[ skip to main content ]

About WaMu | Locations | Contact Us |
Log in to Your Accounts
Log in to your accounts
Forgot password?

News Releases

News Release

Printer Friendly Version View printer-friendly version
BACK
Washington Mutual Announces Record Quarterly Earnings; Board of Directors Increases Cash Dividend

To view a printable version of the Q1 2002 Financial Statements, click here.

To view a downloadable version of the Q1 2002 Financial Statements, click here.

SEATTLE--(BUSINESS WIRE)--April 16, 2002--Washington Mutual, Inc. (NYSE:WM) today announced record quarterly earnings of $950 million, or 98 cents per diluted share, for the quarter ended March 31, 2002, up 29 percent on a per share basis from $641 million, or 76 cents per diluted share for the same period a year ago.

Earnings for the first quarter of 2002 included results of the former Dime Bancorp, Inc. (Dime), which the company acquired on Jan. 4, and results of the former operations of HomeSide Lending, Inc. (HomeSide), the U.S. mortgage unit of the National Australia Bank Limited, which Washington Mutual acquired in an asset acquisition on March 1. Both acquisitions were accounted for as purchase transactions. In 2002, new accounting rules under generally accepted accounting principles (GAAP) eliminated the amortization of goodwill. The impact of goodwill amortization to net income in the first quarter of 2001 was $29 million, or 3 cents per diluted share. (Year-over-year comparisons reflect the three acquisitions completed in 2001.)

In addition to the exceptional earnings growth, highlights of the recently completed quarter include:

  • A net interest margin of 3.74 percent and a higher average earning asset base combined to produce a 76 percent increase in net interest income over last year;

  • A return on common equity of 20.68 percent;

  • Record quarterly checking account growth of 327,598, excluding accounts acquired from Dime;

  • Record depositor and other retail banking fees of $361 million, up 29 percent from last year;

  • Record loan volume of $65.27 billion, including a 187 percent increase in total single-family residential (SFR) loan volume and a 39 percent increase in non-SFR loan volume from the first quarter of 2001.

"Washington Mutual has entered 2002 on a very solid note," said Kerry Killinger, the company's chairman, president and CEO. "We are extremely proud of our first quarter results and everything that our employees have accomplished. We look forward to continuing to profitably grow our national franchises while creating value for our shareholders over the long term."

BOARD OF DIRECTORS INCREASES DIVIDEND

Based on the company's continued strong operating fundamentals and financial performance, Washington Mutual's Board of Directors declared a cash dividend of 26 cents per share on the company's common stock, up from 25 cents per share in the previous quarter. Dividends on the common stock are payable May 15, 2002 to shareholders of record as of April 30, 2002. The board also declared a $0.90625 dividend on Washington Mutual's Series H Preferred Stock which, together with a related purchase contract adjustment payment of $0.09375, will result in an aggregate payment of $1.00 on each unit of the company's Premium Income Equity Securities (PIES). These amounts are payable on May 16, 2002, to shareholders of record as of May 15, 2002.

FIRST QUARTER RESULTS

Net Interest and Noninterest Income

A favorable net interest margin and the addition of the previously mentioned acquisitions helped fuel an increase in net interest income of 76 percent to $2.40 billion in the first quarter of 2002 versus $1.36 billion a year earlier.

The net interest spread for the quarter was 3.60 percent, compared with 2.29 percent for the same period last year. The margin was 3.74 percent in the most recent quarter versus 2.65 percent in the first quarter of 2001.

Depositor and other retail banking fees were a record $361 million, up 29 percent from $279 million a year earlier. Much of this increase in banking fees was the result of a much higher base of retail checking accounts year over year. During the most recent quarter, retail checking accounts grew on a net basis by 686,444, which included 358,846 checking accounts acquired from Dime. Additionally, Washington Mutual's new Platinum Checking accounts added significantly to the net increase in the number of retail checking accounts.

Although mortgage rates trended slightly upward as the first quarter progressed, fixed-rate SFR loan volume remained strong. This led to a strong gain from SFR mortgage loans of $231 million, compared with fourth quarter's record gain of $287 million.

During the quarter, the company recorded an increase in mortgage servicing rights (MSR) of $1.71 billion, reflecting the acquisition of Dime, strong loan origination volume and slightly lower loan pay-off volume.

Lending

Washington Mutual's substantial loan origination capacity, enhanced by recent acquisitions produced total loan volume of $65.27 billion for the quarter, up 10 percent from $59.12 billion in the fourth quarter of 2001.

Total SFR loan volume was $59.16 billion, up 8 percent from $54.83 billion in the fourth quarter of 2001. The increase was a result of a 29 percent increase in adjustable-rate mortgage volume over the fourth quarter. Non-SFR volume totaled a record $6.11 billion for the most recent quarter, up 42 percent from the fourth quarter volume of $4.29 billion.

Efficiency Ratio

The efficiency ratio (defined as total noninterest expense, excluding amortization of goodwill in prior periods and other intangible assets, as a percentage of net interest income, noninterest income and the extraordinary item) was 46.96 percent in the most recent quarter compared with 46.33 percent in the first quarter of last year. The efficiency ratio, while up slightly from the previous quarter's 44.99 percent, reflected the additions of the former Dime and HomeSide operations, which are in the early stages of their integrations into Washington Mutual.

Noninterest expense totaled $1.53 billion in the first quarter of 2002, which is higher than $1.01 billion in the previous year principally because of the company's acquisitions.

Credit Quality Remains Steady

Killinger said that credit quality, a key focus for Washington Mutual, remains solid and in line with the company's expectations. Although nonperforming assets (NPAs) increased from the previous quarter, the rate of growth in NPAs appears to be decreasing from its high during the second half of 2001 due to the recovering national economy and continued strong housing demand.

During the quarter, NPAs increased by $399 million to $2.78 billion at March 31, 2002, but reflected the addition of $108 million of NPAs from the former Dime. Excluding Dime, the increase in NPAs was $291 million in the first quarter of 2002, down from the increase of $349 million in fourth quarter of 2001. NPAs represented 1.01 percent of total assets at March 31, 2002.

Reflecting the company's current view that growth in the NPAs may have peaked in previous quarters, the provision for loan and lease losses was $175 million, versus $200 million in the fourth quarter of 2001. Net loan charge offs for the first quarter were $99 million, holding steady with the fourth quarter level of $97 million. However, net loan charge offs as a percentage of average loans improved from

  • 0.25 percent in the fourth quarter of 2001 to 0.23 percent at March 31, 2002.

"Given Washington Mutual's credit risk profile, which is heavily weighted toward single-family residential mortgages, management believes it is adequately reserved," Killinger added.

Balance Sheet and Capital Management

Consolidated assets at March 31, 2002 were $275.22 billion, compared with $242.51 billion at Dec. 31, 2001. The acquisitions during the first quarter added approximately $32.60 billion of assets to Washington Mutual's balance sheet.

At March 31, 2002, balances of transaction deposits, including checking, savings and money market deposits, represented 68 percent of total deposits, compared with 66 percent at Dec. 31, 2001. Total deposits were $129.01 billion at the end of the first quarter, up from $107.18 billion at Dec. 31, 2001. The company's recent acquisitions contributed approximately 70 percent of this growth, while organic growth contributed 30 percent.

Stockholders' equity at March 31, 2002 was $18.13 billion, or 6.6 percent of consolidated assets at March 31, 2002. In addition, the capital ratios of the company's banking subsidiaries continued to exceed federal regulatory requirements for classification as "well-capitalized" institutions, the highest regulatory standard.

Company Updates

  • The company announced today that Denver, Colorado has been selected as the newest site for its innovative Occasio financial stores. Washington Mutual will complement its existing mortgage lending presence in the Greater Denver area with up to 30 financial stores. The first 20 stores are scheduled to open this year.

  • Earlier, Washington Mutual announced plans to open up to 40 Occasio financial stores in the Greater New York area over the next year, extending its existing branch network of more than 120 retail financial centers in the market and complementing its strong mortgage position in New York/New Jersey.

  • The company recently converted the loan servicing records of the former mortgage operations of Fleet Financial, Inc. While a few post-conversion activities remain to be completed, the company said it anticipates a successful integration.

Outlook

"We expect to deliver another year of strong profitability in 2002," Killinger said. "While it appears that the net interest margin will likely trend toward a more normalized level as the year progresses, we anticipate that the solid business fundamentals that exist in all of our key businesses will produce another successful year."

"Our primary focus in 2002 is on gaining further efficiencies from our recent acquisitions, continuing strong momentum in our internal growth and making further progress toward our long-term goal of building the nation's top financial services company focused on the middle-market consumer."

With a history dating back to 1889, Washington Mutual is a national financial services company that provides a diversified line of products and services to consumers and small- to mid-sized businesses. At March 31, 2002, Washington Mutual and its subsidiaries had assets of $275.22 billion. Washington Mutual currently operates more than 2,400 consumer banking, mortgage lending, commercial banking, consumer finance and financial services offices throughout the nation. Washington Mutual's press releases are available at www.wamu.com.

A live webcast of the company's quarterly earnings conference call will be held on Wednesday, April 17 at 10:30 a.m. Eastern Time at www.wamu.com or via phone at 888/455-9641. A recording of the conference call will be available after 1 p.m. Eastern Time on Wednesday, April 17, 2002 through 2:59 a.m. Eastern Time on Saturday, April 27 at 800/666-8092. Callers from outside the United States may dial 402/220-0267.

Forward-Looking Statements

This press release contains forward-looking statements, which are not historical facts and pertain to future operating results. These forward-looking statements are within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to statements about our plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts. When used in this press release, the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions are generally intended to identify forward-looking statements. These forward-looking statements are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the results discussed in these forward-looking statements for the reasons, among others, discussed under the heading, "Business Factors That May Affect Future Results" in Washington Mutual's 2001 Annual Report on Form 10-K which include: (1) changes in general business and economic conditions may significantly affect our earnings; (2) the risk of our inability to effectively manage the volatility of our mortgage banking business could adversely affect our earnings; (3) the risk of our inability to effectively integrate the operations and personnel of companies we have acquired could adversely affect our earnings and financial condition; (4) the concentration of our operations in California could adversely affect our earnings and financial condition if the California economy or real estate market declines; (5) competition from other financial services companies in all our markets could make it a bigger challenge for us to achieve our financial goals; and (5) changes in the regulation of financial services companies could adversely affect our business.

v
WM-1

                        Washington Mutual, Inc.
                   Consolidated Statements of Income
             (dollars in millions, except per share data)
                              (unaudited)

                                               Quarter Ended
                                    Mar. 31,     Dec. 31,    Mar. 31,
                                      2002         2001        2001
                                    ---------------------------------
Interest Income
 Loans                               $2,854       $2,690       $2,811
 Available-for-sale
 ("AFS") securities                     947          776        1,032
 Other interest and
  dividend income                        82           59           71
                                     ------       ------       ------
   Total interest income              3,883        3,525        3,914
Interest Expense
 Deposits                               648          649          887
 Borrowings                             839          849        1,668
                                     ------       ------       ------
   Total interest expense             1,487        1,498        2,555
                                     ------       ------       ------
    Net interest income               2,396        2,027        1,359
Provision for loan and
 lease losses                           175          200           82
                                     ------       ------       ------
    Net interest income
    after provision for
    loan and lease losses             2,221        1,827        1,277
Noninterest Income
 Depositor and other retail
  banking fees                          361          353          279
 Securities fees and
  commissions                            82           77           72
 Insurance income                        47           29           20
 Single-family residential
  ("SFR") mortgage banking
  income (expense)                      393         (690)         273
 Portfolio loan related income           65           60           32
 (Loss) gain from sale of
  other AFS securities                 (298)         392          (49)
 Other income                            83          113          123
                                     ------       ------       ------
   Total noninterest income             733          334          750
Noninterest Expense
 Compensation and benefits              690          535          416
 Occupancy and equipment                288          228          184
 Telecommunications and
  outsourced information
  services                              139          119          106
 Depositor and other
  retail banking losses                  50           45           30
 Amortization of goodwill              --             34           29
 Amortization of other
  intangible assets                      25           11            7
 Professional fees                       55           63           37
 Advertising and promotion               44           50           32
 Other expense                          238          246          172
                                     ------       ------       ------
  Total noninterest expense           1,529        1,331        1,013
                                     ------       ------       ------
   Income before income
   taxes and extraordinary
   item                               1,425          830        1,014
Income taxes                            521          295          373
                                     ------       ------       ------
Income before extraordinary
 item                                   904          535          641
Extraordinary item - gain
 on extinguishment of
 securities sold under
 agreements to repurchase,
 net of taxes of $28 million
 for quarter ended March 31,
 2002, and $189 million for
 quarter ended December 31, 2001         46          307         --
                                     ------       ------       ------
Net Income                             $950         $842         $641
                                     ======       ======       ======
Net Income Attributable
 to Common Stock                       $948         $840         $640
                                     ======       ======       ======
Basic earnings per common
 share:
 Income before
  extraordinary item                  $0.95        $0.62        $0.77
 Extraordinary item                    0.05         0.36         --
 Net income                            1.00         0.98         0.77

Diluted earnings per
 common share:
 Income before
  extraordinary item                  $0.93        $0.62        $0.76
 Extraordinary item                    0.05         0.35         --
 Net income                            0.98         0.97         0.76

Dividends declared per
 common share                         $0.25        $0.24        $0.21
Basic weighted average
 number of common shares
 outstanding (in thousands)         947,653      856,014      827,139
Diluted weighted average
 number of common shares
 outstanding (in thousands)         963,242      868,951      837,125



WM-2

                        Washington Mutual, Inc.
            Consolidated Statements of Financial Condition
             (dollars in millions, except per share data)
                              (unaudited)


                                    Mar. 31,     Dec. 31,    Mar. 31,
                                      2002         2001        2001
                                    ---------------------------------
Assets
 Cash and cash
  equivalents                        $8,052       $6,044       $2,963
 AFS securities:
  Mortgage-backed
   securities ("MBS")                24,347       28,568       46,483
  Investment securities              42,951       29,781        9,199
 Loans held for sale                 23,317       23,842       13,850
 Loans:
  Loans held in portfolio           146,364      132,991      132,460
  Allowance for loan and
   lease losses                      (1,621)      (1,404)      (1,158)
                                   --------     --------     --------
    Total loans held in
    portfolio, net of
    allowance for loan
    and lease losses                144,743      131,587      131,302
 Mortgage servicing rights
  ("MSR")                             7,955        6,241        3,456
 Investment in Federal
  Home Loan Banks ("FHLBs")           4,317        3,873        3,707
 Goodwill                             5,970        1,981        2,011
 Other assets                        13,571       10,589        6,954
                                   --------     --------     --------
    Total assets                   $275,223     $242,506     $219,925
                                   ========     ========     ========
Liabilities
 Deposits:
  Checking accounts                 $53,376      $37,736      $19,237
  Savings accounts and
   money market deposit
   accounts ("MMDAs")                34,378       32,484       38,792
  Time deposit accounts              41,256       36,962       35,306
                                   --------     --------     --------
    Total deposits                  129,010      107,182       93,335
 Federal funds purchased
  and commercial paper                4,018        4,690        4,030
 Securities sold under
  agreements to repurchase
  ("repurchase agreements")          44,789       39,447       29,514
 Advances from FHLBs                 61,734       61,182       66,780
 Other borrowings                    14,238       12,576       10,216
 Other liabilities                    3,204        3,264        3,612
                                   --------     --------     --------
    Total liabilities               256,993      228,341      207,487
Redeemable preferred
 stock                                  102          102          102
Stockholders' equity                 18,128       14,063       12,336
                                   --------     --------     --------
    Total liabilities and
    stockholders' equity           $275,223     $242,506     $219,925
                                   ========     ========     ========
Common shares outstanding
 at end of period
 (in thousands)(1)                  973,590      873,089      877,131
Book value per common share          $18.97       $16.45       $14.36
Tangible book value per
 common share                         12.55        14.18        12.14

Full-time equivalent employees
 at end of period                    49,039       39,465       33,525

(1) Includes 18 million shares held in escrow that were not
included in the book value per share calculations.



WM-3

                        Washington Mutual, Inc.
                    Selected Financial Information
            (dollars in millions except for per share data)
                              (unaudited)

                                              Quarter Ended
                                      Mar. 31,   Dec. 31,   Mar. 31,
                                        2002       2001       2001
                                      ------------------------------

Basic and Diluted Weighted Average Number
of Common Shares Outstanding (in thousands)

Basic weighted average
 number of common shares
 outstanding                           947,653    856,014    827,139
Dilutive effect of potential
 common shares from:
  Stock options                          8,602      6,726      9,183
  Premium Income Equity
   Securities(SM)                        1,360      1,268        803
  Trust Preferred Income
   Equity Redeemable
   Securities(SM)                        5,627      4,943       --
                                       -------    -------    -------
                                        15,589     12,937      9,986
                                       -------    -------    -------
Diluted weighted average
 number of common shares
 outstanding                           963,242    868,951    837,125
                                       =======    =======    =======


                                             Quarter Ended
                                    Mar. 31, 2002    Mar. 31, 2001
                                    ------------------------------
Stockholders' Equity
 Rollforward
Balance, beginning of
 period                                $14,063          $10,166
Net income                                 950              641
Other comprehensive (loss)
 income, net of tax                       (412)             225
Cash dividends declared
 on common stock                          (243)            (168)
Cash dividends declared on
 redeemable preferred stock                 (2)              (1)
Common stock repurchased
 and retired                               --               --
Common stock warrants
 issued, net of costs                      --               --
Common stock issued for
 acquisitions                            3,685            1,389
Common stock issued                         87               84
                                       -------          -------
Balance, end of period                 $18,128          $12,336
                                       =======          =======


WM-4
                        Washington Mutual, Inc.
                    Selected Financial Information
            (dollars in millions, except per share amounts)
                              (unaudited)

                                          Quarter Ended
                                          -------------
                             Mar. 31,       Dec. 31,       Mar. 31,
                               2002           2001           2001
                             --------       --------       --------

Reported Financial Results

 Net income                  $   950        $   842        $   641
 Net income per common
  share                      $  1.00        $  0.98        $  0.77
 Net income per diluted
  common share                  0.98           0.97           0.76

 Financial ratios on reported
  financial results:
    Return on average assets    1.34%          1.43%          1.21%
    Return on average common
     equity                    20.68          23.36          22.34
    Efficiency ratio(1),
     excluding amortization
     of other intangible
     assets                    46.96          44.99 (2)      46.33 (2)
    Efficiency ratio(1),
     including amortization
     of other intangible
     assets                    47.75          46.58 (3)      48.04 (3)


                                         Quarter Ended
                                         -------------
                             Mar. 31,       Dec. 31,       Mar. 31,
                               2002           2001           2001
                             --------       --------       --------

 Pro Forma (4)
 Income before income taxes
  and extraordinary item     $ 1,425        $   830        $ 1,014
 Amortization of goodwill          -             34             29
                             --------       --------       --------
 Income before income taxes
  and extraordinary item,
  excluding amortization of
  goodwill                     1,425            864          1,043
 Income tax expense             (521)          (298)          (376)
                             --------       --------       --------
 Net income before
  extraordinary item,
  excluding amortization
  of goodwill                    904            566            667
 Extraordinary item, net
  of taxes                        46            307              -
 Redeemable preferred stock
  dividends                       (2)            (2)            (1)
                             --------       --------       --------
 Net income attributable to
  common stock, excluding
  amortization of goodwill   $   948        $   871        $   666
                             ========       ========       ========
 Earnings per diluted common
  share, excluding
  amortization of goodwill   $  0.98        $  1.00        $  0.79

-----------------------------

(1) Includes extraordinary item.

(2) Excludes amortization of goodwill.

(3) Includes amortization of goodwill.

(4) Represents pro forma impact to quarter-to-date December 31, 2001
    and March 31, 2001 net income assuming that the adoption of
    Statement of Financial Accounting Standards ("SFAS") No. 142,
    Goodwill and Other Intangible Assets, which eliminates the
    amortization of goodwill from net income, was applied to all
    periods presented. SFAS No. 142 became effective on January 1,
    2002.



WM-5
                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)

                                      Quarter Ended
                                      -------------

                     Mar. 31, 2002    Dec. 31, 2001    Mar. 31, 2001
                     Balance   Rate   Balance   Rate   Balance   Rate
                     -------   ----   -------   ----   -------   ----
Average Balances and
 Weighted Average
 Interest Rates
Assets
Earning assets:
 Loans(1)(2)
  SFR               $114,792   6.07% $103,594   6.39% $ 91,167   7.67%
  Specialty mortgage
   finance(3)         10,406   9.59    10,024   9.97     7,471  10.23
----------------------------         --------         --------
    Total SFR        125,198   6.36   113,618   6.70    98,638   7.87
 SFR construction(4):  2,498   6.62     2,692   7.04     2,445   8.92

 Second mortgage and
  other consumer:
    Banking
     subsidiaries     14,478   6.84    10,291   7.71     8,796   9.03
    Washington Mutual
     Finance           2,557  16.66     2,576  15.91     2,510  16.88
 Commercial business   5,647   5.52     5,265   5.91     3,776   8.76
 Commercial real
  estate:
    Multi-family      17,552   6.35    15,929   7.02    16,578   8.30
    Other commercial
     real estate       6,840   6.82     4,553   6.78     4,114   8.59
----------------------------         --------         --------
    Total loans      174,770   6.54   154,924   6.94   136,857   8.22
 MBS(5)               25,248   5.39    31,188   6.29    53,909   7.10
 Investment securities
  and other(5)        55,157   5.04    27,951   4.92     9,552   6.14
----------------------------         --------         --------
    Total earning
     assets          255,175   6.11   214,063   6.58   200,318   7.82

Noninterest-earning assets:
 MSR                   7,006            6,517            2,834
 Goodwill              5,401            2,125            1,351
 Other                16,626           13,630            8,261
----------------------------         --------         --------
    Total assets    $284,208         $236,335         $212,764
============================         ========         ========
Liabilities
Interest-bearing
 liabilities:
 Deposits:
  Interest-bearing
   checking         $ 23,873   2.76  $ 10,897   1.98  $  6,399   1.83
  Savings accounts
   and MMDAs          36,179   1.57    34,174   2.11    34,899   4.08
  Time deposit
   accounts           42,033   3.33    38,863   4.22    35,609   5.77
----------------------------         --------         --------
    Total interest-
     bearing
     deposits        102,085   2.57    83,934   3.07    76,907   4.68
 Repurchase
  agreements          53,450   1.62    29,677   2.31    31,043   6.02
 Advances from FHLBs  65,302   2.63    64,338   3.17    63,747   6.08
 Federal funds
  purchased and
  commercial paper     5,565   1.83     5,163   2.39     5,094   5.84
 Other                14,156   5.10    14,357   3.61    10,370   6.98
----------------------------         --------         --------
    Total interest-
     bearing
     liabilities     240,558   2.51   197,469   3.01   187,161   5.53
Noninterest-bearing
 sources:
 Noninterest-bearing
  deposits            21,767           19,699           10,739
 Other liabilities     3,536            4,778            3,408
 Stockholders' Equity 18,347           14,389           11,456
----------------------------         --------         --------
Total liabilities and
 stockholders'
 equity             $284,208         $236,335         $212,764
============================         ========         ========
Net interest spread            3.60             3.57             2.29
Impact of noninterest-bearing
 sources                       0.14             0.23             0.36
Net interest margin            3.74             3.80             2.65
-------------------

(1) Nonaccrual loans were included in the average loan amounts
    outstanding.

(2) Interest income for loans includes amortization of net deferred
    loan origination costs of $55 million, $57 million, and $25
    million for the quarters ended March 31, 2002, December 31, 2001,
    and March 31, 2001.

(3) Includes purchased subprime loan portfolios as well as first
    mortgages originated by Washington Mutual Finance and Long Beach
    Mortgage.

(4) Includes custom construction loans to the intended occupant of a
    house to finance the house's construction and residential builder
    construction loans to borrowers who are in the business of
    acquiring land and building homes for resale.

(5) Yield is based on average amortized cost balances.



WM-6

                        Washington Mutual, Inc.
                    Selected Financial Information
                              (unaudited)


                            Mar. 31,      Dec. 31,      Mar. 31,
                             2002           2001          2001
                           ---------     ---------     ---------
Capital Adequacy
  Stockholders'
   equity/total assets          6.59%         5.80%         5.61%
  Stockholders'
   equity (1)/total assets (1)  6.80          5.89          5.54
  Tangible common equity (1)(2) 4.69          5.14          4.72
  Estimated total risk-based
   capital (3)                 11.88         12.87         10.75

----------------------------

(1) Excludes unrealized net gain/loss on available-for-sale securities
    and derivatives.

(2) Excludes goodwill and other intangible assets.

(3) Estimate of what WMI's total risk-based capital ratio would be if
    it was a bank holding company that complies with Federal Reserve
    Board capital requirements.

                            Mar. 31,      Dec. 31,      Mar. 31,
                             2002           2001          2001
                           ---------     ---------     ---------
Retail Checking Accounts (4)
  WMB and WMBfsb           1,218,440     1,182,385     1,119,736
  WMB, FA                  5,318,195 (5) 4,667,806     4,159,860 (6)
                           ---------     ---------     ---------
  Total retail checking
   accounts                6,536,635     5,850,191     5,279,596
                           =========     =========     =========

Retail Checking Account Activity (4)

 Net accounts opened
  during the quarter:
  WMB and WMBfsb              36,055        23,739        14,789
  WMB, FA                    650,389 (5)   166,577       415,665 (6)
                           ---------     ---------     ---------
 Net new retail
  checking accounts          686,444       190,316       430,454
                           =========     =========     =========


(4) Retail checking accounts exclude commercial business accounts. The
    information provided refers to the number of accounts, not dollar
    volume.

(5) Includes 358,846 checking accounts acquired from Dime.

(6) Includes 271,183 checking accounts acquired from Bank United Corp.



WM-7
                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)

                                       Quarter Ended
                                       -------------
                            Mar. 31,      Dec. 31,      Mar. 31,
                             2002           2001          2001
                           ---------     ---------     ---------
Loan Volume
  SFR:
   Adjustable rate
   ("ARMs")                  $16,608       $12,891       $ 7,245
   Fixed rate                 39,231        39,280        11,161
   Specialty mortgage
    finance (1)                3,320         2,654         2,233
                           ---------     ---------     ---------
    Total SFR loan volume     59,159        54,825        20,639

  SFR construction:
   Builder (2)                   417           186         1,075
   Custom (3)                     96           118           122
  Second mortgage and other
   consumer:
   Banking subsidiaries        3,720         2,318         1,335
   Washington Mutual Finance     452           518           449
  Commercial business            643           501           756
  Commercial real estate:
   Multi-family                  599           561           480
   Other commercial real
    estate                       183            89           180
                           ---------     ---------     ---------
      Total loan volume      $65,269       $59,116       $25,036
                           =========     =========     =========
Loan Volume by Channel
  Originated                 $43,120       $35,138       $20,409
  Purchased/Correspondent     22,149        23,978         4,627
                           ---------     ---------     ---------
      Total loan volume
       by channel            $65,269       $59,116       $25,036
                           =========     =========     =========
Refinancing Activity (4)
 SFR:
  ARMs                       $14,157       $10,623       $ 4,321
  Fixed rate                  25,933        27,264         6,291
  SFR construction                13             7             6
  Second mortgage and
   other consumer                641           149            58
  Commercial real estate         370           315           195
                           ---------     ---------     ---------
      Total refinances       $41,114       $38,358       $10,871
                           =========     =========     =========
SFR Loan Originations (5)
 Short-term ARMs:
  Treasury indices           $ 6,284       $ 5,606       $ 5,228
  COFI                           691           429           514
  Other                           40            48             2
                           ---------     ---------     ---------
      Total short-term ARMs    7,015         6,083         5,744
  Medium-term ARMs             8,393         6,383         1,312
  Fixed-rate mortgages        19,796        16,840         7,977
                           ---------     ---------     ---------
      Total SFR loan
       originations          $35,204       $29,306       $15,033
                           =========     =========     =========


(1) Includes purchased subprime loan portfolios as well as first
    mortgages originated by Washington Mutual Finance and Long Beach
    Mortgage.

(2) Represents residential builder construction loans to borrowers who
    are in the business of acquiring land and building homes for
    resale.

(3) Represents custom construction loans to the intended occupant of a
    house to finance the house's construction.

(4) Includes loan refinancings entered into by both new and
    pre-existing loan customers.

(5) Does not include purchased and correspondent SFR loans and
    specialty mortgage finance loans.



WM-8

                   Washington Mutual, Inc.
                Selected Financial Information
                    (dollars in millions)
                         (unaudited)

                   Change from
                  Dec. 31, 2001     Mar. 31,    Dec. 31,    Mar. 31,
                to Mar. 31, 2002     2002         2001       2001
----------------------------------------------------------------------
Loans by Property
Type and MBS
  Loans held in
  portfolio:
     SFR             $ 4,471       $ 86,492     $ 82,021    $ 83,534
     Specialty
      mortgage
      finance(1)         723         10,544        9,821       7,399
----------------------------------------------------------------------
      Total SFR loans  5,194         97,036       91,842      90,933
     SFR  construction:
       Builder(2)       (139)         1,988        2,127       2,575
       Custom(3)         (72)           403          475         425
     Second mortgage
     and other consumer:
       Banking
        subsidiaries   4,584         15,046       10,462       9,226
       Washington
        Mutual Finance   (13)         2,573        2,586       2,568
     Commercial
      business          (160)         5,230        5,390       4,863
     Commercial real
      estate:
        Multi-family   1,620         17,228       15,608      17,090
        Other
         commercial
         real estate   2,359          6,860        4,501       4,780
----------------------------------------------------------------------
  Total loans held
   in portfolio       13,373        146,364      132,991     132,460
  Less: allowance
   for loan and
   lease losses         (217)        (1,621)      (1,404)     (1,158)
  Loans securitized
   and retained
   as MBS             (1,067)        21,145       22,212      29,116
----------------------------------------------------------------------
     Total net loans
      held in portfolio
      and loans
      securitized and
      retained
      as MBS          12,089        165,888      153,799     160,418
  Loans held for sale   (525)        23,317       23,842      13,850
----------------------------------------------------------------------
     Total net loans
      and loans
      securitized and
      retained
      as MBS          11,564        189,205      177,641     174,268
  Purchased MBS       (3,154)         3,202        6,356      17,367
----------------------------------------------------------------------
     Total net loans
      and MBS        $ 8,410      $ 192,407     $183,997    $191,635
======================================================================

(1) Includes purchased subprime loan portfolios as well as first
    mortgages originated by Washington Mutual Finance.

(2) Represents residential builder construction loans to borrowers who
    are in the business of acquiring land and building homes for
    resale.

(3) Represents custom construction loans to the intended occupant of a
    house to finance the house's construction.



WM-9
                  Washington Mutual, Inc.
               Selected Financial Information
                   (dollars in millions)
                        (unaudited)


                                                     Dec. 31, 2001
                                                    to Mar. 31, 2002
----------------------------------------------------------------------
Rollforward of Loans Held for Sale
  Balance, beginning of period                              $ 23,842
   Loans added through acquisitions                            6,717
   Loans originated and purchased                             44,693
   Loans transferred from MBS                                     --
   Loans transferred from loans held in portfolio                383
   Loans sold or securitized                                 (51,193)
   Loan payments and other                                    (1,125)
----------------------------------------------------------------------
  Change in loans                                               (525)
----------------------------------------------------------------------
  Balance, end of period                                    $ 23,317
======================================================================


Rollforward of Loans Held in Portfolio
  Balance, beginning of period                             $ 132,991
   Loans added through acquisitions                           16,225
   Loans originated and purchased                             20,576
   Loans transferred to loans held for sale                     (383)
   Loans securitized                                          (3,938)
   Loan payments and other                                   (19,107)
----------------------------------------------------------------------
  Change in loans                                             13,373
----------------------------------------------------------------------
  Balance, end of period                                   $ 146,364
======================================================================


WM-10
                            Washington Mutual, Inc.
                         Selected Financial Information
                             (dollars in millions)
                                  (unaudited)

                                                      Dec. 31, 2001
                                                     to Mar. 31, 2002
----------------------------------------------------------------------
Rollforward of Mortgage Servicing Rights ("MSR")
  Balance, beginning of period                               $ 6,241
     SFR:
       Additions through acquisitions                            926
       Additions                                               1,222
       Amortization                                             (479)
       Impairment recovery                                        45
       Sales                                                      --
     Net change in commercial real estate MSR                     --
----------------------------------------------------------------------
  Balance, end of period(1)                                  $ 7,955
======================================================================

Rollforward of Valuation Allowance for MSR Impairment
  Balance, beginning of period                               $ 1,714
    Impairment recovery                                          (45)
----------------------------------------------------------------------
  Balance, end of period                                     $ 1,669
======================================================================

Rollforward of Loan Servicing Portfolio with MSR
  Balance, beginning of period                             $ 378,383
     SFR:
       Additions through acquisitions                         57,495
       Additions                                              57,178
       Sales                                                      --
       Loan payments and other                               (33,699)
     Net change in commercial real estate loan servicing
      portfolio                                                   18
----------------------------------------------------------------------
  Balance, end of period                                   $ 459,375
======================================================================


                                                         Mar. 31, 2002
                                                            Balance
----------------------------------------------------------------------
Total Servicing Portfolio
     Loan servicing portfolio with MSR                     $ 459,375
     Loan servicing portfolio without MSR                      7,666
     Servicing on retained MBS without MSR                     7,678
     Servicing on owned loans                                157,109
     Subservicing portfolio                                  170,760
----------------------------------------------------------------------
  Total servicing portfolio                                $ 802,588
======================================================================

                                                 Mar. 31, 2002
                                         ----------------------------
                                            Unpaid       Weighted
                                           Principal      Average
                                            Balance    Servicing Fee
----------------------------------------------------------------------
Total Servicing Portfolio,                           (in basis points,
 Excluding Retained MBS                                 annualized)
 without MSR and Owned Loans
     Government                            $ 71,409         52
     Agency                                 304,603         43
     Private                                 82,846         52
     Specialty home loans                     8,183         50
----------------------------------------------------------------------
  Total servicing portfolio,
   excluding retained MBS
   without MSR and owned loans(2)         $ 467,041         47
======================================================================

(1) At March 31, 2002, aggregate MSR fair value was $7.98 billion.

(2) Weighted average coupon (in basis points, annualized) was 7.11% at
    March 31, 2002.



WM-11

                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)



                                   Change from
                                  Dec. 31, 2001     Mar. 31,   % of
                                 to Mar. 31, 2002    2002      total
----------------------------------------------------------------------
Real Estate Loans and MBS (1)
 Short-term ARMs:
     COFI                           $ (1,058)       $31,936     20%
     Treasury indices                  1,299         35,462     22
     Other                            (1,467)        12,024(2)   8
----------------------------------------------------------------------
      Total short-term ARMs           (1,226)        79,422     50
  Medium-term ARMs                     3,603         45,188     29
  Fixed-rate loans                     2,411         30,096     19
  Other MBS                           (3,020)         3,559      2
----------------------------------------------------------------------
      Total real estate loans
       and MBS                       $ 1,768       $158,265    100%
======================================================================

(1) Does not include specialty mortgage finance loans.

(2) The balance included the following amount of securities retained
    which bear COFI to LIBOR basis risk (dollars in billions):
                          Mar. 31, 2002:  $2.8
                          Dec. 31, 2001:   2.9
                          Mar. 31, 2001:   2.7


                               Dec. 31,   % of      Mar. 31,     % of
                                2001      total       2001       total
----------------------------------------------------------------------
Real Estate Loans and MBS (1)
 Short-term ARMs:
     COFI                     $32,994      21%     $ 40,913       25%
     Treasury indices          34,163      22        42,590       25
     Other                     13,491(2)    9        11,819(2)     7
----------------------------------------------------------------------
      Total short-term ARMs    80,648      52        95,322       57
  Medium-term ARMs             41,585      26        31,825       19
  Fixed-rate loans             27,685      18        23,508       14
  Other MBS                     6,579       4        17,106       10
----------------------------------------------------------------------
      Total real estate loans
       and MBS               $156,497     100%     $167,761      100%
======================================================================

(1) Does not include specialty mortgage finance loans.

(2) The balance included the following amount of securities retained
    which bear COFI to LIBOR basis risk (dollars in billions):
                          Mar. 31, 2002:  $2.8
                          Dec. 31, 2001:   2.9
                          Mar. 31, 2001:   2.7


                                               Quarter Ended
----------------------------------------------------------------------
                                      Mar. 31,    Dec. 31,   Mar. 31,
                                       2002        2001        2001
----------------------------------------------------------------------
SFR Mortgage Banking Income (Expense)
  Loan servicing fees                  $ 475       $ 448      $ 196
  Amortization of MSR                   (479)       (381)      (123)
  MSR recovery (impairment)               45      (1,057)       (64)
  Other, net                              21         (52)       (20)
----------------------------------------------------------------------
    Net SFR loan servicing
     income (expense)                     62      (1,042)       (11)
  Loan related income                     98          49         24
  Gain from mortgage loans               231         287        187
  Gain from sale of originated MBS         2          16         73
----------------------------------------------------------------------
    Total SFR mortgage banking
     income (expense)                  $ 393      $ (690)     $ 273
======================================================================


WM-12

                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)

                                Mar. 31, 2002         Dec. 31, 2001
                              Balance   Term(1)     Balance   Term(1)
                            -----------------------------------------
Deposits and Borrowings               (in months)          (in months)
 Deposits:
  Noninterest-bearing
   deposits                  $21,836       N/A     $22,441       N/A
  Interest-bearing checking
   accounts, savings
   accounts and MMDAs         65,918       N/A      47,779       N/A
  Interest-bearing time
   deposit accounts           41,256        11      36,962        10
                             -------   -------     -------   -------
     Total deposits(2)       129,010               107,182
 Borrowings:
  Adjustable                  55,781         2      48,014         2
  Short-term fixed            47,355         2      49,569         1
  Long-term fixed             21,643        63      20,312        72
                             -------   -------     -------   -------
     Total borrowings        124,779               117,895
                             -------   -------     -------   -------
      Total deposits and
      borrowings            $253,789              $225,077
                            ========              ========

(1) Terms used are remaining term for deposits and term to reprice
for borrowings.

(2) Includes custodial and escrow deposits of $10.02 billion at 
March 31, 2002 and $10.11 billion at December 31, 2001.

WM-13

                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)

                                        Quarter Ended
----------------------------------------------------------------------
                             Mar.     Dec.    Sept.    June    Mar.
                              31,      31,     30,      30,     31,
                             2002     2001    2001     2001    2001
----------------------------------------------------------------------
Allowance for Loan
 and Lease Losses
  Balance, beginning
   of quarter             $ 1,404  $ 1,295  $ 1,170  $1,158  $1,014
  Allowance acquired
   through business
   combinations/other         141        6        -      (5)    120
  Provision for loan
   and lease losses           175      200      200      92      82
----------------------------------------------------------------------
                            1,720    1,501    1,370   1,245   1,216
  Loans charged off:
    SFR                       (11)      (3)      (6)    (14)     (6)
    Specialty mortgage
     finance                   (9)     (10)      (4)     (5)     (7)
----------------------------------------------------------------------
    Total SFR charge offs     (20)     (13)     (10)    (19)    (13)
Second mortgage and
 other consumer:
  Banking subsidiaries        (21)     (16)     (12)    (16)    (12)
  Washington Mutual Finance   (43)     (41)     (36)    (34)    (33)
Commercial business           (26)     (38)     (19)    (12)     (4)
Commercial real estate:
  Other commercial
   real estate                 (2)       -       (5)     (3)     (3)
----------------------------------------------------------------------
   Total loans charged off   (112)    (108)     (82)    (84)    (65)
Recoveries of loans
 previously charged off:
  SFR                           -        -        -       1       1
----------------------------------------------------------------------
   Total SFR recoveries of
    loans previously
    charged off                 -        -        -       1       1
Second mortgage and
 other consumer:
  Banking subsidiaries          3        1        1       1       1
  Washington Mutual Finance     5        4        5       5       5
Commercial business             5        5        1       1       -
Commercial real estate:
  Other commercial real estate  -        1        -       1       -
----------------------------------------------------------------------
  Total recoveries of loans
   previously charged off      13       11        7       9       7
----------------------------------------------------------------------
  Net charge offs             (99)     (97)     (75)    (75)    (58)
----------------------------------------------------------------------
Balance, end of quarter   $ 1,621  $ 1,404  $ 1,295  $1,170  $1,158
======================================================================
Net charge offs (annualized)
 as a percentage of
 average loans              0.23%    0.25%    0.20%   0.20%   0.17%
Allowance as a percentage
 of total loans held
 in portfolio               1.11%    1.06%    0.97%   0.89%   0.87%


WM-14

                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)

                                        Mar. 31,    Dec. 31,  Mar. 31,
                                           2002        2001      2001
----------------------------------------------------------------------
Nonperforming Assets ("NPAs") and Restructured Loans
  Nonaccrual loans:
    SFR                                 $ 1,240     $ 1,041     $ 646
    Specialty mortgage finance              477         415       262
----------------------------------------------------------------------
      Total SFR nonaccrual loans          1,717       1,456       908
    SFR construction:
        Builder                              57          26        26
        Custom                               15          10         5
   Second mortgage and other consumer:
        Banking subsidiaries                 72          64        46
        Washington Mutual Finance            91          84        66
    Commercial business                     186         159        58
    Commercial real estate:
        Multi-family                         51          56        19
        Other commercial real estate        324         298       110
----------------------------------------------------------------------
       Total nonaccrual loans             2,513       2,153     1,238
  Foreclosed assets:
    SFR                                     126         107       108
    Specialty mortgage finance               70          69        31
----------------------------------------------------------------------
      Total SFR foreclosed assets           196         176       139
    SFR construction:
        Builder                               8           4         3
        Custom                                -           1         -
    Second mortgage and other consumer:
        Banking subsidiaries                 12          11        20
        Washington Mutual Finance             9           9         7
    Commercial business                      13          10         -
    Commercial real estate:
       Multi-family                           -           -         1
       Other commercial real estate          29          17        13
----------------------------------------------------------------------
       Foreclosed assets                    267         228       183
----------------------------------------------------------------------
       Total NPAs                       $ 2,780     $ 2,381   $ 1,421
       As a percentage of total assets    1.01%       0.98%     0.65%

   Restructured loans                     $ 101       $ 118     $ 245
----------------------------------------------------------------------
Total NPAs and restructured loans       $ 2,881     $ 2,499   $ 1,666
======================================================================


WM-15

                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)


We use interest rate contracts as tools to manage interest rate risk.
The following tables summarize the notional amounts, maturities and
weighted average interest rates and strike rates associated with these
contracts. Interest rate contracts that are embedded with certain
adjustable-rate borrowings, while not accounted for as derivatives
under SFAS No. 133, have been included in the tables since they also
function as interest rate risk management tools.


                                 March 31, 2002
----------------------------------------------------------------------
                                 Maturity Range
----------------------------------------------------------------------
               Total   2002     2003     2004    2005    2006   After
            Notional                                             2006
              Amount
----------------------------------------------------------------------
Interest Rate
Contracts:
 Asset/Liability
 Management

Pay-fixed swaps
 Contractual
  maturity   $15,608  $ 813   $5,586   $3,534   $ 280  $4,448   $ 947
 Weighted
  average
  pay rate     4.00%  4.65%    3.03%    4.46%   4.42%   4.39%   5.58%
 Weighted
  average
  receive rate 1.90%  1.89%    1.91%    1.89%   1.89%   1.89%   1.95%

Receive-fixed
swaps
 Contractual
  maturity   $ 4,628   $ 36    $ 620    $ 100   $ 560 $ 1,004 $ 2,308
 Weighted
  average
  pay rate     1.93%  4.11%    1.59%    2.02%   1.83%   1.91%   2.02%
 Weighted
  average
  receive rate 6.29%  4.19%    5.17%    1.99%   5.48%   6.80%   6.78%

Interest rate
caps/collars/
corridors
 Contractual
  maturity     $ 935  $ 359    $ 271    $ 191    $ 64    $ 50       -
 Weighted
  average
  strike rate  7.38%  7.34%    7.62%    8.14%   5.94%   5.25%       -

Payor swaptions
 Contractual
  maturity
  (option)   $ 5,000      -  $ 5,000        -       -       -       -
 Weighted
  average
  strike rate  6.12%      -    6.12%        -       -       -       -
 Contractual
  maturity (swap)  -      -        -        -       - $ 1,000 $ 4,000
 Weighted
  average
  strike rate      -      -        -        -       -   6.05%   6.14%

Embedded caps
 Contractual
  maturity     $ 683      -    $ 183    $ 500       -       -       -
 Weighted
  average
  strike rate  7.62%      -    7.25%    7.75%       -       -       -

Embedded payor
swaptions(1)
 Contractual
  maturity
  (option)   $ 6,400      -  $ 5,900    $ 500       -       -       -
 Weighted
  average
  strike rate  6.14%      -    6.13%    6.21%       -       -       -
 Contractual
  maturity (swap)  -      -        -        -       - $ 3,750 $ 2,650
 Weighted average
  strike rate      -      -        -        -       -   5.99%   6.34%
----------------------------------------------------------------------
Total asset/
liability
management  $ 33,254
======================================================================

MSR Risk Management

Receive-fixed swaps
 Contractual
  maturity   $ 6,300      -        -        -       -       - $ 6,300
 Weighted
  average
  pay rate     2.01%      -        -        -       -       -   2.01%
 Weighted
  average
  receive rate 6.02%      -        -        -       -       -   6.02%

Receiver swaptions
 Contractual
  maturity
  (option)   $ 1,500 $1,500        -        -       -       -       -
 Weighted
  average
  strike rate  5.88%  5.88%        -        -       -       -       -
 Contractual
  maturity (swap)  -      -        -        -       -       - $ 1,500
 Weighted average
  strike rate      -      -        -        -       -       -   5.88%

Embedded floors (2)
 Contractual
  maturity   $ 5,150      -        -        -   $ 650       - $ 4,500
 Weighted
  average
  strike
  rate         6.33%      -        -        -   5.13%       -   6.50%
----------------------------------------------------------------------
Total MSR
risk
management  $ 12,950
======================================================================

Total interest
rate
contracts   $ 46,204 (3)
======================================================================

(1) Embedded interest rate swaptions are exercisable upon maturity.

(2) At March 31, 2002, $650 million of these contracts were effective.
Contractual start dates for the remaining floors begin on March 18,
2003. Once effective, the floors reprice every three months.

(3) Interest rate contracts decreased net interest income by $37
million for the quarter ended March 31, 2002.


WM-16


                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)

                                    Dec. 31, 2001
----------------------------------------------------------------------
                                    Maturity Range
----------------------------------------------------------------------
               Total   2002     2003     2004    2005    2006   After
            Notional                                             2006
              Amount
----------------------------------------------------------------------
Interest Rate Contracts:
 Asset/Liability
 Management

Pay-fixed swaps
 Contractual
  maturity  $ 12,905 $2,914  $ 2,036  $ 2,534    $ 30 $ 4,448   $ 943
 Weighted
  average
  pay rate     4.82%  6.09%    3.78%    4.63%   7.15%   4.39%   5.58%
 Weighted
  average
  receive rate 2.18%  2.21%    2.23%    2.21%   2.11%   2.20%   1.75%

Receive-fixed swaps
 Contractual
  maturity   $ 3,627   $ 40    $ 120        -   $ 560 $ 1,005 $ 1,902
 Weighted
  average
  pay rate     2.05%  2.11%    1.95%        -   1.89%   2.01%   2.13%
 Weighted
  average
  receive rate 6.63%  7.17%    5.55%        -   5.48%   6.81%   6.94%

Interest rate
caps/collars/
corridors
 Contractual
  maturity     $ 835  $ 380    $ 214    $ 191       -    $ 50       -
 Weighted
  average
  strike rate  7.59%  7.47%    7.86%    8.14%       -   5.25%       -

Payor swaptions
 Contractual
  maturity
  (option)   $ 5,500  $ 500  $ 5,000        -       -       -       -
 Weighted
  average
  strike rate  6.11%  6.04%    6.12%        -       -       -       -
 Contractual
  maturity (swap)  -      -        -        -       - $ 1,000 $ 4,500
 Weighted
  average strike
  rate             -      -        -        -       -   6.05%   6.12%

Embedded caps
 Contractual
  maturity     $ 696      -    $ 196    $ 500       -       -       -
 Weighted
  average strike
  rate         7.60%      -    7.25%    7.75%       -       -       -

Embedded payor
swaptions (1)
 Contractual
  maturity
  (option)   $ 5,900      -  $ 5,900        -       -       -       -
 Weighted
  average
  strike rate  6.13%      -    6.13%        -       -       -       -
 Contractual
  maturity (swap)  -      -        -        -       - $ 3,750 $ 2,150
 Weighted
  average
  strike rate      -      -        -        -       -   5.99%   6.37%
----------------------------------------------------------------------
Total asset/
liability
management  $ 29,463
======================================================================

MSR Risk Management
 Embedded floors (2)
  Contractual
   maturity  $ 2,300      -        -        - $ 2,300       -       -
  Weighted
   average
   strike rate 5.12%      -        -        -   5.12%       -       -
----------------------------------------------------------------------
Total MSR
risk
management   $ 2,300
======================================================================
Total
interest
rate
contracts   $ 31,763 (3)
======================================================================

(1) Embedded interest rate swaptions are exercisable upon maturity.

(2) At December 31, 2001, $1.8 billion of these contracts were
effective. Contractual start dates for the remaining floors begin on
September 15, 2002. Once effective, the floors reprice every three
months.

(3) Interest rate contracts decreased net interest income by $34
million for the quarter ended December 31, 2001.

CONTACT: Washington Mutual
Media Contact:
Alan Gulick, 206/377-3637, alan.gulick@wamu.net
Investor Contacts:
JoAnn DeGrande, 206/461-3186, joann.degrande@wamu.net
Ruthanne King, 206/461-6421, ruthanne.king@wamu.net