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Washington Mutual Announces Record Quarterly Earnings; Board of Directors Increases Cash Dividend

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SEATTLE--July 16, 2002--Washington Mutual, Inc. (NYSE:WM) today announced record quarterly earnings of $984 million, or $1.01 per diluted share, for the quarter ended June 30, 2002, up 11 percent on a per share basis from $798 million, or 91 cents per diluted share for the same period a year ago.

Earnings for the second quarter of 2002 included a full quarter's results of the former operations of HomeSide Lending, Inc. (HomeSide), the U.S. mortgage unit of the National Australia Bank Limited, which Washington Mutual acquired in an asset acquisition on March 1, 2002. Comparative balances for 2001 also do not include results from Dime Bancorp, Inc. (Dime), which Washington Mutual acquired on January 4, 2002.

In addition, new accounting rules eliminated the amortization of goodwill in 2002. The impact of goodwill amortization on net income in the second quarter of 2001 was $28 million, or 3 cents per diluted share.

Highlights of the recently completed quarter included:

  • A return on average common equity of 20.78 percent;

  • Strong loan volume of $57.78 billion, an increase of 34 percent year over year;

  • A reduction in nonperforming assets of $152 million from the previous quarter;

  • Record noninterest income of $1.21 billion, including a 22 percent increase in depositor and other retail banking fees, year over year; and

  • Strong retail checking account growth of nearly 281,000 net new accounts.

"Washington Mutual's strong second-quarter performance illustrates the continued financial strength of the company and our ability to successfully implement the key strategies in each of our core businesses," said Kerry Killinger, the company's chairman, president and CEO. "We are encouraged by the second quarter trend of improving asset quality; however, we continue to closely monitor our credit quality."

"It is equally rewarding to know that our team achieved these exceptional results while simultaneously completing the systems integration of the Dime Savings branch network in the greater New York area, paving the way for the successful growth we anticipate in the nation's largest metropolitan market," added Killinger.

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 27 cents per share on the company's common stock, up from 26 cents per share in the previous quarter. Dividends on the common stock are payable August 15, 2002 to shareholders of record as of July 31, 2002. The board also declared a $0.90625 dividend on Washington Mutual's Series H Preferred Stock which, together with a related purchase contract adjustment payment of $0.09375, will result in an aggregate payment of $1.00 on each unit of the company's Premium Income Equity Securities (PIES). These amounts are payable on August 16, 2002, to shareholders of record as of August 15, 2002.

SECOND-QUARTER RESULTS

Net Interest and Noninterest Income

Net interest income in the second quarter of 2002 was $2.10 billion, up 26 percent from $1.67 billion in the prior year's second quarter but down from $2.40 billion in the first quarter of 2002, as expected.

The net interest spread for the quarter was 3.37 percent, compared with 2.80 percent for the same period a year earlier and 3.60 percent in the first quarter of 2002. The margin was 3.54 percent in the most recent quarter versus 3.21 percent in the second quarter of 2001 and

  • 3.74 percent in the first quarter of 2002. The decline in the margin from the first quarter reflected the lag effect of last year's Federal Reserve rate cuts on asset yields and an increase in borrowing rates that resulted from the company's interest-rate risk management initiatives, which included extending the maturities of wholesale borrowings. Washington Mutual anticipates the margin compression to continue through year-end.

Depositor and other retail banking fees were $398 million, up 22 percent from $325 million a year earlier. During the second quarter, the company added nearly 281,000 net new retail checking accounts.

Low residential mortgage rates enabled the company to generate a significant amount of salable fixed-rate SFR loan volume, resulting in gain from SFR mortgage loans of $220 million during the quarter.

Anticipated prepayment rates within the company's mortgage servicing rights (MSR) portfolio resulted in the addition of $1.11 billion to the impairment reserve. However, the impairment was offset by the company's successful risk management activities.

"We are pleased with the performance of our risk management activities and believe the company is well positioned to offset potential impairments to the value of the MSR should interest rates fall further," Killinger said.

Washington Mutual continues to monitor the size of its MSR asset. As part of this active management, the company sold $711 million in excess servicing rights in a privately placed transaction for no material loss or gain.

"The recent sale of excess servicing reflects our efforts to manage growth of our MSR asset," Killinger said. "Depending on market conditions and our desire to expand customer relationships, we may periodically sell -- or purchase -- additional servicing in the future."

Lending

The second quarter saw total loan volume of $57.78 billion for the quarter, up 34 percent from $43.02 billion one year ago.

SFR loan volume was $50.45 billion, up 35 percent from $37.27 billion one year ago, but down from the first quarter's record of $59.16 billion. Approximately 66 percent of the second-quarter's SFR volume (excluding specialty mortgage finance) represented fixed-rate mortgages.

Lending volume for loans other than SFR remained strong, totaling $7.33 billion for the most recent quarter, up 27 percent over $5.75 billion in the second quarter of 2001.

Efficiency Ratio

The efficiency ratio, defined as noninterest expense (excluding amortization of other intangible assets and, in 2001, amortization of goodwill) as a percentage of net interest income and noninterest income, was 47.45 percent in the most recent quarter compared with

  • 43.40 percent in the second quarter of 2001. The second quarter's efficiency ratio, while up slightly from the previous quarter's 46.96 percent, partially reflected the early stages of the integration of the former HomeSide operations.

Noninterest expense totaled $1.60 billion in the second quarter of 2002, compared with first quarter 2002's figure of $1.53 billion and $1.12 billion in the second quarter of 2001.

Credit Quality Improves

Killinger said that Washington Mutual's credit quality remains in line with the company's expectations. Total nonperforming assets were $2.51 billion at June 30, 2002, an improvement from $2.66 billion at March 31, 2002.

The provision for loan and lease losses was $160 million, versus $92 million for the same period in the previous year, but down from $175 million in the first quarter of 2002. The allowance for loan and lease losses was $1.67 billion at June 30, 2002. Net loan charge offs for the second quarter were $116 million, compared with $99 million in the first quarter of 2002.

Balance Sheet and Capital Management

Consolidated assets at June 30, 2002 were $261.28 billion, compared with $275.22 billion at March 31, 2002, primarily reflecting the company's current effort to reduce long maturity Treasury and other investment securities in the low-rate environment.

While total deposits were up only slightly to $129.07 billion at the end of the second quarter, retail deposits generated by the company's consumer banking operations were up $4.95 billion - or 4 percent - during the quarter. At June 30, 2002, deposits in checking, savings and money market accounts represented 72 percent of total deposits, compared with 68 percent at March 31, 2002.

Stockholders' equity at June 30, 2002 totaled $19.59 billion and the capital ratios of Washington Mutual's banking subsidiaries continued to exceed regulatory requirements for classification as "well-capitalized," the highest regulatory standard.

During the quarter, the company repurchased 1.0 million shares of its common stock at an average price of $37.20 while maintaining the tangible common equity ratio above 5 percent.

Company Updates

  • With the successful completion of the deposit conversion of the Dime network at the end of May, Killinger noted that the integration activities for the Dime's banking operations are essentially complete.

  • The company also successfully completed the conversion of the loan servicing records of the former mortgage operations of Fleet Financial, Inc.

  • During the quarter, Washington Mutual also signed 15 leases to open new Occasio locations in the greater New York area. Earlier this year, the company announced plans to open up to 40 financial stores in the greater New York area over the next year, which will extend its existing branch network of more than 120 retail financial centers in the market and complement its strong mortgage position in New York/New Jersey.

  • In April, the company announced plans to open 20 of 30 Occasio financial stores planned for the greater Denver area in 2002.

  • In June, Washington Mutual announced the appointment of Office of the Comptroller of the Currency (OCC) and former Office of Thrift Supervision (OTS) executive John Robinson as Executive Vice President of Corporate Risk Management within the company's Enterprise Risk Management group.

Outlook

"Our strong performance in the first half of 2002 bodes well for yet another record year for Washington Mutual," Killinger said. "We anticipate continued strong operating results from all of our core businesses as we continue to profitably grow and gain additional synergies from our recently completed acquisitions.

"While asset growth in the current low-rate environment will likely be limited, we fully expect our fee-based sources of income to continue increasing around their double-digit pace of the first half of the year. In addition, we expect capital deployment to be directed toward opportunities that provide attractive returns at low risk to the company, such as the repurchase of our common stock."

With a history dating back to 1889, Washington Mutual is a national financial services company that provides a diversified line of products and services to consumers and small- to mid-sized businesses. At June 30, 2002, Washington Mutual and its subsidiaries had assets of $261.28 billion. Washington Mutual 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.

A live webcast of the company's quarterly earnings conference call will be held on Wednesday, July 17 at 10:30 a.m. Eastern Time at www.wamu.com or via phone at 1-888-391-7808. International callers may dial 1-603-395-0029. A recording of the conference call will be available after 1 p.m. Eastern Time on Wednesday, July 17, 2002 through 2:59 a.m. Eastern Time on Saturday, July 27, 2002 at 1-800-944-3084. Callers from outside the United States may dial 1-402-220-0303.

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             Six Months Ended
----------------------------------------------------------------------
                          June 30, Mar. 31, June 30, June 30, June 30,
                             2002     2002     2001     2002     2001
----------------------------------------------------------------------
Interest Income
   Loans                  $ 2,696  $ 2,854  $ 2,924  $ 5,550  $ 5,735
   Available-for-sale
    ("AFS") securities        812      947      940    1,759    1,972
   Other interest and
    dividend income            77       82       72      159      143
----------------------------------------------------------------------
      Total interest
       income               3,585    3,883    3,936    7,468    7,850
Interest Expense
   Deposits                   664      648      823    1,312    1,710
   Borrowings                 821      839    1,440    1,660    3,107
----------------------------------------------------------------------
      Total interest
       expense              1,485    1,487    2,263    2,972    4,817
----------------------------------------------------------------------
          Net interest
           income           2,100    2,396    1,673    4,496    3,033
Provision for loan and
 lease losses                 160      175       92      335      175
----------------------------------------------------------------------
          Net interest
           income after
           provision for
           loan and lease
           losses           1,940    2,221    1,581    4,161    2,858
Noninterest Income
   Depositor and other
    retail banking fees       398      361      325      759      604
   Securities fees and
    commissions                98       82       76      180      149
   Insurance income            39       47       23       86       43
   Single-family
    residential ("SFR")
    mortgage banking
    (expense) income         (733)     393      264     (340)     537
   Portfolio loan related
    income                     75       65       53      140       85
   Gain (loss) from other
    AFS securities            137     (298)       5     (161)     (44)
   Revaluation gain
    (loss) from
    derivatives               857      (15)       1      842       (2)
   Gain on extinguishment
    of securities sold
    under agreements to
    repurchase                121       74        -      195        -
   Net settlement income
    from interest-rate
    swaps                     101        6        -      107        -
   Other income               115       92       58      208      183
----------------------------------------------------------------------
       Total noninterest
        income              1,208      807      805    2,016    1,555
Noninterest Expense
   Compensation and
    benefits                  732      690      466    1,422      882
   Occupancy and
    equipment                 283      288      190      571      373
   Telecommunications and
    outsourced
    information services      134      139      105      273      211
   Depositor and other
    retail banking losses      48       50       33       98       63
   Amortization of
    goodwill                    -        -       33        -       62
   Amortization of other
    intangible assets          26       25       10       51       17
   Professional fees           52       55       51      107       88
   Advertising and
    promotion                  69       44       51      113       83
   Other expense              252      238      180      490      353
----------------------------------------------------------------------
       Total noninterest
        expense             1,596    1,529    1,119    3,125    2,132
----------------------------------------------------------------------
           Income before
            income taxes    1,552    1,499    1,267    3,052    2,281
Income taxes                  568      549      469    1,117      842
----------------------------------------------------------------------
Net Income                  $ 984    $ 950    $ 798  $ 1,935  $ 1,439
======================================================================
Net Income Attributable
 to Common Stock            $ 982    $ 948    $ 796  $ 1,931  $ 1,436
======================================================================

Net income per common
 share:
   Basic                   $ 1.03   $ 1.00   $ 0.93   $ 2.03   $ 1.70
   Diluted                   1.01     0.98     0.91     1.99     1.68


Dividends declared per
 common share              $ 0.26   $ 0.25   $ 0.22   $ 0.51   $ 0.43

Basic weighted average
 number of common shares
 outstanding (in
 thousands)               954,662  947,653  857,912  951,177  842,611

Diluted weighted average
 number of common shares
 outstanding (in
 thousands)               974,153  963,242  872,762  968,717  855,029


WM-2
                      Washington Mutual, Inc.
            Consolidated Statements of Financial Condition
             (dollars in millions, except per share data)
                              (unaudited)

                                     June 30,    Dec. 31,    June 30,
                                       2002        2001        2001
----------------------------------------------------------------------
Assets
   Cash and cash equivalents         $ 4,709     $ 3,563     $ 3,741
   Federal funds sold and
    securities purchased under
    resale agreements                    314       2,481         824
   AFS securities:
      Mortgage-backed securities
       ("MBS")                        24,698      28,568      41,029
      Investment securities           34,119      29,781      12,421
   Loans held for sale                21,147      23,842      20,053
   Loans:
      Loans held in portfolio        146,666     132,991     131,551
      Allowance for loan and
       lease losses                   (1,665)     (1,404)     (1,170)
----------------------------------------------------------------------
         Total loans held in
          portfolio, net of
          allowance for loan and
          lease losses               145,001     131,587     130,381
   Mortgage servicing rights
    ("MSR")                            6,489       6,241       6,799
   Investment in Federal Home
    Loan Banks ("FHLBs")               3,908       3,873       3,767
   Goodwill                            5,985       1,981       2,136
   Other assets                       14,911      10,589       8,147
----------------------------------------------------------------------
         Total assets              $ 261,281   $ 242,506   $ 229,298
======================================================================

Liabilities
   Deposits:
      Checking accounts             $ 61,911    $ 37,736    $ 23,491
      Savings accounts and money
       market deposit accounts
       ("MMDAs")                      31,045      32,484      35,303
      Time deposit accounts           36,113      36,962      38,160
----------------------------------------------------------------------
         Total deposits              129,069     107,182      96,954
   Federal funds purchased and
    commercial paper                   3,775       4,690       4,080
   Securities sold under
    agreements to repurchase
    ("repurchase agreements")         32,069      39,447      30,011
   Advances from FHLBs                58,321      61,182      63,780
   Other borrowings                   14,017      12,576      15,831
   Other liabilities                   4,342       3,264       5,129
----------------------------------------------------------------------
         Total liabilities           241,593     228,341     215,785
Redeemable preferred stock               102         102         102
Stockholders' equity                  19,586      14,063      13,411
----------------------------------------------------------------------
         Total liabilities,
          redeemable preferred
          stock, and stockholders'
          equity                   $ 261,281   $ 242,506   $ 229,298
======================================================================

Common shares outstanding at end
 of period (in thousands) (1)        974,188     873,089     878,366

Book value per common share          $ 20.48     $ 16.45     $ 15.59

Tangible book value per common
 share                                 14.04       14.18       13.41

Full-time equivalent and leased
 employees at end of period           50,001      39,465      37,106

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

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


WM-3
                        Washington Mutual, Inc.
                    Selected Financial Information
             (dollars in millions, except per share data)
                              (unaudited)


                                                 Six Months Ended
----------------------------------------------------------------------
                                             June 30,         June 30,
                                               2002             2001
----------------------------------------------------------------------
Stockholders' Equity Rollforward
Balance, beginning of period               $ 14,063         $ 10,166
Net income                                    1,935            1,439
Other comprehensive income, net of
 tax                                            231              259
Cash dividends declared on common
 stock                                         (496)            (361)
Cash dividends declared on
 redeemable preferred stock                      (4)              (3)
Common stock repurchased and retired            (37)               -
Common stock warrants issued, net of
 issuance costs                                   -              398
Common stock issued for acquisitions          3,762            1,389
Common stock issued                             132              124
----------------------------------------------------------------------
Balance, end of period                     $ 19,586         $ 13,411
======================================================================


                                 Quarter Ended      Six Months Ended
----------------------------------------------------------------------
                        June 30, Mar. 31, June 30, June 30,  June 30,
                          2002     2002     2001     2002      2001
----------------------------------------------------------------------
Pro Forma (1)
Income before income
 taxes                  $ 1,552  $ 1,499  $ 1,267  $ 3,052   $ 2,281
Add back: goodwill
 previously amortized         -        -       33        -        62
----------------------------------------------------------------------
Income before income taxes,
 excluding amortization
 of goodwill              1,552    1,499    1,300    3,052     2,343
Income taxes               (568)    (549)    (474)  (1,117)     (850)
----------------------------------------------------------------------
Net income, excluding
 amortization of goodwill   984      950      826    1,935     1,493
Redeemable preferred
 stock dividends             (2)      (2)      (2)      (4)       (3)
----------------------------------------------------------------------
Net income attributable
 to common stock,
 excluding amortization
 of goodwill            $   982  $   948  $   824  $ 1,931   $ 1,490
======================================================================
Net income per diluted
 common share, excluding
 amortization of
 goodwill               $  1.01  $  0.98  $  0.94  $  1.99   $  1.74

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

(1) Represents pro forma impact to net income for the quarter-to-date
    June 30, 2002, March 31, 2002 and June 30, 2001 and to
    year-to-date June 30, 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.

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

                                      Quarter Ended
----------------------------------------------------------------------
                     June 30,  Mar. 31, Dec. 31,  Sept. 30, June 30,
                       2002      2002     2001      2001      2001
----------------------------------------------------------------------
PROFITABILITY
 Net interest
  income             $ 2,100  $ 2,396  $ 2,027   $ 1,816   $ 1,673
 Net interest margin    3.54 %   3.74 %   3.80 %    3.53 %    3.21 %
 Noninterest income  $ 1,208  $   807  $   830   $   863   $   805
 Noninterest expense   1,596    1,529    1,331     1,154     1,119
 Net income              984      950      842       832       798
 Net income per common
  share:
     Basic           $  1.03  $  1.00  $  0.98   $  0.97   $  0.93
     Diluted            1.01     0.98     0.97      0.94      0.91
 Basic weighted average
  number of common
  shares outstanding
  (in thousands)     954,662  947,653  856,014   859,497   857,912
 Diluted weighted
  average number of
  common shares
  outstanding
  (in thousands)     974,153  963,242  868,951   879,374   872,762
 Return on average
  assets                1.48 %   1.34 %   1.43 %    1.46 %    1.43 %
 Return on average
  common equity        20.78    20.68    23.36     23.64     24.72
 Efficiency ratio,
  excluding
  amortization of other
  intangible assets    47.45    46.96    44.99 (4) 41.29 (4) 43.40 (4)
 Efficiency ratio,
  including
  amortization of
  other intangible
  assets               48.22    47.75    46.58 (5) 43.09 (5) 45.14 (5)

ASSET QUALITY
 Period end:
  Nonaccrual
   loans(6)          $ 2,232  $ 2,391  $ 2,030   $ 1,726   $ 1,257
  Foreclosed assets      274      267      228       221       203
  Restructured loans     119      130      118       128       158
  Total nonaccrual
   loans, foreclosed
   assets and
   restructured loans  2,625    2,788    2,376     2,075     1,618
  Allowance for loan
   and lease losses    1,665    1,621    1,404     1,295     1,170
    Allowance as a
     percentage of total
     loans held in
     portfolio          1.14 %   1.11 %   1.06 %    0.97 %    0.89 %
  Quarter-to-date:
    Provision for loan
     and lease
     losses          $   160  $   175  $   200   $   200   $    92
    Net charge offs     (116)     (99)     (97)      (75)      (75)

CAPITAL ADEQUACY
 Stockholders'
  equity/total assets   7.50 %   6.59 %   5.80 %    6.50 %    5.85 %
 Stockholders'
  equity(1)/total
  assets(1)             7.51     6.80     5.89      6.24      5.77
 Tangible common
  equity(1)(2)/total
  assets(1)(2)          5.28     4.69     5.14      5.41      5.00
 Estimated total
  risk-based
  capital/risk-
  weighted assets(3)   12.40    11.69    12.87     12.35     11.75

SUPPLEMENTAL DATA
 Average balance
  sheet:
    Average loans   $168,879 $174,770 $154,924  $151,930  $148,704
    Average
     interest-
     earning assets  236,504  255,175  214,063   206,799   207,549
    Average total
     assets          266,357  284,208  236,335   228,457   223,842
    Average
     interest-
     bearing
     deposits        108,231  102,085   83,934    80,409    79,335
    Average
     noninterest-
     bearing
     deposits         22,417   21,767   19,699    18,767    15,494
    Average
     stockholders'
     equity           18,913   18,347   14,389    14,054    12,887
 Period end balance
  sheet:
    Total loans held
     in portfolio,
     net of
     allowance
     for loan and
     lease losses    145,001  144,743  131,587   131,605   130,381
    Total loans held
     for sale         21,147   23,317   23,842    18,035    20,053
    Total interest-
     earning assets  233,896  247,727  223,695   205,064   212,216
    Total assets     261,281  275,223  242,506   223,638   229,298
    Total interest-
     bearing
     deposits        108,441  107,174   84,741    81,062    79,269
    Total
     noninterest-
     bearing
     deposits         20,628   21,836   22,441    18,671    17,685
    Total
     stockholders'
     equity           19,586   18,128   14,063    14,529    13,411
 Dividends declared
  per common share    $ 0.26   $ 0.25   $ 0.24    $ 0.23    $ 0.22

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

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

(2) Excludes goodwill and intangible assets other than MSR.

(3) 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.

(4) Excludes amortization of goodwill.

(5) Includes amortization of goodwill.

(6) Excludes nonaccrual loans held for sale.


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

----------------------------------------------------------------------
                                       Quarter Ended
                      June 30, 2002    Mar. 31, 2002    June 30, 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           $1,995  1.89%    $1,139  1.63%     $263  4.31%
MBS(1)                22,471  5.96     25,248  5.39    43,051  7.26
Investment
 securities and
 other(1)             43,159  5.05     54,018  5.12    15,531  5.88
Loans(2):
SFR                  108,312  5.87    114,792  6.07    98,642  7.32
Specialty
 mortgage
 finance(3)           10,423  9.75     10,406  9.59     8,175  9.99
----------------------------          -------         -------
   Total SFR         118,735  6.21    125,198  6.36   106,817  7.53
SFR
 construction(4)       2,272  7.05      2,498  6.62     2,964  8.35
Second mortgage
and other consumer:
 Banking
  subsidiaries        16,057  6.66     14,478  6.84     9,428  8.78
 Washington Mutual
  Finance              2,566 16.50      2,557 16.66     2,518 16.86
Commercial
 business              4,963  5.54      5,647  5.52     5,045  7.58
Commercial real
 estate:
   Multi-family       17,432  5.98     17,552  6.35    17,121  8.09
   Other commercial
    real estate        6,854  6.46      6,840  6.82     4,811  8.09
----------------------------          -------         -------
     Total loans     168,879  6.38    174,770  6.54   148,704  7.87
----------------------------          -------         -------
Total interest-
 earning assets      236,504  6.06    255,175  6.11   207,549  7.59
Noninterest-
 earning assets:
MSR                    7,828            7,006           4,623
Goodwill               5,952            5,401           2,034
Other                 16,073           16,626           9,636
----------------------------          -------         -------
   Total assets     $266,357         $284,208        $223,842
============================         ========         =======
Liabilities
Interest-bearing
 liabilities:
Deposits:
Interest-bearing
 checking            $36,991  2.65    $23,873  2.76    $6,097  1.46
Savings accounts
 and MMDAs            32,249  1.51     36,179  1.57    35,845  3.32
Time deposit
 accounts             38,991  3.06     42,033  3.33    37,393  5.41
----------------------------          -------         -------
Total interest-
 bearing
 deposits            108,231  2.46    102,085  2.57    79,335  4.16
Federal funds
 purchased and
 commercial paper      3,562  1.75      5,565  1.83     4,661  4.56
Repurchase
 agreements           35,812  2.44     53,450  1.62    30,295  4.45
Advances from
 FHLBs                59,651  2.75     65,302  2.63    62,241  5.29
Other                 13,976  5.14     14,156  5.10    12,813  7.20
----------------------------          -------         -------
Total interest-
 bearing
 liabilities         221,232  2.69    240,558  2.51   189,345  4.79
Noninterest-
 bearing
 sources:
Noninterest-
 bearing
 deposits             22,417           21,767          15,494
Other
 liabilities           3,795            3,536           6,116
Stockholders'
 equity               18,913           18,347          12,887
----------------------------          -------         -------
Total liabilities
 and stockholders'
 equity             $266,357         $284,208        $223,842
============================         ========        ========
Net interest
 spread                       3.37             3.60            2.80
Impact of
 noninterest-
 bearing sources              0.17             0.14            0.41
Net interest
 margin                       3.54             3.74            3.21


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

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

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

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


WM-6
                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)

                                             Six Months Ended
----------------------------------------------------------------------
                                      June 30,2002       June 30,2001
                                     Balance    Rate    Balance   Rate
----------------------------------------------------------------------
Average Balances and Weighted Average
 Interest Rates
Assets
Interest-earning assets:
   Federal funds sold and
   securities purchased under
   resale agreements                $ 1,569    1.79%     $ 349   5.55%
MBS(1)                               23,852    5.66     48,450   7.17
Investment securities and
 other(1)                            48,559    5.08     12,341   5.97
Loans(2):
SFR                                 111,538    5.97     94,925   7.49
Specialty mortgage finance(3)        10,404    9.67      7,825  10.05
-------------------------------------------           --------
   Total SFR                        121,942    6.28    102,750   7.68
SFR construction(4)                   2,384    6.82      2,706   8.60
Second mortgage and other
 consumer:
   Banking subsidiaries              15,277    6.75      9,114   8.90
   Washington Mutual Finance          2,564   16.61      2,514  17.04
Commercial business                   5,303    5.52      4,414   8.09
Commercial real estate:
   Multi-family                      17,492    6.17     16,851   8.19
   Other commercial real estate       6,847    6.64      4,464   8.32
-------------------------------------------           --------
      Total loans                   171,809    6.47    142,813   8.04
-------------------------------------------           --------
        Total interest-earning
         assets                     245,789    6.08    203,953   7.70
Noninterest-earning assets:
MSR                                   7,419              3,734
Goodwill                              5,614              1,694
Other                                16,380              8,953
-------------------------------------------           --------
      Total assets                $ 275,202          $ 218,334
===========================================          =========

Liabilities
Interest-bearing liabilities:
Deposits:
Interest-bearing checking          $ 30,468    2.70    $ 6,247   1.65
Savings accounts and MMDAs           34,640    1.53     35,262   3.70
Time deposit accounts                40,504    3.20     36,506   5.59
-------------------------------------------           --------
   Total interest-bearing
    deposits                        105,612    2.50     78,015   4.42
   Federal funds purchased and
    commercial paper                  4,558    1.80      4,876   5.23
Repurchase agreements                44,582    1.95     30,667   5.24
Advances from FHLBs                  62,461    2.68     64,248   5.57
Other                                14,066    5.12     11,644   7.07
-------------------------------------------           --------
   Total interest-bearing
    liabilities                     231,279    2.59    189,450   5.13
Noninterest-bearing sources:
Noninterest-bearing deposits         21,656             13,241
Other liabilities                     3,666              3,468
Stockholders' Equity                 18,601             12,175
-------------------------------------------           --------
   Total liabilities and
    stockholders' equity          $ 275,202          $ 218,334
===========================================          =========

Net interest spread                            3.49              2.57
Impact of noninterest-bearing
 sources                                       0.16              0.37
Net interest margin                            3.65              2.94

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

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

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

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


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


                                Quarter Ended        Six Months Ended
----------------------------------------------------------------------
                          June 30, Mar. 31, June 30, June 30, June 30,
                            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        954,662  947,653  857,912  951,177  842,611
 Dilutive effect of
  potential common shares
  from:
     Stock options          9,911    8,602    8,631    9,256    8,907
     Premium Income
      Equity
      Securities(SM)        1,671    1,360    1,529    1,516    1,166
     Trust Preferred
      Income Equity
        Redeemable
         Securities(SM)     7,909    5,627    4,690    6,768    2,345
----------------------------------------------------------------------
                           19,491   15,589   14,850   17,540   12,418
----------------------------------------------------------------------
Diluted weighted average
 number of common
shares outstanding        974,153  963,242  872,762  968,717  855,029
======================================================================


WM-8
                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)


                             Quarter Ended           Six Months Ended
----------------------------------------------------------------------
                    June 30,  Mar. 31,   June 30,   June 30,  June 30,
                      2002     2002       2001        2002      2001
----------------------------------------------------------------------
Loan Volume
SFR:
Adjustable rate
 ("ARMs")           $ 16,093  $ 16,608  $  7,968   $ 32,701   $ 15,213
Fixed rate            30,999    39,231    26,316     70,230     37,477
Specialty mortgage
 finance (1)           3,358     3,320     2,987      6,678      5,220
                    --------  --------  --------   --------   --------
Total SFR loan
volume                50,450    59,159    37,271    109,609     57,910
SFR construction:
Builder (2)              589       417       839      1,006      1,914
Custom (3)               136        96       248        232        370
 Second mortgage
 and other consumer:
Banking subsidiaries   3,912     3,720     2,165      7,632      3,500
Washington Mutual
 Finance                 536       452       505        988        954
Commercial business      598       643       819      1,241      1,575
Commercial real
 estate:
Multi-family           1,242       864       850      2,106      1,402
Other commercial
 real estate             316       336       324        652        638
                    --------  --------  --------   --------   --------
Total loan volume   $ 57,779  $ 65,687  $ 43,021   $123,466   $ 68,263
                    ========  ========  ========   ========   ========

Loan Volume by
 Channel
Originated          $ 39,667  $ 43,538  $ 29,147   $ 83,205   $ 49,761
Purchased/
 Correspondent        18,112    22,149    13,874     40,261     18,502
                    --------  --------  --------   --------   --------
Total loan volume
 by channel         $ 57,779  $ 65,687  $ 43,021   $123,466   $ 68,263
                    ========  ========  ========   ========   ========

Refinancing
 Activity(4)
SFR:
ARMs                $ 10,575  $ 14,157  $  5,419   $ 24,732   $  9,740
Fixed rate            16,584    25,933    17,895     42,517     24,185
SFR construction          15        13        10         28         16
 Second mortgage
 and other consumer      687       641        82      1,328        141
Commercial real
 estate                  537       322       392        859        577
                    --------  --------  --------   --------   --------
Total refinances    $ 28,398  $ 41,066  $ 23,798   $ 69,464   $ 34,659
                    ========  ========  ========   ========   ========

SFR Loan Volume
 by Index:
Short-term ARMs:
Treasury indices    $  5,002  $  6,480  $  4,267   $ 11,482   $  9,621
COFI                   1,444       728       439      2,172        995
Other                  1,824     1,494         5      3,318         14
                    --------  --------  --------   --------   --------
Total short-term
 ARMs                  8,270     8,702     4,711     16,972     10,630
Medium-term ARMs      10,615    10,428     4,423     21,043      7,623
Fixed-rate
 mortgages            31,565    40,029    28,137     71,594     39,657
                    --------  --------  --------   --------   --------
Total SFR loan
 volume             $ 50,450  $ 59,159  $ 37,271   $109,609   $ 57,910
                    ========  ========  ========   ========   ========

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

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

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

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


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

                       Change from
                         Mar. 31,
                          2002
                       to June 30,   June 30,    Mar. 31,   June 30,
                          2002         2002        2002       2001
---------------------------------------------------------------------
Loans by Property Type
 and MBS
   Loans held in
    portfolio:
      SFR                $ (1,322)   $ 85,170    $ 86,492   $ 81,880
      Specialty
       mortgage
       finance(1)              40      10,584      10,544      8,290
---------------------------------------------------------------------
         Total SFR
          loans            (1,282)     95,754      97,036     90,170
      SFR
       construction:
         Builder(2)          (227)      1,761       1,988      2,468
         Custom(3)            (31)        372         403        322
      Second mortgage
       and other consumer:
         Banking
          subsidiaries      1,609      16,655      15,046      9,681
         Washington
          Mutual
          Finance             104       2,677       2,573      2,518
      Commercial business    (185)      5,045       5,230      5,074
      Commercial real
       estate:
         Multi-family         339      17,567      17,228     16,581
         Other commercial
          real estate         (25)      6,835       6,860      4,737
---------------------------------------------------------------------
   Total loans held in
    portfolio                 302     146,666     146,364    131,551
   Less: allowance for
    loan and lease
    losses                    (44)     (1,665)     (1,621)    (1,170)
   Loans securitized
    and retained as
    MBS                    (1,801)     19,344      21,145     28,518
---------------------------------------------------------------------
      Total net loans
       held in
       portfolio and
       loans securitized
       and retained
       as MBS              (1,543)    164,345     165,888    158,899
   Loans held for sale     (2,170)     21,147      23,317     20,053
---------------------------------------------------------------------
      Total net loans
       and loans
       securitized and
       retained as MBS     (3,713)    185,492     189,205    178,952
   Purchased MBS            2,152       5,354       3,202     12,511
---------------------------------------------------------------------
      Total net loans
       and MBS           $ (1,561)  $ 190,846   $ 192,407  $ 191,463
=====================================================================

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

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

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


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


                                              Mar. 31,     Dec. 31,
                                                2002         2001
                                                 to           to
                                              June 30,     June 30,
                                                2002         2002
----------------------------------------------------------------------
Rollforward of Loans Held for Sale
   Balance, beginning of period                 $ 23,317     $ 23,842
      Loans added through acquisitions                --        6,717
      Loans originated and
       purchased/correspondent                    41,440       86,133
      Loans transferred from loans held in
       portfolio                                     355          738
      Loans sold or securitized                  (43,533)     (94,726)
      Loan payments and other                       (432)      (1,557)
----------------------------------------------------------------------
   Change in loans                                (2,170)      (2,695)
----------------------------------------------------------------------
   Balance, end of period                       $ 21,147     $ 21,147
======================================================================

Rollforward of Loans Held in Portfolio
   Balance, beginning of period                $ 146,364    $ 132,991
      Loans added through acquisitions                --       16,225
      Loans originated and
       purchased/correspondent                    16,339       37,333
      Loans transferred to loans held for
       sale                                         (355)        (738)
      Loans securitized                             (308)      (4,246)
      Loan payments and other                    (15,374)     (34,899)
----------------------------------------------------------------------
   Change in loans                                   302       13,675
----------------------------------------------------------------------
   Balance, end of period                      $ 146,666    $ 146,666
======================================================================


WM-11
                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)
                                                 Mar. 31,    Dec. 31,
                                                   2002        2001
                                                    to          to
                                                 June 30,    June 30,
                                                   2002        2002
----------------------------------------------------------------------
Rollforward of Mortgage Servicing Rights
 ("MSR")(1)
   Balance, beginning of period                   $ 7,955     $ 6,241
      SFR:
         Additions through acquisitions                --         926
         Other additions                              856       2,078
         Amortization                                (504)       (983)
         Impairment                                (1,107)     (1,062)
         Sale of excess servicing                    (711)       (711)
----------------------------------------------------------------------
   Balance, end of period(2)                      $ 6,489     $ 6,489
======================================================================

Rollforward of Valuation Allowance for MSR
 Impairment
   Balance, beginning of period                   $ 1,669     $ 1,714
      Impairment                                    1,107       1,062
      Sale of excess servicing                       (208)       (208)
----------------------------------------------------------------------
   Balance, end of period                         $ 2,568     $ 2,568
======================================================================

Rollforward of Loan Servicing Portfolio with
 MSR
   Balance, beginning of period                 $ 459,375   $ 378,383
      SFR:
         Additions through acquisitions                --      49,242
         Other additions                           58,262     123,693
         Loan payments and other                  (40,339)    (74,038)
      Net change in commercial real estate
       loan servicing portfolio                        11          29
----------------------------------------------------------------------
   Balance, end of period                       $ 477,309   $ 477,309
======================================================================

                                                             June 30,
                                                               2002
                                                             Balance
----------------------------------------------------------------------
Total Servicing Portfolio
      Loans serviced for others                             $ 477,309
      Servicing on retained MBS without MSR                     7,058
      Servicing on owned loans                                155,219
      Subservicing portfolio                                  160,046
----------------------------------------------------------------------
   Total servicing portfolio                                $ 799,632
======================================================================

                                                       June 30,
                                                        2002
                                             -------------------------
                                                Unpaid     Weighted
                                               Principal     Average
                                                Balance    Servicing
                                                               Fee
----------------------------------------------------------------------
Loans Serviced for Others by Loan Type                     (in basis
                                                            points,
                                                           annualized)
      Government                                 $ 76,993          52
      Agency                                      300,928          37
      Private                                      89,438          47
      Specialty home loans                          9,950          50
----------------------------------------------------------------------
   Total loans serviced for others(3)           $ 477,309          41
======================================================================

(1)  Net of valuation allowance.
(2)  At June 30, 2002, aggregate MSR fair value was $6.49 billion.
(3)  Weighted average coupon (annualized) was 7.06% at June 30, 2002.


WM-12
                        Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

           Change from
             Mar. 31,
               2001
            to June 30, June 30, % of  Mar. 31, % of  June 30,  % of
               2002      2002   total   2002   total   2001    total
----------------------------------------------------------------------
Real Estate
 Loans and MBS(1)
  Short-term
   ARMs:
    COFI    $(1,052)  $30,884    20% $31,936    20%   $39,103    24%
    Treasury
     indices  2,507    37,969    24   35,462    22     39,719    24
    Other      (827)   11,283 (2) 7   12,110 (2) 8     11,503 (2) 7
----------------------------------------------------------------------
     Total
      short-
      term
      ARMs      628    80,136    51   79,508    50     90,325    55
   Medium-term
    ARMs     (1,707)   43,481    28   45,188    29     35,621    22
   Fixed-rate
    loans    (2,508)   27,588    18   30,096    19     26,408    16
   Fixed-rate
    MBS       1,038     4,511     3    3,473     2     12,256     7
----------------------------------------------------------------------
     Total
      real
      estate
      loans
      and
      MBS   $(2,549) $155,716  100% $158,265  100%   $164,610   100%
======================================================================

(1) Does not include specialty mortgage finance loans.

(2) The balance included the following amount of securities retained
    which bear COFI to LIBOR basis risk (dollars in billions):

          June 30, 2002:  $2.8
          Mar. 31, 2002:   2.8
          June 30, 2001:   2.8

                             Quarter Ended           Six Months Ended
--------------------------------------------------  ------------------
                      June 30,  Mar. 31,  June 30,  June 30,  June 30,
                        2002     2002      2001      2002      2001
--------------------------------------------------  ------------------
SFR Mortgage Banking
 (Expense) Income
   Loan servicing fees $ 560    $ 540     $ 309    $1,100     $ 505
   Loan subservicing
    fees                  38       15         3        53         3
   Amortization of MSR  (504)    (479)     (208)     (983)     (332)
   MSR (impairment)
    recovery          (1,107)      45       (74)   (1,062)     (137)
   Other, net            (78)     (62)      (42)     (140)      (61)
--------------------------------------------------  ------------------
    Net SFR loan
     servicing
     (expense) income (1,091)      59       (12)   (1,032)      (22)
   Loan related income   120       81        39       201        62
   Gain from mortgage
    loans                220      251       215       471       402
   Gain from sale of
    originated MBS        18        2        22        20        95
--------------------------------------------------  ------------------
    Total SFR mortgage
     banking (expense)
     income           $ (733)   $ 393     $ 264    $ (340)    $ 537
=================================================  ===================

WM-13
                       Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)


                  June 30, 2002     Dec. 31, 2001     June 30, 2001
----------------------------------------------------------------------
                 Balance   Term(1) Balance  Term(1) Balance   Term(1)
----------------------------------------------------------------------
Deposits and Borrowings (in months)      (in months)       (in months)
 Deposits:
  Noninterest-
   bearing
    deposits    $ 20,628    N/A   $ 22,441   N/A    $ 17,685    N/A
  Interest-bearing
   checking
   accounts, savings
   accounts and
   MMDAs          72,328    N/A     47,779   N/A      41,109    N/A
  Interest-bearing
   time deposit
   accounts       36,113     14     36,962    10      38,160      6
----------------------------------------------------------------------
    Total
     deposits(2) 129,069           107,182            96,954
  Borrowings:
    Adjustable    58,340      1     48,014     2      51,513      1
    Short-term
     fixed        24,588      2     49,569     1      49,348      2
    Long-term
     fixed        25,254     60     20,312    72      12,841    100
----------------------------------------------------------------------
     Total
     borrowings  108,182           117,895           113,702
----------------------------------------------------------------------
     Total
     deposits
     and
     borrowings $237,251          $225,077          $210,656
 =====================================================================

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

(2) Includes custodial and escrow deposits of $9.44 billion at June
    30, 2002, $10.11 billion at December 31, 2001 and $8.23 billion at
    June 30, 2001.



                                  June 30,   Mar. 31,       June 30,
                                    2002       2002           2001
----------------------------------------------------------------------
Retail Checking Accounts (1)
    WMB and WMBfsb               1,249,270  1,218,440      1,138,755
    WMB, FA                      5,568,273  5,318,195 (2)  4,323,791
----------------------------------------------------------------------
      Total retail checking
       accounts                  6,817,543  6,536,635      5,462,546
======================================================================

Retail Checking Account
 Activity (1)
  Net accounts opened during
   the quarter:
   WMB and WMBfsb                   30,830     36,055         19,019
   WMB, FA                         250,078    650,389 (2)    163,931
----------------------------------------------------------------------
  Net new retail checking
   accounts                        280,908    686,444        182,950
======================================================================

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

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


WM-14
                       Washington Mutual, Inc.
                   Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                                         Quarter Ended
----------------------------------------------------------------------
                         June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
                            2002     2002     2001     2001     2001
----------------------------------------------------------------------
Allowance for Loan and
 Lease Losses
   Balance, beginning
    of quarter           $ 1,621  $ 1,404  $ 1,295  $ 1,170  $ 1,158
   Allowance acquired
    through business
    combinations/other         -      141        6        -       (5)
   Provision for loan
    and lease losses         160      175      200      200       92
----------------------------------------------------------------------
                           1,781    1,720    1,501    1,370    1,245
   Loans charged off:
      SFR                    (11)     (11)      (3)      (6)     (14)
      Specialty mortgage
       finance                (8)      (9)     (10)      (4)      (5)
----------------------------------------------------------------------
    Total SFR charge offs    (19)     (20)     (13)     (10)     (19)
Second mortgage and
 other consumer:
  Banking subsidiaries       (22)     (21)     (16)     (12)     (16)
  Washington Mutual
   Finance                   (46)     (43)     (41)     (36)     (34)
  Commercial business        (46)     (26)     (38)     (19)     (12)
  Commercial real estate:
   Other commercial
    real estate               (5)      (2)       -       (5)      (3)
----------------------------------------------------------------------
  Total loans charged off   (138)    (112)    (108)     (82)     (84)
Recoveries of loans
 previously charged off:
  SFR                          -        -        -        -        1
  Second mortgage and
   other consumer:
    Banking subsidiaries       3        3        1        1        1
    Washington Mutual
     Finance                   5        5        4        5        5
  Commercial business         14        5        5        1        1
  Commercial real estate:
     Other commercial
      real estate              -        -        1        -        1
----------------------------------------------------------------------
 Total recoveries of loans
  previously charged off      22       13       11        7        9
----------------------------------------------------------------------
 Net charge offs            (116)     (99)     (97)     (75)     (75)
----------------------------------------------------------------------
   Balance, end of
    quarter              $ 1,665  $ 1,621  $ 1,404  $ 1,295  $ 1,170
======================================================================

Net charge offs (annualized)
 as a percentage of average
 loans held in portfolio   0.31%    0.26%    0.29%    0.22%    0.23%
Allowance as a percentage
 of total loans held in
 portfolio                 1.14%    1.11%    1.06%    0.97%    0.89%


WM-15
                          Washington Mutual, Inc.
                      Selected Financial Information
                           (dollars in millions)
                                (unaudited)

                      June 30,   Mar. 31,  Dec. 31, Sept. 30, June 30,
                         2002       2002      2001      2001     2001
----------------------------------------------------------------------
Nonperforming Assets
 ("NPAs") and Restructured
 Loans
  Nonaccrual loans(1):
   SFR                 $ 1,092     $ 1,177     $ 974    $ 771   $ 602
   Specialty
    mortgage finance(2)    420         418       358      301     272
----------------------------------------------------------------------
 Total SFR nonaccrual
  loans                  1,512       1,595     1,332    1,072     874
   SFR construction:
    Builder(3)              44          57        26       18      19
    Custom(4)                8          15        10        9       6
   Second mortgage and
    other consumer:
     Banking subsidiaries   66          72        64       52      45
     Washington Mutual
      Finance               88          91        84       78      71
   Commercial business     177         186       159      126      68
   Commercial real estate:
    Multi-family            65          51        56       51      26
    Other commercial
     real estate           272         324       299      320     148
----------------------------------------------------------------------
  Total nonaccrual loans 2,232       2,391     2,030    1,726   1,257
Foreclosed assets:
 SFR                       114         126       107      110     120
 Specialty mortgage
  finance                   72          70        69       55      41
----------------------------------------------------------------------
  Total SFR foreclosed
   assets                  186         196       176      165     161
SFR construction:
 Builder                     7           8         4        4       5
 Custom                      -           -         1        -       -
Second mortgage and other
 consumer:
  Banking subsidiaries      11          12        11       16      17
  Washington Mutual
   Finance                   8           9         9        8       8
  Commercial business       11          13        10       10       -
  Commercial real estate:
   Multi-family              -           -         -        1       1
   Other commercial
    real estate             51          29        17       17      11
----------------------------------------------------------------------
   Foreclosed assets       274         267       228      221     203
----------------------------------------------------------------------
   Total NPAs          $ 2,506     $ 2,658   $ 2,258  $ 1,947 $ 1,460
   As a percentage of
    total assets         0.96%       0.97%     0.93%    0.87%   0.64%

   Restructured loans    $ 119       $ 130     $ 118    $ 128   $ 158
----------------------------------------------------------------------
 Total NPAs and
  restructured loans   $ 2,625     $ 2,788   $ 2,376  $ 2,075 $ 1,618
======================================================================

(1) Excludes nonaccrual loans held for sale of $114 million at June
30, 2002. Prior periods have been restated to reflect the exclusion of
nonaccrual loans held for sale of $122 million, $123 million, $85
million and $106 million at March 31, 2002, December 31, 2001,
September 30, 2001 and June 30, 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) Includes purchased subprime loans as well as first mortgages
originated by Washington Mutual Finance and Long Beach Mortgage.

(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 contracts as tools to manage interest
rate risk. The following tables summarize the notional amounts,
maturities, net fair values, and weighted average interest rates and
strike rates associated with these contracts. Interest rate contracts
that are embedded with certain adjustable-rate borrowings, while not
accounted for as derivatives under SFAS No. 133, have been included in
the tables since they also function as interest rate risk management
tools. The following estimated net fair value amounts have been
determined by the Company using available market information and
appropriate valuation methodologies.



                                                        June 30, 2002
                                                        Maturity Range
----------------------------------------------------------------------
                                     Counter-   Total
                           Net Fair   Party     Notional
                             Value    Credit    Amount
                                      Risk                     2002
----------------------------------------------------------------------
Interest Rate Contracts:
  Asset/Liability
   Management
    Pay-fixed swaps          $ (356)     $ 10
       Contractual maturity                     $ 30,509       $ 713
       Weighted average pay
        rate                                       4.00%       4.44%
       Weighted average
        receive rate                               1.93%       1.94%
    Receive-fixed swaps       $ 332     $ 335
       Contractual maturity                      $ 4,380           -
       Weighted average pay
        rate                                       1.84%           -
       Weighted average
        receive rate                               6.39%           -
    Interest rate
     caps/collars/corridors     $ -       $ -
       Contractual maturity                        $ 755       $ 229
       Weighted average
        strike rate                                7.52%       7.32%
    Payor swaptions            $ 30      $ 30
       Contractual maturity
        (option)                                 $ 5,000           -
       Weighted average
        strike rate                                6.12%           -
       Contractual maturity
        (swap)                                         -           -
       Weighted average
        strike rate                                    -           -
    Embedded pay-fixed
     swaps                    $ (71)      $ -
       Contractual maturity                      $ 2,750           -
       Weighted average pay
        rate                                       4.89%           -
       Weighted average
        receive rate                               1.93%           -
    Embedded caps               $ 1       $ 1
       Contractual maturity                        $ 669           -
       Weighted average
        strike rate                                7.62%           -
    Embedded payor
     swaptions(1)              $ 57      $ 57
       Contractual maturity
        (option)                                 $ 6,400           -
       Weighted average
        strike rate                                6.14%           -
       Contractual maturity
        (swap)                                         -           -
       Weighted average
        strike rate                                    -           -
----------------------------------------------------------------------
 Total asset/liability
  management                   $ (7)    $ 433   $ 50,463
======================================================================
  MSR Risk Management
    Receive-fixed swaps       $ 533     $ 533
       Contractual maturity                     $ 11,575           -
       Weighted average pay
        rate                                       1.95%           -
       Weighted average
        receive rate                               5.93%           -
   Floors                     $ 110     $ 110
       Contractual maturity                      $ 3,750           -
       Weighted average
        strike rate                                6.15%           -
    Receiver swaptions        $ 447     $ 447
       Contractual maturity
        (option)                                 $ 7,650     $ 2,000
       Weighted average
        strike rate                                6.38%       5.83%
       Contractual maturity
        (swap)                                         -           -
       Weighted average
        strike rate                                    -           -
    Embedded floors(2)        $ 221     $ 221
       Contractual maturity                      $ 8,600           -
       Weighted average
        strike rate                                6.02%           -
----------------------------------------------------------------------
           Total MSR risk
            management      $ 1,311   $ 1,311   $ 31,575
======================================================================

Total interest rate
 contracts                  $ 1,304   $ 1,744   $ 82,038(3)
======================================================================

                                         June 30, 2002
                                         Maturity Range
----------------------------------------------------------------------
                                                                After
                                2003    2004    2005     2006    2006
----------------------------------------------------------------------
Interest Rate Contracts:
  Asset/Liability
   Management
    Pay-fixed swaps
       Contractual maturity   $ 8,166 $ 8,834 $ 3,130  $ 4,708 $ 4,958
       Weighted average pay
        rate                    2.95%   4.03%   4.13%    4.39%   5.17%
       Weighted average
        receive rate            1.93%   1.90%   1.88%    1.92%   2.03%
    Receive-fixed swaps
       Contractual maturity     $ 600     $ -   $ 530  $ 1,000 $ 2,250
       Weighted average pay
        rate                    1.52%       -   1.51%    1.90%   1.97%
       Weighted average
        receive rate            5.10%       -   5.37%    6.81%   6.80%
    Interest rate
     caps/collars/corridors
       Contractual maturity     $ 271   $ 191    $ 64        -       -
       Weighted average
        strike rate             7.62%   8.14%   5.94%        -       -
    Payor swaptions
       Contractual maturity
        (option)              $ 5,000       -       -        -       -
       Weighted average
        strike rate             6.12%       -       -        -       -
       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                        -       -       -        -   4.89%
       Weighted average
        receive rate                -       -       -        -   1.93%
    Embedded caps
       Contractual maturity     $ 169   $ 500       -        -       -
       Weighted average
        strike rate             7.25%   7.75%       -        -       -
    Embedded payor
     swaptions(1)
       Contractual maturity
        (option)              $ 5,900   $ 500       -        -       -
       Weighted average
        strike rate             6.13%   6.21%       -        -       -
       Contractual maturity
        (swap)                      -       -       -  $ 3,750 $ 2,650
       Weighted average
        strike rate                 -       -       -    5.99%   6.34%
----------------------------------------------------------------------
  Total asset/liability
   management
======================================================================

  MSR Risk Management
    Receive-fixed swaps
       Contractual maturity         -       -       -        -$ 11,575
       Weighted average pay
        rate                        -       -       -        -   1.95%
       Weighted average
        receive rate                -       -       -        -   5.93%
    Floors
       Contractual maturity         -       -       -        - $ 3,750
       Weighted average
        strike rate                 -       -       -        -   6.15%
    Receiver swaptions
       Contractual maturity
        (option)                $ 300   $ 300 $ 5,050        -       -
       Weighted average
        strike rate             5.42%   5.99%   6.67%        -       -
       Contractual maturity
        (swap)                      -       -       -        - $ 7,650
       Weighted average
        strike rate                 -       -       -        -   6.38%
    Embedded floors(2)
       Contractual maturity         -       -       -        - $ 8,600
       Weighted average
        strike rate                 -       -       -        -   6.02%
----------------------------------------------------------------------
  Total MSR risk management
======================================================================
  Total interest rate contracts
======================================================================

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

(2) At June 30, 2002, none of these contracts were effective. $5.78
billion and $2.82 billion of these contracts will become effective in
June 2003 and July 2003. Once effective, the floors reprice every
three months.

(3) Interest rate contracts decreased net interest income by $92
million and $129 million for the three months and six months ended
June 30, 2002.


WM-17
                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)


                                                   March 31, 2002
----------------------------------------------------------------------
                                                   Maturity Range
----------------------------------------------------------------------
                            Net   Counter-   Total
                            Fair   Party    Notional
                           Value   Credit   Amount
                                   Risk                 2002     2003
----------------------------------------------------------------------
Interest Rate
 Contracts:
  Asset/Liability
   Management
    Pay-fixed swaps         $ 126   $ 183
     Contractual maturity                   $ 15,608    $ 813  $ 5,586
     Weighted average pay
      rate                                     4.00%    4.65%    3.03%
     Weighted average
      receive rate                             1.90%    1.89%    1.91%
    Receive-fixed swaps       190     239
     Contractual maturity                    $ 4,628     $ 36    $ 620
     Weighted average pay
      rate                                     1.93%    4.11%    1.59%
     Weighted average
      receive rate                             6.29%    4.19%    5.17%
    Interest rate
     caps/collars/corridors     -       -
      Contractual maturity                     $ 935    $ 359    $ 271
      Weighted average strike
       rate                                    7.38%    7.34%    7.62%
    Payor swaptions           104     104
     Contractual maturity
      (option)                               $ 5,000        -  $ 5,000
     Weighted average strike
      rate                                     6.12%        -    6.12%
     Contractual maturity
      (swap)                                       -        -        -
     Weighted average strike
      rate                                         -        -        -
    Embedded caps               1       1
     Contractual maturity                      $ 683        -    $ 183
     Weighted average strike
      rate                                     7.62%        -    7.25%
    Embedded payor
     swaptions(1)             136     136
      Contractual maturity
       (option)                              $ 6,400        -  $ 5,900
      Weighted average strike
       rate                                    6.14%        -    6.13%
      Contractual maturity
       (swap)                                      -        -        -
      Weighted average strike
       rate                                        -        -        -
----------------------------------------------------------------------
Total asset/liability
 management                 $ 557   $ 663   $ 33,254
======================================================================

MSR Risk Management
 Receive-fixed swaps        $ (26)    $ -
  Contractual maturity                       $ 6,300        -        -
  Weighted average pay
   rate                                        2.01%        -        -
  Weighted average
   receive rate                                6.02%        -        -
 Receiver swaptions            22      22
  Contractual maturity
   (option)                                  $ 1,500  $ 1,500        -
  Weighted average strike
   rate                                        5.88%    5.88%        -
  Contractual maturity
   (swap)                                          -        -        -
  Weighted average strike
   rate                                            -        -        -
 Embedded floors (2)          121     121
  Contractual maturity                       $ 5,150        -        -
  Weighted average strike
   rate                                        6.33%        -        -
----------------------------------------------------------------------
Total MSR risk
 management                 $ 117   $ 143   $ 12,950
======================================================================

Total interest rate
 contracts                  $ 674   $ 806   $ 46,204(3)
======================================================================

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


                                          March 31, 2002
----------------------------------------------------------------------
                                          Maturity Range
----------------------------------------------------------------------
                                                             After
                                    2004    2005     2006     2006
----------------------------------------------------------------------
Interest Rate
 Contracts:
  Asset/Liability
   Management
    Pay-fixed swaps
        Contractual maturity     $ 3,534   $ 280  $ 4,448    $ 947
        Weighted average pay
         rate                      4.46%   4.42%    4.39%    5.58%
        Weighted average
         receive rate              1.89%   1.89%    1.89%    1.95%
    Receive-fixed swaps
        Contractual maturity       $ 100   $ 560  $ 1,004  $ 2,308
        Weighted average pay
         rate                      2.02%   1.83%    1.91%    2.02%
        Weighted average
         receive rate              1.99%   5.48%    6.80%    6.78%
    Interest rate
     caps/collars/corridors
        Contractual maturity       $ 191    $ 64     $ 50        -
        Weighted average strike
         rate                      8.14%   5.94%    5.25%        -
    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 caps
        Contractual maturity       $ 500       -        -        -
        Weighted average strike
         rate                      7.75%       -        -        -
    Embedded payor
     swaptions(1)
        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 asset/liability
 management
======================================================================

MSR Risk Management
    Receive-fixed swaps
        Contractual maturity           -       -        -  $ 6,300
        Weighted average pay
         rate                          -       -        -    2.01%
        Weighted average
         receive rate                  -       -        -    6.02%
    Receiver swaptions
        Contractual maturity
         (option)                      -       -        -        -
        Weighted average strike
         rate                          -       -        -        -
        Contractual maturity
         (swap)                        -       -        -  $ 1,500
        Weighted average strike
         rate                          -       -        -    5.88%
    Embedded floors (2)
        Contractual maturity           -   $ 650        -  $ 4,500
        Weighted average strike
         rate                          -   5.13%        -    6.50%
----------------------------------------------------------------------
Total MSR risk
 management
======================================================================

Total interest rate
 contracts
======================================================================

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

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

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

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