8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________

FORM 8-K

____________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 18, 2017

 ____________________________________

Washington Federal, Inc.

(Exact name of registrant as specified in its charter)

 ____________________________________

Washington	001-34654	91-1661606
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

425 Pike Street, Seattle, Washington 98101

(Address of principal executive offices)(Zip Code)

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

Not Applicable

(Former name or former address, if changed since last report)

____________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

x Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

On October 18, 2017, the Company announced by press release its earnings for the quarter and fiscal year ended September 30, 2017. A copy of the press release is attached to this filing as Exhibit 99.1. A copy of the September 30, 2017 Fact Sheet, which presents certain detailed financial information about the Company, is attached as Exhibit 99.2. This information is being furnished under Item 2.02 (Results of Operations and Financial Condition) of Form 8-K.

Item 8.01 Other Events

On October 18, 2017, the Company announced by press release its earnings for the quarter and fiscal year ended September 30, 2017. A copy of the press release is attached to this filing as Exhibit 99.1. A copy of the September 30, 2017 Fact Sheet, which presents certain detailed financial information about the Company, is attached as Exhibit 99.2. The press release and Fact Sheet are filed herewith as Exhibit 99.1 and 99.2 to this Current Report on Form 8-K in compliance with Rule 425 of the Securities Act of 1933, as amended, and are hereby incorporated by reference into this Item 8.01.

Item 9.01 Financial Statements and Exhibits

(a) Not applicable

(b) Not applicable

(c) Not applicable

(d)

99.1Press release dated October 18, 2017

99.2Fact Sheet as of September 30, 2017

Important Cautionary Statements

The foregoing information should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2016 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

This press release contains statements about the Company’s future that are not statements of historical fact. These statements are “forward looking statements” for purposes of applicable securities laws, and are based on current information and/or management's good faith belief as to future events. The words “believe,” “expect,” “anticipate,” “project,” and similar expressions signify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance. By their nature, forward-looking statements involve inherent risk and uncertainties, which change over time; and actual performance, could differ materially from those anticipated by any forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statement.

Additional Information

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In connection with the proposed transaction with Anchor Bancorp ("Anchor") pursuant to which Anchor will merge with and into the Company (the "Merger"), the Company has filed a registration statement on Form S-4 with the Securities and Exchange Commission (the "SEC") which contains a proxy statement/prospectus to be distributed to the shareholders of Anchor in connection with their vote on the Merger. Each party will also file other documents regarding the proposed transaction with the SEC. Before making any voting or investment decision regarding the transaction, shareholders of Anchor are encouraged to read the registration statement and any other relevant documents filed with the SEC, including the proxy statement/prospectus that is part of the registration statement, as well as any amendments or supplements to these documents, when they become available, because they will contain important information about the Merger. The final proxy statement/prospectus will be mailed to shareholders of Anchor. Investors and security holders will be able to obtain the documents free of charge at the SEC’s website, www.sec.gov. In addition, documents filed with the SEC by the Company will be available free of charge by accessing the Company’s website at www.washingtonfederal.com or by writing the Company at 425 Pike Street, Seattle, WA 98101, Attention: Investor Relations or calling (206) 626-8178, or by writing Anchor at 601 Woodland Square Loop SE, Lacey, WA 98503, Attention: Corporate Secretary or calling (360) 537-1388.

Participants in the Transaction

The Company, Anchor, their directors, executive officers and certain other persons may be deemed to be participants in the solicitation of proxies from Anchor shareholders in favor of the approval of the Merger with Anchor. Information about the directors and executive officers of the Company and their ownership of Company stock is included in the proxy statement for its 2017 annual meeting of shareholders, which was filed with the SEC on December 9, 2016. Information about the directors and executive officers of Anchor and their ownership of Anchor stock is set forth in the proxy statement for its 2016 annual meeting of shareholders, which was filed with the SEC on September 9, 2016, and also will be included in the proxy statement/prospectus for the Merger. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the registration statement and the proxy statement/prospectus regarding the proposed Merger when it becomes available. Free copies of this document may be obtained as described in the preceding paragraph.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

October 18, 2017	WASHINGTON FEDERAL, INC.
	By:	/s/ VINCENT L. BEATTY
		Vincent L. Beatty
		Senior Vice President and Chief Financial Officer

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EX-99.1

Exhibit 99.1

Wednesday, October 18, 2017

FOR IMMEDIATE RELEASE

Washington Federal Reports Record Earnings

SEATTLE, WASHINGTON – Washington Federal, Inc. (Nasdaq: WAFD) (the "Company"), parent company of Washington Federal, N.A. today announced record annual earnings of $173,532,000 or $1.94 per diluted share for the fiscal year ended September 30, 2017, compared to $164,049,000 or $1.78 per diluted share for the year ended September 30, 2016, a $0.16 or 9.0% increase in earnings per diluted share. Return on equity for the fiscal year ended September 30, 2017 was 8.64% compared to 8.33% for the year ended September 30, 2016. Return on assets for the year ended September 30, 2017 was 1.16% compared to 1.12% for the prior year.

President and Chief Executive Officer Brent J. Beardall commented, “We are pleased to report that Washington Federal closed it's 100th year in business with record earnings, loan originations and total assets. The market rewarded the Company's shareholders with a total return for the fiscal year of 29%. It is gratifying to see that efforts to reposition the bank's interest rate risk over the last few years are paying dividends, as our margin has increased despite rising short-term rates. The strong financial performance enabled the Company to return 100% of earnings to shareholders in the form of cash dividends and share repurchases during the year and still finish the year with a tangible common equity to tangible asset ratio of 11.41%."

Total assets were $15.3 billion as of September 30, 2017, a $366 million or 2.5% increase from September 30, 2016. The Company continued to shift its asset mix from cash and investment securities to loans receivable, which carry a higher yield. Since September 30, 2016, cash and cash equivalents decreased $137 million or 30.5% while available-for-sale securities decreased $657 million or 34.2% and held-to-maturity securities slightly offset these with an increase of $

1

229 million or 16.2%. During the same period, net loans receivable increased by $972 million or 9.8%.

During fiscal 2017, the Company's focus on improving its deposit mix resulted in transaction accounts increasing to 58.7% of deposits at September 30, 2017 from 56.7% of deposits at September 30, 2016. Customer deposits were $10.8 billion as of September 30, 2017, an increase of $234 million or 2.2% since September 30, 2016. Transaction accounts increased by $356 million or 5.9% during the fiscal year 2017, while time deposits decreased $121 million or 2.6%. As of September 30, 2017, 27.9% of the Company's deposits were checking accounts and 94.3% were core deposits.

Borrowings from the Federal Home Loan Bank were $2.2 billion as of September 30, 2017, a net increase of $145 million or 7.0% since September 30, 2016. The weighted average rate for FHLB borrowings was 2.80% as of September 30, 2017 and 3.15% at September 30, 2016. Of the $2.2 billion borrowed as of September 30, 2017, $0.8 billion have maturities greater than one year.

Loan originations of $4.2 billion for fiscal year 2017 established a new record and increased $290 million or 7.4% from the total of $3.9 billion in fiscal year 2016. Partially offsetting this strong loan origination volume in 2017 were loan repayments of $3.1 billion. During fiscal 2016, loan repayments totaled $2.9 billion. Commercial loans represented 66.9% of all loan originations during fiscal 2017 with consumer loans accounting for the remaining 33.1%. The Company views organic loan growth as the highest and best use of its capital and prefers commercial loans in this low rate environment due to the fact they generally have floating interest rates and shorter durations. The weighted average interest rate on loans increased to 4.28% as of September 30, 2017 from 4.26% at September 30, 2016, due to the shift toward a higher proportion of commercial loans and rising short term rates, causing variable rate loans to increase in yield.

Asset quality remained strong as the ratio of non-performing assets to total assets decreased to 0.46% as of September 30, 2017, compared to 0.48% at September 30, 2016. Since September 30, 2016, real estate owned decreased by $8.4 million, or 28.8%, and non-accrual

2

loans increased by $7.2 million, or 16.9%. Delinquencies on loans were 0.40% of total loans at September 30, 2017 compared to 0.68% at September 30, 2016. The Company realized net-recoveries on loans (as opposed to charge-offs) of $14.3 million for fiscal year 2017. The allowance for loan losses and reserve for unfunded commitments increased by $14.1 million to $130.8 million as of September 30, 2017 and was 1.07% of gross loans outstanding, as compared to 1.07% of gross loans as of September 30, 2016.

On August 18, 2017, the Company paid a cash dividend of $0.15 per share to common stockholders of record on August 4, 2017. This was the Company’s 138th consecutive quarterly cash dividend. During fiscal 2017, the Company repurchased 3.1 million shares of common stock at a weighted average price of $31.36 per share and has authorization to repurchase approximately 1.7 million additional shares. The Company varies the pace of share repurchases depending on several factors, including share price, business opportunities and capital levels. In 2017, the Company paid $7,631,576 to repurchase 478,399 warrants to purchase our common stock at an average exercise price of $17.46. As of September 30, 2017, 330,217 such warrants remain outstanding. Tangible common stockholders’ equity per share increased by $0.86 or 4.59% during fiscal 2017 to $19.58 and the ratio of tangible common equity to tangible assets was 11.41% as of September 30, 2017.

Net interest income was $432 million for fiscal 2017, an increase of $11.7 million or 2.8% from the prior year. The increase in net interest income was primarily due to a higher average balance of loans receivable in fiscal 2017. Net interest margin increased to 3.13% in fiscal 2017 from 3.11% for the prior year. The slight increase is primarily due to changes in the mix of interest earning assets, including a higher yield on variable rate loans as well as cash and investments.

The Company recorded a release of loan loss allowance of $2.1 million for fiscal 2017 compared to a release of $6.3 million for the prior year. The release in fiscal 2017 was a result of continued strong credit quality, including net recoveries of $14.3 million, partially offset by growth in loans outstanding.

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Total other income was $52.2 million for fiscal year 2017, an increase of $5.2 million from $47.0 million in the prior year. Fiscal year 2017 included $3.5 million of gain on sale of investment securities as well as $6.1 million of gains recognized on bank owned life insurance. Fiscal 2016 included a gain of $3.8 million resulting from the sale-leaseback of a branch property in Sammamish, Washington.

Total operating expenses were $231.5 million for fiscal 2017, a decrease of $3.9 million or 1.7% from the prior year, primarily due to year over year decreases in product delivery costs and information technology costs related to the Company's fiscal 2016 implementation of new systems. Operating expenses were $62.6 million for the 4th fiscal quarter of 2017, an increase of $7.2 million or 13.1% from the same quarter a year ago. The increase was primarily due to elevated information technology and compliance costs, year-end accrual true-ups and a $1.5 million correction to amortization of intangible assets stemming from acquisitions of insurance agency businesses in prior years. The Company’s efficiency ratio of 47.8% for fiscal 2017 is improved from the 50.8% for the prior year due to lower costs and higher revenue. The efficiency ratio increased to 48.7% for the 4th fiscal quarter of 2017 from 48.5% for the same quarter a year ago due primarily to the expenses noted above.

Net gain on real estate owned was $1.5 million for fiscal 2017 compared to a net gain of $10.0 million for the prior year. Net gain or loss on real estate owned is expected to vary from quarter to quarter as it includes gains and losses on sales, ongoing maintenance expenses and any additional net valuation adjustments.

For the year ended September 30, 2017, the Company recorded federal and state income tax expense of $82.7 million, which equates to a 32.27% effective tax rate. This compares to an effective tax rate of 33.89% for the prior year. The decline in the effective tax rate from the prior year is primarily due to new investments in bank owned life insurance, low income housing tax credits and tax exempt loans since September 30, 2016.

Washington Federal, a national bank with headquarters in Seattle, Washington, has 237 branches in eight western states. To find out more about Washington Federal, please visit our w

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

Important Cautionary Statements

The foregoing information should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2016 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

This press release contains statements about the Company’s future that are not statements of historical fact. These statements are “forward looking statements” for purposes of applicable securities laws, and are based on current information and/or management's good faith belief as to future events. The words “believe,” “expect,” “anticipate,” “project,” and similar expressions signify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance. By their nature, forward-looking statements involve inherent risk and uncertainties, which change over time; and actual performance, could differ materially from those anticipated by any forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statement.

# # #

Contact:

Investor Relations

Washington Federal, Inc.

425 Pike Street, Seattle, WA 98101

Brad Goode, SVP / Director of Communications

206-626-8178

brad.goode@wafd.com

5

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(UNAUDITED)

	September 30, 2017			September 30, 2016
	(In thousands, except share data)
ASSETS
Cash and cash equivalents	$	313,070		$	450,368
Available-for-sale securities, at fair value	1,266,209			1,922,894
Held-to-maturity securities, at amortized cost	1,646,856			1,417,599
Loans receivable, net of allowance for loan losses of $123,073 and $113,494	10,882,622			9,910,920
Interest receivable	41,643			37,669
Premises and equipment, net	263,694			281,951
Real estate owned	20,658			29,027
FHLB and FRB stock	122,990			117,205
Bank owned life insurance	211,330			208,123
Intangible assets, including goodwill of $293,153 and $291,503	298,682			296,989
Federal and state income tax assets, net	—			16,047
Other assets	185,826			199,271
	$	15,253,580		$	14,888,063
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Customer accounts
Transaction deposit accounts	$	6,361,158		$	6,005,592
Time deposit accounts	4,473,850			4,595,260
	10,835,008			10,600,852
FHLB advances	2,225,000			2,080,000
Advance payments by borrowers for taxes and insurance	56,631			42,898
Accrued expenses and other liabilities	131,253			188,582
	13,247,892			12,912,332
Stockholders’ equity
Common stock, $1.00 par value, 300,000,000 shares authorized; 134,957,511 and 134,307,818 shares issued; 87,193,362 and 89,680,847 shares outstanding	134,958			134,308
Paid-in capital	1,660,885			1,648,388
Accumulated other comprehensive (loss) income, net of taxes	5,015			(11,156		)
Treasury stock, at cost; 47,764,149 and 44,626,971 shares	(838,060		)	(739,686		)
Retained earnings	1,042,890			943,877
	2,005,688			1,975,731
	$	15,253,580		$	14,888,063
CONSOLIDATED FINANCIAL HIGHLIGHTS
Common stockholders' equity per share	$	23.00		$	22.03
Tangible common stockholders' equity per share	$	19.58		$	18.72
Stockholders' equity to total assets	13.15		%	13.27		%
Tangible common stockholders' equity to tangible assets	11.41		%	11.51		%
Weighted average rates at period end
Loans and mortgage-backed securities	3.96		%	3.86		%
Combined loans, mortgage-backed securities and investments	3.82			3.58
Customer accounts	0.53			0.50
Borrowings	2.80			3.15
Combined cost of customer accounts and borrowings	0.91			0.93
Net interest spread	2.91			2.65

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WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three Months Ended September 30,						Twelve Months Ended September 30,
	2017			2016			2017			2016
	(In thousands, except share data)						(In thousands, except share data)
INTEREST INCOME
Loans receivable	$	122,197		$	114,283		$	470,523		$	454,085
Mortgage-backed securities	15,605			13,820			60,612			62,949
Investment securities and cash equivalents	4,438			4,769			17,783			19,759
	142,240			132,872			548,918			536,793
INTEREST EXPENSE
Customer accounts	13,850			13,423			52,023			52,485
FHLB advances and other borrowings	15,958			16,633			64,969			64,059
	29,808			30,056			116,992			116,544
Net interest income	112,432			102,816			431,926			420,249
Provision (release) for loan losses	(500		)	(3,100		)	(2,100		)	(6,250		)
Net interest income after provision (release) for loan losses	112,932			105,916			434,026			426,499
OTHER INCOME
Gain on sale of investments	2,531			—			3,499			—
Loan fee income	980			1,764			4,290			5,548
Deposit fee income	6,840			5,174			22,643			21,738
Other income	5,910			8,248			21,783			19,750
	16,261			15,186			52,215			47,036
OTHER EXPENSE
Compensation and benefits	27,483			26,668			112,257			112,884
Occupancy	8,890			7,492			35,260			33,568
FDIC insurance premiums	2,819			3,581			11,410			11,824
Product delivery	3,876			3,421			13,972			17,060
Information technology	9,105			7,150			28,859			30,982
Other expense	10,476			7,095			29,761			29,129
	62,649			55,407			231,519			235,447
Gain (loss) on real estate owned, net	425			(356		)	1,494			10,046
Income before income taxes	66,969			65,339			256,216			248,134
Income tax provision	20,865			21,115			82,684			84,085
NET INCOME	$	46,104		$	44,224		$	173,532		$	164,049
PER SHARE DATA
Basic earnings	$	0.53		$	0.49		$	1.95		$	1.79
Diluted earnings	0.52			0.49			1.94			1.78
Cash dividends per share	0.15			0.14			0.84			0.55
Basic weighted average number of shares outstanding	87,742,200			89,902,181			88,905,457			91,399,038
Diluted weighted average number of shares outstanding	87,952,087			90,468,107			89,224,207			91,912,918
PERFORMANCE RATIOS
Return on average assets	1.22		%	1.19		%	1.16		%	1.12		%
Return on average common equity	9.18			8.96			8.64			8.33
Net interest margin	3.22			3.01			3.13			3.11
Efficiency ratio	48.68			48.54			47.82			50.80

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EX-99.2

Exhibit 99.2

Washington Federal, Inc.

Fact Sheet

September 30, 2017

($ in Thousands)

	As of 3/17						As of 6/17						As of 9/17
Loan Loss Reserve - Total	$	126,972					$	128,779					$	130,823
General and Specific Allowance	121,922						122,229						123,073
Commitments Reserve	5,050						6,550						7,750
Allowance as a % of Gross Loans	1.09		%				1.08		%				1.07		%
	3/17 QTR			3/17 YTD			6/17 QTR			6/17 YTD			9/17 QTR			9/17 YTD
Loan Originations - Total	$	944,083		$	2,185,129		$	1,030,996		$	3,216,125		$	1,022,853		$	4,238,978
Single-Family Residential	170,547			385,788			181,721			567,509			189,607			757,116
Construction	167,422			506,021			268,027			774,048			307,416			1,081,464
Construction - Custom	120,646			243,601			129,077			372,678			157,757			530,435
Land - Acquisition & Development	10,336			26,565			21,559			48,124			31,752			79,876
Land - Consumer Lot Loans	8,158			17,223			10,200			27,423			11,728			39,151
Multi-Family	93,279			205,238			43,716			248,954			50,405			299,359
Commercial Real Estate	77,949			242,047			97,962			340,009			103,678			443,687
Commercial & Industrial	277,676			521,600			258,310			779,910			151,930			931,840
HELOC	17,221			35,612			19,310			54,922			17,991			72,913
Consumer	849			1,434			1,114			2,548			589			3,137
Purchased Loans (including acquisitions)	$	72,856		$	72,856		$	—		$	72,856		$	—		$	72,856
Net Loan Fee and Discount Accretion	$	5,764		$	12,526		$	2,348		$	14,874		$	4,181		$	19,055
Repayments
Loans	$	710,691		$	1,606,800		$	793,432		$	2,400,232		$	699,619		$	3,099,851
MBS	96,900			275,069			151,218			426,287			96,156			522,443
MBS Premium Amortization	$	2,992		$	8,031		$	2,620		$	10,651		$	2,929		$	13,580
Efficiency
Operating Expenses/Average Assets	1.55		%	1.50		%	1.52		%	1.51		%	1.66		%	1.55		%
Efficiency Ratio (%)	48.76		%	48.00		%	46.57		%	47.51		%	48.68		%	47.82		%
Amortization of Intangibles	$	398		$	919		$	375		$	1,294		$	2,053		$	3,347
EOP Numbers
Shares Issued and Outstanding	89,438,563						88,750,133						87,193,362
Share repurchase information
Remaining shares authorized for repurchase (a)	4,157,081						3,245,187						1,674,739
Shares repurchased	477			758,245			811,034			1,569,279			1,567,899			3,137,178
Average share repurchase price	$	33.55		$	26.91		$	32.14		$	29.61		$	33.10		$	31.36
(a) Remaining shares authorized for repurchase reflects a reduction related to TARP warrants repurchased to date.

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Washington Federal, Inc.

Fact Sheet

September 30, 2017

($ in Thousands)

Tangible Common Book Value	As of 3/17			As of 6/17			As of 9/17
$ Amount	$	1,718,625		$	1,725,491		$	1,707,006
Per Share	19.22			19.44			19.58
# of Employees	1,797			1,815			1,818
Investments
Available-for-sale:
Agency MBS	$	916,006		$	809,702		$	842,688
Other	472,776			460,712			423,521
	$	1,388,782		$	1,270,414		$	1,266,209
Held-to-maturity:
Agency MBS	$	1,697,650		$	1,651,528		$	1,646,856
	$	1,697,650		$	1,651,528		$	1,646,856
	As of 3/31/17			As of 6/30/17			As of 9/30/17
Loans Receivable by Category	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,693,072	48.9%	$	5,687,850	47.9%	$	5,711,004	46.8%
Construction	1,311,635		11.3	1,436,874		12.1	1,597,996		13.1
Construction - Custom	527,319		4.5	561,260		4.7	602,631		4.9
Land - Acquisition & Development	118,726		1.0	119,524		1.0	124,308		1.0
Land - Consumer Lot Loans	101,227		0.9	101,626		0.9	104,405		0.9
Multi-Family	1,266,911		10.9	1,263,187		10.6	1,303,148		10.7
Commercial Real Estate	1,296,039		11.1	1,346,006		11.3	1,434,610		11.8
Commercial & Industrial	1,071,629		9.2	1,116,860		9.4	1,093,360		9.0
HELOC	146,172		1.3	148,584		1.3	144,850		1.2
Consumer	107,759		0.9	95,775		0.8	85,075		0.7
	11,640,489		100%	11,877,546		100%	12,201,387		100%
Less:
ALL	121,922			122,229			123,073
Loans in Process	1,009,937			1,054,513			1,149,934
Net deferred fees, costs and discounts	45,608			46,379			45,758
Sub-Total	1,177,467			1,223,121			1,318,765
	$	10,463,022		$	10,654,425		$	10,882,622
Net Loan Portfolio by Category	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,632,558	53.8%	$	5,628,508	52.8%	$	5,652,365	51.9%
Construction	564,133		5.4	656,287		6.2	763,742		7.0
Construction - Custom	248,878		2.4	265,722		2.5	273,520		2.5
Land - Acquisition & Development	96,330		0.9	103,414		1.0	97,587		0.9
Land - Consumer Lot Loans	98,252		0.9	98,592		0.9	101,265		0.9
Multi-Family	1,254,499		12.0	1,250,730		11.7	1,290,640		11.9
Commercial Real Estate	1,278,189		12.2	1,327,530		12.5	1,416,188		13.0
Commercial & Industrial	1,039,309		9.9	1,082,486		10.2	1,060,304		9.7
HELOC	144,642		1.4	147,012		1.4	143,381		1.3
Consumer	106,232		1.0	94,144		0.9	83,630		0.8
	$	10,463,022	100%	$	10,654,425	100%	$	10,882,622	100%

2

Washington Federal, Inc.

Fact Sheet

September 30, 2017

($ in Thousands)

	As of 3/31/17						As of 6/30/17						As of 9/30/17
Deposits by State	AMOUNT			%		#	AMOUNT			%		#	AMOUNT			%		#
Washington	$	5,146,140		48.4	%	81	$	5,199,590		48.9	%	81	$	5,383,764		49.7	%	81
Idaho	785,092			7.4		24	768,049			7.2		24	786,974			7.3		24
Oregon	1,946,137			18.3		47	1,939,619			18.2		47	1,964,490			18.1		47
Utah	272,804			2.6		10	270,224			2.5		10	267,717			2.5		10
Nevada	335,266			3.2		11	328,121			3.1		11	326,436			3.0		11
Texas	94,656			0.9		5	96,264			0.9		5	97,670			0.9		6
Arizona	1,193,459			11.2		31	1,177,997			11.1		31	1,164,743			10.7		31
New Mexico	857,253			8.1		27	854,414			8.0		27	843,214			7.8		27
Total	$	10,630,807		100%		236	$	10,634,278		100%		236	$	10,835,008		100%		237
Deposits by Type	AMOUNT			%			AMOUNT			%			AMOUNT			%
Checking (non-interest)	$	1,142,372		10.7	%		$	1,195,152		11.2	%		$	1,258,274		11.6	%
NOW (interest)	1,731,737			16.3			1,703,994			16.0			1,760,821			16.3
Savings	871,722			8.2			871,257			8.2			888,881			8.2
Money Market	2,466,868			23.2			2,433,547			22.9			2,453,182			22.6
Time Deposits	4,418,108			41.6			4,430,328			41.7			4,473,850			41.3
Total	$	10,630,807		100%			$	10,634,278		100%			$	10,835,008		100%
Deposits greater than $250,000 - EOP	$	2,426,837					$	2,524,536					$	2,674,914
Time Deposit Repricing	Amount			Rate			Amount			Rate			Amount			Rate
Within 3 months	$	930,544		0.71	%		$	879,213		0.65	%		$	668,177		0.65	%
From 4 to 6 months	852,702			0.67	%		649,962			0.67	%		714,935			0.76	%
From 7 to 9 months	429,013			0.79	%		450,756			0.83	%		653,760			0.85	%
From 10 to 12 months	442,072			0.84	%		625,472			0.87	%		471,057			0.98	%
Non-Performing Assets	AMOUNT			%			AMOUNT			%			AMOUNT			%
Non-accrual loans:
Single-Family Residential	$	34,373		60.1%			$	32,613		57.8%			$	27,930		56.3%
Construction	—			—			—			—			—			—
Construction - Custom	240			0.4			536			1.0			91			0.2
Land - Acquisition & Development	80			0.1			71			0.1			296			0.6
Land - Consumer Lot Loans	1,129			2.0			1,066			1.9			605			1.2
Multi-Family	1,364			2.4			682			1.2			139			0.3
Commercial Real Estate	10,507			18.4			12,983			23.0			11,815			23.8
Commercial & Industrial	8,864			15.5			8,254			14.6			8,082			16.3
HELOC	583			1.0			181			0.3			531			1.1
Consumer	55			0.1			22			—			91			0.2
Total non-accrual loans	57,195			100%			56,408			100%			49,580			100%
Real Estate Owned	22,543						19,112						20,658
Total non-performing assets	$	79,738					$	75,520					$	70,238
Non-performing loans as % of total net loans	0.55		%				0.53		%				0.46		%
Non-performing assets as % of total assets	0.53		%				0.50		%				0.46		%

3

Washington Federal, Inc.

Fact Sheet

September 30, 2017

($ in Thousands)

	As of 3/31/17					As of 6/30/17					As of 9/30/17
	AMOUNT			%		AMOUNT			%		AMOUNT			%
Restructured loans:
Single-Family Residential	$	204,955		87.6%		$	196,575		87.9%		$	181,941		87.7%
Construction	—			—		—			—		—			—
Construction - Custom	—			—		—			—		—			—
Land - Acquisition & Development	594			0.3		190			0.1		90			—
Land - Consumer Lot Loans	9,410			4.0		8,878			4.0		7,949			3.8
Multi-Family	1,131			0.5		497			0.2		493			0.2
Commercial Real Estate	16,290			7.0		15,907			7.1		15,079			7.3
Commercial & Industrial	—			—		—			—		—			—
HELOC	1,414			0.6		1,409			0.6		1,728			0.8
Consumer	107			—		102			—		97			—
Total restructured loans	$	233,901		100%		$	223,558		100%		$	207,377		100%
Restructured loans were as follows:
Performing	$	222,208		95.0%		$	215,178		96.3%		$	202,272		97.5%
Non-performing (b)	11,693			5.0		8,380			3.7		5,105			2.5
Total restructured loans	$	233,901		100%		$	223,558		100%		$	207,377		100%
(b) Included in "Total non-accrual loans" above
	AMOUNT			CO % (c)		AMOUNT			CO % (c)		AMOUNT			CO % (c)
Net Charge-offs (Recoveries) by Category
Single-Family Residential	$	157		0.01%		$	186		0.01%		$	267		0.02%
Construction	—			—		—			—		—			—
Construction - Custom	3			—		—			—		13			0.01
Land - Acquisition & Development	(4,168		)	(14.04)		(863		)	(2.89)		(1,729		)	(5.56)
Land - Consumer Lot Loans	(180		)	(0.71)		(118		)	(0.46)		(113		)	(0.43)
Multi-Family	—			—		—			—		—			—
Commercial Real Estate	(1,164		)	(0.36)		(164		)	(0.05)		—			—
Commercial & Industrial	(112		)	(0.04)		(154		)	(0.06)		(727		)	(0.27)
HELOC	53			0.15		(1		)	—		(19		)	(0.05)
Consumer	195			0.72		(138		)	(0.58)		(236		)	(1.11)
Total net charge-offs (recoveries)	$	(5,216	)	(0.18)%		$	(1,252	)	(0.04)%		$	(2,544	)	(0.08)%
(c) Annualized Net Charge-offs (recoveries) divided by Gross Balance
Interest Rate Risk
One Year GAP				(14.7	)%				(15.8	)%				(15.7	)%
NPV post 200 bps shock (d)				13.9	%				14.5	%				14.6	%
Change in NII after 200 bps shock (d)				1.3	%				2.0	%				3.0	%
(d) Assumes no balance sheet management actions taken

4

Washington Federal, Inc.

Fact Sheet

September 30, 2017

($ in Thousands)

Historical CPR Rates (e)
	WAFD		WAFD
Average for Quarter Ended:	SFR Mortgages		GSE MBS
9/30/2015	17.8	%	14.5	%
12/31/2015	16.7	%	13.4	%
3/31/2016	13.9	%	12.0	%
6/30/2016	17.3	%	17.5	%
9/30/2016	17.7	%	20.0	%
12/31/2016	19.3	%	24.8	%
3/31/2017	13.6	%	13.5	%
6/30/2017	15.0	%	20.9	%
9/30/2017	15.1	%	14.3	%
(e) The CPR Rate (conditional payment rate) is the rate that is equal to the proportion of the principal of a pool of loans that is paid off prematurely in each period.

5

Washington Federal, Inc.

Fact Sheet

September 30, 2017

Average Balance Sheet

($ in Thousands)

	Quarter Ended
	March 31, 2017						June 30, 2017						September 30, 2017
	Average				Average		Average				Average		Average				Average
	Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
Assets
Loans receivable	$	10,267,530	$	116,034	4.58	%	$	10,579,593	$	117,457	4.45	%	$	10,747,453	$	122,197	4.51	%
Mortgage-backed securities	2,664,959		16,226		2.47		2,551,598		15,992		2.51		2,493,604		15,605		2.48
Cash & investments	632,114		3,068		1.97		627,197		3,373		2.16		604,198		3,500		2.30
FHLB & FRB Stock	118,092		870		2.99		124,968		894		2.87		122,620		938		3.03
Total interest-earning assets	13,682,695		136,198		4.04	%	13,883,356		137,716		3.98	%	13,967,875		142,240		4.04	%
Other assets	1,161,023						1,142,899						1,144,200
Total assets	$	14,843,718					$	15,026,255					$	15,112,075
Liabilities and Equity
Customer accounts	10,578,631		12,392		0.48	%	10,567,710		12,764		0.48	%	10,704,066		13,850		0.51	%
FHLB advances	2,102,556		16,079		3.10		2,274,451		16,337		2.88		2,214,674		15,958		2.86
Other borrowings	—		—		—		—		—		—		—		—		—
Total interest-bearing liabilities	12,681,187		28,471		0.91	%	12,842,161		29,101		0.91	%	12,918,740		29,808		0.92	%
Other liabilities	153,105						155,460						183,542
Total liabilities	12,834,292						12,997,621						13,102,282
Stockholders’ equity	2,009,426						2,028,634						2,009,793
Total liabilities and equity	$	14,843,718					$	15,026,255					$	15,112,075
Net interest income			$	107,727					$	108,615					$	112,432
Net interest margin (1)					3.15	%					3.13	%					3.22	%
(1) Annualized net interest income divided by average interest-earning assets

6

Washington Federal, Inc.

Fact Sheet

September 30, 2017

Delinquency Summary

($ in Thousands)

			AMOUNT OF LOANS		# OF LOANS				% based				% based
TYPE OF LOANS	#LOANS	AVG Size	NET OF LIP & CHG-OFFs		30	60	90	Total	on #		$ Delinquent		on $
September 30, 2017
Single-Family Residential	25,556	223	$	5,709,690	64	29	109	202	0.79	%	$	37,757	0.66	%
Construction	715	1,110	793,959		—	—	—	—	—		—		—
Construction - Custom	1,292	215	277,599		—	—	1	1	0.08		91		0.03
Land - Acquisition & Development	122	859	104,856		—	—	4	4	3.28		330		0.31
Land - Consumer Lot Loans	1,201	87	104,335		3	6	5	14	1.17		946		0.91
Multi-Family	1,135	1,148	1,303,119		2	1	3	6	0.53		399		0.03
Commercial Real Estate	931	1,541	1,434,610		2	—	8	10	1.07		2,558		0.18
Commercial & Industrial	1,820	601	1,093,360		—	2	20	22	1.21		625		0.06
HELOC	2,877	50	144,850		6	4	15	25	0.87		876		0.60
Consumer	4,039	21	85,075		50	24	103	177	4.38		431		0.51
	39,688	278	$	11,051,453	127	66	268	461	1.16	%	$	44,013	0.40	%
June 30, 2017
Single-Family Residential	25,779	221	$	5,687,169	68	36	123	227	0.88	%	$	44,653	0.79	%
Construction	624	1,095	683,273		—	1	—	1	0.16		686		0.10
Construction - Custom	1,218	221	269,612		—	—	2	2	0.16		536		0.20
Land - Acquisition & Development	118	941	111,057		—	—	4	4	3.39		123		0.11
Land - Consumer Lot Loans	1,187	86	101,584		1	2	6	9	0.76		615		0.61
Multi-Family	964	1,310	1,263,143		1	1	2	4	0.41		329		0.03
Commercial Real Estate	1,073	1,254	1,345,986		2	3	9	14	1.30		2,911		0.22
Commercial & Industrial	1,816	615	1,116,854		3	1	23	27	1.49		2,673		0.24
HELOC	2,914	51	148,581		14	7	6	27	0.93		1,491		1.00
Consumer	4,275	22	95,774		51	18	97	166	3.88		384		0.40
	39,968	271	$	10,823,033	140	69	272	481	1.20	%	$	54,401	0.50	%
March 31, 2017
Single-Family Residential	25,999	219	$	5,692,305	74	36	163	273	1.05	%	$	53,147	0.93	%
Construction	633	938	593,479		4	—	—	4	0.63		601		0.10
Construction - Custom	1,149	219	251,906		—	—	2	2	0.17		240		0.10
Land - Acquisition & Development	122	847	103,280		1	—	3	4	3.28		262		0.25
Land - Consumer Lot Loans	1,187	85	101,168		3	2	12	17	1.43		1,261		1.25
Multi-Family	968	1,309	1,266,845		—	—	4	4	0.41		1,224		0.10
Commercial Real Estate	1,067	1,215	1,296,019		7	1	10	18	1.69		6,342		0.49
Commercial & Industrial	1,836	584	1,071,622		13	2	32	47	2.56		4,964		0.46
HELOC	2,939	50	146,169		5	2	32	39	1.33		814		0.56
Consumer	4,542	24	107,759		70	19	75	164	3.61		601		0.56
	40,442	263	$	10,630,552	177	62	333	572	1.41	%	$	69,456	0.65	%

7