Wafd, Inc. · NASDAQ:WAFD
Wafd — Washington Federal — 14th Annual Financial Services Conference 2012
30 slides from Wafd's conference presentation, May 10, 2012
Slide 1: 14th Annual Financial Services Conference May 9th, 2012
1 14th Annual Financial Services Conference May 9th, 2012 Exhibit 99.1
Slide 2: Forward Looking Statements
2 Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Washington Federal’s management and are subject to significant risks a
Slide 3: Profile
3 • Since 1917 • 166 Branches in Eight Western States • Consumer Lending • Commercial Real Estate • Business Banking • Strong Capital, Asset Quality, Low-cost provider • Portfolio Lender • Profitable every year since 1982 IPO • 16 Acquisitions since IPO PROFILE
Slide 4: Market Area Western States
4 Market Area 8 Western States
Slide 5: Washington Federal, Inc. to Acquire South Valley Bancorp, Inc.
Washington Federal, Inc. to Acquire South Valley Bancorp, Inc. • Announced April 4, 2012, expected closing in the 3rd calendar quarter • All stock, WAFD to Issued 1,996,387 shares or 1.87% of total shares outstanding • Expected to be accretive to earnings immediately • WAFD stock consideration is 51
Slide 6: Map of Oregon Locations - Proforma
Washington Federal Branches South Valley Branches Map of Oregon Locations - Proforma 6
Slide 7: Western National Bank and New Mexico Branch Acquisitions
Washington Federal Acquired Western National Bank in an FDIC Assisted Transaction • Closed December 16, 2011 • Total Assets of $177 million, loans of $143 million, discount of $53 million • No FDIC loss share protection • WAFD can work out the loans based on business judgment • WNB had three branche
Slide 8: Market Updates
MARKET UPDATES Current vs. Prior Year Unemployment Rate (UR) Median Home Price 8 Source: DA Davidson Research Report 5/8/12
Slide 9: Total Assets (in millions)
9 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 Total Assets (in millions) $13.5
Slide 10: Asset Composition
10 Loans 79.60% Investments 17.40% Cash 0.60% Other Assets 2.40% Asset Composition As of September 30, 2006 Loans 59.14% Investments 28.57% Cash 6.59% Covered Assets 2.80% Other Assets 3.30% Asset Composition As of MAR 31, 2012
Slide 11: Investments As of March 31, 2012
11 Agency MBS, $3,312Cash, $890 AFS Gain, $101 Agency Obligations, $93 Other, $301 FHLB Stock, $152 Investments As of March 31, 2012 (in millions)
Slide 12: Net Loans (in millions)
12 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $5,388 $9,502 $7,979 Net Loans (in millions)
Slide 13: Net Loan Charge Offs As a % of Loans Outstanding
13 184 98 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% Net Loan Charge Offs As a % of Loans Outstanding
Slide 14: Charge Offs By Loan Type March 31, 2012
Outstanding $ Outstanding % Cumulative1 Charge Offs $ % of Cumulative1 Charge Offs Single-Family Residential 5,974$ 74% 114$ 26% Construction - Speculative 129 2% 63 14% Construction - Custom 236 3% 1 0% Land - Acquisition & Development 156 2% 207 47% Land - Consumer Lot Loans 150 2% 6 1% Multi-Fami
Slide 15: Troubled Debt Restructurings Accounting Guidance
15 Accounting Guidance – A modification is a Troubled Debt Restructuring if: 1) Borrower is experiencing financial difficulties 2) A concession is made. Most importantly – Current GAAP says once a TDR, always a TDR Balance Count Avg Balance Performing TDR's 372,825,472$ 87.4% 1,461 255,185$ Perf. De
Slide 16: Accounting Treatment of TDRs and Peer Comparisons
The accounting treatment of TDR’s is causing peer group comparisons to be confusing and potentially misleading. This is based on commonly used industry data providers.
Slide 17: Allowance Trend w/Problem Assets
17 Allowance Trend w/Problem Assets 5.03% 2.11% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Non-Performing Assets Non-Performing Loans ALLL to Loans
Slide 18: Deposit Composition & Weighted Rate
18 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 Deposit Composition & Weighted Rate (in Millions) DDA MM & SAVINGS TIME WTD RATE
Slide 19: Deposit Composition
19 Transaction Accounts $1,361 23% Time Deposits $4,576 77% Deposit Compostion As of 3/31/2007 Transaction Accounts $2,865 33% Time Deposits $5,934 67% Deposit Composition As of 3/31/2012
Slide 20: Capital – Market Comparison
20 Capital – Market Comparison (in billions) Source: SNL as of March 2012 Company Name Total Assets Asset Rank Tangible Assets Tang Common Eqty/ Tang Assts (%) TCE / TA RANK JPMorgan Chase & Co. 2,265.8 1 2,214.4 5.62 95 Bank of America Corp. 2,136.6 2 2,058.6 6.50 86 Citigroup Inc. 1,873.9 3 1,841.
Slide 21: Net Interest Spread
21 Net Interest Spread is the difference between the weighted averaged rate earned on assets and the weighted average rate paid on liabilities 2.16% 3.81% 2.17% 4.14% 2.57% 2.04% 3.01% 2.05% 3.01% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% Net Interest Spread
Slide 22: Net Interest Income (in millions)
22 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 Net Interest Income (in millions) Our objective in managing interest rate risk is to consistently grow net interest income through the various interest rate cycles, acknowledging there will be periods of decline.
Slide 23: Potential Impact of Rising Rates
23 This assumes immediate increases in rates and no change is size or composition of balance sheet. Investing cash and lagging deposit rates are options that would be available. $250 $270 $290 $310 $330 $350 $370 $390 $410 $430 Year 1 Year 2 Year 3 Potential Impact of Rising Rates NII Base (no chang
Slide 24: Efficiency
24 Peer Group Average* 03-31-12 69.42% 1.14% Efficiency Ratio Operating Expenses to Average Assets 33.58% 1.08% *100 Largest Public Banks and Thrifts - Source: SNL Financial EFFICIENCY Washington Federal 03-31-12 If FDIC Insurance premiums were back to 2008 levels, our 3/31/12 Efficiency Ratio would
Slide 25: YTD Net Income (in millions)
25 $0 $20 $40 $60 $80 $100 $120 $140 $160 $148 $67 YTD Net Income (in millions)
Slide 26: Net Income - Last 8 Quarters and EPS
26 $- $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 $- $5 $10 $15 $20 $25 $30 $35 $40 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Net Income - Last 8 Quarters and EPS (in Millions) Net Income EPS
Slide 27: Performance Ratios
27 Peer Group Average* 3-31-12 7.89% .81% Return on Average Equity (ROE) Return on Average Assets (ROA) 7.12% 1.00% *100 Largest Public Banks and Thrifts - Source: SNL Financial PERFORMANCE RATIOS Washington Federal 3-31-12
Slide 28: Returning Capital to Shareholders
28 Returning Capital to Shareholders WFSL has paid 117 consecutive quarterly cash dividends Increased cash dividend $.02 or 33% in December Current cash dividend of $.08 provides a yield of 1.8% based on recent prices Year to date the Company has returned 70% of net income to shareholders
Slide 29: Stock Price per Share and Book Price per Share
29 $0 $5 $10 $15 $20 $25 $30 Stock Price per Share and Book Price per Share Stock Price Book Price Book Value per Share $17.85 Tangible Book Value per Share $15.45
Slide 30: 14th Annual Financial Services Conference May 9th, 2012
30 14th Annual Financial Services Conference May 9th, 2012
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