<PAGE> 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.
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(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:
------------------------------------------------------------------------
<PAGE> 2
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Q1 1997
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UBS Securities Global Banking Conference
May 2, 1997
[LOGO] Washington Mutual
Washington Mutual, Inc. 1
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WAMU Profile
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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
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<PAGE> 3
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WAMU Profile
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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
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WAMU/GWF Pro Forma Profile - 3/31/97
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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
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<PAGE> 4
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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
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WAMU Profile
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Key Strategies
- - Continue Expanding Consumer Banking Franchise
- - Grow Commercial Banking Operations
- - Maintain a High Quality Balance Sheet
- - Improve Operating Efficiency
Washington Mutual, Inc. 6
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<PAGE> 5
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WAMU Profile
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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
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Investment Strengths
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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
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<PAGE> 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
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MARKET PRESENCE
DISTRIBUTION NETWORK (AS OF 3/31/97)
<TABLE>
<S> <C> <C>
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
</TABLE>
Washington Mutual, Inc. 10
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<PAGE> 7
MARKET PRESENCE - WAMU/GWF PRO FORMA
STRONG WEST COAST AND FLORIDA FRANCHISES
<TABLE>
<CAPTION>
Deposits Deposit
State ($B)(a) Share Rank
----- -------- ------- ----
<S> <C> <C> <C> <C>
[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
</TABLE>
Source: SNL Securities
(a) June 30, 1996 deposit data updated for announced acquisitions through
February 26, 1997
Washington Mutual, Inc. 11
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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
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<PAGE> 8
MARKET PRESENCE
SFR LOAN ORIGINATION MARKET SHARE(a) - WAMU/GWF PRO FORMA
<TABLE>
<CAPTION>
[BAR GRAPH]
WASHINGTON OREGON CALIFORNIA(b) UTAH(c)
---------- ------ ------------- -------
<S> <C> <C> <C> <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%
</TABLE>
(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
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MARKET PRESENCE
CONSUMER DEPOSIT MARKET SHARE - WAMU/GWF PRO FORMA(a)
<TABLE>
<CAPTION>
[BAR GRAPH]
WASHINGTON OREGON CALIFORNIA(b)
---------- ------ -------------
<S> <C> <S> <C> <S> <C>
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%
</TABLE>
(a) Percent dollar volume as of 9/96
Note: Excludes government and noninterest-bearing accounts.
Washington Mutual, Inc. 14
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<PAGE> 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
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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
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<PAGE> 10
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Market Presence
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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
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Investment Strengths
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Market Presence - Locations in 9 Western States
- Meaningful Market Position in WA, OR, UT
and CA
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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
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<PAGE> 11
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Superior Consumer Strategy
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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
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Superior Consumer Strategy
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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
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<PAGE> 12
SUPERIOR CONSUMER STRATEGY
- --------------------------
Households Served
<TABLE>
<CAPTION>
[BAR GRAPH]
WAMU ASB TOTAL
------- ------- ---------
<S> <C> <C> <C>
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
</TABLE>
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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
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SUPERIOR CONSUMER STRATEGY
- --------------------------
Retail Checking Accounts
<TABLE>
<CAPTION>
[BAR GRAPH]
WAMU ASB TOTAL
------- ------- ---------
<S> <C> <C> <C>
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
</TABLE>
------------------------- ----------------------
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
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<PAGE> 13
SUPERIOR CONSUMER STRATEGY
- --------------------------
Depositor Fee Income
(Dollars in Millions)
[BAR GRAPH]
<TABLE>
<CAPTION>
WAMU ASB TOTAL
------ ------ ------
<S> <C>
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
</TABLE>
------------------------- -------------------------
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
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SUPERIOR CONSUMER STRATEGY
- --------------------------
Total Loan Originations - WAMU/GWF Pro Forma
(Dollars in Billions)
[BAR GRAPH]
<TABLE>
<CAPTION>
WAMU GWF TOTAL
------ ------ ------
<S> <C>
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
</TABLE>
Loan originations less REO transferes, prepayments and paydowns.
Washington Mutual, Inc. 24
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<PAGE> 14
SUPERIOR CONSUMER STRATEGY
- --------------------------
Net Originations - WAMU/GWF Pro Forma
(Dollars in Billions)
[BAR GRAPH]
<TABLE>
<CAPTION>
WAMU GWF TOTAL
------ ------ ------
<S> <C> <C> <C>
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
</TABLE>
Net originations are not reduced for loans sold.
Washington Mutual, Inc. 25
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SUPERIOR CONSUMER STRATEGY
- --------------------------
Consumer Lending(a)
(Dollars in Millions)
[BAR GRAPH]
<TABLE>
<CAPTION>
WAMU ASB TOTAL
-------- ------ --------
<S> <C> <C> <C>
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
</TABLE>
------------------------- ----------------------
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
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<PAGE> 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
-------------------------------------------------------------------
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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
-------------------------------------------------------------------
<PAGE> 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
<TABLE>
<CAPTION>
[BAR GRAPH]
NET INCOME
(Dollars in Millions) ROAA
---------------------- ----
<S> <C> <C>
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%
</TABLE>
(a) Excludes SAIF assessment and transaction-related expenses
(b) Includes SAIF assessment and transaction-related expenses
Washington Mutual, Inc. 30
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<PAGE> 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
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[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
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<PAGE> 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
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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
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<PAGE> 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
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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
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<PAGE> 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
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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
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<PAGE> 21
STOCK MARKET OUTPERFORMANCE
- ---------------------------
Valuation Summary
<TABLE>
<CAPTION>
Average Annual Return(a) WAMU S&P 500
------------------------ ----- -------
<S> <C>
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%
</TABLE>
(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
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STOCK MARKET OUTPERFORMANCE
- ---------------------------
Closing Price of WAMU Stock*
[LINE GRAPH]
<TABLE>
<CAPTION>
<S> <C>
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
</TABLE>
* Prices adjusted for 50% stock dividends in Q3'86, Q3'87, Q1'92 and Q3'93
Washington Mutual, Inc. 40
- --------------------------------------------------------------
<PAGE> 22
STOCK MARKET OUTPERFORMANCE
- ---------------------------
Dividends Paid to Shareholders
PER SHARE
[LINE GRAPH]
<TABLE>
<CAPTION>
<S> <C>
'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
</TABLE>
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)
<TABLE>
<CAPTION>
WAMU S&P S&P FINANCIAL INDEX
--------- ------- -------------------
<S> <C> <C> <C>
*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
</TABLE>
*$100 Invested 3/83
Washington Mutual, Inc. 42
- --------------------------------------------------------------
<PAGE> 23
STOCK MARKET OUTPERFORMANCE
- ---------------------------
Total Annual Return Peer Comparison 4/1/90 - 3/31/97
<TABLE>
Percentage
----------
<S> <C>
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%
</TABLE>
Source: Bloomberg
Washington Mutual, Inc. 43
- --------------------------------------------------------------
<PAGE> 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,
<PAGE> 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
<PAGE> 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.
