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Washington Mutual Announces Record Quarterly Earnings; Strong Operating Fundamentals Drive Quarter's Performance; Board of Directors Increases Cash Dividend

SEATTLE--(BUSINESS WIRE)--July 17, 2001--Washington Mutual, Inc. (NYSE:WM) today announced record quarterly earnings of $798.2 million for the second quarter of 2001, up sharply from second-quarter 2000 earnings of $490.8 million.

On an earnings-per-share basis, second-quarter 2001 earnings were a record 91 cents per diluted share, up 49 percent from 61 cents per diluted share one year ago.

Earnings for the second quarter of 2001 included full-quarter results from the former mortgage operations of The PNC Financial Services Group, Inc. and from the former Bank United Corp., which were acquired this year by Washington Mutual on Jan. 31 and Feb. 9, respectively. In addition, earnings for the quarter included partial results from the operations of the former Fleet Mortgage Corp., which was acquired on June 1, 2001. All of these acquisitions were accounted for as purchase transactions; therefore, the operating results of each company are not included prior to the date of acquisition.

Highlights of the recently completed quarter included:

  • A return on common equity of 24.72 percent;

  • A substantially improved net interest margin of 3.21 percent;

  • Record noninterest income, including a 36 percent increase in depositor and other retail banking fees, year over year;

  • Record loan volume of $42.66 billion, including a 159 percent increase in single-family residential (SFR) loan volume and a 47 percent increase in other loan volume, on a year-over-year basis;

  • Record checking account growth of 182,950 net new accounts; and

  • An improved operating efficiency ratio of 43.40 percent.

"Washington Mutual's second-quarter performance clearly illustrates the overall financial strength of the company and the successful implementation of our strategic initiatives by our talented employees," said Kerry Killinger, the company's chairman, president and CEO. "The favorable interest rate environment, coupled with our winning business formula, led to exceptional revenue growth, record loan volume and account openings, and continued strong credit quality in the second quarter.

"We also took steps to solidify our national banking and lending franchises by completing the acquisition of Fleet Mortgage and by announcing our intention to extend our retail banking presence to the greater New York area through the proposed acquisition of Dime Bancorp. Together, these actions continued our progress toward building our brand in major metropolitan markets throughout the country."

BOARD INCREASES CASH DIVIDEND

The Board of Directors declared a cash dividend of 23 cents on the company's common stock, up from 22 cents in the previous quarter. Dividends on the common stock are payable Aug. 15, 2001 to shareholders of record as of July 31, 2001. The board also declared a $0.90625 dividend on the company'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 Aug. 16, 2001 to holders of record on Aug. 15, 2001.

SECOND-QUARTER RESULTS

Net Interest and Noninterest Income Grow

An improved net interest margin, driven by the 275 basis point reduction in the Fed Funds rate since the first of this year, and a higher base of interest-earnings assets produced net interest income of $1.67 billion in the second quarter, up 53 percent from $1.09 billion a year earlier.

The net interest spread for the quarter improved to 3.16 percent, compared with 2.30 percent for the same period last year, reflecting the company's lower cost of funds. Likewise, the margin was 3.21 percent in the most recent quarter versus 2.43 percent for second quarter 2000.

Depositor and other retail banking fees were a record $325.3 million, up 36 percent from $239.8 million a year earlier. During the second quarter, the company added nearly 183,000 net new retail checking accounts.

Reflecting the relatively weaker stock market, securities fees and commissions were $76.3 million for the second quarter of 2001, versus $83.5 million for the same period one year ago.

Robust refinancing activity and additional production from the company's recent acquisitions, including Fleet Mortgage, contributed to gain from mortgage loans of $214.9 million for the second quarter, up sharply from the gain of $80.7 million a year ago.

During the quarter the company recorded a $75.2 million impairment of mortgage servicing rights, which the company chose to partially offset by recognizing gains from mortgage securities of $22.2 million.

Record Lending Volume

Strong refinancing activity and recent acquisitions also led to record total loan volume of $42.66 billion for the quarter, up 136 percent from $18.08 billion one year ago.

SFR loan volume (excluding residential construction) was $37.27 billion, up 159 percent from $14.41 billion one year ago. In addition, 63 percent of the SFR mortgage loan volume represented refinance activity, versus 24 percent for last year's second quarter.

Reflecting the current interest rate environment, 81 percent of the second-quarter's SFR volume (excluding specialty mortgage finance and residential construction) represented fixed-rate mortgages versus 12 percent in last year's second quarter.

Lending volume for loans other than SFR totaled $5.39 billion for the most recent quarter, up 47 percent over $3.67 billion in the second quarter of 2000.

Efficiency Ratio Continues to Improve

The efficiency ratio (defined as noninterest expense, excluding amortization of goodwill and other intangible assets, as a percentage of net interest income and noninterest income) improved to 43.40 percent in the most recent quarter compared with 46.99 percent in the second quarter of last year.

Reflecting the cost of the operations of the recently acquired companies (Bank United Corp., the mortgage operations of The PNC Financial Services Group, Inc. and Fleet Mortgage Corp.), noninterest expense totaled $1.12 billion in the second quarter of 2001, compared with second-quarter 2000's figure of $775.2 million.

Credit Quality Remains Steady

Killinger said that despite the signs of a slowing national economy, Washington Mutual's credit quality remains strong. Total nonperforming assets (NPAs) were $1.67 billion at June 30, 2001 versus $1.45 billion at March 31, 2001, due to an increase in SFR nonaccruals, as well as additional commercial business and commercial real estate NPAs from Bank United. Total NPAs represented 0.73 percent of total assets at the end of the second quarter of 2001, well below the company's target of less than 1.00 percent.

Reflecting the company's larger and more diversified balance sheet, the provision for loan and lease losses was $92.4 million, versus $44.1 million for the same period in the previous year. Net loan charge offs for the second quarter were $75.6 million, compared with $42.5 million a year earlier. At June 30, 2001, the allowance for loan and lease losses totaled $1.17 billion, and represented 80 percent of nonaccrual loans, as compared with 91 percent at March 31, 2001.

Balance Sheet and Capital Management

Consolidated assets at June 30, 2001 were $229.30 billion, compared with $219.93 billion at March 31, 2001 and $185.69 billion at June 30, 2000.

At June 30, 2001, deposits in checking, savings and money market accounts represented 61 percent of total deposits, compared with 62 percent at March 31, 2001. Total deposits were $96.95 billion at the end of the second quarter, up from $93.34 billion at March 31, 2001 and $80.60 billion at June 30, 2000.

Stockholders' equity at June 30, 2001 was $13.41 billion and the capital ratios of Washington Mutual's banking subsidiaries continued to exceed regulatory requirements for classification as "well-capitalized," the highest regulatory standard.

Company Updates

  • On June 25, 2001, the company announced a definitive agreement to merge with Dime Bancorp, Inc. (NYSE:DME) in a transaction valued at approximately $5.2 billion in stock and cash. The transaction, approved by the directors of both companies, creates a broad-based platform for Washington Mutual's banking operations as it enters the greater New York metropolitan area, the nation's largest urban banking market.

    At the time of the announcement, Killinger said, "The opportunity to deliver Washington Mutual's unique, customer-focused banking model to the largest concentration of middle-market consumers in the nation is tremendously exciting. We look forward to serving this broad market with great service, a good deal, and a friendly environment through the outstanding platform provided by The Dime.
    The Dime has approximately $14 billion in deposits in the New York metropolitan area and serves approximately 1 million households through 123 branches and 250 ATMs.
    The transaction, which is expected to close early in the first quarter of 2002, requires the approval of Dime shareholders and banking and other regulators.

  • Further strengthening its national mortgage lending franchise, during the quarter the company announced the completion of the acquisition of Fleet Mortgage Corp., a unit of FleetBoston Financial Corp. (NYSE:FBF). The transaction, accounted for as a purchase, is expected to be modestly accretive to earnings per share in 2001 without revenue enhancements.

  • With the successful completion of the deposit conversion of Bank United customers at the end of May, Killinger noted that the integration activities for both the former Bank United and PNC operations are essentially complete.

  • In May, the company announced that Jeremy V. "Jerry" Gross has joined Washington Mutual as chief information officer. He is responsible for leading Washington Mutual's corporate technology strategy. With more than two decades of information technology management expertise, Gross joined the company from Sydney, Austrialia-based Westpac Banking Corp. where he was group executive of technology, operations and eCommerce. Previously, Gross spent seven years at Countrywide Credit Industries, Calabasas, Calif., where he was managing director and chief technology officer. He replaces long-time chief information officer, S. Liane Wilson, who now provides acquisition and integration services to the company.

Outlook

"We expect to see continued strength in our operating fundamentals during the second half of this year highlighted by growth in virtually all areas of the company," Killinger said. "Assuming a stable interest rate environment and a relatively healthy but slowing national economy, our company should be well-positioned to deliver exceptional financial results for the foreseeable future."

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, 2001, Washington Mutual and its subsidiaries had consolidated assets of $229.30 billion. Washington Mutual currently operates more than 2,300 consumer banking, mortgage lending, commercial banking, consumer finance and financial services offices throughout the nation. Washington Mutual's press releases are available at www.wamu.com.

A live webcast of the company's quarterly earnings conference call will be held on Wed., July 18 at 10:30 a.m. Eastern Time at www.wamu.com or via phone at 1.800.474.8920.

Click here to view a downloadable version of the second quarter earnings financial supplement

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

                                             Quarter Ended        
----------------------------------------------------------------------
                                  June 30,     Mar. 31,      June 30, 
                                    2001         2001          2000
----------------------------------------------------------------------
Interest Income                       
 Loans                           $2,924.3     $2,811.1      $2,237.5 
 Available-for-sale                                   
 ("AFS") securities                 940.4      1,031.7         702.6 
 Held-to-maturity                     
 ("HTM") securities                     -            -         333.2 
 Other interest and                   
  dividend income                    71.7         70.9          88.7 
----------------------------------------------------------------------
Total interest income             3,936.4       3,913.7      3,362.0 
Interest Expense                      
 Deposits                           823.3        886.8         803.1 
 Borrowings                       1,439.6      1,667.9       1,467.0 
----------------------------------------------------------------------
Total interest expense            2,262.9      2,554.7       2,270.1
----------------------------------------------------------------------
Net interest income               1,673.5      1,359.0       1,091.9 
Provision for loan and                
 lease losses                        92.4         82.3          44.1 
----------------------------------------------------------------------
Net interest income after             
 provision for loan and               
 lease losses                     1,581.1      1,276.7       1,047.8 
Noninterest Income                    
 Depositor and other                  
  retail banking fees               325.3        278.8         239.8 
 Securities fees and                  
  commissions                        76.3         72.2          83.5 
 Insurance fees and                   
  commissions                        12.4         12.3          10.8 
 Loan servicing income                
  (expense)                          (9.5)        (7.2)         39.1 
 Loan related income                 91.8         55.6          29.0  
 Gain from mortgage loans           214.9        187.0          80.7  
 Gain (loss) from securities         31.9         70.3          (1.8)
 Other income                        61.8         80.8          19.2 
----------------------------------------------------------------------
Total noninterest income            804.9        749.8         500.3 
Noninterest Expense                   
 Compensation and benefits          465.9        416.0         335.5 
 Occupancy and equipment            189.7        183.7         148.1 
 Telecommunications and               
   outsourced information             
   services                         104.7        106.4          77.4  
 Depositor and other                  
   retail banking losses             32.9         29.5          23.2 
 Amortization of goodwill and                    
  other intangible assets            42.9         36.0          27.1 
Other expense                       282.6        241.4         163.9 
----------------------------------------------------------------------
Total noninterest expense         1,118.7      1,013.0         775.2  
----------------------------------------------------------------------
Income before income taxes        1,267.3      1,013.5         772.9
Income taxes                        469.1        372.5         282.1 
----------------------------------------------------------------------
Net Income                        $ 798.2      $ 641.0       $ 490.8 
======================================================================
Net Income                            
 Attributable to Common Stock     $ 796.4      $ 639.8       $ 490.8 
======================================================================
Net income per common share:        $0.93        $0.77         $0.61 
 Basic                               0.91         0.76          0.61 
 Diluted                                                         

Basic weighted average                 
 number of common shares
 outstanding (in thousands)       857,912      827,139       798,491  
Diluted weighted average              
 number of common shares              
 outstanding (in thousands)       872,762      837,125       800,249 


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

                                             Six Months Ended
----------------------------------------------------------------------
                                           June 30,      June 30,
                                             2001          2000
----------------------------------------------------------------------
Interest Income                              
 Loans                                     $5,735.4     $4,458.7 
 Available-for-sale                           
 ("AFS") securities                         1,972.1      1,394.9      
 Held-to-maturity                                           
 ("HTM") securities                               -        672.3   
 Other interest and                    
  dividend income                             142.6        139.7    
----------------------------------------------------------------------
Total interest income                      7,850.1       6,665.6 
Interest Expense                      
 Deposits                                   1,710.1      1,590.9   
 Borrowings                                 3,107.5      2,898.1 
----------------------------------------------------------------------
Total interest expense                      4,817.6      4,489.0
----------------------------------------------------------------------
Net interest income                         3,032.5      2,176.6     
Provision for loan and                
 lease losses                                 174.7         85.2  
----------------------------------------------------------------------
Net interest income after                                   
 provision for loan and                  
 lease losses                              2,857.8       2,091.4  
Noninterest Income                                                
 Depositor and other                                              
  retail banking fees                        604.1         450.8    
 Securities fees and                                               
  commissions                                148.5         166.1   
 Insurance fees and                                                
  commissions                                 24.7         22.3  
 Loan servicing income               
  (expense)                                  (16.7)        72.4    
 Loan related income                         147.4         53.1     
 Gain from mortgage loans                    401.9        141.9     
 Gain (loss) from securities                 102.2        (23.3)   
 Other income                                142.6         40.0  
----------------------------------------------------------------------
Total noninterest income                   1,554.7        923.3   
Noninterest Expense                                              
 Compensation and benefits                   881.9        665.9     
 Occupancy and equipment                     373.4        300.6   
 Telecommunications and                                        
   outsourced information           
   services                                  211.1        154.3
 Depositor and other                                             
   retail banking losses                      62.4         48.7    
 Amortization of goodwill and       
  other intangible assets                     78.9         53.9
Other expense                                524.0        296.4     
----------------------------------------------------------------------
Total noninterest expense                  2,131.7      1,519.8   
----------------------------------------------------------------------
Income before income taxes                 2,280.8      1,494.9 
Income taxes                                 841.6        545.6  
----------------------------------------------------------------------
Net Income                                $1,439.2      $ 949.3  
======================================================================
Net Income                                                     
 Attributable to Common Stock             $1,436.2      $ 949.3   
======================================================================
Net income per common share:                 $1.70        $1.17
 Basic                                        1.68         1.17    
 Diluted

Basic weighted average
 number of common shares
 outstanding (in thousands)                842,611      813,086
Diluted weighted average
 number of common shares
 outstanding (in thousands)                855,029      814,619


                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)
----------------------------------------------------------------------
                                 Six Months Ended     Six Months Ended
                                   June 30, 2001       June 30, 2000
----------------------------------------------------------------------
Stockholders'
 Equity Rollforward
Balance, beginning of period          $10,165.5            $9,052.7
Net income                              1,439.2               949.3
Cash dividends
 declared on common stock                (361.4)             (307.7)
Cash dividends
 declared on redeemable
 preferred stock                           (3.0)                  -
Common stock issued to
 acquire Bank United Corp.              1,389.0                   -
Common stock issued                       124.2                32.7
Common stock
  repurchased and retired                     -              (869.0)
Common stock warrants issued,
 net of costs                             398.4                   -
Other comprehensive income,
 net of tax                               258.7              (306.2)
----------------------------------------------------------------------
Balance, end of period                $13,410.6            $8,551.8
======================================================================
======================================================================

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

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

                          June 30, 2001               Mar. 31, 2001   
                        Balance       Rate        Balance        Rate 
----------------------------------------------------------------------
----------------------------------------------------------------------
Average Balances and 
Weighted Average 
Interest Rates
Loans                $148,704.0      7.87%     $136,856.9       8.22% 
Mortgage-backed
 securities  ("MBS")   43,050.8      7.26        53,908.6       7.10  
Investment securities
 and other             15,793.8      5.86         9,552.2       6.14  
----------------------------------------------------------------------
----------------------------------------------------------------------
Total
 interest-earning
 assets               207,548.6      7.59       200,317.7       7.82  

 Deposits:
  Checking accounts    20,855.8                  17,108.1             
  Savings accounts
   and money market
   deposit accounts 
  ("MMDAs")            36,579.8                  34,929.5             
 Time deposit
  accounts             37,393.4                  35,608.5             
----------------------------------------------------------------------
----------------------------------------------------------------------
  Total deposits       94,829.0      3.48        87,646.1       4.10  
  Borrowings          110,010.1      5.25       110,254.0       6.14  
----------------------------------------------------------------------
----------------------------------------------------------------------
Total
 interest-bearing
 liabilities          204,839.1      4.43       197,900.1       5.23  

Net interest spread                  3.16                       2.59  
Net interest margin                  3.21                       2.65  

Total assets          223,841.7                 212,764.0             
Stockholders' equity   12,886.5                  11,456.4             


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

                                         Quarter Ended
----------------------------------------------------------------------
                                           June 30, 2000
                                        Balance        Rate
----------------------------------------------------------------------
Average Balances and 
Weighted Average 
Interest Rates
Loans                                 $113,597.6       7.88%
Mortgage-backed
 securities  ("MBS")                    59,525.1       6.90
Investment securities
 and other                               4,674.4       8.43
----------------------------------------------------------------------
Total
 interest-earning
 assets                                177,797.1       7.57

 Deposits:
  Checking accounts                     14,375.9
  Savings accounts
   and money market
   deposit accounts
  ("MMDAs")                             29,264.7
 Time deposit
  accounts                              36,697.8
----------------------------------------------------------------------
  Total deposits                        80,338.4       4.02
  Borrowings                            92,903.4       6.35
----------------------------------------------------------------------
----------------------------------------------------------------------
Total
 interest-bearing
 liabilities                           173,241.8       5.27

Net interest spread                                    2.30
Net interest margin                                    2.43

Total assets                           183,712.6
Stockholders' equity                     8,544.3


                                      Six Months Ended
----------------------------------------------------------------------
----------------------------------------------------------------------
                               June 30, 2001         June 30, 2000
                         Balance        Rate       Balance       Rate
----------------------------------------------------------------------
----------------------------------------------------------------------
Average Balances and
 Weighted Average
 Interest Rates
  Loans                 $142,813.2    8.04%     $114,943.5      7.76%
  MBS                     48,449.7    7.17        59,785.9      6.85
  Investment securities
   and other              12,690.2    5.96         4,397.4      7.24
----------------------------------------------------------------------
----------------------------------------------------------------------
Total interest-earning
 assets                  203,953.1    7.70       179,126.8      7.44

 Deposits:
  Checking accounts       18,990.8                13,945.7
   Savings accounts and
   MMDAs                  35,759.2                29,559.3
 Time deposit accounts    36,505.9                37,148.2
----------------------------------------------------------------------
----------------------------------------------------------------------
  Total deposits          91,255.9    3.78        80,653.2      3.97
  Borrowings             111,435.2    5.62        93,815.3      6.21
----------------------------------------------------------------------
----------------------------------------------------------------------
 Total interest-bearing
 liabilities             202,691.1    4.79       174,468.5      5.17

  Net interest spread                 2.91                      2.27
  Net interest margin                 2.94                      2.41

  Total assets           218,333.5               185,044.7
  Stockholders' equity    12,175.4                 8,714.9


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

                          June 30, 2001   Dec. 31, 2000  June 30, 2000
----------------------------------------------------------------------
Assets
 Cash and cash equivalents   $ 4,565.2       $ 2,621.8      $ 2,810.4 
 AFS securities:                                                      
  MBS                         41,029.2        40,348.4       40,193.9 
  Investment securities       12,421.2         1,810.4          450.1 
 HTM securities:                                                      
  MBS                                -        16,428.1       17,888.7 
  Investment securities              -           136.5          137.4 
 Loans held for sale          20,052.7         3,403.9        1,746.5 
 Loans:                                                               
  Loans held in portfolio    131,551.0       119,626.1      112,918.4 
  Allowance for loan and
   lease losses               (1,169.5)       (1,013.8)      (1,009.7)
----------------------------------------------------------------------
   Total loans held in
    portfolio, net of
    allowance for loan 
    and lease losses         130,381.5       118,612.3      111,908.7 
 Mortgage servicing
  rights ("MSR")               6,799.1         1,017.3          841.0 
 Investment in Federal 
  Home Loan Banks 
  ("FHLBs")                    3,767.0         3,260.1        3,151.2 
 Goodwill and other 
  intangible assets            2,308.7         1,083.7        1,134.4 
 Other assets                  7,973.7         5,993.5        5,424.9
----------------------------------------------------------------------
   Total assets             $229,298.3      $194,716.0     $185,687.2 
======================================================================

Liabilities                                                           
 Deposits:                                                            
  Checking accounts         $ 23,491.2      $ 14,499.8     $ 15,021.6 
  Savings accounts and
   MMDAs                      35,303.1        30,655.8       29,358.1 
  Time deposit accounts       38,159.5        34,418.2       36,216.6 
----------------------------------------------------------------------
   Total deposits             96,953.8        79,573.8       80,596.3 
 Federal funds purchased
  and commercial paper         4,080.2         4,114.7        1,492.0 
 Securities sold under
  agreements to repurchase 
  ("repurchase agreements")   30,011.5        29,756.1       26,745.7 
 Advances from FHLBs          63,779.8        57,854.9       59,324.8 
 Other borrowings             15,933.3         9,930.3        6,780.2 
 Other liabilities             5,129.1         3,320.7        2,196.4 
----------------------------------------------------------------------
   Total liabilities         215,887.7       184,550.5      177,135.4 
Stockholders' equity          13,410.6        10,165.5        8,551.8 
----------------------------------------------------------------------
   Total liabilities and
    stockholders' equity    $229,298.3      $194,716.0     $185,687.2 
======================================================================

Common shares outstanding 
 at end of period 
 (in thousands) (1)            878,366         809,784        808,171
Book value per common 
 share                          $15.59          $12.84         $10.82
Tangible book value per 
 common share                    13.41           11.66           9.59

Full-time equivalent 
 employees at end of 
 period (actual amount)         37,106          28,798         28,255

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


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


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

                             Quarter Ended          Six Months Ended
----------------------------------------------------------------------
                       June 30, Mar. 31, June 30,   June 30, June 30,
                          2001     2001     2000       2001     2000
----------------------------------------------------------------------

Reported Financial Results

 Net income             $798.2   $641.0   $490.8   $1,439.2   $949.3
 Net income per 
  common share           $0.93    $0.77    $0.61      $1.70    $1.17
 Net income per 
  diluted common share    0.91     0.76     0.61       1.68     1.17

 Financial ratios on reported financial results:
  Return on 
   average assets         1.43%    1.21%    1.07%      1.32%    1.03%
  Return on average 
   common equity         24.72    22.34    22.97      23.59    21.78
  Efficiency ratio, 
   excluding amortization of 
    goodwill and other 
     intangible assets    43.40    46.33    46.99      44.75    47.29
  Efficiency ratio, 
   including amortization of 
    goodwill and other 
     intangible assets    45.14    48.04    48.69      46.47    49.03


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

  Net income attributable 
   to common stock      $796.4   $639.8   $490.8   $1,436.2   $949.3
  Total amortization of 
   goodwill and other 
    intangible assets     42.9     36.0     27.1       78.9     53.9
  Income tax expense      (8.8)    (6.1)    (6.5)     (14.9)   (12.9)
----------------------------------------------------------------------
    Amortization of goodwill and 
     other intangible assets, 
      net of tax          34.1     29.9     20.6       64.0     41.0
----------------------------------------------------------------------
  Earnings from operations, 
   excluding amortization of 
    goodwill and other 
     intangible assets  $830.5   $669.7   $511.4   $1,500.2   $990.3
======================================================================

  Earnings per diluted common share, 
   excluding amortization of
    goodwill and other 
     intangible assets   $0.95    $0.80    $0.64      $1.75    $1.22

 Financial ratios on earnings from operations:
  Return on 
   average assets         1.49%    1.26%    1.11%      1.38%    1.07%
  Return on 
   average common equity 25.78    23.38    23.94      24.64    22.73


----------------------------------------------------------------------
                                 Quarter Ended      Six Months Ended
                                 June 30, 2001         June 30, 2001
----------------------------------------------------------------------
Pro Forma (1)
Income before income tax 
 expense, excluding 
  amortization of goodwill            $1,300.4              $2,343.3
Income tax expense                      (474.1)               (850.2)
----------------------------------------------------------------------
Net income, excluding 
 amortization of goodwill                826.3               1,493.1
Redeemable preferred stock dividends      (1.8)                 (3.0)
----------------------------------------------------------------------
Net income attributable 
 to common stock, excluding
  amortization of goodwill              $824.5              $1,490.1
======================================================================
Earnings per diluted common share, 
 excluding amortization of goodwill      $0.94                 $1.74

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

                        Washington Mutual, Inc.
                    Selected Financial Information
                              (unaudited)

                                              June 30,    Dec. 31,
                                                 2001        2000
----------------------------------------------------------------------
Capital Adequacy
 Stockholders' equity/total assets               5.85%       5.22%
 Stockholders' equity (1)/total assets (1)       5.77        5.24
 Estimated total risk-based capital (2)         11.85       11.07

(1) Excludes unrealized net gain/loss on available-for-sale
securities and derivatives.
(2) Estimate of what WMI's total risk-based capital ratio would be
if it was a bank holding company that complies with Federal Reserve
Board capital requirements.

                                 June 30,    Mar. 31,        June 30,
                                    2001        2001            2000
----------------------------------------------------------------------
Retail Checking Accounts (3)
  WMB and WMBfsb               1,098,588   1,079,569       1,040,850
  WMB, FA                      4,323,791   4,159,860 (4)   3,520,385
----------------------------------------------------------------------
   Total retail 
    checking accounts          5,422,379   5,239,429       4,561,235
======================================================================

Retail Checking Account Activity (3)
 Net accounts opened during the quarter:
  WMB and WMBfsb                  19,019      14,789          14,400
  WMB, FA                        163,931     415,665 (4)     118,610
----------------------------------------------------------------------
 Net new retail 
  checking accounts              182,950     430,454         133,010
======================================================================

(3) Retail checking accounts exclude commercial business accounts.
The information provided refers to the number of accounts, not dollar
volume.
(4) Includes 271,183 checking accounts acquired from Bank United
Corp.

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

                                                Quarter Ended         
                              ----------------------------------------
                                  June 30,        Mar. 31,    June 30,
                                     2001            2001        2000 
                              ----------------------------------------
Loan Volume
 Single-family residential ("SFR"):
  Adjustable rate ("ARMs")    $   6,607.0     $   7,244.9 $  10,220.1 
  Fixed rate                     27,677.3        11,161.0     1,392.6 
  Specialty mortgage finance      2,986.7         2,233.0     2,800.5 
                              ----------------------------------------

  Total SFR loan volume          37,271.0        20,638.9    14,413.2 
 SFR - construction               1,086.9         1,197.1       540.6 
 Second mortgage and other consumer:
  Banking subsidiaries            2,164.7         1,335.0     1,299.9 
  Washington Mutual Finance         504.9           449.0       661.1 
 Commercial business                819.5           756.2       704.5 
 Commercial real estate:
  Apartment buildings               587.9           480.3       412.1 
  Other commercial real estate      229.7           180.0        50.5 
                              ----------------------------------------
  Total loan volume           $  42,664.6     $  25,036.5 $  18,081.9 
                              ========================================

Loan Volume by Channel
 Originated                   $  28,790.5     $  20,408.7 $  15,855.9 
 Purchased                        4,722.1         1,868.3     1,785.6 
 Correspondent                    9,152.0         2,759.5       440.4 
                              ----------------------------------------
  Total loan volume by 
   channel                    $  42,664.6     $  25,036.5 $  18,081.9 
                              ========================================
Refinancing Activity
  SFR:
   ARMs                       $   4,492.8     $   4,321.1 $   3,135.6 
   Fixed rate                    18,820.6         6,290.6       270.1 
  SFR - construction                 10.3             6.2         7.3 
  Commercial real estate:
   Apartment buildings              416.8           194.7       172.7 
   Other commercial real estate      82.7            58.5        79.0 
                              ----------------------------------------
   Total refinances           $  23,823.2     $  10,871.1 $   3,664.7 
                              ========================================
SFR Loan Originations (1) 
 Short-term ARMs:
  Treasury indices            $   4,227.6     $   5,228.0 $   7,214.6 
  COFI                              418.4           513.7     1,598.6 
  Other                               1.4             2.5         1.3 
                              ----------------------------------------
   Total short-term ARMs          4,647.4         5,744.2     8,814.5 
 Medium-term ARMs                 1,861.7         1,311.6     1,126.8 
 Fixed-rate mortgages            15,470.4         7,977.2     1,386.5 
                              ----------------------------------------
   Total SFR loan 
    originations              $  21,979.5     $  15,033.0 $  11,327.8 
                              ========================================

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

                                                  Six Months Ended    
                              ----------------------------------------
                                               June 30,       June 30,
                                                  2001           2000 
                              ----------------------------------------
Loan Volume                               
 Single-family residential ("SFR"):    
  Adjustable rate ("ARMs")                 $  13,851.9    $  18,190.6 
  Fixed rate                                  38,838.3        2,131.5 
  Specialty mortgage finance                   5,219.7        4,309.4 
                              ----------------------------------------
  Total SFR loan volume                       57,909.9       24,631.5
 SFR - construction                            2,284.0          968.5 
 Second mortgage and other consumer:                                  
  Banking subsidiaries                         3,499.7        2,196.1 
  Washington Mutual Finance                      953.9        1,174.1 
 Commercial business                           1,575.7        1,150.1 
 Commercial real estate:                                              
  Apartment buildings                          1,068.2          884.0 
  Other commercial real estate                   409.7          133.9 
                              ----------------------------------------
  Total loan volume                        $  67,701.1    $  31,138.2 
                              ========================================

Loan Volume by Channel                                                
 Originated                                $  49,199.2    $  28,020.7 
 Purchased                                     6,590.4        2,430.3 
 Correspondent                                11,911.5          687.2 
                              ----------------------------------------
  Total loan volume by channel             $  67,701.1    $  31,138.2 
                              ========================================

Refinancing Activity                                                  
  SFR:                                                                
   ARMs                                    $   8,813.9    $   6,105.5 
   Fixed rate                                 25,111.2          470.6 
 SFR - construction                               16.5           12.2 
 Commercial real estate:                                              
  Apartment buildings                            611.5          348.4 
  Other commercial real estate                   141.2          193.0 
                              ----------------------------------------
 Total refinances                          $  34,694.3    $   7,129.7 
                              ========================================

SFR Loan Originations (1) 
 Short-term ARMs:                   
  Treasury indices                         $   9,455.6    $  12,541.0 
  COFI                                           932.1        1,977.2 
  Other                                            3.9            3.6 
                              ----------------------------------------
   Total short-term ARMs                      10,391.6       14,521.8 
 Medium-term ARMs                              3,173.3        3,186.7 
 Fixed-rate mortgages                         23,447.6        2,118.9 
                              ----------------------------------------
   Total SFR loan originations             $  37,012.5    $  19,827.4 
                              ========================================

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


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

                     Change from
                   Mar. 31, 2001    June 30,     Mar. 31,    June 30,
                to June 30, 2001      2001         2001        2000
----------------------------------------------------------------------
Loans by Property       
 Type and MBS Loans
 held in portfolio:
 SFR                  $(1,653.7)  $ 81,880.3   $ 83,534.0  $ 76,709.1
 Specialty mortgage
  finance                 890.7      8,290.1      7,399.4     5,232.7
----------------------------------------------------------------------
   Total SFR loans       (763.0)    90,170.4     90,933.4    81,941.8
 SFR - construction      (210.9)     2,789.5      3,000.4     1,360.1
 Second mortgage and
  other consumer:
    Banking
     subsidiaries         455.3      9,681.2      9,225.9     7,001.6
    Washington
     Mutual Finance       (49.9)     2,518.2      2,568.1     2,315.2
 Commercial business      211.7      5,074.3      4,862.6     1,837.0
 Commercial real
  estate:
   Apartment buildings   (508.8)    16,580.8     17,089.6    15,569.9
   Other commercial
    real estate           (43.0)     4,736.6      4,779.6     2,892.8
----------------------------------------------------------------------
  Total loans held
   in portfolio          (908.6)   131,551.0    132,459.6   112,918.4
  Less: allowance for
   loan and lease losses  (11.7)    (1,169.5)    (1,157.8)   (1,009.7)
  Loans securitized and
   retained as MBS       (597.1)    28,518.4     29,115.5    33,897.6
----------------------------------------------------------------------
  Total net loans held
   in portfolio 
   and loans
     securitized and
     retained as MBS   (1,517.4)   158,899.9    160,417.3   145,806.3
  Loans held for sale   6,202.4     20,052.7     13,850.3     1,746.5
----------------------------------------------------------------------
  Total net loans 
   and loans
   securitized and
   retained as MBS      4,685.0    178,952.6    174,267.6   147,552.8
 Purchased MBS         (4,857.2)    12,510.8     17,368.0    24,185.0
----------------------------------------------------------------------
 Total net loans
  and MBS              $ (172.2)  $191,463.4   $191,635.6  $171,737.8
======================================================================


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

                                     Mar. 31, 2001      Dec. 31, 2000
                                   to June 30, 2001   to June 30, 2001
----------------------------------------------------------------------
Rollforward of Loans Held for Sale
  Balance, beginning of period         $ 13,850.3          $  3,403.9
     Loans added through acquisitions     4,379.7            10,385.1
     Loans originated and purchased      30,640.2            45,571.9
     Loans transferred to loans held
      in portfolio                       (1,020.7)           (1,020.7)
     Loans sold or securitized          (26,428.1)          (36,480.6)
     Loan payments and other             (1,368.7)           (1,806.9)
----------------------------------------------------------------------
  Change in loans                         6,202.4            16,648.8
----------------------------------------------------------------------
  Balance, end of period                $20,052.7           $20,052.7
======================================================================
======================================================================
Rollforward of Loans Held in Portfolio
  Balance, beginning of period         $132,459.6          $119,626.1
     Loans added through acquisitions           -            12,333.7
     Loans originated and purchased      12,024.4            22,129.2
     Loans transferred from loans held
      for sale                            1,020.7             1,020.7
     Loans securitized                     (704.0)             (704.0)
     Loan payments and other            (13,249.7)          (22,854.7)
----------------------------------------------------------------------
  Change in loans                          (908.6)           11,924.9
----------------------------------------------------------------------
  Balance, end of period               $131,551.0          $131,551.0
======================================================================
======================================================================
Rollforward of Mortgage Servicing Rights ("MSR")

  Balance, beginning of period           $3,456.4            $1,017.3
     Additions through acquisitions       2,680.5             4,823.4
     Additions                              945.2             1,428.4
     Amortization                          (207.8)             (332.0)
     Impairment adjustment                  (75.2)             (138.0)
----------------------------------------------------------------------
  Balance, end of period(1)              $6,799.1            $6,799.1
======================================================================
======================================================================
Rollforward of Loan Servicing Portfolio with MSR
  Balance, beginning of period        $ 212,249.8          $ 79,335.3
     Additions through acquisitions     133,027.7           255,634.0
     Additions                           36,160.2            51,020.7
     Loan payments and other            (20,978.2)          (25,530.5)
----------------------------------------------------------------------
  Balance, end of period               $360,459.5          $360,459.5
======================================================================
======================================================================
                                                         June 30, 2001
                                                             Balance
Total Servicing Portfolio
     Loan servicing portfolio with MSR                     $360,459.5
     Loan servicing portfolio without MSR                     5,239.2
     Servicing on retained MBS without MSR                   11,694.0
     Servicing on owned loans                               141,198.5
----------------------------------------------------------------------
  Total servicing portfolio                                $518,591.2
======================================================================
======================================================================
                                                       June 30, 2001
                                   Unpaid Principal   Weighted Average
                                        Balance        Servicing Fee

                                                     (in basis points,
                                                          annualized)

Total Servicing Portfolio, Excluding Retained MBS without MSR
     and Owned Loans
     Government                        $ 61,407.4            52
     Agency                            227,162.6             42
     Private                            71,652.8             41
     Long Beach                          5,475.9             50
----------------------------------------------------------------------
 Total servicing portfolio, excluding retained MBS without MSR
    and owned loans                    $365,698.7            44
======================================================================
======================================================================
   (1) At June 30, 2001, aggregate MSR fair value was $7.03 billion.


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

                              Change from
                            Mar. 31, 2001      June 30,              
                         to June 30, 2001       2001     % of total  
----------------------------------------------------------------------
Real Estate Loans and MBS(1)
 Short-term ARMs:
  COFI                        $ (2,071.5)    $39,102.6        23%    
  Treasury indices              (3,388.6)     40,200.9        24    
  Other                           (726.6)     12,756.0 (2)     8    
----------------------------------------------------------------------
   Total short-term ARMs        (6,186.7)     92,059.5        55
 Medium-term ARMs                3,366.2      35,919.2        22    
 Fixed-rate loans                5,813.3      26,645.1        16
 Fixed-rate MBS                 (4,849.9)     12,256.5         7    
----------------------------------------------------------------------
 Total real estate         
  loans and MBS               $ (1,857.1)   $166,880.3       100%    
======================================================================


                            Mar. 31,              June 30,
                              2001    % of total    2000    % of total
----------------------------------------------------------------------
Real Estate Loans and MBS(1)
 Short-term ARMs:
  COFI                      41,174.1        25%   $42,047.8        27%
  Treasury indices          43,589.5        26     38,933.3        25
  Other                     13,482.6 (2)     8      8,771.5 (2)     5
----------------------------------------------------------------------
   Total short-term ARMs    98,246.2        59     89,752.6        57
 Medium-term ARMs           32,553.0        19     30,552.5        20
 Fixed-rate loans           20,831.8        12     12,393.5         8
 Fixed-rate MBS             17,106.4        10     23,662.4        15
----------------------------------------------------------------------
 Total real estate 
  loans and MBS           $168,737.4       100%  $156,361.0       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, 2001:  $ 2.84
      Mar. 31, 2001:    2.68
      June 30, 2000:    2.67

                               Quarter Ended         Six Months Ended
----------------------------------------------------------------------
                       June 30,  Mar. 31,  June 30,  June 30, June 30,
                         2001      2001      2000      2001     2000
----------------------------------------------------------------------
Mortgage Banking Income
 Loan servicing income $ 312.0  $  199.3  $   84.2  $  511.3  $ 158.5
  Amortization of MSR   (207.8)   (124.2)    (28.3)   (332.0)   (54.8)
  Impairment of MSR      (75.2)    (62.8)       --    (138.0)      --
  Other loan servicing
   expense               (38.5)    (19.5)    (16.8)    (58.0)   (31.3)
----------------------------------------------------------------------
  Net loan servicing
   income (expense)       (9.5)     (7.2)     39.1     (16.7)    72.4
 SFR mortgage
  related income          81.5      48.1      27.7     129.6     50.7
 Gain from mortgage
  loans:
   Realized              147.8      94.0      80.7     241.8    141.9
   Net change in
    unrealized            67.1      93.0        --     160.1       --
----------------------------------------------------------------------
   Total gain from
    mortgage loans       214.9     187.0      80.7     401.9    141.9
 Gain from sale of
  originated MBS          22.2      48.7        --      70.9       --
----------------------------------------------------------------------
  Total mortgage
   banking income     $  309.1  $  276.6  $  147.5  $  585.7  $ 265.0
======================================================================

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

                           June 30, 2001         Dec. 31, 2000
______________________________________________________________________
                          Balance     Term (1)  Balance     Term (1)
______________________________________________________________________
Deposits, Borrowings                  (in months)          (in months)
 and Derivatives                                                      
 Outstanding
Deposits:
  Noninterest-bearing
  checking accounts,
  savings accounts,
  MMDAs and time 
  deposit accounts       $17,685.0      N/A    $ 8,754.8        N/A
Interest-bearing 
 checking accounts,
 savings                  
 accounts and MMDAs       41,109.6      N/A     36,401.5        N/A
Interest-bearing time
 deposit accounts         38,159.2        6     34,417.5          7
______________________________________________________________________
Total deposits            96,953.8              79,573.8
Borrowings:
  Adjustable (2)          51,513.1        1     57,219.1          1
  Short-term fixed        49,347.9        2     30,456.6          2
  Long-term fixed         12,943.8      100     13,980.3         48
______________________________________________________________________
     Total borrowings    113,804.8             101,656.0
______________________________________________________________________
Total deposits
 and borrowings         $210,758.6            $181,229.8
======================================================================


                      June 30, 2001              Dec. 31, 2000
______________________________________________________________________
                 Notional   Fair             Notional  Fair
                 Amount     Value  Term (1)  Amount    Value  Term (1)
______________________________________________________________________
Derivatives:                     (in months)               (in months)
WM pay rate swaps:
 Fixed rate     $8,388.0  $(120.7)   6      $11,008.1  $(46.4)   9
 Variable rate   4,680.0    138.3    2        2,890.0   140.0    2
______________________________________________________________________
Total swaps     13,068.0     17.6    5       13,898.1    93.6
Caps\Corridors Swaptions       6,366.2    163.3   18        8,286.2    16.4    1
______________________________________________________________________
Total
 derivatives   $19,434.2   $180.9          $22,184.3   $110.0
======================================================================

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

    (2) Adjustable-rate borrowings included notional values of $13.20
billion of embedded purchased interest rate floors at June 30, 2001
and Dec. 31, 2000. At June 30, 2001 and Dec. 31, 2000, $8.65 billion
and $800.0 million, respectively, of these contracts were effective.
Contractual start dates for the remaining floors range from July 5,
2001 to July 17, 2003. Once effective, the floors reprice every three
months.
    Adjustable-rate borrowings included notional values of $703.8
million of embedded purchased interest rate caps at June 30, 2001 and
Dec. 31, 2000. At June 30, 2001 and Dec. 31, 2000, $703.8 million were
active, however, no contracts had strike rates that were in effect.

    Adjustable-rate borrowings included notional values of $1.75
billion of embedded interest rate swaptions (options to enter into
pay-fixed swaps) at June 30, 2001 and none at Dec. 31, 2000. These
options are exercisable upon maturity. Maturity dates range from June
24, 2003 to July 17, 2003.

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

                                           Quarter Ended
----------------------------------------------------------------------
                                    June 30,   Mar. 31,   Dec. 31,    
                                      2001       2001       2000    
----------------------------------------------------------------------
Allowance for Loan 
 and Lease Losses
 Balance, beginning of quarter  $ 1,157.8   $ 1,013.8   $ 1,011.8    
 Identified allowance for 
  loans sold or securitized           --          --          --    
 Allowance acquired through 
  business combinations              (5.1)      119.4         --    
 Provision for loan 
  and lease losses                   92.4        82.3        52.5    
----------------------------------------------------------------------
                                  1,245.1     1,215.5     1,064.3    
 Loans charged off:
  SFR                               (14.3)       (5.7)       (5.2)   
  Specialty mortgage finance         (5.3)       (7.2)       (2.5)   
----------------------------------------------------------------------
   Total SFR charge offs            (19.6)      (12.9)       (7.7)   
  SFR construction                   (0.1)        --          --    
  Second mortgage and 
   other consumer:
   Banking subsidiaries             (15.7)      (12.0)      (10.8)   
   Washington Mutual Finance        (34.0)      (33.4)      (34.1)   
  Commercial business               (11.8)       (3.7)       (3.0)   
  Commercial real estate:
   Apartment buildings                --         (0.2)       (0.3)   
   Other commercial real estate      (3.2)       (2.5)       (0.3)   
----------------------------------------------------------------------
   Total loans charged off          (84.4)      (64.7)      (56.2)   
 Recoveries of loans previously 
  charged off:
  SFR                                 0.8         0.7         0.2    
  Specialty mortgage finance          --          --          --    
----------------------------------------------------------------------
   Total SFR recoveries               0.8         0.7         0.2    
  Second mortgage and other consumer:
    Banking subsidiaries              1.5         0.9         0.9    
    Washington Mutual Finance         4.7         5.0         3.9    
  Commercial business                 0.6         0.3         0.3    
  Commercial real estate:
    Apartment buildings               --          --          --    
    Other commercial real estate      1.2         0.1         0.4    
----------------------------------------------------------------------
   Total recoveries of loans 
    previously charged off            8.8         7.0         5.7    
----------------------------------------------------------------------
    Net charge offs                 (75.6)      (57.7)      (50.5)   
----------------------------------------------------------------------
 Balance, end of quarter        $ 1,169.5   $ 1,157.8   $ 1,013.8    
======================================================================
 Net charge offs (annualized) as
  a percentage of average loans     0.20%       0.17%       0.16%    

----------------------------------------------------------------------
                                    June 30,   Mar. 31,   Dec. 31,    
                                     2001       2001       2000    
----------------------------------------------------------------------
 Allowance for loan and lease 
  losses as a percentage of:
   Nonaccrual loans                   80%         91%        114%    
   Nonperforming assets               70          80          98    



                                               Quarter Ended
----------------------------------------------------------------------
                                          Sept. 30,       June 30, 
                                            2000           2000 
----------------------------------------------------------------------
Allowance for Loan              
 and Lease Losses                           
 Balance, beginning of quarter            $ 1,009.7       $ 1,025.2 
 Identified allowance for                      
  loans sold or securitized                    (2.6)          (17.1)  
 Allowance acquired through                      
  business combinations                         --              --  
 Provision for loan             
  and lease losses                             47.6            44.1   
----------------------------------------------------------------------
                                            1,054.7         1,052.2   
 Loans charged off:             
  SFR                                          (3.1)           (5.6)  
  Specialty mortgage finance                   (0.8)           (0.8)  
----------------------------------------------------------------------
   Total SFR charge offs                       (3.9)           (6.4) 
  SFR construction                              --              --  
  Second mortgage and           
   other consumer:              
   Banking subsidiaries                       (11.6)           (9.9) 
   Washington Mutual Finance                  (30.2)          (28.2) 
  Commercial business                          (3.4)           (3.7) 
  Commercial real estate:       
   Apartment buildings                         (0.3)           (0.5) 
   Other commercial real estate                (0.4)           (0.6) 
----------------------------------------------------------------------
   Total loans charged off                    (49.8)          (49.3)  
 Recoveries of loans previously 
  charged off:                  
  SFR                                           0.3             0.8   
  Specialty mortgage finance                    --              --    
----------------------------------------------------------------------
   Total SFR recoveries                         0.3             0.8   
  Second mortgage and other consumer:
    Banking subsidiaries                        0.7             1.0  
    Washington Mutual Finance                   4.4             4.3  
  Commercial business                           0.3             0.4   
  Commercial real estate:       
    Apartment buildings                         0.8             -- 
    Other commercial real estate                0.4             0.3 
----------------------------------------------------------------------
   Total recoveries of loans                        
    previously charged off                      6.9             6.8
----------------------------------------------------------------------
    Net charge offs                           (42.9)          (42.5)  
----------------------------------------------------------------------
 Balance, end of quarter                  $ 1,011.8       $ 1,009.7   
======================================================================
 Net charge offs (annualized) as
  a percentage of average loans               0.14%           0.15% 

----------------------------------------------------------------------
                                          Sept. 30,       June 30,  
                                           2000            2000  
----------------------------------------------------------------------
Allowance for loan and lease
 losses as a percentage of: 
  Nonaccrual loans                             121%            126%   
  Nonperforming assets                         102             104    


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

                         June 30, 2001   Mar. 31, 2001   June 30, 2000
----------------------------------------------------------------------
Nonperforming Assets ("NPAs")
  Nonaccrual loans:
    SFR                         $730.5         $ 678.4          $527.9
    Specialty mortgage finance   309.9           261.4           104.2
----------------------------------------------------------------------
     Total SFR 
      nonaccrual loans         1,040.4           939.8           632.1

    SFR construction              24.5            30.9            17.7
    Second mortgage and other 
     consumer:
      Banking subsidiaries        45.4            46.2            38.1
      Washington Mutual Finance   71.0            66.2            61.2
    Commercial business          106.7            58.2            15.7
    Commercial real estate:
      Apartment buildings         25.8            19.6            14.5
      Other commercial real 
       estate                    147.8           110.4            22.2
----------------------------------------------------------------------
     Total nonaccrual loans    1,461.6         1,271.3           801.5
 Foreclosed assets:
  SFR                            120.0           107.6           111.5
  Specialty mortgage finance      41.0            31.0             8.5
----------------------------------------------------------------------
   Total SFR foreclosed assets   161.0           138.6           120.0
  SFR construction                 5.1             3.4             8.0
  Second mortgage and other 
   consumer:
    Banking subsidiaries          17.2            19.5            16.4
    Washington Mutual Finance      7.9             7.1             6.3
    Commercial real estate:
     Apartment buildings           0.9             1.4             2.4
     Other commercial real estate 11.4            13.3            19.0
----------------------------------------------------------------------
     Foreclosed assets           203.5           183.3           172.1
----------------------------------------------------------------------
     Total NPAs               $1,665.1        $1,454.6          $973.6
======================================================================
 NPAs by property type:
   SFR                          $850.5         $ 786.0          $639.4
   Specialty mortgage finance    350.9           292.4           112.7
----------------------------------------------------------------------
    Total SFR NPAs             1,201.4         1,078.4           752.1
   SFR construction               29.6            34.3            25.7
    Second mortgage and other 
     consumer:
      Banking subsidiaries        62.6            65.7            54.5
      Washington Mutual Finance   78.9            73.3            67.5
    Commercial business          106.7            58.2            15.7
    Commercial real estate:
     Apartment buildings          26.7            21.0            16.9
     Other commercial real 
      estate                     159.2           123.7            41.2
----------------------------------------------------------------------
     Total NPAs               $1,665.1        $1,454.6          $973.6
======================================================================
 NPAs as a percentage of:
  Total loans held in portfolio  1.27%           1.10%           0.85%
  Total loans held in portfolio 
   and recourse loans and 
   recourse MBS                  1.10            0.95            0.72
  Total assets                   0.73            0.66            0.52

CONTACT:
Media
Washington Mutual, Inc.
Libby Hutchinson, 1.800.228.9268 or 206.461.2484
libby.hutchinson@wamu.net
or
Investors
JoAnn DeGrande, 206.461.3186
joann.degrande@wamu.net
or Ruthanne King, 206.461.6421
ruthanne.king@wamu.net