-----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, HnAkkiOMnHWTkHzvUKG8kRvf/5I0KKFBkgiw/9TBppj80kiHiAnJ50guHy1sPKiu vOraIeEq7ZNHGCp0pyJ91g== 0000891020-97-000702.txt : 19970505 0000891020-97-000702.hdr.sgml : 19970505 ACCESSION NUMBER: 0000891020-97-000702 CONFORMED SUBMISSION TYPE: DEFA14A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19970502 SROS: NASD 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: DEFA14A SEC ACT: 1934 Act SEC FILE NUMBER: 000-25188 FILM NUMBER: 97594555 BUSINESS ADDRESS: STREET 1: 1201 THIRD AVENUE CITY: SEATTLE STATE: WA ZIP: 98101 BUSINESS PHONE: 2064612000 MAIL ADDRESS: STREET 1: 1201 THIRD AVE STREET 2: 1201 THIRD AVE CITY: SEATTLE STATE: WA ZIP: 98101 DEFA14A 1 SOLICITATION MATERIAL 1 SCHEDULE 14A INFORMATION REVOCATION STATEMENT PURSUANT TO SECTION 14(a) OF THE SECURITIES EXCHANGE ACT OF 1934 Filed by the Registrant /X/ Filed by a Party other than the Registrant / / Check the appropriate box: / / Preliminary Proxy Statement (Revocation of Consent Statement) / / Confidential, for Use of the Commission Only (as permitted by Rule 14s-6(e)(2)) / / Definitive Proxy Statement (Revocation of Consent Statement) / / Definitive Additional Materials /x/ Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12 WASHINGTON MUTUAL, INC. - -------------------------------------------------------------------------------- (Name of Registrant as Specified In Its Charter) - -------------------------------------------------------------------------------- (Name of Person(s) Filing Proxy Statement, if Other Than the Registrant) Payment of Filing Fee (Check the appropriate box): /x/ No fee required. / / Fee computed on table below per Exchange Act Rules 14s-6(i)(1) and 0-11. (1) Title of each class of securities to which transaction applies: ------------------------------------------------------------------------ (2) Aggregate number of securities to which transaction applies: ------------------------------------------------------------------------ (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): ------------------------------------------------------------------------ (4) Proposed maximum aggregate value of transactions: ------------------------------------------------------------------------ (5) Total fee paid: ------------------------------------------------------------------------ / / Fee paid previously with preliminary materials. / / Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. (1) Amount Previously Paid: ------------------------------------------------------------------------ (2) Form, Schedule or Registration Statement No.: ------------------------------------------------------------------------ (3) Filing Party: ------------------------------------------------------------------------ (4) Date Filed: ------------------------------------------------------------------------ 2 - -------------------------------------------------------------------------------- Q1 1997 - ----------------------------------------------------------------------- UBS Securities Global Banking Conference May 2, 1997 [LOGO] Washington Mutual Washington Mutual, Inc. 1 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- WAMU Profile - ----------------------------------------------------------------------- Size - Largest Bank Headquartered in the Pacific Northwest Mission - To Be the Premier Financial Services Organization in the Western United States Business - Consumer Banking Lines - Small- to Mid-Size Commercial Banking - Annuities - Securities and Insurance Brokerage Washington Mutual, Inc. 2 - -------------------------------------------------------------------------------- 3 - -------------------------------------------------------------------------------- WAMU Profile - ----------------------------------------------------------------------- Description: Financial Services Organization Lines of Consumer Banking, Small- to Mid-size Business: Commercial Banking, Investment and Insurance Products Rank: No. 1 Residential Mortgage Lender in Washington and Oregon; No. 2 in California Washington Mutual, Inc. 3 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- WAMU/GWF Pro Forma Profile - 3/31/97 - ----------------------------------------------------------------------- WAMU WAMU/GWF ---- -------- Total Assets $46.1 bn $88.5 bn Total Deposits $24.3 bn $52.5 bn Equity/Assets 5.27% 5.31% Locations 590 1,209 Households 1.5 mm 3.9 mm Marketplace WA, OR, CA, UT, + FL ID, AZ, CO, NV, MT Washington Mutual, Inc. 4 - -------------------------------------------------------------------------------- 4 - -------------------------------------------------------------------------------- WAMU/GWF Pro Forma - ----------------------------------------------------------------------- Consumer Banking Operations - - Largest Bank Headquartered in the Northwest - - 427 Financial Centers with Deposits of $24.3 Billion/ 843 Financial Centers with Deposits of $52.5 Billion - - 102 Loan Offices; YTD Loan Originations of $3.5 Billion/ 305 Loan Offices; YTD Loan Originations of $5.7 Billion 3/31/97 Washington Mutual, Inc. 5 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- WAMU Profile - ----------------------------------------------------------------------- Key Strategies - - Continue Expanding Consumer Banking Franchise - - Grow Commercial Banking Operations - - Maintain a High Quality Balance Sheet - - Improve Operating Efficiency Washington Mutual, Inc. 6 - -------------------------------------------------------------------------------- 5 - -------------------------------------------------------------------------------- WAMU Profile - ----------------------------------------------------------------------- Five-Year Financial Targets: 1995 - 2000 Target Results 3/31/97 ------ --------------- - - ROCE >18.00% 19.42% - - Efficiency Ratio <50.00 49.1 - - NPA/Total Assets <1.00 0.73 - - LLR/NPA less REO >100.00 152.90 - - One-Year Gap <(10.00) (0.76) - - EPS Growth 15.00 - - WAMU Return/S&P 500 >100.00 - - Common Equity/Assets >5.00 Washington Mutual, Inc. 7 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Investment Strengths - ----------------------------------------------------------------------- Market Presence - Locations in 9 Western States - Meaningful Market Position in WA, OR, UT and CA Superior Consumer - Successful Marketing Approach Focused Strategy on Customer Acquisition and Cross-Selling Expand Commercial - Small- to Mid-Size Business Banking Strong Financial - Continuing Strong Profitability Condition - High Quality Balance Sheet Demonstrated Track - History of Successful Growth Through Record Acquisitions - Stock Market Outperformance Washington Mutual, Inc. 8 - -------------------------------------------------------------------------------- 6 INVESTMENT STRENGTHS Market Presence - Locations in 9 Western States - Meaningful Market Position in WA, OR, UT and CA Superior Consumer - Successful Marketing Approach Focused on Strategy Customer Acquisition and Cross-Selling Expand Commercial - Small- to Mid-Size Businesses Banking Strong Financial - Continuing Strong Profitability Condition - High Quality Balance Sheet Demonstrated Track - History of Successful Growth Through Record Acquisitions - Stock Market Outperformance Washington Mutual, Inc. 9 - ------------------------------------------------------------------------- MARKET PRESENCE DISTRIBUTION NETWORK (AS OF 3/31/97) BANKING OPERATIONS Consumer Banking Locations: Traditional Branches 343 In-Store Branches 84 Loan Centers 102 --- 529 [MAP OF WESTERN UNITED STATES] Commercial Banking Locations: Traditional Branches 50 Business Banking Centers 11 -- 61 Households Served 1.5 mm(a) (a) As of 3/31/97
Washington Mutual, Inc. 10 - ------------------------------------------------------------------------- 7 MARKET PRESENCE - WAMU/GWF PRO FORMA STRONG WEST COAST AND FLORIDA FRANCHISES
Deposits Deposit State ($B)(a) Share Rank ----- -------- ------- ---- [MAP OF WESTERN UNITED STATES AND FLORIDA California $34.6 9.2% 3 SHOWING BRANCH LOCATIONS] Washington 8.1 15.4% 2 Oregon 2.8 10.0% 3 o WAMU Florida 7.1 4.0% 5 - - GWF Other States 0.6 N/A N/A
Source: SNL Securities (a) June 30, 1996 deposit data updated for announced acquisitions through February 26, 1997 Washington Mutual, Inc. 11 - -------------------------------------------------------------------------- MARKET PRESENCE - WAMU/GWF PRO FORMA NATIONAL CONSUMER ORIGINATION FRANCHISE [MAP OF UNITED STATES] Mortgage Consumer Loan Finance State Offices Locations Great Western: California 107 28 Retail Mortgage Washington 30 0 * Wholesale Mortgage Oregon 13 0 / / Aristar Florida 20 35 Other States 123 439 Washington Mutual: --- --- o Mortgage Loan Offices Total 293 502 Washington Mutual, Inc. 12 - -------------------------------------------------------------------------- 8 MARKET PRESENCE SFR LOAN ORIGINATION MARKET SHARE(a) - WAMU/GWF PRO FORMA
[BAR GRAPH] WASHINGTON OREGON CALIFORNIA(b) UTAH(c) ---------- ------ ------------- ------- WAMU/GWF 16.5% 11.4% 6.7% 6.4% NOB 6.5% 5.9% 6.1% BAC 4.0% 4.7% 8.8% GDW 3.0% ZION 4.8%
(a) Percent market share for YTD 12/31/96 (b) Includes first and second mortgages (c) Includes Utah Federal Savings Bank and United Savings Bank (pro forma) Washington Mutual, Inc. 13 - -------------------------------------------------------------------------- MARKET PRESENCE CONSUMER DEPOSIT MARKET SHARE - WAMU/GWF PRO FORMA(a)
[BAR GRAPH] WASHINGTON OREGON CALIFORNIA(b) ---------- ------ ------------- BAC 15.8% USBC 26.4% BAC 16.1% WAMU 14.5% WFC 12.8% WFC 10.9% USBC 10.4% WAMU 9.5% WAMU/GWF 9.6% KEY 9.6% KEY 7.6% AHM 8.0% WFC 3.8% BAC 7.0% WORLD 5.0%
(a) Percent dollar volume as of 9/96 Note: Excludes government and noninterest-bearing accounts. Washington Mutual, Inc. 14 - -------------------------------------------------------------------------- 9 SUPERIOR CONSUMER STRATEGY - WAMU/GWF PRO FORMA STRONG BUSINESS LINE FIT o Consumer Loan Products o Business Banking Products o Home Equity WM o Small Business Lending GW o Consumer Finance GW o Business Checking GW o Manufactured Housing WM o Community Banking WM o Auto/Other WM o Retail Banking Products o Non-Banking Services o Transaction Accounts WM GW o Mutual Funds WM GW o Certificates/Savings GW o Annuities WM GW o Securities Brokerage WM GW o Mortgage Lending o Credit Insurance WM GW o Single Family WM GW o Residential Construction WM o Multi-Family WM Washington Mutual, Inc. 15 - -------------------------------------------------------------------------- MARKET PRESENCE MARKETPLACE STRENGTHS o Pacific Northwest: Strong Economic Base -- Well-diversified: Manufacturing, Aerospace, Extractive Industries, Health Care, Agriculture and International Trade -- High Growth Industries: Software, Biotech and High Tech o WA, OR, ID and UT Econonmic Growth Continues to Outpace the Nation -- 1989-1995 Per Capita Personal Income Growth Exceeded National Average o In 1996, California Led the Nation in Job Creation -- Biggest Gains in High Tech, Exports and Construction -- Broad-Based Recovery, Diminished Reliance on Defense Washington Mutual, Inc. 16 - -------------------------------------------------------------------------- 10 - -------------------------------------------------------------------------------- Market Presence - ----------------------------------------------------------------------- 1997 Growth Estimates Estimated Population Employment Population (1996) Growth Growth ----------------- ------ ------ (in Millions) - - Washington 5.5 1.7% 3.2% - - Oregon 3.2 1.8 3.2 - - Utah 2.0 2.2 4.6 - - Idaho 1.2 2.0 2.9 --- --- --- Total 11.9 1.8% 3.4% - - California 32.4 1.3% 2.6% - - USA 266.6 0.9 1.4 Sources: Western Blue Chip Economic Forecast - April 1997 (Individual States) US Census Bureau - Feb. 1997 (USA) Washington Mutual, Inc. 17 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Investment Strengths - ----------------------------------------------------------------------- Market Presence - Locations in 9 Western States - Meaningful Market Position in WA, OR, UT and CA - --------------------------------------------------------------------------- Superior Consumer - Successful Marketing Approach Focused on Strategy Customer Acquisition and Cross-Selling - --------------------------------------------------------------------------- Expand Commercial - Small- to Mid-Size Businesses Banking Strong Financial - Continuing Strong Profitability Condition - High Quality Balance Sheet Demonstrated Track - History of Successful Growth Through Record Acquisitions - Stock Market Outperformance Washington Mutual, Inc. 18 - -------------------------------------------------------------------------------- 11 - -------------------------------------------------------------------------------- Superior Consumer Strategy - ----------------------------------------------------------------------- Customer Acquisition/Cross-Selling Strategy -------------------------------------------------- Strategies - Offer Competitive Consumer-Oriented Products - Employ Aggressive Marketing Techniques - Increase Customer Contact Through Multiple Delivery Channels - Cross-Sell Customers -------------------------------------------------- [ARROW] -------------------------------------------------- Results - Increase in Households Served - Increase in Checking Accounts - Increase in Fee Income - Increase in Consumer Loan Originations -------------------------------------------------- Washington Mutual, Inc. 19 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Superior Consumer Strategy - ----------------------------------------------------------------------- ASB Product Opportunities Loan Deposit Nonbanking Products Products Products -------- -------- -------- - - Home Equity - Checking - Mutual Funds - - Manufactured - Money Market - Annuities Housing - - Construction - Securities Brokerage - - Auto Washington Mutual, Inc. 20 - -------------------------------------------------------------------------------- 12 SUPERIOR CONSUMER STRATEGY - -------------------------- Households Served
[BAR GRAPH] WAMU ASB TOTAL ------- ------- --------- 1994 652,643 544,602 1,197,245 1995 737,257 585,420 1,322,677 1996 830,425 592,916 1,423,341 3/31/97 909,541 611,062 1,520,603
------------------------- ---------------------- CAGR 12/31/93 - 12/31/96 % chg 1/1/97 - 3/31/97 WAMU: 10.0% ASB: 2.7% WAMU: 9.5% ASB: 3.1% ------------------------- ---------------------- Washington Mutual, Inc. 21 - ----------------------------------------------------------------- SUPERIOR CONSUMER STRATEGY - -------------------------- Retail Checking Accounts
[BAR GRAPH] WAMU ASB TOTAL ------- ------- --------- 1994 393,845 186,949 580,794 1995 489,047 231,922 720,969 1996 608,365 237,617 845,982 3/31/97 651,474 268,932 920,406
------------------------- ---------------------- CAGR 12/31/93 - 12/31/96 % chg 1/1/97 - 3/3/97 WAMU: 22.6% ASB: 6.3% WAMU: 7.1% ASB: 13.2% ------------------------- ---------------------- Washington Mutual, Inc. 22 - ----------------------------------------------------------------- 13 SUPERIOR CONSUMER STRATEGY - -------------------------- Depositor Fee Income (Dollars in Millions) [BAR GRAPH]
WAMU ASB TOTAL ------ ------ ------ 1994 $28.5 $16.8 $ 45.3 1995 57.5 21.5 79.0 1996 79.0 23.6 102.6 3/31/96 16.8 5.7 22.5 3/31/97 22.6 6.0 28.6
------------------------- ------------------------- CAGR 12/31/93 - 12/31/96 % chg 1/1/97 - 3/31/97 WAMU: 52.4% WAMU: 34.5% ASB: 10.3% ASB: 5.3% ------------------------- ------------------------- Washington Mutual, Inc. 23 - -------------------------------------------------------------------- SUPERIOR CONSUMER STRATEGY - -------------------------- Total Loan Originations - WAMU/GWF Pro Forma (Dollars in Billions) [BAR GRAPH]
WAMU GWF TOTAL ------ ------ ------ 1994 $ 9.3 $10.2 $ 19.5 1995 9.4 9.7 19.1 1996 13.6 8.5 22.1 3/31/96 3.0 1.7 4.7 3/31/97 3.4 2.2 5.6
Loan originations less REO transferes, prepayments and paydowns. Washington Mutual, Inc. 24 - -------------------------------------------------------------------- 14 SUPERIOR CONSUMER STRATEGY - -------------------------- Net Originations - WAMU/GWF Pro Forma (Dollars in Billions) [BAR GRAPH]
WAMU GWF TOTAL ------ ------ ------ 1994 $5.6 $3.8 $ 9.4 1995 6.5 4.5 11.0 1996 9.2 2.2 11.4 3/31/96 1.8 0.4 2.2 3/31/97 2.1 0.9 3.0
Net originations are not reduced for loans sold. Washington Mutual, Inc. 25 - -------------------------------------------------------------------- SUPERIOR CONSUMER STRATEGY - -------------------------- Consumer Lending(a) (Dollars in Millions) [BAR GRAPH]
WAMU ASB TOTAL -------- ------ -------- 1994 $ 997.8 $111.6 $1,109.4 1995 967.7 150.6 1,118.3 1996 1,268.3 141.5 1,409.8 3/31/96 237.4 36.2 273.6 3/31/97 333.1 36.7 369.8
------------------------- ---------------------- CAGR 12/31/93 - 12/31/96 % chg 1/1/97 - 3/31/97 WAMU: 9.8% ASB: 1.7% WAMU: 40.3% ASB: 1.4% (a) Consumer loan originations, not including SFR. Washington Mutual, Inc. 26 - -------------------------------------------------------------------- 15 ------------------------------------------------------------------- INVESTMENT STRENGTHS ------------------------------------------------------------------- Market Presence o Locations in 9 Western States o Meaningful Market Position in WA, OR, UT and CA Superior Consumer o Successful Marketing Approach Focused on Strategy Customer Acquisition and Cross-Selling ------------------------------------------------------------------- Expand Commercial o Small-to Mid-Size Businesses Bank ------------------------------------------------------------------- Strong Financial o Continuing Strong Profitability Condition o High Quality Balance Sheet Demonstrated Track o History of Successful Growth Through Record Acquisitions o Stock Market Outperformance Washington Mutual, Inc. 27 ------------------------------------------------------------------- ------------------------------------------------------------------- COMMERCIAL BANKING ------------------------------------------------------------------- Higher Margin Business o Western Bank Division of WMB (WA & OR) --Separate Branding Strategy --Experienced Commercial Banking Staff o 50 Full-Service Offices/11 Business Banking Centers o Combined Assets - $1.11 Billion o Average ROA - 1.26% YTD 3/31/97 Washington Mutual, Inc. 28 ------------------------------------------------------------------- 16 ------------------------------------------------------------------- INVESTMENT STRENGTHS ------------------------------------------------------------------- Market Presence o Locations in 9 Western States o Meaningful Market Position in WA, OR, UT and CA Superior Consumer o Successful Marketing Approach Focused on Strategy Customer Acquisition and Cross-Selling Expand Commercial o Small-to Mid-Size Businesses Bank ------------------------------------------------------------------- Strong Financial o Continuing Strong Profitability Condition o High Quality Balance Sheet ------------------------------------------------------------------- Demonstrated Track o History of Successful Growth Through Record Acquisitions o Stock Market Outperformance ------------------------------------------------------------------- Washington Mutual, Inc. 29 ------------------------------------------------------------------- ------------------------------------------------------------------- CONTINUED PROFITABILITY ------------------------------------------------------------------- Net Income
[BAR GRAPH] NET INCOME (Dollars in Millions) ROAA ---------------------- ---- 1994 $240.3 0.69% 1995 $289.9 0.73% 1996 $408.8(a) 0.95%(b) $114.3(b) 0.27%(a) 3/31/96 $ 88.8 0.85% 3/31/97 $114.1 1.01%
(a) Excludes SAIF assessment and transaction-related expenses (b) Includes SAIF assessment and transaction-related expenses Washington Mutual, Inc. 30 - -------------------------------------------------------------------- 17 CONTINUED PROFITABILITY Net Interest Income [BAR GRAPH] (Dollars in Millions) 1994 $ 960.1 1995 992.7 1996 1,191.0 3/31/96 287.0 3/31/97 317.0 Washington Mutual, Inc. 31 - -------------------------------------------------------------------------- [LINE GRAPH] CONTINUED PROFITABILITY Net Interest Margin WAMU COMBINED ASB* ---- -------- ---- Q4 '95 3.19% 2.79% 2.36% Q1 '96 3.26 2.89 2.48 Q2 '96 3.35 2.94 2.50 Q3 '96 3.30 2.83 2.26 Q4 '96 3.55 2.91 2.26 Q1 '97 3.55 2.88 2.40 *Formerly Keystone Holdings, Inc. through 12/31/96 Washington Mutual, Inc. 32 - -------------------------------------------------------------------------- 18 CONTINUED PROFITABILITY Operating Efficiency [BAR GRAPH] OPERATING EXPENSES OPERATING (Dollars in Millions) EFFICIENCY RATIO --------------------- ---------------- 1994 $695.5 58.9% 1995 $700.5 58.3% 1996 $743.0(a) 51.2%(a) $1,025.3(b) 70.7%(b) 3/31/96 $181.1 52.6% 3/31/97 $192.6 49.1% (a) Excludes SAIF assessment and transaction-related expenses (b) Includes SAIF assessment and transaction-related expenses Washington Mutual, Inc. 33 - -------------------------------------------------------------------------- CONTINUED PROFITABILITY Nonperforming Assets (Dollars in Millions) [BAR GRAPH] NPAs NPAs/ASSETS ---- ----------- 1994 $418.7 1.12% 1995 $338.9 0.81% 1996 $329.5 0.74% 3/31/9 $334.6 0.73% Washington Mutual, Inc. 34 - -------------------------------------------------------------------------- 19 CONTINUED PROFITABILITY Reserve for Loan Losses [BAR GRAPH] RESERVES/ DOLLARS NPAs, (Dollars in Millions) LESS REO ------- --------- 1994 $245.0 87.2% 1995 $235.3 110.0% 1996 $363.4 160.5% 3/31/97 $367.2 152.9% Washington Mutual, Inc. 35 - -------------------------------------------------------------------------- INVESTMENT STRENGTHS Market Presence o Locations in 9 Western States o Meaningful Market Position in WA, OR, UT and CA Superior Consumer o Successful Marketing Approach Focused on Strategy Customer Acquisition and Cross-Selling Expand Commercial o Small- to Mid-Size Businesses Banking Strong Financial o Continuing Strong Profitability Condition o High Quality Balance Sheet Demonstrated Track o History of Successful Growth Through Acquisitions Record o Stock Market Outperformance Washington Mutual, Inc. 36 - -------------------------------------------------------------------------- 20 SUCCESSFUL GROWTH THROUGH ACQUISITIONS Assets Acquired Institution (In Millions) Branches - -------- ----------- ------------- -------- 1988-92 10 Acquisitions $ 2,041.2 84 1993 Pioneer(a) 926.5 17 1993 Pacific First 5,861.3 129 1994 Far West 42.2(b) 3 1994 Summit(a) 188.1 4 1995 Olympus(a) 391.4 11 1995 Enterprise(a)(c) 153.8 1 1996 Western(a)(c) 776.3 42 1996 Utah Federal(a) 122.6 5 1996 American(a) 21,915.8 221 1997(d) United Western 414.9(e) 9 --------- --- $32,235.3 526 (a) Pooling transaction (b) Branch acquisition only (c) Commercial bank (d) Acquisition closed 1/15/97 (e) As of 9/30/96 Washington Mutual, Inc. 37 - -------------------------------------------------------------------------- SUCCESSFUL GROWTH THROUGH ACQUISITIONS [MAP OF WESTERN UNITED STATES [MAP OF WESTERN UNITED STATES HIGHLIGHTING ONLY WASHINGTON STATE] HIGHLIGHTING NINE WESTERN STATES] 1987(a) 3/31/97(b) - --------------------------------- --------------------------------------- Assets $ 5.7 bn Assets $46.1 bn Loans 3.0 bn Loans 32.2 bn Deposits 3.5 bn Deposits 24.3 bn Equity 316.9 mm Equity 2.4 bn Stock Price $ 6.28 Stock Price $48.31 Market Cap 211.9 mm Market Cap 5.7 bn - --------------------------------- --------------------------------------- (a) As of and for the latest twelve months ended 12/31/87 (b) As of and for the latest three months ended 3/31/97 Washington Mutual, Inc. 38 - -------------------------------------------------------------------------- 21 STOCK MARKET OUTPERFORMANCE - --------------------------- Valuation Summary
Average Annual Return(a) WAMU S&P 500 ------------------------ ----- ------- 5 Years 30.76% 16.39% 10 Years 20.67 13.34 Present Valuation(b) 3/31/97 -------------------- ---------------- Price/Book 2.47x 2.49x Price/EPS 12.99 (c) 19.61 Dividend Yield 2.15%(d) 2.01%
(a) Period ending 3/31/97; assumes reinvestment of dividends (b) Reflects 3/31/97 stock price at $48.31 (c) EPS calculated on a fully diluted basis (d) Represents dividends declared 4/15/97 to price at 3/31/97 Sources: Bloomberg (total returns): Barron's Washington Mutual, Inc. 39 - -------------------------------------------------------------- STOCK MARKET OUTPERFORMANCE - --------------------------- Closing Price of WAMU Stock* [LINE GRAPH]
1986 $ 7.00 1987 6.00 1988 6.00 1989 8.00 1990 5.00 1991 15.00 1992 22.00 1993 24.00 1994 16.88 1995 27.88 Q196 29.75 Q296 29.875 Q396 37.25 Q496 43.313 3/31/97 48.31
* Prices adjusted for 50% stock dividends in Q3'86, Q3'87, Q1'92 and Q3'93 Washington Mutual, Inc. 40 - -------------------------------------------------------------- 22 STOCK MARKET OUTPERFORMANCE - --------------------------- Dividends Paid to Shareholders PER SHARE [LINE GRAPH]
'86 $.10 '87 .13 '88 .16 '89 .16 '90 .19 '91 .23 '92 .33 '93 .50 '94 .77 '95 .77 '96 .90 * Q2'97 1.04
Quarterly amounts are annualized Adjusted for Q3'86, Q3'87, Q1'92 and Q3'93 50% stock dividends CAGR: 22.8% Washington Mutual, Inc. 41 - -------------------------------------------------------------- STOCK MARKET OUTPERFORMANCE - --------------------------- Cumulative Total Return Comparison (Assumes reinvestment of dividends)
WAMU S&P S&P FINANCIAL INDEX --------- ------- ------------------- *3/83 $ 100.00 $100.00 $100.00 12/83 106.00 111.35 99.18 12/84 92.99 118.78 108.49 12/85 137.02 155.70 154.64 12/86 281.20 184.69 167.02 12/87 263.99 194.26 139.02 12/88 268.61 226.31 164.23 12/89 365.43 297.80 217.79 12/90 245.10 288.51 171.14 12/91 698.89 376.04 257.65 12/92 1,066.19 404.66 317.68 12/93 1,172.34 445.45 352.94 12/94 848.84 451.33 340.45 12/95 1,505.11 620.93 524.37 12/96 2,318.92 763.50 708.78 3/31/97 2,598.52 783.97 740.87
*$100 Invested 3/83 Washington Mutual, Inc. 42 - -------------------------------------------------------------- 23 STOCK MARKET OUTPERFORMANCE - --------------------------- Total Annual Return Peer Comparison 4/1/90 - 3/31/97 Percentage ---------- WAMU 34.79% NOB 28.57% CCI 28.57% WFC 28.22% BAC 23.88% USBC 23.81% KEY 22.37% NB 20.36% GWF 19.30% ONE 16.71% AHM 16.08% SPX 15.31% GDW 13.53% WFSL 12.61%
Source: Bloomberg Washington Mutual, Inc. 43 - -------------------------------------------------------------- 24 Washington Mutual, Inc. ("Washington Mutual") and certain other persons named below may be deemed to be participants in the solicitation of proxies in connection with the merger of Great Western Financial Corporation ("Great Western") and a wholly-owned subsidiary of Washington Mutual pursuant to which each outstanding share of Great Western common stock would be converted into 0.9 shares of Washington Mutual common stock (the "Merger"). The participants in this solicitation may include the directors of Washington Mutual (Douglas P. Beighle, David Bonderman, J. Taylor Crandall, Roger H. Eigsti, John W. Ellis, Daniel J. Evans, Anne V. Farrell, William P. Gerberding, Kerry K. Killinger, Samuel B. McKinney, Michael K. Murphy, William G. Reed, Jr., and James H. Stever); the following executive officers of Washington Mutual: Craig S. Davis, Steven P. Freimuth, Lee D. Lannoye, William A. Longbrake, Deanna W. Oppenheimer, Craig E. Tall and S. Liane Wilson; and the following other members of management of Washington Mutual: Karen Christensen, JoAnn DeGrande, William Ehrlich, James B. Fitzgerald, Marc R. Kittner and Douglas G. Wisdorf (collectively, the "Washington Mutual Participants"). As of the date of this communication, David Bonderman, J. Taylor Crandall and Kerry K. Killinger beneficially owned 1,894,141 shares, 6,549,755 shares and 1,044,224 shares of Washington Mutual common stock, respectively. The remaining Washington Mutual Participants do not beneficially own, individually or in the aggregate, in excess of 1% of Washington Mutual's equity securities. Other participants in the solicitation include Great Western and may include the directors of Great Western (James F. Montgomery, John F. Maher, Dr. David Alexander, H. Frederick Christie, Stephen E. Frank, John V. Giovenco, Firmin A. Gryp, Enrique Hernandez, Jr., Charles D. Miller, Dr. Alberta E. Siegel and Willis B. Wood, Jr.); the following executive officers of Great Western: J. Lance Erikson, Carl F. Geuther, Michael M. Pappas, A. William Schenck III, Ray W. Sims, and Jaynie M. Studenmund; and the following other members of management of Great Western: Stephen F. Adams, Bruce F. Antenberg, Barry R. Barkley, Ian D. Campbell, Charles Coleman, Allen D. Meadows, and John A. Trotter (collectively, the "Great Western Participants"). As of the date of this communication, James F. Montgomery and John F. Maher beneficially owned 680,488 shares and 611,762 shares of Great Western common stock, respectively (including shares subject to stock options exercisable within 60 days). The remaining Great Western Participants do not beneficially own, individually or in the aggregate, in excess of 1% of Great Western's equity securities. Washington Mutual has retained Lehman Brothers Inc. ("Lehman Brothers") to act as its financial advisor in connection with the Merger for which it received and may receive substantial fees as well as reimbursement of reasonable out-of-pocket expenses. In addition, Washington Mutual has agreed to indemnify Lehman Brothers and certain persons related to it against certain liabilities, including certain liabilities under the federal securities laws, arising out of its engagement. Lehman Brothers is an investment banking firm that provides a full range of financial services for institutional and individual clients. Lehman Brothers does not admit that it or any of its directors, officers or employees is a "participant" as defined in Schedule 14A promulgated under the Securities Exchange Act of 1934, as amended, in the proxy solicitation, 25 or that Schedule 14A requires the disclosure of certain information concerning Lehman Brothers. In connection with Lehman Brothers' role as financial advisor to Washington Mutual, Lehman Brothers and the following investment banking employees of Lehman Brothers may communicate in person, by telephone or otherwise with a limited number of institutions, brokers or other persons who are stockholders of Washington Mutual and Great Western: Steven B. Wolitzer, Philip R. Erlanger, Sanjiv Sobti, David J. Kim, Craig P. Sweeney and Daniel A. Trznadel. In the normal course of its business Lehman Brothers regularly buys and sells securities issued by Washington Mutual and its affiliates ("Washington Mutual Securities") and Great Western and its affiliates ("Great Western Securities") for its own account and for the account of its customers, which transactions may result from time to time in Lehman Brothers and its associates having a net "long" or net "short" position in Washington Mutual Securities, Great Western Securities, or option contracts or other derivatives in or relating to Washington Mutual Securities or Great Western Securities. As of April 21, 1997, Lehman Brothers had positions in Washington Mutual Securities and Great Western Securities as principal as follows: (i) net "short" 224 of Washington Mutual's common shares; (ii) net "long" 27,434 shares of Washington Mutual's 9.12% preferred stock; (iii) net "long" 124,964 shares of Washington Mutual's 7.60% preferred stock; (iv) net "short" 8,291 of Great Western's common shares; and (v) net "long" 160,000 shares of Great Western's 8.30% preferred stock. Great Western has retained Goldman, Sachs & Co. ("Goldman Sachs") and Merrill Lynch & Co. ("Merrill Lynch") to act as its financial advisors in connection with the Merger, as well as the merger proposal by H.F. Ahmanson & Company, for which they received and may receive substantial fees, as well as reimbursement of reasonable out-of-pocket expenses. In addition, Great Western has agreed to indemnify Goldman Sachs and Merrill Lynch and certain persons related to them against certain liabilities, including certain liabilities under the federal securities laws, arising out of their engagement. Each of Goldman Sachs and Merrill Lynch is an investment banking firm that provides a full range of financial services for institutional and individual clients. Neither Goldman Sachs nor Merrill Lynch admits that it or any of its directors, officers or employees is a "participant" as defined in Schedule 14A promulgated under the Securities Exchange Act of 1934, as amended, in the proxy solicitation, or that Schedule 14A requires the disclosure of certain information concerning Goldman Sachs and Merrill Lynch. In connection with Goldman Sachs's role as financial advisor to Great Western, Goldman Sachs and the following investment banking employees of Goldman Sachs may communicate in person, by telephone or otherwise with a limited number of institutions, brokers or other persons who are stockholders of Great Western: Herb Lurie, Louis S. Wolfe, Paul Wetzel, Frank V. McMahon, John Esposito, Christopher Del-Moral Niles and Kavita Gupta. In the normal course of their respective businesses Goldman Sachs and Merrill Lynch regularly buy and sell Great Western Securities and Washington Mutual Securities for its own account and for the accounts of its customers, which transactions may result from time to time in Goldman 26 Sachs and its associates and Merrill Lynch and its associates having a net "long" or net "short" position in Great Western Securities, Washington Mutual Securities, or option contracts or other derivatives in or relating to Great Western Securities or Washington Mutual Securities. As of April 21, 1997, Goldman Sachs had positions in Great Western Securities and Washington Mutual Securities as principal as follows: (i) net "long" 9,173 of Great Western's common shares; (ii) net "long" $1 million of Great Western's deposit notes; and (iii) net "long" 1,098 of Washington Mutual's common shares. As of April 21, 1997, Merrill Lynch had positions in Great Western Securities and Washington Mutual Securities as principal as follows: (i) net "long" 7,126 of Great Western's common shares and (ii) net "long" 1,526 of Washington Mutual's common shares. -----END PRIVACY-ENHANCED MESSAGE-----