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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported) June 6, 2002
WASHINGTON MUTUAL, INC.
(Exact name of registrant as specified in its charter)
| Washington (State or other jurisdiction of incorporation) |
1-14667 (Commission File No.) |
91-1653725 (I.R.S. Employer Identification No.) |
1201 Third Avenue
Seattle, Washington 98101
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (206) 461-2000
Item 9. Regulation FD Disclosure.
On June 6, 2002, Kerry K. Killinger, Chairman, President and Chief Executive Officer of Washington Mutual, Inc. will make the following presentation at the Sanford Bernstein Strategic Decisions Conference:
CORPORATE OVERVIEW
Sanford Bernstein Strategic Decisions
Conference
Kerry Killinger
Chairman, President and CEO
June 6, 2002
CORPORATE OVERVIEW
Forward-Looking Statements
This presentation 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 document that are not historical facts. When used in this presentation, the words "expects," "anticipates," "intends, "plans," "believes," "seeks," "estimates" and similar expressions are generally intended to identify forward-looking statements. These forward-looking statements are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the results discussed in these forward-looking statements for the reasons, among others, discussed under the heading "Business-Factors That May Affect Future Results" in Washington Mutual's 2001 Annual Report on Form 10-K and under the heading, "Cautionary Statements," in Washington Mutual's Quarterly Report on Form 10-Q for the period ended March 31, 2002, which are: changes in general business and economic conditions that may significantly affect our earnings; the risk that our inability to effectively manage the volatility of our mortgage banking business could adversely affect our earnings; the risk that our inability to effectively integrate the operati ons and personnel of companies we have acquired could adversely affect our earnings and financial condition; the possibility that the concentration of operations in California could adversely affect our operating results if the California economy or real estate market declines; competition from other financial services companies in all our markets could make it a bigger challenge for us to achieve our financial goals; changes in the regulation of financial services companies could adversely affect our business.
Business Segment Financial Information
Business segment financial information is prepared for management information purposes and uses methodologies which do not conform to generally accepted accounting principles. These methodologies include internal allocations of the cost of funds, hedge gains or losses, loan loss provisions and certain overhead items.
WM PROFILE
Mission
To be one of the nation's premier financial services companies
A leading consumer banking franchise
A leading residential lender(a) and residential servicer(b)
Nation's 6th-largest banking institution(c)
- (a)
- Source:
Inside Mortgage Finance for YTD 3/31/02
- (b)
- Source:
Inside Mortgage Finance as of 3/31/02
- (c)
- Source: SNL Securities and earnings releases of publicly held banking and thrift institutions based on total assets as of 3/31/02
WM PROFILE
Broad Business Segments
| Banking and Financial Services | Home Loans and Insurance Services | ||
| Consumer Banking | Mortgage Banking/Portfolio | ||
| Financial Services | Lending | ||
| Business Banking | Servicing | ||
| Originations | |||
| Insurance Services | |||
Specialty Finance Multi-family Lending Commercial Real Estate Consumer Finance |
WM PROFILE
INVESTMENT HIGHLIGHTS
Combined consumer banking/mortgage lending strategy generates strong profitability throughout interest rate cycle
Double-digit growth of banking fees regardless of interest rate environment
Relatively small, but growing Specialty Finance unit augments net interest income with higher margin assets
INVESTMENT HIGHLIGHTS
Lower credit risk profile than commercial banking peers
Powerful brand focused on middle market consumer
Proven track record of creating shareholder value
REVENUE DIVERSIFICATION
CREATING A POWERFUL NATIONAL FRANCHISE
Banking and Financial Services
Broad product line to serve individuals and small-to mid-sized business customers
Key driver of new household growth
Offers personal service as a key competitive differentiator
Offers wide range of investment products including mutual funds, variable and fixed-rate annuities and securities
BANKING AND FINANCIAL SERVICES
BANKING AND FINANCIAL SERVICES
CREATING A POWERFUL NATIONAL FRANCHISE
Home Loans and Insurance Services
A leading residential lender(a)
Balanced distribution channels
Diversified geographically
Leading residential servicer(b)
Serviced 6.8 million loans at 3/31/02
Created the #1 recognized mortgage lending brand(c)
Ability to extend customer relationships
- (a)
- Source:
Inside Mortgage Finance for YTD 3/31/02
- (b)
- Source:
Inside Mortgage Finance as of 3/31/02
- (c)
- Source: Independent study, TRD Frameworks, Inc. as of December 2001
HOME LOANS AND INSURANCE SERVICES
HOME LOANS AND INSURANCE SERVICES
CREATING A POWERFUL NATIONAL FRANCHISE
Specialty Finance
Multi-family Lending
Leading multi-family lender in the Western U.S.
Consumer Finance
Makes direct consumer installment loans, including real estate secured loans, and purchases retail installment contracts from retail establishments
461 offices in 25 states—primarily in the southeastern and southwestern U.S.
Strong credit risk management record
CREDIT RISK MANAGEMENT
FIVE-YEAR PLAN: 2000-2004
Achieve Financial Targets
| |
Q1 2002 Results |
Targets 2000-2004 |
|||
|---|---|---|---|---|---|
| Return on average common equity | 20.68 | % | >20.00 | % | |
| EPS growth | 28.95(a) | >13.00 | |||
| Efficiency ratio | 46.96(b) | <45.00 | |||
| NPA/Total assets | 1.01(c) | <1.00 | |||
| Common equity/total assets | 6.80 | (c)(d) | >5.00 | ||
| Estimated total risk-based capital | 11.88 | (c)(d)(e) | >11.00 |
- (a)
- Increase
in earnings per share from 1/1/02 through 3/31/02 over 1/1/01 through 3/31/01
- (b)
- Excludes
amortization of goodwill and other intangible assets
- (c)
- As
of 3/31/02
- (d)
- Excludes
unrealized net gain/loss on available-for-sale securities and derivatives
- (e)
- Estimate of what WMI's total risk-based capital would be if it were a bank holding company that complies with the Federal Reserve Board capital requirements
CREATING SHAREHOLDER VALUE
CREATING SHAREHOLDER VALUE
ACQUISITION UPDATE
| Closed Transactions |
Deposit & Loan Servicing Conversion Status |
|
|---|---|---|
| PNC(a) | X | |
| Bank United Corp. | X | |
| Fleet Mortgage Corp. | X | |
| Dime Savings Bank | Q2/Q3 2002 | |
| NAMC(b) | TBA | |
| HomeSide Lending(c) | N/A |
- (a)
- The
mortgage operations of The PNC Financial Services Group, Inc.
- (b)
- North
American Mortgage Company, a subsidiary of Dime Bancorp, Inc.
- (c)
- Acquired certain operating assets of HomeSide Lending, Inc.
CHARACTERISITICS OF HIGH PERFORMING COMPANIES
Above average EPS growth over long term
Above average return on common equity
Market leadership with barriers to entry in key businesses
High growth of customers
Strong intangible assets
WAMU—A HIGH PERFORMING COMPANY
Above average EPS growth (CAGR) over long term
EPS growth has averaged 20%(a) since Q1 '96 versus (8%) for the S&P 500(b)
Return on common equity
ROCE has averaged 22% since the beginning of 2000 through Q1 2002 versus 15% for the S&P 500 Bank Index(c)
Market leadership
Fast growth banking franchise with strategy to penetrate additional large, metropolitan markets
Leading mortgage lender and servicer
Creating a leading multi-family origination and servicing platform
- (a)
- Calculated
using quarterly EPS as originally reported from Q1 '96 to Q1 '02; excludes SAIF assessment in Q3 '96 and transaction-related charges (all applicable periods); includes
acquired companies only after date of merger
- (b)
- Historical
EPS growth rate calculated from Q1 '96 to Q4 '01 using quarterly EPS for each period ending Source: Standard and Poor's
- (c)
- Company data from Bloomberg
WAMU—A HIGH PERFORMING COMPANY
Strong Intangibles
Leading innovator in key businesses
Proven ability to create long-term shareholder value
Deep senior management bench
Track record of successful acquisition integrations
#1 recognized mortgage brand nationally(a)
Most recognized banking brand in key footprint states(b)
- (a)
- Source:
Independent study, TRD Frameworks, Inc. as of December 2001
- (b)
- Source: Internal survey, October 2001
BUILDING A NATIONAL BRAND
WaMu's Brand Promise:
Great value with friendly
service for everyone
BUILDING A NATIONAL BRAND
BUILDING A NATIONAL BRAND
T.V. Ad Spots
BUILDING A NATIONAL BRAND
BUILDING A NATIONAL BRAND
Occasio
1st
Market: Las Vegas—opened Q2 2000
2nd Market: Phoenix—opened Q1 2001
3rd Market: Atlanta—opened Q4 2001
4th Market: NY—opening Q2 2002
5th Market: Denver—opening Q4 2002
Occasio design will be used to expand and retrofit current markets and for new market expansion
SUMMARY
Dominant franchises in consumer banking and mortgage banking
Innovative, new retail bank store
High growth in fee-based revenues
Lower credit risk model than commercial bank peers
Powerful brand focused on broad middle market consumers
Proven track record of creating shareholder value
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.
| WASHINGTON MUTUAL, INC. | ||||
By: |
/s/ FAY L. CHAPMAN Fay L. Chapman Senior Executive Vice President |
|||
Date: June 4, 2002
SIGNATURE