58,930		)	—			(52,278		)	—			(96,287		)
Ending Balance	$	58,842		$	91,761		$	4,222		$	131,132		$	72,705		$	111,300		$	7,204		$	187,080

Schedule of activity for FDIC indemnification asset

The following table shows the year to date activity for the FDIC indemnification asset.

	Twelve Months Ended September 30, 2016			Twelve Months Ended September 30, 2015
	(In thousands)
Balance at beginning of year	$	16,275		$	36,860
Additions and impairment	—			(1,795		)
Payments received	(1,730		)	(720		)
Amortization	(2,012		)	(18,588		)
Accretion	236			518
Balance at end of year	$	12,769		$	16,275

XML

Allowance for Losses on Loans (Tables)

12 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Summary of activity in allowance for loan losses

The following tables summarize the activity in the allowance for loan losses.

Twelve Months Ended September 30, 2016	Beginning Allowance		Charge-offs			Recoveries		Provision & Transfers			Ending Allowance
	(In thousands)
Single-family residential	$	47,347	$	(3,106	)	$	3,251	$	(9,696	)	$	37,796
Construction	6,680		—			745		12,413			19,838
Construction - custom	990		(60		)	60		90			1,080
Land - acquisition & development	5,781		(42		)	8,220		(7,936		)	6,023
Land - consumer lot loans	2,946		(732		)	5		316			2,535
Multi-family	5,304		—			—		1,621			6,925
Commercial real estate	8,960		(103		)	1,812		(2,081		)	8,588
Commercial & industrial	24,980		(941		)	2,933		1,036			28,008
HELOC	902		(54		)	21		(56		)	813
Consumer	2,939		(962		)	2,018		(2,107		)	1,888
	$	106,829	$	(6,000	)	$	19,065	$	(6,400	)	$	113,494

Twelve Months Ended September 30, 2015	Beginning Allowance		Charge-offs			Recoveries		Provision & Transfers			Ending Allowance
	(In thousands)
Single-family residential	$	62,763	$	(5,524	)	$	13,403	$	(23,295	)	$	47,347
Construction	6,742		(388		)	120		206			6,680
Construction - custom	1,695		—			—		(705		)	990
Land - acquisition & development	5,592		(38		)	207		20			5,781
Land - consumer lot loans	3,077		(459		)	221		107			2,946
Multi-family	4,248		—			220		836			5,304
Commercial real estate	7,548		(1,711		)	735		2,388			8,960
Commercial & industrial	16,527		(3,354		)	1,374		10,433			24,980
HELOC	928		(66		)	2		38			902
Consumer	3,227		(3,060		)	3,688		(916		)	2,939
Covered loans	2,244		—			—		(2,244		)	—
	$	114,591	$	(14,600	)	$	19,970	$	(13,132	)	$	106,829

Summary of loans collectively and individually evaluated for impairment and related allocation of reserves

The following tables show a summary of loans collectively and individually evaluated for impairment and the related allocation of general and specific reserves.

September 30, 2016	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	$	37,536	$	5,585,912	0.7	%	$	260	$	19,629	1.3	%
Construction	19,838		498,450		4.0		—		—		—
Construction - custom	1,080		229,298		0.5		—		330		—
Land - acquisition & development	6,022		90,850		6.6		2		850		0.2
Land - consumer lot loans	2,535		92,828		2.7		—		558		—
Multi-family	6,911		1,091,974		0.6		13		1,505		0.9
Commercial real estate	8,497		957,380		0.9		91		11,157		0.8
Commercial & industrial	28,008		966,930		2.9		—		—		—
HELOC	813		133,203		0.6		—		239		—
Consumer	1,888		137,315		1.4		—		3		—
	$	113,128	$	9,784,140	1.2	%	$	366	$	34,271	1.1	%

 ___________________

(1) Excludes acquired loans with discounts sufficient to absorb potential losses and covered loans

September 30, 2015	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	$	47,073	$	5,595,752	0.8	%	$	275	$	51,718	0.5	%
Construction	6,680		124,679		5.4		—		5,441		—
Construction - custom	990		205,692		0.5		—		—		—
Land - acquisition & development	5,781		72,602		8.0		—		2,198		—
Land - consumer lot loans	2,946		93,103		3.2		—		10,824		—
Multi-family	5,304		1,062,194		0.5		—		5,348		—
Commercial real estate	8,960		844,691		1.1		—		8,826		—
Commercial & industrial	24,980		643,577		3.9		—		—		—
HELOC	902		126,594		0.7		—		1,072		—
Consumer	2,938		194,569		1.5		—		86		—
	$	106,554	$	8,963,453	1.2	%	$	275	$	85,513	0.3	%

 ___________________

(1) Excludes acquired loans with discounts sufficient to absorb potential losses and covered loans

Summary of loans based on credit quality indicators

The following tables provide information on loans based on credit quality indicators (defined above).

September 30, 2016	Internally Assigned Grade															Total
	Pass			Special mention			Substandard			Doubtful			Loss			Gross Loans
	(In thousands)
Non-acquired loans
Single-family residential	$	5,570,634		$	—		$	50,432		$	—		$	—		$	5,621,066
Construction	1,098,549			8,595			3,267			—			—			1,110,411
Construction - custom	473,069			—			—			—			—			473,069
Land - acquisition & development	110,125			—			6,031			—			—			116,156
Land - consumer lot loans	100,862			—			991			—			—			101,853
Multi-family	1,112,342			3,237			3,222			—			—			1,118,801
Commercial real estate	928,032			13,446			14,686			—			—			956,164
Commercial & industrial	900,571			7,160			38,917			—			—			946,648
HELOC	134,298			—			487			—			—			134,785
Consumer	137,367			—			83			—			—			137,450
Total non-acquired loans	10,565,849			32,438			118,116			—			—			10,716,403
Acquired loans	108,616			47			6,731			—			—			115,394
Credit impaired acquired loans	60,985			—			28,852			—			—			89,837
Covered loans	28,647			—			327			—			—			28,974
Total gross loans	$	10,764,097		$	32,485		$	154,026		$	—		$	—		$	10,950,608
Total grade as a % of total gross loans	98.3		%	0.3		%	1.4		%	—		%	—		%

September 30, 2015	Internally Assigned Grade															Total
	Pass			Special mention			Substandard			Doubtful			Loss			Gross Loans
	(In thousands)
Non-acquired loans
Single-family residential	$	5,558,700		$	—		$	93,145		$	—		$	—		$	5,651,845
Construction	197,935			—			2,574			—			—			200,509
Construction - custom	396,307			—			—			—			—			396,307
Land - acquisition & development	89,656			—			4,552			—			—			94,208
Land - consumer lot loans	103,569			—			420			—			—			103,989
Multi-family	1,118,673			865			6,184			—			—			1,125,722
Commercial real estate	971,510			4,360			10,400			—			—			986,270
Commercial & industrial	575,034			1,496			36,306			—			—			612,836
HELOC	127,398			—			248			—			—			127,646
Consumer	194,451			—			204			—			—			194,655
Total non-acquired loans	9,333,233			6,721			154,033			—			—			9,493,987
Acquired loans	149,891			—			16,402			—			—			166,293
Credit impaired acquired loans	61,019			—			26,062			—			—			87,081
Covered loans	61,776			—			14,133			—			—			75,909
Total gross loans	$	9,605,919		$	6,721		$	210,630		$	—		$	—		$	9,823,270
Total grade as a % of total gross loans	97.8		%	0.1		%	2.1		%	—		%	—		%

Schedule of credit risk profile by payment activity

The following tables provide information on loans based on payment activity.

September 30, 2016	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross  Loans		Amount		% of Total Gross  Loans
	(In thousands)				(In thousands)
Single-family residential	$	5,587,919	99.4	%	$	33,148	0.6	%
Construction	1,110,411		100.0		—		—
Construction - custom	473,069		100.0		—		—
Land - acquisition & development	116,097		99.9		58		0.1
Land - consumer lot loans	101,343		99.5		510		0.5
Multi-family	1,118,025		99.9		776		0.1
Commercial real estate	949,064		99.3		7,100		0.7
Commercial & industrial	946,065		99.9		583		0.1
HELOC	134,546		99.8		239		0.2
Consumer	137,450		100.0		—		—
	$	10,673,989	99.6	%	$	42,414	0.4	%

September 30, 2015	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross  Loans		Amount		% of Total Gross  Loans
	(In thousands)				(In thousands)
Single-family residential	$	5,592,771	99.0	%	$	59,074	1.0	%
Construction	199,755		99.6		754		0.4
Construction - custom	395,575		99.8		732		0.2
Land - acquisition & development	94,208		100.0		—		—
Land - consumer lot loans	102,716		98.8		1,273		1.2
Multi-family	1,123,165		99.8		2,558		0.2
Commercial real estate	984,093		99.8		2,176		0.2
Commercial & industrial	612,836		100.0		—		—
HELOC	127,083		99.6		563		0.4
Consumer	193,975		99.7		680		0.3
	$	9,426,177	99.3	%	$	67,810	0.7	%

Summary of impaired loans based on type

The following tables provide information on impaired loans by loan category.

September 30, 2016	Recorded Investment		Unpaid Principal Balance		Related Allowance			Average Recorded Investment
	(In thousands)
Impaired loans with no related allowance recorded:
Single-family residential	$	9,627	$	11,366	$	—		$	6,511
Construction	—		—		—			—
Construction - custom	—		—		—			—
Land - acquisition & development	138		9,001		—			614
Land - consumer lot loans	499		609		—			317
Multi-family	394		3,972		—			638
Commercial real estate	11,741		21,301		—			6,260
Commercial & industrial	1,030		3,082		—			863
HELOC	209		315		—			165
Consumer	74		550		—			111
	23,712		50,196		—			15,479
Impaired loans with an allowance recorded:
Single-family residential	228,186		232,595		3,809			216,632
Construction	—		—		—			—
Construction - custom	—		—		—			—
Land - acquisition & development	1,154		2,094		1			1,766
Land - consumer lot loans	9,630		10,678		1			9,548
Multi-family	1,505		1,505		13			1,522
Commercial real estate	19,434		22,848		91			19,311
Commercial & industrial	—		—		—			—
HELOC	1,506		1,521		—			1,413
Consumer	116		306		—			100
	261,531		271,547		3,915		(1)	250,292
Total:
Single-family residential	237,813		243,961		3,809			223,143
Construction	—		—		—			—
Construction - custom	—		—		—			—
Land - acquisition & development	1,292		11,095		1			2,380
Land - consumer lot loans	10,129		11,287		1			9,865
Multi-family	1,899		5,477		13			2,160
Commercial real estate	31,175		44,149		91			25,571
Commercial & industrial	1,030		3,082		—			863
HELOC	1,715		1,836		—			1,578
Consumer	190		856		—			211
	$	285,243	$	321,743	$	3,915	(1)	$	265,771

____________________ 

(1) Includes $366,000 of specific reserves and $3,549,000 included in the general reserves.

September 30, 2015	Recorded Investment		Unpaid Principal Balance		Related Allowance			Average Recorded Investment
	(In thousands)
Impaired loans with no related allowance recorded:
Single-family residential	$	17,250	$	19,644	$	—		$	14,069
Construction	453		2,151		—			471
Construction - custom	554		554		—			182
Land - acquisition & development	2,570		9,426		—			926
Land - consumer lot loans	727		814		—			544
Multi-family	3,770		7,054		—			1,545
Commercial real estate	9,427		15,620		—			8,130
Commercial & industrial	2,955		13,066		—			2,681
HELOC	683		1,532		—			536
Consumer	477		703		—			390
	38,866		70,564		—			29,474
Impaired loans with an allowance recorded:
Single-family residential	259,461		263,268		6,678			260,028
Construction	4,988		5,778		—			5,432
Construction - custom	—		—		—			—
Land - acquisition & development	2,486		3,426		—			3,478
Land - consumer lot loans	11,289		11,554		—			11,324
Multi-family	3,823		3,823		—			3,732
Commercial real estate	19,124		21,078		—			18,886
Commercial & industrial	—		—		—			—
HELOC	1,443		1,443		—			1,359
Consumer	99		289		—			102
	302,713		310,659		6,678		(1)	304,341
Total:
Single-family residential	276,711		282,912		6,678			274,097
Construction	5,441		7,929		—			5,903
Construction - custom	554		554		—			182
Land - acquisition & development	5,056		12,852		—			4,404
Land - consumer lot loans	12,016		12,368		—			11,868
Multi-family	7,593		10,877		—			5,277
Commercial real estate	28,551		36,698		—			27,016
Commercial & industrial	2,955		13,066		—			2,681
HELOC	2,126		2,975		—			1,895
Consumer	576		992		—			492
	$	341,579	$	381,223	$	6,678	(1)	$	333,815

____________________ 

(1) Includes $275,000 of specific reserves and $6,403,000 included in the general reserves.

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Fair Value Measurements (Tables)

12 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Fair value of assets measured on recurring basis

The following table presents the balance and ASC 825 level of assets measured at fair value on a recurring basis.

	September 30, 2016
	Level 1		Level 2		Level 3		Total
	(In thousands)
Available-for-sale securities
Equity securities	$	101,824	$	—	$	—	$	101,824
U.S. government and agency securities	—		259,351		—		259,351
Municipal bonds	—		27,670		—		27,670
Corporate debt securities	—		461,138		—		461,138
Mortgage-backed securities
Agency pass-through certificates	—		993,041		—		993,041
Commercial MBS	—		79,870		—		79,870
Other debt securities	—		—		—		—
Total Available-for-sale securities	101,824		1,821,070		—		1,922,894
Interest rate contracts	—		20,895		—		20,895
Total Financial Assets	$	101,824	$	1,841,965	$	—	$	1,943,789
Financial Liabilities
Interest rate contracts	$	—	$	20,895	$	—	$	20,895
Commercial loan hedges	—		3,312		—		3,312
Long term borrowing hedges	—		31,347		—		31,347
Total Financial Liabilities	$	—	$	55,554	$	—	$	55,554

There were no transfers between, into and/or out of Levels 1, 2 or 3 during the year ended September 30, 2016.

	September 30, 2015
	Level 1		Level 2		Level 3		Total
	(In thousands)
Available-for-sale securities
Equity securities	$	101,952	$	—	$	—	$	101,952
U.S. government and agency securities	—		482,464		—		482,464
Municipal bonds	—		27,123		—		27,123
Corporate debt securities	—		505,800		—		505,800
Mortgage-backed securities
Agency pass-through certificates							—
Commercial MBS	—		1,160,518		—		1,160,518
Other debt securities	—		102,706		—		102,706
Total Available-for-sale securities	101,952		2,278,611		—		2,380,563
Interest rate contracts	—		11,879		—		11,879
Total Financial Assets	$	101,952	$	2,290,490	$	—	$	2,392,442
Financial Liabilities
Interest rate contracts	$	—	$	11,879	$	—	$	11,879
Commercial loan hedges	—		966		—		966
Long term borrowing hedges	—		14,555		—		14,555
Total Financial Liabilities	$	—	$	27,400	$	—	$	27,400

There were no transfers between, into and/or out of Level 1, 2 or 3 during the year ended September 30, 2015.

Aggregated balance of assets measured at estimated fair value on a nonrecurring basis and total losses resulting from those fair value adjustments

The following table presents the recorded balance of assets that were measured at estimated fair value on a nonrecurring basis for the periods presented, and the total gains (losses) resulting from those fair value adjustments for the periods presented. These estimated fair values are shown gross of estimated selling costs:

	September 30, 2016								Three Months Ended September 30, 2016			Twelve Months Ended September 30, 2016
	Level 1		Level  2		Level  3		Total		Total Gains (Losses)
	(In thousands)
Impaired loans (1)	$	—	$	—	$	17,476	$	17,476	$	(474	)	$	(4,236	)
Real estate owned (2)	—		—		25,190		25,190		(1,003		)	(3,947		)
Balance at end of period	$	—	$	—	$	42,666	$	42,666	$	(1,477	)	$	(8,183	)

 ___________________

(1) The gains (losses) represent remeasurements of collateral-dependent impaired loans.

(2) The gains (losses) represent aggregate writedowns and charge-offs on real estate owned.

	September 30, 2015								Three Months Ended September 30, 2015			Twelve Months Ended September 30, 2015
	Level 1		Level  2		Level  3		Total		Total Gains (Losses)
	(In thousands)
Impaired loans (1)	$	—	$	—	$	6,735	$	6,735	$	(40	)	$	(4,241	)
Real estate owned (2)	—		—		81,448		81,448		(654		)	7,749
Balance at end of period	$	—	$	—	$	88,183	$	88,183	$	(694	)	$	3,508

 ___________________

(1) The gains (losses) represent remeasurements of collateral-dependent impaired loans.

(2) The gains (losses) represent aggregate writedowns and charge-offs on real estate owned.

Fair value of financial instruments by balance sheet grouping

Although management is not aware of any factors that would materially affect the estimated fair value amounts presented below, such amounts have not been comprehensively revalued for purposes of these financial statements since the dates shown, and therefore, estimates of fair value subsequent to those dates may differ significantly from the amounts presented below.

		September 30, 2016				September 30, 2015
	Level	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
		(In thousands)
Financial assets
Cash and cash equivalents	1	$	450,368	$	450,368	$	284,049	$	284,049
Available-for-sale securities:
Equity securities	1	101,824		101,824		101,952		101,952
U.S. government and agency securities	2	259,351		259,351		482,464		482,464
Municipal bonds	2	27,670		27,670		27,123		27,123
Corporate debt securities	2	461,138		461,138		505,800		505,800
Mortgage-backed securities
Agency pass-through certificates	2	993,041		993,041		1,160,518		1,160,518
Commercial MBS	2	79,870		79,870		102,706		102,706
Total available-for-sale securities		1,922,894		1,922,894		2,380,563		2,380,563
Held-to-maturity securities:
Mortgage-backed securities
Agency pass-through certificates	2	1,417,599		1,441,556		1,643,216		1,637,420
Total held-to-maturity securities		1,417,599		1,441,556		1,643,216		1,637,420
Loans receivable	3	9,910,920		10,414,794		9,170,634		9,667,750
FDIC indemnification asset	3	12,769		12,095		16,275		15,522
FHLB and FRB stock	2	117,205		117,205		107,198		107,198
Other assets - interest rate contracts	2	20,895		20,895		11,879		11,879
Financial liabilities
Customer accounts	2	10,600,852		10,184,321		10,631,703		10,004,290
FHLB advances and other borrowings	2	2,080,000		2,184,671		1,830,000		1,938,384
Other liabilities - interest rate contracts	2	20,895		20,895		11,879		11,879
Other liabilities - commercial loan hedges	2	3,312		3,312		966		966
Other liabilities - long term borrowing hedges	2	31,347		31,347		14,555		14,555

The following table presents the fair value and balance sheet classification of derivatives outstanding.

	Asset Derivatives						Liability Derivatives
	September 30, 2016			September 30, 2015			September 30, 2016			September 30, 2015
(In thousands)	Balance Sheet	Fair Value		Balance Sheet	Fair Value		Balance Sheet	Fair Value		Balance Sheet	Fair Value
Interest rate contracts	Other assets	$	20,895	Other assets	$	11,879	Other liabilities	$	20,895	Other liabilities	$	11,879
Commercial loan hedges	Other assets	—		Other assets	—		Other liabilities	3,312		Other liabilities	966
Long term borrowing hedges	Other assets	—		Other assets	—		Other liabilities	31,347		Other liabilities	14,555
		$	20,895		$	11,879		$	55,554		$	27,400

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Derivative and Hedging Activities (Tables)

12 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair value of financial instruments by balance sheet grouping

Although management is not aware of any factors that would materially affect the estimated fair value amounts presented below, such amounts have not been comprehensively revalued for purposes of these financial statements since the dates shown, and therefore, estimates of fair value subsequent to those dates may differ significantly from the amounts presented below.

		September 30, 2016				September 30, 2015
	Level	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
		(In thousands)
Financial assets
Cash and cash equivalents	1	$	450,368	$	450,368	$	284,049	$	284,049
Available-for-sale securities:
Equity securities	1	101,824		101,824		101,952		101,952
U.S. government and agency securities	2	259,351		259,351		482,464		482,464
Municipal bonds	2	27,670		27,670		27,123		27,123
Corporate debt securities	2	461,138		461,138		505,800		505,800
Mortgage-backed securities
Agency pass-through certificates	2	993,041		993,041		1,160,518		1,160,518
Commercial MBS	2	79,870		79,870		102,706		102,706
Total available-for-sale securities		1,922,894		1,922,894		2,380,563		2,380,563
Held-to-maturity securities:
Mortgage-backed securities
Agency pass-through certificates	2	1,417,599		1,441,556		1,643,216		1,637,420
Total held-to-maturity securities		1,417,599		1,441,556		1,643,216		1,637,420
Loans receivable	3	9,910,920		10,414,794		9,170,634		9,667,750
FDIC indemnification asset	3	12,769		12,095		16,275		15,522
FHLB and FRB stock	2	117,205		117,205		107,198		107,198
Other assets - interest rate contracts	2	20,895		20,895		11,879		11,879
Financial liabilities
Customer accounts	2	10,600,852		10,184,321		10,631,703		10,004,290
FHLB advances and other borrowings	2	2,080,000		2,184,671		1,830,000		1,938,384
Other liabilities - interest rate contracts	2	20,895		20,895		11,879		11,879
Other liabilities - commercial loan hedges	2	3,312		3,312		966		966
Other liabilities - long term borrowing hedges	2	31,347		31,347		14,555		14,555

The following table presents the fair value and balance sheet classification of derivatives outstanding.

	Asset Derivatives						Liability Derivatives
	September 30, 2016			September 30, 2015			September 30, 2016			September 30, 2015
(In thousands)	Balance Sheet	Fair Value		Balance Sheet	Fair Value		Balance Sheet	Fair Value		Balance Sheet	Fair Value
Interest rate contracts	Other assets	$	20,895	Other assets	$	11,879	Other liabilities	$	20,895	Other liabilities	$	11,879
Commercial loan hedges	Other assets	—		Other assets	—		Other liabilities	3,312		Other liabilities	966
Long term borrowing hedges	Other assets	—		Other assets	—		Other liabilities	31,347		Other liabilities	14,555
		$	20,895		$	11,879		$	55,554		$	27,400

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Interest Receivable (Tables)

12 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Schedule of interest receivable

The following table provides a summary of interest receivable by interest earning asset type.

	September 30, 2016		September 30, 2015
	(In thousands)
Loans receivable	$	29,858	$	30,930
Mortgage-backed securities	5,670		6,695
Investment securities	2,141		2,804
	$	37,669	$	40,429

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Premises and Equipment (Tables)

12 Months Ended

Sep. 30, 2016

Property, Plant and Equipment [Abstract]

Premises and Equipment

The following table provides a summary of premises and equipment by asset type.

		September 30, 2016			September 30, 2015
	Estimated Useful Life	(In thousands)
Land	—	$	109,414		$	113,347
Buildings	25 - 40	143,841			147,757
Leasehold improvements	7 - 15	18,365			10,193
Furniture, software and equipment	2 - 10	115,199			89,919
		386,819			361,216
Less accumulated depreciation and amortization		(104,868		)	(84,969		)
		$	281,951		$	276,247

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Customer Accounts (Tables)

12 Months Ended

Sep. 30, 2016

Banking and Thrift [Abstract]

Schedule of deposits

The following table provides the composition of the Company's customer accounts, including interest rate buckets and maturity buckets for time deposits.

	September 30, 2016		September 30, 2015
	(In thousands)
Checking accounts, .15% and under	$	2,721,721	$	2,555,766
Passbook and statement accounts, .10% and under	820,980		700,794
Insured money market accounts, .01% to .15%	2,462,891		2,564,318
Time deposit accounts
Less than 1.00%	3,268,272		3,126,119
1.00% to 1.99%	1,292,612		1,177,356
2.00% to 2.99%	34,376		501,409
3.00% to 3.99%	—		5,156
4.00% and higher	—		785
Total time deposits	4,595,260		4,810,825
	$	10,600,852	$	10,631,703
Time deposit maturities are as follows:	September 30, 2016		September 30, 2015
	(In thousands)
Within 1 year	$	2,894,900	$	2,862,313
1 to 2 years	798,309		1,068,792
2 to 3 years	293,058		321,118
Over 3 years	608,993		558,602
	$	4,595,260	$	4,810,825

Schedule of interest expense on customer deposits

Interest expense on customer accounts consisted of the following:

Year ended September 30,	2016			2015			2014
	(In thousands)
Checking accounts	$	1,491		$	1,036		$	1,259
Passbook and statement accounts	734			660			607
Insured money market accounts	3,285			3,631			4,574
Time deposit accounts	47,425			46,273			52,636
	52,935			51,600			59,076
Less early withdrawal penalties	(450		)	(546		)	(552		)
	$	52,485		$	51,054		$	58,524
Weighted average interest rate at end of year	0.50		%	0.48		%	0.51		%
Weighted daily average interest rate during the year	0.50		%	0.48		%	0.57		%

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FHLB Advances and Other Borrowings (Tables)

12 Months Ended

Sep. 30, 2016

Banking and Thrift [Abstract]

Advances

The table below shows the maturity dates of outstanding FHLB advances.

	September 30, 2016		September 30, 2015
	(In thousands)
FHLB advances
Within 1 year	$	200,000	$	250,000
1 to 3 years	880,000		750,000
4 to 5 years	700,000		430,000
More than 5 years	300,000		400,000
	$	2,080,000	$	1,830,000

Weighted average cost and amount of advances

Financial data pertaining to the weighted-average cost and the amount of FHLB advances were as follows.

	2016			2015			2014
	(In thousands)
Weighted average interest rate at end of year	3.15		%	3.35		%	3.52		%
Weighted daily average interest rate during the year	3.22		%	3.57		%	3.56		%
Daily average of FHLB advances during the year	$	1,992,434		$	1,848,904		$	1,955,205
Maximum amount of FHLB advances at any month end	$	2,080,000		$	1,930,000		$	2,205,000
Interest expense during the year (excludes interest rate swap expense)	$	64,058		$	64,331		$	68,307

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Income Taxes (Tables)

12 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

Summary of major sources of temporary differences and deferred tax effects

The table below provides a summary of the Company's tax assets and liabilities, including deferred tax assets and deferred tax liabilities by major source. Deferred tax balances represent temporary differences between the tax basis and the financial statement carrying amounts of assets and liabilities.

	September 30, 2016			September 30, 2015
	(In thousands)
Deferred tax assets
Loan loss reserves	$	45,531		$	43,749
REO reserves	4,018			11,213
Valuation adjustment on available-for-sale securities and cash flow hedges	6,482			—
Asset purchase tax basis difference (net)	—			5,973
Delinquent accrued interest	2,812			3,069
FDIC loss share guarantee receivable	9,598			7,803
Other, net	3,210			3,891
Total deferred tax assets	71,651			75,698
Deferred tax liabilities
Federal Home Loan Bank stock dividends	24,135			24,135
Valuation adjustment on available-for-sale securities and cash flow hedges	—			205
Asset purchase tax basis difference (net)	2,830
Loan origination costs	14,826			13,875
Depreciation	34,936			25,934
Total deferred tax liabilities	76,727			64,149
Net deferred tax asset (liability)	(5,076		)	11,549
Current tax asset	21,123			2,964
Net tax asset	$	16,047		$	14,513

Schedule of effective income tax rate reconciliation

The table below presents a reconciliation of the statutory federal income tax rate to the Company's effective income tax rate.

Year ended September 30,	2016		2015		2014
Statutory income tax rate	35	%	35	%	35	%
State income tax	1		2		2
Other differences	(2	)	(1	)	(1	)
Effective income tax rate	34	%	36	%	36	%

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The following table summarizes the Company's income tax expense (benefit) for the respective periods.

Year ended September 30,	2016		2015			2014
	(In thousands)
Federal:
Current	$	57,173	$	79,841		$	70,797
Deferred	21,961		3,244			10,591
	79,134		83,085			81,388
State:
Current	$	3,600	$	6,636		$	4,987
Deferred	1,351		(518		)	1,189
	4,951		6,118			6,176
Total
Current	60,773		86,477			75,784
Deferred	23,312		2,726			11,780
	$	84,085	$	89,203		$	87,564

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Stock Award Plans (Tables)

12 Months Ended

Sep. 30, 2016

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of option activity

A summary of stock option activity and changes during the year are as follows.

Options	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value (In thousands)
Outstanding at September 30, 2015	1,027,374		$	21.64	3	$1,867
Granted	—		—
Exercised	(438,456	)	21.51
Forfeited	(129,475	)	22.32
Outstanding at September 30, 2016	459,443		$	21.47	2	$	2,392
Exercisable at September 30, 2016	459,443		$	21.47	2	$	2,392

Schedule of miscellaneous information related to stock options

The table below presents other information regarding stock options.

Year ended September 30,	2016		2015		2014
	(In thousands, except fair value of options granted)
Compensation cost for stock options	$	89	$	232	$	324
Weighted average grant date fair value per stock option	2.73		2.96		2.95
Total intrinsic value of options exercised	1,651		831		1,136
Grant date FV of options exercised	1,422		368		1,962
Cash received from option exercises	9,283		2,069		10,142
Tax benefit realized for option exercises	—		—		159

Summary of nonvested activity

The following is a summary of activity related to non-vested stock options.

Year ended September 30,	2016				2015				2014
Non-vested Stock Options	Options Outstanding		Weighted Average Grant Date Fair Value		Options Outstanding		Weighted Average Grant Date Fair Value		Options Outstanding		Weighted Average Grant Date Fair Value
Outstanding at beginning of period	69,287		$	3.85	145,795		$	3.87	287,750		$	3.44
Granted	—		—		—		—		—		—
Vested	(62,227	)	3.91		(61,018	)	3.88		(119,520	)	2.88
Forfeited	(7,060	)	3.89		(15,490	)	3.90		(22,435	)	3.63
Outstanding at end of period	—		$	—	69,287		$	3.85	145,795		$	3.87

Restricted Stock

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of nonvested activity

The following table summarizes information about nonvested restricted stock activity.

Year ended September 30,	2016				2015				2014
Non-vested Restricted Stock	Outstanding		Weighted Average Fair Value		Outstanding		Weighted Average Fair Value		Outstanding		Weighted Average Fair Value
Outstanding at beginning of period	521,302		$	15.03	515,845		$	14.10	480,904		$	11.52
Granted	229,450		17.20		301,750		$	14.26	300,500		15.43
Vested	(165,965	)	15.96		(223,043	)	13.24		(202,014	)	11.68
Forfeited	(94,424	)	13.64		(73,250	)	10.72		(63,545	)	8.50
Outstanding at end of period	490,363		$	16.00	521,302		$	15.03	515,845		$	14.10

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Stockholders' Equity (Tables)

12 Months Ended

Sep. 30, 2016

Equity [Abstract]

Schedule of compliance with regulatory capital requirements

	Actual				Capital Adequacy Guidelines		Categorized as Well Capitalized Under Prompt Corrective Action Provisions
	Capital		Ratio		Ratio		Ratio
September 30, 2016	(In thousands)
Common Equity Tier 1 risk-based capital ratio:
The Company	$	1,690,380	17.54	%	4.50	%	NA
The Bank	1,668,828		17.32		4.50		6.50	%
Tier 1 risk-based capital ratio:
The Company	1,690,380		17.54		6.00		NA
The Bank	1,668,828		17.32		6.00		8.00
Total risk-based capital ratio:
The Company	1,807,740		18.76		8.00		NA
The Bank	1,786,188		18.54		8.00		10.00
Tier 1 leverage ratio:
The Company	1,690,380		11.60		4.00		NA
The Bank	1,668,828		11.45		4.00		5.00
September 30, 2015
Common Equity Tier 1 risk-based capital ratio:
The Company	$	1,658,985	18.81	%	4.50	%	NA
The Bank	1,652,569		18.73		4.50		6.50	%
Tier 1 risk-based capital ratio:
The Company	1,658,985		18.81		6.00		NA
The Bank	1,652,569		18.73		6.00		8.00
Total risk-based capital ratio:
The Company	1,769,587		20.07		8.00		NA
The Bank	1,763,171		19.98		8.00		10.00
Tier 1 leverage ratio:
The Company	1,658,985		11.71		4.00		N/A
The Bank	1,652,569		11.66		4.00		5.00

Schedule of weighted average number of shares

The following table sets forth information regarding earnings per share calculations.

Year ended September 30,	2016		2015		2014
Weighted average shares outstanding	91,399,038		95,644,639		101,154,030
Weighted average dilutive warrants	440,366		340,016		352,171
Weighted average dilutive options	73,514		69,304		84,150
Weighted average diluted shares	91,912,918		96,053,959		101,590,351
Net income (In thousands)	$	164,049	$	160,316	$	157,364
Basic EPS	$	1.79	$	1.68	$	1.56
Diluted EPS	1.78		1.67		1.55

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Financial Information - Washington Federal, INC. (Tables)

12 Months Ended

Sep. 30, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule of condensed financial information

The following Washington Federal, Inc. (parent company only) financial information should be read in conjunction with the other notes to the Consolidated Financial Statements.

Condensed Statements of Financial Condition
	September 30, 2016		September 30, 2015
	(In thousands)
Assets
Cash	$	24,300	$	7,628
Other assets	15		—
Investment in subsidiary	1,954,179		1,949,262
Total assets	$	1,978,494	$	1,956,890
Liabilities
Other liabilities	$	2,763	$	1,211
Total liabilities	2,763		1,211
Stockholders’ equity
Total stockholders’ equity	1,975,731		1,955,679
Total liabilities and stockholders’ equity	$	1,978,494	$	1,956,890

Condensed Statements of Operations
Twelve Months Ended September 30,	2016		2015			2014
	(In thousands)
Income
Dividends from subsidiary	$	148,000	$	175,000		$	70,000
Total Income	148,000		175,000			70,000
Expense
Miscellaneous	435		439			485
Total expense	435		439			485
Net income (loss) before equity in undistributed net income (loss) of subsidiary	147,565		174,561			69,515
Equity in undistributed net income of subsidiary	16,336		(14,402		)	87,675
Income before income taxes	163,901		160,159			157,190
Income tax benefit (expense)	148		157			174
Net income	$	164,049	$	160,316		$	157,364

Condensed Statements of Cash Flows
Twelve Months Ended September 30,	2016			2015			2014
	(In thousands)
Cash Flows From Operating Activities
Net income	$	164,049		$	160,316		$	157,364
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiaries	(12,677		)	32,375			(87,943		)
Decrease (increase) in other assets	(15		)	—			1
Increase in other liabilities	1,552			(13,189		)	4,152
Net cash provided by (used in) operating activities	152,909			179,502			73,574
Cash Flows From Financing Activities
Proceeds from exercise of common stock options and related tax benefit	9,283			2,070			10,252
Warrants purchased	(7,744		)	—			—
Treasury stock purchased	(87,850		)	(126,728		)	(104,291		)
Dividends paid on common stock	(49,926		)	(51,111		)	(42,065		)
Net cash provided by (used in) financing activities	(136,237		)	(175,769		)	(136,104		)
Increase (decrease) in cash	16,672			3,733			(62,530		)
Cash at beginning of year	7,628			3,895			66,425
Cash at end of year	$	24,300		$	7,628		$	3,895

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Selected Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Sep. 30, 2016

Quarterly Financial Information Disclosure [Abstract]

Summary of unaudited interim results

The following is a summary of the unaudited interim results of operations by quarter for the years presented.

Twelve Months Ended September 30, 2016	First Quarter		Second Quarter			Third Quarter			Fourth Quarter
	(In thousands, except per share data)
Interest income	$	135,124	$	135,063		$	133,735		$	132,872
Interest expense	28,255		28,738			29,495			30,056
Net interest income	106,869		106,325			104,240			102,816
Provision (release) for loan losses	—		(1,500		)	(1,650		)	(3,100		)
Other operating income (including REO gain (loss), net)	12,055		14,623			15,573			14,830
Other operating expense	64,509		59,226			56,305			55,407
Income before income taxes	54,415		63,222			65,158			65,339
Income tax expense	19,317		21,499			22,154			21,115
Net income	$	35,098	$	41,723		$	43,004		$	44,224
Basic earnings per share	$	0.38	$	0.45		$	0.47		$	0.49
Diluted earnings per share	0.38		0.45			0.47			0.49
Cash dividends paid per share	0.13		0.14			0.14			0.14

Twelve Months Ended September 30, 2015	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
	(In thousands, except per share data)
Interest income	$	132,741		$	132,630		$	129,300		$	135,339
Interest expense	30,558			28,750			28,735			28,486
Net interest income	102,183			103,880			100,565			106,853
Provision (release) for loan losses	(5,500		)	(3,949		)	(1,932		)	219
Other operating income (REO expense)	5,695			12,314			14,999			16,719
Other operating expense	53,600			57,324			56,719			57,208
Income before income taxes	59,778			62,819			60,777			66,145
Income tax expense	21,371			22,458			21,727			23,647
Net income	$	38,407		$	40,361		$	39,050		$	42,498
Basic earnings per share	$	0.39		$	0.42		$	0.41		$	0.46
Diluted earnings per share	0.39			0.42			0.41			0.45
Cash dividends paid per share	0.15			0.13			0.13			0.13

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Summary of Significant Accounting Policies - Other Narrative (Details)		12 Months Ended
	Nov. 18, 2016 USD ($)	Sep. 30, 2016 USD ($) payment office segment part shares	Sep. 30, 2015 USD ($) shares	Sep. 30, 2014 USD ($) shares
Summary of Significant Accounting Policies [Line Items]
Award vesting period (in years)		5 years
Options granted (in shares) | shares		0	0	0
Number of offices (in offices) | office		238
Days past grace period to initiate contact to cure deficiency		30 days
Minimum days past due to begin foreclosure proceedings		90 days
Approximate rate reduction concession, minimum		1.00%
Approximate rate reduction concession, maximum		2.00%
Minimum days past due to stop accrual of interest		90 days
Loans returned to full accrual status		90 days
Number of parts in loss percentage factor | part		2
Number of payments required | payment		6
Number of reportable business segments | segment		1
Payments of dividends		$ 49,926,000	$ 51,111,000	$ 42,065,000
Subsequent Event
Summary of Significant Accounting Policies [Line Items]
Payments of dividends	$ 12,421,733
Minimum
Summary of Significant Accounting Policies [Line Items]
Term for payment and rate reduction		6 months
Maximum
Summary of Significant Accounting Policies [Line Items]
Options exercisable, weighted average remaining contractual term (in years)		10 years
Term for payment and rate reduction		12 months
Stock Options and Restricted Stock [Member] | Minimum
Summary of Significant Accounting Policies [Line Items]
Award vesting period (in years)		3 years
Stock Options and Restricted Stock [Member] | Maximum
Summary of Significant Accounting Policies [Line Items]
Award vesting period (in years)		10 years

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Summary of Significant Accounting Policies - Business Combinations (Details) $ in Thousands	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($) branch	Sep. 30, 2014 USD ($)	May 03, 2014 branch	May 02, 2014 branch	Dec. 07, 2013 branch	Dec. 06, 2013 branch	Nov. 01, 2013 branch	Oct. 31, 2013 branch	Nov. 01, 2012 USD ($)
Business Acquisition [Line Items]
Intangible assets, goodwill	$ 291,503	$ 291,503	$ 291,503
Bank of America, National Association
Business Acquisition [Line Items]
Number of branches acquired (in branches) | branch		74
Net loans		$ 13,000
Branch properties		$ 25,000
Premium on deposits		1.99%
Cash and equivalents		$ 1,800,000
Intangibles		11,000
Intangible assets, goodwill		$ 31,000
Bank of America, National Association | New Mexico
Business Acquisition [Line Items]
Number of branches acquired (in branches) | branch								11	11
Bank of America, National Association | Washington, Oregon, and Idaho
Business Acquisition [Line Items]
Number of branches acquired (in branches) | branch						40	40
Bank of America, National Association | Arizona and Nevada
Business Acquisition [Line Items]
Number of branches acquired (in branches) | branch				23	23
South Valley Bancorp, Inc.
Business Acquisition [Line Items]
Deposit accounts										$ 1,900,000

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Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Goodwill and Intangible Assets [Roll Forward]
Goodwill, beginning of period	$ 291,503	$ 291,503
Goodwill, end of period	291,503	291,503
Intangible assets. amortization	(2,369)	(3,551)
Goodwill and intangible assets, beginning of period	299,358	302,909
Goodwill and intangible assets, end of period	296,989	299,358
Core Deposit [Member]
Goodwill and Intangible Assets [Roll Forward]
Intangible assets, beginning of period	7,855	11,406
Intangible assets. amortization	(2,369)	(3,551)
Intangible assets, end of period	5,486	$ 7,855
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2017	1,648
2018	1,204
2019	1,157
2020	1,157
2021	$ 320

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Investment Securities - Investments by Contractual Maturity Date (Details) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Amortized Cost, Available-for-sale securities
Amortized Cost	$ 1,909,184,000	$ 2,365,450,000
Gross Unrealized Gains / Losses, Available-for-sale securities
Gross unrealized gains	25,422,000	28,158,000
Gross unrealized loss	(11,712,000)	(13,045,000)
Fair Value, Available-for-sale securities
Available-for-sale securities, at fair value	$ 1,922,894,000	$ 2,380,563,000
Yield, Available-for-sale securities
Yield	2.22%	1.97%
Amortized Cost, Held-to-maturity securities
Amortized Cost	$ 1,417,599,000	$ 1,643,216,000
Gross Unrealized Gains / Losses, Held-to-maturity securities
Gross unrealized gains	24,171,000	10,516,000
Gross unrealized losses	(214,000)	(16,312,000)
Fair Value, Held-to-maturity securities
Fair Value	1,441,556,000	1,637,420,000
Yield, Held-to-maturity securities
Investments	3,326,783,000	4,008,666,000
Gross unrealized gains on investments	49,593,000	38,674,000
Gross unrealized losses on investments	(11,926,000)	(29,357,000)
Fair value of investments	$ 3,364,450,000	$ 4,017,983,000
Yield on investments	2.62%	2.46%
Available-for-sale securities purchased	$ (137,591,000)	$ (315,114,000)	$ (1,280,477,000)
Payments to acquire held-to-maturity securities	0	259,489,000	0
Proceeds from sales of available-for-sale investment securities	50,741,000	246,826,000	$ 0
Proceeds from sale of held-to-maturity securities	$ 0
Term of contractual due dates (in years)	25 years
U.S. government and agency securities
Amortized Cost, Available-for-sale securities
Within 1 year	$ 21,284,000
1 to 5 years	12,477,000	105,065,000
5 to 10 years	48,134,000	119,071,000
Over 10 years	182,051,000	262,832,000
Gross Unrealized Gains / Losses, Available-for-sale securities
Gross unrealized gains, within 1 year	0
Gross unrealized gains, 1 to 5 years	1,027,000	1,923,000
Gross unrealized gains, 5 to 10 years	0	35,000
Gross unrealized gains, over 10 years	27,000	0
Gross unrealized losses, within 1 year	(59,000)
Gross unrealized losses, 1 to 5 years	(11,000)	(274,000)
Gross unrealized losses, 5 to 10 years	(1,589,000)	(1,247,000)
Gross unrealized losses, over 10 years	(3,990,000)	(4,941,000)
Fair Value, Available-for-sale securities
Within 1 year	21,225,000
1 to 5 years	13,493,000	106,714,000
5 to 10 years	46,545,000	117,859,000
Over 10 years	$ 178,088,000	$ 257,891,000
Yield, Available-for-sale securities
Within 1 year	0.81%
1 to 5 years	7.94%	1.74%
5 to 10 years	1.14%	1.54%
Over 10 years	1.33%	1.23%
Equity Securities
Amortized Cost, Available-for-sale securities
Within 1 year	$ 0	$ 500,000
1 to 5 years	100,422,000	99,922,000
Gross Unrealized Gains / Losses, Available-for-sale securities
Gross unrealized gains, within 1 year	0	17,000
Gross unrealized gains, 1 to 5 years	1,402,000	1,513,000
Gross unrealized losses, within 1 year	0	0
Gross unrealized losses, 1 to 5 years	0	0
Fair Value, Available-for-sale securities
Within 1 year	0	517,000
1 to 5 years	$ 101,824,000	$ 101,435,000
Yield, Available-for-sale securities
Within 1 year	0.00%	1.80%
1 to 5 years	1.90%	1.90%
Corporate debt securities
Amortized Cost, Available-for-sale securities
Within 1 year	$ 278,094,000	$ 24,787,000
1 to 5 years	63,481,000	311,435,000
5 to 10 years	69,955,000	100,000,000
Over 10 years	50,000,000	69,950,000
Gross Unrealized Gains / Losses, Available-for-sale securities
Gross unrealized gains, within 1 year	325,000	191,000
Gross unrealized gains, 1 to 5 years	928,000	1,190,000
Gross unrealized gains, 5 to 10 years	0	876,000
Gross unrealized gains, over 10 years	938,000	953,000
Gross unrealized losses, within 1 year	(53,000)	0
Gross unrealized losses, 1 to 5 years	(113,000)	(58,000)
Gross unrealized losses, 5 to 10 years	(2,417,000)	(3,524,000)
Gross unrealized losses, over 10 years	0	0
Fair Value, Available-for-sale securities
Within 1 year	278,366,000	24,978,000
1 to 5 years	64,296,000	312,567,000
5 to 10 years	67,538,000	97,352,000
Over 10 years	$ 50,938,000	$ 70,903,000
Yield, Available-for-sale securities
Within 1 year	1.33%	0.53%
1 to 5 years	2.47%	0.88%
5 to 10 years	1.96%	1.47%
Over 10 years	3.00%	3.00%
Municipal bonds
Amortized Cost, Available-for-sale securities
1 to 5 years	$ 2,315,000	$ 2,285,000
5 to 10 years	1,335,000	1,303,000
Over 10 years	20,363,000	20,382,000
Gross Unrealized Gains / Losses, Available-for-sale securities
Gross unrealized gains, 1 to 5 years	2,000	8,000
Gross unrealized gains, 5 to 10 years	38,000	7,000
Gross unrealized gains, over 10 years	3,617,000	3,138,000
Gross unrealized losses, 1 to 5 years	0	0
Gross unrealized losses, 5 to 10 years	0	0
Gross unrealized losses, over 10 years	0	0
Fair Value, Available-for-sale securities
1 to 5 years	2,317,000	2,293,000
5 to 10 years	1,373,000	1,310,000
Over 10 years	$ 23,980,000	$ 23,520,000
Yield, Available-for-sale securities
1 to 5 years	1.23%	1.23%
5 to 10 years	2.05%	2.05%
Over 10 years	6.45%	6.45%
Agency pass through mortgage-backed securities
Amortized Cost, Available-for-sale securities
Without single maturity date	$ 978,955,000	$ 1,144,787,000
Gross Unrealized Gains / Losses, Available-for-sale securities
Gross unrealized gains, without single maturity date	17,118,000	18,222,000
Gross unrealized losses, without single maturity date	(3,032,000)	(2,491,000)
Fair Value, Available-for-sale securities
Without single maturity date	$ 993,041,000	$ 1,160,518,000
Yield, Available-for-sale securities
Without single maturity date	2.58%	2.48%
Amortized Cost, Held-to-maturity securities
Without single maturity date	$ 1,417,599,000	$ 1,643,216,000
Gross Unrealized Gains / Losses, Held-to-maturity securities
Gross unrealized gains, without single maturity date	24,171,000	10,516,000
Gross unrealized losses, without single maturity date	(214,000)	(16,312,000)
Fair Value, Held-to-maturity securities
Without single maturity date	$ 1,441,556,000	$ 1,637,420,000
Yield, Held-to-maturity securities
Without a single maturity date	3.18%	3.19%
Commercial MBS
Amortized Cost, Available-for-sale securities
Without single maturity date	$ 80,318,000	$ 103,131,000
Gross Unrealized Gains / Losses, Available-for-sale securities
Gross unrealized gains, without single maturity date	0	85,000
Gross unrealized losses, without single maturity date	(448,000)	(510,000)
Fair Value, Available-for-sale securities
Without single maturity date	$ 79,870,000	$ 102,706,000
Yield, Available-for-sale securities
Without single maturity date	1.91%	1.51%

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Investment Securities - Securities in Continuous Loss Position (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015
Schedule of Available-for-sale Securities [Line Items]
Unrealized gross losses of AFS securities, continuous unrealized loss position, less than 12 months	$ (1,289)	$ (6,229)
Fair value of AFS securities, continuous unrealized loss position, less than 12 months	304,197	578,646
Unrealized gross losses of AFS securities, continuous unrealized loss position, 12 months or longer	(10,637)	(23,128)
Fair value of AFS securities, continuous unrealized loss position, 12 months or longer	553,487	1,297,408
Unrealized gross losses of AFS securities, continuous unrealized loss position	(11,926)	(29,357)
Fair value of AFS securities, continuous unrealized loss position	857,684	1,876,054
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Unrealized gross losses of AFS securities, continuous unrealized loss position, less than 12 months	0	(183)
Fair value of AFS securities, continuous unrealized loss position, less than 12 months	0	72,862
Unrealized gross losses of AFS securities, continuous unrealized loss position, 12 months or longer	(2,582)	(3,399)
Fair value of AFS securities, continuous unrealized loss position, 12 months or longer	100,467	46,601
Unrealized gross losses of AFS securities, continuous unrealized loss position	(2,582)	(3,582)
Fair value of AFS securities, continuous unrealized loss position	100,467	119,463
U.S. agency securities
Schedule of Available-for-sale Securities [Line Items]
Unrealized gross losses of AFS securities, continuous unrealized loss position, less than 12 months	(11)	(5,010)
Fair value of AFS securities, continuous unrealized loss position, less than 12 months	3,167	336,243
Unrealized gross losses of AFS securities, continuous unrealized loss position, 12 months or longer	(5,638)	(1,452)
Fair value of AFS securities, continuous unrealized loss position, 12 months or longer	220,613	57,344
Unrealized gross losses of AFS securities, continuous unrealized loss position	(5,649)	(6,462)
Fair value of AFS securities, continuous unrealized loss position	223,780	393,587
Agency pass through mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Unrealized gross losses of AFS securities, continuous unrealized loss position, less than 12 months	(1,278)	(1,036)
Fair value of AFS securities, continuous unrealized loss position, less than 12 months	301,030	169,541
Unrealized gross losses of AFS securities, continuous unrealized loss position, 12 months or longer	(2,417)	(18,277)
Fair value of AFS securities, continuous unrealized loss position, 12 months or longer	232,407	1,193,463
Unrealized gross losses of AFS securities, continuous unrealized loss position	(3,695)	(19,313)
Fair value of AFS securities, continuous unrealized loss position	$ 533,437	$ 1,363,004

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Loans Receivable - Schedule of Loans Receivable (including Covered Loans) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 10,950,608	$ 9,823,270
Ratio of type of loan to total loans receivable	100.00%	100.00%
Allowance for probable losses	$ 113,494	$ 106,829	$ 114,591
Loans in process	879,484	476,796
Discount on acquired loans	11,306	30,095
Deferred net origination fees	35,404	38,916
Total loan contra accounts	1,039,688	652,636
Net Loans	9,910,920	9,170,634
Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	5,658,827
Allowance for probable losses	37,796	47,347	62,763
Construction - custom
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	473,069
Allowance for probable losses	1,080	990	1,695
Land - acquisition & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	118,497
Allowance for probable losses	6,023	5,781	5,592
Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	104,568
Allowance for probable losses	2,535	2,946	3,077
Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	1,124,289
Allowance for probable losses	6,925	5,304	4,248
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	1,093,639
Allowance for probable losses	8,588	8,960	7,548
Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	978,589
Allowance for probable losses	28,008	24,980	16,527
HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	149,717
Allowance for probable losses	813	902	928
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	139,002
Allowance for probable losses	1,888	2,939	$ 3,227
Non-acquired loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 10,716,403	$ 9,493,987
Ratio of type of loan to total loans receivable	97.90%	96.60%
Non-acquired loans | Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 5,621,066	$ 5,651,845
Ratio of type of loan to total loans receivable	51.30%	57.50%
Non-acquired loans | Construction - speculative
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 1,110,411	$ 200,509
Ratio of type of loan to total loans receivable	10.10%	2.00%
Non-acquired loans | Construction - custom
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 473,069	$ 396,307
Ratio of type of loan to total loans receivable	4.30%	4.00%
Non-acquired loans | Land - acquisition & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 116,156	$ 94,208
Ratio of type of loan to total loans receivable	1.10%	1.00%
Non-acquired loans | Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 101,853	$ 103,989
Ratio of type of loan to total loans receivable	0.90%	1.10%
Non-acquired loans | Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 1,118,801	$ 1,125,722
Ratio of type of loan to total loans receivable	10.20%	11.50%
Non-acquired loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 956,164	$ 986,270
Ratio of type of loan to total loans receivable	8.70%	10.00%
Non-acquired loans | Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 946,648	$ 612,836
Ratio of type of loan to total loans receivable	8.60%	6.20%
Non-acquired loans | HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 134,785	$ 127,646
Ratio of type of loan to total loans receivable	1.20%	1.30%
Non-acquired loans | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 137,450	$ 194,655
Ratio of type of loan to total loans receivable	1.30%	2.00%
Acquired loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 115,394	$ 166,293
Ratio of type of loan to total loans receivable	1.10%	1.70%
Credit-impaired acquired loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 89,837	$ 87,081
Ratio of type of loan to total loans receivable	0.80%	0.90%
Covered Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 28,974	$ 75,909
Ratio of type of loan to total loans receivable	0.30%	0.80%

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Loans Receivable - Interest Rate Terms (Details) $ in Thousands	Sep. 30, 2016 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans at fixed-rate	$ 6,952,290
Loans at adjustable-rate	3,998,318
Within 1 year
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans at fixed-rate	29,428
Loans at adjustable-rate	1,362,480
1 to 3 years
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans at fixed-rate	326,859
Loans at adjustable-rate	1,457,584
3 to 5 years
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans at fixed-rate	192,202
Loans at adjustable-rate	552,402
5 to 10 years
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans at fixed-rate	693,099
Loans at adjustable-rate	625,852
10 to 20 years
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans at fixed-rate	1,020,654
Loans at adjustable-rate	0
Over 20 years
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans at fixed-rate	4,690,048
Loans at adjustable-rate	$ 0

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Loans Receivable - Loans Receivable by Geographic Location (Details) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 10,950,608,000	$ 9,823,270,000
Ratio of loans by geographic location to total loans	100.00%
Washington
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 5,209,774,000
Ratio of loans by geographic location to total loans	47.60%
Oregon
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 1,587,599,000
Ratio of loans by geographic location to total loans	14.50%
Arizona
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 1,042,935,000
Ratio of loans by geographic location to total loans	9.50%
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 817,578,000
Ratio of loans by geographic location to total loans	7.50%
Utah
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 768,060,000
Ratio of loans by geographic location to total loans	7.00%
Idaho
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 465,372,000
Ratio of loans by geographic location to total loans	4.20%
New Mexico
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 457,487,000
Ratio of loans by geographic location to total loans	4.20%
Texas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 411,600,000
Ratio of loans by geographic location to total loans	3.80%
Nevada
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 190,203,000
Ratio of loans by geographic location to total loans	1.70%
Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 5,658,827,000
Ratio of loans by geographic location to total loans	51.70%
Percentage of loans by geographic area as a percentage of loan type	100.00%
Single-family residential | Washington
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 2,926,555,000
Ratio of loans by geographic location to total loans	26.80%
Percentage of loans by geographic area as a percentage of loan type	51.60%
Single-family residential | Oregon
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 664,932,000
Ratio of loans by geographic location to total loans	6.10%
Percentage of loans by geographic area as a percentage of loan type	11.80%
Single-family residential | Arizona
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 546,080,000
Ratio of loans by geographic location to total loans	5.00%
Percentage of loans by geographic area as a percentage of loan type	9.70%
Single-family residential | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 216,902,000
Ratio of loans by geographic location to total loans	2.00%
Percentage of loans by geographic area as a percentage of loan type	3.80%
Single-family residential | Utah
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 474,390,000
Ratio of loans by geographic location to total loans	4.30%
Percentage of loans by geographic area as a percentage of loan type	8.40%
Single-family residential | Idaho
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 284,212,000
Ratio of loans by geographic location to total loans	2.50%
Percentage of loans by geographic area as a percentage of loan type	5.00%
Single-family residential | New Mexico
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 186,061,000
Ratio of loans by geographic location to total loans	1.80%
Percentage of loans by geographic area as a percentage of loan type	3.30%
Single-family residential | Texas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 202,541,000
Ratio of loans by geographic location to total loans	1.80%
Percentage of loans by geographic area as a percentage of loan type	3.60%
Single-family residential | Nevada
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 157,154,000
Ratio of loans by geographic location to total loans	1.40%
Percentage of loans by geographic area as a percentage of loan type	2.80%
Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 1,124,289,000
Ratio of loans by geographic location to total loans	10.30%
Percentage of loans by geographic area as a percentage of loan type	100.00%
Multi-family | Washington
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 287,999,000
Ratio of loans by geographic location to total loans	2.60%
Percentage of loans by geographic area as a percentage of loan type	25.70%
Multi-family | Oregon
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 332,311,000
Ratio of loans by geographic location to total loans	3.00%
Percentage of loans by geographic area as a percentage of loan type	29.60%
Multi-family | Arizona
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 292,830,000
Ratio of loans by geographic location to total loans	2.70%
Percentage of loans by geographic area as a percentage of loan type	26.00%
Multi-family | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 2,448,000
Ratio of loans by geographic location to total loans	0.00%
Percentage of loans by geographic area as a percentage of loan type	0.20%
Multi-family | Utah
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 47,374,000
Ratio of loans by geographic location to total loans	0.50%
Percentage of loans by geographic area as a percentage of loan type	4.20%
Multi-family | Idaho
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 33,043,000
Ratio of loans by geographic location to total loans	0.30%
Percentage of loans by geographic area as a percentage of loan type	2.90%
Multi-family | New Mexico
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 97,699,000
Ratio of loans by geographic location to total loans	0.90%
Percentage of loans by geographic area as a percentage of loan type	8.70%
Multi-family | Texas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 29,458,000
Ratio of loans by geographic location to total loans	0.30%
Percentage of loans by geographic area as a percentage of loan type	2.60%
Multi-family | Nevada
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 1,127,000
Ratio of loans by geographic location to total loans	0.00%
Percentage of loans by geographic area as a percentage of loan type	0.10%
Land - acquisition & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 118,497,000
Ratio of loans by geographic location to total loans	1.10%
Percentage of loans by geographic area as a percentage of loan type	100.00%
Land - acquisition & development | Washington
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 74,017,000
Ratio of loans by geographic location to total loans	0.70%
Percentage of loans by geographic area as a percentage of loan type	62.50%
Land - acquisition & development | Oregon
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 10,953,000
Ratio of loans by geographic location to total loans	0.10%
Percentage of loans by geographic area as a percentage of loan type	9.20%
Land - acquisition & development | Arizona
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 4,142,000
Ratio of loans by geographic location to total loans	0.00%
Percentage of loans by geographic area as a percentage of loan type	3.50%
Land - acquisition & development | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 443,000
Ratio of loans by geographic location to total loans	0.00%
Percentage of loans by geographic area as a percentage of loan type	0.40%
Land - acquisition & development | Utah
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 958,000
Ratio of loans by geographic location to total loans	0.00%
Percentage of loans by geographic area as a percentage of loan type	0.80%
Land - acquisition & development | Idaho
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 4,761,000
Ratio of loans by geographic location to total loans	0.00%
Percentage of loans by geographic area as a percentage of loan type	4.00%
Land - acquisition & development | New Mexico
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 12,417,000
Ratio of loans by geographic location to total loans	0.10%
Percentage of loans by geographic area as a percentage of loan type	10.50%
Land - acquisition & development | Texas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 10,806,000
Ratio of loans by geographic location to total loans	0.10%
Percentage of loans by geographic area as a percentage of loan type	9.10%
Land - acquisition & development | Nevada
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 0
Ratio of loans by geographic location to total loans	0.10%
Percentage of loans by geographic area as a percentage of loan type	0.00%
Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 104,568,000
Ratio of loans by geographic location to total loans	0.90%
Percentage of loans by geographic area as a percentage of loan type	100.00%
Land - consumer lot loans | Washington
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 59,371,000
Ratio of loans by geographic location to total loans	0.50%
Percentage of loans by geographic area as a percentage of loan type	56.80%
Land - consumer lot loans | Oregon
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 12,403,000
Ratio of loans by geographic location to total loans	0.10%
Percentage of loans by geographic area as a percentage of loan type	11.90%
Land - consumer lot loans | Arizona
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 9,014,000
Ratio of loans by geographic location to total loans	0.10%
Percentage of loans by geographic area as a percentage of loan type	8.60%
Land - consumer lot loans | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 11,157,000
Ratio of loans by geographic location to total loans	0.20%
Percentage of loans by geographic area as a percentage of loan type	10.70%
Land - consumer lot loans | Utah
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 3,448,000
Ratio of loans by geographic location to total loans	0.00%
Percentage of loans by geographic area as a percentage of loan type	3.30%
Land - consumer lot loans | Idaho
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 3,910,000
Ratio of loans by geographic location to total loans	0.00%
Percentage of loans by geographic area as a percentage of loan type	3.70%
Land - consumer lot loans | New Mexico
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 1,274,000
Ratio of loans by geographic location to total loans	0.00%
Percentage of loans by geographic area as a percentage of loan type	1.20%
Land - consumer lot loans | Texas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 979,000
Ratio of loans by geographic location to total loans	0.00%
Percentage of loans by geographic area as a percentage of loan type	0.90%
Land - consumer lot loans | Nevada
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 3,012,000
Ratio of loans by geographic location to total loans	0.00%
Percentage of loans by geographic area as a percentage of loan type	2.90%
Construction - custom
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 473,069,000
Ratio of loans by geographic location to total loans	4.40%
Percentage of loans by geographic area as a percentage of loan type	100.00%
Construction - custom | Washington
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 277,877,000
Ratio of loans by geographic location to total loans	2.50%
Percentage of loans by geographic area as a percentage of loan type	58.90%
Construction - custom | Oregon
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 52,709,000
Ratio of loans by geographic location to total loans	0.50%
Percentage of loans by geographic area as a percentage of loan type	11.10%
Construction - custom | Arizona
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 45,536,000
Ratio of loans by geographic location to total loans	0.40%
Percentage of loans by geographic area as a percentage of loan type	9.60%
Construction - custom | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 11,228,000
Ratio of loans by geographic location to total loans	0.10%
Percentage of loans by geographic area as a percentage of loan type	2.40%
Construction - custom | Utah
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 33,036,000
Ratio of loans by geographic location to total loans	0.30%
Percentage of loans by geographic area as a percentage of loan type	7.00%
Construction - custom | Idaho
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 17,120,000
Ratio of loans by geographic location to total loans	0.20%
Percentage of loans by geographic area as a percentage of loan type	3.60%
Construction - custom | New Mexico
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 18,128,000
Ratio of loans by geographic location to total loans	0.20%
Percentage of loans by geographic area as a percentage of loan type	3.80%
Construction - custom | Texas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 10,610,000
Ratio of loans by geographic location to total loans	0.10%
Percentage of loans by geographic area as a percentage of loan type	2.20%
Construction - custom | Nevada
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 6,825,000
Ratio of loans by geographic location to total loans	0.10%
Percentage of loans by geographic area as a percentage of loan type	1.40%
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 1,110,411,000
Ratio of loans by geographic location to total loans	10.10%
Percentage of loans by geographic area as a percentage of loan type	100.00%
Construction | Washington
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 470,720,000
Ratio of loans by geographic location to total loans	4.30%
Percentage of loans by geographic area as a percentage of loan type	42.40%
Construction | Oregon
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 122,958,000
Ratio of loans by geographic location to total loans	1.10%
Percentage of loans by geographic area as a percentage of loan type	11.10%
Construction | Arizona
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 43,300,000
Ratio of loans by geographic location to total loans	0.40%
Percentage of loans by geographic area as a percentage of loan type	3.90%
Construction | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 110,843,000
Ratio of loans by geographic location to total loans	1.00%
Percentage of loans by geographic area as a percentage of loan type	10.00%
Construction | Utah
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 143,246,000
Ratio of loans by geographic location to total loans	1.30%
Percentage of loans by geographic area as a percentage of loan type	12.90%
Construction | Idaho
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 64,510,000
Ratio of loans by geographic location to total loans	0.60%
Percentage of loans by geographic area as a percentage of loan type	5.80%
Construction | New Mexico
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 47,763,000
Ratio of loans by geographic location to total loans	0.40%
Percentage of loans by geographic area as a percentage of loan type	4.30%
Construction | Texas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 107,071,000
Ratio of loans by geographic location to total loans	1.00%
Percentage of loans by geographic area as a percentage of loan type	9.60%
Construction | Nevada
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 0
Ratio of loans by geographic location to total loans	0.00%
Percentage of loans by geographic area as a percentage of loan type	0.00%
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 1,093,639,000
Ratio of loans by geographic location to total loans	9.90%
Percentage of loans by geographic area as a percentage of loan type	100.00%
Commercial real estate | Washington
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 482,802,000
Ratio of loans by geographic location to total loans	4.40%
Percentage of loans by geographic area as a percentage of loan type	44.00%
Commercial real estate | Oregon
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 171,093,000
Ratio of loans by geographic location to total loans	1.60%
Percentage of loans by geographic area as a percentage of loan type	15.60%
Commercial real estate | Arizona
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 38,302,000
Ratio of loans by geographic location to total loans	0.30%
Percentage of loans by geographic area as a percentage of loan type	3.50%
Commercial real estate | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 277,438,000
Ratio of loans by geographic location to total loans	2.50%
Percentage of loans by geographic area as a percentage of loan type	25.40%
Commercial real estate | Utah
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 11,499,000
Ratio of loans by geographic location to total loans	0.10%
Percentage of loans by geographic area as a percentage of loan type	1.10%
Commercial real estate | Idaho
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 34,075,000
Ratio of loans by geographic location to total loans	0.30%
Percentage of loans by geographic area as a percentage of loan type	3.10%
Commercial real estate | New Mexico
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 68,385,000
Ratio of loans by geographic location to total loans	0.60%
Percentage of loans by geographic area as a percentage of loan type	6.30%
Commercial real estate | Texas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 6,151,000
Ratio of loans by geographic location to total loans	0.10%
Percentage of loans by geographic area as a percentage of loan type	0.60%
Commercial real estate | Nevada
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 3,894,000
Ratio of loans by geographic location to total loans	0.00%
Percentage of loans by geographic area as a percentage of loan type	0.40%
Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 978,589,000
Ratio of loans by geographic location to total loans	9.00%
Percentage of loans by geographic area as a percentage of loan type	100.00%
Commercial & industrial | Washington
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 500,540,000
Ratio of loans by geographic location to total loans	4.60%
Percentage of loans by geographic area as a percentage of loan type	51.00%
Commercial & industrial | Oregon
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 203,377,000
Ratio of loans by geographic location to total loans	1.90%
Percentage of loans by geographic area as a percentage of loan type	20.80%
Commercial & industrial | Arizona
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 47,584,000
Ratio of loans by geographic location to total loans	0.40%
Percentage of loans by geographic area as a percentage of loan type	4.90%
Commercial & industrial | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 94,215,000
Ratio of loans by geographic location to total loans	0.90%
Percentage of loans by geographic area as a percentage of loan type	9.60%
Commercial & industrial | Utah
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 46,497,000
Ratio of loans by geographic location to total loans	0.40%
Percentage of loans by geographic area as a percentage of loan type	4.80%
Commercial & industrial | Idaho
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 16,627,000
Ratio of loans by geographic location to total loans	0.20%
Percentage of loans by geographic area as a percentage of loan type	1.70%
Commercial & industrial | New Mexico
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 10,860,000
Ratio of loans by geographic location to total loans	0.10%
Percentage of loans by geographic area as a percentage of loan type	1.10%
Commercial & industrial | Texas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 42,594,000
Ratio of loans by geographic location to total loans	0.40%
Percentage of loans by geographic area as a percentage of loan type	4.40%
Commercial & industrial | Nevada
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 16,295,000
Ratio of loans by geographic location to total loans	0.10%
Percentage of loans by geographic area as a percentage of loan type	1.70%
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 139,002,000
Ratio of loans by geographic location to total loans	1.20%
Percentage of loans by geographic area as a percentage of loan type	100.00%
Consumer | Washington
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 41,212,000
Ratio of loans by geographic location to total loans	0.40%
Percentage of loans by geographic area as a percentage of loan type	29.60%
Consumer | Oregon
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 3,152,000
Ratio of loans by geographic location to total loans	0.00%
Percentage of loans by geographic area as a percentage of loan type	2.30%
Consumer | Arizona
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 309,000
Ratio of loans by geographic location to total loans	0.00%
Percentage of loans by geographic area as a percentage of loan type	0.20%
Consumer | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 91,874,000
Ratio of loans by geographic location to total loans	0.80%
Percentage of loans by geographic area as a percentage of loan type	66.10%
Consumer | Utah
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 39,000
Ratio of loans by geographic location to total loans	0.00%
Percentage of loans by geographic area as a percentage of loan type	0.00%
Consumer | Idaho
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 141,000
Ratio of loans by geographic location to total loans	0.00%
Percentage of loans by geographic area as a percentage of loan type	0.10%
Consumer | New Mexico
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 1,110,000
Ratio of loans by geographic location to total loans	0.00%
Percentage of loans by geographic area as a percentage of loan type	0.80%
Consumer | Texas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 1,085,000
Ratio of loans by geographic location to total loans	0.00%
Percentage of loans by geographic area as a percentage of loan type	0.80%
Consumer | Nevada
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 80,000
Ratio of loans by geographic location to total loans	0.00%
Percentage of loans by geographic area as a percentage of loan type	0.10%
HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 149,717,000
Ratio of loans by geographic location to total loans	1.40%
Percentage of loans by geographic area as a percentage of loan type	100.00%
HELOC | Washington
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 88,681,000
Ratio of loans by geographic location to total loans	0.80%
Percentage of loans by geographic area as a percentage of loan type	59.10%
HELOC | Oregon
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 13,711,000
Ratio of loans by geographic location to total loans	0.10%
Percentage of loans by geographic area as a percentage of loan type	9.20%
HELOC | Arizona
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 15,838,000
Ratio of loans by geographic location to total loans	0.20%
Percentage of loans by geographic area as a percentage of loan type	10.60%
HELOC | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 1,030,000
Ratio of loans by geographic location to total loans	0.00%
Percentage of loans by geographic area as a percentage of loan type	0.70%
HELOC | Utah
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 7,573,000
Ratio of loans by geographic location to total loans	0.10%
Percentage of loans by geographic area as a percentage of loan type	5.10%
HELOC | Idaho
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 6,973,000
Ratio of loans by geographic location to total loans	0.10%
Percentage of loans by geographic area as a percentage of loan type	4.70%
HELOC | New Mexico
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 13,790,000
Ratio of loans by geographic location to total loans	0.10%
Percentage of loans by geographic area as a percentage of loan type	9.20%
HELOC | Texas
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 305,000
Ratio of loans by geographic location to total loans	0.00%
Percentage of loans by geographic area as a percentage of loan type	0.20%
HELOC | Nevada
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 1,816,000
Ratio of loans by geographic location to total loans	0.00%
Percentage of loans by geographic area as a percentage of loan type	1.20%
Loans Receivable from Related Party Including Unfunded Loan Commitment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans granted to officers, directors, and related interests	$ 57,153,000	$ 55,965,000

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Loans Receivable - Loans Impaired, Loan Commitments and Loans Serviced (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Receivables [Abstract]
Recorded investment in impaired loans	$ 285,243	$ 341,579
TDRs included in impaired loans	261,531	302,713
Allocated reserves on impaired loans	1,980	2,323
Specific reserves on impaired loans	366	275
Average balance of impaired loans for year ended	265,771	333,815
Interest income from impaired loans for year ended	11,314	14,855
Outstanding fixed-rate origination commitments	331,947	230,869
Gross loans serviced for others	$ 80,896	$ 72,083

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Loans Receivable - Loans on Non-accrual Status (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual loans by portfolio segment	$ 42,414	$ 67,810
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	100.00%	100.00%
Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual loans by portfolio segment	$ 33,148	$ 59,074
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	78.20%	87.10%
Construction - speculative
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual loans by portfolio segment	$ 0	$ 754
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	0.00%	1.10%
Construction - custom
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual loans by portfolio segment	$ 0	$ 732
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	0.00%	1.10%
Land - acquisition & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual loans by portfolio segment	$ 58	$ 0
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	0.10%	0.00%
Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual loans by portfolio segment	$ 510	$ 1,273
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	1.20%	1.90%
Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual loans by portfolio segment	$ 776	$ 2,558
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	1.80%	3.80%
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual loans by portfolio segment	$ 7,100	$ 2,176
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	16.70%	3.20%
Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual loans by portfolio segment	$ 583	$ 0
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	1.40%	0.00%
HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual loans by portfolio segment	$ 239	$ 563
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	0.60%	0.80%
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual loans by portfolio segment	$ 0	$ 680
Ratio of nonaccrual loan by portfolio segment to total loans on nonaccrual status	0.00%	1.00%

XML

Loans Receivable - Loans Receivable, Analysis of Age of Loans in Past Due Status (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of LIPs & charge-offs	$ 10,071,124
Financing receivable, recorded investment, current	10,002,844
Financing receivable, recorded investment, past due	$ 68,280
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.68%	0.88%
Ratio of past due to total loans, net of charge-offs and LIPs, current	99.32%
Ratio of past due to total loans, net of charge-offs and LIPs, past due	0.68%
Financing Receivables, 1 to 29 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	$ 25,007
Ratio of past due to total loans, net of charge-offs and LIPs, past due	0.25%
Financing Receivables, 30 to 59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	$ 7,014
Ratio of past due to total loans, net of charge-offs and LIPs, past due	0.07%
Financing Receivables, 60 to 89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	$ 36,259
Ratio of past due to total loans, net of charge-offs and LIPs, past due	0.36%
Non-acquired loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of LIPs & charge-offs	$ 9,836,919
Financing receivable, recorded investment, current	9,780,558
Financing receivable, recorded investment, past due	$ 56,361
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.57%
Non-acquired loans | Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of LIPs & charge-offs	$ 5,624,783
Financing receivable, recorded investment, current	5,574,384
Financing receivable, recorded investment, past due	$ 50,399
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.90%
Non-acquired loans | Construction - speculative
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of LIPs & charge-offs	$ 497,393
Financing receivable, recorded investment, current	497,393
Financing receivable, recorded investment, past due	$ 0
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.00%
Non-acquired loans | Construction - custom
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of LIPs & charge-offs	$ 229,957
Financing receivable, recorded investment, current	229,419
Financing receivable, recorded investment, past due	$ 538
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.23%
Non-acquired loans | Land - acquisition & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of LIPs & charge-offs	$ 88,662
Financing receivable, recorded investment, current	88,662
Financing receivable, recorded investment, past due	$ 0
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.00%
Non-acquired loans | Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of LIPs & charge-offs	$ 102,386
Financing receivable, recorded investment, current	100,373
Financing receivable, recorded investment, past due	$ 2,013
Ratio of past due loans to total loans, net of charge-offs and LIPs	1.97%
Non-acquired loans | Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of LIPs & charge-offs	$ 1,119,042
Financing receivable, recorded investment, current	1,117,453
Financing receivable, recorded investment, past due	$ 1,589
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.14%
Non-acquired loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of LIPs & charge-offs	$ 955,944
Financing receivable, recorded investment, current	955,604
Financing receivable, recorded investment, past due	$ 340
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.04%
Non-acquired loans | Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of LIPs & charge-offs	$ 947,703
Financing receivable, recorded investment, current	947,661
Financing receivable, recorded investment, past due	$ 42
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.00%
Non-acquired loans | HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of LIPs & charge-offs	$ 134,214
Financing receivable, recorded investment, current	133,683
Financing receivable, recorded investment, past due	$ 531
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.40%
Non-acquired loans | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of LIPs & charge-offs	$ 136,835
Financing receivable, recorded investment, current	135,926
Financing receivable, recorded investment, past due	$ 909
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.66%
Non-acquired loans | Financing Receivables, 1 to 29 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	$ 24,656
Non-acquired loans | Financing Receivables, 1 to 29 Days Past Due | Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	20,917
Non-acquired loans | Financing Receivables, 1 to 29 Days Past Due | Construction - speculative
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	0
Non-acquired loans | Financing Receivables, 1 to 29 Days Past Due | Construction - custom
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	538
Non-acquired loans | Financing Receivables, 1 to 29 Days Past Due | Land - acquisition & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	0
Non-acquired loans | Financing Receivables, 1 to 29 Days Past Due | Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	816
Non-acquired loans | Financing Receivables, 1 to 29 Days Past Due | Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	1,190
Non-acquired loans | Financing Receivables, 1 to 29 Days Past Due | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	0
Non-acquired loans | Financing Receivables, 1 to 29 Days Past Due | Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	0
Non-acquired loans | Financing Receivables, 1 to 29 Days Past Due | HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	490
Non-acquired loans | Financing Receivables, 1 to 29 Days Past Due | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	705
Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	6,608
Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due | Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	5,173
Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due | Construction - speculative
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	0
Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due | Construction - custom
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	0
Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due | Land - acquisition & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	0
Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due | Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	687
Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due | Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	399
Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	183
Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due | Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	42
Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due | HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	0
Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	124
Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	25,097
Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due | Single-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	24,309
Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due | Construction - speculative
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	0
Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due | Construction - custom
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	0
Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due | Land - acquisition & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	0
Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due | Land - consumer lot loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	510
Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due | Multi-family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	0
Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	157
Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due | Commercial and Industrial Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	0
Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due | HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	41
Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	80
Acquired loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of LIPs & charge-offs	115,394
Financing receivable, recorded investment, current	114,770
Financing receivable, recorded investment, past due	$ 624
Ratio of past due loans to total loans, net of charge-offs and LIPs	0.54%
Acquired loans | Financing Receivables, 1 to 29 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	$ 124
Acquired loans | Financing Receivables, 30 to 59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	2
Acquired loans | Financing Receivables, 60 to 89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	498
Credit-impaired acquired loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of LIPs & charge-offs	89,837
Financing receivable, recorded investment, current	84,625
Financing receivable, recorded investment, past due	$ 5,212
Ratio of past due loans to total loans, net of charge-offs and LIPs	5.80%
Credit-impaired acquired loans | Financing Receivables, 1 to 29 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	$ 227
Credit-impaired acquired loans | Financing Receivables, 30 to 59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	142
Credit-impaired acquired loans | Financing Receivables, 60 to 89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	4,843
Covered Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount of loans, net of LIPs & charge-offs	28,974
Financing receivable, recorded investment, current	22,891
Financing receivable, recorded investment, past due	$ 6,083
Ratio of past due loans to total loans, net of charge-offs and LIPs	20.99%
Covered Loans | Financing Receivables, 1 to 29 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	$ 0
Covered Loans | Financing Receivables, 30 to 59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	262
Covered Loans | Financing Receivables, 60 to 89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, recorded investment, past due	$ 5,821

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Loans Receivable - Troubled Debt Restructurings and Loan Modifications (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2016 USD ($) contract	Sep. 30, 2015 USD ($) contract
Financing Receivable, Modifications [Line Items]
Approximate rate reduction concession, minimum	1.00%
Approximate rate reduction concession, maximum	2.00%
TDRs included in impaired loans	$ 261,531	$ 302,713
Percent of restructured loans performing	96.20%
Single family residential loans as percentage of restructured loans	87.20%
Number of contracts | contract	139	78
Pre-modification, outstanding recorded investment	$ 27,184	$ 18,930
Post-modification, outstanding recorded investment	$ 27,184	$ 18,930
Subsequent default, number of contracts | contract	25	20
Subsequent default, recorded investment	$ 6,086	$ 3,218
Single-family residential
Financing Receivable, Modifications [Line Items]
Number of contracts | contract	120	62
Pre-modification, outstanding recorded investment	$ 23,541	$ 13,378
Post-modification, outstanding recorded investment	$ 23,541	$ 13,378
Subsequent default, number of contracts | contract	17	18
Subsequent default, recorded investment	$ 4,875	$ 2,917
Construction
Financing Receivable, Modifications [Line Items]
Number of contracts | contract	0	2
Pre-modification, outstanding recorded investment	$ 0	$ 701
Post-modification, outstanding recorded investment	$ 0	$ 701
Subsequent default, number of contracts | contract	1	0
Subsequent default, recorded investment	$ 279	$ 0
Land - consumer lot loans
Financing Receivable, Modifications [Line Items]
Number of contracts | contract	10	9
Pre-modification, outstanding recorded investment	$ 970	$ 1,546
Post-modification, outstanding recorded investment	$ 970	$ 1,546
Subsequent default, number of contracts | contract	5	2
Subsequent default, recorded investment	$ 606	$ 301
Commercial real estate
Financing Receivable, Modifications [Line Items]
Number of contracts | contract	7	3
Pre-modification, outstanding recorded investment	$ 2,523	$ 3,175
Post-modification, outstanding recorded investment	$ 2,523	$ 3,175
Subsequent default, number of contracts | contract	2	0
Subsequent default, recorded investment	$ 326	$ 0
HELOC
Financing Receivable, Modifications [Line Items]
Number of contracts | contract	1	1
Pre-modification, outstanding recorded investment	$ 126	$ 50
Post-modification, outstanding recorded investment	$ 126	$ 50
Consumer
Financing Receivable, Modifications [Line Items]
Number of contracts | contract	1	1
Pre-modification, outstanding recorded investment	$ 24	$ 80
Post-modification, outstanding recorded investment	$ 24	$ 80
Minimum
Financing Receivable, Modifications [Line Items]
Term for payment and rate reduction	6 months
Maximum
Financing Receivable, Modifications [Line Items]
Term for payment and rate reduction	12 months

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Loans Receivable - Changes in Accretable Yield for Acquired Impaired Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Accretion	$ 236	$ 518
Credit-impaired acquired loans
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Accretable yield, balance at beginning of period	72,705	97,125
Carrying amount, balance at beginning of period	111,300	135,826
Accretable yield, reclassifications from nonaccretable balance, net	4,867	6,307
Carrying amount, reclassifications from nonaccretable balance, net	0	0
Accretable yield, accretion	(18,730)	(30,727)
Accretion	18,730	30,727
Accretable yield, transfers to real estate owned	0	0
Carrying amount, transfers to real estate owned	(175)	(2,975)
Accretable yield, payments received, net	0	0
Carrying amount, payments received, net	(38,094)	(52,278)
Accretable yield, balance at end of period	58,842	72,705
Carrying amount, balance at end of period	91,761	111,300
Acquired non-impaired loans
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Accretable yield, balance at beginning of period	7,204	14,513
Carrying amount, balance at beginning of period	187,080	275,862
Accretable yield, reclassifications from nonaccretable balance, net	0	346
Carrying amount, reclassifications from nonaccretable balance, net	0	0
Accretable yield, accretion	(2,982)	(7,655)
Accretion	2,982	7,655
Accretable yield, transfers to real estate owned	0	0
Carrying amount, transfers to real estate owned	0	(150)
Accretable yield, payments received, net	0	0
Carrying amount, payments received, net	(58,930)	(96,287)
Accretable yield, balance at end of period	4,222	7,204
Carrying amount, balance at end of period	$ 131,132	$ 187,080

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Loans Receivable - Schedule of Covered Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recovery term (in years)	3 years
Single family residential coverage term (in years)	4 years
Loans receivable, gross	$ 10,950,608	$ 9,823,270
Discount balance related to acquired loans		2,738
FDIC Indemnification Asset Movement Analysis
Balance at beginning of year	16,275	36,860
Additions and impairment	0	(1,795)
Payments received	(1,730)	(720)
Amortization	(2,012)	(18,588)
Accretion	236	518
Balance at end of year	$ 12,769	$ 16,275

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Allowance for Losses on Loans - Allowance for Losses on Loans (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance				$ 106,829				$ 114,591	$ 106,829	$ 114,591
Charge-offs									(6,000)	(14,600)
Recoveries									19,065	19,970
Provision & Transfers									(6,400)	(13,132)
Ending Allowance	$ 113,494				$ 106,829				113,494	106,829	$ 114,591
Provision (release) for loan losses	(3,100)	$ (1,650)	$ (1,500)	0	219	$ (1,932)	$ (3,949)	(5,500)	(6,250)	(11,162)	(15,401)
Single-family residential
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance				47,347				62,763	47,347	62,763
Charge-offs									(3,106)	(5,524)
Recoveries									3,251	13,403
Provision & Transfers									(9,696)	(23,295)
Ending Allowance	37,796				47,347				37,796	47,347	62,763
Construction
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance				6,680				6,742	6,680	6,742
Charge-offs									0	(388)
Recoveries									745	120
Provision & Transfers									12,413	206
Ending Allowance	19,838				6,680				19,838	6,680	6,742
Construction - custom
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance				990				1,695	990	1,695
Charge-offs									(60)	0
Recoveries									60	0
Provision & Transfers									90	(705)
Ending Allowance	1,080				990				1,080	990	1,695
Land - acquisition & development
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance				5,781				5,592	5,781	5,592
Charge-offs									(42)	(38)
Recoveries									8,220	207
Provision & Transfers									(7,936)	20
Ending Allowance	6,023				5,781				6,023	5,781	5,592
Land - consumer lot loans
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance				2,946				3,077	2,946	3,077
Charge-offs									(732)	(459)
Recoveries									5	221
Provision & Transfers									316	107
Ending Allowance	2,535				2,946				2,535	2,946	3,077
Multi-family
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance				5,304				4,248	5,304	4,248
Charge-offs									0	0
Recoveries									0	220
Provision & Transfers									1,621	836
Ending Allowance	6,925				5,304				6,925	5,304	4,248
Commercial real estate
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance				8,960				7,548	8,960	7,548
Charge-offs									(103)	(1,711)
Recoveries									1,812	735
Provision & Transfers									(2,081)	2,388
Ending Allowance	8,588				8,960				8,588	8,960	7,548
Commercial & industrial
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance				24,980				16,527	24,980	16,527
Charge-offs									(941)	(3,354)
Recoveries									2,933	1,374
Provision & Transfers									1,036	10,433
Ending Allowance	28,008				24,980				28,008	24,980	16,527
HELOC
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance				902				928	902	928
Charge-offs									(54)	(66)
Recoveries									21	2
Provision & Transfers									(56)	38
Ending Allowance	813				902				813	902	928
Consumer
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance				2,939				3,227	2,939	3,227
Charge-offs									(962)	(3,060)
Recoveries									2,018	3,688
Provision & Transfers									(2,107)	(916)
Ending Allowance	$ 1,888				2,939				1,888	2,939	3,227
Covered Loans
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Allowance				$ 0				$ 2,244	$ 0	2,244
Charge-offs										0
Recoveries										0
Provision & Transfers										(2,244)
Ending Allowance					$ 0					$ 0	$ 2,244

XML

Allowance for Losses on Loans - Narrative (Details) - USD ($)	3 Months Ended										12 Months Ended
	Sep. 30, 2016		Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015		Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2016		Sep. 30, 2015		Sep. 30, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Provision (release) for loan losses	$ (3,100,000)		$ (1,650,000)	$ (1,500,000)	$ 0	$ 219,000		$ (1,932,000)	$ (3,949,000)	$ (5,500,000)	$ (6,250,000)		$ (11,162,000)		$ (15,401,000)
Allowance for credit losses, charge-offs, net of recoveries											(13,065,000)		(5,370,000)
Nonaccrual loans by portfolio segment	42,414,000					67,810,000					42,414,000		67,810,000
Loans receivable, gross	10,950,608,000					9,823,270,000					10,950,608,000		9,823,270,000
Covered loans, allowance for losses	0					0					0		0
Allowance for probable losses	113,494,000					106,829,000					113,494,000		106,829,000		$ 114,591,000
Loans Collectively Evaluated for Impairment
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans receivable, gross	9,784,140,000	[1]				8,963,453,000	[2]				9,784,140,000	[1]	8,963,453,000	[2]
Allowance for probable losses	113,128,000					106,554,000					113,128,000		106,554,000
Loans Individually Evaluated for Impairment
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans receivable, gross	34,271,000	[1]				85,513,000	[2]				34,271,000	[1]	85,513,000	[2]
Allowance for probable losses	366,000					275,000					366,000		275,000
Covered Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans receivable, gross	28,974,000					75,909,000					28,974,000		75,909,000
Non-Performing Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Nonaccrual loans by portfolio segment	42,414,000					67,810,000					42,414,000		67,810,000
Loans receivable, gross	$ 71,441,000					$ 128,908,000					$ 71,441,000		$ 128,908,000
Ratio of non-performing assets to total assets	0.48%					0.88%					0.48%		0.88%
Acquired loans subject to general allowance	$ 20,175,000										$ 20,175,000

[1] Excludes acquired loans with discounts sufficient to absorb potential losses and covered loans

[2] Excludes acquired loans with discounts sufficient to absorb potential losses and covered loans

XML

Allowance for Losses on Loans - Loans Collectively and Individually Evaluated for Impairment (Details) - USD ($) $ in Thousands	Sep. 30, 2016		Sep. 30, 2015		Sep. 30, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Specific reserves on impaired loans	$ 366		$ 275
Amount of related allowance included in general reserves	3,549		6,403
General/specific reserve allocation	113,494		106,829		$ 114,591
Gross loans subject to general/specific reserve	10,950,608		9,823,270
Single-family residential
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	37,796		47,347		62,763
Gross loans subject to general/specific reserve	5,658,827
Construction
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	19,838		6,680		6,742
Gross loans subject to general/specific reserve	1,110,411
Construction - custom
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	1,080		990		1,695
Gross loans subject to general/specific reserve	473,069
Land - acquisition & development
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	6,023		5,781		5,592
Gross loans subject to general/specific reserve	118,497
Land - consumer lot loans
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	2,535		2,946		3,077
Gross loans subject to general/specific reserve	104,568
Multi-family
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	6,925		5,304		4,248
Gross loans subject to general/specific reserve	1,124,289
Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	8,588		8,960		7,548
Gross loans subject to general/specific reserve	1,093,639
Commercial & industrial
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	28,008		24,980		16,527
Gross loans subject to general/specific reserve	978,589
HELOC
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	813		902		928
Gross loans subject to general/specific reserve	149,717
Consumer
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	1,888		2,939		$ 3,227
Gross loans subject to general/specific reserve	139,002
Loans Collectively Evaluated for Impairment
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	113,128		106,554
Gross loans subject to general/specific reserve	$ 9,784,140	[1]	$ 8,963,453	[2]
Ratio	1.20%		1.20%
Loans Collectively Evaluated for Impairment | Single-family residential
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	$ 37,536		$ 47,073
Gross loans subject to general/specific reserve	$ 5,585,912		$ 5,595,752
Ratio	0.70%		0.80%
Loans Collectively Evaluated for Impairment | Construction
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	$ 19,838		$ 6,680
Gross loans subject to general/specific reserve	$ 498,450		$ 124,679
Ratio	4.00%		5.40%
Loans Collectively Evaluated for Impairment | Construction - custom
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	$ 1,080		$ 990
Gross loans subject to general/specific reserve	$ 229,298		$ 205,692
Ratio	0.50%		0.50%
Loans Collectively Evaluated for Impairment | Land - acquisition & development
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	$ 6,022		$ 5,781
Gross loans subject to general/specific reserve	$ 90,850		$ 72,602
Ratio	6.60%		8.00%
Loans Collectively Evaluated for Impairment | Land - consumer lot loans
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	$ 2,535		$ 2,946
Gross loans subject to general/specific reserve	$ 92,828		$ 93,103
Ratio	2.70%		3.20%
Loans Collectively Evaluated for Impairment | Multi-family
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	$ 6,911		$ 5,304
Gross loans subject to general/specific reserve	$ 1,091,974		$ 1,062,194
Ratio	0.60%		0.50%
Loans Collectively Evaluated for Impairment | Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	$ 8,497		$ 8,960
Gross loans subject to general/specific reserve	$ 957,380		$ 844,691
Ratio	0.90%		1.10%
Loans Collectively Evaluated for Impairment | Commercial & industrial
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	$ 28,008		$ 24,980
Gross loans subject to general/specific reserve	$ 966,930		$ 643,577
Ratio	2.90%		3.90%
Loans Collectively Evaluated for Impairment | HELOC
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	$ 813		$ 902
Gross loans subject to general/specific reserve	$ 133,203		$ 126,594
Ratio	0.60%		0.70%
Loans Collectively Evaluated for Impairment | Consumer
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	$ 1,888		$ 2,938
Gross loans subject to general/specific reserve	$ 137,315		$ 194,569
Ratio	1.40%		1.50%
Loans Individually Evaluated for Impairment
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	$ 366		$ 275
Gross loans subject to general/specific reserve	$ 34,271	[1]	$ 85,513	[2]
Ratio	1.10%		0.30%
Loans Individually Evaluated for Impairment | Single-family residential
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	$ 260		$ 275
Gross loans subject to general/specific reserve	$ 19,629		$ 51,718
Ratio	1.30%		0.50%
Loans Individually Evaluated for Impairment | Construction
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	$ 0		$ 0
Gross loans subject to general/specific reserve	$ 0		$ 5,441
Ratio	0.00%		0.00%
Loans Individually Evaluated for Impairment | Construction - custom
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	$ 0		$ 0
Gross loans subject to general/specific reserve	$ 330		$ 0
Ratio	0.00%		0.00%
Loans Individually Evaluated for Impairment | Land - acquisition & development
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	$ 2		$ 0
Gross loans subject to general/specific reserve	$ 850		$ 2,198
Ratio	0.20%		0.00%
Loans Individually Evaluated for Impairment | Land - consumer lot loans
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	$ 0		$ 0
Gross loans subject to general/specific reserve	$ 558		$ 10,824
Ratio	0.00%		0.00%
Loans Individually Evaluated for Impairment | Multi-family
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	$ 13		$ 0
Gross loans subject to general/specific reserve	$ 1,505		$ 5,348
Ratio	0.90%		0.00%
Loans Individually Evaluated for Impairment | Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	$ 91		$ 0
Gross loans subject to general/specific reserve	$ 11,157		$ 8,826
Ratio	0.80%		0.00%
Loans Individually Evaluated for Impairment | Commercial & industrial
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	$ 0		$ 0
Gross loans subject to general/specific reserve	$ 0		$ 0
Ratio	0.00%		0.00%
Loans Individually Evaluated for Impairment | HELOC
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	$ 0		$ 0
Gross loans subject to general/specific reserve	$ 239		$ 1,072
Ratio	0.00%		0.00%
Loans Individually Evaluated for Impairment | Consumer
Financing Receivable, Allowance for Credit Losses [Line Items]
General/specific reserve allocation	$ 0		$ 0
Gross loans subject to general/specific reserve	$ 3		$ 86
Ratio	0.00%		0.00%

[1] Excludes acquired loans with discounts sufficient to absorb potential losses and covered loans

[2] Excludes acquired loans with discounts sufficient to absorb potential losses and covered loans

XML

Allowance for Losses on Loans - Internally Assigned Grade (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 10,950,608	$ 9,823,270
Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	10,716,403	9,493,987
Acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	115,394	166,293
Credit-impaired acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	89,837	87,081
Covered Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	28,974	75,909
Single-family residential
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	5,658,827
Single-family residential | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	5,621,066	5,651,845
Construction
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	1,110,411
Construction | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	1,110,411	200,509
Construction - custom
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	473,069
Construction - custom | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	473,069	396,307
Land - acquisition & development
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	118,497
Land - acquisition & development | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	116,156	94,208
Land - consumer lot loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	104,568
Land - consumer lot loans | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	101,853	103,989
Multi-family
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	1,124,289
Multi-family | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	1,118,801	1,125,722
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	1,093,639
Commercial real estate | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	956,164	986,270
Commercial & industrial
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	978,589
Commercial & industrial | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	946,648	612,836
HELOC
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	149,717
HELOC | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	134,785	127,646
Consumer
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	139,002
Consumer | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	137,450	194,655
Pass
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 10,764,097	$ 9,605,919
Grade as percentage of total gross assets	98.30%	97.80%
Pass | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 10,565,849	$ 9,333,233
Pass | Acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	108,616	149,891
Pass | Credit-impaired acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	60,985	61,019
Pass | Covered Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	28,647	61,776
Pass | Single-family residential | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	5,570,634	5,558,700
Pass | Construction | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	1,098,549	197,935
Pass | Construction - custom | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	473,069	396,307
Pass | Land - acquisition & development | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	110,125	89,656
Pass | Land - consumer lot loans | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	100,862	103,569
Pass | Multi-family | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	1,112,342	1,118,673
Pass | Commercial real estate | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	928,032	971,510
Pass | Commercial & industrial | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	900,571	575,034
Pass | HELOC | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	134,298	127,398
Pass | Consumer | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	137,367	194,451
Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 32,485	$ 6,721
Grade as percentage of total gross assets	0.30%	0.10%
Special mention | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 32,438	$ 6,721
Special mention | Acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	47	0
Special mention | Credit-impaired acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Special mention | Covered Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Special mention | Single-family residential | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Special mention | Construction | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	8,595	0
Special mention | Construction - custom | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Special mention | Land - acquisition & development | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Special mention | Land - consumer lot loans | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Special mention | Multi-family | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	3,237	865
Special mention | Commercial real estate | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	13,446	4,360
Special mention | Commercial & industrial | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	7,160	1,496
Special mention | HELOC | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Special mention | Consumer | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 154,026	$ 210,630
Grade as percentage of total gross assets	1.40%	2.10%
Substandard | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 118,116	$ 154,033
Substandard | Acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	6,731	16,402
Substandard | Credit-impaired acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	28,852	26,062
Substandard | Covered Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	327	14,133
Substandard | Single-family residential | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	50,432	93,145
Substandard | Construction | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	3,267	2,574
Substandard | Construction - custom | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Substandard | Land - acquisition & development | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	6,031	4,552
Substandard | Land - consumer lot loans | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	991	420
Substandard | Multi-family | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	3,222	6,184
Substandard | Commercial real estate | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	14,686	10,400
Substandard | Commercial & industrial | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	38,917	36,306
Substandard | HELOC | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	487	248
Substandard | Consumer | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	83	204
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 0	$ 0
Grade as percentage of total gross assets	0.00%	0.00%
Doubtful | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 0	$ 0
Doubtful | Acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Doubtful | Credit-impaired acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Doubtful | Covered Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Doubtful | Single-family residential | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Doubtful | Construction | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Doubtful | Construction - custom | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Doubtful | Land - acquisition & development | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Doubtful | Land - consumer lot loans | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Doubtful | Multi-family | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Doubtful | Commercial real estate | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Doubtful | Commercial & industrial | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Doubtful | HELOC | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Doubtful | Consumer | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Loss
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 0	$ 0
Grade as percentage of total gross assets	0.00%	0.00%
Loss | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 0	$ 0
Loss | Acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Loss | Credit-impaired acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Loss | Covered Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Loss | Single-family residential | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Loss | Construction | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Loss | Construction - custom | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Loss | Land - acquisition & development | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Loss | Land - consumer lot loans | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Loss | Multi-family | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Loss | Commercial real estate | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Loss | Commercial & industrial | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Loss | HELOC | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	0	0
Loss | Consumer | Non-acquired loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 0	$ 0

XML

Allowance for Losses on Loans - Credit Risk Profile Based on Payment Activity (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 10,950,608	$ 9,823,270
Nonaccrual loans by portfolio segment	42,414	67,810
Single-family residential
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	5,658,827
Construction
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	1,110,411
Construction - custom
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	473,069
Land - acquisition & development
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	118,497
Land - consumer lot loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	104,568
Multi-family
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	1,124,289
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	1,093,639
Commercial & industrial
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	978,589
HELOC
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	149,717
Consumer
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	139,002
Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 10,673,989	$ 9,426,177
Grade as percentage of total gross assets	99.60%	99.30%
Performing Loans | Single-family residential
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 5,587,919	$ 5,592,771
Grade as percentage of total gross assets	99.40%	99.00%
Performing Loans | Construction
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 1,110,411	$ 199,755
Grade as percentage of total gross assets	100.00%	99.60%
Performing Loans | Construction - custom
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 473,069	$ 395,575
Grade as percentage of total gross assets	100.00%	99.80%
Performing Loans | Land - acquisition & development
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 116,097	$ 94,208
Grade as percentage of total gross assets	99.90%	100.00%
Performing Loans | Land - consumer lot loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 101,343	$ 102,716
Grade as percentage of total gross assets	99.50%	98.80%
Performing Loans | Multi-family
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 1,118,025	$ 1,123,165
Grade as percentage of total gross assets	99.90%	99.80%
Performing Loans | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 949,064	$ 984,093
Grade as percentage of total gross assets	99.30%	99.80%
Performing Loans | Commercial & industrial
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 946,065	$ 612,836
Grade as percentage of total gross assets	99.90%	100.00%
Performing Loans | HELOC
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 134,546	$ 127,083
Grade as percentage of total gross assets	99.80%	99.60%
Performing Loans | Consumer
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 137,450	$ 193,975
Grade as percentage of total gross assets	100.00%	99.70%
Non-Performing Loans
Financing Receivable, Recorded Investment [Line Items]
Loans receivable, gross	$ 71,441	$ 128,908
Nonaccrual loans by portfolio segment	$ 42,414	$ 67,810
Percentage of total gross loans	0.40%	0.70%
Non-Performing Loans | Single-family residential
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 33,148	$ 59,074
Percentage of total gross loans	0.60%	1.00%
Non-Performing Loans | Construction
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 0	$ 754
Percentage of total gross loans	0.00%	0.40%
Non-Performing Loans | Construction - custom
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 0	$ 732
Percentage of total gross loans	0.00%	0.20%
Non-Performing Loans | Land - acquisition & development
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 58	$ 0
Percentage of total gross loans	0.10%	0.00%
Non-Performing Loans | Land - consumer lot loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 510	$ 1,273
Percentage of total gross loans	0.50%	1.20%
Non-Performing Loans | Multi-family
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 776	$ 2,558
Percentage of total gross loans	0.10%	0.20%
Non-Performing Loans | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 7,100	$ 2,176
Percentage of total gross loans	0.70%	0.20%
Non-Performing Loans | Commercial & industrial
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 583	$ 0
Percentage of total gross loans	0.10%	0.00%
Non-Performing Loans | HELOC
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 239	$ 563
Percentage of total gross loans	0.20%	0.40%
Non-Performing Loans | Consumer
Financing Receivable, Recorded Investment [Line Items]
Nonaccrual loans by portfolio segment	$ 0	$ 680
Percentage of total gross loans	0.00%	0.30%

XML

Allowance for Losses on Loans - Impaired Loans Based on Loan Types (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016		Sep. 30, 2015
Financing Receivable, Impaired [Line Items]
Recorded investment	$ 285,243		$ 341,579
Unpaid principal balance	321,743		381,223
Related allowance	3,915	[1]	6,678	[2]
Average recorded investment	265,771		333,815
Amount of related allowance included in specific reserves	366		275
Amount of related allowance included in general reserves	3,549		6,403
Single-family residential
Financing Receivable, Impaired [Line Items]
Recorded investment	237,813		276,711
Unpaid principal balance	243,961		282,912
Related allowance	3,809		6,678
Average recorded investment	223,143		274,097
Construction
Financing Receivable, Impaired [Line Items]
Recorded investment	0		5,441
Unpaid principal balance	0		7,929
Related allowance	0		0
Average recorded investment	0		5,903
Construction - custom
Financing Receivable, Impaired [Line Items]
Recorded investment	0		554
Unpaid principal balance	0		554
Related allowance	0		0
Average recorded investment	0		182
Land - acquisition & development
Financing Receivable, Impaired [Line Items]
Recorded investment	1,292		5,056
Unpaid principal balance	11,095		12,852
Related allowance	1		0
Average recorded investment	2,380		4,404
Land - consumer lot loans
Financing Receivable, Impaired [Line Items]
Recorded investment	10,129		12,016
Unpaid principal balance	11,287		12,368
Related allowance	1		0
Average recorded investment	9,865		11,868
Multi-family
Financing Receivable, Impaired [Line Items]
Recorded investment	1,899		7,593
Unpaid principal balance	5,477		10,877
Related allowance	13		0
Average recorded investment	2,160		5,277
Commercial real estate
Financing Receivable, Impaired [Line Items]
Recorded investment	31,175		28,551
Unpaid principal balance	44,149		36,698
Related allowance	91		0
Average recorded investment	25,571		27,016
Commercial & industrial
Financing Receivable, Impaired [Line Items]
Recorded investment	1,030		2,955
Unpaid principal balance	3,082		13,066
Related allowance	0		0
Average recorded investment	863		2,681
HELOC
Financing Receivable, Impaired [Line Items]
Recorded investment	1,715		2,126
Unpaid principal balance	1,836		2,975
Related allowance	0		0
Average recorded investment	1,578		1,895
Consumer
Financing Receivable, Impaired [Line Items]
Recorded investment	190		576
Unpaid principal balance	856		992
Related allowance	0		0
Average recorded investment	211		492
No Allowance Recorded
Financing Receivable, Impaired [Line Items]
Recorded investment	23,712		38,866
Unpaid principal balance	50,196		70,564
Related allowance	0		0
Average recorded investment	15,479		29,474
No Allowance Recorded | Single-family residential
Financing Receivable, Impaired [Line Items]
Recorded investment	9,627		17,250
Unpaid principal balance	11,366		19,644
Related allowance	0		0
Average recorded investment	6,511		14,069
No Allowance Recorded | Construction
Financing Receivable, Impaired [Line Items]
Recorded investment	0		453
Unpaid principal balance	0		2,151
Related allowance	0		0
Average recorded investment	0		471
No Allowance Recorded | Construction - custom
Financing Receivable, Impaired [Line Items]
Recorded investment	0		554
Unpaid principal balance	0		554
Related allowance	0		0
Average recorded investment	0		182
No Allowance Recorded | Land - acquisition & development
Financing Receivable, Impaired [Line Items]
Recorded investment	138		2,570
Unpaid principal balance	9,001		9,426
Related allowance	0		0
Average recorded investment	614		926
No Allowance Recorded | Land - consumer lot loans
Financing Receivable, Impaired [Line Items]
Recorded investment	499		727
Unpaid principal balance	609		814
Related allowance	0		0
Average recorded investment	317		544
No Allowance Recorded | Multi-family
Financing Receivable, Impaired [Line Items]
Recorded investment	394		3,770
Unpaid principal balance	3,972		7,054
Related allowance	0		0
Average recorded investment	638		1,545
No Allowance Recorded | Commercial real estate
Financing Receivable, Impaired [Line Items]
Recorded investment	11,741		9,427
Unpaid principal balance	21,301		15,620
Related allowance	0		0
Average recorded investment	6,260		8,130
No Allowance Recorded | Commercial & industrial
Financing Receivable, Impaired [Line Items]
Recorded investment	1,030		2,955
Unpaid principal balance	3,082		13,066
Related allowance	0		0
Average recorded investment	863		2,681
No Allowance Recorded | HELOC
Financing Receivable, Impaired [Line Items]
Recorded investment	209		683
Unpaid principal balance	315		1,532
Related allowance	0		0
Average recorded investment	165		536
No Allowance Recorded | Consumer
Financing Receivable, Impaired [Line Items]
Recorded investment	74		477
Unpaid principal balance	550		703
Related allowance	0		0
Average recorded investment	111		390
Allowance Recorded
Financing Receivable, Impaired [Line Items]
Recorded investment	261,531		302,713
Unpaid principal balance	271,547		310,659
Related allowance	3,915	[1]	6,678	[2]
Average recorded investment	250,292		304,341
Allowance Recorded | Single-family residential
Financing Receivable, Impaired [Line Items]
Recorded investment	228,186		259,461
Unpaid principal balance	232,595		263,268
Related allowance	3,809		6,678
Average recorded investment	216,632		260,028
Allowance Recorded | Construction
Financing Receivable, Impaired [Line Items]
Recorded investment	0		4,988
Unpaid principal balance	0		5,778
Related allowance	0		0
Average recorded investment	0		5,432
Allowance Recorded | Construction - custom
Financing Receivable, Impaired [Line Items]
Recorded investment	0		0
Unpaid principal balance	0		0
Related allowance	0		0
Average recorded investment	0		0
Allowance Recorded | Land - acquisition & development
Financing Receivable, Impaired [Line Items]
Recorded investment	1,154		2,486
Unpaid principal balance	2,094		3,426
Related allowance	1		0
Average recorded investment	1,766		3,478
Allowance Recorded | Land - consumer lot loans
Financing Receivable, Impaired [Line Items]
Recorded investment	9,630		11,289
Unpaid principal balance	10,678		11,554
Related allowance	1		0
Average recorded investment	9,548		11,324
Allowance Recorded | Multi-family
Financing Receivable, Impaired [Line Items]
Recorded investment	1,505		3,823
Unpaid principal balance	1,505		3,823
Related allowance	13		0
Average recorded investment	1,522		3,732
Allowance Recorded | Commercial real estate
Financing Receivable, Impaired [Line Items]
Recorded investment	19,434		19,124
Unpaid principal balance	22,848		21,078
Related allowance	91		0
Average recorded investment	19,311		18,886
Allowance Recorded | Commercial & industrial
Financing Receivable, Impaired [Line Items]
Recorded investment	0		0
Unpaid principal balance	0		0
Related allowance	0		0
Average recorded investment	0		0
Allowance Recorded | HELOC
Financing Receivable, Impaired [Line Items]
Recorded investment	1,506		1,443
Unpaid principal balance	1,521		1,443
Related allowance	0		0
Average recorded investment	1,413		1,359
Allowance Recorded | Consumer
Financing Receivable, Impaired [Line Items]
Recorded investment	116		99
Unpaid principal balance	306		289
Related allowance	0		0
Average recorded investment	$ 100		$ 102

[1] Includes $366,000 of specific reserves and $3,549,000 included in the general reserves.

[2] Includes $275,000 of specific reserves and $6,403,000 included in the general reserves.

XML

Fair Value Measurements - Fair Value Measured on Recurring Basis (Details) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	$ 1,922,894,000	$ 2,380,563,000
Total Financial Assets	3,364,450,000	4,017,983,000
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	1,922,894,000	2,380,563,000
Interest rate contracts	20,895,000	11,879,000
Total Financial Assets	1,943,789,000	2,392,442,000
Total Financial Liabilities	55,554,000	27,400,000
Level 1 to level 2 transfers	0	0
Level 2 to level 1 transfers	0	0
Level 1 to level 3 transfers	0	0
Level 3 to level 1 transfers	0	0
Level 2 to level 3 transfers	0	0
Level 3 to level 2 transfers	0	0
Fair Value, Measurements, Recurring | Interest rate contract
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial liabilities	20,895,000	11,879,000
Fair Value, Measurements, Recurring | Commercial loan hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial liabilities	3,312,000	966,000
Fair Value, Measurements, Recurring | Long term borrowing hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial liabilities	31,347,000	14,555,000
Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	101,824,000	101,952,000
Interest rate contracts	0
Total Financial Assets	101,824,000	101,952,000
Total Financial Liabilities	0	0
Fair Value, Measurements, Recurring | Level 1 | Interest rate contract
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial liabilities	0	0
Fair Value, Measurements, Recurring | Level 1 | Commercial loan hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial liabilities	0	0
Fair Value, Measurements, Recurring | Level 1 | Long term borrowing hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial liabilities	0	0
Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	1,821,070,000	2,278,611,000
Interest rate contracts	20,895,000	11,879,000
Total Financial Assets	1,841,965,000	2,290,490,000
Total Financial Liabilities	55,554,000	27,400,000
Fair Value, Measurements, Recurring | Level 2 | Interest rate contract
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial liabilities	20,895,000	11,879,000
Fair Value, Measurements, Recurring | Level 2 | Commercial loan hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial liabilities	3,312,000	966,000
Fair Value, Measurements, Recurring | Level 2 | Long term borrowing hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial liabilities	31,347,000	14,555,000
Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0	0
Interest rate contracts	0	0
Total Financial Assets	0	0
Total Financial Liabilities	0	0
Fair Value, Measurements, Recurring | Level 3 | Interest rate contract
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial liabilities	0	0
Fair Value, Measurements, Recurring | Level 3 | Commercial loan hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial liabilities	0	0
Fair Value, Measurements, Recurring | Level 3 | Long term borrowing hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial liabilities	0	0
Equity securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	101,824,000	101,952,000
Equity securities | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	101,824,000	101,952,000
Equity securities | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0	0
Equity securities | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0	0
U.S. government and agency securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	259,351,000	482,464,000
U.S. government and agency securities | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0	0
U.S. government and agency securities | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	259,351,000	482,464,000
U.S. government and agency securities | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0	0
Municipal bonds | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	27,670,000	27,123,000
Municipal bonds | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0	0
Municipal bonds | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	27,670,000	27,123,000
Municipal bonds | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0	0
Corporate debt securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	461,138,000	505,800,000
Corporate debt securities | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0	0
Corporate debt securities | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	461,138,000	505,800,000
Corporate debt securities | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0	0
Agency pass through mortgage-backed securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	993,041,000	0
Agency pass through mortgage-backed securities | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0
Agency pass through mortgage-backed securities | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	993,041,000
Agency pass through mortgage-backed securities | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0
Other commercial mortgage-backed securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	79,870,000	1,160,518,000
Other commercial mortgage-backed securities | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0	0
Other commercial mortgage-backed securities | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	79,870,000	1,160,518,000
Other commercial mortgage-backed securities | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0	0
Other debt securites | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0	102,706,000
Other debt securites | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0	0
Other debt securites | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0	102,706,000
Other debt securites | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	$ 0	$ 0

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Fair Value Measurements - Fair Value Measured on Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands	3 Months Ended				12 Months Ended
	Sep. 30, 2016		Sep. 30, 2015		Sep. 30, 2016		Sep. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on nonrecurring basis	$ 42,666		$ 88,183		$ 42,666		$ 88,183
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on nonrecurring basis	0		0		0		0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on nonrecurring basis	0		0		0		0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on nonrecurring basis	42,666		88,183		42,666		88,183
Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on nonrecurring basis	17,476	[1]	6,735	[2]	17,476	[1]	6,735	[2]
Impaired loans | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on nonrecurring basis	0		0		0		0
Impaired loans | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on nonrecurring basis	0		0		0		0
Impaired loans | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on nonrecurring basis	17,476		6,735		17,476		6,735
Real estate held for sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on nonrecurring basis	25,190	[3]	81,448	[4]	25,190	[3]	81,448	[4]
Real estate held for sale | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on nonrecurring basis	0		0		0		0
Real estate held for sale | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on nonrecurring basis	0		0		0		0
Real estate held for sale | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on nonrecurring basis	25,190		81,448		25,190		81,448
Changes Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Losses related to impaired loans and real estate held for sale	(1,477)		(694)		(8,183)		3,508
Changes Measurement | Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Losses related to impaired loans and real estate held for sale	(474)		(40)		(4,236)		(4,241)
Changes Measurement | Real estate held for sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Losses related to impaired loans and real estate held for sale	$ (1,003)		$ (654)		$ (3,947)		$ 7,749

[1] The gains (losses) represent remeasurements of collateral-dependent impaired loans.

[2] The gains (losses) represent remeasurements of collateral-dependent impaired loans.

[3] The gains (losses) represent aggregate writedowns and charge-offs on real estate owned.

[4] The gains (losses) represent aggregate writedowns and charge-offs on real estate owned.

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Fair Value Measurements - Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	$ 1,922,894	$ 2,380,563
Held-to-maturity securities	1,441,556	1,637,420
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	1,922,894	2,380,563
Held-to-maturity securities	1,417,599	1,643,216
Carrying Amount | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	450,368	284,049
Carrying Amount | Level 1 | Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	101,824	101,952
Carrying Amount | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
FHLB and FRB stock	117,205	107,198
Interest rate contracts	20,895	11,879
Customer accounts	10,600,852	10,631,703
FHLB advances and other borrowings	2,080,000	1,830,000
Carrying Amount | Level 2 | Interest rate contract
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other liabilities	20,895	11,879
Carrying Amount | Level 2 | Commercial loan hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other liabilities	3,312	966
Carrying Amount | Level 2 | Long term borrowing hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other liabilities	31,347	14,555
Carrying Amount | Level 2 | Agency pass through mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities	1,417,599	1,643,216
Carrying Amount | Level 2 | U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	259,351	482,464
Carrying Amount | Level 2 | Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	27,670	27,123
Carrying Amount | Level 2 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	461,138	505,800
Carrying Amount | Level 2 | Agency pass through mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	993,041	1,160,518
Carrying Amount | Level 2 | Commercial MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	79,870	102,706
Carrying Amount | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable	9,910,920	9,170,634
FDIC indemnification asset	12,769	16,275
Estimated Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	1,922,894	2,380,563
Held-to-maturity securities	1,441,556	1,637,420
Estimated Fair Value | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	450,368	284,049
Estimated Fair Value | Level 1 | Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	101,824	101,952
Estimated Fair Value | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
FHLB and FRB stock	117,205	107,198
Interest rate contracts	20,895	11,879
Customer accounts	10,184,321	10,004,290
FHLB advances and other borrowings	2,184,671	1,938,384
Estimated Fair Value | Level 2 | Interest rate contract
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other liabilities	20,895	11,879
Estimated Fair Value | Level 2 | Commercial loan hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other liabilities	3,312	966
Estimated Fair Value | Level 2 | Long term borrowing hedge
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other liabilities	31,347	14,555
Estimated Fair Value | Level 2 | Agency pass through mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held-to-maturity securities	1,441,556	1,637,420
Estimated Fair Value | Level 2 | U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	259,351	482,464
Estimated Fair Value | Level 2 | Municipal bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	27,670	27,123
Estimated Fair Value | Level 2 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	461,138	505,800
Estimated Fair Value | Level 2 | Agency pass through mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	993,041	1,160,518
Estimated Fair Value | Level 2 | Commercial MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	79,870	102,706
Estimated Fair Value | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable	10,414,794	9,667,750
FDIC indemnification asset	$ 12,095	$ 15,522

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Derivatives and Hedging Activities (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015
Derivative [Line Items]
Asset derivatives, fair value	$ 20,895	$ 11,879
Liability derivatives, fair value	55,554	27,400
Interest rate swap agreements
Derivative [Line Items]
Customer derivatives program	840,935	439,416
Notional amount	700,000	400,000
Interest rate contract | Other assets
Derivative [Line Items]
Asset derivatives, fair value	20,895	11,879
Interest rate contract | Other liabilities
Derivative [Line Items]
Liability derivatives, fair value	20,895	11,879
Commercial loan hedge
Derivative [Line Items]
Notional amount	54,155	54,815
Commercial loan hedge | Other assets
Derivative [Line Items]
Asset derivatives, fair value	0	0
Commercial loan hedge | Other liabilities
Derivative [Line Items]
Liability derivatives, fair value	3,312	966
Long term borrowing hedge | Other assets
Derivative [Line Items]
Asset derivatives, fair value	0	0
Long term borrowing hedge | Other liabilities
Derivative [Line Items]
Liability derivatives, fair value	31,347	$ 14,555
Related Party Loan | Interest rate swap agreements
Derivative [Line Items]
Customer derivatives program	$ 34,432

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Interest Receivable (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest receivable	$ 37,669	$ 40,429
Interest receivable	$ 37,669	$ 40,429
Average period rate for earning assets	3.58%	3.63%
Loans receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest receivable	$ 29,858	$ 30,930
Mortgage-backed securities
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest receivable	5,670	6,695
Investment securities
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest receivable	$ 2,141	$ 2,804

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Premises and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 386,819	$ 361,216
Less accumulated depreciation and amortization	(104,868)	(84,969)
Premises and equipment, net	281,951	276,247
Future minimum payments due, current	4,902
Future minimum payments due, two years	3,942
Future minimum payments due, three years	3,422
Future minimum payments due, four years	3,228
Future minimum payments due, five years	2,538
Future minimum payments due, thereafter	13,159
Rental expense	5,300	6,600	$ 6,600
Land
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	109,414	113,347
Buildings
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	143,841	147,757
Leasehold improvements
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	18,365	10,193
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 115,199	$ 89,919
Minimum | Buildings
Property, Plant and Equipment [Line Items]
Estimated useful life	25 years	25 years
Minimum | Leasehold improvements
Property, Plant and Equipment [Line Items]
Estimated useful life	7 years	7 years
Minimum | Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Estimated useful life	2 years	2 years
Maximum | Buildings
Property, Plant and Equipment [Line Items]
Estimated useful life	40 years	40 years
Maximum | Leasehold improvements
Property, Plant and Equipment [Line Items]
Estimated useful life	15 years	15 years
Maximum | Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years	10 years

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Customer Accounts - Schedule of Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015
Deposit Liabilities [Line Items]
Checking accounts, .15% and under	$ 2,721,721	$ 2,555,766
Passbook and statement accounts, .10% and under	820,980	700,794
Insured money market accounts, .01% to .15%	2,462,891	2,564,318
Time deposit accounts
Less than 1.00%	3,268,272	3,126,119
1.00% to 1.99%	1,292,612	1,177,356
2.00% to 2.99%	34,376	501,409
3.00% to 3.99%	0	5,156
4.00% and higher	0	785
Total time deposits	4,595,260	4,810,825
Customer accounts	10,600,852	10,631,703
Within 1 year	2,894,900	2,862,313
1 to 2 years	798,309	1,068,792
2 to 3 years	293,058	321,118
Over 3 years	608,993	558,602
Customer accounts greater than $250,000	$ 2,250,622	$ 2,096,690
Minimum
Deposit Liabilities [Line Items]
Money market rate	0.01%	0.01%
Maximum
Deposit Liabilities [Line Items]
Checking rate	0.15%	0.15%
Passbook and statement rate	0.10%	0.10%
Money market rate	0.15%	0.15%

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Customer Accounts - Interest Expense on Customer Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Banking and Thrift [Abstract]
Checking accounts	$ 1,491	$ 1,036	$ 1,259
Passbook and statement accounts	734	660	607
Insured money market accounts	3,285	3,631	4,574
Time deposit accounts	47,425	46,273	52,636
Interest expense on customer accounts, gross	52,935	51,600	59,076
Less early withdrawal penalties	(450)	(546)	(552)
Interest expense on customer accounts	$ 52,485	$ 51,054	$ 58,524
Weighted average interest rate at end of year	0.50%	0.48%	0.51%
Weighted daily average interest rate during the year	0.50%	0.48%	0.57%

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FHLB Advances and Other Borrowings - FHLB Advances (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015
Banking and Thrift [Abstract]
Within 1 year	$ 200,000	$ 250,000
1 to 3 years	880,000	750,000
4 to 5 years	700,000	430,000
More than 5 years	300,000	400,000
FHLB advances	$ 2,080,000	$ 1,830,000

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FHLB Advances and Other Borrowings - Weighted Average Cost and Amount of Advances (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Federal Home Loan Banks [Abstract]
Weighted average interest rate at end of year	3.15%	3.35%	3.52%
Weighted daily average interest rate during the year	3.22%	3.57%	3.56%
Daily average of FHLB advances during the year	$ 1,992,434	$ 1,848,904	$ 1,955,205
Maximum amount of FHLB advances at any month end	2,080,000	1,930,000	2,205,000
Interest expense during the year (excludes interest rate swap expense)	$ 64,058	$ 64,331	$ 68,307

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FHLB Advances and Other Borrowings - Additional Information (Details) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Repurchase agreements with customers	$ 0	$ 0	$ 0
Other borrowings	$ 0	$ 0	$ 0
Federal Home Loan Bank of Des Moines
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Federal home loan bank, percent of assets	49.00%

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Income Taxes - Net Deferred Tax Asset (Liability) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015
Deferred tax assets
Loan loss reserves	$ 45,531	$ 43,749
REO reserves	4,018	11,213
Valuation adjustment on available-for-sale securities and cash flow hedges	6,482	0
Asset purchase tax basis difference (net)	0	5,973
Delinquent accrued interest	2,812	3,069
FDIC loss share guarantee receivable	9,598	7,803
Other, net	3,210	3,891
Total deferred tax assets	71,651	75,698
Deferred tax liabilities
Federal Home Loan Bank stock dividends	24,135	24,135
Valuation adjustment on available-for-sale securities and cash flow hedges	0	205
Asset purchase tax basis difference (net)	2,830
Loan origination costs	14,826	13,875
Depreciation	34,936	25,934
Total deferred tax liabilities	76,727	64,149
Net deferred tax asset (liability)	(5,076)
Net deferred tax asset (liability)		11,549
Current tax asset	21,123	2,964
Net tax asset	$ 16,047	$ 14,513

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Income Taxes - Reconciliation of Effective Income Tax Rate (Details)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Statutory income tax rate	35.00%	35.00%	35.00%
State income tax	1.00%	2.00%	2.00%
Other differences	(2.00%)	(1.00%)	(1.00%)
Effective income tax rate	34.00%	36.00%	36.00%

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Income Taxes - Components of Income Taxes (Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Federal:
Current									$ 57,173	$ 79,841	$ 70,797
Deferred									21,961	3,244	10,591
Federal									79,134	83,085	81,388
State:
Current									3,600	6,636	4,987
Deferred									1,351	(518)	1,189
State									4,951	6,118	6,176
Total
Current									60,773	86,477	75,784
Deferred									23,312	2,726	11,780
Income taxes	$ 21,115	$ 22,154	$ 21,499	$ 19,317	$ 23,647	$ 21,727	$ 22,458	$ 21,371	$ 84,085	$ 89,203	$ 87,564

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Income Taxes - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Liability for uncertain tax positions	$ 105	$ 110
Returns open to examination, minimum (years)	3 years
Returns open to examination, maximum (years)	5 years
Returns open to examination, state impact of federal changes, maximum (years)	2 years

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401(k) and Employee Stock Ownership Plan (Details) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Compensation and Retirement Disclosure [Abstract]
Employee contribution, percentage of annual salary	100.00%
Employee contribution, maximum allowable contribution	$ 53,000
Service period for eligibility (in years)	1 year
Number of hours of service required in 12 months for plan eligibility (in hours)	1000 hours
Employer matching contribution percent	100.00%
Percent of employees' gross pay	4.00%
Term for employees to become fully vested (in years)	6 years
Profit sharing contribution, percent	7.00%
Company contributions to plan	$ 7,600,000	$ 8,700,000	$ 7,314,000

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Stock Award Plans - Additional Information (Details) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized to be reserved (in shares)	5,000,000
Shares available for issuance (in shares)	3,348,400
Award vesting period (in years)	5 years
Contractual term of award (in years)	10 years
Unrecognized compensation cost for stock options, net of forfeitures	$ 0
Options granted (in shares)	0	0	0
Compensation cost for stock options	$ 89,000	$ 232,000	$ 324,000
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instruments other than options, nonvested (in shares)	490,363	521,302	515,845	480,904
Fair market value at date of grant at restricted stock	$ 7,845,808
Compensation cost for stock options	$ 3,357,108	$ 3,271,564	$ 3,085,081
Minimum | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)	1 year
Maximum | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)	7 years

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Stock Award Plans - Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Granted (in shares)	0	0	0
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at September 30, 2015 (in shares)	1,027,374
Granted (in shares)	0
Exercised (in shares)	(438,456)
Forfeited (in shares)	(129,475)
Outstanding at September 30, 2016 (in shares)	459,443	1,027,374
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Options outstanding, weighted average exercise price at beginning of period (USD per share)	$ 21.64
Options granted, weighted average exercise price (USD per share)	0.00
Options exercised, weighted average exercise price (USD per share)	21.51
Options forfeited, weighted average exercise price (USD per share)	22.32
Options outstanding, weighted average exercise price at end of period (USD per share)	$ 21.47	$ 21.64
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options exercisable	459,443
Options exercisable, weighted average exercise price (USD per share)	$ 21.47
Options outstanding, weighted average remaining contractual term (in years)	2 years	3 years
Options exercisable, weighted average remaining contractual term (in years)	2 years
Options outstanding, aggregate intrinsic value	$ 2,392	$ 1,867
Options exercisable, aggregate intrinsic value	$ 2,392

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Stock Award Plans - Other Stock Option Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Compensation cost for stock options	$ 89	$ 232	$ 324
Weighted average grant date fair value (USD per share)	$ 2.73	$ 2.96	$ 2.95
Total intrinsic value of options exercised	$ 1,651	$ 831	$ 1,136
Grant date FV of options exercised	1,422	368	1,962
Cash received from option exercises	9,283	2,069	10,142
Tax benefit realized for option exercises	$ 0	$ 0	$ 159

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Stock Award Plans - Nonvested Stock Options (Details) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost for stock options, net of forfeitures	$ 0
Options Outstanding
Granted (in shares)	0	0	0
Weighted Average Grant Date Fair Value
Granted (USD per share)	$ 2.73	$ 2.96	$ 2.95
Non-Vested Options
Options Outstanding
Outstanding at beginning of period (in shares)	69,287	145,795	287,750
Granted (in shares)	0	0	0
Vested (in shares)	(62,227)	(61,018)	(119,520)
Forfeited (in shares)	(7,060)	(15,490)	(22,435)
Outstanding at end of period (in shares)	0	69,287	145,795
Weighted Average Grant Date Fair Value
Outstanding at beginning of period (USD per share)	$ 3.85	$ 3.87	$ 3.44
Granted (USD per share)	0.00	0.00	0.00
Vested (USD per share)	3.91	3.88	2.88
Forfeited (USD per share)	3.89	3.90	3.63
Outstanding at end of period (USD per share)	$ 0.00	$ 3.85	$ 3.87

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Stock Award Plans - Nonvested Restricted Stock (Details) - Restricted Stock - $ / shares	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at beginning of period (in shares)	521,302	515,845	480,904
Granted (in shares)	229,450	301,750	300,500
Vested (in shares)	(165,965)	(223,043)	(202,014)
Forfeited (in shares)	(94,424)	(73,250)	(63,545)
Outstanding at end of period (in shares)	490,363	521,302	515,845
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Outstanding, weighted average grant date fair value, beginning of period (USD per share)	$ 16.00	$ 15.03	$ 14.10	$ 11.52
Granted, weighted average grant date fair value (USD per share)	17.20	14.26	15.43
Vested, weighted average grant date fair value (USD per share)	15.96	13.24	11.68
Forfeited, weighted average grant date fair value (USD per share)	13.64	10.72	8.50
Outstanding, weighted average grant date fair value, end of period (USD per share)	$ 16.00	$ 15.03	$ 14.10	$ 11.52

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Stockholders' Equity - Regulatory Capital Requirements (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier one capital required for capital adequacy to risk weighted assets, conservation buffer	2.50%
The Company
Common Equity Tier 1 risk-based capital ratio:
Tier one common equity capital	$ 1,690,380	$ 1,658,985
Tier one common equity capital to risk weighted assets	17.54%	18.81%
Tier one common equity capital required for capital adequacy to risk weighted assets	4.50%	4.50%
Tier 1 risk-based capital ratio:
Tier one risk based capital	$ 1,690,380	$ 1,658,985
Tier one risk based capital to risk weighted assets	17.54%	18.81%
Tier one risk based capital required for capital adequacy to risk weighted assets	6.00%	6.00%
Total risk-based capital ratio:
Capital	$ 1,807,740	$ 1,769,587
Capital to risk weighted assets	18.76%	20.07%
Capital required for capital adequacy to risk weighted assets	8.00%	8.00%
Tier 1 leverage ratio:
Tier one leverage capital	$ 1,690,380	$ 1,658,985
Tier one leverage capital to average assets	11.60%	11.71%
Tier one leverage capital required for capital adequacy to average assets	4.00%	4.00%
The Bank
Common Equity Tier 1 risk-based capital ratio:
Tier one common equity capital	$ 1,668,828	$ 1,652,569
Tier one common equity capital to risk weighted assets	17.32%	18.73%
Tier one common equity capital required for capital adequacy to risk weighted assets	4.50%	4.50%
Tier one common equity capital required to be well capitalized to risk weighted assets	6.50%	6.50%
Tier 1 risk-based capital ratio:
Tier one risk based capital	$ 1,668,828	$ 1,652,569
Tier one risk based capital to risk weighted assets	17.32%	18.73%
Tier one risk based capital required for capital adequacy to risk weighted assets	6.00%	6.00%
Tier one risk based capital required to be well capitalized to risk weighted assets	8.00%	8.00%
Total risk-based capital ratio:
Capital	$ 1,786,188	$ 1,763,171
Capital to risk weighted assets	18.54%	19.98%
Capital required for capital adequacy to risk weighted assets	8.00%	8.00%
Capital required to be well capitalized to risk weighted assets	10.00%	10.00%
Tier 1 leverage ratio:
Tier one leverage capital	$ 1,668,828	$ 1,652,569
Tier one leverage capital to average assets	11.45%	11.66%
Tier one leverage capital required for capital adequacy to average assets	4.00%	4.00%
Tier one leverage capital required to be well capitalized to average assets	5.00%	5.00%

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Stockholders' Equity - Narrative (Details) - USD ($)	1 Months Ended	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Class of Stock [Line Items]
Tier one capital required for capital adequacy to risk weighted assets, conservation buffer	2.50%	2.50%
Stock repurchased (in shares)		3,867,563	5,841,204
Additional shares authorized to be repurchased	5,039,310	5,039,310
Warrants issued (in shares)	1,707,456	1,707,456
Warrant exercise price (in dollars per share)	$ 17.57	$ 17.57
Payments for repurchase of warrants	$ 7,718,158	$ 7,744,000	$ 0	$ 0
Warrants repurchased during period (in shares)	892,240
Warrants outstanding (in shares)	808,616	808,616	1,700,856
Weighted Average
Class of Stock [Line Items]
Weighted average cost of repurchased stock (in dollars per share)		$ 22.72	$ 21.70

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Stockholders' Equity - Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Basic weighted average number of shares outstanding (in shares)									91,399,038	95,644,639	101,154,030
Diluted weighted average number of shares outstanding, including dilutive stock options (in shares)									91,912,918	96,053,959	101,590,351
Net income	$ 44,224	$ 43,004	$ 41,723	$ 35,098	$ 42,498	$ 39,050	$ 40,361	$ 38,407	$ 164,049	$ 160,316	$ 157,364
Basic earnings per share (in dollars per share)	$ 0.49	$ 0.47	$ 0.45	$ 0.38	$ 0.46	$ 0.41	$ 0.42	$ 0.39	$ 1.79	$ 1.68	$ 1.56
Diluted earnings per share (in dollars per share)	$ 0.49	$ 0.47	$ 0.45	$ 0.38	$ 0.45	$ 0.41	$ 0.42	$ 0.39	$ 1.78	$ 1.67	$ 1.55
Warrant
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Weighted average call options and warrants (in shares)									440,366	340,016	352,171
Equity Option
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Weighted average call options and warrants (in shares)									73,514	69,304	84,150
Retained Earnings
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Net income									$ 164,049	$ 160,316	$ 157,364

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Financial Information - Washington Federal, INC. - Statement of Financial Condition (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2013
Assets
Other assets	$ 199,271	$ 188,523
Total assets	14,888,063	14,568,324
Liabilities
Total liabilities	12,912,332	12,612,645
Stockholders’ equity
Total stockholders’ equity	1,975,731	1,955,679	$ 1,973,283	$ 1,937,635
Total liabilities and stockholders’ equity	14,888,063	14,568,324
Parent Company
Assets
Cash	24,300	7,628
Other assets	15	0
Investment in subsidiary	1,954,179	1,949,262
Total assets	1,978,494	1,956,890
Liabilities
Other liabilities	2,763	1,211
Total liabilities	2,763	1,211
Stockholders’ equity
Total stockholders’ equity	1,975,731	1,955,679
Total liabilities and stockholders’ equity	$ 1,978,494	$ 1,956,890

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Financial Information - Washington Federal, INC. - Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Income
Total Income	$ 132,872	$ 133,735	$ 135,063	$ 135,124	$ 135,339	$ 129,300	$ 132,630	$ 132,741	$ 536,793	$ 530,553	$ 533,697
Expense
Income before income taxes	65,339	65,158	63,222	54,415	66,145	60,777	62,819	59,778	248,134	249,519	244,928
Income tax benefit (expense)	(21,115)	(22,154)	(21,499)	(19,317)	(23,647)	(21,727)	(22,458)	(21,371)	(84,085)	(89,203)	(87,564)
NET INCOME	$ 44,224	$ 43,004	$ 41,723	$ 35,098	$ 42,498	$ 39,050	$ 40,361	$ 38,407	164,049	160,316	157,364
Parent Company
Income
Dividends from subsidiary									148,000	175,000	70,000
Total Income									148,000	175,000	70,000
Expense
Miscellaneous									435	439	485
Total expense									435	439	485
Net income (loss) before equity in undistributed net income (loss) of subsidiary									147,565	174,561	69,515
Equity in undistributed net income of subsidiary									16,336	(14,402)	87,675
Income before income taxes									163,901	160,159	157,190
Income tax benefit (expense)									148	157	174
NET INCOME									$ 164,049	$ 160,316	$ 157,364

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Financial Information - Washington Federal, INC. - Statements of Cash Flows (Details) - USD ($)	1 Months Ended	3 Months Ended								12 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Cash Flows From Operating Activities
Net income		$ 44,224,000	$ 43,004,000	$ 41,723,000	$ 35,098,000	$ 42,498,000	$ 39,050,000	$ 40,361,000	$ 38,407,000	$ 164,049,000	$ 160,316,000	$ 157,364,000
Adjustments to reconcile net income to net cash provided by operating activities:
Decrease (increase) in other assets										(14,204,000)	(29,220,000)	(17,799,000)
Net cash provided (used) by operating activities										221,721,000	142,871,000	173,715,000
Cash Flows From Financing Activities
Proceeds from exercise of common stock options and related tax benefit										9,283,000	2,070,000	10,252,000
Repurchase of warrants	$ (7,718,158)									(7,744,000)	0	0
Treasury stock purchased										(87,850,000)	(126,728,000)	(104,291,000)
Dividends paid on common stock										(49,926,000)	(51,111,000)	(42,065,000)
Net cash provided (used) by financing activities										75,662,000	(350,176,000)	(376,457,000)
Increase (decrease) in cash and cash equivalents										166,319,000	(497,794,000)	578,280,000
Cash and cash equivalents at beginning of year					284,049,000				781,843,000	284,049,000	781,843,000	203,563,000
Cash and cash equivalents at end of year	450,368,000	450,368,000				284,049,000				450,368,000	284,049,000	781,843,000
Parent Company
Cash Flows From Operating Activities
Net income										164,049,000	160,316,000	157,364,000
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiaries										(12,677,000)	32,375,000	(87,943,000)
Decrease (increase) in other assets										(15,000)	0	1,000
Increase in other liabilities										1,552,000	(13,189,000)	4,152,000
Net cash provided (used) by operating activities										152,909,000	179,502,000	73,574,000
Cash Flows From Financing Activities
Proceeds from exercise of common stock options and related tax benefit										9,283,000	2,070,000	10,252,000
Treasury stock purchased										(87,850,000)	(126,728,000)	(104,291,000)
Dividends paid on common stock										(49,926,000)	(51,111,000)	(42,065,000)
Net cash provided (used) by financing activities										(136,237,000)	(175,769,000)	(136,104,000)
Increase (decrease) in cash and cash equivalents										16,672,000	3,733,000	(62,530,000)
Cash and cash equivalents at beginning of year					$ 7,628,000				$ 3,895,000	7,628,000	3,895,000	66,425,000
Cash and cash equivalents at end of year	$ 24,300,000	$ 24,300,000				$ 7,628,000				$ 24,300,000	$ 7,628,000	$ 3,895,000

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Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Quarterly Financial Information Disclosure [Abstract]
Total Income	$ 132,872	$ 133,735	$ 135,063	$ 135,124	$ 135,339	$ 129,300	$ 132,630	$ 132,741	$ 536,793	$ 530,553	$ 533,697
Interest expense	30,056	29,495	28,738	28,255	28,486	28,735	28,750	30,558	116,544	117,072	128,077
Net interest income	102,816	104,240	106,325	106,869	106,853	100,565	103,880	102,183	420,249	413,481	405,620
Provision (release) for loan losses	(3,100)	(1,650)	(1,500)	0	219	(1,932)	(3,949)	(5,500)	(6,250)	(11,162)	(15,401)
Other operating income (including REO gain (loss), net)	14,830	15,573	14,623	12,055	16,719	14,999	12,314	5,695
Other operating expense	55,407	56,305	59,226	64,509	57,208	56,719	57,324	53,600	235,447	224,851	204,009
Income before income taxes	65,339	65,158	63,222	54,415	66,145	60,777	62,819	59,778	248,134	249,519	244,928
Income tax expense	21,115	22,154	21,499	19,317	23,647	21,727	22,458	21,371	84,085	89,203	87,564
NET INCOME	$ 44,224	$ 43,004	$ 41,723	$ 35,098	$ 42,498	$ 39,050	$ 40,361	$ 38,407	$ 164,049	$ 160,316	$ 157,364
Basic earnings per share (in dollars per share)	$ 0.49	$ 0.47	$ 0.45	$ 0.38	$ 0.46	$ 0.41	$ 0.42	$ 0.39	$ 1.79	$ 1.68	$ 1.56
Diluted earnings per share (in dollars per share)	0.49	0.47	0.45	0.38	0.45	0.41	0.42	0.39	1.78	1.67	1.55
Cash dividends per share (in dollars per share)	$ 0.14	$ 0.14	$ 0.14	$ 0.13	$ 0.13	$ 0.13	$ 0.13	$ 0.15	$ 0.55	$ 0.54	$ 0.41