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Washington Mutual's Record Quarterly EPS Driven by Record Loan Volume, Strong Account and Deposit Growth; Board of Directors Increases Cash Dividend

To view a printable version of the Q4 2002 Financial Statements, click here.

To view a downloadable version of the Q4 2002 Financial Statements, click here.

SEATTLE--(BUSINESS WIRE)--Jan. 21, 2003--Highlighting record levels of loan volume and organic deposit growth, Washington Mutual, Inc. (NYSE:WM) today announced further progress toward its goal of becoming the nation's leading growth retailer of financial services with strong fourth quarter earnings of $969 million, and record quarterly earnings per diluted share of $1.03 for the quarter ended December 31, 2002, up 6 percent on a per share basis from $842 million, or 97 cents per diluted share for the same period a year ago.

Earnings for 2002 were a record $3.90 billion, or $4.05 per diluted share versus $3.11 billion, or $3.59 per diluted share in 2001.

Comparatives for 2001 do not include results from the Dime Bancorp, Inc. (Dime) and HomeSide Lending, Inc. acquisitions in 2002, and new accounting rules which eliminated the amortization of goodwill in 2002. The adoption of the recently issued SFAS No. 147 increased full-year 2002 net income by $22 million or 2 cents per diluted share.

Highlights of the fourth quarter and the year included:

  • Continued growth in checking accounts, which are one of the company's core relationship-building products: The number of checking accounts increased by 166,987 during the quarter and by 1.4 million for the year, including 358,846 accounts acquired in the first quarter from the Dime acquisition. At year end, the average consumer banking household at Washington Mutual maintained more than five products and services with the company;

  • Record depositor and other retail banking fees of $449 million for the fourth quarter and $1.63 billion for the year were up 27 percent from both prior comparative periods;

  • The opening of 68 new financial center stores during the quarter, including 20 in the company's newest retail banking market, Denver, Colorado: The company opened or acquired a total of 266 stores in 2002 - 143 new stores and 123 as part of the Dime acquisition. As part of its strategy to overlay its retail banking operations in select metropolitan markets, Washington Mutual plans to open approximately 250 new financial center stores in 2003;

  • Record loan volume of $107 billion in the fourth quarter and $306 billion for the year, up 80 percent and 75 percent from the prior comparative periods: This strong performance was led by robust volume in home lending. Unprecedented low interest rates continued to drive record refinancing as home loan volume in the fourth quarter totaled $98 billion and for the year $275 billion;

  • Credit quality continues to be in line with management expectations given the current economic conditions; The repurchase of 10.8 million shares of the company's common stock in the quarter at an average price of $33.28: The company purchased a total of 38 million shares during the year at an average price of $34.29, reflecting its strategy to effectively manage its capital.

"Our fourth quarter and overall 2002 performance illustrates the continued strength of our business strategy and our focus on serving mass-market consumers by delivering the combination of great value and efficient, friendly service on a national scale," said Kerry Killinger, the company's chairman, president and CEO. "Our team met the challenges of 2002 - most notably, the slower national economy and the highest refinancing volume in U.S. history - and delivered yet another record financial performance, while successfully completing multiple integrations of our recent acquisitions. With these integrations now behind us, we see even greater opportunities to grow organically by attracting new households and deepening customer relationships, while driving greater productivity throughout our company. Our strong performance in 2002 places us in a great position to meet these objectives and deliver on our long-term financial targets."

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 29 cents per share on the company's common stock, up from 28 cents per share in the previous quarter. Dividends on the common stock are payable on February 14, 2003 to shareholders of record as of January 31, 2003.

FOURTH-QUARTER AND YEAR-END RESULTS

Net Interest Income

For 2002, net interest income was $8.34 billion, an increase of $1.47 billion, or 21 percent, from 2001. Most of this increase was attributable to expansion of the net interest margin, which increased 16 basis points during the year, and an increase of $32.28 billion in average earning assets during 2002, mainly from the Dime acquisition. After peaking in the first quarter of 2002, the net interest margin has declined, largely due to the downward repricing of yields on loans and debt securities.

Net interest income in the fourth quarter, which was aided by a transitory increase in loans held for sale, was essentially flat from the previous quarter of $1.93 billion.

Noninterest Income

Continued strong consumer preference for Washington Mutual's products, services and overall business philosophy led to the net increase of more than 1.4 million checking accounts, year over year. This increase contributed to the record level of depositor and other retail banking fees of $449 million for the quarter, up 27 percent from $353 million from the same period one year ago. For the year, depositor and other retail banking fees totaled $1.63 billion, up from $1.29 billion for 2001.

Playing a role in the impressive increase in checking accounts was the company's entry into the New York/New Jersey retail banking market, a result of its acquisition and integration of Dime. Since the conversion and the launch of our marketing campaign, the company increased the number of checking accounts in the acquired branches at an annualized rate of 33 percent.

"Our Dime acquisition and conversion has been one of the most successful in our company's history," said Deanna Oppenheimer, Group President, Banking and Financial Services. "And, that success extends beyond financial performance. I am even more proud of the tremendous talent that came to us from Dime and the team that has helped us achieve these results."

During the fourth quarter, the company completed the HomeSide acquisition, resulting in the addition of almost $1 billion in mortgage servicing rights (MSR). The continuation of a very low interest rate environment reduced the value of the MSR; however, as in prior periods, the company's risk management activities effectively mitigated the impact of the change in valuation. Gain on certain available-for-sale securities, certain revaluation gain from derivatives and net settlement income on derivatives combined to offset impairment as well as increased amortization of MSR in the fourth quarter.

In addition, management continued its efforts to diligently manage its mortgage servicing asset by selling $175 million in excess servicing in the fourth quarter in a privately placed transaction for no material gain or loss. For the year, Washington Mutual sold nearly $1 billion in excess servicing.

Lending

Reflecting Washington Mutual's strength in serving both the home purchase and refinancing markets as well as a significant increase in home equity and multi-family lending volume the company recorded record loan volume of $107.10 billion for the fourth quarter, versus $59.37 billion for the fourth quarter of 2001. For the year, total loan volume was a record $306.05 billion, compared with $175.08 billion in 2001. Of the total loan volume in the fourth quarter, home loan volume totaled $98.17 billion, versus $54.65 billion in the same period a year ago. Home loan volume totaled $274.74 billion in 2002, as compared with $155.10 billion in 2001.

Low mortgage interest rates continued to fuel high volumes of refinancing activity. During 2002, refinancing activity represented 68 percent of home loan volume (excluding specialty mortgage finance), versus 66 percent for 2001. Of home loan volume (excluding specialty mortgage finance), 68 percent was for fixed-rate loans in 2002, versus 74 percent the previous year.

The company saw a tremendous increase in the volume of home equity and multi-family loans in the fourth quarter. For the quarter, these two loan products produced loan volume of $6.80 billion, up 116 percent over $3.15 billion in the fourth quarter of 2001. For the year, that volume was $22.14 billion, up 98 percent from $11.17 billion for 2001.

"We're seeing monthly origination volumes that rival annual production numbers from just a few short years ago," said Craig S. Davis, Group President, Home Loans and Insurance Services. "This can only be accomplished with the incredible team we have assembled and the success of the multiple integrations that are now behind us."

Efficiency Ratio

For the year, noninterest expense totaled $6.38 billion, as compared with $4.62 billion for 2001, reflecting increased loan volume and acquisitions.

The company's efficiency ratio was 49.45 percent during the fourth quarter of 2002, compared with 48.48 percent for the third quarter of 2002. For the year, the efficiency ratio was 48.09 percent, versus

  • 43.90 percent one year ago. Noninterest expense for the fourth quarter of 2002 totaled $1.66 billion, compared with $1.62 billion in the third quarter of 2002.

Credit Quality

Despite a challenging economy, and modest increases in nonperforming assets (NPAs) and charge offs, credit performance remained in line with the company's expectations.

Specifically, at December 31, 2002, NPAs as a percentage of total assets were 0.97 percent versus 0.95 percent at the end of the third quarter, and 0.93 percent at year-end 2001. Total NPAs were up $96 million to $2.59 billion at December 31, 2002, as compared with $2.50 billion at September 30, 2002.

The provision for loan and lease losses was $125 million, versus $200 million for the same period in the previous year, and $595 million for the year as compared with $575 million for 2001. The allowance for loan and lease losses was $1.65 billion at December 31, 2002. Net loan charge offs for the fourth quarter were $108 million, compared with $88 million for the third quarter.

"The increase in fourth-quarter NPAs was consistent with our expectations and our consumer loan portfolio, originated through our financial center stores, continues to perform in a stable and consistent manner and our multi-family non-accrual totals were at their lowest point of 2002 in the fourth quarter," said Jim Vanasek, the company's chief credit officer. "Overall, we remain comfortable with the credit quality of our portfolio."

Balance Sheet and Capital Management

Washington Mutual's total assets were $268.30 billion at December 31, 2002, up from $242.51 billion at year-end 2001.

On the asset side, the balance sheet grew in the fourth quarter by $5.7 billion primarily as a result of increased home loans held for sale.

The company continues to reduce its reliance on wholesale borrowings, continuing a trend that began in 2001 to increase significantly the portion of loan funding provided by deposits. At December 31, 2002, transaction account balances, including checking, savings and money market deposits, represented 78 percent of total deposits, up from 66 percent at the end of 2001. Total deposits were $155.52 billion at the end of the fourth quarter, up 45 percent from $107.18 billion at the end of the fourth quarter of 2001, reflecting the company's strong organic growth and the Dime acquisition.

Washington Mutual continues to manage its capital position by repurchasing its common stock. During the fourth quarter, the company repurchased 10.8 million shares of its common stock at an average price of $33.28. For the year, it repurchased 38 million shares at an average price of $34.29. Killinger added that the company's stock should continue to be an attractive choice for capital deployment in 2003.

Stockholders' equity stood at $20.13 billion, or 7.5 percent of total assets at December 31, 2002. In addition, capital ratios of the company's banking subsidiaries continued to exceed the federal regulatory requirements for classification as "well-capitalized" institutions, the highest regulatory standard.

Outlook

"Washington Mutual has an exceptional franchise on which to continue building a market leadership position in consumer financial services," Killinger said. "2002 was a terrific year for Washington Mutual and gives us momentum entering 2003 as we are well positioned to deliver solid top-line growth and bottom line results during the year."

"Our major business initiatives for 2003 will be centered on driving organic expansion through the combination of new household acquisition and targeted cross-sell of products and services to mass market consumers. In addition, with the recent completion of our acquisition integrations, we are able to bring an increased focus on efficiency and operational excellence throughout our organization."

Company Updates

  • Following the trailblazing efforts of the company's Home Loans and Insurance Services Group, Washington Mutual plans to open up to 70 new financial center stores in the greater Chicago area by the end of 2003.

  • The company also opened its first 20 financial center stores in the Denver area in December.

  • Tom Casey joined Washington Mutual from General Electric to become the company's new chief financial officer; former CFO, Vice Chair Bill Longbrake, assumed full-time his role in Enterprise Risk Management, as announced earlier in 2002.

  • The company completed its acquisition of HomeSide Lending, Inc. in October, acquiring HomeSide's 1.4 million customer relationships nationwide.

  • More than 28,000 New York and New Jersey-area teachers and their guests were treated to Broadway shows as part of Washington Mutual's "Spotlight on Teachers" program in November.

  • Washington Mutual and the New-York Historical Society teamed up to hold a student photojournalism project called "Home of the Free," which helped students learn about photography, about themselves and their communities.

  • Washington Mutual's new Leadership Center at Cedarbrook, located just outside Seattle, opened in December.

About WaMu

With a history dating back to 1889, Washington Mutual is a growth retailer of consumer financial services that provides a diversified line of products and services to consumers and small- to mid-sized businesses. At December 31, 2002, Washington Mutual and its subsidiaries had assets of $268.30 billion. The company currently operates more than 2,500 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.

Webcast information: Investors may listen to Washington Mutual's fourth quarter earnings conference call on January 22, 2003, at 10:30 a.m. EST at www.wamu.com or by dialing 1.888.391.7808, passcode "WaMu" is required to access the call. International callers may dial

  • 1.712.271.0791. A recording of the conference call will be available at 1 p.m. EST on Wednesday, January 22 through 11:59 p.m. EST on Friday, January 31. The recorded message will be available at

  • 1.888.562.7231. Callers from outside the United States may dial

  • 1.402.220.6031.

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" or words of similar meaning, or future or conditional verbs, such as "will," "would," "should," "could," or "may" 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 operating results if the California economy or real estate market declines; (5) competition from other financial services companies in our markets could adversely affect our ability to achieve our financial goals; and (6) changes in the regulation of financial services companies could adversely affect our business.

WM-1

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



                             Quarter Ended              Year Ended
----------------------------------------------------------------------
                      Dec. 31, Sept. 30,  Dec. 31,  Dec. 31,  Dec. 31,
                        2002     2002       2001      2002      2001
Interest Income
   Loans held for sale   $532      $388     $411    $1,727    $1,188
   Loans held in
    portfolio           2,219     2,287     2,279    9,249    10,045
   Available-for-sale
    ("AFS") securities    547       652       776     2,959     3,573
   Other interest and
    dividend income        68        86        59       312       259
----------------------------------------------------------------------
      Total interest
       income           3,366     3,413     3,525    14,247    15,065
Interest Expense
   Deposits               672       679       649     2,668     3,094
   Borrowings             768       815       849     3,238     5,095
----------------------------------------------------------------------
      Total interest
       expense          1,440     1,494     1,498     5,906     8,189
----------------------------------------------------------------------
          Net interest
           income       1,926     1,919     2,027     8,341     6,876
Provision for loan and
 lease losses             125       135       200       595       575
----------------------------------------------------------------------
          Net interest
           income
           after
           provision
           for loan
           and lease
           losses       1,801     1,784     1,827     7,746     6,301
Noninterest Income
   Depositor and other
    retail banking
    fees                  449       426       353     1,634     1,290
   Securities fees and
    commissions            90        92        77       362       303
   Insurance income        45        46        35       177       100
   Home loan mortgage
    banking expense, net (178)   (1,575)     (690)   (2,094)     (285)
   Portfolio loan
    related income        123        85        60       349       193
   Gain from other AFS
    securities            574       356       392       768       600
   Revaluation gain
    (loss) from
    derivatives           (28)    1,582         -     2,396        (5)
   Gain (loss) on
    extinguishment of
    securities sold
      under agreements to
       repurchase
       ("repurchase
         agreements")     (11)       98       496       282       621
   Net settlement
    income from
    certain interest-
    rate swaps            158       116         -       382         -
   Other income           172       154       107       534       431
----------------------------------------------------------------------
       Total
        noninterest
        income          1,394     1,380       830     4,790     3,248
Noninterest Expense
   Compensation and
    benefits              757       719       535     2,899     1,924
   Occupancy and
    equipment             294       289       228     1,153       804
   Telecommunications
    and outsourced
    information
    services              115       136       119       524       441
   Depositor and other
    retail banking
    losses                 51        55        45       204       144
   Amortization of
    goodwill                -         -        37         -       139
   Amortization of
    other intangible
    assets                 16        17         8        67        33
   Professional fees       47        55        63       208       201
   Advertising and
    promotion              58        75        50       246       185
   Other expense          320       270       246     1,081       746
----------------------------------------------------------------------
       Total
        noninterest
        expense         1,658     1,616     1,331     6,382     4,617
----------------------------------------------------------------------
           Income
            before
            income
            taxes       1,537     1,548     1,326     6,154     4,932
Income taxes              568       567       484     2,258     1,818
----------------------------------------------------------------------
Net Income               $969      $981      $842    $3,896    $3,114
======================================================================
Net Income
 Attributable to
 Common Stock            $969      $980      $840    $3,891    $3,107
======================================================================

Net income per common
 share:
   Basic                $1.05     $1.04     $0.98     $4.12     $3.65
   Diluted               1.03      1.02      0.97      4.05      3.59

Dividends declared per
 common share           $0.28     $0.27     $0.24     $1.06     $0.90

Basic weighted average
 number of common
 shares outstanding
 (in thousands)       926,210   947,293   856,014   943,905   850,245
Diluted weighted
 average number of
 common shares
 outstanding (in
 thousands)           939,991   963,422   868,951   960,152   864,658



WM-2

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





                                         Dec. 31,  Sept. 30, Dec. 31,
                                            2002      2002      2001
----------------------------------------------------------------------
Assets
   Cash and cash equivalents               $7,208    $5,122    $3,563
   Federal funds sold and securities
    purchased under resale agreements       2,015     2,413     2,481
   AFS securities:
      Mortgage-backed securities ("MBS")   28,375    26,494    28,568
      Investment securities                15,597    20,098    29,781
   Loans held for sale                     33,996    29,508    26,582
   Loans:
      Loans held in portfolio             147,528   147,862   130,251
      Allowance for loan and lease
       losses                              (1,653)   (1,705)   (1,404)
----------------------------------------------------------------------
         Total loans held in portfolio,
          net of allowance for loan and
          lease losses                    145,875   146,157   128,847
   Investment in Federal Home Loan Banks
    ("FHLBs")                               3,703     3,792     3,873
   Mortgage servicing rights ("MSR")        5,341     4,548     6,241
   Goodwill                                 6,270     6,253     2,175
   Other assets                            19,918    18,246    10,395
----------------------------------------------------------------------
         Total assets                    $268,298  $262,631  $242,506
======================================================================

Liabilities
   Deposits:
      Checking accounts                   $91,862   $77,113   $37,736
      Savings accounts and money market
       deposit accounts ("MMDAs")          29,886    29,799    32,484
      Time deposit accounts                33,768    33,696    36,962
----------------------------------------------------------------------
         Total deposits                   155,516   140,608   107,182
   Federal funds purchased and
    commercial paper                        1,247     1,845     4,690
   Securities sold under agreements to
    repurchase ("repurchase agreements")   16,717    22,381    39,447
   Advances from FHLBs                     51,265    55,752    61,182
   Other borrowings                        15,264    13,415    12,576
   Other liabilities                        8,155     8,452     3,264
----------------------------------------------------------------------
         Total liabilities                248,164   242,453   228,341
Redeemable preferred stock                      -         -       102
Stockholders' equity                       20,134    20,178    14,063
----------------------------------------------------------------------
         Total liabilities, redeemable
          preferred stock, and
          stockholders' equity           $268,298  $262,631  $242,506
======================================================================

Common shares outstanding at end of
 period (in thousands) (1)                926,054   935,752   855,089
Book value per common share                $21.74    $21.56    $16.45
Tangible book value per common share        15.06     14.95     14.18

Full-time equivalent employees at end of
 period                                    52,459    50,329    39,465


(1) Excludes 18 million shares held in escrow pending resolution of
    the company's asserted right to the return and cancellation of
    such shares.

WM-3

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



                                                        Year Ended
----------------------------------------------------------------------
                                                     Dec. 31, Dec. 31,
                                                        2002     2001
------------------------------------------------------------- --------
Stockholders' Equity Rollforward
Balance, beginning of period                         $14,063  $10,166
Net income                                             3,896    3,114
Other comprehensive income (loss), net of tax            418     (189)
Cash dividends declared on common stock               (1,021)    (774)
Cash dividends declared on redeemable preferred
 stock                                                    (5)      (7)
Common stock repurchased and retired                  (1,303)    (231)
Common stock warrants issued, net of issuance costs        -      398
Common stock issued for acquisitions                   3,672    1,389
Fair value of Dime stock options                          90        -
Common stock issued to redeem preferred stock            102        -
Common stock issued                                      222      197
------------------------------------------------------------- --------
Balance, end of period                               $20,134  $14,063
============================================================= ========



                                Quarter Ended           Year Ended
----------------------------------------------------------------------
                         Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
                           2002     2002      2001     2002     2001
----------------------------------------------------------------------
Pro Forma (1)
Income before income
 taxes                    $1,537    $1,548   $1,326   $6,154   $4,932
Add back: amortization of
 goodwill (2)                  -         -       37        -      139
----------------------------------------------------------------------
Income before income
 taxes, excluding
 amortization of goodwill  1,537     1,548    1,363    6,154    5,071
Income taxes                (568)     (567)    (488)  (2,258)  (1,834)
----------------------------------------------------------------------
Net income, excluding
 amortization of goodwill    969       981      875    3,896    3,237
Redeemable preferred
 stock dividends               -        (1)      (2)      (5)      (7)
----------------------------------------------------------------------
Net income attributable
 to common stock,
 excluding
   amortization of
    goodwill                $969      $980     $873   $3,891   $3,230
======================================================================
Net income per diluted
 common share, excluding
   amortization of
    goodwill               $1.03     $1.02    $1.00    $4.05    $3.73



(1)   Represents pro forma impact to net income for the quarter ended
      December 31, 2002, September 30, 2002 and December 31, 2001 and
      the year ended December 31, 2002 and 2001,  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.
(2)   With the adoption of SFAS No. 147, Acquisitions of Certain
      Financial Institutions, amortization of goodwill includes the
      amortization of certain unidentifiable intangible assets that 
      were recognized from financial institution acquisitions.



                                                                 Nine
                                                                Months
                                        Quarter Ended            Ended
----------------------------------------------------------------------
                                 Sept. 30, June 30, Mar. 31, Sept. 30,
                                   2002      2002     2002     2002
----------------------------------------------------------------------
Impact of SFAS No. 147 Adoption
 (1)
Income before income taxes as
 reported prior to the adoption
 of SFAS No. 147                   $1,539   $1,552   $1,499    $4,591
Add back: amortization of
 certain unidentifiable
 intangible assets                      9        9        9        26
----------------------------------------------------------------------
Income before income taxes          1,548    1,561    1,508     4,617
Income taxes                         (567)    (571)    (552)   (1,690)
----------------------------------------------------------------------
Net income                            981      990      956     2,927
Redeemable preferred stock
 dividends                             (1)      (2)      (2)       (5)
----------------------------------------------------------------------
Net income attributable to
 common stock                        $980     $988     $954    $2,922
======================================================================
Net income per diluted common
 share                              $1.02    $1.01    $0.99     $3.02


(1)   The 2002 annual  impact of the adoption of SFAS No. 147 was to
      increase net income by $22 million or 2 cents per diluted
      share.



WM-4

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



                                        Quarter Ended
----------------------------------------------------------------------
                        Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
                          2002     2002      2002     2002     2001
----------------------------------------------------------------------
PROFITABILITY
 Net interest income     $1,926    $1,919   $2,100   $2,396   $2,027
 Net interest margin       3.25 %    3.36 %   3.54 %   3.74 %   3.80 %
 Noninterest income      $1,394    $1,380   $1,208     $807     $830
 Noninterest expense      1,658     1,616    1,586    1,521    1,331
 Net income                 969       981      990      956      842
 Net income per common
  share:
   Basic                  $1.05     $1.04    $1.04    $1.01    $0.98
   Diluted                 1.03      1.02     1.01     0.99     0.97
 Dividends declared per
  common share            $0.28     $0.27    $0.26    $0.25    $0.24
 Return on average
  assets                   1.42 %    1.50 %   1.48 %   1.34 %   1.43 %
 Return on average
  common equity           18.34     18.79    20.37    20.64    23.36
 Efficiency ratio (1)     49.45     48.48    47.45    46.96    44.99

ASSET QUALITY
 Nonaccrual loans(2)     $2,257    $2,188   $2,232   $2,391   $2,030
 Foreclosed assets          336       309      274      267      228
 Total nonperforming
  assets                  2,593     2,497    2,506    2,658    2,258
 Nonperforming
  assets/total assets      0.97 %    0.95 %   0.96 %   0.97 %   0.93 %
 Restructured loans         $98      $112     $119     $130     $118
  Total nonperforming
   assets and
   restructured loans     2,691     2,609    2,625    2,788    2,376
 Allowance for loan and
  lease losses            1,653     1,705    1,665    1,621    1,404
  Allowance as a
   percentage of total
   loans held in
   portfolio               1.12 %    1.15 %   1.14 %   1.12 %   1.08 %
 Provision for loan and
  lease losses             $125      $135     $160     $175     $200
 Net charge offs            108        88      116       99       97

CAPITAL ADEQUACY
 Stockholders'
  equity/total assets      7.50 %    7.68 %   7.50 %   6.59 %   5.80 %
 Stockholders'
  equity(3)/total
  assets(3)                7.48      7.51     7.52     6.80     5.89
 Tangible common
  equity(3)(4)/total
  assets(3)(4)             5.29      5.27     5.28     4.69     5.14
 Estimated total risk-
  based capital/risk-
  weighted assets(5)      11.69     11.16    12.32    11.69    12.87

SUPPLEMENTAL DATA
 Average balance sheet:
  Loans held for sale   $37,322   $25,740  $22,211  $27,241  $25,263
  Loans held in
   portfolio            149,173   146,160  146,667  147,531  129,661
  Interest-earning
   assets               237,842   229,364  236,504  255,177  214,063
  Total assets          273,729   261,170  266,849  284,349  236,335
  Interest-bearing
   deposits             116,177   111,408  108,231  101,217   83,934
  Noninterest-
   bearing deposits      32,375    24,065   22,417   22,635   19,699
  Stockholders' equity   21,121    20,872   19,401   18,487   14,389
 Period-end balance
  sheet:
  Loans held for sale    33,996    29,508   21,940   24,751   26,582
  Loans held in
   portfolio, net of
   allowance for loan
   and lease losses     145,875   146,157  144,208  143,309  128,847
  Interest-earning
   assets               231,214   230,167  230,852  241,296  221,536
  Assets                268,298   262,631  261,298  275,231  242,506
  Interest-bearing
   deposits             118,001   112,969  108,441  107,174   83,923
  Noninterest-
   bearing deposits      37,515    27,639   20,628   21,836   23,259
  Stockholders' equity   20,134    20,178   19,598   18,133   14,063



(1)   Excludes amortization of goodwill and amortization of other
      intangible assets.
(2)   Excludes nonaccrual loans held for sale.
(3)   Excludes unrealized net gain/loss on available-for-sale
      securities and derivatives.
(4)   Excludes goodwill and intangible assets but includes MSR.
(5)   Estimate of what the total risk-based capital ratio would be if
      Washington Mutual, Inc. was a bank holding company that complies
      with Federal Reserve Board capital requirements.


WM-5

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

                                          Quarter Ended
----------------------------------------------------------------------
                          Dec. 31, 2002  Sept. 30, 2002  Dec. 31, 2001
                          Balance  Rate   Balance Rate   Balance  Rate
----------------------------------------------------------------------
Average Balances and
 Weighted Average
  Interest Rates
Assets
Interest-earning assets:
  Federal funds
   sold and securities
   purchased under resale
   agreements             $ 2,536  1.43%  $ 3,707  1.74%  $ 516  2.15%
  AFS securities(1):
   MBS                     26,010  5.01    24,882  5.53  31,188  6.29
   Investment securities   18,286  4.84    24,472  5.02  23,184  4.91
  Loans held for sale(2)   37,322  5.70    25,740  6.03  25,263  6.51
  Loans held in
   portfolio(2):
   Home loans              85,317  5.55    84,276  5.85  79,110  6.60
   Specialty mortgage
   finance(3)               9,405  5.54     9,141  6.28   8,015  7.39
---------------------------------         -------       -------
    Total home loans       94,722  5.55    93,417  5.89  87,125  6.67
   Home construction loans:
    Builder (4)             1,109  5.68     1,214  5.53   1,776  6.23
    Custom (5)                914  8.34       891  8.15     916  8.75
   Home equity loans and
    lines of credit:
    Banking subsidiaries   15,380  5.69    14,170  5.97   7,700  6.86
    Washington Mutual
     Finance                2,010 11.88     2,225 11.96   2,100 12.57
   Multi-family            18,815  5.82    18,094  5.92  15,916  7.01
   Other real estate        8,230  6.67     8,412  6.76   6,154  7.14
---------------------------------         -------       -------
    Total loans secured by
     real estate          141,180  5.77   138,423  6.07 121,687  6.86
   Consumer:
    Banking subsidiaries    1,691  9.30     2,119  9.53   2,063  9.53
    Washington Mutual
     Finance                1,710 19.25     1,708 19.13   1,744 18.37
   Commercial business      4,592  4.83     3,910  5.34   4,167  5.57
---------------------------------         -------       -------
    Total loans held in
     portfolio            149,173  5.94   146,160  6.25 129,661  7.02
  Other                     4,515  5.16     4,403  6.23   4,251  5.31
---------------------------------         -------       -------
        Total
         interest-earning
         assets           237,842  5.65   229,364  5.94 214,063  6.58
 Noninterest-earning assets:
   MSR                      5,855           5,933         6,517
   Goodwill                 6,229           6,231         2,125
   Other                   23,803          19,642        13,630
---------------------------------         -------       -------
    Total assets         $273,729       $ 261,170     $ 236,335
=================================         =======       =======

Liabilities
Interest-bearing liabilities:
  Deposits:
   Interest-bearing
    checking             $ 53,588  2.35  $ 46,508  2.59 $10,897  1.98
   Savings accounts
    and MMDAs              28,745  1.30    29,963  1.45  34,174  2.11
   Time deposit accounts   33,844  3.06    34,937  3.01  38,863  4.22
---------------------------------         -------       -------
    Total interest-bearing
     deposits             116,177  2.30   111,408  2.42  83,934  3.07
  Federal funds purchased
   and commercial paper     2,848  1.71     1,983  2.06   5,163  2.39
  Repurchase agreements    23,659  2.77    26,814  3.06  29,677  2.31
  Advances from FHLBs      56,047  2.94    56,926  3.01  64,338  3.17
  Other                    14,376  4.83    13,549  4.87  14,357  3.61
---------------------------------         -------       -------
   Total interest-bearing
    liabilities           213,107  2.68   210,680  2.81 197,469  3.01
Noninterest-bearing sources:
   Noninterest-bearing
    deposits               32,375          24,065        19,699
   Other liabilities        7,126           5,553         4,778
   Stockholders' equity    21,121          20,872        14,389
---------------------------------         -------       -------
    Total liabilities and
     stockholders'
     equity              $273,729       $ 261,170     $ 236,335
=================================         =======       =======

   Net interest spread             2.97            3.13          3.57
   Impact of noninterest-bearing
    sources                        0.28            0.23          0.23
   Net interest margin             3.25            3.36          3.80

(1)    Yield is based on average amortized cost balances.
(2)    Nonaccrual loans were included in the average loan amounts
       outstanding.
(3)    Represents purchased subprime loan portfolios.
(4)    Represents loans to builders for the purpose of financing the
       acquisition, development and construction of single-family
       residences for sale.
(5)    Represents construction loans made directly to the intended
       occupant of a single-family residence.


WM-6

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



                                                Year Ended
----------------------------------------------------------------------
                                      Dec. 31, 2002    Dec. 31, 2001
                                     Balance    Rate   Balance   Rate
----------------------------------------------------------------------
Average Balances and Weighted
 Average Interest Rates
Assets
Interest-earning assets:
   Federal funds sold and
    securities purchased under
    resale agreements                 $2,352    1.68%     $335   4.40%
   AFS securities(1):
      MBS                             24,656    5.46    41,430   6.94
      Investment securities           32,508    4.96    13,187   5.29
   Loans held for sale(2)             28,128    6.13    17,719   6.79
   Loans held in portfolio(2):
      Home loans                      86,042    5.90    81,686   7.23
      Specialty mortgage finance(3)    9,028    6.27     6,936   7.63
---------------------------------------------         ---------
         Total home loans             95,070    5.94    88,622   7.26
      Home construction loans:
         Builder (4)                   1,316    5.87     1,826   7.67
         Custom (5)                      906    8.19       905   8.96
      Home equity loans and lines
       of credit:
         Banking subsidiaries         13,382    5.91     7,248   7.72
         Washington Mutual Finance     2,100   12.06     2,056  12.74
      Multi-family                    17,973    6.01    16,480   7.72
      Other real estate                8,368    6.81     5,913   7.96
---------------------------------------------         ---------
            Total loans secured by
             real estate             139,115    6.10   123,050   7.50
      Consumer:
         Banking subsidiaries          2,349    9.37     1,804  10.96
         Washington Mutual Finance     1,714   18.87     1,731  18.63
      Commercial business              4,227    5.08     4,010   7.02
---------------------------------------------         ---------
                Total loans held in
                 portfolio           147,405    6.27   130,595   7.68
   Other                               4,597    5.92     4,103   5.95
---------------------------------------------         ---------
                    Total interest-
                     earning assets  239,646    5.94   207,369   7.26
Noninterest-earning assets:
   MSR                                 6,650             5,276
   Goodwill                            6,054             1,901
   Other                              19,117            11,027
---------------------------------------------         ---------
         Total assets               $271,467          $225,573
=============================================         =========

Liabilities
Interest-bearing liabilities:
   Deposits:
      Interest-bearing checking      $40,338    2.55    $7,540   1.58
      Savings accounts and MMDAs      31,545    1.48    35,873   3.17
      Time deposit accounts           37,422    3.14    36,496   5.04
---------------------------------------------         ---------
         Total interest-bearing
          deposits                   109,305    2.44    79,909   3.87
   Federal funds purchased and
    commercial paper                   3,478    1.92     4,806   4.11
   Repurchase agreements              34,830    2.31    29,582   4.05
   Advances from FHLBs                59,449    2.83    63,859   4.58
   Other                              14,014    4.90    13,289   5.84
---------------------------------------------         ---------
         Total interest-bearing
          liabilities                221,076    2.67   191,445   4.28
Noninterest-bearing sources:
   Noninterest-bearing deposits       25,396            16,613
   Other liabilities                   5,015             4,308
   Stockholders' equity               19,980            13,207
---------------------------------------------         ---------
         Total liabilities and
          stockholders' equity      $271,467          $225,573
=============================================         =========

  Net interest spread                           3.27             2.98
  Impact of noninterest-bearing
   sources                                      0.21             0.34
  Net interest margin                           3.48             3.32



(1)    Yield is based on average amortized cost balances.
(2)    Nonaccrual loans were included in the average loan amounts
       outstanding.
(3)    Represents purchased subprime loan portfolios.
(4)    Represents loans to builders for the purpose of financing the
       acquisition, development and construction of single-family
       residences for sale.
(5)    Represents construction loans made directly to the intended
       occupant of a single-family residence.


WM-7


                  Washington Mutual, Inc.
              Selected Financial Information
                        (unaudited)


                          Quarter Ended                Year Ended
---------------------------------------------------------------------
                        Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
                          2002     2002      2001     2002     2001
----------------------------------------------------------------------
Basic and Diluted Weighted Average Number of Common Shares
 Outstanding (in thousands)

Basic weighted average number of
 common shares
 outstanding            926,210   947,293  856,014  943,905  850,245
   Potential dilutive
    effect of common
    shares from:
       Stock options      7,530     8,460    6,726    8,626    8,469
       Premium Income
        Equity
        Securities(SM)
        (1)                   -       775    1,268      951    1,346
       Trust Preferred
        Income Equity
        Redeemable
         Securities(SM)   6,251     6,894    4,943    6,670    4,598
---------------------------------------------------------------------
                         13,781    16,129   12,937   16,247   14,413
---------------------------------------------------------------------
Diluted weighted average
 number of common
 shares outstanding     939,991   963,422  868,951  960,152  864,658
=====================================================================
(1)  Redeemed on August 16, 2002.


WM-8

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




                              Quarter Ended            Year Ended
----------------------------------------------------------------------
                        Dec. 31, Sept. 30, Dec. 31,  Dec. 31, Dec. 31,
                           2002     2002     2001      2002      2001
----------------------------------------------------------------------
Loan Volume
 Home loans:
  Adjustable rate
   ("ARMs")             $25,998  $25,928  $12,891   $84,627   $37,224
  Fixed rate             67,487   38,323   39,280   176,040   107,538
  Specialty mortgage
   finance (1)            4,689    3,187    2,476    14,077    10,333
----------------------------------------------------------------------
    Total home loan
     volume              98,174   67,438   54,647   274,744   155,095
 Home construction
  loans:
  Builder (2)               389      567      144     1,842     1,957
  Custom (3)                194      214      160       761       917
 Home equity loans and
  lines of credit:
  Banking subsidiaries    4,721    3,374    2,209    15,254     7,537
  Washington Mutual
   Finance                  216      244      223     1,051       937
 Multi-family             1,864    1,870      715     5,839     2,697
 Other real estate          513      636      225     1,818     1,422
----------------------------------------------------------------------
     Total loans
      secured by real
      estate            106,071   74,343   58,323   301,309   170,562
 Consumer:
  Banking subsidiaries      114      178      105       760       540
  Washington Mutual
   Finance                  481      435      472     1,791     1,760
 Commercial business        438      527      468     2,193     2,219
----------------------------------------------------------------------
    Total loan volume  $107,104  $75,483  $59,368  $306,053  $175,081
======================================================================

Loan Volume by Channel
 Originated             $64,881  $52,020  $35,390  $200,107  $112,173
 Purchased/
  Correspondent          42,223   23,463   23,978   105,946    62,908
----------------------------------------------------------------------
     Total loan volume
      by channel       $107,104  $75,483  $59,368  $306,053  $175,081
======================================================================

Refinancing Activity (4)
 Home loans:
  ARMs                  $18,957  $18,617   $9,816   $60,170   $25,099
  Fixed rate             50,634   25,432   27,169   118,224    70,023
  Specialty mortgage     
   finance                1,612    1,285      902     5,394     2,433
----------------------------------------------------------------------
  Total home loan       
   refinances            71,203  45,334  37,887  183,788   97,555
 Home construction
  loans                      11       12        7        50        31
 Home equity loans and
  lines of credit
  and consumer              904      584      147     2,814       364
 Multi-family and other
  real estate               903      391      345     2,155     1,257
----------------------------------------------------------------------
    Total refinances    $73,021  $46,321  $38,386  $188,807   $99,207
======================================================================

Home Loans Volume by
 Index:
 Short-term ARMs:
  Treasury indices       $3,972   $4,020   $5,633   $19,474   $21,157
  COFI                      316      743      449     3,231     1,976
  Other                   2,163    1,980       58     7,461       142
----------------------------------------------------------------------
   Total short-term
    ARMs                  6,451    6,743    6,140    30,166    23,275
 Medium-term ARMs        22,977   21,905    8,875    65,925    21,788
 Fixed-rate mortgages    68,746   38,790   39,632   178,653   110,032
----------------------------------------------------------------------
    Total home loans
     volume             $98,174  $67,438  $54,647  $274,744  $155,095
======================================================================


(1)  Represents purchased subprime loan portfolios and mortgages
     originated by Long Beach Mortgage.
(2)  Represents loans to builders for the purpose of financing the
     acquisition, development and construction of single-family
     residences for sale.
(3)  Represents construction loans made directly to the intended
     occupant of a single-family residence.
(4)  Includes loan refinancings entered into by both new and
     pre-existing loan customers.


WM-9

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



                             Change from
                              Sept. 30,  Dec. 31,  Sept. 30, Dec. 31,
                                 2002     2002      2002      2001
                              to Dec. 31,
                                 2002
----------------------------------------------------------------------
Loans by Property Type and
 MBS
 Loans held in portfolio:
  Home loans:                    
   ARMs and fixed rate          $(1,863)  $82,842   $84,705   $79,281
   Specialty mortgage
    finance(1)                      533    10,128     9,595     8,552
----------------------------------------------------------------------
   Total home loans              (1,330)   92,970    94,300    87,833
  Home construction loans:
   Builder(2)                      (142)    1,017     1,159     1,623
   Custom(3)                         17       932       915       979
  Home equity loans and lines
   of credit:
   Banking subsidiaries           1,513    16,168    14,655     7,970
   Washington Mutual Finance       (331)    1,930     2,261     2,100
  Multi-family                     (408)   18,000    18,408    15,608
  Other real estate                (402)    7,986     8,388     6,089
----------------------------------------------------------------------
   Total loans secured by
    real estate                  (1,083)  139,003   140,086   122,202
  Consumer:
   Banking subsidiaries            (115)    1,663     1,778     2,009
   Washington Mutual Finance         23     1,729     1,706     1,755
  Commercial business               841     5,133     4,292     4,285
----------------------------------------------------------------------
   Total loans held in
    portfolio                      (334)  147,528   147,862   130,251
 Less: allowance for loan and
  lease losses                       52    (1,653)   (1,705)   (1,404)
 Loans securitized and
  retained as MBS                 3,136    25,054    21,918    22,212
----------------------------------------------------------------------
   Total net loans held in
    portfolio and loans
    securitized and retained
    as MBS                        2,854   170,929   168,075   151,059
 Loans held for sale              4,488    33,996    29,508    26,582
----------------------------------------------------------------------
   Total net loans and loans
    securitized and retained
    as MBS                        7,342   204,925   197,583   177,641
 Purchased MBS                   (1,255)    3,321     4,576     6,356
----------------------------------------------------------------------
   Total net loans and MBS       $6,087  $208,246  $202,159  $183,997
======================================================================



(1)  Represents purchased subprime loan portfolios.
(2)  Represents loans to builders for the purpose of financing the
     acquisition, development and construction of single-family
     residences for sale.
(3)  Represents construction loans made directly to the intended
     occupant of a single-family residence.


WM-10

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




                                                 Sept. 30,    Dec. 31,
                                                      2002        2001
                                               to Dec. 31, to Dec. 31,
                                                      2002        2002
----------------------------------------------------------------------
Rollforward of Loans Held for Sale
   Balance, beginning of period                   $29,508     $26,582
      Loans added through acquisitions                 13       6,730
      Loans originated and
       purchased/correspondent                     85,444     226,434
      Loans transferred from loans held in
       portfolio                                      180       6,177
      Loans transferred to loans held in
       portfolio                                     (349)       (725)
      Loans securitized and retained               (3,535)     (8,805)
      Loans sold                                  (76,171)   (219,985)
      Loan payments and other                      (1,094)     (2,412)
----------------------------------------------------------------------
   Change in loans                                  4,488       7,414
----------------------------------------------------------------------
   Balance, end of period                         $33,996     $33,996
======================================================================


Rollforward of Loans Held in Portfolio
   Balance, beginning of period                  $147,862    $130,251
      Loans added through acquisitions                 33      16,258
      Loans originated and
       purchased/correspondent                     21,660      79,619
      Loans transferred from loans held for
       sale                                           349         725
      Loans transferred to loans held for
       sale                                          (180)     (6,177)
      Loans securitized and retained               (3,421)     (3,469)
      Loan payments and other                     (18,775)    (69,679)
----------------------------------------------------------------------
   Change in loans                                   (334)     17,277
----------------------------------------------------------------------
   Balance, end of period                        $147,528    $147,528
======================================================================


WM-11

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


                                                  Sept. 30,   Dec. 31,
                                                       2002       2001
                                                to Dec. 31,to Dec. 31,
                                                       2002       2002
----------------------------------------------------------------------

Rollforward of Mortgage Servicing Rights
 ("MSR")(1)
   Balance, beginning of period                    $4,548      $6,241
      Home loans:
         Additions through acquisitions               962       1,888
         Other additions                            1,221       4,031
         Amortization                                (920)     (2,616)
         Impairment                                  (308)     (3,219)
         Sale of excess servicing                    (175)       (997)
     Net change in commercial real estate MSR          13          13
----------------------------------------------------------------------
   Balance, end of period(2)                       $5,341      $5,341
======================================================================

Rollforward of Valuation Allowance for MSR
 Impairment
   Balance, beginning of period                    $4,320      $1,714
      Impairment                                      308       3,219
      Sale of excess servicing                       (107)       (412)
----------------------------------------------------------------------
   Balance, end of period                          $4,521      $4,521
======================================================================

Rollforward of Loans Serviced for Others
   Balance, beginning of period                  $478,275    $382,500
      Home loans:
         Additions through acquisitions           129,642     178,884
         Other additions                           87,788     249,855
         Loan payments and other                  (92,761)   (208,337)
      Net change in commercial real estate
       loans serviced for others                    1,560       1,602
----------------------------------------------------------------------
   Balance, end of period                        $604,504    $604,504
======================================================================



                                                             Dec. 31,
                                                                2002
                                                               Balance
----------------------------------------------------------------------
Total Servicing Portfolio
      Loans serviced for others                              $604,504
      Servicing on retained MBS without MSR                     5,850
      Servicing on owned loans                                167,696
      Subservicing portfolio                                      302
----------------------------------------------------------------------
   Total servicing portfolio                                 $778,352
======================================================================



                                                Dec. 31, 2002
                                        ------------------------------
                                        Unpaid Principal   Weighted
                                             Balance        Average
                                                         Servicing Fee
----------------------------------------------------------------------
Loans Serviced for Others by Loan Type                    (in basis
                                                            points,
                                                          annualized)
      Government                                $89,762            54
      Agency                                    391,833            35
      Private                                   110,808            46
      Specialty home loans                       12,101            50
----------------------------------------------------------------------
   Total loans serviced for others(3)          $604,504            40
======================================================================



(1)  Net of valuation allowance.
(2)  At December 31, 2002, aggregate MSR fair value was $5.38
     billion.
(3)  Weighted average coupon (annualized) was 6.83% at December 31,
     2002.

WM-12

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





                                       Change from
                                        Sept. 30,   Dec. 31,    % of
                                            2002      2002      total
                                       to Dec. 31,
                                            2002
----------------------------------------------------------------------
Loans Secured by Real Estate and MBS
   Short-term ARMs:
      COFI                                 $(1,707)  $28,252      14%
      Treasury indices                       1,996    42,045      21
      Other                                  1,593    27,420 (1)  13
----------------------------------------------------------------------
         Total short-term ARMs               1,882    97,717      48
   Medium-term ARMs                            169    54,164      27
   Fixed-rate loans                          4,704    45,691      23
   Fixed-rate MBS                           (1,492)    3,707       2
----------------------------------------------------------------------
         Total loans secured by real estate
            and MBS                         $5,263  $201,279     100%
======================================================================


                                   Sept. 30,    % of  Dec. 31,    % of
                                       2002    total     2001    total
----------------------------------------------------------------------
Loans Secured by Real Estate and MBS
   Short-term ARMs:
      COFI                          $29,959      15%  $34,760      19%
      Treasury indices               40,049      20    36,680      21
      Other                          25,827 (1)  13    19,004 (1)  11
----------------------------------------------------------------------
         Total short-term ARMs       95,835      48    90,444      51
   Medium-term ARMs                  53,995      28    43,849      25
   Fixed-rate loans                  40,987      21    36,410      20
   Fixed-rate MBS                     5,199       3     6,579       4
----------------------------------------------------------------------
         Total loans secured by real estate
            and MBS                $196,016     100% $177,282     100%
======================================================================



(1)  The balance included the following amount of securities retained
     which bear COFI to LIBOR basis risk (dollars in billions):
                                   Dec. 31, 2002:$2.8
                                  Sept. 30, 2002: 2.8
                                   Dec. 31, 2001: 2.9



                               Quarter Ended            Year Ended
--------------------------------------------------- ------------------
                        Dec. 31, Sept. 30, Dec. 31,  Dec. 31, Dec. 31,
                           2002      2002     2001      2002     2001
--------------------------------------------------- ------------------
Home Loan Mortgage Banking
 (Expense) Income
   Loan servicing fees     $628      $508     $448    $2,237   $1,375
   Loan subservicing
    fees                     14        34        9       100       24
   Amortization of MSR     (920)     (713)    (381)   (2,616)  (1,006)
   MSR impairment          (308)   (1,849)  (1,057)   (3,219)  (1,749)
   Other, net              (134)      (97)     (61)     (371)    (165)
--------------------------------------------------- ------------------
      Net home loans
       servicing
       expense             (720)   (2,117)  (1,042)   (3,869)  (1,521)
   Loan related income      135       125       49       461      156
   Gain from mortgage
    loans                   392       418      287     1,280      963
   Gain (loss) from sale
    of originated MBS        15        (1)      16        34      117
--------------------------------------------------- ------------------
      Total home loan
       mortgage banking
       expense             (178)   (1,575)   $(690)  $(2,094)   $(285)
------------------------------------------- ======= ==================
   Impact of MSR risk 
    management instruments(1):
      Gain from certain 
       AFS securities       407       388
      Revaluation gain from
       certain derivatives  109     1,694
      Gain on extinguishment
       of repurchase 
       agreements             -       136
      Net settlement income
       from certain interest
       rate swaps           158       116
-------------------------------------------
       Total impact of MSR
        risk management
        instruments         674     2,334
-------------------------------------------
        Total home loan 
         mortgage banking
         income net of MSR
         risk management
         instruments      $ 496     $ 759
===========================================                         
(1) Includes only instruments designated for MSR risk management and 
does not include the effects of instruments held for asset/liability 
management.

WM-13


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





                Dec. 31, 2002      Sept. 30, 2002     Dec. 31, 2001
----------------------------------------------------------------------
               Balance  Term (1)  Balance  Term (1)  Balance  Term (1)
----------------------------------------------------------------------
Deposits and            (in                (in                (in
 Borrowings              months)            months)            months)
 Deposits:
  Noninterest-
   bearing
   deposits    $37,515      N/A   $27,639      N/A   $23,259      N/A
  Interest-
   bearing
   checking
   accounts,
   savings
   accounts
   and MMDAs    84,233      N/A    79,273      N/A    46,961      N/A
  Interest-
   bearing
   time
   deposit
   accounts     33,768       15    33,696       16    36,962       10
----------------------------------------------------------------------
  Total
   deposits(2) 155,516            140,608            107,182
  Borrowings:
   Adjustable   50,121        1    53,392        1    48,014        2
   Fixed        34,372       44    40,001       37    69,881       22
----------------------------------------------------------------------
  Total
   borrowings   84,493             93,393            117,895
----------------------------------------------------------------------
  Total
   deposits
   and
   borrowings $240,009           $234,001           $225,077
======================================================================



(1)  Terms used are remaining term for deposits and fixed-rate
     borrowings and term to reprice for adjustable-rate
     borrowings.
(2)  Includes custodial and escrow deposits of $25.90 billion at
     December 31, 2002, $16.02 billion at September 30, 2002 and
     $10.11 billion at December 31, 2001.


                                       Dec. 31,  Sept. 30,   Dec. 31,
                                         2002       2002       2001
----------------------------------------------------------------------
Retail Checking Accounts (1)
    WMB and WMBfsb                    1,289,705  1,277,805  1,182,385
    WMB, FA                           5,968,850  5,813,763  4,667,806
----------------------------------------------------------------------
         Total retail checking
          accounts                    7,258,555  7,091,568  5,850,191
======================================================================

Retail Checking Account Activity (1)
   Net accounts opened during the
    quarter:
      WMB and WMBfsb                     11,900     28,535     23,739
      WMB, FA                           155,087    245,490    166,577
----------------------------------------------------------------------
   Net new retail checking accounts     166,987    274,025    190,316
======================================================================



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


WM-14

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



                                          Quarter Ended
----------------------------------------------------------------------
                               Dec.    Sept.    June    Mar.    Dec.
                                31,     30,      30,     31,     31,
                               2002    2002     2002    2002    2001
----------------------------------------------------------------------
Allowance for Loan and Lease
 Losses
   Balance, beginning of
    quarter                  $1,705   $1,665  $1,621  $1,404   $1,295
   Allowance acquired through
    business
    combinations                  -        -       -     148        9
   Allowance for transfer to
    loans held for sale         (17)      (7)      -      (7)      (3)
   Allowance for certain
    loan commitments            (52)       -       -       -        -
   Provision for loan and
    lease losses                125      135     160     175      200
----------------------------------------------------------------------
                              1,761    1,793   1,781   1,720    1,501
   Loans charged off:
      Home loans                (23)      (9)    (11)    (11)      (3)
      Specialty mortgage
       finance                   (7)      (9)     (8)     (9)     (10)
----------------------------------------------------------------------
            Total home loans
             charge offs        (30)     (18)    (19)    (20)     (13)
      Home equity loans and
       lines of credit:
         Banking
          subsidiaries           (9)      (3)     (1)     (1)      (1)
         Washington Mutual
          Finance                (4)      (2)     (3)     (2)      (2)
      Multi-family                -       (1)      -       -        -
      Other real estate          (5)     (11)    (32)    (10)      (4)
----------------------------------------------------------------------
            Total loans
             secured by real
             estate             (48)     (35)    (55)    (33)     (20)
      Consumer:
         Banking
          subsidiaries          (16)     (15)    (20)    (20)     (15)
         Washington Mutual
          Finance               (43)     (42)    (44)    (40)     (39)
      Commercial business       (20)     (17)    (19)    (19)     (34)
----------------------------------------------------------------------
            Total loans
             charged off       (127)    (109)   (138)   (112)    (108)
   Recoveries of loans
    previously charged off:
      Home loans                  -        2       -       -        -
      Home equity loans and
       lines of credit:
         Banking
          subsidiaries            -        -       -       -        -
         Washington Mutual
          Finance                 -        -       -       -        -
      Multi-family                -        1       -       -        -
      Other real estate           5        6       1       1        2
----------------------------------------------------------------------
            Total loans
             secured by real
             estate               5        9       1       1        2
      Consumer:
         Banking
          subsidiaries            5        3       3       2        1
         Washington Mutual
          Finance                 4        5       5       5        4
      Commercial business         5        4      13       5        4
----------------------------------------------------------------------
             Total recoveries
              of loans
              previously
              charged off        19       21      22      13       11
----------------------------------------------------------------------
          Net charge offs      (108)     (88)   (116)    (99)     (97)
----------------------------------------------------------------------
   Balance, end of quarter   $1,653   $1,705  $1,665  $1,621   $1,404
======================================================================

   Net charge offs
    (annualized) as a
    percentage
     of average loans held
      in portfolio             0.29%    0.24%   0.32%   0.27%    0.30%
   Allowance as a percentage
    of total loans held in
    portfolio                  1.12%    1.15%   1.14%   1.12%    1.08%


WM-15

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



                               Dec.     Sept.   June    Mar.    Dec.
                                31,      30,     30,     31,     31,
                               2002     2002    2002    2002    2001
----------------------------------------------------------------------
Nonperforming Assets ("NPAs") and
 Restructured Loans
  Nonaccrual loans(1):
    Home loans               $1,017   $1,068  $1,092  $1,177     $974
    Specialty mortgage
     finance(2)                 488      407     403     401      328
----------------------------------------------------------------------
      Total home loan
       nonaccrual loans       1,505    1,475   1,495   1,578    1,302
    Home construction loans:
        Builder(3)               42       48      44      57       26
        Custom(4)                 7        6       8      15       11
    Home equity loans and
     lines of credit:
        Banking subsidiaries     36       35      35      35       34
        Washington Mutual
         Finance                 37       35      31      29       40
    Multi-family                 50       58      64      51       56
    Other real estate           409      356     371     413      375
----------------------------------------------------------------------
        Total nonaccrual
         loans secured by
         real estate          2,086    2,013   2,048   2,178    1,844
    Consumer:
        Banking subsidiaries     23       13      13      18       12
        Washington Mutual
         Finance                 69       76      75      79       74
    Commercial business          79       86      96     116      100
----------------------------------------------------------------------
       Total nonaccrual
        loans                 2,257    2,188   2,232   2,391    2,030
  Foreclosed assets:
    Home loans                  156      119     106     118      103
    Specialty mortgage
     finance                     78       88      72      70       69
----------------------------------------------------------------------
      Total home loan
       foreclosed assets        234      207     178     188      172
    Home construction loans:
        Builder                   7        8       7       8        4
        Custom                    -        -       -       -        -
    Home equity loans and
     lines of credit:
        Banking subsidiaries      7        5       4       3        1
        Washington Mutual
         Finance                  8        9       8       9        9
    Multi-family                  -        -       -       -        -
    Other real estate            75       72      67      47       31
----------------------------------------------------------------------
        Total foreclosed
         loans secured by
         real estate            331      301     264     255      217
    Consumer:
        Banking subsidiaries      5        8      10      12       11
        Washington Mutual
         Finance                  -        -       -       -        -
    Commercial business           -        -       -       -        -
----------------------------------------------------------------------
       Foreclosed assets        336      309     274     267      228
----------------------------------------------------------------------
       Total NPAs            $2,593   $2,497  $2,506  $2,658   $2,258
       As a percentage of
        total assets           0.97%    0.95%   0.96%   0.97%    0.93%

   Restructured loans           $98     $112    $119    $130     $118
----------------------------------------------------------------------
        Total NPAs and
         restructured loans  $2,691   $2,609  $2,625  $2,788   $2,376
======================================================================



(1)   Excludes nonaccrual loans held for sale of $119 million at
      December 31, 2002.  Prior periods also reflect the exclusion of
      nonaccrual loans held for sale of $105 million, $114 million,
      $122 million and $123 million at September 30, 2002, June 30,
      2002, March 31, 2002 and December 31, 2001.  Loans held for sale
      are accounted for at lower of aggregate cost or market value,
      with valuation changes included as adjustments to gain from
      mortgage loans.
(2)   Represents purchased subprime loan portfolios.
(3)   Represents loans to builders for the purpose of financing the
      acquisition, development and construction of  single-family
      residences for sale.
(4)   Represents construction loans made directly to the intended
      occupant of a single-family residence.

WM-16

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

    The Company uses interest rate risk management contracts as tools
to manage interest rate risk. The following tables summarize the key
contractual terms associated with these contracts. Interest rate risk
management contracts that are embedded with certain adjustable and
fixed-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. The following
estimated fair value amounts have been determined by the Company using
available market information and appropriate valuation methodologies.
Substantially all of the pay-fixed swaps, receive-fixed swaps, payor
swaptions, receiver swaptions and embedded derivatives are indexed to
three-month LIBOR.



                                            Dec. 31, 2002
----------------------------------------------------------------------
                                            Maturity Range
----------------------------------------------------------------------

                                           Counter-
                                           Party       Total
                             Net Fair      Credit     Notional
                               Value        Risk       Amount    2003
----------------------------------------------------------------------
Interest Rate Risk
 Management Contracts:
  Asset/Liability Management(1)
    Pay-fixed swaps:         $(1,143)      $   -
       Contractual maturity                            $29,742  $8,416
       Weighted average pay
        rate                                             3.92%   2.92%
       Weighted average
        receive rate                                     1.56%   1.56%
    Receive-fixed swaps:         591         591
       Contractual maturity                             $5,905    $825
       Weighted average pay
        rate                                             1.39%   1.21%
       Weighted average
        receive rate                                     5.81%   5.40%
    Interest rate
     caps/corridors:               -           -
       Contractual maturity                               $526    $271
       Weighted average
        strike rate                                      7.61%   7.62%
    Payor swaptions:               -           -
       Contractual maturity
        (option)                                        $5,000  $5,000
       Weighted average
        strike rate                                      6.12%   6.12%
       Contractual maturity
        (swap)                                               -       -
       Weighted average
        strike rate                                          -       -
    Embedded pay-fixed
     swaps:                     (207)          -
       Contractual maturity                             $2,750       -
       Weighted average pay
        rate                                             4.73%       -
       Weighted average
        receive
        rate                                             1.74%       -
    Embedded caps:                 -           -
       Contractual maturity                               $641    $141
       Weighted average
        strike rate                                      7.64%   7.25%
    Embedded payor
     swaptions(2):                 4           4
       Contractual maturity
        (option)                                        $6,400  $5,900
       Weighted average
        strike rate                                      6.14%   6.13%
       Contractual maturity
        (swap)                                               -       -
       Weighted average
        strike
        rate                                                 -       -
----------------------------------------------------------------------
           Total interest
            rate
            contracts           (755)        595       $50,964
    Forward purchase
     commitments:                101         101
       Contractual maturity                            $10,193 $10,193
       Weighted average
        price                                           102.38  102.38
    Forward sales
     commitments:               (662)          -
       Contractual maturity                            $41,238 $41,238
       Weighted average
        price                                           102.34  102.34
    Mortgage put options:          7           7
       Contractual maturity                            $ 7,150 $ 7,150
       Weighted average
        strike price                                     99.28   99.28
----------------------------------------------------------------------
        Total asset/liability
         management          $(1,309)       $703      $109,545
======================================================================


                                            Dec. 31, 2002
----------------------------------------------------------------------
                                            Maturity Range
----------------------------------------------------------------------
                                                                After
                                 2004    2005    2006    2007    2007
----------------------------------------------------------------------
Interest Rate Risk Management
 Contracts:
  Asset/Liability Management(1)
    Pay-fixed swaps:
       Contractual maturity     $8,834  $3,210  $4,709  $3,700    $873
       Weighted average pay rate 4.03%   4.09%   4.39%   5.02%   4.68%
       Weighted average receive
        rate                     1.53%   1.57%   1.58%   1.66%   1.37%
    Receive-fixed swaps:
       Contractual maturity       $200    $530  $1,000       -  $3,350
       Weighted average pay rate 1.65%   0.90%   1.40%       -   1.49%
       Weighted average receive
        rate                     6.75%   5.37%   6.81%       -   5.62%
    Interest rate
     caps/corridors:
       Contractual maturity       $191     $64       -       -       -
       Weighted average strike
        rate                     8.14%   5.94%       -       -       -
    Payor swaptions:
       Contractual maturity
        (option)                     -       -       -       -       -
       Weighted average strike
        rate                         -       -       -       -       -
       Contractual maturity
        (swap)                       -       -  $1,000    $750  $3,250
       Weighted average strike
        rate                         -       -   6.05%   6.26%   6.11%
    Embedded pay-fixed swaps:
       Contractual maturity          -       -       -  $2,750       -
       Weighted average pay
        rate                         -       -       -   4.73%       -
       Weighted average receive
        rate                         -       -       -   1.74%       -
    Embedded caps:                   -       -       -       -       -
       Contractual maturity       $500       -       -       -       -
       Weighted average strike
        rate                     7.75%       -       -       -       -
    Embedded payor
     swaptions(2):
       Contractual maturity
        (option)                  $500       -       -       -       -
       Weighted average strike
        rate                     6.21%       -       -       -       -
       Contractual maturity
        (swap)                      -        -  $3,750       -  $2,650
       Weighted average strike
        rate                        -        -   5.99%       -   6.34%
----------------------------------------------------------------------
           Total interest rate
            contracts
    Forward purchase
     commitments:
       Contractual maturity         -       -       -       -        -
       Weighted average price
    Forward sales commitments:
       Contractual maturity         -       -       -       -        -
       Weighted average price
    Mortgage put options:
       Contractual maturity         -       -       -       -        -
       Weighted average strike
        price
----------------------------------------------------------------------
           Total
            asset/liability
            management
======================================================================

        (Continued on next page)

    (1) Interest rate contracts decreased net interest income by $132
        million and $407 million for the three months and year ended
        December 31, 2002.

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


WM-17

                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)
        (Continued from previous page)      Dec. 31, 2002
----------------------------------------------------------------------
                                            Maturity Range
----------------------------------------------------------------------
                                            Counter-
                                             Party     Total
                              Net Fair       Credit   Notional
                                Value         Risk     Amount    2003
----------------------------------------------------------------------
Interest Rate Risk Management
 Contracts:
  MSR Risk Management
    Pay-fixed swaps:            $ (50)     $     -
       Contractual maturity                            $2,903        -
       Weighted average pay rate                        3.77%        -
       Weighted average
        receive
        rate                                            1.41%        -
    Receive-fixed swaps:         2,176       2,176
       Contractual maturity                           $17,915        -
       Weighted average pay
        rate                                            1.57%        -
       Weighted average
        receive
        rate                                            5.65%        -
    Floors(3):                     249         249
       Contractual maturity                            $3,900        -
       Weighted average strike
        rate                                            6.09%        -
    Receiver swaptions:            415         415
       Contractual maturity
        (option)                                       $4,000     $300
       Weighted average strike
        rate                                            6.21%    5.42%
       Contractual maturity
        (swap)                                             -         -
       Weighted average strike
        rate                                               -         -
----------------------------------------------------------------------
            Total interest
             rate contracts      2,790       2,840    $28,718
    Forward purchase
     commitments:                  236         236
       Contractual maturity                           $13,250  $13,250
       Weighted average price                          100.35   100.35
----------------------------------------------------------------------
            Total MSR risk
             management         $3,026  $    3,076    $41,968
======================================================================
                 Total
                  interest
                  rate risk
                    management
                    contracts   $1,717  $    3,779    $151,513
======================================================================

                                            Dec. 31, 2002
----------------------------------------------------------------------
                                            Maturity Range
----------------------------------------------------------------------
                                                                After
                                   2004    2005  2006    2007    2007
----------------------------------------------------------------------
Interest Rate Risk Management
 Contracts:
  MSR Risk Management
    Pay-fixed swaps:
       Contractual maturity           -       -     -  $1,950  $   953
       Weighted average pay rate      -       -     -   3.41%    4.52%
       Weighted average receive
        rate                          -       -     -   1.40%    1.42%
    Receive-fixed swaps:
       Contractual maturity         $561    $500  $700 $1,250  $14,904
       Weighted average pay rate   1.80%   1.41% 1.42%  1.50%    1.58%
       Weighted average receive
        rate                       4.35%   4.54% 5.31%  4.33%    5.86%
    Floors(3):
       Contractual maturity           -       -     -  $3,900        -
       Weighted average strike
        rate                          -       -     -   6.09%        -
    Receiver swaptions:
       Contractual maturity
        (option)                    $800  $2,900    -       -        -
       Weighted average strike
        rate                       5.73%   6.43%    -       -        -
       Contractual maturity
        (swap)                        -       -     -       -   $4,000
       Weighted average strike
        rate                          -       -     -       -    6.21%
----------------------------------------------------------------------
            Total interest rate
             contracts
    Forward purchase
     commitments:
       Contractual maturity           -       -     -       -        -
       Weighted average price
----------------------------------------------------------------------
            Total MSR risk
             management
======================================================================
              Total interest rate
               risk management
               contracts
======================================================================

    (3) At December 31, 2002, none of these floors were effective.
        These contracts will become effective during May and July
        2003.


WM-18


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


    The Company uses interest rate risk management contracts as tools
to manage interest rate risk. The following tables summarize the key
contractual terms associated with these contracts. Interest rate risk
management contracts that are embedded with certain adjustable and
fixed-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. The following
estimated fair value amounts have been determined by the Company using
available market information and appropriate valuation methodologies.
Substantially all of the pay-fixed swaps, receive-fixed swaps, payor
swaptions, receiver swaptions and embedded derivatives are indexed to
three-month LIBOR.



                                          Sept. 30, 2002
--------------------------------------------------------------------
                                          Maturity Range
--------------------------------------------------------------------
                            Net Fair Counter- Total
                              Value  Party   Notional
                                     Credit   Amount
                                      Risk              2002   2003
--------------------------------------------------------------------
Interest Rate Risk Management
 Contracts:
  Asset/Liability Management(1)
    Pay-fixed swaps:        $(1,108)     $-
       Contractual maturity                  $29,363    $413 $8,166
       Weighted average pay
        rate                                    3.94%   3.11%  2.95%
       Weighted average
        receive rate                            1.81%   1.84%  1.81%
    Receive-fixed swaps:        553     553
       Contractual maturity                   $4,322    $100   $600
       Weighted average pay
        rate                                    1.70%   3.31%  1.50%
       Weighted average
        receive rate                            6.39%   8.25%  5.10%
    Interest rate
     caps/collars/corridors:      -       -
       Contractual maturity                     $536     $10   $271
       Weighted average
        strike rate                             7.63%   8.63%  7.62%
    Payor swaptions:              5       5
       Contractual maturity
        (option)                              $5,000       - $5,000
       Weighted average
        strike rate                             6.12%      -   6.12%
       Contractual maturity
        (swap)                                     -       -      -
       Weighted average
        strike rate                                -       -      -
    Embedded pay-fixed
     swaps:                    (199)      -
       Contractual maturity                   $2,750       -      -
       Weighted average pay
        rate                                    4.73%      -      -
       Weighted average
        receive rate                            1.81%      -      -
    Embedded caps:                1       1
       Contractual maturity                     $655       -   $155
       Weighted average
        strike rate                             7.63%      -   7.25%
    Embedded payor
     swaptions(2):               21      21
       Contractual maturity
        (option)                              $6,400       - $5,900
       Weighted average
        strike rate                             6.14%      -   6.13%
       Contractual maturity
        (swap)                                     -       -      -
       Weighted average
        strike rate                                -       -      -
--------------------------------------------------------------------
            Total interest
             rate contracts    (727)    580  $49,026
     Forward purchase
      commitments:               23      23
       Contractual maturity                  $ 5,506 $ 5,506      -
       Weighted average
        price                                 102.71  102.71
     Forward sales
      commitments:             (528)      -
       Contractual maturity                  $43,521 $43,516     $5
       Weighted average
        price                                 101.87  101.87 103.79
    Mortgage put options:        17      17
       Contractual maturity                  $ 6,225 $ 6,225      -
       Weighted average
        strike price                          100.10  100.10
--------------------------------------------------------------------
           Total
            asset/liability
            management      $(1,215)   $620 $104,278
====================================================================




                                          Sept. 30, 2002
--------------------------------------------------------------------
                                          Maturity Range
--------------------------------------------------------------------
                                                                After
                                           2004   2005   2006   2006
---------------------------------------------------------------------
Interest Rate Risk Management Contracts:
  Asset/Liability Management(1)
    Pay-fixed swaps:
       Contractual maturity              $8,834 $3,130 $4,709  $4,111
       Weighted average pay rate           4.03%  4.13%  4.39%   5.08%
       Weighted average receive rate       1.80%  1.80%  1.84%   1.82%
    Receive-fixed swaps:
       Contractual maturity                   -   $530 $1,000  $2,092
       Weighted average pay rate              -   1.11%  1.75%   1.81%
       Weighted average receive rate          -   5.37%  6.81%   6.74%
    Interest rate caps/collars/corridors:
       Contractual maturity                $191    $64      -       -
       Weighted average strike rate        8.14%  5.94%     -       -
    Payor swaptions:
       Contractual maturity (option)          -      -      -       -
       Weighted average strike rate           -      -      -       -
       Contractual maturity (swap)            -      - $1,000  $4,000
       Weighted average strike rate           -      -   6.05%   6.14%
    Embedded pay-fixed swaps:
       Contractual maturity                   -      -      -  $2,750
       Weighted average pay rate              -      -      -    4.73%
       Weighted average receive rate          -      -      -    1.81%
    Embedded caps:
       Contractual maturity                $500      -      -       -
       Weighted average strike rate        7.75%     -      -       -
    Embedded payor swaptions(2):
       Contractual maturity (option)       $500      -      -       -
       Weighted average strike rate        6.21%     -      -       -
       Contractual maturity (swap)            -      - $3,750  $2,650
       Weighted average strike rate           -      -   5.99%   6.34%
----------------------------------------------------------------------
            Total interest
             rate contracts
     Forward purchase commitments:
       Contractual maturity                   -      -      -       -
       Weighted average price
     Forward sales commitments:
       Contractual maturity                   -      -      -       -
       Weighted average price
    Mortgage put options:
       Contractual maturity                   -      -      -       -
       Weighted average strike price
----------------------------------------------------------------------
           Total asset/liability
            management
======================================================================

(Continued on next page)

(1) Interest rate contracts decreased net interest income by $146
    million and $275 million for the three months and nine months
    ended September 30, 2002.

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

WM-19

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


(Continued from previous page)

                                             Sept. 30, 2002
--------------------------------------------------------------------
                                             Maturity Range
--------------------------------------------------------------------
                            Net Fair Counter- Total
                              Value  Party   Notional
                                     Credit   Amount
                                      Risk              2002   2003
--------------------------------------------------------------------
Interest Rate Risk Management
Contracts:
  MSR Risk Management
    Receive-fixed swaps:     $1,665  $1,665
       Contractual maturity                  $12,075       -      -
       Weighted average pay
        rate                                    1.84%      -      -
       Weighted average
        receive rate                            5.93%      -      -
   Floors(3):                   248     248
       Contractual maturity                   $3,900       -      -
       Weighted average
        strike rate                             6.09%      -      -
   Receiver swaptions:          692     692
       Contractual maturity
        (option)                              $5,400    $250   $300
       Weighted average
        strike rate                             6.51%   5.69%  5.42%
       Contractual maturity
        (swap)                                     -       -      -
       Weighted average
        strike rate                                -       -      -
--------------------------------------------------------------------
           Total interest
            rate contracts    2,605   2,605  $21,375
   Forward purchase
    commitments:                 46      46
       Contractual maturity                   $2,025  $2,025      -
       Weighted average
        price                                  99.20   99.20
--------------------------------------------------------------------
           Total MSR risk
            management       $2,651  $2,651  $23,400
====================================================================

       Total interest rate
        risk management
          contracts          $1,436  $3,271 $127,678
====================================================================

(3) At September 30, 2002, none of these floors were effective. These
    contracts will become effective during May and July 2003.



                                             Sept. 30, 2002
--------------------------------------------------------------------
                                             Maturity Range
--------------------------------------------------------------------
                                                                After
                                           2004   2005   2006   2006
---------------------------------------------------------------------
Interest Rate Risk Management
Contracts:
  MSR Risk Management
    Receive-fixed swaps:
       Contractual maturity                   -      -      - $12,075
       Weighted average pay rate              -      -      -    1.84%
       Weighted average receive rate          -      -      -    5.93%
   Floors(3):
       Contractual maturity                   -      -      -  $3,900
       Weighted average strike rate           -      -      -    6.09%
   Receiver swaptions:
       Contractual maturity (option)       $300 $4,550      -       -
       Weighted average strike rate        5.99%  6.66%     -       -
       Contractual maturity (swap)            -      -      -  $5,400
       Weighted average strike rate           -      -      -    6.51%
----------------------------------------------------------------------
           Total interest
            rate contracts
   Forward purchase commitments:
       Contractual maturity                   -      -      -       -
       Weighted average price
----------------------------------------------------------------------
           Total MSR risk management
======================================================================

       Total interest rate risk
         management contracts
======================================================================

(3) At September 30, 2002, none of these floors were effective. These
    contracts will become effective during May and July 2003.

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