0000936528-18-000010.txt : 20180117 0000936528-18-000010.hdr.sgml : 20180117 20180117171521 ACCESSION NUMBER: 0000936528-18-000010 CONFORMED SUBMISSION TYPE: 425 PUBLIC DOCUMENT COUNT: 4 FILED AS OF DATE: 20180117 DATE AS OF CHANGE: 20180117 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: Anchor Bancorp CENTRAL INDEX KEY: 0001448301 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTIONS, NOT FEDERALLY CHARTERED [6036] IRS NUMBER: 263356075 STATE OF INCORPORATION: WA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 425 SEC ACT: 1934 Act SEC FILE NUMBER: 001-34965 FILM NUMBER: 18532204 BUSINESS ADDRESS: STREET 1: 601 WOODLAND SQUARE LOOP SE CITY: LACEY STATE: WA ZIP: 98503 BUSINESS PHONE: (360) 491-2250 MAIL ADDRESS: STREET 1: 601 WOODLAND SQUARE LOOP SE CITY: LACEY STATE: WA ZIP: 98503 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: WASHINGTON FEDERAL INC CENTRAL INDEX KEY: 0000936528 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 911661606 STATE OF INCORPORATION: WA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 425 BUSINESS ADDRESS: STREET 1: 425 PIKE STREET CITY: SEATTLE STATE: WA ZIP: 98101 BUSINESS PHONE: 2066247930 MAIL ADDRESS: STREET 1: 425 PIKE ST CITY: SEATTLE STATE: WA ZIP: 98101 425 1 dec312017wafdearningsrelea.htm 8-K Document


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

 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 17, 2018
 ____________________________________
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))
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o    No  x
 






Item 2.02
Results of Operations and Financial Condition


Item 7.01
Regulation FD Disclosure

A copy of the December 31, 2017 Fact Sheet, which presents certain detailed financial information about the Company is attached as Exhibit 99.2.

Item 8.01
Other Events

The following information is furnished pursuant to Item 2.02, "Results of Operations and Financial Condition" and Item 8.01 "Other Events."

On January 17, 2018, the Company announced by press release its earnings for the quarter ended December 31, 2017. A copy of the press release is attached to this filing as Exhibit 99.1. A copy of the December 31, 2017 Fact Sheet, which presents certain detailed financial information about the Company, is attached as Exhibit 99.2.

Item 9.01
Financial Statements and Exhibits

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


Important Cautionary Statements
The foregoing information should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2017 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

2


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
 
In connection with the proposed transaction with Anchor, the Company has filed a registration statement on Form S-4 with 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 Company’s 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 2018 annual meeting of shareholders, which was filed with the SEC on December 7, 2017. Information about the directors and executive officers of Anchor and their ownership of Anchor stock is set forth in the proxy statement for its 2017 annual meeting of shareholders, which was filed with the SEC on November 9, 2017, 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.


3


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.
 
 
 
 
 
 
 
 
January 17, 2018
 
 
 
WASHINGTON FEDERAL, INC.
 
 
 
 
 
 
 
 
By:
 
/s/ VINCENT L. BEATTY
 
 
 
 
 
 
Vincent L. Beatty
 
 
 
 
 
 
Executive Vice President
and Chief Financial Officer

4
 EX-99.1 2 exhibit991_dec2017earnings.htm EXHIBIT 99.1 Exhibit
Exhibit 99.1

exhibit991logoa02.gif                    

Wednesday, January 17, 2018
FOR IMMEDIATE RELEASE


Washington Federal Announces Record Quarterly Earnings


SEATTLE, WASHINGTON – Washington Federal, Inc. (Nasdaq: WAFD) (the "Company"), parent company of Washington Federal, National Association, today announced quarterly earnings of $51,670,000 or $0.59 per diluted share for the quarter ended December 31, 2017 compared to $41,246,000 or $0.46 per diluted share for the quarter ended December 31, 2016, a $0.13 or 28% increase in fully diluted earnings per share. Return on equity for the quarter ended December 31, 2017 was 10.25% compared to 8.31% for the quarter ended December 31, 2016. Return on assets for the quarter ended December 31, 2017 was 1.35% compared to 1.11% for the same quarter in the prior year.
During the quarter, the Company had two unusual events occur that impacted our financial results. First, as a result of the new tax legislation commonly known as the Tax Cuts and Jobs Act (the “Act”), tax expense for the quarter was $9.0 million. Excluding the effects of the Act, tax expense for the quarter would have been $18.0 million, or higher by $9.0 million. Second, during the quarter the Company made the decision to pursue termination of its loss share agreements with the FDIC related to two acquisitions, one in 2010 and one in 2012. Because of this decision, a charge of $8.6 million was recorded in this quarter’s results. Additional information on both of these items is included in the paragraphs below.
President and Chief Executive Officer Brent J. Beardall commented, “As a result of the changes in the tax law there are several unusual items in this quarter's results. Looking beyond those items, we are particularly pleased with the continued improvement in our core banking operations. Excluding the FDIC charge, this quarter produced a record $69.2 million of pre-tax income. As we have previously announced, the tax law reduces the advantage of credit unions

1


and other non-tax paying competitors. It also allows the Company to further boost investments in its people, technology and communities while continuing to perform well for our shareholders. Challenges remain as we make improvements to our client facing systems and enhance our Bank Secrecy Act Program, but we are excited about the momentum we have and future opportunities.”
Total assets were $15.6 billion as of December 31, 2017 compared to $15.3 billion as of September 30, 2017. Asset growth since September 30, 2017 resulted primarily from a $224 million increase in net loans receivable and a $119 million increase in held-to-maturity securities.
Customer deposits increased by $167 million or 1.5% since September 30, 2017 and totaled $11.0 billion as of December 31, 2017. Transaction accounts increased by $121 million or 1.9% during that period, while time deposits increased $45 million or 1.0%. The mix of customer deposits has continued to shift over the last several years as the Company focuses on growing transaction accounts to lessen sensitivity to rising interest rates and reduce interest expense. As of December 31, 2017, 58.9% of the Company’s deposits were in transaction accounts. Core deposits, defined as all transaction accounts and time deposits less than $250,000, totaled 94.0% of deposits at December 31, 2017.
Borrowings from the Federal Home Loan Bank ("FHLB") totaled $2.4 billion as of December 31, 2017 and $2.2 billion at September 30, 2017. The weighted average rate for FHLB borrowings was 2.56% as of December 31, 2017 and 2.80% at September 30, 2017, the decline being due to the maturity of some long-term FHLB advances.
Loan originations totaled $954 million for our first fiscal quarter 2018 compared to $1.2 billion of originations in the same quarter one year ago. Partially offsetting loan originations in each of these respective quarters were loan repayments of $860 million and $896 million. Commercial loans represented 70% of all loan originations during our first fiscal quarter 2018 with consumer loans accounting for the remaining 30%. 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 was 4.30% as of December 31, 2017, an increase from 4.28% as of September 30, 2017.

2


Asset quality remained strong and the ratio of non-performing assets to total assets improved to 0.41% as of December 31, 2017 compared to 0.56% at December 31, 2016 and 0.46% at September 30, 2017. Since September 30, 2017, real estate owned decreased by $3 million, or 13%, and non-accrual loans decreased by $4 million, or 8%. Delinquent loans were 0.43% of total loans at December 31, 2017 compared to 0.74% at December 31, 2016 and 0.40% at September 30, 2017. The allowance for loan losses and reserve for unfunded commitments totaled $134 million as of December 31, 2017 and was 1.08% of gross loans outstanding, as compared to $131 million or 1.07% of gross loans outstanding at September 30, 2017. The slight increase in the ratio of the total allowance and reserve to gross loans since the Company's fiscal year end reflects continued improvement in credit conditions offset by the continued shift in the loan portfolio mix to include a greater proportion of commercial loans outstanding, which generally require a higher level of reserves.
On November 20, 2017, the Company paid a regular cash dividend of $0.15 per share, which represented the 139th consecutive quarterly cash dividend. During the quarter, the Company repurchased 1,147,370 shares of common stock at a weighted average price of $33.98 per share and has authorization to repurchase approximately 754 thousand additional shares. The Company varies the pace of share repurchases depending on several factors, including share price, lending opportunities and capital levels. Since September 30, 2017, tangible common stockholders’ equity per share increased by $0.09 or 0.5% to $19.67 and the ratio of tangible common equity to tangible assets remained strong at 11.12% as of December 31, 2017.
Net interest income was $116 million for the quarter, an increase of $12.6 million or 12.2% from the same quarter in the prior year. The increase in net interest income from the prior year was primarily due to both higher balances and yield. Average earning assets increased by $513 million, or 3.8%. Net interest margin increased to 3.26% in the first fiscal quarter of 2018 from 3.02% for the same quarter in the prior year. The margin increase is primarily due to changes in the mix of interest earning assets, including higher yields on variable rate loans, cash and investments, as well as a lower rate on FHLB advances due to the maturity of some higher cost long-term advances.

3


The Company did not record any provision for loan losses in the first fiscal quarter of 2018 or 2017 as net recoveries and improvement in credit conditions were offset by strong growth in the loan portfolio. Net recoveries were $3.1 million for the first fiscal quarter of 2018 compared to $5.3 million for the prior year's quarter.
Total other income was $6.8 million for the first fiscal quarter of 2018, a decrease of $5.1 million from $11.9 million in the same quarter of the prior year. The decrease from the prior year was primarily due to $8.6 million of expense from asset and liability valuation adjustments associated with FDIC loss share agreements. The Company is actively pursuing the early termination of all FDIC loss share agreements. The impact of these valuation adjustments was partially offset by a $2.4 million gain recognized on bank-owned life insurance and a $1.5 million increase in deposit fee income, which was driven by the 2017 launch of the Company's new "Green Checking" product.
Total operating expenses were $61.9 million in the first fiscal quarter of 2018, an increase of $7.6 million or 14.0% from the prior year's quarter. Compensation and benefits costs increased by $2.6 million primarily due to headcount increases and cost of living adjustments since last year. Information technology costs increased by $1.5 million and other expenses were elevated due to consulting and audit work to enhance the Company's Bank Secrecy Act Program. Charitable contributions increased by $1 million from the prior year's quarter as the Company fulfilled the first year of its previously announced commitment to fund its foundation by $1 million annually for the next five years. The Company’s efficiency ratio in the first fiscal quarter 2018 was 47.3% (excluding the impact of $8.6 million reduction to noninterest income from the FDIC loss share valuation adjustments) compared to 48.7% for the quarter ended September 30, 2017 and 47.2% for the same period one year ago.
On December 22, 2017, the Tax Cuts and Jobs Act was enacted and it provides for significant changes to the U.S. Internal Revenue Code of 1986, as amended, such as a reduction in the federal corporate tax rate from 35% to 21% effective from January 1, 2018 forward and changes or limitations to certain tax deductions. The Company has a fiscal year end of September 30, so the change to the corporate tax rate resulted in a blended federal statutory tax rate for its fiscal year 2018. The financial statements for the first fiscal quarter 2018 were also impacted by

4


a one-time revaluation of the Company’s deferred tax assets and liabilities and this was recognized as a discrete income tax benefit in the period. For the quarter ended December 31, 2017, the Company recorded federal and state income tax expense of $9.0 million, which equates to a 14.79% effective tax rate. This compares to an effective tax rate of 32.27% for the fiscal year ended September 30, 2017. The Company estimates that its annual effective tax rate for fiscal 2018 (blended rate year) will be approximately 22-23%. The effective tax rate for the current quarter was lower than the new 2018 statutory rate due to discrete tax benefits of $4 million recognized related to the revaluation of deferred tax assets and liabilities expected to be utilized in 2018 as well as tax benefits related to stock based compensation. Looking forward, the Company expects the effective tax rate for fiscal 2019 to be approximately 19.5-20.5%.
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 website www.washingtonfederal.com. Washington Federal uses its website to distribute financial and other material information about the Company.
Non-GAAP Financial Measures
Adjusted pre-tax income of $69.2 million for the quarter ended December 31, 2017 is calculated by adding back the FDIC loss share valuation adjustments of $8.6 million to pre-tax income of $60.6 million.
Adjusted non-interest income of $15.3 million for the quarter ended December 31, 2017 is calculated by adding back the FDIC loss share valuation adjustments of $8.6 million to non-interest income of $6.8 million.
Adjusted efficiency ratio of 47.3% for the quarter ended December 31, 2017 is calculated by dividing non-interest expense of $61.9 million by adjusted total income of $131.1 million (net interest income of $115.7 million plus adjusted non-interest income of $15.3 million).
Important Cautionary Statements

5


The foregoing information should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2017 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
This press release contains statements about the Company’s future that are not statements of historical fact. These statements are “forward looking statements” for purposes of applicable securities laws, and are based on current information and/or management's good faith belief as to future events. The words “believe,” “expect,” “anticipate,” “project,” and similar expressions signify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance. By their nature, forward-looking statements involve inherent risk and uncertainties, which change over time; and actual performance, could differ materially from those anticipated by any forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statement.
# # #



Contact:

Washington Federal, Inc.
425 Pike Street, Seattle, WA 98101
Brad Goode, SVP, Director of Communications
206-626-8178
brad.goode@wafd.com

6

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)

 
December 31, 2017
 
September 30, 2017
 
(In thousands, except share data)
ASSETS
 
 
 
Cash and cash equivalents
$
309,713

 
$
313,070

Available-for-sale securities, at fair value
1,245,855

 
1,266,209

Held-to-maturity securities, at amortized cost
1,765,886

 
1,646,856

Loans receivable, net of allowance for loan losses of $127,155 and $123,073
11,107,042

 
10,882,622

Interest receivable
42,146

 
41,643

Premises and equipment, net
264,643

 
263,694

Real estate owned
17,928

 
20,658

FHLB and FRB stock
130,590

 
122,990

Bank owned life insurance
211,833

 
211,330

Intangible assets, including goodwill of $300,288 and $293,153
310,578

 
298,682

Other assets
177,799

 
185,826

 
$
15,584,013

 
$
15,253,580

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Liabilities
 
 
 
Customer accounts
 
 
 
Transaction deposit accounts
$
6,482,612

 
$
6,361,158

Time deposit accounts
4,518,967

 
4,473,850

 
11,001,579

 
10,835,008

FHLB advances
2,415,000

 
2,225,000

Advance payments by borrowers for taxes and insurance
23,924

 
56,631

Accrued expenses and other liabilities
133,892

 
131,253

 
13,574,395

 
13,247,892

Stockholders’ equity
 
 
 
Common stock, $1.00 par value, 300,000,000 shares authorized; 135,274,618 and 134,957,511 shares issued; 86,363,099 and 87,193,362 shares outstanding
135,275

 
134,958

Paid-in capital
1,661,866

 
1,660,885

Accumulated other comprehensive (loss) income, net of taxes
8,004

 
5,015

Treasury stock, at cost; 48,911,519 and 47,764,149 shares
(877,044
)
 
(838,060
)
Retained earnings
1,081,517

 
1,042,890

 
2,009,618

 
2,005,688

 
$
15,584,013

 
$
15,253,580

CONSOLIDATED FINANCIAL HIGHLIGHTS
 
 
 
Common stockholders' equity per share
$
23.27

 
$
23.00

Tangible common stockholders' equity per share
$
19.67

 
$
19.58

Stockholders' equity to total assets
12.90
%
 
13.15
%
Tangible common stockholders' equity to tangible assets
11.12
%
 
11.41
%
 
 
 
 
Weighted average rates at period end
 
 
 
   Loans and mortgage-backed securities
3.99
%
 
3.96
%
   Combined loans, mortgage-backed securities and investments
3.85

 
3.82

   Customer accounts
0.57

 
0.54

   Borrowings
2.56

 
2.80

   Combined cost of customer accounts and borrowings
0.93

 
0.92

   Net interest spread
2.92

 
2.90


7

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)


 
Three Months Ended December 31,
 
2017
 
2016
 
(In thousands, except share data)
INTEREST INCOME
 
 
 
Loans receivable
$
124,511

 
$
114,835

Mortgage-backed securities
16,899

 
12,789

Investment securities and cash equivalents
4,370

 
5,140

 
145,780

 
132,764

INTEREST EXPENSE
 
 
 
Customer accounts
14,638

 
13,017

FHLB advances and other borrowings
15,407

 
16,595

 
30,045

 
29,612

Net interest income
115,735

 
103,152

Provision (release) for loan losses
—

 
—

Net interest income after provision (release) for loan losses
115,735

 
103,152

 
 
 
 
OTHER INCOME
 
 
 
Gain on sale of investment securities
—

 
968

FDIC loss share valuation adjustments
(8,550
)
 
—

Loan fee income
1,035

 
1,334

Deposit fee income
6,686

 
5,185

Other Income
7,624

 
4,409

 
6,795

 
11,896

OTHER EXPENSE
 
 
 
Compensation and benefits
29,619

 
26,994

Occupancy
8,671

 
8,450

FDIC insurance premiums
2,820

 
2,839

Product delivery
3,956

 
3,361

Information technology
7,929

 
6,451

Other
8,946

 
6,246

 
61,941

 
54,341

Gain (loss) on real estate owned, net
46

 
398

Income before income taxes
60,635

 
61,105

Income tax provision
8,965

 
19,859

NET INCOME
$
51,670

 
$
41,246

 
 
 
 
PER SHARE DATA
 
 
 
Basic earnings per share
$
0.59

 
$
0.46

Diluted earnings per share
0.59

 
0.46

Cash dividends per share
0.15

 
0.14

Basic weighted average shares outstanding
86,938,095

 
89,310,958

Diluted weighted average shares outstanding
87,082,499

 
89,731,024

 
 
 
 
PERFORMANCE RATIOS
 
 
 
Return on average assets
1.35
%
 
1.11
%
Return on average common equity
10.25

 
8.31

Net interest margin
3.26

 
3.02

Efficiency ratio (a)
47.25

 
47.23

(a) Efficiency ratio for the quarter ended December 31, 2017 excludes the impact of $8.6 million reduction to other income related to FDIC loss share valuation adjustments.

8

 EX-99.2 3 exhibit992_dec2017factsheet.htm EXHIBIT 99.2 Exhibit
Washington Federal, Inc.
Fact Sheet
December 31, 2017
($ in Thousands)

 
 
 
 
 
 
 
 
 
Exhibit 99.2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 As of 06/17
 
 
 
As of 09/17
 
 
As of 12/17
 
 
Loan Loss Reserve - Total
 
$
128,779

 
 
 
$
130,823

 
 
$
133,905

 
 
     General and Specific Allowance
 
122,229

 
 
 
123,073

 
 
127,155

 
 
     Commitments Reserve
 
6,550

 
 
 
7,750

 
 
6,750

 
 
     Allowance and Reserve as a % of Gross Loans
 
1.08
%
 
 
 
1.07
%
 
 
1.08
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 06/17 QTR
 
 06/17 YTD
 
09/17 QTR
 
09/17 YTD
12/17 QTR
 
12/17 YTD
Loan Originations - Total
 
$
1,030,996

 
$
3,216,125

 
$
1,022,853

 
$
4,238,978

$
953,552

 
$
953,552

     Single-Family Residential
 
181,721

 
567,509

 
189,607

 
757,116

158,086

 
158,086

     Construction
 
268,027

 
774,048

 
307,416

 
1,081,464

279,833

 
279,833

     Construction - Custom
 
129,077

 
372,678

 
157,757

 
530,435

99,720

 
99,720

     Land - Acquisition & Development
 
21,559

 
48,124

 
31,752

 
79,876

24,449

 
24,449

     Land - Consumer Lot Loans
 
10,200

 
27,423

 
11,728

 
39,151

9,279

 
9,279

     Multi-Family
 
43,716

 
248,954

 
50,405

 
299,359

87,586

 
87,586

     Commercial Real Estate
 
97,962

 
340,009

 
103,678

 
443,687

64,149

 
64,149

     Commercial & Industrial
 
258,310

 
779,910

 
151,930

 
931,840

212,064

 
212,064

     HELOC
 
19,310

 
54,922

 
17,991

 
72,913

17,651

 
17,651

     Consumer
 
1,114

 
2,548

 
589

 
3,137

735

 
735

 
 
 
 
 
 
 
 
 
 
 
 
Purchased Loans (including acquisitions)
 
$
—

 
$
72,856

 
$
—

 
$
72,856

$
143,605

 
$
143,605

 
 
 
 
 
 
 
 
 
 
 
 
Net Loan Fee and Discount Accretion
 
$
2,348

 
$
14,874

 
$
4,181

 
$
19,055

$
3,509

 
$
3,509

 
 
 
 
 
 
 
 
 
 
 
 
Repayments
 
 
 
 
 
 
 
 
 
 
 
Loans
 
$
793,432

 
$
2,400,232

 
$
699,619

 
$
3,099,851

$
859,583

 
$
859,583

MBS
 
151,218

 
426,287

 
96,156

 
522,443

92,808

 
92,808

 
 
 
 
 
 
 
 
 
 
 
 
MBS Premium Amortization
 
$
2,620

 
$
10,651

 
$
2,929

 
$
13,580

$
2,206

 
$
2,206

 
 
 
 
 
 
 
 
 
 
 
 
Efficiency
 
 
 
 
 
 
 
 
 
 
 
Operating Expenses/Average Assets
 
1.52
%
 
1.51
%
 
1.66
%
 
1.55
%
1.62
%
 
1.62
%
Efficiency Ratio (%) (a)
 
46.57
%
 
47.51
%
 
48.68
%
 
47.82
%
47.25
%
 
47.25
%
Amortization of Intangibles
 
$
375

 
$
1,294

 
$
2,053

 
$
3,347

$
705

 
$
705

(a) Efficiency ratio for the quarter ended December 31, 2017 excludes the impact of $8.6 million reduction to noninterest income related to FDIC loss share valuation adjustments.
 
 
 
 
 
 
 
 
 
 
 
 
EOP Numbers
 
 
 
 
 
 
 
 
 
 
 
Shares Issued and Outstanding
 
88,750,133

 
 
 
87,193,362

 
 
86,363,099

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share repurchase information
 
 
 
 
 
 
 
 
 
 
 
Remaining shares authorized for repurchase (b)
 
3,468,854

 
 
 
1,900,955

 
 
753,585

 
 
Shares repurchased
 
811,034

 
1,569,279

 
1,567,899

 
3,137,178

1,147,370

 
1,147,370

Average share repurchase price
 
$
32.14

 
$
29.61

 
$
33.10

 
$
31.36

$
33.98

 
$
33.98

(b) Remaining shares authorized for repurchase reflects a reduction related to TARP warrants repurchased for cash to date.




1
Washington Federal, Inc.
Fact Sheet
December 31, 2017
($ in Thousands)

Tangible Common Book Value
 
As of 06/17
 
 
 
As of 09/17
 
 
 
As of 12/17
 
 
$ Amount
 
$
1,725,491

 
 
 
$
1,707,006

 
 
 
$
1,699,040

 
 
Per Share
 
19.44

 
 
 
19.58

 
 
 
19.67

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
# of Employees
 
1,815

 
 
 
1,818

 
 
 
1,829

 
 
Investments
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
     Agency MBS
 
$
809,702

 
 
 
$
842,688

 
 
 
$
839,855

 
 
     Other
 
460,712

 
 
 
423,521

 
 
 
406,000

 
 
 
 
$
1,270,414

 
 
 
$
1,266,209

 
 
 
$
1,245,855

 
 
Held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
 
     Agency MBS
 
$
1,651,528

 
 
 
$
1,646,856

 
 
 
$
1,765,886

 
 
 
 
$
1,651,528

 
 
 
$
1,646,856

 
 
 
$
1,765,886

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of 06/17
 
 
 
As of 09/17
 
 
 
As of 12/17
 
 
Loans Receivable by Category
 
 AMOUNT
 
 %
 
 AMOUNT
 
 %
 
 AMOUNT
 
 %
     Single-Family Residential
 
$
5,687,850

 
47.9%
 
$
5,711,004

 
46.8%
 
$
5,693,318

 
45.7%
     Construction
 
1,436,874

 
12.1
 
1,597,996

 
13.1
 
1,710,418

 
13.7
     Construction - Custom
 
561,260

 
4.7
 
602,631

 
4.9
 
583,580

 
4.7
     Land - Acquisition & Development
 
119,524

 
1.0
 
124,308

 
1.0
 
136,938

 
1.1
     Land - Consumer Lot Loans
 
101,626

 
0.9
 
104,405

 
0.9
 
105,086

 
0.8
     Multi-Family
 
1,263,187

 
10.6
 
1,303,148

 
10.7
 
1,312,695

 
10.5
     Commercial Real Estate
 
1,346,006

 
11.3
 
1,434,610

 
11.8
 
1,436,508

 
11.5
     Commercial & Industrial
 
1,116,860

 
9.4
 
1,093,360

 
9.0
 
1,120,707

 
9.0
     HELOC
 
148,584

 
1.3
 
144,850

 
1.2
 
136,995

 
1.1
     Consumer
 
95,775

 
0.8
 
85,075

 
0.7
 
219,971

 
1.8
 
 
11,877,546

 
100%
 
12,201,387

 
100%
 
12,456,216

 
100%
     Less:
 
 
 
 
 
 
 
 
 
 
 
 
        ALL
 
122,229

 
 
 
123,073

 
 
 
127,155

 
 
        Loans in Process
 
1,054,513

 
 
 
1,149,934

 
 
 
1,175,642

 
 
        Net Deferred Fees, Costs and Discounts
 
46,379

 
 
 
45,758

 
 
 
46,377

 
 
        Sub-Total
 
1,223,121

 
 
 
1,318,765

 
 
 
1,349,174

 
 
 
 
$
10,654,425

 
 
 
$
10,882,622

 
 
 
$
11,107,042

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Loan Portfolio by Category
 
 AMOUNT
 
 %
 
 AMOUNT
 
 %
 
 AMOUNT
 
 %
     Single-Family Residential
 
$
5,628,508

 
52.8%
 
$
5,652,365

 
51.9%
 
$
5,636,013

 
50.7%
     Construction
 
656,287

 
6.2
 
763,742

 
7.0
 
820,969

 
7.4
     Construction - Custom
 
265,722

 
2.5
 
273,520

 
2.5
 
288,162

 
2.6
     Land - Acquisition & Development
 
103,414

 
1.0
 
97,587

 
0.9
 
104,426

 
0.9
     Land - Consumer Lot Loans
 
98,592

 
0.9
 
101,265

 
0.9
 
101,666

 
0.9
     Multi-Family
 
1,250,730

 
11.7
 
1,290,640

 
11.9
 
1,300,179

 
11.7
     Commercial Real Estate
 
1,327,530

 
12.5
 
1,416,188

 
13.0
 
1,418,364

 
12.8
     Commercial & Industrial
 
1,082,486

 
10.2
 
1,060,304

 
9.7
 
1,086,533

 
9.8
     HELOC
 
147,012

 
1.4
 
143,381

 
1.3
 
135,623

 
1.2
     Consumer
 
94,144

 
0.9
 
83,630

 
0.8
 
215,107

 
1.9
 
 
$
10,654,425

 
100%
 
$
10,882,622

 
100%
 
$
11,107,042

 
100%

2
Washington Federal, Inc.
Fact Sheet
December 31, 2017
($ in Thousands)

 
 
As of 06/30/17
 
 
 
As of 09/30/17
 
 
 
As of 12/31/17
 
 
Deposits by State
 
 AMOUNT
 
%
 
#
 
 AMOUNT
 
%
 
#
 
 AMOUNT
 
%
 
#
     Washington
 
$
5,199,590

 
48.9
%
 
81

 
$
5,383,764

 
49.7
%
 
81

 
$
5,605,233

 
50.9
%
 
81

     Idaho
 
768,049

 
7.2

 
24

 
786,974

 
7.3

 
24

 
771,350

 
7.0

 
24

     Oregon
 
1,939,619

 
18.2

 
47

 
1,964,490

 
18.1

 
47

 
1,947,171

 
17.7

 
47

     Utah
 
270,224

 
2.5

 
10

 
267,717

 
2.5

 
10

 
263,405

 
2.4

 
10

     Nevada
 
328,121

 
3.1

 
11

 
326,436

 
3.0

 
11

 
331,423

 
3.0

 
11

     Texas
 
96,264

 
0.9

 
5

 
97,670

 
0.9

 
6

 
97,108

 
0.9

 
6

     Arizona
 
1,177,997

 
11.1

 
31

 
1,164,743

 
10.7

 
31

 
1,155,381

 
10.5

 
31

     New Mexico
 
854,414

 
8.0

 
27

 
843,214

 
7.8

 
27

 
830,508

 
7.5

 
27

     Total
 
$
10,634,278

 
100%
 
236

 
$
10,835,008

 
100%
 
237

 
$
11,001,579

 
100%
 
237

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits by Type
 
 AMOUNT
 
%
 
 
 
 AMOUNT
 
%
 
 
 
 AMOUNT
 
%
 
 
Checking (non-interest)
 
$
1,195,152

 
11.2
%
 
 
 
$
1,258,274

 
11.6
%
 
 
 
$
1,299,602

 
11.8
%
 
 
NOW (interest)
 
1,703,994

 
16.0

 
 
 
1,760,821

 
16.3

 
 
 
1,848,594

 
16.8

 
 
Savings
 
871,257

 
8.2

 
 
 
888,881

 
8.2

 
 
 
894,879

 
8.1

 
 
Money Market
 
2,433,547

 
22.9

 
 
 
2,453,182

 
22.6

 
 
 
2,439,537

 
22.2

 
 
Time Deposits
 
4,430,328

 
41.7

 
 
 
4,473,850

 
41.3

 
 
 
4,518,967

 
41.1

 
 
Total
 
$
10,634,278

 
100%
 
 
 
$
10,835,008

 
100%
 
 
 
$
11,001,579

 
100%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits greater than $250,000 - EOP
 
$
2,524,536

 
 
 
 
 
$
2,674,914

 
 
 
 
 
$
2,857,838

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Time Deposit Repricing
 
Amount
 
Rate
 
 
 
Amount
 
Rate
 
 
 
Amount
 
Rate
 
 
Within 3 months
 
$
879,213

 
0.65
%
 
 
 
$
668,177

 
0.65
%
 
 
 
$
730,975

 
0.74
%
 
 
From 4 to 6 months
 
649,962

 
0.67
%
 
 
 
714,935

 
0.76
%
 
 
 
871,822

 
0.83
%
 
 
From 7 to 9 months
 
450,756

 
0.83
%
 
 
 
653,760

 
0.85
%
 
 
 
525,594

 
0.98
%
 
 
From 10 to 12 months
 
625,472

 
0.87
%
 
 
 
471,057

 
0.98
%
 
 
 
677,959

 
1.08
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Performing Assets
 
 AMOUNT
 
 %
 
 
 
 AMOUNT
 
 %
 
 
 
 AMOUNT
 
 %
 
 
Non-accrual loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Single-Family Residential
 
$
32,613

 
57.8%
 
 
 
$
27,930

 
56.3%
 
 
 
$
26,219

 
57.6%
 
 
     Construction
 
—

 
—
 
 
 
—

 
—
 
 
 
364

 
0.8
 
 
     Construction - Custom
 
536

 
1.0
 
 
 
91

 
0.2
 
 
 
—

 
—
 
 
     Land - Acquisition & Development
 
71

 
0.1
 
 
 
296

 
0.6
 
 
 
1,326

 
2.9
 
 
     Land - Consumer Lot Loans
 
1,066

 
1.9
 
 
 
605

 
1.2
 
 
 
976

 
2.1
 
 
     Multi-Family
 
682

 
1.2
 
 
 
139

 
0.3
 
 
 
250

 
0.5
 
 
     Commercial Real Estate
 
12,983

 
23.0
 
 
 
11,815

 
23.8
 
 
 
8,241

 
18.1
 
 
     Commercial & Industrial
 
8,254

 
14.6
 
 
 
8,082

 
16.3
 
 
 
7,596

 
16.7
 
 
     HELOC
 
181

 
0.3
 
 
 
531

 
1.1
 
 
 
476

 
1.0
 
 
     Consumer
 
22

 
—
 
 
 
91

 
0.2
 
 
 
72

 
0.2
 
 
        Total non-accrual loans
 
56,408

 
100%
 
 
 
49,580

 
100%
 
 
 
45,520

 
100%
 
 
Real Estate Owned
 
19,112

 
 
 
 
 
20,658

 
 
 
 
 
17,928

 
 
 
 
Total non-performing assets
 
$
75,520

 
 
 
 
 
$
70,238

 
 
 
 
 
$
63,448

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-accrual loans as % of total net loans
 
0.53
%
 
 
 
 
 
0.46
%
 
 
 
 
 
0.41
%
 
 
 
 
Non-performing assets as % of total assets
 
0.50
%
 
 
 
 
 
0.46
%
 
 
 
 
 
0.41
%
 
 
 
 


3
Washington Federal, Inc.
Fact Sheet
December 31, 2017
($ in Thousands)

 
 
As of 06/30/17
 
As of 09/30/17
 
As of 12/31/17
 
 
 AMOUNT
 
%
 
 AMOUNT
 
%
 
 AMOUNT
 
%
Restructured loans:
 
 
 
 
 
 
 
 
 
 
 
 
     Single-Family Residential
 
$
196,575

 
87.9%
 
$
181,941

 
87.7%
 
$
170,601

 
85.7%
     Construction
 
—

 
—
 
—

 
—
 
—

 
—
     Construction - Custom
 
—

 
—
 
—

 
—
 
—

 
—
     Land - Acquisition & Development
 
190

 
0.1
 
90

 
—
 
—

 
—
     Land - Consumer Lot Loans
 
8,878

 
4.0
 
7,949

 
3.8
 
7,405

 
3.7
     Multi-Family
 
497

 
0.2
 
493

 
0.2
 
480

 
0.2
     Commercial Real Estate
 
15,907

 
7.1
 
15,079

 
7.3
 
11,910

 
6.0
     Commercial & Industrial
 
—

 
—
 
—

 
—
 
7,256

 
3.6
     HELOC
 
1,409

 
0.6
 
1,728

 
0.8
 
1,432

 
0.7
     Consumer
 
102

 
—
 
97

 
—
 
91

 
—
        Total restructured loans
 
$
223,558

 
100%
 
$
207,377

 
100%
 
$
199,175

 
100%
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructured loans were as follows:
 
 
 
 
 
 
 
 
 
 
 
 
     Performing
 
$
215,178

 
96.3%
 
$
202,272

 
97.5%
 
$
194,359

 
97.6%
     Non-performing (c)
 
8,380

 
3.7
 
5,105

 
2.5
 
4,816

 
2.4
     Total restructured loans
 
$
223,558

 
100%
 
$
207,377

 
100%
 
$
199,175

 
100%
     (c) Included in "Total non-accrual loans" above
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AMOUNT
 
CO % (d)
 
AMOUNT
 
CO % (d)
 
AMOUNT
 
CO % (d)
Net Charge-offs (Recoveries) by Category
 
 
 
 
 
 
 
 
 
 
 
 
     Single-Family Residential
 
$
186

 
0.01%
 
$
267

 
0.02%
 
$
340

 
0.02%
     Construction
 
—

 
—
 
—

 
—
 
—

 
—
     Construction - Custom
 
—

 
—
 
13

 
0.01
 
50

 
0.03
     Land - Acquisition & Development
 
(863
)
 
(2.89)
 
(1,729
)
 
(5.56)
 
(3,372
)
 
(9.85)
     Land - Consumer Lot Loans
 
(118
)
 
(0.46)
 
(113
)
 
(0.43)
 
47

 
0.18
     Multi-Family
 
—

 
—
 
—

 
—
 
—

 
—
     Commercial Real Estate
 
(164
)
 
(0.05)
 
—

 
—
 
—

 
—
     Commercial & Industrial
 
(154
)
 
(0.06)
 
(727
)
 
(0.27)
 
61

 
0.02
     HELOC
 
(1
)
 
—
 
(19
)
 
(0.05)
 
—

 
—
     Consumer
 
(138
)
 
(0.58)
 
(236
)
 
(1.11)
 
(208
)
 
(0.38)
        Total net charge-offs (recoveries)
 
$
(1,252
)
 
(0.04)%
 
$
(2,544
)
 
(0.08)%
 
$
(3,082
)
 
(0.10)%
     (d) Annualized Net Charge-offs (recoveries) divided by Gross Balance
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Risk
 
 
 
 
 
 
 
 
 
 
 
 
One Year GAP
 
 
 
(15.8
)%
 
 
 
(15.7
)%
 
 
 
(12.9
)%
NPV post 200 bps shock (e)
 
 
 
14.5
 %
 
 
 
14.6
 %
 
 
 
14.2
 %
Change in NII after 200 bps shock (e)
 
 
 
2.0
 %
 
 
 
3.0
 %
 
 
 
1.3
 %
(e) Assumes no balance sheet management actions taken

4
Washington Federal, Inc.
Fact Sheet
December 31, 2017
($ in Thousands)


Historical CPR Rates (f)
 
WAFD
 
WAFD
Average for Quarter Ended:
SFR Mortgages
 
GSE MBS
 
 
 
 
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
%
12/31/2017
15.3
%
 
13.9
%
 
 
 
 
(f) The CPR Rate (conditional payment rate) is the rate that is equal to the proportion of the principal of a pool of loans that is paid off prematurely in each period.


5
Washington Federal, Inc.
Fact Sheet
December 31, 2017
Average Balance Sheet
($ in Thousands)

 
 
 
June 30, 2017
 
September 30, 2017
 
December 31, 2017
 
Average
 
 
 
Average
 
Average
 
 
 
Average
 
Average
 
 
 
Average
 
Balance
 
Interest
 
Rate
 
Balance
 
Interest
 
Rate
 
Balance
 
Interest
 
Rate
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans receivable
$
10,579,593

 
$
117,457

 
4.45
%
 
$
10,747,453

 
$
122,197

 
4.51
%
 
$
10,984,886

 
$
124,511

 
4.50
%
Mortgage-backed securities
2,551,598

 
15,992

 
2.51

 
2,493,604

 
15,605

 
2.48

 
2,521,407

 
16,899

 
2.66

Cash & investments
627,197

 
3,373

 
2.16

 
604,198

 
3,500

 
2.30

 
559,370

 
3,273

 
2.32

FHLB & FRB Stock
124,968

 
894

 
2.87

 
122,620

 
938

 
3.03

 
126,229

 
1,097

 
3.45

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total interest-earning assets
13,883,356

 
137,716

 
3.98
%
 
13,967,875

 
142,240

 
4.04
%
 
14,191,892

 
145,780

 
4.08
%
Other assets
1,142,899

 
 
 
 
 
1,144,200

 
 
 
 
 
1,149,607

 
 
 
 
Total assets
$
15,026,255

 
 
 
 
 
$
15,112,075

 
 
 
 
 
$
15,341,499

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer accounts
$
10,567,710

 
12,764

 
0.48
%
 
$
10,704,066

 
13,850

 
0.51
%
 
$
10,850,742

 
14,638

 
0.54
%
FHLB advances
2,274,451

 
16,337

 
2.88

 
2,214,674

 
15,958

 
2.86

 
2,305,978

 
15,407

 
2.65

Other borrowings
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total interest-bearing liabilities
12,842,161

 
29,101

 
0.91
%
 
12,918,740

 
29,808

 
0.92
%
 
13,156,720

 
30,045

 
0.91
%
Other liabilities
155,460

 
 
 
 
 
183,542

 
 
 
 
 
168,382

 
 
 
 
Total liabilities
12,997,621

 
 
 
 
 
13,102,282

 
 
 
 
 
13,325,102

 
 
 
 
Stockholders’ equity
2,028,634

 
 
 
 
 
2,009,793

 
 
 
 
 
2,016,397

 
 
 
 
Total liabilities and equity
$
15,026,255

 
 
 
 
 
$
15,112,075

 
 
 
 
 
$
15,341,499

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
 
 
$
108,615

 
 
 
 
 
$
112,432

 
 
 
 
 
$
115,735

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest margin (1)
 
 
 
 
3.13
%
 
 
 
 
 
3.22
%
 
 
 
 
 
3.26
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Annualized net interest income divided by average interest-earning assets
 
 
 
 
 
 


6
Washington Federal, Inc.
Fact Sheet
December 31, 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 $
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Single-Family Residential
 
25,325

 
225

 
$
5,692,045

 
51

 
35

 
104

 
190

 
0.75
%
 
$
36,172

 
0.64
%
     Construction
 
675

 
1,262

 
852,164

 
1

 
3

 
4

 
8

 
1.19

 
4,371

 
0.51

     Construction - Custom
 
1,241

 
235

 
292,255

 
—

 
—

 
—

 
—

 
—

 
—

 
—

     Land - Acquisition & Development
 
122

 
920

 
112,260

 
—

 
—

 
4

 
4

 
3.28

 
1,242

 
1.11

     Land - Consumer Lot Loans
 
1,209

 
87

 
104,996

 
2

 
1

 
10

 
13

 
1.08

 
750

 
0.71

     Multi-Family
 
1,122

 
1,170

 
1,312,673

 
—

 
—

 
2

 
2

 
0.18

 
250

 
0.02

     Commercial Real Estate
 
925

 
1,553

 
1,436,508

 
2

 
—

 
6

 
8

 
0.86

 
444

 
0.03

     Commercial & Industrial
 
1,849

 
606

 
1,120,707

 
7

 
2

 
23

 
32

 
1.73

 
3,467

 
0.31

     HELOC
 
2,859

 
48

 
136,995

 
8

 
4

 
17

 
29

 
1.01

 
991

 
0.72

     Consumer
 
3,847

 
57

 
219,971

 
43

 
15

 
107

 
165

 
4.29

 
567

 
0.26

 
 
39,174

 
288

 
$
11,280,574

 
114

 
60

 
277

 
451

 
1.15
%
 
$
48,254

 
0.43
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
%

7
 GRAPHIC 4 exhibit991logoa02.gif begin 644 exhibit991logoa02.gif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end