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Washington Mutual Announces Record Quarterly Earnings and Continued Strong Operating Fundamentals; Board of Directors Increases Cash Dividend

To view a downloadable version of the third quarter earnings financial tables, click here.

SEATTLE--(BUSINESS WIRE)--Oct. 16, 2001--Washington Mutual, Inc. (NYSE:WM - news) today announced record third-quarter earnings of $832.3 million or 94 cents per diluted share. Earnings for third-quarter 2000 were $452.5 million or 57 cents per diluted share.

Earnings for the third quarter of 2001 included full-quarter results from the former Fleet Mortgage Corp., which was acquired on June 1, 2001, as well as the former mortgage operations of The PNC Financial Services Group, Inc. and Bank United Corp. These acquisitions were accounted for as purchase transactions; therefore, the operating results of the acquired institutions are not included in prior periods.

Highlights of the recent quarter include:

A return on common equity of 23.64 percent; A 76 percent increase in net interest income over last year driven by a substantially improved net interest margin and the contribution of the company's recent acquisitions; Strong gains from mortgage loans of $275.4 million, as well as gains of $317.1 million from securities and $124.9 million ($75.4 million after-tax) from the liquidation of interest rate hedges, reflecting the company's natural business hedging and interest rate management strategies; Strong noninterest income, including a 30 percent increase in depositor and other retail banking fees; Record loan volume of $47.22 billion, including a 201 percent increase in single-family residential (SFR) loan volume and a 16 percent increase in other loan volume, year over year and including the company's recent acquisitions; Record checking account growth of more than 197,000; An operating efficiency ratio of 41.29 percent. ``Despite the slowing economy and the effects of the tragedies of Sept. 11, Washington Mutual posted an impressive quarter,'' said Kerry Killinger, the company's chairman, president and CEO.

``Low interest rates continued to have a positive effect on our net interest margin and contributed to extraordinarily strong growth in fee income generated from the sale of fixed-rate residential mortgages originated by our company,'' said Killinger. ``We also continued to generate solid results in other key areas of business, including account and household growth, loan originations and noninterest income generated from retail banking fees.

``In light of the slowing economy, we also took steps to further strengthen loan loss reserves and adjusted our loan underwriting criteria in selected geographic markets.''

BOARD INCREASES CASH DIVIDEND

The board declared a cash dividend of 24 cents on the company's common stock, up from 23 cents in the previous quarter. Dividends on the common stock are payable Nov. 15, 2001 to shareholders of record as of Oct. 31, 2001. 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 Nov. 16, 2001, to shareholders of record as of Nov. 15, 2001.

THIRD-QUARTER RESULTS

Net Interest and Noninterest Income Grow

Reflecting the improved net interest margin, which was driven primarily by a 75-basis-point reduction in the Federal funds rate during the period, net interest income increased 76 percent to $1.82 billion in the third quarter versus $1.03 billion a year earlier.

The net interest spread for the quarter increased to 3.57 percent, compared with 2.19 percent for the same period last year and 3.16 percent in the second quarter of this year, reflecting the company's reduced cost of borrowings. Likewise, the margin was 3.53 percent in the most recent quarter versus 2.31 percent for third quarter 2000 and 3.21 percent in the second quarter of 2001.

Depositor and other retail banking fees were a record $333.4 million, up 30 percent from $256.4 million a year earlier. During the third quarter, the company added 197,329 net new retail checking accounts.

Despite the weakening stock market, securities fees and commissions totaled $77.9 million for the third quarter of 2001, very near the $78.4 million generated for the same period one year ago.

The company's loan servicing operations generated a net loss of $451.5 million, which reflected a $554.2 million addition to the impairment reserve for mortgage servicing rights (MSRs). However, Washington Mutual's natural business and interest rate risk management strategies produced gains that exceeded the amount of the MSR impairment.

Gain from mortgage loans in the third quarter of 2001 totaled $275.4 million, compared with $55.5 million a year ago. The company also recognized a gain of $317.1 million from securities during the most recent quarter, versus $9.3 million for the same period last year. In addition, Washington Mutual liquidated a portion of its portfolio of interest rate hedges, which resulted in a pre-tax gain, accounted for as an extraordinary item, of $124.9 million ($75.4 million after-tax).

``Our strategy of combining the natural business hedge that results from the strength of our mortgage operations with instruments that we've purchased for interest rate protection is proving to be successful in the current operating environment,'' Killinger noted.

Lending

Robust refinancing activity contributed to record total loan volume of $47.22 billion for the quarter, up 164 percent from $17.89 billion one year ago.

Including the results from recently acquired companies, SFR loan volume (excluding residential construction) was $43.09 billion, up more than 200 percent from $14.32 billion one year ago. Reflecting the current interest rate environment, 77 percent of the third-quarter's SFR volume (excluding specialty mortgage finance and residential construction) represented fixed-rate mortgages versus last year's 14 percent. In addition, 60 percent of the SFR mortgage loan volume (excluding residential construction) represented refinance activity, compared with last year's 26 percent.

Lending volume for loans other than SFR totaled $4.13 billion for the most recent quarter, up 16 percent over $3.57 billion in the third quarter of 2000.

Efficiency Ratio Improves

The efficiency ratio (defined as noninterest expense, excluding amortization of goodwill and other intangible assets, as a percentage of net interest income, noninterest income and extraordinary items) was 41.29 percent in the most recent quarter.

Reflecting the addition of the operations of recently acquired companies, noninterest expense totaled $1.15 billion in the third quarter of 2001, compared with third-quarter 2000's figure of $784.7 million.

Company Focuses on Credit Quality

Killinger said that credit quality, a key focus for Washington Mutual, remains strong and that the company continues to closely monitor it given the slowing national economy. Total nonperforming assets (NPAs) were $2.03 billion at Sept. 30, 2001, versus $1.60 billion at June 30, 2001. Total NPAs represented 0.91 percent of total assets at the end of the third quarter of 2001.

Reflecting the company's larger and more diversified balance sheet and the slowing national economy, the provision for loan and lease losses was $200.0 million for the third quarter of 2001, versus $47.6 million for the same period in the previous year. Net loan charge offs for the third quarter were $74.8 million, versus $42.9 million a year earlier, but down from the second quarter 2001 level of $75.6 million. At Sept. 30, 2001, the allowance for loan and lease losses totaled $1.29 billion as compared with $1.01 billion at Sept. 30, 2000.

Balance Sheet and Capital Management

Consolidated assets at Sept. 30, 2001 were $223.64 billion, compared with $229.30 billion at June 30, 2001 and $190.78 billion at Sept. 30, 2000.

At Sept. 30, 2001, transaction account balances, including checking, savings and money market deposits, represented 60 percent of total deposits, compared with 55 percent at Sept. 30, 2000. Total deposits were $99.73 billion at the end of the third quarter, up from $96.95 billion at June 30, 2001.

Stockholders' equity at Sept. 30, 2001 was $14.53 billion and the capital ratios of Washington Mutual's banking subsidiaries continued to exceed regulatory requirements for classification as ``well-capitalized,'' the highest regulatory standard.

Company Updates

During the quarter the company continued preparations for its planned acquisition of Dime Bancorp (NYSE:DME - news). The transaction, unaffected by the tragic events of Sept. 11, is expected to be completed in January 2002, pending approval by Dime's shareholders and regulatory authorities. Dime's Special Meeting of Shareholders will be convened on Nov. 27, 2001. On Sept. 5, Washington Mutual announced the largest-ever community lending commitment by pledging $375 billion over the next 10 years, more than tripling its 1998 commitment to the low- to moderate-income communities it serves. The new commitment is scheduled to begin in 2002 for communities throughout the United States.

Killinger said at the time of the announcement, ``Our continued success as one of America's leading financial services companies provides us with the opportunity to set even higher community service standards for the future. Today, we continue our more than 100-year legacy of making the communities we serve better places to live, work and do business. After carefully assessing the continued growth of our company and the anticipated level of lending resulting from a successful merger with Dime Bancorp, we're confident that we can raise the bar in support of our communities.''

Outlook

``While it appears that the U.S. economy has entered a recession, we believe that our company is well positioned to compete in a variety of economic conditions given our capital position, the strength of our operating fundamentals and the composition of our balance sheet,'' said Killinger. ``Consequently, we anticipate producing solid results in the year ahead.''

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 Sept. 30, 2001, Washington Mutual and its subsidiaries had consolidated assets of $223.64 billion. Washington Mutual currently operates approximately 2,300 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 Wed., Oct. 17 at 10:30 a.m. Eastern Time at www.wamu.com or via phone at 888.391.7808, passcode ``WaMu.''



                        Washington Mutual, Inc.
                   Consolidated Statements of Income
             (dollars in millions, except per share data)
                              (Unaudited)
                                            Quarter Ended
----------------------------------------------------------------------
                                  Sept. 30,     June 30,   Sept. 30,
                                    2001          2001       2000
----------------------------------------------------------------------
Interest Income
 Loans                           $ 2,807.8     $2,924.3    $2,396.4
 Available-for-sale ("AFS")
  securities                         825.2        940.4       703.4
 Held-to-maturity ("HTM")
  securities                           --           --        325.8
 Other interest and dividend
  income                              56.8         71.7        59.3
----------------------------------------------------------------------
  Total interest income            3,689.8      3,936.4     3,484.9
Interest Expense
 Deposits                            734.9        823.3       844.3
 Borrowings                        1,139.4      1,439.6     1,606.6
----------------------------------------------------------------------
   Total interest expense          1,874.3      2,262.9     2,450.9
----------------------------------------------------------------------
    Net interest income            1,815.5      1,673.5     1,034.0
Provision for loan and
 lease losses                        200.0         92.4        47.6
----------------------------------------------------------------------
   Net interest income after
    provision for loan and
    lease losses                   1,615.5      1,581.1       986.4
Noninterest Income
 Depositor and other
  retail banking fees                333.4        325.3       256.4
 Securities fees and
  commissions                         77.9         76.3        78.4
 Insurance fees and
  commissions                         11.8         12.4        10.7
 Loan servicing income
  (expense)                         (451.5)        (9.5)       37.7
 Loan related income                  93.1         91.8        30.1
 Gain from mortgage loans            275.4        214.9        55.5
 Gain (loss) from securities         317.1         31.9         9.3
 Other income                         81.1         61.8        32.8
----------------------------------------------------------------------
  Total noninterest income           738.3        804.9       510.9
Noninterest Expense
 Compensation and benefits           507.6        465.9       339.0
 Occupancy and equipment             202.2        189.7       145.5
 Telecommunications and
  outsourced information services    110.6        104.7        82.0
 Depositor and other retail
  banking losses                      37.1         32.9        27.6
 Amortization of goodwill and
  other intangible assets             48.2         42.9        26.9
 Other expense                       248.6        282.6       163.7
----------------------------------------------------------------------
  Total noninterest expense        1,154.3      1,118.7       784.7
----------------------------------------------------------------------
   Income before income taxes
    and extraordinary item         1,199.5      1,267.3       712.6
Income taxes                         442.6        469.1       260.1
----------------------------------------------------------------------
Income before extraordinary
 item                                756.9        798.2       452.5
Extraordinary item - gain on
 early extinguishment of debt,
  net of taxes of $49.5 million       75.4          --          --
----------------------------------------------------------------------
Net Income                       $   832.3     $  798.2    $  452.5
======================================================================
Net Income Attributable to
 Common Stock                    $   830.5     $  796.4    $  452.5
======================================================================

Basic earnings per common share:
  Income before
   extraordinary item            $    0.88     $   0.93    $   0.57
  Extraordinary item                  0.09          --          --
  Net income                          0.97         0.93        0.57

Diluted earnings per common share:
  Income before
   extraordinary item            $    0.85     $   0.91    $   0.57
  Extraordinary item                  0.09          --          --
  Net income                          0.94         0.91        0.57

Basic weighted average number
 of common shares outstanding
 (in thousands)                    859,497      857,912     790,345
Diluted weighted average
 number of common shares
 outstanding (in thousands)        879,374      872,762     793,332


                                       Nine Months Ended
----------------------------------------------------------------------
                                   Sept. 30,        Sept. 30,
                                     2001             2000
----------------------------------------------------------------------
Interest Income
 Loans                             $8,543.2         $6,855.1
 Available-for-sale ("AFS")
  securities                        2,797.3          2,098.3
 Held-to-maturity ("HTM")
  securities                            --             998.1
 Other interest and dividend
  income                              199.4            199.1
----------------------------------------------------------------------
  Total interest income            11,539.9         10,150.6
Interest Expense
 Deposits                           2,445.0          2,435.2
 Borrowings                         4,246.9          4,504.8
----------------------------------------------------------------------
   Total interest expense           6,691.9          6,940.0
----------------------------------------------------------------------
    Net interest income             4,848.0          3,210.6
Provision for loan and
 lease losses                         374.7            132.8
----------------------------------------------------------------------
   Net interest income after
    provision for loan and
    lease losses                    4,473.3          3,077.8
Noninterest Income
 Depositor and other
  retail banking fees                 937.5            707.2
 Securities fees and
  commissions                         226.4            244.5
 Insurance fees and
  commissions                          36.5             33.0
 Loan servicing income
  (expense)                          (468.2)           110.1
 Loan related income                  240.5             83.1
 Gain from mortgage loans             677.3            197.4
 Gain (loss) from securities          419.3            (14.0)
 Other income                         223.7             72.9
----------------------------------------------------------------------
  Total noninterest income          2,293.0          1,434.2
Noninterest Expense
 Compensation and benefits          1,389.5          1,004.9
 Occupancy and equipment              575.6            446.1
 Telecommunications and
  outsourced information services     321.7            236.3
 Depositor and other retail
  banking losses                       99.5             76.3
 Amortization of goodwill and
  other intangible assets             127.1             80.8
 Other expense                        772.6            460.2
----------------------------------------------------------------------
  Total noninterest expense         3,286.0          2,304.6
----------------------------------------------------------------------
   Income before income taxes
    and extraordinary item          3,480.3          2,207.4
Income taxes                        1,284.2            805.7
----------------------------------------------------------------------
Income before extraordinary
 item                               2,196.1          1,401.7
Extraordinary item - gain on
 early extinguishment of debt,
  net of taxes of $49.5 million        75.4              --
----------------------------------------------------------------------
Net Income                         $2,271.5         $1,401.7
======================================================================
Net Income Attributable to
 Common Stock                      $2,266.7         $1,401.7
======================================================================

Basic earnings per common share:
  Income before
   extraordinary item              $   2.58         $   1.74
  Extraordinary item                   0.09              --
  Net income                           2.67             1.74

Diluted earnings per common share:
  Income before
   extraordinary item              $   2.54         $   1.74
  Extraordinary item                   0.09              --
  Net income                           2.63             1.74

Basic weighted average number
 of common shares outstanding
 (in thousands)                     848,301          805,450
Diluted weighted average
 number of common shares
 outstanding (in thousands)         863,206          807,468


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

----------------------------------------------------------------------
                                  Nine Months Ended  Nine Months Ended
                                     Sept. 30, 2001     Sept. 30, 2000
----------------------------------------------------------------------
Stockholders' Equity Rollforward
Balance, beginning of period             $10,165.5       $9,052.7
Net income                                 2,271.5        1,401.7
Cash dividends declared on common stock     (563.7)        (463.9)
Cash dividends declared on redeemable
 preferred stock                              (4.8)             -
Common stock issued to acquire
 Bank United Corp.                         1,389.0              -
Common stock issued                          178.7           47.4
Common stock repurchased and retired             -         (869.0)
Common stock warrants issued,
 net of costs                                398.4              -
Other comprehensive income, net of tax       694.2          160.3
----------------------------------------------------------------------
Balance, end of period                   $14,528.8       $9,329.2
======================================================================


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

                                          Quarter Ended
----------------------------------------------------------------------
                              Sept. 30, 2001          June 30, 2001
                            Balance       Rate      Balance      Rate
----------------------------------------------------------------------
Average Balances and Weighted
Average Interest Rates
 Assets
 Loans                   $ 151,930.2     7.38%    $ 148,704.0    7.87%
 Mortgage-backed
  securities  ("MBS")       37,862.9     6.83       43,050.8     7.26
 Investment securities
  and other                 17,006.1     5.54       15,793.8     5.86
-------------------------------------            ------------
 Total interest-earning
  assets                   206,799.2     7.13      207,548.6     7.59
 Other assets               21,657.7                16,293.1
-------------------------------------            ------------
 Total assets            $ 228,456.9             $ 223,841.7
=====================================            ============

Liabilities
Deposits:
 Checking accounts       $ 24,746.6      0.23     $ 20,855.8     0.43
 Savings accounts and
  money market
  deposit accounts
   ("MMDAs")               35,424.7      2.77       36,579.8     3.25
   Time deposit accounts   39,004.7      4.82       37,393.4     5.41
-------------------------------------            ------------
Total deposits             99,176.0      2.94       94,829.0     3.48
Borrowings:
 Securities sold under
  agreements to repurchase
  ("repurchase
    agreements")           27,353.3      3.29       30,295.1     4.45
 Advances from Federal
  Home Loan Banks
  ("FHLBs")                62,614.1      4.17       62,240.5     5.29
 Federal funds purchased
  and commercial paper      4,309.3      3.71        4,661.0     4.56
 Other                     15,458.5      5.51       12,813.5     7.20
-------------------------------------            ------------
  Total borrowings        109,735.2      4.12      110,010.1     5.25
-------------------------------------            ------------
  Total interest-bearing
   liabilities            208,911.2      3.56      204,839.1     4.43
 Other liabilities          5,492.0                  6,116.1
-------------------------------------            ------------
  Total liabilities       214,403.2                210,955.2
Stockholders' Equity       14,053.7                 12,886.5
-------------------------------------            ------------
Total liabilities and
  stockholders' equity  $ 228,456.9              $ 223,841.7
=====================================            ============

Net interest spread                      3.57                    3.16
Net interest margin                      3.53                    3.21


                                                    Quarter Ended
----------------------------------------------------------------------
                                                     Sept. 30, 2000
                                                   Balance       Rate
----------------------------------------------------------------------
Average Balances and Weighted
Average Interest Rates
 Assets
 Loans                                           $ 118,399.2     8.09%
 Mortgage-backed
  securities  ("MBS")                               58,102.3     7.00
 Investment securities
  and other                                          4,398.4     6.46
-------------------------------------            ------------

 Total interest-earning
  assets                                           180,899.9     7.70
 Other assets                                        7,114.6
-------------------------------------            ------------
 Total assets                                    $ 188,014.5
=====================================            ============

Liabilities
Deposits:
 Checking accounts                                $ 14,285.7     0.45
 Savings accounts and
  money market
  deposit accounts
   ("MMDAs")                                        29,698.6     4.17
   Time deposit accounts                            35,965.2     5.72
-------------------------------------            ------------
Total deposits                                      79,949.5     4.20
Borrowings:
 Securities sold under
  agreements to repurchase
  ("repurchase
    agreements")                                    28,707.6     6.47
 Advances from Federal
  Home Loan Banks
  ("FHLBs")                                         56,710.5     6.53
 Federal funds purchased
  and commercial paper                               4,555.5     6.69
 Other                                               6,930.7     7.63
-------------------------------------            ------------
  Total borrowings                                  96,904.3     6.60
-------------------------------------            ------------
  Total interest-bearing
   liabilities                                     176,853.8     5.51
 Other liabilities                                   2,348.8
-------------------------------------            ------------
  Total liabilities                                179,202.6
Stockholders' Equity                                 8,811.9
-------------------------------------            ------------
Total liabilities and
  stockholders' equity                           $ 188,014.5
=====================================            ============

Net interest spread                                              2.19
Net interest margin                                              2.31


                                           Nine Months Ended
----------------------------------------------------------------------
                              Sept. 30, 2001           Sept. 30, 2000
                            Balance       Rate       Balance      Rate
----------------------------------------------------------------------
Average Balances and Weighted
Average Interest Rates
  Assets
  Loans                     $ 146,086.8  7.80%   $ 116,103.8     7.87%
  MBS                          44,882.0  7.08       59,220.6     6.90
  Investment securities
   and other                   14,144.7  5.78        4,397.8     6.98
----------------------------------------         ------------
  Total interest-earning
   assets                     205,113.5  7.50      179,722.2     7.53
  Other assets                 16,832.8              6,319.6
----------------------------------------         ------------
  Total assets               $ 221,946.3         $ 186,041.8
========================================         ============

  Liabilities
  Deposits:
   Checking accounts         $ 21,131.8  0.41     $ 14,059.8     0.46
   Savings accounts and
    MMDAs                      34,145.9  3.27       29,672.4     3.99
   Time deposit accounts       38,848.5  5.32       36,684.6     5.46
----------------------------------------         ------------
  Total deposits               94,126.2  3.47       80,416.8     4.05
  Borrowings:
   Repurchase agreements       29,550.3  4.63       28,081.8     6.49
   Advances from FHLBs         63,697.6  5.06       57,246.0     6.25
   Federal funds purchased
    and commercial paper        4,685.3  4.76        3,000.6     6.09
   Other                       12,929.1  6.68        6,524.1     6.69
----------------------------------------         ------------
   Total borrowings           110,862.3  5.12       94,852.5     6.34
----------------------------------------         ------------
    Total interest-bearing
     liabilities              204,988.5  4.36      175,269.3     5.29
  Other liabilities             4,149.4              2,025.0
----------------------------------------         ------------
  Total liabilities           209,137.9            177,294.3
  Stockholders' Equity         12,808.4              8,747.5
----------------------------------------         ------------
  Total liabilities and
   stockholders' equity     $ 221,946.3          $ 186,041.8
========================================         ============

  Net interest spread                    3.14                    2.24
  Net interest margin                    3.14                    2.37


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

                                  Sept. 30,     Dec. 31,     Sept. 30,
                                    2001         2000          2000
----------------------------------------------------------------------
Assets
 Cash and cash equivalents        $ 3,723.2    $ 2,621.8    $ 2,218.4
 AFS securities:
  MBS                              37,217.2     40,348.4     39,754.2
  Investment securities            10,662.2      1,810.4        468.9
 HTM securities:
  MBS                                     -     16,428.1     17,138.4
  Investment securities                   -        136.5        136.7
 Loans held for sale               18,035.2      3,403.9      6,185.8
 Loans:
  Loans held in portfolio         132,899.6    119,626.1    115,054.3
  Allowance for loan and
   lease losses                    (1,294.7)    (1,013.8)    (1,011.8)
----------------------------------------------------------------------
 Total loans held in
  portfolio, net of allowance for
  loan and lease losses            131,604.9   118,612.3    114,042.5
  Mortgage servicing rights
   ("MSR")                           6,720.5     1,017.3        899.3
  Investment in Federal Home Loan
   Banks ("FHLBs")                   3,821.9     3,260.1      3,195.9
  Goodwill and other
   intangible assets                 2,376.4     1,083.7      1,108.6
  Other assets                       9,476.2     5,993.5      5,631.5
----------------------------------------------------------------------
       Total assets              $ 223,637.7 $ 194,716.0  $ 190,780.2
======================================================================

Liabilities
 Deposits:
    Checking accounts             $ 25,575.3 $  14,499.8  $  14,656.6
    Savings accounts and MMDAs      34,599.1    30,655.8     29,843.8
    Time deposit accounts           39,558.7    34,418.2     35,952.9
----------------------------------------------------------------------
      Total deposits                99,733.1    79,573.8     80,453.3
 Federal funds purchased and
  commercial paper                   4,471.7     4,114.7      3,913.7
 Securities sold under agreements
  to repurchase
  ("repurchase agreements")         18,675.1    29,756.1     30,588.9
 Advances from FHLBs                65,623.3    57,854.9     56,938.4
 Other borrowings                   15,682.3     9,930.3      6,907.2
 Other liabilities                   4,923.4     3,320.7      2,649.5
----------------------------------------------------------------------
      Total liabilities            209,108.9   184,550.5    181,451.0
Stockholders' equity                14,528.8    10,165.5      9,329.2
----------------------------------------------------------------------
Total liabilities and
 stockholders' equity             $ 223,637.7 $194,716.0  $ 190,780.2
======================================================================

Common shares outstanding at end
 of period (in thousands) (1)         879,831    809,784      808,623
Book value per common share            $16.86     $12.84       $11.80
Tangible book value
  per common share                      14.57      11.66        10.59

Full-time equivalent employees at
  end of period (actual amount)        37,830     28,798       28,428

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


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

Note: The following analysis of reported and operating earnings is
based upon the Company's opinion and is intended to provide the user
additional information about the Company's operations. It is not
intended to replace traditional financial statement disclosures in
accordance with generally accepted accounting principles and may not
be comparable to similarly titled measures reported by other
companies.

                              Quarter Ended          Nine Months Ended
----------------------------------------------------------------------
                      Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
                          2001     2001      2000      2001      2000
----------------------------------------------------------------------
Reported Financial
 Results

 Net income               $ 832.3  $ 798.2 $ 452.5  $2,271.5 $1,401.7
 Net income per
   common share            $ 0.97   $ 0.93  $ 0.57    $ 2.67   $ 1.74
 Net income per diluted
   common share              0.94     0.91    0.57      2.63     1.74

   Financial ratios on
    reported financial
    results:
   Return on average
    assets                  1.46%    1.43%   0.96%     1.36%    1.00%
   Return on average
    common equity          23.64    24.72   20.54     23.60    21.37
   Efficiency ratio,
     excluding
     amortization
     of goodwill and
     other intangible
     assets                 41.29    43.40   49.06     43.48    47.88
   Efficiency ratio,
     including
     amortization
     of goodwill and
     other intangible
     assets                 43.09    45.14   50.80     45.23    49.62

Earnings from Operations,
Excluding Amortization of
Goodwill and Other
Intangible Assets

 Net income attributable
   to common stock        $ 830.5  $ 796.4 $ 452.5  $2,266.7 $1,401.7
 Total amortization of
      goodwill and other
      intangible assets      48.2     42.9    26.9     127.1     80.8
     Income tax expense      (6.6)    (8.8)   (6.3)    (21.5)   (18.5)
----------------------------------------------------------------------
 Amortization of goodwill
    and other intangible
     assets, net of tax      41.6     34.1    20.6     105.6     62.3
----------------------------------------------------------------------
Earnings from operations,
   excluding amortization
   of goodwill and
   other intangible
   assets                 $ 872.1  $ 830.5 $ 473.1  $2,372.3 $1,464.0
======================================================================

Earnings per diluted
  common share, excluding
  amortization of
  goodwill and other
  intangible assets        $ 0.99   $ 0.95  $ 0.60    $ 2.75   $ 1.82

Financial ratios on
earnings from operations:
   Return on average
     assets                 1.53%    1.49%   1.01%     1.43%    1.05%
   Return on average
     common equity         24.82    25.78   21.48     24.70    22.31

----------------------------------------------------------------------
                                     Quarter Ended   Nine Months Ended
                                    Sept. 30, 2001      Sept. 30, 2001
----------------------------------------------------------------------
Pro Forma (1)
Income before income taxes and
 extraordinary item, excluding
 amortization of goodwill               $ 1,239.0            $3,582.3
Income tax expense                         (445.8)           (1,296.0)
----------------------------------------------------------------------
Net income before extraordinary
 item, excluding amortization
 of goodwill                                793.2             2,286.3
Extraordinary item, net of taxes             75.4                75.4
Redeemable preferred stock dividends         (1.8)               (4.8)
----------------------------------------------------------------------
Net income attributable to
  common stock, excluding
  amortization of goodwill                $ 866.8            $2,356.9
======================================================================

Earnings per diluted common
 share, excluding amortization
 of goodwill                               $ 0.99              $ 2.73

(1) Represents pro forma impact to quarter-to-date and year-to-date
    September 30, 2001 net income assuming application of the recently
    issued business combinations accounting standard, which eliminates
    the amortization of goodwill from net income.


                        Washington Mutual, Inc.
                    Selected Financial Information
                              (unaudited)

                                            Sept. 30,        Dec. 31,
                                               2001            2000
----------------------------------------------------------------------
Capital Adequacy
  Stockholders' equity/total assets            6.50%           5.22%
  Stockholders' equity (1)/total assets (1)    6.24            5.24
  Tangible common equity (1)(2)                5.41            4.79
  Estimated total risk-based capital (3)      12.31           11.07

(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.


                              Sept. 30,       June 30,       Sept. 30,
                                 2001           2001            2000
----------------------------------------------------------------------
Retail Checking Accounts (4)
    WMB and WMBfsb            1,118,479      1,098,588      1,057,124
    WMB, FA                   4,501,229      4,323,791      3,645,811
----------------------------------------------------------------------
Total retail checking
 accounts                     5,619,708      5,422,379      4,702,935
======================================================================

Retail Checking Account Activity (4)
 Net accounts opened during the quarter:

   WMB and WMBfsb                19,891         19,019         16,274
   WMB, FA                      177,438        163,931        125,426
----------------------------------------------------------------------
  Net new retail checking
   accounts                     197,329        182,950        141,700
======================================================================

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

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

                                              Quarter Ended
----------------------------------------------------------------------
                                    Sept. 30,   June 30,    Sept. 30,
                                       2001       2001        2000
----------------------------------------------------------------------

Loan Volume
 Single-family residential ("SFR"):
      Adjustable rate ("ARMs")     $  9,120.3  $  7,968.4  $ 10,329.8
      Fixed rate                     30,781.0    26,315.9     1,638.9
      Specialty mortgage finance      3,185.8     2,986.7     2,351.3
----------------------------------------------------------------------
      Total SFR loan volume          43,087.1    37,271.0    14,320.0
  SFR - construction                    285.6     1,086.9       466.8
  Second mortgage and other consumer:
      Banking subsidiaries            2,280.1     2,164.7     1,381.5
      Washington Mutual Finance         499.5       504.9       580.2
  Commercial business                   572.7       819.5       738.7
  Commercial real estate:
     Apartment buildings                424.3       587.9       305.7
     Other commercial real estate        69.8       229.7        99.9
----------------------------------------------------------------------
     Total loan volume             $ 47,219.1  $ 42,664.6  $ 17,892.8
======================================================================

Loan Volume by Channel
   Originated                      $ 26,791.1  $ 28,790.5  $ 15,576.1
   Purchased                          4,835.9     4,722.1     1,531.0
   Correspondent                     15,592.1     9,152.0       785.7
----------------------------------------------------------------------
      Total loan volume by channel $ 47,219.1  $ 42,664.6  $ 17,892.8
======================================================================

Refinancing Activity
  SFR:
      ARMs                         $  6,937.0  $  5,418.6  $  3,369.1
      Fixed rate                     18,805.3    17,894.8       296.3
  SFR - construction                      7.0        10.3         3.3
  Commercial real estate                364.3       499.5       256.9
----------------------------------------------------------------------
       Total refinances            $ 26,113.6  $ 23,823.2  $  3,925.6
======================================================================

SFR Loan Originations (1)
  Short-term ARMs:
     Treasury indices              $  5,874.5  $  5,589.0  $  6,604.0
     COFI                               501.5       418.4     2,624.2
     Other                               60.0         1.4        12.3
----------------------------------------------------------------------
       Total short-term ARMs          6,436.0     6,008.8     9,240.5
  Medium-term ARMs                    2,456.5     1,861.7       310.9
  Fixed-rate mortgages               12,301.1    14,109.0     1,631.6
----------------------------------------------------------------------
      Total SFR loan originations  $ 21,193.6  $ 21,979.5  $ 11,183.0
======================================================================

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

                                             Nine Months Ended
----------------------------------------------------------------------
                                        Sept. 30,         Sept. 30,
                                           2001             2000
----------------------------------------------------------------------

Loan Volume
 Single-family residential ("SFR"):
      Adjustable rate ("ARMs")         $ 24,333.6        $ 28,519.4
      Fixed rate                         68,257.9           3,770.4
      Specialty mortgage finance          8,405.5           6,588.4
----------------------------------------------------------------------
      Total SFR loan volume             100,997.0          38,878.2
  SFR - construction                      2,569.6           1,435.3
  Second mortgage and other consumer:
      Banking subsidiaries                5,779.8           3,577.6
      Washington Mutual Finance           1,453.4           1,754.2
  Commercial business                     2,148.4           1,888.9
  Commercial real estate:
     Apartment buildings                  1,492.5           1,189.7
     Other commercial real estate           479.5             233.8
----------------------------------------------------------------------
     Total loan volume                 $114,920.2        $ 48,957.7
======================================================================

Loan Volume by Channel
   Originated                          $ 75,990.3        $ 43,596.8
   Purchased                             11,426.3           4,001.0
   Correspondent                         27,503.6           1,359.9
----------------------------------------------------------------------
       Total loan volume by channel    $114,920.2        $ 48,957.7
======================================================================

Refinancing Activity
  SFR:
      ARMs                             $ 16,676.7         $ 9,474.6
      Fixed rate                         42,990.7             766.9
  SFR - construction                         23.5              15.4
  Commercial real estate                  1,117.0             798.3
----------------------------------------------------------------------
       Total refinances                $ 60,807.9        $ 11,055.2
======================================================================

SFR Loan Originations (1)
  Short-term ARMs:
     Treasury indices                  $ 16,691.5        $ 19,145.0
     COFI                                 1,433.6           4,601.4
     Other                                   63.9              16.0
----------------------------------------------------------------------
       Total short-term ARMs             18,189.0          23,762.4
  Medium-term ARMs                        5,629.8           3,497.6
  Fixed-rate mortgages                   34,387.3           3,750.4
----------------------------------------------------------------------
       Total SFR loan originations     $ 58,206.1        $ 31,010.4
======================================================================

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


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

                    Change from
                  June 30, 2001    Sept. 30,     June 30,    Sept. 30,
              to Sept. 30, 2001        2001         2001         2000
----------------------------------------------------------------------
Loans by Property Type and MBS
 Loans held in
  portfolio:
   SFR                 $ 293.2   $ 82,173.5   $ 81,880.3   $ 77,006.6
   Specialty
    mortgage finance     905.8      9,195.9      8,290.1      6,187.0
----------------------------------------------------------------------
    Total SFR loans    1,199.0     91,369.4     90,170.4     83,193.6
    SFR - construction   (44.6)     2,744.9      2,789.5      1,413.8
    Second mortgage
     and other consumer:
     Banking
      subsidiaries       521.2     10,202.4      9,681.2      7,496.5
     Washington
      Mutual Finance      32.2      2,550.4      2,518.2      2,413.9
    Commercial business  210.4      5,284.7      5,074.3      2,075.9
    Commercial real estate:
     Apartment
      buildings         (418.2)    16,162.6     16,580.8     15,588.4
     Other commercial
      real estate       (151.4)     4,585.2      4,736.6      2,872.2
----------------------------------------------------------------------
  Total loans held
   in portfolio        1,348.6    132,899.6    131,551.0    115,054.3
  Less: allowance
   for loan and
   lease losses         (125.2)    (1,294.7)    (1,169.5)    (1,011.8)
  Loans securitized
   and retained
   as MBS             (3,509.7)    25,008.7     28,518.4     33,416.1
----------------------------------------------------------------------
   Total net loans held in
    portfolio and loans
    securitized and
    retained as MBS   (2,286.3)   156,613.6    158,899.9    147,458.6
  Loans held for sale (2,017.5)    18,035.2     20,052.7      6,185.8
----------------------------------------------------------------------
   Total net loans and loans
    securitized and
    retained as MBS   (4,303.8)   174,648.8    178,952.6    153,644.4
  Purchased MBS         (302.3)    12,208.5     12,510.8     23,476.5
----------------------------------------------------------------------
   Total net loans
    and MBS         $ (4,606.1)  $186,857.3   $191,463.4   $177,120.9
======================================================================


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

                                     June 30, 2001       Dec. 31, 2000
                                 to Sept. 30, 2001   to Sept. 30, 2001
----------------------------------------------------------------------
Rollforward of Loans Held for Sale
 Balance, beginning of period              $ 20,052.7     $  3,403.9
  Loans added through acquisitions                --        10,385.1
  Loans originated and purchased             34,532.3       80,028.0
  Loans transferred to loans
   held in portfolio                           (130.4)      (1,209.5)
  Loans sold or securitized                 (35,901.0)     (72,247.0)
  Loan payments and other                      (518.4)      (2,325.3)
----------------------------------------------------------------------
 Change in loans                             (2,017.5)      14,631.3
----------------------------------------------------------------------
 Balance, end of period                    $ 18,035.2     $ 18,035.2
======================================================================

Rollforward of Loans Held in Portfolio
 Balance, beginning of period              $131,551.0     $119,626.1
  Loans added through acquisitions                --        12,333.7
  Loans originated and purchased             12,686.8       34,892.2
  Loans transferred from
   loans held for sale                          130.4        1,209.5
  Loans securitized                               --          (704.0)
  Loan payments and other                   (11,468.6)     (34,457.9)
----------------------------------------------------------------------
 Change in loans                              1,348.6       13,273.5
----------------------------------------------------------------------
 Balance, end of period                    $132,899.6     $132,899.6
======================================================================

Rollforward of Mortgage
 Servicing Rights ("MSR")
  Balance, beginning of period             $  6,799.1     $  1,017.3
   Additions through acquisitions                 --         4,823.4
   Additions                                    884.4        2,312.9
   Amortization                                (293.5)        (625.6)
   Impairment adjustment                       (554.2)        (692.2)
   Sales                                       (115.3)        (115.3)
----------------------------------------------------------------------
  Balance, end of period                   $  6,720.5     $  6,720.5
======================================================================

Rollforward of Loan Servicing
 Portfolio with MSR
  Balance, beginning of period             $360,459.5     $ 79,335.3
   Additions through acquisitions                 --       255,634.0
   Additions                                 34,411.2       91,780.1
   Sales                                     (4,123.8)      (4,123.8)
   Loan payments and other                  (19,069.7)     (50,948.4)
----------------------------------------------------------------------
 Balance, end of period                    $371,677.2     $371,677.2
======================================================================

                                                        Sept. 30, 2001
                                                            Balance
----------------------------------------------------------------------
Total Servicing Portfolio
 Loan servicing portfolio with MSR                        $371,677.2
 Loan servicing portfolio without MSR                        4,571.0
 Servicing on retained MBS without MSR                      10,778.5
 Servicing on owned loans                                  139,909.6
----------------------------------------------------------------------
 Total servicing portfolio                                $526,936.3
======================================================================

                                                Sept. 30, 2001
                                    ----------------------------------
                                    Unpaid Principal  Weighted Average
                                             Balance     Servicing Fee
----------------------------------------------------------------------
Total Servicing Portfolio, Excluding     (in basis points, annualized)
  Retained MBS without MSR
  and Owned Loans
  Government                               $ 62,749.9             52
  Agency                                    239,191.7             42
  Private                                    66,836.7             41
  Long Beach                                  7,469.9             50
----------------------------------------------------------------------
Total servicing portfolio, excluding
 retained MBS without MSR
 and owned loans                           $376,248.2             44
======================================================================


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

                                 Change from
                                     June 30,   Sept. 30,
                           to Sept. 30, 2001        2001    % of total
----------------------------------------------------------------------
Real Estate Loans and MBS(1)
  Short-term ARMs:
     COFI                         $ (2,666.6)  $ 36,436.0         23%
     Treasury indices               (2,172.4)    37,546.8         23
     Other                            (575.4)    10,928.1 (2)      7
----------------------------------------------------------------------
      Total short-term ARMs         (5,414.4)    84,910.9          53
  Medium-term ARMs                    (914.7)    34,706.1          22
  Fixed-rate loans                   3,032.2     29,440.0          18
  Fixed-rate MBS                    (1,490.4)    10,766.1           7
----------------------------------------------------------------------
      Total real estate loans and
       MBS                        $ (4,787.3) $ 159,823.1         100%
======================================================================

                             June 30,              Sept. 30,
                                2001  % of total       2000 % of total
----------------------------------------------------------------------

Real Estate Loans and MBS(1)
  Short-term ARMs:
     COFI                 $ 39,102.6        24%  $ 43,085.9        27%
     Treasury indices       39,719.2        24     43,025.9        27
     Other                  11,503.5 (2)     7      8,733.8 (2)     5
----------------------------------------------------------------------
    Total short-term ARMs   90,325.3        55     94,845.6        59
  Medium-term ARMs          35,620.8        22     29,266.8        18
  Fixed-rate loans          26,407.8        16     12,266.4         8
  Fixed-rate MBS            12,256.5         7     23,051.6        15
----------------------------------------------------------------------
    Total real estate loans
     and MBS              $164,610.4       100%  $159,430.4       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):

    Sept. 30, 2001: $ 2.82
    June 30, 2001: 2.84
    Sept. 30, 2000: 2.68


                                 Quarter Ended      Nine Months Ended
----------------------------------------------------------------------
                          Sept. 30 June 30  Sept. 30 Sept. 30 Sept. 30
                             2001    2001     2000     2001     2000
----------------------------------------------------------------------

Mortgage Banking Revenue
  Loan servicing income   $ 411.4  $ 312.0  $  89.9  $ 922.7  $ 248.4
      Amortization of MSR  (293.5)  (207.8)   (35.4)  (625.6)   (89.1)
      Impairment of MSR    (554.2)   (75.2)       -   (692.2)       -
      Other loan servicing
       expense              (15.2)   (38.5)   (16.8)   (73.1)   (49.2)
----------------------------------------------------------------------
        Net loan
         servicing
          income (expense) (451.5)    (9.5)    37.7   (468.2)   110.1
  SFR mortgage related
   income                    83.7     81.5     28.9    213.3     79.5
  Gain from mortgage loans  275.4    214.9     55.5    677.3    197.4
  Gain from sale of
   originated MBS             4.6     22.2        -     77.0        -
----------------------------------------------------------------------
     Total mortgage
      banking income
      (expense)            ($87.8)  $309.1   $122.1   $499.4   $387.0
======================================================================


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

                                Sept. 30, 2001       Dec. 31, 2000
----------------------------------------------------------------------
                             Balance    Term (1)   Balance    Term (1)
----------------------------------------------------------------------
Deposits, Borrowings and              (in months)          (in months)
 Derivatives Outstanding
Deposits:
 Noninterest-bearing
  checking accounts,
  savings accounts,
  MMDAs and time
  deposit accounts        $   18,671.0     N/A    $    8,754.8    N/A
 Interest-bearing
  checking accounts,
  savings accounts
  and MMDAs                   41,503.5     N/A        36,401.5    N/A
 Interest-bearing time
  deposit accounts            39,558.6      7         34,417.5     7
----------------------------------------------------------------------
     Total deposits           99,733.1                79,573.8
Borrowings:
  Adjustable (2)              49,185.4      2         57,219.1     1
  Short-term fixed            39,458.8      1         30,456.6     2
  Long-term fixed             15,808.2     90         13,980.3    48
----------------------------------------------------------------------
     Total borrowings        104,452.4               101,656.0
----------------------------------------------------------------------
Total deposits and
 borrowings               $  204,185.5            $  181,229.8
======================================================================


                           Sept. 30, 2001           Dec. 31, 2000
----------------------------------------------------------------------
                  Notional     Fair            Notional   Fair
                    Amount    Value   Term(1)    Amount  Value Term(1)
----------------------------------------------------------------------
Derivatives:                         (in months)           (in months)
 WM pay rate swaps:
  Fixed rate     $ 9,614.3   $(176.6)  33      $11,008.1   $(46.4)  9
  Variable rate    4,434.6     329.0    3        2,890.0    140.0   2
----------------------------------------------------------------------
 Total swaps      14,048.9     152.4            13,898.1     93.6
 Caps\Corridors
  \Swaptions       6,374.2      61.7   15        8,286.2     16.4   1
----------------------------------------------------------------------
  Total
   derivatives   $20,423.1   $ 214.1           $22,184.3   $110.0
======================================================================

(1) Terms used are remaining term for deposits, and term to
    reprice for borrowings and notional amount of derivatives.

(2) Adjustable-rate borrowings included notional values of $10.25
    billion and $13.20 billion of embedded purchased interest rate
    floors at Sept. 30, 2001 and Dec. 31, 2000. At Sept. 30, 2001
    and Dec. 31, 2000, $9.25 billion and $800.0 million,
    respectively, of these contracts were effective. Contractual
    start dates for the remaining floors range from September 15,
    2002 to July 17, 2003. Once effective, the floors reprice
    every three months.

    Adjustable-rate borrowings included notional values of $710.0
    million and $703.8 million of embedded purchased interest rate
    caps at Sept. 30, 2001 and Dec. 31, 2000.

    Adjustable-rate borrowings included notional values of $5.90
    billion of embedded interest rate swaptions (options to enter into
    pay-fixed swaps) at Sept. 30, 2001 and none at Dec. 31, 2000.
    These options are exercisable upon maturity. Maturity dates range
    from June 6, 2003 to September 2, 2003.


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

                                       Quarter Ended
----------------------------------------------------------------------
                Sept. 30,   June 30,   Mar. 31,   Dec. 31,  Sept. 30,
                    2001       2001       2001       2000       2000
----------------------------------------------------------------------
Allowance for Loan and Lease Losses
 Balance, beginning
  of quarter    $1,169.5   $1,157.8   $1,013.8   $1,011.8   $1,009.7
Identified
 allowance for
 loans sold or
 securitized           -          -          -          -       (2.6)
Allowance acquired
 through business
 combinations          -       (5.1)     119.4          -          -
Provision for
 loan and lease
 losses            200.0       92.4       82.3       52.5       47.6
----------------------------------------------------------------------
                 1,369.5    1,245.1    1,215.5    1,064.3    1,054.7

Loans charged off:
 SFR                (6.3)     (14.3)      (5.7)      (5.2)      (3.1)
 Specialty
  mortgage
  finance           (3.9)      (5.3)      (7.2)      (2.5)      (0.8)
----------------------------------------------------------------------
  Total SFR charge
   offs            (10.2)     (19.6)     (12.9)      (7.7)      (3.9)
 SFR construction   (0.1)      (0.1)         -          -          -
 Second mortgage and other consumer:
  Banking
   subsidiaries    (12.3)     (15.7)     (12.0)     (10.8)     (11.6)
  Washington
   Mutual Finance  (35.6)     (34.0)     (33.4)     (34.1)     (30.2)
 Commercial
  business         (19.2)     (11.8)      (3.7)      (3.0)      (3.4)
 Commercial real estate:
  Apartment
   buildings           -          -       (0.2)      (0.3)      (0.3)
  Other commercial
   real estate      (4.6)      (3.2)      (2.5)      (0.3)      (0.4)
----------------------------------------------------------------------
 Total loans
  charged off      (82.0)     (84.4)     (64.7)     (56.2)     (49.8)
Recoveries of loans previously charged off:
 SFR                 0.4        0.8        0.7        0.2        0.3
 Second mortgage and other consumer:
  Banking
   subsidiaries      1.1        1.5        0.9        0.9        0.7
  Washington
   Mutual Finance    4.6        4.7        5.0        3.9        4.4
  Commercial
   business          0.7        0.6        0.3        0.3        0.3
  Commercial real estate:
   Apartment
    buildings        0.1          -          -          -        0.8
   Other commercial
    real estate      0.3        1.2        0.1        0.4        0.4
----------------------------------------------------------------------
  Total recoveries
   of loans previously
   charged off       7.2        8.8        7.0        5.7        6.9
----------------------------------------------------------------------
   Net charge offs (74.8)     (75.6)     (57.7)     (50.5)     (42.9)
----------------------------------------------------------------------
Balance, end of
 quarter        $1,294.7   $1,169.5   $1,157.8   $1,013.8   $1,011.8
======================================================================

Net charge offs
 (annualized) as
 a percentage of
 average loans     0.20%      0.20%      0.17%      0.16%      0.14%

----------------------------------------------------------------------
                Sept. 30,   June 30,   Mar. 31,   Dec. 31,  Sept. 30,
                    2001       2001       2001       2000       2000
----------------------------------------------------------------------
Allowance for loan and lease losses as a percentage of:

 Nonaccrual loans    72%        83%        91%       114%       121%
 Nonperforming
  assets             64         73         80         98        102
 Total loans held
  in portfolio     0.97       0.89       0.87       0.85       0.88


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

                                      Sept. 30,   June 30,   Sept. 30,
                                        2001        2001       2000
----------------------------------------------------------------------
Nonperforming Assets ("NPAs")
  Nonaccrual loans:
    SFR                                 $ 800.6    $ 669.8    $ 522.2
    Specialty mortgage finance            356.1      309.9      131.3
----------------------------------------------------------------------
      Total SFR nonaccrual loans        1,156.7      979.7      653.5
    SFR construction                       26.5       24.5       29.5
    Second mortgage and other consumer:
        Banking subsidiaries               52.1       45.4       41.6
        Washington Mutual Finance          78.3       71.0       62.1
    Commercial business                   125.8      106.7       14.1
    Commercial real estate:
        Apartment buildings                50.7       25.8        8.6
        Other commercial real estate      320.5      147.8       27.3
----------------------------------------------------------------------
       Total nonaccrual loans           1,810.6    1,400.9      836.7
  Foreclosed assets:
    SFR                                   110.3      120.0      102.2
    Specialty mortgage finance             54.7       41.0       16.1
----------------------------------------------------------------------
      Total SFR foreclosed assets         165.0      161.0      118.3
    SFR construction                        4.5        5.1        2.4
    Second mortgage and other consumer:
        Banking subsidiaries               16.2       17.2       17.4
        Washington Mutual Finance           8.3        7.9        6.1
    Commercial business                     9.5          -          -
    Commercial real estate:
       Apartment buildings                  0.6        0.9        1.3
       Other commercial real estate        16.8       11.4       11.1
----------------------------------------------------------------------
       Foreclosed assets                  220.9      203.5      156.6
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       Total NPAs                      $2,031.5   $1,604.4    $ 993.3
======================================================================

  NPAs by property type:
    SFR                                 $ 910.9    $ 789.8    $ 624.4
    Specialty mortgage finance            410.8      350.9      147.4
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      Total SFR NPAs                    1,321.7    1,140.7      771.8
    SFR construction                       31.0       29.6       31.9
    Second mortgage and other consumer:
        Banking subsidiaries               68.3       62.6       59.0
        Washington Mutual Finance          86.6       78.9       68.2
    Commercial business                   135.3      106.7       14.1
    Commercial real estate:
       Apartment buildings                 51.3       26.7        9.9
       Other commercial real estate       337.3      159.2       38.4
----------------------------------------------------------------------
       Total NPAs                      $2,031.5   $1,604.4    $ 993.3
======================================================================

  NPAs as a percentage of :
    Total loans held in portfolio         1.53%      1.22%      0.86%
    Total assets                           0.91       0.70      0.52



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Contact:
Media
Libby Hutchinson
1.800.228.9268
206.461.2484
libby.hutchinson@wamu.net
or
Investors
JoAnn DeGrande
206.461.3186
joann.degrande@wamu.net
or
Investors
Michael Ihnken
206.461.4263
michael.ihnken@wamu.net