-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GxJxMqO131MQ4NhtjQbiTmd2STIDLhBXSGXG18uz5BFw6Ax3aGTakcGTU+XnR482 jOJQGBEUYMYTEU/lkEdM8w== 0000891020-01-000103.txt : 20010123 0000891020-01-000103.hdr.sgml : 20010123 ACCESSION NUMBER: 0000891020-01-000103 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010122 ITEM INFORMATION: FILED AS OF DATE: 20010122 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WASHINGTON MUTUAL INC CENTRAL INDEX KEY: 0000933136 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTIONS, NOT FEDERALLY CHARTERED [6036] IRS NUMBER: 911653725 STATE OF INCORPORATION: WA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-14667 FILM NUMBER: 1512756 BUSINESS ADDRESS: STREET 1: 1201 THIRD AVE STREET 2: STE 1500 CITY: SEATTLE STATE: WA ZIP: 98101 BUSINESS PHONE: 2064612000 MAIL ADDRESS: STREET 1: 1201 THIRD AVE STREET 2: SUITE 1500 CITY: SEATTLE STATE: WA ZIP: 98101 8-K 1 v68744e8-k.txt FORM 8-K 1 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) January 22, 2001 WASHINGTON MUTUAL, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Washington 1-14667 91-1653725 - ---------------------------- --------------------- ------------------- (State or other jurisdiction (Commission File No.) (I.R.S. Employer of incorporation) 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 2 Item 9. Regulation FD Disclosure. The material set forth below was presented at a corporate conference on January 22, 2001. 3 [TO THE VERY TOP - LOGO] Craig Davis President Home Loans & Insurance Services Group 4 Welcome 5 the Power of Yes 6 WHERE WE'VE BEEN & WHERE WE'RE GOING. THE HLC OF THE FUTURE. CUSTOMER RELATIONSHIP MANAGEMENT. FULFILLMENT CENTER UPDATE. RICK BARERRA - GUEST SPEAKER Agenda 7 Thank you team! 8 A Watershed Year for Washington Mutual 9 We never forget the people behind our successes 10 This presentation contains materials that are best effort calculations, intended to give employees a baseline of what their performance would have been if they had been in their new business segment, which was created as of January 1, 2001. These management changes, as well as the changes in the company's segment reporting methodologies are expected to be reflected in the Form 10-Q for the quarter ended March 31, 2001. This presentation also 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 presentation 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. Actual results may differ material from the results discussed in these forward-looking statement for the reasons, among others discussed under the heading "Business-Risk Factors" in the company's 1999 Annual Report on Form 10-K. Forward-Looking Statements 11 WE EXCEEDED OUR PLAN BY 6% - OUR BEST YEAR EVER Loan Volume 12
2000 2000 % OF ACTUAL GOAL GOAL ---------------------------- RETAIL* $15.6 $16.5 95% WHOLESALE 23.7 20.0 119% CORRESPONDENT 2.0 1.5 133% CONSUMER DIRECT 0.3 N/A N/A LONG BEACH 3.9 4.7 83% SPECIALTY MORTGAGE 4.0 4.1 98% TOTAL 49.6 46.8 106%
Loan Volume by Channel Dollars in Billions *Excludes Consumer Bank originators. 13
2000 2000 % OF ACTUAL GOAL GOAL ---------------------------- LOAN VOLUME $11.1 $10.2 109%
Low to Mod Commitment Dollars in Billions 14 $200 BILLION Servicing Portfolio 15
2000 2000 % OF ACTUAL GOAL GOAL ---------------------------- LOAN SERVICING & RELATED INCOME* $263 $275 96% WASH. MUTUAL INSURANCE SVS. 17 17 100%
Fee Income Dollars in Millions *Includes Long Beach Mortgage 16
2000 2000 % OF ACTUAL GOAL GOAL ---------------------------- GAIN ON SALE OF LOANS $262 $245 107%
Gain on Sale of Loans Dollars in Millions 17
2000 2000 % OF ACTUAL GOAL GOAL ------- ------- ------- OPERATING EXPENSES(1)(MM) $ 435.0 $ 435.0 100% COST/LOAN (BPS)(2) 55.4 58.3 105% COST/LOAN SERVICED(2) $ 51.60 $ 50.00 97%
Operating Efficiency(3) (1) Excludes Specialty Mortgage Finance. (2) Excludes Long Beach Mortgage and Specialty Mortgage Finance. (3) Excludes allocated corporate overhead. 18
2000 2000 % OF ACTUAL GOAL GOAL -------- -------- -------- RETAIL(*) 14.2 16.0 89% WHOLESALE 33.0 33.0 100% APPRAISAL $ 7,660 $ 6,500 118% UNDERWRITING 4.9 6.5 75% CLOSING 57.2 53.0 108% LOAN SERVICING 1,377 1,350 102%
Productivity (*) Excludes Consumer Bank originations. 19 [GRAPH] SFR - Non Performing Assets Dollars in Millions 20 RETURN ON EQUITY(*) 20% Profitability % of Average Assets (*) Assumes 5% capital and 112 Bps of spread income and average assets of $123 billion. 21 2000 WHAT A YEAR! 22 GENEVIEVE SMITH ERIC SPENCE ELLIE CORNFELD STACEY ARENS MARITO DOMINGO BETH WOOD CARL FORMATO DAVE IMIG Direct Reports 23 Summit Club 24 President's Club 25 Chairman's Circle 26 1 LOAN VOLUME $74.6 B 2 FEE INCOME(*) $1.1 B 3 OPERATING EFFICIENCY 73% 4 NON PERFORMING ASSETS < 1% 5 RETURN ON EQUITY > 20% 2001 Big Five (*) Includes Loan Servicing, Loan-Related, Gain on Sale of Loans, and Insurance Services income. 27
2001 2000 % CHANGE GOAL ACTUAL -------------------------------- RETAIL $19.0 $17.8 7% CONSUMER DIRECT 2.7 1.5 80% WHOLESALE PRIME 25.3 27.1 (7%) WHOLESALE SUBPRIME 4.2 3.9 8% CORRESPONDENT PRIME 18.9 16.2 17% CORRESPONDENT SUBPRIME 4.5 4.0 13% TOTAL 74.6 70.5 6%
Loan Volume by Channel(*) Dollars in Billions (*) Pro-forma; includes Bank United, PNC Mortgage, Long Beach Mortgage and Specialty Mortgage Finance loans. 28 Top 10 SFR Mortgage Lenders Dollars in Billions
VOLUME SHARE ------------------ WELLS FARGO $59.3 7.8% WAMU 55.1 7.2% CHASE 53.9 7.1% COUNTRYWIDE 43.2 5.7% B OF A 40.5 5.3% ABN AMRO 16.4 2.2% CENDANT 16.3 2.1% NATIONAL CITY 15.5 2.0% FLEET 15.3 2.0% GOLDEN WEST 14.9 2.0%
Pro-forma Market Share(*) Volume (*) Source: Inside Mortgage Finance as of YTD 9-30-00. Adjusted per WaMu estimates of Specialty Mortgage Finance loans, Long Beach Mortgage, Bank United and PNC Mortgage. Wells Fargo includes pro-forma combination with GE Capital Mortgage and CrossLand Mortgage Corp. 29 Top 10 Mortgage Servicers Dollars in Billions
BALANCE SHARE ------------------- WELLS FARGO $431 8.4% CHASE 354 6.9% B OF A 334 6.6% WAMU 301 5.9% COUNTRYWIDE 274 5.4% HOMESIDE 173 3.4% GMAC 160 3.1% FLEET 133 2.6% FIRST NATIONWIDE 111 2.2% ABN AMRO 104 2.0%
Pro-forma Servicing Share(*) (*) Source: Inside Mortgage Finance as of YTD 9-30-00. Adjusted per WaMu estimates of Long Beach Mortgage, Bank United, and PNC Mortgage. 30
2001 2000 % CHANGE GOAL ACTUAL -------------------------------- LOAN SERVICING & RELATED INCOME $707 $599 18% WASH. MUTUAL INSURANCE SVS. 20 17 18% OTHER 24 9 167%
Fee Income(*) Dollars in Millions (*) Pro-forma; includes Bank United, PNC Mortgage, Long Beach Mortgage, and Specialty Mortgage Finance loans. 31
2001 2000 % CHANGE GOAL ACTUAL -------------------------------- GAIN ON SALE OF LOANS $306 $280 9%
Gain on Sale of Loans(*) Dollars in Millions (*) Pro-forma; includes Bank United, PNC Mortgage, Long Beach Mortgage, and Specialty Mortgage Finance loans. 32 1 SPREAD INCOME 2 FEE INCOME(*) 3 GAIN ON SALE OF LOANS 3 point strategy (*) Includes Loan Servicing, Loan-Related, Gain on Sale of Loans, and Insurance Services income. 33
2001 2000 % CHANGE GOAL ACTUAL(2) ------------------------------------- OPERATING EXPENSES (MM) $772.0 $743.0 (4%) COST/LOAN (BPS)(1) 63.2 65.3 3% COST/LOAN SERVICED(1) 52.8 54.7 4%
Operating Efficiency (1) Does not include Bank United, PNC Mortgage, Long Beach Mortgage, or Specialty Mortgage Finance numbers. (2) Pro-forma; includes Bank United, PNC Mortgage, Long Beach Mortgage, and Specialty Mortgage Finance loans; excludes allocated corporate overhead. 34
2001 2000 % CHANGE GOAL ACTUAL ---------------------------------- RETAIL 16.0 14.2 13% WHOLESALE 33.0 33.0 0 UNDERWRITING 5.5 4.9 12% APPRAISAL $7,700 $7,660 1% CLOSING 58.0 57.2 1% LOAN SERVICING 1,400 1,377 2%
Productivity 35
2001 2000 % CHANGE GOAL ACTUAL ---------------------------------- ROE AT ORIGINATION(*) 20% 19.8% 1%
Profitability (*) Assumes 5% capital and 112 Bps of spread income and average assets of $123 billion. 36 THE WINDOW OF OPPORTUNITY IS OPEN RIGHT NOW Our Mission & Goals 37 WE STRONGLY SUPPORT AFFORDABLE HOUSING PROGRAMS Our Commitment 38 LOCAL INITIATIVES SUPPORT CORPORATION $810,000 NEIGHBORHOOD HOUSING SERVICES $484,500 ENTERPRISE FOUNDATION $358,000 HABITAT FOR HUMANITY $153,000
Largest Grant Recipients Nationwide - 2000 39
HOURS VOLUNTEERS PROJECTS ----------------------------------------- HABITAT FOR HUMANITY 2,340 479 47 CHRISTMAS IN APRIL 1,100 150 9
Largest Recipient Organizations Volunteers 40 [GRAPHIC] 41 We need to become #1 42
1999 2000 ---- ---- LOAN VOLUME $ 75 $243 SERVICING PORTFOLIO $310 $970 FEE INCOME* $0.5 $1.0 GAIN ON SALE OF LOANS $0.2 $1.1 OPERATING EFFICIENCY 48% 39% RETURN ON EQUITY 20% 22%
5 Year Goals Dollars in Billions * Includes Loan Servicing, Loan-Related, and Insurance Services income. 43 #1 NATIONAL MORTGAGE LENDER SERVICING SHARE ORIGINATION SHARE PROFITABILITY BRAND RECOGNITION Goals 2001 44 PRIME ORIGINATION $1.48 TRILLION SUBPRIME ORIGINATION $140 BILLION SERVICING $6.43 TRILLION ORIG. MARKET BY TOP 5 LENDERS 50%
Market Forecast* 2005 * Source: WaMu internal data. 45 LOAN VOLUME $243 SERVICING $970 FEE INCOME* 21% GAIN ON SALE OF LOANS 22% OPERATING EFFICIENCY 39% NON PERFORMING ASSETS <1% RETURN ON EQUITY >20%
5 Year Goals Dollars in Billions * Includes Loan Servicing, Loan-Related, and Insurance Services income. 46 DIVERSIFY & BRING CONSISTENCY TO REVENUE BASE DRIVE DOWN COSTS RETAIN & CROSS-SELL EXISTING CUSTOMERS 5 Year Goals 47 3 POINT STRATEGY 1 SPREAD INCOME 2 FEE INCOME* 3 GAIN ON SALE OF LOANS 5 Year Goals * Includes Loan Servicing, Loan-Related, and Insurance Services income. 48 DISTRIBUTION STRATEGY ALLOW CUSTOMERS TO DO BUSINESS WITH US THE WAY THEY WANT 5 Year Goals 49 CUSTOMER RELATIONSHIP MANAGEMENT STRATEGY MAXIMIZE THE CUSTOMER RELATIONSHIP THROUGH RETENTION, CROSS-SELL AND CUSTOMER CONTACT 5 Year Goals 50 BUY & BUILD STRATEGY ADD SCALE AND DISTRIBUTION BY GROWING EXISTING CHANNELS AND BUYING WHEN IT MAKES SENSE 5 Year Goals 51 TECHNOLOGY IS DRIVING DOWN COSTS OPTIS = BETTER-FASTER-CHEAPER 5 Year Goals 52 Going beyond the ordinary to Accomplish the extraordinary 53 SIGNATURE 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 Executive Vice President and General Counsel Date: January 22, 2001 -----END PRIVACY-ENHANCED MESSAGE-----