Wafd Inc 8-K, filed Jan 15, 2021
Wafd Inc (WAFD)
8-K
2021-01-15
For: 2021-01-14
View Original
Added on
April 05, 2026
About this 8-K
Wafd Inc filed this 8-K on January 15, 2021, reporting on events of January 14, 2021.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
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 14, 2021
____________________________________
(Exact name of registrant as specified in its charter)
____________________________________
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(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):
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. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x
| Item 2.02 | Results of Operations and Financial Condition | ||||
On January 14, 2021, Washington Federal, Inc. (the "Company") announced by press release its earnings for the quarter ended December 31, 2020. A copy of the press release is attached to this filing as Exhibit 99.1. A copy of the December 31, 2020 Fact Sheet, which presents certain detailed financial information about the Company, is attached as Exhibit 99.2. A copy of the press release investor supplement is attached as Exhibit 99.3. This information is being furnished under Item 2.02 (Results of Operations and Financial Condition) of Form 8-K.
| 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 2020 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.
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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.
| January 14, 2021 | WASHINGTON FEDERAL, INC. | |||||||||||||||||||
| By: | /s/ VINCENT L. BEATTY | |||||||||||||||||||
| Vincent L. Beatty | ||||||||||||||||||||
| Executive Vice President and Chief Financial Officer | ||||||||||||||||||||
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Exhibit 99.1
Thursday, January 14, 2021
FOR IMMEDIATE RELEASE
Washington Federal Announces Quarterly Earnings Per Share Of $0.51
SEATTLE, WASHINGTON – Washington Federal, Inc. (Nasdaq: WAFD) (the "Company"), parent company of Washington Federal Bank, N.A. ("WaFd Bank"), today announced quarterly earnings of $38,951,000 or $0.51 per diluted share for the quarter ended December 31, 2020, compared to $67,866,000 or $0.86 per diluted share for the quarter ended December 31, 2019, a $0.35 or 41% decrease in fully diluted earnings per share. Return on equity for the quarter ended December 31, 2020 was 7.65% compared to 13.46% for the quarter ended December 31, 2019. Return on assets for the quarter ended December 31, 2020 was 0.83% compared to 1.66% for the same quarter in the prior year.
President and Chief Executive Officer Brent J. Beardall commented, “We are pleased to report a strong start to our new fiscal year with record loan production, solid core deposit growth, strong asset quality and expansion of our net interest margin. Considering the ongoing turbulence in the world around us, both politically and economically, having a balance sheet with $1.8 billion in cash and $2.1 billion in equity provides significant flexibility to adapt and serve our clients. It is hard to believe that the majority of our teams have been serving our clients remotely for over nine months and we want to thank both our staff and our clients for working together to find solutions – while staying safe. We are appreciative of the government stimulus being provided to help those that have been most impacted and look forward to assisting small businesses with the Paycheck Protection Program’s (“PPP”) second round of funding in the next few weeks."
Total assets were $19.1 billion as of December 31, 2020, compared to $18.8 billion at September 30, 2020, as investment securities increased $114 million and loans receivable
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increased by $89 million. Cash was also $128 million higher as a result of the large increase in customer deposits noted below.
Customer deposits totaled $14.2 billion as of December 31, 2020, an increase of $387 million or 2.8% since September 30, 2020. Transaction accounts increased by $575 million or 5.9% during that period, while time deposits decreased $188 million or 4.7%. The shift in deposit mix has been a result of a deliberate deposit pricing and customer growth strategy and the focus on transaction accounts is intended to lessen sensitivity to rising interest rates and manage interest expense. As of December 31, 2020, 73.3% of the Company’s deposits were in transaction accounts, up from 71.2% at September 30, 2020. Core deposits, defined as all transaction accounts and time deposits less than $250,000, totaled 95.9% of deposits at December 31, 2020.
Borrowings from the Federal Home Loan Bank ("FHLB") totaled $2.6 billion as of December 31, 2020, a decrease of $100 million since September 30, 2020. The decrease was due to the termination of a hedged FHLB borrowing that had an effective interest rate of 1.39%. The weighted average interest rate of FHLB borrowings was 1.82% as of December 31, 2020, versus 1.79% at September 30, 2020.
The Company had strong loan originations of $1.92 billion for the first fiscal quarter 2021, an increase of 40% from the $1.37 billion of originations in the same quarter one year ago. Largely offsetting loan originations in each of these quarters were loan repayments of $1.60 billion and $1.30 billion, respectively. Commercial loans represented 75% of all loan originations during the first fiscal quarter of 2021 and consumer loans accounted for the remaining 25%. The Company views organic loan growth funded by low-cost core deposits as the highest and best use of its capital. Commercial loans are preferable as they generally have floating interest rates and shorter durations. The weighted average interest rate on the loan portfolio was 3.64% as of December 31, 2020, a decrease from 3.71% as of September 30, 2020, due primarily to payoffs of loans at higher than market interest rates and new loans originated at market rates.
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Credit quality is being monitored closely and the economic impacts of the pandemic will become clearer over time. As of December 31, 2020, non-performing assets remained low from a historical perspective and totaled $66.5 million, or 0.35% of total assets, compared to 0.24% at September 30, 2020. The change was due to non-accrual loans increasing by $29.4 million, or 101%, since September 30, 2020. Delinquent loans increased to 0.52% of total loans at December 31, 2020, compared to 0.24% at September 30, 2020. The allowance for credit losses (including the reserve for unfunded commitments) totaled $197 million as of December 31, 2020, and was 1.33% of gross loans outstanding (1.39% when excluding PPP loans for which it was determined that no allowance was necessary due to the government guarantee), as compared to $192 million, or 1.33% of gross loans outstanding, at September 30, 2020. Net recoveries were $1.7 million for the first fiscal quarter of 2021, compared to net recoveries of $2.6 million for the prior year same quarter. The Company has recorded net recoveries in 28 of the last 30 quarters.
The Company recorded a provision for credit losses of $3.0 million in the first fiscal quarter of 2021, compared to a release of allowance for credits losses of $3.8 million in the same quarter of fiscal 2020. The provision in the current quarter is primarily due to reserving for new loan originations and changes in composition of the loan portfolio.
On November 20, 2020, the Company paid a regular cash dividend of $0.22 per share, which represented the 151st consecutive quarterly cash dividend. During the quarter, the Company repurchased 32,956 shares, related to tax withholding on employee equity awards, of common stock at a weighted average price of $21.29 per share and has authorization to repurchase 4,594,275 additional shares. The Company varies the size and pace of share repurchases depending on several factors, including share price, lending opportunities and capital levels. Since September 30, 2020, tangible common shareholders’ equity per share increased by $0.58, or 2.6%, to $23.10 and the ratio of tangible common equity to tangible assets was 9.34% as of December 31, 2020.
Net interest income was $121 million for the first fiscal quarter of 2021, an increase of $0.8 million or 0.7% from the same quarter in the prior year. Average interest-earning assets increased $2.4 billion or 15.58% from the prior year while average interest-bearing liabilities
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increased $1.8 billion or 14.20%. The average rate earned on interest-earning assets declined by 97 basis points while the average rate paid on interest-bearing liabilities declined by 67 basis points. Net interest margin of 2.75% in the first fiscal quarter of 2021 was up from 2.67% in the prior quarter and down from 3.15% for the same quarter in the prior year. The compression in the net interest margin since the prior year same quarter is primarily due to the rapid drop in short-term rates by the Federal Reserve Bank in response to the COVID-19 pandemic which resulted in the changes in average rates noted above.
Total other income was $13.9 million for the first fiscal quarter of 2021, a decrease from $46.4 million in the prior year same quarter. The decrease was primarily due to the prior year quarter including a gain of $32.6 million on sales of fixed assets, including a branch property in Bellevue, Washington.
Total other expense was $81.4 million in the first fiscal quarter of 2021, a decrease of $1.2 million, or 1.5%, from the prior year's quarter. Compensation and benefits costs increased by $6.1 million, or 16.6%, over the prior year quarter primarily due to a 4.8% rise in headcount, annual merit increases as well as higher bonus compensation that reflects increased loan production activity since the prior year. Information technology costs decreased by $5.3 million, primarily due to the prior year quarter including a $5.9 million impairment charge on systems hardware and software. The Company’s efficiency ratio in the first fiscal quarter of 2021 was 60.6%, compared to 57.1% for the same period one year ago. The increase in the efficiency ratio is primarily due to lower other income as described above.
Income tax expense totaled $10.6 million for the first fiscal quarter of 2021, as compared to $18.4 million for the prior year same quarter. The effective tax rate for the quarter ended December 31, 2020 was 21.35% and unchanged from the quarter ended December 31, 2019. The Company’s effective tax rate for the quarter ended December 31, 2020 is different from the statutory rate mainly due to state taxes, tax-exempt income and tax-credit investments.
WaFd Bank is headquartered in Seattle, Washington, and has 234 branches in eight western states. To find out more about WaFd Bank, please visit our website
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www.wafdbank.com. The Company uses its website to distribute financial and other material information about the Company.
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Important Cautionary Statements
The foregoing information should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2020 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 “estimate,” “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. In particular, any forward-looking statements are subject to risks and uncertainties related to the COVID-19 pandemic and the resulting governmental and societal responses. 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, Chief Marketing Officer
206-626-8178
brad.goode@wafd.com
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WASHINGTON FEDERAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
| December 31, 2020 | September 30, 2020 | ||||||||||
| (In thousands, except share and ratio data) | |||||||||||
| ASSETS | |||||||||||
| Cash and cash equivalents | $ | 1,830,722 | $ | 1,702,977 | |||||||
| Available-for-sale securities, at fair value | 2,482,944 | 2,249,492 | |||||||||
| Held-to-maturity securities, at amortized cost | 586,870 | 705,838 | |||||||||
| Loans receivable, net of allowance for loan losses of $170,189 and $166,955 | 12,881,010 | 12,792,317 | |||||||||
| Interest receivable | 52,671 | 53,799 | |||||||||
| Premises and equipment, net | 256,242 | 252,805 | |||||||||
| Real estate owned | 4,463 | 4,966 | |||||||||
| FHLB and FRB stock | 137,991 | 141,990 | |||||||||
| Bank owned life insurance | 229,175 | 227,749 | |||||||||
| Intangible assets, including goodwill of $302,707 and $302,707 | 309,425 | 309,906 | |||||||||
| Federal and state income tax assets, net | — | 5,708 | |||||||||
| Other assets | 292,109 | 346,508 | |||||||||
| $ | 19,063,622 | $ | 18,794,055 | ||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Liabilities | |||||||||||
| Transaction deposits | $ | 10,381,459 | $ | 9,806,432 | |||||||
| Time deposits | 3,785,082 | 3,973,192 | |||||||||
| Total customer deposits | 14,166,541 | 13,779,624 | |||||||||
| FHLB advances | 2,600,000 | 2,700,000 | |||||||||
| Advance payments by borrowers for taxes and insurance | 15,539 | 49,462 | |||||||||
| Federal and state income tax liabilities, net | 8,294 | — | |||||||||
| Accrued expenses and other liabilities | 211,481 | 250,836 | |||||||||
| 17,001,855 | 16,779,922 | ||||||||||
| Stockholders’ equity | |||||||||||
| Common stock, $1.00 par value, 300,000,000 shares authorized; 135,937,934 and 135,727,237 shares issued; 75,867,105 and 75,689,364 shares outstanding | 135,938 | 135,727 | |||||||||
| Additional paid-in capital | 1,680,111 | 1,678,843 | |||||||||
| Accumulated other comprehensive income (loss), net of taxes | 41,435 | 16,953 | |||||||||
| Treasury stock, at cost; 60,070,829 and 60,037,873 shares | (1,238,997) | (1,238,296) | |||||||||
| Retained earnings | 1,443,280 | 1,420,906 | |||||||||
| 2,061,767 | 2,014,133 | ||||||||||
| $ | 19,063,622 | $ | 18,794,055 | ||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||||||||
| Common stockholders' equity per share | $ | 27.18 | $ | 26.61 | |||||||
| Tangible common stockholders' equity per share | 23.10 | 22.52 | |||||||||
| Stockholders' equity to total assets | 10.82 | % | 10.72 | % | |||||||
| Tangible common stockholders' equity (TCE) to tangible assets (TA) | 9.34 | % | 9.22 | % | |||||||
| TCE + allowance for credit losses to TA | 10.39 | % | 10.26 | % | |||||||
| Weighted average rates at period end | |||||||||||
| Loans and mortgage-backed securities | 3.48 | % | 3.55 | % | |||||||
| Combined loans, mortgage-backed securities and investments | 2.92 | 3.03 | |||||||||
| Customer accounts | 0.36 | 0.48 | |||||||||
| Borrowings | 1.82 | 1.79 | |||||||||
| Combined cost of customer accounts and borrowings | 0.58 | 0.69 | |||||||||
| Net interest spread | 2.34 | 2.34 | |||||||||
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WASHINGTON FEDERAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
| Three Months Ended December 31, | |||||||||||||||||||||||
| 2020 | 2019 | ||||||||||||||||||||||
| (In thousands, except share and ratio data) | |||||||||||||||||||||||
| INTEREST INCOME | |||||||||||||||||||||||
| Loans receivable | $ | 133,671 | $ | 142,146 | |||||||||||||||||||
| Mortgage-backed securities | 7,230 | 15,612 | |||||||||||||||||||||
| Investment securities and cash equivalents | 6,921 | 7,066 | |||||||||||||||||||||
| 147,822 | 164,824 | ||||||||||||||||||||||
| INTEREST EXPENSE | |||||||||||||||||||||||
| Customer accounts | 14,110 | 31,481 | |||||||||||||||||||||
| FHLB advances and other borrowings | 13,198 | 13,658 | |||||||||||||||||||||
| 27,308 | 45,139 | ||||||||||||||||||||||
| Net interest income | 120,514 | 119,685 | |||||||||||||||||||||
| Provision (release) for credit losses | 3,000 | (3,750) | |||||||||||||||||||||
| Net interest income after provision (release) | 117,514 | 123,435 | |||||||||||||||||||||
| OTHER INCOME | |||||||||||||||||||||||
| Loan fee income | 2,392 | 1,804 | |||||||||||||||||||||
| Deposit fee income | 6,026 | 6,260 | |||||||||||||||||||||
| Other Income | 5,452 | 38,312 | |||||||||||||||||||||
| 13,870 | 46,376 | ||||||||||||||||||||||
| OTHER EXPENSE | |||||||||||||||||||||||
| Compensation and benefits | 42,723 | 36,631 | |||||||||||||||||||||
| Occupancy | 9,592 | 10,135 | |||||||||||||||||||||
| FDIC insurance premiums | 3,263 | 2,470 | |||||||||||||||||||||
| Product delivery | 4,937 | 4,267 | |||||||||||||||||||||
| Information technology | 11,831 | 17,107 | |||||||||||||||||||||
| Other | 9,064 | 12,026 | |||||||||||||||||||||
| 81,410 | 82,636 | ||||||||||||||||||||||
| Gain (loss) on real estate owned, net | (449) | (886) | |||||||||||||||||||||
| Income before income taxes | 49,525 | 86,289 | |||||||||||||||||||||
| Income tax provision | 10,574 | 18,423 | |||||||||||||||||||||
| NET INCOME | $ | 38,951 | $ | 67,866 | |||||||||||||||||||
| PER SHARE DATA | |||||||||||||||||||||||
| Basic earnings per share | $ | 0.51 | $ | 0.86 | |||||||||||||||||||
| Diluted earnings per share | 0.51 | 0.86 | |||||||||||||||||||||
| Cash dividends per share | 0.22 | 0.21 | |||||||||||||||||||||
| Basic weighted average shares outstanding | 75,792,995 | 78,480,264 | |||||||||||||||||||||
| Diluted weighted average shares outstanding | 75,798,460 | 78,535,299 | |||||||||||||||||||||
| PERFORMANCE RATIOS | |||||||||||||||||||||||
| Return on average assets | 0.83 | % | 1.66 | % | |||||||||||||||||||
| Return on average common equity | 7.65 | 13.46 | |||||||||||||||||||||
| Net interest margin | 2.75 | 3.15 | |||||||||||||||||||||
| Efficiency ratio | 60.58 | 57.05 | |||||||||||||||||||||
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Washington Federal, Inc.
Fact Sheet
December 31, 2020
($ in Thousands)
| Exhibit 99.2 | |||||||||||||||||||||||||||||||||||
| As of 06/20 | As of 09/20 | As of 12/20 | |||||||||||||||||||||||||||||||||
| Allowance for Credit Losses (ACL) - Total | $ | 184,849 | $ | 191,955 | $ | 196,689 | |||||||||||||||||||||||||||||
| ACL - Loans | 165,349 | 166,955 | 170,189 | ||||||||||||||||||||||||||||||||
| ACL Unfunded Commitments | 19,500 | 25,000 | 26,500 | ||||||||||||||||||||||||||||||||
| Total ACL as a % of Gross Loans | 1.29 | % | 1.33 | % | 1.33 | % | |||||||||||||||||||||||||||||
| 06/20 QTR | 06/20 YTD | 09/20 QTR | 09/20 YTD | 12/20 QTR | 12/20 YTD | ||||||||||||||||||||||||||||||
| Loan Originations - Total | $ | 2,117,035 | $ | 4,725,014 | $ | 1,495,586 | $ | 6,220,600 | $ | 1,915,025 | $ | 1,915,025 | |||||||||||||||||||||||
| Multi-Family | 118,060 | 332,078 | 71,040 | 403,118 | 122,061 | 122,061 | |||||||||||||||||||||||||||||
| Commercial Real Estate | 55,845 | 235,778 | 230,544 | 466,322 | 154,975 | 154,975 | |||||||||||||||||||||||||||||
| Commercial & Industrial | 1,143,166 | 1,904,750 | 264,158 | 2,168,908 | 489,939 | 489,939 | |||||||||||||||||||||||||||||
| Construction | 294,063 | 1,065,255 | 392,347 | 1,457,602 | 647,439 | 647,439 | |||||||||||||||||||||||||||||
| Land - Acquisition & Development | 14,695 | 68,183 | 20,196 | 88,379 | 22,830 | 22,830 | |||||||||||||||||||||||||||||
| Single-Family Residential | 308,571 | 624,791 | 285,780 | 910,571 | 255,999 | 255,999 | |||||||||||||||||||||||||||||
| Construction - Custom | 149,265 | 390,564 | 185,778 | 576,342 | 123,469 | 123,469 | |||||||||||||||||||||||||||||
| Land - Consumer Lot Loans | 12,768 | 34,554 | 17,124 | 51,678 | 20,532 | 20,532 | |||||||||||||||||||||||||||||
| HELOC | 20,190 | 67,165 | 26,120 | 93,285 | 29,431 | 29,431 | |||||||||||||||||||||||||||||
| Consumer | 412 | 1,896 | 2,499 | 4,395 | 48,350 | 48,350 | |||||||||||||||||||||||||||||
| Purchased Loans (including acquisitions) | $ | 15,456 | $ | 15,456 | $ | — | $ | 15,456 | $ | — | $ | — | |||||||||||||||||||||||
| Net Loan Fee and Discount Accretion | $ | 7,204 | $ | 17,047 | $ | 8,013 | $ | 25,060 | $ | 10,386 | $ | 10,386 | |||||||||||||||||||||||
| Repayments | |||||||||||||||||||||||||||||||||||
| Loans | $ | 1,248,747 | $ | 3,753,348 | $ | 1,343,274 | $ | 5,096,622 | $ | 1,600,257 | $ | 1,600,257 | |||||||||||||||||||||||
| MBS | 179,121 | 442,482 | 237,234 | 679,716 | 245,042 | 245,042 | |||||||||||||||||||||||||||||
| MBS Premium Amortization | $ | 3,250 | $ | 8,077 | $ | 3,890 | $ | 11,967 | $ | 3,497 | $ | 3,497 | |||||||||||||||||||||||
| Efficiency | |||||||||||||||||||||||||||||||||||
| Operating Expenses/Average Assets | 1.68 | % | 1.87 | % | 1.69 | % | 1.82 | % | 1.73 | % | 1.73 | % | |||||||||||||||||||||||
| Efficiency Ratio (%) | 57.65 | % | 58.02 | % | 62.09 | % | 58.99 | % | 60.58 | % | 60.58 | % | |||||||||||||||||||||||
| Amortization of Intangibles | $ | 552 | $ | 1,599 | $ | 552 | $ | 2,151 | $ | 481 | $ | 481 | |||||||||||||||||||||||
| EOP Numbers | |||||||||||||||||||||||||||||||||||
| Shares Issued and Outstanding | 75,706,026 | 75,689,364 | 75,867,105 | ||||||||||||||||||||||||||||||||
| Share repurchase information | |||||||||||||||||||||||||||||||||||
| Remaining shares authorized for repurchase | 4,627,393 | 4,627,231 | 4,594,275 | ||||||||||||||||||||||||||||||||
| Shares repurchased | 1,594 | 3,339,368 | 162 | 3,339,530 | 32,956 | 32,956 | |||||||||||||||||||||||||||||
| Average share repurchase price | $ | 24.90 | $ | 33.58 | $ | 23.34 | $ | 33.58 | $ | 21.29 | $ | 21.29 | |||||||||||||||||||||||
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Washington Federal, Inc.
Fact Sheet
December 31, 2020
($ in Thousands)
| Tangible Common Book Value | As of 06/20 | As of 09/20 | As of 12/20 | |||||||||||||||||||||||||||||||||||
| $ Amount | $ | 1,680,051 | $ | 1,704,227 | $ | 1,752,342 | ||||||||||||||||||||||||||||||||
| Per Share | 22.19 | 22.52 | 23.10 | |||||||||||||||||||||||||||||||||||
| # of Employees | 2,062 | 2,080 | 2,098 | |||||||||||||||||||||||||||||||||||
| Investments | ||||||||||||||||||||||||||||||||||||||
| Available-for-sale: | ||||||||||||||||||||||||||||||||||||||
| Agency MBS | $ | 1,034,014 | $ | 968,252 | $ | 868,211 | ||||||||||||||||||||||||||||||||
| Other | 1,029,946 | 1,281,240 | 1,614,733 | |||||||||||||||||||||||||||||||||||
| $ | 2,063,960 | $ | 2,249,492 | $ | 2,482,944 | |||||||||||||||||||||||||||||||||
| Held-to-maturity: | ||||||||||||||||||||||||||||||||||||||
| Agency MBS | $ | 827,316 | $ | 705,838 | $ | 586,870 | ||||||||||||||||||||||||||||||||
| $ | 827,316 | $ | 705,838 | $ | 586,870 | |||||||||||||||||||||||||||||||||
| As of 06/20 | As of 09/20 | As of 12/20 | ||||||||||||||||||||||||||||||||||||
| Loans Receivable by Category | AMOUNT | % | AMOUNT | % | AMOUNT | % | ||||||||||||||||||||||||||||||||
| Multi-Family | $ | 1,510,099 | 10.6% | $ | 1,538,762 | 10.6% | $ | 1,610,796 | 10.9% | |||||||||||||||||||||||||||||
| Commercial Real Estate | 1,707,893 | 11.9 | 1,895,086 | 13.1 | 1,954,154 | 13.2 | ||||||||||||||||||||||||||||||||
| Commercial & Industrial | 2,158,000 | 15.1 | 2,132,160 | 14.7 | 2,256,627 | 15.3 | ||||||||||||||||||||||||||||||||
| Construction | 2,328,987 | 16.3 | 2,403,276 | 16.6 | 2,687,708 | 18.2 | ||||||||||||||||||||||||||||||||
| Land - Acquisition & Development | 195,212 | 1.4 | 193,745 | 1.3 | 193,239 | 1.3 | ||||||||||||||||||||||||||||||||
| Single-Family Residential | 5,461,605 | 38.2 | 5,304,689 | 36.7 | 5,063,053 | 34.2 | ||||||||||||||||||||||||||||||||
| Construction - Custom | 607,329 | 4.2 | 674,879 | 4.7 | 659,364 | 4.5 | ||||||||||||||||||||||||||||||||
| Land - Consumer Lot Loans | 100,102 | 0.7 | 102,263 | 0.7 | 110,841 | 0.7 | ||||||||||||||||||||||||||||||||
| HELOC | 140,636 | 1.0 | 139,703 | 1.0 | 139,752 | 0.9 | ||||||||||||||||||||||||||||||||
| Consumer | 91,495 | 0.6 | 83,159 | 0.6 | 111,292 | 0.8 | ||||||||||||||||||||||||||||||||
| 14,301,358 | 100% | 14,467,722 | 100% | 14,786,826 | 100% | |||||||||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||||||||
| Allowance for Credit Losses (ACL) | 165,349 | 166,955 | 170,189 | |||||||||||||||||||||||||||||||||||
| Loans in Process | 1,353,774 | 1,456,072 | 1,679,972 | |||||||||||||||||||||||||||||||||||
| Net Deferred Fees, Costs and Discounts | 48,809 | 52,378 | 55,655 | |||||||||||||||||||||||||||||||||||
| Sub-Total | 1,567,932 | 1,675,405 | 1,905,816 | |||||||||||||||||||||||||||||||||||
| $ | 12,733,426 | $ | 12,792,317 | $ | 12,881,010 | |||||||||||||||||||||||||||||||||
| Net Loan Portfolio by Category | AMOUNT | % | AMOUNT | % | AMOUNT | % | ||||||||||||||||||||||||||||||||
| Multi-Family | $ | 1,497,749 | 11.7% | $ | 1,524,387 | 11.9% | $ | 1,595,437 | 12.4% | |||||||||||||||||||||||||||||
| Commercial Real Estate | 1,684,761 | 13.2 | 1,862,173 | 14.6 | 1,919,359 | 14.9 | ||||||||||||||||||||||||||||||||
| Commercial & Industrial | 2,095,768 | 16.5 | 2,076,848 | 16.2 | 2,199,148 | 17.1 | ||||||||||||||||||||||||||||||||
| Construction | 1,309,255 | 10.3 | 1,328,258 | 10.4 | 1,366,742 | 10.6 | ||||||||||||||||||||||||||||||||
| Land - Acquisition & Development | 141,592 | 1.1 | 142,838 | 1.1 | 141,955 | 1.1 | ||||||||||||||||||||||||||||||||
| Singe-Family Residential | 5,405,783 | 42.4 | 5,248,774 | 41.0 | 5,009,821 | 38.9 | ||||||||||||||||||||||||||||||||
| Construction - Custom | 274,846 | 2.2 | 292,398 | 2.3 | 295,757 | 2.3 | ||||||||||||||||||||||||||||||||
| Land - Consumer Lot Loans | 96,584 | 0.8 | 98,665 | 0.8 | 106,886 | 0.8 | ||||||||||||||||||||||||||||||||
| HELOC | 138,578 | 1.1 | 137,652 | 1.1 | 137,911 | 1.1 | ||||||||||||||||||||||||||||||||
| Consumer | 88,510 | 0.7 | 80,324 | 0.6 | 107,994 | 0.8 | ||||||||||||||||||||||||||||||||
| $ | 12,733,426 | 100% | $ | 12,792,317 | 100% | $ | 12,881,010 | 100% | ||||||||||||||||||||||||||||||
2
Washington Federal, Inc.
Fact Sheet
December 31, 2020
($ in Thousands)
| As of 06/20 | As of 09/20 | As of 12/20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits by State | AMOUNT | % | # | AMOUNT | % | # | AMOUNT | % | # | |||||||||||||||||||||||||||||||||||||||||||||||
| Washington | $ | 5,789,748 | 44.2 | % | 80 | $ | 5,914,476 | 42.9 | % | 80 | $ | 6,093,356 | 43.0 | % | 80 | |||||||||||||||||||||||||||||||||||||||||
| Idaho | 918,614 | 7.0 | 24 | 949,920 | 6.9 | 24 | 989,649 | 7.0 | 24 | |||||||||||||||||||||||||||||||||||||||||||||||
| Oregon | 2,591,126 | 19.8 | 46 | 2,627,720 | 19.1 | 46 | 2,738,182 | 19.4 | 46 | |||||||||||||||||||||||||||||||||||||||||||||||
| Utah | 576,795 | 4.4 | 10 | 988,498 | 7.2 | 10 | 939,518 | 6.6 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||
| Nevada | 440,065 | 3.4 | 11 | 442,772 | 3.2 | 11 | 460,591 | 3.3 | 11 | |||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 220,979 | 1.7 | 6 | 225,819 | 1.6 | 6 | 275,794 | 1.9 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||
| Arizona | 1,429,184 | 10.9 | 31 | 1,481,603 | 10.8 | 31 | 1,519,630 | 10.7 | 31 | |||||||||||||||||||||||||||||||||||||||||||||||
| New Mexico | 1,143,083 | 8.7 | 26 | 1,148,816 | 8.3 | 26 | 1,149,821 | 8.1 | 26 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 13,109,594 | 100% | 234 | $ | 13,779,624 | 100% | 234 | $ | 14,166,541 | 100% | 234 | ||||||||||||||||||||||||||||||||||||||||||||
| Deposits by Type | AMOUNT | % | AMOUNT | % | AMOUNT | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-Interest Checking | $ | 2,235,689 | 17.1 | % | $ | 2,164,071 | 15.7 | % | $ | 2,336,294 | 16.5 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Interest Checking | 2,410,041 | 18.4 | 3,029,576 | 22.0 | 3,175,494 | 22.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Savings | 832,383 | 6.3 | 872,087 | 6.3 | 914,655 | 6.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Money Market | 3,422,335 | 26.1 | 3,740,698 | 27.1 | 3,955,016 | 27.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Time Deposits | 4,209,146 | 32.1 | 3,973,192 | 28.9 | 3,785,082 | 26.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 13,109,594 | 100% | $ | 13,779,624 | 100% | $ | 14,166,541 | 100% | |||||||||||||||||||||||||||||||||||||||||||||||
| Deposits greater than $250,000 - EOP | $ | 4,781,447 | $ | 5,491,395 | $ | 5,826,828 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Time Deposit Repricing | Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Within 3 months | $ | 925,920 | 1.78 | % | $ | 1,178,602 | 1.27 | % | $ | 1,264,612 | 1.14 | % | ||||||||||||||||||||||||||||||||||||||||||||
| From 4 to 6 months | 1,192,090 | 1.29 | % | 1,282,051 | 1.14 | % | 926,880 | 0.50 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| From 7 to 9 months | 919,329 | 1.47 | % | 371,896 | 0.78 | % | 440,169 | 0.51 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| From 10 to 12 months | 262,359 | 0.95 | % | 235,286 | 0.70 | % | 342,092 | 0.54 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Non-Performing Assets | AMOUNT | % | AMOUNT | % | AMOUNT | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-accrual loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Multi-Family | $ | 224 | 0.6% | $ | — | —% | $ | — | —% | |||||||||||||||||||||||||||||||||||||||||||||||
| Commercial Real Estate | 3,416 | 9.7 | 3,771 | 13.0 | 31,397 | 53.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial & Industrial | 1,847 | 5.3 | 329 | 1.1 | 594 | 1.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Construction | 3,353 | 9.6 | 1,669 | 5.8 | 1,237 | 2.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Land - Acquisition & Development | 78 | 0.2 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Single-Family Residential | 24,876 | 71.1 | 22,431 | 77.2 | 24,349 | 41.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Construction - Custom | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Land - Consumer Lot Loans | 277 | 0.8 | 243 | 0.8 | 443 | 0.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| HELOC | 866 | 2.5 | 553 | 1.9 | 334 | 0.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer | 64 | 0.2 | 60 | 0.2 | 52 | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total non-accrual loans | 35,001 | 100% | 29,056 | 100% | 58,406 | 100% | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Real Estate Owned | 5,956 | 4,966 | 4,463 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Property Owned | 3,673 | 3,673 | 3,673 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total non-performing assets | $ | 44,630 | $ | 37,695 | $ | 66,542 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-accrual loans as % of total net loans | 0.27 | % | 0.23 | % | 0.45 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-performing assets as % of total assets | 0.25 | % | 0.20 | % | 0.35 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
3
Washington Federal, Inc.
Fact Sheet
December 31, 2020
($ in Thousands)
| As of 06/20 | As of 09/20 | As of 12/20 | |||||||||||||||||||||||||||||||||||||||
| AMOUNT | % | AMOUNT | % | AMOUNT | % | ||||||||||||||||||||||||||||||||||||
| Troubled debt restructure ("TDR") loans: | |||||||||||||||||||||||||||||||||||||||||
| Multi-Family | $ | 310 | 0.3% | $ | 304 | 0.3% | $ | 288 | 0.3% | ||||||||||||||||||||||||||||||||
| Commercial Real Estate | 1,849 | 1.9 | 1,462 | 1.6 | 2,476 | 2.9 | |||||||||||||||||||||||||||||||||||
| Commercial & Industrial | 433 | 0.4 | 51 | 0.1 | 48 | 0.1 | |||||||||||||||||||||||||||||||||||
| Construction | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Land - Acquisition & Development | 78 | 0.1 | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Single-Family Residential | 91,290 | 93.1 | 85,607 | 93.6 | 80,155 | 92.9 | |||||||||||||||||||||||||||||||||||
| Construction - Custom | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Land - Consumer Lot Loans | 3,206 | 3.3 | 3,106 | 3.4 | 2,714 | 3.1 | |||||||||||||||||||||||||||||||||||
| HELOC | 835 | 0.9 | 826 | 0.9 | 584 | 0.8 | |||||||||||||||||||||||||||||||||||
| Consumer | 55 | 0.1 | 52 | 0.1 | 49 | 0.1 | |||||||||||||||||||||||||||||||||||
| Total TDR loans | $ | 98,056 | 100% | $ | 91,408 | 100% | $ | 86,314 | 100% | ||||||||||||||||||||||||||||||||
| TDRs were as follows: | |||||||||||||||||||||||||||||||||||||||||
| Performing | $ | 95,093 | 97.0% | $ | 89,072 | 97.4% | $ | 84,482 | 97.9% | ||||||||||||||||||||||||||||||||
| Non-performing (a) | 2,963 | 3.0 | 2,336 | 2.6 | 1,832 | 2.1 | |||||||||||||||||||||||||||||||||||
| Total TDR loans | $ | 98,056 | 100% | $ | 91,408 | 100% | $ | 86,314 | 100% | ||||||||||||||||||||||||||||||||
| (a) Included in "Total non-accrual loans" above. | |||||||||||||||||||||||||||||||||||||||||
| AMOUNT | CO % (b) | AMOUNT | CO % (b) | AMOUNT | CO % (b) | ||||||||||||||||||||||||||||||||||||
| Net Charge-offs (Recoveries) by Category | |||||||||||||||||||||||||||||||||||||||||
| Multi-Family | $ | — | —% | $ | — | —% | $ | — | —% | ||||||||||||||||||||||||||||||||
| Commercial Real Estate | (193) | (0.05) | (866) | (0.18) | (789) | (0.16) | |||||||||||||||||||||||||||||||||||
| Commercial & Industrial | 2,860 | 0.53 | 915 | 0.17 | (48) | (0.01) | |||||||||||||||||||||||||||||||||||
| Construction | — | — | (129) | (0.02) | — | — | |||||||||||||||||||||||||||||||||||
| Land - Acquisition & Development | (433) | (0.89) | (51) | (0.11) | (35) | (0.07) | |||||||||||||||||||||||||||||||||||
| Single-Family Residential | (377) | (0.03) | (447) | (0.03) | (779) | (0.06) | |||||||||||||||||||||||||||||||||||
| Construction - Custom | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Land - Consumer Lot Loans | (17) | (0.07) | (46) | (0.18) | (7) | (0.03) | |||||||||||||||||||||||||||||||||||
| HELOC | (1) | — | (1) | — | — | — | |||||||||||||||||||||||||||||||||||
| Consumer | (137) | (0.60) | 19 | 0.09 | (76) | (0.27) | |||||||||||||||||||||||||||||||||||
| Total net charge-offs (recoveries) | $ | 1,702 | 0.05% | $ | (606) | (0.02)% | $ | (1,734) | (0.05)% | ||||||||||||||||||||||||||||||||
| (b) Annualized Net Charge-offs (recoveries) divided by Gross Balance | |||||||||||||||||||||||||||||||||||||||||
| FHLB Advances (Effective Maturity) | Amount | Rate | Amount | Rate | Amount | Rate | |||||||||||||||||||||||||||||||||||
| Within 1 year | $ | 300,000 | 1.59 | % | $ | 630,000 | 2.69 | % | $ | 530,000 | 3.62 | % | |||||||||||||||||||||||||||||
| 1 to 3 years | 950,000 | 2.72 | % | 520,000 | 2.21 | % | 520,000 | 1.98 | % | ||||||||||||||||||||||||||||||||
| 3 to 5 years | 450,000 | 2.29 | % | 450,000 | 2.29 | % | 450,000 | 2.15 | % | ||||||||||||||||||||||||||||||||
| More than 5 years | 1,100,000 | 0.08 | % | 1,100,000 | 0.87 | % | 1,100,000 | 0.73 | % | ||||||||||||||||||||||||||||||||
| Total | $ | 2,800,000 | $ | 2,700,000 | $ | 2,600,000 | |||||||||||||||||||||||||||||||||||
| Interest Rate Risk | |||||||||||||||||||||||||||||||||||||||||
| NPV post 200 bps shock (c) | 14.8 | % | 15.6 | % | 16.2 | % | |||||||||||||||||||||||||||||||||||
| Change in NII after 200 bps shock (c) | 3.0 | % | 3.4 | % | 6.4 | % | |||||||||||||||||||||||||||||||||||
| (c) Assumes no balance sheet management actions taken. | |||||||||||||||||||||||||||||||||||||||||
4
Washington Federal, Inc.
Fact Sheet
December 31, 2020
($ in Thousands)
| Historical CPR Rates (d) | |||||||||||
| WAFD | WAFD | ||||||||||
| Average for Quarter Ended: | SFR Mortgages | GSE MBS | |||||||||
| 12/31/2018 | 10.4 | % | 10.3 | % | |||||||
| 3/31/2019 | 9.3 | % | 9.4 | % | |||||||
| 6/30/2019 | 13.8 | % | 11.4 | % | |||||||
| 9/30/2019 | 18.2 | % | 16.9 | % | |||||||
| 12/31/2019 | 22.0 | % | 21.7 | % | |||||||
| 3/31/2020 | 19.8 | % | 19.7 | % | |||||||
| 6/30/2020 | 28.1 | % | 30.3 | % | |||||||
| 9/30/2020 | 31.2 | % | 42.8 | % | |||||||
| 12/31/2020 | 35.9 | % | 47.2 | % | |||||||
| (d) 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, 2020
Average Balance Sheet
($ in Thousands)
| Quarter Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2020 | September 30, 2020 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Average | Average | Average | Average | Average | Average | ||||||||||||||||||||||||||||||||||||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans receivable | $ | 12,470,824 | $ | 132,847 | 4.27 | % | $ | 12,777,706 | $ | 132,165 | 4.10 | % | $ | 12,824,870 | $ | 133,671 | 4.14 | % | |||||||||||||||||||||||||||||||||||
| Mortgage-backed securities | 1,931,826 | 10,843 | 2.25 | 1,756,588 | 8,516 | 1.92 | 1,582,286 | 7,230 | 1.81 | ||||||||||||||||||||||||||||||||||||||||||||
| Cash & investments | 2,093,966 | 4,697 | 0.90 | 2,526,684 | 4,710 | 0.74 | 3,004,224 | 5,265 | 0.70 | ||||||||||||||||||||||||||||||||||||||||||||
| FHLB & FRB Stock | 152,122 | 1,322 | 3.49 | 142,207 | 1,723 | 4.81 | 140,730 | 1,656 | 4.67 | ||||||||||||||||||||||||||||||||||||||||||||
| Total interest-earning assets | 16,648,738 | 149,709 | 3.61 | % | 17,203,185 | 147,114 | 3.39 | % | 17,552,110 | 147,822 | 3.34 | % | |||||||||||||||||||||||||||||||||||||||||
| Other assets | 1,294,675 | 1,327,413 | 1,307,937 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 17,943,413 | $ | 18,530,598 | $ | 18,860,047 | |||||||||||||||||||||||||||||||||||||||||||||||
| Liabilities and Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Customer accounts | $ | 10,692,697 | 21,393 | 0.80 | % | $ | 11,335,819 | 18,800 | 0.66 | % | $ | 11,619,857 | 14,110 | 0.48 | % | ||||||||||||||||||||||||||||||||||||||
| FHLB advances | 2,953,297 | 10,938 | 1.49 | 2,705,435 | 13,482 | 1.98 | 2,668,478 | 13,198 | 1.96 | ||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 13,645,994 | 32,331 | 0.95 | % | 14,041,254 | 32,282 | 0.91 | % | 14,288,335 | 27,308 | 0.76 | % | |||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 262,108 | 295,544 | 275,834 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | 15,953,407 | 16,519,571 | 16,822,854 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders’ equity | 1,990,006 | 2,011,027 | 2,037,193 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 17,943,413 | $ | 18,530,598 | $ | 18,860,047 | |||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 117,378 | $ | 114,832 | $ | 120,514 | |||||||||||||||||||||||||||||||||||||||||||||||
| Net interest margin (1) | 2.82 | % | 2.67 | % | 2.75 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| (1) Annualized net interest income divided by average interest-earning assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||
6
Washington Federal, Inc.
Fact Sheet
December 31, 2020
Delinquency Summary
($ in Thousands)
| TYPE OF LOANS | # OF LOANS | % based | % based | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| #LOANS | AVG Size | LOANS AMORTIZED COST | 30 | 60 | 90 | Total | on # | $ Delinquent | on $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Multi-Family | 1,115 | 1,444 | $ | 1,609,800 | 1 | — | — | 1 | 0.09 | % | $ | 475 | 0.03 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial Real Estate | 1,089 | 1,784 | 1,942,854 | 1 | 2 | 4 | 7 | 0.64 | 28,600 | 1.47 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial & Industrial (1) | 7,769 | 289 | 2,243,465 | 10 | 1 | 3 | 14 | 0.18 | 1,043 | 0.05 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Construction | 541 | 2,575 | 1,393,107 | 1 | — | 1 | 2 | 0.37 | 3,703 | 0.27 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Land - Acquisition & Development | 121 | 1,261 | 152,621 | 2 | — | — | 2 | 1.65 | 252 | 0.17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Single-Family Residential | 20,896 | 242 | 5,048,435 | 41 | 7 | 122 | 170 | 0.81 | 31,905 | 0.63 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Construction - Custom | 1,136 | 264 | 299,351 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Land - Consumer Lot Loans | 1,181 | 93 | 109,845 | 3 | — | 4 | 7 | 0.59 | 597 | 0.54 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| HELOC | 3,142 | 45 | 140,272 | 8 | 3 | 13 | 24 | 0.76 | 1,339 | 0.95 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer | 2,733 | 41 | 111,449 | 9 | 12 | 23 | 44 | 1.61 | 248 | 0.22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 39,723 | 329 | $ | 13,051,199 | 76 | 25 | 170 | 271 | 0.68 | % | $ | 68,162 | 0.52 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Multi-Family | 1,103 | 1,395 | $ | 1,538,240 | — | — | — | — | — | % | $ | — | — | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial Real Estate | 1,103 | 1,709 | 1,884,688 | — | 1 | 2 | 3 | 0.27 | 478 | 0.03 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial & Industrial | 8,629 | 245 | 2,115,513 | — | 2 | 4 | 6 | 0.07 | 863 | 0.04 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Construction | 549 | 2,463 | 1,352,414 | — | — | 2 | 2 | 0.36 | 1,662 | 0.12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Land - Acquisition & Development | 122 | 1,259 | 153,571 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Single-Family Residential | 21,918 | 242 | 5,293,962 | 30 | 13 | 99 | 142 | 0.65 | 26,354 | 0.50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Construction - Custom | 1,161 | 255 | 295,953 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Land - Consumer Lot Loans | 1,123 | 90 | 101,394 | 1 | — | 3 | 4 | 0.36 | 365 | 0.36 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| HELOC | 3,090 | 45 | 140,222 | 10 | 4 | 9 | 23 | 0.74 | 731 | 0.52 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer | 2,825 | 29 | 83,315 | 22 | 5 | 21 | 48 | 1.70 | 356 | 0.43 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 41,623 | 311 | $ | 12,959,272 | 63 | 25 | 140 | 228 | 0.55 | % | $ | 30,809 | 0.24 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Multi-Family | 1,091 | 1,384 | $ | 1,509,837 | — | — | 1 | 1 | 0.09 | % | $ | 224 | 0.01 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial Real Estate | 1,101 | 1,545 | 1,700,568 | 1 | 1 | 6 | 8 | 0.73 | 3,266 | 0.19 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial & Industrial | 8,524 | 251 | 2,138,462 | — | 7 | 11 | 18 | 0.21 | 3,736 | 0.17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Construction | 556 | 2,401 | 1,334,948 | — | — | 2 | 2 | 0.36 | 3,353 | 0.25 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Land - Acquisition & Development | 118 | 1,290 | 152,234 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Single-Family Residential | 22,746 | 240 | 5,452,424 | 27 | 25 | 93 | 145 | 0.64 | 29,122 | 0.53 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Construction - Custom | 1,069 | 260 | 278,182 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Land - Consumer Lot Loans | 1,117 | 89 | 99,255 | 3 | 2 | 5 | 10 | 0.90 | 482 | 0.49 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| HELOC | 3,042 | 46 | 141,165 | 4 | 1 | 12 | 17 | 0.56 | 720 | 0.51 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer | 2,952 | 31 | 91,700 | 23 | 25 | 13 | 61 | 2.07 | 702 | 0.77 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 42,316 | 305 | $ | 12,898,775 | 58 | 61 | 143 | 262 | 0.62 | % | $ | 41,605 | 0.32 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
(1) Includes 5,690 SBA PPP loans with a balance of $634,850, all of which are current.
7
January 2021 Earnings Release Supplemental Information 1
Portfolios at Risk: $ Loans % of Total Loans Outstanding Original LTV * (CRE Only) ** $ Loans Currently Deferred % Deferred Loans to Total Outstanding Accommodation and Food Service $334 million 2.6% 59.6% _ 0.0% Retail Trade $57 million 0.4% 70.8% _ 0.0% Arts, Entertainment & Recreation $108 million 0.8% 50.0% $16 million 0.1% Health Care $267 million 2.0% 36.0% _ 0.0% At Risk Portfolio Total: $766 million 5.8% 50.5% $16 million 0.1% Conducting ongoing reviews of portfolio and monitoring for potential credit impacts from COVID-19. 2 * Represents the average LTV at origination. Individual Loans may vary significantly. Does not represent current LTV due to changing loan amounts and credit profile. ** CRE loans in at risk portfolio total $369 million
Other Portfolios: $ Loans Outstanding % of Total Loans Outstanding Original LTV * $ Loans Currently Deferred % Deferred Loans to Total Outstanding Oil & Gas $325 million 2.5% N/A _ 0.0% Office Owner Occupied $190 million 1.5% 64.4% $8 million 0.1% Office Non-Owner Occupied $809 million 6.2% 61.3% $1 million 0.0% 3 * Represents the average LTV at origination. Individual Loans may vary significantly. Does not represent current LTV due to changing loan amounts and credit profile.
4 Loans Receivable By Risk Rating ($ Amortized Cost) As of December 31, 2020
Line of Credit Utilization 5
Commercial Construction Loans by NAICS Code As of December 31, 2020 6
Ready to Help Small Businesses and Individuals: Paycheck Protection Program (PPP) 6,500 Approved loans Over $780 million Processing Payment Deferral Requests Consumer mortgage deferrals typically granted for 3 months but can be for up to 6 months Commercial deferral requests granted for up to 6 months 7 $171 million Consumer Mortgage Deferrals % of Total Commercial Deferrals % of Total June 2020 $346 million 5.7% $416 million 6.1% September 2020 $171 million 2.9% $167 million 2.4% December 2020 $46 million 0.8% $32 million 0.4%
1) Bank is very well capitalized with TCE + ACL to TCA ratio at 10.2%, which would rank us as the 32nd best capitalized publicly traded bank in the United States 2) Current cash dividend is at $0.22 per quarter which is a 43% payout ratio of the current quarter’s earnings of $0.51. The Company has paid out a cash dividend for 151 consecutive quarters and believes the current dividend is reasonable based on expected earnings going forward but the Board will act in the long-term interest of shareholders if earnings diminish substantially as a result of COVID-19 credit costs. 3) The Company's ongoing share repurchase program remains in place; however, management believes that it is prudent to pause repurchases for the time being as it continues to evaluate the extent of the COVID-19 related economic impact. Capital Management 8
Total ACL as a % of Gross Loans 1.24% 1.31% 1.29% 1.33% 1.33% Allowance for Credit Losses Rollforward 9
Allowance for Credit Losses Peer Comparison (excluding unfunded commitments) 10 As of September 30, 2020 ACL as % of Loans Columbia Bank 1.62% Western Alliance Bank 1.19% Umpqua Bank 1.54% Banner Bank 1.65% HomeStreet Bank 1.24% Cullen/Frost Bankers 1.45% First Interstate BancSystem 1.43% Washington Trust Bank 2.06% Glacier Bank 1.42% Heritage Bank 1.57% Peer Average 1.52% WaFd Bank 1.29% WaFd Bank (excluding PPP loans with zero ACL) 1.37% WaFd Bank (Commercial Loans) 1.56% WaFd Bank (Commercial Loans excluding PPP loans) 1.74% WaFd Bank (Consumer Loans) 0.96%
Single Family Residential Portfolio Current Loan to Value as of Sept 30, 2020, Average Loan to Value is 38% 11 Amount % of Portfolio SFR Delinquencies as of 12/31/2020 $32 million 0.6% SFR Net Charge Offs (Recoveries) for the year- ended 9/30/2020 ($1.2 million) (0.02%)