Current Report Filing (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 21, 2015

____________________________________

Washington Federal, Inc.

(Exact name of registrant as specified in its charter)

____________________________________




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

425 Pike Street, Seattle, Washington 98101

(Address of principal executive offices)(Zip Code)

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

Not Applicable

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

____________________________________

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



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



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



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



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



Item 2.02	Results of Operations and Financial Condition

On October 21, 2015, the Company announced by press release its earnings for the quarter ended September 30, 2015. A copy of the press release is attached to this filing as Exhibit 99.1. A copy of the September 30, 2015 Fact Sheet, which presents certain detailed financial information about the Company, is attached as Exhibit 99.2. This information is being furnished under Item 2.02 (Results of Operations and Financial Condition) of Form 8-K.



Item 7.01	Regulation FD Disclosure

A copy of the September 30, 2015 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

(d) The following exhibits are being furnished herewith:

99.1 Press release dated October 21, 2015

99.2 Fact Sheet as of September 30, 2015

SIGNATURES

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




Date: October 26, 2015	WASHINGTON FEDERAL, INC.

	By:	/s/ BRENT J. BEARDALL
		Brent J. Beardall
		Executive Vice President and Interim Chief Financial Officer

Exhibit 99.1

Wednesday October 21, 2015

FOR IMMEDIATE RELEASE

Washington Federal Concludes its Fiscal Year with Record Earnings

SEATTLE, WASHINGTON - Washington Federal, Inc. (Nasdaq: WAFD), parent company of Washington Federal, today announced completion of its 98^th fiscal year with record earnings of $160,316,000 or $1.67 per diluted share, compared to $157,364,000 or $1.55 per diluted share for the fiscal year ended September 30, 2014, a 7.7% increase in earnings per diluted share. Net income for the quarter ended September 30, 2015 amounted to $42,498,000 or $.45 per diluted share, compared to $40,561,000 or $.41 per diluted share for the same period one year ago, a 9.8% increase in earnings per diluted share.

Chairman, President & CEO Roy M. Whitehead commented, “Fiscal 2015 was a very successful year for the Company. Record earnings were driven primarily by increased commercial lending activity and steadily improving asset quality, two quite positive trends that we expect to continue. Although expenses will be somewhat higher over the next two quarters due to costs associated with completing a significant upgrade to our technology platform, efficiencies are expected thereafter. We look forward to 2016 and believe that it will add yet another year to the very long track record of prosperity at Washington Federal."

Total assets decreased by $188 million to $14.6 billion at September 30, 2015 from $14.8 billion at September 30, 2014. Cash and cash equivalents decreased by $498 million as low yielding cash was redeployed to higher earning loans. During fiscal 2015, the Company had an average balance of $418 million in cash and cash equivalents invested overnight at a yield of approximately 0.25%, which is a decrease of $150 million or 26% from the average cash balance during fiscal 2014.

Net loans receivable grew by $949 million or 11.7% during fiscal year 2015. Loan originations for fiscal year 2015 reached a record level of $3.1 billion, which was a $932 million or 42.9% increase over the prior fiscal year. Somewhat offsetting the record loan originations was a record level of repayments on loans which for the year totaled $2.5 billion, an increase of $630 million or 34.5% over the prior fiscal year. Commercial loans represented 62.3% of all loan originations during fiscal 2015 with consumer loans accounting for the remaining 37.7%. The Company views organic loan growth as the highest and best use of its capital and prefers commercial loans in this low rate environment for their shorter duration. The weighted average interest rate on loans decreased to 4.45% as of September 30, 2015 from 4.75% as of the prior year-end. Actual yield earned on loans is greater than the weighted-average rate due to net deferred loan fees and discounts on acquired loans, which are accreted into income over the term of the loans.

Asset quality continued to improve as the ratio of non-performing assets to total assets decreased to 0.88% as of September 30, 2015, compared to 1.00% as of last fiscal year end. The 0.88% is the lowest level experienced by the Company since June 2008. Delinquencies on loans decreased from 1.44% last year to 0.84% as of September 30, 2015. The Company realized net-recoveries on loans (as opposed to charge-offs) of $5 million, which is the second consecutive year of net recoveries. The allowance for loan losses and reserve for unfunded commitments totals $110 million as of September 30, 2015 and is 1.13% of gross loans outstanding.

Investments, which include both available-for-sale and held-to-maturity securities decreased by $574 million or 12.5% during the fiscal year as the Company chose to reinvest maturing securities into its higher yielding loan portfolio.

Customer deposits decreased by $85 million during the year to $10.6 billion as of September 30, 2015. The mix of customer deposits continued to shift toward core transaction accounts. Transaction accounts increased by $330 million or 6.0% during the year while time deposits decreased $415 million or 7.9% during the year. Over the last several years the Company has focused on growing transaction accounts to lessen sensitivity to rising interest rates. As of September 30, 2015, 54.8% of the Company’s deposits were in transaction accounts.

Total stockholders’ equity decreased by $18 million as the Company utilized more than its $160 million in net income to repurchase stock ($127 million) and pay cash dividends ($51 million). For the fiscal years 2015, 2014 and 2013, the Company returned to shareholders in the form of share repurchases or cash dividends 111%, 93% and 97%, of net income, respectively.

On August 21, 2015, the Company paid a cash dividend of 13 cents per share to common stockholders of record on August 7, 2015. This was the Company’s 130^th consecutive quarterly cash dividend. During the fiscal year, the Company repurchased 5.8 million shares of stock at a weighted average price of $21.70 per share and has authorization to repurchase an additional 4 million shares.

Tangible common stockholders’ equity per share increased $0.81 or 4.8% to $17.82 and the ratio of tangible common equity to tangible assets remained strong at 11.61%.

Net interest income was $413 million for the year, an $8 million or 1.9% increase from the prior year. Net interest income for the quarter was $107 million, a $3 million or 3.3% increase from the same quarter one year ago. Net interest income was higher for the quarter and year due to increasing loan balances generating higher interest income on loans and reduced funding costs.

Net interest margin was 3.08% for fiscal year 2015 as compared to 3.05% for the prior year. Net interest margin was 3.19% for the quarter ended September 30, 2015 compared to 3.02% for the prior quarter and 3.00% for the quarter ended September 30, 2014.

The provision for loan losses was a reversal of $11.1 million for fiscal year 2015 compared to a reversal of $15.4 million for 2014. This decrease was the result of continued improvement in credit quality as mentioned earlier, offset partially by the significant growth in the loan portfolio.

Total other income increased by $10 million or 31.8% in 2015, driven primarily by increased deposit fee income resulting from higher transaction volumes on checking accounts. The year produced a return on assets of 1.10% and a return on equity of 8.21%. Return on assets for the quarter was 1.17% while return on equity was 8.72%.

Total operating expenses increased by $21 million or 10.2% in 2015, driven by 1) an increase in the number of employees and branch locations provided by the acquisition of seventy-

four branches from Bank of America located in Eastern Washington, Oregon, Idaho, New Mexico, Arizona and Nevada during fiscal 2014 and 2) increased product delivery costs associated with increased usage of online banking and debit card transactions. Despite the increased operating costs year over year, the Company’s efficiency ratio of 49.54% remains among the lowest in the industry.

Net gain on real estate acquired through foreclosure amounted to $9.3 million for fiscal year 2015 compared to a net loss of $2.7 million for the prior year. Net gain on real estate acquired through foreclosure for the quarter was $4.3 million compared to $0.7 million in the same quarter of the prior year. Net gain or loss on real estate acquired through foreclosure includes gains and losses on sales, ongoing maintenance expenses and any additional net valuation adjustments.

For the year ended September 30, 2015 the Company expensed state and federal income taxes of $89 million, which equates to a 35.75% effective tax rate.

Washington Federal, a national bank with headquarters in Seattle, Washington, has 247 branches in eight western states. To find out more about Washington Federal, please visit our website. Washington Federal uses its website to distribute financial and other material information about the Company, which is routinely posted on and accessible at www.washingtonfederal.com.

Important Cautionary Statements

The foregoing information should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2014 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

Cathy Cooper, SVP Marketing Communications

206-777-8246

cathy.cooper@wafd.com

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(UNAUDITED)



	September 30, 2015			September 30, 2014
	(In thousands, except share data)
ASSETS
Cash and cash equivalents	$	284,049		$	781,843
Available-for-sale securities, at fair value	2,380,563			3,049,442
Held-to-maturity securities, at amortized cost	1,643,216			1,548,265
Loans receivable, net	9,097,738			8,148,322
Covered loans, net	72,896			176,476
Interest receivable	40,429			52,037
Premises and equipment, net	276,247			257,543
Real estate held for sale	54,119			55,072
Real estate held for investment	3,576			4,808
Covered real estate held for sale	3,403			24,082
FDIC indemnification asset	16,275			36,860
FHLB and FRB stock	107,198			158,839
Bank owned life insurance	102,496			—
Intangible assets, net	299,358			302,909
Federal and state income tax assets, net	14,513			16,515
Other assets	172,248			143,028
	$	14,568,324		$	14,756,041
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Customer accounts
Transaction deposit accounts	$	5,820,878		$	5,490,687
Time deposit accounts	4,810,825			5,226,241
	10,631,703			10,716,928
FHLB advances	1,830,000			1,930,000
Advance payments by borrowers for taxes and insurance	50,224			29,004
Accrued expenses and other liabilities	100,718			106,826
	12,612,645			12,782,758
Stockholders’ equity
Common stock, $1.00 par value, 300,000,000 shares authorized; 133,695,803 and 132,322,909 shares issued; 92,936,395 and 98,404,705 shares outstanding	133,696			133,323
Paid-in capital	1,643,712			1,638,211
Accumulated other comprehensive income, net of taxes	353			20,708
Treasury stock, at cost; 40,759,408 and 34,918,204 shares	(651,836		)	(525,108		)
Retained earnings	829,754			706,149
	1,955,679			1,973,283
	$	14,568,324		$	14,756,041
CONSOLIDATED FINANCIAL HIGHLIGHTS
Common stockholders' equity per share	$	21.04		$	20.05
Tangible common stockholders' equity per share	17.82			17.01
Stockholders' equity to total assets	13.42		%	13.40		%
Tangible common stockholders' equity to tangible assets	11.61			11.58





Weighted average rates at period end
Loans and mortgage-backed securities	3.94	%	4.17	%
Combined loans, mortgage-backed securities and investments	3.63		3.63
Customer accounts	0.48		0.51
Borrowings	3.35		3.52
Combined cost of customer accounts and borrowings	0.90		0.97
Interest rate spread	2.73		2.66

WASHINGTON FEDERAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)



	Quarter Ended September 30,					Year Ended September 30,
	2015		2014			2015			2014
	(In thousands, except per share data)					(In thousands, except per share data)
INTEREST INCOME
Loans & covered assets	$	112,185	$	109,200		$	437,002		$	430,850
Mortgage-backed securities	17,079		19,313			71,392			80,260
Investment securities and cash equivalents	6,075		6,564			22,159			22,587
	135,339		135,077			530,553			533,697
INTEREST EXPENSE
Customer accounts	12,550		14,007			51,054			58,524
FHLB advances and other borrowings	15,936		17,677			66,018			69,553
	28,486		31,684			117,072			128,077
Net interest income	106,853		103,393			413,481			405,620
Provision (reversal) for loan losses	219		(3,465		)	(11,162		)	(15,401		)
Net interest income after provision for loan losses	106,634		106,858			424,643			421,021

OTHER INCOME
Loan fee income	2,760		2,038			8,788			7,706
Deposit fee income	5,921		5,186			22,459			14,306
Gain (loss) on sale of investments	2		—			9,641			—
Prepayment penalty on long-term debt	—		—			(10,554		)	—
Other Income (loss)	3,708		2,873			10,089			8,647
	12,391		10,097			40,423			30,659
OTHER EXPENSE
Compensation and benefits	30,486		27,822			119,939			109,730
Occupancy	9,090		8,589			33,956			30,452
FDIC insurance premiums	2,485		2,331			7,916			11,009
Product delivery	5,103		5,011			22,325			14,973
Information Technology	4,281		3,938			15,976			14,303
Other	5,763		6,846			24,739			23,542
	57,208		54,537			224,851			204,009
Gain (loss) on real estate acquired through foreclosure, net	4,328		711			9,304			(2,743		)
Income before income taxes	66,145		63,129			249,519			244,928
Income tax provision	23,647		22,568			89,203			87,564
NET INCOME	$	42,498	$	40,561		$	160,316		$	157,364

PER SHARE DATA
Basic earnings	$	0.45	$	0.41		$	1.68		$	1.56
Diluted earnings	0.45		0.41			1.67			1.55
Cash dividends per share	0.13		0.11			0.54			0.41



Basic weighted average number of shares outstanding	93,593,763		99,320,940		95,644,639		101,154,030
Diluted weighted average number of shares outstanding, including dilutive stock options	94,055,345		99,696,612		96,053,959		101,590,351

PERFORMANCE RATIOS
Return on average assets	1.17	%	1.10	%	1.10	%	1.10	%
Return on average common equity	8.72		8.20		8.21		7.99
Net Interest Margin	3.19		3.00		3.08		3.05

Washington Federal, Inc.

Fact Sheet

September 30, 2015

($ in Thousands)



Exhibit 99.2
	3/15 QTR					6/15 QTR					9/15 QTR

Loan Loss Reserve - Total	$	110,221				$	107,977				$	109,914
General and Specific Allowance	$	108,323				$	105,611				$	106,829
Commitments Reserve	1,898					2,366					3,085
Allowance as a % of Gross Loans	1.22		%			1.17		%			1.13		%

Regulatory Capital Ratios
Common equity tier 1 risk-based	1,641,962				19.97%	1,630,586				19.35%	1,652,569				18.73%
Tier 1 risk-based	1,641,962				19.97%	1,630,586				19.35%	1,652,569				18.73%
Total risk-based (excludes holding co.)	1,745,636				21.23%	1,736,830				20.61%	1,763,171				19.98%
Tier 1 leverage (excludes holding co.)	1,641,962				11.52%	1,630,586				11.49%	1,652,569				11.66%

	3/15 QTR			3/15 YTD		6/15 QTR			6/15 YTD		9/15 QTR			9/15 YTD
Loan Originations - Total	$	691,472		$1,270,460		$	752,787		$2,023,247		$	1,080,268		$3,103,515
Single-Family Residential	130,636			297,935		196,613			494,548		211,193			$705,741
Construction - Speculative	49,051			99,209		72,466			171,675		91,857			$263,532
Construction - Custom	67,410			155,808		92,120			247,928		117,292			$365,220
Land - Acquisition & Development	29,573			46,140		10,901			57,041		21,777			$78,818
Land - Consumer Lot Loans	2,132			4,736		7,880			12,616		8,806			$21,422
Multi-Family	73,918			136,199		123,886			260,085		89,357			$349,442
Commercial Real Estate	202,498			262,338		108,226			370,564		230,046			$600,610
Commercial & Industrial	119,812			234,599		121,632			356,231		286,078			$642,309
HELOC	16,077			32,347		18,622			50,969		23,486			$74,455
Consumer	365			1,149		441			1,590		376			$1,966

Purchased Loans (including acquisitions)	$	100,001		$146,832		$	36,574		$183,406		$	96,530		$279,936

Net Loan Fee and Discount Accretion	$	7,071		$14,792		$	6,161		$20,953		$	8,783		$29,736

Washington Federal, Inc.

Fact Sheet

September 30, 2015

($ in Thousands)



	3/15 QTR			3/15 YTD			6/15 QTR			6/15 YTD			9/15 QTR			9/15 YTD
Repayments
Loans	$	596,801		$	1,113,727		$	651,123		$	1,764,850		$	692,418		$	2,457,268
MBS	114,836			216,330			126,951			343,281			115,910			459,191

MBS Premium Amortization	$	2,704		$	5,101		$	3,298		$	8,399		$	3,644		$	12,043

Efficiency
Operating Expenses/Average Assets	1.58		%	1.52		%	1.57		%	1.54		%	1.58		%	1.55		%
Efficiency Ratio	49.97			49.90			50.47			50.09			47.98			49.54
Amortization of Intangibles	$	982		$	2,006		$	794		$	2,800		$	751		$	3,551

EOP Numbers
Shares Issued and Outstanding	95,088,294						93,982,148						92,936,395

Share repurchase information
Remaining shares auth. for repurchase	1,426,269			1,426,269			5,254,607			5,254,607			4,201,230			4,201,230
Shares repurchased	2,500,018			3,616,165			1,171,662			4,787,827			1,053,377			5,841,204
Average share repurchase price	$	21.21		$	21.39		$	21.93		$	21.52		$	22.48		$	21.70

Washington Federal, Inc.

Fact Sheet

September 30, 2015

($ in Thousands)



Tangible Common Book Value	3/15 QTR			6/15 QTR			9/15 QTR
$ Amount	$	1,667,237		$	1,659,012		$	1,656,321
Per Share	17.53			17.65			17.82

# of Employees	1,865			1,839			1,838
Tax Rate - Going Forward	35.75		%	35.75		%	35.75		%

Investments
Available-for-sale:
Agency MBS	$	1,567,607		$	1,436,457		$	1,263,205
Other	1,189,299			1,187,917			1,117,358
	$	2,756,906		$	2,624,374		$	2,380,563
Held-to-maturity:
Agency MBS	$	1,479,781		$	1,586,514		$	1,643,216
Other	—			—			—
	$	1,479,781		$	1,586,514		$	1,643,216

Washington Federal, Inc.

Fact Sheet

September 30, 2015

($ in Thousands)



	AS OF 3/31/15			AS OF 6/30/15			AS OF 9/30/15
Gross Loan Portfolio by Category (a)	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,546,402	61.5%	$	5,568,929	60.1%	$	5,670,960	58.2%
Construction - Speculative	163,657		1.8	181,668		2.0	200,509		2.1
Construction - Custom	370,693		4.1	375,425		4.1	396,307		4.1
Land - Acquisition & Development	107,181		1.2	90,252		1.0	96,679		1.0
Land - Consumer Lot Loans	104,558		1.2	105,463		1.1	106,815		1.1
Multi-Family	1,012,915		11.2	1,093,374		11.8	1,129,045		11.6
Commercial Real Estate	885,177		9.8	981,824		10.6	1,152,652		11.8
Commercial & Industrial	466,208		5.2	512,973		5.5	657,222		6.7
HELOC	136,439		1.5	137,837		1.5	139,692		1.4
Consumer	221,525		2.5	208,956		2.3	197,481		2.0
	9,014,755		100.0%	9,256,701		100.0%	9,747,362		100.0%
Less:
ALL	108,323			105,611			106,829
Loans in Process	426,836			438,941			476,777
Discount on Acquired Loans	20,845			16,716			14,713
Deferred Net Origination Fees	37,763			49,824			51,305
Sub-Total	593,767			611,092			649,624
	$	8,420,988		$	8,645,609		$	9,097,738


Net Loan Portfolio by Category (a)	AMOUNT		%	AMOUNT		%	AMOUNT		%
Single-Family Residential	$	5,464,292	64.9%	$	5,482,853	63.4%	$	5,588,491	61.4%
Construction - Speculative	99,261		1.2	110,800		1.3	122,386		1.3
Construction - Custom	199,257		2.4	201,908		2.3	202,616		2.2
Land - Acquisition & Development	84,922		1.0	69,342		0.8	70,564		0.8
Land - Consumer Lot Loans	100,789		1.2	101,655		1.2	103,076		1.1
Multi-Family	934,864		11.1	1,006,301		11.6	1,059,406		11.6
Commercial Real Estate	748,850		8.9	848,173		9.8	994,865		10.9
Commercial & Industrial	438,047		5.2	484,930		5.6	625,792		6.9
HELOC	133,662		1.6	135,102		1.6	137,225		1.5
Consumer	217,044		2.6	204,545		2.4	193,316		2.1
	$	8,420,988	100.0%	$	8,645,609	100.0%	$	9,097,738	100.0%
(a) Excludes covered loans

Washington Federal, Inc.

Fact Sheet

September 30, 2015

($ in Thousands)



	AS OF 3/31/15					AS OF 6/30/15					AS OF 9/30/15
Deposits by State	AMOUNT		%		#	AMOUNT		%		#	AMOUNT		%		#
WA	$	5,028,312	47.0	%	81	$	4,992,642	47.2	%	82	$	5,031,982	47.3	%	83
ID	797,117		7.5		26	773,269		7.3		26	788,271		7.4		26
OR	1,991,272		18.6		49	1,977,131		18.7		48	2,002,606		18.8		48
UT	299,222		2.8		10	295,548		2.8		10	291,260		2.7		10
NV	349,807		3.3		11	350,109		3.3		11	347,127		3.3		11
TX	89,890		0.8		5	91,759		0.9		5	89,564		0.8		5
AZ	1,244,294		11.6		36	1,222,910		11.6		35	1,213,401		11.4		35
NM	892,711		8.3		29	875,017		8.3		28	867,492		8.2		28
Total	$	10,692,625	100.0	%	247	$	10,578,385	100.0	%	245	$	10,631,703	100.0	%	246


Deposits by Type	AMOUNT		%			AMOUNT		%			AMOUNT		%
Checking (noninterest)	$	922,589	8.6	%		$	933,645	8.8	%		$	976,250	9.2	%
NOW (interest)	1,574,294		14.7			1,556,136		14.7			1,579,516		14.9
Savings (passbook/stmt)	663,863		6.2			671,426		6.3			700,793		6.6
Money Market	2,547,050		23.8			2,535,329		24.0			2,564,319		24.1
CD's	4,984,829		46.6			4,881,849		46.1			4,810,825		45.2
Total	$	10,692,625	100.0	%		$	10,578,385	100.0	%		$	10,631,703	100.0	%

Deposits greater than $250,000 - EOP	$	1,998,536				$	1,999,908				$	2,096,690

Washington Federal, Inc.

Fact Sheet

September 30, 2015

($ in Thousands)



	AS OF 3/31/15				AS OF 6/30/15				AS OF 9/30/15
Non-Performing Assets	AMOUNT			%	AMOUNT			%	AMOUNT			%
Non-accrual loans:
Single-Family Residential	$	60,781		79.0%	$	56,638		86.7%	$	59,074		87.1%
Construction - Speculative	1,152			1.5	762			1.2	754			1.1
Construction - Custom	—			—	355			0.5	732			1.1
Land - Acquisition & Development	—			—	—			—	—			—
Land - Consumer Lot Loans	2,458			3.2	1,308			2.0	1,273			1.9
Multi-Family	—			—	786			1.2	2,558			3.8
Commercial Real Estate	5,735			7.5	2,852			4.4	2,176			3.2
Commercial & Industrial	5,018			6.5	1,205			1.8	—			—
HELOC	1,175			1.5	889			1.4	563			0.8
Consumer	576			0.7	513			0.8	680			1.0
Total non-accrual loans	76,895			100.0%	65,308			100.0%	67,810			100.0%
Total REO	72,239				59,239				57,191
Total REHI	4,068				4,336				3,576
Total non-performing assets	$	153,202		(b)	$	128,883		(b)	$	128,577		(b)
(b) Includes $10 million from former Horizon Bank

Total non-performing loans	0.91		%		0.76		%		0.75		%
Total non-performing assets	1.05		%		0.90		%		0.88		%
As a % of total assets

Washington Federal, Inc.

Fact Sheet

September 30, 2015

($ in Thousands)



	3/15 QTR			6/15 QTR			9/15 QTR
	AMOUNT		%	AMOUNT		%	AMOUNT		%
Restructured loans:
Single-Family Residential	$	290,950	85.6	$	275,428	85.7	$	259,460	85.7
Construction - Speculative	6,408		1.9	6,370		2.0	4,989		1.6
Construction - Custom	—		—	—		—	—		—
Land - Acquisition & Development	4,179		1.2	3,536		1.1	2,486		0.8
Land - Consumer Lot Loans	12,501		3.7	11,539		3.6	11,289		3.7
Multi-Family	3,862		1.1	3,843		1.2	3,823		1.3
Commercial Real Estate	20,673		6.1	19,251		6.0	19,124		6.3
Commercial & Industrial	—		—	—		—	—		—
HELOC	1,394		0.4	1,394		0.4	1,443		0.5
Consumer	122		—	120		—	99		—
Total restructured loans	$	340,089	100.0%	$	321,481	100.0%	$	302,713	100.0%

Restructured loans were as follows:
Performing	$	327,386	96.3%	$	308,355	95.9%	$	289,587	95.7%
Non-performing (c)	12,703		3.7	13,126		4.1	13,126		4.3
Total restructured loans	$	340,089	100.0%	$	321,481	100.0%	$	302,713	100.0%
(c) Included in "Total non-accrual loans" above

Washington Federal, Inc.

Fact Sheet

September 30, 2015

($ in Thousands)



	3/15 QTR					6/15 QTR					9/15 QTR
	AMOUNT			CO % (d)		AMOUNT			CO % (d)		AMOUNT			CO % (d)
Net Charge-offs (Recoveries) by Category
Single-Family Residential	$	(2,713	)	(0.20)%		$	(2,181	)	(0.16)%		$	(2,128	)	(0.15)%
Construction - Speculative	(75		)	(0.18)		—			—		(45		)	(0.09)
Construction - Custom	—			—		—			—		—			—
Land - Acquisition & Development	(204		)	(0.76)		(1		)	—		(1		)	—
Land - Consumer Lot Loans	17			0.07		89			0.34		96			0.36
Multi-Family	—			—		—			—		—			—
Commercial Real Estate	(453		)	(0.20)		1,361			0.55		68			0.02
Commercial & Industrial	338			0.29		1,210			0.94		468			0.28
HELOC	—			—		25			0.07		39			0.11
Consumer	(33		)	(0.06)		(192		)	(0.37)		(215		)	(0.44)
Total net charge-offs	$	(3,123	)	(0.14)%		$	313		0.01%		$	(1,718	)	(0.07)%
(d) Annualized Net Charge-offs divided by Gross Balance

SOP 03-3 Acquired Loans
Accretable Yield	$	91,290				$	83,640				$	76,917
Non-Accretable Yield	167,603					167,603					167,603
Total Contractual Payments	$	258,893				$	251,243				$	244,520

Interest Rate Risk
One Year GAP				(10.3	)%				(13.2	)%				(13.4	)%
NPV post 200 bps shock (e)				16.50	%				16.53	%				15.91	%
Change in NII after 200 bps shock (e)				(1.1	)%				(2.2	)%				(2.2	)%
(e) Assumes no balance sheet management

CD's Repricing	Amount			Rate		Amount			Rate		Amount			Rate
Within 3 months	$	612,836		0.60	%	$	621,694		0.45	%	$	897,917		0.49	%
From 4 to 6 months	883,166			0.50	%	913,269			0.50	%	977,012			0.54	%
From 7 to 9 months	708,921			0.58	%	620,542			0.61	%	444,042			0.68	%
From 10 to 12 months	745,590			0.47	%	678,536			0.56	%	497,525			0.86	%

Washington Federal, Inc.

Fact Sheet

September 30, 2015

($ in Thousands)



Historical CPR Rates (f)
	WAFD		WAFD
Average for Quarter Ended:	SFR Mortgages		GSE MBS

9/30/2013	21.4	%	15.9	%
12/31/2013	13.5	%	8.7	%
3/31/2014	10.1	%	8.5	%
6/30/2014	13.8	%	10.6	%
9/30/2014	14.6	%	13.4	%
12/31/2014	15.9	%	12.1	%
3/31/2015	16.4	%	13.9	%
6/30/2015	18.7	%	15.9	%
9/30/2015	17.8	%	14.5	%

(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. Also, the comparison is not precise in that Washington Federal is a portfolio lender and not required to follow GSE servicing rules/regulations.

Washington Federal, Inc.

Fact Sheet

September 30, 2015

Average Balance Sheet

($ in Thousands)



	Quarters Ended
	March 31, 2015						June 30, 2015						September 30, 2015
	Average				Average		Average				Average		Average				Average
	Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
Assets
Loans and covered loans	$	8,487,458	$	109,275	5.22	%	$	8,628,344	$	107,249	4.99	%	$	8,908,562	$	112,185	5.00	%
Mortgage-backed securities	3,070,002		18,144		2.40		3,024,821		16,995		2.25		2,965,534		17,079		2.28
Cash & Investments	1,688,076		4,813		1.16		1,543,556		4,625		1.20		1,429,487		5,509		1.53
FHLB & FRB Stock	154,342		399		1.05		134,692		430		1.28		106,849		566		2.10

Total interest-earning assets	13,399,878		132,630		4.01	%	13,331,414		129,300		3.89	%	13,410,432		135,339		4.00	%
Other assets	1,150,996						1,124,750						1,114,484

Total assets	$	14,550,874					$	14,456,164					$	14,524,916

Liabilities and Equity
Customer accounts	10,659,570		12,574		0.48	%	10,635,364		12,485		0.47	%	10,650,672		12,550		0.47	%
FHLB advances	1,830,000		16,176		3.58		1,820,110		16,250		3.58		1,824,565		15,936		3.47
Other borrowings	—		—		—		—		—		—		—		—		—

Total interest-bearing liabilities	12,489,570		28,750		0.93	%	12,455,474		28,735		0.93	%	12,475,237		28,486		0.91	%
Other liabilities	114,628						46,980						100,023

Total liabilities	12,604,198						12,502,454						12,575,260
Stockholders’ equity	1,946,676						1,953,710						1,949,656

Total liabilities and equity	$	14,550,874					$	14,456,164					$	14,524,916

Net interest income			$	103,881					$	100,565					$	106,853

Net interest margin					3.10	%					3.02	%					3.19	%

(Annualized net interest income divided by average interest-earning assets)

Washington Federal, Inc.

Fact Sheet

September 30, 2015

Delinquency Summary (excludes covered loans)

($ 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, 2015
Single-Family Residential	27,768	204	$	5,666,725	95	42	182	319	1.15	%	$	64,908	1.15	%
Construction - Speculative	618	211	130,121		—	—	—	—	—	%	—		—	%
Construction - Custom	812	253	205,692		4	1	2	7	0.86	%	1,524		0.74	%
Land - Acquisition & Development	141	546	76,944		2	—	2	4	2.84	%	924		1.20	%
Land - Consumer Lot Loans	1,259	85	106,752		10	4	11	25	1.99	%	2,578		2.41	%
Multi-Family	994	1,077	1,070,874		1	1	4	6	0.60	%	2,371		0.22	%
Commercial Real Estate	1,005	1,015	1,019,625		3	—	3	6	0.60	%	1,700		0.17	%
Commercial & Industrial	1,175	560	657,490		3	1	2	6	0.51	%	943		0.14	%
HELOC	2,175	64	139,682		8	1	6	15	0.69	%	982		0.70	%
Consumer	5,076	39	197,481		85	35	40	160	3.15	%	1,836		0.93	%
	41,023	226	$	9,271,386	211	85	252	548	1.34	%	$	77,766	0.84	%

June 30, 2015
Single-Family Residential	28,055	198	$	5,566,121	90	39	234	363	1.29	%	$	73,236	1.32	%
Construction - Speculative	608	194	117,711		—	—	1	1	0.16	%	—		—	%
Construction - Custom	765	268	204,914		1	1	1	3	0.39	%	774		0.38	%
Land - Acquisition & Development	138	549	75,726		2	—	2	4	2.90	%	1,498		1.98	%
Land - Consumer Lot Loans	1,250	84	105,403		6	3	17	26	2.08	%	2,852		2.71	%
Multi-Family	1,000	1,017	1,017,437		—	1	2	3	0.30	%	1,041		0.10	%
Commercial Real Estate	978	890	870,691		3	1	8	12	1.23	%	3,196		0.37	%
Commercial & Industrial	1,173	437	512,966		3	—	3	6	0.51	%	930		0.18	%
HELOC	2,151	64	137,837		8	3	8	19	0.88	%	1,792		1.30	%
Consumer	5,432	38	208,956		103	34	36	173	3.18	%	1,097		0.53	%
	41,550	212	$	8,817,761	216	82	312	610	1.47	%	$	86,416	0.98	%

March 31, 2015
Single-Family Residential	28,365	195	$	5,543,851	92	41	243	376	1.33	%	$	78,895	1.42	%
Construction - Speculative	577	183	105,568		23	—	2	25	4.33	%	2,525		2.39	%
Construction - Custom	766	263	201,777		2	2	—	4	0.52	%	1,169		0.58	%
Land - Acquisition & Development	144	654	94,179		—	—	2	2	1.39	%	868		0.92	%
Land - Consumer Lot Loans	1,271	82	104,477		6	4	20	30	2.36	%	3,621		3.47	%
Multi-Family	994	951	944,937		1	—	3	4	0.40	%	947		0.10	%
Commercial Real Estate	983	830	815,978		3	4	9	16	1.63	%	10,670		1.31	%
Commercial & Industrial	1,140	416	474,090		1	—	4	5	0.44	%	2,994		0.63	%
HELOC	2,084	65	136,439		7	3	9	19	0.91	%	1,393		1.02	%
Consumer	5,921	37	221,525		111	33	42	186	3.14	%	1,064		0.48	%
	42,245	205	$	8,642,822	246	87	334	667	1.58	%	$	104,145	1.20	%