Market Overview

Washington Federal and Anchor Bancorp Announce Extension of Merger Agreement


Washington Federal, Inc. ("Washington Federal") (NASDAQ:WAFD) and
Anchor Bancorp ("Anchor") (NASDAQ: ANCB) announced today that they have
mutually agreed to amend their merger agreement that was entered into on
April 11, 2017. The amendment extends from December 31, 2017 to
June 30, 2018, the date after which either party can elect to terminate
the agreement if the transaction contemplated by the agreement (the
"Merger") has not yet been completed.

This Smart News Release features multimedia. View the full release here:

The need for the amendment was due to the identification of certain
issues with respect to procedures, systems and processes of Washington
Federal's bank subsidiary, Washington Federal, National Association,
relating to its Bank Secrecy Act ("BSA") program. Washington Federal is
taking proactive steps to remediate these issues. Given that these
remediation efforts likely would impact regulatory approvals necessary
to consummate the Merger, Washington Federal has decided to withdraw its
regulatory applications relating to the Merger and resubmit them after
the remediation has progressed. The amendment to the merger agreement
also provides for up to three additional six month extensions beyond
June 30, 2018, and addresses certain Anchor operational matters in light
of the extension. There can be no assurance that the Merger will be
completed by the extended termination date or any further extended date.

Washington Federal's President and Chief Executive Officer Brent
Beardall commented, "We are disappointed that we will not be able to
complete the Anchor transaction in the time-frame originally
anticipated; however, we will use this opportunity to improve our
processes and systems. We have been very impressed with both the clients
and employees of Anchor Bank and look forward to bringing our two banks

Jerry Shaw, President and Chief Executive Officer of Anchor stated, "We
continue to believe that a merger with Washington Federal is beneficial
to our shareholders and the communities we serve. We could not have
asked for a better strategic partner than Washington Federal as we
continue to work together towards a successful outcome."

About Washington Federal

As of June 30, 2017, Washington Federal reported total assets of $15.0
billion and net income of $172 million for the four quarters then ended.

Washington Federal, National Association, is a national bank with
headquarters in Seattle, Washington, and 236 branches in eight western
states. To find out more about Washington Federal, please visit our
Washington Federal uses its website to distribute financial and
other material information about Washington Federal.

About Anchor

As of June 30, 2017, Anchor reported total assets of $462.5 million and
net income of $2.4 million for the fiscal year then ended.

Anchor is headquartered in Lacey, Washington and is the parent company
of Anchor Bank, a community-based savings bank primarily serving Western
Washington through its 10 full-service banking offices (including one
Wal-Mart in-store location) within Grays Harbor, Thurston, Lewis, Pierce
and Mason counties, and one loan production office located in King
County, Washington. Anchor's common stock is traded on the NASDAQ Global
Market under the symbol "ANCB" and is included in the Russell 2000
Index. For more information, visit the Anchor's web site

Important Cautionary Statements

This press release contains statements about Washington Federal's and
Anchor'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," "should," 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. Washington
Federal and Anchor undertake no obligation to update or revise any
forward-looking statement. In addition to factors previously disclosed
in Washington Federal's and Anchor's SEC reports (accessible on the
SEC's website at
and on Washington Federal's website at
and Anchor's website at,
and elsewhere in this press release, the following factors, among
others, could cause actual results to differ materially from
forward-looking statements or historical performance, particularly in
view of the BSA issues that have caused the parties to extend the
termination date in the merger agreement: ability to obtain regulatory
approvals and meet other closing conditions to the Merger, including
approval by Anchor's shareholders, on the expected terms and schedule;
the potential delay in closing the Merger beyond the date after which
either party can terminate the merger agreement; the success, timeliness
and cost of Washington Federal's remediation efforts; actions of
government authorities; the success timing and ability to pursue
Washington Federal's growth or other business initiatives; and the
ability to retain customers and personnel.

Additional Information

This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of any
vote or approval. In connection with the proposed transaction with
Anchor, Washington Federal has filed a registration statement on Form
S-4 with the SEC that 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 those 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,
In addition, documents filed with the SEC by Washington Federal will be
available free of charge by accessing Washington Federal's website at
or by writing Washington Federal 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

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

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